NCB-Samba to merge into Saudi banking heavyweight | Reuters:
Saudi Arabia's biggest lender National Commercial Bank 1180.SE (NCB) has entered a binding merger agreement with smaller lender Samba Financial Group 1090.SE to create a combined entity with 837 billion riyals ($223 billion) in assets, NCB said on Sunday.
Low oil prices and weak economic growth are pushing bank consolidation across the Gulf.
Once completed, the NCB-Samba tie-up would create the Gulf region's third largest lender by assets, after Qatar National Bank (QNB) and UAE's First Abu Dhabi Bank FAB.AD.
NCB agreed to pay 28.45 riyals for each Samba share, valuing it at approximately 55.7 billion riyals ($14.85 billion), NCB said in a bourse filing. That corresponds to a 3.5% premium to Samba’s closing share price on Oct. 8, the last business day before Sunday’s announcement.
Sunday 11 October 2020
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #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.
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.
Libya Gets Ready to Pump More Oil as It Reopens Biggest Field - Bloomberg
Libya Gets Ready to Pump More Oil as It Reopens Biggest Field - Bloomberg:
Libya took a major step toward reviving its battered oil industry by reopening its biggest field, presenting a new headache for OPEC+ as the alliance of major producers tries to curb global supplies.
The National Oil Corp., Libya’s state energy company, lifted force majeure on the western deposit of Sharara and instructed its operator to resume production, according to a statement on Sunday. The field will initially pump 40,000 barrels of crude a day, before reaching its capacity of almost 300,000 barrels in 10 days, a person with knowledge of the situation said.
That would roughly double Libya’s overall output to about 600,000 barrels a day, said the person, who asked not to be identified because they aren’t authorized to speak to media.
Sharara’s reopening follows a truce in Libya’s long-running civil war that’s already led to many oil fields and ports in the east starting up after an almost total shutdown since January.
Libya took a major step toward reviving its battered oil industry by reopening its biggest field, presenting a new headache for OPEC+ as the alliance of major producers tries to curb global supplies.
The National Oil Corp., Libya’s state energy company, lifted force majeure on the western deposit of Sharara and instructed its operator to resume production, according to a statement on Sunday. The field will initially pump 40,000 barrels of crude a day, before reaching its capacity of almost 300,000 barrels in 10 days, a person with knowledge of the situation said.
That would roughly double Libya’s overall output to about 600,000 barrels a day, said the person, who asked not to be identified because they aren’t authorized to speak to media.
Sharara’s reopening follows a truce in Libya’s long-running civil war that’s already led to many oil fields and ports in the east starting up after an almost total shutdown since January.
Telecom giant Zain #Saudi to cut capital by $360mln to offset losses | ZAWYA MENA Edition
Telecom giant Zain Saudi to cut capital by $360mln to offset losses | ZAWYA MENA Edition:
Mobile Telecommunications Company Saudi Arabia (Zain KSA) has decided to cut its capital by nearly a quarter or 1.35 billion Saudi riyals ($360 million).
The move to reduce the capital from 5.8 billion riyals to approximately 4.5 billion is intended to write off the telecom firm’s accumulated losses, which were estimated to be at 1,444 million riyals as of June 30, 2020.
The company is 37 percent owned by Kuwait’s Zain Group. It had earlier said that it achieved “notable” financial results during the first six months of the year, with its net profit hitting 164 million riyals and revenues reaching 3,928 million.
The capital reduction, which had been recommended by the firm’s board of directors, was approved during the Extraordinary General Assembly.
Mobile Telecommunications Company Saudi Arabia (Zain KSA) has decided to cut its capital by nearly a quarter or 1.35 billion Saudi riyals ($360 million).
The move to reduce the capital from 5.8 billion riyals to approximately 4.5 billion is intended to write off the telecom firm’s accumulated losses, which were estimated to be at 1,444 million riyals as of June 30, 2020.
The company is 37 percent owned by Kuwait’s Zain Group. It had earlier said that it achieved “notable” financial results during the first six months of the year, with its net profit hitting 164 million riyals and revenues reaching 3,928 million.
The capital reduction, which had been recommended by the firm’s board of directors, was approved during the Extraordinary General Assembly.
QNB nine-month net profit falls as it books more provisions | Reuters
QNB nine-month net profit falls as it books more provisions | Reuters:
Qatar National Bank's QNBK.QA net profit in the nine months ending in September fell to 9.5 billion riyals ($2.61 billion), down 15% from a year earlier.
The Gulf’s biggest lender set aside additional loan loss provisions of 1.9 billion riyals, it said on Sunday.
Operating income in the first nine months of 2020 rose 1% to 19.2 billion riyals.
Qatar National Bank's QNBK.QA net profit in the nine months ending in September fell to 9.5 billion riyals ($2.61 billion), down 15% from a year earlier.
The Gulf’s biggest lender set aside additional loan loss provisions of 1.9 billion riyals, it said on Sunday.
Operating income in the first nine months of 2020 rose 1% to 19.2 billion riyals.
#AbuDhabi hospital operator NMC gets $325m to pay off salaries and make $65m credit payment | Banking – Gulf News
Abu Dhabi hospital operator NMC gets $325m to pay off salaries and make $65m credit payment | Banking – Gulf News:
The money is in the bank… all $325 million of it. That will be enough for NMC Healthcare to meet short-term payment priorities, including salary obligations for its 13,000 strong workforce and operational expenses.
With the new funds flowing in, the majority coming from ADCB, it also sets a marker for what is going to be an extremely complex corporate revival plan. This could see NMC selling key assets to regain a measure of financial strength and thus be better placed to pay off the debt pile – upwards of $6 billion - accumulated under the previous management.
The $325 million was released as part of NMC Healthcare coming under the mandate of ADGM (Abu Dhabi Global Market earlier this month. (It has been earmarked as ‘Administrative Funding Facility’.)
“The plan could be to sell healthcare assets in the UK and the whole of the Barcelona-based Clinica Eugin’s global assets," said a banker closely associated with the NMC restructuring process. “Both were acquired in recent years. These are financially sound businesses and should get valuations close to what the administrators would be hoping for.”
The money is in the bank… all $325 million of it. That will be enough for NMC Healthcare to meet short-term payment priorities, including salary obligations for its 13,000 strong workforce and operational expenses.
With the new funds flowing in, the majority coming from ADCB, it also sets a marker for what is going to be an extremely complex corporate revival plan. This could see NMC selling key assets to regain a measure of financial strength and thus be better placed to pay off the debt pile – upwards of $6 billion - accumulated under the previous management.
The $325 million was released as part of NMC Healthcare coming under the mandate of ADGM (Abu Dhabi Global Market earlier this month. (It has been earmarked as ‘Administrative Funding Facility’.)
“The plan could be to sell healthcare assets in the UK and the whole of the Barcelona-based Clinica Eugin’s global assets," said a banker closely associated with the NMC restructuring process. “Both were acquired in recent years. These are financially sound businesses and should get valuations close to what the administrators would be hoping for.”
Shuaa launches $200 million Financing Opportunities Fund | Markets – Gulf News
Shuaa launches $200 million Financing Opportunities Fund | Markets – Gulf News:
Shuaa Capital on Sunday announced that it has launched a $200 million ‘Shuaa Financing Opportunities Fund’ targeting special situations in the GCC. The fund has already attracted a total of $68 million in commitments from investors.
Following Shuaa ‘s recent success in the private credit space in deploying and returning in excess of $250 million to investors and generating mid-teen returns of about 15 per cent in addition to $3 billion of structured and raised funding across all portfolio companies, the company is excited to be launching its first dedicated financing fund.
The key objective of Shuaa Financing Opportunities Fund, a closed ended fund with a four-year tenor, is to generate income yield and preserve capital, through a well identified mandate covering targeted and strategic investments in senior, mezzanine and unitranche Sharia-compliant financing for corporates and developers operating in the GCC region.
Shuaa Financing Opportunities Fund is the fourth fund to be announced by SHUAA in 2020. The firm continues to attract capital from investors, and has raised over $140 million in the last 3 months, demonstrating the Company’s strength, expertise and track record In the region.
Shuaa Capital on Sunday announced that it has launched a $200 million ‘Shuaa Financing Opportunities Fund’ targeting special situations in the GCC. The fund has already attracted a total of $68 million in commitments from investors.
Following Shuaa ‘s recent success in the private credit space in deploying and returning in excess of $250 million to investors and generating mid-teen returns of about 15 per cent in addition to $3 billion of structured and raised funding across all portfolio companies, the company is excited to be launching its first dedicated financing fund.
The key objective of Shuaa Financing Opportunities Fund, a closed ended fund with a four-year tenor, is to generate income yield and preserve capital, through a well identified mandate covering targeted and strategic investments in senior, mezzanine and unitranche Sharia-compliant financing for corporates and developers operating in the GCC region.
Shuaa Financing Opportunities Fund is the fourth fund to be announced by SHUAA in 2020. The firm continues to attract capital from investors, and has raised over $140 million in the last 3 months, demonstrating the Company’s strength, expertise and track record In the region.
Covid-19 Is Big Oil's Asteroid Strike - Bloomberg
Covid-19 Is Big Oil's Asteroid Strike - Bloomberg:
Covid-19 may do for Big Oil what the Chicxulub asteroid did for the dinosaurs when it struck Earth 66 million years ago.
Much like the “terrible lizards,” Big Oil was already in decline before the novel coronavirus hit. The world in which they thrived is changing around them and they face multiple threats to their future health. But the outbreak’s impact has accelerated the process.
The pandemic has slashed oil demand, taking prices down with it. Producers everywhere were slow to react. Now the recovery is taking longer than initially expected, as infection rates remain stubbornly high in the U.S. and they spike again in Europe.
For this horrible year, the International Energy Agency sees global oil demand 8.4 million barrels a day lower than it was in 2019. In 2021 it will still be 2.5 million barrels a day down on last year. The other major oil forecasting agencies see a similar future. That makes the next couple of years an uncomfortable time for all oil producers.
Covid-19 may do for Big Oil what the Chicxulub asteroid did for the dinosaurs when it struck Earth 66 million years ago.
Much like the “terrible lizards,” Big Oil was already in decline before the novel coronavirus hit. The world in which they thrived is changing around them and they face multiple threats to their future health. But the outbreak’s impact has accelerated the process.
The pandemic has slashed oil demand, taking prices down with it. Producers everywhere were slow to react. Now the recovery is taking longer than initially expected, as infection rates remain stubbornly high in the U.S. and they spike again in Europe.
For this horrible year, the International Energy Agency sees global oil demand 8.4 million barrels a day lower than it was in 2019. In 2021 it will still be 2.5 million barrels a day down on last year. The other major oil forecasting agencies see a similar future. That makes the next couple of years an uncomfortable time for all oil producers.
#UAE News: #Dubai Business Conditions Improve as Coronavirus Cases Spike - Bloomberg
UAE News: Dubai Business Conditions Improve as Coronavirus Cases Spike - Bloomberg:
Business conditions in Dubai improved for the third straight month in September even as a renewed spike in coronavirus cases poses a threat to the city’s recovery.
Non-oil private sector activity in the Middle East’s business hub fared better amid a rise in activity and new business, according to IHS Markit. Its Purchasing Managers’ Index rose to 51.5 last month from 50.9 in August, remaining above the 50 mark that separates contraction from growth.
“The PMI has failed to lift off or signal any strong rebounds in output so far, with firms often initiating price cuts in order to drive sales higher,” said David Owen, economist at IHS Markit. “Meanwhile, employment data signaled a cautious outlook as firms often shed workers to manage cost pressures and enable discounting.”
In the United Arab Emirates, of which Dubai is a part, the recent surge in cases is raising the prospect that new restrictions may be needed to stop the contagion. The country’s central bank already anticipates that the OPEC member’s economy will shrink 5.2% this year, suffering a deeper contraction than first estimated.
Business conditions in Dubai improved for the third straight month in September even as a renewed spike in coronavirus cases poses a threat to the city’s recovery.
Non-oil private sector activity in the Middle East’s business hub fared better amid a rise in activity and new business, according to IHS Markit. Its Purchasing Managers’ Index rose to 51.5 last month from 50.9 in August, remaining above the 50 mark that separates contraction from growth.
In the United Arab Emirates, of which Dubai is a part, the recent surge in cases is raising the prospect that new restrictions may be needed to stop the contagion. The country’s central bank already anticipates that the OPEC member’s economy will shrink 5.2% this year, suffering a deeper contraction than first estimated.
Mideast Stocks - Major Gulf markets mixed; petrochemicals aid #Saudi shares | ZAWYA MENA Edition
Mideast Stocks - Major Gulf markets mixed; petrochemicals aid Saudi shares | ZAWYA MENA Edition:
Major stock markets in the Gulf were mixed in early trade on Sunday, with gains in petrochemical shares helping the Saudi index.
The kingdom's benchmark index rose 0.6%, with petrochemical maker Saudi Basic Industries advancing 2.3%, while Saudi Electricity Company leapt 3.7%.
A worsening global oil demand outlook will prompt OPEC to reverse a planned easing of oil cuts in 2021 with Saudi Arabia offering deeper cuts below its current quota, J.P. Morgan said on Friday in a research note.
Dubai's main share index edged up 0.1%, supported by a 1.7% rise in Aramex and a 1.5% increase in Emirates Integrated Telecommunications.
On Thursday, Aramex said it will book provisions of $15.1 million for damage caused to its warehouse facility in Beirut and partial damage to three storage chambers in Casablanca.
The logistics firm, however, said it maintains comprehensive insurance coverage policies which should cover both incidents.
The Abu Dhabi index lost 0.4%, with First Abu Dhabi Bank, the United Arab Emirates' largest lender, dropping 0.5% and telecoms firm Etisalat down 0.4%.
In Qatar, the index declined 0.6%, driven down by a 1.3% fall Qatar National Bank and a 0.9% drop in petrochemical firm Industries Qatar.
Major stock markets in the Gulf were mixed in early trade on Sunday, with gains in petrochemical shares helping the Saudi index.
The kingdom's benchmark index rose 0.6%, with petrochemical maker Saudi Basic Industries advancing 2.3%, while Saudi Electricity Company leapt 3.7%.
A worsening global oil demand outlook will prompt OPEC to reverse a planned easing of oil cuts in 2021 with Saudi Arabia offering deeper cuts below its current quota, J.P. Morgan said on Friday in a research note.
Dubai's main share index edged up 0.1%, supported by a 1.7% rise in Aramex and a 1.5% increase in Emirates Integrated Telecommunications.
On Thursday, Aramex said it will book provisions of $15.1 million for damage caused to its warehouse facility in Beirut and partial damage to three storage chambers in Casablanca.
The logistics firm, however, said it maintains comprehensive insurance coverage policies which should cover both incidents.
The Abu Dhabi index lost 0.4%, with First Abu Dhabi Bank, the United Arab Emirates' largest lender, dropping 0.5% and telecoms firm Etisalat down 0.4%.
In Qatar, the index declined 0.6%, driven down by a 1.3% fall Qatar National Bank and a 0.9% drop in petrochemical firm Industries Qatar.
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #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.
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.
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