#Saudi Firms Start Talks to Form $11 Billion Chemicals Maker - Bloomberg

Saudi Firms Start Talks to Form $11 Billion Chemicals Maker - Bloomberg:

Saudi Industrial Investment Group and National Petrochemical Co. started talks to merge, potentially creating a firm with $11 billion in assets as Middle Eastern energy companies assess their options in a lower oil-price environment. The shares climbed.

The discussions are at an initial stage and no agreement has been reached, the companies said Sunday. Saudi Industrial owns 50% of National Petrochemical, and they had attempted a merger nine years ago.

National Petrochemical’s shares closed at the highest level since 2014, giving it a market value of about 15 billion riyals ($4 billion). Saudi Industrial ended 5.5% higher in Riyadh.

The possible merger comes as energy companies in countries such as Saudi Arabia, Qatar and the United Arab Emirates restructure their operations to cope with a market that’s under strain from lower demand.

#Saudi up on petrochemical shares; Egypt extends losses | Reuters

Saudi up on petrochemical shares; Egypt extends losses | Reuters:

Saudi Arabian shares ended higher on Sunday as Saudi Industrial Investment Group 2250.SE and National Petrochemical Company 2002.SE surged on news the two were in merger talks, while Egypt's blue-chip index extended losses for a second session.

Saudi Arabia's benchmark index .TASI rose 0.3%, with SIIG 2250.SE advancing 5.5% and National Petrochemical Company 2002.SE jumping 6.8%.

A deal between the two would mark further consolidation in the Saudi petrochemicals sector after oil giant Saudi Aramco 2222.SE bought a 70% stake in Saudi Basic Industries 2010.SE in June. Saudi Aramco 2222.SE was up 0.8%.

Dubai's main share index .DFMGI reversed earlier losses to close flat. Emirates NBD Bank ENBD.DU dropped 0.9%, while sharia-compliant lender Dubai Islamic Bank DISB.DU was down 0.7%.

Logistics firm Aramex ARMX.DU however climbed 3.4%, extending gains from the previous session. On Thursday, Abu Dhabi-backed holding company ADQ said it had acquired about a 22% stake in Aramex, making it the firm's biggest shareholder.

The Abu Dhabi index .ADI gained 0.8%, buoyed by a 2.2% rise in the country's largest lender First Abu Dhabi Bank FAB.AD and a 1.7% increase in Abu Dhabi Islamic Bank ADIB.AD.

Last week, ADIB signed a memorandum of understanding with Israel's Bank Leumi LUMI.TA to explore areas for future cooperation in the United Arab Emirates, Israel and other international markets.
In Qatar, the index .QSI slipped 0.3%, hurt by a 1.7% decline in petrochemical maker Industries Qatar IQCD.QA.

Iran's rial hits record low as tension spikes with the U.S. | Reuters

Iran's rial hits record low as tension spikes with the U.S. | Reuters:

The Iranian rial fell to a record low against the U.S. dollar on the unofficial market on Sunday, a day after the U.S. President Donald Trump’s administration declared all United Nations sanctions on Tehran had been restored.

The dollar was offered for as much as 273,000 rials, up from 267,800 rials on Saturday, according to foreign exchange site Bonbast.com, which tracks the unofficial market.

Iran has dismissed the U.S. move as “void and illegal” and U.N. Secretary-General Antonio Guterres told the Security Council on Saturday he cannot take any action on the U.S. declaration because “there would appear to be uncertainty” on the issue.

The three European parties to the nuclear deal - France, Britain and Germany - said in a statement on Sunday that any decision or action taken to reimpose U.N. sanctions “would be incapable of legal effect” because Washington used a mechanism agreed under a 2015 nuclear deal between Iran and world powers, which the United States quit in 2018.

OPEC’s Libya Edges Closer to Reopening Battered Oil Sector - Bloomberg

OPEC’s Libya Edges Closer to Reopening Battered Oil Sector - Bloomberg:

Libya moved closer to reopening its battered oil industry after the state energy firm said it would resume exports, though only from fields and ports that are free of foreign mercenaries and other fighters.

The National Oil Corp. is ending force majeure -- a legal status protecting a party if it can’t fulfill a contract for reasons beyond its control -- at “secure” facilities and has told companies to resume production. The shutdown would continue elsewhere until militias leave, the NOC said in a statement Saturday.

Some firms that use or operate the OPEC member’s eastern ports announced they were restarting work. They included Arabian Gulf Oil Co., which can produce almost 300,000 barrels a day and exports them from Hariga port, and Sirte Oil & Gas Production and Processing Co., which runs the Brega terminal.

ADNOC partners with Mubadala, ENEC to drive In-Country Value for #UAE | ZAWYA MENA Edition

ADNOC partners with Mubadala, ENEC to drive In-Country Value for UAE | ZAWYA MENA Edition:

The Abu Dhabi National Oil Company, ADNOC, today signed two framework agreements with Mubadala Investment Company and Emirates Nuclear Energy Corporation, ENEC, to partner on ADNOC’s In-Country Value, ICV, programme following the success of the programme which has driven more than AED44 billion ($12 billion) back into the UAE's economy and created over 1,500 private-sector jobs for Emiratis since it was launched in January 2018.

The partnership brings together three of the UAE’s leading companies to cooperate in further driving ICV for the country. It expands the number of entities that ADNOC has partnered with to adopt its ICV programme following similar agreements with the Abu Dhabi Department for Economic Development, Abu Dhabi Ports, and Aldar Properties. 


These framework agreements also reinforce the commitment of ADNOC, Mubadala, and ENEC to enabling the growth and diversification of the UAE’s economy.

Under the terms of the agreements, ADNOC, Mubadala, and ENEC will explore potential opportunities for collaboration in creating additional skilled employment opportunities for Emiratis in the private sector and sourcing goods and services within the UAE.

US and Middle East: strongmen contemplate post-Trump era | Financial Times

US and Middle East: strongmen contemplate post-Trump era | Financial Times:

It took Donald Trump less than 48 hours to lay the foundations of a radical shift in US Middle East policy and ingratiate himself with some of the region’s most powerful leaders. On visits to Saudi Arabia and Israel — his first overseas as US president in May 2017 — he set the tone for the transactional and personality-based relationship that has characterised his dealings with the region’s strongmen.

He made it clear that Iran was in his crosshairs, arms sales would be a priority and human rights concerns would be consigned to a proverbial dustbin telling a summit of Muslim leaders in Riyadh: “We are not here to lecture.” It was welcomed by the US’s traditional Middle East allies, Saudi Arabia, the United Arab Emirates, Egypt and Israel. All were desperate to see new US policies after years of rising anger with the administration of Barack Obama — not least for signing the 2015 nuclear deal with Tehran. 


Mr Trump could yet win re-election: few analysts in Washington have written him off. But with the president trailing badly in the polls, the region’s leaders are being forced to contemplate the prospect of Democrat nominee Joe Biden entering the White House, upending the president’s policies and setting a new course for relations with the Gulf.

For those who invested heavily in their personal relationship with Mr Trump, notably Saudi Crown Prince Mohammed bin Salman and de facto UAE leader Sheikh Mohammed bin Zayed, a Biden victory in November would usher in a fresh period of uncertainty and unease. Some even ask whether a new president could cold shoulder states as a punishment because of their closeness to the Trump administration. 

European, Middle Eastern & African Stocks - Bloomberg #UAE close; #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.

Kuwaiti Banks Push Index Higher to Lead Mideast Gains: Inside EM - Bloomberg

Kuwaiti Banks Push Index Higher to Lead Mideast Gains: Inside EM - Bloomberg:

Kuwait’s main equity index led gains in the Gulf as banking shares including Kuwait Finance House KSCP and National Bank of Kuwait SAKP pushed it higher.

The Premier Market index of the biggest and most liquid shares in Kuwait rose as much as 1.3% on Sunday.

Index provider MSCI Inc.’s review of its benchmarks in November will be a driving factor for Kuwait’s stock market for the next two months, CI Capital Senior Analyst Sara Boutros said. Kuwait is on course for likely inclusion in MSCI’s emerging markets index.

Another catalyst is in Kuwait passing a debt law that would “help the government fund the budget deficit, while at the same time, possibly creating an interesting investment opportunity for the banks,” the CI Capital analyst said.

“Some banking stocks are trading at or close to their 10-year lows,” such as Gulf Bank and Burgan Bank, Boutros said. “These names are starting to attract some traction, given that they are laggards.”

Gauges in Abu Dhabi and Bahrain made gains while those in Dubai, Egypt and Qatar traded lower.

#Dubai's Habtoor Group to open representative office in Israel | Reuters

Dubai's Habtoor Group to open representative office in Israel | Reuters:

Dubai conglomerate Al Habtoor Group is to open a representative office in Israel, it said on Sunday.

The United Arab Emirates and Israel last week agreed to establish bilateral diplomatic and trade ties, which officials have said would create significant economic opportunities.

The family-owned conglomerate portfolio covers the hospitality, construction, education and automotive sectors.

Habtoor Group, headed by prominent Emirati businessman Khalaf Ahmad al-Habtoor, is in talks with Israeli airline Israir to launch direct commercial flights to the UAE.

“We are preparing to reveal a few collaborations in the coming days,” he said in a statement.

#SaudiArabia's SIIG and Petrochem in merger talks | Reuters

Saudi Arabia's SIIG and Petrochem in merger talks | Reuters:

Saudi Arabian petrochemicals companies Saudi Industrial Investment Group (SIIG) 2250.SE and the National Petrochemical Company (Petrochem) 2002.SE have begun talks over a potential merger, they said on Sunday.

A deal would mark further consolidation in the Saudi petrochemicals sector after oil giant Saudi Aramco 2222.SE bought a 70% stake in Saudi Basic Industries 2010.SE in June.

The SIIG and Petrochem boards have approved initial discussions to study the feasibility of a merger but no agreement has been reached on any final structure of a merged entity, the companies said in separate statements.

SIIG owns 50% of Petrochem but the two companies are similar in size, suggesting a deal would be a merger of near equals.

Mideast Stocks - Petchems lift #Saudi index; other bourses mixed | ZAWYA MENA Edition

Mideast Stocks - Petchems lift Saudi index; other bourses mixed | ZAWYA MENA Edition:

The Saudi Arabia stock market rose on Sunday, helped by gains in National Petrochemical Company and Saudi Industrial Investment Group (SIIG) after the duo said they were in merger talks, while other Gulf markets were subdued in early trade.

The kingdom's benchmark index rose 0.3%, with SIIG jumping 6.5% while National Petrochemical surged by 8.7%.

Dubai's main index lost 0.7%, driven down by a 1.8% fall in Emirates NBD Bank and a 0.9% drop for Dubai Islamic Bank.

The Abu Dhabi index eased 0.1% as telecoms company Etisalat dropped 1.4%.

In Qatar, the index added 0.2%, with United Development Company advancing 7.1% and Qatar Fuel up 1.9%.