OPEC Output Steady as #UAE Cut Offsets Gains in Troubled Members - Bloomberg

OPEC Output Steady as UAE Cut Offsets Gains in Troubled Members - Bloomberg:

OPEC’s crude output held steady last month as the United Arab Emirates pulled production back sharply in atonement for recent months of oversupply.

The UAE slashed by 310,000 barrels a day, or roughly 10%, according to a Bloomberg survey, in order to better comply with limits set by the cartel. The organization and its allies are seeking to keep global crude markets in balance amid the convulsions caused by the coronavirus.

The Gulf sheikhdom drew a rare public rebuke from OPEC’s de facto leader, Saudi Arabia, last month for a production surge over the summer that violated its agreed quota. It’s now moved closer to that limit again, with tanker-tracking data showing exports at their lowest in 23 months.

The Organization of Petroleum Exporting Countries and its partners -- which include exporters such as Russia and Kazakhstan -- are keeping supplies near the lowest level in decades to offset an unprecedented plunge in fuel demand. Their efforts are showing mixed success, with signs of inventories piling up again and oil prices stuck around $40 a barrel.

Huge 'reverberations' expected as Arabtec confirms dissolution - Arabianbusiness

Huge 'reverberations' expected as Arabtec confirms dissolution - Arabianbusiness:

The impact of the liquidation of UAE construction giant Arabtec will send “reverberations” throughout the industry, with the repercussions felt on a much wider scale than simply those who are directly involved with the company and its current pipeline of projects.

That’s the view of Mark Raymont, partner, construction advisory disputes at Pinsent Masons, who revealed the twin shocks of the current coronavirus pandemic and depressed oil prices, has increased the stress on what was already a struggling industry.

His comments came as Arabtec belatedly confirmed that shareholders had voted to discontinue with the company and dissolve it due to its untenable financial situation. The resolution of the shareholders grants the Arabtec board a maximum period of two months to allow for discussions with the main stakeholders before a liquidation application may be submitted to the competent courts.

In the meantime, Arabtec’s primary objective is to provide stability for staff, subsidiaries, sub-contractors, suppliers, and other stakeholders, the company said in a statement.

Waleed Al Mokarrab Al Muhairi, chairman of Arabtec, said: “In recent years, limited liquidity in the construction sector has impacted the progress of Arabtec’s projects and this has been exacerbated by the effects of Covid-19. Despite efforts to pursue legal and commercial entitlements and a restructuring of the Company’s finances and operations, the situation in which Arabtec finds itself today is untenable.

#Iran's currency sees a new record low amid biting sanctions

Iran's currency sees a new record low amid biting sanctions:

Iran’s currency dropped Thursday to its lowest value ever at 300,000 rial for each dollar amid severe U.S. sanctions against the country.

The rial has tumbled from a rate of around 262,000 in mid-September, a 12% drop.

Iran’s currency was at 32,000 rials to the dollar at the time of Tehran’s 2015 nuclear deal with world powers.

U.S. sanctions have caused Iran’s oil exports, the country’s main source of income, to fall sharply.

#AbuDhabi's Mubadala agrees $853 million deal with India's Reliance Retail | Reuters

Abu Dhabi's Mubadala agrees $853 million deal with India's Reliance Retail | Reuters:

Abu Dhabi state fund Mubadala Investment Co has agreed to invest 62.48 billion rupees ($853 million) in the retail division of India’s Reliance Industries RELI.NS, the Indian conglomerate said in a statement. 

Reliance Retail is on a fundraising spree and has secured around $1.8 billion in the past few weeks from KKR & Co KKR.N and Silver Lake Partners.

Mubadala’s investment translates into a 1.4% equity stake in Reliance Retail Ventures Limited on a fully diluted basis, according to the statement and a source close to the deal.

“This marks the second significant investment by Mubadala in a Reliance Industries subsidiary after the $1.2 billion investment in Jio Platforms announced earlier this year,” Reliance said.

U.S. aluminium prices slip on talk of tariff exemptions for #UAE, Bahrain | Reuters

U.S. aluminium prices slip on talk of tariff exemptions for UAE, Bahrain | Reuters:

Prices of aluminium for U.S. consumers in the transport, construction and packaging industries are sliding because the market is expecting exemptions for producers in the United Arab Emirates and Bahrain.

This thinking follows agreements by the two Arab states to establish formal ties with Israel, which they signed at a ceremony hosted by U.S. President Donald Trump at the White House in September.

U.S. aluminium prices are based on the physical premium AUPc1 now at $263 a tonne from $335 mid-September, plus the benchmark price CMAL3 on the London Metal Exchange at $1,750.

Jorge Vasquez, founder of consultancy Harbor Aluminum, said the UAE exported about 550,000 tonnes of value added primary aluminium to the United States last year and Bahrain exported 150,000 tonnes to the United States.

Oil drops 3% on weak demand outlook and higher OPEC supplies | Reuters

Oil drops 3% on weak demand outlook and higher OPEC supplies | Reuters:

Oil prices fell 3% on Thursday as rising coronavirus cases around the world dampened the demand outlook, and a rise in OPEC output last month also pressured prices.

Brent crude LCOc1 futures fell $1.37, or 3.2%, to settle at $40.93 a barrel after dropping to a low of $39.92. U.S. West Texas Intermediate (WTI) crude CLc1 futures ended down $1.50, or 3.7%, at $38.72 after sliding more than 6% to a session low of $37.61.

“It has become evident that the virus has not been contained. Infection rates are going up, the global death toll has surpassed the 1 million mark and the world is becoming a gloomy place once again,” said PVM Oil analyst Tamas Varga. 

In the United States alone the pandemic has infected more than 7.2 million and killed more than 206,000.

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

#UAE, #Dubai News: Burj Khalifa Builder Arabtec Set To Fall Into Liquidation - Bloomberg

UAE, Dubai News: Burj Khalifa Builder Arabtec Set To Fall Into Liquidation - Bloomberg:

The Burj Khalifa skyscraper, center.

 Photographer: Christopher Pike/Bloomberg

Shareholders of United Arab Emirates-based Arabtec Holding PJSC voted to dissolve the debt-laden construction firm, in a move that is likely to impact thousands of jobs as well as scores of suppliers and sub-contractors in the region.

Construction companies that sprung up more than a decade ago as a building bonanza swept Dubai and much of the Gulf are facing a reckoning as governments pull back on spending.

“After considering a number of strategic options, the shareholders of Arabtec Holding have voted to discontinue with the Group and dissolve it due to its untenable financial situation,” a spokesperson said.

The impact on jobs would be “substantial” since the company has about 40,000 employees, Jaap Meijer, head of equity research at Arqaam Capital, said in an interview with Bloomberg Television.

#Saudi Grocer Bindawood Discloses $75 Million Related-Party Loans - Bloomberg

Saudi Grocer Bindawood Discloses $75 Million Related-Party Loans - Bloomberg:

Saudi Arabia’s BinDawood Holding Co. is giving institutional investors the chance to amend or cancel their IPO bids after disclosing 284 million riyals ($76 million) in loans to related parties.

Institutional investors will have until Oct. 5 to make changes, BinDawood said in an update to the intial public offering prospectus released Thursday. Under the original timeline, the institutional offering period closed on Sept. 22 and the final allotment should have taken place on Oct. 1. A planned offering to retail investors will now take place from Oct. 8 to Oct. 12.

BinDawood said it lent the money to Amwaj Real Estate Co. and AQimma Hotels Co. between July and September. The loans have since been repaid. Board members Abdulrazzag Dawood BinDawood, Abdulkhaliq Dawood BinDawood, and Khalid Dawood BinDawood have indirect ownership in the two companies.

It remains unclear how the revelations will impact investor appetite for the share sale, which aims to raise about $600 million and was already more than 50 times oversubscribed when the IPO process was put on hold last week, people familiar with the matter told Bloomberg last week.

Why Arabtec's woes could be 'tip of the iceberg' for #UAE construction sector - Arabianbusiness

Why Arabtec's woes could be 'tip of the iceberg' for UAE construction sector - Arabianbusiness:

A leading economist has warned the reported demise of UAE construction giant Arabtec could be the tip of the iceberg and forecast increased concerns for the industry amid the continuing coronavirus crisis.

It was announced on Wednesday that the shareholders of Arabtec Holding had voted to place the company into administration.

Concerns over the future viability of the company, which has combined losses of almost AED1.5 billion, have been circulating for some time, with matters coming to a head at this week’s delayed annual general meeting.

The latest hammer blow to the industry comes after Drake & Scull International recently revealed it had appointed a new CEO and CFO, the latest in a string of senior job announcements as the company proceeds with finalising an organisational and financial reorganisation plan.

Major Gulf markets off to a mixed start | Reuters

Major Gulf markets off to a mixed start | Reuters:

Major stock markets in the Gulf were mixed in early trade, with the Saudi bourse on track to extend gains from the previous session, while financial shares weighed on the Dubai index.

Saudi Arabia's benchmark index .ADI rose 0.4%, led by a 1.7% gain in Riyad Bank 1010.SE and a 3.5% jump in utility the Saudi Electricity Company 5110.SE.

The kingdom plans to cut spending by 7.5% in next year’s budget to 990 billion riyals ($263.95 billion) but expects the economy to return to growth as its management of the coronavirus crisis improves, a preliminary budget statement showed.

Elsewhere, Rabigh Refining And Petrochemical 2380.SE advanced 4.1% after it signed joint revolving loans and facility agreements worth 7.5 billion riyals.

Dubai's main share index .DFMGI lost 0.7%, with Emirates NBD Bank ENBD.DU dropping 0.9%, while blue-chip developer Emaar Properties EMAR.DU was down 0.4%.

Trading in shares of Arabtec Holding ARTC.DU remained suspended after it retreated 3.3% in the previous session ahead of its shareholders' meeting.

On Wednesday, the shareholders of the Dubai-listed construction company authorised the board to file for liquidation due to its untenable financial position following the fallout from the COVID-19 pandemic, Reuters reported, citing an internal company email.
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.
Arabtec has yet to disclose the results of the shareholders’ meeting.
The Abu Dhabi index .ADI fell 0.4%, weighed down by a 0.5% drop in the country's largest lender First Abu Dhabi Bank FAB.AD and a 2.1% decline in aquaculture firm International Holding IHC.AD.
In Qatar, the index .QSI rose 0.4%, driven by a 1.6% rise in Qatar Islamic Bank QISB.QA and a 1% increase in petrochemical maker Industries Qatar IQCD.QA.

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

Oil prices gain on renewed U.S. stimulus hopes | Reuters

Oil prices gain on renewed U.S. stimulus hopes | Reuters:

Oil prices rose on Thursday as renewed hopes for U.S. fiscal stimulus provided support but worries over rising infections hampering fuel demand could cap gains. 

U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 13 cents to $40.35 a barrel at 0645 GMT , after jumping 2.4% on Wednesday.

Brent crude LCOc1 futures gained 11 cents to $42.41 a barrel, after falling 0.2% overnight.

The Trump administration has proposed a new stimulus package to House Democrats worth over $1.5 trillion.