UAE-Based Israeli In Talks to Buy Israir While Al Habtoor Passes - Bloomberg
An Israeli businessman, who’s been operating in the United Arab Emirates’ commercial hub of Dubai for the past 14 years, is in talks to buy Israel’s Israir Airlines, hoping a new normalization pact between the countries will offer an opportunity for expanded operations.
NY Koen Group’s chief executive officer, Naum Koen, was born in Ukraine, became a naturalized Israeli citizen in 1994 and in 2006, using his Ukrainian passport set up shop in the emirate with a diamond-cutting and supply business. It’s since grown into a holding company involved in diamonds, private aviation, digital technologies, construction and security.
Now, freed from operating under the radar as an Israeli dual-national, he’s negotiating to buy Israir based on a valuation of about $25 million. He estimates the airline will need a cash infusion of up to $20 million to pay for debts and improvements.
“The recent development of the peace treaty between Israel and the UAE, and the peace negotiations between Israel and other countries in the Gulf make it very interesting for me to get into Israir as a tourism company,” the Russian-speaking Koen said through a translator. “I expect thousands and thousands of Israeli tourists that will come to Dubai, and the corona will not stop them.”
Sunday, 25 October 2020
Libya War Rivals Poised for Unity Talks as Oil Output Rises - Bloomberg
Libya War Rivals Poised for Unity Talks as Oil Output Rises - Bloomberg
Libya’s push to almost double crude output could gain momentum as rival sides prepare for a new round of talks aimed at ending a nearly decade-long conflict that has ravaged the OPEC member.
The United Nations said Sunday that political talks targeting a deal on a “unified governance framework” for the North African country are to begin Oct. 26 via video conference. Face-to-face meetings would kick-off in Tunisia on Nov. 9.
The UN announced the discussions two days after Libya’s state-run National Oil Corp. said daily crude production would rise above 1 million barrels in the next four weeks, now that the last of the nation’s ports have reopened.
Increased output and exports are critical for an economy hammered by fighting between the UN-recognized government in Tripoli, headed by Prime Minister Fayez al-Sarraj, and his eastern rival, military commander Khalifa Haftar. Libya holds Africa’s largest crude reserves.
Libya’s push to almost double crude output could gain momentum as rival sides prepare for a new round of talks aimed at ending a nearly decade-long conflict that has ravaged the OPEC member.
The United Nations said Sunday that political talks targeting a deal on a “unified governance framework” for the North African country are to begin Oct. 26 via video conference. Face-to-face meetings would kick-off in Tunisia on Nov. 9.
The UN announced the discussions two days after Libya’s state-run National Oil Corp. said daily crude production would rise above 1 million barrels in the next four weeks, now that the last of the nation’s ports have reopened.
Increased output and exports are critical for an economy hammered by fighting between the UN-recognized government in Tripoli, headed by Prime Minister Fayez al-Sarraj, and his eastern rival, military commander Khalifa Haftar. Libya holds Africa’s largest crude reserves.
#Saudi index sees biggest fall since May | Reuters
Saudi index sees biggest fall since May | Reuters
Saudi Arabian shares fell sharply on Sunday in a broad sell-off, while a plunge in Commercial International Bank weighed on the Egyptian index.
The kingdom’s benchmark index slid 4.1%, its biggest intraday fall since May, with Saudi Basic Industries Corp (SABIC) shedding 4.5% and oil giant Saudi Aramco losing 2.3%.
SABIC, the Gulf’s largest petrochemical firm, reported a net profit of 1.09 billion riyals ($290.64 million) in the third-quarter, up from 0.74 billion riyals a year ago. However, the firm reported a drop in quarterly sales.
“It is about time that the Saudi market weakened. The market trades at unsustainably high multiples (low 20s forward multiple) and earnings growth of less than 10%, does not warrant that high valuation,” said Khaled Abdel Majeed, fund manager at Mena Capital.
In recent days a Saudi-led military coalition fighting the Houthi group in Yemen has said it had intercepted and destroyed three explosive-laden drones aimed towards the southern region of Saudi Arabia.
Outside the Gulf, Egypt’s blue-chip index declined 3.5%, weighed down by a 6.9% fall in Commercial International Bank (CIB).
Shares in CIB plunged 10% at Sunday’s opening, following the resignation on Friday of CIB chairman Hisham Ezz al-Arab.
Dubai’s main share index lost 0.4%, dragged down by a 3.4% fall in Emaar Malls and a 0.8% decline in blue-chip developer Emaar Properties.
The Abu Dhabi index rose 0.3%, helped by a 3.2% jump in Abu Dhabi Commercial Bank and a 0.5% increase in the country’s largest lender First Abu Dhabi Bank.
In Qatar, the index retreated 1.5%, as most of the stocks on the index were in negative territory including Mesaieed Petrochemical, which was down 7.1%.
Saudi Arabian shares fell sharply on Sunday in a broad sell-off, while a plunge in Commercial International Bank weighed on the Egyptian index.
The kingdom’s benchmark index slid 4.1%, its biggest intraday fall since May, with Saudi Basic Industries Corp (SABIC) shedding 4.5% and oil giant Saudi Aramco losing 2.3%.
SABIC, the Gulf’s largest petrochemical firm, reported a net profit of 1.09 billion riyals ($290.64 million) in the third-quarter, up from 0.74 billion riyals a year ago. However, the firm reported a drop in quarterly sales.
“It is about time that the Saudi market weakened. The market trades at unsustainably high multiples (low 20s forward multiple) and earnings growth of less than 10%, does not warrant that high valuation,” said Khaled Abdel Majeed, fund manager at Mena Capital.
In recent days a Saudi-led military coalition fighting the Houthi group in Yemen has said it had intercepted and destroyed three explosive-laden drones aimed towards the southern region of Saudi Arabia.
Outside the Gulf, Egypt’s blue-chip index declined 3.5%, weighed down by a 6.9% fall in Commercial International Bank (CIB).
Shares in CIB plunged 10% at Sunday’s opening, following the resignation on Friday of CIB chairman Hisham Ezz al-Arab.
Dubai’s main share index lost 0.4%, dragged down by a 3.4% fall in Emaar Malls and a 0.8% decline in blue-chip developer Emaar Properties.
The Abu Dhabi index rose 0.3%, helped by a 3.2% jump in Abu Dhabi Commercial Bank and a 0.5% increase in the country’s largest lender First Abu Dhabi Bank.
In Qatar, the index retreated 1.5%, as most of the stocks on the index were in negative territory including Mesaieed Petrochemical, which was down 7.1%.
#Saudi Index Drops Most Since May in Final-Hour Slump: Inside EM - Bloomberg
Saudi Index Drops Most Since May in Final-Hour Slump: Inside EM - Bloomberg
Saudi Arabia’s Tadawul All Share Index fell the most in five months amid renewed concern about measures to contain the spread of coronavirus.
The benchmark index retreated 4.1% to 8,154.59, the lowest level in more than seven weeks. The decline, which led losses among major benchmarks in the Middle East on Sunday, accelerated in the final hour of trading in Riyadh.
Large caps Saudi Basic Industries Corp., the chemical maker in which Saudi Aramco holds a majority stake, real-estate developer Jabal Omar Development Co. and Saudi Aramco pressured the index the most, sliding 4.5%, 9.6% and 2.3%, respectively. Sabic tumbled even after posting a return to profit in the third quarter that was mainly due to the reversal of impairments associated with Clariant AG.
Mohammed Al-Abdulaali, the spokesman for the kingdom’s health ministry, denied that there will be a lockdown. He spoke at a press conference in Riyadh after markets were closed.
Further restrictions would compound the oil-rich country’s economic struggles. Saudi Arabia’s exports fell by a quarter in August compared with a year earlier, weighed down by a drop in oil revenue. Brent crude declined 2.7% last week to $41.77 per barrel.
Al Rajhi Bank, the kingdom’s biggest lender, lost 1.2% after posting a slight decline in profit as impairment charges rose between July and September.
The benchmark index retreated 4.1% to 8,154.59, the lowest level in more than seven weeks. The decline, which led losses among major benchmarks in the Middle East on Sunday, accelerated in the final hour of trading in Riyadh.
Large caps Saudi Basic Industries Corp., the chemical maker in which Saudi Aramco holds a majority stake, real-estate developer Jabal Omar Development Co. and Saudi Aramco pressured the index the most, sliding 4.5%, 9.6% and 2.3%, respectively. Sabic tumbled even after posting a return to profit in the third quarter that was mainly due to the reversal of impairments associated with Clariant AG.
Saudi Arabia’s coronavirus curve has flattened steadily over the past four months and daily new cases have dropped by more than 90% since peaking in June. The kingdom has reported more than 344,000 cases. Still, analysts and investors cited fears of the return to lockdown to explain the slump.
The sell-off was fueled by “strong rumors that have been denied by the authorities on imposing a ban and suspending services,” Mohammed Al-Shemimry, the general manager of Mohammed Ashemimry Financial Consultants, said in an interview to Ekhbariya TV. “These rumors have definitely affected investors negatively.”
The sell-off was fueled by “strong rumors that have been denied by the authorities on imposing a ban and suspending services,” Mohammed Al-Shemimry, the general manager of Mohammed Ashemimry Financial Consultants, said in an interview to Ekhbariya TV. “These rumors have definitely affected investors negatively.”
Further restrictions would compound the oil-rich country’s economic struggles. Saudi Arabia’s exports fell by a quarter in August compared with a year earlier, weighed down by a drop in oil revenue. Brent crude declined 2.7% last week to $41.77 per barrel.
Al Rajhi Bank, the kingdom’s biggest lender, lost 1.2% after posting a slight decline in profit as impairment charges rose between July and September.
Wall of debt: Maturities mount in Middle East amid COVID-19 borrowing spree | ZAWYA MENA Edition
Wall of debt: Maturities mount in Middle East amid COVID-19 borrowing spree | ZAWYA MENA Edition
A turbulent economic outlook has resulted in a surge of corporate borrowings that will be maturing in a few years across the Middle East, as well as in Europe and Africa.
In a new report that covered hundreds of companies in the EMEA region, Moody’s said total debt jumped by nearly half to $1.6 trillion since 2019, partly due to new borrowings driven by the coronavirus pandemic. The rating movements between investment and speculative-grade firms accounted for nearly $200 billion of the increase.
Governments around the world have pumped billions of cash into the financial system to support their economies and help struggling businesses that have been hit hard by the health crisis. On Saturday, Dubai announced an extra stimulus package of 500 million UAE dirhams, taking the emirate’s COVID-19 relief efforts to 6.8 billion dirhams.
According to Moody’s, speculative-grade companies have increasingly relied on revolving credit facilities with banks during the pandemic. The trend is exemplified by the higher level of drawings under these facilities, suggesting that bond issuance has become too expensive and deemed unattractive by many.
A turbulent economic outlook has resulted in a surge of corporate borrowings that will be maturing in a few years across the Middle East, as well as in Europe and Africa.
In a new report that covered hundreds of companies in the EMEA region, Moody’s said total debt jumped by nearly half to $1.6 trillion since 2019, partly due to new borrowings driven by the coronavirus pandemic. The rating movements between investment and speculative-grade firms accounted for nearly $200 billion of the increase.
Governments around the world have pumped billions of cash into the financial system to support their economies and help struggling businesses that have been hit hard by the health crisis. On Saturday, Dubai announced an extra stimulus package of 500 million UAE dirhams, taking the emirate’s COVID-19 relief efforts to 6.8 billion dirhams.
According to Moody’s, speculative-grade companies have increasingly relied on revolving credit facilities with banks during the pandemic. The trend is exemplified by the higher level of drawings under these facilities, suggesting that bond issuance has become too expensive and deemed unattractive by many.
Dana Gas Agrees to $236 Million Sale of Egypt Assets to IPR - Bloomberg
Dana Gas Agrees to $236 Million Sale of Egypt Assets to IPR - Bloomberg
Dana Gas PJSC agreed to sell its Egyptian oil and gas fields for as much as $236 million, enabling it to repay debt associated with Islamic bonds that mature this month.
The company, based in the United Arab Emirates, will receive $153 million in cash and as much as $83 million in contingent payments for the sale to IPR Energy Group, it said in a statement. Dana Gas also will take an impairment charge in the third quarter related to the coronavirus pandemic’s impact on its overall business, it said, without disclosing the size of the charge.
The shares rose as much as 2% to 71.4 fils, giving the company a market value of about 5 billion dirhams ($1.36 billion).
Dana Gas had targeted completing the sale in the first quarter of the year to raise cash needed to pay sukuk due at the end of this month. The sale was delayed due to the coronavirus, and Dana Gas appointed a financial adviser in July, prompting investors to question whether the company would be able to make the payment. The company announced earlier this month it was arranging a bridge loan to help pay the sukuk, of which $309 million is outstanding.
Dana Gas PJSC agreed to sell its Egyptian oil and gas fields for as much as $236 million, enabling it to repay debt associated with Islamic bonds that mature this month.
The company, based in the United Arab Emirates, will receive $153 million in cash and as much as $83 million in contingent payments for the sale to IPR Energy Group, it said in a statement. Dana Gas also will take an impairment charge in the third quarter related to the coronavirus pandemic’s impact on its overall business, it said, without disclosing the size of the charge.
The shares rose as much as 2% to 71.4 fils, giving the company a market value of about 5 billion dirhams ($1.36 billion).
Dana Gas had targeted completing the sale in the first quarter of the year to raise cash needed to pay sukuk due at the end of this month. The sale was delayed due to the coronavirus, and Dana Gas appointed a financial adviser in July, prompting investors to question whether the company would be able to make the payment. The company announced earlier this month it was arranging a bridge loan to help pay the sukuk, of which $309 million is outstanding.
Aldar, ADQ Sign Pact on $8.2 Billion of #AbuDhabi Projects - Bloomberg
Aldar, ADQ Sign Pact on $8.2 Billion of Abu Dhabi Projects - Bloomberg
Aldar Properties PJSC will take over the development and management of projects worth 30 billion dirhams ($8.2 billion) in Abu Dhabi as part of an agreement with a state entity.
The developer signed a memorandum of understanding with ADQ on projects including the Riyadh City, Baniyas North development, and others in the Al Ain and Al Dhafra regions, according to a statement.
Aldar will also have management oversight of Musanada projects ranging from education, health care, infrastructure, social services and facilities management. Musanada provides support services to government entities in Abu Dhabi, the biggest sheikhdom in the United Arab Emirates.
The transaction “will significantly support future profit growth,” Aldar Chief Executive officer Talal Al Dhiyebi said.
It also said:
Aldar Properties PJSC will take over the development and management of projects worth 30 billion dirhams ($8.2 billion) in Abu Dhabi as part of an agreement with a state entity.
The developer signed a memorandum of understanding with ADQ on projects including the Riyadh City, Baniyas North development, and others in the Al Ain and Al Dhafra regions, according to a statement.
Aldar will also have management oversight of Musanada projects ranging from education, health care, infrastructure, social services and facilities management. Musanada provides support services to government entities in Abu Dhabi, the biggest sheikhdom in the United Arab Emirates.
The transaction “will significantly support future profit growth,” Aldar Chief Executive officer Talal Al Dhiyebi said.
It also said:
- The agreement includes developing more than 25,000 land plots and villas for UAE citizens and associated infrastructure
- Aldar expects to complete taking over the management of government projects before the end of 2020
#Saudi Chemicals Maker Sabic Posts Profit as Demand Revives - Bloomberg
Saudi Chemicals Maker Sabic Posts Profit as Demand Revives - Bloomberg
Saudi Basic Industries Corp., the chemical maker in which Saudi Aramco holds a majority stake, returned to profit in the third quarter amid signs that demand is recovering from the impact of the coronavirus.
The company, known as Sabic, said third-quarter profit was 1.09 billion riyals ($290 million) compared with 740 million riyals in the same period last year. Profit rose mainly due to the reversal of 690 million riyals of impairments associated with Clariant AG, in which Sabic holds a 31.5% stake. Revenue in the three months to the end of September fell 11% to 29.3 billion riyals.
Sabic said it benefited from a rebounding world economy but remained cautious on the outlook. Petrochemicals prices have picked up due to higher crude prices and stronger demand after the initial wave of virus-related lockdowns in the second quarter, Chief Executive Officer Yousef Al-Benyan said in an online briefing. “Still, it’s not clear yet on the impact of the second wave, and we are assessing the impacts of this on the global economy,’ he said.
The results indicate that Sabic is turning a corner after reporting its biggest quarterly loss in at least a decade between April and June, as the pandemic hit sales of plastics, cosmetics and other petrochemical products. A writedown in the value of some assets also hurt second-quarter profit, and that followed the company’s decision in May to suspend new capital expenditure to protect its balance sheet.
Saudi Basic Industries Corp., the chemical maker in which Saudi Aramco holds a majority stake, returned to profit in the third quarter amid signs that demand is recovering from the impact of the coronavirus.
The company, known as Sabic, said third-quarter profit was 1.09 billion riyals ($290 million) compared with 740 million riyals in the same period last year. Profit rose mainly due to the reversal of 690 million riyals of impairments associated with Clariant AG, in which Sabic holds a 31.5% stake. Revenue in the three months to the end of September fell 11% to 29.3 billion riyals.
Sabic said it benefited from a rebounding world economy but remained cautious on the outlook. Petrochemicals prices have picked up due to higher crude prices and stronger demand after the initial wave of virus-related lockdowns in the second quarter, Chief Executive Officer Yousef Al-Benyan said in an online briefing. “Still, it’s not clear yet on the impact of the second wave, and we are assessing the impacts of this on the global economy,’ he said.
The results indicate that Sabic is turning a corner after reporting its biggest quarterly loss in at least a decade between April and June, as the pandemic hit sales of plastics, cosmetics and other petrochemical products. A writedown in the value of some assets also hurt second-quarter profit, and that followed the company’s decision in May to suspend new capital expenditure to protect its balance sheet.
UPDATE 2-S.Arabia's STC hires banks for IPO of subsidiary -sources | Reuters
UPDATE 2-S.Arabia's STC hires banks for IPO of subsidiary -sources | Reuters
Saudi Telecom Co (STC) has hired banks to arrange a potential initial sale of shares in its product and services development arm, Solutions by STC, three sources familiar with the matter told Reuters.
STC, Saudi Arabia’s largest telecoms operator, has appointed HSBC, Morgan Stanley and the investment banking arm of Saudi lender National Commercial Bank to advise on the sale, according to the sources, who declined to be identified as the matter is not public.
STC, Morgan Stanley and NCB Capital did not immediately respond to requests for comment when contacted by Reuters on Sunday. HSBC declined to comment.
Solutions by STC’s valuation could be around 9 billion riyals ($2.4 billion), if it garners 18-20 times its earnings multiples, a source told Reuters last month.
The IPO size could be around $500 million if the company sells 20%, Reuters reported on Sept. 15.
Saudi Telecom Co (STC) has hired banks to arrange a potential initial sale of shares in its product and services development arm, Solutions by STC, three sources familiar with the matter told Reuters.
STC, Saudi Arabia’s largest telecoms operator, has appointed HSBC, Morgan Stanley and the investment banking arm of Saudi lender National Commercial Bank to advise on the sale, according to the sources, who declined to be identified as the matter is not public.
STC, Morgan Stanley and NCB Capital did not immediately respond to requests for comment when contacted by Reuters on Sunday. HSBC declined to comment.
Solutions by STC’s valuation could be around 9 billion riyals ($2.4 billion), if it garners 18-20 times its earnings multiples, a source told Reuters last month.
The IPO size could be around $500 million if the company sells 20%, Reuters reported on Sept. 15.
#Saudi's Al Rajhi Bank reports 3% drop in third-quarter profit, impairments up | Reuters
Saudi's Al Rajhi Bank reports 3% drop in third-quarter profit, impairments up | Reuters
Al Rajhi Bank 1120.SE, Saudi Arabia's second-largest lender by assets, reported a 3% drop in third-quarter net profit on Sunday, but beat analysts' forecasts.
The bank made 2.66 billion riyals ($709.28 million) in the three months to Sept. 30, down from 2.74 billion riyals in the same period a year earlier, it said in a bourse statement.
Analysts had forecast a net profit of 2.39 billion riyals, according to Refinitiv data.
Al Rajhi said an increase in expenses as a result of a rise in salaries and employee-related benefits, along with general and other administrative expenses, led to its weaker performance in the third quarter.
Al Rajhi Bank 1120.SE, Saudi Arabia's second-largest lender by assets, reported a 3% drop in third-quarter net profit on Sunday, but beat analysts' forecasts.
The bank made 2.66 billion riyals ($709.28 million) in the three months to Sept. 30, down from 2.74 billion riyals in the same period a year earlier, it said in a bourse statement.
Analysts had forecast a net profit of 2.39 billion riyals, according to Refinitiv data.
Al Rajhi said an increase in expenses as a result of a rise in salaries and employee-related benefits, along with general and other administrative expenses, led to its weaker performance in the third quarter.
#Saudi slips in early trade; #Dubai edges up | Reuters
Saudi slips in early trade; Dubai edges up | Reuters
Saudi Arabia’s stock market fell early on Sunday, hurt by financials and petrochemical shares, while gains in top lender Emirates NBD supported the Dubai index.
The Saudi benchmark index .TASI declined 0.6%, with the country's largest lender National Commercial Bank 1180.SE dropping 1.2% and Saudi Basic Industries Corp (SABIC) 2010.SE losing 0.7%.
SABIC, the Gulf’s largest petrochemical firm, reported a net profit of 1.09 billion riyals ($290.64 million) in the third-quarter, up from 0.74 billion riyals a year ago. However, the firm reported a drop in quarterly sales.
The military spokesman for Yemen’s Houthi movement said in a tweet on Saturday it had targeted the Jizan and Abha airports and the Khamis Mushait base in Saudi Arabia with drones.
Earlier on Saturday and in two statements on Friday, the Saudi-led coalition had said it had intercepted and destroyed three explosive-laden drones from the Houthis aimed towards the southern region of Saudi Arabia.
Dubai's main share index .DFMGI rose 0.3%, helped by a 1.6% gain in its largest lender Emirates NBD ENBD.DU and a 0.9% rise in Dubai Investments DINV.DU.
The Abu Dhabi index .ADI edged up 0.1%, with Abu Dhabi Commercial Bank ADCB.AD advancing 1.9% and the United Arab Emirates' largest lender First Abu Dhabi Bank FAB.AD up 0.2%.
In Qatar, the index .QSI dropped 0.4%, weighed down by a 2% fall in petrochemical maker Industries Qatar IQCD.QA and a 0.9% decline in Qatar Islamic Bank QISB.QA.
Saudi Arabia’s stock market fell early on Sunday, hurt by financials and petrochemical shares, while gains in top lender Emirates NBD supported the Dubai index.
The Saudi benchmark index .TASI declined 0.6%, with the country's largest lender National Commercial Bank 1180.SE dropping 1.2% and Saudi Basic Industries Corp (SABIC) 2010.SE losing 0.7%.
SABIC, the Gulf’s largest petrochemical firm, reported a net profit of 1.09 billion riyals ($290.64 million) in the third-quarter, up from 0.74 billion riyals a year ago. However, the firm reported a drop in quarterly sales.
The military spokesman for Yemen’s Houthi movement said in a tweet on Saturday it had targeted the Jizan and Abha airports and the Khamis Mushait base in Saudi Arabia with drones.
Earlier on Saturday and in two statements on Friday, the Saudi-led coalition had said it had intercepted and destroyed three explosive-laden drones from the Houthis aimed towards the southern region of Saudi Arabia.
Dubai's main share index .DFMGI rose 0.3%, helped by a 1.6% gain in its largest lender Emirates NBD ENBD.DU and a 0.9% rise in Dubai Investments DINV.DU.
The Abu Dhabi index .ADI edged up 0.1%, with Abu Dhabi Commercial Bank ADCB.AD advancing 1.9% and the United Arab Emirates' largest lender First Abu Dhabi Bank FAB.AD up 0.2%.
In Qatar, the index .QSI dropped 0.4%, weighed down by a 2% fall in petrochemical maker Industries Qatar IQCD.QA and a 0.9% decline in Qatar Islamic Bank QISB.QA.
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