Bond Market Devouring Record Gulf Debt Won’t Touch #Oman, #Bahrain - Bloomberg

Bond Market Devouring Record Gulf Debt Won’t Touch Oman, Bahrain - Bloomberg:

Oman and Bahrain are stuck on the sidelines of the international debt markets after a record borrowing tally by Gulf Arab economies this month underscored a divide between the region’s strongest and weakest sovereigns.

Facing external financing needs that Goldman Sachs Group Inc. estimates at $5.5 billion this year, Oman and Bahrain are all but shut out from bond funding, waiting for their yields to retreat before wading into the market. Their wealthier neighbors in April raised a combined $24 billion in sales that collectively drew about $140 billion in investor demand.

“Oman and Bahrain will be unlikely to issue unless markets stabilize,” said Abdul Kadir Hussain, head of fixed-income asset management at Arqaam Capital in Dubai. “High-yield pricing remains very dislocated.”

Although no nation in the Gulf is immune to the historic collapse in oil prices and the coronavirus pandemic, Oman and Bahrain stand out for their precarious public finances and strained reserves. Investors who piled into the sultanate’s debt sale less tha

#Oman, Middle Eastern News: Budget Cuts and the Economy - Bloomberg

Oman, Middle Eastern News: Budget Cuts and the Economy - Bloomberg:

Oman’s government is devising new policies to ensure financial stability since spending cuts taken so far to offset the impact of the coronavirus pandemic will only bring temporary relief, a Finance Ministry official said.

A decline in oil revenue will raise the projected deficit by the end of the year in spite of savings of 500 million rials ($1.3 billion) from lower expenditure, Khalid Al Busaidi, a financial policy official at the ministry, was cited as saying by state-run Oman News Agency. He didn’t specify what new policies the sultanate is considering.

The moves will help overcome the current crisis but “won’t be enough as oil prices continue to decline,” he said. “The state budget estimates average oil prices at $58, and prices are currently below $30.”

Oman’s 2020 budget projected revenues at 10.7 billion rials and spending at 13.2 billion rials, ONA said.

Mideast Stocks: Gulf markets rebound after sharp two-day decline | ZAWYA MENA Edition

Mideast Stocks: Gulf markets rebound after sharp two-day decline | ZAWYA MENA Edition:

Major Gulf stock markets closed higher on Sunday, buoyed by some bargain-hunting after sharp declines in the previous two sessions and by progress towards clinical trials of a potential treatment for COVID-19.

Gilead Sciences on Friday increased the enrolment target by 3,600 for trials of experimental drug remdesivir in severe COVID-19 patients, a day after a media report said the drug showed some promise.

However, analysts and the company urged caution on drawing conclusions from early data. 


The Dubai index advanced 3%, with Emirates NBD Bank up 3.7% ahead of a board meeting to approve first-quarter earnings while developer Emaar Properties also gained 3.7%.

The emirate has extended by one week a 24-hour-a-day curfew imposed to control the spread of the coronavirus, the government said in a Twitter post on Friday.

Largest sovereign funds suffer $67 billion paper loss from stock market rout - Reuters

Largest sovereign funds suffer $67 billion paper loss from stock market rout - Reuters:

The world’s largest sovereign wealth funds have made around $67 billion in losses so far this year as the fallout from the coronavirus has buffeted their major holdings.

A significant chunk of that, about $40 billion, stemmed from stakes held by a subsidiary of China Investment Corporation in Chinese financial institutions such as China Construction Bank (601939.SS), Industrial and Commercial Bank of China (601398.SS), Bank of China (601988.SS) and Agricultural Bank of China (601288.SS), according to calculations from Javier Capape, director of sovereign wealth research at the IE Center for the Governance of Change.

He analysed data from 15 different funds where the initial investment was more than $1 billion to estimate the paper losses.

“Some of the big stakes were taken during the global financial crisis and those stakes in European banks like Barclays (BARC.L) and Credit Suisse (CSGN.S) have been suffering,” he said.

#AbuDhabi's $7m bond offering draws strong investor interest - Arabianbusiness

Abu Dhabi's $7m bond offering draws strong investor interest - Arabianbusiness:

A $7 billion multi-tranche international bond offering by Abu Dhabi was more than 6.3 times oversubscribed, marking a new record for the emirate.

Abu Dhabi Department of Finance has revealed orders came in from over 100 new accounts and the order book reached in excess of $45bn, despite the economic slowdown caused by low oil prices and the coronavirus pandemic.

Jassim Mohammed Buatabh Al Zaabi, chairman of the Abu Dhabi Department of Finance, said: "The success of the issuance, particularly amidst the global uncertainties caused by the Covid-19 pandemic and the oil price decline, is testament to the continued confidence placed in our aptitude to generate sustainable economic growth.

“Our robust credit fundamentals and strong credit ratings with stable outlooks have enabled us to attract remarkable demand from a diverse pool of investors from the international debt capital markets."

Middle East Stocks, Equities News: Index for April 19, 2020 - Bloomberg

Middle East Stocks, Equities News: Index for April 19, 2020 - Bloomberg:

Middle Eastern stocks rose on Sunday following a rally in emerging-market assets at the end of last week as the U.S. outlined steps to reopen its coronavirus-shuttered economy.

Israel’s TA-35 rose 3.5%, with Bank Hapoalim and Bank Leumi climbing more than 4% as of 11:15 a.m. local time, as the country eases its lockdown. Gauges in Dubai, Abu Dhabi, Bahrain, Saudi Arabia, Qatar and Kuwait advanced between 0.3% and 2.5%. MSCI Inc.’s index of developing-nation stocks strengthened 1.9% on Friday.

“Equity markets can expect an attempt to build on recent momentum into the new trading week, with optimism that progress is coming through on a coronavirus vaccine improving sentient,” said Jameel Ahmad, a markets analyst at FXTM in London. “However, in an unprecedented global pandemic investors will also be acutely aware that it is arguably too early for celebrations.”

#Saudi banks get small part of $7 bln bond sale amid liquidity concerns -sources - Reuters

Saudi banks get small part of $7 bln bond sale amid liquidity concerns -sources - Reuters:

The Saudi government sold to local banks only a small part of $7 billion bonds issued last week, three sources told Reuters, amid fears of a liquidity squeeze caused by lower oil prices.

The three-part bond issuance came after Riyadh last month raised its debt ceiling to 50% of GDP from a previous 30% to finance a widening deficit caused by lower oil prices and the economic downturn caused by the coronavirus outbreak.

A Saudi banker said his and at least two other local banks were not allocated any paper despite placing sizeable orders, adding it was probably due to government’s plans to maintain ample liquidity among banks which, he said, “are overextended”.

He said that could also suggest the government plans to issue local currency denominated bonds soon.

MIDEAST STOCKS-Gulf stocks rise on bargain-hunting, potential COVID-19 drug - Agricultural Commodities - Reuters

MIDEAST STOCKS-Gulf stocks rise on bargain-hunting, potential COVID-19 drug - Agricultural Commodities - Reuters:

Major Gulf stock markets traded higher on Sunday as investors looked for bargains following two sessions of losses and on hopes about a clinical trial for a potential drug to treat COVID-19.

Gilead Sciences Inc on Friday increased the enrolment target by 3,600 for a trial testing its experimental drug, remdesivir, in severe COVID-19 patients, a day after a media report said the drug was showing promise.

In Dubai, the index gained 2.9%, with its largest lender Emirates NBD rising 3.7%, while Emaar Properties was up 4.1%.

Dubai has extended by one week a 24-hour-a-day curfew imposed to control the spread of the coronavirus, the government said in a Twitter post on Friday.

Spending spree: Why Newcastle United may not be the best investment for #SaudiArabia right now - Arabianbusiness

Spending spree: Why Newcastle United may not be the best investment for Saudi Arabia right now - Arabianbusiness:

There’s a certain devil-may-care glamour about going on a shopping spree when you’re already living beyond your means. It’s probably not the best way to convince your creditors to keep putting up the cash, however. 

Saudi Arabia might want to reflect on that after its recent splurge on oil companies, cruise ships and soccer. In the past month, the kingdom’s sovereign wealth fund has bought or been linked to plans to buy an 8.2 percent stake in cruise operator Carnival Corp.; about 80 percent of Newcastle United Football Club; and holdings in Royal Dutch Shell Plc, Total SA, Eni SpA and Equinor ASA.  


Alarmingly, the most sensible item on that shopping list may well be the 13th-placed team in the English Premier League. Carnival shares, for instance, are already down by about a third since the kingdom’s Public Investment Fund (PIF) completed its acquisition of stock in the business last month.

#Dubai's Shuaa Capital announces $12.8m annual net profit - Arabianbusiness

Dubai's Shuaa Capital announces $12.8m annual net profit - Arabianbusiness:

Dubai-based Shuaa Capital has revealed a net profit of AED47 million ($12.8m) in its annual results.

The company, which was created by the merger of Shuaa Capital and Abu Dhabi Financial Group (ADFG) last year, held its first general meeting virtually where it reported an EBITDA of AED186m ($50.6m), including merger costs.

Jassim Alseddiqi, chief executive officer of Shuaa Capital, said: “Shuaa’s management team is committed to continuing to deliver on the synergies and sustainable value arising from the merger with ADFG.

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.