Oil dips after OPEC+ meeting as Libyan supply boost weighs | Reuters

Oil dips after OPEC+ meeting as Libyan supply boost weighs | Reuters: 

Oil edged lower on Monday, weighed by concerns over surging coronavirus cases globally and by Libya’s plan to boost output, but hopes for a U.S. fiscal package lent some support. 

Analysts also focused on an OPEC+ ministerial monitoring committee meeting on Monday. Russian Energy Minister Alexander Novak said the committee recommended sticking in full to the group’s global deal to reduce oil production. 

Brent crude futures fell 31 cents to settle at $42.62 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 5 cents to settle at $40.83 a barrel. 

Saudi Arabia, the biggest member of the Organization of the Petroleum Exporting Countries, said no one should doubt the group’s commitment to providing support, while three sources from producing countries said a planned output increase from January could be reversed if necessary.

Column: Hedge funds see OPEC+ offsetting recession risk - Kemp | Reuters

Column: Hedge funds see OPEC+ offsetting recession risk - Kemp | Reuters: 

Hedge funds are reducing their risk exposure to crude oil and refined products against a backdrop of increasing uncertainty over a resurgence in the coronavirus and potential double-dip recession.

However, fears over the impact on oil consumption are offset by the growing likelihood that OPEC+ will postpone its output increase scheduled for the start of next year and signs that refiners are reducing excess stocks of distillates.

Hedge funds and other money managers purchased the equivalent of 31 million barrels in the six most important petroleum-linked futures and options in the week to Oct. 13.

Portfolio managers sold the equivalent of 12 million barrels of existing bullish long positions but repurchased 43 million barrels of previous bearish short positions, reducing exposure on both sides of the market (tmsnrt.rs/3dFwLhB).

In terms of net changes, funds were buyers of Brent (+38 million barrels) and European gasoil (+5 million) but sold NYMEX and ICE WTI (-9 million) and U.S. gasoline (-2 million) while leaving U.S. diesel unchanged.

#Saudi retail chains join growing informal boycott of Turkish products | Reuters

Saudi retail chains join growing informal boycott of Turkish products | Reuters: 

Saudi Arabia’s biggest supermarket chains this week joined a growing boycott of Turkish imports proposed by business leaders and Saudis on social media, as political tensions spilled into trade between the two regional powers. 

Turkey and Saudi Arabia have been at loggerheads since the 2011 “Arab Spring” over Ankara’s support for Islamist political groups. The 2018 murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate escalated tensions sharply. 

Othaim Markets 4001.E, Danube Supermarkets, Tamimi Markets and Panda Retail Company issued statements announcing they would stop carrying Turkish goods once existing stocks are sold off."Our leaders, our government and our security are a red line and they do not accept to be harmed," Othaim Markets said in the statement on its company Twitter account. 

Saudi Arabia’s government media office has said authorities have not placed any restrictions on Turkish goods.

#UAE firms sign agriculture deals in #Israel as pact approved | Reuters

UAE firms sign agriculture deals in Israel as pact approved | Reuters: 

Israeli irrigation company Netafim has agreed to open an office in the United Arab Emirates, UAE state news agency WAM said, under one of four deals announced on Monday in the wake of a U.S.-brokered pact between the two countries.

The deals were made as a UAE business delegation visited Israel, WAM reported, without going into further details.

Abu Dhabi-based agriculture firm Al Dahra Holding, whose managing director led the UAE delegation, signed a memorandum of understanding concerning Israeli firm WaterGen’s heat-exchange technology which produces water from air, WAM added.

The UAE cabinet on Monday formally approved the pact to establish full diplomatic relations with Israel that was signed in Washington last month.

#Qatar Airways expects to keep A380s parked for years | Reuters

Qatar Airways expects to keep A380s parked for years | Reuters: 

Qatar Airways does not expect to use its Airbus AIR.PA A380s for at least the next two years, its chief executive said on Monday, longer than a previous projection for the superjumbos to possibly return to service in 2021. 

The state-owned airline has parked its 10 A380s due to the devastating impact of the coronavirus crisis on travel demand. 

“We don’t think we are going to operate our A380s for at least the next couple of years,” Akbar al-Baker told an online conference. 

He had said in June the jets would remain parked until at least the middle of next year. The Gulf carrier plans to start retiring its A380s from 2024 when its oldest superjumbo reaches ten years of service.

UAE News: Rock-Bottom Solar Prices Trigger Shift in #UAE's Energy Strategy - Bloomberg

UAE News: Rock-Bottom Solar Prices Trigger Shift in UAE's Energy Strategy - Bloomberg: 

The United Arab Emirates may use more solar energy for its power grid and to produce hydrogen as prices fall, a government official said. 

Two local companies have offered to supply solar power from an Abu Dhabi project at a record-low price, according to Sharif Al Olama, under-secretary at the UAE’s Ministry of Energy & Infrastructure. 

Abu Dhabi National Energy Co., also known as Taqa, and Masdar Abu Dhabi Future Energy Co. have said they can sell power at $1.35 per kilowatt per hour from a new 2-gigawatt photovoltaic plant in the emirate. They are partnering with Electricite de France SA and China’s Jinko Power Technology Co. 

The UAE is “revising and refreshing our energy strategy and roadmap,” Al Olama said during a conference on Monday. “These kinds of prices are very competitive.”

#Qatar’s $300 Billion Wealth Fund Realigns Structure Under CEO - Bloomberg

Qatar’s $300 Billion Wealth Fund Realigns Structure Under CEO - Bloomberg: 

The Qatar Investment Authority is streamlining its management structure, bringing together some of its most high-profile executives under one committee, according to people familiar with the matter. 

Under the new structure, four executives who run everything from the fund’s domestic businesses to investments in the U.S. and Asia will report directly to Chief Executive Mansoor Al Mahmoud, the people said, asking not to be identified as the matter is private. 

The reorganization was implemented recently to allow for more efficient running of the fund and is currently in effect, the people said. The new committee includes:

• Mohammed Al Sowaidi, who runs the fund’s North American operations
• Ahmed Al-Rumaihi, in-charge of QIA’s $100 billion domestic portfolio with investments in banks and airlines
• Faisal Bin Al-Thani, responsible for the fund’s Asia-Pacific and Africa investments
• Younes Belcadi, who is non-Qatari and head of public equities

Representatives for the QIA didn’t respond to messages seeking comment. The fund manages about $300 billion of assets and ranks as the 11th largest globally, according to the Sovereign Wealth Fund Institute.

#UAE stocks gain, while major Gulf markets fall | Reuters

UAE stocks gain, while major Gulf markets fall | Reuters: 

The stock markets in the United Arab Emirates (UAE) closed higher, boosted by real estate and banking shares, defying the fall in other Gulf markets. 

Dubai's index .DFMGI advanced 1.3%, with Dubai Islamic Bank DIBDISB.DU gaining 1.7% and Emaar Properties EMAR.DU adding 1.9%. 

On Sunday, Dubai Financial Market DFM.DU introduced equity futures trading platform, which included the lender Dubai Islamic Bank and Emaar Properties among stocks available for future contracts. 

The Abu Dhabi index .ADI was up 0.3%. Aldar Properties ALDAR.AD rose 2.9% and First Abu Dhabi Bank FAB.AD gained 0.4%. 

Meanwhile, Israeli tourism, travel and media representatives will visit the UAE this week on the invitation of state carrier Etihad Airways and Abu Dhabi’s tourism industry. 

Saudi Arabia's benchmark index .TASI closed 0.2% down. The kingdom's largest lender National Commercial Bank 1180.SE dropped 1.3%, while the oil giant Saudi Aramco 2222.SE lost 0.6%. 

Saudi Aramco and Saudi Basic Industries (SABIC) 2010.SE have decided to re-evaluate their $20 billion crude-oil-to-chemicals project and are now looking at integrating existing facilities instead.

SABIC ended 0.1% lower after gaining as much as 1.2% during the day.

The Qatari index .QSI edged down 0.1% as Industries Qatar IQCD.QA and Barwa Real Estate BRES.QA fell 1.1% and 1.2%, respectively.

Among the gainers, Qatar Islamic Bank QISB.QA closed 0.4% higher as the lender hired a group of banks to arrange an issuance of five-year U.S. dollar-denominated sukuk, or Islamic bonds.

#Oman in preliminary support talks with certain Gulf countries - bond prospectus | Reuters

Oman in preliminary support talks with certain Gulf countries - bond prospectus | Reuters: 

Oman’s government has considered asking for financial support from certain other Gulf countries, a bond prospectus showed on Monday. 

“Whilst discussions in relation to financial support have commenced with certain other Gulf countries, such discussions are only in preliminary stages,” the bond prospectus, seen by Reuters, said. 

Oman has also been discussing funding for COVID-19 related measures with the Multilateral Investment Guarantee Agency and the Asian Infrastructure Investment Bank, but such facilities are yet to be concluded. Oman is planning a three-tranche issuance of U.S. dollar-denominated bonds, as the Gulf oil producer seeks to shore up its finances hit by weak oil prices and the coronavirus crisis.

More #Saudi firms set to issue Islamic bonds for capital boost | ZAWYA MENA Edition

More Saudi firms set to issue Islamic bonds for capital boost | ZAWYA MENA Edition: 

Two more companies in Saudi Arabia have joined a host of Gulf corporates looking to issue Islamic bonds amid heightened liquidity needs. 

On Monday, Arab National Bank announced its plans to issue US-dollar-denominated Tier 2 capital sukuk, while Banque Saudi Fransi said 

Sukuk issuance has recently bounced back following a sharp slowdown during the global lockdown in March and April. Islamic bonds supply is expected to go up further this year, as firms seek to diversify capital sources and benefit from low funding costs. 

During the second quarter of 2020, the Gulf Cooperation Council (GCC) region, along with other markets like Malaysia, Indonesia, Turkey and Pakistan, saw $12 billion worth of sukuk issuance with a maturity of more than 18 months, up by 42 percent from the preceding quarter, according to Fitch Ratings.

COVID-19 may inflict a decade of economic pain to Mideast, Central Asia, IMF says | Reuters

COVID-19 may inflict a decade of economic pain to Mideast, Central Asia, IMF says | Reuters: 

It might take countries in the Middle East and Central Asia a decade to return to the economic growth seen before the coronavirus crisis, the International Monetary Fund said, as long-standing regional vulnerabilities weigh on their recovery.

Lack of diversification among oil-exporting countries and the reliance of oil importers on sectors like tourism, as well as their dependence on remittances, are likely to curb growth, the IMF said on Monday in its outlook for the region, which spans around 30 countries from Mauritania to Kazakhstan. 

Oil-exporting countries have been hit the hardest. Oil prices are around 40% below pre-crisis levels, slashing their main source of revenue and reflecting their limited success in diversifying their economies.

“The COVID-19 crisis represents the fastest-moving economic shock of its depth in recent history,” the IMF said.

#Qatar Islamic Bank hires banks for dollar sukuk, document shows | Reuters

Qatar Islamic Bank hires banks for dollar sukuk, document shows | Reuters: 

Qatar Islamic Bank (QIB) QISB.QA has hired a group of banks to arrange an issuance of five-year U.S. dollar-denominated sukuk, or Islamic bonds, a document showed on Monday. 

QIB hired Standard Chartered, QInvest, Citi, Crédit Agricole, Dukhan Bank, HSBC and QNB Capital to arrange investor calls starting on Monday, to be followed by the issuance, subject to market conditions, the document from one of the banks arranging the deal showed.

IMF: Nearly all Mideast economies hit by pandemic recession

IMF: Nearly all Mideast economies hit by pandemic recession: 

The coronavirus pandemic has pushed nearly all Mideast nations into the throes of an economic recession this year, yet some rebound is expected as all but two — Lebanon and Oman — are expected to see some level of economic growth next year, according to a report published Monday by the International Monetary Fund. 

This comes as the IMF estimates that the global economy will shrink 4.4% this year, marking the worst annual plunge since the Great Depression of the 1930s. 

Well before the coronavirus swept across the globe, several Mideast countries had been struggling with issues ranging from lower oil prices and sluggish economic growth to corruption and high unemployment.  

The IMF projects the Lebanese economy will see one of the region’s sharpest economic contractions this year at 25%. The pandemic has only pushed the country further to the brink after a wave of anti-government anger before the virus struck.

Sub-contractors, suppliers facing 'significant impact' from Arabtec downfall - Arabianbusiness

Sub-contractors, suppliers facing 'significant impact' from Arabtec downfall - Arabianbusiness: 

Sub-contractors and suppliers dealing with Arabtec are facing "significant impact" on their businesses amid plans to liquidate the construction giant, according to the chairman of a UAE-based law firm. 

Abdulla Alawadi, chairman of the law firm Abdulla Alawadi & Associates, also said the liquidation of Arabtec would add to the "chaos" that developers are already having to deal with amid the ongoing coronavirus pandemic.

"From the perspective of developers, it is obvious that liquidation of this magnitude coupled with the challenges posed by the pandemic has created a state of chaos in different aspects," he said. 

"Firstly, payments from developers to contractors/subcontractors are in constant scarcity or have even completely stopped. Secondly, the reduction of the headcount of construction workers made it even harder to deliver projects on time. Thirdly, there are other procedural aspects that forced itself onto the scene and obstructed the delivery of units to purchasers, such as the VAT on developers, which could amount to millions of dirhams for major developers,” he added.

#Dubai wealth fund readies bonds, COVID-19 may hit revenue | Reuters

Dubai wealth fund readies bonds, COVID-19 may hit revenue | Reuters: 

Investment Corporation of Dubai (ICD), the Dubai government’s main investment arm, is planning an issue of U.S. dollar-denominated bonds amid expectations of lower revenues from its assets due to the coronavirus crisis. 

It has hired banks including Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JPMorgan and Standard Chartered, to arrange investor calls ahead of the issuance, a document from one the banks showed on Monday. 

ICD, which as of the end of last year had total assets worth around $305 billion, owns stakes in Emirates airline and Dubai's biggest bank, Emirates NBD ENBD.DU. 

The planned fixed rate, long five-year senior unsecured conventional bonds are part of a $2.5 billion bond issuance programme, according to the document.

#AbuDhabi's ADQ to invest $1 billion to help retailer Lulu expand in Egypt | Reuters

Abu Dhabi's ADQ to invest $1 billion to help retailer Lulu expand in Egypt | Reuters: 

ADQ, a holding company owned by the Abu Dhabi government, said on Monday it has signed an agreement with regional retailer Lulu International to help fund its expansion in Egypt with an investment of up to $1 billion. 

ADQ and Lulu will work to develop up to 30 hypermarkets and 100 express mini-market stores, as well as logistics hubs, distribution and fulfilment centres to strengthen the retailer’s e-commerce business across Egypt, ADQ said in a statement. 

ADQ’s CEO Mohamed Hassan al-Suwaidi said in a statement the agreement with Lulu International reflects ADQ’s wider commitment to investing in Egypt, following an agreement to set up the joint investment platform with the Sovereign Fund of Egypt late last year. 

The platform, worth $20 billion, aims to establish joint investment projects, as well as specialised funds and investment tools in several key sectors such as food and agriculture, healthcare, mobility and logistics, and utilities.

Oil falls as demand concerns loom and Europe enters new lockdowns | Reuters

Oil falls as demand concerns loom and Europe enters new lockdowns | Reuters: 

Oil prices fell on Monday as concerns over surging coronavirus cases globally dampened the prospects for demand recovery while China’s third-quarter economic growth was weaker than expected.

Brent crude for December LCOc1 slipped 16 cents, or 0.4%, to $42.77 a barrel by 0856 GMT. U.S. West Texas Intermediate crude for November CLc1 was down 11 cents, or 0.3%, at $40.77. The contract will expire on Tuesday. 

Worldwide coronavirus cases crossed 40 million on Monday, according to a Reuters tally. 

“Even if the recent record-high new cases of COVID-19 worldwide have not yet caused demand forecasts to be revised further downwards, there is no sign as yet of the hoped-for recovery,” said Commerzbank analyst Eugen Weinberg.

MIDEAST STOCKS-Major Gulf stocks track global rally on hopes of virus vaccine by year end | Nasdaq

MIDEAST STOCKS-Major Gulf stocks track global rally on hopes of virus vaccine by year end | Nasdaq: 

Major Gulf stock markets rose in early trade on Monday, tracking a rally in their global peers triggered by expectations of a coronavirus vaccine by the end of this year. 

Drugmaker Pfizer Inc PFE.N said on Friday it could have a coronavirus vaccine ready in the United States by the end of this year. 

Saudi Arabia's benchmark index .TASI rose 0.2%. Saudi Basic Industries (SABIC) 2010.SE increased 1.1%.  

SABIC and Saudi Aramco 2222.SE have decided to re-evaluate their $20 billion crude-oil-to-chemicals project and are now looking at integrating existing facilities instead. 

"SABIC and Saudi Aramco remain committed to continue advancing crude to chemicals technologies through existing development programs with the goal to increase cost efficiency, competitiveness and value creation opportunities for petrochemicals" the petrochemical maker Said. 

However, Aramco was down 0.1%. 

Elsewhere, Yanbu National Petrochemical (Yansab) 2290.SE rose as much as 0.8%. 

Yansab reported nearly an 8% drop year-on-year in the third-quarter profit to 195.6 million riyals ($52.15 million). The quarterly profit, however, saw a nearly 337% surge when compared to the previous quarter as average sales prices improved during the third quarter and saw higher sales quantity.
Dubai's index .DFMGI was up 0.5% as the blue-chip developer Emaar Properties EMAR.DU rose 1.2% and Emirates NBD Bank ENBD.DU gained 0.5%. The lender's board will meet in the day to discuss the third-quarter financial results.
The Abu Dhabi index .ADI inched up 0.2%. First Abu Dhabi Bank FAB.AD was up 0.4%, while Emirates Telecommunication ETISALAT.AD edged up 0.2%.
The Qatari index .QSI gained 0.2% with the Gulf's largest lender Qatar National Bank QNBK.QA advancing 1.2%.
Qatar Gas Transport (Nakilat) QGTS.QA added 1.1% . The gas transporter is slated to report its third-quarter results later in the day.