Three strongmen and their battle for the Middle East | Financial Times

Three strongmen and their battle for the Middle East | Financial Times:

Copyright: James Ferguson

Vladimir Putin, Recep Tayyip Erdogan and Mohammed bin Salman have a lot in common. The Russian, Turkish and Saudi leaders are all nationalists with regional ambitions. They are autocrats who have centralised power and have been ruthless with domestic political opposition. And they are all risk-takers, who are happy to use military force.

These three strongmen are also believers in the diplomacy of personal relations. Like mafia dons, they can be best friends one day and bitter enemies the next. That matters because their often conflicting interests are fomenting conflict across a swath of territory from the Middle East to north Africa and the Caucasus. If their rivalries get out of hand, civilians will suffer. 


The relationship between Mr Putin and Mr Erdogan is particularly peculiar. The presidents of Russia and Turkey have backed conflicting sides in three regional conflicts — Syria, Libya and now Nagorno-Karabakh. At times, they have clashed directly — the Turks shot down a Russian plane over Syria in 2015. Turkish troops were killed in bombing raids in Syria, earlier this year, by Moscow-backed Syrian forces.

Yet the Russian and Turkish leaders retain a wary friendship. To the outrage of its Nato allies, Turkey chose to buy S-400 anti-aircraft missiles from Russia. When Mr Erdogan was almost overthrown in a 2016 coup attempt, Mr Putin quickly offered support, while the US remained silent.

#Oman to Join Gulf Neighbors by Introducing 5% Value-Added Tax - Bloomberg

Oman to Join Gulf Neighbors by Introducing 5% Value-Added Tax - Bloomberg:

Cash-strapped Oman is planning to introduce a 5% value-added tax in April, following the lead of Gulf neighbors.

Essential food items, medical care, education and financial services will be exempt from the planned levy, according to a royal decree detailing the tax on Monday.

Oman, the biggest oil exporter outside OPEC, was among the more vulnerable economies in the six-nation Gulf Cooperation Council even before it was lashed by falling crude prices and the coronavirus pandemic. Its budget deficit as a share of gross domestic product is anticipated to be among the highest in the region, according to the International Monetary Fund.

Middle East construction industry 'in crisis', more casualties loom, warns expert - Arabianbusiness

Middle East construction industry 'in crisis', more casualties loom, warns expert - Arabianbusiness:

A leading consultant has warned that the Middle East's construction industry is “in crisis” and Dubai-based giant Arabtec, which is set to go into liquidation, will not be the last high profile casualty unless changes are made in the sector.

The Dubai government last week passed a new building code, aimed at reducing construction costs by streamlining building rules.

However, Kenny Linn, partner – capital project services leader at PwC Middle East, told Arabian Business the current delivery model is not sustainable and less aligned to the ambitions of the region.

He said: “The collapse of Arabtec is symptomatic of an industry that is in crisis. Lowest price competitive tendering, inequitable risk allocation, low profit margins, uncertain pipeline and late payments drag the construction industry down meaning that it is challenging for the sector to invest in building new skills and innovation that will boost productivity and improve delivery.”

ICE says to launch ADNOC's Murban oil futures early in 2021 | Reuters

ICE says to launch ADNOC's Murban oil futures early in 2021 | Reuters:

Intercontinental Exchange Inc. ICE.N said on Monday it planned to launch ICE Futures Abu Dhabi (IFAD) and trading in Murban futures contracts late in the first quarter of 2021.

Abu Dhabi National Oil Company (ADNOC) said last year its flagship Murban crude would be traded on a new local exchange, IFAD, that would be owned by Abu Dhabi, several oil firms and ICE, the home to trading in Brent crude LCOc1.

“ICE Murban Futures will be a physically delivered contract with delivery at Fujairah in the United Arab Emirates (UAE) on a free on board (FOB) basis,” ICE said in a statement.

The contract “will be complemented with a range of cash settled derivatives which IFAD plan to launch for day one of trading,” it added.

Oil prices fall 3% as U.S., Libyan, Norwegian supplies resume | Reuters

Oil prices fall 3% as U.S., Libyan, Norwegian supplies resume | Reuters:

Oil prices settled about 3% lower on Monday as force majeure at Libya’s largest oilfield was lifted, a Norwegian strike affecting production ended and U.S. producers began restoring output after Hurricane Delta.

Brent crude LCOc1 settled down $1.13, or 2.6%, to $41.72 a barrel. U.S. West Texas Intermediate CLc1 ended 2.9%, or $1.17, lower at $39.43.

Production in Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), is expected to rise to 355,000 barrels per day (bpd) after force majeure at the Sharara oilfield was lifted on Sunday.

Rising Libyan output will pose a challenge to OPEC+ - a group comprising OPEC and allies including Russia - and its efforts to curb supply to support prices.

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.

COLUMN-LNG goes from doghouse to podium as weather fears stoke rally: Russell | Reuters

COLUMN-LNG goes from doghouse to podium as weather fears stoke rally: Russell | Reuters:

Spot liquefied natural gas (LNG) prices in Asia have roared back to life in recent weeks, boosted by temporary and longer-lasting factors and recovering from being one of the commodities hardest hit by the coronavirus pandemic.

Spot cargoes for delivery in November to northeast Asia LNG-AS were assessed at $5.50 per million British thermal units (mmBtu) in the week ended Oct. 9, the highest price this year and a sixth consecutive weekly gain.

That nearly triples a record low of $1.85 per mmBtu, hit in separate weeks in May when many of Asia’s economies were locked down to combat the spread of the coronavirus.

Among the factors now driving spot LNG prices higher is the expectation of stronger demand over the northern winter, as colder temperatures are forecast due to the likely emergence of a La Nina weather phenomenon.

NCB Buying Samba Financial Group: Latest News on 2020 Big Takeover - Bloomberg

NCB Buying Samba Financial Group: Latest News on 2020 Big Takeover - Bloomberg:

National Commercial Bank, Saudi Arabia’s largest lender by assets, agreed to buy rival Samba Financial Group for $15 billion in the biggest banking takeover this year.

NCB will pay 28.45 riyals ($7.58) for each Samba share, based on Thurday’s close, valuing the smaller lender at about 55.7 billion riyals. The kingdom’s sovereign wealth fund, the biggest single shareholder in the two banks, will have the largest stake in the combined entity with 37.2%.

The new bank will have total assets of more than $220 billion, creating the Gulf region’s third-largest lender. Its $46 billion market capitalization nearly matches that of Qatar National Bank QPSC, which is still the Middle East’s biggest lender with about $268 billion of assets.

NCB shares rose as much as 3.6% on Monday, the most in over three months, before trimming their increase to 1.3% as of 11:56 a.m. in Riyadh. Samba climbed as much as 3.1% to trade at the highest level since February, before paring its gain to 2.2%.

Middle East News: Gas Investment to Rise Despite Coronavirus Price Slump - Bloomberg

Middle East News: Gas Investment to Rise Despite Coronavirus Price Slump - Bloomberg:

Investment in natural gas projects across the Middle East and North Africa will rise, even as the coronavirus pandemic damps demand for the fuel, according to Arab Petroleum Investments Corp.

Gas projects planned or under development in the region will require around $211 billion in investment between 2020 and 2024, the multilateral lender said Monday in a statement. In its previous investment outlook, Apicorp estimated that spending would total $185 billion between 2019 and 2023.

Expansion of output in Qatar, the biggest exporter of liquefied natural gas, will account for $22 billion of planned investment, Saudi Arabia-based Apicorp said. Iran and Saudi Arabia are set to see the most activity, with almost $90 billion of planned and committed investment between them by 2024.

Middle Eastern states are lining up new gas projects while cutting oil-related investments, though the pandemic has battered prices for both fossil fuels. This is partly because governments are promoting the use of gas to produce electricity instead of crude, a more polluting alternative.

Businessman Shetty seeks India probe of NMC, Finablr ex-CEOs over $6 billion scandal | Reuters

Businessman Shetty seeks India probe of NMC, Finablr ex-CEOs over $6 billion scandal | Reuters:

Indian entrepreneur BR Shetty has filed a complaint with federal investigative agencies in India seeking a probe into two former top executives of his companies and two Indian banks related to a multibillion dollar financial scandal engulfing his group.

Several companies linked to Shetty, including top United Arab Emirates hospital operator NMC Health PLC and payments firm Finablr PLC FINF.L, have come under severe financial strain this year after short-seller Muddy Waters questioned NMC's financials.

At issue, Muddy Waters said, were questions about NMC’s asset purchase prices and capital expenditures, which it said were both inflated.

NMC and Finablr subsequently announced far higher debts than they had previously reported.

Shetty’s 55-page complaint, a copy of which was seen by Reuters, accuses the former chief executives of NMC and Finablr, along with their associates and bankers, of inflating the companies’ balance sheets, arranging “illegal” credit facilities and misappropriating funds since 2012.

Informal #Saudi ban on Turkish goods hits global fashion retailers | Financial Times

Informal Saudi ban on Turkish goods hits global fashion retailers | Financial Times:

A de facto Saudi ban on Turkish goods has hit global fashion brands in the latest sign of the escalating rivalry between the regional powers.

Saudi Arabia has “banned all imports for made in Turkey products”, an employee at clothing group Mango told Turkish suppliers in an email seen by the Financial Times.

The Spanish company, which is one of a number of European and US fashion retailers with manufacturing facilities in Turkey, said in a statement that its teams “are looking into alternatives to the slowing down of custom processes for products of Turkish origin in Saudi Arabia”.

Mustafa Gultepe, head of Istanbul Apparel Exporters’ Association (IHKIB), said all retailers producing in Turkey and exporting to the Gulf state were affected. “We are talking about all global brands that have stores in Saudi Arabia, produce in Turkey and sell over there,” he told the FT.

MIDEAST STOCKS-Major Gulf markets gain as financial shares rise | Nasdaq

MIDEAST STOCKS-Major Gulf markets gain as financial shares rise | Nasdaq:

Major stock markets rose in early trade on Monday, with gains in National Commercial Bank and Samba Financial Group helping the Saudi index after they signed a binding merger agreement.

The benchmark index .TASI in Saudi Arabia gained 0.2%, with Samba Financial Group 1090.SE rising 2.7%, while National Commercial Bank (NCB) 1180.SE was up 1.7%.

National Commercial Bank, the kingdom's biggest lender, entered a binding merger agreement with smaller lender Samba Financial Group to create a combined entity with 837 billion riyals ($223.13 billion) in assets, NCB said on Sunday.

Low oil prices and weak economic growth are driving bank consolidation across the Gulf.

Dubai's main share index .DFMGI rose 0.4%, with blue-chip developer Emaar Properties EMAR.DU gaining 1.5% and it unit Emaar Malls EMAA.DU was up 2.1%.

Dubai's non-oil private sector expanded for a third consecutive month in September as it continued to see a modest improvement in business conditions, a survey showed on Sunday.

The seasonally adjusted IHS Markit Dubai Purchasing Managers' Index (PMI) rose to 51.5 in September from 50.9 in August.

The Abu Dhabi index .ADI added 0.3%, helped by a 0.5% rise in the country's largest lender First Abu Dabhi Bank FAB.AD and a 1.5% increase in Aldar Properties ALDAR.AD.

In Qatar, the index.QS inched up 0.2%, bolstered by a 0.6% rise in Qatar National Bank QNBK.QA, a day after it retreated 1.7%.

On Sunday, the Gulf's largest lender saw a roughly 18% decline in its third-quarter profit as it booked more loan loss provisions amid global economic uncertainty.

Oil prices fall as supply concerns ease | Reuters

Oil prices fall as supply concerns ease | Reuters:

Oil prices fell on Monday as force majeure at Libya’s largest oilfield was lifted, a Norwegian strike affecting production ended and U.S. producers began restoring output after Hurricane Delta. 

Brent crude LCOc1 was down 41 cents to $42.44 a barrel by 0650 GMT and U.S. West Texas Intermediate CLc1 was at $40.18, down 42 cents.

“It’s all about ending production disruptions ... (which) are not helpful in a period with ongoing demand concerns,” UBS oil analyst Giovanni Staunovo said.

Production in Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), is expected to rise to 355,000 barrels per day (bpd) after force majeure at the Sharara oilfield was lifted on Sunday.