Bahrain sells $2 billion in sukuk and bonds - document - Reuters:
Bahrain sold $2 billion in a dual-tranche bond deal comprising seven-year sukuk and 12-year conventional bonds on Wednesday, its second international debt sale this year, a document showed.
Bahrain sold $1 billion in sukuk at 3.95% and $1 billion in 12-year bonds at 5.45% and received more than $7.6 billion in combined orders for them, the document from one of the banks arranging the deal showed.
Wednesday 9 September 2020
#Oman Plans Debt Sales to Cover Gulf’s Biggest Budget Deficit - Bloomberg
Oman Plans Debt Sales to Cover Gulf’s Biggest Budget Deficit - Bloomberg:
Oman’s government is planning to tap international and local debt markets this year as it seeks to plug the widest budget deficit among Gulf Arab economies.
The sultanate, rated junk by the three major rating companies, hired Bank Muscat for a local-currency Islamic bond offering, according to the Finance Ministry. The sale will target local and small investors through a book-building process, it said in a statement on Wednesday.
The Finance Ministry didn’t provide details of what would be its first international debt offering in over a year.
The biggest Arab oil exporter outside OPEC was among the more vulnerable economies in the six-nation Gulf Cooperation Council even before the virus outbreak and the crash in oil. Oman’s dire financial straits are a major challenge for Sultan Haitham Bin Tariq Al Said, who took power in January.
Oman’s government is planning to tap international and local debt markets this year as it seeks to plug the widest budget deficit among Gulf Arab economies.
The sultanate, rated junk by the three major rating companies, hired Bank Muscat for a local-currency Islamic bond offering, according to the Finance Ministry. The sale will target local and small investors through a book-building process, it said in a statement on Wednesday.
The Finance Ministry didn’t provide details of what would be its first international debt offering in over a year.
The biggest Arab oil exporter outside OPEC was among the more vulnerable economies in the six-nation Gulf Cooperation Council even before the virus outbreak and the crash in oil. Oman’s dire financial straits are a major challenge for Sultan Haitham Bin Tariq Al Said, who took power in January.
#Kuwait Parliament Approves State Budget With $46 Billion Deficit - Bloomberg
Kuwait Parliament Approves State Budget With $46 Billion Deficit - Bloomberg:
Kuwait’s parliament approved the state budget for the current fiscal year, projecting a deficit of 14 billion dinars ($46 billion) after making adjustments to account for lower oil prices and a cut in spending.
Expenditure is now estimated at about 21.6 billion dinars after slashing almost 1 billion dinars since the Finance Ministry unveiled its plan in January. The decrease hasn’t affected subsidies, benefits or employees’ rights, according to lawmaker Adnan AbdulSamad, who heads the budgets committee.
Revenue in the fiscal year that started April 1 is projected to drop by more than half to 7.5 billion dinars, under the assumption that oil will average $30 a barrel. The government originally designed the budget by calculating crude at $55, before the pandemic drove prices lower and added pressure on state finances.
Kuwait’s parliament approved the state budget for the current fiscal year, projecting a deficit of 14 billion dinars ($46 billion) after making adjustments to account for lower oil prices and a cut in spending.
Expenditure is now estimated at about 21.6 billion dinars after slashing almost 1 billion dinars since the Finance Ministry unveiled its plan in January. The decrease hasn’t affected subsidies, benefits or employees’ rights, according to lawmaker Adnan AbdulSamad, who heads the budgets committee.
Revenue in the fiscal year that started April 1 is projected to drop by more than half to 7.5 billion dinars, under the assumption that oil will average $30 a barrel. The government originally designed the budget by calculating crude at $55, before the pandemic drove prices lower and added pressure on state finances.
Oil prices stumble, hit June lows on Saudi price cut, COVID flare-ups - Reuters
Oil prices stumble, hit June lows on Saudi price cut, COVID flare-ups - Reuters:
Oil futures settled sharply lower on Tuesday, with Brent sinking below $40 a barrel for the first time since June and U.S. crude falling nearly 8% after Saudi Arabia cut its October selling prices and COVID-19 cases rebounded in several countries.
Coronavirus infections are rising in India, Great Britain, Spain and several parts of the United States, where the infection rate has not come under control for months. The rebound in illnesses could weaken the global economic recovery and sap fuel demand.
U.S. West Texas Intermediate (WTI) crude CLc1 settled down$3.01 or 7.6%, at $36.76, earlier hitting lows not seen since June 15. Brent crude LCOc1 fell $2.23, or 5.3%, to $39.78 a barrel.
Both oil benchmarks are below trading ranges that had persisted since August. Brent fell for a fifth day and has lost more than 10% since the end of August.
Oil futures settled sharply lower on Tuesday, with Brent sinking below $40 a barrel for the first time since June and U.S. crude falling nearly 8% after Saudi Arabia cut its October selling prices and COVID-19 cases rebounded in several countries.
Coronavirus infections are rising in India, Great Britain, Spain and several parts of the United States, where the infection rate has not come under control for months. The rebound in illnesses could weaken the global economic recovery and sap fuel demand.
U.S. West Texas Intermediate (WTI) crude CLc1 settled down$3.01 or 7.6%, at $36.76, earlier hitting lows not seen since June 15. Brent crude LCOc1 fell $2.23, or 5.3%, to $39.78 a barrel.
Both oil benchmarks are below trading ranges that had persisted since August. Brent fell for a fifth day and has lost more than 10% since the end of August.
U.S., Oman discuss ways to strengthen security, boost economic ties - Reuters
U.S., Oman discuss ways to strengthen security, boost economic ties - Reuters:
U.S. President Donald Trump on Wednesday spoke with Oman’s leader, Sultan Haitham bin Tariq al-Said, about ways to enhance regional security and strengthen economic ties between the two countries, the White House said in a statement.
Trump thanked the Omani leader for his statements of support following a U.S.-brokered agreement by the United Arab Emirates and Israel to normalize relations, the White House said.
“President Trump highlighted the importance of the United States-brokered Abraham Accords announced on August 13th and thanked the Sultan for Oman’s comments in support of the Israel-United Arab Emirates deal,” the statement said.
Oman has been mentioned by Israeli officials as another country that could follow the UAE lead in normalizing ties with Israel, but there was no mention of that in the White House statement.
U.S. President Donald Trump on Wednesday spoke with Oman’s leader, Sultan Haitham bin Tariq al-Said, about ways to enhance regional security and strengthen economic ties between the two countries, the White House said in a statement.
Trump thanked the Omani leader for his statements of support following a U.S.-brokered agreement by the United Arab Emirates and Israel to normalize relations, the White House said.
“President Trump highlighted the importance of the United States-brokered Abraham Accords announced on August 13th and thanked the Sultan for Oman’s comments in support of the Israel-United Arab Emirates deal,” the statement said.
Oman has been mentioned by Israeli officials as another country that could follow the UAE lead in normalizing ties with Israel, but there was no mention of that in the White House statement.
Progress in resolving Gulf Arab rift could come within weeks, U.S. official says - Reuters
Progress in resolving Gulf Arab rift could come within weeks, U.S. official says - Reuters:
There could be some progress within weeks in resolving a three year-long rift between Gulf Arab states, a senior U.S. State Department official said on Wednesday, citing signs of “flexibility” in negotiations.
David Schenker, the department’s top diplomat for the Middle East, was quick to urge caution however, because there hasn’t been any fundamental shift in talks that would quickly lead to a resolution.
The dispute dates from 2017 when the United Arab Emirates (UAE), Saudi Arabia, Bahrain and Egypt imposed a boycott on Qatar, severing diplomatic and transport ties and accusing it of supporting terrorism. Qatar denies allegations of supporting terrorism.
“I don’t want to get into the whole diplomacy in it but there is some movement. I would like to say that it’s going to be a matter of weeks,” Schenker told a virtual event by the Washington-based Brookings Institute.
There could be some progress within weeks in resolving a three year-long rift between Gulf Arab states, a senior U.S. State Department official said on Wednesday, citing signs of “flexibility” in negotiations.
David Schenker, the department’s top diplomat for the Middle East, was quick to urge caution however, because there hasn’t been any fundamental shift in talks that would quickly lead to a resolution.
The dispute dates from 2017 when the United Arab Emirates (UAE), Saudi Arabia, Bahrain and Egypt imposed a boycott on Qatar, severing diplomatic and transport ties and accusing it of supporting terrorism. Qatar denies allegations of supporting terrorism.
“I don’t want to get into the whole diplomacy in it but there is some movement. I would like to say that it’s going to be a matter of weeks,” Schenker told a virtual event by the Washington-based Brookings Institute.
#SaudiArabia to keep pumping despite fall in crude prices | Financial Times
Saudi Arabia to keep pumping despite fall in crude prices | Financial Times:
Saudi Arabia plans to keep oil production steady despite a recent slump in prices, fearing any bigger output cuts would lead rivals in Opec to increase supply.
Five people briefed on Saudi Arabia’s thinking said Brent crude’s more than 10 per cent slide in the past week, dipping below $40 a barrel on Tuesday, was causing concern but not yet panic in Riyadh. The kingdom has led Opec and other producers such as Russia, known together as Opec+, in slashing output in the face of the coronavirus pandemic.
The country fears that if it cuts more output to support prices, other countries will take advantage and produce greater amounts, jeopardising the unity of the Opec+ group that enacted record supply cuts in April as demand collapsed.
“[Saudi Arabia] is not seeing much of a concern yet”, said one of these people, who added there was not a need for a “bigger cut” at this point. “All the issues we see today are about sentiment.”
Saudi Arabia plans to keep oil production steady despite a recent slump in prices, fearing any bigger output cuts would lead rivals in Opec to increase supply.
Five people briefed on Saudi Arabia’s thinking said Brent crude’s more than 10 per cent slide in the past week, dipping below $40 a barrel on Tuesday, was causing concern but not yet panic in Riyadh. The kingdom has led Opec and other producers such as Russia, known together as Opec+, in slashing output in the face of the coronavirus pandemic.
The country fears that if it cuts more output to support prices, other countries will take advantage and produce greater amounts, jeopardising the unity of the Opec+ group that enacted record supply cuts in April as demand collapsed.
“[Saudi Arabia] is not seeing much of a concern yet”, said one of these people, who added there was not a need for a “bigger cut” at this point. “All the issues we see today are about sentiment.”
Middle East funds in talks to buy stakes in Ambani’s Reliance Retail | Financial Times
Middle East funds in talks to buy stakes in Ambani’s Reliance Retail | Financial Times:
Middle East sovereign wealth funds including the Abu Dhabi Investment Authority and Saudi Arabia’s Public Investment Fund are in talks to buy stakes in Reliance Retail, the arm of Indian billionaire Mukesh Ambani’s empire that is seeking to raise $5.7bn by selling new shares.
Adia is in discussions about an investment of $750m at a valuation of roughly $57bn, according to people familiar with the matter, while the PIF could funnel as much as $1.5bn into the entity controlled by Mr Ambani’s oil-to-telecoms conglomerate Reliance Industries. Mubadala may also take a stake.
Adia, Mubadala and PIF declined to comment. Reliance did not immediately respond to a request for comment.
The new round of fundraising comes only weeks after Mr Ambani, Asia’s richest man, secured $20bn in investments for his digital business Jio Platforms from 13 global investors. Some of these investors were offered the first opportunity to invest in the retail business.
Middle East sovereign wealth funds including the Abu Dhabi Investment Authority and Saudi Arabia’s Public Investment Fund are in talks to buy stakes in Reliance Retail, the arm of Indian billionaire Mukesh Ambani’s empire that is seeking to raise $5.7bn by selling new shares.
Adia is in discussions about an investment of $750m at a valuation of roughly $57bn, according to people familiar with the matter, while the PIF could funnel as much as $1.5bn into the entity controlled by Mr Ambani’s oil-to-telecoms conglomerate Reliance Industries. Mubadala may also take a stake.
Adia, Mubadala and PIF declined to comment. Reliance did not immediately respond to a request for comment.
The new round of fundraising comes only weeks after Mr Ambani, Asia’s richest man, secured $20bn in investments for his digital business Jio Platforms from 13 global investors. Some of these investors were offered the first opportunity to invest in the retail business.
#UAE fund invests in Israeli fintech firm that offers loans to SMEs, freelancers | ZAWYA MENA Edition
UAE fund invests in Israeli fintech firm that offers loans to SMEs, freelancers | ZAWYA MENA Edition:
New York-headquartered Salaryo, a fintech start-up that provides financing for small business and freelancers, has raised $5.8 million in a new funding round that includes Dubai-based KEN Investments.
The fresh capital brings the company’s total funding to $12 million, which will be used to scale up lending activity and launch new business banking products in 2021, the company said in a statement on Wednesday.
The other investors who have participated in the latest equity round are Variant Investments, Techstars Ventures and venture capital investor Michael Ullmann’s investment group.
New York-headquartered Salaryo, a fintech start-up that provides financing for small business and freelancers, has raised $5.8 million in a new funding round that includes Dubai-based KEN Investments.
The fresh capital brings the company’s total funding to $12 million, which will be used to scale up lending activity and launch new business banking products in 2021, the company said in a statement on Wednesday.
The other investors who have participated in the latest equity round are Variant Investments, Techstars Ventures and venture capital investor Michael Ullmann’s investment group.
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #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.
Wizz Air to Delay Gulf Startup If #AbuDhabi Doesn’t Reopen Soon - Bloomberg
Wizz Air to Delay Gulf Startup If Abu Dhabi Doesn’t Reopen Soon - Bloomberg:
Wizz Air Holdings Plc said it will delay the Oct. 1 launch of its new airline in Abu Dhabi if a ban on foreign visitors isn’t relaxed soon.
The deadline for a go-decision is fast approaching, and it’s likely that flights will be pushed back by a few weeks because of the health-related restrictions, Wizz Chief Executive Officer Jozsef Varadi said in an interview.
“We have one aircraft already there and another arriving in the next few days, but really we need Abu Dhabi to open up so that people can actually fly,” he said by phone from Budapest, where Wizz is based.
Flights to Abu Dhabi are currently limited by the government to returning local residents, and then only if they’ve recently tested negative for Covid-19, with people also required to self-quarantine for 14 days on arrival. That’s stifling interest from the tourists who are expected to account for the bulk of demand at the new carrier, Varadi said.
Wizz Air Holdings Plc said it will delay the Oct. 1 launch of its new airline in Abu Dhabi if a ban on foreign visitors isn’t relaxed soon.
The deadline for a go-decision is fast approaching, and it’s likely that flights will be pushed back by a few weeks because of the health-related restrictions, Wizz Chief Executive Officer Jozsef Varadi said in an interview.
“We have one aircraft already there and another arriving in the next few days, but really we need Abu Dhabi to open up so that people can actually fly,” he said by phone from Budapest, where Wizz is based.
Flights to Abu Dhabi are currently limited by the government to returning local residents, and then only if they’ve recently tested negative for Covid-19, with people also required to self-quarantine for 14 days on arrival. That’s stifling interest from the tourists who are expected to account for the bulk of demand at the new carrier, Varadi said.
Middle East Deals: #Saudi Binladin to Hire Advisers for $15 Billion Debt Revamp - Bloomberg
Middle East Deals: Saudi Binladin to Hire Advisers for $15 Billion Debt Revamp - Bloomberg:
Saudi Binladin Group plans to hire more advisers to accelerate one of the Middle East’s biggest corporate-debt revamps and tackle its estimated $15 billion debt pile.
The kingdom’s top builder reached out to restructuring specialists across the Persian Gulf to assist with reorganizing the business, a spokesman for Jeddah-based SBG said in a text message. The consultants will assist Houlihan Lokey Inc., which was appointed in April to manage the group’s turnaround.
“Houlihan Lokey will be working with various consultants to review the business and charter a way forward for the newly capitalized SBG,” the company said in a statement.
The conglomerate, founded in 1931, was for decades the royal family’s favored builder until a deadly accident in the Islamic Holy city of Mecca five years ago resulted in SBG being banned from taking on new projects for about eight months. Its woes were compounded as work across the Middle East dried up in the wake of lower oil prices and the economic fallout of the coronavirus.
Saudi Binladin Group plans to hire more advisers to accelerate one of the Middle East’s biggest corporate-debt revamps and tackle its estimated $15 billion debt pile.
The kingdom’s top builder reached out to restructuring specialists across the Persian Gulf to assist with reorganizing the business, a spokesman for Jeddah-based SBG said in a text message. The consultants will assist Houlihan Lokey Inc., which was appointed in April to manage the group’s turnaround.
“Houlihan Lokey will be working with various consultants to review the business and charter a way forward for the newly capitalized SBG,” the company said in a statement.
The conglomerate, founded in 1931, was for decades the royal family’s favored builder until a deadly accident in the Islamic Holy city of Mecca five years ago resulted in SBG being banned from taking on new projects for about eight months. Its woes were compounded as work across the Middle East dried up in the wake of lower oil prices and the economic fallout of the coronavirus.
#Saudi Central bank governor says outlook for Saudi economy is uncertain - Reuters
Saudi Central bank governor says outlook for Saudi economy is uncertain - Reuters:
The outlook for Saudi Arabia’s economy this year is uncertain, the kingdom’s central bank governor said on Wednesday, as the oil exporter navigates the effects of low oil prices and the coronavirus pandemic.
Ahmed al-Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA), speaking to a virtual Euromoney event, also reaffirmed the bank’s commitment to the local currency peg to the U.S. dollar.
The outlook for Saudi Arabia’s economy this year is uncertain, the kingdom’s central bank governor said on Wednesday, as the oil exporter navigates the effects of low oil prices and the coronavirus pandemic.
Ahmed al-Kholifey, governor of the Saudi Arabian Monetary Authority (SAMA), speaking to a virtual Euromoney event, also reaffirmed the bank’s commitment to the local currency peg to the U.S. dollar.
Israel's Hapoalim expects #UAE bank ties to follow normalisation - Reuters
Israel's Hapoalim expects UAE bank ties to follow normalisation - Reuters:
The UAE and Israel are due to sign the agreement, brokered by the United States, on Sept. 15 at a ceremony held by U.S. President Donald Trump.
The three sides have talked up the economic opportunities that normalisation would bring and several business cooperation agreements have already been signed.
Hapoalim CEO Dov Kotler said a correspondent banking relationship facilitating direct money transfers between the countries would help develop trade and business ties.
“I believe that after the governments sign the agreement next week we will be able to work with the banking system here,” he told Reuters during a visit to the UAE.
The UAE and Israel are due to sign the agreement, brokered by the United States, on Sept. 15 at a ceremony held by U.S. President Donald Trump.
The three sides have talked up the economic opportunities that normalisation would bring and several business cooperation agreements have already been signed.
Hapoalim CEO Dov Kotler said a correspondent banking relationship facilitating direct money transfers between the countries would help develop trade and business ties.
“I believe that after the governments sign the agreement next week we will be able to work with the banking system here,” he told Reuters during a visit to the UAE.
#Dubai Recovery Intact But Momentum Slows and Job Cuts Get Worse - Bloomberg
Dubai Recovery Intact But Momentum Slows and Job Cuts Get Worse - Bloomberg:
Dubai businesses sustained a recovery from the global pandemic even as they cut jobs at a faster rate and growth in demand slowed.
A measure of non-oil private sector activity in the Middle East’s commercial hub dropped last month for the first time since April but remained above the 50 mark that separates growth from contraction, according to IHS Markit’s Purchasing Managers’ Index. Workforce numbers declined for a sixth month, according to a report on Wednesday.
“Dubai’s non-oil economy saw a disappointing slowdown in growth in August,” said David Owen, economist at IHS Markit. “Business activity rose solidly, but the expansion was markedly weaker than in July, which will dent hopes of a swift recovery from the Covid-19 pandemic.”
Dubai businesses sustained a recovery from the global pandemic even as they cut jobs at a faster rate and growth in demand slowed.
A measure of non-oil private sector activity in the Middle East’s commercial hub dropped last month for the first time since April but remained above the 50 mark that separates growth from contraction, according to IHS Markit’s Purchasing Managers’ Index. Workforce numbers declined for a sixth month, according to a report on Wednesday.
“Dubai’s non-oil economy saw a disappointing slowdown in growth in August,” said David Owen, economist at IHS Markit. “Business activity rose solidly, but the expansion was markedly weaker than in July, which will dent hopes of a swift recovery from the Covid-19 pandemic.”
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #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.
#SaudiArabia’s Stretched Finances Entangle Cash Cow Aramco - Bloomberg
Saudi Arabia’s Stretched Finances Entangle Cash Cow Aramco - Bloomberg:
The world’s biggest oil company is getting squeezed by its main shareholder, the Saudi Arabian government.
Even with crude dropping to $40 a barrel this week and its cash flow plunging, Saudi Aramco is trying to pay a $75 billion dividend this year, almost all of it to the state. Concerns are mounting, including among global fund managers who bought into the company during a record initial public offering last December, that Aramco is putting strategic projects on ice and racking up debt too quickly.
Aramco has been the country’s cash cow for decades. But the pressure it faces has been thrown into sharper relief by the coronavirus-induced collapse in energy demand -- Brent crude fell another 5% on Tuesday -- and now that it’s a listed firm with shareholders from New York to Tokyo.
Crown Prince Mohammed bin Salman, the 35-year-old de facto ruler, has pledged to diversify the kingdom from oil and spend billions developing everything from futuristic cities to tourism and financial services. For that, he needs Aramco’s money.
The world’s biggest oil company is getting squeezed by its main shareholder, the Saudi Arabian government.
Even with crude dropping to $40 a barrel this week and its cash flow plunging, Saudi Aramco is trying to pay a $75 billion dividend this year, almost all of it to the state. Concerns are mounting, including among global fund managers who bought into the company during a record initial public offering last December, that Aramco is putting strategic projects on ice and racking up debt too quickly.
Aramco has been the country’s cash cow for decades. But the pressure it faces has been thrown into sharper relief by the coronavirus-induced collapse in energy demand -- Brent crude fell another 5% on Tuesday -- and now that it’s a listed firm with shareholders from New York to Tokyo.
Crown Prince Mohammed bin Salman, the 35-year-old de facto ruler, has pledged to diversify the kingdom from oil and spend billions developing everything from futuristic cities to tourism and financial services. For that, he needs Aramco’s money.
#Dubai-listed Tabreed plans to sell $1bln bonds | ZAWYA MENA Edition
Dubai-listed Tabreed plans to sell $1bln bonds | ZAWYA MENA Edition:
National Central Cooling Company (Tabreed) has plans to sell bonds, or sukuk, worth $1 billion to UAE investors, it has been confirmed.
In a meeting on Tuesday, the Dubai-listed firm’s board of directors passed a resolution to authorise the issuance of the financial instruments in one or more tranches, to be offered to qualified investors.
The bonds, however, will not be for public subscription and not to be listed on any financial market in the UAE, Tabreed said in a bourse filing on Wednesday
They will also be issued with a tenor of up to 30 years and at a profit rate not exceeding the prevailing market rate available to companies with the same credit rating as Tabreed.
National Central Cooling Company (Tabreed) has plans to sell bonds, or sukuk, worth $1 billion to UAE investors, it has been confirmed.
In a meeting on Tuesday, the Dubai-listed firm’s board of directors passed a resolution to authorise the issuance of the financial instruments in one or more tranches, to be offered to qualified investors.
The bonds, however, will not be for public subscription and not to be listed on any financial market in the UAE, Tabreed said in a bourse filing on Wednesday
They will also be issued with a tenor of up to 30 years and at a profit rate not exceeding the prevailing market rate available to companies with the same credit rating as Tabreed.
#Dubai non-oil private sector growth slows in August: PMI - Reuters
Dubai non-oil private sector growth slows in August: PMI - Reuters:
Dubai’s non-oil private sector expanded marginally in August, its second straight month of growth, though at a slower pace than in July, while weak demand led to a sixth month of job cuts, a survey showed on Wednesday.
The seasonally adjusted IHS Markit Dubai Purchasing Managers’ Index (PMI) fell to 50.9 in August from 51.7 in July, slightly above the mark that separates growth from contraction.
In June the index was at 50.0, emerging from three consecutive months of contraction.
“Dubai’s non-oil economy saw a disappointing slowdown in growth in August, as the PMI fell for the first time since April,” said David Owen, economist at survey complier IHS Markit.
Dubai’s non-oil private sector expanded marginally in August, its second straight month of growth, though at a slower pace than in July, while weak demand led to a sixth month of job cuts, a survey showed on Wednesday.
The seasonally adjusted IHS Markit Dubai Purchasing Managers’ Index (PMI) fell to 50.9 in August from 51.7 in July, slightly above the mark that separates growth from contraction.
In June the index was at 50.0, emerging from three consecutive months of contraction.
“Dubai’s non-oil economy saw a disappointing slowdown in growth in August, as the PMI fell for the first time since April,” said David Owen, economist at survey complier IHS Markit.
Oil extends decline as demand worries mount - Reuters
Oil extends decline as demand worries mount - Reuters:
Oil futures fell again on Wednesday after a sharp slide in the previous session, as a rebound in COVID-19 cases in some countries undermined hopes for a steady recovery in global demand.
Brent crude LCOc1 was down 19 cents, or 0.5%, at $39.59 a barrel by 0656 GMT after dropping more than 5% on Tuesday to fall below $40 a barrel for the first time since June.
U.S. crude CLc1 was down 24 cents, or 0.7%, at $36.52 a barrel, having fallen nearly 8% in the previous session.
Both major oil benchmarks are trading at around three-month lows.
The global health crisis continues to flare unabated with coronavirus cases rising in India, Great Britain, Spain and several parts of the United States.
Oil futures fell again on Wednesday after a sharp slide in the previous session, as a rebound in COVID-19 cases in some countries undermined hopes for a steady recovery in global demand.
Brent crude LCOc1 was down 19 cents, or 0.5%, at $39.59 a barrel by 0656 GMT after dropping more than 5% on Tuesday to fall below $40 a barrel for the first time since June.
U.S. crude CLc1 was down 24 cents, or 0.7%, at $36.52 a barrel, having fallen nearly 8% in the previous session.
Both major oil benchmarks are trading at around three-month lows.
The global health crisis continues to flare unabated with coronavirus cases rising in India, Great Britain, Spain and several parts of the United States.
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