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| The end of the holy month of Ramadan will be marked by Eid-al-Fitr this month (Photo: Shutterstock) Copyright: Other 3rd Party |
Friday, 22 May 2020
Eid Mubarak
#SaudiArabia Economic Problems: Gulf News, Payment Programs - Bloomberg
Saudi Arabia Economic Problems: Gulf News, Payment Programs - Bloomberg:
Saudi Arabia suspended payments by two of its mortgage-support programs as it looks to cut costs with the coronavirus pandemic and lower oil prices taking a major toll on the economy.
Authorities have also tripled the kingdom’s value-added tax and cut a cost-of-living allowance for government workers, among other measures.
An interest-free loan program for military personnel which covers 20% of a property, or up to 140,000 Saudi riyals ($37,000), will be suspended from May 31, the Housing Ministry said on its website. Another plan, which provides civilians with assistance up to 95,000 riyals, or 10% of a property, has also been paused.
All applications approved before May 31 will stand, according to the ministry. The government’s primary mortgage-support mechanism -- which offers assistance up to 500,000 riyals -- will remain active.
Saudi Arabia suspended payments by two of its mortgage-support programs as it looks to cut costs with the coronavirus pandemic and lower oil prices taking a major toll on the economy.
Authorities have also tripled the kingdom’s value-added tax and cut a cost-of-living allowance for government workers, among other measures.
An interest-free loan program for military personnel which covers 20% of a property, or up to 140,000 Saudi riyals ($37,000), will be suspended from May 31, the Housing Ministry said on its website. Another plan, which provides civilians with assistance up to 95,000 riyals, or 10% of a property, has also been paused.
All applications approved before May 31 will stand, according to the ministry. The government’s primary mortgage-support mechanism -- which offers assistance up to 500,000 riyals -- will remain active.
Oxford Economics Sees Exodus of Expat Workers From Across GCC - Bloomberg
Oxford Economics Sees Exodus of Expat Workers From Across GCC - Bloomberg:
Population in some of the six-nation Gulf Cooperation Council countries may drop as much as 10% as the impact of the coronavirus forces their largely foreign workers to leave the oil-rich nations, according to Oxford Economics.
“The dependence of the GCC on expat workers and large swathes of job losses as the lockdowns bite in key sectors may result in significant falls in population, which could have longer-lasting implications,” Scott Livermore, chief economist at Oxford Economics Middle East, wrote in a report.
The Gulf Cooperation Council countries are: Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain and Oman.
Population in some of the six-nation Gulf Cooperation Council countries may drop as much as 10% as the impact of the coronavirus forces their largely foreign workers to leave the oil-rich nations, according to Oxford Economics.
“The dependence of the GCC on expat workers and large swathes of job losses as the lockdowns bite in key sectors may result in significant falls in population, which could have longer-lasting implications,” Scott Livermore, chief economist at Oxford Economics Middle East, wrote in a report.
The Gulf Cooperation Council countries are: Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain and Oman.
The report also said:
- “The GCC is in recession as lockdowns to mitigate the spread of Covid-19 and the ramifications of low oil prices hit the non-oil economies. As a result, employment across the GCC could fall by around 13%, with peak-to-trough job losses of some 900,000 in the UAE and 1.7m in Saudi Arabia”
- “Dependence on expat workers in vulnerable sectors means the burden of job losses will fall on the expat population. Combined with visas depending on employment and lack of a social safety net, an expat exodus is likely as travel restrictions are eased. This could result in the population declining by between 4% (in Saudi Arabia and Oman) and around 10% (in the UAE and Qatar).
- “While an expat exodus may mean that the GCC ‘exports’ some of the impact of recession, it will also have some adverse consequences on key sectors, such as possible labor shortages as the hospitality sector recovers, an additional drag on property markets and potential price pressures in certain quarters.”
Oil falls on China-U.S. tensions, energy demand doubts - Reuters
Oil falls on China-U.S. tensions, energy demand doubts - Reuters:
Oil prices tumbled about 2% on Friday on rising U.S.-China tensions and doubts about how quickly fuel demand would recover from the coronavirus crisis.
Fuel demand plummeted in recent months as the pandemic caused governments to impose restrictions on movement and businesses closed their doors. Oil has rallied in recent days as activity started to resume.
But prices dropped after China said on Friday it would not publish an annual growth target for the first time. Beijing also pledged more government spending as the pandemic kept hammering the economy.
“The coronavirus has nullified a decade of global oil demand growth and the recovery will be slow,” said Stephen Brennock of broker PVM.
Brent crude futures fell 93 cents, or 2.6%, to settle at $35.13 a barrel. U.S. West Texas Intermediate (WTI) crude ended 67 cents, or 2%, lower at $33.25 a barrel.
Oil prices tumbled about 2% on Friday on rising U.S.-China tensions and doubts about how quickly fuel demand would recover from the coronavirus crisis.
Fuel demand plummeted in recent months as the pandemic caused governments to impose restrictions on movement and businesses closed their doors. Oil has rallied in recent days as activity started to resume.
But prices dropped after China said on Friday it would not publish an annual growth target for the first time. Beijing also pledged more government spending as the pandemic kept hammering the economy.
“The coronavirus has nullified a decade of global oil demand growth and the recovery will be slow,” said Stephen Brennock of broker PVM.
Brent crude futures fell 93 cents, or 2.6%, to settle at $35.13 a barrel. U.S. West Texas Intermediate (WTI) crude ended 67 cents, or 2%, lower at $33.25 a barrel.
#Qatar, Middle East News: LNG Expansion Plans Remain in Place - Bloomberg
Qatar, Middle East News: LNG Expansion Plans Remain in Place - Bloomberg:
The world’s biggest liquefied natural gas producer plans to reduce its spending by about 30%, but cuts won’t affect Qatar Petroleum’s current production or expansion plans, said Saad Al-Kaabi.
“All the major capital projects are moving ahead,” said Al-Kaabi, the company’s chief executive officer and the country’s energy minister, in an online briefing Thursday. QP won’t cut capital expenditure in projects “that affect production or future developments,” only those that were “good to have” but not essential, he said.
QP told its employees it would finalize plans to cut its workforce and investments after the Eid-al-Fitr holiday starting in the next few days. Al-Kaabi declined to say how many jobs would be cut.
Oil and gas companies globally are reducing spending in response to low energy prices. Prices at European and U.S. gas hubs have crashed to below $1.50 per MMBtu from almost $12 at their peak last year. The Japan-Korea Marker, a benchmark for LNG delivered to northern Asia, is trading near $2 per MMBtu.
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The port of Ras Laffan, north of Doha, Qatar.
Source:: Copernicus Sentinel 2017/ Orbital Horizon/Gallo Images/Getty Images
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The world’s biggest liquefied natural gas producer plans to reduce its spending by about 30%, but cuts won’t affect Qatar Petroleum’s current production or expansion plans, said Saad Al-Kaabi.
“All the major capital projects are moving ahead,” said Al-Kaabi, the company’s chief executive officer and the country’s energy minister, in an online briefing Thursday. QP won’t cut capital expenditure in projects “that affect production or future developments,” only those that were “good to have” but not essential, he said.
QP told its employees it would finalize plans to cut its workforce and investments after the Eid-al-Fitr holiday starting in the next few days. Al-Kaabi declined to say how many jobs would be cut.
Oil and gas companies globally are reducing spending in response to low energy prices. Prices at European and U.S. gas hubs have crashed to below $1.50 per MMBtu from almost $12 at their peak last year. The Japan-Korea Marker, a benchmark for LNG delivered to northern Asia, is trading near $2 per MMBtu.
China Toppled by Middle East as Emerging Dollar Bond Leader - Bloomberg
China Toppled by Middle East as Emerging Dollar Bond Leader - Bloomberg:
Chinese borrowers are rising the rankings for emerging-market dollar debt sales again after slipping from the top spot for the first time since 2016.
They have sold more than $5 billion in dollar notes in May, driven by corporate offerings from the likes of PC maker Lenovo Group Ltd. and Chinese state-owned oil titan Sinopec. That trails only issuance out of the United Arab Emirates, with $7.5 billion this month, boosted by a $3 billion deal from Abu Dhabi’s government earlier this week, data compiled by Bloomberg show.
Middle East nations overtook China as the biggest sellers of dollar debt in the emerging markets in April, when Qatar claimed top spot that month with about $11 billion of sales compared with $4.6 billion from China. Still, Chinese borrowers remain the biggest sellers of dollar notes for the year as a whole, raising some $63 billion.
Chinese borrowers are rising the rankings for emerging-market dollar debt sales again after slipping from the top spot for the first time since 2016.
They have sold more than $5 billion in dollar notes in May, driven by corporate offerings from the likes of PC maker Lenovo Group Ltd. and Chinese state-owned oil titan Sinopec. That trails only issuance out of the United Arab Emirates, with $7.5 billion this month, boosted by a $3 billion deal from Abu Dhabi’s government earlier this week, data compiled by Bloomberg show.
Middle East nations overtook China as the biggest sellers of dollar debt in the emerging markets in April, when Qatar claimed top spot that month with about $11 billion of sales compared with $4.6 billion from China. Still, Chinese borrowers remain the biggest sellers of dollar notes for the year as a whole, raising some $63 billion.
Exclusive: Etihad bondholders put airline on notice with debt revamp - sources - Reuters
Exclusive: Etihad bondholders put airline on notice with debt revamp - sources - Reuters:
Owners of $1.2 billion in debt issued by Etihad and other airlines it partly owned have given the struggling Abu Dhabi carrier an ultimatum to agree to a restructuring or potentially face legal action, two sources close to the situation said.
The move is the latest turn in the unravelling of Etihad’s strategy to embark on global partnerships with airlines, the most high profile of which have since gone bankrupt.
A steering committee of debtholders, comprising largely local as well as international investment funds, submitted a proposal to Etihad about a month ago asking the carrier to agree to restructure the two bonds, due in September 2020 and June 2021, but have yet to receive a response, the sources said.
The proposal, which has not previously been reported, involves a maturity extension of the debt by up to three years but would require Etihad or its owner, the oil rich Abu Dhabi government, to guarantee the repayment of the underlying loans that were made to airlines partly owned by Etihad such as Air Serbia and Air Seychelles.
Owners of $1.2 billion in debt issued by Etihad and other airlines it partly owned have given the struggling Abu Dhabi carrier an ultimatum to agree to a restructuring or potentially face legal action, two sources close to the situation said.
The move is the latest turn in the unravelling of Etihad’s strategy to embark on global partnerships with airlines, the most high profile of which have since gone bankrupt.
A steering committee of debtholders, comprising largely local as well as international investment funds, submitted a proposal to Etihad about a month ago asking the carrier to agree to restructure the two bonds, due in September 2020 and June 2021, but have yet to receive a response, the sources said.
The proposal, which has not previously been reported, involves a maturity extension of the debt by up to three years but would require Etihad or its owner, the oil rich Abu Dhabi government, to guarantee the repayment of the underlying loans that were made to airlines partly owned by Etihad such as Air Serbia and Air Seychelles.
Oil drops over 5% on China-U.S. tensions, demand doubts - Reuters
Oil drops over 5% on China-U.S. tensions, demand doubts - Reuters:
Oil fell over 5% on Friday towards $34 a barrel as tensions rose between the United States and China, and doubts grew about the pace of demand recovery from the coronavirus crisis.
China is set to impose new national security legislation on Hong Kong, drawing a warning from U.S. President Donald Trump. Beijing also failed to set an economic growth target as the pandemic hammers the word’s second-largest economy.
Brent crude dropped $1.96, or 5.4%, to $34.10 a barrel at 0833 GMT, after falling to as low as $33.54. U.S. West Texas Intermediate (WTI) crude declined by $2.41, or 7.1%, to $31.51.
“Investors are once again having to contend with an intensifying war of words between the U.S. and China,” said Stephen Brennock of oil broker PVM.
Oil fell over 5% on Friday towards $34 a barrel as tensions rose between the United States and China, and doubts grew about the pace of demand recovery from the coronavirus crisis.
China is set to impose new national security legislation on Hong Kong, drawing a warning from U.S. President Donald Trump. Beijing also failed to set an economic growth target as the pandemic hammers the word’s second-largest economy.
Brent crude dropped $1.96, or 5.4%, to $34.10 a barrel at 0833 GMT, after falling to as low as $33.54. U.S. West Texas Intermediate (WTI) crude declined by $2.41, or 7.1%, to $31.51.
“Investors are once again having to contend with an intensifying war of words between the U.S. and China,” said Stephen Brennock of oil broker PVM.