Middle East Stock Exchange News for Feb. 9, 2020 - Bloomberg:
Saudi Arabia’s main stock index dropped for a third day, finishing below a mark it has held since December, as the coronavirus reduces demand for oil.
The Tadawul index fell 1.3%, the most among major gauges in the Middle East and below its 100-day moving average for the first time this year. State oil producer Saudi Aramco retreated as much as 1.8% during the session, but recovered near the close to finish higher.
Banking and materials stocks pressured the gauge after oil declined for a fifth straight week last week, with Russia yet to back Saudi Arabian calls for OPEC+ to cut production. Investors also reacted negatively to the U.S. Federal Reserve saying the virus posed a threat to global markets.
“Aramco has direct implications with Chinese oil demand, both in price and volume terms,” said Vrajesh Bhandari, the senior portfolio manager at Al Mal Capital in Dubai.
Sunday, 9 February 2020
More job cuts in the Middle East? 77% of CEOs to drive 'operational efficiencies' | ZAWYA MENA Edition
More job cuts in the Middle East? 77% of CEOs to drive 'operational efficiencies' | ZAWYA MENA Edition:
Many companies across the Middle East may increase headcounts or just leave it unchanged this year. However, the overall focus will be on implementing cost-effective measures, a new survey revealed.
The majority of CEOs in the region (77 percent) polled by Pricewaterhouse Coopers (PwC), said they plan to make “operational efficiencies” over the next 12 months to improve performance. However, 77 percent also said they expect headcount to increase or remain unchanged at the same time.
“This nuanced picture suggests that the drive for efficiency is as much about getting in shape to seize future opportunities as surviving current difficult market conditions. Corporate sustainability is the focus, not rash cost-cutting,” PwC said in a statement.
The findings were some of the highlights of PwC’s 23rd Annual CEO Survey. A spokesperson for PwC told Zawya that a total of 1,600 chief executives globally were included in the study, including 50 in the Middle East.
Many companies across the Middle East may increase headcounts or just leave it unchanged this year. However, the overall focus will be on implementing cost-effective measures, a new survey revealed.
The majority of CEOs in the region (77 percent) polled by Pricewaterhouse Coopers (PwC), said they plan to make “operational efficiencies” over the next 12 months to improve performance. However, 77 percent also said they expect headcount to increase or remain unchanged at the same time.
“This nuanced picture suggests that the drive for efficiency is as much about getting in shape to seize future opportunities as surviving current difficult market conditions. Corporate sustainability is the focus, not rash cost-cutting,” PwC said in a statement.
The findings were some of the highlights of PwC’s 23rd Annual CEO Survey. A spokesperson for PwC told Zawya that a total of 1,600 chief executives globally were included in the study, including 50 in the Middle East.
Emaar Malls set for 2020 opening of #Dubai Hills Mall, Time Out Market | ZAWYA MENA Edition
Emaar Malls set for 2020 opening of Dubai Hills Mall, Time Out Market | ZAWYA MENA Edition:
Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, is set to open Dubai Hills Mall in Dubai Hills Estate in Q4 2020.
The 2 million square foot retail establishment will feature nearly 550 retail and entertainment destinations including four major family entertainment and leisure centres along with a cineplex, hypermarket, seven anchor retail experience stores, and over 7,000 parking spaces.
Emaar Malls posted a 5 percent rise in revenue to AED 4.673 billion ($ 1.272 billion) in 2019, compared to AED 4.446 billion ($ 1.210 billion) in 2018.
Its overall net profit amounted to AED 2.286 billion ($ 622 million) in 2019 compared to 2.230 billion dirhams ($607 million) in 2018. Revenue grew by 4 per cent to 1.261 billion dirhams ($343 million) during the last quarter of 2019 (October to December) when compared to same period in 2018.
Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, is set to open Dubai Hills Mall in Dubai Hills Estate in Q4 2020.
The 2 million square foot retail establishment will feature nearly 550 retail and entertainment destinations including four major family entertainment and leisure centres along with a cineplex, hypermarket, seven anchor retail experience stores, and over 7,000 parking spaces.
Emaar Malls posted a 5 percent rise in revenue to AED 4.673 billion ($ 1.272 billion) in 2019, compared to AED 4.446 billion ($ 1.210 billion) in 2018.
Its overall net profit amounted to AED 2.286 billion ($ 622 million) in 2019 compared to 2.230 billion dirhams ($607 million) in 2018. Revenue grew by 4 per cent to 1.261 billion dirhams ($343 million) during the last quarter of 2019 (October to December) when compared to same period in 2018.
India's plan to build 100 new airports set to spur Gulf passenger, cargo growth - Arabianbusiness
India's plan to build 100 new airports set to spur Gulf passenger, cargo growth - Arabianbusiness:
India has unveiled plans to construct 100 greenfield airports by 2024 to expand its air connectivity network within the country, aimed at boosting air passenger and cargo traffic on the international and domestic routes in the coming years, as well as triggering investment requirements running into billions of dollars.
The massive airport infrastructure expansion plans have led many aviation industry experts and analysts to predict a big jump in air passenger traffic in the international route, especially on the India-Gulf sector, the busiest and most sought after international route from India, leading to increased competition among airlines in this sector.
“India will be embarking on the next phase of growth in air travel, with the Union Budget 2020 announcing a massive expansion plan in the country’s airport infrastructure,” Dhiraj Mathur, aviation sector expert and former Partner, PwC India, told Arabian Business.
“Air passenger traffic in India has more than doubled in the last decade, and the coming decade could see even higher growth considering the recent trend of robust air passenger growth and outward tourism from India,” Mathur added.
India has unveiled plans to construct 100 greenfield airports by 2024 to expand its air connectivity network within the country, aimed at boosting air passenger and cargo traffic on the international and domestic routes in the coming years, as well as triggering investment requirements running into billions of dollars.
The massive airport infrastructure expansion plans have led many aviation industry experts and analysts to predict a big jump in air passenger traffic in the international route, especially on the India-Gulf sector, the busiest and most sought after international route from India, leading to increased competition among airlines in this sector.
“India will be embarking on the next phase of growth in air travel, with the Union Budget 2020 announcing a massive expansion plan in the country’s airport infrastructure,” Dhiraj Mathur, aviation sector expert and former Partner, PwC India, told Arabian Business.
“Air passenger traffic in India has more than doubled in the last decade, and the coming decade could see even higher growth considering the recent trend of robust air passenger growth and outward tourism from India,” Mathur added.
#AbuDhabi in talks with banks for new debt issues: sources - Reuters
Abu Dhabi in talks with banks for new debt issues: sources - Reuters:
Abu Dhabi has been in talks with banks for potential debt sales in the international markets this year as the oil-rich emirate plans to engage global fixed income investors on a more regular basis amid low oil prices, sources said.
Abu Dhabi, which has one of the best credit ratings in the region, issued its latest international bonds in September last year, raising $10 billion for budgetary purposes and garnering almost $20 billion in demand.
After a reshuffling at its finance department last year, the government has been in talks with banks on several fundraising options, taking a more proactive approach to debt financing, said the sources.
“They want to issue more regularly and in smaller sizes, rather than huge $10 billion deals like last year,” one of them said.
Abu Dhabi has been in talks with banks for potential debt sales in the international markets this year as the oil-rich emirate plans to engage global fixed income investors on a more regular basis amid low oil prices, sources said.
Abu Dhabi, which has one of the best credit ratings in the region, issued its latest international bonds in September last year, raising $10 billion for budgetary purposes and garnering almost $20 billion in demand.
After a reshuffling at its finance department last year, the government has been in talks with banks on several fundraising options, taking a more proactive approach to debt financing, said the sources.
“They want to issue more regularly and in smaller sizes, rather than huge $10 billion deals like last year,” one of them said.
Qatargas signs long term LNG supply agreement to #Kuwait: press release - Reuters
Qatargas signs long term LNG supply agreement to Kuwait: press release - Reuters:
Qatargas signed a new long-term sale and purchase agreement with Shell to deliver 1 million tons per annum of liquefied natural gas to Kuwait, starting this year, the company said in a press release on Sunday.
Qatargas signed a new long-term sale and purchase agreement with Shell to deliver 1 million tons per annum of liquefied natural gas to Kuwait, starting this year, the company said in a press release on Sunday.
#Saudi VC Fund Hires From Google to Help Build Tech Unicorns - Bloomberg
Saudi VC Fund Hires From Google to Help Build Tech Unicorns - Bloomberg:
One of the Middle East’s largest venture capital funds hired Ivan Jakovljevic from Google Inc. to help transform its portfolio of start-ups into so-called unicorns.
Jakovljevic will join Saudi Arabia’s STV -- which backed Dubai-based ride-hailing firm Careem Inc. before its sale to Uber Technologies Inc. -- as chief development officer next month, the company said in a statement. He was previously head of new markets for Google in the Middle East and North Africa.
“Saudi start-ups are at an inflection point,” STV Chief Executive Officer and former Google executive Abdulrahman Tarabzouni said in an interview. The fund is “nurturing what could become another two-to-three unicorns over the next few years,” he said. Start-ups with a market value of $1 billion are typically referred to as unicorns.
Interest in the Middle East’s nascent technology industry has been picking up after Uber last year agreed to buy Careem and Amazon.com Inc acquired Souq.com in 2017. Almost 600 start-ups received more than $700 million in funding last year, according to a MAGNiTT report.
One of the Middle East’s largest venture capital funds hired Ivan Jakovljevic from Google Inc. to help transform its portfolio of start-ups into so-called unicorns.
Jakovljevic will join Saudi Arabia’s STV -- which backed Dubai-based ride-hailing firm Careem Inc. before its sale to Uber Technologies Inc. -- as chief development officer next month, the company said in a statement. He was previously head of new markets for Google in the Middle East and North Africa.
“Saudi start-ups are at an inflection point,” STV Chief Executive Officer and former Google executive Abdulrahman Tarabzouni said in an interview. The fund is “nurturing what could become another two-to-three unicorns over the next few years,” he said. Start-ups with a market value of $1 billion are typically referred to as unicorns.
Interest in the Middle East’s nascent technology industry has been picking up after Uber last year agreed to buy Careem and Amazon.com Inc acquired Souq.com in 2017. Almost 600 start-ups received more than $700 million in funding last year, according to a MAGNiTT report.
MIDEAST STOCKS- #Saudi leads most of Gulf lower; Aramco rebounds - Reuters
MIDEAST STOCKS-Saudi leads most of Gulf lower; Aramco rebounds - Reuters:
Most major Gulf markets fell on Sunday, led by Saudi
Arabia as concerns about the effect of the spread of the coronavirus on oil
prices weighed on the country's petrochemical and banking shares.
Oil prices posted their fifth straight weekly decline, as speculators backed
away due to weaker consumption figures and expectations the coronavirus will
remain a drag on demand.
The death toll from the virus reached 811 on Sunday.
Saudi Arabia's benchmark index fell 1.3%, weighed down by a 1.7%
slide in Al Rajhi Bank and 2.6% fall in Saudi Basic Industries
.
State-owned Saudi Aramco closed up 2% at 34.05 riyals, however,
having earlier touched a new low of 32.8 riyals, not far from its initial public
offering price of 32 riyals.
Most major Gulf markets fell on Sunday, led by Saudi
Arabia as concerns about the effect of the spread of the coronavirus on oil
prices weighed on the country's petrochemical and banking shares.
Oil prices posted their fifth straight weekly decline, as speculators backed
away due to weaker consumption figures and expectations the coronavirus will
remain a drag on demand.
The death toll from the virus reached 811 on Sunday.
Saudi Arabia's benchmark index fell 1.3%, weighed down by a 1.7%
slide in Al Rajhi Bank and 2.6% fall in Saudi Basic Industries
.
State-owned Saudi Aramco closed up 2% at 34.05 riyals, however,
having earlier touched a new low of 32.8 riyals, not far from its initial public
offering price of 32 riyals.
Can Opec stop the slide in the oil price? | Financial Times
Can Opec stop the slide in the oil price? | Financial Times:
The coronavirus outbreak has interrupted economic activity in China with entire cities on lockdown and travel restrictions putting a huge dent in demand for oil. Quite how much this will hit crude demand is unclear — but Chinese energy executives have said oil consumption in the country in February could be 25 per cent lower than a year earlier. That is the equivalent of a 3 per cent drop in global consumption.
As uncertainty lingers about when the transmission of the virus will peak, oil prices have tumbled more than 15 per cent since the beginning of the year to trade around $55 a barrel, a level at which many smaller producers struggle to remain profitable.
The demand shock and resulting price plunge is jolting Opec nations led by Saudi Arabia and ally producers including Russia into action to support prices. The group’s advisory body has recommended that they deepen their existing supply cuts by 600,000 barrels a day to a total of 2.7m b/d for the first half of 2020.
The coronavirus outbreak has interrupted economic activity in China with entire cities on lockdown and travel restrictions putting a huge dent in demand for oil. Quite how much this will hit crude demand is unclear — but Chinese energy executives have said oil consumption in the country in February could be 25 per cent lower than a year earlier. That is the equivalent of a 3 per cent drop in global consumption.
As uncertainty lingers about when the transmission of the virus will peak, oil prices have tumbled more than 15 per cent since the beginning of the year to trade around $55 a barrel, a level at which many smaller producers struggle to remain profitable.
The demand shock and resulting price plunge is jolting Opec nations led by Saudi Arabia and ally producers including Russia into action to support prices. The group’s advisory body has recommended that they deepen their existing supply cuts by 600,000 barrels a day to a total of 2.7m b/d for the first half of 2020.
National Bank of Fujairah reports Dh552.2 million 2019 net profits | Banking – Gulf News
National Bank of Fujairah reports Dh552.2 million 2019 net profits | Banking – Gulf News:
National Bank of Fujairah (NBF) on Sunday reported a net profit of Dh552.2 million compared to Dh615.3 million in 2018, posting a decline of 10.3 per cent after absorbing elevated level of provisions.
Bank’s board has recommended distribution of profits of 13.5 per cent in the form of cash dividends of 10 per cent and bonus shares of 3.5 per cent.
NBF’s total comprehensive income for the year was Dh611.5 million, up 4.5 per cent compared to Dh585.4 million in 2018. The bank achieved a strong operating profit of Dh1.15 billion which increased by 8.9 per cent compared to Dh1.05 billion in 2018.
Operating income at Dh1.7 billion experienced a growth of 8.5 per cent. This was driven by a high level of resilience in the bank’s core business with good volume growth, enhanced balance sheet management and effective pricing strategies.
National Bank of Fujairah (NBF) on Sunday reported a net profit of Dh552.2 million compared to Dh615.3 million in 2018, posting a decline of 10.3 per cent after absorbing elevated level of provisions.
Bank’s board has recommended distribution of profits of 13.5 per cent in the form of cash dividends of 10 per cent and bonus shares of 3.5 per cent.
NBF’s total comprehensive income for the year was Dh611.5 million, up 4.5 per cent compared to Dh585.4 million in 2018. The bank achieved a strong operating profit of Dh1.15 billion which increased by 8.9 per cent compared to Dh1.05 billion in 2018.
Operating income at Dh1.7 billion experienced a growth of 8.5 per cent. This was driven by a high level of resilience in the bank’s core business with good volume growth, enhanced balance sheet management and effective pricing strategies.
Sarah Al-Suhaimi, chairperson of the #Saudi Arabian Stock Exchange (Tadawul)
Sarah Al-Suhaimi, chairperson of the Saudi Arabian Stock Exchange (Tadawul):
The Saudi Arabian Stock Exchange (Tadawul) recently reappointed Sarah Al-Suhaimi as chairwoman for the board of directors for a new three-year term.
Al-Suhaimi has been at the head of Tadawul, the largest stock market in the Middle East, since February 2017 and is the first Saudi woman to hold the position.
She has also been the chief executive officer and a board director of the National Commercial Bank (NCB Capital), also known as Al-Ahli Bank, since March 2014.
She attained her bachelor’s degree in accounting from King Saud University in Riyadh with highest honors, and completed the general management program at Harvard Business School in Boston, Massachusetts, US in 2015.
The Saudi Arabian Stock Exchange (Tadawul) recently reappointed Sarah Al-Suhaimi as chairwoman for the board of directors for a new three-year term.
Al-Suhaimi has been at the head of Tadawul, the largest stock market in the Middle East, since February 2017 and is the first Saudi woman to hold the position.
She has also been the chief executive officer and a board director of the National Commercial Bank (NCB Capital), also known as Al-Ahli Bank, since March 2014.
She attained her bachelor’s degree in accounting from King Saud University in Riyadh with highest honors, and completed the general management program at Harvard Business School in Boston, Massachusetts, US in 2015.
OPEC Is Too Unwieldy in Face of Coronavirus Impact on Oil - Bloomberg
OPEC Is Too Unwieldy in Face of Coronavirus Impact on Oil - Bloomberg:
Just when OPEC needs all the agility it can muster in the face of an oil demand shock of uncertain severity and unknown duration, it’s bogged down in protracted negotiations and a 60-year-old mechanism for deciding output allocations that’s far too cumbersome in a time of crisis.
The 13 oil-exporting nations in the cartel, and their partners in what’s called OPEC+, have to be able to react quickly to the rapidly-changing world around them. Instead, they are locked in a debate over whether they should even meet, and what they should agree on if they do. By the time they get answers to those questions, it may already be too late.
A week ago Saudi Arabia, OPEC’s biggest producer, was pressing for meetings scheduled for March to be brought forward so everyone could agree on deeper output cuts to halt the slide in oil prices triggered by the outbreak of a new coronavirus in China. Russia, the largest of the wider group’s non-OPEC members, was pushing back, arguing that more time was needed to assess its impact on oil demand. Since then, the cartel’s Joint Technical Committee met over three days and put forward a proposal to remove a further 600,000 barrels a day in the second quarter of the year.
Just when OPEC needs all the agility it can muster in the face of an oil demand shock of uncertain severity and unknown duration, it’s bogged down in protracted negotiations and a 60-year-old mechanism for deciding output allocations that’s far too cumbersome in a time of crisis.
The 13 oil-exporting nations in the cartel, and their partners in what’s called OPEC+, have to be able to react quickly to the rapidly-changing world around them. Instead, they are locked in a debate over whether they should even meet, and what they should agree on if they do. By the time they get answers to those questions, it may already be too late.
A week ago Saudi Arabia, OPEC’s biggest producer, was pressing for meetings scheduled for March to be brought forward so everyone could agree on deeper output cuts to halt the slide in oil prices triggered by the outbreak of a new coronavirus in China. Russia, the largest of the wider group’s non-OPEC members, was pushing back, arguing that more time was needed to assess its impact on oil demand. Since then, the cartel’s Joint Technical Committee met over three days and put forward a proposal to remove a further 600,000 barrels a day in the second quarter of the year.
#Saudi Aramco Extends Decline as Oil Sinks Further: Inside EM - Bloomberg
Middle East Stock Exchange News for Feb. 9, 2020 - Bloomberg:
Saudi Aramco shares dropped for a fourth day, edging closer to the price they were listed at in December as the coronavirus reduces demand for oil.
The giant oil producer lost as much as 1.8% and was among the main contributors to the decline of the Tadawul All Shares Index in Riyadh.
“Aramco has direct implications with Chinese oil demand, both in price and volume terms,” said Vrajesh Bhandari, the senior portfolio manager at Al Mal Capital in Dubai.
The shares have still performed well relative to crude prices, he said. While Brent has slumped 17% this year, Aramco is down 6.2%.
Saudi Aramco shares dropped for a fourth day, edging closer to the price they were listed at in December as the coronavirus reduces demand for oil.
The giant oil producer lost as much as 1.8% and was among the main contributors to the decline of the Tadawul All Shares Index in Riyadh.
“Aramco has direct implications with Chinese oil demand, both in price and volume terms,” said Vrajesh Bhandari, the senior portfolio manager at Al Mal Capital in Dubai.
The shares have still performed well relative to crude prices, he said. While Brent has slumped 17% this year, Aramco is down 6.2%.
#Dubai Parks and Resorts operator reports $232mln net loss | ZAWYA MENA Edition
Dubai Parks and Resorts operator reports $232mln net loss | ZAWYA MENA Edition:
DXB Entertainments, the company behind Dubai Parks and Resorts, has reported a net loss of 855 million UAE dirhams ($232 million) for 2019, citing falling attendance and visitor spend.
The company’s revenues for the full year also fell 9 percent to 491 million UAE, but it remains bullish for 2020, as it plans to go ahead with its expansion strategy by deploying 12 more rides at two of its parks and opening a 250-room hotel before the end of the year.
The Dubai Parks and Resorts is home to Legoland, Motiongate and Riverland.
The company has been incurring profit losses since its listing on the Dubai Stock Exchange in 2014. Last year, DXB Entertainments cancelled plans to build a Six Flags theme park due to financing constraints.
DXB Entertainments, the company behind Dubai Parks and Resorts, has reported a net loss of 855 million UAE dirhams ($232 million) for 2019, citing falling attendance and visitor spend.
The company’s revenues for the full year also fell 9 percent to 491 million UAE, but it remains bullish for 2020, as it plans to go ahead with its expansion strategy by deploying 12 more rides at two of its parks and opening a 250-room hotel before the end of the year.
The Dubai Parks and Resorts is home to Legoland, Motiongate and Riverland.
The company has been incurring profit losses since its listing on the Dubai Stock Exchange in 2014. Last year, DXB Entertainments cancelled plans to build a Six Flags theme park due to financing constraints.
MIDEAST STOCKS- #Saudi underperforms; Aramco lowest since IPO - Reuters
MIDEAST STOCKS-Saudi underperforms; Aramco lowest since IPO - Reuters:
Saudi Arabia’s stock market led most Gulf bourses lower on Sunday after oil prices plunged more than 6% at the end of last week, while oil giant Aramco fell for a sixth consecutive day.
Oil prices posted their fifth straight weekly decline, as speculators backed away due to weaker consumption figures and expectations the coronavirus, which has killed more than 600 people, will remain a drag on demand.
Last week, a panel advising OPEC+, the Organization of the Petroleum Exporting Countries and allies led by Russia, suggested provisionally cutting output by 600,000 barrels per day (bpd) to help support prices.
However, Russia Energy Minister Alexander Novak said on Friday Moscow needed more time to assess the situation.
Saudi Arabia’s benchmark index declined 1.2%, dragged down by a 1.4% slide in state-owned Saudi Aramco , which hit its lowest since it began trading on Dec. 11.
Saudi Arabia’s stock market led most Gulf bourses lower on Sunday after oil prices plunged more than 6% at the end of last week, while oil giant Aramco fell for a sixth consecutive day.
Oil prices posted their fifth straight weekly decline, as speculators backed away due to weaker consumption figures and expectations the coronavirus, which has killed more than 600 people, will remain a drag on demand.
Last week, a panel advising OPEC+, the Organization of the Petroleum Exporting Countries and allies led by Russia, suggested provisionally cutting output by 600,000 barrels per day (bpd) to help support prices.
However, Russia Energy Minister Alexander Novak said on Friday Moscow needed more time to assess the situation.
Saudi Arabia’s benchmark index declined 1.2%, dragged down by a 1.4% slide in state-owned Saudi Aramco , which hit its lowest since it began trading on Dec. 11.