Saudi Arabia imposes new, lower property tax to shore up sector | Reuters:
Saudi Arabia’s king on Friday issued an order exempting real estate deals from a 15% value-added tax (VAT) and imposed a new 5% tax on transactions as the Gulf state moves to revitalise an economy hit by low oil prices and the COVID-19 pandemic.
The finance minister said on Twitter that the order, carried on state media, also aimed to support Saudi citizens who want to buy homes.
The world’s largest oil exporter is facing a deep recession, with the economy shrinking by 7% in the second quarter and unemployment hitting a record high of 15.4%.
The government had in July tripled VAT to 15% to boost non-oil revenues, but the move has limited domestic demand.
Friday 2 October 2020
Oil loses 4% after Trump gets coronavirus and economies wobble | Reuters
Oil loses 4% after Trump gets coronavirus and economies wobble | Reuters:
Oil prices fell more than 4% on Friday, and posted a second weekly decline after U.S. President Donald Trump tested positive for COVID-19, roiling risky assets, and as rising global crude output threatened to overwhelm the market’s weak recovery.
Benchmark Brent and U.S. crude each posted a second straight week of losses. The uncertainty surrounding the U.S. president’s health added to a series of jitters, including a lackluster U.S. unemployment report and increased supply from major world oil producers.
“It’s been a rough week, and now the president’s diagnosis sends a shudder through markets,” said John Kilduff, partner at Again Capital in New York. “The COVID-19 pandemic has weighed more on the oil market than any other asset class.”
This week marked the grim milestone of 1 million deaths and several countries are tightening restrictions and contemplating lockdowns as infections accelerate.
Brent crude LCOc1 was down $1.66, or 4.1%, at $39.27 a barrel. Brent was down 7% on the week. U.S. oil CLc1 settled down $1.67, or 4.3% at $37.05 a barrel, an 8% drop on the week. Both benchmarks were down for a second consecutive week.
Oil prices fell more than 4% on Friday, and posted a second weekly decline after U.S. President Donald Trump tested positive for COVID-19, roiling risky assets, and as rising global crude output threatened to overwhelm the market’s weak recovery.
Benchmark Brent and U.S. crude each posted a second straight week of losses. The uncertainty surrounding the U.S. president’s health added to a series of jitters, including a lackluster U.S. unemployment report and increased supply from major world oil producers.
“It’s been a rough week, and now the president’s diagnosis sends a shudder through markets,” said John Kilduff, partner at Again Capital in New York. “The COVID-19 pandemic has weighed more on the oil market than any other asset class.”
This week marked the grim milestone of 1 million deaths and several countries are tightening restrictions and contemplating lockdowns as infections accelerate.
Brent crude LCOc1 was down $1.66, or 4.1%, at $39.27 a barrel. Brent was down 7% on the week. U.S. oil CLc1 settled down $1.67, or 4.3% at $37.05 a barrel, an 8% drop on the week. Both benchmarks were down for a second consecutive week.
Surge in #Saudi Oil Flows Offset Cut in #UAE’s September Exports - Bloomberg
Surge in Saudi Oil Flows Offset Cut in UAE’s September Exports - Bloomberg:
Saudi Arabia increased oil shipments in September, offsetting lower flows from the United Arab Emirates as the smaller nation started to compensate for earlier over-production, and leaving exports from OPEC’s Middle East producers broadly stable for a third month.
Exports from Saudi Arabia rose by more than 480,000 barrels a day, almost exactly offsetting the drop in shipments from the UAE last month. Kuwait and Iraq increased flows by smaller amounts.
The four nations shipped a total of 13.61 million barrels a day of crude and condensate last month, up by 164,000 barrels a day from August, tanker-tracking data monitored by Bloomberg show.
Flows from the four producers -- which account for more than 70% of production among members of the Organization of Petroleum Exporting Countries -- rose to South Korea, but shipments to all other major buyers including China were down, based on preliminary indications of ship destinations.
Saudi Arabia increased oil shipments in September, offsetting lower flows from the United Arab Emirates as the smaller nation started to compensate for earlier over-production, and leaving exports from OPEC’s Middle East producers broadly stable for a third month.
Exports from Saudi Arabia rose by more than 480,000 barrels a day, almost exactly offsetting the drop in shipments from the UAE last month. Kuwait and Iraq increased flows by smaller amounts.
The four nations shipped a total of 13.61 million barrels a day of crude and condensate last month, up by 164,000 barrels a day from August, tanker-tracking data monitored by Bloomberg show.
Flows from the four producers -- which account for more than 70% of production among members of the Organization of Petroleum Exporting Countries -- rose to South Korea, but shipments to all other major buyers including China were down, based on preliminary indications of ship destinations.
1.7mln Middle East workers to lose jobs as airlines get pummeled: IATA | ZAWYA MENA Edition
1.7mln Middle East workers to lose jobs as airlines get pummeled: IATA | ZAWYA MENA Edition:
The Middle East’s aviation industry is heading for more job losses, as the air traffic continues to suffer due to the coronavirus pandemic, the International Air Transport Association (IATA) said.
Before the end of the year, an estimated 1.7 million people are expected to be out of employment, the air transport body’s latest research revealed.
The number is half of the region’s 3.3 million workers in aviation and related industries. Within the aviation industry alone, some 323,000 jobs will be lost, while the gross domestic product (GDP) supported by aviation in the region will plummet by up to $105 billion.
“This latest research highlights the urgency of restarting aviation in the Middle East. Normally, aviation contributes $213 billion to the region’s GDP. Closing borders has reduced this to $108 billion,” said Muhammad Albakri, IATA’s regional vice president for Africa and the Middle East.
The Middle East’s aviation industry is heading for more job losses, as the air traffic continues to suffer due to the coronavirus pandemic, the International Air Transport Association (IATA) said.
Before the end of the year, an estimated 1.7 million people are expected to be out of employment, the air transport body’s latest research revealed.
The number is half of the region’s 3.3 million workers in aviation and related industries. Within the aviation industry alone, some 323,000 jobs will be lost, while the gross domestic product (GDP) supported by aviation in the region will plummet by up to $105 billion.
“This latest research highlights the urgency of restarting aviation in the Middle East. Normally, aviation contributes $213 billion to the region’s GDP. Closing borders has reduced this to $108 billion,” said Muhammad Albakri, IATA’s regional vice president for Africa and the Middle East.
Omantel Is Said to Explore a $500 Million Sale of Tower Network - Bloomberg
Omantel Is Said to Explore a $500 Million Sale of Tower Network - Bloomberg:
Oman’s biggest phone company is weighing the sale of its tower network, a deal that may fetch about $500 million, according to people with knowledge of the matter.
State-controlled Oman Telecommunication Co., valued at 474 million rials ($1.2 billion), is seeking to sell about 3,000 towers in the sultanate, the people said, asking not to be identified because the information is private. The transaction will probably attract telecommunications companies with businesses in the region as well as private-equity firms, they said.
Carriers are offloading towers in emerging markets across the Middle East and Africa to reduce the burden of costly infrastructure. South Africa’s Telkom SA SOC Ltd is weighing a potential sale of 6,500 towers, while Saudi Telecom is considering options for its roughly 17,000 towers, including a sale or merger. Zain sold 1,620 telecom towers to IHS Holding for $130 million earlier this year.
Wireless infrastructure has been drawing interest from investors attracted to the steady, long-term nature of the assets. A report co-authored by consultancy EY in April 2019 found that greater outsourcing by telecom operators of their tower assets could release 28 billion euros ($33 billion) of capital for reinvestment.
Oman’s biggest phone company is weighing the sale of its tower network, a deal that may fetch about $500 million, according to people with knowledge of the matter.
State-controlled Oman Telecommunication Co., valued at 474 million rials ($1.2 billion), is seeking to sell about 3,000 towers in the sultanate, the people said, asking not to be identified because the information is private. The transaction will probably attract telecommunications companies with businesses in the region as well as private-equity firms, they said.
Carriers are offloading towers in emerging markets across the Middle East and Africa to reduce the burden of costly infrastructure. South Africa’s Telkom SA SOC Ltd is weighing a potential sale of 6,500 towers, while Saudi Telecom is considering options for its roughly 17,000 towers, including a sale or merger. Zain sold 1,620 telecom towers to IHS Holding for $130 million earlier this year.
Wireless infrastructure has been drawing interest from investors attracted to the steady, long-term nature of the assets. A report co-authored by consultancy EY in April 2019 found that greater outsourcing by telecom operators of their tower assets could release 28 billion euros ($33 billion) of capital for reinvestment.
Oil extends losses after Trump tests positive for COVID-19 | Reuters
Oil extends losses after Trump tests positive for COVID-19 | Reuters:
Oil prices extended losses to about 3% on Friday after U.S. President Donald Trump said he has tested positive for COVID-19, while agreement on a U.S. stimulus package eluded negotiators amid ongoing worries about demand.
Brent crude slipped on the Trump news and was down $1.12, or 2.7%, at $39.81 a barrel by 0710 GMT. U.S. oil was also down $1.12, or 2.9%, at $37.60.
U.S. and Brent crude are heading for drops of around 5% and 6% respectively this week for a second consecutive week of declines.
In a tweet, Trump said that he and First Lady Melania Trump tested positive for COVID-19.
Oil prices extended losses to about 3% on Friday after U.S. President Donald Trump said he has tested positive for COVID-19, while agreement on a U.S. stimulus package eluded negotiators amid ongoing worries about demand.
Brent crude slipped on the Trump news and was down $1.12, or 2.7%, at $39.81 a barrel by 0710 GMT. U.S. oil was also down $1.12, or 2.9%, at $37.60.
U.S. and Brent crude are heading for drops of around 5% and 6% respectively this week for a second consecutive week of declines.
In a tweet, Trump said that he and First Lady Melania Trump tested positive for COVID-19.