Saudi Arabia’s Acwa Power Set to Raise $1 Billion in Sukuk Sale - Bloomberg
Saudi Arabia’s Acwa Power International, half-owned by the kingdom’s sovereign wealth fund, is planning to raise about $1 billion by selling Islamic bonds early next year, according to people familiar with the matter.
The company, one of the largest developers of power plants in the Middle East, has appointed the Saudi unit of HSBC Holdings Plc and Samba Capital to advise on the issuance, the people said, asking not to be identified as the information is private. The sukuk, as Islamic bonds are known, will be used to help fund Acwa’s share of an $8 billion acquisition of gasification and power assets at Jazan on Saudi Arabia’s west coast.
The sukuk will be followed by Acwa’s initial public offering on the Riyadh stock exchange, which could raise about $1 billion and value the company at about $8 billion, the people said.
Acwa, HSBC and Samba didn’t immediately respond to requests for comment.
Sunday, 22 November 2020
#AbuDhabi Plans $122 Billion in Oil Spending to Boost Output - Bloomberg
Abu Dhabi Plans $122 Billion in Oil Spending to Boost Output - Bloomberg
Abu Dhabi will invest 448 billion dirhams ($122 billion) in oil and natural gas over the next five years as it seeks to raise production capacity, even while OPEC restricts its output.
The Gulf emirate’s top body for energy policy, the Supreme Petroleum Council, approved the budget for Abu Dhabi National Oil Co., the state-run WAM news agency reported on Sunday. The investment plan will contribute to growth and expansion “in all business areas,” including production, refining and trading, according to the statement.
Abu Dhabi, which already holds most of the crude oil in the United Arab Emirates, has discovered an additional 2 billion barrels at conventional fields, bringing the UAE’s total reserves of recoverable oil to 107 billion, WAM reported. The emirate has also found an extra 22 billion barrels of unconventional oil, which is harder to extract and may not all be recoverable.
Abu Dhabi will invest 448 billion dirhams ($122 billion) in oil and natural gas over the next five years as it seeks to raise production capacity, even while OPEC restricts its output.
The Gulf emirate’s top body for energy policy, the Supreme Petroleum Council, approved the budget for Abu Dhabi National Oil Co., the state-run WAM news agency reported on Sunday. The investment plan will contribute to growth and expansion “in all business areas,” including production, refining and trading, according to the statement.
Abu Dhabi, which already holds most of the crude oil in the United Arab Emirates, has discovered an additional 2 billion barrels at conventional fields, bringing the UAE’s total reserves of recoverable oil to 107 billion, WAM reported. The emirate has also found an extra 22 billion barrels of unconventional oil, which is harder to extract and may not all be recoverable.
#Qatar leads most Gulf markets higher; Egypt falls | Reuters
Qatar leads most Gulf markets higher; Egypt falls | Reuters
Most stock markets in the Middle East ended higher on Sunday, with Qatar’s index leading the gains on a rise in financial shares, while Egypt closed lower.
Financial markets globally have been buoyed over the past two weeks by U.S. drugmakers Pfizer and Moderna Inc releasing encouraging news on the effectiveness of their vaccine candidates against the coronavirus.
Saudi Arabia’s benchmark index added 0.1%, with Dr Sulaiman Al-Habib Medical Services leaping 5.1% and real estate firm Jabal Omar Development adding 2.2%.
On Thursday, the acting information minister said the kingdom could review its VAT increase, which his driven up inflation, after the novel coronavirus pandemic comes to an end. That could spur an economic recovery.
Saudi Arabia tripled its value-added tax to 15% in July to offset the impact of lower oil revenue on state finances.
Dubai’s main share index rose 0.4%, supported by a 0.9% gain in sharia-compliant lender Dubai Islamic Bank and a 1% increase in blue-chip developer Emaar Properties.
The Abu Dhabi index closed 0.4% higher, buoyed by a 1.9% rise in the United Arab Emirates’ largest lender First Abu Dhabi Bank.
In Qatar, the index advanced 0.9%, with the Gulf’s largest lender Qatar National Bank jumping 4.4% and petrochemical firm Industries Qatar up 1.5%.
Outside the Gulf, Egypt’s blue-chip index eased 0.4%, hurt by a 0.6% fall in Commercial International Bank.
Most stock markets in the Middle East ended higher on Sunday, with Qatar’s index leading the gains on a rise in financial shares, while Egypt closed lower.
Financial markets globally have been buoyed over the past two weeks by U.S. drugmakers Pfizer and Moderna Inc releasing encouraging news on the effectiveness of their vaccine candidates against the coronavirus.
Saudi Arabia’s benchmark index added 0.1%, with Dr Sulaiman Al-Habib Medical Services leaping 5.1% and real estate firm Jabal Omar Development adding 2.2%.
On Thursday, the acting information minister said the kingdom could review its VAT increase, which his driven up inflation, after the novel coronavirus pandemic comes to an end. That could spur an economic recovery.
Saudi Arabia tripled its value-added tax to 15% in July to offset the impact of lower oil revenue on state finances.
Dubai’s main share index rose 0.4%, supported by a 0.9% gain in sharia-compliant lender Dubai Islamic Bank and a 1% increase in blue-chip developer Emaar Properties.
The Abu Dhabi index closed 0.4% higher, buoyed by a 1.9% rise in the United Arab Emirates’ largest lender First Abu Dhabi Bank.
In Qatar, the index advanced 0.9%, with the Gulf’s largest lender Qatar National Bank jumping 4.4% and petrochemical firm Industries Qatar up 1.5%.
Outside the Gulf, Egypt’s blue-chip index eased 0.4%, hurt by a 0.6% fall in Commercial International Bank.
#Qatar Third-Quarter Exports Drop 36% on Lower Energy Sale - Bloomberg
Qatar Third-Quarter Exports Drop 36% on Lower Energy Sale - Bloomberg
Qatar, the world’s biggest shipper of liquefied natural gas, posted a 36% drop in third-quarter exports as the coronavirus pandemic weighed on the sale of energy products.
Exports declined to 41.1 billion riyals ($11.1 billion) from 63.7 billion riyals a year ago, according to a statement from the Planning and Statistics Authority. It was “mainly due to lower exports of mineral fuels, lubricants and related materials.”
The nation’s imports decreased 16% to 21.5 billion riyals in the third quarter.
Qatar, the world’s biggest shipper of liquefied natural gas, posted a 36% drop in third-quarter exports as the coronavirus pandemic weighed on the sale of energy products.
Exports declined to 41.1 billion riyals ($11.1 billion) from 63.7 billion riyals a year ago, according to a statement from the Planning and Statistics Authority. It was “mainly due to lower exports of mineral fuels, lubricants and related materials.”
The nation’s imports decreased 16% to 21.5 billion riyals in the third quarter.
#UAE banks' profits deteriorate; bad loans likely to go up | ZAWYA MENA Edition
UAE banks' profits deteriorate; bad loans likely to go up | ZAWYA MENA Edition
Profits of UAE’s top banks continued to deteriorate in the second quarter of the year as interest rates and credit uptake remained low and bad loans grew amid challenging economic conditions.
Total interest income of the ten largest banks in the country continued to fall for the third consecutive time by 7.7 percent quarter over quarter, while net income dropped by 3 percent due to lower interest and other operating income, according to Alvarez & Marsal, a global professional services firm.
“Challenging macroeconomic conditions, low oil prices and effects of COVID-19 have severely impacted overall asset quality and resulted in higher non-performing loan (NPL) reporting, at 3.6 percent quarter over quarter increase,” the firm said.
“The challenging economic environment impacted credit uptake as [loans and advances] remained flat in Q3 2020 compared to Q2 2020,” the firm added.
It also warned that the country’s lenders may have to brace for further increases in bad loans, particularly after the payment deferral relief for borrowers is lifted.
Profits of UAE’s top banks continued to deteriorate in the second quarter of the year as interest rates and credit uptake remained low and bad loans grew amid challenging economic conditions.
Total interest income of the ten largest banks in the country continued to fall for the third consecutive time by 7.7 percent quarter over quarter, while net income dropped by 3 percent due to lower interest and other operating income, according to Alvarez & Marsal, a global professional services firm.
“Challenging macroeconomic conditions, low oil prices and effects of COVID-19 have severely impacted overall asset quality and resulted in higher non-performing loan (NPL) reporting, at 3.6 percent quarter over quarter increase,” the firm said.
“The challenging economic environment impacted credit uptake as [loans and advances] remained flat in Q3 2020 compared to Q2 2020,” the firm added.
It also warned that the country’s lenders may have to brace for further increases in bad loans, particularly after the payment deferral relief for borrowers is lifted.
World Cup Host #Qatar Tries to Build Its Way Out of Covid - Bloomberg
World Cup Host Qatar Tries to Build Its Way Out of Covid - Bloomberg
It’s pretty much business as normal at Lusail, a half-built metropolis north of Doha’s main corniche. At least 20 cranes dot the dusty skyline as a dozen workers toil on the roof of a hotel site overlooking a new artificial island. Trucks ply around a giant mound of sand.
If the coronavirus, global economic squeeze and the future of hydrocarbons are raising questions about the viability of projects across the Gulf, you’d never know it from the scene in Qatar.
With two years to go before the tiny peninsula hosts the soccer World Cup, one of the richest countries on the planet per capita is doing what it knows best: spending its vast wealth from exporting natural gas on the latest stage of Doha’s transformation into a global business and transit hub that’s meant to rival regional neighbors Dubai and Abu Dhabi.
Yet the question many foreign residents and Qataris are increasingly asking is whether it’s a model from a now bygone era. The concern, like in much of the Gulf, is that the vaunted economic diversification mainly rests on heavily subsidized real estate development, and it’s not clear what—or who—will be left when sports fans have departed and stadiums have been dismantled.
It’s pretty much business as normal at Lusail, a half-built metropolis north of Doha’s main corniche. At least 20 cranes dot the dusty skyline as a dozen workers toil on the roof of a hotel site overlooking a new artificial island. Trucks ply around a giant mound of sand.
If the coronavirus, global economic squeeze and the future of hydrocarbons are raising questions about the viability of projects across the Gulf, you’d never know it from the scene in Qatar.
With two years to go before the tiny peninsula hosts the soccer World Cup, one of the richest countries on the planet per capita is doing what it knows best: spending its vast wealth from exporting natural gas on the latest stage of Doha’s transformation into a global business and transit hub that’s meant to rival regional neighbors Dubai and Abu Dhabi.
Yet the question many foreign residents and Qataris are increasingly asking is whether it’s a model from a now bygone era. The concern, like in much of the Gulf, is that the vaunted economic diversification mainly rests on heavily subsidized real estate development, and it’s not clear what—or who—will be left when sports fans have departed and stadiums have been dismantled.
Could the #UAE Prompt OPEC's House of Cards to Collapse? - Bloomberg
Could the UAE Prompt OPEC's House of Cards to Collapse? - Bloomberg
All is not well in the house of OPEC.
As the cartel’s oil ministers prepare to meet in just over a week to decide on the next step in their record-breaking output deal, officials in the United Arab Emirates, normally a loyal Saudi ally, are privately questioning the benefits of participating, and may even be considering whether to leave the Organization of Petroleum Exporting Counties.
The deliberations, leaked to the press on Wednesday, may be nothing more than an attempt to get the producer group to review the Persian Gulf country’s quota. If so, it seems unlikely to succeed. Worse, it risks throwing a wrench into the discussions over how producers should respond to the conflicting pressures from positive vaccine news and the negative impact of renewed coronavirus lockdown restrictions on travel and economic activity.
Questions about the UAE’s future in OPEC, even if they are only preliminary internal deliberations, come at an awkward time for the group and its OPEC+ allies. Tensions are emerging over what to do about output targets, which are set to be eased from the beginning of next year.
The answer seems obvious. Covid-19 vaccines are unlikely to affect oil demand any time soon and stockpiles remain high. Meanwhile, Libya, an OPEC member emerging from civil war, has added about 1 million barrels a day to supply in a matter of weeks. As a result, the OPEC+ alliance is expected to extend the current output cuts for another three to six months.
But there’s a spanner in the works: Not everyone is respecting their commitments. So the UAE, already chafing at the restrictions, says there shouldn’t be any decision until all members have fully implemented their agreed cuts.
All is not well in the house of OPEC.
As the cartel’s oil ministers prepare to meet in just over a week to decide on the next step in their record-breaking output deal, officials in the United Arab Emirates, normally a loyal Saudi ally, are privately questioning the benefits of participating, and may even be considering whether to leave the Organization of Petroleum Exporting Counties.
The deliberations, leaked to the press on Wednesday, may be nothing more than an attempt to get the producer group to review the Persian Gulf country’s quota. If so, it seems unlikely to succeed. Worse, it risks throwing a wrench into the discussions over how producers should respond to the conflicting pressures from positive vaccine news and the negative impact of renewed coronavirus lockdown restrictions on travel and economic activity.
Questions about the UAE’s future in OPEC, even if they are only preliminary internal deliberations, come at an awkward time for the group and its OPEC+ allies. Tensions are emerging over what to do about output targets, which are set to be eased from the beginning of next year.
The answer seems obvious. Covid-19 vaccines are unlikely to affect oil demand any time soon and stockpiles remain high. Meanwhile, Libya, an OPEC member emerging from civil war, has added about 1 million barrels a day to supply in a matter of weeks. As a result, the OPEC+ alliance is expected to extend the current output cuts for another three to six months.
But there’s a spanner in the works: Not everyone is respecting their commitments. So the UAE, already chafing at the restrictions, says there shouldn’t be any decision until all members have fully implemented their agreed cuts.
#SaudiArabia's Sulaiman Al Habib Medical Group enters MSCI Global Standard Index | ZAWYA MENA Edition
Saudi Arabia's Sulaiman Al Habib Medical Group enters MSCI Global Standard Index | ZAWYA MENA Edition
Saudi Arabia’s largest private medical services provider, Dr. Sulaiman Al Habib Medical Group (HMG), will be included as a constituent of the MSCI Global Standard Index, effective 30 November 2020, according to the MSCI semi-annual Index Review.
MSCI is the world’s provider of research-based indexes that cover securities from different countries and across cap sizes. The indices are a benchmark in global equity markets and are constituent stocks are selected based on criteria including market capitalisation, liquidity, free float and performance.
Dr. Sulaiman Al Habib Medical Group operates hospitals, outpatient clinics, pharmacies and medical labs throughout the kingdom as well as in Dubai and Bahrain. The group raised $700.9 million (main market) by issuing 15 per cent of its shares in February.
Nasser Al Haqbani, CEO at HMG, said: "The inclusion of HMG in the MSCI Global Standard Index is a reflection of both the resonance and impact of our post-IPO growth strategy, which we have delivered in spite of market headwinds. Our business has proved highly agile in addressing the challenges of the global pandemic, and we are very pleased to have become a constituent of the globally recognised benchmark."
Saudi Arabia’s largest private medical services provider, Dr. Sulaiman Al Habib Medical Group (HMG), will be included as a constituent of the MSCI Global Standard Index, effective 30 November 2020, according to the MSCI semi-annual Index Review.
MSCI is the world’s provider of research-based indexes that cover securities from different countries and across cap sizes. The indices are a benchmark in global equity markets and are constituent stocks are selected based on criteria including market capitalisation, liquidity, free float and performance.
Dr. Sulaiman Al Habib Medical Group operates hospitals, outpatient clinics, pharmacies and medical labs throughout the kingdom as well as in Dubai and Bahrain. The group raised $700.9 million (main market) by issuing 15 per cent of its shares in February.
Nasser Al Haqbani, CEO at HMG, said: "The inclusion of HMG in the MSCI Global Standard Index is a reflection of both the resonance and impact of our post-IPO growth strategy, which we have delivered in spite of market headwinds. Our business has proved highly agile in addressing the challenges of the global pandemic, and we are very pleased to have become a constituent of the globally recognised benchmark."
#Saudi index leads way among little-changed Gulf markets | Reuters
Saudi index leads way among little-changed Gulf markets | Reuters
Major stock markets in the Gulf were little changed on Sunday, though financial shares bolstered the Saudi index.
Financial markets globally have been buoyed over the past two weeks by U.S. drugmakers Pfizer and Moderna Inc releasing encouraging news on the effectiveness of their vaccines against the coronavirus.
Saudi Arabia’s benchmark index gained 0.5%, led by a 0.3% rise for Al Rajhi Bank and 1.1% increase for Saudi Telecom Company.
Dubai’s main index eased 0.1, with Emaar Malls losing 2.2% and DAMAC Properties shedding 2.7%.
The Abu Dhabi index edged up 0.1%, helped by a 0.7% gain for Aldar Properties and a 0.1% increase for telecoms firm Etisalat.
Qatar’s benchmark index traded flat.
Major stock markets in the Gulf were little changed on Sunday, though financial shares bolstered the Saudi index.
Financial markets globally have been buoyed over the past two weeks by U.S. drugmakers Pfizer and Moderna Inc releasing encouraging news on the effectiveness of their vaccines against the coronavirus.
Saudi Arabia’s benchmark index gained 0.5%, led by a 0.3% rise for Al Rajhi Bank and 1.1% increase for Saudi Telecom Company.
Dubai’s main index eased 0.1, with Emaar Malls losing 2.2% and DAMAC Properties shedding 2.7%.
The Abu Dhabi index edged up 0.1%, helped by a 0.7% gain for Aldar Properties and a 0.1% increase for telecoms firm Etisalat.
Qatar’s benchmark index traded flat.