BRIEF-QFC Regulatory Authority fines Horizon Crescent Wealth for Regulatory Violations - Reuters

BRIEF-QFC Regulatory Authority fines Horizon Crescent Wealth for Regulatory Violations - Reuters: 

QATAR FINANCIAL CENTRE REGULATORY AUTHORITY:

* SAYS HAS TAKEN ENFORCEMENT ACTION AGAINST HORIZON CRESCENT WEALTH LLC (HCW)

* IMPOSED A FINE OF 30 MILLION RIYALS ON HCW AS A RESULT OF SERIOUS LEGAL AND REGULATORY BREACHES

* SAYS ENFORCEMENT ACTION TAKEN AFTER AN INVESTIGATION OF THE FIRM THAT IDENTIFIED SIGNIFICANT FAILINGS BY HCW IN ITS COMPLIANCE WITH THE ANTI-MONEY LAUNDERING AND COMBATING TERRORIST FINANCING RULES

* SAYS HCW HAD HELD ITSELF OUT AS CONDUCTING AN ASSET MANAGEMENT BUSINESS WITHOUT AUTHORISATION FROM THE QFCRA

#Kuwait Leads Drop in Mideast Stocks After Downgrade: Inside EM: Sunday March 29, 2020 - Bloomberg

Middle East Stock News: Sunday March 29, 2020 - Bloomberg:

Most Middle Eastern stock markets fell on Sunday, with Kuwait’s main index leading losses after S&P Global Ratings cut the government’s credit rating last week.

The Boursa Kuwait Premier Market Price index lost as much as 4.7% before finishing 3.4% lower, with Kuwait Finance House, National Bank of Kuwait and Ahli United Bank dropping more than 4%. Kuwait was downgraded one level to AA-, with S&P maintaining a stable outlook.

Lower oil prices in 2020 and 2021 will have negative economic and fiscal implications for Kuwait given its high reliance on exports, the ratings company said. On top of that, the country has lagged behind the reform momentum seen elsewhere in the region, the statement added.

Kuwait stocks will be added to MSCI Inc.’s emerging-markets benchmark in May. That is expected to trigger inflows from foreign investors. The benchmark tracking large caps in Kuwait is down 27% this year, contrasting with a 32% jump in 2019. It’s the second biggest drop in the Gulf this year after Dubai.

#Dubai Real Estate, Property News: Limitless Restructuring Looms - Bloomberg

Dubai Real Estate, Property News: Limitless Restructuring Looms - Bloomberg:

Limitless World LLC is close to hiring financial and legal advisers for the Dubai-based developer’s third restructuring as the emirate’s on-going property slump is set to worsen.

The company told creditors that it’s in the “final stages” of engaging advisers to work on a restructuring plan as it’s “unable to pay accrued profit at the end of March,” according to a letter sent to banks and seen by Bloomberg.

Limitless’ board has recently been reorganized to comprise three members, who are being advised “on all matters” by a team from Dubai World, the letter said.

A spokeswoman for Limitless confirmed that the developer has written to creditors as a “first step toward finding a solution for all stakeholders,” without giving further details.

S&P: Deteriorating conditions could put pressure on #UAE banks | ZAWYA MENA Edition

S&P: Deteriorating conditions could put pressure on UAE banks | ZAWYA MENA Edition:

S&P Global Ratings has revised its outlooks for five UAE banks from stable to negative, citing a deteriorating operating environment.

The ratings agency, which reviewed First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Mashreqbank, Sharjah Islamic Bank (SIB) and National Bank of Fujairah (NBF), warned that the weakening conditions could put pressure on banks’ profitability.

In its latest analysis, S&P expects that in 2020, the sharp drop in oil prices as well as reduced economic activity due to the coronavirus, will exert significant pressure on the UAE economy, especially the real estate, trade, retail, transportation and hospitality sectors.

“We expect loan quality will be tested and cost of risk will increase, weighing on banks' profitability in the next 12 to 24 months. In 2019, banks' asset quality indicators had already started to show signs of weakness,” S&P said in a note.

Prolonged low oil prices, coronavirus crisis could hurt #Saudi | ZAWYA MENA Edition

Prolonged low oil prices, coronavirus crisis could hurt Saudi | ZAWYA MENA Edition:

Saudi Arabia continues to show resilience despite the current challenges posed by the coronavirus outbreak, but it could face some downside if oil prices will remain low for a longer period, analysts have suggested. 


US-based international credit ratings agency Standard & Poor’s (S&P) has said it is affirming its A-/A-2 long- and short-term sovereign credit ratings on Saudi Arabia, with a stable outlook.

The latest positive review is due to analysts’ expectation that the current low oil price environment, although affecting fiscal flows, will be counterbalanced by the country’s strong government and external balance sheets.

“But prolonged low oil prices will erode [Saudi Arabia’s] net asset stock and begin to put pressure on the ratings,” S&P said.

#Saudi central bank asks banks to restructure financing without extra fees - Reuters

Saudi central bank asks banks to restructure financing without extra fees - Reuters:

Saudi Arabia’s central bank said banks should agree to restructure financing for customers without extra fees and asked banks to provide financing needed by private sector customers who lost their jobs.

The Saudi Arabian Monetary Authority said banks should review interest and other fees levied on credit cards in line with the recent drop in interest rates.

The guidelines are part of measures aimed at stemming the impact of the coronavirus outbreak, it said.

European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar

European, Middle Eastern & African Stocks - Bloomberg:

Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.

The Coronavirus Means It's A Truly Free Market For Oil - Bloomberg

The Coronavirus Means It's A Truly Free Market For Oil - Bloomberg:

At the point we’re now at, postponing the oil-price war won’t make a lot of difference for an industry that’s already breaking down under the weight of demand destruction. It’s too late to use diplomacy and artful negotiations to share the burden of output cuts that are now inevitable.

The pumping free-for-all unleashed by Saudi Arabia and Russia is important for the long-term shape of the oil industry, but, as my colleague Javier Blas  pointed out here, it’s a sideshow to the havoc being wrought by the lockdowns crippling economies worldwide in response to the coronavirus pandemic. Forecasts of a catastrophic drop in oil demand abound, with estimates of a whopping 20% year-on-year reduction in global consumption in April becoming more common. That’s 20 million barrels a day, equivalent to the entire consumption of the United States.

It would be impossible for any small group of producers to mitigate that kind of impact by reducing output, unless Saudi Arabia and Russia were both to slash their production to almost zero. And that’s not going to happen.

On Wednesday, U.S. Secretary of State Mike Pompeo called on Saudi Arabia’s Crown Prince Mohammed bin Salman to take the lead as his country prepared to host a meeting of the Group of 20 nations. Pompeo urged the kingdom “to rise to the occasion and reassure global energy and financial markets.” That’s a reasonable request. Somebody has to show leadership and it doesn’t look like it’s going to be President Donald Trump.

UPDATE 1-S&P cuts DAMAC's rating, puts Emaar Properties, Emaar Malls on creditwatch - Reuters

UPDATE 1-S&P cuts DAMAC's rating, puts Emaar Properties, Emaar Malls on creditwatch - Reuters:

S&P Global Ratings has downgraded Dubai’s DAMAC Properties to B from B+ and placed the BBB-(minus) ratings of Emaar Properties and Emaar Malls on creditwatch with negative implications, the ratings agency said in a statement.

It also lowered its outlook on DIFC Investments, a unit of the company running Dubai’s financial free zone, to ‘negative’ from ‘stable’.

S&P cited economic pressures from the coronavirus outbreak for the changes and said the ability of the government of Dubai to provide financial support for government related entities may weaken over the next one or two years.

The Dubai real estate sector has been struggling for years due to oversupply and sluggish economic growth.

S&P Sees #Dubai Property Prices Dropping to Levels Seen in 2010 - Bloomberg

Dubai Property Prices, Middle East Coronaviru News: Latest Update - Bloomberg:

Residential properties stand in the Al Satwa area of Dubai.

 Photographer: Christopher Pike/Bloomberg

The widening coronavirus pandemic could see Dubai property prices falling to levels last seen 10 years ago, according to S&P Global Ratings.

“We believe real estate prices are approaching levels seen at the bottom of the last cycle in 2010, and are even lower on an inflation-adjusted basis and considering sales incentives for off-plan property,” S&P Global Ratings said in a report.

“We also expect negative employment trends across some key sectors such as tourism and retail, as well as for certain small and midsize enterprises, which could weigh on demand for new properties.”

S&P rating action:

• Emaar Properties and Emaar Malls’ BBB- ratings on creditWatch with negative implications.
•   Emaar Properties shares -43%; Emaar Malls -41%
• Damac Real Estate lowered to B from B+; outlook remains negative.
•   Damac shares -35%
• Unlisted DIFC Investments’ revised to negative outlook from stable; affirms BBB- ratings.

The Global Oil Market Is Broken, Drowning in Crude Nobody Needs - Bloomberg

The Global Oil Market Is Broken, Drowning in Crude Nobody Needs - Bloomberg:



The global oil market is broken, overwhelmed by an unmanageable surplus as virus lockdowns cascade through the world’s largest economies.

Onshore tanks in many markets are full, forcing traders to store excess oil in idle supertankers. Refineries are starting to shut down because nobody needs the fuels they produce. In physical oil markets, barrels are already changing hands for less than $10, and in a few landlocked markets producers are paying consumers to take away their crude.

“The physical oil market has seized up,” said Gary Ross, an influential oil watcher and chief investment officer of Black Gold Investors LLC. “The logistics are struggling to cope because we are facing a catastrophic loss of demand.”

Oil traders say it’s likely to get worse this week.

#Dubai firm tied to Trump posts loss as virus downturn looms

Dubai firm tied to Trump posts loss as virus downturn looms:

Dubai’s largest, fully private real estate developer posted on Sunday its first yearly loss since becoming a publicly traded company, a worrying sign for the sheikhdom’s already-reeling vital property market that’s been hit with the fallout from the coronavirus pandemic.

DAMAC Properties, which has business ties to U.S. President Donald Trump and hosts the Mideast’s only Trump-branded golf course, reported a loss of 36.8 million dirhams ($10 million) in 2019 off revenues of nearly 4.4 billion dirhams ($1.19 billion).

That’s compared to a 1.15 billion dirham ($313 million) profit in 2018 off revenues of 6.13 billion dirhams ($1.16 billion). The company became publicly traded in 2013.

In a statement posted to the Dubai Financial Market stock exchange, DAMAC chairman Hussain Sajwani praised Emirati leaders for working toward stabilizing the economy.

#Qatar Airways CEO says will keep flying but warns cash is running out - Reuters

Qatar Airways CEO says will keep flying but warns cash is running out - Reuters:

Qatar Airways will continue to operate flights as long as necessary to get stranded travelers home, Chief Executive Akbar al-Baker told Reuters on Sunday, but warned that the carrier could soon run out of cash.

“We have enough cash to take us through a very short period of time,” he said in a phone interview.

He said the airline would eventually have to seek support from its owner, the Qatar government.

The Middle East carrier is one of few global airlines to continue operate after the coronavirus decimated travel demand almost overnight.

Oil-rich wealth funds seen shedding upto $225 billion in stocks - Reuters

Oil-rich wealth funds seen shedding upto $225 billion in stocks - Reuters:

Sovereign wealth funds from oil-producing countries mainly in the Middle East and Africa are on course to dump up to $225 billion in equities, a senior banker estimates, as plummeting oil prices and the coronavirus pandemic hit state finances.

The rapid spread of the virus has ravaged the global economy, sending markets into a tailspin and costing both oil and non-oil based sovereign wealth funds around $1 trillion in equity losses, according to JPMorgan strategist Nikolaos Panigirtzoglou.

His estimates are based on data from sovereign wealth funds and figures from the Sovereign Wealth Fund Institute, a research group.

Sticking with equity investments and risking more losses is not an option for some funds from oil producing nations. Their governments are facing a financial double-whammy – falling revenues due to the spiraling oil price and rocketing spending as administrations rush out emergency budgets.

European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar

European, Middle Eastern & African Stocks - Bloomberg:

Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.

MIDEAST STOCKS-Stocks in Middle East fall on coronavirus impact - Reuters

MIDEAST STOCKS-Stocks in Middle East fall on coronavirus impact - Reuters:

Middle Eastern stocks declined on Sunday in early trade, as the economies across the globe remained pressured from the coronavirus outbreak as the cases continued to surge.

More than 615,600 people have been infected by the coronavirus across the world and 28,316 have died, according to a Reuters tally.

In Qatar, which on Saturday recorded its first death from the coronavirus, the index lost 1.3%, dragged down by a 2.8% fall in Qatar National Bank and 2.1% fall in petrochemical maker Industries Qatar.

The Gulf state was latest to report its first virus-related death, a Bangladeshi resident. The majority of the 590 cases in Qatar are among migrant labourers, where foreigners make up most of the work force.

Coronavirus to drive steeper decline in property prices, more rent freezes in #Dubai: S&P | ZAWYA MENA Edition

Coronavirus to drive steeper decline in property prices, more rent freezes in Dubai: S&P | ZAWYA MENA Edition:

As the coronavirus crisis continues to ravage economies worldwide, home prices in Dubai will decline more steeply and landlords will be forced to freeze rents, according to the latest analysis.

S&P has also lowered its ratings on some major Dubai-based real estate firms, citing that the current health pandemic is likely to reduce international and local demand for property in the emirate. 


Dubai’s real estate has been struggling to cope with excess residential supply, which has caused prices and rents to decline. In 2019, more than 35,000 homes were still completed, the highest number delivered in a single year in the emirate. There were expectations that that high supply could be absorbed by the increase in demand during the Expo 2020 later this year.

However, with business activity and non-essential services now grinding to a halt due to the outbreak, it is not clear yet if the global event will push through as scheduled or boost demand.