Saudi Wealth Fund Put 2008 Crisis Lesson to Use This Time Around - Bloomberg
Having lost out on buying stocks on the cheap during the global financial crisis, Saudi Arabia’s sovereign wealth fund wasn’t going to make the same mistake twice. So, when the coronavirus pandemic sent markets into a tailspin, it was all geared up.
“The crown prince always talked about how we missed an opportunity in 2008 to invest in international markets, so we were ready,” Yasir Al Rumayyan, governor of the nation’s Public Investment Fund, said in a televised interview. The two had “talked about the things that we should do if we face something like this.”
The fund received a $40 billion transfer from the nation’s reserves in March so it could take advantage of the crash in markets, buying stakes in companies including Citigroup Inc., Facebook Inc. and cruise-ship operator Carnival Corp. By the end of June it had sold most of those stakes and switched to holding about $7 billion in exchange traded funds.
“When the coronavirus emerged, we didn’t only look at the U.S. markets, we looked at all international markets,” Al Rumayyan said. “We entered some U.S., European and Asian markets. We stayed in some, and we left some.”
Thursday, 17 December 2020
Sovereign assets of #AbuDhabi, #Kuwait, #Qatar help weather COVID-19, oil shock | ZAWYA MENA Edition
Sovereign assets of Abu Dhabi, Kuwait, Qatar help weather COVID-19, oil shock | ZAWYA MENA Edition
The sovereign wealth funds (SWFs) of Abu Dhabi, Kuwait and Qatar have underpinned the resilience of their sovereign ratings despite lower oil prices and the coronavirus shock, Fitch Ratings said.
The SWF assets of these countries could even increase in 2020 due to supportive market returns, despite governments using SWFs' foreign assets and other deposits to cover government funding needs in 2020.
The uplift to ratings from SWF assets has been stable or increasing despite materially larger fiscal and external deficits in 2020.
According to the global ratings agency, SWF assets in Abu Dhabi, the UAE, Kuwait and Qatar provide two to six notches of uplift to sovereign ratings by boosting sovereign net external asset positions, fiscal balances, and overall financing flexibility.
Estimated gross sovereign external assets of these countries are sufficient to cover five to eight years of total government spending and six to eight years of non-oil deficits.
The sovereign wealth funds (SWFs) of Abu Dhabi, Kuwait and Qatar have underpinned the resilience of their sovereign ratings despite lower oil prices and the coronavirus shock, Fitch Ratings said.
The SWF assets of these countries could even increase in 2020 due to supportive market returns, despite governments using SWFs' foreign assets and other deposits to cover government funding needs in 2020.
The uplift to ratings from SWF assets has been stable or increasing despite materially larger fiscal and external deficits in 2020.
According to the global ratings agency, SWF assets in Abu Dhabi, the UAE, Kuwait and Qatar provide two to six notches of uplift to sovereign ratings by boosting sovereign net external asset positions, fiscal balances, and overall financing flexibility.
Estimated gross sovereign external assets of these countries are sufficient to cover five to eight years of total government spending and six to eight years of non-oil deficits.
Oil prices rise, hit 9-month high on U.S. stimulus progress | Reuters
Oil prices rise, hit 9-month high on U.S. stimulus progress | Reuters
Oil climbed on Thursday and touched a nine-month high, with traders optimistic about progress toward a U.S. fiscal stimulus deal and record-breaking refining demand in China and India.
U.S. lawmakers edged closer to agreement on a $900 billion virus-relief spending package on Wednesday.
The U.S. dollar set a 2-1/2 year low against major rivals on Thursday. Since crude is priced in greenbacks, this made oil cheaper for buyers holding other currencies.
Brent crude futures settled up 42 cents at $51.50 a barrel, and touched a session high of $51.90.
U.S. West Texas Intermediate (WTI) crude futures rose by 54 cents to $48.36 a barrel, with a session high of $48.59. Both benchmarks hit their highest since early March.
“Asia was ahead of the curve in recovery mode from the Coronavirus,” said Phil Flynn, senior analyst at Price Futures in Chicago. “Looking at what we’re seeing in Asia is raising expectations that in the New Year we will see a rapid increase in crude oil demand, as the vaccine rolls out in the U.S.,” he said.
The U.S. dollar set a 2-1/2 year low against major rivals on Thursday. Since crude is priced in greenbacks, this made oil cheaper for buyers holding other currencies.
Brent crude futures settled up 42 cents at $51.50 a barrel, and touched a session high of $51.90.
U.S. West Texas Intermediate (WTI) crude futures rose by 54 cents to $48.36 a barrel, with a session high of $48.59. Both benchmarks hit their highest since early March.
“Asia was ahead of the curve in recovery mode from the Coronavirus,” said Phil Flynn, senior analyst at Price Futures in Chicago. “Looking at what we’re seeing in Asia is raising expectations that in the New Year we will see a rapid increase in crude oil demand, as the vaccine rolls out in the U.S.,” he said.
#Qatar News: BeIN to Pay $500 Million in Renewed Premier League Deal - Bloomberg
Qatar News: BeIN to Pay $500 Million in Renewed Premier League Deal - Bloomberg
Qatar’s BeIN Sports has agreed to pay about $500 million for the right to broadcast live Premier League soccer games across the Middle East, according to a person familiar with the matter.
BeIN and the Premier League announced a new three-year contract running until 2025 in a joint statement Thursday, without disclosing financial details. It renews an existing agreement and allows BeIN to show matches in 24 markets spanning the Middle East and North Africa.
At $500 million, the value of the new deal is similar to the previous one, the person said, asking not to be identified discussing confidential information. Representatives for BeIN and the Premier League declined to comment on the value.
“Our clubs have millions of passionate fans across the Middle East and North Africa and BeIN has played an important part in promoting the Premier League and helping engage those fans with our clubs and players,” Premier League Chief Executive Richard Masters said in Thursday’s statement.
Qatar’s BeIN Sports has agreed to pay about $500 million for the right to broadcast live Premier League soccer games across the Middle East, according to a person familiar with the matter.
BeIN and the Premier League announced a new three-year contract running until 2025 in a joint statement Thursday, without disclosing financial details. It renews an existing agreement and allows BeIN to show matches in 24 markets spanning the Middle East and North Africa.
At $500 million, the value of the new deal is similar to the previous one, the person said, asking not to be identified discussing confidential information. Representatives for BeIN and the Premier League declined to comment on the value.
“Our clubs have millions of passionate fans across the Middle East and North Africa and BeIN has played an important part in promoting the Premier League and helping engage those fans with our clubs and players,” Premier League Chief Executive Richard Masters said in Thursday’s statement.
#AbuDhabi’s IHC to List Three of Its Units Starting Next Week - Bloomberg
Abu Dhabi’s IHC to List Three of Its Units Starting Next Week - Bloomberg
The fourth biggest company by market capitalization in the United Arab Emirates will list three of its units on the stock exchange in its home market.
International Holdings Company PJSC, which has a value of about $20 billion, will list Palms Sports, Zee Stores and Ease Lease on the second market of the Abu Dhabi Securities Exchange next week, according to a statement Thursday.
IHC expanded its portfolio rapidly in the past few years through a flurry of mergers and acquisitions, currently holding majority stakes in companies ranging from real estate to utilities and health care to food services. Its shares have soared more than 550% in 2020. They were up 0.3% as of 13:12 p.m. in the UAE on Thursday.
The fourth biggest company by market capitalization in the United Arab Emirates will list three of its units on the stock exchange in its home market.
International Holdings Company PJSC, which has a value of about $20 billion, will list Palms Sports, Zee Stores and Ease Lease on the second market of the Abu Dhabi Securities Exchange next week, according to a statement Thursday.
IHC expanded its portfolio rapidly in the past few years through a flurry of mergers and acquisitions, currently holding majority stakes in companies ranging from real estate to utilities and health care to food services. Its shares have soared more than 550% in 2020. They were up 0.3% as of 13:12 p.m. in the UAE on Thursday.
'There is hardly any gas': LNG price rally exacerbates gas crunch in Asia | Reuters
'There is hardly any gas': LNG price rally exacerbates gas crunch in Asia | Reuters
Surging spot prices for liquefied natural gas (LNG) are exacerbating a gas supply crunch in key fast-growing emerging markets in Asia just as a cold spell in other parts of the region boosts demand for the fuel.
Companies from Pakistan to China have cancelled a flurry of LNG tenders this week, several trade sources said, as lofty prices risk pushing up the input costs of industries, which could make energy more expensive for consumers.
Benchmark Asia spot LNG prices LNG-AS have soared sevenfold since May to six-year highs, driven by production losses in Australia, Malaysia, Norway and Qatar combined with accelerating use in China, India and elsewhere.
“Buyers with no alternatives are now paying top-dollar for prompt cargoes in January,” said Chong Zhi Xin, a director at consultancy IHS Markit.
Surging spot prices for liquefied natural gas (LNG) are exacerbating a gas supply crunch in key fast-growing emerging markets in Asia just as a cold spell in other parts of the region boosts demand for the fuel.
Companies from Pakistan to China have cancelled a flurry of LNG tenders this week, several trade sources said, as lofty prices risk pushing up the input costs of industries, which could make energy more expensive for consumers.
Benchmark Asia spot LNG prices LNG-AS have soared sevenfold since May to six-year highs, driven by production losses in Australia, Malaysia, Norway and Qatar combined with accelerating use in China, India and elsewhere.
“Buyers with no alternatives are now paying top-dollar for prompt cargoes in January,” said Chong Zhi Xin, a director at consultancy IHS Markit.
#Kuwait signs deal with Greece's DESFA for liquefied gas import terminal - report | Reuters
Kuwait signs deal with Greece's DESFA for liquefied gas import terminal - report | Reuters
Kuwait has signed a six-year, $106 million contract with Greek gas grid operator DESFA for the group to operate a liquefied natural gas import terminal in the Gulf emirate, the state-run news agency KUNA reported on Thursday.
The LNG terminal, in the al-Zour area, will go into operation next year, the agency said, citing an official from state-owned Kuwait Integrated Petroleum Industries Company, which signed the deal.
Kuwait has signed a six-year, $106 million contract with Greek gas grid operator DESFA for the group to operate a liquefied natural gas import terminal in the Gulf emirate, the state-run news agency KUNA reported on Thursday.
The LNG terminal, in the al-Zour area, will go into operation next year, the agency said, citing an official from state-owned Kuwait Integrated Petroleum Industries Company, which signed the deal.
Natixis sees more deals coming from Gulf states monetising oil assets | Reuters
Natixis sees more deals coming from Gulf states monetising oil assets | Reuters
Natixis expects oil-rich Gulf states to accelerate privatisations, including by extracting revenue from oil assets, with Saudi Arabia and possibly Oman as likely candidates for similar deals next year, the French bank’s regional head said.
Lower oil prices as well as output cuts after the coronavirus crisis curbed demand for crude have weighed on Middle East oil exporters this year, leading them to explore new financing sources to cover wider funding needs.
Abu Dhabi’s oil giant, Abu Dhabi National Oil Company (ADNOC) raised $10 billion this year by selling a stake in its gas pipeline assets to a consortium of investors under a long-term lease agreement. Those investors raised debt through a bridge loan and bonds to back the acquisition.
“Finally clients are moving away from long-term project financing and moving to hard mini-perm loans with a take-out from project bonds which is proving extremely successful because it attracts a wider pool of liquidity,” said Barbara Riccardi, regional head for the Middle East corporate and investment banking business.
Natixis expects oil-rich Gulf states to accelerate privatisations, including by extracting revenue from oil assets, with Saudi Arabia and possibly Oman as likely candidates for similar deals next year, the French bank’s regional head said.
Lower oil prices as well as output cuts after the coronavirus crisis curbed demand for crude have weighed on Middle East oil exporters this year, leading them to explore new financing sources to cover wider funding needs.
Abu Dhabi’s oil giant, Abu Dhabi National Oil Company (ADNOC) raised $10 billion this year by selling a stake in its gas pipeline assets to a consortium of investors under a long-term lease agreement. Those investors raised debt through a bridge loan and bonds to back the acquisition.
“Finally clients are moving away from long-term project financing and moving to hard mini-perm loans with a take-out from project bonds which is proving extremely successful because it attracts a wider pool of liquidity,” said Barbara Riccardi, regional head for the Middle East corporate and investment banking business.
Scandal-Hit Finablr Sold for $1 to Israeli- #UAE Consortium - Bloomberg
Scandal-Hit Finablr Sold for $1 to Israeli-UAE Consortium - Bloomberg
Finablr Plc is selling its business to an Israeli-UAE consortium for $1, capping the collapse of a business that had a market value of 1.5 billion pounds ($2 billion) last December.
An affiliate of Prism Group AG and Abu Dhabi’s Royal Strategic Partners will pay the nominal consideration and provide working capital to the business and operations of the financial services company, according to a statement Thursday. Its foreign-exchange businesses and payment-technology operations include one of the UAE’s largest foreign currency firms, UAE Exchange.
The takeover helps draw a line under a major accounting scandal that caused the collapse of two UAE firms this year. Finablr revealed in April about $1 billion of debt hidden from its board that may have been used for purposes outside the company, compounding a scandal that pushed its sister firm NMC Health Plc into administration. When Finablr faced potential insolvency, the UAE’s central bank stepped in and oversaw the operations of UAE Exchange, which serves a key role in helping foreign workers send money home.
The consortium could end up paying more -- as much as $190 million -- if they succeed in recovering funds from third parties that relate to the fraud, according to the statement.
An affiliate of Prism Group AG and Abu Dhabi’s Royal Strategic Partners will pay the nominal consideration and provide working capital to the business and operations of the financial services company, according to a statement Thursday. Its foreign-exchange businesses and payment-technology operations include one of the UAE’s largest foreign currency firms, UAE Exchange.
The takeover helps draw a line under a major accounting scandal that caused the collapse of two UAE firms this year. Finablr revealed in April about $1 billion of debt hidden from its board that may have been used for purposes outside the company, compounding a scandal that pushed its sister firm NMC Health Plc into administration. When Finablr faced potential insolvency, the UAE’s central bank stepped in and oversaw the operations of UAE Exchange, which serves a key role in helping foreign workers send money home.
The consortium could end up paying more -- as much as $190 million -- if they succeed in recovering funds from third parties that relate to the fraud, according to the statement.
Morgan Stanley, Nomura Say It’s Time to Bet on #Dubai Tourism - Bloomberg
Morgan Stanley, Nomura Say It’s Time to Bet on Dubai Tourism - Bloomberg
Morgan Stanley and Nomura Holdings Inc. say it’s time to bet on a rebound in Dubai’s tourism industry as 200,000 travelers fly in to the desert city for the Christmas and New Year holidays.
The rollout of Covid-19 vaccines, a thaw in relations with Israel and Qatar, and the rescheduled Expo 2020 exhibition will benefit the Gulf Arab emirate, the strategists say.
The travel rebound and Expo in October will bring a “better-than-expected impact on growth and profits,” said Tarek Fadlallah, the chief executive officer of Nomura Asset Management’s Middle Eastern unit. Katherine Carpenter, a London-based equity analyst at Morgan Stanley, predicted a “bumper winter tourism season,” in 2021, as well as a “small but incremental boost” from an easing of regional tensions.
Built on trade and tourism in a region reliant on oil, Dubai was hardest hit in the Gulf Arab region as both industries stumbled amid the pandemic. The emirate reopened its doors to international travelers in July, but tourist traffic is only picking up now. S&P Global Ratings sees the economy contracting almost 11% in 2020.
The rollout of Covid-19 vaccines, a thaw in relations with Israel and Qatar, and the rescheduled Expo 2020 exhibition will benefit the Gulf Arab emirate, the strategists say.
The travel rebound and Expo in October will bring a “better-than-expected impact on growth and profits,” said Tarek Fadlallah, the chief executive officer of Nomura Asset Management’s Middle Eastern unit. Katherine Carpenter, a London-based equity analyst at Morgan Stanley, predicted a “bumper winter tourism season,” in 2021, as well as a “small but incremental boost” from an easing of regional tensions.
#AbuDhabi Oil Giant Mulls Stake in Egypt’s First Army Firm Offer - Bloomberg
Abu Dhabi Oil Giant Mulls Stake in Egypt’s First Army Firm Offer - Bloomberg
Abu Dhabi National Oil Co. is among suitors interested in a majority stake in one of the first Egyptian army-held companies being offered to investors, according to people familiar with the matter.
Under the proposal, Adnoc would partner with Egypt’s sovereign wealth fund, giving the two full ownership of Wataniya Petroleum, a fuel distribution firm currently affiliated to Egypt’s military, the people said.
Taqa Arabia Co., a private Egyptian energy distribution company, has also expressed interest in the majority stake and partnering with the fund, according to the people. They asked not to be identified because the talks are confidential.
The chief executive officer of the wealth fund, Ayman Soliman, said Wataniya has “attracted a lot of investors,” but declined to identify them. Adnoc which is owned by Abu Dhabi’s government, declined to comment, while officials in Taqa couldn’t be reached for comment.
Abu Dhabi National Oil Co. is among suitors interested in a majority stake in one of the first Egyptian army-held companies being offered to investors, according to people familiar with the matter.
Under the proposal, Adnoc would partner with Egypt’s sovereign wealth fund, giving the two full ownership of Wataniya Petroleum, a fuel distribution firm currently affiliated to Egypt’s military, the people said.
Taqa Arabia Co., a private Egyptian energy distribution company, has also expressed interest in the majority stake and partnering with the fund, according to the people. They asked not to be identified because the talks are confidential.
The chief executive officer of the wealth fund, Ayman Soliman, said Wataniya has “attracted a lot of investors,” but declined to identify them. Adnoc which is owned by Abu Dhabi’s government, declined to comment, while officials in Taqa couldn’t be reached for comment.
#Dubai State Holding Firm Posts $3.1 Billion Loss as Virus Weighs - Bloomberg
Dubai State Holding Firm Posts $3.1 Billion Loss as Virus Weighs - Bloomberg
Investment Corp. of Dubai, the main state-controlled holding firm of the emirate, reported a loss in the first half as the coronavirus pandemic weighed on earnings at its portfolio companies.
The firm posted a loss of 11.4 billion dirhams ($3.1 billion) after a profit of 6.86 billion dirhams a year earlier, according to a statement.
Investment Corp. of Dubai owns Emirates airline, which has seen bookings slump as demand for travel cratered. It also has holdings in banks, including Emirates NBD and Dubai Islamic Bank, as well as Emaar Properties.
Investment Corp. of Dubai, the main state-controlled holding firm of the emirate, reported a loss in the first half as the coronavirus pandemic weighed on earnings at its portfolio companies.
The firm posted a loss of 11.4 billion dirhams ($3.1 billion) after a profit of 6.86 billion dirhams a year earlier, according to a statement.
Investment Corp. of Dubai owns Emirates airline, which has seen bookings slump as demand for travel cratered. It also has holdings in banks, including Emirates NBD and Dubai Islamic Bank, as well as Emaar Properties.
#Dubai's Arabtec starts process for insolvent liquidation | ZAWYA MENA Edition
Dubai's Arabtec starts process for insolvent liquidation | ZAWYA MENA Edition
Dubai builder Arabtec has started the liquidation process that will see the construction firm cease operations after several decades in the industry.
In a bourse filing on Thursday, the builder of the world's tallest tower Burj Khalifa, confirmed it has filed for insolvent liquidation.
The move is pursuant to the shareholder resolutions passed last September 30 and November 30, 2020.
In September, the shareholders agreed to discontinue the contractor's operations due to its untenable financial position and authorised the board to file for a liquidation. Last month, the company asked the shareholders to reverse its decision.
The company terminated thousands of its workers weeks after the liquidation plans were made public.
Dubai builder Arabtec has started the liquidation process that will see the construction firm cease operations after several decades in the industry.
In a bourse filing on Thursday, the builder of the world's tallest tower Burj Khalifa, confirmed it has filed for insolvent liquidation.
The move is pursuant to the shareholder resolutions passed last September 30 and November 30, 2020.
In September, the shareholders agreed to discontinue the contractor's operations due to its untenable financial position and authorised the board to file for a liquidation. Last month, the company asked the shareholders to reverse its decision.
The company terminated thousands of its workers weeks after the liquidation plans were made public.
#Saudi economy shrinks 4.6% in third-quarter as oil sector takes a hit | Reuters
Saudi economy shrinks 4.6% in third-quarter as oil sector takes a hit | Reuters
Saudi Arabia’s economy shrank more slowly in the third quarter as the government eased some coronavirus restrictions but the pandemic-hit oil sector continued to weigh on the broader economy, official data showed on Thursday.
The economy shrank 4.6% in the third quarter, rebounding slightly from the 7% slump in the previous quarter but marked by declines in both the oil and non-oil sectors, the data showed.
Saudi Arabia is facing its worst economic decline in decades after the COVID-19 pandemic curbed global crude demand and measures to contain it also hurt other sectors.
The world’s largest oil exporter said on Tuesday it expects the economy to shrink by 3.7% this year but to swing back to growth of 3.2% next year.
“This negative growth originated mainly from the contraction in the oil sector by 8.2% and a negative growth rate of 2.1% recorded in the non-oil sector,” the General Authority for Statistics said on Thursday about the third quarter data.
The private sector, the main focus in Crown Prince Mohammed bin Salman’s plans to diversify the economy away from oil, shrank by 3.1%, while the government sector grew by 0.5%.
Saudi Arabia’s economy shrank more slowly in the third quarter as the government eased some coronavirus restrictions but the pandemic-hit oil sector continued to weigh on the broader economy, official data showed on Thursday.
The economy shrank 4.6% in the third quarter, rebounding slightly from the 7% slump in the previous quarter but marked by declines in both the oil and non-oil sectors, the data showed.
Saudi Arabia is facing its worst economic decline in decades after the COVID-19 pandemic curbed global crude demand and measures to contain it also hurt other sectors.
The world’s largest oil exporter said on Tuesday it expects the economy to shrink by 3.7% this year but to swing back to growth of 3.2% next year.
“This negative growth originated mainly from the contraction in the oil sector by 8.2% and a negative growth rate of 2.1% recorded in the non-oil sector,” the General Authority for Statistics said on Thursday about the third quarter data.
The private sector, the main focus in Crown Prince Mohammed bin Salman’s plans to diversify the economy away from oil, shrank by 3.1%, while the government sector grew by 0.5%.
Debt to weigh on #Qatar’s ratings, even after GCC detente | ZAWYA MENA Edition
Debt to weigh on Qatar’s ratings, even after GCC detente | ZAWYA MENA Edition
Normalization of relations between Qatar and its neighbors would be credit positive for Qatar, but high public sector debt will remain a drag on the country’s sovereign ratings, says Fitch Ratings.
There have been recent signs of progress towards a resolution of the dispute that began in mid-2017 between Qatar and the ‘Quartet’ (the United Arab Emirates, Saudi Arabia, Bahrain and Egypt) and resulted in the near-complete rupture of trade, financial and diplomatic relations.
The GCC summit on Jan. 5 2021 may reveal the scope of any agreement. Normalization, if it occurs, would be likely to proceed gradually, beginning with bilateral steps between Saudi Arabia and Qatar.
Improved regional relations would bolster prospects for Qatar’s non-oil economy over the medium term, once the impact of the coronavirus pandemic fades.
A resumption of travel links could eventually lift tourism inflows, and greater interest from buyers elsewhere in the region could buoy the local real-estate market.
Normalization of relations between Qatar and its neighbors would be credit positive for Qatar, but high public sector debt will remain a drag on the country’s sovereign ratings, says Fitch Ratings.
There have been recent signs of progress towards a resolution of the dispute that began in mid-2017 between Qatar and the ‘Quartet’ (the United Arab Emirates, Saudi Arabia, Bahrain and Egypt) and resulted in the near-complete rupture of trade, financial and diplomatic relations.
The GCC summit on Jan. 5 2021 may reveal the scope of any agreement. Normalization, if it occurs, would be likely to proceed gradually, beginning with bilateral steps between Saudi Arabia and Qatar.
Improved regional relations would bolster prospects for Qatar’s non-oil economy over the medium term, once the impact of the coronavirus pandemic fades.
A resumption of travel links could eventually lift tourism inflows, and greater interest from buyers elsewhere in the region could buoy the local real-estate market.
Oil prices climb to nine-month high after inventory draw | Reuters
Oil prices climb to nine-month high after inventory draw | Reuters
Oil climbed to a nine-month high on Thursday after government data showed a fall in U.S. crude stockpiles last week, while progress towards a U.S. fiscal stimulus deal and strong Asian demand also buoyed prices.
The U.S. dollar also set a 2-1/2-year low against major rivals on Thursday. Oil prices generally rise when the dollar falls because crude priced in the greenback becomes cheaper for buyers holding other currencies.
Brent crude futures rose 72 cents, or 1.4%, to $51.80 a barrel at 0744 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose by 71 cents, or 1.5%, to $48.53 a barrel. Both benchmarks hit their highest since early March.
“All the headlines have been bullish for oil prices,” said Edward Moya, senior market analyst at OANDA in New York.
Oil climbed to a nine-month high on Thursday after government data showed a fall in U.S. crude stockpiles last week, while progress towards a U.S. fiscal stimulus deal and strong Asian demand also buoyed prices.
The U.S. dollar also set a 2-1/2-year low against major rivals on Thursday. Oil prices generally rise when the dollar falls because crude priced in the greenback becomes cheaper for buyers holding other currencies.
Brent crude futures rose 72 cents, or 1.4%, to $51.80 a barrel at 0744 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose by 71 cents, or 1.5%, to $48.53 a barrel. Both benchmarks hit their highest since early March.
“All the headlines have been bullish for oil prices,” said Edward Moya, senior market analyst at OANDA in New York.
MIDEAST STOCKS-Major Gulf markets flat in early trade, #Dubai extends gains | Nasdaq
MIDEAST STOCKS-Major Gulf markets flat in early trade, Dubai extends gains | Nasdaq
Most major stock markets in the Gulf were little changed in early trade on Thursday, with the Dubai index on track to extend gains for a second straight session.
Saudi Arabia's benchmark index .TASI gained 0.3%, with petrochemical firm Saudi Basic Industries 2010.SE rising 1.6%, while Al Rajhi Bank 1120.SE was up 0.3%.
Oil prices, a key catalyst for the Gulf regions' financial markets, climbed to a nine-month high after government data showed a fall in U.S. crude stockpiles last week, while progress towards a U.S. fiscal stimulus deal and strong Asian demand also buoyed prices. O/R
Brent crude LCOc1 futures rose 72 cents, or 1.4%, to $51.80 a barrel at 0744 GMT.
However, oil giant Saudi Aramco 2222.SE eased 0.3%.
Aramco, whose dividend remains vital to helping Saudi Arabia contain a huge deficit, may have to sell assets and borrow more to fulfil its fiscal role amid uncertainty in oil prices, Reuters reported, citing market specialists.
Though its profits plummeted this year as oil prices tumbled during the COVID-19 pandemic, the company is sticking to a promised $75 billion annual dividend that will go almost entirely to the government.
Dubai's main share index .DFMGI edged up 0.4%, with Dubai Investments DINV.DU and Emirates NBD Bank ENBD.DU rising 2.1% and 0.9%, respectively.
The Abu Dhabi benchmark index .ADI traded flat, with First Abu Dhabi Bank (FAB) FAB.AD gaining 0.2% and telecoms firm Etisalat ETISALAT.AD falling 0.3%.
On Wednesday, FAB, the United Arab Emirates' largest lender, announced opening of its representative office in Jakarta, Indonesia to support MENA-Indonesia trade and investment.
The Qatari index .QSI was also unchanged in early trade.
Most major stock markets in the Gulf were little changed in early trade on Thursday, with the Dubai index on track to extend gains for a second straight session.
Saudi Arabia's benchmark index .TASI gained 0.3%, with petrochemical firm Saudi Basic Industries 2010.SE rising 1.6%, while Al Rajhi Bank 1120.SE was up 0.3%.
Oil prices, a key catalyst for the Gulf regions' financial markets, climbed to a nine-month high after government data showed a fall in U.S. crude stockpiles last week, while progress towards a U.S. fiscal stimulus deal and strong Asian demand also buoyed prices. O/R
Brent crude LCOc1 futures rose 72 cents, or 1.4%, to $51.80 a barrel at 0744 GMT.
However, oil giant Saudi Aramco 2222.SE eased 0.3%.
Aramco, whose dividend remains vital to helping Saudi Arabia contain a huge deficit, may have to sell assets and borrow more to fulfil its fiscal role amid uncertainty in oil prices, Reuters reported, citing market specialists.
Though its profits plummeted this year as oil prices tumbled during the COVID-19 pandemic, the company is sticking to a promised $75 billion annual dividend that will go almost entirely to the government.
Dubai's main share index .DFMGI edged up 0.4%, with Dubai Investments DINV.DU and Emirates NBD Bank ENBD.DU rising 2.1% and 0.9%, respectively.
The Abu Dhabi benchmark index .ADI traded flat, with First Abu Dhabi Bank (FAB) FAB.AD gaining 0.2% and telecoms firm Etisalat ETISALAT.AD falling 0.3%.
On Wednesday, FAB, the United Arab Emirates' largest lender, announced opening of its representative office in Jakarta, Indonesia to support MENA-Indonesia trade and investment.
The Qatari index .QSI was also unchanged in early trade.
#UAE-Israeli partnership closes in on deal to buy Finablr | Financial Times
UAE-Israeli partnership closes in on deal to buy Finablr | Financial Times
A business group linked to a former Israeli prime minister is close to finalising a deal to buy Finablr, the scandal-hit payments group that is majority-owned by Indian entrepreneur BR Shetty.
Ehud Olmert, Israeli prime minister from 2006-09, is non-executive chairman of Prism Advance Solutions, the London-registered company that was announced in October as a joint bidder with Abu Dhabi’s Royal Strategic Partners for Finablr’s assets including its foreign currency subsidiary UAE Exchange, said a person briefed on the deal.
Mr Olmert is involved in the transaction — touted as the biggest since the United Arab Emirates and Israel agreed to normalise relations in August — “on a daily basis”, calling senior officials in Abu Dhabi or Dubai, the person said. His involvement was intended to provide “some degree of trust that this is a serious business endeavour”, the person added.
Royal Strategic Partners, which is run by corporate veteran Abubaker Al Khoori, is affiliated with Sheikh Hazza bin Zayed Al Nahyan, the deputy chairman of Abu Dhabi Executive Council and a brother of the de facto leader of the UAE.
The unit is a subsidiary of private investor Abu Dhabi Capital Group, which is owned by Sheikh Hazza and his immediate family, according to Diligencia, a UK-based corporate data provider.