UAE-Israel-UAE Flight Schedules: Latest on Tel Aviv and Abu Dhabi, Dubai - Bloomberg:
Israel and the United Arab Emirates agreed on a deal to allow for 28 direct weekly passenger flights connecting Tel Aviv with Abu Dhabi and Dubai, according to a statement from Israel’s Transportation Ministry.
The flights will begin “within weeks” and came after significant commercial interest from airliners on both sides in the routes, the statement said. Both countries are in the process of developing economic and diplomatic agreements following the decision to normalize relations earlier this year.
Sunday 18 October 2020
Aramco, Sabic to Reassess $20 Billion Crude-to-Chemicals Project - Bloomberg
Aramco, Sabic to Reassess $20 Billion Crude-to-Chemicals Project - Bloomberg:
Saudi Aramco and Saudi Basic Industries Corp. will re-evaluate the scope of a planned crude-to-chemicals project in the kingdom as they seek to reduce spending amid a slump in prices for their products.
The two companies have decided to reassess the Yanbu project on the Red Sea coast -- which was expected to cost as much as $20 billion -- to incorporate existing facilities instead of building an entirely new one, Sabic said in a statement Sunday.
Aramco and Sabic were looking to shelve the project, or incorporate it with existing refineries, as part of plans to cut back on their spending, people familiar with the matter told Bloomberg in September.
Converting crude directly into chemicals, without having to refine the crude first, is part of Aramco’s plan to diversify away from selling oil and earn more profit from each barrel it pumps. Aramco, the world’s biggest oil company, aims to roughly double refining capacity to boost its unprofitable downstream unit. It also bought a 70% stake in chemical maker Sabic from Saudi Arabia’s sovereign wealth fund for $69 billion this year.
#Saudi investments in US treasury bonds up by $5.4bln monthly in August | ZAWYA MENA Edition
Saudi investments in US treasury bonds up by $5.4bln monthly in August | ZAWYA MENA Edition:
Saudi Arabia has increased its investments in US treasury bonds by 4.3% monthly in August 2020, equivalent to $5.4 billion.
Saudi investments in US treasury bonds recorded $130 billion in August, the highest in five months, compared with SAR 124.6 billion in July, official data showed.
Yearly, the kingdom’s investments in US treasury bonds fell by 29.3% or $53.8 billion.
Globally, Saudi Arabia ranked 16th among holders of US treasury bonds, whilst Japan was in the lead with $1.278 trillion, followed by China with $1.068 trillion.
The Gulf state was the top Arab country investing in US treasury bonds, followed by Kuwait with $46.4 billion and the UAE with $36.6 billion.
Saudi Arabia has increased its investments in US treasury bonds by 4.3% monthly in August 2020, equivalent to $5.4 billion.
Saudi investments in US treasury bonds recorded $130 billion in August, the highest in five months, compared with SAR 124.6 billion in July, official data showed.
Yearly, the kingdom’s investments in US treasury bonds fell by 29.3% or $53.8 billion.
Globally, Saudi Arabia ranked 16th among holders of US treasury bonds, whilst Japan was in the lead with $1.278 trillion, followed by China with $1.068 trillion.
The Gulf state was the top Arab country investing in US treasury bonds, followed by Kuwait with $46.4 billion and the UAE with $36.6 billion.
Mideast Stock Markets Trade Mixed With Oil in Focus: Inside EM - Bloomberg
Mideast Stock Markets Trade Mixed With Oil in Focus: Inside EM - Bloomberg:
The main equities gauge in Riyadh climbed while those in Kuwait and Abu Dhabi fell after leaders from Russia and Saudi Arabia discussed the OPEC+ agreement over the weekend and indicated further cooperation to support oil prices.
The Tadawul All Share Index climbed as much as 0.5% on Sunday in Riyadh, trimming its increase at the close to 0.1%. Gauges in Oman, Qatar and Israel also gained, while those in Dubai, Abu Dhabi, Kuwait and Egypt fell as much as 1.2%.
Russian President Vladimir Putin and Crown Prince Mohammed Bin Salman spoke Saturday in what the Kremlin said was a continuation of an Oct. 13 conversation. The latest call came two days before several OPEC+ ministers are set to discuss the implementation of production cuts during a meeting of the so-called Joint Ministerial Monitoring Committee.
This week’s intensive oil diplomacy comes as coronavirus cases surge in Europe and the Americas, weighing on the outlook for demand over the next few months.
The main equities gauge in Riyadh climbed while those in Kuwait and Abu Dhabi fell after leaders from Russia and Saudi Arabia discussed the OPEC+ agreement over the weekend and indicated further cooperation to support oil prices.
The Tadawul All Share Index climbed as much as 0.5% on Sunday in Riyadh, trimming its increase at the close to 0.1%. Gauges in Oman, Qatar and Israel also gained, while those in Dubai, Abu Dhabi, Kuwait and Egypt fell as much as 1.2%.
Russian President Vladimir Putin and Crown Prince Mohammed Bin Salman spoke Saturday in what the Kremlin said was a continuation of an Oct. 13 conversation. The latest call came two days before several OPEC+ ministers are set to discuss the implementation of production cuts during a meeting of the so-called Joint Ministerial Monitoring Committee.
This week’s intensive oil diplomacy comes as coronavirus cases surge in Europe and the Americas, weighing on the outlook for demand over the next few months.
#Dubai Financial Market rolls out equity futures platform | ZAWYA MENA Edition
Dubai Financial Market rolls out equity futures platform | ZAWYA MENA Edition:
The Dubai Financial Market (DFM) on Sunday introduced equity futures trading as part of its new Futures Trading Platform.
The debut platform has so far attracted 16 companies as launch partners and includes futures contracts on single stocks of some of the most liquid equities listed on DFM, including Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development and Emaar Malls, with tenures of one, two and three months.
The platform is expected to increase the range of its contracts, including index-based futures.
There are also plans to add REITs trading and expand DFM’s platforms, as well as attract new companies for listing in the coming period, according to Essa Kazim, chairman of DFM.
“The launch of this new platform is another milestone in DFM’s momentous journey. It underlines our commitment to diversify investment opportunities for DFM’s large and diversified base of local and international investors,” Kazim said.
The Dubai Financial Market (DFM) on Sunday introduced equity futures trading as part of its new Futures Trading Platform.
The debut platform has so far attracted 16 companies as launch partners and includes futures contracts on single stocks of some of the most liquid equities listed on DFM, including Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development and Emaar Malls, with tenures of one, two and three months.
The platform is expected to increase the range of its contracts, including index-based futures.
There are also plans to add REITs trading and expand DFM’s platforms, as well as attract new companies for listing in the coming period, according to Essa Kazim, chairman of DFM.
“The launch of this new platform is another milestone in DFM’s momentous journey. It underlines our commitment to diversify investment opportunities for DFM’s large and diversified base of local and international investors,” Kazim said.
#Israel, #UAE agree deal to boost investment in each other's economies | Reuters
Israel, UAE agree deal to boost investment in each other's economies | Reuters:
Israel and the United Arab Emirates (UAE) have reached a bilateral agreement that will give incentives and protection to investors who make investments in each other’s countries, both finance ministries said on Sunday.
The agreement is one of the first between the UAE and Israel after they agreed to normalise relations in August.
It is also the first such agreement Israel has forged with an Arab country and will become the 37th such treaty for Israel, with the 36 others mainly Western countries. The last was signed with Japan in 2017.
The UAE has signed 99 investment protection treaties and this one with Israel would strengthen economic ties, encourage competition and increase the attractiveness of investments between the two countries, UAE Finance Ministry Undersecretary Younis Haji Al Khoori said in a statement.
Israel and the United Arab Emirates (UAE) have reached a bilateral agreement that will give incentives and protection to investors who make investments in each other’s countries, both finance ministries said on Sunday.
The agreement is one of the first between the UAE and Israel after they agreed to normalise relations in August.
It is also the first such agreement Israel has forged with an Arab country and will become the 37th such treaty for Israel, with the 36 others mainly Western countries. The last was signed with Japan in 2017.
The UAE has signed 99 investment protection treaties and this one with Israel would strengthen economic ties, encourage competition and increase the attractiveness of investments between the two countries, UAE Finance Ministry Undersecretary Younis Haji Al Khoori said in a statement.
U.S. Election: Joe Biden Would Be a Sea Change For the Oil Price - Bloomberg
U.S. Election: Joe Biden Would Be a Sea Change For the Oil Price - Bloomberg:
I don't know who'll prevail in the U.S. election. But one thing we can probably all agree on is that incumbent leader President Donald Trump has had an extraordinary impact on the global oil market. From crippling the oil exports of Iran and Venezuela to taking credit for brokering the biggest-ever voluntary production cuts, Trump's fingerprints are all over.
How might that change after the November vote?
The U.S. oil industry
Things will carry on pretty much as they are if Trump retains his place in the White House. I couldn’t find any new initiatives on his campaign website, while the specific achievements listed on his energy and climate page consist mostly of reversing his predecessor’s actions.
The headline accomplishment of opening more leases and expanding offshore oil and gas drilling may not be all it seems. Fewer than 1% of the Gulf of Mexico blocks offered for lease attracted bids in the six completed sales so far during Trump’s presidency, according to documents posted on the Department of Interior’s website. Results of a seventh sale are due to be announced next month.
I don't know who'll prevail in the U.S. election. But one thing we can probably all agree on is that incumbent leader President Donald Trump has had an extraordinary impact on the global oil market. From crippling the oil exports of Iran and Venezuela to taking credit for brokering the biggest-ever voluntary production cuts, Trump's fingerprints are all over.
How might that change after the November vote?
The U.S. oil industry
Things will carry on pretty much as they are if Trump retains his place in the White House. I couldn’t find any new initiatives on his campaign website, while the specific achievements listed on his energy and climate page consist mostly of reversing his predecessor’s actions.
The headline accomplishment of opening more leases and expanding offshore oil and gas drilling may not be all it seems. Fewer than 1% of the Gulf of Mexico blocks offered for lease attracted bids in the six completed sales so far during Trump’s presidency, according to documents posted on the Department of Interior’s website. Results of a seventh sale are due to be announced next month.
Gulf Currency Pegs Offer Silver Lining in Era of Weaker Dollar - Bloomberg
Gulf Currency Pegs Offer Silver Lining in Era of Weaker Dollar - Bloomberg:
More than a decade ago, Gulf Arab nations struggled to preserve their currency pegs as the dollar went into retreat. This time, the link to a sliding greenback may give reassurance.
Back in 2007 and 2008, the weak dollar sent the cost of imports spiraling and allowed inflation to take hold. Now, the sluggish domestic demand has put a lid on price growth, while the dollar declines could give a boost to non-oil industries like tourism once the pandemic eases. Also out of the picture are the inflationary hot-money flows to the region when Brent crude was near $150 12 years ago.
“The decline in the dollar will be positive for the Gulf Cooperation Council once the impact from the Covid-19 pandemic softens,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank in the United Arab Emirates. “The dollar pegs still remain an important anchor to the economy and for capital inflows.”
The six GCC members have been running managed foreign-exchange regimes since the early 1970s. The system has survived successive years of low oil prices in the 1990s, a period of dollar weakness before the financial crisis in 2008 and another crude crash in 2014. Only Kuwait decided in May 2007 to link the dinar to a basket of currencies as inflation accelerated.
More than a decade ago, Gulf Arab nations struggled to preserve their currency pegs as the dollar went into retreat. This time, the link to a sliding greenback may give reassurance.
Back in 2007 and 2008, the weak dollar sent the cost of imports spiraling and allowed inflation to take hold. Now, the sluggish domestic demand has put a lid on price growth, while the dollar declines could give a boost to non-oil industries like tourism once the pandemic eases. Also out of the picture are the inflationary hot-money flows to the region when Brent crude was near $150 12 years ago.
“The decline in the dollar will be positive for the Gulf Cooperation Council once the impact from the Covid-19 pandemic softens,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank in the United Arab Emirates. “The dollar pegs still remain an important anchor to the economy and for capital inflows.”
The six GCC members have been running managed foreign-exchange regimes since the early 1970s. The system has survived successive years of low oil prices in the 1990s, a period of dollar weakness before the financial crisis in 2008 and another crude crash in 2014. Only Kuwait decided in May 2007 to link the dinar to a basket of currencies as inflation accelerated.
OPEC+ Faces Growing Pressure to Change Course as Ministers Meet - Bloomberg
OPEC+ Faces Growing Pressure to Change Course as Ministers Meet - Bloomberg: 
When OPEC and its allies met last month, Saudi Arabia’s energy minister dared oil speculators to test his determination to stabilize global markets.
Now that a resurgent pandemic is threatening demand once again, the moment of reckoning is getting closer.
The coalition of crude producers gathers on Monday to assess the state of the market. No supply decisions are expected until Dec. 1 but leading members Saudi Arabia and Russia are already stepping up diplomacy. President Vladimir Putin and Saudi Arabia Crown Prince Mohammed Bin Salman have spoken twice by phone in a week -- the first time the countries’ leaders have done that since the depths of the oil crisis in April, when they were hashing out a deal to cut supply and bring the price war to an end.
With oil stuck at around $40, and more supply coming online from Libya, the cartel is now under pressure to revise its plan to ease those output cuts. It has already relaxed them by about 2 million barrels a day, and is due to add another 1.9 million in January.
‘Made in #Iran’ Beats Sanctions in Economy Donald Trump Tried to Crush - Bloomberg
‘Made in Iran’ Beats Sanctions in Economy Donald Trump Tried to Crush - Bloomberg:
There can’t have been many worse times to start a new business in Iran. Even before officials in the Islamic Republic alerted the public to a major outbreak of the coronavirus, the country started the year in a tense standoff with the U.S. while its economy was being crippled by sanctions.
For a trio of design graduates, a captive market of tens of millions of consumers starved of imports made it worth the risk. Their fashion brand, Koi, has sold thousands of crop tops and striped jeans since July.
“Made in Iran” has emerged as a rare glimmer of hope in the financial destruction from being ostracized from the oil market and global trade while Covid-19 rages. In a country where so many people’s lives have been defined by cycles of Western restrictions, brands like Koi, Zi Shampoo and Bonmano Coffee are among the homespun names that are filling the vacuum for consumer goods.
“We just knew it would work because we ourselves and so many people around us were so desperate for basic, simple things,” said Armita Ghasabi, 30, one of Koi’s founders.
There can’t have been many worse times to start a new business in Iran. Even before officials in the Islamic Republic alerted the public to a major outbreak of the coronavirus, the country started the year in a tense standoff with the U.S. while its economy was being crippled by sanctions.
For a trio of design graduates, a captive market of tens of millions of consumers starved of imports made it worth the risk. Their fashion brand, Koi, has sold thousands of crop tops and striped jeans since July.
 |
The Koi design team at their studio on the outskirts of Tehran, including co-founders Armita Ghasabi, Fojan Fard and Yasaman Ghanbari and data analyst Soheil Zhalepour. Photographer: Ali Mohammadi/Bloomberg |
“Made in Iran” has emerged as a rare glimmer of hope in the financial destruction from being ostracized from the oil market and global trade while Covid-19 rages. In a country where so many people’s lives have been defined by cycles of Western restrictions, brands like Koi, Zi Shampoo and Bonmano Coffee are among the homespun names that are filling the vacuum for consumer goods.
“We just knew it would work because we ourselves and so many people around us were so desperate for basic, simple things,” said Armita Ghasabi, 30, one of Koi’s founders.
500 Startups appoints Shuaa Capital as advisor to its MENA fund | ZAWYA MENA Edition
500 Startups appoints Shuaa Capital as advisor to its MENA fund | ZAWYA MENA Edition:
US-based global venture capital firm 500 Startups has appointed Dubai’s Shuaa Capital as advisor to its Falcons 1 Fund in the Middle East and North Africa (MENA) region.
The Dubai-listed firm will focus its support on advising 500 Startups’ Falcons 1 portfolio companies in financing and exit strategies, as the company’s MENA fund nears the end of its deployment.
Shuaa will be represented by its chief executive officer, Jassim Alseddiqi.
The chief executive said they are proud to align themselves with “world-class” institutions such as 500 Startups.
“500 Startups is a powerhouse in MENA with a unique global platform that has contributed significantly to the startup ecosystem. Having built a deep network of investors and investments across [the region] with Shuaa, I look forward to guiding and collaborating with founders to take their businesses to the next level, whether through further development or exit strategies,” said Alseddiqi.
US-based global venture capital firm 500 Startups has appointed Dubai’s Shuaa Capital as advisor to its Falcons 1 Fund in the Middle East and North Africa (MENA) region.
The Dubai-listed firm will focus its support on advising 500 Startups’ Falcons 1 portfolio companies in financing and exit strategies, as the company’s MENA fund nears the end of its deployment.
Shuaa will be represented by its chief executive officer, Jassim Alseddiqi.
The chief executive said they are proud to align themselves with “world-class” institutions such as 500 Startups.
“500 Startups is a powerhouse in MENA with a unique global platform that has contributed significantly to the startup ecosystem. Having built a deep network of investors and investments across [the region] with Shuaa, I look forward to guiding and collaborating with founders to take their businesses to the next level, whether through further development or exit strategies,” said Alseddiqi.
#Dubai rental market hits 'all-time low', says latest JLL report - Arabianbusiness
Dubai rental market hits 'all-time low', says latest JLL report - Arabianbusiness:
Rental rates in Dubai hit an all-time low in the third quarter of the year.
According to JLL’s latest UAE Real Estate Market Performance report, rents in the emirate fell by 12 percent year-on-year, surpassing the lowest point on the rental index from almost a decade ago in 2010/11.
And experts from the real estate outfit are expecting the sector to continue being a favourable one for tenants.
The report said: “Looking ahead, the residential market is expected to remain under pressure in the short-term in light of various macro uncertainties, namely high unemployment rates and a slowdown in population growth. This is in addition to subdued investor sentiment on a global level.
“As such, we expect developers to continue offering a range of incentives (fee waivers, discounts, rent-to-own), as well as partner with banks in offering reasonable home finance options to attract new investors and end-users looking to take advantage of the lower prices.”
Rental rates in Dubai hit an all-time low in the third quarter of the year.
According to JLL’s latest UAE Real Estate Market Performance report, rents in the emirate fell by 12 percent year-on-year, surpassing the lowest point on the rental index from almost a decade ago in 2010/11.
And experts from the real estate outfit are expecting the sector to continue being a favourable one for tenants.
The report said: “Looking ahead, the residential market is expected to remain under pressure in the short-term in light of various macro uncertainties, namely high unemployment rates and a slowdown in population growth. This is in addition to subdued investor sentiment on a global level.
“As such, we expect developers to continue offering a range of incentives (fee waivers, discounts, rent-to-own), as well as partner with banks in offering reasonable home finance options to attract new investors and end-users looking to take advantage of the lower prices.”
Most Gulf Markets little changed in quiet early trade
Most Gulf Markets little changed in quiet early trade
Most major stock markets in the Gulf were little changed in early trade on Sunday.
Saudi Arabia's benchmark index .TASI gained 0.4%, led by a 0.8% rise in Al Rajhi Bank 1120.SE a 1.3% increase in petrochemical maker Saudi Basic Industries 2010.SE.
Dubai's main share index .DFMGI edged up 0.2%, with Emirates NBD Bank ENBD.DU rising 1%.
The Abu Dhabi index .ADI eased 0.1%, hurt by a 1.2% fall in Abu Dhabi Commercial Bank ADCB.AD and a 0.2% decrease in the country's largest lender First Abu Dhabi Bank FAB.AD.
On Wednesday, the United Arab Emirates' largest lender denied a local news report it was in merger talks with Abu Dhabi Islamic Bank ADIB.AD.
Shares of Abu Dhabi Islamic Bank added 0.5%.
In Qatar, the index .QSI lost 0.2%, with Qatar Islamic Bank QISB.QA losing 0.9% and Qatar National Bank QNBK.QA, the Gulf's largest lender, was down 0.4%.
Jet Airways creditors agree to new owners after months of talks | Reuters
Jet Airways creditors agree to new owners after months of talks | Reuters:
India’s Jet Airways would be acquired by an investor consortium under a multi-million dollar resolution plan approved by the carrier’s creditors on Saturday.
The plan submitted by a consortium of London-based Kalrock Capital and UAE-based businessman Murari Lal Jalan comes after months of talks over the airline’s future and was confirmed in a regulatory filing, which gave no details of the deal.
A source close to the situation said the new owners had agreed to pump in 10 billion rupees ($136 million) as working capital for the revival of the airline. Another 10 billion rupees will be given to creditors over a period of five years.
Financial creditors of the airline will also get 10% stake in the company, the source said, though the plan remains subject to approvals from the bankruptcy court and the country’s airline regulator.
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.
