Dubai, Abu Dhabi News: Standard Chartered Cutting More Than 100 UAE Jobs - Bloomberg:
Standard Chartered Plc is cutting more than one hundred jobs in the United Arab Emirates, the latest effort by the lender to shrink costs globally.
The reductions will center on the lender’s retail and global banking division, according to two people familiar with the matter. The bank employs about 1,700 people in the UAE.
A spokesman for the bank confirmed that a number of roles are being made redundant. The bank will pay them the equivalent of their salary until the end of year in addition to their severance pay, according to the spokesman.
The UAE is the biggest market of Standard Chartered’s Middle East and Africa business. The region suffered a difficult first six months of 2020, as profits plummeted by 80% after a slump in oil prices.
Wednesday, 7 October 2020
Property prices in some parts of #Dubai fall to decade-long lows - Arabianbusiness
Property prices in some parts of Dubai fall to decade-long lows - Arabianbusiness:
Property prices in some parts of Dubai reached new decade-long lows in September, according to new research published on Wednesday.
The annual average price per sq ft fell to AED896 for 2020, AED2 lower than the previous low seen in 2010 following the global economic crisis.
The figures were published by real estate consultants ValuStrat in its monthly report on the Dubai property market.
Its VPI – Residential Capital Values for Dubai index stood at 66 points, declining 1.5 percent monthly.
Property prices in some parts of Dubai reached new decade-long lows in September, according to new research published on Wednesday.
The annual average price per sq ft fell to AED896 for 2020, AED2 lower than the previous low seen in 2010 following the global economic crisis.
The figures were published by real estate consultants ValuStrat in its monthly report on the Dubai property market.
Its VPI – Residential Capital Values for Dubai index stood at 66 points, declining 1.5 percent monthly.
#UAE-#Israel accord could bring new sparkle to #Dubai diamond trade | Reuters
UAE-Israel accord could bring new sparkle to Dubai diamond trade | Reuters:
The week that Israel and the United Arab Emirates normalised ties, Israeli diamond trader Zvi Shimshi headed to the United Arab Emirates to open a company in Dubai, a regional trade hub that is a major centre for the precious stones.
He is among 38 Israelis whom the Dubai Multi Commodities Centre (DMCC), home to Dubai Diamond Exchange, said have recently contacted it to set up a presence, in a sign of how shifting regional politics could alter global trade dynamics.
Traders in Dubai say they have been inundated with enquiries from Israelis, who traditionally trade in Belgium’s Antwerp -- the world’s biggest centre for traders of rough and polished diamonds.
South African company Trans Atlantic Gems Sales (TAGS), which auctions and tenders diamonds in Dubai, had close to 50 Israeli firms interested in participating in tenders register with the company in just a few weeks, said owner Anthony Peters.
The week that Israel and the United Arab Emirates normalised ties, Israeli diamond trader Zvi Shimshi headed to the United Arab Emirates to open a company in Dubai, a regional trade hub that is a major centre for the precious stones.
He is among 38 Israelis whom the Dubai Multi Commodities Centre (DMCC), home to Dubai Diamond Exchange, said have recently contacted it to set up a presence, in a sign of how shifting regional politics could alter global trade dynamics.
Traders in Dubai say they have been inundated with enquiries from Israelis, who traditionally trade in Belgium’s Antwerp -- the world’s biggest centre for traders of rough and polished diamonds.
South African company Trans Atlantic Gems Sales (TAGS), which auctions and tenders diamonds in Dubai, had close to 50 Israeli firms interested in participating in tenders register with the company in just a few weeks, said owner Anthony Peters.
#SaudiArabia's BinDawood Holding prices IPO at 96 riyals a share | Reuters
Saudi Arabia's BinDawood Holding prices IPO at 96 riyals a share | Reuters:
Saudi Arabian supermarket retailer BinDawood Holding has priced its initial public offering at 96 riyals ($25.59) a share, the company said on Wednesday.
The retailer, which owns the Danube and BinDawood supermarket brands, said the book-building process generated an order book of 106.9 billion riyals ($28.50 billion).
Subscriptions came from public funds, private funds and discretionary portfolios, non-Saudi investors and other investors, which include government institutions, private companies and financial institutions, it said.
“I am very pleased with the exceptionally strong demand we have witnessed for BinDawood Holding shares by institutional investors,” said CEO Ahmad Abdulrazzaq BinDawood
Saudi Arabian supermarket retailer BinDawood Holding has priced its initial public offering at 96 riyals ($25.59) a share, the company said on Wednesday.
The retailer, which owns the Danube and BinDawood supermarket brands, said the book-building process generated an order book of 106.9 billion riyals ($28.50 billion).
Subscriptions came from public funds, private funds and discretionary portfolios, non-Saudi investors and other investors, which include government institutions, private companies and financial institutions, it said.
“I am very pleased with the exceptionally strong demand we have witnessed for BinDawood Holding shares by institutional investors,” said CEO Ahmad Abdulrazzaq BinDawood
GCC banks to focus on consolidation as economies reel from COVID-19, low oil prices | ZAWYA MENA Edition
GCC banks to focus on consolidation as economies reel from COVID-19, low oil prices | ZAWYA MENA Edition:
Banks in the Gulf Cooperation Council (GCC) will increase merger and acquisitions as growth is constrained by the difficult economic climate, shifting focus to cost discipline and consolidation, said Moody’s.
The dual impact of the low oil price and the global pandemic are affecting the profitability of GCC banks, meaning merger deals will be motivated purely by financial considerations, the ratings agency said.
“The banks now face larger cost adjustments as low oil prices and the coronavirus fallout constrain growth opportunities and severely dent their profitability,” said Badis Shubailat, analyst at Moody’s. “This is prompting a new wave of mergers as banks seek ways to combat revenue pressure.”
In its report, published today, Moody’s said bank consolidation in the GCC region has so far largely involved shareholders consolidating their positions in different banks amid weakening operating conditions.
Banks in the Gulf Cooperation Council (GCC) will increase merger and acquisitions as growth is constrained by the difficult economic climate, shifting focus to cost discipline and consolidation, said Moody’s.
The dual impact of the low oil price and the global pandemic are affecting the profitability of GCC banks, meaning merger deals will be motivated purely by financial considerations, the ratings agency said.
“The banks now face larger cost adjustments as low oil prices and the coronavirus fallout constrain growth opportunities and severely dent their profitability,” said Badis Shubailat, analyst at Moody’s. “This is prompting a new wave of mergers as banks seek ways to combat revenue pressure.”
In its report, published today, Moody’s said bank consolidation in the GCC region has so far largely involved shareholders consolidating their positions in different banks amid weakening operating conditions.
MIDEAST STOCKS-Egypt index outperforms, while major Gulf markets ease | Nasdaq
MIDEAST STOCKS-Egypt index outperforms, while major Gulf markets ease | Nasdaq:
Egypt's stock market ended higher on Wednesday following a deep fall in the country's inflation, while losses in financial shares weighed on most major Gulf indexes.
Egypt's inflation has fallen to some of its lowest levels in well over a decade, potentially triggering consultations with the International Monetary Fund under the conditions of a new $5.2 billion loan.
Egypt's blue-chip index .EGX30 climbed 1.6%, as most of the stocks were in positive territory including Commercial International Bank COMI.CA, which was up 1.5%.
If inflation falls too quickly, the IMF could argue that the central bank's monetary committee should consider lowering interest rates when it next meets on Nov. 12, Reuters reported, citing some economists. The benchmark index .TASI in Saudi Arabia slipped 0.1%, hurt by a 1.1% fall in Dr-Sulaiman Al-Habib Medical Services 4013.SE and a 1.6% retreat in Savola Group 2050.SE.
Dubai's main share index .DFMGI fell 0.6%, with blue-chip developer Emaar Properties EMAR.DU losing 1.5% and its unit Emaar Malls EMAA.DU down 2.8%.
The United Arab Emirates, with a population of around 9.9 million people, surpassed 100,000 recorded cases of COVID-19 infection on Tuesday.
Authorities have blamed people's poor adherence to social distancing for the rise. The government does not disclose where in the seven emirates that make up the UAE the cases occur.
The Abu Dhabi index .ADI added 0.3%, with telecoms firm Etisalat ETISALAT.AD rising 1%, while Abu Dhabi Commercial Bank ADCB.AD closed up 1.3%.
In Qatar, the index .QSI dropped 0.8%, with petrochemical maker Industries Qatar IQCD.QA shedding 3.9%, and Qatar National Bank QNBK.QA down 0.6%.
Egypt's stock market ended higher on Wednesday following a deep fall in the country's inflation, while losses in financial shares weighed on most major Gulf indexes.
Egypt's inflation has fallen to some of its lowest levels in well over a decade, potentially triggering consultations with the International Monetary Fund under the conditions of a new $5.2 billion loan.
Egypt's blue-chip index .EGX30 climbed 1.6%, as most of the stocks were in positive territory including Commercial International Bank COMI.CA, which was up 1.5%.
If inflation falls too quickly, the IMF could argue that the central bank's monetary committee should consider lowering interest rates when it next meets on Nov. 12, Reuters reported, citing some economists. The benchmark index .TASI in Saudi Arabia slipped 0.1%, hurt by a 1.1% fall in Dr-Sulaiman Al-Habib Medical Services 4013.SE and a 1.6% retreat in Savola Group 2050.SE.
Dubai's main share index .DFMGI fell 0.6%, with blue-chip developer Emaar Properties EMAR.DU losing 1.5% and its unit Emaar Malls EMAA.DU down 2.8%.
The United Arab Emirates, with a population of around 9.9 million people, surpassed 100,000 recorded cases of COVID-19 infection on Tuesday.
Authorities have blamed people's poor adherence to social distancing for the rise. The government does not disclose where in the seven emirates that make up the UAE the cases occur.
The Abu Dhabi index .ADI added 0.3%, with telecoms firm Etisalat ETISALAT.AD rising 1%, while Abu Dhabi Commercial Bank ADCB.AD closed up 1.3%.
In Qatar, the index .QSI dropped 0.8%, with petrochemical maker Industries Qatar IQCD.QA shedding 3.9%, and Qatar National Bank QNBK.QA down 0.6%.
Arabtec collapse shakes foundations of Gulf construction business | Reuters
Arabtec collapse shakes foundations of Gulf construction business | Reuters:
Just over six years ago, Dubai-listed Arabtec Holding ARTC.DU had investors eating out of its hands.
At a lavish shareholder meeting at Abu Dhabi’s St. Regis Hotel, the contractor that helped build the world’s tallest skyscraper, Dubai’s Burj Khalifa, outlined plans for listings in London, Hong Kong and New York.
Those plans never materialised. After capital injections between 2013 and 2017, management changes, layoffs and rounds of restructurings, Arabtec’s shareholders, which include Abu Dhabi state fund Mubadala, decided last week that the Gulf’s largest listed contractor should file for insolvency.
Arabtec had around $2.75 billion in total liabilities at the end of June, including almost $500 million in bank borrowing.
The liquidation, likely to lead to further layoffs in a company which had a 40,000 strong workforce at the end of last year, marks the end of an era of plentiful construction for local contractors.
“A great company that is 45 years old disappeared off the face of the earth. I find it extremely sad that an iconic company like that disappeared,” Ziad Makhzoumi, chief financial officer of Arabtec from September 2008 to March 2013, told Reuters.
Just over six years ago, Dubai-listed Arabtec Holding ARTC.DU had investors eating out of its hands.
At a lavish shareholder meeting at Abu Dhabi’s St. Regis Hotel, the contractor that helped build the world’s tallest skyscraper, Dubai’s Burj Khalifa, outlined plans for listings in London, Hong Kong and New York.
Those plans never materialised. After capital injections between 2013 and 2017, management changes, layoffs and rounds of restructurings, Arabtec’s shareholders, which include Abu Dhabi state fund Mubadala, decided last week that the Gulf’s largest listed contractor should file for insolvency.
Arabtec had around $2.75 billion in total liabilities at the end of June, including almost $500 million in bank borrowing.
The liquidation, likely to lead to further layoffs in a company which had a 40,000 strong workforce at the end of last year, marks the end of an era of plentiful construction for local contractors.
“A great company that is 45 years old disappeared off the face of the earth. I find it extremely sad that an iconic company like that disappeared,” Ziad Makhzoumi, chief financial officer of Arabtec from September 2008 to March 2013, told Reuters.
Exclusive: #Saudi PIF in talks to buy stake in #UAE supermarket chain Lulu - sources | Reuters
Exclusive: Saudi PIF in talks to buy stake in UAE supermarket chain Lulu - sources | Reuters:
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), is in early discussions to buy a stake in supermarket chain Lulu Group International, two sources familiar with the matter told Reuters.
It is in talks with Indian-born businessman Yusuff Ali, who founded Abu Dhabi-based Lulu, one of the largest chains in the Gulf region, the sources said.
Discussions between PIF and Lulu began four to six weeks ago, one of the sources said.
It was not immediately clear how big a stake PIF is seeking to buy as discussions are at an early stage, or whether the talks would lead to a final transaction.
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), is in early discussions to buy a stake in supermarket chain Lulu Group International, two sources familiar with the matter told Reuters.
It is in talks with Indian-born businessman Yusuff Ali, who founded Abu Dhabi-based Lulu, one of the largest chains in the Gulf region, the sources said.
Discussions between PIF and Lulu began four to six weeks ago, one of the sources said.
It was not immediately clear how big a stake PIF is seeking to buy as discussions are at an early stage, or whether the talks would lead to a final transaction.
Sole survivor? #Saudi Aramco doubles down on oil to outlast rivals | Reuters
Sole survivor? Saudi Aramco doubles down on oil to outlast rivals | Reuters:
The slump in demand for crude during the coronavirus pandemic has forced oil companies to contemplate the possibility that the fossil fuel market has peaked and the time for a global energy transition has come.
But Saudi Aramco plans to boost its production capacity so it can pump as much of Saudi Arabia’s vast oil reserves when demand picks up - before a shift to cleaner energy makes crude all but worthless, industry sources and analysts told Reuters.
With almost 20% of the world’s proven reserves and production costs of just $4 a barrel, Aramco believes it can undercut competitors and carry on making money even when lower oil prices make it unprofitable for rivals, the sources said.
Riyadh now plans to follow through on its apparent threat in March during an oil price war with Russia to raise its capacity to 13 million barrels a day (bpd) from 12 million bpd, officials and sources have said.
The slump in demand for crude during the coronavirus pandemic has forced oil companies to contemplate the possibility that the fossil fuel market has peaked and the time for a global energy transition has come.
But Saudi Aramco plans to boost its production capacity so it can pump as much of Saudi Arabia’s vast oil reserves when demand picks up - before a shift to cleaner energy makes crude all but worthless, industry sources and analysts told Reuters.
With almost 20% of the world’s proven reserves and production costs of just $4 a barrel, Aramco believes it can undercut competitors and carry on making money even when lower oil prices make it unprofitable for rivals, the sources said.
Riyadh now plans to follow through on its apparent threat in March during an oil price war with Russia to raise its capacity to 13 million barrels a day (bpd) from 12 million bpd, officials and sources have said.
Gloom Deepens for #Dubai Property Stocks as Homes Glut Grows - Bloomberg
Gloom Deepens for Dubai Property Stocks as Homes Glut Grows - Bloomberg:
Dubai real estate stocks were once the stars for investors betting on the city’s booming economy. But their fall from grace has been spectacular and seems set to continue, given an abundance of unsold homes and scant prospects for a recovery in the oil-rich region.
Shares in Emaar Properties PJSC, an industry bellwether and the developer of Burj Khalifa, the world’s tallest tower, have dropped almost 80% from their 2014 peak, when average real estate prices in the emirate were about 30% higher. Competitor Damac Properties Dubai Co. has posted a similar slump since a 2017 high. Smaller player Union Properties PJSC, which is in talks to restructure debt, trades at a 90% discount from its 2005 levels.
Not even a majority of buy recommendations from analysts, thanks to cheap valuations and expectations of government support, is enough to spur a change in sentiment. That reflects a supply glut that the companies themselves helped create, and which is worsening because of the departure of many expatriate workers who account for most of the city’s population.
“I looked at Dubai property several times in the past, but the picture was unchanged every time, exactly because of the same issues -- huge unsold stock levels and continued development activity,” said Ekaterina Iliouchenko, a portfolio manager at Union Investment Privatfonds GmbH in Frankfurt.
Dubai real estate stocks were once the stars for investors betting on the city’s booming economy. But their fall from grace has been spectacular and seems set to continue, given an abundance of unsold homes and scant prospects for a recovery in the oil-rich region.
Shares in Emaar Properties PJSC, an industry bellwether and the developer of Burj Khalifa, the world’s tallest tower, have dropped almost 80% from their 2014 peak, when average real estate prices in the emirate were about 30% higher. Competitor Damac Properties Dubai Co. has posted a similar slump since a 2017 high. Smaller player Union Properties PJSC, which is in talks to restructure debt, trades at a 90% discount from its 2005 levels.
“I looked at Dubai property several times in the past, but the picture was unchanged every time, exactly because of the same issues -- huge unsold stock levels and continued development activity,” said Ekaterina Iliouchenko, a portfolio manager at Union Investment Privatfonds GmbH in Frankfurt.
An index tracking eight Dubai real estate stocks is trading near the biggest discount to peers in emerging markets since 2011.
#Kuwait's emir names security czar Sheikh Meshal as crown prince | Reuters
Kuwait's emir names security czar Sheikh Meshal as crown prince | Reuters:
Kuwait’s new ruler Emir Sheikh Nawaf al-Ahmad al-Sabah on Wednesday named Sheikh Meshal al-Ahmad, deputy head of the country’s National Guard, as crown prince of the U.S.-allied OPEC member state.
The selection of Sheikh Meshal, which must be approved by the Gulf Arab state’s parliament, “was blessed by the Al Sabah family,” state news agency KUNA cited a statement from the emir’s office as saying.
Earlier two members of Kuwait’s ruling family posted messages on Twitter pledging allegiance to Sheikh Meshal as crown prince.
Sheikh Nawaf assumed power following the death of his brother Sheikh Sabah al-Ahmad last week, at a time of tension between Kuwait’s larger neighbours Saudi Arabia and Iran and as the government tries to shore up finances strained by low oil prices and COVID-19.
Kuwait’s new ruler Emir Sheikh Nawaf al-Ahmad al-Sabah on Wednesday named Sheikh Meshal al-Ahmad, deputy head of the country’s National Guard, as crown prince of the U.S.-allied OPEC member state.
The selection of Sheikh Meshal, which must be approved by the Gulf Arab state’s parliament, “was blessed by the Al Sabah family,” state news agency KUNA cited a statement from the emir’s office as saying.
Earlier two members of Kuwait’s ruling family posted messages on Twitter pledging allegiance to Sheikh Meshal as crown prince.
Sheikh Nawaf assumed power following the death of his brother Sheikh Sabah al-Ahmad last week, at a time of tension between Kuwait’s larger neighbours Saudi Arabia and Iran and as the government tries to shore up finances strained by low oil prices and COVID-19.
Oil prices fall on U.S. stimulus impasse, rising U.S. crude stockpiles | Reuters
Oil prices fall on U.S. stimulus impasse, rising U.S. crude stockpiles | Reuters:
Oil prices fell on Wednesday after U.S. President Donald Trump dashed hopes for a fourth stimulus package to boost the coronavirus-hit economy and on a larger-than-expected increase in U.S. crude inventories.
U.S. West Texas Intermediate (WTI) crude oil futures declined 42 cents, or 1%, to $40.25 a barrel by 0648 GMT while Brent crude futures fell 30 cents, or 0.7%, to $42.35 a barrel.
“Crude prices got hammered with one-two punch after President Trump sent all risky assets into freefall after ending negotiations on fiscal stimulus and after US crude stockpiles posted their first build in four weeks,” said Edward Moya, senior market analyst at OANDA.
President Trump, still being treated for COVID-19, ended talks on Tuesday with Democrats on an economic aid package for the United States, the world’s biggest oil consumer, with the U.S. presidential election only weeks away.
Oil prices fell on Wednesday after U.S. President Donald Trump dashed hopes for a fourth stimulus package to boost the coronavirus-hit economy and on a larger-than-expected increase in U.S. crude inventories.
U.S. West Texas Intermediate (WTI) crude oil futures declined 42 cents, or 1%, to $40.25 a barrel by 0648 GMT while Brent crude futures fell 30 cents, or 0.7%, to $42.35 a barrel.
“Crude prices got hammered with one-two punch after President Trump sent all risky assets into freefall after ending negotiations on fiscal stimulus and after US crude stockpiles posted their first build in four weeks,” said Edward Moya, senior market analyst at OANDA.
President Trump, still being treated for COVID-19, ended talks on Tuesday with Democrats on an economic aid package for the United States, the world’s biggest oil consumer, with the U.S. presidential election only weeks away.
MIDEAST STOCKS-Property shares weigh on #Dubai bourse; other markets muted | Nasdaq
MIDEAST STOCKS-Property shares weigh on Dubai bourse; other markets muted | Nasdaq:
Major stock markets in the Gulf were little changed in early trade on Wednesday, with losses in real estate shares weighing on the Dubai index.
Saudi Arabia's benchmark index .TASI rose 0.1%, with Etihad Etisalat 7020.SE advancing 3.2% and utility firm Saudi Electricity 5110.SE gaining 1.5%, while state-owned Saudi Aramco 2222.SE slipped 0.3%.
The oil giant raised its November official selling price (OSP) for Arab Light crude to Asia by $0.10 a barrel, setting it at minus $0.40 per barrel versus Oman/Dubai average.
Aramco was expected to keep the OSP little changed for Asian buyers in line with Middle East benchmarks, according to a Reuters survey.
Dubai's main share index .TASI eased 0.3%, weighed by a 0.7% fall in Emaar Properties EMAR.DU and a 2.1% retreat in Emaar malls EMAA.DU.
The United Arab Emirates, with a population of around 9.9 million people, surpassed 100,000 recorded cases of COVID-19 infection on Tuesday.
Authorities have blamed people's poor adherence to social distancing for the rise. The government does not disclose where in the seven emirates that make up the UAE the cases occur.
In Abu Dhabi, the index .ADI edged up 0.1%, helped by a 0.5% increase in telecoms firm Etisalat ETISALAT.AD.
In Qatar, the index .ADI traded flat with Qatar Islamic Bank QISB.QA rising 0.7%.
Major stock markets in the Gulf were little changed in early trade on Wednesday, with losses in real estate shares weighing on the Dubai index.
Saudi Arabia's benchmark index .TASI rose 0.1%, with Etihad Etisalat 7020.SE advancing 3.2% and utility firm Saudi Electricity 5110.SE gaining 1.5%, while state-owned Saudi Aramco 2222.SE slipped 0.3%.
The oil giant raised its November official selling price (OSP) for Arab Light crude to Asia by $0.10 a barrel, setting it at minus $0.40 per barrel versus Oman/Dubai average.
Aramco was expected to keep the OSP little changed for Asian buyers in line with Middle East benchmarks, according to a Reuters survey.
Dubai's main share index .TASI eased 0.3%, weighed by a 0.7% fall in Emaar Properties EMAR.DU and a 2.1% retreat in Emaar malls EMAA.DU.
The United Arab Emirates, with a population of around 9.9 million people, surpassed 100,000 recorded cases of COVID-19 infection on Tuesday.
Authorities have blamed people's poor adherence to social distancing for the rise. The government does not disclose where in the seven emirates that make up the UAE the cases occur.
In Abu Dhabi, the index .ADI edged up 0.1%, helped by a 0.5% increase in telecoms firm Etisalat ETISALAT.AD.
In Qatar, the index .ADI traded flat with Qatar Islamic Bank QISB.QA rising 0.7%.