Saudi takeover of Newcastle jeopardised by legal documents: Report | Middle East Eye:
New legal documents have been filed with the English Premier League (EPL) that raise fresh questions about the $368m takeover of Newcastle United Football Club by a Saudi Arabian sovereign wealth fund.
EPL lawyers are understood to be examining information said to establish a clear link between the Saudi government and the pirate broadcast of Qatar's BeIN Sports' output, including Premier League games, on the BeoutQ platform, the Guardian newspaper reported on Monday.
BeIN Sports, a key broadcast partner of the EPL, accuses Saudi Arabia of masterminding the pirate broadcast of its output as part of a diplomatic dispute between Doha and Riyadh. Saudi Arabia denies the claims.
The new documents mean any decision to approve the takeover by Saudi Arabia’s public investment fund, Reuben Brothers and Amanda Staveley, a British businesswoman, which had been expected within days, is likely to be delayed.
Tuesday, 12 May 2020
Oil rises as OPEC looks to deepen, extend supply cuts - Reuters
Oil rises as OPEC looks to deepen, extend supply cuts - Reuters:
Oil prices rose on Tuesday after OPEC’s de facto leader, Saudi Arabia, said it would increase supply curbs in June, while other members of the oil-producing group said they want to extend the deep cuts reached in April for a longer period than originally agreed.
OPEC and its allies, a group known as OPEC+, decided in April to cut output by 9.7 million barrels per day (bpd) for May and June, a record reduction, in response to the 30% drop in fuel demand worldwide caused by the coronavirus pandemic. The group was expected to curtail that reduction to 8 million bpd, but sources told Reuters they instead expect OPEC+ to maintain the larger reduction.
U.S. West Texas Intermediate (WTI) crude futures settled at $25.78 a barrel, up $1.64, or 6.8%. Brent crude futures settled at $29.98 a barrel, gaining 35 cents, or 1.2%.
On Tuesday, four sources told Reuters that OPEC and its allies want to maintain the 9.7 million bpd cut beyond June, when the OPEC+ group is next due to meet.
Oil prices rose on Tuesday after OPEC’s de facto leader, Saudi Arabia, said it would increase supply curbs in June, while other members of the oil-producing group said they want to extend the deep cuts reached in April for a longer period than originally agreed.
OPEC and its allies, a group known as OPEC+, decided in April to cut output by 9.7 million barrels per day (bpd) for May and June, a record reduction, in response to the 30% drop in fuel demand worldwide caused by the coronavirus pandemic. The group was expected to curtail that reduction to 8 million bpd, but sources told Reuters they instead expect OPEC+ to maintain the larger reduction.
U.S. West Texas Intermediate (WTI) crude futures settled at $25.78 a barrel, up $1.64, or 6.8%. Brent crude futures settled at $29.98 a barrel, gaining 35 cents, or 1.2%.
On Tuesday, four sources told Reuters that OPEC and its allies want to maintain the 9.7 million bpd cut beyond June, when the OPEC+ group is next due to meet.
Aramco well placed for timid oil recovery
Aramco well placed for timid oil recovery
Saudi Aramco is the investment of choice for those who think the oil market is a glass half full. True, U.S. crude futures temporarily turned negative last month, and even after something of a recovery Brent still trades at just $30 a barrel. Even so, the Saudi Arabian oil giant’s first-quarter results suggest at least some players are well prepared.
Saudi Aramco is the investment of choice for those who think the oil market is a glass half full. True, U.S. crude futures temporarily turned negative last month, and even after something of a recovery Brent still trades at just $30 a barrel. Even so, the Saudi Arabian oil giant’s first-quarter results suggest at least some players are well prepared.
Chief Executive Amin Nasser is caught in a storm, but he’s at least in a big boat. While Aramco’s earnings dropped by one-quarter year-on-year in the three months ending March 31, the company at least has more cash than debt. If he needed to, Nasser could borrow the entirety of this year’s intended $75 billion dividend and still keep net debt below 20% of total capital, well below UK rival BP’s 36%.
Of course, Aramco’s free cash flow in the second quarter will be a lot lower than the first quarter’s $15 billion, because of falling prices. So will production: the 9.8 million barrels of daily output will fall in June to 7.5 million, after Saudi said it would voluntarily cut more than its original share of a 9.7 million barrels daily reduction by the Organization of the Petroleum Exporting Countries.
The market, though, now looks less dire than it did. Recently, with daily supply outstripping coronavirus-hit demand by 20 million barrels, oil producers faced a seemingly impossible balancing act. The doomsday scenario was that the glut persisted, storage filled up, and producers were forced to shut down their output – potentially sending many out of business.
Oil prices up after #Saudi pledge on cuts eases some glut fears - Reuters
Oil prices up after Saudi pledge on cuts eases some glut fears - Reuters:
Oil prices rose on Tuesday, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain a supply glut built up during the coronavirus crisis.
Brent crude LCOc1 advanced 78 cents, or 2.6%, to $30.41 at 1216 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 was up $1.22, or 5%, at $25.36.
Saudi Arabia said on Monday it would adding to existing cuts by reducing output by a further 1 million barrels per day (bpd) in June, slashing total production to 7.5 million bpd, or down nearly 40% from April.
The United Arab Emirates and Kuwait also committed to cut an extra 180,000 bpd in total, adding to reductions the producers agreed under a deal between OPEC, Russia and other nations, a group known as OPEC+.
Oil prices rose on Tuesday, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain a supply glut built up during the coronavirus crisis.
Brent crude LCOc1 advanced 78 cents, or 2.6%, to $30.41 at 1216 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 was up $1.22, or 5%, at $25.36.
Saudi Arabia said on Monday it would adding to existing cuts by reducing output by a further 1 million barrels per day (bpd) in June, slashing total production to 7.5 million bpd, or down nearly 40% from April.
The United Arab Emirates and Kuwait also committed to cut an extra 180,000 bpd in total, adding to reductions the producers agreed under a deal between OPEC, Russia and other nations, a group known as OPEC+.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
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.
Mubadala expected to sell $3 bln - $4 bln in three-tranche bonds - document - Reuters
Mubadala expected to sell $3 bln - $4 bln in three-tranche bonds - document - Reuters:
Abu Dhabi’s state fund Mubadala was expected to sell $3 billion to $4 billion in a three-tranche bond offering and has received more than $17 billion in combined orders for the deal, a document showed on Tuesday.
Mubadala tightened its price guidance to around 220 basis points (bps) over midswaps for the six-year notes, around 245 bps over midswaps for the 10-year bonds and around 4.1% for the dual-listed 30-year Formosa bonds, the document from one of the banks leading the deal showed.
It had earlier given an initial price guidance of around 250 basis points (bps) over midswaps for the six-year tranche, around 275 bps over midswaps for the 10-year notes and around 4.375% for the 30-year Formosa bonds. The deal is expected to close later on Tuesday.
Abu Dhabi’s state fund Mubadala was expected to sell $3 billion to $4 billion in a three-tranche bond offering and has received more than $17 billion in combined orders for the deal, a document showed on Tuesday.
Mubadala tightened its price guidance to around 220 basis points (bps) over midswaps for the six-year notes, around 245 bps over midswaps for the 10-year bonds and around 4.1% for the dual-listed 30-year Formosa bonds, the document from one of the banks leading the deal showed.
It had earlier given an initial price guidance of around 250 basis points (bps) over midswaps for the six-year tranche, around 275 bps over midswaps for the 10-year notes and around 4.375% for the 30-year Formosa bonds. The deal is expected to close later on Tuesday.
#UAE News: #Dubai Family Businesses Seek VAT Cut, Faster Payments - Bloomberg
UAE News: Dubai Family Businesses Seek VAT Cut, Faster Payments - Bloomberg:
Family-owned businesses in Dubai have asked the government to adopt several measures to help companies struggling to weather the current crisis, including reducing value added tax and speeding up payments.
The meeting on April 21 between representatives of the companies and the emirate’s ruling family resulted in 14 recommendations summed up in a letter by the head of Dubai’s Chamber of Commerce & Industry. The letter, seen by Bloomberg, was confirmed by the chamber.
Firms asked Dubai’s government to:
Family-owned businesses in Dubai have asked the government to adopt several measures to help companies struggling to weather the current crisis, including reducing value added tax and speeding up payments.
The meeting on April 21 between representatives of the companies and the emirate’s ruling family resulted in 14 recommendations summed up in a letter by the head of Dubai’s Chamber of Commerce & Industry. The letter, seen by Bloomberg, was confirmed by the chamber.
Firms asked Dubai’s government to:
- Reduce VAT to 2% from 5% or delay payments for 2020. Firms also asked that all VAT-related fines be forgiven to support liquidity.
- Grant state-subsidized loans to small and medium enterprises hit by the shutdown.
- Help subsidize some salaries of employees in companies hard-hit by the shutdown.
- State help to fund the repatriation of workers, who lost their jobs, with firms repaying the state in installments over 12-24 months.
- Cancel or reduce by 50% the cost of trade-license issuance or renewal in 2020.
- Cut customs duties and utility costs by 50% this year.
#UAE News: #AbuDhabi's NMC Health Brought Scandal to London - Bloomberg
UAE News: Abu Dhabi's NMC Health Brought Scandal to London - Bloomberg:
A financial scandal has swept through London and the United Arab Emirates, centered on allegations of fraud at the two core companies of the Abu Dhabi-based tycoon Bavaguthu Raghuram Shetty. Both NMC Health Plc and Finablr Plc have had their shares suspended in London, with NMC losing its place in the FTSE 100 index of leading U.K.-listed companies. It’s been a dramatic turnaround, triggered by a report from the short seller Muddy Waters Capital LLC, for a once multibillion-dollar group that has shaken investor confidence in the Middle Eastern business world and prompted questions about the oversight of London-listed companies.
1. What happened at NMC Health?
The Muddy Waters report on Dec. 17 raised concerns that the Middle East’s largest hospital operator had overpaid for assets, inflated cash balances and understated debt. NMC shares plunged, falling by more than 60% by the time they were halted on the London Stock Exchange in February -- barely 2 1/2 years after joining the likes of HSBC Holdings Plc and AstraZeneca Plc in the FTSE 100. NMC dropped a bombshell in March, disclosing $2.7 billion in previously unreported debt that it said may have been used for purposes not approved by the board. It then bumped up that figure to more than $4 billion, trebling what NMC had originally disclosed as debt. An investigation instigated by NMC founder Shetty uncovered “serious fraud and wrongdoing.”
A financial scandal has swept through London and the United Arab Emirates, centered on allegations of fraud at the two core companies of the Abu Dhabi-based tycoon Bavaguthu Raghuram Shetty. Both NMC Health Plc and Finablr Plc have had their shares suspended in London, with NMC losing its place in the FTSE 100 index of leading U.K.-listed companies. It’s been a dramatic turnaround, triggered by a report from the short seller Muddy Waters Capital LLC, for a once multibillion-dollar group that has shaken investor confidence in the Middle Eastern business world and prompted questions about the oversight of London-listed companies.
1. What happened at NMC Health?
The Muddy Waters report on Dec. 17 raised concerns that the Middle East’s largest hospital operator had overpaid for assets, inflated cash balances and understated debt. NMC shares plunged, falling by more than 60% by the time they were halted on the London Stock Exchange in February -- barely 2 1/2 years after joining the likes of HSBC Holdings Plc and AstraZeneca Plc in the FTSE 100. NMC dropped a bombshell in March, disclosing $2.7 billion in previously unreported debt that it said may have been used for purposes not approved by the board. It then bumped up that figure to more than $4 billion, trebling what NMC had originally disclosed as debt. An investigation instigated by NMC founder Shetty uncovered “serious fraud and wrongdoing.”
#Qatar News: Natural Gas Market Glut Leaves Nation in a Conundrum - Bloomberg
Qatar News: Natural Gas Market Glut Leaves Nation in a Conundrum - Bloomberg:
Hemmed in by weak demand and scarce storage, the world’s biggest exporter of liquefied natural gas may soon face a stark choice: curb output or ignite a battle for market share that has the potential -- just as in the oil market -- to turn gas prices negative.
Qatar began in February redirecting LNG cargoes away from Asia, where the coronavirus was hobbling sales, and sending them instead to northwestern Europe. That quick fix didn’t last, as the pandemic soon engulfed Europe’s biggest economies and left Qatar struggling for places to park unsold cargoes.
The Persian Gulf state led by Emir Sheikh Tamim bin Hamad Al Thani has a key decision to make with far-reaching consequences. Cutting production of its main export would squeeze government revenue at a time when crude’s collapse is adding to pressure on LNG prices, some of which are linked to oil. An output cut might also enable Australia to strike a blow to Qatar’s national pride by snatching its crown as the world’s top exporter.
If the emirate opts to slash prices to secure sales, however, it might exacerbate the crash in gas that threatens margins even for low-cost producers. A free-for-all could even end up pushing prices below zero, as happened briefly last month in the U.S. oil market when crude flows overwhelmed capacity at the storage hub of Cushing, Oklahoma.
Hemmed in by weak demand and scarce storage, the world’s biggest exporter of liquefied natural gas may soon face a stark choice: curb output or ignite a battle for market share that has the potential -- just as in the oil market -- to turn gas prices negative.
Qatar began in February redirecting LNG cargoes away from Asia, where the coronavirus was hobbling sales, and sending them instead to northwestern Europe. That quick fix didn’t last, as the pandemic soon engulfed Europe’s biggest economies and left Qatar struggling for places to park unsold cargoes.
The Persian Gulf state led by Emir Sheikh Tamim bin Hamad Al Thani has a key decision to make with far-reaching consequences. Cutting production of its main export would squeeze government revenue at a time when crude’s collapse is adding to pressure on LNG prices, some of which are linked to oil. An output cut might also enable Australia to strike a blow to Qatar’s national pride by snatching its crown as the world’s top exporter.
If the emirate opts to slash prices to secure sales, however, it might exacerbate the crash in gas that threatens margins even for low-cost producers. A free-for-all could even end up pushing prices below zero, as happened briefly last month in the U.S. oil market when crude flows overwhelmed capacity at the storage hub of Cushing, Oklahoma.
#Saudi Aramco says acquisition of SABIC stake on track to close in second quarter - Reuters
Saudi Aramco says acquisition of SABIC stake on track to close in second quarter - Reuters:
Saudi Aramco (2222.SE) said on Tuesday its planned acquisition of a 70% equity stake in petrochemical maker SABIC (2010.SE) from the Public Investment Fund (PIF), the kingdom’s wealth fund, is on track to close in the second quarter.
The statement by the state oil giant was made in response to a Reuters story published on Sunday saying that Aramco is looking to restructure its deal for a controlling stake in SABIC after the target’s value dropped more than 40% following an oil price slump in the coronavirus pandemic, according to two sources.
“All necessary regulatory clearances have been obtained. An announcement will be made in due course,” Aramco said in a statement sent to Reuters.
Saudi Aramco (2222.SE) said on Tuesday its planned acquisition of a 70% equity stake in petrochemical maker SABIC (2010.SE) from the Public Investment Fund (PIF), the kingdom’s wealth fund, is on track to close in the second quarter.
The statement by the state oil giant was made in response to a Reuters story published on Sunday saying that Aramco is looking to restructure its deal for a controlling stake in SABIC after the target’s value dropped more than 40% following an oil price slump in the coronavirus pandemic, according to two sources.
“All necessary regulatory clearances have been obtained. An announcement will be made in due course,” Aramco said in a statement sent to Reuters.
#Saudi Aramco first-quarter net profit slides 25% as oil prices tumble - Reuters
Saudi Aramco first-quarter net profit slides 25% as oil prices tumble - Reuters:
Saudi Arabian state oil giant Aramco on Tuesday reported a 25% fall in first-quarter net profit, missing analyst estimates, but its quarterly dividend was in line with a plan for a $75 billion base payout to shareholders for the year.
Brent crude prices fell 65.6% in the first quarter, before OPEC+ producers agreed to cut oil supply by a record 9.7 million barrel per day starting from May to help shore up plunging prices and curb oversupply. [O/R] Net profit fell to 62.48 billion riyals ($16.64 billion) after zakat and tax for the quarter to March 31 from 83.29 billion a year earlier.
Analysts had expected a profit of $17.8 billion, according to the mean estimate from Egyptian investment bank EFG-Hermes, Saudi Arabia’s Al Rajhi Capital and Dubai-based Arqaam Capital.
Shares of Aramco were up 0.8% at 31.15 riyals at 0730 GMT, still trading below the IPO price of 32 riyals.
Saudi Arabian state oil giant Aramco on Tuesday reported a 25% fall in first-quarter net profit, missing analyst estimates, but its quarterly dividend was in line with a plan for a $75 billion base payout to shareholders for the year.
Brent crude prices fell 65.6% in the first quarter, before OPEC+ producers agreed to cut oil supply by a record 9.7 million barrel per day starting from May to help shore up plunging prices and curb oversupply. [O/R] Net profit fell to 62.48 billion riyals ($16.64 billion) after zakat and tax for the quarter to March 31 from 83.29 billion a year earlier.
Analysts had expected a profit of $17.8 billion, according to the mean estimate from Egyptian investment bank EFG-Hermes, Saudi Arabia’s Al Rajhi Capital and Dubai-based Arqaam Capital.
Shares of Aramco were up 0.8% at 31.15 riyals at 0730 GMT, still trading below the IPO price of 32 riyals.
Oil prices up after #Saudi pledge on cuts eases some glut fears - Reuters
Oil prices up after Saudi pledge on cuts eases some glut fears - Reuters:
Oil prices rose on Tuesday, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain a supply glut built up during the coronavirus crisis.
Brent crude LCOc1 advanced 38 cents, or 1.3%, to $30.01 at 0830 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 70 cents, or 2.9%, at $24.84.
Saudi Arabia said on Monday it would cut output by a further 1 million barrels per day (bpd) in June, slashing total production to 7.5 million bpd, or down nearly 40% from April.
The United Arab Emirates and Kuwait also committed to cut an extra 180,000 bpd in total, adding to reductions the producers agreed under a deal between OPEC, Russia and other nations, a group known as OPEC+.
Oil prices rose on Tuesday, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain a supply glut built up during the coronavirus crisis.
Brent crude LCOc1 advanced 38 cents, or 1.3%, to $30.01 at 0830 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 70 cents, or 2.9%, at $24.84.
Saudi Arabia said on Monday it would cut output by a further 1 million barrels per day (bpd) in June, slashing total production to 7.5 million bpd, or down nearly 40% from April.
The United Arab Emirates and Kuwait also committed to cut an extra 180,000 bpd in total, adding to reductions the producers agreed under a deal between OPEC, Russia and other nations, a group known as OPEC+.
MIDEAST STOCKS-Oil buoys #Saudi, Aramco's Q1 profit slides - Agricultural Commodities - Reuters
MIDEAST STOCKS-Oil buoys Saudi, Aramco's Q1 profit slides - Agricultural Commodities - Reuters:
Saudi Arabian stocks gained in early trade on Tuesday amid rising oil prices following the kingdom’s pledge to deepen an output cut, while other Middle Eastern bourses were little changed.
Brent crude futures advanced 1.6% to $30.09 by 0717 GMT, buoyed by an unexpected Saudi commitment to deepen production cuts in June to help drain the global glut that has built up as the coronavirus crushed fuel demand.
Saudi Arabia’s benchmark index rose 0.8%, with petrochemical firm Saudi Basic Industries gaining 2.3%, while oil giant Saudi Aramco was up 0.5% despite reporting a drop in first-quarter profit.
Aramco on Tuesday reported a 25% fall in first-quarter net profit, below analyst estimates, which it blamed on lower crude oil prices as the pandemic slashed demand.
Saudi Arabian stocks gained in early trade on Tuesday amid rising oil prices following the kingdom’s pledge to deepen an output cut, while other Middle Eastern bourses were little changed.
Brent crude futures advanced 1.6% to $30.09 by 0717 GMT, buoyed by an unexpected Saudi commitment to deepen production cuts in June to help drain the global glut that has built up as the coronavirus crushed fuel demand.
Saudi Arabia’s benchmark index rose 0.8%, with petrochemical firm Saudi Basic Industries gaining 2.3%, while oil giant Saudi Aramco was up 0.5% despite reporting a drop in first-quarter profit.
Aramco on Tuesday reported a 25% fall in first-quarter net profit, below analyst estimates, which it blamed on lower crude oil prices as the pandemic slashed demand.
Oil Rebounds as Deeper Output Cuts Seen Easing Storage Pressure - Bloomberg
Oil Rebounds as Deeper Output Cuts Seen Easing Storage Pressure - Bloomberg:
Oil firmed in Asia as additional output cuts announced by Saudi Arabia and others were seen easing some of the pressure on storage sites that are nearing capacity.
Futures in New York rose 2.1%, erasing most of Monday’s drop. Saudi Arabia announced a surprise move to slash its output by another 1 million barrels a day on top of what it already agreed with OPEC allies, while the United Arab Emirates and Kuwait also announced additional cuts for June.
While the extra curbs would not be enough to re-balance the market, they would at least relieve some of the pressure on bulging storage infrastructure, said Paola Rodriguez Masiu, an oil markets analyst at Rystad Energy.
“We will now probably avoid global storage tank tops if demand ramps up as expected and new lock-down measures are not imposed,” she said.
Oil firmed in Asia as additional output cuts announced by Saudi Arabia and others were seen easing some of the pressure on storage sites that are nearing capacity.
Futures in New York rose 2.1%, erasing most of Monday’s drop. Saudi Arabia announced a surprise move to slash its output by another 1 million barrels a day on top of what it already agreed with OPEC allies, while the United Arab Emirates and Kuwait also announced additional cuts for June.
While the extra curbs would not be enough to re-balance the market, they would at least relieve some of the pressure on bulging storage infrastructure, said Paola Rodriguez Masiu, an oil markets analyst at Rystad Energy.
“We will now probably avoid global storage tank tops if demand ramps up as expected and new lock-down measures are not imposed,” she said.
#Dubai Watchdog Fines Al Masah Capital, Bans Firm’s Founder Dash - Bloomberg
Dubai Watchdog Fines Al Masah Capital, Bans Firm’s Founder Dash - Bloomberg:
Dubai’s financial regulator fined private-equity firm Al Masah Capital Ltd. and barred its founder from working in the emirate’s financial center for allegedly deceiving investors about fees.
The Dubai Financial Services Authority, or DFSA, imposed a combined $5.03 million penalty on Al Masah Capital and Al Masah Capital Management Ltd. and three Al Masah executives, including the firm’s founder Shailesh Dash, the regulator said in a statement Monday.
Nrupaditya Singhdeo, the firm’s chief financial officer, and Don Lim Jung Chiat were also named in the charges. Dash didn’t immediately respond to a request for comment, while Sinhdeo and Lim couldn’t be reached. It wasn’t clear whether the three individuals are still employed by Al Masah Capital.
The two firms and three individuals are disputing the DFSA’s findings at a tribunal, which means the watchdog’s decisions are provisional. The DFSA accused them of numerous breaches between 2010 and 2016, including carrying out unauthorized services and making misleading or deceptive statements about fees to clients.
Dubai’s financial regulator fined private-equity firm Al Masah Capital Ltd. and barred its founder from working in the emirate’s financial center for allegedly deceiving investors about fees.
The Dubai Financial Services Authority, or DFSA, imposed a combined $5.03 million penalty on Al Masah Capital and Al Masah Capital Management Ltd. and three Al Masah executives, including the firm’s founder Shailesh Dash, the regulator said in a statement Monday.
Nrupaditya Singhdeo, the firm’s chief financial officer, and Don Lim Jung Chiat were also named in the charges. Dash didn’t immediately respond to a request for comment, while Sinhdeo and Lim couldn’t be reached. It wasn’t clear whether the three individuals are still employed by Al Masah Capital.
The two firms and three individuals are disputing the DFSA’s findings at a tribunal, which means the watchdog’s decisions are provisional. The DFSA accused them of numerous breaches between 2010 and 2016, including carrying out unauthorized services and making misleading or deceptive statements about fees to clients.
The Radical Shift That May Worsen #SaudiArabia’s Economic Crisis - Bloomberg
The Radical Shift That May Worsen Saudi Arabia’s Economic Crisis - Bloomberg:
Saudi Arabia’s economic downturn is about to worsen. Already reeling from the slump in oil prices and lockdowns to halt the spread of the coronavirus, the kingdom has now increased taxes and cut spending.
While the government says overall expenditure will remain broadly in-line with the 1 trillion riyals ($266 billion) outlined in the 2020 budget, tripling value-added tax and cutting bureaucrats’ allowances will damage consumption and hurt the private sector that is key to Crown Prince Mohammed Bin Salman’s vision to diversify the economy away from oil.
And while raising VAT should help rein in a widening budget deficit, it will make the country less competitive than other Gulf states when it’s trying to attract more foreign investment.
“These are radical measures that underscore the gravity of the challenges facing the kingdom,” said James Reeve, group chief economist at Samba Financial Group. “The measures send a message to the markets that the authorities are prepared to make tough choices to keep the deficit within bounds. The downside is that this is a further blow to the already stricken retail sector.”
Saudi Arabia’s economic downturn is about to worsen. Already reeling from the slump in oil prices and lockdowns to halt the spread of the coronavirus, the kingdom has now increased taxes and cut spending.
While the government says overall expenditure will remain broadly in-line with the 1 trillion riyals ($266 billion) outlined in the 2020 budget, tripling value-added tax and cutting bureaucrats’ allowances will damage consumption and hurt the private sector that is key to Crown Prince Mohammed Bin Salman’s vision to diversify the economy away from oil.
And while raising VAT should help rein in a widening budget deficit, it will make the country less competitive than other Gulf states when it’s trying to attract more foreign investment.
“These are radical measures that underscore the gravity of the challenges facing the kingdom,” said James Reeve, group chief economist at Samba Financial Group. “The measures send a message to the markets that the authorities are prepared to make tough choices to keep the deficit within bounds. The downside is that this is a further blow to the already stricken retail sector.”
#Kuwait's Equate Petrochemical to issue bonds as soon as this week -sources - Reuters
Kuwait's Equate Petrochemical to issue bonds as soon as this week -sources - Reuters:
Kuwait’s Equate Petrochemical Co plans to issue U.S. dollar bonds and sukuk as early as Tuesday, four sources familiar with the matter said, reviving a debt issue that it postponed in late March due to volatile markets.
Two of the sources said the issue would consist of five-year sukuk and 10-year conventional bonds in a benchmark issue, of at least $500 million.
In late March, Equate Petrochemical, a joint venture between U.S.-based Dow Chemical Company and a unit of Kuwait Petroleum Corporation, had planned to issue 10- and 30-year dollar-denominated bonds and five-year sukuk. It put off those plans after failing to secure the pricing it sought following huge volatility in the market, sources have said.
Kuwait’s Equate Petrochemical Co plans to issue U.S. dollar bonds and sukuk as early as Tuesday, four sources familiar with the matter said, reviving a debt issue that it postponed in late March due to volatile markets.
Two of the sources said the issue would consist of five-year sukuk and 10-year conventional bonds in a benchmark issue, of at least $500 million.
In late March, Equate Petrochemical, a joint venture between U.S.-based Dow Chemical Company and a unit of Kuwait Petroleum Corporation, had planned to issue 10- and 30-year dollar-denominated bonds and five-year sukuk. It put off those plans after failing to secure the pricing it sought following huge volatility in the market, sources have said.
Airlines and Covid-19: #Qatar Air Says No Full Flights Before 2023 - Bloomberg
Airlines and Covid-19: Qatar Air Says No Full Flights Before 2023 - Bloomberg:
Qatar Airways said it won’t be able to operate a full network of flights until 2023 “unless a miracle” happens within the next year, as the aviation market begins a long, slow recovery from the Covid-19 crisis.
The travel industry needs “around two to three years to get back to 2019 levels,” Qatar Airways Chief Executive Officer Akbar Al Baker said in a phone interview on Monday. The Doha-based company has reduced headcount to help reduce operating costs while planes remain grounded, he said.
Qatar Airways said it won’t be able to operate a full network of flights until 2023 “unless a miracle” happens within the next year, as the aviation market begins a long, slow recovery from the Covid-19 crisis.
The travel industry needs “around two to three years to get back to 2019 levels,” Qatar Airways Chief Executive Officer Akbar Al Baker said in a phone interview on Monday. The Doha-based company has reduced headcount to help reduce operating costs while planes remain grounded, he said.
- Qatar Airways plans to rehire employees made redundant once countries start to lift travel bans imposed to contain the coronavirus
- Social distancing will be factored in when the airline restarts operations in a way that complies with local and international regulations
- Leaving an empty seat between travelers may be part of a long-term solution, though this will be harder to enforce with families
- Qatar Airways will give 100,000 round-trip tickets to front-line medical workers to thank them for their work looking after patients during the coronavirus pandemic
Middle East News: #Oman (OMR USD) Bailout Likely in Crisis: S&P - Bloomberg
Middle East News: Oman (OMR USD) Bailout Likely in Crisis: S&P - Bloomberg:
S&P Global Ratings said members of the Gulf Cooperation Council would likely come to Oman’s rescue if the sultanate experiences “significant external liquidity pressures,” especially in a situation that threatens its currency peg to the dollar.
“In the event Oman’s external reserves deteriorate significantly, we expect that financial support from neighboring GCC countries would be forthcoming,” S&P analysts including Zahabia Gupta said in a report Monday. “If one country’s peg were to fall, the contagion effects could be severe for the rest of the GCC.”
S&P Global Ratings said members of the Gulf Cooperation Council would likely come to Oman’s rescue if the sultanate experiences “significant external liquidity pressures,” especially in a situation that threatens its currency peg to the dollar.
“In the event Oman’s external reserves deteriorate significantly, we expect that financial support from neighboring GCC countries would be forthcoming,” S&P analysts including Zahabia Gupta said in a report Monday. “If one country’s peg were to fall, the contagion effects could be severe for the rest of the GCC.”
- S&P’s baseline scenario is that the government will meet its funding needs -- totaling almost $50 billion over 2020-2023 -- through debt issuance abroad and at home, drawdowns of domestic and external liquid assets, and other financial transactions
- Oman’s fiscal deficit estimated at 17.5% of gross domestic product this year, up from 9.7% in 2019
- The economy is projected to shrink 4% in 2020 before accelerating next year
- If market access doesn’t improve for the rest of the year, the government is expected to use the Petroleum Reserve Fund to repay its $1.2 billion of external debt redemptions
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