Emaar's Alabbar Sees Dubai Businesses Back to Normal in 2021 - Bloomberg:
Emaar Properties CEO Mohamed Alabbar discusses the effects of Covid-19 on his business and the UAE, and his expectation for businesses returning to their normal operating state. He spoke to Bloomberg's Manus Cranny at the AI Everything Summit in Dubai. (Source: Bloomberg)
Thursday 16 July 2020
A Wild Oil Market, Flowing Cash for Reliance Hold Up Aramco Deal - Bloomberg
A Wild Oil Market, Flowing Cash for Reliance Hold Up Aramco Deal - Bloomberg:
It’s not typical of Mukesh Ambani, Asia’s richest tycoon, to announce a deal before signing a document.
But that’s exactly what he did last year when he told a packed hall of shareholders that Saudi Aramco, the world’s biggest oil producer, was set to buy a 20% stake in Reliance Industries Ltd.’s refining and petrochemicals business, valuing it at $75 billion. So it may have come as a shock to some of those investors when Ambani said on Wednesday that a deal hadn’t been worked out yet with the delay partly down to the coronavirus.
With oil prices around a third lower than a year ago, a typical Asian complex refinery is losing money on every barrel it processes, compared with earnings of almost $7 a barrel last year. The International Energy Agency estimates global oil consumption will slump by 7.9 million barrels a day, or about 8%, in 2020, a big change from the 1.2 million barrels a day of growth it was predicting at the start of the year.
“While the partnership is undoubtedly a prolific one, one could easily imagine the road to fruition is not an easy one,” said Sri Paravaikkarasu, head of Asia oil at industry consultant FGE. “With Covid-19 sending the oil market into a tailspin, Aramco’s earlier strategies will be re-evaluated.”
It’s not typical of Mukesh Ambani, Asia’s richest tycoon, to announce a deal before signing a document.
But that’s exactly what he did last year when he told a packed hall of shareholders that Saudi Aramco, the world’s biggest oil producer, was set to buy a 20% stake in Reliance Industries Ltd.’s refining and petrochemicals business, valuing it at $75 billion. So it may have come as a shock to some of those investors when Ambani said on Wednesday that a deal hadn’t been worked out yet with the delay partly down to the coronavirus.
With oil prices around a third lower than a year ago, a typical Asian complex refinery is losing money on every barrel it processes, compared with earnings of almost $7 a barrel last year. The International Energy Agency estimates global oil consumption will slump by 7.9 million barrels a day, or about 8%, in 2020, a big change from the 1.2 million barrels a day of growth it was predicting at the start of the year.
“While the partnership is undoubtedly a prolific one, one could easily imagine the road to fruition is not an easy one,” said Sri Paravaikkarasu, head of Asia oil at industry consultant FGE. “With Covid-19 sending the oil market into a tailspin, Aramco’s earlier strategies will be re-evaluated.”
Amanat Is Said to Weigh Selling Middlesex #Dubai to Study World - Bloomberg
Amanat Is Said to Weigh Selling Middlesex Dubai to Study World - Bloomberg:
Amanat Holdings PJSC is in exclusive talks to sell Middlesex University’s Dubai campus to Study World Education Holding Group, according to people familiar with the matter.
Amanat signed a sales and purchase agreement with Dubai-based Study World, the people said, asking not to be identified because the information is private. The deal requires the approval of the local education regulatory body and isn’t final, they said.
A representative for Amanat declined to comment, while a representative for Study World didn’t immediately respond to requests for comment.
Dubai-based Amanat, an investor in education and health care, acquired the campus in 2018 for about $100 million from the liquidators of private equity firm Abraaj Group. Amanat also owns stakes in Abu Dhabi University Holding Co. and Taaleem Holdings.
Amanat Holdings PJSC is in exclusive talks to sell Middlesex University’s Dubai campus to Study World Education Holding Group, according to people familiar with the matter.
Amanat signed a sales and purchase agreement with Dubai-based Study World, the people said, asking not to be identified because the information is private. The deal requires the approval of the local education regulatory body and isn’t final, they said.
A representative for Amanat declined to comment, while a representative for Study World didn’t immediately respond to requests for comment.
Dubai-based Amanat, an investor in education and health care, acquired the campus in 2018 for about $100 million from the liquidators of private equity firm Abraaj Group. Amanat also owns stakes in Abu Dhabi University Holding Co. and Taaleem Holdings.
Exclusive: OPEC fears second virus wave to prolong oil inventory overhang - Reuters
Exclusive: OPEC fears second virus wave to prolong oil inventory overhang - Reuters:
OPEC fears its record oil cuts will fail to rebalance the market and solve the worst glut in history if a second wave of the COVID-19 pandemic undermines an economic recovery later this year, according to internal OPEC research seen by Reuters.
OPEC, Russia and their allies, a group known as OPEC+, said they would ease record oil curbs from Aug. 1 citing a gradual recovery in demand as global lockdowns loosen up.
The group expects oil demand to climb by 7 million barrels per day (bpd) in 2021 after falling 9 million bpd this year. OPEC wants to lift its output by 6 million bpd in 2021.
But internal research by OPEC, seen by Reuters, suggests those targets could be at risk if a second wave of the virus forces new lockdowns around the world.
OPEC fears its record oil cuts will fail to rebalance the market and solve the worst glut in history if a second wave of the COVID-19 pandemic undermines an economic recovery later this year, according to internal OPEC research seen by Reuters.
OPEC, Russia and their allies, a group known as OPEC+, said they would ease record oil curbs from Aug. 1 citing a gradual recovery in demand as global lockdowns loosen up.
The group expects oil demand to climb by 7 million barrels per day (bpd) in 2021 after falling 9 million bpd this year. OPEC wants to lift its output by 6 million bpd in 2021.
But internal research by OPEC, seen by Reuters, suggests those targets could be at risk if a second wave of the virus forces new lockdowns around the world.
#SaudiArabia's Almana General Hospitals in early talks for IPO-sources - Reuters
Saudi Arabia's Almana General Hospitals in early talks for IPO-sources - Reuters:
Saudi Arabia’s Almana General Hospitals (AGH) is in early talks with banks about an initial public offering on the kingdom’s Tadawul exchange, two sources with knowledge of the matter told Reuters.
Almana, focused on the kingdom’s eastern province, is part-owned by Sanabil Investments, a commercial investment company owned by the kingdom’s sovereign wealth fund, the Public Investment Fund. Sanabil acquired a 20% stake in Almana in 2016.
Almana has asked advisors to carry out a valuation of the hospital in conjunction with the possible IPO transaction, said one of the sources, who declined to be named as the matter is not public.
The company was speaking to independent investment banks but still weighing whether to go ahead with a local offering or consider an international Regulation S offering, making it open to institutional investors outside the United States, a second source said. The company could go public in the fourth quarter, should they decide to proceed.
Saudi Arabia’s Almana General Hospitals (AGH) is in early talks with banks about an initial public offering on the kingdom’s Tadawul exchange, two sources with knowledge of the matter told Reuters.
Almana, focused on the kingdom’s eastern province, is part-owned by Sanabil Investments, a commercial investment company owned by the kingdom’s sovereign wealth fund, the Public Investment Fund. Sanabil acquired a 20% stake in Almana in 2016.
Almana has asked advisors to carry out a valuation of the hospital in conjunction with the possible IPO transaction, said one of the sources, who declined to be named as the matter is not public.
The company was speaking to independent investment banks but still weighing whether to go ahead with a local offering or consider an international Regulation S offering, making it open to institutional investors outside the United States, a second source said. The company could go public in the fourth quarter, should they decide to proceed.
Oil falls as OPEC+ plans to raise output while virus cases increase - Reuters
Oil falls as OPEC+ plans to raise output while virus cases increase - Reuters:
Oil prices fell 1% on Thursday after OPEC+ agreed to ease record supply curbs and as new infections of the novel coronavirus continue to surge in the United States.
Both benchmark Brent and U.S. crude have remained above $40 a barrel for the last several weeks. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, lowered daily supply beginning in May and demand worldwide has rebounding, helping prices to stabilize.
Fears of a second wave of cases of COVID-19 - led by the United States - are keeping the rally in check. Nearly 600,000 people worldwide have died of the disease, according to a Reuters tally.
Brent LCOc1 fell 42 cents, or 1%, to settle at $43.37 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 fell 45 cents, or 1.1%, to settle at $40.75 a barrel.
Oil prices fell 1% on Thursday after OPEC+ agreed to ease record supply curbs and as new infections of the novel coronavirus continue to surge in the United States.
Both benchmark Brent and U.S. crude have remained above $40 a barrel for the last several weeks. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, lowered daily supply beginning in May and demand worldwide has rebounding, helping prices to stabilize.
Fears of a second wave of cases of COVID-19 - led by the United States - are keeping the rally in check. Nearly 600,000 people worldwide have died of the disease, according to a Reuters tally.
Brent LCOc1 fell 42 cents, or 1%, to settle at $43.37 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 fell 45 cents, or 1.1%, to settle at $40.75 a barrel.
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.
Reliance's stake sale talks with Aramco stall over price, sources say - Reuters
Reliance's stake sale talks with Aramco stall over price, sources say - Reuters:
Talks over the sale of a 20% stake in Reliance Industries Ltd’s oil-to-chemical business to Saudi Aramco have stalled over price, four sources familiar with the matter said.
With the energy market hit by falling demand for crude due to COVID-19, Aramco wants the Indian conglomerate to review the $15 billion it agreed to sell the stake for last year, the sources told Reuters.
“Aramco has told Reliance that refining margins are terrible and are expected to remain subdued in Q3 at least, so they can’t pay the price they have agreed pre-COVID,” one of the sources said.
“In reality, Aramco does not have the money.”
A second source said Reliance would wait for the market to recover rather than settling for a “drastic” revaluation of the asset.
Talks over the sale of a 20% stake in Reliance Industries Ltd’s oil-to-chemical business to Saudi Aramco have stalled over price, four sources familiar with the matter said.
With the energy market hit by falling demand for crude due to COVID-19, Aramco wants the Indian conglomerate to review the $15 billion it agreed to sell the stake for last year, the sources told Reuters.
“Aramco has told Reliance that refining margins are terrible and are expected to remain subdued in Q3 at least, so they can’t pay the price they have agreed pre-COVID,” one of the sources said.
“In reality, Aramco does not have the money.”
A second source said Reliance would wait for the market to recover rather than settling for a “drastic” revaluation of the asset.
EY warned NMC Health over bank account inconsistencies | Financial Times
EY warned NMC Health over bank account inconsistencies | Financial Times:
Auditors at NMC Health warned of serious problems in the verification of bank balances a year before the hospital operator collapsed in a suspected fraud involving more than $4bn in undeclared debt.
A review by NMC’s auditors at EY found that Bank of Baroda, one of India’s largest banks, had confused accounts belonging to the FTSE 100 company with those held by its founder BR Shetty, according to documents seen by the Financial Times and people familiar with the matter.
Initially, EY feared that almost Dh1bn ($272m) of loans and overdraft balances had been omitted from NMC Health’s accounts before the Bank of Baroda clarified that the debt was owed by Mr Shetty, according to an audit memo.
The discrepancy — which was raised ahead of an NMC audit committee meeting in March 2019 — pointed to serious internal control issues in the company’s dealings with banks.
Auditors at NMC Health warned of serious problems in the verification of bank balances a year before the hospital operator collapsed in a suspected fraud involving more than $4bn in undeclared debt.
A review by NMC’s auditors at EY found that Bank of Baroda, one of India’s largest banks, had confused accounts belonging to the FTSE 100 company with those held by its founder BR Shetty, according to documents seen by the Financial Times and people familiar with the matter.
Initially, EY feared that almost Dh1bn ($272m) of loans and overdraft balances had been omitted from NMC Health’s accounts before the Bank of Baroda clarified that the debt was owed by Mr Shetty, according to an audit memo.
The discrepancy — which was raised ahead of an NMC audit committee meeting in March 2019 — pointed to serious internal control issues in the company’s dealings with banks.
#UAE Beckons Tesla Amid Push to Accelerate Autonomous Driving - Bloomberg
UAE Beckons Tesla Amid Push to Accelerate Autonomous Driving - Bloomberg:
The United Arab Emirates threw open the door to Tesla Inc. to join its push to accelerate autonomous driving over the next five years as the Gulf nation seeks to bolster its digital economy, a UAE minister said.
The government plans to hand out data that would be useful to driver-less cars to help incentivize start-ups, Minister of State for Artificial Intelligence Omar Al Olama said in an interview with Bloomberg TV. Dubai Future Lab, an arm of state-owned Dubai Future Foundation, is also entering partnerships, he said.
“Usually it costs a lot of money for them to collect all this data, but as a government we can collect it and then give it to them as an incentive to start up,” Al Olama said.
Tesla Inc.’s Elon Musk said last week that the carmaker is poised to develop a technology making its vehicles fully capable of driving themselves. Tesla and its competitors are “welcome to come and start in Dubai,” Al Olama said.
The United Arab Emirates threw open the door to Tesla Inc. to join its push to accelerate autonomous driving over the next five years as the Gulf nation seeks to bolster its digital economy, a UAE minister said.
The government plans to hand out data that would be useful to driver-less cars to help incentivize start-ups, Minister of State for Artificial Intelligence Omar Al Olama said in an interview with Bloomberg TV. Dubai Future Lab, an arm of state-owned Dubai Future Foundation, is also entering partnerships, he said.
“Usually it costs a lot of money for them to collect all this data, but as a government we can collect it and then give it to them as an incentive to start up,” Al Olama said.
Tesla Inc.’s Elon Musk said last week that the carmaker is poised to develop a technology making its vehicles fully capable of driving themselves. Tesla and its competitors are “welcome to come and start in Dubai,” Al Olama said.
#Qatar Airways Has ‘Absolute’ Confidence in Cathay Pacific, CEO Says - Bloomberg
Qatar Airways Has ‘Absolute’ Confidence in Cathay Pacific, CEO Says - Bloomberg:
Qatar Airways has confidence that its partner Cathay Pacific will overcome the crisis wrought by the coronavirus pandemic, after shareholders of the Hong Kong-based carrier approved a plan to avoid collapse. CEO Akbar Al Baker spoke to Bloomberg's Simone Foxman. Al Baker also discussed the carrier's airspace dispute with Saudi Arabia, the United Arab Emirates, Bahrain and Egypt. (Source: Bloomberg)
Qatar Airways has confidence that its partner Cathay Pacific will overcome the crisis wrought by the coronavirus pandemic, after shareholders of the Hong Kong-based carrier approved a plan to avoid collapse. CEO Akbar Al Baker spoke to Bloomberg's Simone Foxman. Al Baker also discussed the carrier's airspace dispute with Saudi Arabia, the United Arab Emirates, Bahrain and Egypt. (Source: Bloomberg)
World’s Youngest Emerging Market Sees Equity Dream Wilt Away - Bloomberg
World’s Youngest Emerging Market Sees Equity Dream Wilt Away - Bloomberg:
The stimulus-driven “everything rally” has sidestepped Saudi Arabian stocks.
The world’s seventh-biggest equity market is underperforming its emerging-market peers by a factor of one to seven as investors fret over the oil-dependent kingdom’s growth outlook. They’re betting the government’s tax increases and cuts to worker allowances will crimp consumer demand and cause the deepest recession since 1987.
A year since Saudi Arabia’s upgrade to an emerging market in MSCI Inc.’s indexes, the coronavirus and crude-market turmoil are forcing a painful fiscal adjustment. That’s threatening corporate earnings and the nation’s investment case.
“Weaker consumption and private capex, and fiscal austerity, render the profit outlook bleak,” said Tarek Fadlallah, the chief executive officer of the Middle East unit of Nomura Asset Management. “Economic recovery will be more difficult as output is lost from firms that will shutter over the coming months and as government revenues remain under strain.”
The stimulus-driven “everything rally” has sidestepped Saudi Arabian stocks.
The world’s seventh-biggest equity market is underperforming its emerging-market peers by a factor of one to seven as investors fret over the oil-dependent kingdom’s growth outlook. They’re betting the government’s tax increases and cuts to worker allowances will crimp consumer demand and cause the deepest recession since 1987.
“Weaker consumption and private capex, and fiscal austerity, render the profit outlook bleak,” said Tarek Fadlallah, the chief executive officer of the Middle East unit of Nomura Asset Management. “Economic recovery will be more difficult as output is lost from firms that will shutter over the coming months and as government revenues remain under strain.”
#AbuDhabi Bourse to Introduce ETF Next Month, Futures Later - Bloomberg
Abu Dhabi Bourse to Introduce ETF Next Month, Futures Later - Bloomberg:
Abu Dhabi Securities Exchange will list an exchange-traded fund next month and is planning to introduce derivatives such as futures contracts soon, the bourse’s chief executive officer said.
The exchange in the capital of the United Arab Emirates is close to setting up a central clearing house, which is a prerequisite for derivatives trading, Khaleefa Al Mansouri said in an interview. Investment banks will probably be able to buy and sell them for customers next year, he said.
The ETF will be sharia-compliant and it will also followed by a real estate investment trust, he said.
“Infrastructure-wise, we are ready to receive any of those,” he said on Wednesday. “We are in talks with several investors to introduce REITs.”
Abu Dhabi Securities Exchange will list an exchange-traded fund next month and is planning to introduce derivatives such as futures contracts soon, the bourse’s chief executive officer said.
The exchange in the capital of the United Arab Emirates is close to setting up a central clearing house, which is a prerequisite for derivatives trading, Khaleefa Al Mansouri said in an interview. Investment banks will probably be able to buy and sell them for customers next year, he said.
The ETF will be sharia-compliant and it will also followed by a real estate investment trust, he said.
“Infrastructure-wise, we are ready to receive any of those,” he said on Wednesday. “We are in talks with several investors to introduce REITs.”
Bounced cheques in the #UAE: "Banks are not in the business of sending people to jail" | ZAWYA MENA Edition
Bounced cheques in the UAE: "Banks are not in the business of sending people to jail" | ZAWYA MENA Edition:
With many facing financial difficulties in the wake of the COVID-19 pandemic, legal and financial experts have sought to ease the concerns of residents by announcing that UAE courts are now far more lenient when it comes to cases of bounced cheques.
It is one of UAE’s most common financial offences; it was once a feared practice in the Emirates, with those found guilty facing potential lengthy jail terms and/or a fine. However, new insolvency laws put into practice earlier this year mean that courts are now more accommodating and lenient towards those who have found themselves in financial difficulty.
The new law, which was implemented in January, is aimed at supporting those struggling with financial difficulties by helping them reschedule debts and offering the chance to take out new concessional loans.
Barney Almazar, a director at the corporate-commercial department of Gulf Law, told Zawya that while the issuance of bounced cheques remains criminal in nature, the crime is not to be feared as it once was.
With many facing financial difficulties in the wake of the COVID-19 pandemic, legal and financial experts have sought to ease the concerns of residents by announcing that UAE courts are now far more lenient when it comes to cases of bounced cheques.
It is one of UAE’s most common financial offences; it was once a feared practice in the Emirates, with those found guilty facing potential lengthy jail terms and/or a fine. However, new insolvency laws put into practice earlier this year mean that courts are now more accommodating and lenient towards those who have found themselves in financial difficulty.
The new law, which was implemented in January, is aimed at supporting those struggling with financial difficulties by helping them reschedule debts and offering the chance to take out new concessional loans.
Barney Almazar, a director at the corporate-commercial department of Gulf Law, told Zawya that while the issuance of bounced cheques remains criminal in nature, the crime is not to be feared as it once was.
Number of foreign investors surges in #AbuDhabi's ADX - Arabianbusiness
Number of foreign investors surges in Abu Dhabi's ADX - Arabianbusiness:
The number of non-UAE nationals who acquired an investor number at the Abu Dhabi Securities Exchange (ADX) went up by 25 percent in the first half of the year, ADX said in a statement.
In a performance update on the six months ending on June 30, ADX also said that three ADX-listed companies raised foreign ownership limits to 49 percent, while one increased to 40 percent, adding AED 6.3 billion of stock in these companies accessible to foreign investors.
A total of 55 ADX-listed companies are now accessible to foreign investors, representing 80 percent of the exchange. All the top 25 global asset managers are registered as investors on ADX.
Additionally, the ADX update noted that there were a total of 1,723 new investors were recorded in H1, of whom 1,497 were individual or retail investors and 226 were institutional investors. Of the individual or retail investors, just over half – 53 percent – were non-UAE nationals.
The number of non-UAE nationals who acquired an investor number at the Abu Dhabi Securities Exchange (ADX) went up by 25 percent in the first half of the year, ADX said in a statement.
In a performance update on the six months ending on June 30, ADX also said that three ADX-listed companies raised foreign ownership limits to 49 percent, while one increased to 40 percent, adding AED 6.3 billion of stock in these companies accessible to foreign investors.
A total of 55 ADX-listed companies are now accessible to foreign investors, representing 80 percent of the exchange. All the top 25 global asset managers are registered as investors on ADX.
Additionally, the ADX update noted that there were a total of 1,723 new investors were recorded in H1, of whom 1,497 were individual or retail investors and 226 were institutional investors. Of the individual or retail investors, just over half – 53 percent – were non-UAE nationals.
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.
Oil prices ease after OPEC+ agrees to taper oil supply curbs - Reuters
Oil prices ease after OPEC+ agrees to taper oil supply curbs - Reuters:
Oil prices eased on Thursday after OPEC and allies such as Russia agreed to taper record supply curbs from August, though the drop was cushioned by hopes for a swift U.S. demand pick-up after a big drawdown from the country’s crude stocks.
Brent crude LCOc1 fell 33 cents, or 0.8%, to $43.46 a barrel by 0646 GMT, and U.S. West Texas Intermediate (WTI) crude CLc1 dropped 42 cents, or 1.0%, to $40.78 a barrel. Prices rose 2% the previous day, helped by the U.S. crude inventories drop.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, agreed on Wednesday to scale back oil production cuts from August as the global economy slowly recovers from the coronavirus pandemic.
OPEC+ has been cutting output since May by 9.7 million barrels per day, or 10% of global supply, but from August, cuts will officially taper to 7.7 million bpd until December.
Oil prices eased on Thursday after OPEC and allies such as Russia agreed to taper record supply curbs from August, though the drop was cushioned by hopes for a swift U.S. demand pick-up after a big drawdown from the country’s crude stocks.
Brent crude LCOc1 fell 33 cents, or 0.8%, to $43.46 a barrel by 0646 GMT, and U.S. West Texas Intermediate (WTI) crude CLc1 dropped 42 cents, or 1.0%, to $40.78 a barrel. Prices rose 2% the previous day, helped by the U.S. crude inventories drop.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, agreed on Wednesday to scale back oil production cuts from August as the global economy slowly recovers from the coronavirus pandemic.
OPEC+ has been cutting output since May by 9.7 million barrels per day, or 10% of global supply, but from August, cuts will officially taper to 7.7 million bpd until December.
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