Union Properties Okays sale of 40% stake in Dubai Autodrome for Dh400m | Property – Gulf News:
Union Properties on Wednesday said it has approved an offer of Dh400 million for a 40 per cent stake in the Dubai Autodrome, UAE’s first fully integrated motor sports facility.
The real-estate developer also approved the acquisition of an existing investment property, valued at Dh250 million, in Dubai’s Business Bay area.
The company said its board of directors “will continue to evaluate and negotiate the acquisition of various other real estate assets in the UAE.”
In August, the Group said it had negotiated and finalised a comprehensive restructuring of the largest part of its outstanding debt with various financial institutions, which will ultimately improve its overall cash-flow profile.
Union reported a net loss of Dh 38.56 million for the second quarter of 2020, lower by 68 per cent compared to the previous quarter. The company, which has developed projects such as MotorCity and Green Community, attributed the reduction in losses to drastic cost cutting efforts.
Wednesday, 30 September 2020
#UAE News: #AbuDhabi's Mubadala Buys Stake in Silver Lake, to Invest $2 Billion - Bloomberg
UAE News: Abu Dhabi's Mubadala Buys Stake in Silver Lake, to Invest $2 Billion - Bloomberg:
Abu Dhabi wealth fund Mubadala Investment Co. is taking a stake of about 5% in private equity firm Silver Lake and investing $2 billion in a technology fund run by the firm as part of its drive to diversify away from oil and gas.
Mubadala said it would buy the stake in Silver Lake from Dyal, a unit of Neuberger Berman. No terms were disclosed. The deal is the latest move in the Abu Dhabi sovereign wealth fund’s drive to expand its technology portfolio.
Silver Lake has been one of most active private equity firms during the coronavirus pandemic and bought stakes this year in companies including Expedia Group Inc., Twitter Inc. and Airbnb Inc. The firm has also put money into online payment provider Klarna AB and Alphabet Inc.’s autonomous driving unit.
Mubadala, which manages $232 billion in assets, is among Gulf sovereign funds plowing their oil and natural gas wealth into technology to lessen their reliance on crude and help diversify their economies. The fund has repeatedly said over the past few years that it’s looking to boost its investments in technology.
Abu Dhabi wealth fund Mubadala Investment Co. is taking a stake of about 5% in private equity firm Silver Lake and investing $2 billion in a technology fund run by the firm as part of its drive to diversify away from oil and gas.
Mubadala said it would buy the stake in Silver Lake from Dyal, a unit of Neuberger Berman. No terms were disclosed. The deal is the latest move in the Abu Dhabi sovereign wealth fund’s drive to expand its technology portfolio.
Silver Lake has been one of most active private equity firms during the coronavirus pandemic and bought stakes this year in companies including Expedia Group Inc., Twitter Inc. and Airbnb Inc. The firm has also put money into online payment provider Klarna AB and Alphabet Inc.’s autonomous driving unit.
Mubadala, which manages $232 billion in assets, is among Gulf sovereign funds plowing their oil and natural gas wealth into technology to lessen their reliance on crude and help diversify their economies. The fund has repeatedly said over the past few years that it’s looking to boost its investments in technology.
OPEC September oil output rises for third month on Libya restart, Iran | Reuters
OPEC September oil output rises for third month on Libya restart, Iran | Reuters:
OPEC oil output has risen for a third month in September, a Reuters survey found, as a restart of some Libyan installations and higher Iranian exports offset strong adherence by other members to an OPEC-led supply cut deal.
The 13-member Organization of the Petroleum ExportingCountries pumped 24.38 million bpd on average in September, thesurvey found, up 160,000 bpd from August’s revised figure and a further boost from the three-decade low reached in June.
An increase in OPEC supply since August and concerns of a new demand hit as coronavirus cases rise have weighed on oil prices, which have fallen 10% in September to near $40 a barrel. OPEC is monitoring Libyan output, which has failed to sustain restarts in the past.
“While demand struggles to keep up, supply is rising,” said Paola Rodriguez-Masiu, analyst at Rystad Energy. “Libya’s production is coming back.”
OPEC oil output has risen for a third month in September, a Reuters survey found, as a restart of some Libyan installations and higher Iranian exports offset strong adherence by other members to an OPEC-led supply cut deal.
The 13-member Organization of the Petroleum ExportingCountries pumped 24.38 million bpd on average in September, thesurvey found, up 160,000 bpd from August’s revised figure and a further boost from the three-decade low reached in June.
An increase in OPEC supply since August and concerns of a new demand hit as coronavirus cases rise have weighed on oil prices, which have fallen 10% in September to near $40 a barrel. OPEC is monitoring Libyan output, which has failed to sustain restarts in the past.
“While demand struggles to keep up, supply is rising,” said Paola Rodriguez-Masiu, analyst at Rystad Energy. “Libya’s production is coming back.”
Arabtec shareholders vote to liquidate the #Dubai construction firm - email | Reuters
Arabtec shareholders vote to liquidate the Dubai construction firm - email | Reuters:
Arabtec Holding shareholders authorised the board of the Dubai-listed construction company on Wednesday to file for liquidation due to its untenable financial position following the fallout from the coronavirus pandemic, an internal company email said.
Shareholders also authorised Arabtec to appoint AlixPartners and Matthew Wilde, or any other person or persons the board considered fit, as liquidator, two sources told Reuters.
“Unfortunately, against a backdrop of adverse market conditions, we regret to inform you that Arabtec shareholders voted to adopt a plan of liquidation and dissolution due to the company’s untenable financial situation,” the company said in the email seen by Reuters.
Arabtec could not be immediately reached for comment.
Arabtec Holding shareholders authorised the board of the Dubai-listed construction company on Wednesday to file for liquidation due to its untenable financial position following the fallout from the coronavirus pandemic, an internal company email said.
Shareholders also authorised Arabtec to appoint AlixPartners and Matthew Wilde, or any other person or persons the board considered fit, as liquidator, two sources told Reuters.
“Unfortunately, against a backdrop of adverse market conditions, we regret to inform you that Arabtec shareholders voted to adopt a plan of liquidation and dissolution due to the company’s untenable financial situation,” the company said in the email seen by Reuters.
Arabtec could not be immediately reached for comment.
#Qatar’s Looming Decisions in LNG Expansion | Center for Strategic and International Studies
Qatar’s Looming Decisions in LNG Expansion | Center for Strategic and International Studies:
Qatar is moving forward with a massive liquefied natural gas (LNG) capacity expansion in spite of the current glut in the market and longer-term questions over the role of gas in the energy transition. Qatar is betting that it can dissuade other prospective LNG suppliers and outcompete them through scale, low production costs, and co-production of condensates and liquefied petroleum gas (LPG). In launching this expansion, Qatar faces a number of looming questions—and its choices have implications for the entire LNG industry.
Qatar is moving forward with a massive liquefied natural gas (LNG) capacity expansion in spite of the current glut in the market and longer-term questions over the role of gas in the energy transition. Qatar is betting that it can dissuade other prospective LNG suppliers and outcompete them through scale, low production costs, and co-production of condensates and liquefied petroleum gas (LPG). In launching this expansion, Qatar faces a number of looming questions—and its choices have implications for the entire LNG industry.
Breakneck Expansion or Moderate PaceAlready the world’s largest LNG exporter, Qatar declared a moratorium on new developments at its North Field in 2005 in an effort to ensure the long-term health of the field. By the time Qatar ended the moratorium in 2017, the LNG world had changed. Qatar still held a commanding position, but growing volumes from Australia, the United States, and other suppliers chipped away at its market share and contributed to a global LNG glut. These market developments convinced Qatar to reenter the fray. In 2017, Qatar declared plans to build four new LNG trains, and last November, Qatar Petroleum (QP) chief executive Saad al-Kaabi announced that a significant gas reserve addition would support a six-train expansion to ultimately raise capacity from 77 million tons per year (mmtpa) to 126 mmtpa.
QP seems undeterred by the longer-term challenges for gas. The market already appears well-supplied for at least the next few years, and in 2019, companies took final investment decisions (FID) on more than 70 mmtpa of LNG, far exceeding the previous annual record. But QP is a strong believer in long-term gas demand. It is confident in its low production costs and established relationships with major buyers, and sees advantages in moving ahead with the mega-expansion while other major projects have been deferred and better terms can be negotiated from service companies. Last, QP could perceive some advantages in lower gas prices, which bolster the fuel’s competitiveness against coal and renewables.
QP seems undeterred by the longer-term challenges for gas. The market already appears well-supplied for at least the next few years, and in 2019, companies took final investment decisions (FID) on more than 70 mmtpa of LNG, far exceeding the previous annual record. But QP is a strong believer in long-term gas demand. It is confident in its low production costs and established relationships with major buyers, and sees advantages in moving ahead with the mega-expansion while other major projects have been deferred and better terms can be negotiated from service companies. Last, QP could perceive some advantages in lower gas prices, which bolster the fuel’s competitiveness against coal and renewables.
#SaudiArabia to cut spending next year, sees economy bouncing back | Reuters
Saudi Arabia to cut spending next year, sees economy bouncing back | Reuters:
Saudi Arabia plans to cut spending by 7.5% in next year’s budget to 990 billion riyals ($263.94 billion) from this year’s 1.07 trillion riyals ($285.27 billion), according to a preliminary budget statement published on Wednesday.
But despite a significant drop in revenue this year and a slowdown in economic activity, it expects the economy to bounce back to growth next year as it improves its management of the coronavirus crisis.
The retrenchment in spending comes as the world’s largest oil exporter faces an economic contraction caused by the pandemic, a drop in oil prices, and crude production cuts.
For next year, the government “seeks to preserve the fiscal and economic gains achieved in recent years and to achieve the goals of stability, fiscal discipline, and spending efficiency,” the ministry of finance said in the statement.
Saudi Arabia plans to cut spending by 7.5% in next year’s budget to 990 billion riyals ($263.94 billion) from this year’s 1.07 trillion riyals ($285.27 billion), according to a preliminary budget statement published on Wednesday.
But despite a significant drop in revenue this year and a slowdown in economic activity, it expects the economy to bounce back to growth next year as it improves its management of the coronavirus crisis.
The retrenchment in spending comes as the world’s largest oil exporter faces an economic contraction caused by the pandemic, a drop in oil prices, and crude production cuts.
For next year, the government “seeks to preserve the fiscal and economic gains achieved in recent years and to achieve the goals of stability, fiscal discipline, and spending efficiency,” the ministry of finance said in the statement.
MIDEAST STOCKS- #Dubai leads gains in Gulf as financial shares rise | Nasdaq
MIDEAST STOCKS-Dubai leads gains in Gulf as financial shares rise | Nasdaq:
Most stock markets in the Gulf ended higher on Wednesday, with Dubai leading the gains on back of Emirates NBD Bank.
Saudi Arabia's benchmark index .TASI edged up 0.2%, with Saudi Kayan Petrochemical Company 2350.SE rising 6.8% and Saudi Arabian Mining Company 1211.SE was up 2.6%.
The index's gains, however, were capped by losses at oil behemoth Saudi Aramco 2222.SE, which declined 0.8%.
Rosneft and Saudi Aramco are unlikely to bid in the privatisation of Indian refiner Bharat Petroleum Corp BPCL.NS, Reuters reported on Wednesday, citing sources familiar with the matter, as low oil prices and weak demand curb their investment plans.
Dubai's main share index .DFMGI climbed 0.9%, with Emirates NBD Bank ENBD.DU leaping 3.4% logistic firm Aramex ARMX.DU.
The Dubai Financial Market DFM.DU said on Tuesday it plans to launch an equity derivatives platform as part of its diversification strategy.
The contracts include Emirates NBD Bank along with others.
The Abu Dhabi index .ADI closed up 0.5%, helped by a 0.5% gain in First Abu Dhabi Bank (FAB) FAB.AD and a 0.7% increase in telecoms firm Etisalat ETISALAT.AD.
FAB, the United Arab Emirates' largest lender, issued a $750 million benchmark additional tier 1 perpetual 6-year bond.
In Qatar, the index .QSI increased 0.8%, driven by a 2.7% increase in Qatar Islamic Bank QISB.QA and a 1.1% rise in Qatar National Bank QNBK.QA.
Back in the UAE, Abu Dhabi National Oil Company for Distribution ADNOCDIST.AD advanced 2% after approving payment of an interim cash dividend of 10.285 fils per share for the first six months of 2020.
Kuwait was closed following the death of its Emir Sheikh Sabah al-Ahmad al-Sabah.
Most stock markets in the Gulf ended higher on Wednesday, with Dubai leading the gains on back of Emirates NBD Bank.
Saudi Arabia's benchmark index .TASI edged up 0.2%, with Saudi Kayan Petrochemical Company 2350.SE rising 6.8% and Saudi Arabian Mining Company 1211.SE was up 2.6%.
The index's gains, however, were capped by losses at oil behemoth Saudi Aramco 2222.SE, which declined 0.8%.
Rosneft and Saudi Aramco are unlikely to bid in the privatisation of Indian refiner Bharat Petroleum Corp BPCL.NS, Reuters reported on Wednesday, citing sources familiar with the matter, as low oil prices and weak demand curb their investment plans.
Dubai's main share index .DFMGI climbed 0.9%, with Emirates NBD Bank ENBD.DU leaping 3.4% logistic firm Aramex ARMX.DU.
The Dubai Financial Market DFM.DU said on Tuesday it plans to launch an equity derivatives platform as part of its diversification strategy.
The contracts include Emirates NBD Bank along with others.
The Abu Dhabi index .ADI closed up 0.5%, helped by a 0.5% gain in First Abu Dhabi Bank (FAB) FAB.AD and a 0.7% increase in telecoms firm Etisalat ETISALAT.AD.
FAB, the United Arab Emirates' largest lender, issued a $750 million benchmark additional tier 1 perpetual 6-year bond.
In Qatar, the index .QSI increased 0.8%, driven by a 2.7% increase in Qatar Islamic Bank QISB.QA and a 1.1% rise in Qatar National Bank QNBK.QA.
Back in the UAE, Abu Dhabi National Oil Company for Distribution ADNOCDIST.AD advanced 2% after approving payment of an interim cash dividend of 10.285 fils per share for the first six months of 2020.
Kuwait was closed following the death of its Emir Sheikh Sabah al-Ahmad al-Sabah.
Air travel industry 'hugely depressed'; Mideast passenger demand plummets 92.3% | ZAWYA MENA Edition
Air travel industry 'hugely depressed'; Mideast passenger demand plummets 92.3% | ZAWYA MENA Edition:
The international air travel industry continues to be “hugely depressed” and is heading into a slow winter season, as the second wave of coronavirus cases and return of travel restrictions dampened passenger confidence, the International Air Transport Association (IATA) said.
The air transport body reiterated its call for the governments to reopen their borders and remove restrictions, citing that carriers around the world are still “burning through cash” despite attempts to re-open businesses and revive the economies.
In the Middle East, home to some of the world’s biggest long-haul operators, passenger demand fell 92.3 percent in August, while capacity collapsed 81.9 percent and load factor sank nearly half (47.1 percentage points) to 35.3 percent, the air transport body said. Carriers in the Asia Pacific, North America, Latin America and Africa also witnessed a similar trend, with the decline in demand hovering above 90 percent.
The air transport body also revised its forecast for 2020 and now expects full-year passenger traffic to fall 66 percent, compared with the earlier estimated decline of 63 percent.
The international air travel industry continues to be “hugely depressed” and is heading into a slow winter season, as the second wave of coronavirus cases and return of travel restrictions dampened passenger confidence, the International Air Transport Association (IATA) said.
The air transport body reiterated its call for the governments to reopen their borders and remove restrictions, citing that carriers around the world are still “burning through cash” despite attempts to re-open businesses and revive the economies.
In the Middle East, home to some of the world’s biggest long-haul operators, passenger demand fell 92.3 percent in August, while capacity collapsed 81.9 percent and load factor sank nearly half (47.1 percentage points) to 35.3 percent, the air transport body said. Carriers in the Asia Pacific, North America, Latin America and Africa also witnessed a similar trend, with the decline in demand hovering above 90 percent.
The air transport body also revised its forecast for 2020 and now expects full-year passenger traffic to fall 66 percent, compared with the earlier estimated decline of 63 percent.
#Kuwait's debt law gridlock poses first economic test for new emir | Reuters
Kuwait's debt law gridlock poses first economic test for new emir | Reuters:
Kuwait’s new Emir Sheikh Nawaf al-Ahmad al-Sabah faces the urgent task of overcoming legislative gridlock on debt legislation needed to tackle a liquidity crisis in the wealthy oil producing country.
Parliament has repeatedly blocked the bill, which would allow Kuwait to tap international debt markets, but the issue has gained urgency as low oil prices and COVID-19 strained state finances and led to the rapid depletion of available cash reserves.
“The country needs to quickly pass a new public debt law to ease liquidity shortages,” said Mohamed Abu Basha, head of macroeconomic analysis at EFG Hermes.
The new ruler, sworn in on Wednesday after the death of his brother Emir Sheikh Sabah al-Ahmad al-Sabah, takes the helm with the nearly $140 billion economy facing a yawning deficit of $46 billion this year.
Kuwait’s new Emir Sheikh Nawaf al-Ahmad al-Sabah faces the urgent task of overcoming legislative gridlock on debt legislation needed to tackle a liquidity crisis in the wealthy oil producing country.
Parliament has repeatedly blocked the bill, which would allow Kuwait to tap international debt markets, but the issue has gained urgency as low oil prices and COVID-19 strained state finances and led to the rapid depletion of available cash reserves.
“The country needs to quickly pass a new public debt law to ease liquidity shortages,” said Mohamed Abu Basha, head of macroeconomic analysis at EFG Hermes.
The new ruler, sworn in on Wednesday after the death of his brother Emir Sheikh Sabah al-Ahmad al-Sabah, takes the helm with the nearly $140 billion economy facing a yawning deficit of $46 billion this year.
#Saudi unemployment spikes as virus-hit economy shrinks by 7% in second-quarter | Reuters
Saudi unemployment spikes as virus-hit economy shrinks by 7% in second-quarter | Reuters:
Saudi Arabia’s economy shrank by 7% in the second quarter, a sign of how deeply the new coronavirus hit both the oil and non-oil sectors, while unemployment hit a record high of 15.4%, official data showed on Wednesday.
The world’s largest oil exporter is facing a deep recession after the COVID-19 pandemic curbed global crude demand and measures to contain the coronavirus hurt domestic activity.
“The private sector and the government sector recorded a negative growth rate of 10.1% and 3.5%, respectively,” said the General Authority for Statistics.
The Saudi unemployment rate was “largely impacted by the effects of the COVID-19 pandemic on the Saudi economy,” it said.
Saudi Arabia’s economy shrank by 7% in the second quarter, a sign of how deeply the new coronavirus hit both the oil and non-oil sectors, while unemployment hit a record high of 15.4%, official data showed on Wednesday.
The world’s largest oil exporter is facing a deep recession after the COVID-19 pandemic curbed global crude demand and measures to contain the coronavirus hurt domestic activity.
“The private sector and the government sector recorded a negative growth rate of 10.1% and 3.5%, respectively,” said the General Authority for Statistics.
The Saudi unemployment rate was “largely impacted by the effects of the COVID-19 pandemic on the Saudi economy,” it said.
Sukuk outlook: #Saudi could double issuances to $40bln in 2020 to plug fiscal deficits | ZAWYA MENA Edition
Sukuk outlook: Saudi could double issuances to $40bln in 2020 to plug fiscal deficits | ZAWYA MENA Edition:
COVID-19 has triggered a sharp decline in global oil demand and prices, eroding Saudi Arabia's revenue and leading to a significant widening of the fiscal deficit. Global ratings agency Moody's estimates that the deficit will reach nearly 11 percent of GDP in 2020, up from 4.5 percent of GDP in 2019, and will drive a commensurate increase in the government's gross financing need, at least half of which can be salvaged by issuing sukuks.
Moody's also stated that the financing requirement will rise to around SAR 318 billion ($85 billion) in 2020 from SAR 153 billion ($41 billion) in 2019, and nearly half of the total financing will come from sukuk issuances, including through the established domestic sukuk program as well as private sukuk placements with autonomous government institutions (AGIs).
Moody's expects gross government sukuk issuance to nearly double this year to around $40 billion, up from $21 billion in 2019.
COVID-19 has triggered a sharp decline in global oil demand and prices, eroding Saudi Arabia's revenue and leading to a significant widening of the fiscal deficit. Global ratings agency Moody's estimates that the deficit will reach nearly 11 percent of GDP in 2020, up from 4.5 percent of GDP in 2019, and will drive a commensurate increase in the government's gross financing need, at least half of which can be salvaged by issuing sukuks.
Moody's also stated that the financing requirement will rise to around SAR 318 billion ($85 billion) in 2020 from SAR 153 billion ($41 billion) in 2019, and nearly half of the total financing will come from sukuk issuances, including through the established domestic sukuk program as well as private sukuk placements with autonomous government institutions (AGIs).
Moody's expects gross government sukuk issuance to nearly double this year to around $40 billion, up from $21 billion in 2019.
Mubadala to invest $2 bln in U.S. private equity firm Silver Lake | Reuters
Mubadala to invest $2 bln in U.S. private equity firm Silver Lake | Reuters:
Abu Dhabi state fund Mubadala Investment Co is investing $2 billion in private equity firm Silver Lake as part of a 25-year investment strategy, the companies said on Wednesday.
Abu Dhabi state fund Mubadala Investment Co is investing $2 billion in private equity firm Silver Lake as part of a 25-year investment strategy, the companies said on Wednesday.
Libya’s Oil Crescent Gets Back to Business as Sarir Field Opens - Bloomberg
Libya’s Oil Crescent Gets Back to Business as Sarir Field Opens - Bloomberg:
Libya’s oil industry continued its revival this week following a truce between the main factions in the OPEC member’s devastating civil war.
The Sarir field opened on Tuesday, according to its operator, Arabian Gulf Oil Co. Production is just 30,000 barrels a day for now. But with a capacity of about 200,000, it’s the biggest deposit in the country to restart since an almost-total shutdown of Libyan energy facilities in January.
Much of the country’s “oil crescent” -- a cluster of ports and fields in the east -- is back onstream, though not yet at full capacity. Libya’s western fields, including Sharara, the biggest in the North African nation, are still closed. The state-run National Oil Corp. has said foreign mercenaries and other fighters must leave facilities before than can reopen.
Overall oil output has reached about 300,000 barrels a day, up from 80,000 at the start of the month.
Libya’s oil industry continued its revival this week following a truce between the main factions in the OPEC member’s devastating civil war.
The Sarir field opened on Tuesday, according to its operator, Arabian Gulf Oil Co. Production is just 30,000 barrels a day for now. But with a capacity of about 200,000, it’s the biggest deposit in the country to restart since an almost-total shutdown of Libyan energy facilities in January.
Much of the country’s “oil crescent” -- a cluster of ports and fields in the east -- is back onstream, though not yet at full capacity. Libya’s western fields, including Sharara, the biggest in the North African nation, are still closed. The state-run National Oil Corp. has said foreign mercenaries and other fighters must leave facilities before than can reopen.
Overall oil output has reached about 300,000 barrels a day, up from 80,000 at the start of the month.
The Middle East’s First Sovereign Green Bond Sees Strong Demand - Bloomberg
The Middle East’s First Sovereign Green Bond Sees Strong Demand - Bloomberg:
Egypt pulled in orders for nearly five times the $750 million size of the Middle East and North Africa’s first sovereign green bond, as it pushes ahead with anti-pollution and renewable energy projects.
The Arab world’s most populous nation sold the five-year notes at a yield of 5.25%, well inside an opening target of about 5.75%, after amassing more than $3.7 billion of investor orders. The sale “put Egypt on the map of sustainable financing,” the Finance Ministry said.
Among those attracted were a “new investor base from Europe, the U.S., East Asia and the Middle East, as well as asset mangers, pension, investment and insurance funds,” the ministry said in a statement. Such “high-quality,” long-term investors “will reduce price volatility.”
The bond forms part of Egypt’s strategy to lock-in new financing sources and broaden the country’s investor base, steps that could in turn help lower its borrowing costs. It's touting a $1.9 billion portfolio of potential green projects, including clean transportation, renewable energy and sustainable water management.
Egypt pulled in orders for nearly five times the $750 million size of the Middle East and North Africa’s first sovereign green bond, as it pushes ahead with anti-pollution and renewable energy projects.
The Arab world’s most populous nation sold the five-year notes at a yield of 5.25%, well inside an opening target of about 5.75%, after amassing more than $3.7 billion of investor orders. The sale “put Egypt on the map of sustainable financing,” the Finance Ministry said.
Among those attracted were a “new investor base from Europe, the U.S., East Asia and the Middle East, as well as asset mangers, pension, investment and insurance funds,” the ministry said in a statement. Such “high-quality,” long-term investors “will reduce price volatility.”
The bond forms part of Egypt’s strategy to lock-in new financing sources and broaden the country’s investor base, steps that could in turn help lower its borrowing costs. It's touting a $1.9 billion portfolio of potential green projects, including clean transportation, renewable energy and sustainable water management.
#SaudiArabia News: Saudi Economy Shrank 7% From Coronavirus, Oil Price - Bloomberg
Saudi Arabia News: Saudi Economy Shrank 7% From Coronavirus, Oil Price - Bloomberg:
Saudi Arabia’s economy contracted 7% in the second quarter from a year earlier as citizen unemployment hit its highest level on record, illustrating the damage wrought by the oil market turmoil combined with the coronavirus pandemic.
The oil sector shrank an annual 5.3%, while the non-oil sector declined by 8.2%, according to data released on Wednesday by the statistics authority. The non-oil private sector -- the engine of job creation -- contracted by more than 10%. Labor statistics released at the same time showed that citizen unemployment rose to 15.4% during April to June, the highest level recorded in data that goes back two decades. That, despite a government stimulus program that covered 60% of salaries for many Saudi workers.
The world’s largest oil exporter is facing a dual crisis this year as the pandemic, energy output cuts and lower crude prices combine to derail a fragile economic recovery from the last oil-price rout. The International Monetary Fund expects output to contract 6.8% this year, followed by 3.1% growth in 2021.
The worst-hit areas of the economy in the second quarter were, unsurprisingly, those hurt by a series of coronavirus curfews and shutdowns that were implemented in March and gradually lifted from the end of May. A sector that combines wholesale, retail, restaurants and hotels contracted by more than 18%. Finance, insurance and business services, on the other hand, shrank by just 0.3%.
Saudi Arabia’s economy contracted 7% in the second quarter from a year earlier as citizen unemployment hit its highest level on record, illustrating the damage wrought by the oil market turmoil combined with the coronavirus pandemic.
The oil sector shrank an annual 5.3%, while the non-oil sector declined by 8.2%, according to data released on Wednesday by the statistics authority. The non-oil private sector -- the engine of job creation -- contracted by more than 10%. Labor statistics released at the same time showed that citizen unemployment rose to 15.4% during April to June, the highest level recorded in data that goes back two decades. That, despite a government stimulus program that covered 60% of salaries for many Saudi workers.
The world’s largest oil exporter is facing a dual crisis this year as the pandemic, energy output cuts and lower crude prices combine to derail a fragile economic recovery from the last oil-price rout. The International Monetary Fund expects output to contract 6.8% this year, followed by 3.1% growth in 2021.
The worst-hit areas of the economy in the second quarter were, unsurprisingly, those hurt by a series of coronavirus curfews and shutdowns that were implemented in March and gradually lifted from the end of May. A sector that combines wholesale, retail, restaurants and hotels contracted by more than 18%. Finance, insurance and business services, on the other hand, shrank by just 0.3%.
Oil prices to see little upside as virus threat looms large: Reuters poll | Reuters
Oil prices to see little upside as virus threat looms large: Reuters poll | Reuters:
Oil prices will stay near current levels this year as rising novel coronavirus cases threaten to slow the pace of demand recovery and counter output curbs by top producers, a Reuters poll showed on Wednesday.
The survey of 40 analysts and economists forecast benchmark Brent crude LCOc1 averaging $42.48 a barrel in 2020. That compares with an average of $42.54 this year and last month's forecast of $42.75.
Brent is projected to average $50.41 in 2021.
The 2020 U.S. crude CLc1 price outlook was at $38.70 per barrel versus $38.82 predicted in August. It has averaged $38.20 this year.
Oil prices will stay near current levels this year as rising novel coronavirus cases threaten to slow the pace of demand recovery and counter output curbs by top producers, a Reuters poll showed on Wednesday.
The survey of 40 analysts and economists forecast benchmark Brent crude LCOc1 averaging $42.48 a barrel in 2020. That compares with an average of $42.54 this year and last month's forecast of $42.75.
Brent is projected to average $50.41 in 2021.
The 2020 U.S. crude CLc1 price outlook was at $38.70 per barrel versus $38.82 predicted in August. It has averaged $38.20 this year.
Oil extends losses as rising virus cases spur demand worries | Reuters
Oil extends losses as rising virus cases spur demand worries | Reuters:
Oil prices fell for a second day on Wednesday as rising coronavirus cases prompted concerns about further restrictions on global economic activity that could curb fuel demand.
Brent crude LCOc1 for November delivery dropped 63 cents, or 1.56%, to $40.40 per barrel by 1005 GMT. West Texas Intermediate CLc1 fell 50 cents, or 1.3%, to $38.79.
The November Brent contract expires today, to be replaced by the December contract, which was down around 1.4% at $41.00.
The benchmarks fell more than 3% on Tuesday as global COVID-19 cases passed 1 million, having doubled in three months.
Oil prices fell for a second day on Wednesday as rising coronavirus cases prompted concerns about further restrictions on global economic activity that could curb fuel demand.
Brent crude LCOc1 for November delivery dropped 63 cents, or 1.56%, to $40.40 per barrel by 1005 GMT. West Texas Intermediate CLc1 fell 50 cents, or 1.3%, to $38.79.
The November Brent contract expires today, to be replaced by the December contract, which was down around 1.4% at $41.00.
The benchmarks fell more than 3% on Tuesday as global COVID-19 cases passed 1 million, having doubled in three months.
#Kuwait's new emir takes oath, calls for unity at tense time for region | Reuters
Kuwait's new emir takes oath, calls for unity at tense time for region | Reuters:
Kuwait’s new emir was sworn in at parliament on Wednesday as the country prepared to lay to rest late ruler Sheikh Sabah al-Ahmad al-Sabah, a Gulf Arab elder statesman who helped steer his people through some of the Middle East’s most turbulent decades.
The cabinet swiftly named designated successor Crown Prince Sheikh Nawaf al-Ahmad al-Sabah as ruler on Tuesday following the death of Sheikh Sabah, 91, whose body is due to arrive in Kuwait on Wednesday from the United States were he had been hospitalised since July.
Nawaf, 83, pledged to work for the OPEC member country’s prosperity, stability and security after taking the oath of office, raising both hands to his head as lawmakers applauded.
“Our dear nation today faces difficult situations and dangerous challenges that can only be overcome ... by unifying ranks and working hard together,” he told the National Assembly.
Kuwait’s new emir was sworn in at parliament on Wednesday as the country prepared to lay to rest late ruler Sheikh Sabah al-Ahmad al-Sabah, a Gulf Arab elder statesman who helped steer his people through some of the Middle East’s most turbulent decades.
The cabinet swiftly named designated successor Crown Prince Sheikh Nawaf al-Ahmad al-Sabah as ruler on Tuesday following the death of Sheikh Sabah, 91, whose body is due to arrive in Kuwait on Wednesday from the United States were he had been hospitalised since July.
Nawaf, 83, pledged to work for the OPEC member country’s prosperity, stability and security after taking the oath of office, raising both hands to his head as lawmakers applauded.
“Our dear nation today faces difficult situations and dangerous challenges that can only be overcome ... by unifying ranks and working hard together,” he told the National Assembly.
MIDEAST STOCKS-Dubai leads major Gulf markets up as financials rise | Nasdaq
MIDEAST STOCKS-Dubai leads major Gulf markets up as financials rise | Nasdaq:
Major stock markets in the Gulf rose in early trade on Wednesday, with financial shares boosting the Dubai index.
Saudi Arabia's benchmark index .TASI edged up 0.2%, supported by a 0.8% gain in Jabal Omar Development 4250.SE and 0.2% increase in Al Rajhi Bank 1120.SE.
However, the index's gains were capped by losses at oil behemoth Saudi Aramco 2222.SE, which declined 0.8%.
Rosneft and Saudi Aramco are unlikely to bid in the privatisation of Indian refiner Bharat Petroleum Corp BPCL.NS, Reuters reported on Wednesday, citing sources familiar with the matter, as low oil prices and weak demand curb their investment plans.
Dubai's main share index .DFMGI gained 0.8%, with Emirates NBD Bank ENBD.DU rising 2.4% and logistic firm Aramex
ARMX.DU jumping 3.3%.
The Abu Dhabi index .ADI rose 0.1%, with Emirates Telecommunications ETISALAT.AD gaining 0.5%, while Abu Dhabi National Oil Company for Distribution ADNOCDIST.AD advanced 2% after approving payment of an interim cash dividend of 10.285 fils per share for the first six months of 2020.
In Qatar, the index .QSI added 0.6%, led by a 2.1% rise in Qatar Fuel QFLS.QA and a 0.9% increase in Qatar Islamic Bank QISB.QA.
Kuwait is closed following the death of its Emir Sheikh Sabah al-Ahmad al-Sabah.
Major stock markets in the Gulf rose in early trade on Wednesday, with financial shares boosting the Dubai index.
Saudi Arabia's benchmark index .TASI edged up 0.2%, supported by a 0.8% gain in Jabal Omar Development 4250.SE and 0.2% increase in Al Rajhi Bank 1120.SE.
However, the index's gains were capped by losses at oil behemoth Saudi Aramco 2222.SE, which declined 0.8%.
Rosneft and Saudi Aramco are unlikely to bid in the privatisation of Indian refiner Bharat Petroleum Corp BPCL.NS, Reuters reported on Wednesday, citing sources familiar with the matter, as low oil prices and weak demand curb their investment plans.
Dubai's main share index .DFMGI gained 0.8%, with Emirates NBD Bank ENBD.DU rising 2.4% and logistic firm Aramex
ARMX.DU jumping 3.3%.
The Abu Dhabi index .ADI rose 0.1%, with Emirates Telecommunications ETISALAT.AD gaining 0.5%, while Abu Dhabi National Oil Company for Distribution ADNOCDIST.AD advanced 2% after approving payment of an interim cash dividend of 10.285 fils per share for the first six months of 2020.
In Qatar, the index .QSI added 0.6%, led by a 2.1% rise in Qatar Fuel QFLS.QA and a 0.9% increase in Qatar Islamic Bank QISB.QA.
Kuwait is closed following the death of its Emir Sheikh Sabah al-Ahmad al-Sabah.