UAE News: #Dubai Takes Port Operator Private to Tackle Debt - Bloomberg

UAE News: Dubai Takes Port Operator Private to Tackle Debt - Bloomberg:

Dubai will take its port operator private after a dozen years to alleviate its debt burden and avoid a repeat of the economic crisis that forced a bailout of the country in 2009.

As a source of cash for the state, DP World Ltd. is a key asset for the emirate as it endures another year of lower property prices and a struggling retail sector. The country has introduced some counter-measures to revive growth, like easing restrictions on visas and tackling oversupply in the real-estate market.

“This deal reflects the maturity of the government’s decision-making process, which is more measured and balanced than a decade ago,” said Jahangir Aka, managing director in the Middle East and Africa for Neuberger Berman.

The emirate will pay a 29% premium to acquire the 19.55% of DP World listed on Nasdaq Dubai. As part of the deal, DP World’s parent will pay state-controlled Dubai World $5.15 billion to service some outstanding bank commitments.

Snubbed by Gulf, Lebanon's PM Diab hosts Iranian official - Reuters

Snubbed by Gulf, Lebanon's PM Diab hosts Iranian official - Reuters:

Lebanese Prime Minister Hassan Diab, who is getting the cold shoulder from Gulf Arab states, on Monday met Iran’s parliament speaker, the first senior foreign official to visit since Diab’s government took office.

Gulf states had long channeled funds to Beirut but have grown alarmed by the rising clout of Iran’s ally Hezbollah. Lebanon’s rich Gulf neighbors now appear loathe to help it out of an unprecedented economic and financial crisis.

The heavily armed Hezbollah backed Diab’s cabinet after efforts failed to strike a deal with Saad al-Hariri, a traditional Western ally who stayed out of the new government.

The economic crisis came to a head last year as slowing capital inflows led to a liquidity crunch and protests erupted against the ruling elite. Banks are curbing access to cash, the Lebanese pound has slumped and inflation has spiked.

Oil Steady as Asian States Seek to Offset Virus Hit to Economies - Bloomberg

Oil Steady as Asian States Seek to Offset Virus Hit to Economies - Bloomberg:

Oil steadied near $57 a barrel in London as China and others in Asia promised economic stimulus to offset the impact of the coronavirus, buoying the outlook for fuel demand.

Prices recovered more than 5% last week, the biggest gain since September, as some of the fears over how far the infection will hurt the global economy abated. China, Hong Kong and Singapore have pledged extra fiscal stimulus to counter the economic hit from the disease, with Beijing considering measures such as lowering corporate taxes.

“Oil appears to have finally shaken off its bearish malaise,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. “Investors cheered a salvo of stimulus measures from China’s central bank aimed at mitigating the economic impact.”

MIDEAST STOCKS-Most Middle Eastern stocks gain; #Qatar bucks trend - Reuters

MIDEAST STOCKS-Most Middle Eastern stocks gain; Qatar bucks trend - Reuters:

Most Middle Eastern markets closed higher on Monday, with
Saudi Arabia gaining on support from Saudi Aramco, while Qatar bucked the trend
on news it had delayed choosing partners for the world's largest liquefied
natural gas project.

Saudi Arabia's benchmark index was up 0.5% supported by state-owned
Saudi Aramco, which was up 0.9% at 33.1 riyals ($8.83), snapping a
five-day losing streak.

Saudi British Bank rose 2.1%, while Al Rjahi Bank edged
up 0.3%.

Qatar's index was down 0.4% for its seventh straight session of
declines. State-run Qatar Petroleum's units Mesaieed Petrochemicals
and Industries Qatar weighed most on the index, falling 4.6% and 1.4%,
respectively.

Reuters reported, citing sources, that Qatar has delayed choosing Western
partners for the world's largest liquefied natural gas project by several
months.

Gulf states could face higher fiscal deficits as coronavirus set to cut global oil demand, says analyst | ZAWYA MENA Edition

Gulf states could face higher fiscal deficits as coronavirus set to cut global oil demand, says analyst | ZAWYA MENA Edition:

Government coffers in the Gulf Cooperation Council (GCC) region could face further pressure this year, with the novel coronavirus (Covid-19) outbreak expected to dampen oil demand during the first quarter of 2020.

According to Raghu Mandagolathur, executive vice president of Kuwait Financial Centre (Markaz), a contraction in demand for oil, coupled with the decline in prices, could impact public finances and prompt Gulf states to borrow funds.

A new analysis from the International Energy Agency (IEA) showed that global oil demand is now expected to fall during the first three months of the year the first quarterly drop in more than a decade - because of the coronavirus.

“Global oil demand has been hit hard by the novel coronavirus and the widespread shutdown of China’s economy,” IEA said on Thursday.

Fading Hope for Emergency OPEC+ Meeting Caps Oil’s Advance - Bloomberg

Fading Hope for Emergency OPEC+ Meeting Caps Oil’s Advance - Bloomberg:

Oil was steady after the biggest weekly gain since September as hopes for an OPEC+ emergency meeting on the virus faded, while investors assessed Chinese stimulus measures to soften the outbreak’s economic impact.

While Saudi Arabia hasn’t given up on its push for the gathering this month, OPEC and its allies are likely to stick with a scheduled meeting in March after Russia balked at the idea. China, Hong Kong and Singapore have pledged extra fiscal stimulus to counter the economic hit from the deadly coronavirus, with Beijing considering measures such as lowering corporate taxes.

While Brent oil rallied by more than 5% last week amid speculation that the worst economic impacts of the virus may have been accounted for, Goldman Sachs Group Inc. slashed its 2020 crude-demand forecast almost in half and lowered its first-quarter price estimate by 16%. Sentiment remains cautious with Hubei, the Chinese province at the epicenter of the outbreak, reporting new cases and additional deaths.

Exclusive: #Qatar delays partnerships for natural gas expansion amid price collapse - sources - Reuters

Exclusive: Qatar delays partnerships for natural gas expansion amid price collapse - sources - Reuters:

Qatar has delayed choosing Western partners for the world’s largest liquefied natural gas (LNG) project by several months after surprising the industry with a big expansion plan despite a collapse in global gas prices, four sources said.

State-run Qatar Petroleum (QP) declined to comment on the reported delay, which comes as the global gas industry faces the major challenge of a supply glut due to booming U.S. production and a drop in Chinese demand.

Qatar, the lowest cost producer of LNG, sits on the world’s largest gas field and offers terms that led oil majors ExxonMobil (XOM.N) and Royal Dutch/Shell (RDSa.L) to invest tens of billions of dollars in the past.

The big energy firms have waited a decade for a new opportunity to invest in Qatar after the country put further development on hold to ensure the giant North Field could sustain production.

#UAE News: #Dubai Takes Port Operator Private to Tackle Debt - Bloomberg

UAE News: Dubai Takes Port Operator Private to Tackle Debt - Bloomberg:

Dubai plans to delist its port operator to help repay more than $5 billion of government-related debt.

As part of DP World Ltd.’s delisting, its parent -- Port and Free Zone World -- will pay Dubai World $5.15 billion to help it repay outstanding commitments to banks. The conglomerate has about $9.9 billion in debt maturing in 2022 and a further $1.1 billion due in 2026, according to data compiled by Bloomberg.

The plans come as Dubai faces the prospect of restructuring a chunk of $23 billion in loans to government-related companies maturing at the end of 2021 for a second time, according to Fitch Ratings Ltd. The emirate has enlisted the help of two of its most trusted officials to steer key companies through a drawn-out slowdown, after they pulled the business hub back from the brink of default more than a decade ago.

Dubai is set to endure another year of lower property prices, weak demand and a retail sector that’s struggling. The ongoing slump is a stark reminder of the 2009 global financial crisis when Dubai World restructured $23.5 billion of debt and property developer Nakheel PJSC had $10.5 billion of unpaid bills. Many of the city’s hopes rest on hosting the World Expo 2020 exhibition later this year, which is expected to spur economic growth to about 3.2%, after expanding just 2.1% in 2019.

Billionaire B.R. Shetty Resigns from #AbuDhabi’s NMC Health - Bloomberg

Billionaire B.R. Shetty Resigns from Abu Dhabi’s NMC Health - Bloomberg:

NMC Health Plc, a hospital operator targeted by short seller Muddy Waters, said founder Bavaguthu Raghuram Shetty resigned amid a review into whether he misrepresented his holdings in the company.

Co-Chairman Shetty stepped down with immediate effect, along with Chief Investment Officer Hani Buttikhi and board member Abdulrahman Basaddiq, the company said. Last week, NMC removed Shetty from board meetings on concern he misstated his stake. The stock fell as much as 9.2% Monday.

NMC shares lost almost half their value the first week of February on speculation the company’s main investors were facing a margin call, in which banks seize shares pledged as collateral. NMC said Friday that First Abu Dhabi Bank and Al Salam Bank Bahrain obtained 20 million shares in the company from BRS International Holding, an investment vehicle of NMC’s top shareholders. The banks sold more than 8 million shares as “enforcement of security,” NMC said.

Shares of NMC, which operates the largest medical network in the United Arab Emirates, started teetering in mid-December when Muddy Waters alleged that NMC manipulated its balance sheet and inflated the prices of companies it acquired.

S&P warns coronavirus travel restrictions could hurt #Dubai's hospitality industry - Reuters

S&P warns coronavirus travel restrictions could hurt Dubai's hospitality industry - Reuters:

Dubai’s hospitality industry is most at risk in the Gulf Arab states region from being negatively impacted by travel restrictions associated with the new coronavirus outbreak, ratings agency S&P Global said in a research note.

S&P said the travel restrictions could weigh on Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, Oman and Kuwait.

It said the UAE’s Dubai, which saw almost 1 million Chinese visitors last year, could see the biggest impact.

Oil prices steady as coronavirus-related demand concerns weigh - Reuters

Oil prices steady as coronavirus-related demand concerns weigh - Reuters:

Oil prices were little changed on Monday as concerns of falling fuel demand caused by the economic fallout from the coronavirus outbreak in China were offset by expectations that output cuts from major producers will tighten crude supply.

Brent crude LCOc1 was at $57.27 a barrel, down 5 cents by 0754 GMT after rising 5.2% last week, the biggest weekly gain since September 2019.

U.S. West Texas Intermediate crude CLc1 rose 3 cents to $52.08 a barrel, after a 3.4% gain last week.

Japan, the world’s fourth-largest oil consumer, reported an economic contraction of 6.3% for the October to December period and there is an expectation of a further contraction in the January to March quarter because of the contagion. Singapore, whose trade-dependent economy is a barometer for the region, also warned of the potential for a recession this quarter because of the outbreak.

Mideast Stocks: Most Gulf markets rise; #Dubai leads gains on property shares | ZAWYA MENA Edition

Mideast Stocks: Most Gulf markets rise; Dubai leads gains on property shares | ZAWYA MENA Edition:

Dubai shares led gains among Gulf markets on Monday as property stocks rallied, with major port operator DP World posting its biggest jump since May 2014 following a delisting announcement.

The Dubai benchmark gained 0.8%.

Developer Union Properties leapt 7.6% after it said in an exchange filing on Sunday that the financing process of a previously-announced expansion for the Autodrome projects is nearing its completion.

Arabtec Holding rebounded 5.7%, following a 1.6% slide in previous session after it said it is closely working with "key lenders" to align its debt with its business needs and is cutting costs by reducing its workforce.

The company posted a loss for the fiscal year, compared with it a profit a year earlier.