Dubai property prices decline by 0.9%, rents fall by 6.9% in Q3 - central bank | ZAWYA MENA Edition
Residential property prices in Dubai declined on average by 0.9 percent year-on-year (Y-o-Y) in the third quarter of 2020, the UAE Central Bank said in its quarterly report citing data from the Dubai Land Department.
Meanwhile, rents in Dubai continued to decline, decreasing by 6.9 percent Y-o-Y in the third quarter. The implied rental yield in Dubai moved to 6.6 percent in the third quarter, up from 6.3 percent in the previous quarter, the report said.
The average price in the Abu Dhabi housing market increased quarter-on-quarter (Q-o-Q) by 0.9 percent in Q3 2020.
Although prices showed quarterly improvement, this was not enough to offset the negative momentum in earlier quarters, leading to an annual decline by 5.5 percent, the report said.
Rents in Abu Dhabi declined by 3.9 percent Y-o-Y in Q3 2020, after 4.9 percent drop in the previous quarter.
According to the report, the decline in rents by 0.4 percent Q-o-Q compared to the increase in sale prices resulted in a decline in rental yield to 7.0 percent in Q3 compared to 7.1 percent in the second quarter.
Tuesday, 22 December 2020
Oil Slips With New Coronavirus Strain Threatening Fuel Demand - Bloomberg
Oil Slips With New Coronavirus Strain Threatening Fuel Demand - Bloomberg
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#UAE Economy Seen Contracting More Than Estimated This Year - Bloomberg
UAE Economy Seen Contracting More Than Estimated This Year - Bloomberg
The United Arab Emirates will likely suffer a deeper economic contraction this year than previously estimated, hurt by disruptions caused by the coronavirus pandemic and lower oil prices.
Gross domestic product in the Arab world’s second-largest economy is estimated to shrink about 6% in 2020, compared with a previous forecast for a decline of 5.2%, the central bank said in its quarterly review on Tuesday. The economy is expected to grow 2.5% in 2021.
The United Arab Emirates will likely suffer a deeper economic contraction this year than previously estimated, hurt by disruptions caused by the coronavirus pandemic and lower oil prices.
Gross domestic product in the Arab world’s second-largest economy is estimated to shrink about 6% in 2020, compared with a previous forecast for a decline of 5.2%, the central bank said in its quarterly review on Tuesday. The economy is expected to grow 2.5% in 2021.
JPMorgan Ousted as Mideast-Africa’s Top Dealmaker by U.S. Rivals - Bloomberg
JPMorgan Ousted as Mideast-Africa’s Top Dealmaker by U.S. Rivals - Bloomberg
JPMorgan Chase & Co. is no longer the top dealmaker in the Middle East and Africa after losing ground this year to rivals Citigroup Inc. and Morgan Stanley.
Citigroup leads the regional league table for initial public offerings, buoyed by its re-entry to Saudi Arabia in 2017 after a 13-year absence. It also worked on secondary placements from Egypt’s Hikma Pharmaceuticals and the United Arab Emirate’s Network International Holdings, according to data compiled by Bloomberg.
For Morgan Stanley, advising on the $18 billion merger of National Commercial Bank and Samba Financial Group, one of the biggest bank combinations of the year, helped propel it to the top of the table for takeovers. It also worked with a consortium that invested $10 billion in Abu Dhabi National Oil Co.’s gas pipelines.
JPMorgan Chase & Co. is no longer the top dealmaker in the Middle East and Africa after losing ground this year to rivals Citigroup Inc. and Morgan Stanley.
Citigroup leads the regional league table for initial public offerings, buoyed by its re-entry to Saudi Arabia in 2017 after a 13-year absence. It also worked on secondary placements from Egypt’s Hikma Pharmaceuticals and the United Arab Emirate’s Network International Holdings, according to data compiled by Bloomberg.
For Morgan Stanley, advising on the $18 billion merger of National Commercial Bank and Samba Financial Group, one of the biggest bank combinations of the year, helped propel it to the top of the table for takeovers. It also worked with a consortium that invested $10 billion in Abu Dhabi National Oil Co.’s gas pipelines.
Italy's Intesa to work with #Qatar Foundation on business innovation | Reuters
Italy's Intesa to work with Qatar Foundation on business innovation | Reuters
Italy’s biggest bank Intesa Sanpaolo said it had signed a letter of intent with the Qatar Foundation in Doha on Monday to promote cooperation between the two countries on business innovation.
Under the project, start-up companies in the two countries will be encouraged to strike partnerships, joint-ventures and reciprocal investments on innovative technologies, Intesa said in a statement.
Italy’s biggest bank Intesa Sanpaolo said it had signed a letter of intent with the Qatar Foundation in Doha on Monday to promote cooperation between the two countries on business innovation.
Under the project, start-up companies in the two countries will be encouraged to strike partnerships, joint-ventures and reciprocal investments on innovative technologies, Intesa said in a statement.
Oil's rally, fueled by vaccine progress, is running out of steam | Reuters
Oil's rally, fueled by vaccine progress, is running out of steam | Reuters
The oil market has rallied almost 40% in the last two months, pushing benchmarks to nine-month highs, in a euphoric response to progress on COVID-19 vaccines that has investors thinking the end of the coronavirus pandemic is in sight.
Reality struck back on Monday, however, with a selloff driven by the surge in cases in the United Kingdom. Infection rates are at their worst levels in numerous countries and vaccine distribution is proving to be slow, which means the cycles of lockdowns and travel restrictions will continue - keeping fuel demand tepid for many months.
That means the bulk of the rally is already in the rearview mirror, traders and brokers said. Brent crude hit a nine-month high of $52.48 a barrel last week, but gave back as much as 4% on Monday, while U.S. crude prices exceeded $49 a barrel before slipping.
“Even when traders see stability, there is always something unexpected that can happen, and then inflated prices reveal their glass legs,” Rystad Energy’s oil markets analyst Louise Dickson said.
The oil market has rallied almost 40% in the last two months, pushing benchmarks to nine-month highs, in a euphoric response to progress on COVID-19 vaccines that has investors thinking the end of the coronavirus pandemic is in sight.
Reality struck back on Monday, however, with a selloff driven by the surge in cases in the United Kingdom. Infection rates are at their worst levels in numerous countries and vaccine distribution is proving to be slow, which means the cycles of lockdowns and travel restrictions will continue - keeping fuel demand tepid for many months.
That means the bulk of the rally is already in the rearview mirror, traders and brokers said. Brent crude hit a nine-month high of $52.48 a barrel last week, but gave back as much as 4% on Monday, while U.S. crude prices exceeded $49 a barrel before slipping.
“Even when traders see stability, there is always something unexpected that can happen, and then inflated prices reveal their glass legs,” Rystad Energy’s oil markets analyst Louise Dickson said.
#Dubai's Drake & Scull says it's business as usual despite restructuring - Arabianbusiness
Dubai's Drake & Scull says it's business as usual despite restructuring - Arabianbusiness
Troubled Dubai-based Drake & Scull (DSI) has insisted it is business as usual on its various projects, despite the company’s continued restructuring plans.
Creditors of the company have been invited to attend the General Assembly Meeting next month where a restructuring plan will be presented and voted upon.
In a filing to Dubai Financial Market, the company said: “We would like to inform the shareholders that the operations of the company and its subsidiaries are still ongoing and its projects are under execution, especially the company’s project in Abu Dhabi such as Al Reem Mall and contracts for the company's operating in water and energy in many countries.”
It added that shareholders would be kept informed of latest developments relating to projects and the restructuring process through the DFM website.
Troubled Dubai-based Drake & Scull (DSI) has insisted it is business as usual on its various projects, despite the company’s continued restructuring plans.
Creditors of the company have been invited to attend the General Assembly Meeting next month where a restructuring plan will be presented and voted upon.
In a filing to Dubai Financial Market, the company said: “We would like to inform the shareholders that the operations of the company and its subsidiaries are still ongoing and its projects are under execution, especially the company’s project in Abu Dhabi such as Al Reem Mall and contracts for the company's operating in water and energy in many countries.”
It added that shareholders would be kept informed of latest developments relating to projects and the restructuring process through the DFM website.
Bond Record, Budget Pain, Iran and Biden: Mideast Risks in 2021 - Bloomberg
Bond Record, Budget Pain, Iran and Biden: Mideast Risks in 2021 - Bloomberg
Gulf Arab nations approach 2021 with their currency pegs steadied, oil prices clawing back ground, and bond investors keen for the region’s high-rated, high-yielding names.
But the pain from Covid-19 and the slump in crude hasn’t gone, and S&P Global Ratings predicts only a “modest recovery” in the six-nation Gulf Cooperation Council through 2023, after a contraction of about 6% this year. And while the region’s markets are used to geopolitical ructions, investors are waiting to see how Joe Biden’s presidency might tilt the picture, according to Tarek Fadlallah, the Dubai-based chief executive officer of the Middle East unit of Nomura Asset Management.
Gulf Arab nations approach 2021 with their currency pegs steadied, oil prices clawing back ground, and bond investors keen for the region’s high-rated, high-yielding names.
But the pain from Covid-19 and the slump in crude hasn’t gone, and S&P Global Ratings predicts only a “modest recovery” in the six-nation Gulf Cooperation Council through 2023, after a contraction of about 6% this year. And while the region’s markets are used to geopolitical ructions, investors are waiting to see how Joe Biden’s presidency might tilt the picture, according to Tarek Fadlallah, the Dubai-based chief executive officer of the Middle East unit of Nomura Asset Management.
Here are some of the themes investors will be watching in the Gulf:
Bond Binge, Part 2
Governments and companies in the GCC will issue about $120 billion of dollar debt and Islamic securities in 2021, according to Franklin Templeton. That compares with a record $127 billion this year.
The United Arab Emirates will dominate corporate sales, with Saudi Arabia and Qatar leading among sovereign issuers, said Mohieddine Kronfol, Dubai-based chief investment officer for Middle Eastern and North African fixed income at Franklin Templeton. Kuwait will be a “large contributor” to the region’s offerings if it renews a debt law that lapsed after its debut Eurobond issuance in 2017, Kronfol said.
Bond Binge, Part 2
Governments and companies in the GCC will issue about $120 billion of dollar debt and Islamic securities in 2021, according to Franklin Templeton. That compares with a record $127 billion this year.
The United Arab Emirates will dominate corporate sales, with Saudi Arabia and Qatar leading among sovereign issuers, said Mohieddine Kronfol, Dubai-based chief investment officer for Middle Eastern and North African fixed income at Franklin Templeton. Kuwait will be a “large contributor” to the region’s offerings if it renews a debt law that lapsed after its debut Eurobond issuance in 2017, Kronfol said.
#AbuDhabi's TAQA announces financial closing for world’s largest solar power plant | ZAWYA MENA Edition
Abu Dhabi's TAQA announces financial closing for world’s largest solar power plant | ZAWYA MENA Edition
Abu Dhabi National Energy Company (TAQA) – alongside partners Masdar, EDF Renewables and JinkoPower – announced today the successful financial closing of the Al Dhafra Solar Photovoltaic (PV) Independent Power Producer (IPP) project.
The record-breaking project, located approximately 35 kilometres from Abu Dhabi city, will have a capacity of 2 gigawatts (GW) and will supply power to Emirates Water and Electricity Company (EWEC). Once operational, the Al Dhafra Solar PV IPP will be the world’s largest single-site solar power plant, using approximately 4 million solar panels to generate enough electricity for approximately 160,000 homes across the UAE.
Financing for the project will come from seven international banks, following the signing of the power purchase agreement in July 2020. Earlier in the year, the competitive bidding for the project led to one of the most competitive tariffs for solar power, set at AED 4.97 fils/kWh (US$ 1.35 cents/kWh), which upon financial closing, was further improved to AED 4.85 fils/kWh (US$ 1.32 cents/kWh), primarily driven by hedging and financing cost improvements, in addition to other optimisation efforts. TAQA will own 40 percent of the Al Dhafra project, while the remaining partners – Masdar, EDF Renewables and JinkoPower – will have a 20 percent stake each.
The plant will deploy the latest in crystalline, bifacial solar technology, which will enable the plant to provide more efficient electricity by capturing solar irradiation from both the front and backside of the panel. Upon full commercial operation, the plant is expected to reduce Abu Dhabi’s CO2 emissions by more than 2.4 million metric tons per year, equivalent to removing approximately 470,000 cars from the road.
Abu Dhabi National Energy Company (TAQA) – alongside partners Masdar, EDF Renewables and JinkoPower – announced today the successful financial closing of the Al Dhafra Solar Photovoltaic (PV) Independent Power Producer (IPP) project.
The record-breaking project, located approximately 35 kilometres from Abu Dhabi city, will have a capacity of 2 gigawatts (GW) and will supply power to Emirates Water and Electricity Company (EWEC). Once operational, the Al Dhafra Solar PV IPP will be the world’s largest single-site solar power plant, using approximately 4 million solar panels to generate enough electricity for approximately 160,000 homes across the UAE.
Financing for the project will come from seven international banks, following the signing of the power purchase agreement in July 2020. Earlier in the year, the competitive bidding for the project led to one of the most competitive tariffs for solar power, set at AED 4.97 fils/kWh (US$ 1.35 cents/kWh), which upon financial closing, was further improved to AED 4.85 fils/kWh (US$ 1.32 cents/kWh), primarily driven by hedging and financing cost improvements, in addition to other optimisation efforts. TAQA will own 40 percent of the Al Dhafra project, while the remaining partners – Masdar, EDF Renewables and JinkoPower – will have a 20 percent stake each.
The plant will deploy the latest in crystalline, bifacial solar technology, which will enable the plant to provide more efficient electricity by capturing solar irradiation from both the front and backside of the panel. Upon full commercial operation, the plant is expected to reduce Abu Dhabi’s CO2 emissions by more than 2.4 million metric tons per year, equivalent to removing approximately 470,000 cars from the road.
Oil plunges as new coronavirus strain renews demand recovery fears | Reuters
Oil plunges as new coronavirus strain renews demand recovery fears | Reuters
Oil prices dropped nearly 2% on Tuesday, adding to steep losses from the previous session, as a new strain of the novel coronavirus in the United Kingdom triggered concerns over fuel demand recovery.
The fast-spreading new coronavirus strain has shut down much of Britain, and has prompted several countries to close their borders to British travellers and freight.
Brent crude futures were down 88 cents, or 1.7% to $50.03 a barrel at 0730 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 92 cents, or 1.9%, to $47.05 a barrel.
Both benchmark contracts slid nearly 3% on Monday, partly erasing recent strong gains on the back of the rollout of COVID-19 vaccines, seen as key to easing mobility restrictions.
Oil prices dropped nearly 2% on Tuesday, adding to steep losses from the previous session, as a new strain of the novel coronavirus in the United Kingdom triggered concerns over fuel demand recovery.
The fast-spreading new coronavirus strain has shut down much of Britain, and has prompted several countries to close their borders to British travellers and freight.
Brent crude futures were down 88 cents, or 1.7% to $50.03 a barrel at 0730 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 92 cents, or 1.9%, to $47.05 a barrel.
Both benchmark contracts slid nearly 3% on Monday, partly erasing recent strong gains on the back of the rollout of COVID-19 vaccines, seen as key to easing mobility restrictions.
Most major Gulf markets firm in early trade; #Qatar eases | Reuters
Most major Gulf markets firm in early trade; Qatar eases | Reuters
Most major Gulf markets firmed early on Tuesday, a day after registering sharp declines as a highly transmissible new coronavirus strain in Britain fuelled concerns that a resurgence of infections could stunt the pace of reopening economies.
The new variant of the virus is spreading rapidly in Britain and prompting high levels of concern among other countries, many of which have cut transport links.
Saudi Arabia’s benchmark index climbed 0.8%, led by a 1.2% rise in petrochemical maker Saudi Basic Industries and a 0.6% increase in Al Rajhi Bank.
Saudi Telecom Company (STC), however, slipped 0.2% after the kingdom’s general authority for competition (GAC) fined it 10 million riyals ($2.67 million) on Monday, according to state TV.
Dubai’s main share index added 0.3%, with sharia-compliant lender Dubai Islamic Bank rising 1.6% and Emirates Integrated Telecommunications gaining 2.1%.
The Abu Dhabi index edged up 0.1%, helped by a 1.3% gain in Aldar Properties.
In Qatar, the index fell 0.6%, with most stocks in negative territory, including Qatar Fuel Co, which was down 1.4%.
Most major Gulf markets firmed early on Tuesday, a day after registering sharp declines as a highly transmissible new coronavirus strain in Britain fuelled concerns that a resurgence of infections could stunt the pace of reopening economies.
The new variant of the virus is spreading rapidly in Britain and prompting high levels of concern among other countries, many of which have cut transport links.
Saudi Arabia’s benchmark index climbed 0.8%, led by a 1.2% rise in petrochemical maker Saudi Basic Industries and a 0.6% increase in Al Rajhi Bank.
Saudi Telecom Company (STC), however, slipped 0.2% after the kingdom’s general authority for competition (GAC) fined it 10 million riyals ($2.67 million) on Monday, according to state TV.
Dubai’s main share index added 0.3%, with sharia-compliant lender Dubai Islamic Bank rising 1.6% and Emirates Integrated Telecommunications gaining 2.1%.
The Abu Dhabi index edged up 0.1%, helped by a 1.3% gain in Aldar Properties.
In Qatar, the index fell 0.6%, with most stocks in negative territory, including Qatar Fuel Co, which was down 1.4%.