Oil drops 3% as virus infections, Libyan oil output rebound | Reuters
Oil prices fell more than 3% on Monday, extending last week’s losses as coronavirus cases continued to surge in the United States and Europe, while Libya’s rebound in crude production raised fears of oversupply.
The United States reported its highest number yet of new coronavirus infections in two days through Saturday, while in France new cases hit a record of more than 50,000 on Sunday. Italy and Spain imposed fresh restrictions to curb the virus.
“It’s a dark Monday in the oil market,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy. “We have long warned that a ‘second wave’ of strict coronavirus restriction measures could be re-imposed, and it’s now happening for real.”
Brent LCOc1 dropped $1.31, or 3.1%, to settle at $40.46 a barrel. U.S. West Texas Intermediate (WTI) fell $1.29, or 3.2%, to settle at $38.56 a barrel. Both contracts fell almost 2.5% last week.
Monday, 26 October 2020
Saudi Arabia's Green Hydrogen Plan Won't Erode Oil's Dominance - Bloomberg
Saudi Arabia's Green Hydrogen Plan Won't Erode Oil's Dominance - Bloomberg
Saudi Arabia is building the world’s biggest green hydrogen facility, but oil will continue to be the kingdom’s main business after the plant starts operating in 2025. The $5 billion project will use renewable energy to produce hydrogen equivalent to as much as 15,000 barrels of oil a day, Ahmad Al-Khowaiter, Saudi Aramco’s chief technology officer, said last week. Saudi Arabia plans to increase its production capacity for crude oil to 13 million barrels a day from 12 million.
MIDEAST STOCKS-Aldar lifts #AbuDhabi, Egypt extends losses | Nasdaq
MIDEAST STOCKS-Aldar lifts Abu Dhabi, Egypt extends losses | Nasdaq
Abu Dhabi's index .ADI closed higher on Monday boosted by gains in Aldar Properties ALDAR.AD following a government projects management deal, while Egypt's stock market extended losses as Commercial International Bank Egypt COMI.CA continues to drop following removal of its chairman by the central Bank.
The Abu Dhabi index .ADI advanced 1.2% as Aldar Properties ALDAR.AD surged 14.9%, its biggest daily gain since December 18, 2014.
The real estate developer will take over the management and development of government capital projects worth 30 billion dirhams ($8.2 billion) under an agreement with state-backed ADQ.
The Egyptian blue-chip index .EGX30 fell 0.9% to extend the losses for an eighth straight day.
Commercial International Bank Egypt COMI.CA declined 1.8% in its third consecutive day of fall.
On Friday, the chairman of the country's largest lender Hisham Ezz al-Arab stepped down with immediate effect under orders from the central bank, which cited compliance concerns at the Egyptian lender.
Saudi Arabia's index .TASI rose as much as 1.4% in opening trade a day after it plunged 4.1%, but closed flat after volatile trading during the day.
Saudi Aramco 2222.SE fell 1.2% extending losses from the previous session.
Among the gainers, Dr. Sulaiman Al-Habib Medical Services Group 4013.SE, which reported a 50.9% rise in quarterly profit on Sunday, increased 2.5%.
The Qatari index .QSI closed flat as Commercial Bank COMB.QA lost 2.7% following a 22% drop in nine-month net profit to 1.15 billion ($315.93 million) riyals.
Among the gainers, Qatar National Bank QNBK.QA was up 0.7% and Qatar Gas Transport QGTS.QA rose 2.6%.
Kuwait's index .BKP dropped 2%, with all the trading stocks closing in the red. National Bank of Kuwait (NBK) NBKK.KW led the losers, declining 2.4%.
The bank reported a 38% drop in third-quarter net profit, hit by higher provisioning for bad debt and the slowdown caused by the COVID-19 pandemic.
Dubai's index .DFMGI closed down 0.5% with Emirates NBD Bank ENBD.DU shedding 1.7% and Damac Properties DAMAC.DU retreating 4.6%.
Abu Dhabi's index .ADI closed higher on Monday boosted by gains in Aldar Properties ALDAR.AD following a government projects management deal, while Egypt's stock market extended losses as Commercial International Bank Egypt COMI.CA continues to drop following removal of its chairman by the central Bank.
The Abu Dhabi index .ADI advanced 1.2% as Aldar Properties ALDAR.AD surged 14.9%, its biggest daily gain since December 18, 2014.
The real estate developer will take over the management and development of government capital projects worth 30 billion dirhams ($8.2 billion) under an agreement with state-backed ADQ.
The Egyptian blue-chip index .EGX30 fell 0.9% to extend the losses for an eighth straight day.
Commercial International Bank Egypt COMI.CA declined 1.8% in its third consecutive day of fall.
On Friday, the chairman of the country's largest lender Hisham Ezz al-Arab stepped down with immediate effect under orders from the central bank, which cited compliance concerns at the Egyptian lender.
Saudi Arabia's index .TASI rose as much as 1.4% in opening trade a day after it plunged 4.1%, but closed flat after volatile trading during the day.
Saudi Aramco 2222.SE fell 1.2% extending losses from the previous session.
Among the gainers, Dr. Sulaiman Al-Habib Medical Services Group 4013.SE, which reported a 50.9% rise in quarterly profit on Sunday, increased 2.5%.
The Qatari index .QSI closed flat as Commercial Bank COMB.QA lost 2.7% following a 22% drop in nine-month net profit to 1.15 billion ($315.93 million) riyals.
Among the gainers, Qatar National Bank QNBK.QA was up 0.7% and Qatar Gas Transport QGTS.QA rose 2.6%.
Kuwait's index .BKP dropped 2%, with all the trading stocks closing in the red. National Bank of Kuwait (NBK) NBKK.KW led the losers, declining 2.4%.
The bank reported a 38% drop in third-quarter net profit, hit by higher provisioning for bad debt and the slowdown caused by the COVID-19 pandemic.
Dubai's index .DFMGI closed down 0.5% with Emirates NBD Bank ENBD.DU shedding 1.7% and Damac Properties DAMAC.DU retreating 4.6%.
No need for negative rates now, expansion so far may be enough - #Israel central banker | Reuters
No need for negative rates now, expansion so far may be enough - Israel central banker | Reuters
The Bank of Israel sees little reason to push its key rate to zero or below given low borrowing costs for consumers and businesses and may not need to boost other stimulus measures, a senior central banker said on Monday.
Bank of Israel Deputy Governor Andrew Abir told Reuters the central bank could hold off with further action if the economy started to recover from the coronavirus pandemic, no more lockdowns are needed and access to credit grows.
He also said there has not been much need for significant intervention in the currency market recently because the shekel has mostly stayed in a fairly narrow range.
The shekel ILS=, which has appreciated more than 2% versus the dollar so far in 2020 and is near a 12-year peak, weakened to a rate of 3.384 from 3.38 prior to Abir's remarks.
The Bank of Israel last Thursday held its benchmark interest rate ILINR=ECI at 0.1% for a fourth straight decision, while expanding its government bond purchasing and boosting credit to small businesses.
The Bank of Israel sees little reason to push its key rate to zero or below given low borrowing costs for consumers and businesses and may not need to boost other stimulus measures, a senior central banker said on Monday.
Bank of Israel Deputy Governor Andrew Abir told Reuters the central bank could hold off with further action if the economy started to recover from the coronavirus pandemic, no more lockdowns are needed and access to credit grows.
He also said there has not been much need for significant intervention in the currency market recently because the shekel has mostly stayed in a fairly narrow range.
The shekel ILS=, which has appreciated more than 2% versus the dollar so far in 2020 and is near a 12-year peak, weakened to a rate of 3.384 from 3.38 prior to Abir's remarks.
The Bank of Israel last Thursday held its benchmark interest rate ILINR=ECI at 0.1% for a fourth straight decision, while expanding its government bond purchasing and boosting credit to small businesses.
UAE's biggest bank FAB posts 19% drop in third quarter net profit | Reuters
UAE's biggest bank FAB posts 19% drop in third quarter net profit | Reuters
First Abu Dhabi Bank FAB.AD, the United Arab Emirates' biggest lender, reported a 19% fall in quarterly profit on Monday, dragged down by a double-digit drop in net interest income and higher impairment charges. Third-quarter net profit was 2.506 billion dirhams ($682 million), versus 3.11 billion dirhams a year earlier.
CI Capital expected FAB to post a net profit of 2.5 billion dirhams, while EFG Hermes had a forecast of 2.2 billion dirhams.
Impairment charges in the quarter were 504 million dirhams, up 7% from a year earlier.
First Abu Dhabi Bank FAB.AD, the United Arab Emirates' biggest lender, reported a 19% fall in quarterly profit on Monday, dragged down by a double-digit drop in net interest income and higher impairment charges. Third-quarter net profit was 2.506 billion dirhams ($682 million), versus 3.11 billion dirhams a year earlier.
CI Capital expected FAB to post a net profit of 2.5 billion dirhams, while EFG Hermes had a forecast of 2.2 billion dirhams.
Impairment charges in the quarter were 504 million dirhams, up 7% from a year earlier.
Oil drops on rising virus cases, increasing Libyan output | Reuters
Oil drops on rising virus cases, increasing Libyan output | Reuters
Oil prices fell on Monday, extending last week’s losses, as increasing coronavirus cases in the United States and Europe raised worries about energy demand, while Libya’s fast growing production also weighed on prices.
Brent was down 88 cents, or 2.1%, at $40.89 by 1306 GMT. U.S. West Texas Intermediate (WTI) dropped 92 cents, or 2.3%, to $38.93. Both contracts fell almost 2.5% last week.
The United States reported its highest number yet of new coronavirus infections in two days through Saturday, while in France new cases hit a record of more than 50,000 on Sunday. Italy and Spain imposed fresh restrictions to curb the virus.
The rising number of cases “not only highlight the risks posed by immediate transport restrictions, but also dampen long-term demand expectations,” said Commerzbank analyst Eugen Weinberg.
Brent was down 88 cents, or 2.1%, at $40.89 by 1306 GMT. U.S. West Texas Intermediate (WTI) dropped 92 cents, or 2.3%, to $38.93. Both contracts fell almost 2.5% last week.
The United States reported its highest number yet of new coronavirus infections in two days through Saturday, while in France new cases hit a record of more than 50,000 on Sunday. Italy and Spain imposed fresh restrictions to curb the virus.
The rising number of cases “not only highlight the risks posed by immediate transport restrictions, but also dampen long-term demand expectations,” said Commerzbank analyst Eugen Weinberg.
Column: Funds buy crude on expected delay to OPEC+ output increase - Kemp | Reuters
Column: Funds buy crude on expected delay to OPEC+ output increase - Kemp | Reuters
Hedge funds purchased crude futures and options at the fastest rate for six months as portfolio managers became increasingly confident OPEC+ will postpone scheduled output increases until demand is stronger.
The equivalent of 55 million barrels was purchased by hedge funds and other money managers in the six most important petroleum futures and options contracts in the week to Oct. 22.
Buying was concentrated in NYMEX and ICE WTI (+36 million barrels) and Brent (+20 million), with only minor adjustments in U.S. diesel (+2 million) and European gasoil (-4 million) and no change in U.S. gasoline.
In crude, fund managers continued to buy back previous bearish short positions (+22 million barrels), as in previous weeks, but also started to establish new bullish long positions (+34 million).
The net position in crude has increased over the two most recent weeks to 464 million barrels, up from a low of 380 million on Oct. 6 (tmsnrt.rs/3msmkRD).
The equivalent of 55 million barrels was purchased by hedge funds and other money managers in the six most important petroleum futures and options contracts in the week to Oct. 22.
Buying was concentrated in NYMEX and ICE WTI (+36 million barrels) and Brent (+20 million), with only minor adjustments in U.S. diesel (+2 million) and European gasoil (-4 million) and no change in U.S. gasoline.
In crude, fund managers continued to buy back previous bearish short positions (+22 million barrels), as in previous weeks, but also started to establish new bullish long positions (+34 million).
The net position in crude has increased over the two most recent weeks to 464 million barrels, up from a low of 380 million on Oct. 6 (tmsnrt.rs/3msmkRD).
#UAE vs #Turkey: the regional rivalries pitting MBZ against Erdogan | Financial Times
UAE vs Turkey: the regional rivalries pitting MBZ against Erdogan | Financial Times
When Sheikh Mohammed bin Zayed, the United Arab Emirates’ de facto leader, shook up the Middle East by agreeing to normalise relations with Israel, just two states in the region cried foul.
When Sheikh Mohammed bin Zayed, the United Arab Emirates’ de facto leader, shook up the Middle East by agreeing to normalise relations with Israel, just two states in the region cried foul.
Iran was predictably first up. Regime hardliners in the theocracy often call for the destruction of the Jewish state and deride the UAE as an American stooge. But arguably the harshest reaction came from Turkey, despite it being the first majority Muslim country to recognise Israel seven decades ago.
After Ankara raged that “the conscience of the region’s people” would “never forgive this hypocritical behaviour,” president Recep Tayyip Erdogan threatened to withdraw Turkey’s ambassador to the UAE. Abu Dhabi had anticipated the verbal salvo from both countries. But it was Turkey’s response that would have irked most.
During the past 18 months, the UAE has sought to reduce tensions with Tehran, and Emirati officials insisted September’s Israel deal had nothing to do with Iran, saying Abu Dhabi wanted to use diplomacy and de-escalation to resolve its issues with the Islamic republic. But just as Sheikh Mohammed, Abu Dhabi’s crown prince, has sought to cool the temperature with one nemesis, the UAE’s rivalry with Turkey has moved to a whole new level.
Over 10 months of accusation and counter accusation, it has become the Middle East’s most toxic feud, pitting two of the region’s most powerful, assertive leaders against each other; one of the US’s closest Arab partners against a Nato member. And it has reverberated from the oil-rich Gulf to the Horn of Africa and the front lines of Libya’s civil war, further fuelling tensions in the eastern Mediterranean.
Mideast’s Top Private Equity Firm Ready to Pounce as Rivals Fade - Bloomberg
Mideast’s Top Private Equity Firm Ready to Pounce as Rivals Fade - Bloomberg
The biggest private equity and alternative asset manager in the Middle East is on the lookout for deals after the economic fallout of the pandemic made companies cheaper to buy and scandals thinned out the competition.
Investcorp Holding BSC, which manages about $34 billion, is looking to do more in the region across the health-care, transport, logistics and industrial sectors, said Walid Majdalani, the firm’s head of private equity for the Middle East and North Africa.
The firm, which has channeled $1.4 billion into the region over the past decade and made a return of about 1.8 times on invested capital, is also facing less competition from other private equity investors, he said. Over the past four years, Investcorp helped sell three family-controlled companies in which it held stakes on the Saudi stock exchange.
“We see a lot of opportunity to replicate what we have done already in Saudi Arabia -- the difference is now business owners are a lot more realistic about valuations,” Majdalani said. “Also, in terms of other people who do what we do and have teams on the ground, today we don’t see a lot of competition.”
The private equity industry in the Middle East has been rocked by the collapse of Abraaj Capital in 2018 and the arrest of several of its executives amid allegations that it misused investor funds. Dubai-based Al Masah Capital Ltd. was placed in liquidation earlier this year after it was fined for allegedly misleading investors about fees and its founder Shailesh Dash banned from working in the emirate’s financial center.
The biggest private equity and alternative asset manager in the Middle East is on the lookout for deals after the economic fallout of the pandemic made companies cheaper to buy and scandals thinned out the competition.
Investcorp Holding BSC, which manages about $34 billion, is looking to do more in the region across the health-care, transport, logistics and industrial sectors, said Walid Majdalani, the firm’s head of private equity for the Middle East and North Africa.
The firm, which has channeled $1.4 billion into the region over the past decade and made a return of about 1.8 times on invested capital, is also facing less competition from other private equity investors, he said. Over the past four years, Investcorp helped sell three family-controlled companies in which it held stakes on the Saudi stock exchange.
“We see a lot of opportunity to replicate what we have done already in Saudi Arabia -- the difference is now business owners are a lot more realistic about valuations,” Majdalani said. “Also, in terms of other people who do what we do and have teams on the ground, today we don’t see a lot of competition.”
The private equity industry in the Middle East has been rocked by the collapse of Abraaj Capital in 2018 and the arrest of several of its executives amid allegations that it misused investor funds. Dubai-based Al Masah Capital Ltd. was placed in liquidation earlier this year after it was fined for allegedly misleading investors about fees and its founder Shailesh Dash banned from working in the emirate’s financial center.
How the amended bankruptcy law can boost the #UAE's economy - Arabianbusiness
How the amended bankruptcy law can boost the UAE's economy - Arabianbusiness
The UAE's decision to amend its Bankruptcy Law is an important step to boost investor confidence in the country, according to Hamad Buamim, the president and CEO of Dubai Chamber of Commerce.
The amendments, which were announced by the UAE Cabinet last week, enable individuals and businesses to overcome credit challenges in “emergency situations”, including the current one brought on by coronavirus.
“The decision to amend the UAE Bankruptcy Law is an important development that will ensure business continuity, boost investor confidence and enhance economic competitiveness,” said Buamim.
“The move complements the latest AED500 million ($136 million) economic stimulus package introduced by the Dubai government, which expands on ongoing efforts to help businesses overcome new challenges created by the pandemic,” he said.
Dubai announced the extra stimulus package late on Sunday in support of the coronavirus-hit businesses.
The UAE's decision to amend its Bankruptcy Law is an important step to boost investor confidence in the country, according to Hamad Buamim, the president and CEO of Dubai Chamber of Commerce.
The amendments, which were announced by the UAE Cabinet last week, enable individuals and businesses to overcome credit challenges in “emergency situations”, including the current one brought on by coronavirus.
“The decision to amend the UAE Bankruptcy Law is an important development that will ensure business continuity, boost investor confidence and enhance economic competitiveness,” said Buamim.
“The move complements the latest AED500 million ($136 million) economic stimulus package introduced by the Dubai government, which expands on ongoing efforts to help businesses overcome new challenges created by the pandemic,” he said.
Dubai announced the extra stimulus package late on Sunday in support of the coronavirus-hit businesses.
Chevron bets on Middle East gas riches and reconciliation | Reuters
Chevron bets on Middle East gas riches and reconciliation | Reuters
After years of focusing on U.S. shale, Chevron Corp CVX.N is staking its natural gas future on the Middle East, a volatile and divided region where energy majors have long tread warily.
CEO Michael Wirth’s pivot away from home is underpinned by a bet that the Middle East is entering an era of reconciliation that will make it ideal for tapping natural gas, as demand for the cheaper and cleaner fuel is forecast to outstrip oil.
The new strategy is seeing the company pitch new gas deals in Egypt, Israel, Qatar, while cutting spending on American shale exploration.
The plan is anchored by Wirth’s $11.8 billion purchase this month of U.S.-based Noble Energy, which holds a stake of about 40% in the aptly-named Leviathan gas field in the Mediterranean Sea, off the coast of Israel.
“Five years ago the Eastern Med wasn’t viewed as endowed from a resource standpoint as I think most people would say today. That’s a fundamental shift,” Wirth told Reuters in an interview.
After years of focusing on U.S. shale, Chevron Corp CVX.N is staking its natural gas future on the Middle East, a volatile and divided region where energy majors have long tread warily.
CEO Michael Wirth’s pivot away from home is underpinned by a bet that the Middle East is entering an era of reconciliation that will make it ideal for tapping natural gas, as demand for the cheaper and cleaner fuel is forecast to outstrip oil.
The new strategy is seeing the company pitch new gas deals in Egypt, Israel, Qatar, while cutting spending on American shale exploration.
The plan is anchored by Wirth’s $11.8 billion purchase this month of U.S.-based Noble Energy, which holds a stake of about 40% in the aptly-named Leviathan gas field in the Mediterranean Sea, off the coast of Israel.
“Five years ago the Eastern Med wasn’t viewed as endowed from a resource standpoint as I think most people would say today. That’s a fundamental shift,” Wirth told Reuters in an interview.
World should look at all options to reduce emissions, not get rid of oil, gas, #Saudi energy minister says | Reuters
World should look at all options to reduce emissions, not get rid of oil, gas, Saudi energy minister says | Reuters
Saudi Arabia’s energy minister said on Monday the world should be looking at all options to mitigate emissions of greenhouse gases in its fight against climate change, but that getting rid of oil and gas would be “far-fetched and unrealistic”.
“Let’s not focus on the fuel of choice but rather how we can mitigate and adapt to these realities without showing any preferences,” Abdulaziz bin Salman Al Saud told the Singapore Energy Summit.
“Let’s not focus on the fuel of choice but rather how we can mitigate and adapt to these realities without showing any preferences,” Abdulaziz bin Salman Al Saud told the Singapore Energy Summit.
#Dubai Bourse Set for First IPO in Three Years With Al Mal REIT - Bloomberg
Dubai Bourse Set for First IPO in Three Years With Al Mal REIT - Bloomberg
Al Mal Capital plans to sell shares in its real estate investment trust in January, reviving the IPO market in Dubai.
The company has received regulatory approval to list Al Mal Capital REIT on Dubai Financial Market PJSC, according to a statement on Monday. It is targeting an offer size of 500 million dirhams ($136.1 million) to acquire a diversified portfolio of real estate assets.
The DFM last saw an IPO in 2017, in contrast with Saudi Arabia that has had a raft of offerings this year. The IPO would be the first REIT to list on Dubai’s biggest and most liquid stock exchange, though two REITs already trade on the Nasdaq Dubai bourse.
Chronic oversupply has battered property values and rents in Dubai over the past six years, and measures to curb the spread of the coronavirus have aggravated that decline. Demand is expected to drop further as jobs are lost and expatriates forced to move out.
Al Mal Capital plans to sell shares in its real estate investment trust in January, reviving the IPO market in Dubai.
The company has received regulatory approval to list Al Mal Capital REIT on Dubai Financial Market PJSC, according to a statement on Monday. It is targeting an offer size of 500 million dirhams ($136.1 million) to acquire a diversified portfolio of real estate assets.
The DFM last saw an IPO in 2017, in contrast with Saudi Arabia that has had a raft of offerings this year. The IPO would be the first REIT to list on Dubai’s biggest and most liquid stock exchange, though two REITs already trade on the Nasdaq Dubai bourse.
Chronic oversupply has battered property values and rents in Dubai over the past six years, and measures to curb the spread of the coronavirus have aggravated that decline. Demand is expected to drop further as jobs are lost and expatriates forced to move out.
Emaar Eclipsed as Top #UAE Developer After $8 Billion Aldar Deal - Bloomberg
Emaar Eclipsed as Top UAE Developer After $8 Billion Aldar Deal - Bloomberg
Aldar Properties PJSC became the biggest listed developer in the United Arab Emirates after its shares rose the most in six years on the back of an $8.2 billion deal with a state-owned entity in Abu Dhabi.
The stock climbed as much as 15% to trade at 2.54 dirhams ($0.69), the highest level since early 2017. The rally lifted Aldar’s market value to about 20 billion dirhams, taking it past Burj Khalifa developer Emaar Properties PJSC.
Aldar Properties PJSC became the biggest listed developer in the United Arab Emirates after its shares rose the most in six years on the back of an $8.2 billion deal with a state-owned entity in Abu Dhabi.
The stock climbed as much as 15% to trade at 2.54 dirhams ($0.69), the highest level since early 2017. The rally lifted Aldar’s market value to about 20 billion dirhams, taking it past Burj Khalifa developer Emaar Properties PJSC.
Aldar will take over the development and management of projects worth 30 billion dirhams in Abu Dhabi as part of an agreement with ADQ, according to a statement on Sunday. The transaction “will significantly support future profit growth,” Aldar Chief Executive officer Talal Al Dhiyebi said.
Much of the UAE has been struggling with excess supply in the real estate market, a glut compounded by job losses that are pushing the largely expatriate population out. Although oversupply in Abu Dhabi is less severe than in Dubai, there have been concerns around prospects for growth.
Property prices have slid by 30% in Dubai since 2014 amid a slump in oil prices, a commodity that underpins the economies of the entire Gulf region. Now, the pandemic has hit even the most diversified companies as hospitality, retail, education and commercial real estate struggle with declining demand.
Much of the UAE has been struggling with excess supply in the real estate market, a glut compounded by job losses that are pushing the largely expatriate population out. Although oversupply in Abu Dhabi is less severe than in Dubai, there have been concerns around prospects for growth.
Property prices have slid by 30% in Dubai since 2014 amid a slump in oil prices, a commodity that underpins the economies of the entire Gulf region. Now, the pandemic has hit even the most diversified companies as hospitality, retail, education and commercial real estate struggle with declining demand.
Rents in #Dubai continue to plunge as more tenants vacate homes | ZAWYA MENA Edition
Rents in Dubai continue to plunge as more tenants vacate homes | ZAWYA MENA Edition
Residential rents in Dubai continue to decline, as more tenants move out of their homes amid the challenges resulting from the coronavirus pandemic, according to a new report.
Tenant movement increased significantly during the third quarter of the year, with residents either downsizing, leaving the UAE or sending their dependent families back to their home countries, property consultancy Asteco said.
From July to September, villa rents fell by 2 percent over the previous quarter and 9 percent compared with the same period last year. The decline in apartment rents was more pronounced, recording quarterly and annual decreases of 4 percent and 13 percent, respectively.
“While numerous residents are downsizing in terms of unit sizes, quality specification and/ or location, others are repatriating to their home countries or sending their extended family back due to job losses, salary cuts and/ or simply as a pre-emptive measure given current uncertainties and risks,” the firm said.
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Aerial view of urban skyline and skyscrapers in Dubai UAE. Image used for illustrative purpose Getty Images |
Tenant movement increased significantly during the third quarter of the year, with residents either downsizing, leaving the UAE or sending their dependent families back to their home countries, property consultancy Asteco said.
From July to September, villa rents fell by 2 percent over the previous quarter and 9 percent compared with the same period last year. The decline in apartment rents was more pronounced, recording quarterly and annual decreases of 4 percent and 13 percent, respectively.
“While numerous residents are downsizing in terms of unit sizes, quality specification and/ or location, others are repatriating to their home countries or sending their extended family back due to job losses, salary cuts and/ or simply as a pre-emptive measure given current uncertainties and risks,” the firm said.
DP World will meet targets despite uncertainty over COVID-19 second wave, US polls, trade wars - CEO | ZAWYA MENA Edition
DP World will meet targets despite uncertainty over COVID-19 second wave, US polls, trade wars - CEO | ZAWYA MENA Edition
International port operator DP World handled 18.3 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in Q3 2020, with gross container volumes increasing by 3.1 percent year-on-year.
DP World throughput grew by 1.9 percent year-on-year compared to a 2.2 percent decline for the industry. "This performance is ahead of expectations and once again illustrates the resilience of the global container industry, and DP World’s continued ability to outperform the market," Group Chairman and Chief Executive Officer Sultan Ahmed Bin Sulayem, said.
"Overall, while we are encouraged by the recent volume trends, the outlook remains uncertain given the possibility of new lockdowns due to Covid-19 second wave, geopolitical uncertainty with US elections and lack of progress made on trade wars, he said.
"However, the nine-month solid volume performance leaves us well placed to deliver a relatively stable financial performance in 2020 and we remain confident of meeting our 2022 targets," he added.
International port operator DP World handled 18.3 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in Q3 2020, with gross container volumes increasing by 3.1 percent year-on-year.
DP World throughput grew by 1.9 percent year-on-year compared to a 2.2 percent decline for the industry. "This performance is ahead of expectations and once again illustrates the resilience of the global container industry, and DP World’s continued ability to outperform the market," Group Chairman and Chief Executive Officer Sultan Ahmed Bin Sulayem, said.
"Overall, while we are encouraged by the recent volume trends, the outlook remains uncertain given the possibility of new lockdowns due to Covid-19 second wave, geopolitical uncertainty with US elections and lack of progress made on trade wars, he said.
"However, the nine-month solid volume performance leaves us well placed to deliver a relatively stable financial performance in 2020 and we remain confident of meeting our 2022 targets," he added.
National Bank of #Kuwait's third-quarter net profit drops 38% on bad debt provisioning | Reuters
National Bank of Kuwait's third-quarter net profit drops 38% on bad debt provisioning | Reuters:
National Bank of Kuwait NBKK.KW, the country's biggest lender, on Monday reported a 38% drop in third-quarter net profit, hit by higher provisioning for bad debt and the slowdown caused by the coronavirus pandemic.
NBK’s posted a net profit of 57.6 million dinar ($188.54 million) for the period ended September 30, down from 93.1 million dinars in the same period a year earlier.
The International Monetary Fund expects Kuwait’s economy to contract by 8.1% this year, as it warned the economic outlook was worsening for many emerging markets amid the coronavirus crisis.
National Bank of Kuwait NBKK.KW, the country's biggest lender, on Monday reported a 38% drop in third-quarter net profit, hit by higher provisioning for bad debt and the slowdown caused by the coronavirus pandemic.
NBK’s posted a net profit of 57.6 million dinar ($188.54 million) for the period ended September 30, down from 93.1 million dinars in the same period a year earlier.
The International Monetary Fund expects Kuwait’s economy to contract by 8.1% this year, as it warned the economic outlook was worsening for many emerging markets amid the coronavirus crisis.
Oil falls 3% as COVID-19 infections raise demand concerns | Reuters
Oil falls 3% as COVID-19 infections raise demand concerns | Reuters
Oil fell 3% on Monday, extending last week’s losses as growing cases of COVID-19 in the United States and Europe raised worries about crude demand, while the prospect of increased supply also hurt sentiment.
Brent crude LCOc1 was down $1.25 cents, or 3%, at $40.52 by 0755 GMT. U.S. West Texas Intermediate (WTI) dropped $1.28 cents, or 3.2%, to $38.57, having fallen more than a dollar shortly after the start of trading.
Brent fell 2.7% last week and WTI dropped 2.5%.
The United States reported its highest number yet of new coronavirus infections in two days through Saturday, while in France new cases hit a record of more than 50,000 on Sunday, underlining the severity of the outbreak.
Oil fell 3% on Monday, extending last week’s losses as growing cases of COVID-19 in the United States and Europe raised worries about crude demand, while the prospect of increased supply also hurt sentiment.
Brent crude LCOc1 was down $1.25 cents, or 3%, at $40.52 by 0755 GMT. U.S. West Texas Intermediate (WTI) dropped $1.28 cents, or 3.2%, to $38.57, having fallen more than a dollar shortly after the start of trading.
Brent fell 2.7% last week and WTI dropped 2.5%.
The United States reported its highest number yet of new coronavirus infections in two days through Saturday, while in France new cases hit a record of more than 50,000 on Sunday, underlining the severity of the outbreak.
MIDEAST STOCKS- #Saudi stocks extend losses, #UAE gains in early trade | Nasdaq
MIDEAST STOCKS-Saudi stocks extend losses, UAE gains in early trade | Nasdaq
Most Gulf stocks fell in early trading on Monday, with Saudi Arabia extending losses from the previous session as oil prices fell, but indexes in the United Arab Emirates traded higher due to a bounce in real estate shares.
Oil slid more than 2%, extending last week's losses as a growing number of COVID-19 cases in the United States and Europe raised worries about crude demand, while the prospect of increased supply also hurt sentiment.
Brent crude .LCOc1, which fell 2.7% last week, was down 2.1% at $40.88 by 0647 GMT on Monday.
Saudi Arabia's index .TASI rose as much as 1.4% in opening trade, but lost ground to fall 0.7%, extending the losses of the previous session, when it plunged 4.1%.
Most Gulf stocks fell in early trading on Monday, with Saudi Arabia extending losses from the previous session as oil prices fell, but indexes in the United Arab Emirates traded higher due to a bounce in real estate shares.
Oil slid more than 2%, extending last week's losses as a growing number of COVID-19 cases in the United States and Europe raised worries about crude demand, while the prospect of increased supply also hurt sentiment.
Brent crude .LCOc1, which fell 2.7% last week, was down 2.1% at $40.88 by 0647 GMT on Monday.
Saudi Arabia's index .TASI rose as much as 1.4% in opening trade, but lost ground to fall 0.7%, extending the losses of the previous session, when it plunged 4.1%.
Saudi Aramco 2222.E lost 0.7% and National Commercial Bank 1180.SE was down 1.1%.
Losses were partially offset by a 2.5% rise in Dr. Sulaiman Al-Habib Medical Services Group 4013.SE and a 5% jump in Najran Cement 3002.SE.
On Sunday, the healthcare firm reported a 50.9% rise in quarterly profit , while the cement maker's profit jumped 235.4% in the third quarter to 47.4 million riyals ($12.6 million).
The Dubai index .DFMGI was up 0.4%, with Emaar Properties EMAR.DU rising 1.2% and Dubai Investments DINV.DU gaining 0.7%.
Dubai Investments said on Monday its subsidiary Al Mal Capital had received Securities and Commodities Authority of the UAE (SCA) approval to float its newly founded entity, Al Mal Capital REIT, with a target offer size of 500 million dirhams ($136.14 million).
Abu Dhabi's index .ADI was also up 0.4%, boosted by an 11.3% jump in Aldar Properties ALDAR.AD.
The real estate developer will take over the management and development of government capital projects worth 30 billion dirhams ($8.2 billion) under an agreement with state-backed ADQ, the Abu Dhabi Government Media office said.
The Qatari index .QSI fell 0.6%, hurt by a 3.3% plunge in Commercial Bank COMB.QA. The lender reported a 22% drop in nine-month net profit to 1.15 billion Riyals ($315.8 million).
Losses were partially offset by a 2.5% rise in Dr. Sulaiman Al-Habib Medical Services Group 4013.SE and a 5% jump in Najran Cement 3002.SE.
On Sunday, the healthcare firm reported a 50.9% rise in quarterly profit , while the cement maker's profit jumped 235.4% in the third quarter to 47.4 million riyals ($12.6 million).
The Dubai index .DFMGI was up 0.4%, with Emaar Properties EMAR.DU rising 1.2% and Dubai Investments DINV.DU gaining 0.7%.
Dubai Investments said on Monday its subsidiary Al Mal Capital had received Securities and Commodities Authority of the UAE (SCA) approval to float its newly founded entity, Al Mal Capital REIT, with a target offer size of 500 million dirhams ($136.14 million).
Abu Dhabi's index .ADI was also up 0.4%, boosted by an 11.3% jump in Aldar Properties ALDAR.AD.
The real estate developer will take over the management and development of government capital projects worth 30 billion dirhams ($8.2 billion) under an agreement with state-backed ADQ, the Abu Dhabi Government Media office said.
The Qatari index .QSI fell 0.6%, hurt by a 3.3% plunge in Commercial Bank COMB.QA. The lender reported a 22% drop in nine-month net profit to 1.15 billion Riyals ($315.8 million).