Oil ends lower after U.S. crude stockpiles jump, gasoline demand sinks - Reuters:
Oil prices fell on Wednesday after U.S. crude inventories rose last week by the most since 2016, while gasoline demand suffered its biggest weekly drop ever due to the coronavirus pandemic.
Crude inventories USOILC=ECI rose by 13.8 million barrels last week, the U.S. Energy Information Administration said. That was the biggest one-week rise since 2016, and analysts expect similar data in coming weeks, as refineries curb output further and gasoline demand continues to decline.
West Texas Intermediate (WTI) crude CLc1 fell 17 cents to settle at $20.31 a barrel, after hitting a low at $19.90.
June Brent crude LCOc1 fell $1.61 , or 6.1%, to $24.74 a barrel. The global benchmark fell to $21.65 on Monday, its lowest since 2002, when the now-expired May contract was the front month.
Wednesday 1 April 2020
#SaudiArabia Oil Strategy Faces a Critical Test in April - Bloomberg
Saudi Arabia Oil Strategy Faces a Critical Test in April - Bloomberg:
The impact of Saudi Arabia’s decision to increase oil production amidst the demand-killing coronavirus pandemic may not be over yet. Three weeks ago, in reaction to Russia’s decision to pull out of the OPEC+ production cut deal, Saudi Arabia promised to increase its oil production to an all-time high of 12 million barrels per day in April. It also committed to putting an additional 300,000 barrels per day from inventory on the market. This oil was offered to customers at heavily discounted prices. Global oil prices plummeted almost immediately into the $30 per barrel range; since then, they’ve fallen even lower.
This was a huge gamble by Saudi Arabia. From a market perspective, the point was to increase demand for Saudi oil by offering it to customers at cut-rate prices. From a business perspective, Saudi Arabia made this decision before it realized how low prices could go, so high volumes were expected to counteract lost revenue per barrel from the discount. From a political perspective, the point was to show Saudi Arabia’s control over oil markets. With April now upon us, Saudi Arabia is in danger of failing spectacularly on all three accounts. If Saudi Arabia loses on its bet, the global price of oil will lose, too.
The impact of Saudi Arabia’s decision to increase oil production amidst the demand-killing coronavirus pandemic may not be over yet. Three weeks ago, in reaction to Russia’s decision to pull out of the OPEC+ production cut deal, Saudi Arabia promised to increase its oil production to an all-time high of 12 million barrels per day in April. It also committed to putting an additional 300,000 barrels per day from inventory on the market. This oil was offered to customers at heavily discounted prices. Global oil prices plummeted almost immediately into the $30 per barrel range; since then, they’ve fallen even lower.
This was a huge gamble by Saudi Arabia. From a market perspective, the point was to increase demand for Saudi oil by offering it to customers at cut-rate prices. From a business perspective, Saudi Arabia made this decision before it realized how low prices could go, so high volumes were expected to counteract lost revenue per barrel from the discount. From a political perspective, the point was to show Saudi Arabia’s control over oil markets. With April now upon us, Saudi Arabia is in danger of failing spectacularly on all three accounts. If Saudi Arabia loses on its bet, the global price of oil will lose, too.
#Dubai Moves to Shield Prized Emirates Airline From Virus Fallout - Bloomberg video
Dubai Moves to Shield Prized Emirates Airline From Virus Fallout - Bloomberg:
The coronavirus has forced state-owned airline Emirates to suspend operations. The Dubai government is quickly swooping in to protect its most important growth engine. Bloomberg’s Layan Odeh reports on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
The coronavirus has forced state-owned airline Emirates to suspend operations. The Dubai government is quickly swooping in to protect its most important growth engine. Bloomberg’s Layan Odeh reports on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Embattled Finablr appoints former Network International exec as CEO - Arabianbusiness
Embattled Finablr appoints former Network International exec as CEO - Arabianbusiness:
Finablr, the embattled owner of foreign-exchange businesses including Travelex Holdings, has appointed former Network International CEO Bhairav Trivedi as CEO.
In a statement, Finablr said that Trivedi – who was replaced at Network International in January 2017 – will take on the role with immediate effect.
“He [Trivedi] is an experienced business professional with over 25 years’ senior management experience in strategy, sales, marketing, business development and operations in the financial services sector,” said Michael Tomalin, co-chairman of Finablr and chairman of the nomination committee.
Tomalin added that Trivedi has “deep domain expertise in emerging technologies and payments with a special focus on the consumer payment and remittance industry.”
Finablr, the embattled owner of foreign-exchange businesses including Travelex Holdings, has appointed former Network International CEO Bhairav Trivedi as CEO.
In a statement, Finablr said that Trivedi – who was replaced at Network International in January 2017 – will take on the role with immediate effect.
“He [Trivedi] is an experienced business professional with over 25 years’ senior management experience in strategy, sales, marketing, business development and operations in the financial services sector,” said Michael Tomalin, co-chairman of Finablr and chairman of the nomination committee.
Tomalin added that Trivedi has “deep domain expertise in emerging technologies and payments with a special focus on the consumer payment and remittance industry.”
NMC Lenders Tally Losses as ADCB Taps Lazard to Recover Funds - Bloomberg
NMC Lenders Tally Losses as ADCB Taps Lazard to Recover Funds - Bloomberg:
Collateral damage from the implosion of NMC Health Plc is piling up.
UAE Exchange, set up by the founder of the embattled hospital operator, defaulted on a loan of about $300 million, to a group that includes Goldman Sachs Group Inc., JPMorgan Chase & Co., Barclays Plc and Commercial Bank of Dubai PSC, according to people familiar with the matter. At the same time, it emerged that Abu Dhabi Commercial Bank PJSC hired Lazard Ltd. to advise on its more than $1 billion of exposure to the Abu Dhabi-based company.
Underscoring the cash crunch, NMC is braving the market mayhem triggered by the coronavirus pandemic to sell its distribution business, people familiar with the matter said. NMC is seeking as much as $300 million for the unit, they said.
London-listed NMC, founded by Indian entrepreneur Bavaguthu Raghuram Shetty, has seen its stock plunge before it was suspended from trading amid allegations of fraud. Its chairman and chief financial officer have resigned since the company revealed more than $4 billion of undisclosed debt, and the company has lost its elite status as a member of the FTSE 100 index.
Collateral damage from the implosion of NMC Health Plc is piling up.
UAE Exchange, set up by the founder of the embattled hospital operator, defaulted on a loan of about $300 million, to a group that includes Goldman Sachs Group Inc., JPMorgan Chase & Co., Barclays Plc and Commercial Bank of Dubai PSC, according to people familiar with the matter. At the same time, it emerged that Abu Dhabi Commercial Bank PJSC hired Lazard Ltd. to advise on its more than $1 billion of exposure to the Abu Dhabi-based company.
Underscoring the cash crunch, NMC is braving the market mayhem triggered by the coronavirus pandemic to sell its distribution business, people familiar with the matter said. NMC is seeking as much as $300 million for the unit, they said.
London-listed NMC, founded by Indian entrepreneur Bavaguthu Raghuram Shetty, has seen its stock plunge before it was suspended from trading amid allegations of fraud. Its chairman and chief financial officer have resigned since the company revealed more than $4 billion of undisclosed debt, and the company has lost its elite status as a member of the FTSE 100 index.
Oil falls towards $25 as oversupply fears mount with U.S. inventory rise - Reuters
Oil falls towards $25 as oversupply fears mount with U.S. inventory rise - Reuters:
Oil fell towards $25 a barrel on Wednesday, within sight of its lowest in 18 years, as a report showing a big rise in U.S. inventories and a widening rift within OPEC heightened oversupply concerns.
Pledges of higher output from Saudi Arabia and Russia after a supply pact collapsed and a slide in demand due to the coronavirus outbreak have hammered the market. Global benchmark Brent crude fell 66% in the first three months of 2020 in its biggest ever quarterly loss.
As of 1217 GMT, June Brent LCOc1 was down 94 cents, or 3.6%, at $25.41. U.S. West Texas Intermediate crude for May Clc1 was down 11 cents at $20.37. Brent fell to $21.65 on Monday, the lowest since 2002, when the now-expired May contract was the front month.
Oil fell towards $25 a barrel on Wednesday, within sight of its lowest in 18 years, as a report showing a big rise in U.S. inventories and a widening rift within OPEC heightened oversupply concerns.
Pledges of higher output from Saudi Arabia and Russia after a supply pact collapsed and a slide in demand due to the coronavirus outbreak have hammered the market. Global benchmark Brent crude fell 66% in the first three months of 2020 in its biggest ever quarterly loss.
As of 1217 GMT, June Brent LCOc1 was down 94 cents, or 3.6%, at $25.41. U.S. West Texas Intermediate crude for May Clc1 was down 11 cents at $20.37. Brent fell to $21.65 on Monday, the lowest since 2002, when the now-expired May contract was the front month.
MIDEAST STOCKS-Weak oil, recession fears pressure most Gulf stocks | Nasdaq
MIDEAST STOCKS-Weak oil, recession fears pressure most Gulf stocks | Nasdaq:
Most Middle Eastern bourses fell on Wednesday, with Dubai leading the losses, hurt by plunging oil prices and the prospect of a deep global recession due to the coronavirus pandemic.
Brent LCOc1 tumbled $1.45, or 5.5%, at $24.90 by 0830 GMT as a report showing a big rise in U.S. inventories and a widening rift within OPEC heightened oversupply concerns. O/R
Prices fell to $21.65 on Monday, the lowest since 2002 and the global benchmark has fallen 66% in the first three months of 2020 in its biggest ever quarterly loss.
Dubai's main share index .DFMGI fell 2.9%, weighed down by a 5% slide in Dubai Islamic Bank DISB.DU and a 4.6% drop in Emirates NBD Bank ENBD.DU.
In Abu Dhabi, the index .ADI edged up 0.3% in a choppy trading session. Telecoms firm Etisalat ETISALAT.AD gained 1.9% and First Abu Dhabi Bank FAB.AD gained 1%.
Most Middle Eastern bourses fell on Wednesday, with Dubai leading the losses, hurt by plunging oil prices and the prospect of a deep global recession due to the coronavirus pandemic.
Brent LCOc1 tumbled $1.45, or 5.5%, at $24.90 by 0830 GMT as a report showing a big rise in U.S. inventories and a widening rift within OPEC heightened oversupply concerns. O/R
Prices fell to $21.65 on Monday, the lowest since 2002 and the global benchmark has fallen 66% in the first three months of 2020 in its biggest ever quarterly loss.
Dubai's main share index .DFMGI fell 2.9%, weighed down by a 5% slide in Dubai Islamic Bank DISB.DU and a 4.6% drop in Emirates NBD Bank ENBD.DU.
In Abu Dhabi, the index .ADI edged up 0.3% in a choppy trading session. Telecoms firm Etisalat ETISALAT.AD gained 1.9% and First Abu Dhabi Bank FAB.AD gained 1%.
Gulf banks put brakes on lending as dollar liquidity crunch looms - Reuters
Gulf banks put brakes on lending as dollar liquidity crunch looms - Reuters:
Gulf banks are limiting their lending to minimize potential losses from the coronavirus crisis and an expected squeeze in dollar liquidity in the oil reliant region, some bankers say.
Like banks around the world, Gulf lenders face an expected drop in loan growth in crisis-affected industries such as retail, tourism and transport, but they must also navigate the impact of plunging crude prices on the region.
Restricting lending is expected to hit small businesses most vulnerable to lower demand and supply chain disruptions hardest.
“Right now what’s happening is that banks are afraid to give loans to SMEs (small and medium sized enterprises), so I don’t know how SMEs will recover from this because they won’t have financial backup,” a banker from the United Arab Emirates said.
Gulf banks are limiting their lending to minimize potential losses from the coronavirus crisis and an expected squeeze in dollar liquidity in the oil reliant region, some bankers say.
Like banks around the world, Gulf lenders face an expected drop in loan growth in crisis-affected industries such as retail, tourism and transport, but they must also navigate the impact of plunging crude prices on the region.
Restricting lending is expected to hit small businesses most vulnerable to lower demand and supply chain disruptions hardest.
“Right now what’s happening is that banks are afraid to give loans to SMEs (small and medium sized enterprises), so I don’t know how SMEs will recover from this because they won’t have financial backup,” a banker from the United Arab Emirates said.
Gulf Economies So Hit by Crisis That Rebound May Be L-Shaped - Bloomberg
Gulf Economies So Hit by Crisis That Rebound May Be L-Shaped - Bloomberg:
The non-oil economies of the energy-rich Gulf states are likely going in reverse this year, shrinking in the case of Saudi Arabia for the first time in more than three decades.
Once they shift into higher gear, the bounceback will generate so little momentum that a creeping recovery may look “L-shaped” for years to come, according to Ziad Daoud of Bloomberg Economics.
Although higher crude production may pull overall growth higher, the Gulf Cooperation Council -- comprising six monarchies including Saudi Arabia -- will likely suffer a contraction of about 2% this year in non-oil activity, which is a better gauge of economic health and an engine of job creation.
“Non-oil growth in the Gulf could shift to a lower level once the virus crisis is over,” Daoud said. “The severity of the oil shock might make governments reluctant to spend, a prerequisite for a stronger turnaround in the years ahead.”
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The main King Fahd road sits empty following a curfew in Riyadh, on March 26.
Photographer: Fayez Nureldine/AFP via Getty Images |
The non-oil economies of the energy-rich Gulf states are likely going in reverse this year, shrinking in the case of Saudi Arabia for the first time in more than three decades.
Once they shift into higher gear, the bounceback will generate so little momentum that a creeping recovery may look “L-shaped” for years to come, according to Ziad Daoud of Bloomberg Economics.
Although higher crude production may pull overall growth higher, the Gulf Cooperation Council -- comprising six monarchies including Saudi Arabia -- will likely suffer a contraction of about 2% this year in non-oil activity, which is a better gauge of economic health and an engine of job creation.
“Non-oil growth in the Gulf could shift to a lower level once the virus crisis is over,” Daoud said. “The severity of the oil shock might make governments reluctant to spend, a prerequisite for a stronger turnaround in the years ahead.”
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.
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.
#UAE's Fujairah oil storage tanks at full capacity- industry, trade sources | ZAWYA MENA Edition
UAE's Fujairah oil storage tanks at full capacity- industry, trade sources | ZAWYA MENA Edition:
Storage tanks in the United Arab Emirates' Fujairah, a key bunkering and oil hub in the Middle East, have reached their full capacity for both crude and oil products, three industry and trading sources told Reuters on Wednesday.
Located on the east coast of the UAE at the entrance to the Strait of Hormuz, Fujairah is one of two major ports in the region along with Oman’s Sohar and is a busy refueling point for tankers taking crude on long voyages out of the Gulf.
The Fujairah emirate is keen to boost its status as a global trading hub by increasing its port storage capacity from 10 million cubic meters to 14 million cubic meters by 2020. Traditionally, it focused on fuel to power tankers and refined oil products but has also expanded in recent years to crude storage.
Storage tanks in the United Arab Emirates' Fujairah, a key bunkering and oil hub in the Middle East, have reached their full capacity for both crude and oil products, three industry and trading sources told Reuters on Wednesday.
Located on the east coast of the UAE at the entrance to the Strait of Hormuz, Fujairah is one of two major ports in the region along with Oman’s Sohar and is a busy refueling point for tankers taking crude on long voyages out of the Gulf.
The Fujairah emirate is keen to boost its status as a global trading hub by increasing its port storage capacity from 10 million cubic meters to 14 million cubic meters by 2020. Traditionally, it focused on fuel to power tankers and refined oil products but has also expanded in recent years to crude storage.
Oil falls towards $25 as oversupply fears mount with U.S. inventory rise - Reuters
Oil falls towards $25 as oversupply fears mount with U.S. inventory rise - Reuters:
Oil slid towards $25 a barrel on Wednesday, within sight of its lowest in 18 years, as a report showing a big rise in U.S. inventories and a widening rift within OPEC heightened oversupply concerns.
Pledges of higher output from Saudi Arabia and Russia after a supply pact collapsed and a slide in demand due to the coronavirus outbreak have hammered the market.
Global benchmark Brent crude fell 66% in the first three months of 2020 in its biggest ever quarterly loss.
As of 1039 GMT, Brent LCOc1 was down 76 cents, or 2.9%, at $25.59. U.S. West Texas Intermediate crude Clc1 was down 1 cent at $20.47.
“April will be one of the toughest months in history for oil and this is no April fool’s joke,” said Bjornar Tonhaugen of Rystad Energy.
Oil slid towards $25 a barrel on Wednesday, within sight of its lowest in 18 years, as a report showing a big rise in U.S. inventories and a widening rift within OPEC heightened oversupply concerns.
Pledges of higher output from Saudi Arabia and Russia after a supply pact collapsed and a slide in demand due to the coronavirus outbreak have hammered the market.
Global benchmark Brent crude fell 66% in the first three months of 2020 in its biggest ever quarterly loss.
As of 1039 GMT, Brent LCOc1 was down 76 cents, or 2.9%, at $25.59. U.S. West Texas Intermediate crude Clc1 was down 1 cent at $20.47.
“April will be one of the toughest months in history for oil and this is no April fool’s joke,” said Bjornar Tonhaugen of Rystad Energy.
Coronavirus: Emerging markets, including #SaudiArabia, headed for recession? | ZAWYA MENA Edition
Coronavirus: Emerging markets, including Saudi Arabia, headed for recession? | ZAWYA MENA Edition:
Economies in the emerging markets (EM), including Saudi Arabia, are likely to fall into a recession or see sharply lower growth in 2020 amid widespread economic activity stoppage and quarantine measures, a ratings agency said.
S&P Global Ratings said in a new analysis released on Wednesday that emerging markets are now facing “severe stress” resulting from the global pandemic and that countries within the Asia-Pacific region are headed for the lowest growth in over two decades, at 3 percent.
“All key emerging economies that we cover will fall into recession or see sharply lower growth in 2020,” S&P said.
S&P’s emerging market classification includes Saudi Arabia, Turkey, Russia, India, China, Indonesia, Philippines, Malaysia and Thailand, among others.
Economies in the emerging markets (EM), including Saudi Arabia, are likely to fall into a recession or see sharply lower growth in 2020 amid widespread economic activity stoppage and quarantine measures, a ratings agency said.
S&P Global Ratings said in a new analysis released on Wednesday that emerging markets are now facing “severe stress” resulting from the global pandemic and that countries within the Asia-Pacific region are headed for the lowest growth in over two decades, at 3 percent.
“All key emerging economies that we cover will fall into recession or see sharply lower growth in 2020,” S&P said.
S&P’s emerging market classification includes Saudi Arabia, Turkey, Russia, India, China, Indonesia, Philippines, Malaysia and Thailand, among others.
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.
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-Gulf markets fall on oil slide, recession fears | Nasdaq
MIDEAST STOCKS-Gulf markets fall on oil slide, recession fears | Nasdaq:
Gulf stock markets fell on Wednesday as oil prices slipped and prospects of a deep global recession due to the fast-spreading coronavirus outbreak rattled investors.
Brent crude LCOc1 declined $1.02, or 3.9%, to $25.33 a barrel by 0643 GMT.
The Dubai stock index .DFMGI lost 1.9%, dragged by a 3.6% fall in Dubai Islamic Bank DISB.DU and a 4.1% slide in Emaar Properties EMAR.DU.
The Abu Dhabi index .ADI lost 0.6%. Top lender First Abu Dhabi Bank FAB.AD dropped 1%, while Abu Dhabi Commercial Bank ADCB.AD sank 5%.
The United Arab Emirates revoked a system allowing individuals to obtain permits to move around during nightly curfews imposed temporarily for a disinfection drive, the Interior Ministry said on Tuesday.
Gulf stock markets fell on Wednesday as oil prices slipped and prospects of a deep global recession due to the fast-spreading coronavirus outbreak rattled investors.
Brent crude LCOc1 declined $1.02, or 3.9%, to $25.33 a barrel by 0643 GMT.
The Dubai stock index .DFMGI lost 1.9%, dragged by a 3.6% fall in Dubai Islamic Bank DISB.DU and a 4.1% slide in Emaar Properties EMAR.DU.
The Abu Dhabi index .ADI lost 0.6%. Top lender First Abu Dhabi Bank FAB.AD dropped 1%, while Abu Dhabi Commercial Bank ADCB.AD sank 5%.
The United Arab Emirates revoked a system allowing individuals to obtain permits to move around during nightly curfews imposed temporarily for a disinfection drive, the Interior Ministry said on Tuesday.
Oil’s Apocalyptic April Could Reverberate for Years to Come - Bloomberg
Oil’s Apocalyptic April Could Reverberate for Years to Come - Bloomberg:
Oil is entering a period of unparalleled demand destruction this month that promises to transform the industry for years to come.
Daily consumption will plummet by 15 million to 22 million barrels in April from a year earlier, according to estimates from some of the world’s most influential energy analysts. The crash has already led to refiners slashing processing, drillers halting output and storage tanks swelling across the world.
“This will likely be a game-changer for the industry,” Goldman Sachs Group Inc. analysts including Jeffrey Currie and Damien Courvalin said in a March 30 note. “It is impossible to shut down that much demand without large and persistent ramifications to supply.”
The demand slump is being exacerbated by former OPEC+ allies Saudi Arabia and Russia pumping as much crude as they can in a battle for market share, heaping additional pressure on shipping, tanks and pipelines. Goldman sees around 20 million barrels a day flowing into storage in April, while IHS Markit expects the world will run out of space to store oil by the middle of the year.
Oil is entering a period of unparalleled demand destruction this month that promises to transform the industry for years to come.
Daily consumption will plummet by 15 million to 22 million barrels in April from a year earlier, according to estimates from some of the world’s most influential energy analysts. The crash has already led to refiners slashing processing, drillers halting output and storage tanks swelling across the world.
“This will likely be a game-changer for the industry,” Goldman Sachs Group Inc. analysts including Jeffrey Currie and Damien Courvalin said in a March 30 note. “It is impossible to shut down that much demand without large and persistent ramifications to supply.”
The demand slump is being exacerbated by former OPEC+ allies Saudi Arabia and Russia pumping as much crude as they can in a battle for market share, heaping additional pressure on shipping, tanks and pipelines. Goldman sees around 20 million barrels a day flowing into storage in April, while IHS Markit expects the world will run out of space to store oil by the middle of the year.
#SaudiArabia’s Post-Oil Plan Faces Cuts as Crude Plummets - Bloomberg
Saudi Arabia’s Post-Oil Plan Faces Cuts as Crude Plummets - Bloomberg:
Plans for a future after oil in Saudi Arabia are increasingly at the mercy of the present.
A strategy to transform the Saudi economy, championed by Crown Prince Mohammed bin Salman, is likely to face deep budget cuts as the coronavirus pandemic and plummeting crude prices batter the economy, according to people familiar with the matter.
Dubbed Vision 2030, the wide-ranging initiative unveiled with fanfare in 2016 aims to diversify the oil-dependent economy and attract foreign investment. Economists say the government has fallen behind on some targets, however, and insiders working on the plan have complained of overlapping remits and conflicting priorities.
Officials began a broad reassessment of the blueprint before the latest crises, but the Finance Ministry is now specifically looking to pare back its budgets, according to two people familiar with the matter. They said officials hadn’t yet decided how the added pressure of the oil price collapse would affect the review, but they’re expecting significant cuts.
Plans for a future after oil in Saudi Arabia are increasingly at the mercy of the present.
A strategy to transform the Saudi economy, championed by Crown Prince Mohammed bin Salman, is likely to face deep budget cuts as the coronavirus pandemic and plummeting crude prices batter the economy, according to people familiar with the matter.
Dubbed Vision 2030, the wide-ranging initiative unveiled with fanfare in 2016 aims to diversify the oil-dependent economy and attract foreign investment. Economists say the government has fallen behind on some targets, however, and insiders working on the plan have complained of overlapping remits and conflicting priorities.
Officials began a broad reassessment of the blueprint before the latest crises, but the Finance Ministry is now specifically looking to pare back its budgets, according to two people familiar with the matter. They said officials hadn’t yet decided how the added pressure of the oil price collapse would affect the review, but they’re expecting significant cuts.
#AbuDhabi News: Bank Taps Lazard on NMC Health, Finablr Advice - Bloomberg
Abu Dhabi News: Bank Taps Lazard on NMC Health, Finablr Advice - Bloomberg:
Abu Dhabi Commercial Bank PJSC hired Lazard Ltd. to advise on its exposure to NMC Health Plc and Finablr Plc, as the companies’ financial troubles mount, people familiar with the matter said.
The boutique bank will help recover some of the funds the state-owned lender provided to the struggling hospital operator and financial services firm, one of the people said, asking not to be identified because the matter is private.
Abu Dhabi Commercial Bank is currently seen as one of the biggest creditors to NMC with more than $1 billion of exposure, people with knowledge of the matter said on Tuesday. It’s also a lender to payments firm Finablr, which is linked to NMC through its founder and cross-ownership, the people said.
Representatives for Lazard and ADCB declined to comment.
Abu Dhabi Commercial Bank PJSC hired Lazard Ltd. to advise on its exposure to NMC Health Plc and Finablr Plc, as the companies’ financial troubles mount, people familiar with the matter said.
The boutique bank will help recover some of the funds the state-owned lender provided to the struggling hospital operator and financial services firm, one of the people said, asking not to be identified because the matter is private.
Abu Dhabi Commercial Bank is currently seen as one of the biggest creditors to NMC with more than $1 billion of exposure, people with knowledge of the matter said on Tuesday. It’s also a lender to payments firm Finablr, which is linked to NMC through its founder and cross-ownership, the people said.
Representatives for Lazard and ADCB declined to comment.
Time to buy? Distress sales plague #Dubai property market hit by COVID-19 | ZAWYA MENA Edition
Time to buy? Distress sales plague Dubai property market hit by COVID-19 | ZAWYA MENA Edition:
Dubai is seeing an increase in distressed property sales as disruptions to business owing to the coronavirus pandemic have put home owners out of jobs or on unpaid leave. Owners are listing residential properties at a 10 to 15 percent discount on the current market price as they seek to liquidate their assets to tide over the crisis.
“There has been a sudden disruption to the property market since the COVID-19 outbreak in Dubai. We have seen a few distress deals in the past few weeks. Landlords who had listed their properties to sell for the past few months have willingly taken greater reductions in price to sell seeing this global crisis unfold,” Farooq Syed, CEO, Springfield Real Estate, told Zawya.
Most such sellers had invested in multiple properties and had already been holding for a long time in the hopes of selling during better market conditions, but the effects of the outbreak soon proved to be far worse than anticipated. With every business affected, sellers who cannot hold anymore or have insufficient cash flow to meet their household expenses and mortgages are putting up their properties for sale.
Dubai is seeing an increase in distressed property sales as disruptions to business owing to the coronavirus pandemic have put home owners out of jobs or on unpaid leave. Owners are listing residential properties at a 10 to 15 percent discount on the current market price as they seek to liquidate their assets to tide over the crisis.
“There has been a sudden disruption to the property market since the COVID-19 outbreak in Dubai. We have seen a few distress deals in the past few weeks. Landlords who had listed their properties to sell for the past few months have willingly taken greater reductions in price to sell seeing this global crisis unfold,” Farooq Syed, CEO, Springfield Real Estate, told Zawya.
Most such sellers had invested in multiple properties and had already been holding for a long time in the hopes of selling during better market conditions, but the effects of the outbreak soon proved to be far worse than anticipated. With every business affected, sellers who cannot hold anymore or have insufficient cash flow to meet their household expenses and mortgages are putting up their properties for sale.
UPDATE 1- #SaudiArabia approves IPO stock listings of government assets planned for privatisation - Reuters
UPDATE 1-Saudi Arabia approves IPO stock listings of government assets planned for privatisation - Reuters:
Saudi Arabia’s government approved in a virtual meeting on Tuesday listing government assets planned for privatisation in stock market TADAWUL after an initial public offering (IPO).
“Assets, sectors and services planned for privatisation shall be listed in Saudi stock market through direct or indirect initial public offering,” said a statement on state news agency SPA.
The privatisation drive is part of Vision 2030, a package of reforms led by Crown Prince Mohammed bin Salman that is intended to wean the economy off oil and create jobs for young Saudis.
Riyadh has struggled over the past few years to attract large investor interest for a slate of planned privatisations aimed at diversity of its oil-driven economy.
Saudi Arabia’s government approved in a virtual meeting on Tuesday listing government assets planned for privatisation in stock market TADAWUL after an initial public offering (IPO).
“Assets, sectors and services planned for privatisation shall be listed in Saudi stock market through direct or indirect initial public offering,” said a statement on state news agency SPA.
The privatisation drive is part of Vision 2030, a package of reforms led by Crown Prince Mohammed bin Salman that is intended to wean the economy off oil and create jobs for young Saudis.
Riyadh has struggled over the past few years to attract large investor interest for a slate of planned privatisations aimed at diversity of its oil-driven economy.
#Dubai's aviation leasing firm mulls deferral requests amid Covid-19 pandemic - Arabianbusiness
Dubai's aviation leasing firm mulls deferral requests amid Covid-19 pandemic - Arabianbusiness:
Dubai Aerospace Enterprise (DAE) has received over 50 rent deferral requests from airlines around the world amid the ongoing coronavirus pandemic, 11 of which have been granted, the leasing firm said in a business update.
Outlining its current position, DAE said it sold or novated 15 aircraft and acquired four more during the first quarter of 2020, ending the quarter with approximately $2.8 billion, the company has announced.
DAE said it also extended leases on 8 aircraft over the course of the quarter.
“In these unprecedented times, DAE has positioned itself to operate calmly and to balance the needs of all our important constituents – employees, customers, bondholders and banks and shareholders,” DAE CEO Firoz Tarapore said in a statement.
Dubai Aerospace Enterprise (DAE) has received over 50 rent deferral requests from airlines around the world amid the ongoing coronavirus pandemic, 11 of which have been granted, the leasing firm said in a business update.
Outlining its current position, DAE said it sold or novated 15 aircraft and acquired four more during the first quarter of 2020, ending the quarter with approximately $2.8 billion, the company has announced.
DAE said it also extended leases on 8 aircraft over the course of the quarter.
“In these unprecedented times, DAE has positioned itself to operate calmly and to balance the needs of all our important constituents – employees, customers, bondholders and banks and shareholders,” DAE CEO Firoz Tarapore said in a statement.
#Kuwait props up coronavirus-hit economy amid low oil prices - Reuters
Kuwait props up coronavirus-hit economy amid low oil prices - Reuters:
Kuwait announced measures early on Wednesday aimed at shoring up its economy against the coronavirus pandemic, including soft long-term loans from local banks, and the central bank asked banks to ease loan repayments for companies affected.
Kuwait, which as of March 31 had registered 289 coronavirus cases, was the first Gulf state to halt passenger flights and impose a partial curfew to stem the spread of the highly infectious respiratory illness.
The sectors most impacted by the pandemic include aviation, hospitality and real estate, a government source told Reuters.
The stimulus package approved by the cabinet aims to provide liquidity for small- and medium-sized enterprises to meet their obligations, a government spokesman said.
Kuwait announced measures early on Wednesday aimed at shoring up its economy against the coronavirus pandemic, including soft long-term loans from local banks, and the central bank asked banks to ease loan repayments for companies affected.
Kuwait, which as of March 31 had registered 289 coronavirus cases, was the first Gulf state to halt passenger flights and impose a partial curfew to stem the spread of the highly infectious respiratory illness.
The sectors most impacted by the pandemic include aviation, hospitality and real estate, a government source told Reuters.
The stimulus package approved by the cabinet aims to provide liquidity for small- and medium-sized enterprises to meet their obligations, a government spokesman said.
Oil skids as oversupply fears pile up with U.S. inventories growth - Reuters
Oil skids as oversupply fears pile up with U.S. inventories growth - Reuters:
Global crude oil prices slid further on Wednesday, following their biggest-ever quarterly and monthly losses, as a bigger-than-expected rise in U.S. inventories and a widening rift within OPEC heightened oversupply fears.
Oil prices are near their lowest since 2002 amid the global coronavirus crisis that has brought a worldwide economic slowdown and slashed oil demand. Crude futures ended the quarter down nearly 70% after record losses in March.
As of 0643 GMT, Brent crude LCOc1 was down by $1.02, or 3.9%, at $25.33 a barrel. U.S. West Texas Intermediate crude Clc1 was down 35 cents, or 1.7%, at $20.13 a barrel, after giving up an earlier gain which analysts said was driven by position building at the start of a the new quarter.
U.S. crude inventories rose by 10.5 million barrels last week, far exceeding forecasts for a 4 million barrel build-up, data from industry group the American Petroleum Institute showed.
Global crude oil prices slid further on Wednesday, following their biggest-ever quarterly and monthly losses, as a bigger-than-expected rise in U.S. inventories and a widening rift within OPEC heightened oversupply fears.
Oil prices are near their lowest since 2002 amid the global coronavirus crisis that has brought a worldwide economic slowdown and slashed oil demand. Crude futures ended the quarter down nearly 70% after record losses in March.
As of 0643 GMT, Brent crude LCOc1 was down by $1.02, or 3.9%, at $25.33 a barrel. U.S. West Texas Intermediate crude Clc1 was down 35 cents, or 1.7%, at $20.13 a barrel, after giving up an earlier gain which analysts said was driven by position building at the start of a the new quarter.
U.S. crude inventories rose by 10.5 million barrels last week, far exceeding forecasts for a 4 million barrel build-up, data from industry group the American Petroleum Institute showed.
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