Kuwait’s $65 Billion Debt Plan in Peril After Draft Law Rejected - Bloomberg:
The Kuwaiti parliament’s finance and economic panel turned down a draft bill that might have allowed the government to borrow at home and abroad just as liquid assets in the Treasury come close to being depleted.
“We rejected the public debt law, with 4 against and 1 abstention, because, in the absence of clear and real reform, things won’t be put right,” said the committee’s head, Safa Al-Hashem. The government also failed to explain where any borrowed money would be directed, she said.
It was at least the second time officials attempted to get the contentious bill through parliament. After a debut Eurobond issuance in 2017, Kuwait’s public-debt law lapsed, rendering the government unable to offer bonds.
The bill was designed to raise as much as 20 billion dinars ($65 billion). Its rejection means it won’t move to the house for debate or a vote, leaving the government with the option of possibly seeking to issue the law by decree once the current legislature’s term ends ahead of elections later this year.
Sunday 16 August 2020
Middle East News: UAE, Israeli Foreign Ministers Agree to Meet in Landmark Call - Bloomberg
Middle East News: UAE, Israeli Foreign Ministers Agree to Meet in Landmark Call - Bloomberg:
Israel and the United Arab Emirates took tangible steps toward normalizing ties on Sunday, with the Gulf emirate lifting its block on calls with the Jewish state and companies forming a cross-border joint venture to research the coronavirus.
The landmark call took place between UAE Foreign Minister Sheikh Abdullah bin Zayed al Nahyan and his Israeli counterpart, Gabi Ashkenazi, who exchanged greetings and agreed to meet soon. Israeli Communications Minister Yoaz Hendel hailed the UAE move to unblock calls as a confidence-building prelude to economic opportunities for both countries.
The agreement to make peace announced Thursday set aside decades of enmity with promises to exchange ambassadors and open ties through air travel, tourism, investment, security and telecommunications. Israeli wireless operator Partner Communications said Sunday that it was in advanced talks to form a mutual roaming service agreement with Emirates Telecommunications Corp., the United Arab Emirates’ biggest telephone company known as Etisalat.
Israir Airlines Ltd. has started the process of applying for a landing permit in the UAE, Chief Executive officer Uri Sirkis said on Sunday.While the communications arena was being cracked open, UAE-based APEX National Investment agreed to conduct research on the coronavirus with Israel’s TeraGroup. Even before the diplomatic breakthrough, there were preliminary ties with Israeli hospitals on fighting the outbreak.
Israel and the United Arab Emirates took tangible steps toward normalizing ties on Sunday, with the Gulf emirate lifting its block on calls with the Jewish state and companies forming a cross-border joint venture to research the coronavirus.
The landmark call took place between UAE Foreign Minister Sheikh Abdullah bin Zayed al Nahyan and his Israeli counterpart, Gabi Ashkenazi, who exchanged greetings and agreed to meet soon. Israeli Communications Minister Yoaz Hendel hailed the UAE move to unblock calls as a confidence-building prelude to economic opportunities for both countries.
The agreement to make peace announced Thursday set aside decades of enmity with promises to exchange ambassadors and open ties through air travel, tourism, investment, security and telecommunications. Israeli wireless operator Partner Communications said Sunday that it was in advanced talks to form a mutual roaming service agreement with Emirates Telecommunications Corp., the United Arab Emirates’ biggest telephone company known as Etisalat.
Israir Airlines Ltd. has started the process of applying for a landing permit in the UAE, Chief Executive officer Uri Sirkis said on Sunday.While the communications arena was being cracked open, UAE-based APEX National Investment agreed to conduct research on the coronavirus with Israel’s TeraGroup. Even before the diplomatic breakthrough, there were preliminary ties with Israeli hospitals on fighting the outbreak.
European, Middle Eastern & African Stocks - Bloomberg #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.
#Saudi prince powers ahead with futuristic city and sports giga-projects | Financial Times
Saudi prince powers ahead with futuristic city and sports giga-projects | Financial Times:
Saudi Arabia is forging ahead with Crown Prince Mohammed bin Salman’s flagship giga-projects, awarding billions of dollars of contracts despite Riyadh being forced to impose swingeing austerity measures as it grapples with the twin shocks of coronavirus and low oil prices.
With Riyadh facing its worst financial crisis in decades, it has already taken the dramatic step of tripling value added tax to 15 per cent, suspending benefits of the civil service, which employs most Saudis, and warning that it will have to reprioritise spending.
Many Saudis had expected the three highly ambitious schemes — Neom, a $500bn futuristic city; Qiddiya, a vast sports and entertainment complex; and a high-end Red Sea tourism development — to be victims of state spending cuts.
But executives at the flagship developments told the Financial Times that Prince Mohammed had insisted that the giga-projects move ahead as planned. “He’s completely committed to this vision and he wants to make sure that everybody associated with it, from me on down, is crystal clear that we ‘stay the course, move this forward, don’t let anything get in the way’,” said Michael Reininger, chief executive of Qiddiya.
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| Saudi Arabia's King Salman, centre, and Crown Prince Mohammed bin Salman, right, attend a launch ceremony for the Qiddiya project, a vast sports and entertainment complex, in Riyadh in April 2018 © Bandar Algaloud/Courtesy of Saudi Royal Court/Reuters |
Saudi Arabia is forging ahead with Crown Prince Mohammed bin Salman’s flagship giga-projects, awarding billions of dollars of contracts despite Riyadh being forced to impose swingeing austerity measures as it grapples with the twin shocks of coronavirus and low oil prices.
With Riyadh facing its worst financial crisis in decades, it has already taken the dramatic step of tripling value added tax to 15 per cent, suspending benefits of the civil service, which employs most Saudis, and warning that it will have to reprioritise spending.
Many Saudis had expected the three highly ambitious schemes — Neom, a $500bn futuristic city; Qiddiya, a vast sports and entertainment complex; and a high-end Red Sea tourism development — to be victims of state spending cuts.
But executives at the flagship developments told the Financial Times that Prince Mohammed had insisted that the giga-projects move ahead as planned. “He’s completely committed to this vision and he wants to make sure that everybody associated with it, from me on down, is crystal clear that we ‘stay the course, move this forward, don’t let anything get in the way’,” said Michael Reininger, chief executive of Qiddiya.
European, Middle Eastern & African Stocks - Bloomberg #UAE - close; #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.
Clark stresses bailout urgency as Emirates passenger flights increase | News | Flight Global
Clark stresses bailout urgency as Emirates passenger flights increase | News | Flight Global:
Emirates passenger flights now account for approximately half the airline’s daily frequencies but a bailout from owner the Dubai government will be needed “sooner rather than later”, says airline president Tim Clark.
As the Dubai carrier expands operations, daily frequencies are now running at around 230 flights, which equates to around 40% the tally on a normal day before the coronavirus pandemic. However, half of the current frequencies are operating some form of cargo-only service.
“We operated 123 777s last week, and we had six of the 115 A380s flying – they’re doing Paris and London. And we’re trying to get the A380 into Toronto,” Clark told FlightGlobal in an interview on 12 August. “Slowly but surely we trying to get ourselves back in. The golden rule is that no operation is allowed to go below the cash operating costs because we’re trying to contain the outflow of cash.”
Clark is cautiously optimistic about the return of A380 services – which began on 15 July, saying that the loads are “quite solid, notwithstanding quarantine”. He indicates that the decision has proved economically viable because “we can easily cover our operating costs and make a bit of money on that. It’s also part of brand, it’s part of the feel good factor we’re trying to create.”
Emirates passenger flights now account for approximately half the airline’s daily frequencies but a bailout from owner the Dubai government will be needed “sooner rather than later”, says airline president Tim Clark.
As the Dubai carrier expands operations, daily frequencies are now running at around 230 flights, which equates to around 40% the tally on a normal day before the coronavirus pandemic. However, half of the current frequencies are operating some form of cargo-only service.
“We operated 123 777s last week, and we had six of the 115 A380s flying – they’re doing Paris and London. And we’re trying to get the A380 into Toronto,” Clark told FlightGlobal in an interview on 12 August. “Slowly but surely we trying to get ourselves back in. The golden rule is that no operation is allowed to go below the cash operating costs because we’re trying to contain the outflow of cash.”
Clark is cautiously optimistic about the return of A380 services – which began on 15 July, saying that the loads are “quite solid, notwithstanding quarantine”. He indicates that the decision has proved economically viable because “we can easily cover our operating costs and make a bit of money on that. It’s also part of brand, it’s part of the feel good factor we’re trying to create.”
Oil Companies Wonder If It’s Worth Looking for Oil Anymore - Bloomberg
Oil Companies Wonder If It’s Worth Looking for Oil Anymore - Bloomberg:
A few dots near the bottom corner of the world map in the southern Atlantic, the Falkland Islands were once at the forefront of a new era for the oil industry as companies scoured the planet for resources.
Yet a decade after the discovery of as much as 1.7 billion barrels of crude in surrounding waters, the British overseas territory known for sheep rearing and tension with Argentina looks as remote as ever. Rather than the next frontier, the project to extract energy risks being added to a list of what companies call “stranded assets” that could cost them huge sums to mothball.
As the coronavirus ravages economies and cripples demand, European oil majors have made some uncomfortable admissions in recent months: oil and gas worth billions of dollars might never be pumped out of the ground.
With the crisis also hastening a global shift to cleaner energy, fossil fuels will likely be cheaper than expected in the coming decades, while emitting the carbon they contain will get more expensive. These two simple assumptions mean that tapping some fields no longer makes economic sense. BP Plc said on Aug. 4 that it would no longer do any exploration in new countries.
A few dots near the bottom corner of the world map in the southern Atlantic, the Falkland Islands were once at the forefront of a new era for the oil industry as companies scoured the planet for resources.
Yet a decade after the discovery of as much as 1.7 billion barrels of crude in surrounding waters, the British overseas territory known for sheep rearing and tension with Argentina looks as remote as ever. Rather than the next frontier, the project to extract energy risks being added to a list of what companies call “stranded assets” that could cost them huge sums to mothball.
As the coronavirus ravages economies and cripples demand, European oil majors have made some uncomfortable admissions in recent months: oil and gas worth billions of dollars might never be pumped out of the ground.
With the crisis also hastening a global shift to cleaner energy, fossil fuels will likely be cheaper than expected in the coming decades, while emitting the carbon they contain will get more expensive. These two simple assumptions mean that tapping some fields no longer makes economic sense. BP Plc said on Aug. 4 that it would no longer do any exploration in new countries.
Emerging Market and Middle East Stocks: Updates for #UAE, Israel On August 16 - Bloomberg
Emerging Market and Middle East Stocks: Updates for UAE, Israel On August 16 - Bloomberg:
Equities across the Middle East advanced in the first day of trading after Israel and the United Arab Emirates said they reached an agreement to begin normalizing relations.
Israel’s TA-35 gained as much as 2%, leading gains in the region. The main indexes in Dubai and Abu Dhabi rose 0.6% and 0.2%, respectively, as of 11:12 a.m. local time, with peers in Kuwait, Saudi Arabia and Bahrain also up.
A joint statement from the U.S., Israel and UAE announced Thursday that the two Mideast nations will establish normal ties, signaling they will send ambassadors and open more direct commercial relations, including air travel. On Sunday, UAE-based APEX National Investment said it agreed to conduct research on the coronavirus with Israel’s TeraGroup, in what could be the first cross-border deal between the two nations.
“Over the past decades the region has been suffering from wars, political instabilities,” Ali El Adou, head of asset management at Daman Investments in Dubai, said in an interview with Bloomberg Television. “The agreement might be the breakthrough to the current political deadlock, and bring opportunities for peace and economic prosperity in the region.”
Equities across the Middle East advanced in the first day of trading after Israel and the United Arab Emirates said they reached an agreement to begin normalizing relations.
Israel’s TA-35 gained as much as 2%, leading gains in the region. The main indexes in Dubai and Abu Dhabi rose 0.6% and 0.2%, respectively, as of 11:12 a.m. local time, with peers in Kuwait, Saudi Arabia and Bahrain also up.
A joint statement from the U.S., Israel and UAE announced Thursday that the two Mideast nations will establish normal ties, signaling they will send ambassadors and open more direct commercial relations, including air travel. On Sunday, UAE-based APEX National Investment said it agreed to conduct research on the coronavirus with Israel’s TeraGroup, in what could be the first cross-border deal between the two nations.
“Over the past decades the region has been suffering from wars, political instabilities,” Ali El Adou, head of asset management at Daman Investments in Dubai, said in an interview with Bloomberg Television. “The agreement might be the breakthrough to the current political deadlock, and bring opportunities for peace and economic prosperity in the region.”
Middle East Economies: #Bahrain Downgraded by Fitch as Further Gulf Support Seen - Bloomberg
Middle East Economies: Bahrain Downgraded by Fitch as Further Gulf Support Seen - Bloomberg:
Bahrain received its first downgrade in over two years from Fitch Ratings, which said it will likely “require further Gulf backing” in the medium term as the government’s finances remain under strain.
“This may be contingent on Bahrain enacting further fiscal reforms given that Gulf creditors are themselves facing the need for fiscal consolidation,” Fitch analysts including Toby Iles said in a report.
Fitch on Friday cut Bahrain’s sovereign rating one step to B+, leaving it four levels below investment grade and on par with Egypt, Bolivia and Jamaica. The outlook is stable.
Bahrain, the smallest among economies of the six Gulf Cooperation Council members, is vulnerable despite a $10 billion bailout package secured from its regional allies in 2018. Lower oil prices and the global coronavirus pandemic have combined to stretch its finances.
Bahrain received its first downgrade in over two years from Fitch Ratings, which said it will likely “require further Gulf backing” in the medium term as the government’s finances remain under strain.
“This may be contingent on Bahrain enacting further fiscal reforms given that Gulf creditors are themselves facing the need for fiscal consolidation,” Fitch analysts including Toby Iles said in a report.
Fitch on Friday cut Bahrain’s sovereign rating one step to B+, leaving it four levels below investment grade and on par with Egypt, Bolivia and Jamaica. The outlook is stable.
Bahrain, the smallest among economies of the six Gulf Cooperation Council members, is vulnerable despite a $10 billion bailout package secured from its regional allies in 2018. Lower oil prices and the global coronavirus pandemic have combined to stretch its finances.
MIDEAST STOCKS-Most major Gulf markets rise as financials gain - Reuters
MIDEAST STOCKS-Most major Gulf markets rise as financials gain - Reuters:
Most major Gulf stock markets rose in early trade on Sunday, supported by gains in financial stocks, though Qatar bucked the regional trend to trade lower.
Saudi Arabia’s benchmark index was up 0.3%, with Al Rajhi Bank and petrochemicals maker Saudi Basic Industries up 0.5% and 0.8% respectively while retail company Savola Group advanced 1.6% on a sharp rise in second-quarter profit.
The Dubai index gained 0.6%, helped by a 1% gain for Emirates NBD Bank and a 0.7% rise for Emaar Properties.
Union Properties rose 1.8% after the real estate developer reduced its second-quarter loss to 38.6 million dirhams ($10.5 million) from 84.1 million dirhams a year earlier.
Most major Gulf stock markets rose in early trade on Sunday, supported by gains in financial stocks, though Qatar bucked the regional trend to trade lower.
Saudi Arabia’s benchmark index was up 0.3%, with Al Rajhi Bank and petrochemicals maker Saudi Basic Industries up 0.5% and 0.8% respectively while retail company Savola Group advanced 1.6% on a sharp rise in second-quarter profit.
The Dubai index gained 0.6%, helped by a 1% gain for Emirates NBD Bank and a 0.7% rise for Emaar Properties.
Union Properties rose 1.8% after the real estate developer reduced its second-quarter loss to 38.6 million dirhams ($10.5 million) from 84.1 million dirhams a year earlier.
#Dubai Is Poised to Gain From Travel Opening With Israel - Bloomberg
Dubai Is Poised to Gain From Travel Opening With Israel - Bloomberg:
Dubai is likely to benefit the most in aviation from the United Arab Emirates’ historic deal to normalize relations with Israel, gaining a new stream of travelers that can help the Gulf travel hub bounce back from the coronavirus crisis that has decimated air traffic.
The agreement announced Thursday sets aside decades of enmity between the UAE and Israel, opening ties through air travel, tourism, investment, security and telecommunications. Delegations from the two countries are set to meet soon to work out the details.
The opening will give the UAE’s biggest carriers -- Emirates and Etihad -- an opportunity to feed Israeli passengers through their airport hubs in Dubai and Abu Dhabi, respectively, connecting to destinations farther east and west. Currently, Royal Jordanian and Turkish Airlines are the only carriers in the Middle East that fly to Israel.
Dubai in particular could benefit, as its airport offers daily flights to more than 250 destinations, said Anne Correa, vice president for airline and airport services at aviation consulting firm Morten Beyer & Agnew.
Dubai is likely to benefit the most in aviation from the United Arab Emirates’ historic deal to normalize relations with Israel, gaining a new stream of travelers that can help the Gulf travel hub bounce back from the coronavirus crisis that has decimated air traffic.
The agreement announced Thursday sets aside decades of enmity between the UAE and Israel, opening ties through air travel, tourism, investment, security and telecommunications. Delegations from the two countries are set to meet soon to work out the details.
The opening will give the UAE’s biggest carriers -- Emirates and Etihad -- an opportunity to feed Israeli passengers through their airport hubs in Dubai and Abu Dhabi, respectively, connecting to destinations farther east and west. Currently, Royal Jordanian and Turkish Airlines are the only carriers in the Middle East that fly to Israel.
Dubai in particular could benefit, as its airport offers daily flights to more than 250 destinations, said Anne Correa, vice president for airline and airport services at aviation consulting firm Morten Beyer & Agnew.
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