OPEC oil output rises more on Libya restart, Iraq - Reuters survey | Reuters
OPEC oil output has risen for a fourth month in October, a Reuters survey found, as a restart of more Libyan installations and higher Iraqi exports offset full adherence by other members to an OPEC-led supply cut deal.
The 13-member Organization of the Petroleum Exporting Countries has pumped 24.59 million barrels per day (bpd) on average in October, the survey found, up 210,000 bpd from September and a further boost from the three-decade low reached in June.
An increase in OPEC supply and a new hit to demand as coronavirus cases rise have weighed on oil prices, which have fallen 8% in October to near $37 a barrel. This puts pressure on OPEC and allies, known as OPEC+, to postpone a planned January 2021 supply boost, some analysts say.
“Oil demand is currently not supportive,” said Stephen Brennock of broker PVM. “At the bare minimum, OPEC+ will have to roll over its current production levels until the end of March.”
Libya is one of the OPEC members exempted from a deal by OPEC+ to curb supply.
Saturday 31 October 2020
With No Cuts Left to Make, Big Oil Sits and Waits for a Recovery - Bloomberg
With No Cuts Left to Make, Big Oil Sits and Waits for a Recovery - Bloomberg
It was Andrew Swiger, the chief financial officer at Exxon Mobil Corp., who summarized the attitude of the whole industry after Big Oil ended reporting another dismal set of quarterly earnings: “Prices will have to rise.”
After months of low oil and gas prices driven by weak demand, the world’s largest international oil companies have largely exhausted their financial defenses, leaving little room to maneuver if they’re dealt further blows. Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell Plc, Total SE and BP Plc have already reduced 2021 spending probably to as much as they can.
With the exception of perhaps Chevron and Total, which entered the downturn with the strongest balance sheets, leverage is approaching uncomfortable levels. Put together, Big Oil is now completely at the mercy of a worldwide rout in fuel demand that, absent a Covid-19 vaccine, shows no signs of abating, as well as OPEC+ leaders Saudi Arabia and Russia.
“I will say that a lot of the performance of the company today, but also in the future, will depend on the macro environment that we will be enjoying or suffering as the case may be,” said Ben van Beurden, chief executive officer of Shell.
It was Andrew Swiger, the chief financial officer at Exxon Mobil Corp., who summarized the attitude of the whole industry after Big Oil ended reporting another dismal set of quarterly earnings: “Prices will have to rise.”
After months of low oil and gas prices driven by weak demand, the world’s largest international oil companies have largely exhausted their financial defenses, leaving little room to maneuver if they’re dealt further blows. Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell Plc, Total SE and BP Plc have already reduced 2021 spending probably to as much as they can.
With the exception of perhaps Chevron and Total, which entered the downturn with the strongest balance sheets, leverage is approaching uncomfortable levels. Put together, Big Oil is now completely at the mercy of a worldwide rout in fuel demand that, absent a Covid-19 vaccine, shows no signs of abating, as well as OPEC+ leaders Saudi Arabia and Russia.
“I will say that a lot of the performance of the company today, but also in the future, will depend on the macro environment that we will be enjoying or suffering as the case may be,” said Ben van Beurden, chief executive officer of Shell.
Brent crude closed this week below $38 a barrel, bringing the year’s decline to 43%. At such levels, the industry is underinvesting in supply to such an extent that shortages are inevitable in the future, which means higher prices, Exxon’s Swiger argued. But a price recovery relies on two other things: higher demand and OPEC+ holding the line on production curbs, underpinned by the often uncomfortable alliance between Russia and Saudi Arabia.
Go cold #Turkey - Riyadh Bureau ht @ahmed
Go cold Turkey - Riyadh Bureau
When Riyadh’s chamber of commerce held its election in February, one candidate was utterly ubiquitous: Ajlan al-Ajlan, billionaire founder of a company that sells Saudi men’s clothes, appeared to spare no expense for his campaign. On street billboards, newspaper pages, television channels and social media networks, his face was inescapable. People even joked they found him inside their microwaves and bread toasters.
Al-Ajlan’s heavy spending paid off as he came first in the election, winning a total of 6,283 out of 42,112 votes. His elevated profile earned him an interview on the kingdom’s top talk show during Ramadan where he was asked if his campaign has gone overboard considering the low stakes. “I’m serious and take everything seriously,” he said as he defended spending nearly $5m for the seat.
Despite his election win, many people outside Saudi Arabia would not have probably heard of al-Ajlan until earlier this month when he emerged as the leading voice calling for a full boycott of Turkey. “The boycott of everything Turkish, whether it is imports, investment or tourism, is the duty of every Saudi (trader and consumer) in response to continued hostility by the Turkish government against our leadership, country and citizens,” he said on Twitter.
When Riyadh’s chamber of commerce held its election in February, one candidate was utterly ubiquitous: Ajlan al-Ajlan, billionaire founder of a company that sells Saudi men’s clothes, appeared to spare no expense for his campaign. On street billboards, newspaper pages, television channels and social media networks, his face was inescapable. People even joked they found him inside their microwaves and bread toasters.
Al-Ajlan’s heavy spending paid off as he came first in the election, winning a total of 6,283 out of 42,112 votes. His elevated profile earned him an interview on the kingdom’s top talk show during Ramadan where he was asked if his campaign has gone overboard considering the low stakes. “I’m serious and take everything seriously,” he said as he defended spending nearly $5m for the seat.
Despite his election win, many people outside Saudi Arabia would not have probably heard of al-Ajlan until earlier this month when he emerged as the leading voice calling for a full boycott of Turkey. “The boycott of everything Turkish, whether it is imports, investment or tourism, is the duty of every Saudi (trader and consumer) in response to continued hostility by the Turkish government against our leadership, country and citizens,” he said on Twitter.
Friday 30 October 2020
Oil Has Worst Month Since March After Covid Surge Hurts Recovery - Bloomberg
Oil Has Worst Month Since March After Covid Surge Hurts Recovery - Bloomberg
Oil posted its largest monthly drop since March as renewed lockdown measures to contain the coronavirus threatened to upend a shaky demand recovery.
Futures fell 1.1% in New York on Friday to end the week below $36 a barrel taking their cue from a broader market selloff and the worst week for U.S. stocks since March. At the same time, the U.S. posted a record surge in daily coronavirus infections, while new restrictions in Europe could drive the region toward another recession.
“The risk appetite in the market is definitely lower,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “The return-in-demand story is taking a lot longer to play out than oil bulls had hoped.”
Oil posted its largest monthly drop since March as renewed lockdown measures to contain the coronavirus threatened to upend a shaky demand recovery.
Futures fell 1.1% in New York on Friday to end the week below $36 a barrel taking their cue from a broader market selloff and the worst week for U.S. stocks since March. At the same time, the U.S. posted a record surge in daily coronavirus infections, while new restrictions in Europe could drive the region toward another recession.
“The risk appetite in the market is definitely lower,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “The return-in-demand story is taking a lot longer to play out than oil bulls had hoped.”
A return to tougher lockdown measures will likely deter a substantive rebound in airline demand, with more restrictions in Europe prompting further cuts in airline capacity for the remainder of the year. Still, there’s some support from booming freight markets and improvements in China and India. All the while, traders are looking ahead to next week’s U.S. election and an OPEC+ meeting at the end of November.
Oil falls on demand concerns, posts second monthly decline | Reuters
Oil falls on demand concerns, posts second monthly decline | Reuters
Oil prices fell on Friday and posted a second consecutive monthly drop as rising COVID-19 cases in Europe and the United States heightened concerns over the outlook for fuel consumption.
Brent crude LCOc1 dropped 19 cents to settle at $37.46 a barrel, after touching a five-month low of $36.64 in the previous session. The front-month Brent contract expired on Friday and the January contract LCOc2 settled down 32 cents.
U.S. West Texas Intermediate (WTI) crude fell 38 cents to settle at $35.79 a barrel, after dipping to its lowest since June on Thursday at $34.92.
WTI fell 11% for the month, while Brent dropped 10%.
Leaders in France and Germany have ordered their countries back into lockdown, as a massive second wave of coronavirus infections threatened to overwhelm Europe before the winter.
Oil prices fell on Friday and posted a second consecutive monthly drop as rising COVID-19 cases in Europe and the United States heightened concerns over the outlook for fuel consumption.
Brent crude LCOc1 dropped 19 cents to settle at $37.46 a barrel, after touching a five-month low of $36.64 in the previous session. The front-month Brent contract expired on Friday and the January contract LCOc2 settled down 32 cents.
U.S. West Texas Intermediate (WTI) crude fell 38 cents to settle at $35.79 a barrel, after dipping to its lowest since June on Thursday at $34.92.
WTI fell 11% for the month, while Brent dropped 10%.
Leaders in France and Germany have ordered their countries back into lockdown, as a massive second wave of coronavirus infections threatened to overwhelm Europe before the winter.
Biden, Iran, and Oil Prices: How the Puzzle Pieces Might Fit Together - Bloomberg
Biden, Iran, and Oil Prices: How the Puzzle Pieces Might Fit Together - Bloomberg
Oil prices have sunk back to their lowest levels since the novel coronavirus lockdown in the spring (when, bizarrely, the price of West Texas Intermediate crude briefly touched negative $37.63 a barrel). The pandemic is still weighing on the oil market, but now there seems to be an additional factor: the increasing likelihood that former Vice President Joe Biden will be elected U.S. president and ease sanctions on Iran.
As this Bloomberg News story explains, if the economic sanctions on Iran that President Donald Trump imposed and recently tightened were eased, it would open the sluices for more than 2 million barrels a day of Iranian crude exports. “Within a few months after a Biden election, we expect some Iranian oil will be coming to market,” Iman Nasseri, the London-based managing director for the Middle East at consulting firm FGE, told Bloomberg. “It’s going to be a real headache for OPEC.”
Cheap oil used to be a pure win for Americans, but now that the U.S. exports almost as much petroleum as it imports, the equation has changed. And for Saudi Arabia and the Gulf states, cheap oil is a pure loss. Today’s prices are far below what they need to cover their governments’ expenses—thus, unsustainable.
Biden has expressed openness to returning to the Joint Comprehensive Plan of Action—the multilateral pact that aims to keep Iran from developing nuclear weapons—if Iran would return to full compliance with its terms. Iran, meanwhile, says it won’t return to full compliance until sanctions are lifted, so this is not an easy lift. But setting aside the merits of easing up on Iran, is there a way that Biden could do it without crashing the oil market?
Oil prices have sunk back to their lowest levels since the novel coronavirus lockdown in the spring (when, bizarrely, the price of West Texas Intermediate crude briefly touched negative $37.63 a barrel). The pandemic is still weighing on the oil market, but now there seems to be an additional factor: the increasing likelihood that former Vice President Joe Biden will be elected U.S. president and ease sanctions on Iran.
As this Bloomberg News story explains, if the economic sanctions on Iran that President Donald Trump imposed and recently tightened were eased, it would open the sluices for more than 2 million barrels a day of Iranian crude exports. “Within a few months after a Biden election, we expect some Iranian oil will be coming to market,” Iman Nasseri, the London-based managing director for the Middle East at consulting firm FGE, told Bloomberg. “It’s going to be a real headache for OPEC.”
Cheap oil used to be a pure win for Americans, but now that the U.S. exports almost as much petroleum as it imports, the equation has changed. And for Saudi Arabia and the Gulf states, cheap oil is a pure loss. Today’s prices are far below what they need to cover their governments’ expenses—thus, unsustainable.
Biden has expressed openness to returning to the Joint Comprehensive Plan of Action—the multilateral pact that aims to keep Iran from developing nuclear weapons—if Iran would return to full compliance with its terms. Iran, meanwhile, says it won’t return to full compliance until sanctions are lifted, so this is not an easy lift. But setting aside the merits of easing up on Iran, is there a way that Biden could do it without crashing the oil market?
Israeli-Grown Produce Could Be on Sale in #UAE by Early November - Bloomberg
Israeli-Grown Produce Could Be on Sale in UAE by Early November - Bloomberg
Israeli farmers, who face stiff competition in their main export markets in Europe, might be able to sell their produce in the Persian Gulf as early as November.
The United Arab Emirates this week authorized the import of Israeli produce following the two nations’ normalization agreement, Israel’s Agriculture Ministry said in announcing the possible start date.
While Israeli exporters have diversified their markets in response to the mounting competition in Europe, demand hasn’t been sufficient, the ministry said. The UAE imported 80% of the $10 billion in fresh produce sold there in 2018, according to the ministry, and is a trade hub for goods sent on to eastern Asia.
Israel’s agricultural exports totaled $1.15 billion in 2018, according to ministry figures.
Israeli farmers, who face stiff competition in their main export markets in Europe, might be able to sell their produce in the Persian Gulf as early as November.
The United Arab Emirates this week authorized the import of Israeli produce following the two nations’ normalization agreement, Israel’s Agriculture Ministry said in announcing the possible start date.
While Israeli exporters have diversified their markets in response to the mounting competition in Europe, demand hasn’t been sufficient, the ministry said. The UAE imported 80% of the $10 billion in fresh produce sold there in 2018, according to the ministry, and is a trade hub for goods sent on to eastern Asia.
Israel’s agricultural exports totaled $1.15 billion in 2018, according to ministry figures.
Oil losses deepen as anxiety builds over lockdowns, U.S. elections | Reuters
Oil losses deepen as anxiety builds over lockdowns, U.S. elections | Reuters
Global oil prices fell more than 1% on Friday, extending losses and on track for a second monthly fall, on growing concerns that the rise in COVID-19 cases in Europe and the United States could hurt fuel consumption.
Brent crude slipped for a third day and was down 60 cents, 1.6%, at $37.05 a barrel by 0720 GMT after touching a five-month low in the previous session. December Brent contract expires on Friday.
U.S. West Texas Intermediate (WTI) crude declined 53 cents, or 1.5%, to $35.64 a barrel after dipping to its lowest since June on Thursday.
Prices had swung between parity and a more than 2% decline during Friday’s session as the “market is anxious” over renewed lockdowns in Europe and U.S. elections next week, a Singapore-based oil trader said.
OCBC’s economist Howie Lee said: “Selling pressure is piling up again.”
Global oil prices fell more than 1% on Friday, extending losses and on track for a second monthly fall, on growing concerns that the rise in COVID-19 cases in Europe and the United States could hurt fuel consumption.
Brent crude slipped for a third day and was down 60 cents, 1.6%, at $37.05 a barrel by 0720 GMT after touching a five-month low in the previous session. December Brent contract expires on Friday.
U.S. West Texas Intermediate (WTI) crude declined 53 cents, or 1.5%, to $35.64 a barrel after dipping to its lowest since June on Thursday.
Prices had swung between parity and a more than 2% decline during Friday’s session as the “market is anxious” over renewed lockdowns in Europe and U.S. elections next week, a Singapore-based oil trader said.
OCBC’s economist Howie Lee said: “Selling pressure is piling up again.”
Thursday 29 October 2020
U.S. moves forward with sale of 50 F-35 jets to #UAE - sources | Reuters
U.S. moves forward with sale of 50 F-35 jets to UAE - sources | Reuters
The U.S. State Department notified Congress it approved the sale of 50 Lockheed Martin Co LMT.N F-35 jets to the United Arab Emirates in a deal that could be worth $10 billion, sources said on Thursday, potentially setting up a showdown with lawmakers over the deal.
The United States and the UAE aim to have a letter of agreement for the F-35 jets in time for UAE National Day celebrated on Dec. 2, Reuters reported in September.
The U.S. Senate Foreign Relations and House of Representatives Foreign Affairs committees, whose members have criticized the UAE’s role in civilian deaths in Yemen, have the right to review, and block, weapons sales under an informal review process.
Israel initially balked at the prospective sale but last week dropped its opposition after what it described as U.S. guarantees that Israeli military superiority would be preserved.
The U.S. State Department notified Congress it approved the sale of 50 Lockheed Martin Co LMT.N F-35 jets to the United Arab Emirates in a deal that could be worth $10 billion, sources said on Thursday, potentially setting up a showdown with lawmakers over the deal.
The United States and the UAE aim to have a letter of agreement for the F-35 jets in time for UAE National Day celebrated on Dec. 2, Reuters reported in September.
The U.S. Senate Foreign Relations and House of Representatives Foreign Affairs committees, whose members have criticized the UAE’s role in civilian deaths in Yemen, have the right to review, and block, weapons sales under an informal review process.
Israel initially balked at the prospective sale but last week dropped its opposition after what it described as U.S. guarantees that Israeli military superiority would be preserved.
U.S. Firms Interested in #Israel Port After Passing Last Time - Bloomberg
U.S. Firms Interested in Israel Port After Passing Last Time - Bloomberg
A pair of American firms are among companies that have officially indicated interest in bidding for Israel’s largest seaport, following a push by the U.S. government.
U.S. officials hoping to put a chill on Chinese involvement in strategic infrastructure projects have been encouraging American firms to bid for the port in the northern city of Haifa, where state-run Shanghai International Port Group Co. won a contract to operate a separate facility in 2015. No U.S. companies bid on that 2015 project despite American efforts.
The U.S. companies that have expressed interest by Thursday’s deadline are SSA Marine, a Seattle-based terminal operator, and Kentucky-based shipper GraeStone Logistics LLC, according to an Israeli official who requested anonymity to speak publicly. The companies didn’t immediately respond to email requests for comment outside normal business hours.
As Bloomberg previously reported, GraeStone joined a consortium that included Turkish industrial conglomerate Yildirim Holding AS, cruise port operator Global Ports Holding Plc and Israeli businessman Eli Tilles. Dubai’s DP World and Israeli Shipyards Industries Ltd. also said earlier that they submitted a joint offer for the facility.
A pair of American firms are among companies that have officially indicated interest in bidding for Israel’s largest seaport, following a push by the U.S. government.
U.S. officials hoping to put a chill on Chinese involvement in strategic infrastructure projects have been encouraging American firms to bid for the port in the northern city of Haifa, where state-run Shanghai International Port Group Co. won a contract to operate a separate facility in 2015. No U.S. companies bid on that 2015 project despite American efforts.
The U.S. companies that have expressed interest by Thursday’s deadline are SSA Marine, a Seattle-based terminal operator, and Kentucky-based shipper GraeStone Logistics LLC, according to an Israeli official who requested anonymity to speak publicly. The companies didn’t immediately respond to email requests for comment outside normal business hours.
As Bloomberg previously reported, GraeStone joined a consortium that included Turkish industrial conglomerate Yildirim Holding AS, cruise port operator Global Ports Holding Plc and Israeli businessman Eli Tilles. Dubai’s DP World and Israeli Shipyards Industries Ltd. also said earlier that they submitted a joint offer for the facility.
#UAE's Mubadala completes $4.6bn deal to sell stake in chemical giant - Arabianbusiness
UAE's Mubadala completes $4.6bn deal to sell stake in chemical giant - Arabianbusiness
Mubadala Investment Company, the Abu Dhabi-based strategic investment company, on Thursday completed a deal to sell an additional 39 percent stake in Borealis to OMV, an oil and gas company headquartered in Vienna.
OMV now holds a 75 percent interest in Borealis and Mubadala retains a 25 percent interest in the global chemical company.
The transaction value amounts to $4.68 billion and represents the biggest acquisition in OMV’s history and the largest transaction ever for Mubadala.
Under the deal, OMV is entitled to all dividends in relation to the additional shares in Borealis distributed after December 31, 2019. In 2019, Borealis generated worldwide total sales of 9.8 billion euros and a net profit of 872 million euros.
Musabbeh Al Kaabi, CEO, Petroleum & Petrochemicals, Mubadala Investment Company, said: "This transaction is well aligned with our strategy as a responsible investor and we are confident in the value this partnership will create for all three companies."
Mubadala Investment Company, the Abu Dhabi-based strategic investment company, on Thursday completed a deal to sell an additional 39 percent stake in Borealis to OMV, an oil and gas company headquartered in Vienna.
OMV now holds a 75 percent interest in Borealis and Mubadala retains a 25 percent interest in the global chemical company.
The transaction value amounts to $4.68 billion and represents the biggest acquisition in OMV’s history and the largest transaction ever for Mubadala.
Under the deal, OMV is entitled to all dividends in relation to the additional shares in Borealis distributed after December 31, 2019. In 2019, Borealis generated worldwide total sales of 9.8 billion euros and a net profit of 872 million euros.
Musabbeh Al Kaabi, CEO, Petroleum & Petrochemicals, Mubadala Investment Company, said: "This transaction is well aligned with our strategy as a responsible investor and we are confident in the value this partnership will create for all three companies."
Oil extends losses on renewed coronavirus lockdowns, over-supply worries | Reuters
Oil extends losses on renewed coronavirus lockdowns, over-supply worries | Reuters
Oil prices fell on Thursday, extending a 5% slump in the previous session, as governments’ renewed restrictions to curb a second wave of coronavirus infections and signs of a growing global oil supply glut send prices tumbling.
U.S. West Texas Intermediate (WTI) crude futures edged down 8 cents, or 0.21%, to $37.31 a barrel by 0743 GMT, while Brent crude futures were down 12 cents, or 0.31%, at $39.00.
Amid surging COVID-19 cases in Europe, France will require people to stay home for all but essential activities as of Friday, while Germany will shut bars, restaurants and theatres from Nov. 2 through the end of the month.
“The demand outlook is deteriorating as a second viral wave swept the U.S. and most part of the Europe. Stricter social distancing measures and more lockdowns may bring a larger-than-expected impact on global energy demand,” said Margaret Yang, a strategist at DailyFX.
Oil prices fell on Thursday, extending a 5% slump in the previous session, as governments’ renewed restrictions to curb a second wave of coronavirus infections and signs of a growing global oil supply glut send prices tumbling.
U.S. West Texas Intermediate (WTI) crude futures edged down 8 cents, or 0.21%, to $37.31 a barrel by 0743 GMT, while Brent crude futures were down 12 cents, or 0.31%, at $39.00.
Amid surging COVID-19 cases in Europe, France will require people to stay home for all but essential activities as of Friday, while Germany will shut bars, restaurants and theatres from Nov. 2 through the end of the month.
“The demand outlook is deteriorating as a second viral wave swept the U.S. and most part of the Europe. Stricter social distancing measures and more lockdowns may bring a larger-than-expected impact on global energy demand,” said Margaret Yang, a strategist at DailyFX.
MIDEAST STOCKS- #Saudi Arabian shares see broad-based losses, Industries #Qatar weighs | Nasdaq
MIDEAST STOCKS-Saudi Arabian shares see broad-based losses, Industries Qatar weighs | Nasdaq
Saudi Arabian shares fell sharply on Thursday, incurring losses across the board due to weak oil prices, while the Qatari benchmark was dragged lower by heavyweight Industries Qatar.
Oil prices slumped 5% in the previous session, with Brent hitting a four-month low, as surging coronavirus infections in the United States and Europe prompted renewed lockdowns and raised concerns of new declines in fuel demand. O/R
The kingdom's benchmark index .TASI declined 1.6%, with oil giant Saudi Aramco 2222.SE shedding 1.6% and Saudi Telecom 7010.SE falling 1.5%.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies will have to contend with a "lot of demand issues" before raising supply in January 2021, given throughput cuts by oil refiners, the head of Saudi Aramco's trading arm said.
In Qatar, the index .QSI retreated 1.1%, with most stocks trading lower. Petrochemical firm Industries Qatar IQCD.QA dropped 2.1%.
The company earlier this week had reported a net profit of 951 million riyals ($261.26 million) for the first nine months of 2020, down from 2 billion riyals a year earlier.
Saudi Arabian shares fell sharply on Thursday, incurring losses across the board due to weak oil prices, while the Qatari benchmark was dragged lower by heavyweight Industries Qatar.
Oil prices slumped 5% in the previous session, with Brent hitting a four-month low, as surging coronavirus infections in the United States and Europe prompted renewed lockdowns and raised concerns of new declines in fuel demand. O/R
The kingdom's benchmark index .TASI declined 1.6%, with oil giant Saudi Aramco 2222.SE shedding 1.6% and Saudi Telecom 7010.SE falling 1.5%.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies will have to contend with a "lot of demand issues" before raising supply in January 2021, given throughput cuts by oil refiners, the head of Saudi Aramco's trading arm said.
In Qatar, the index .QSI retreated 1.1%, with most stocks trading lower. Petrochemical firm Industries Qatar IQCD.QA dropped 2.1%.
The company earlier this week had reported a net profit of 951 million riyals ($261.26 million) for the first nine months of 2020, down from 2 billion riyals a year earlier.
Qatar Insurance QINS.QA, which posted loss for nine months ended Sept. 30, was down 1.6%.
Markets in the United Arab Emirates are closed for a public holiday.
Markets in the United Arab Emirates are closed for a public holiday.
Wednesday 28 October 2020
Emirates President Clark Is Said to Delay Retirement to 2021 - Bloomberg
Emirates President Clark Is Said to Delay Retirement to 2021 - Bloomberg
Emirates President Tim Clark postponed his retirement into next year to help steer the world’s largest long-haul airline through the toughest crisis in its history, according to people familiar with the matter.
The 70-year-old, who had already delayed a June retirement plan, hasn’t yet set a departure date, said the people, who asked not to be identified as the decision hasn’t been made public. Emirates hasn’t yet named a successor.
Clark has been the architect of Emirates’ rise from desert outpost to the world’s largest long-haul carrier, with the biggest fleet of Airbus SE A380s and Boeing Co. 777s connecting destinations around the globe through its Dubai hub. Yet just as he was due to the hand over the tiller, the Covid-19 pandemic plunged the global aviation industry into a prolonged slump that shows little sign of coming to an end.
Emirates has had to cut thousands of jobs, idle the majority of its A380 fleet and defer jet orders. The carrier’s focus on lengthy international flights is particularly vulnerable as travelers shy away from long-distance travel, which is expected to recover more slowly than shorter journeys.
Emirates President Tim Clark postponed his retirement into next year to help steer the world’s largest long-haul airline through the toughest crisis in its history, according to people familiar with the matter.
The 70-year-old, who had already delayed a June retirement plan, hasn’t yet set a departure date, said the people, who asked not to be identified as the decision hasn’t been made public. Emirates hasn’t yet named a successor.
Clark has been the architect of Emirates’ rise from desert outpost to the world’s largest long-haul carrier, with the biggest fleet of Airbus SE A380s and Boeing Co. 777s connecting destinations around the globe through its Dubai hub. Yet just as he was due to the hand over the tiller, the Covid-19 pandemic plunged the global aviation industry into a prolonged slump that shows little sign of coming to an end.
Emirates has had to cut thousands of jobs, idle the majority of its A380 fleet and defer jet orders. The carrier’s focus on lengthy international flights is particularly vulnerable as travelers shy away from long-distance travel, which is expected to recover more slowly than shorter journeys.
Top Kuwait Finance Officials Quit to Protest Ministry Revamp - Bloomberg
Top Kuwait Finance Officials Quit to Protest Ministry Revamp - Bloomberg
The No. 2 official in Kuwait’s Ministry of Finance and five senior colleagues resigned to protest a reshuffle of almost all key ministerial posts, alleging the revamp wasn’t based on merit, according to a copy of their resignation letter.
The ministry said in a Twitter post that it had accepted the resignations in the public interest, without commenting on the claims made by the six officials.
Saleh Al-Sarawi, effectively the deputy minister, and five assistant undersecretaries wrote they were quitting due to the unprecedented “placing of self interest above good performance.” Appointees lacked suitable expertise for their new positions, they said.
The officials also hit out at attempts to push “unfeasible high-cost projects, without taking into consideration the difficulties and circumstances” public finances are facing.
The No. 2 official in Kuwait’s Ministry of Finance and five senior colleagues resigned to protest a reshuffle of almost all key ministerial posts, alleging the revamp wasn’t based on merit, according to a copy of their resignation letter.
The ministry said in a Twitter post that it had accepted the resignations in the public interest, without commenting on the claims made by the six officials.
Saleh Al-Sarawi, effectively the deputy minister, and five assistant undersecretaries wrote they were quitting due to the unprecedented “placing of self interest above good performance.” Appointees lacked suitable expertise for their new positions, they said.
The officials also hit out at attempts to push “unfeasible high-cost projects, without taking into consideration the difficulties and circumstances” public finances are facing.
#Oman Is Said to Plan Gulf Sultanate’s Biggest Property Trust IPO - Bloomberg
Oman Is Said to Plan Gulf Sultanate’s Biggest Property Trust IPO - Bloomberg
Oman REIT Fund is planning an initial public offering that could raise about $100 million, in what could be the biggest-ever listing of a property trust in the Gulf sultanate, people with knowledge of the matter said.
The REIT, managed by Shumookh Fund Management LLC, plans to seek a valuation of $170 million or more, according to the people, who asked not to be identified because the information is private. It aims to offer an annual dividend yield of about 7%, the people said.
Muscat-based United Securities LLC is managing the offering, the people said. The REIT’s portfolio will include residential, commercial, office and logistics properties contributed by local companies and pension funds, according to the people.
The potential deal could rank as the country’s largest REIT IPO since the Capital Markets Authority set up regulations for such listings in 2018. Aman Real Estate Investment Fund, which started trading on the Muscat bourse earlier this year, was the first to take advantage of the new rules.
Oman REIT Fund is planning an initial public offering that could raise about $100 million, in what could be the biggest-ever listing of a property trust in the Gulf sultanate, people with knowledge of the matter said.
The REIT, managed by Shumookh Fund Management LLC, plans to seek a valuation of $170 million or more, according to the people, who asked not to be identified because the information is private. It aims to offer an annual dividend yield of about 7%, the people said.
Muscat-based United Securities LLC is managing the offering, the people said. The REIT’s portfolio will include residential, commercial, office and logistics properties contributed by local companies and pension funds, according to the people.
The potential deal could rank as the country’s largest REIT IPO since the Capital Markets Authority set up regulations for such listings in 2018. Aman Real Estate Investment Fund, which started trading on the Muscat bourse earlier this year, was the first to take advantage of the new rules.
Oil plunges over 5% to four-month low as pandemic surges, U.S. crude output soars | Reuters
Oil plunges over 5% to four-month low as pandemic surges, U.S. crude output soars | Reuters
Oil prices fell more than 5% on Wednesday, sending Brent to a four-month low as surging coronavirus infections in the United States and Europe prompted renewed lockdowns and fed expectations for new declines in fuel demand.
Also pressuring prices, U.S. crude stockpiles rose more than expected last week as production surged in a record build, according to the U.S. Energy Information Administration.
“The increase in oil production led to an unexpected build of crude oil, and given the additional lockdowns we are seeing in Europe, that is just further heaping bad news on the oil market,” said Andy Lipow, president of consultants Lipow Oil Associates.
Brent futures fell $2.08, or 5.1%, to settle at $39.12 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.18, or 5.5%, to $37.39.
That was the lowest close for Brent since June 12 and for WTI since Oct. 2. It was the biggest daily percentage losses for both benchmarks since Sept. 8.
Oil prices fell more than 5% on Wednesday, sending Brent to a four-month low as surging coronavirus infections in the United States and Europe prompted renewed lockdowns and fed expectations for new declines in fuel demand.
Also pressuring prices, U.S. crude stockpiles rose more than expected last week as production surged in a record build, according to the U.S. Energy Information Administration.
“The increase in oil production led to an unexpected build of crude oil, and given the additional lockdowns we are seeing in Europe, that is just further heaping bad news on the oil market,” said Andy Lipow, president of consultants Lipow Oil Associates.
Brent futures fell $2.08, or 5.1%, to settle at $39.12 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.18, or 5.5%, to $37.39.
That was the lowest close for Brent since June 12 and for WTI since Oct. 2. It was the biggest daily percentage losses for both benchmarks since Sept. 8.
#SaudiArabia's deficit down in third quarter as taxes boost revenue | Reuters
Saudi Arabia's deficit down in third quarter as taxes boost revenue | Reuters
Saudi Arabia posted a budget deficit of 40.768 billion riyals ($10.87 billion) in the third quarter this year, more than half its deficit in the previous quarter, as a spike in non-oil revenues offset a continued decline in oil income.
The world’s largest oil exporter faces an economic contraction this year as the coronavirus crisis hits global demand for crude while virus containment measures weigh on non-oil economic sectors.
Still, despite a 30% yearly drop in oil revenues in the third quarter to 92.582 billion riyals, total revenues increased by 4% year-on-year to 215.577 billion riyals, partly thanks to tax increases.
Riyadh tripled a value-added tax to 15% in July to boost non-oil income, a move several economists said could weaken domestic demand and slow economic recovery.
“The increase in non-oil revenue was supported by the increase in VAT, which also benefited from pent-up consumer demand after the lockdowns as people could not travel outside of Saudi,” said Mazen al-Sudairi, head of research at Al Rajhi Capital.
Saudi Arabia posted a budget deficit of 40.768 billion riyals ($10.87 billion) in the third quarter this year, more than half its deficit in the previous quarter, as a spike in non-oil revenues offset a continued decline in oil income.
The world’s largest oil exporter faces an economic contraction this year as the coronavirus crisis hits global demand for crude while virus containment measures weigh on non-oil economic sectors.
Still, despite a 30% yearly drop in oil revenues in the third quarter to 92.582 billion riyals, total revenues increased by 4% year-on-year to 215.577 billion riyals, partly thanks to tax increases.
Riyadh tripled a value-added tax to 15% in July to boost non-oil income, a move several economists said could weaken domestic demand and slow economic recovery.
“The increase in non-oil revenue was supported by the increase in VAT, which also benefited from pent-up consumer demand after the lockdowns as people could not travel outside of Saudi,” said Mazen al-Sudairi, head of research at Al Rajhi Capital.
#Oman gets $1bn in aid from #Qatar | Financial Times
Oman gets $1bn in aid from Qatar | Financial Times
Oman has received $1bn in direct financial support from Qatar as the cash-strapped sultanate seeks to stave off an economic crisis worsened by coronavirus and lower oil prices.
Oman has received $1bn in direct financial support from Qatar as the cash-strapped sultanate seeks to stave off an economic crisis worsened by coronavirus and lower oil prices.
One of the poorer oil-dependent Gulf states, Oman is tapping richer neighbours for much-needed financial aid as it balances the need to plug a widening budget deficit against the potential threat to its much-prized neutrality.
Officials from the sultanate marketing a bond on conference calls said Qatar had deposited the amount in the central bank of Oman, and promised that there was more to come, three people briefed on the conversations said.
Investors said Qatari support for Oman is a good start, but more is needed. “A billion isn’t going to move the needle — they need to raise a lot more,” said one, who requested anonymity because he was not authorised to speak about transactions.
Oman did not respond to a request for comment. Qatar declined to comment.
MIDEAST STOCKS- #Saudi index leads losses with most Gulf markets subdued | Nasdaq
MIDEAST STOCKS-Saudi index leads losses with most Gulf markets subdued | Nasdaq
Major Gulf markets ended lower on Wednesday with the Saudi index leading losses, while Egypt's bourse was hurt by a blue-chip selloff.
Saudi Arabia's benchmark index .TASI fell 0.9%, with Saudi Electricity 5110.SE shedding 3.7% and National Gas and Industrialization Company 2080.SE dropping 1%.
However, National Commercial Bank (NCB) 1180.SE advanced 1.3% after it reported on Tuesday a nearly 24% rise in third-quarter net profit.
The kingdom's largest lender posted a net profit of 3.16 billion riyals ($842.60 million) in the quarter ended Sept. 30, up from 2.55 billion a year earlier.
Dubai's main share index .DFMGI slipped 0.2%, hurt by a 2.6% fall in blue-chip developer Emaar Properties EMAR.DU and a 1.3% fall in logistics firm Aramex ARMX.DU.
The Abu Dhabi index .ADI dropped 0.5%, weighed down by a 1.1% decline in telecoms firm Etisalat ETISALAT.AD and a 3.5% slide in Aldar Properties ALDAR.AD, ending four sessions of gains.
On Monday, Aldar saw its biggest intraday gain in nearly six years after announcing it will take over the management and development of government capital projects worth 30 billion dirhams ($8.17 billion) under an agreement with state-backed ADQ.
In Qatar, the index .QSI fell 0.3%, with Industries Qatar IQCD.QA losing 1.1%, a day after the petrochemical firm reported a net profit of 951 million riyals ($261.26 million) for the first nine months of 2020, down from 2 billion riyals a year earlier.
Outside the Gulf, Egypt's blue-chip index .EGX30 closed down 0.4%, with most of the stocks on the index in negative territory including Madinet Nasr MNHD.CA, which was down 3.7%.
Major Gulf markets ended lower on Wednesday with the Saudi index leading losses, while Egypt's bourse was hurt by a blue-chip selloff.
Saudi Arabia's benchmark index .TASI fell 0.9%, with Saudi Electricity 5110.SE shedding 3.7% and National Gas and Industrialization Company 2080.SE dropping 1%.
However, National Commercial Bank (NCB) 1180.SE advanced 1.3% after it reported on Tuesday a nearly 24% rise in third-quarter net profit.
The kingdom's largest lender posted a net profit of 3.16 billion riyals ($842.60 million) in the quarter ended Sept. 30, up from 2.55 billion a year earlier.
Dubai's main share index .DFMGI slipped 0.2%, hurt by a 2.6% fall in blue-chip developer Emaar Properties EMAR.DU and a 1.3% fall in logistics firm Aramex ARMX.DU.
The Abu Dhabi index .ADI dropped 0.5%, weighed down by a 1.1% decline in telecoms firm Etisalat ETISALAT.AD and a 3.5% slide in Aldar Properties ALDAR.AD, ending four sessions of gains.
On Monday, Aldar saw its biggest intraday gain in nearly six years after announcing it will take over the management and development of government capital projects worth 30 billion dirhams ($8.17 billion) under an agreement with state-backed ADQ.
In Qatar, the index .QSI fell 0.3%, with Industries Qatar IQCD.QA losing 1.1%, a day after the petrochemical firm reported a net profit of 951 million riyals ($261.26 million) for the first nine months of 2020, down from 2 billion riyals a year earlier.
Outside the Gulf, Egypt's blue-chip index .EGX30 closed down 0.4%, with most of the stocks on the index in negative territory including Madinet Nasr MNHD.CA, which was down 3.7%.
#UAE's ADCB reports third quarter profit slip, more NMC-related impairments | Reuters
UAE's ADCB reports third quarter profit slip, more NMC-related impairments | Reuters
Abu Dhabi Commercial Bank (ADCB) ADCB.AD posted a 3% drop in third-quarter profit on Wednesday as the UAE's third-biggest lender took additional impairments on its exposure to hospital operator NMC Health and associated companies.
ADCB reported a net profit of 1.366 billion dirhams ($372 million) in the quarter ended September 30, down from 1.412 billion.
It reported 148 million dirhams in impairment charges related to troubled NMC Health, Finablr FINF.L and associated firms.
That brings such impairment charges to 1.38 billion dirhams.
With exposure of about $981 million, ADCB was a major lender to NMC Health, which went into administration this year after months of turmoil following questions over its financial reporting.
Abu Dhabi Commercial Bank (ADCB) ADCB.AD posted a 3% drop in third-quarter profit on Wednesday as the UAE's third-biggest lender took additional impairments on its exposure to hospital operator NMC Health and associated companies.
ADCB reported a net profit of 1.366 billion dirhams ($372 million) in the quarter ended September 30, down from 1.412 billion.
It reported 148 million dirhams in impairment charges related to troubled NMC Health, Finablr FINF.L and associated firms.
That brings such impairment charges to 1.38 billion dirhams.
With exposure of about $981 million, ADCB was a major lender to NMC Health, which went into administration this year after months of turmoil following questions over its financial reporting.
Emirate of #Sharjah to raise $250 mln in 2029 sukuk re-opening | Nasdaq
Emirate of Sharjah to raise $250 mln in 2029 sukuk re-opening | Nasdaq
Sharjah, the third-largest of the United Arab Emirates, sold $250 million in a re-opening of existing sukuk due in October 2029, a document from one of the banks arranging the deal showed on Wednesday.
It set the final yield at 2.75% after giving initial price guidance of around 2.9% and got more than $600 million in orders for the tap of the $750 million 3.234% sukuk due October 23, 2029.
A bond tap is where an existing transaction is reopened using the same documentation as before. This deal is expected to close later on Wednesday.
Sharjah has already raised $2 billion with two bond issues this year, in June and July, as it seeks to bolster its finances, which have been hit by the pandemic and cheap oil.
Sharjah, the third-largest of the United Arab Emirates, sold $250 million in a re-opening of existing sukuk due in October 2029, a document from one of the banks arranging the deal showed on Wednesday.
It set the final yield at 2.75% after giving initial price guidance of around 2.9% and got more than $600 million in orders for the tap of the $750 million 3.234% sukuk due October 23, 2029.
A bond tap is where an existing transaction is reopened using the same documentation as before. This deal is expected to close later on Wednesday.
Sharjah has already raised $2 billion with two bond issues this year, in June and July, as it seeks to bolster its finances, which have been hit by the pandemic and cheap oil.
#Saudi airline faces claim over 50 leased Airbus planes - documents | Reuters
Saudi airline faces claim over 50 leased Airbus planes - documents | Reuters
State-owned Saudi Arabian Airlines is facing a claim in London's High Court filed last month by a Dubai-based financial services firm over an alleged breach of lease agreements of 50 Airbus AIR.PA aircraft, court documents showed.
Alif Segregated Portfolio Company, which specialises in shariah-compliant aircraft leasing, has filed a complaint against the Jeddah-based carrier, also known as Saudia, in which it could seek at least $460 million in unpaid rent and maintenance cost.
Alif also demands other damages and costs, the documents seen by Reuters showed.
London’s High Court told Reuters the claim has been filed but not yet acknowledged by the defendant.
The airline, in a statement to Reuters, said it would stand by its contractual commitments and was also prepared to defend itself against inaccurate claims.
State-owned Saudi Arabian Airlines is facing a claim in London's High Court filed last month by a Dubai-based financial services firm over an alleged breach of lease agreements of 50 Airbus AIR.PA aircraft, court documents showed.
Alif Segregated Portfolio Company, which specialises in shariah-compliant aircraft leasing, has filed a complaint against the Jeddah-based carrier, also known as Saudia, in which it could seek at least $460 million in unpaid rent and maintenance cost.
Alif also demands other damages and costs, the documents seen by Reuters showed.
London’s High Court told Reuters the claim has been filed but not yet acknowledged by the defendant.
The airline, in a statement to Reuters, said it would stand by its contractual commitments and was also prepared to defend itself against inaccurate claims.
Iraq's Crumbling Economy Is Becoming a Threat to OPEC - Bloomberg
Iraq's Crumbling Economy Is Becoming a Threat to OPEC - Bloomberg
From his third-floor office in eastern Baghdad, Iraqi Oil Minister Ihsan Abdul Jabbar can see the rowdy protesters below as they march toward Tahrir Square, the symbolic heart of Iraq’s latest uprising.
On Sunday, thousands of Iraqis again gathered with national flags at the square, across the Tigris river from the heavily-fortified Green Zone, where the U.S. has its embassy. Their list of grievances was long: corrupt politicians, daily power cuts, dilapidated hospitals, crumbling roads and a lack of jobs. “We want our country back!” they chanted.
Iraq may be the world’s third-biggest oil exporter, but its economy is cratering after the coronavirus pandemic sapped global demand for energy and caused prices to collapse. The state’s finances are so dire it can’t pay teachers and civil servants on time, threatening a repeat of the upheaval that last year brought down the government and saw hundreds of protesters killed.
That’s created a dilemma for 46-year-old Abdul Jabbar, a chemical engineer and career oil man who’s now caught between the demands of an angry population and the pledges made to allies in OPEC. The cartel of oil producers is trying to bolster a fragile market by reining in supply and it needs major producers like Iraq to toe the line. For Iraq, restraining supply carries a massive economic -- and political -- cost. But breaking ranks is risky too: it could mean lower prices for everyone.
From his third-floor office in eastern Baghdad, Iraqi Oil Minister Ihsan Abdul Jabbar can see the rowdy protesters below as they march toward Tahrir Square, the symbolic heart of Iraq’s latest uprising.
On Sunday, thousands of Iraqis again gathered with national flags at the square, across the Tigris river from the heavily-fortified Green Zone, where the U.S. has its embassy. Their list of grievances was long: corrupt politicians, daily power cuts, dilapidated hospitals, crumbling roads and a lack of jobs. “We want our country back!” they chanted.
Iraq may be the world’s third-biggest oil exporter, but its economy is cratering after the coronavirus pandemic sapped global demand for energy and caused prices to collapse. The state’s finances are so dire it can’t pay teachers and civil servants on time, threatening a repeat of the upheaval that last year brought down the government and saw hundreds of protesters killed.
That’s created a dilemma for 46-year-old Abdul Jabbar, a chemical engineer and career oil man who’s now caught between the demands of an angry population and the pledges made to allies in OPEC. The cartel of oil producers is trying to bolster a fragile market by reining in supply and it needs major producers like Iraq to toe the line. For Iraq, restraining supply carries a massive economic -- and political -- cost. But breaking ranks is risky too: it could mean lower prices for everyone.
#Dubai's Amanat Holding terminates sale of Middlesex University | ZAWYA MENA Edition
Dubai's Amanat Holding terminates sale of Middlesex University | ZAWYA MENA Edition:
Dubai’s healthcare and education investment company Amanat Holdings has terminated its sale and purchase agreement for the Middlesex University Dubai campus.
The company announced in July that it would sell the campus, based in Knowledge Park, but issued a statement to Dubai Financial Market today, saying its sale and purchase agreement (SPA) with SW Holding Limited and Study World Education Holding Limited, also Dubai-based, had been terminated.
The company was to sell its 100 percent stake in Middlesex Associates through its fully owned subsidiary, AHE Alpha Limited.
Dr Mohamad Hamade, CEO of Amanat, said: “While we were enthusiastic about completing the transaction, we took the decision to terminate the SPA despite Amanat having completed all its obligations under the agreement.
Dubai’s healthcare and education investment company Amanat Holdings has terminated its sale and purchase agreement for the Middlesex University Dubai campus.
The company announced in July that it would sell the campus, based in Knowledge Park, but issued a statement to Dubai Financial Market today, saying its sale and purchase agreement (SPA) with SW Holding Limited and Study World Education Holding Limited, also Dubai-based, had been terminated.
The company was to sell its 100 percent stake in Middlesex Associates through its fully owned subsidiary, AHE Alpha Limited.
Dr Mohamad Hamade, CEO of Amanat, said: “While we were enthusiastic about completing the transaction, we took the decision to terminate the SPA despite Amanat having completed all its obligations under the agreement.
#Saudi stock exchange to triple daily trading limits for new listings | ZAWYA MENA Edition
Saudi stock exchange to triple daily trading limits for new listings | ZAWYA MENA Edition
In an announcement regarding the enhancements to the requirements governing negotiated deals and the fluctuation limits mechanism on the main market and Nomu-Parallel Market, Saudi Arabia’s stock market Tadawul said it will triple the daily trading limits for companies making their debut from November 8.
The enhancements to the fluctuation limits will be applied only on the first three days of trading newly listed security in the main market and on an ongoing basis for all listed securities in Nomu-Parallel Market.
Starting Nov. 8, newly listed stocks, will be allowed to rise or fall 30 percent on their first three days of trading, up from the current 10 percent limit. The daily limits will revert to 10 percent from the fourth day, Tadawul said in a statement.
In an announcement regarding the enhancements to the requirements governing negotiated deals and the fluctuation limits mechanism on the main market and Nomu-Parallel Market, Saudi Arabia’s stock market Tadawul said it will triple the daily trading limits for companies making their debut from November 8.
The enhancements to the fluctuation limits will be applied only on the first three days of trading newly listed security in the main market and on an ongoing basis for all listed securities in Nomu-Parallel Market.
Starting Nov. 8, newly listed stocks, will be allowed to rise or fall 30 percent on their first three days of trading, up from the current 10 percent limit. The daily limits will revert to 10 percent from the fourth day, Tadawul said in a statement.
Oil falls 2% as rise in U.S. crude stocks fans oversupply fears | Reuters
Oil falls 2% as rise in U.S. crude stocks fans oversupply fears | Reuters
Oil prices slid about 2 percent on Wednesday, giving up most of the previous day’s gains, as a surge in U.S. crude stocks and growing coronavirus infections in the United States and Europe fanned fears of a supply glut and weaker fuel demand.
Brent crude futures were down 74 cents, or 1.8%, at $40.46 a barrel by 0644 GMT, having climbed nearly 2% the previous day. U.S. oil was down 90 cents, or 2.3%, at $38.67, after gaining 2.6% on Tuesday.
U.S. crude oil and gasoline stocks rose last week, data from industry group the American Petroleum Institute showed, with crude inventories rising by 4.6 million barrels to about 495.2 million barrels, well above analysts’ expectations in a Reuters poll for a build of 1.2 million barrels.
“The higher-than-expected build in U.S. crude stocks prompted fresh selling, while concerns over supply disruption from Hurricane Zeta have receded,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
Oil prices slid about 2 percent on Wednesday, giving up most of the previous day’s gains, as a surge in U.S. crude stocks and growing coronavirus infections in the United States and Europe fanned fears of a supply glut and weaker fuel demand.
Brent crude futures were down 74 cents, or 1.8%, at $40.46 a barrel by 0644 GMT, having climbed nearly 2% the previous day. U.S. oil was down 90 cents, or 2.3%, at $38.67, after gaining 2.6% on Tuesday.
U.S. crude oil and gasoline stocks rose last week, data from industry group the American Petroleum Institute showed, with crude inventories rising by 4.6 million barrels to about 495.2 million barrels, well above analysts’ expectations in a Reuters poll for a build of 1.2 million barrels.
“The higher-than-expected build in U.S. crude stocks prompted fresh selling, while concerns over supply disruption from Hurricane Zeta have receded,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
MIDEAST STOCKS-Most major Gulf markets fall; Abu Dhabi gains | Nasdaq
MIDEAST STOCKS-Most major Gulf markets fall; Abu Dhabi gains | Nasdaq
Most major Gulf markets were negative early on Wednesday, with property shares weighing on the Dubai index, while Abu Dhabi bucked the trend.
Saudi Arabia's benchmark index .TASI slipped 0.1%, with oil giant Saudi Aramco 2222.SE and petrochemical firm Saudi Basic Industries 2010.SE both falling 0.6%.
However, the National Commercial Bank (NCB) 1180.SE advanced 1.5% after it reported on Tuesday a nearly 24% rise in third-quarter net profit, as net commission income rose and impairment charges dropped.
The kingdom's largest lender posted a net profit of 3.16 billion riyals ($842.60 million) in the quarter ended Sept. 30, up from 2.55 billion in the same period a year earlier.
Dubai's main share index .DFMGI fell 0.2%, hurt by a 1.8% drop in blue-chip developer Emaar Properties EMAR.DU and a 1.4% decline in its unit Emaar Malls EMAA.DU.
The Abu Dhabi index .ADI rose 0.4%, led by a 5.2% jump in aquaculture company International Holding IHC.AD and a 0.7% increase in the country's largest lender First Abu Dhabi Bank FAB.AD.
In Qatar, the index .QSI dropped 0.5%, dragged down by a 0.9% fall in the Gulf's largest lender Qatar National Bank QNBK.QA and a 1.3% decrease in Commercial Bank COMB.QA.
Elsewhere, Qatar Insurance QINS.QA retreated 1.8%. The insurer posted a net loss of 147.4 million riyals ($40.49 million) for the first nine months of 2020, compared to a profit of 485.2 million riyals a year earlier.
Most major Gulf markets were negative early on Wednesday, with property shares weighing on the Dubai index, while Abu Dhabi bucked the trend.
Saudi Arabia's benchmark index .TASI slipped 0.1%, with oil giant Saudi Aramco 2222.SE and petrochemical firm Saudi Basic Industries 2010.SE both falling 0.6%.
However, the National Commercial Bank (NCB) 1180.SE advanced 1.5% after it reported on Tuesday a nearly 24% rise in third-quarter net profit, as net commission income rose and impairment charges dropped.
The kingdom's largest lender posted a net profit of 3.16 billion riyals ($842.60 million) in the quarter ended Sept. 30, up from 2.55 billion in the same period a year earlier.
Dubai's main share index .DFMGI fell 0.2%, hurt by a 1.8% drop in blue-chip developer Emaar Properties EMAR.DU and a 1.4% decline in its unit Emaar Malls EMAA.DU.
The Abu Dhabi index .ADI rose 0.4%, led by a 5.2% jump in aquaculture company International Holding IHC.AD and a 0.7% increase in the country's largest lender First Abu Dhabi Bank FAB.AD.
In Qatar, the index .QSI dropped 0.5%, dragged down by a 0.9% fall in the Gulf's largest lender Qatar National Bank QNBK.QA and a 1.3% decrease in Commercial Bank COMB.QA.
Elsewhere, Qatar Insurance QINS.QA retreated 1.8%. The insurer posted a net loss of 147.4 million riyals ($40.49 million) for the first nine months of 2020, compared to a profit of 485.2 million riyals a year earlier.
Tuesday 27 October 2020
#SaudiArabia Plans to End Controversial ‘Kafala’ Labor System, Report Says - Bloomberg
Saudi Arabia Plans to End Controversial ‘Kafala’ Labor System, Report Says - Bloomberg
Saudi Arabia is set to announce major labor reforms that could effectively end its controversial “kafala” system for foreign workers, a news outlet close to the government reported.
New rules governing foreign labor are scheduled to be unveiled as early as next week and would be applied from the first half of 2021, the online Maaal newspaper reported, citing unidentified sources. The changes were to be disclosed earlier this year but were delayed by the pandemic, according to Maaal.
The so-called “kafala” system -- applied to foreign employees in Gulf Arab countries for decades -- has been criticized at home and abroad as a form of indentured servitude. Some economists argue it also entrenches an imbalanced labor market, where private employers hire cheaper and more easily exploitable foreign workers even as Saudi unemployment rises.
Foreign workers in Saudi Arabia currently must be tied to a sponsor whose permission they need to change jobs, open a bank account or even to leave the country on vacation. Several neighboring countries have taken steps to reform kafala without fully ending it.
Saudi Arabia is set to announce major labor reforms that could effectively end its controversial “kafala” system for foreign workers, a news outlet close to the government reported.
New rules governing foreign labor are scheduled to be unveiled as early as next week and would be applied from the first half of 2021, the online Maaal newspaper reported, citing unidentified sources. The changes were to be disclosed earlier this year but were delayed by the pandemic, according to Maaal.
The so-called “kafala” system -- applied to foreign employees in Gulf Arab countries for decades -- has been criticized at home and abroad as a form of indentured servitude. Some economists argue it also entrenches an imbalanced labor market, where private employers hire cheaper and more easily exploitable foreign workers even as Saudi unemployment rises.
Foreign workers in Saudi Arabia currently must be tied to a sponsor whose permission they need to change jobs, open a bank account or even to leave the country on vacation. Several neighboring countries have taken steps to reform kafala without fully ending it.
Oil rises 2% on U.S. Gulf shutdowns, outlook weak | Reuters
Oil rises 2% on U.S. Gulf shutdowns, outlook weak | Reuters
Crude settled higher on Tuesday as companies shut down some U.S. Gulf of Mexico oil production ahead of an approaching storm, although surging coronavirus infections and rising Libyan supply limited gains.
Companies including BP BP.L, Chevron CVX.N, Shell RDS.L and Equinor ASA EQNR.OL evacuated rigs or closed facilities. So far producers have shut 16%, or 294,000 barrels per day (bpd) of oil output due to Zeta, which weakened to a tropical storm on Tuesday from a hurricane on Monday, the U.S. National Hurricane Center (NHC) said.
Brent crude LCOc1 closed up 75 cents, or 1.9%, at $41.21 per barrel by 1:22 EDT (1722 GMT). U.S. oil CLc1 gained $1.01 cents, or 2.6%, to $39.57. Both contracts fell more than 3% on Monday.
The storm-induced bump in prices may be short-lived, however, with demand expected to weaken anew with coronavirus cases rising.
Crude settled higher on Tuesday as companies shut down some U.S. Gulf of Mexico oil production ahead of an approaching storm, although surging coronavirus infections and rising Libyan supply limited gains.
Companies including BP BP.L, Chevron CVX.N, Shell RDS.L and Equinor ASA EQNR.OL evacuated rigs or closed facilities. So far producers have shut 16%, or 294,000 barrels per day (bpd) of oil output due to Zeta, which weakened to a tropical storm on Tuesday from a hurricane on Monday, the U.S. National Hurricane Center (NHC) said.
Brent crude LCOc1 closed up 75 cents, or 1.9%, at $41.21 per barrel by 1:22 EDT (1722 GMT). U.S. oil CLc1 gained $1.01 cents, or 2.6%, to $39.57. Both contracts fell more than 3% on Monday.
The storm-induced bump in prices may be short-lived, however, with demand expected to weaken anew with coronavirus cases rising.
#Kuwait Cuts Some Rates to Ease Currency and Virus Pressures - Bloomberg
Kuwait Cuts Some Rates to Ease Currency and Virus Pressures - Bloomberg
Kuwait’s central bank cut interest rates on some monetary policy instruments in an effort to ease pressure on the currency while helping the economy cope with the impact of the Covid-19 pandemic.
In a surprise move, the central bank also said it would keep the discount rate at 1.5%, maintaining the existing cap for loans extended to customers in Kuwaiti dinars. At the same time, it lowered by 0.125% the repo rate and yields on term deposits, direct intervention instruments and public debt instruments across the entire yield curve up to the 10-year term. The change comes into effect Wednesday.
Kuwait’s central bank cut interest rates on some monetary policy instruments in an effort to ease pressure on the currency while helping the economy cope with the impact of the Covid-19 pandemic.
In a surprise move, the central bank also said it would keep the discount rate at 1.5%, maintaining the existing cap for loans extended to customers in Kuwaiti dinars. At the same time, it lowered by 0.125% the repo rate and yields on term deposits, direct intervention instruments and public debt instruments across the entire yield curve up to the 10-year term. The change comes into effect Wednesday.
“Cutting the repo rate should drive further improvement in Kuwaiti banks’ cost of funding, which was elevated last year, and support the margin outlook,” said Bloomberg Intelligence analyst Edmond Christou. “Any support is welcome given the pressure Kuwaiti banks are facing on revenues from Covid-19 relief measures and on the bottom line from stringent reserving requirement.”
Central banks across the Gulf reduced interest rates in March to bolster stimulus after the U.S. Federal Reserve lowered its benchmark to near zero to counter the economic fallout of the coronavirus.
#SaudiArabia's biggest bank NCB posts 23.7% rise in quarterly profit | Reuters
Saudi Arabia's biggest bank NCB posts 23.7% rise in quarterly profit | Reuters
Saudi Arabia's biggest lender National Commercial Bank 1180.SE on Tuesday posted a nearly 24% rise in third-quarter net profit, as net commission income rose and impairment charges dropped.
NCB posted a net profit of 3.16 billion riyals ($843 million) in the quarter ended September 30, up from 2.55 billion in the same period a year earlier.
CI Capital had forecast NCB would post a net profit of 2.1 billion riyals, while EFG Hermes had predicted 2.2 billion riyals.
Net impairment charges for expected credit losses were 379 million riyals for the quarter, down 43% from a year earlier.
Earlier this month NCB entered a binding merger agreement with smaller lender Samba Financial Group 1090.SE to create a combined entity with $223 billion in assets.
Saudi Arabia's biggest lender National Commercial Bank 1180.SE on Tuesday posted a nearly 24% rise in third-quarter net profit, as net commission income rose and impairment charges dropped.
NCB posted a net profit of 3.16 billion riyals ($843 million) in the quarter ended September 30, up from 2.55 billion in the same period a year earlier.
CI Capital had forecast NCB would post a net profit of 2.1 billion riyals, while EFG Hermes had predicted 2.2 billion riyals.
Net impairment charges for expected credit losses were 379 million riyals for the quarter, down 43% from a year earlier.
Earlier this month NCB entered a binding merger agreement with smaller lender Samba Financial Group 1090.SE to create a combined entity with $223 billion in assets.
#Kuwait is the GCC state most impacted by the low oil price - Moody's | ZAWYA MENA Edition
Kuwait is the GCC state most impacted by the low oil price - Moody's | ZAWYA MENA Edition
Kuwait is the GCC sovereign most exposed to the prolonged decline in oil prices caused by the COVID-19 pandemic, with a -29.2 percent oil and gas revenue shock, said Moody’s, while Bahrain is the least exposed of the GCC states, with a revenue impact of -4.2 percent.
The impact of the coronavirus shock on oil and gas revenue, based on the assumption that oil prices average about $35 per barrel this year.
Kuwait was followed by Saudi Arabia with a revenue shock of -12.7 percent, Oman with -12.2 percent, Abu Dhabi with -11 percent and Qatar with 7.8 percent.
In a webinar hosted by Moody’s on the impact of the pandemic and lower oil prices on GCC sovereigns, Alexander Perjessy, VP, senior analyst for Moody’s sovereign risk group, said: “The UAE and Qatar are likely to be able to able to offset a fairly large portion of the oil revenue lost this year through spending cuts.
“The fiscal measures implemented in Kuwait and Bahrain will not really offset anything, will only widen the deficits.
Kuwait is the GCC sovereign most exposed to the prolonged decline in oil prices caused by the COVID-19 pandemic, with a -29.2 percent oil and gas revenue shock, said Moody’s, while Bahrain is the least exposed of the GCC states, with a revenue impact of -4.2 percent.
The impact of the coronavirus shock on oil and gas revenue, based on the assumption that oil prices average about $35 per barrel this year.
Kuwait was followed by Saudi Arabia with a revenue shock of -12.7 percent, Oman with -12.2 percent, Abu Dhabi with -11 percent and Qatar with 7.8 percent.
In a webinar hosted by Moody’s on the impact of the pandemic and lower oil prices on GCC sovereigns, Alexander Perjessy, VP, senior analyst for Moody’s sovereign risk group, said: “The UAE and Qatar are likely to be able to able to offset a fairly large portion of the oil revenue lost this year through spending cuts.
“The fiscal measures implemented in Kuwait and Bahrain will not really offset anything, will only widen the deficits.
Oil rises towards $41 on U.S. Gulf shutdowns, outlook weak | Reuters
Oil rises towards $41 on U.S. Gulf shutdowns, outlook weak | Reuters
Oil rose on Tuesday towards $41 a barrel as oil companies shut down some U.S. Gulf of Mexico oil output due to a hurricane, although surging coronavirus infections and rising Libyan supply limited gains.
Companies including BP BP.L, Chevron CVX.N and Equinor ASA EQNR.OL evacuated rigs, and so far producers have shut 16%, or 293,656 barrels per day (bpd) of oil output due to Hurricane Zeta.
Brent crude LCOc1 was up 20 cents, or 0.5%, at $40.66 per barrel by 1344 GMT. U.S. oil CLc1 gained 18 cents, or 0.5%, to $38.74. Both contracts fell more than 3% on Monday.
“Whilst Hurricane Zeta could provide a price relief under the current circumstances, it will be very brief,” said Tamas Varga of oil broker PVM. “The mood is, indeed, souring.”
Oil rose on Tuesday towards $41 a barrel as oil companies shut down some U.S. Gulf of Mexico oil output due to a hurricane, although surging coronavirus infections and rising Libyan supply limited gains.
Companies including BP BP.L, Chevron CVX.N and Equinor ASA EQNR.OL evacuated rigs, and so far producers have shut 16%, or 293,656 barrels per day (bpd) of oil output due to Hurricane Zeta.
Brent crude LCOc1 was up 20 cents, or 0.5%, at $40.66 per barrel by 1344 GMT. U.S. oil CLc1 gained 18 cents, or 0.5%, to $38.74. Both contracts fell more than 3% on Monday.
“Whilst Hurricane Zeta could provide a price relief under the current circumstances, it will be very brief,” said Tamas Varga of oil broker PVM. “The mood is, indeed, souring.”
MIDEAST STOCKS-Property shares buoy #UAE bourses; Egypt snaps losing streak | Nasdaq
MIDEAST STOCKS-Property shares buoy UAE bourses; Egypt snaps losing streak | Nasdaq
Major Gulf markets ended higher on Tuesday, with gains in real estate shares boosting indexes in the United Arab Emirates, while Egypt snapped eight sessions of losses.
The Abu Dhabi index .ADI closed up 1.3%, boosted by a 11.8% surge in Aldar Properties ALDAR.AD which saw its biggest intraday gain in nearly six years on Monday after announcing it will take over the management and development of government capital projects worth 30 billion dirhams ($8.17 billion) under an agreement with state-backed ADQ.
First Abu Dhabi Bank FAB.AD increased 1.4%. In the previous session, the United Arab Emirates' biggest lender reported a 19% fall in quarterly profit, dragged down by a double-digit drop in net interest income and higher impairment charges.
Dubai's main share index .DFMGI gained 1.1%, led by a 5.8% rise in blue-chip developer Emaar Properties EMAR.DU and a 6.7% jump in DAMAC Properties DAMAC.DU.
Saudi Arabia's benchmark index .TASI added 0.5%, with oil giant Saudi Aramco 2222.SE rising 1.2% and Al Rajhi Bank 1120.SE increasing 0.5%.
The kingdom's Energy Minister Prince Abdulaziz bin Salman said on Monday that the worst was over for the oil market.
Elsewhere, National Commercial Bank 1180.SE advanced 1.1%. Post trading hours, the kingdom's largest lender reported a higher net profit in the third quarter.
In Qatar, the index .QSI rose 0.5%, supported by a 2.2% leap in lender Masraf Al Rayan MARK.QA and a 2.9% rise in Commercial Bank COMB.QA.
Outside the Gulf, Egypt's blue-chip index .EGX30 was up 0.5%, as most of the stocks on the index were in positive territory including Commercial International Bank Egypt COMI.CA, which was up 0.9%.
Major Gulf markets ended higher on Tuesday, with gains in real estate shares boosting indexes in the United Arab Emirates, while Egypt snapped eight sessions of losses.
The Abu Dhabi index .ADI closed up 1.3%, boosted by a 11.8% surge in Aldar Properties ALDAR.AD which saw its biggest intraday gain in nearly six years on Monday after announcing it will take over the management and development of government capital projects worth 30 billion dirhams ($8.17 billion) under an agreement with state-backed ADQ.
First Abu Dhabi Bank FAB.AD increased 1.4%. In the previous session, the United Arab Emirates' biggest lender reported a 19% fall in quarterly profit, dragged down by a double-digit drop in net interest income and higher impairment charges.
Dubai's main share index .DFMGI gained 1.1%, led by a 5.8% rise in blue-chip developer Emaar Properties EMAR.DU and a 6.7% jump in DAMAC Properties DAMAC.DU.
Saudi Arabia's benchmark index .TASI added 0.5%, with oil giant Saudi Aramco 2222.SE rising 1.2% and Al Rajhi Bank 1120.SE increasing 0.5%.
The kingdom's Energy Minister Prince Abdulaziz bin Salman said on Monday that the worst was over for the oil market.
Elsewhere, National Commercial Bank 1180.SE advanced 1.1%. Post trading hours, the kingdom's largest lender reported a higher net profit in the third quarter.
In Qatar, the index .QSI rose 0.5%, supported by a 2.2% leap in lender Masraf Al Rayan MARK.QA and a 2.9% rise in Commercial Bank COMB.QA.
Outside the Gulf, Egypt's blue-chip index .EGX30 was up 0.5%, as most of the stocks on the index were in positive territory including Commercial International Bank Egypt COMI.CA, which was up 0.9%.
ADNOC pipeline investor Galaxy starts marketing three-part bonds - document | Reuters
ADNOC pipeline investor Galaxy starts marketing three-part bonds - document | Reuters
Galaxy Pipeline Assets, owned by a consortium of investors that took a stake in Abu Dhabi ADNOC’s gas pipeline assets, started marketing a three-part dollar bond on Tuesday, a document showed.
The amortizing bonds are split into three tranches ranging from seven and a half to 20 years, according to the document issued by one of the banks leading the deal and seen by Reuters. They are being marketed with initial price guidance ranging from around 1.875% to 3.375%.
The issuer is owned by a consortium of investors including GIP, Brookfield, Singapore sovereign wealth fund GIC and European gas infrastructure owner and operator SNAM, which bought a stake in ADNOC’s gas pipeline assets earlier this year.
Galaxy Pipeline Assets, owned by a consortium of investors that took a stake in Abu Dhabi ADNOC’s gas pipeline assets, started marketing a three-part dollar bond on Tuesday, a document showed.
The amortizing bonds are split into three tranches ranging from seven and a half to 20 years, according to the document issued by one of the banks leading the deal and seen by Reuters. They are being marketed with initial price guidance ranging from around 1.875% to 3.375%.
The issuer is owned by a consortium of investors including GIP, Brookfield, Singapore sovereign wealth fund GIC and European gas infrastructure owner and operator SNAM, which bought a stake in ADNOC’s gas pipeline assets earlier this year.
#UAE's largest bank sees profits dip amid 'unprecedented' market conditions - Arabianbusiness
UAE's largest bank sees profits dip amid 'unprecedented' market conditions - Arabianbusiness
First Abu Dhabi Bank (FAB), the UAE's largest lender, has reported net profits of AED2.5 billion ($682 million) for the third quarter of 2020, up 4 percent on Q2 but down 19 percent on a year-earlier.
Net profit for the first nine months of 2020 stood at AED7.3 billion, 22 percent lower compared to the same period in 2019, mainly due to higher impairment charges and softer revenue but partly mitigated by cost optimisation, the bank said in a statement carried by state news agency WAM.
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| Image: ITP Media Group |
First Abu Dhabi Bank (FAB), the UAE's largest lender, has reported net profits of AED2.5 billion ($682 million) for the third quarter of 2020, up 4 percent on Q2 but down 19 percent on a year-earlier.
Net profit for the first nine months of 2020 stood at AED7.3 billion, 22 percent lower compared to the same period in 2019, mainly due to higher impairment charges and softer revenue but partly mitigated by cost optimisation, the bank said in a statement carried by state news agency WAM.
André Sayegh, group CEO, FAB, said: "FAB delivered a resilient performance in the first nine months of 2020, successfully managing key risks in the face of unprecedented economic and market conditions.
"With total assets almost reaching the AED1 trillion mark as of September-end 2020, our robust foundation enabled us to continue to support our clients, and to benefit from the gradual rebound in economic activity and market sentiment."
"With total assets almost reaching the AED1 trillion mark as of September-end 2020, our robust foundation enabled us to continue to support our clients, and to benefit from the gradual rebound in economic activity and market sentiment."
Etihad starts marketing dollar transition sukuk at around mid-2% - document | ZAWYA MENA Edition
Etihad starts marketing dollar transition sukuk at around mid-2% - document | ZAWYA MENA Edition
Etihad Airways, wholly owned by the Abu Dhabi government, on Tuesday began marketing U.S. dollar-denominated "transition" sukuk, or Islamic bonds, a document showed.
The airline gave initial price guidance in the mid-2% area for the sukuk, according to the document from one of the banks arranging the deal, which is expected to close on Wednesday.
So-called transition bonds are used by companies to gradually switch to more environmentally sustainable operations.
Etihad Airways, wholly owned by the Abu Dhabi government, on Tuesday began marketing U.S. dollar-denominated "transition" sukuk, or Islamic bonds, a document showed.
The airline gave initial price guidance in the mid-2% area for the sukuk, according to the document from one of the banks arranging the deal, which is expected to close on Wednesday.
So-called transition bonds are used by companies to gradually switch to more environmentally sustainable operations.
Emirate of #Sharjah hires banks for tap of 2029 sukuk - document | Reuters
Emirate of Sharjah hires banks for tap of 2029 sukuk - document | Reuters
Sharjah, the third-largest emirate of the United Arab Emirates, has hired banks to arrange a reopening of its existing $750 million 2029 sukuk, or Islamic bond, that it sold last year, a document showed.
It has hired Mashreqbank as financial advisor and mandated Dubai Islamic Bank, HSBC, Sharjah Islamic Bank and Standard Chartered to arrange investor calls starting on Tuesday. A tap of the $750 million 3.234% sukuk due October 23, 2029 will follow, subject to market conditions.
A bond tap is where an existing transaction is reopened for subscription using the same documentation as before.
Sharjah, the third-largest emirate of the United Arab Emirates, has hired banks to arrange a reopening of its existing $750 million 2029 sukuk, or Islamic bond, that it sold last year, a document showed.
It has hired Mashreqbank as financial advisor and mandated Dubai Islamic Bank, HSBC, Sharjah Islamic Bank and Standard Chartered to arrange investor calls starting on Tuesday. A tap of the $750 million 3.234% sukuk due October 23, 2029 will follow, subject to market conditions.
A bond tap is where an existing transaction is reopened for subscription using the same documentation as before.
#Dubai airport passenger traffic may fall 70% this year, CEO says | Reuters
Dubai airport passenger traffic may fall 70% this year, CEO says | Reuters
Dubai airport, the world’s busiest for international travel before the coronavirus crisis, could see passenger traffic fall by as much 70% this year, its chief executive said.
A wave of new infections around the world ahead of the typically busy Christmas and year-end travel season has brought further uncertainty to an industry already decimated by the pandemic.
Dubai airport could see passenger traffic fall 55-65% this year to 30-40 million passengers if it continues on its currently trajectory, CEO Paul Griffiths told Reuters.
The airport is handling around a million monthly passengers - more than it had projected - though Griffiths cautioned traffic could fall by as much as 70% this year.
Flights have gradually increased since a United Arab Emirates ban on most passenger services was lifted in June. Dubai state carrier Emirates is flying to around 100 destinations.
Dubai airport, the world’s busiest for international travel before the coronavirus crisis, could see passenger traffic fall by as much 70% this year, its chief executive said.
A wave of new infections around the world ahead of the typically busy Christmas and year-end travel season has brought further uncertainty to an industry already decimated by the pandemic.
Dubai airport could see passenger traffic fall 55-65% this year to 30-40 million passengers if it continues on its currently trajectory, CEO Paul Griffiths told Reuters.
The airport is handling around a million monthly passengers - more than it had projected - though Griffiths cautioned traffic could fall by as much as 70% this year.
Flights have gradually increased since a United Arab Emirates ban on most passenger services was lifted in June. Dubai state carrier Emirates is flying to around 100 destinations.
#Qatar-Owned Quintet Builds Family Office Unit With Key Hires - Bloomberg
Qatar-Owned Quintet Builds Family Office Unit With Key Hires - Bloomberg
Qatar-owned Quintet Private Bank SA has made key hires from rival banks as it builds out a business to manage the family wealth of entrepreneurs.
The Luxembourg-based group said it hired Cindy Eicher from JPMorgan’s Swiss wealth management business to co-head its Family Investment Office in Switzerland. It also brought in Raphael Drescher from Deutsche Bank AG to head the U.K. Family Investment Office and added three other heads of markets heads since last year, according to a bank spokesman.
The lender’s team of eight bankers plans to win business from active entrepreneurs with family wealth ranging in the tens to hundreds of millions of dollars, according to Philip Higson, head of the Family-Investment Office. Quintet plans to attract clients by offering investments in pre-IPO companies in the technology and healthcare sectors, setting the mid-sized bank apart from larger peers that only offer those services a narrower range of super-rich clients, he said.
The bank is owned by Precision Capital, a Luxembourg holding company representing some members of Qatar’s ruling Al Thani family. Jakob Stott took over as chief executive officer from Juerg Zeltner, the former UBS Group AG executive who died earlier this year. Under Stott, the bank is now seeking to simplify and reduce costs at its network of wealth-management businesses across Europe, including InsingerGilissen in the Netherlands and Brown Shipley in the U.K.
Qatar-owned Quintet Private Bank SA has made key hires from rival banks as it builds out a business to manage the family wealth of entrepreneurs.
The Luxembourg-based group said it hired Cindy Eicher from JPMorgan’s Swiss wealth management business to co-head its Family Investment Office in Switzerland. It also brought in Raphael Drescher from Deutsche Bank AG to head the U.K. Family Investment Office and added three other heads of markets heads since last year, according to a bank spokesman.
The lender’s team of eight bankers plans to win business from active entrepreneurs with family wealth ranging in the tens to hundreds of millions of dollars, according to Philip Higson, head of the Family-Investment Office. Quintet plans to attract clients by offering investments in pre-IPO companies in the technology and healthcare sectors, setting the mid-sized bank apart from larger peers that only offer those services a narrower range of super-rich clients, he said.
The bank is owned by Precision Capital, a Luxembourg holding company representing some members of Qatar’s ruling Al Thani family. Jakob Stott took over as chief executive officer from Juerg Zeltner, the former UBS Group AG executive who died earlier this year. Under Stott, the bank is now seeking to simplify and reduce costs at its network of wealth-management businesses across Europe, including InsingerGilissen in the Netherlands and Brown Shipley in the U.K.
#Dubai’s Peak Power Demand Rises in Sign of Economic Recovery - Bloomberg
Dubai’s Peak Power Demand Rises in Sign of Economic Recovery - Bloomberg
Demand for power in Dubai has risen from last year, according to the head of the emirate’s state-owned utility, a possible sign the economy is recovering from the coronavirus pandemic.
Dubai’s summertime peak electricity load rose by 6%, or roughly 500 megawatts, from 2019, Saeed Al Tayer, the chief executive officer of Dubai Electricity and Water Authority, said in an interview with Bloomberg TV.
“We are actually very optimistic because we thought that we would have negative growth,” Al Tayer said on Tuesday. “In the first quarter, it was negative growth. But then when the government decided to return to the offices and return to work,” demand climbed, he said.
The sheikhdom, one of seven that comprise the United Arab Emirates, is the Middle East’s main business hub and has been hit hard by declines in trade and tourism since the virus spread around the world. Economic activity has picked up since Dubai eased its own lockdown around May and June.
Demand for power in Dubai has risen from last year, according to the head of the emirate’s state-owned utility, a possible sign the economy is recovering from the coronavirus pandemic.
Dubai’s summertime peak electricity load rose by 6%, or roughly 500 megawatts, from 2019, Saeed Al Tayer, the chief executive officer of Dubai Electricity and Water Authority, said in an interview with Bloomberg TV.
“We are actually very optimistic because we thought that we would have negative growth,” Al Tayer said on Tuesday. “In the first quarter, it was negative growth. But then when the government decided to return to the offices and return to work,” demand climbed, he said.
The sheikhdom, one of seven that comprise the United Arab Emirates, is the Middle East’s main business hub and has been hit hard by declines in trade and tourism since the virus spread around the world. Economic activity has picked up since Dubai eased its own lockdown around May and June.
#Dubai to launch 'Nasdaq' market for emerging firms, SMEs | Reuters
Dubai to launch 'Nasdaq' market for emerging firms, SMEs | Reuters
Dubai plans to launch a “Nasdaq Dubai Growth Market” to help emerging companies, and small and medium enterprises (SMEs) attract investors and finance their projects, crown prince of the emirate, Sheikh Hamdan bin Mohammed bin Rashid al- Maktoum, said on Twitter on Tuesday.
The Nasdaq Dubai Growth Market will allow SMEs to list if they are valued below $250 million, with a minimum operating history of one year, compared to three years for Nasdaq Dubai’s main market, the Dubai Media Office said.
Nasdaq Dubai is collaborating with government bodies, UAE free zones and expert advisory companies as partners to launch the growth market in early 2021, it said.
Dubai plans to launch a “Nasdaq Dubai Growth Market” to help emerging companies, and small and medium enterprises (SMEs) attract investors and finance their projects, crown prince of the emirate, Sheikh Hamdan bin Mohammed bin Rashid al- Maktoum, said on Twitter on Tuesday.
The Nasdaq Dubai Growth Market will allow SMEs to list if they are valued below $250 million, with a minimum operating history of one year, compared to three years for Nasdaq Dubai’s main market, the Dubai Media Office said.
Nasdaq Dubai is collaborating with government bodies, UAE free zones and expert advisory companies as partners to launch the growth market in early 2021, it said.
Gulf economies set for steep contractions this year before rebounding - Reuters poll | Reuters
Gulf economies set for steep contractions this year before rebounding - Reuters poll | Reuters
The six-member Gulf Cooperation Council faces a steep economic contraction this year before partially rebounding in 2021, with most countries facing sharper declines than previously estimated, a quarterly Reuters poll showed.
Analysts in the Oct. 13-25 poll maintained their view that the region’s heavy dependence on hydrocarbons left it particularly hard-hit by the coronavirus crisis because of its effect on oil demand and prices.
New lockdown measures as infections continue to soar in the United States, Europe and elsewhere, could exacerbate already depressed economic activity.
Saudi Arabia, the region’s largest economy, is expected to face a GDP contraction of 5.1% this year and rebound to 3.1% growth next year and 2.7% growth in 2022. A poll conducted three months ago saw the world’s largest oil exporter contracting 5.2% in 2020.
“The region is now facing tough policy choices. Fiscal support is still needed to fight persistent and rising infections, already showing up in Europe and the U.S.,” noted analysts at NBK.
The six-member Gulf Cooperation Council faces a steep economic contraction this year before partially rebounding in 2021, with most countries facing sharper declines than previously estimated, a quarterly Reuters poll showed.
Analysts in the Oct. 13-25 poll maintained their view that the region’s heavy dependence on hydrocarbons left it particularly hard-hit by the coronavirus crisis because of its effect on oil demand and prices.
New lockdown measures as infections continue to soar in the United States, Europe and elsewhere, could exacerbate already depressed economic activity.
Saudi Arabia, the region’s largest economy, is expected to face a GDP contraction of 5.1% this year and rebound to 3.1% growth next year and 2.7% growth in 2022. A poll conducted three months ago saw the world’s largest oil exporter contracting 5.2% in 2020.
“The region is now facing tough policy choices. Fiscal support is still needed to fight persistent and rising infections, already showing up in Europe and the U.S.,” noted analysts at NBK.
Monday 26 October 2020
Oil drops 3% as virus infections, Libyan oil output rebound | Reuters
Oil drops 3% as virus infections, Libyan oil output rebound | Reuters
Oil prices fell more than 3% on Monday, extending last week’s losses as coronavirus cases continued to surge in the United States and Europe, while Libya’s rebound in crude production raised fears of oversupply.
The United States reported its highest number yet of new coronavirus infections in two days through Saturday, while in France new cases hit a record of more than 50,000 on Sunday. Italy and Spain imposed fresh restrictions to curb the virus.
“It’s a dark Monday in the oil market,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy. “We have long warned that a ‘second wave’ of strict coronavirus restriction measures could be re-imposed, and it’s now happening for real.”
Brent LCOc1 dropped $1.31, or 3.1%, to settle at $40.46 a barrel. U.S. West Texas Intermediate (WTI) fell $1.29, or 3.2%, to settle at $38.56 a barrel. Both contracts fell almost 2.5% last week.
Oil prices fell more than 3% on Monday, extending last week’s losses as coronavirus cases continued to surge in the United States and Europe, while Libya’s rebound in crude production raised fears of oversupply.
The United States reported its highest number yet of new coronavirus infections in two days through Saturday, while in France new cases hit a record of more than 50,000 on Sunday. Italy and Spain imposed fresh restrictions to curb the virus.
“It’s a dark Monday in the oil market,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy. “We have long warned that a ‘second wave’ of strict coronavirus restriction measures could be re-imposed, and it’s now happening for real.”
Brent LCOc1 dropped $1.31, or 3.1%, to settle at $40.46 a barrel. U.S. West Texas Intermediate (WTI) fell $1.29, or 3.2%, to settle at $38.56 a barrel. Both contracts fell almost 2.5% last week.
Saudi Arabia's Green Hydrogen Plan Won't Erode Oil's Dominance - Bloomberg
Saudi Arabia's Green Hydrogen Plan Won't Erode Oil's Dominance - Bloomberg
Saudi Arabia is building the world’s biggest green hydrogen facility, but oil will continue to be the kingdom’s main business after the plant starts operating in 2025. The $5 billion project will use renewable energy to produce hydrogen equivalent to as much as 15,000 barrels of oil a day, Ahmad Al-Khowaiter, Saudi Aramco’s chief technology officer, said last week. Saudi Arabia plans to increase its production capacity for crude oil to 13 million barrels a day from 12 million.
MIDEAST STOCKS-Aldar lifts #AbuDhabi, Egypt extends losses | Nasdaq
MIDEAST STOCKS-Aldar lifts Abu Dhabi, Egypt extends losses | Nasdaq
Abu Dhabi's index .ADI closed higher on Monday boosted by gains in Aldar Properties ALDAR.AD following a government projects management deal, while Egypt's stock market extended losses as Commercial International Bank Egypt COMI.CA continues to drop following removal of its chairman by the central Bank.
The Abu Dhabi index .ADI advanced 1.2% as Aldar Properties ALDAR.AD surged 14.9%, its biggest daily gain since December 18, 2014.
The real estate developer will take over the management and development of government capital projects worth 30 billion dirhams ($8.2 billion) under an agreement with state-backed ADQ.
The Egyptian blue-chip index .EGX30 fell 0.9% to extend the losses for an eighth straight day.
Commercial International Bank Egypt COMI.CA declined 1.8% in its third consecutive day of fall.
On Friday, the chairman of the country's largest lender Hisham Ezz al-Arab stepped down with immediate effect under orders from the central bank, which cited compliance concerns at the Egyptian lender.
Saudi Arabia's index .TASI rose as much as 1.4% in opening trade a day after it plunged 4.1%, but closed flat after volatile trading during the day.
Saudi Aramco 2222.SE fell 1.2% extending losses from the previous session.
Among the gainers, Dr. Sulaiman Al-Habib Medical Services Group 4013.SE, which reported a 50.9% rise in quarterly profit on Sunday, increased 2.5%.
The Qatari index .QSI closed flat as Commercial Bank COMB.QA lost 2.7% following a 22% drop in nine-month net profit to 1.15 billion ($315.93 million) riyals.
Among the gainers, Qatar National Bank QNBK.QA was up 0.7% and Qatar Gas Transport QGTS.QA rose 2.6%.
Kuwait's index .BKP dropped 2%, with all the trading stocks closing in the red. National Bank of Kuwait (NBK) NBKK.KW led the losers, declining 2.4%.
The bank reported a 38% drop in third-quarter net profit, hit by higher provisioning for bad debt and the slowdown caused by the COVID-19 pandemic.
Dubai's index .DFMGI closed down 0.5% with Emirates NBD Bank ENBD.DU shedding 1.7% and Damac Properties DAMAC.DU retreating 4.6%.
Abu Dhabi's index .ADI closed higher on Monday boosted by gains in Aldar Properties ALDAR.AD following a government projects management deal, while Egypt's stock market extended losses as Commercial International Bank Egypt COMI.CA continues to drop following removal of its chairman by the central Bank.
The Abu Dhabi index .ADI advanced 1.2% as Aldar Properties ALDAR.AD surged 14.9%, its biggest daily gain since December 18, 2014.
The real estate developer will take over the management and development of government capital projects worth 30 billion dirhams ($8.2 billion) under an agreement with state-backed ADQ.
The Egyptian blue-chip index .EGX30 fell 0.9% to extend the losses for an eighth straight day.
Commercial International Bank Egypt COMI.CA declined 1.8% in its third consecutive day of fall.
On Friday, the chairman of the country's largest lender Hisham Ezz al-Arab stepped down with immediate effect under orders from the central bank, which cited compliance concerns at the Egyptian lender.
Saudi Arabia's index .TASI rose as much as 1.4% in opening trade a day after it plunged 4.1%, but closed flat after volatile trading during the day.
Saudi Aramco 2222.SE fell 1.2% extending losses from the previous session.
Among the gainers, Dr. Sulaiman Al-Habib Medical Services Group 4013.SE, which reported a 50.9% rise in quarterly profit on Sunday, increased 2.5%.
The Qatari index .QSI closed flat as Commercial Bank COMB.QA lost 2.7% following a 22% drop in nine-month net profit to 1.15 billion ($315.93 million) riyals.
Among the gainers, Qatar National Bank QNBK.QA was up 0.7% and Qatar Gas Transport QGTS.QA rose 2.6%.
Kuwait's index .BKP dropped 2%, with all the trading stocks closing in the red. National Bank of Kuwait (NBK) NBKK.KW led the losers, declining 2.4%.
The bank reported a 38% drop in third-quarter net profit, hit by higher provisioning for bad debt and the slowdown caused by the COVID-19 pandemic.
Dubai's index .DFMGI closed down 0.5% with Emirates NBD Bank ENBD.DU shedding 1.7% and Damac Properties DAMAC.DU retreating 4.6%.
No need for negative rates now, expansion so far may be enough - #Israel central banker | Reuters
No need for negative rates now, expansion so far may be enough - Israel central banker | Reuters
The Bank of Israel sees little reason to push its key rate to zero or below given low borrowing costs for consumers and businesses and may not need to boost other stimulus measures, a senior central banker said on Monday.
Bank of Israel Deputy Governor Andrew Abir told Reuters the central bank could hold off with further action if the economy started to recover from the coronavirus pandemic, no more lockdowns are needed and access to credit grows.
He also said there has not been much need for significant intervention in the currency market recently because the shekel has mostly stayed in a fairly narrow range.
The shekel ILS=, which has appreciated more than 2% versus the dollar so far in 2020 and is near a 12-year peak, weakened to a rate of 3.384 from 3.38 prior to Abir's remarks.
The Bank of Israel last Thursday held its benchmark interest rate ILINR=ECI at 0.1% for a fourth straight decision, while expanding its government bond purchasing and boosting credit to small businesses.
The Bank of Israel sees little reason to push its key rate to zero or below given low borrowing costs for consumers and businesses and may not need to boost other stimulus measures, a senior central banker said on Monday.
Bank of Israel Deputy Governor Andrew Abir told Reuters the central bank could hold off with further action if the economy started to recover from the coronavirus pandemic, no more lockdowns are needed and access to credit grows.
He also said there has not been much need for significant intervention in the currency market recently because the shekel has mostly stayed in a fairly narrow range.
The shekel ILS=, which has appreciated more than 2% versus the dollar so far in 2020 and is near a 12-year peak, weakened to a rate of 3.384 from 3.38 prior to Abir's remarks.
The Bank of Israel last Thursday held its benchmark interest rate ILINR=ECI at 0.1% for a fourth straight decision, while expanding its government bond purchasing and boosting credit to small businesses.
UAE's biggest bank FAB posts 19% drop in third quarter net profit | Reuters
UAE's biggest bank FAB posts 19% drop in third quarter net profit | Reuters
First Abu Dhabi Bank FAB.AD, the United Arab Emirates' biggest lender, reported a 19% fall in quarterly profit on Monday, dragged down by a double-digit drop in net interest income and higher impairment charges. Third-quarter net profit was 2.506 billion dirhams ($682 million), versus 3.11 billion dirhams a year earlier.
CI Capital expected FAB to post a net profit of 2.5 billion dirhams, while EFG Hermes had a forecast of 2.2 billion dirhams.
Impairment charges in the quarter were 504 million dirhams, up 7% from a year earlier.
First Abu Dhabi Bank FAB.AD, the United Arab Emirates' biggest lender, reported a 19% fall in quarterly profit on Monday, dragged down by a double-digit drop in net interest income and higher impairment charges. Third-quarter net profit was 2.506 billion dirhams ($682 million), versus 3.11 billion dirhams a year earlier.
CI Capital expected FAB to post a net profit of 2.5 billion dirhams, while EFG Hermes had a forecast of 2.2 billion dirhams.
Impairment charges in the quarter were 504 million dirhams, up 7% from a year earlier.
Oil drops on rising virus cases, increasing Libyan output | Reuters
Oil drops on rising virus cases, increasing Libyan output | Reuters
Oil prices fell on Monday, extending last week’s losses, as increasing coronavirus cases in the United States and Europe raised worries about energy demand, while Libya’s fast growing production also weighed on prices.
Brent was down 88 cents, or 2.1%, at $40.89 by 1306 GMT. U.S. West Texas Intermediate (WTI) dropped 92 cents, or 2.3%, to $38.93. Both contracts fell almost 2.5% last week.
The United States reported its highest number yet of new coronavirus infections in two days through Saturday, while in France new cases hit a record of more than 50,000 on Sunday. Italy and Spain imposed fresh restrictions to curb the virus.
The rising number of cases “not only highlight the risks posed by immediate transport restrictions, but also dampen long-term demand expectations,” said Commerzbank analyst Eugen Weinberg.
Brent was down 88 cents, or 2.1%, at $40.89 by 1306 GMT. U.S. West Texas Intermediate (WTI) dropped 92 cents, or 2.3%, to $38.93. Both contracts fell almost 2.5% last week.
The United States reported its highest number yet of new coronavirus infections in two days through Saturday, while in France new cases hit a record of more than 50,000 on Sunday. Italy and Spain imposed fresh restrictions to curb the virus.
The rising number of cases “not only highlight the risks posed by immediate transport restrictions, but also dampen long-term demand expectations,” said Commerzbank analyst Eugen Weinberg.
Column: Funds buy crude on expected delay to OPEC+ output increase - Kemp | Reuters
Column: Funds buy crude on expected delay to OPEC+ output increase - Kemp | Reuters
Hedge funds purchased crude futures and options at the fastest rate for six months as portfolio managers became increasingly confident OPEC+ will postpone scheduled output increases until demand is stronger.
The equivalent of 55 million barrels was purchased by hedge funds and other money managers in the six most important petroleum futures and options contracts in the week to Oct. 22.
Buying was concentrated in NYMEX and ICE WTI (+36 million barrels) and Brent (+20 million), with only minor adjustments in U.S. diesel (+2 million) and European gasoil (-4 million) and no change in U.S. gasoline.
In crude, fund managers continued to buy back previous bearish short positions (+22 million barrels), as in previous weeks, but also started to establish new bullish long positions (+34 million).
The net position in crude has increased over the two most recent weeks to 464 million barrels, up from a low of 380 million on Oct. 6 (tmsnrt.rs/3msmkRD).
The equivalent of 55 million barrels was purchased by hedge funds and other money managers in the six most important petroleum futures and options contracts in the week to Oct. 22.
Buying was concentrated in NYMEX and ICE WTI (+36 million barrels) and Brent (+20 million), with only minor adjustments in U.S. diesel (+2 million) and European gasoil (-4 million) and no change in U.S. gasoline.
In crude, fund managers continued to buy back previous bearish short positions (+22 million barrels), as in previous weeks, but also started to establish new bullish long positions (+34 million).
The net position in crude has increased over the two most recent weeks to 464 million barrels, up from a low of 380 million on Oct. 6 (tmsnrt.rs/3msmkRD).
#UAE vs #Turkey: the regional rivalries pitting MBZ against Erdogan | Financial Times
UAE vs Turkey: the regional rivalries pitting MBZ against Erdogan | Financial Times
When Sheikh Mohammed bin Zayed, the United Arab Emirates’ de facto leader, shook up the Middle East by agreeing to normalise relations with Israel, just two states in the region cried foul.
When Sheikh Mohammed bin Zayed, the United Arab Emirates’ de facto leader, shook up the Middle East by agreeing to normalise relations with Israel, just two states in the region cried foul.
Iran was predictably first up. Regime hardliners in the theocracy often call for the destruction of the Jewish state and deride the UAE as an American stooge. But arguably the harshest reaction came from Turkey, despite it being the first majority Muslim country to recognise Israel seven decades ago.
After Ankara raged that “the conscience of the region’s people” would “never forgive this hypocritical behaviour,” president Recep Tayyip Erdogan threatened to withdraw Turkey’s ambassador to the UAE. Abu Dhabi had anticipated the verbal salvo from both countries. But it was Turkey’s response that would have irked most.
During the past 18 months, the UAE has sought to reduce tensions with Tehran, and Emirati officials insisted September’s Israel deal had nothing to do with Iran, saying Abu Dhabi wanted to use diplomacy and de-escalation to resolve its issues with the Islamic republic. But just as Sheikh Mohammed, Abu Dhabi’s crown prince, has sought to cool the temperature with one nemesis, the UAE’s rivalry with Turkey has moved to a whole new level.
Over 10 months of accusation and counter accusation, it has become the Middle East’s most toxic feud, pitting two of the region’s most powerful, assertive leaders against each other; one of the US’s closest Arab partners against a Nato member. And it has reverberated from the oil-rich Gulf to the Horn of Africa and the front lines of Libya’s civil war, further fuelling tensions in the eastern Mediterranean.
Mideast’s Top Private Equity Firm Ready to Pounce as Rivals Fade - Bloomberg
Mideast’s Top Private Equity Firm Ready to Pounce as Rivals Fade - Bloomberg
The biggest private equity and alternative asset manager in the Middle East is on the lookout for deals after the economic fallout of the pandemic made companies cheaper to buy and scandals thinned out the competition.
Investcorp Holding BSC, which manages about $34 billion, is looking to do more in the region across the health-care, transport, logistics and industrial sectors, said Walid Majdalani, the firm’s head of private equity for the Middle East and North Africa.
The firm, which has channeled $1.4 billion into the region over the past decade and made a return of about 1.8 times on invested capital, is also facing less competition from other private equity investors, he said. Over the past four years, Investcorp helped sell three family-controlled companies in which it held stakes on the Saudi stock exchange.
“We see a lot of opportunity to replicate what we have done already in Saudi Arabia -- the difference is now business owners are a lot more realistic about valuations,” Majdalani said. “Also, in terms of other people who do what we do and have teams on the ground, today we don’t see a lot of competition.”
The private equity industry in the Middle East has been rocked by the collapse of Abraaj Capital in 2018 and the arrest of several of its executives amid allegations that it misused investor funds. Dubai-based Al Masah Capital Ltd. was placed in liquidation earlier this year after it was fined for allegedly misleading investors about fees and its founder Shailesh Dash banned from working in the emirate’s financial center.
The biggest private equity and alternative asset manager in the Middle East is on the lookout for deals after the economic fallout of the pandemic made companies cheaper to buy and scandals thinned out the competition.
Investcorp Holding BSC, which manages about $34 billion, is looking to do more in the region across the health-care, transport, logistics and industrial sectors, said Walid Majdalani, the firm’s head of private equity for the Middle East and North Africa.
The firm, which has channeled $1.4 billion into the region over the past decade and made a return of about 1.8 times on invested capital, is also facing less competition from other private equity investors, he said. Over the past four years, Investcorp helped sell three family-controlled companies in which it held stakes on the Saudi stock exchange.
“We see a lot of opportunity to replicate what we have done already in Saudi Arabia -- the difference is now business owners are a lot more realistic about valuations,” Majdalani said. “Also, in terms of other people who do what we do and have teams on the ground, today we don’t see a lot of competition.”
The private equity industry in the Middle East has been rocked by the collapse of Abraaj Capital in 2018 and the arrest of several of its executives amid allegations that it misused investor funds. Dubai-based Al Masah Capital Ltd. was placed in liquidation earlier this year after it was fined for allegedly misleading investors about fees and its founder Shailesh Dash banned from working in the emirate’s financial center.
How the amended bankruptcy law can boost the #UAE's economy - Arabianbusiness
How the amended bankruptcy law can boost the UAE's economy - Arabianbusiness
The UAE's decision to amend its Bankruptcy Law is an important step to boost investor confidence in the country, according to Hamad Buamim, the president and CEO of Dubai Chamber of Commerce.
The amendments, which were announced by the UAE Cabinet last week, enable individuals and businesses to overcome credit challenges in “emergency situations”, including the current one brought on by coronavirus.
“The decision to amend the UAE Bankruptcy Law is an important development that will ensure business continuity, boost investor confidence and enhance economic competitiveness,” said Buamim.
“The move complements the latest AED500 million ($136 million) economic stimulus package introduced by the Dubai government, which expands on ongoing efforts to help businesses overcome new challenges created by the pandemic,” he said.
Dubai announced the extra stimulus package late on Sunday in support of the coronavirus-hit businesses.
The UAE's decision to amend its Bankruptcy Law is an important step to boost investor confidence in the country, according to Hamad Buamim, the president and CEO of Dubai Chamber of Commerce.
The amendments, which were announced by the UAE Cabinet last week, enable individuals and businesses to overcome credit challenges in “emergency situations”, including the current one brought on by coronavirus.
“The decision to amend the UAE Bankruptcy Law is an important development that will ensure business continuity, boost investor confidence and enhance economic competitiveness,” said Buamim.
“The move complements the latest AED500 million ($136 million) economic stimulus package introduced by the Dubai government, which expands on ongoing efforts to help businesses overcome new challenges created by the pandemic,” he said.
Dubai announced the extra stimulus package late on Sunday in support of the coronavirus-hit businesses.
Chevron bets on Middle East gas riches and reconciliation | Reuters
Chevron bets on Middle East gas riches and reconciliation | Reuters
After years of focusing on U.S. shale, Chevron Corp CVX.N is staking its natural gas future on the Middle East, a volatile and divided region where energy majors have long tread warily.
CEO Michael Wirth’s pivot away from home is underpinned by a bet that the Middle East is entering an era of reconciliation that will make it ideal for tapping natural gas, as demand for the cheaper and cleaner fuel is forecast to outstrip oil.
The new strategy is seeing the company pitch new gas deals in Egypt, Israel, Qatar, while cutting spending on American shale exploration.
The plan is anchored by Wirth’s $11.8 billion purchase this month of U.S.-based Noble Energy, which holds a stake of about 40% in the aptly-named Leviathan gas field in the Mediterranean Sea, off the coast of Israel.
“Five years ago the Eastern Med wasn’t viewed as endowed from a resource standpoint as I think most people would say today. That’s a fundamental shift,” Wirth told Reuters in an interview.
After years of focusing on U.S. shale, Chevron Corp CVX.N is staking its natural gas future on the Middle East, a volatile and divided region where energy majors have long tread warily.
CEO Michael Wirth’s pivot away from home is underpinned by a bet that the Middle East is entering an era of reconciliation that will make it ideal for tapping natural gas, as demand for the cheaper and cleaner fuel is forecast to outstrip oil.
The new strategy is seeing the company pitch new gas deals in Egypt, Israel, Qatar, while cutting spending on American shale exploration.
The plan is anchored by Wirth’s $11.8 billion purchase this month of U.S.-based Noble Energy, which holds a stake of about 40% in the aptly-named Leviathan gas field in the Mediterranean Sea, off the coast of Israel.
“Five years ago the Eastern Med wasn’t viewed as endowed from a resource standpoint as I think most people would say today. That’s a fundamental shift,” Wirth told Reuters in an interview.
World should look at all options to reduce emissions, not get rid of oil, gas, #Saudi energy minister says | Reuters
World should look at all options to reduce emissions, not get rid of oil, gas, Saudi energy minister says | Reuters
Saudi Arabia’s energy minister said on Monday the world should be looking at all options to mitigate emissions of greenhouse gases in its fight against climate change, but that getting rid of oil and gas would be “far-fetched and unrealistic”.
“Let’s not focus on the fuel of choice but rather how we can mitigate and adapt to these realities without showing any preferences,” Abdulaziz bin Salman Al Saud told the Singapore Energy Summit.
“Let’s not focus on the fuel of choice but rather how we can mitigate and adapt to these realities without showing any preferences,” Abdulaziz bin Salman Al Saud told the Singapore Energy Summit.
#Dubai Bourse Set for First IPO in Three Years With Al Mal REIT - Bloomberg
Dubai Bourse Set for First IPO in Three Years With Al Mal REIT - Bloomberg
Al Mal Capital plans to sell shares in its real estate investment trust in January, reviving the IPO market in Dubai.
The company has received regulatory approval to list Al Mal Capital REIT on Dubai Financial Market PJSC, according to a statement on Monday. It is targeting an offer size of 500 million dirhams ($136.1 million) to acquire a diversified portfolio of real estate assets.
The DFM last saw an IPO in 2017, in contrast with Saudi Arabia that has had a raft of offerings this year. The IPO would be the first REIT to list on Dubai’s biggest and most liquid stock exchange, though two REITs already trade on the Nasdaq Dubai bourse.
Chronic oversupply has battered property values and rents in Dubai over the past six years, and measures to curb the spread of the coronavirus have aggravated that decline. Demand is expected to drop further as jobs are lost and expatriates forced to move out.
Al Mal Capital plans to sell shares in its real estate investment trust in January, reviving the IPO market in Dubai.
The company has received regulatory approval to list Al Mal Capital REIT on Dubai Financial Market PJSC, according to a statement on Monday. It is targeting an offer size of 500 million dirhams ($136.1 million) to acquire a diversified portfolio of real estate assets.
The DFM last saw an IPO in 2017, in contrast with Saudi Arabia that has had a raft of offerings this year. The IPO would be the first REIT to list on Dubai’s biggest and most liquid stock exchange, though two REITs already trade on the Nasdaq Dubai bourse.
Chronic oversupply has battered property values and rents in Dubai over the past six years, and measures to curb the spread of the coronavirus have aggravated that decline. Demand is expected to drop further as jobs are lost and expatriates forced to move out.
Emaar Eclipsed as Top #UAE Developer After $8 Billion Aldar Deal - Bloomberg
Emaar Eclipsed as Top UAE Developer After $8 Billion Aldar Deal - Bloomberg
Aldar Properties PJSC became the biggest listed developer in the United Arab Emirates after its shares rose the most in six years on the back of an $8.2 billion deal with a state-owned entity in Abu Dhabi.
The stock climbed as much as 15% to trade at 2.54 dirhams ($0.69), the highest level since early 2017. The rally lifted Aldar’s market value to about 20 billion dirhams, taking it past Burj Khalifa developer Emaar Properties PJSC.
Aldar Properties PJSC became the biggest listed developer in the United Arab Emirates after its shares rose the most in six years on the back of an $8.2 billion deal with a state-owned entity in Abu Dhabi.
The stock climbed as much as 15% to trade at 2.54 dirhams ($0.69), the highest level since early 2017. The rally lifted Aldar’s market value to about 20 billion dirhams, taking it past Burj Khalifa developer Emaar Properties PJSC.
Aldar will take over the development and management of projects worth 30 billion dirhams in Abu Dhabi as part of an agreement with ADQ, according to a statement on Sunday. The transaction “will significantly support future profit growth,” Aldar Chief Executive officer Talal Al Dhiyebi said.
Much of the UAE has been struggling with excess supply in the real estate market, a glut compounded by job losses that are pushing the largely expatriate population out. Although oversupply in Abu Dhabi is less severe than in Dubai, there have been concerns around prospects for growth.
Property prices have slid by 30% in Dubai since 2014 amid a slump in oil prices, a commodity that underpins the economies of the entire Gulf region. Now, the pandemic has hit even the most diversified companies as hospitality, retail, education and commercial real estate struggle with declining demand.
Much of the UAE has been struggling with excess supply in the real estate market, a glut compounded by job losses that are pushing the largely expatriate population out. Although oversupply in Abu Dhabi is less severe than in Dubai, there have been concerns around prospects for growth.
Property prices have slid by 30% in Dubai since 2014 amid a slump in oil prices, a commodity that underpins the economies of the entire Gulf region. Now, the pandemic has hit even the most diversified companies as hospitality, retail, education and commercial real estate struggle with declining demand.
Rents in #Dubai continue to plunge as more tenants vacate homes | ZAWYA MENA Edition
Rents in Dubai continue to plunge as more tenants vacate homes | ZAWYA MENA Edition
Residential rents in Dubai continue to decline, as more tenants move out of their homes amid the challenges resulting from the coronavirus pandemic, according to a new report.
Tenant movement increased significantly during the third quarter of the year, with residents either downsizing, leaving the UAE or sending their dependent families back to their home countries, property consultancy Asteco said.
From July to September, villa rents fell by 2 percent over the previous quarter and 9 percent compared with the same period last year. The decline in apartment rents was more pronounced, recording quarterly and annual decreases of 4 percent and 13 percent, respectively.
“While numerous residents are downsizing in terms of unit sizes, quality specification and/ or location, others are repatriating to their home countries or sending their extended family back due to job losses, salary cuts and/ or simply as a pre-emptive measure given current uncertainties and risks,” the firm said.
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Aerial view of urban skyline and skyscrapers in Dubai UAE. Image used for illustrative purpose Getty Images |
Tenant movement increased significantly during the third quarter of the year, with residents either downsizing, leaving the UAE or sending their dependent families back to their home countries, property consultancy Asteco said.
From July to September, villa rents fell by 2 percent over the previous quarter and 9 percent compared with the same period last year. The decline in apartment rents was more pronounced, recording quarterly and annual decreases of 4 percent and 13 percent, respectively.
“While numerous residents are downsizing in terms of unit sizes, quality specification and/ or location, others are repatriating to their home countries or sending their extended family back due to job losses, salary cuts and/ or simply as a pre-emptive measure given current uncertainties and risks,” the firm said.
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