Saudi King and Putin Discuss Oil Market After Virus Slams Prices - Bloomberg: Saudi and Russian leaders held a rare phone call as oil markets tumbled, the latest signal that the OPEC+ alliance is trying to build a consensus for an output cut to prop up prices.
Russian President Vladimir Putin and Saudi King Salman bin Abdulaziz discussed the global energy market on Monday evening, the Kremlin said in a statement. Both leaders confirmed “readiness to continue cooperation within OPEC+,” it said. The kingdom also confirmed the call.
U.S. crude futures sank below $50 a barrel for the first time in more than a year on Monday, as fears gripped investors that the deadly coronavirus outbreak in China is crushing demand in the world’s biggest oil-importing nation. Global benchmark Brent crude in London slid below $55 to the lowest in over a year.
The rout has added pressure on the producer group, and while leading member Saudi Arabia has been pushing since last week for action, it has met resistance from Russia. Oil demand in China is said to have plunged as much as 20% because of the virus outbreak, with cities in lockdown, flights canceled, and refineries curbing operations.
Monday, 3 February 2020
Oil hits 13-month lows as coronavirus cuts demand - Reuters
Oil hits 13-month lows as coronavirus cuts demand - Reuters:
Oil prices fell to the lowest in more than a year on Monday as the coronavirus outbreak curtailed Chinese demand and sparked potential supply cuts by OPEC and its allies.
Brent crude LCOc1 settled down $2.17, or 3.8% at $54.45 a barrel, its lowest since January last year.
U.S. West Texas Intermediate (WTI) crude CLc1 fell $1.45 a barrel to $50.12 after touching a session low of $49.91, also the lowest since January 2019.
“We have not seen a demand destruction event of this scale that moves this quickly,” said Phil Flynn, analyst at Price Futures Group in Chicago.
Oil prices fell to the lowest in more than a year on Monday as the coronavirus outbreak curtailed Chinese demand and sparked potential supply cuts by OPEC and its allies.
Brent crude LCOc1 settled down $2.17, or 3.8% at $54.45 a barrel, its lowest since January last year.
U.S. West Texas Intermediate (WTI) crude CLc1 fell $1.45 a barrel to $50.12 after touching a session low of $49.91, also the lowest since January 2019.
“We have not seen a demand destruction event of this scale that moves this quickly,” said Phil Flynn, analyst at Price Futures Group in Chicago.
Travelex: Bank currency services still offline after hack - BBC News
Travelex: Bank currency services still offline after hack - BBC News:
Sainsbury's Bank, Royal Bank of Scotland, Lloyds and Barclays are among major High Street banks still unable to offer online currency services.
The problem stems from provider Travelex, which is still working to bring back services more than a month after it suffered a major cyber attack.
Customers are able to buy in branches, but cannot order money online or over the phone.
It is understood the currency firm aims to start restoring services this week.
Travelex had to take down its website after the hack was discovered on New Year's Eve.
Sainsbury's Bank, Royal Bank of Scotland, Lloyds and Barclays are among major High Street banks still unable to offer online currency services.
The problem stems from provider Travelex, which is still working to bring back services more than a month after it suffered a major cyber attack.
Customers are able to buy in branches, but cannot order money online or over the phone.
It is understood the currency firm aims to start restoring services this week.
Travelex had to take down its website after the hack was discovered on New Year's Eve.
#UAE banks to maintain 'stable' credit profiles in 2020, S&P says - The National
UAE banks to maintain 'stable' credit profiles in 2020, S&P says - The National:
Banks in the UAE are expected to remain resilient despite tougher operating conditions this year, as Abu Dhabi’s fiscal stimulus helps propel the emirate’s economy and Expo 2020 boosts tourism activity in Dubai, according to S&P Global Ratings.
Despite pressure on margins, the rating agency expects a “mid-single-digit net lending expansion in 2020”, S&P said in its latest report on banks it rates in the country. Lending growth in the country slowed slightly to 4.5 per cent on annualised basis in the first nine months of 2019, but the ratings agency expects a pick-up to 5 or 6 per cent in this year.
“In 2020, we expect the UAE economy will expand at a slightly higher pace compared with 2019, thanks to Abu Dhabi's $13.6 billion (Dh50bn) stimulus package,” S&P credit analyst Puneet Tuli wrote in the report released on Monday. “The Dubai government's planned investments for the 2020 World Expo …. should prop-up investments in the non-oil economy and increase tourism-related activities.”
Banks in the UAE are expected to remain resilient despite tougher operating conditions this year, as Abu Dhabi’s fiscal stimulus helps propel the emirate’s economy and Expo 2020 boosts tourism activity in Dubai, according to S&P Global Ratings.
Despite pressure on margins, the rating agency expects a “mid-single-digit net lending expansion in 2020”, S&P said in its latest report on banks it rates in the country. Lending growth in the country slowed slightly to 4.5 per cent on annualised basis in the first nine months of 2019, but the ratings agency expects a pick-up to 5 or 6 per cent in this year.
“In 2020, we expect the UAE economy will expand at a slightly higher pace compared with 2019, thanks to Abu Dhabi's $13.6 billion (Dh50bn) stimulus package,” S&P credit analyst Puneet Tuli wrote in the report released on Monday. “The Dubai government's planned investments for the 2020 World Expo …. should prop-up investments in the non-oil economy and increase tourism-related activities.”
#Dubai, #AbuDhabi Find Natural Gas in Drive to End Qatar Imports - Bloomberg
Dubai, Abu Dhabi Find Natural Gas in Drive to End Qatar Imports - Bloomberg:
Dubai and Abu Dhabi made what could be the world’s largest natural gas discovery since 2005 as the two biggest sheikhdoms in the United Arab Emirates aim to push the country to energy self sufficiency.
The Jebel Ali reservoir located between the two emirates has 80 trillion cubic feet of gas resources, according to tweets by Sheikh Mohammed bin Zayed Al Nahyan, Abu Dhabi’s crown prince, and Sheikh Mohammed bin Rashid Al Maktoum, the U.A.E.’s prime minister and Dubai’s ruler. The country is seeking to become self-sufficiency in gas supply by 2030, a step that would allow it to break its reliance on imports from Qatar, with which it has been locked in a 2 1/2-year diplomatic dispute.
“This is an enormous discovery for the U.A.E.,” said Liam Yates, an analyst at consultant Wood Mackenzie Ltd. The deposit could meet the country’s entire gas demand for nearly three decades, depending on the amount of gas that can be recovered from the reservoir, he said.
Abu Dhabi National Oil Co., the government-owned energy giant known as Adnoc, will jointly develop the reservoir with distributor the Dubai Supply Authority.
Dubai and Abu Dhabi made what could be the world’s largest natural gas discovery since 2005 as the two biggest sheikhdoms in the United Arab Emirates aim to push the country to energy self sufficiency.
The Jebel Ali reservoir located between the two emirates has 80 trillion cubic feet of gas resources, according to tweets by Sheikh Mohammed bin Zayed Al Nahyan, Abu Dhabi’s crown prince, and Sheikh Mohammed bin Rashid Al Maktoum, the U.A.E.’s prime minister and Dubai’s ruler. The country is seeking to become self-sufficiency in gas supply by 2030, a step that would allow it to break its reliance on imports from Qatar, with which it has been locked in a 2 1/2-year diplomatic dispute.
“This is an enormous discovery for the U.A.E.,” said Liam Yates, an analyst at consultant Wood Mackenzie Ltd. The deposit could meet the country’s entire gas demand for nearly three decades, depending on the amount of gas that can be recovered from the reservoir, he said.
Abu Dhabi National Oil Co., the government-owned energy giant known as Adnoc, will jointly develop the reservoir with distributor the Dubai Supply Authority.
Oil Tumbles Below $50 a Barrel as Virus Saps Chinese Demand - Bloomberg
Oil Tumbles Below $50 a Barrel as Virus Saps Chinese Demand - Bloomberg:
Oil fell below $50 a barrel for the first time in more than a year as China’s oil consumption was said to plunge by 20% amid the spread of coronavirus, threatening what could be the largest demand shock since the since the global financial crisis.
Futures sank as much as 3.2% in New York and 4.2% in London on Monday as oil demand in the world’s biggest importer dropped by around 3 million barrels a day, according to people with inside knowledge of the country’s energy industry. The front-month Brent contract sank to a discount below further out futures for the first time since July, another sign of slack demand for crude.
Oil fell below $50 a barrel for the first time in more than a year as China’s oil consumption was said to plunge by 20% amid the spread of coronavirus, threatening what could be the largest demand shock since the since the global financial crisis.
Futures sank as much as 3.2% in New York and 4.2% in London on Monday as oil demand in the world’s biggest importer dropped by around 3 million barrels a day, according to people with inside knowledge of the country’s energy industry. The front-month Brent contract sank to a discount below further out futures for the first time since July, another sign of slack demand for crude.
#Dubai Aerospace secures $300mln five-year financing deal | ZAWYA MENA Edition
Dubai Aerospace secures $300mln five-year financing deal | ZAWYA MENA Edition:
Dubai Aerospace Enterprise (DAE), a top tier aircraft lessor, has signed a $300 million five-year dual tranche unsecured term financing facility with Emirates Islamic and Emirates NBD Capital.
The facility will contain a conventional and an Islamic tranche and can be upsized to $600 million, DAE said in a statement, noting that it will support the future financing needs of DAE’s business.
Salah Amin, Chief Executive Officer of Emirates Islamic commented, “We are committed to support the growth and development of prominent local companies like DAE.” Fahad Al Qassim, Chief Executive Officer of Emirates NBD Capital commented: “Emirates NBD Capital as the global investment bank for Emirates NBD Group is pleased to support DAE in achieving its long-term objectives."
Dubai Aerospace Enterprise (DAE), a top tier aircraft lessor, has signed a $300 million five-year dual tranche unsecured term financing facility with Emirates Islamic and Emirates NBD Capital.
The facility will contain a conventional and an Islamic tranche and can be upsized to $600 million, DAE said in a statement, noting that it will support the future financing needs of DAE’s business.
Salah Amin, Chief Executive Officer of Emirates Islamic commented, “We are committed to support the growth and development of prominent local companies like DAE.” Fahad Al Qassim, Chief Executive Officer of Emirates NBD Capital commented: “Emirates NBD Capital as the global investment bank for Emirates NBD Group is pleased to support DAE in achieving its long-term objectives."
#Dubai's MashreqBank reports quarterly profit slide as impairments surge - Reuters
Dubai's MashreqBank reports quarterly profit slide as impairments surge - Reuters:
Dubai’s Mashreqbank posted a 1.4% decline in fourth-quarter profit on Monday as impairment charges rose 29%, offsetting a double-digit rise in net interest income and income from Islamic financing.
Banks in the United Arab Emirates have reported a sharp spike in bad debt charges in the fourth quarter, as they navigate a sluggish economy and a property downturn in Dubai that has hit contractors.
MashreqBank’s bigger rival Emirates NBD reported a three-fold rise in impairment charges, partly hurt by bad debt charges at its newly acquired Turkish lender.
Mashreqbank’s fourth-quarter net profit was 308 million dirhams ($84 million), down from 312 million dirhams a year earlier, missing a forecast by analysts at Arqaam Capital who had projected a net profit of 399 million dirhams.
Dubai’s Mashreqbank posted a 1.4% decline in fourth-quarter profit on Monday as impairment charges rose 29%, offsetting a double-digit rise in net interest income and income from Islamic financing.
Banks in the United Arab Emirates have reported a sharp spike in bad debt charges in the fourth quarter, as they navigate a sluggish economy and a property downturn in Dubai that has hit contractors.
MashreqBank’s bigger rival Emirates NBD reported a three-fold rise in impairment charges, partly hurt by bad debt charges at its newly acquired Turkish lender.
Mashreqbank’s fourth-quarter net profit was 308 million dirhams ($84 million), down from 312 million dirhams a year earlier, missing a forecast by analysts at Arqaam Capital who had projected a net profit of 399 million dirhams.
Oil falls as coronavirus hits demand; OPEC+ considers deeper cuts - Reuters
Oil falls as coronavirus hits demand; OPEC+ considers deeper cuts - Reuters:
Oil prices fell on Monday, dragged down by concern over demand in China after the coronavirus breakout, though the possibility of deeper crude output cuts by OPEC and its allies offered some price support.
Brent crude LCOc1 was down $1 at $55.62 a barrel by 1434 GMT, its lowest since January last year.
U.S. West Texas Intermediate (WTI) crude CLc1 fell 58 cents to $50.98 after hitting a session low of $50.42, also the lowest since January last year.
As the coronavirus outbreak hit fuel demand in China, the world’s biggest crude oil importer, refiner Sinopec Corp (0386.HK) told its facilities to cut throughput this month by about 600,000 barrels per day (bpd), or 12%, the steepest cut in more than a decade.
Oil prices fell on Monday, dragged down by concern over demand in China after the coronavirus breakout, though the possibility of deeper crude output cuts by OPEC and its allies offered some price support.
Brent crude LCOc1 was down $1 at $55.62 a barrel by 1434 GMT, its lowest since January last year.
U.S. West Texas Intermediate (WTI) crude CLc1 fell 58 cents to $50.98 after hitting a session low of $50.42, also the lowest since January last year.
As the coronavirus outbreak hit fuel demand in China, the world’s biggest crude oil importer, refiner Sinopec Corp (0386.HK) told its facilities to cut throughput this month by about 600,000 barrels per day (bpd), or 12%, the steepest cut in more than a decade.
OPEC+ considering further 500,000 bpd oil output cut: sources - Reuters
OPEC+ considering further 500,000 bpd oil output cut: sources - Reuters:
OPEC and its allies are considering cutting their oil output by a further 500,000 barrels per day (bpd) due to the impact on oil demand from the coronavirus, two OPEC sources and a third industry source familiar with discussions said.
The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, are considering holding a ministerial meeting on Feb. 14-15, one of the OPEC sources said, earlier than a current schedule for a meeting in March.
Oil LCOc1 has fallen $10 a barrel this year to $56, lower than the level many OPEC countries need to balance their budgets. The coronavirus outbreak in China could cut oil demand by more than 250,000 bpd in the first quarter, analysts and traders say.
OPEC member Iran said on Monday the spread of the virus had hit oil demand and called for an effort to stabilize prices, Iran’s official news agency IRNA reported.
OPEC and its allies are considering cutting their oil output by a further 500,000 barrels per day (bpd) due to the impact on oil demand from the coronavirus, two OPEC sources and a third industry source familiar with discussions said.
The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, are considering holding a ministerial meeting on Feb. 14-15, one of the OPEC sources said, earlier than a current schedule for a meeting in March.
Oil LCOc1 has fallen $10 a barrel this year to $56, lower than the level many OPEC countries need to balance their budgets. The coronavirus outbreak in China could cut oil demand by more than 250,000 bpd in the first quarter, analysts and traders say.
OPEC member Iran said on Monday the spread of the virus had hit oil demand and called for an effort to stabilize prices, Iran’s official news agency IRNA reported.
MIDEAST DEBT-China virus may further subdue Gulf bond sales in 2020 - Reuters
MIDEAST DEBT-China virus may further subdue Gulf bond sales in 2020 - Reuters:
The uncertainty surrounding the new coronavirus outbreak has added to fund managers’ expectations that 2020 will see fewer hard currency bond issues from the Gulf compared to last year.
Governments and corporates in the Gulf have increasingly turned to the debt markets in recent years to replenish coffers depleted by lower oil prices while taking advantage of global low rates.
Last year the Gulf supplied a record $87.6 billion in international bonds, according to Refinitiv data, eclipsing the $71.8 billion in 2018 and topping 2017’s record $84 billion.
But a rise in regional bond spreads since the beginning of the year suggests the impact of China’s coronavirus outbreak on global economic growth may translate into higher funding costs for Middle East debt issuers, potentially curbing new borrowing.
The uncertainty surrounding the new coronavirus outbreak has added to fund managers’ expectations that 2020 will see fewer hard currency bond issues from the Gulf compared to last year.
Governments and corporates in the Gulf have increasingly turned to the debt markets in recent years to replenish coffers depleted by lower oil prices while taking advantage of global low rates.
Last year the Gulf supplied a record $87.6 billion in international bonds, according to Refinitiv data, eclipsing the $71.8 billion in 2018 and topping 2017’s record $84 billion.
But a rise in regional bond spreads since the beginning of the year suggests the impact of China’s coronavirus outbreak on global economic growth may translate into higher funding costs for Middle East debt issuers, potentially curbing new borrowing.
COLUMN-Funds dump oil as fears about coronavirus hit to demand grow: Kemp - Reuters
COLUMN-Funds dump oil as fears about coronavirus hit to demand grow: Kemp - Reuters:
Hedge funds were heavy sellers of crude oil and refined products last week as the worsening coronavirus outbreak stoked fears about a China-led slowdown in oil consumption in 2020.
Sunny optimism at the start of the year about an acceleration in the global economy has evaporated, replaced instead by extreme concern that the coronavirus and quarantine measures will hit oil consumption hard.
Travel restrictions within China, the reduction in passenger flights to and from the country, and the slump in freight movements will all severely dent oil demand, especially for middle distillates such as diesel and gasoil.
Hedge funds and other money managers sold petroleum futures and options in the six most important contracts equivalent to 147 million barrels in the week to Jan. 28, according to data from regulators and exchanges.
Hedge funds were heavy sellers of crude oil and refined products last week as the worsening coronavirus outbreak stoked fears about a China-led slowdown in oil consumption in 2020.
Sunny optimism at the start of the year about an acceleration in the global economy has evaporated, replaced instead by extreme concern that the coronavirus and quarantine measures will hit oil consumption hard.
Travel restrictions within China, the reduction in passenger flights to and from the country, and the slump in freight movements will all severely dent oil demand, especially for middle distillates such as diesel and gasoil.
Hedge funds and other money managers sold petroleum futures and options in the six most important contracts equivalent to 147 million barrels in the week to Jan. 28, according to data from regulators and exchanges.
MIDEAST STOCKS-Most major Gulf stocks extend losses; Aramco touches low | Nasdaq
MIDEAST STOCKS-Most major Gulf stocks extend losses; Aramco touches low | Nasdaq:
Most major Gulf stocks extended their declines on Monday in line with their global peers, amid fears the coronavirus epidemic would hit Chinese demand. Dubai bucked the trend, helped by its financial services.
Qatar's index .QSI dropped 1.1%; all the stocks in its index fell except one. Mesaieed Petrochemical MPHC.QA plunged 5.2% and Commercial Bank COMB.QA lost 2.3%.
Saudi Arabia's benchmark index .TASI retreated 0.6% with Samba Financial Group 1090.SE shedding 2.7%, a day after it reported a decline in its annual profit before tax and zakat.
Saudi British Bank 1060.SE dropped 3%. Saudi Aramco 2222.SE reversed course to close flat after reaching its lowest since it began trading on Dec. 11.
Most major Gulf stocks extended their declines on Monday in line with their global peers, amid fears the coronavirus epidemic would hit Chinese demand. Dubai bucked the trend, helped by its financial services.
Qatar's index .QSI dropped 1.1%; all the stocks in its index fell except one. Mesaieed Petrochemical MPHC.QA plunged 5.2% and Commercial Bank COMB.QA lost 2.3%.
Saudi Arabia's benchmark index .TASI retreated 0.6% with Samba Financial Group 1090.SE shedding 2.7%, a day after it reported a decline in its annual profit before tax and zakat.
Saudi British Bank 1060.SE dropped 3%. Saudi Aramco 2222.SE reversed course to close flat after reaching its lowest since it began trading on Dec. 11.
Citi Doesn’t See Oil Revival From Virus Until Fourth Quarter - Bloomberg
Citi Doesn’t See Oil Revival From Virus Until Fourth Quarter - Bloomberg:
Citigroup Inc. slashed its price forecasts for commodities from oil to copper and iron ore as it said the impact of the coronavirus looks much worse than it initially thought.
Oil came in for the most severe downgrades, with the bank cutting estimates for the first three quarters. Citi also reduced its first-quarter copper projection by almost a fifth, noting the outbreak had “drastically shifted” the Chinese and global economic outlook, analysts including Ed Morse, wrote in a note.
Chinese government measures amount to a “major shutdown of the economy” and even with a deeper OPEC+ production cut it will drive weaker oil balances, Morse, the global head of commodities research, said in the note. “There would be critical knock-on indirect effects for all commodities.”
The lender slashed its first-quarter Brent oil estimate to $54 a barrel from $69. Reductions in projections for the following two quarters are based on its view the virus will have a longer and deeper impact than previously anticipated. It said the global crude benchmark could fall as low as $47 a barrel, which would be the weakest level in two and a half years.
Citigroup Inc. slashed its price forecasts for commodities from oil to copper and iron ore as it said the impact of the coronavirus looks much worse than it initially thought.
Oil came in for the most severe downgrades, with the bank cutting estimates for the first three quarters. Citi also reduced its first-quarter copper projection by almost a fifth, noting the outbreak had “drastically shifted” the Chinese and global economic outlook, analysts including Ed Morse, wrote in a note.
Chinese government measures amount to a “major shutdown of the economy” and even with a deeper OPEC+ production cut it will drive weaker oil balances, Morse, the global head of commodities research, said in the note. “There would be critical knock-on indirect effects for all commodities.”
The lender slashed its first-quarter Brent oil estimate to $54 a barrel from $69. Reductions in projections for the following two quarters are based on its view the virus will have a longer and deeper impact than previously anticipated. It said the global crude benchmark could fall as low as $47 a barrel, which would be the weakest level in two and a half years.
MIDEAST STOCKS-Major Gulf markets mixed; #UAE's TAQA surges on deal - Reuters
MIDEAST STOCKS-Major Gulf markets mixed; UAE's TAQA surges on deal - Reuters:
Dubai’s stock market rose on Monday, led by gains in banking and property shares, while other Gulf bourses were mixed as investors await corporate earnings announcements.
In Dubai, the index gained 0.8% with blue-chip developer Emaar Properties adding 1.3%, while Dubai Islamic Bank was up 1.1%.
The United Arab Emirates’ largest sharia-compliant lender could axe more than half its workforce with a planned 500-plus job cuts at newly acquired Noor Bank as part of cost reductions across both lenders, Reuters reported on Sunday citing three sources close to the matter.
Elsewhere, Oman Insurance soared 11.3%, its biggest intraday gain since August, following an agreement to acquire an additional 49% stake in its subsidiary Dubai Starr Sigorta.
Dubai’s stock market rose on Monday, led by gains in banking and property shares, while other Gulf bourses were mixed as investors await corporate earnings announcements.
In Dubai, the index gained 0.8% with blue-chip developer Emaar Properties adding 1.3%, while Dubai Islamic Bank was up 1.1%.
The United Arab Emirates’ largest sharia-compliant lender could axe more than half its workforce with a planned 500-plus job cuts at newly acquired Noor Bank as part of cost reductions across both lenders, Reuters reported on Sunday citing three sources close to the matter.
Elsewhere, Oman Insurance soared 11.3%, its biggest intraday gain since August, following an agreement to acquire an additional 49% stake in its subsidiary Dubai Starr Sigorta.
Coronavirus Update: Chinese Oil Demand Has Plunged - Bloomberg
Coronavirus Update: Chinese Oil Demand Has Plunged - Bloomberg:
Chinese oil demand has dropped by about three million barrels a day, or 20% of total consumption, as the coronavirus squeezes the economy, according to people with inside knowledge of the country’s energy industry.
The drop is probably the largest demand shock the oil market has suffered since the global financial crisis of 2008 to 2009, and the most sudden since the Sept. 11 attacks. It could force the hand of OPEC and its allies, which are considering an emergency meeting to cut production and staunch the decline in prices, which are headed for the lowest close in four months.
“It is truly a black swan event for the oil market,” said John Kilduff, a partner at Again Capital LLC in New York. “There was some hope for the demand outlook this year before the outbreak, but that has been knocked off its block. OPEC+ has to react. If there are no further production cuts, there will only be more price losses.”
Chinese oil demand has dropped by about three million barrels a day, or 20% of total consumption, as the coronavirus squeezes the economy, according to people with inside knowledge of the country’s energy industry.
The drop is probably the largest demand shock the oil market has suffered since the global financial crisis of 2008 to 2009, and the most sudden since the Sept. 11 attacks. It could force the hand of OPEC and its allies, which are considering an emergency meeting to cut production and staunch the decline in prices, which are headed for the lowest close in four months.
“It is truly a black swan event for the oil market,” said John Kilduff, a partner at Again Capital LLC in New York. “There was some hope for the demand outlook this year before the outbreak, but that has been knocked off its block. OPEC+ has to react. If there are no further production cuts, there will only be more price losses.”
Brexit 'clarity' brings Middle East demand for London real estate - Arabianbusiness
Brexit 'clarity' brings Middle East demand for London real estate - Arabianbusiness:
As the uncertainty over Brexit clears somewhat, following the United Kingdom’s official departure from the European Union on February 1, UAE buyers are already setting their sights on London’s real estate market.
According to the latest London Market Update from Dubai-based real estate outfit Core, the election of Boris Johnson as prime minister, followed by confirmation that Britain has left the EU, has been met with renewed optimism from Middle East investors.
The report said: “We are witnessing a rise in enquiries for prime central London properties from UAE buyers who have until now awaited clarity on Brexit.”
Latest data from LonRes shows Q4 2019 transaction volumes increased 34 percent year-on-year, with a particular spike at the upper end of the market - £5m-plus ($6.6m) transactions were up by 78 percent.
As the uncertainty over Brexit clears somewhat, following the United Kingdom’s official departure from the European Union on February 1, UAE buyers are already setting their sights on London’s real estate market.
According to the latest London Market Update from Dubai-based real estate outfit Core, the election of Boris Johnson as prime minister, followed by confirmation that Britain has left the EU, has been met with renewed optimism from Middle East investors.
The report said: “We are witnessing a rise in enquiries for prime central London properties from UAE buyers who have until now awaited clarity on Brexit.”
Latest data from LonRes shows Q4 2019 transaction volumes increased 34 percent year-on-year, with a particular spike at the upper end of the market - £5m-plus ($6.6m) transactions were up by 78 percent.
#Dubai-based delivery-only kitchen platform raises $60 million to expand - Reuters
Dubai-based delivery-only kitchen platform raises $60 million to expand - Reuters:
Kitopi, a shared kitchen platform for online food delivery, has raised $60 million in a new round of financing led by Knollwood Investment Advisory and Lumia Capital to expand its services, the company said on Monday.
The “Series B” financing, which is a round to fund growth, comes after it last raised $27.2 million in late 2018.
So-called ‘cloud kitchens’, facilities built to produce food specifically for delivery, are becoming popular with investors.
A similar startup launched by former Uber CEO Travis Kalanick reportedly attracted investment from the Saudi Arabia’s sovereign investment fund.
Kitopi, a shared kitchen platform for online food delivery, has raised $60 million in a new round of financing led by Knollwood Investment Advisory and Lumia Capital to expand its services, the company said on Monday.
The “Series B” financing, which is a round to fund growth, comes after it last raised $27.2 million in late 2018.
So-called ‘cloud kitchens’, facilities built to produce food specifically for delivery, are becoming popular with investors.
A similar startup launched by former Uber CEO Travis Kalanick reportedly attracted investment from the Saudi Arabia’s sovereign investment fund.
Brent crude falls as China cuts refining rates on virus outbreak - Reuters
Brent crude falls as China cuts refining rates on virus outbreak - Reuters:
Brent crude prices fell on Monday to their lowest in more than a year, dragged down by worries about lower demand in China, the world’s largest oil importer, following a coronavirus outbreak there.
There are signs fuel demand has plunged in China as airlines have canceled flights to halt the spread of the coronavirus and as provinces delay the reopening of factories after the Lunar New Year holiday. Supply chains across the world’s second-largest economy and crude consumer have been disrupted, prompting its biggest refiner Sinopec to cut output by about 12% this month.
Brent crude was at $56.44 a barrel by 0750 GMT, down 18 cents, or 0.3%, Prices dropped by as much as 2.1% to $55.42, the lowest since Jan. 4, 2019.
U.S. West Texas Intermediate (WTI) crude rose 10 cents to $51.66 a barrel, after earlier hitting a session low of $50.42, down 2.2% to the lowest since Jan. 14, 2019.
Brent crude prices fell on Monday to their lowest in more than a year, dragged down by worries about lower demand in China, the world’s largest oil importer, following a coronavirus outbreak there.
There are signs fuel demand has plunged in China as airlines have canceled flights to halt the spread of the coronavirus and as provinces delay the reopening of factories after the Lunar New Year holiday. Supply chains across the world’s second-largest economy and crude consumer have been disrupted, prompting its biggest refiner Sinopec to cut output by about 12% this month.
Brent crude was at $56.44 a barrel by 0750 GMT, down 18 cents, or 0.3%, Prices dropped by as much as 2.1% to $55.42, the lowest since Jan. 4, 2019.
U.S. West Texas Intermediate (WTI) crude rose 10 cents to $51.66 a barrel, after earlier hitting a session low of $50.42, down 2.2% to the lowest since Jan. 14, 2019.
More IPOs likely in GCC this year, but will not surpass value | ZAWYA MENA Edition
More IPOs likely in GCC this year, but will not surpass value | ZAWYA MENA Edition:
Led by Saudi Arabia and the UAE, initial public offering (IPO) activity in the Gulf is expected to pick up in 2020, with around 16 companies likely to go public as compared to nine firms last year, analysts say.
Though the number of IPOs are expected to surpass last year's, the value is highly unlikely to cross 2019's figures in the foreseeable future due to Saudi Aramco's record fund-raising in the last quarter of 2019.
Nine companies in the region went public in 2019 as compared to 17 in the previous year. However, 2019 was headlined by the much-awaited IPO of Saudi Aramco announced in Q4, that eventually raised $29.4 billion and became the world's largest company at $2 trillion. As a result, capital issuances in the GCC last year through the IPO market jumped nearly 13 times year-on-year to $31.1 billion.
MR Raghu, managing director of Marmore Mena Intelligence, says there is better business optimism in the air for 2020, thanks to measures like the US-China trade war agreement, increase in foreign ownership limits, and initiatives to facilitate listing of family-owned businesses to go in for IPOs.
Led by Saudi Arabia and the UAE, initial public offering (IPO) activity in the Gulf is expected to pick up in 2020, with around 16 companies likely to go public as compared to nine firms last year, analysts say.
Though the number of IPOs are expected to surpass last year's, the value is highly unlikely to cross 2019's figures in the foreseeable future due to Saudi Aramco's record fund-raising in the last quarter of 2019.
Nine companies in the region went public in 2019 as compared to 17 in the previous year. However, 2019 was headlined by the much-awaited IPO of Saudi Aramco announced in Q4, that eventually raised $29.4 billion and became the world's largest company at $2 trillion. As a result, capital issuances in the GCC last year through the IPO market jumped nearly 13 times year-on-year to $31.1 billion.
MR Raghu, managing director of Marmore Mena Intelligence, says there is better business optimism in the air for 2020, thanks to measures like the US-China trade war agreement, increase in foreign ownership limits, and initiatives to facilitate listing of family-owned businesses to go in for IPOs.
#UAE to develop new gas field with reserves of 80 tcf - Reuters
UAE to develop new gas field with reserves of 80 tcf - Reuters:
The United Arab Emirates announced the discovery of a new gas field with an estimated reserves of 80 trillion cubic feet, the country’s prime minister tweeted on Monday.
The gas field will be developed by both Abu Dhabi National Oil Company (ADNOC) and Dubai Supply Authority (DUSUP), Sheikh Mohammed bin Rashid al-Maktoum, who is also the ruler of Dubai, said on his official Twitter account.
The United Arab Emirates announced the discovery of a new gas field with an estimated reserves of 80 trillion cubic feet, the country’s prime minister tweeted on Monday.
The gas field will be developed by both Abu Dhabi National Oil Company (ADNOC) and Dubai Supply Authority (DUSUP), Sheikh Mohammed bin Rashid al-Maktoum, who is also the ruler of Dubai, said on his official Twitter account.
#AbuDhabi Power to take control of utility TAQA in asset swap, creating $54.5 billion entity - Reuters
Abu Dhabi Power to take control of utility TAQA in asset swap, creating $54.5 billion entity - Reuters:
Abu Dhabi Power Corporation (ADPower) plans to take control of Abu Dhabi National Energy Company (TAQA) (TAQA.AD) in an asset swap deal that would create a combined utility with assets worth a total of around 200 billion dirhams ($54.5 billion).
ADPower, a public joint stock company that owns most of Abu Dhabi’s water and electricity assets, said on Monday it would transfer the majority of its water and electricity generation, transmission, and distribution companies to TAQA in return for 106,367,950,000 convertible shares in the latter.
After the conversion - contingent on the asset transfer being made - ADPower would own 98.6% of the entire issued share capital of TAQA. The offer implies an equity value for TAQA of 4.16 billion dirhams, said ADPower, wholly owned by the Abu Dhabi Development Holding Company.
Oil-rich Abu Dhabi has seen some of its largest firms merge in the last few years in response to an earlier oil price slump.
Abu Dhabi Power Corporation (ADPower) plans to take control of Abu Dhabi National Energy Company (TAQA) (TAQA.AD) in an asset swap deal that would create a combined utility with assets worth a total of around 200 billion dirhams ($54.5 billion).
ADPower, a public joint stock company that owns most of Abu Dhabi’s water and electricity assets, said on Monday it would transfer the majority of its water and electricity generation, transmission, and distribution companies to TAQA in return for 106,367,950,000 convertible shares in the latter.
After the conversion - contingent on the asset transfer being made - ADPower would own 98.6% of the entire issued share capital of TAQA. The offer implies an equity value for TAQA of 4.16 billion dirhams, said ADPower, wholly owned by the Abu Dhabi Development Holding Company.
Oil-rich Abu Dhabi has seen some of its largest firms merge in the last few years in response to an earlier oil price slump.