Saudi Arabia to Review VAT Hike Once Economic Crisis Ends - Bloomberg
Saudi Arabia will review its controversial decision to triple the value-added tax once the current economic crisis is over, its acting media minister said.
The VAT hike to 15%, implemented in July, is “like any decision, it will be reviewed once we’re finished with this crisis and things return to normal,” Majid Al-Qasabi said in a televised news conference on Thursday. Al-Qasabi, who also serves as minister of commerce, said he knew the tax was “a concern for every family and every individual.”
The world’s largest crude exporter has endured twin economic shocks this year from the coronavirus pandemic and oil market turmoil. As the state’s main source of revenue shrunk, Saudi officials not only raised VAT but also increased customs fees, slashed a cost-of-living allowance for public-sector workers and trimmed a key government aid program.
The austerity measures have cut deeply into the pockets of poor and middle-class citizens in a country where taxation is still a relatively new concept. The 5% VAT had just been introduced in 2018 in an effort to boost non-oil revenue.
Thursday, 19 November 2020
Most markets retreat on lower oil prices, but post weekly gains | Reuters
Most markets retreat on lower oil prices, but post weekly gains | Reuters
Major Gulf markets ended down on Thursday weighed by lower oil prices, but eked out gains for the week on optimism over a COVID-19 vaccine and hopes of a speedy global economic recovery.
Over the past two weeks, financial markets globally were spurred by two U.S. drugmakers, Pfizer PFE.N and Moderna Inc MRNA.O, releasing encouraging news on the effectiveness of their vaccines against the coronavirus infection.
The euphoria fizzled out on Thursday, with oil futures falling as a surge in coronavirus cases and tighter economic restrictions around the world weighed on fuel demand expectations, while also weighing on equities globally. [O/R]
Saudi Arabia's benchmark index .TASI lost 0.5%, with lender Al-Rajhi Bank 1120.SE leading declines with a 0.7% fall.
The Saudi benchmark managed a third consecutive weekly gain of 1.7%.
Dubai's main share index .DFMGI finished down 0.5%, dragged by financial stocks Dubai Islamic Bank DISB.DU and Emirates NBD Bank ENBD.DU, which slid about 0.5% and 1%, respectively. The benchmark posted a weekly gain of 2.4%.
The Abu Dhabi index .ADI registered its second straight session of losses, finishing down 0.8%, but managed a weekly gain of 1.2%.
Major lenders First Abu Dhabi Bank FAB.AD and Abu Dhabi Commercial Bank ADCB.AD fell 1.7% and 1%, respectively, while telecom firm Etisalat ETISALAT.AD shed 0.5%.
In Qatar, the benchmark index .QSI slipped 1.4%, largely dragged by financial stocks. Qatar National Bank QNBK.QA and Commercial Bank COMB.QA lost 3.7% each.
Bucking the trend, the benchmark indexes of Bahrain .BAX and Kuwait .BKP gained 0.5% and 0.9%, respectively.
Major Gulf markets ended down on Thursday weighed by lower oil prices, but eked out gains for the week on optimism over a COVID-19 vaccine and hopes of a speedy global economic recovery.
Over the past two weeks, financial markets globally were spurred by two U.S. drugmakers, Pfizer PFE.N and Moderna Inc MRNA.O, releasing encouraging news on the effectiveness of their vaccines against the coronavirus infection.
The euphoria fizzled out on Thursday, with oil futures falling as a surge in coronavirus cases and tighter economic restrictions around the world weighed on fuel demand expectations, while also weighing on equities globally. [O/R]
Saudi Arabia's benchmark index .TASI lost 0.5%, with lender Al-Rajhi Bank 1120.SE leading declines with a 0.7% fall.
The Saudi benchmark managed a third consecutive weekly gain of 1.7%.
Dubai's main share index .DFMGI finished down 0.5%, dragged by financial stocks Dubai Islamic Bank DISB.DU and Emirates NBD Bank ENBD.DU, which slid about 0.5% and 1%, respectively. The benchmark posted a weekly gain of 2.4%.
The Abu Dhabi index .ADI registered its second straight session of losses, finishing down 0.8%, but managed a weekly gain of 1.2%.
Major lenders First Abu Dhabi Bank FAB.AD and Abu Dhabi Commercial Bank ADCB.AD fell 1.7% and 1%, respectively, while telecom firm Etisalat ETISALAT.AD shed 0.5%.
In Qatar, the benchmark index .QSI slipped 1.4%, largely dragged by financial stocks. Qatar National Bank QNBK.QA and Commercial Bank COMB.QA lost 3.7% each.
Bucking the trend, the benchmark indexes of Bahrain .BAX and Kuwait .BKP gained 0.5% and 0.9%, respectively.
Reliance says retail venture completes fundraising, rakes in $6.4 billion | Reuters
Reliance says retail venture completes fundraising, rakes in $6.4 billion | Reuters
India’s Reliance Industries Ltd on Thursday said its retail arm had completed its fundraising exercise as more than half a dozen investors poured 472.65 billion rupees ($6.37 billion) into a 10.09% stake in the company in two months.
Reliance Retail Ventures Ltd (RRVL) began raising capital in September, with U.S.-based private equity firm Silver Lake Partners pumping 75 billion rupees for 1.6% of the venture.
The eight other investors in RRVL include Saudi Arabia’s Public Investment Fund, private equity firm KKR & Co Inc, Abu Dhabi state fund Mubadala Investment Co and Abu Dhabi Investment Authority.
The funds will help Reliance, India’s biggest retailer with roughly 12,000 stores, to aggressively expand its so-called new commerce venture, which ties neighbourhood stores to Reliance for online deliveries of groceries, apparel and electronics in a space currently dominated by Walmart Inc’ s Flipkart and Amazon.com Inc’s Indian arm.
India’s Reliance Industries Ltd on Thursday said its retail arm had completed its fundraising exercise as more than half a dozen investors poured 472.65 billion rupees ($6.37 billion) into a 10.09% stake in the company in two months.
Reliance Retail Ventures Ltd (RRVL) began raising capital in September, with U.S.-based private equity firm Silver Lake Partners pumping 75 billion rupees for 1.6% of the venture.
The eight other investors in RRVL include Saudi Arabia’s Public Investment Fund, private equity firm KKR & Co Inc, Abu Dhabi state fund Mubadala Investment Co and Abu Dhabi Investment Authority.
The funds will help Reliance, India’s biggest retailer with roughly 12,000 stores, to aggressively expand its so-called new commerce venture, which ties neighbourhood stores to Reliance for online deliveries of groceries, apparel and electronics in a space currently dominated by Walmart Inc’ s Flipkart and Amazon.com Inc’s Indian arm.
Oil prices pull back as surge in virus cases raises concerns about demand | Reuters
Oil prices pull back as surge in virus cases raises concerns about demand | Reuters
Oil prices slipped on Thursday as hopes for a vaccine were overshadowed by a surge in new cases of the coronavirus around the world, which raised concerns about the outlook for crude demand.
Brent crude LCOc1 settled down 14 cents to $44.20 a barrel. U.S. West Texas Intermediate crude CLc1 slipped 8 cents to settle at $41.74 a barrel.
The Brent price contango LCOc1-LCOc7, a market structure in which near-month barrels are cheaper than those in later months, implying current oversupply, was at its shallowest in more than four months. This suggests concerns about a glut are easing.
“COVID is definitely weighing on the market,” said Bob Yawger, director of energy futures at Mizuho in New York. For crude oil, specifically, though, there’s a risk that a new OPEC price war could emerge, Yawger said. “I think they will come to an agreement, but 24 hours ago, it seemed like a done deal,” he said.
While official data on Wednesday showed U.S. crude inventories USOILC=ECI rose 768,000 barrels last week, crucially the rise was smaller than the 1.7 million barrels analysts had expected in a Reuters poll.
Oil prices slipped on Thursday as hopes for a vaccine were overshadowed by a surge in new cases of the coronavirus around the world, which raised concerns about the outlook for crude demand.
Brent crude LCOc1 settled down 14 cents to $44.20 a barrel. U.S. West Texas Intermediate crude CLc1 slipped 8 cents to settle at $41.74 a barrel.
The Brent price contango LCOc1-LCOc7, a market structure in which near-month barrels are cheaper than those in later months, implying current oversupply, was at its shallowest in more than four months. This suggests concerns about a glut are easing.
“COVID is definitely weighing on the market,” said Bob Yawger, director of energy futures at Mizuho in New York. For crude oil, specifically, though, there’s a risk that a new OPEC price war could emerge, Yawger said. “I think they will come to an agreement, but 24 hours ago, it seemed like a done deal,” he said.
While official data on Wednesday showed U.S. crude inventories USOILC=ECI rose 768,000 barrels last week, crucially the rise was smaller than the 1.7 million barrels analysts had expected in a Reuters poll.
Middle East, #SaudiArabia News: Minimum Wage Raised for Citizens by 33% - Bloomberg
Middle East, Saudi Arabia News: Minimum Wage Raised for Citizens by 33% - Bloomberg
Saudi Arabia will raise its minimum wage for citizens by a third to 4,000 riyals ($1,066), according to a statement by the Ministry of Human Resources and Social Development.
The ministry said the decision will be applied five months from Wednesday, without giving an exact date.
The higher minimum wage must be paid for a worker to be counted as part of a company’s quota of citizen employees, the ministry said. Workers paid between the previous minimum wage of 3,000 riyals and 4,000 riyals will be counted as half of a Saudi employee.
Saudi Arabia will raise its minimum wage for citizens by a third to 4,000 riyals ($1,066), according to a statement by the Ministry of Human Resources and Social Development.
The ministry said the decision will be applied five months from Wednesday, without giving an exact date.
The higher minimum wage must be paid for a worker to be counted as part of a company’s quota of citizen employees, the ministry said. Workers paid between the previous minimum wage of 3,000 riyals and 4,000 riyals will be counted as half of a Saudi employee.
#UAE is a committed member of OPEC: energy minister | Reuters
UAE is a committed member of OPEC: energy minister | Reuters
UAE Energy Minister Suhail al-Mazrouei said on Thursday that his country has always been a committed member of OPEC and that it has demonstrated this commitment through its compliance to the current OPEC+ oil supply reduction agreement.
“As a reliable and longstanding member of OPEC, we have always been open and transparent in all our decisions and strategies in support of OPEC,” Mazrouei said in a statement to Reuters.
The minister’s comments were in response to media reports that the UAE has been questioning the benefits of being in OPEC and even considering whether to leave the oil producing group.
UAE Energy Minister Suhail al-Mazrouei said on Thursday that his country has always been a committed member of OPEC and that it has demonstrated this commitment through its compliance to the current OPEC+ oil supply reduction agreement.
“As a reliable and longstanding member of OPEC, we have always been open and transparent in all our decisions and strategies in support of OPEC,” Mazrouei said in a statement to Reuters.
The minister’s comments were in response to media reports that the UAE has been questioning the benefits of being in OPEC and even considering whether to leave the oil producing group.
#UAE Escalates OPEC Dispute as Tensions on Output Quotas Grow - Bloomberg
UAE Escalates OPEC Dispute as Tensions on Output Quotas Grow - Bloomberg
The United Arab Emirates ratcheted up tension with oil allies in OPEC+, with officials privately questioning the benefits of being in the producers’ alliance and even considering whether to leave it.
The UAE has not said publicly it’s debating its membership, let alone planning to exit. And officials briefed the media under condition they would not be named, allowing room for maneuver if they later want to distance themselves from the comments.
The move is unusual because the UAE -- the biggest producer in OPEC after Saudi Arabia and Iraq -- has long avoided public clashes, preferring to solve disputes quietly behind closed doors. It’s unclear whether the warning is designed to force a negotiation over output levels with OPEC+’s leaders Saudi Arabia and Russia, or if it represents a genuine policy debate. Any decision to leave OPEC would need the approval of Mohammed bin Zayed, the UAE’s de factor ruler and Abu Dhabi’s crown prince.
Tension between Riyadh and Abu Dhabi has grown since late summer, when the UAE breached its OPEC+ quota and got a stern warning from its neighbor. Emirati policy makers seem increasingly frustrated by what they see as an unfair allocation of production caps and as the UAE economy reels from shriveling oil revenue and the coronavirus pandemic.
The United Arab Emirates ratcheted up tension with oil allies in OPEC+, with officials privately questioning the benefits of being in the producers’ alliance and even considering whether to leave it.
The UAE has not said publicly it’s debating its membership, let alone planning to exit. And officials briefed the media under condition they would not be named, allowing room for maneuver if they later want to distance themselves from the comments.
The move is unusual because the UAE -- the biggest producer in OPEC after Saudi Arabia and Iraq -- has long avoided public clashes, preferring to solve disputes quietly behind closed doors. It’s unclear whether the warning is designed to force a negotiation over output levels with OPEC+’s leaders Saudi Arabia and Russia, or if it represents a genuine policy debate. Any decision to leave OPEC would need the approval of Mohammed bin Zayed, the UAE’s de factor ruler and Abu Dhabi’s crown prince.
Tension between Riyadh and Abu Dhabi has grown since late summer, when the UAE breached its OPEC+ quota and got a stern warning from its neighbor. Emirati policy makers seem increasingly frustrated by what they see as an unfair allocation of production caps and as the UAE economy reels from shriveling oil revenue and the coronavirus pandemic.
#UAE stocks get double-upgrade on broad recovery hopes | ZAWYA MENA Edition
UAE stocks get double-upgrade on broad recovery hopes | ZAWYA MENA Edition
Stocks in the UAE have received a double-upgrade from Morgan Stanley on the ground that they are highly exposed to a broad recovery.
The US multinational investment bank argues that the recovery of UAE bourse is possible as the positive virus vaccine news remains “far from priced.”
Shares listed in Dubai and Abu Dhabi bourses, which are lagging emerging-market peers this year, got a double-upgrade to tactical overweight as their exposure to cyclical sectors including tourism, leisure and financials — a burden during the pandemic so far — stands to benefit from upcoming vaccines, Morgan Stanley strategists including Marina Zavolock and Regiane Yamanari wrote in a note.
The bullish outlook for the UAE stocks came as Dubai’s main share index added about 0.3 per cent on Wednesday, with Dubai Islamic Bank and Dubai Investments leading gains, putting on 0.9 per cent and 1.7 per cent respectively.
Stocks in the UAE have received a double-upgrade from Morgan Stanley on the ground that they are highly exposed to a broad recovery.
The US multinational investment bank argues that the recovery of UAE bourse is possible as the positive virus vaccine news remains “far from priced.”
Shares listed in Dubai and Abu Dhabi bourses, which are lagging emerging-market peers this year, got a double-upgrade to tactical overweight as their exposure to cyclical sectors including tourism, leisure and financials — a burden during the pandemic so far — stands to benefit from upcoming vaccines, Morgan Stanley strategists including Marina Zavolock and Regiane Yamanari wrote in a note.
The bullish outlook for the UAE stocks came as Dubai’s main share index added about 0.3 per cent on Wednesday, with Dubai Islamic Bank and Dubai Investments leading gains, putting on 0.9 per cent and 1.7 per cent respectively.
Emaar's founder Alabbar sees situation getting better in 9 to 12 months | ZAWYA MENA Edition
Emaar's founder Alabbar sees situation getting better in 9 to 12 months | ZAWYA MENA Edition
Mohamed Alabbar, founder of Emaar Properties and e-commerce platform noon.com, hopes that the economic situation will be better in the next nine to 12 months as the world anxiously waits for the Covid-19 vaccine.
“I believe life will go back to normal and we are not going to have big damage to shopping malls. There is damage to malls in America because there is an overbuilt situation… I truly believe that we will conquer this virus and bounce back,” Alabbar said during a panel discussion hosted by Bloomberg on Tuesday evening.
Keisha Lance Bottoms, mayor of Atlanta, and Xin Zhang, co-founder and CEO of Soho China, also took part in the panel discussion on how to reboot cities post pandemic.
“Shopping malls and restaurants are doing relatively well. But some sectors are not doing well, tourism and travel is suffering a lot,” he said.
Alabbar praised the UAE’s approach in handling the coronavirus by opening up the country and at the same time tripled the Covid-19 tests to contain the pandemic.
Mohamed Alabbar, founder of Emaar Properties and e-commerce platform noon.com, hopes that the economic situation will be better in the next nine to 12 months as the world anxiously waits for the Covid-19 vaccine.
“I believe life will go back to normal and we are not going to have big damage to shopping malls. There is damage to malls in America because there is an overbuilt situation… I truly believe that we will conquer this virus and bounce back,” Alabbar said during a panel discussion hosted by Bloomberg on Tuesday evening.
Keisha Lance Bottoms, mayor of Atlanta, and Xin Zhang, co-founder and CEO of Soho China, also took part in the panel discussion on how to reboot cities post pandemic.
“Shopping malls and restaurants are doing relatively well. But some sectors are not doing well, tourism and travel is suffering a lot,” he said.
Alabbar praised the UAE’s approach in handling the coronavirus by opening up the country and at the same time tripled the Covid-19 tests to contain the pandemic.
Oil prices mixed as surging COVID-19 cases outweigh vaccine optimism | Reuters
Oil prices mixed as surging COVID-19 cases outweigh vaccine optimism | Reuters
Oil futures were mixed on Thursday as the surge in coronavirus cases and tighter economic restrictions around the globe stoked fears over slower fuel demand, outweighing upbeat vaccine news.
Brent crude futures LCOc1 rose 12 cents, or 0.3%, to $44.46 a barrel by 0732 GMT, reversing from an earlier loss. U.S. West Texas Intermediate crude CLc1 slipped 3 cents, or 0.1%, to $41.79 a barrel, paring most of its earlier declines.
Brent rose 1.4% and WTI climbed nearly 1% on Wednesday.
“The spread of coronavirus infection and fresh restrictions in the United States and other parts of the world hit market sentiment as it would hamper fuel demand,” said Kazuhiko Saito, chief analyst at Fujitomi Co.
“Investors are also booking profits from the recent rally before the U.S. Thanksgiving holiday later this month,” he said.
Oil futures were mixed on Thursday as the surge in coronavirus cases and tighter economic restrictions around the globe stoked fears over slower fuel demand, outweighing upbeat vaccine news.
Brent crude futures LCOc1 rose 12 cents, or 0.3%, to $44.46 a barrel by 0732 GMT, reversing from an earlier loss. U.S. West Texas Intermediate crude CLc1 slipped 3 cents, or 0.1%, to $41.79 a barrel, paring most of its earlier declines.
Brent rose 1.4% and WTI climbed nearly 1% on Wednesday.
“The spread of coronavirus infection and fresh restrictions in the United States and other parts of the world hit market sentiment as it would hamper fuel demand,” said Kazuhiko Saito, chief analyst at Fujitomi Co.
“Investors are also booking profits from the recent rally before the U.S. Thanksgiving holiday later this month,” he said.
MIDEAST STOCKS-Gulf markets lose steam, but set for weekly gains | Nasdaq
MIDEAST STOCKS-Gulf markets lose steam, but set for weekly gains | Nasdaq
Most major Gulf markets retreated on Thursday, drifting off gains logged in the recent sessions over optimism about COVID-19 vaccine and hopes of a speedier global economic recovery.
Over the last two weeks, financial markets globally were spurred by encouraging news as two U.S. drugmakers Pfizer PFE.N and Moderna Inc MRNA.O released encouraging news on the effectiveness of vaccine against the infection.
The euphoria fizzled out on Thursday, with oil futures also easing while surrendering some gains from the previous day as the surge in coronavirus cases and tighter economic restrictions around the globe stoked fears over slower fuel demand.
Saudi Arabia's benchmark index .TASI was down about 0.2%, with Saudi Telecom 7010.SE and Saudi Aramco 7010.SE leading the losses, slipping 0.6% and 0.7%, respectively.
The Saudi benchmark, however, is on track to post a third consecutive weekly gain, mainly benefiting from the positive vaccine news.
Dubai's main share index .DFMGI fell 0.5%, dragged by financial stocks Dubai Islamic Bank DISB.DU and Emirates NBD Bank ENBD.DU, which slid 0.7% and 0.5%, respectively. But, the benchmark is set for a weekly gain of more than 2%.
The Abu Dhabi index .ADI is set to post its second straight session of losses, declining 0.6% in morning trade, but is also poised to register gains for the week.
Major lenders First Abu Dhabi Bank FAB.AD and Abu Dhabi Commercial Bank ADCB.AD led the session's losses, falling nearly a percent each.
In Qatar also, the benchmark index .QSI declined, trading 0.5% lower, dragged mainly by financial stocks. Qatar National Bank QNBK.QA and Qatar Islamic Bank QISB.QA lost more than 1% each.
Most major Gulf markets retreated on Thursday, drifting off gains logged in the recent sessions over optimism about COVID-19 vaccine and hopes of a speedier global economic recovery.
Over the last two weeks, financial markets globally were spurred by encouraging news as two U.S. drugmakers Pfizer PFE.N and Moderna Inc MRNA.O released encouraging news on the effectiveness of vaccine against the infection.
The euphoria fizzled out on Thursday, with oil futures also easing while surrendering some gains from the previous day as the surge in coronavirus cases and tighter economic restrictions around the globe stoked fears over slower fuel demand.
Saudi Arabia's benchmark index .TASI was down about 0.2%, with Saudi Telecom 7010.SE and Saudi Aramco 7010.SE leading the losses, slipping 0.6% and 0.7%, respectively.
The Saudi benchmark, however, is on track to post a third consecutive weekly gain, mainly benefiting from the positive vaccine news.
Dubai's main share index .DFMGI fell 0.5%, dragged by financial stocks Dubai Islamic Bank DISB.DU and Emirates NBD Bank ENBD.DU, which slid 0.7% and 0.5%, respectively. But, the benchmark is set for a weekly gain of more than 2%.
The Abu Dhabi index .ADI is set to post its second straight session of losses, declining 0.6% in morning trade, but is also poised to register gains for the week.
Major lenders First Abu Dhabi Bank FAB.AD and Abu Dhabi Commercial Bank ADCB.AD led the session's losses, falling nearly a percent each.
In Qatar also, the benchmark index .QSI declined, trading 0.5% lower, dragged mainly by financial stocks. Qatar National Bank QNBK.QA and Qatar Islamic Bank QISB.QA lost more than 1% each.