Middle East News: Qatar National Bank Boosts Bad Loan Reserve - Bloomberg:
Qatar National Bank posted a 26% drop in quarterly profit after raising loan-loss provisions, a sign of things to come from Middle East companies during the current earnings season.
The region’s biggest lender raised impairments to 1.5 billion riyals ($410 million) in the second quarter compared with 606 million riyals a year ago. Provisions were increased to “protect the group from any adverse shocks in the loan book,” affecting profitability, it said.
Banks in the six-member Gulf Cooperation Council face an “earnings shock” from the plunge in oil prices and the coronavirus pandemic, S&P Global Ratings said in April. The crisis is also prompting a new wave of consolidation talk among banks in the Middle East, including two from Qatar.
Qatar National Bank said in response to current economic conditions it renewed operational rationalization, helping it to improve cost-to-income ratio to 24.5% from 25.6%.
Sunday 12 July 2020
MIDEAST STOCKS-Most Gulf bourses end higher as DAMAC lifts #Dubai - Agricultural Commodities - Reuters
MIDEAST STOCKS-Most Gulf bourses end higher as DAMAC lifts Dubai - Agricultural Commodities - Reuters:
Most major Gulf markets closed higher on
Sunday, as investor focus turned to corporate earnings starting
this week, while a surge in DAMAC Properties helped the Dubai
bourse.
Dubai's main share index ended 0.2% up, with DAMAC
Properties surging 11.6%, its biggest intraday gain
since March 25.
On Thursday, Maple Invest said that on behalf of DAMAC
founder and chairman Hussain Sajwani and his group, it was
exploring the possibility of his buying out minority
shareholders and taking the company private.
The firm, which is considering several investments in the
United Kingdom, Europe and the United States, has made no offer
or agreement to date.
However, the index's gains were limited by losses at Emaar
Properties, which retreated 1.1%.
On Friday, S&P Global downgraded the blue-chip developer to
a BB+ "junk" rating from an investment grade BBB- score.
Most major Gulf markets closed higher on
Sunday, as investor focus turned to corporate earnings starting
this week, while a surge in DAMAC Properties helped the Dubai
bourse.
Dubai's main share index ended 0.2% up, with DAMAC
Properties surging 11.6%, its biggest intraday gain
since March 25.
On Thursday, Maple Invest said that on behalf of DAMAC
founder and chairman Hussain Sajwani and his group, it was
exploring the possibility of his buying out minority
shareholders and taking the company private.
The firm, which is considering several investments in the
United Kingdom, Europe and the United States, has made no offer
or agreement to date.
However, the index's gains were limited by losses at Emaar
Properties, which retreated 1.1%.
On Friday, S&P Global downgraded the blue-chip developer to
a BB+ "junk" rating from an investment grade BBB- score.
#Kuwait asks parliament to approve debt law to help cover deficit: lawmaker - Reuters
Kuwait asks parliament to approve debt law to help cover deficit: lawmaker - Reuters:
Kuwait’s government formally submitted a public debt law to parliament on Sunday which would allow it to borrow 20 billion dinars ($65 billion) over 30 years, including 8 billion dinars to help finance the current budget deficit, a legislator said.
The government and parliament have long been at odds over the law which would allow Kuwait to tap international debt, but the issue has gained urgency in recent months as the oil-exporting nation has been hit by low crude prices and the COVID-19 pandemic.
Safaa al-Hashem, head of parliament’s financial and economic committee, announced details of the request while reiterating criticism of the government for not outlining investment plans and failing to diversify state revenues away from oil.
“The country is drowning in economic problems that need to be addressed,” she said in parliament after a meeting with officials from the finance ministry and Kuwait Investment Authority (KIA), which manages two sovereign wealth funds.
Kuwait’s government formally submitted a public debt law to parliament on Sunday which would allow it to borrow 20 billion dinars ($65 billion) over 30 years, including 8 billion dinars to help finance the current budget deficit, a legislator said.
The government and parliament have long been at odds over the law which would allow Kuwait to tap international debt, but the issue has gained urgency in recent months as the oil-exporting nation has been hit by low crude prices and the COVID-19 pandemic.
Safaa al-Hashem, head of parliament’s financial and economic committee, announced details of the request while reiterating criticism of the government for not outlining investment plans and failing to diversify state revenues away from oil.
“The country is drowning in economic problems that need to be addressed,” she said in parliament after a meeting with officials from the finance ministry and Kuwait Investment Authority (KIA), which manages two sovereign wealth funds.
Libya's NOC accuses #UAE of being behind oil blockade - Reuters
Libya's NOC accuses UAE of being behind oil blockade - Reuters:
Libya’s National Oil Corp (NOC) on Sunday accused the United Arab Emirates of instructing eastern forces in Libya’s civil war to reimpose a blockade of oil exports after the departure of a first tanker in six months.
The UAE, along with Russia and Egypt, supports the eastern-based Libyan National Army (LNA) of Khalifa Haftar, which on Saturday said the blockade would continue despite it having let a tanker load with oil from storage.
“NOC has been informed that the instructions to shut down production were given to (the LNA) by the United Arab Emirates,” it said in a statement, resuming force majeure on all oil exports.
There was no immediate comment on NOC’s accusation from either the LNA or the UAE.
Libya’s National Oil Corp (NOC) on Sunday accused the United Arab Emirates of instructing eastern forces in Libya’s civil war to reimpose a blockade of oil exports after the departure of a first tanker in six months.
The UAE, along with Russia and Egypt, supports the eastern-based Libyan National Army (LNA) of Khalifa Haftar, which on Saturday said the blockade would continue despite it having let a tanker load with oil from storage.
“NOC has been informed that the instructions to shut down production were given to (the LNA) by the United Arab Emirates,” it said in a statement, resuming force majeure on all oil exports.
There was no immediate comment on NOC’s accusation from either the LNA or the UAE.
UPDATE 1-QNB's Q2 profit falls after sharp rise in loan provisions - Reuters
UPDATE 1-QNB's Q2 profit falls after sharp rise in loan provisions - Reuters:
#Qatar National Bank’s second-quarter profit fell after it booked sharply higher loan loss provisions due to the global economic conditions, the Gulf’s biggest lender said on Sunday.
Fitch Ratings said last month that it expects Qatar’s non-hydrocarbon sector to contract by 5% this year and gross domestic product to shrink 3.8%.
QNB posted 2.84 billion riyals ($779.90 million) in net profit in the second quarter, down from 3.83 billion riyals a year earlier.
The second-quarter figure was lower than EFG Hermes’ forecast of 3.316 billion riyals for QNB, which operates in more than 31 countries, including large operations in Turkey and Egypt.
The bank increased its loan loss provisions in the second quarter to 1.5 billion riyals from 650.5 million a year earlier.
#Qatar National Bank’s second-quarter profit fell after it booked sharply higher loan loss provisions due to the global economic conditions, the Gulf’s biggest lender said on Sunday.
Fitch Ratings said last month that it expects Qatar’s non-hydrocarbon sector to contract by 5% this year and gross domestic product to shrink 3.8%.
QNB posted 2.84 billion riyals ($779.90 million) in net profit in the second quarter, down from 3.83 billion riyals a year earlier.
The second-quarter figure was lower than EFG Hermes’ forecast of 3.316 billion riyals for QNB, which operates in more than 31 countries, including large operations in Turkey and Egypt.
The bank increased its loan loss provisions in the second quarter to 1.5 billion riyals from 650.5 million a year earlier.
#UAE real estate sector braced for tough recovery in wake of Covid-19 - Arabianbusiness
UAE real estate sector braced for tough recovery in wake of Covid-19 - Arabianbusiness:
The UAE’s real estate sector faces unprecedented uncertainty amid the continued fallout from the Covid-19 pandemic, according to industry experts.
Statistics from real estate consultancy JLL reveal more than 12,000 units were delivered in Q1, far below the previously expected 83,000 units.
“In the UAE, particularly in Dubai, the market was already in the late downturn stage of the cycle for all asset classes,” said Dana Salbak, head of MENA research at JLL. “Even before Covid-19, rents were bottoming out for residential, office, retail, and hospitality segments. Particularly, for the residential sector we assumed that we are close to the bottom.”
“Our assumptions were that the market was expected to stabilise in the first half of 2020, ahead of Expo 2020 Dubai, purely on the sentiments, traction, and the movement whether commercially or from a retail and hospitality perspective,” she added.
The UAE’s real estate sector faces unprecedented uncertainty amid the continued fallout from the Covid-19 pandemic, according to industry experts.
Statistics from real estate consultancy JLL reveal more than 12,000 units were delivered in Q1, far below the previously expected 83,000 units.
“In the UAE, particularly in Dubai, the market was already in the late downturn stage of the cycle for all asset classes,” said Dana Salbak, head of MENA research at JLL. “Even before Covid-19, rents were bottoming out for residential, office, retail, and hospitality segments. Particularly, for the residential sector we assumed that we are close to the bottom.”
“Our assumptions were that the market was expected to stabilise in the first half of 2020, ahead of Expo 2020 Dubai, purely on the sentiments, traction, and the movement whether commercially or from a retail and hospitality perspective,” she added.
NMC's #UAE entity weighing #AbuDhabi option for restructuring: sources - Reuters
NMC's UAE entity weighing Abu Dhabi option for restructuring: sources - Reuters:
Troubled hospital operator NMC Health’s entity in the United Arab Emirates (UAE), NMC Healthcare LLC, is considering applying for restructuring and insolvency proceedings locally, two sources familiar with the matter said.
The move comes three months after NMC Health Plc (NMMCF.PK), the London-listed holding company for the hospital group, went into administration in April after months of turmoil over its finances.
The two sources told Reuters that NMC Healthcare LLC was looking at options to file under the jurisdiction of Abu Dhabi Global Markets (ADGM), which has promulgated its own laws relating to insolvency and corporate restructuring.
Such a move would help create a framework for recognition of debt claims while the administrators of NMC Health Plc finalise the scheme of arrangement with creditors, one of the sources said.
Troubled hospital operator NMC Health’s entity in the United Arab Emirates (UAE), NMC Healthcare LLC, is considering applying for restructuring and insolvency proceedings locally, two sources familiar with the matter said.
The move comes three months after NMC Health Plc (NMMCF.PK), the London-listed holding company for the hospital group, went into administration in April after months of turmoil over its finances.
The two sources told Reuters that NMC Healthcare LLC was looking at options to file under the jurisdiction of Abu Dhabi Global Markets (ADGM), which has promulgated its own laws relating to insolvency and corporate restructuring.
Such a move would help create a framework for recognition of debt claims while the administrators of NMC Health Plc finalise the scheme of arrangement with creditors, one of the sources said.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
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.
#SaudiArabia’s mortgage lender Amlak to start trading on Tadawul from Monday - The National
Saudi Arabia’s mortgage lender Amlak to start trading on Tadawul from Monday - The National:
Shares in Saudi Arabia’s mortgage lender Amlak International for Real Estate Finance will start trading on the Tadawul stock exchange on Monday as the company completes its IPO process.
The company is floating 27.18 million shares, or 30 per cent of its total, with an indicative price range set at 15-17 Saudi riyals (Dh14.7-Dh16.6) per share. Proceeds of the offer are being used to repay selling shareholders.
The offer, the first major listing to take place on Tadawul since the coronavirus outbreak, has been significantly oversubscribed, with a total coverage ratio of 7.67x, according to NCB Capital, which is advising on the listing. Demand from institutional investors, to whom 90 per cent of the shares have been allocated, was covered 4.98x, while the retail element was oversubscribed 26.9x.
“We are pleased by the extremely healthy response to our IPO, which is evidence of the long-term view that the investment community has taken towards the Saudi economy and our company," Abdullah Al Sudairy, chief executive of Amlak International, said last week following the closing of its offer to retail investors.
Shares in Saudi Arabia’s mortgage lender Amlak International for Real Estate Finance will start trading on the Tadawul stock exchange on Monday as the company completes its IPO process.
The company is floating 27.18 million shares, or 30 per cent of its total, with an indicative price range set at 15-17 Saudi riyals (Dh14.7-Dh16.6) per share. Proceeds of the offer are being used to repay selling shareholders.
The offer, the first major listing to take place on Tadawul since the coronavirus outbreak, has been significantly oversubscribed, with a total coverage ratio of 7.67x, according to NCB Capital, which is advising on the listing. Demand from institutional investors, to whom 90 per cent of the shares have been allocated, was covered 4.98x, while the retail element was oversubscribed 26.9x.
“We are pleased by the extremely healthy response to our IPO, which is evidence of the long-term view that the investment community has taken towards the Saudi economy and our company," Abdullah Al Sudairy, chief executive of Amlak International, said last week following the closing of its offer to retail investors.
Middle Eastern Markets Climb With Oil, Stimulus Eyed: Inside EM - Bloomberg
Middle Eastern Markets Climb With Oil, Stimulus Eyed: Inside EM - Bloomberg:
Stocks across the Middle East advanced, taking their cue from Friday’s rally in oil prices and amid further signs that governments are ready to do more to stimulate their virus-battered economies.
Israel’s TA-35 rose as much as 1.1% in Tel Aviv, heading for the first increase in four sessions. The government said after markets closed Thursday that unemployment benefits will remain in place through June 2021 while the jobless rate stays above 10%, as part of a relief program worth about 90 billion shekels ($26 billion).
In Dubai, the main index climbed as much as 0.5% after a new set of economic incentives worth 1.5 billion dirhams ($408.4 million) focused on reinforcing liquidity in companies and reducing the cost of conducting business. Still, S&P Global Ratings expects the city’s gross domestic product to shrink 11% this year amid subdued demand and low oil prices.
Some of Dubai’s new measures are likely to “be made permanent, because the target is to reduce the overall cost of doing business,” said Jaap Meijer, the head of equity research at Arqaam Capital in the emirate. “Even before pre-covid crisis, Dubai had realized the cost of doing business had become too high.”
Stocks across the Middle East advanced, taking their cue from Friday’s rally in oil prices and amid further signs that governments are ready to do more to stimulate their virus-battered economies.
Israel’s TA-35 rose as much as 1.1% in Tel Aviv, heading for the first increase in four sessions. The government said after markets closed Thursday that unemployment benefits will remain in place through June 2021 while the jobless rate stays above 10%, as part of a relief program worth about 90 billion shekels ($26 billion).
In Dubai, the main index climbed as much as 0.5% after a new set of economic incentives worth 1.5 billion dirhams ($408.4 million) focused on reinforcing liquidity in companies and reducing the cost of conducting business. Still, S&P Global Ratings expects the city’s gross domestic product to shrink 11% this year amid subdued demand and low oil prices.
Some of Dubai’s new measures are likely to “be made permanent, because the target is to reduce the overall cost of doing business,” said Jaap Meijer, the head of equity research at Arqaam Capital in the emirate. “Even before pre-covid crisis, Dubai had realized the cost of doing business had become too high.”
OPEC Readies Next Move in Bid to Avoid Oil-Market Taper Tantrum - Bloomberg
OPEC Readies Next Move in Bid to Avoid Oil-Market Taper Tantrum - Bloomberg:
Saudi Oil Minister Prince Abdulaziz bin Salman likes the idea of OPEC+ acting as the central bank of oil. And he expresses admiration for Alan Greenspan, former chairman of the U.S. Federal Reserve.
The challenge now confronting the oil producers’ club is one that’s all too familiar to the Fed: how to avoid a “taper tantrum,” the market panic that ensued when the institution proposed tightening monetary policy in 2013.
Having successfully doubled crude prices over the past few months through unprecedented output cuts, the OPEC+ alliance led by the Saudis and Russia is poised to begin unwinding these stimulus measures. As fuel demand recovers with the lifting of coronavirus lockdowns, the producers are about to open the taps a little.
But as Greenspan’s successors discovered seven years ago, taking away the punch bowl carries its own risks.
A second wave of the pandemic threatens another slump in oil consumption, while the billion-barrel mountain of inventories that piled up during the first outbreak still looms. If OPEC+ increases supply just as the market falters then prices could crash once again.
Saudi Oil Minister Prince Abdulaziz bin Salman likes the idea of OPEC+ acting as the central bank of oil. And he expresses admiration for Alan Greenspan, former chairman of the U.S. Federal Reserve.
The challenge now confronting the oil producers’ club is one that’s all too familiar to the Fed: how to avoid a “taper tantrum,” the market panic that ensued when the institution proposed tightening monetary policy in 2013.
Having successfully doubled crude prices over the past few months through unprecedented output cuts, the OPEC+ alliance led by the Saudis and Russia is poised to begin unwinding these stimulus measures. As fuel demand recovers with the lifting of coronavirus lockdowns, the producers are about to open the taps a little.
But as Greenspan’s successors discovered seven years ago, taking away the punch bowl carries its own risks.
A second wave of the pandemic threatens another slump in oil consumption, while the billion-barrel mountain of inventories that piled up during the first outbreak still looms. If OPEC+ increases supply just as the market falters then prices could crash once again.
Former NMC Health chairman claims he could have found 'better solution' for embattled firm - Arabianbusiness
Former NMC Health chairman claims he could have found 'better solution' for embattled firm - Arabianbusiness:
Former executive chairman of NMC Health, Faisal Bin Juma Belhoul, believes he could have found a better deal for shareholders of the embattled UAE-based healthcare provider.
Belhoul, a managing partner of Ithmar Capital, took on the role at the end of March after the Dubai-based private equity firm acquired a nine percent stake in the hospital operator.
With the company in freefall, he called for “patience” and “prudence” from shareholders, but just over a week after his appointment, NMC had bowed to creditor demands to be placed into administration from one of its largest creditors Abu Dhabi Commercial Bank – which carried exposure of around $981 million.
Just days later, Belhoul was gone as administrators Alvarez & Marsal Europe, announced “extensive restructuring” of the troubled health giant.
Former executive chairman of NMC Health, Faisal Bin Juma Belhoul, believes he could have found a better deal for shareholders of the embattled UAE-based healthcare provider.
Belhoul, a managing partner of Ithmar Capital, took on the role at the end of March after the Dubai-based private equity firm acquired a nine percent stake in the hospital operator.
With the company in freefall, he called for “patience” and “prudence” from shareholders, but just over a week after his appointment, NMC had bowed to creditor demands to be placed into administration from one of its largest creditors Abu Dhabi Commercial Bank – which carried exposure of around $981 million.
Just days later, Belhoul was gone as administrators Alvarez & Marsal Europe, announced “extensive restructuring” of the troubled health giant.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar mid-session
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.
#Saudi Telecom extends Vodafone Egypt stake purchase for second time - Reuters
Saudi Telecom extends Vodafone Egypt stake purchase for second time - Reuters:
Saudi Arabia’s largest telecoms operator Saudi Telecom Co (STC) (7010.SE) said on Sunday it would need another two months to complete the purchase of Vodafone Group’s 55% stake in Vodafone Egypt.
STC signed a non-binding agreement in January to buy the majority stake for $2.4 billion, but extended the process in April by 90 days, citing logistical challenges caused by the coronavirus pandemic.
In a statement, STC said it was extending this period again until September for the same reasons.
Vodafone Egypt is the country’s biggest mobile operator with 44 million subscribers and a 40% market share.
Saudi Arabia’s largest telecoms operator Saudi Telecom Co (STC) (7010.SE) said on Sunday it would need another two months to complete the purchase of Vodafone Group’s 55% stake in Vodafone Egypt.
STC signed a non-binding agreement in January to buy the majority stake for $2.4 billion, but extended the process in April by 90 days, citing logistical challenges caused by the coronavirus pandemic.
In a statement, STC said it was extending this period again until September for the same reasons.
Vodafone Egypt is the country’s biggest mobile operator with 44 million subscribers and a 40% market share.
MIDEAST STOCKS-Gulf bourses gain ahead of earnings, #Dubai's DAMAC surges - Agricultural Commodities - Reuters
MIDEAST STOCKS-Gulf bourses gain ahead of earnings, Dubai's DAMAC surges - Agricultural Commodities - Reuters:
Most major stock markets in the Gulf rose in early trade on Sunday ahead of the usual flurry of corporate results that begins after July 15 each year, with DAMAC Properties leading Dubai shares higher.
Last Thursday, an investment firm said that on behalf of Hussain Sajwani - founder and Chairman of DAMAC Properties - and his group, it was exploring the possibility of his buying out minority shareholders and taking the company private.
Damac jumped 14.2%, its biggest intraday gain since Aug. 2015, as Dubai’s main share index gained 0.5%.
Saudi Arabia’s benchmark index increased 0.4% with Al Rajhi Bank adding 0.7%, while Riyad Bank was up 1.2%.
Saudi Telecom ticked up 0.1% after it extended its memorandum of understanding with Vodafone to acquire the group’s shareholding in Vodafone Egypt.
Most major stock markets in the Gulf rose in early trade on Sunday ahead of the usual flurry of corporate results that begins after July 15 each year, with DAMAC Properties leading Dubai shares higher.
Last Thursday, an investment firm said that on behalf of Hussain Sajwani - founder and Chairman of DAMAC Properties - and his group, it was exploring the possibility of his buying out minority shareholders and taking the company private.
Damac jumped 14.2%, its biggest intraday gain since Aug. 2015, as Dubai’s main share index gained 0.5%.
Saudi Arabia’s benchmark index increased 0.4% with Al Rajhi Bank adding 0.7%, while Riyad Bank was up 1.2%.
Saudi Telecom ticked up 0.1% after it extended its memorandum of understanding with Vodafone to acquire the group’s shareholding in Vodafone Egypt.