U.S. report on Khashoggi weighs on Saudi shares | Reuters
Most major Gulf stock markets reversed earlier losses to close higher on Sunday, while Saudi shares retreated after U.S. intelligence released on Friday said Crown Prince Mohammed Bin Salman had approved an operation to capture or kill journalist Jamal Khashoggi in 2018.
The United States imposed sanctions on some of those involved but spared the crown prince himself in an effort to preserve relations with the kingdom.
Khashoggi was a U.S. resident who wrote opinion columns for the Washington Post critical of Crown Prince Mohammed bin Salman’s policies.
U.S. officials said they were considering cancelling arms sales to the kingdom that pose human rights concerns and limiting future sales to “defensive” weapons, as it reassesses its relationship with Saudi Arabia and its role in the Yemen war.
Saudi Arabia’s benchmark index fell 0.5%, its biggest intraday fall since Feb. 18, with Al Rajhi Bank losing 1.8%, while petrochemical maker Saudi Basic Industries slid 3%.
“I don’t think investors considered it a big risk that the U.S. would torpedo U.S. Saudi relations by targeting Mohammed Bin Salman,” said Khaled Abdel Majeed at London-based investment advisory firm SAM Capital Partners. “Political risk is high in Saudi Arabia and so are valuations,” he said.
In Dubai, the main share index ended 1% higher, buoyed by a 2.6% rise in blue-chip developer Emaar Properties and a 0.8% increase in sharia-compliant lender Dubai Islamic Bank.
Elsewhere, Dubai Financial Market jumped 6%, to become the top gainer on the index.
Last week, the DFM said it would reinstate a 10% limit down cap on daily movements in listed securities as of the February 28 trading session.
The Abu Dhabi index added 0.6%, with telecoms company Emirates Telecommunications Group advancing 2.2%.
In Qatar, the index gained 0.3%, with lender Masraf Al Rayan rising 1.5%.
Sunday, 28 February 2021
Aramco seeks one-year extension on $10 billion loan: sources | Reuters
Aramco seeks one-year extension on $10 billion loan: sources | Reuters
Saudi Aramco has asked banks to extend by a year a $10 billion loan it raised last May, two sources familiar with the matter said, suggesting that rebounding crude prices are not pushing the oil giant to reduce debt for the time being.
The sources confirmed a report by Loan Pricing Corporation, a fixed-income news provider owned by Refinitiv.
It is at the banks’ discretion whether to extend the loan, but lenders will likely agree in order to maintain a good relationship with Aramco in the hope of receiving future business, LPC said citing a banker.
One of the sources, who confirmed the report, echoed that, saying: “It’s Aramco. Why not?”
Aramco declined to comment.
Saudi Aramco has asked banks to extend by a year a $10 billion loan it raised last May, two sources familiar with the matter said, suggesting that rebounding crude prices are not pushing the oil giant to reduce debt for the time being.
The sources confirmed a report by Loan Pricing Corporation, a fixed-income news provider owned by Refinitiv.
It is at the banks’ discretion whether to extend the loan, but lenders will likely agree in order to maintain a good relationship with Aramco in the hope of receiving future business, LPC said citing a banker.
One of the sources, who confirmed the report, echoed that, saying: “It’s Aramco. Why not?”
Aramco declined to comment.
#AbuDhabi’s De Facto Ruler Becomes Chair of State Oil Firm Adnoc - Bloomberg
Abu Dhabi’s De Facto Ruler Becomes Chair of State Oil Firm Adnoc - Bloomberg
Abu Dhabi’s de facto ruler, Crown Prince Mohammed Bin Zayed, has become chairman of a newly-established board for the emirate’s state energy company.
The crown prince also appointed one of his sons, Khaled bin Mohamed bin Zayed, as chairman of a new executive committee at Abu Dhabi National Oil Co., according to tweets on Sunday from the emirate’s media office.
The move formalizes Prince Mohammed’s control over Adnoc, which pumps almost all the oil and gas in the United Arab Emirates, the third-biggest crude producer in OPEC.
Sultan Al Jaber, Adnoc’s chief executive officer, was given the additional title of managing director.
Abu Dhabi’s de facto ruler, Crown Prince Mohammed Bin Zayed, has become chairman of a newly-established board for the emirate’s state energy company.
The crown prince also appointed one of his sons, Khaled bin Mohamed bin Zayed, as chairman of a new executive committee at Abu Dhabi National Oil Co., according to tweets on Sunday from the emirate’s media office.
The move formalizes Prince Mohammed’s control over Adnoc, which pumps almost all the oil and gas in the United Arab Emirates, the third-biggest crude producer in OPEC.
Sultan Al Jaber, Adnoc’s chief executive officer, was given the additional title of managing director.
Khalifa bin Zayed, in his capacity as Chairman of the Supreme Council for Financial and Economic Affairs, has issued a resolution to form the board of directors of Abu Dhabi National Oil Company (ADNOC), chaired by Mohamed bin Zayed. pic.twitter.com/IrETcPu1PB
— مكتب أبوظبي الإعلامي (@admediaoffice) February 28, 2021
Jefferies International's Moubayed on #Dubai's Extending Curbs, the U.S. Report on #Khashoggi, Oil - Bloomberg
Jefferies International's Moubayed on Dubai's Extending Curbs, the U.S. Report on Khashoggi, Oil - Bloomberg
Alia Moubayed, Jefferies International Managing Director, discusses Dubai's extension of coronavirus curbs, the Biden administration's calling out of Saudi Arabia on the murder of Jamal Khashoggi, and oil prices. She speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Saudi Shares Drop as U.S. Pins Khashoggi Murder on Crown Prince - Bloomberg
Saudi Shares Drop as U.S. Pins Khashoggi Murder on Crown Prince - Bloomberg
Saudi stocks fell the most in a month, tracking last week’s declines across emerging markets, as traders weighed the impact of a U.S. intelligence report saying Crown Prince Mohammed bin Salman signed off on the killing of Washington Post columnist Jamal Khashoggi.
The Tadawul All Share Index retreated as much 1%, its sharpest decline since Jan. 31. It pared losses to close 0.5% lower. Al Rajhi Bank, Saudi Basic Industries, Saudi Telecom Co. and Saudi Aramco dragged the index down the most by points. Stock indexes in the United Arab Emirates, Qatar, Oman and Bahrain advanced, while those in Egypt and Israel fell.
While President Joe Biden’s administration imposed only modest new sanctions on the kingdom, it’s expected to announce more action on Monday. Saudi Arabia said it “rejects the negative, false and unacceptable assessment in the report.”
“We could see some influence in the sale of arms to Saudi Arabia” Alia Moubayed, the London-based chief economist for Middle East, North Africa at Jefferies International, said in an interview with Bloomberg TV. “But in terms of flows, unless sanctions hit particular asset classes, I don’t see flows being significantly affected.”
Trading in Riyadh was also pressured by wider declines in emerging-market shares on Friday, when the MSCI EM Index fell 3.2% as a selloff in Treasuries triggered a slide in risk assets. Oil, Saudi Arabia’s biggest export, finished 1.1% lower last week.
Outflows from the Saudi stock exchange climbed to a record of 6.6 billion riyals ($1.76 billion) in October 2018, the month when Khashoggi was killed at the Saudi consulate in Istanbul. It was the biggest monthly drop in foreign holdings since the country opened up its stock market to international investors in 2015.
MIDDLE EASTERN MARKETS:
Saudi stocks fell the most in a month, tracking last week’s declines across emerging markets, as traders weighed the impact of a U.S. intelligence report saying Crown Prince Mohammed bin Salman signed off on the killing of Washington Post columnist Jamal Khashoggi.
The Tadawul All Share Index retreated as much 1%, its sharpest decline since Jan. 31. It pared losses to close 0.5% lower. Al Rajhi Bank, Saudi Basic Industries, Saudi Telecom Co. and Saudi Aramco dragged the index down the most by points. Stock indexes in the United Arab Emirates, Qatar, Oman and Bahrain advanced, while those in Egypt and Israel fell.
While President Joe Biden’s administration imposed only modest new sanctions on the kingdom, it’s expected to announce more action on Monday. Saudi Arabia said it “rejects the negative, false and unacceptable assessment in the report.”
“We could see some influence in the sale of arms to Saudi Arabia” Alia Moubayed, the London-based chief economist for Middle East, North Africa at Jefferies International, said in an interview with Bloomberg TV. “But in terms of flows, unless sanctions hit particular asset classes, I don’t see flows being significantly affected.”
Trading in Riyadh was also pressured by wider declines in emerging-market shares on Friday, when the MSCI EM Index fell 3.2% as a selloff in Treasuries triggered a slide in risk assets. Oil, Saudi Arabia’s biggest export, finished 1.1% lower last week.
Outflows from the Saudi stock exchange climbed to a record of 6.6 billion riyals ($1.76 billion) in October 2018, the month when Khashoggi was killed at the Saudi consulate in Istanbul. It was the biggest monthly drop in foreign holdings since the country opened up its stock market to international investors in 2015.
- The Saudi index’s decline trims its gain in February to 5.1%
- Riyad Bank rises as much as 1.9% after proposing a dividend for 2020 of 0.5 riyal per share
- Dubai’s DFM General Index rises 1%, the most in the Gulf
- Abu Dhabi’s ADX General Index gains 0.6%
- In Doha, the QE Index climbs 0.3%
- Ezdan Holding Group rises as much as 5.3% after saying it’s finalizing a bank facility to fully repay a $500 million sukuk maturing in May
- Shares dropped last week after S&P Global Ratings said the Qatari property developer faces the risk of a default or debt restructuring
- QLM Life & Medical Insurance jumps 10% for a second session, after Qatar said last week that all expatriates and visitors will be required to have health insurance
- Gauges in Bahrain and Oman rise 0.1% and 0.3%, respectively
- Kuwait’s market is closed for a local holiday
#UAE's Amanat posts 83% drop in profits for 2020 - Arabianbusiness
UAE's Amanat posts 83% drop in profits for 2020 - Arabianbusiness
Amanat Holdings, the GCC’s largest healthcare and education investment company, has revealed a net profit of $2.75 million for 2020, despite the economic impact of Covid-19, although this was down considerably by around 83 percent compared to the $16.3m profits announced in 2019.
The company reported total income of $19.2 million for the last 12 months, down 36.8 percent year-on-year, while income from investments was $15.3 million, a drop of 22.3 percent of 2019 figures.
Chief executive officer of Amanat, Dr. Mohamad Hamade, said: “Looking back at 2020, our results reflect our proactive response strategy that was focused on mitigating short-term impacts and positioning us for long-term growth.”
Amanat Holdings, the GCC’s largest healthcare and education investment company, has revealed a net profit of $2.75 million for 2020, despite the economic impact of Covid-19, although this was down considerably by around 83 percent compared to the $16.3m profits announced in 2019.
The company reported total income of $19.2 million for the last 12 months, down 36.8 percent year-on-year, while income from investments was $15.3 million, a drop of 22.3 percent of 2019 figures.
Chief executive officer of Amanat, Dr. Mohamad Hamade, said: “Looking back at 2020, our results reflect our proactive response strategy that was focused on mitigating short-term impacts and positioning us for long-term growth.”
Trump’s #Dubai Golf Expansion Gets Delayed Until at Least 2022 - Bloomberg
Trump’s Dubai Golf Expansion Gets Delayed Until at Least 2022 - Bloomberg
The Trump Organization’s website has long listed the Trump World Golf Club in the expat hub of Dubai as “coming soon.”
But four years after it was supposed to open for business, the 18-hole course designed by Tiger Woods faces yet another delay in the city already dealing with a glut of development, this time until at least 2022, according to a senior employee involved in the operation.
When it opens, the project will test whether Trump’s corporate brand holds the same allure in a region where the former U.S. president has enjoyed broad support. And it comes as the company is figuring out its path forward with Trump out of office.
Grafted onto the desert and ringed by a luxury housing development, the golf course doesn’t yet display any of the typical, gold-emblazoned Trump signage. Instead, the name that’s ubiquitous is Damac Properties Dubai Co., the local developer and Trump partner that’s building the surrounding community, Akoya Oxygen.
The Trump Organization’s website has long listed the Trump World Golf Club in the expat hub of Dubai as “coming soon.”
But four years after it was supposed to open for business, the 18-hole course designed by Tiger Woods faces yet another delay in the city already dealing with a glut of development, this time until at least 2022, according to a senior employee involved in the operation.
When it opens, the project will test whether Trump’s corporate brand holds the same allure in a region where the former U.S. president has enjoyed broad support. And it comes as the company is figuring out its path forward with Trump out of office.
Grafted onto the desert and ringed by a luxury housing development, the golf course doesn’t yet display any of the typical, gold-emblazoned Trump signage. Instead, the name that’s ubiquitous is Damac Properties Dubai Co., the local developer and Trump partner that’s building the surrounding community, Akoya Oxygen.
#Saudi Shares Drop as U.S. Pins Khashoggi Murder on Crown Prince - Bloomberg
Saudi Shares Drop as U.S. Pins Khashoggi Murder on Crown Prince - Bloomberg
Saudi stocks fell the most in a month, tracking last week’s declines across emerging markets, as traders weighed the impact of a U.S. intelligence report saying Crown Prince Mohammed bin Salman signed off on the killing of Washington Post columnist Jamal Khashoggi.
The Tadawul All Share Index retreated as much 1%, its sharpest decline since Jan. 31. It was 0.6% lower as of 10:43 a.m. in Riyadh. Rajhi Bank, Saudi Basic Industries, Saudi Telecom Co. and Saudi Aramco dragged the index down the most by points.
While President Joe Biden’s administration imposed only modest new sanctions on the kingdom, it’s expected to announce more action on Monday. Saudi Arabia said it “rejects the negative, false and unacceptable assessment in the report.”
“We could see some influence in the sale of arms to Saudi Arabia” Alia Moubayed, the London-based chief economist for Middle East, North Africa at Jefferies International, said in an interview with Bloomberg TV. “But in terms of flows, unless sanctions hit particular asset classes, I don’t see flows being significantly affected.”
Trading in Riyadh was also pressured by wider declines in emerging-market shares on Friday, when the MSCI EM Index fell 3.2% as a selloff in Treasuries triggered a slide in risk assets. Oil, Saudi Arabia’s biggest export, finished 1.1% lower last week.
Outflows from the Saudi stock exchange climbed to a record of 6.6 billion riyals ($1.76 billion) in October 2018, the month when Khashoggi was killed at the Saudi Consulate in Istanbul. It was the biggest monthly drop in foreign holdings since the country opened up its stock market to international investors in 2015.
Saudi stocks fell the most in a month, tracking last week’s declines across emerging markets, as traders weighed the impact of a U.S. intelligence report saying Crown Prince Mohammed bin Salman signed off on the killing of Washington Post columnist Jamal Khashoggi.
The Tadawul All Share Index retreated as much 1%, its sharpest decline since Jan. 31. It was 0.6% lower as of 10:43 a.m. in Riyadh. Rajhi Bank, Saudi Basic Industries, Saudi Telecom Co. and Saudi Aramco dragged the index down the most by points.
While President Joe Biden’s administration imposed only modest new sanctions on the kingdom, it’s expected to announce more action on Monday. Saudi Arabia said it “rejects the negative, false and unacceptable assessment in the report.”
“We could see some influence in the sale of arms to Saudi Arabia” Alia Moubayed, the London-based chief economist for Middle East, North Africa at Jefferies International, said in an interview with Bloomberg TV. “But in terms of flows, unless sanctions hit particular asset classes, I don’t see flows being significantly affected.”
Trading in Riyadh was also pressured by wider declines in emerging-market shares on Friday, when the MSCI EM Index fell 3.2% as a selloff in Treasuries triggered a slide in risk assets. Oil, Saudi Arabia’s biggest export, finished 1.1% lower last week.
Outflows from the Saudi stock exchange climbed to a record of 6.6 billion riyals ($1.76 billion) in October 2018, the month when Khashoggi was killed at the Saudi Consulate in Istanbul. It was the biggest monthly drop in foreign holdings since the country opened up its stock market to international investors in 2015.
OPEC+ Faces Calls to Cool Oil Market Frenzy With Extra Barrels - Bloomberg
OPEC+ Faces Calls to Cool Oil Market Frenzy With Extra Barrels - Bloomberg
From trading houses in Geneva to Wall Street banks, much of the oil world agrees that global markets could use some more barrels. The big question is whether OPEC+ will provide enough of them.
A crude glut that piled up during the pandemic is vanishing fast. Global inventories are plunging at the steepest rate in two decades, according to Morgan Stanley. Prices have rallied to pre-virus levels, while U.S. production has taken a hit from freezing storms. Talk swirls of market supercycles, and even the return of $100 oil.
With the need for more supply evident, traders expect the OPEC+ coalition, led by Saudi Arabia and Russia, will agree to increase production when it meets on March 4, reversing some of the output cuts made last year.
From trading houses in Geneva to Wall Street banks, much of the oil world agrees that global markets could use some more barrels. The big question is whether OPEC+ will provide enough of them.
A crude glut that piled up during the pandemic is vanishing fast. Global inventories are plunging at the steepest rate in two decades, according to Morgan Stanley. Prices have rallied to pre-virus levels, while U.S. production has taken a hit from freezing storms. Talk swirls of market supercycles, and even the return of $100 oil.
With the need for more supply evident, traders expect the OPEC+ coalition, led by Saudi Arabia and Russia, will agree to increase production when it meets on March 4, reversing some of the output cuts made last year.
#Saudi's Riyad Bank announces $399mln cash dividend | ZAWYA MENA Edition
Saudi's Riyad Bank announces $399mln cash dividend | ZAWYA MENA Edition
Saudi Arabia’s Riyad Bank is set to distribute 5 percent cash dividend to its shareholders, the lender said in a statement to the Saudi Stock Exchange (Tadawul) on Sunday.
The payout for the year 2020, pegged at 1.5 million Saudi riyals ($399 million), has been recommended by the bank’s board of directors.
A total of three billion shares will be eligible for the dividend at 0.50 Saudi riyal per share.
The bank also advised non-resident foreign investors that the dividend distribution, which is transferred by the resident financial broker, is subject to a withholding tax of five percent.
The bank’s net income for the full year 2020 fell 12 percent to 5.4 million Saudi riyals on the back of high impairment charge for credit losses.
Saudi Arabia’s Riyad Bank is set to distribute 5 percent cash dividend to its shareholders, the lender said in a statement to the Saudi Stock Exchange (Tadawul) on Sunday.
The payout for the year 2020, pegged at 1.5 million Saudi riyals ($399 million), has been recommended by the bank’s board of directors.
A total of three billion shares will be eligible for the dividend at 0.50 Saudi riyal per share.
The bank also advised non-resident foreign investors that the dividend distribution, which is transferred by the resident financial broker, is subject to a withholding tax of five percent.
The bank’s net income for the full year 2020 fell 12 percent to 5.4 million Saudi riyals on the back of high impairment charge for credit losses.
Saturday, 27 February 2021
Biden’s Untapped Options to Pressure #SaudiArabia Over #Khashoggi - Bloomberg
Biden’s Untapped Options to Pressure Saudi Arabia Over Khashoggi - Bloomberg
The Biden administration imposed only modest new sanctions Friday after releasing an intelligence report that said Saudi Arabia’s Crown Prince Mohammed bin Salman signed off on the 2018 murder of Washington Post columnist Jamal Khashoggi. But other steps will follow within days.
President Joe Biden said in an interview with Univision News that he told Saudi King Salman in a phone call this week that “the rules are changing,” and Biden said the administration will announce more actions on Monday.
President Joe Biden said in an interview with Univision News that he told Saudi King Salman in a phone call this week that “the rules are changing,” and Biden said the administration will announce more actions on Monday.
Friday, 26 February 2021
Oil set for steady gains as economies shake off pandemic blues | Reuters
Oil set for steady gains as economies shake off pandemic blues | Reuters
Oil prices will stage a steady recovery this year as vaccines reach more people and speed an economic revival, with further impetus coming from stimulus and output discipline by top crude producers, a Reuters poll showed on Friday.
The survey of 55 participants forecast Brent crude would average $59.07 per barrel in 2021, up from last month’s $54.47 forecast.
This is the biggest month-on-month upward revision for the yearly forecast in Reuters polls going back until at least 2016.
Brent has averaged around $58.80 so far this year.
“Travel and leisure activity look set to catch up to buoyant manufacturing activity due to the mix of stimulus, confidence, vaccines, and more targeted pandemic measures,” said Norbert Ruecker of Julius Baer.
Oil prices will stage a steady recovery this year as vaccines reach more people and speed an economic revival, with further impetus coming from stimulus and output discipline by top crude producers, a Reuters poll showed on Friday.
The survey of 55 participants forecast Brent crude would average $59.07 per barrel in 2021, up from last month’s $54.47 forecast.
This is the biggest month-on-month upward revision for the yearly forecast in Reuters polls going back until at least 2016.
Brent has averaged around $58.80 so far this year.
“Travel and leisure activity look set to catch up to buoyant manufacturing activity due to the mix of stimulus, confidence, vaccines, and more targeted pandemic measures,” said Norbert Ruecker of Julius Baer.
Amanda Staveley v Barclays: a financial defeat but a PR victory | Barclays | The Guardian #AbuDhabi #UAE #Qatar
Amanda Staveley v Barclays: a financial defeat but a PR victory | Barclays | The Guardian
When Roger Jenkins hotfooted it out of one crunch meeting in his Mayfair home in the autumn of 2008 – and straight round the corner to another at the Dorchester hotel – Barclays’ then chairman of investment banking could hardly have imagined that the minutiae of those encounters would linger in anybody’s memory for long.
The purpose and potential consequences of the meetings could not have appeared more simple and pressing, as the financial world was in a midst of genuine crisis that had just caused the collapse of Lehman Brothers on Wall Street.
Either Jenkins’ efforts would help secure emergency funding to save Barclays and allow him and his colleagues to get back to the business of making money. Or his sales patter would fail and the bank – plus the £39m annual pay and bonuses he had enjoyed for the previous three years – were history.
But, in the end, reality proved less binary.
When Roger Jenkins hotfooted it out of one crunch meeting in his Mayfair home in the autumn of 2008 – and straight round the corner to another at the Dorchester hotel – Barclays’ then chairman of investment banking could hardly have imagined that the minutiae of those encounters would linger in anybody’s memory for long.
The purpose and potential consequences of the meetings could not have appeared more simple and pressing, as the financial world was in a midst of genuine crisis that had just caused the collapse of Lehman Brothers on Wall Street.
Either Jenkins’ efforts would help secure emergency funding to save Barclays and allow him and his colleagues to get back to the business of making money. Or his sales patter would fail and the bank – plus the £39m annual pay and bonuses he had enjoyed for the previous three years – were history.
But, in the end, reality proved less binary.
Oil drops on dollar strength and OPEC+ supply expectations | Reuters
Oil drops on dollar strength and OPEC+ supply expectations | Reuters
Oil prices fell on Friday as bond price rout led to gains in the U.S. dollar while crude supply is expected to rise in response to prices climbing above pre-pandemic levels.
Brent crude futures for April, which expire on Friday, fell 99 cents, or 1.4%, to $65.89 a barrel by 1203 GMT. The more actively traded May contract slipped by $1.19 to $64.92.
U.S. West Texas Intermediate (WTI) crude futures dropped $1.27, or 2%, to $62.26.
A sell-off in bond markets lifted the U.S. dollar, making dollar-priced oil more expensive for holders of other currencies.
Oil prices fell on Friday as bond price rout led to gains in the U.S. dollar while crude supply is expected to rise in response to prices climbing above pre-pandemic levels.
Brent crude futures for April, which expire on Friday, fell 99 cents, or 1.4%, to $65.89 a barrel by 1203 GMT. The more actively traded May contract slipped by $1.19 to $64.92.
U.S. West Texas Intermediate (WTI) crude futures dropped $1.27, or 2%, to $62.26.
A sell-off in bond markets lifted the U.S. dollar, making dollar-priced oil more expensive for holders of other currencies.
S&P Says #Qatar Developer Ezdan Faces Restructuring, Default Risk - Bloomberg
S&P Says Qatar Developer Ezdan Faces Restructuring, Default Risk - Bloomberg
Ezdan Holding Group said it’s finalizing a bank facility to fully repay its $500 million sukuk maturing in May after S&P Global Ratings said the Qatari property developer faces the risk of a default or debt restructuring.
“The company is currently in the final stage of finalizing a facility agreement with a major bank for repayment of sukuk 2021 fully,” it said in a statement on Friday. Ezdan said it plans to repay another $500 million sukuk maturing in April 2022 mainly through operating cash flows and bank balances.
Bonds of Ezdan slumped Thursday after S&P cut the company’s ratings to CCC from B- with a negative outlook, citing it reflected narrowing liquidity and high debt balances that could lead to a distressed exchange, debt restructuring or default over the next 3-12 months.
The company’s dollar bonds due in May slid by 6.6 cents to 90.45 cents on the dollar on Thursday, the biggest decline in about 10 months.
“Ezdan confirms and is committed that the cash and bank balances, cash flows from operations, and the credit lines available to Ezdan will be sufficient to repay sukuk maturing in May 2021 and April 2022,” it said.
Ezdan Holding Group said it’s finalizing a bank facility to fully repay its $500 million sukuk maturing in May after S&P Global Ratings said the Qatari property developer faces the risk of a default or debt restructuring.
“The company is currently in the final stage of finalizing a facility agreement with a major bank for repayment of sukuk 2021 fully,” it said in a statement on Friday. Ezdan said it plans to repay another $500 million sukuk maturing in April 2022 mainly through operating cash flows and bank balances.
Bonds of Ezdan slumped Thursday after S&P cut the company’s ratings to CCC from B- with a negative outlook, citing it reflected narrowing liquidity and high debt balances that could lead to a distressed exchange, debt restructuring or default over the next 3-12 months.
The company’s dollar bonds due in May slid by 6.6 cents to 90.45 cents on the dollar on Thursday, the biggest decline in about 10 months.
“Ezdan confirms and is committed that the cash and bank balances, cash flows from operations, and the credit lines available to Ezdan will be sufficient to repay sukuk maturing in May 2021 and April 2022,” it said.
Oil prices drop amid U.S. dollar strength, expectations for supply gains | Reuters
Oil prices drop amid U.S. dollar strength, expectations for supply gains | Reuters
Oil prices dropped on Friday as a collapse in bond prices led to gains in the U.S. dollar and expectations grew that with oil prices back above pre-pandemic levels, more supply is likely to return to the market.
U.S. West Texas Intermediate (WTI) crude futures dropped 72 cents, or 1.1%, to $62.81 a barrel at 0516 GMT, giving up all of Thursday’s gains.
Brent crude futures for April, which expires on Friday, fell 63 cents, or 0.9%, to $66.25 a barrel, following a 16 cent loss on Thursday. The more active May contract was down 77 cents, or 1.2%, to $65.34 a barrel.
“Crude oil retreated modestly from recent highs amid a ‘risk off’ sentiment as Asia-Pacific equities pulled back broadly following a sour lead from Wall Street,” said Margaret Yang, a strategist at Singapore-based DailyFX.
Oil prices dropped on Friday as a collapse in bond prices led to gains in the U.S. dollar and expectations grew that with oil prices back above pre-pandemic levels, more supply is likely to return to the market.
U.S. West Texas Intermediate (WTI) crude futures dropped 72 cents, or 1.1%, to $62.81 a barrel at 0516 GMT, giving up all of Thursday’s gains.
Brent crude futures for April, which expires on Friday, fell 63 cents, or 0.9%, to $66.25 a barrel, following a 16 cent loss on Thursday. The more active May contract was down 77 cents, or 1.2%, to $65.34 a barrel.
“Crude oil retreated modestly from recent highs amid a ‘risk off’ sentiment as Asia-Pacific equities pulled back broadly following a sour lead from Wall Street,” said Margaret Yang, a strategist at Singapore-based DailyFX.
Thursday, 25 February 2021
Oil mixed, U.S. crude hits highest since 2019 as refineries restart | Reuters
Oil mixed, U.S. crude hits highest since 2019 as refineries restart | Reuters
Oil prices were mixed on Thursday with U.S. crude edging up to its highest close since 2019 as Texas refineries restarted production after last week’s freeze, while Brent eased on worries that four months of gains will prompt producers to boost output.
Earlier in the day, an assurance that U.S. interest rates will stay low and a sharp drop in U.S. crude output last week due to the winter storm in Texas, helped boost both U.S. crude and Brent to their highest intraday prices since January 2020.
Brent futures for April delivery fell 16 cents, or 0.2%, to settle at $66.88 a barrel. The April Brent contract expires on Friday.
U.S. West Texas Intermediate (WTI) crude, meanwhile, ended 31 cents, or 0.5%, higher at $63.53, its highest close since May 2019.
Analysts said WTI increased late in the day as more Texas refineries started to return to service, including Valero Energy Corp’s Port Arthur plant and Citgo Petroleum Corp’s Corpus Christi plant.
Oil prices were mixed on Thursday with U.S. crude edging up to its highest close since 2019 as Texas refineries restarted production after last week’s freeze, while Brent eased on worries that four months of gains will prompt producers to boost output.
Earlier in the day, an assurance that U.S. interest rates will stay low and a sharp drop in U.S. crude output last week due to the winter storm in Texas, helped boost both U.S. crude and Brent to their highest intraday prices since January 2020.
Brent futures for April delivery fell 16 cents, or 0.2%, to settle at $66.88 a barrel. The April Brent contract expires on Friday.
U.S. West Texas Intermediate (WTI) crude, meanwhile, ended 31 cents, or 0.5%, higher at $63.53, its highest close since May 2019.
Analysts said WTI increased late in the day as more Texas refineries started to return to service, including Valero Energy Corp’s Port Arthur plant and Citgo Petroleum Corp’s Corpus Christi plant.
Why #SaudiArabia is building a 170km line city through the desert | FT - YouTube
Why Saudi Arabia is building a 170km line city through the desert | FT - YouTube
A car-free, carbon-free city the size of Belgium, built in a straight line through a remote part of Saudi Arabia is MBS's grand plan. Will it succeed? The FT's Andrew England explores the crown prince's pet project.
Norway Wealth Fund Cuts Exposure to #SaudiArabia Stocks, Boosts #Qatar Holdings - Bloomberg
Norway Wealth Fund Cuts Exposure to Saudi Arabia Stocks, Boosts Qatar Holdings - Bloomberg
Norway’s $1.3 trillion sovereign wealth fund slashed its exposure to Saudi Arabian stocks last year while boosting its portfolio in neighboring Qatar by almost seven times.
Total holdings of shares in Riyadh fell to about $194 million as of the end of December from $420 million the year before, according to data from Norges Bank Investment Management, which manages the fund. In Doha, exposure surged to $582 million from $80 million. Qatar is now its second-biggest holding in the Gulf after the United Arab Emirates.
The shift highlights a turn by the world’s biggest sovereign wealth fund in two Gulf countries that were on opposite sides of a spat in the oil-abundant region that ended in January after almost four years. Starting in 2017, Saudi Arabia joined a group of countries that cut ties with Qatar on accusations that the gas-rich nation supported terrorism. The country has always denied the claim.
The Oslo-based fund generated $123 billion of returns in 2020, its second-best performance ever thanks in large part to tech stocks. But, some of its biggest losses were tied to its holdings of oil companies and the fund exited stocks focused on oil exploration and production last year.
Norway’s $1.3 trillion sovereign wealth fund slashed its exposure to Saudi Arabian stocks last year while boosting its portfolio in neighboring Qatar by almost seven times.
Total holdings of shares in Riyadh fell to about $194 million as of the end of December from $420 million the year before, according to data from Norges Bank Investment Management, which manages the fund. In Doha, exposure surged to $582 million from $80 million. Qatar is now its second-biggest holding in the Gulf after the United Arab Emirates.
The shift highlights a turn by the world’s biggest sovereign wealth fund in two Gulf countries that were on opposite sides of a spat in the oil-abundant region that ended in January after almost four years. Starting in 2017, Saudi Arabia joined a group of countries that cut ties with Qatar on accusations that the gas-rich nation supported terrorism. The country has always denied the claim.
The Oslo-based fund generated $123 billion of returns in 2020, its second-best performance ever thanks in large part to tech stocks. But, some of its biggest losses were tied to its holdings of oil companies and the fund exited stocks focused on oil exploration and production last year.
MIDEAST STOCKS-Global share rally, rising oil prices buoy Gulf bourses | Nasdaq
MIDEAST STOCKS-Global share rally, rising oil prices buoy Gulf bourses | Nasdaq
Major stock markets in the Middle East registered sharp gains on Thursday, tracking a rise in global equities and a recovery in oil prices, with Qatar outperforming the region.
Brent oil climbed to a 13-month high of $67.30 LCOc1, CLc1 after U.S. government data on Wednesday showed a drop in crude output as a deep freeze in Texas disrupted production last week. O/R
Saudi Arabia's benchmark share index .TASI rose 0.9%, with Al Rajhi Bank 1120.SE rising 2% and Saudi Telecom Company 7010.SE climbing 3.3%.
The kingdom raised 1.5 billion euros ($1.83 billion) on Wednesday in a two-tranche bond deal after receiving orders for more than 3.75 billion euros, a document showed.
Potentially weighing on Saudi stocks in coming days is a declassified version of a U.S. intelligence report expected to be released later on Thursday, which found that Saudi Crown Prince Mohammed bin Salman approved the 2018 killing of journalist Jamal Khashoggi, Reuters reported, citing four U.S. officials familiar with the matter.
On Wednesday, U.S. President Joe Biden told reporters that he had read the report and expected to speak soon by phone with Saudi Arabian King Salman, father of the crown prince.
Dubai's main share index .DFMGI added 0.8%, buoyed by a 2.3% gain in Emirates NBD Bank ENBD.DU and a 5.4% surge in DAMAC Properties DAMAC.DU.
In Abu Dhabi, however, the index .ADI traded flat as gains in Abu Dhabi Islamic Bank ADIB.AD were offset by losses in the country's largest lender First Abu Dhabi Bank FAB.AD.
The Qatari index .QSI advanced 1.7%, snapping a six-day losing streak, boosted by a 2.7% gain in petrochemical maker Industries Qatar IQCD.QA.
Major stock markets in the Middle East registered sharp gains on Thursday, tracking a rise in global equities and a recovery in oil prices, with Qatar outperforming the region.
Brent oil climbed to a 13-month high of $67.30 LCOc1, CLc1 after U.S. government data on Wednesday showed a drop in crude output as a deep freeze in Texas disrupted production last week. O/R
Saudi Arabia's benchmark share index .TASI rose 0.9%, with Al Rajhi Bank 1120.SE rising 2% and Saudi Telecom Company 7010.SE climbing 3.3%.
The kingdom raised 1.5 billion euros ($1.83 billion) on Wednesday in a two-tranche bond deal after receiving orders for more than 3.75 billion euros, a document showed.
Potentially weighing on Saudi stocks in coming days is a declassified version of a U.S. intelligence report expected to be released later on Thursday, which found that Saudi Crown Prince Mohammed bin Salman approved the 2018 killing of journalist Jamal Khashoggi, Reuters reported, citing four U.S. officials familiar with the matter.
On Wednesday, U.S. President Joe Biden told reporters that he had read the report and expected to speak soon by phone with Saudi Arabian King Salman, father of the crown prince.
Dubai's main share index .DFMGI added 0.8%, buoyed by a 2.3% gain in Emirates NBD Bank ENBD.DU and a 5.4% surge in DAMAC Properties DAMAC.DU.
In Abu Dhabi, however, the index .ADI traded flat as gains in Abu Dhabi Islamic Bank ADIB.AD were offset by losses in the country's largest lender First Abu Dhabi Bank FAB.AD.
The Qatari index .QSI advanced 1.7%, snapping a six-day losing streak, boosted by a 2.7% gain in petrochemical maker Industries Qatar IQCD.QA.
Oil holds close to 13-month high, supported by sharp drop in U.S. output | Reuters
Oil holds close to 13-month high, supported by sharp drop in U.S. output | Reuters
Oil prices remained close to 13-month highs on Thursday, with profit-taking limited by an assurance that U.S. interest rates will stay low and a sharp drop in U.S. crude output last week due to the storm in Texas.
Brent crude for April hit $67.70 a barrel during the session, its highest since Jan. 8, 2020. By 1437 GMT, it had slipped 48 cents, or 0.7%, on the day to $66.56.
U.S. West Texas Intermediate was down 49 cents or 0.8% at $62.73, after also hitting a 13-month high of $63.79.
Tamas Varga, analyst at PVM Oil Associates, said the dip was partly due to profit taking after a three-day rally.
Oil prices remained close to 13-month highs on Thursday, with profit-taking limited by an assurance that U.S. interest rates will stay low and a sharp drop in U.S. crude output last week due to the storm in Texas.
Brent crude for April hit $67.70 a barrel during the session, its highest since Jan. 8, 2020. By 1437 GMT, it had slipped 48 cents, or 0.7%, on the day to $66.56.
U.S. West Texas Intermediate was down 49 cents or 0.8% at $62.73, after also hitting a 13-month high of $63.79.
Tamas Varga, analyst at PVM Oil Associates, said the dip was partly due to profit taking after a three-day rally.
Qatari Developer’s Bonds Plunge After S&P Warns of Default Risk update
Qatari Developer’s Bonds Plunge After S&P Warns of Default Risk update - Bloomberg
Bonds of Ezdan Holding Group slumped after S&P Global Ratings said Qatar’s biggest property developer faces the risk of a default or debt restructuring.
S&P cut Ezdan’s rating to CCC from B- with a negative outlook, reflecting narrowing liquidity and high debt balances, which it said could lead to a distressed exchange, debt restructuring or default over the next 3-12 months.
Ezdan didn’t immediately respond to emails seeking comment. The company’s dollar bonds due in May slid by 5.6 cents to 92.29 cents on the dollar, the biggest decline in 10 months.
Bonds of Ezdan Holding Group slumped after S&P Global Ratings said Qatar’s biggest property developer faces the risk of a default or debt restructuring.
S&P cut Ezdan’s rating to CCC from B- with a negative outlook, reflecting narrowing liquidity and high debt balances, which it said could lead to a distressed exchange, debt restructuring or default over the next 3-12 months.
Ezdan didn’t immediately respond to emails seeking comment. The company’s dollar bonds due in May slid by 5.6 cents to 92.29 cents on the dollar, the biggest decline in 10 months.
#Saudi Wealth Fund’s Lucid Windfall Will Make Up for Tesla Exit - Bloomberg
Saudi Wealth Fund’s Lucid Windfall Will Make Up for Tesla Exit - Bloomberg
The second time proved the charm for Saudi Arabia’s foray into electric vehicles.
The kingdom’s main sovereign wealth fund is sitting on paper gains of over 30-fold from its investment in Lucid Motors Inc., with the value of its stake set to rise as part of a deal to take the company public.
The result is a boost for the $400 billion Public Investment Fund after missing out on an epic rally in Tesla Inc. shares when it sold much of its 5% stake in the industry leader at the end of 2019.
The PIF, as the fund is known, will hold a stake of 62% in Lucid once the acquisition of the automaker by special purpose acquisition vehicle Churchill Capital IV is complete. The holding would be valued at about $32 billion, based on the current share price of Church Capital IV.
The deal would represent a jackpot for the PIF, which invested $1 billion in Lucid in 2018 and is expected to provide an additional $600 million in funding for the company before the SPAC deal is completed. It also participated in a $2.5 billion private investment in public equity, or PIPE, the largest of its kind on record for a SPAC deal.
Under the leadership of Yasir Al-Rumayyan, the PIF has shifted investment priorities from holdings in state-owned companies to building up stakes in companies such as Uber Technologies Inc. and Jio Platforms Ltd., the digital services business controlled by Indian billionaire Mukesh Ambani.
The fund’s returns on investment increased from about 3% between 2014 and 2016 to 8% from 2018 to 2020, according to the PIF website. It has more than doubled its assets in the five years since Crown Prince Mohammed bin Salman has been chairman.
The investments are part of a strategy that aims to boost returns from the kingdom’s wealth while diversifying the Saudi economy and creating jobs.
Bloomberg News reported in January that Lucid was in talks with the PIF to potentially build a factory near the Red Sea city of Jeddah, although the automaker’s CEO, Peter Rawlinson, said on Tuesday there were no imminent plans to build a factory in the kingdom.
The second time proved the charm for Saudi Arabia’s foray into electric vehicles.
The kingdom’s main sovereign wealth fund is sitting on paper gains of over 30-fold from its investment in Lucid Motors Inc., with the value of its stake set to rise as part of a deal to take the company public.
The result is a boost for the $400 billion Public Investment Fund after missing out on an epic rally in Tesla Inc. shares when it sold much of its 5% stake in the industry leader at the end of 2019.
The PIF, as the fund is known, will hold a stake of 62% in Lucid once the acquisition of the automaker by special purpose acquisition vehicle Churchill Capital IV is complete. The holding would be valued at about $32 billion, based on the current share price of Church Capital IV.
The deal would represent a jackpot for the PIF, which invested $1 billion in Lucid in 2018 and is expected to provide an additional $600 million in funding for the company before the SPAC deal is completed. It also participated in a $2.5 billion private investment in public equity, or PIPE, the largest of its kind on record for a SPAC deal.
Under the leadership of Yasir Al-Rumayyan, the PIF has shifted investment priorities from holdings in state-owned companies to building up stakes in companies such as Uber Technologies Inc. and Jio Platforms Ltd., the digital services business controlled by Indian billionaire Mukesh Ambani.
The fund’s returns on investment increased from about 3% between 2014 and 2016 to 8% from 2018 to 2020, according to the PIF website. It has more than doubled its assets in the five years since Crown Prince Mohammed bin Salman has been chairman.
The investments are part of a strategy that aims to boost returns from the kingdom’s wealth while diversifying the Saudi economy and creating jobs.
Bloomberg News reported in January that Lucid was in talks with the PIF to potentially build a factory near the Red Sea city of Jeddah, although the automaker’s CEO, Peter Rawlinson, said on Tuesday there were no imminent plans to build a factory in the kingdom.
S&P Says #Qatar Developer Ezdan Faces Restructuring, Default Risk - Bloomberg
S&P Says Qatar Developer Ezdan Faces Restructuring, Default Risk - Bloomberg
Qatar’s biggest property developer Ezdan Holding Group faces the risk of a default or debt restructuring as it is yet to obtain credit-lines to meet upcoming maturities, according to S&P Global Ratings.
S&P cut Ezdan’s rating to CCC from B- with a negative outlook, reflecting narrowing liquidity and high debt balances, which it said could lead to a distressed exchange, debt restructuring, or default over the next 3-12 months.
“Without a committed refinancing plan or an equity contribution from its shareholder, we do not believe that Ezdan has sufficient cash or liquid assets on its balance sheet to repay its debt,” the ratings agency said.
Ezdan shares slumped 8% in Doha, before trimming losses to 2.1%. The stock has underperformed Qatar’s main stock index so far this year. The company did not immediately respond to emails seeking comment.
Qatar’s biggest property developer Ezdan Holding Group faces the risk of a default or debt restructuring as it is yet to obtain credit-lines to meet upcoming maturities, according to S&P Global Ratings.
S&P cut Ezdan’s rating to CCC from B- with a negative outlook, reflecting narrowing liquidity and high debt balances, which it said could lead to a distressed exchange, debt restructuring, or default over the next 3-12 months.
“Without a committed refinancing plan or an equity contribution from its shareholder, we do not believe that Ezdan has sufficient cash or liquid assets on its balance sheet to repay its debt,” the ratings agency said.
Ezdan shares slumped 8% in Doha, before trimming losses to 2.1%. The stock has underperformed Qatar’s main stock index so far this year. The company did not immediately respond to emails seeking comment.
#SaudiArabia Is Paid to Borrow in Second-Ever Euro Bond Sale - Bloomberg
Saudi Arabia Is Paid to Borrow in Second-Ever Euro Bond Sale - Bloomberg
Saudi Arabia joined the ranks of countries that get paid to borrow in euros as the outlook for the kingdom turns favorable with a recovery in oil prices.
The world’s largest crude-oil exporter sold 1.5 billion euros of bonds ($1.8 billion), the second time it’s issued debt in the common currency, after attracting orders for more than three times the notes on offer, according to a statement on the Finance Ministry’s website.
The Chinese government, which has the same rating as Saudi Arabia from Moody’s Investors Service, issued debt in euros at a negative rate for the first time last year.
Saudi Arabia joined the ranks of countries that get paid to borrow in euros as the outlook for the kingdom turns favorable with a recovery in oil prices.
The world’s largest crude-oil exporter sold 1.5 billion euros of bonds ($1.8 billion), the second time it’s issued debt in the common currency, after attracting orders for more than three times the notes on offer, according to a statement on the Finance Ministry’s website.
The Chinese government, which has the same rating as Saudi Arabia from Moody’s Investors Service, issued debt in euros at a negative rate for the first time last year.
- 1 billion euros of Saudi Arabia’s three-year notes were priced at 40 basis points over midswaps, compared with initial price guidance of about 60 basis points, according to people familiar with the matter
- 500 million euros of nine-year securities were priced at 70 basis points over midswaps, compared with roughly 90 basis points at the start of the sale
- The yields were minus 0.057% for the three-year debt and 0.646% for nine-year notes
Emirates NBD approves 40% cash dividend despite 52% dive in 2020 net profit | ZAWYA MENA Edition
Emirates NBD approves 40% cash dividend despite 52% dive in 2020 net profit | ZAWYA MENA Edition
Dubai’s biggest bank Emirates NBD is set to distribute 40 percent cash dividend to shareholders even after its net profit slumped by more than half in 2020.
In its general assembly, the bank approved the payout at 40 fils per share, aggregating to an amount of 2.5 billion dirhams ($680 million).
Full-year net profit plunged 52 percent to 7 billion dirhams in 2020, compared with 14.5 billion dirhams in 2019.
The lower profit is on the back of higher provisions and after the gains made from the listing of Network International was not repeated in 2020. Excluding the Network International gain in 2019, the bank said its net profit was down 31 percent year-on-year.
Sheikh Ahmed Bin Saeed Al Maktoum, Emirates NBD chairman, noted that 2020 was indeed “an unprecedented year”, but that the government acted timely to protect public health and managed to re-open the economy with measured guidelines.
Dubai’s biggest bank Emirates NBD is set to distribute 40 percent cash dividend to shareholders even after its net profit slumped by more than half in 2020.
In its general assembly, the bank approved the payout at 40 fils per share, aggregating to an amount of 2.5 billion dirhams ($680 million).
Full-year net profit plunged 52 percent to 7 billion dirhams in 2020, compared with 14.5 billion dirhams in 2019.
The lower profit is on the back of higher provisions and after the gains made from the listing of Network International was not repeated in 2020. Excluding the Network International gain in 2019, the bank said its net profit was down 31 percent year-on-year.
Sheikh Ahmed Bin Saeed Al Maktoum, Emirates NBD chairman, noted that 2020 was indeed “an unprecedented year”, but that the government acted timely to protect public health and managed to re-open the economy with measured guidelines.
#Saudi Alkhorayef to list, trade on Tadawul beginning March 1 | ZAWYA MENA Edition
Saudi Alkhorayef to list, trade on Tadawul beginning March 1 | ZAWYA MENA Edition
The listing and trading of the shares of Alkhorayef Water & Power Technologies Co. shares will take place on Monday, March 1.
The stock, which has been assigned the symbol 2081, will trade with +/- 30 percent daily price fluctuation limits and +/- 10 percent static price fluctuation limits for the first three days of trading, Tadawul said on Thursday.
From the fourth trading day onwards, the daily price fluctuation limits will revert to +/- 10% and the static price fluctuation limits will no longer apply, Tadawul said.
In a separate statement, the Securities Depository Center Co. (Edaa) said it has added the subscribed securities in Alkhorayef into the center’s accounts of eligible securities’ holders on Thursday.
Alkhorayef floated a 30 percent stake, or 7.5 million shares, in an initial public offering (IPO), out of which 90 percent was allocated to institutions and 10 percentto retail investors, according to Saudi Fransi Capital and EFG Hermes KSA who acted as the joint bookrunners for the IPO. The final price was set at 72 Saudi riyals ($19.20).
The listing and trading of the shares of Alkhorayef Water & Power Technologies Co. shares will take place on Monday, March 1.
The stock, which has been assigned the symbol 2081, will trade with +/- 30 percent daily price fluctuation limits and +/- 10 percent static price fluctuation limits for the first three days of trading, Tadawul said on Thursday.
From the fourth trading day onwards, the daily price fluctuation limits will revert to +/- 10% and the static price fluctuation limits will no longer apply, Tadawul said.
In a separate statement, the Securities Depository Center Co. (Edaa) said it has added the subscribed securities in Alkhorayef into the center’s accounts of eligible securities’ holders on Thursday.
Alkhorayef floated a 30 percent stake, or 7.5 million shares, in an initial public offering (IPO), out of which 90 percent was allocated to institutions and 10 percentto retail investors, according to Saudi Fransi Capital and EFG Hermes KSA who acted as the joint bookrunners for the IPO. The final price was set at 72 Saudi riyals ($19.20).
Oil hovers near 13-month highs as storm hits U.S. output, Fed assures rates staying low | Reuters
Oil hovers near 13-month highs as storm hits U.S. output, Fed assures rates staying low | Reuters
Oil prices extended gains for a fourth session on Thursday to reach the highest levels in more than 13 months, underpinned by an assurance that U.S. interest rates will stay low, and a sharp drop in U.S. crude output last week due to the storm in Texas.
Brent crude futures for April gained 37 cents, 0.6%, to $67.41 a barrel by 0718 GMT, while U.S. West Texas Intermediate crude for April was at $63.54 a barrel, up 32 cents, 0.5%.
Both contracts touched their highest since Jan. 8, 2020, earlier in the session with Brent at $67.49 and WTI at $63.67. The April Brent contract expires on Friday.
An assurance from the U.S. Federal Reserve that interest rates would stay low for a while weakened the U.S. dollar, while boosting investors’ risk appetite and global equity markets.
A severe winter storm in Texas has caused U.S. crude production to drop by more than 10%, or 1 million barrels per day (bpd) last week, the Energy Information Administration said on Wednesday.
Oil prices extended gains for a fourth session on Thursday to reach the highest levels in more than 13 months, underpinned by an assurance that U.S. interest rates will stay low, and a sharp drop in U.S. crude output last week due to the storm in Texas.
Brent crude futures for April gained 37 cents, 0.6%, to $67.41 a barrel by 0718 GMT, while U.S. West Texas Intermediate crude for April was at $63.54 a barrel, up 32 cents, 0.5%.
Both contracts touched their highest since Jan. 8, 2020, earlier in the session with Brent at $67.49 and WTI at $63.67. The April Brent contract expires on Friday.
An assurance from the U.S. Federal Reserve that interest rates would stay low for a while weakened the U.S. dollar, while boosting investors’ risk appetite and global equity markets.
A severe winter storm in Texas has caused U.S. crude production to drop by more than 10%, or 1 million barrels per day (bpd) last week, the Energy Information Administration said on Wednesday.
MIDEAST STOCKS-Most Gulf indexes rebound on global rally, higher oil prices | Nasdaq
MIDEAST STOCKS-Most Gulf indexes rebound on global rally, higher oil prices | Nasdaq
Most bourses in the Gulf rebounded in early trade on Thursday, tracking a rally in global equity markets and a jump in oil prices.
Oil prices extended gains for a fourth straight session to reach the highest levels in more than 13 months, underpinned by assurance of continued supportive measures by the U.S. Federal Reserve and a sharp drop in U.S. crude output.
Saudi's benchmark index .TASI was up 1.4%, aided by a 2.7% rise in Al Rajhi Bank 1120.SE and a 3.3% jump in Saudi Arabian Mining Company 1211.SE.
Elsewhere, Arab National Bank 1080.SE added 0.4% despite posting a sharp fall in 2020 profit, which it blamed on increase provision for credit losses and increase in operating expenses.
Separately, a declassified version of a U.S. intelligence report expected to be released later in the day, found that Saudi Crown Prince Mohammed bin Salman approved the 2018 killing of journalist Jamal Khashoggi, Reuters reported, citing four U.S. officials familiar with the matter.
On Wednesday, U.S. President Joe Biden told reporters that he had read the report and expected to speak soon by phone with Saudi Arabian King Salman, father of the crown prince.
In Dubai, the index .DFMGI advanced 1.1%, boosted by a 2.3% jump in its largest lender Emirates NBD ENBD.DU and a 0.8% increase in Dubai Islamic Bank DISB.DU.
Financials stocks also lifted the Abu Dhabi index .ADI, which was up 0.6% in early trade, with the country's largest lender First Abu Dhabi Bank FAB.AD rising 0.9%.
The United Arab Emirates is opening field hospitals to increase the health sector's capacity, state news agency WAM reported late on Tuesday.
The UAE has the second-highest COVID-19 vaccination rate in the world.
In Qatar, the index .QSI gained 1%, on track to end a six-day loosing streak.
Qatar National Bank (QNB) QNBK.QA, the Gulf's biggest bank by assets, strengthened 1.4%
Most bourses in the Gulf rebounded in early trade on Thursday, tracking a rally in global equity markets and a jump in oil prices.
Oil prices extended gains for a fourth straight session to reach the highest levels in more than 13 months, underpinned by assurance of continued supportive measures by the U.S. Federal Reserve and a sharp drop in U.S. crude output.
Saudi's benchmark index .TASI was up 1.4%, aided by a 2.7% rise in Al Rajhi Bank 1120.SE and a 3.3% jump in Saudi Arabian Mining Company 1211.SE.
Elsewhere, Arab National Bank 1080.SE added 0.4% despite posting a sharp fall in 2020 profit, which it blamed on increase provision for credit losses and increase in operating expenses.
Separately, a declassified version of a U.S. intelligence report expected to be released later in the day, found that Saudi Crown Prince Mohammed bin Salman approved the 2018 killing of journalist Jamal Khashoggi, Reuters reported, citing four U.S. officials familiar with the matter.
On Wednesday, U.S. President Joe Biden told reporters that he had read the report and expected to speak soon by phone with Saudi Arabian King Salman, father of the crown prince.
In Dubai, the index .DFMGI advanced 1.1%, boosted by a 2.3% jump in its largest lender Emirates NBD ENBD.DU and a 0.8% increase in Dubai Islamic Bank DISB.DU.
Financials stocks also lifted the Abu Dhabi index .ADI, which was up 0.6% in early trade, with the country's largest lender First Abu Dhabi Bank FAB.AD rising 0.9%.
The United Arab Emirates is opening field hospitals to increase the health sector's capacity, state news agency WAM reported late on Tuesday.
The UAE has the second-highest COVID-19 vaccination rate in the world.
In Qatar, the index .QSI gained 1%, on track to end a six-day loosing streak.
Qatar National Bank (QNB) QNBK.QA, the Gulf's biggest bank by assets, strengthened 1.4%
Wednesday, 24 February 2021
Oil rises after data shows slump in U.S. output amid Texas freeze | Reuters
Oil rises after data shows slump in U.S. output amid Texas freeze | Reuters
Oil prices climbed on Wednesday to fresh 13-month highs after U.S. government data showed a drop in crude output after a deep freeze disrupted production last week.
U.S. crude oil production dropped last week by more than 10%, or 1 million barrels per day, during the rare winter storm in Texas, equaling the largest weekly fall ever, the Energy Information Administration said. Refinery crude inputs dropped to the lowest since September 2008 as the freeze knocked out power to millions. [EIA/S]
“If you’re getting that kind of drop in one week of EIA production, you’re likely to get more after that,” said Phil Flynn, senior analyst at Price Futures in Chicago.
“There is some concern that this will be a long-term permanent production drop.”
Traffic at the Houston ship channel was slowly coming back to normal but terminals were still facing several issues. After nearly a quarter of national refining capacity was idled by the freeze, refineries have also started to come back online this week.
Brent crude futures rose $1.67, or 2.6%, to settle at $67.04 a barrel. The global benchmark hit a session high of $67.30 a barrel, its loftiest since Jan. 8, 2020.
U.S. West Texas Intermediate (WTI) crude futures ended $1.55, or 2.5%, higher at $63.22 a barrel, after touching $63.37, also their highest since Jan. 8, 2020.
The rally continued oil’s steady march to levels not seen since prior to the coronavirus pandemic as vaccine distribution increases and on forecasts for renewed demand.
Oil prices climbed on Wednesday to fresh 13-month highs after U.S. government data showed a drop in crude output after a deep freeze disrupted production last week.
U.S. crude oil production dropped last week by more than 10%, or 1 million barrels per day, during the rare winter storm in Texas, equaling the largest weekly fall ever, the Energy Information Administration said. Refinery crude inputs dropped to the lowest since September 2008 as the freeze knocked out power to millions. [EIA/S]
“If you’re getting that kind of drop in one week of EIA production, you’re likely to get more after that,” said Phil Flynn, senior analyst at Price Futures in Chicago.
“There is some concern that this will be a long-term permanent production drop.”
Traffic at the Houston ship channel was slowly coming back to normal but terminals were still facing several issues. After nearly a quarter of national refining capacity was idled by the freeze, refineries have also started to come back online this week.
Brent crude futures rose $1.67, or 2.6%, to settle at $67.04 a barrel. The global benchmark hit a session high of $67.30 a barrel, its loftiest since Jan. 8, 2020.
U.S. West Texas Intermediate (WTI) crude futures ended $1.55, or 2.5%, higher at $63.22 a barrel, after touching $63.37, also their highest since Jan. 8, 2020.
The rally continued oil’s steady march to levels not seen since prior to the coronavirus pandemic as vaccine distribution increases and on forecasts for renewed demand.
#Saudi Wealth Fund Commits $3 Billion to Build Mountain Resort - Bloomberg
Saudi Wealth Fund Commits $3 Billion to Build Mountain Resort - Bloomberg
Saudi Arabia’s sovereign wealth fund will invest almost $3 billion on a tourism project in a mountainous region near the kingdom’s border with Yemen.
The Public Investment Fund will provide 11 billion riyals to Soudah Development Co., which will build 2,700 hotel rooms and 1,300 homes in an area that includes Al-Soudah, the tallest peak in Saudi Arabia, according to Husameddin AlMadani, Soudah’s chief executive officer.
The kingdom has been largely shut off to foreign tourists for decades, while citizens preferred to go on holiday abroad. That’s changed with the rise of de facto ruler Crown Prince Mohammed Bin Salman, who’s trying to open up the country and diversify the economy from oil.
“Many of us living in Saudi Arabia didn’t know this destination existed,” AlMadani said in an interview. “I lived in Riyadh for thirty years before I knew that I could take an hour flight and see this beautiful place.”
 |
| Soudah mountains in southern Saudi Arabia Source: Soudah Development Co. |
The Public Investment Fund will provide 11 billion riyals to Soudah Development Co., which will build 2,700 hotel rooms and 1,300 homes in an area that includes Al-Soudah, the tallest peak in Saudi Arabia, according to Husameddin AlMadani, Soudah’s chief executive officer.
The kingdom has been largely shut off to foreign tourists for decades, while citizens preferred to go on holiday abroad. That’s changed with the rise of de facto ruler Crown Prince Mohammed Bin Salman, who’s trying to open up the country and diversify the economy from oil.
“Many of us living in Saudi Arabia didn’t know this destination existed,” AlMadani said in an interview. “I lived in Riyadh for thirty years before I knew that I could take an hour flight and see this beautiful place.”
OPEC+ to weigh modest oil output boost at meeting - sources | Reuters
OPEC+ to weigh modest oil output boost at meeting - sources | Reuters
OPEC+ oil producers will discuss a modest easing of oil supply curbs from April given a recovery in prices, OPEC+ sources said, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, cut output by a record 9.7 million bpd last year as demand collapsed due to the pandemic. As of February, it is still withholding 7.125 million bpd, about 7% of world demand.
In January OPEC+ slowed the pace of a planned output increase to match weaker-than-expected demand due to continued coronavirus lockdowns. Saudi Arabia made extra voluntary cuts for February and March.
Three OPEC+ sources said an output increase of 500,000 barrels per day from April looked possible without building up inventories, although updated supply and demand balances that ministers will consider at their March 4 meeting will determine their decision.
OPEC+ oil producers will discuss a modest easing of oil supply curbs from April given a recovery in prices, OPEC+ sources said, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, cut output by a record 9.7 million bpd last year as demand collapsed due to the pandemic. As of February, it is still withholding 7.125 million bpd, about 7% of world demand.
In January OPEC+ slowed the pace of a planned output increase to match weaker-than-expected demand due to continued coronavirus lockdowns. Saudi Arabia made extra voluntary cuts for February and March.
Three OPEC+ sources said an output increase of 500,000 barrels per day from April looked possible without building up inventories, although updated supply and demand balances that ministers will consider at their March 4 meeting will determine their decision.
Airline Cash Burn Could Be Double Previous Forecast, IATA Warns - Bloomberg
Airline Cash Burn Could Be Double Previous Forecast, IATA Warns - Bloomberg
Airlines could burn through as much as $95 billion this year as new coronavirus strains lead governments to extend travel restrictions, close to double the industry body’s previous forecast.
Even under a scenario that sees flights restored between developed economies in 2021, carriers may still consume $75 billion, compared with the $48 billion estimated in December, the International Air Transport Association said Wednesday.
Passenger traffic could be limited to as little as one-third of pre-pandemic levels, according to the trade body, which had predicted a 51% recovery toward the end of 2020 as the approval of vaccines stoked hopes for a rapid rebound. That was before new Covid-19 flareups led to fresh lockdowns and tougher curbs.
“We are concerned now that it’s going to take much longer for the industry to stop burning through cash, which obviously raised questions about survivability,” IATA Chief Economist Brian Pearce said in a media briefing. Carriers may require more government funding as a result, he said.
Airlines could burn through as much as $95 billion this year as new coronavirus strains lead governments to extend travel restrictions, close to double the industry body’s previous forecast.
Even under a scenario that sees flights restored between developed economies in 2021, carriers may still consume $75 billion, compared with the $48 billion estimated in December, the International Air Transport Association said Wednesday.
Passenger traffic could be limited to as little as one-third of pre-pandemic levels, according to the trade body, which had predicted a 51% recovery toward the end of 2020 as the approval of vaccines stoked hopes for a rapid rebound. That was before new Covid-19 flareups led to fresh lockdowns and tougher curbs.
“We are concerned now that it’s going to take much longer for the industry to stop burning through cash, which obviously raised questions about survivability,” IATA Chief Economist Brian Pearce said in a media briefing. Carriers may require more government funding as a result, he said.
Pioneer CEO Says U.S. Shale Will No Longer Be Threat to OPEC - Bloomberg
Pioneer CEO Says U.S. Shale Will No Longer Be Threat to OPEC - Bloomberg
Strong demand for crude oil and low growth rates from shale mean OPEC and its allies no longer need to be worried about competition for market share from the U.S., according to Pioneer Natural Resources Co.
“I’m still a strong believer that demand is going to come back strong, both on airlines and also driving around the world once we get herd immunity,” Chief Executive Officer Scott Sheffield said on a conference call today. “I’m confident that we can assume the Iranian barrels into the marketplace over time and then U.S. shale is no longer going to be a threat to OPEC and OPEC+.”
Covid-19 knocked about 2 million barrels a day from America’s overall oil production as demand cratered, and those supplies may not recover completely given the financial stress the industry has endured for the last few years. Investors are demanding lower output growth and more cash returns, even as oil prices rally.
Pioneer will limit production growth to 5% a year over the long term and plans to pay back three-quarters of its free cash flow to shareholders rather than spending on new drilling, Sheffield said.
Strong demand for crude oil and low growth rates from shale mean OPEC and its allies no longer need to be worried about competition for market share from the U.S., according to Pioneer Natural Resources Co.
“I’m still a strong believer that demand is going to come back strong, both on airlines and also driving around the world once we get herd immunity,” Chief Executive Officer Scott Sheffield said on a conference call today. “I’m confident that we can assume the Iranian barrels into the marketplace over time and then U.S. shale is no longer going to be a threat to OPEC and OPEC+.”
Covid-19 knocked about 2 million barrels a day from America’s overall oil production as demand cratered, and those supplies may not recover completely given the financial stress the industry has endured for the last few years. Investors are demanding lower output growth and more cash returns, even as oil prices rally.
Pioneer will limit production growth to 5% a year over the long term and plans to pay back three-quarters of its free cash flow to shareholders rather than spending on new drilling, Sheffield said.
#SaudiArabia gives final price guidance for euro-denominated bonds - document | ZAWYA MENA Edition
Saudi Arabia gives final price guidance for euro-denominated bonds - document | ZAWYA MENA Edition
Saudi Arabia tightened price guidance for a euro-denominated bond deal comprising tranches of three and nine years after receiving over 4.9 billion euros in orders for the debt sale, a document showed on Wednesday.
It gave final price guidance of around 45 bps plus or minus 5 bps over mid-swaps for the three-year and around 75 bps plus or minus 5 bps over mid-swaps for the nine-year notes, the document from one of the banks on the deal showed.
Initial price guidance was around 60 bps over mid-swaps for the three-year portion around 90 bps over mid-swaps for the nine-year bonds.
BNP Paribas , Goldman Sachs , HSBC , Citi , JPMorgan , Standard Chartered and Samba Capital are arranging the deal, which is expected to close later on Wednesday.
It gave final price guidance of around 45 bps plus or minus 5 bps over mid-swaps for the three-year and around 75 bps plus or minus 5 bps over mid-swaps for the nine-year notes, the document from one of the banks on the deal showed.
Initial price guidance was around 60 bps over mid-swaps for the three-year portion around 90 bps over mid-swaps for the nine-year bonds.
BNP Paribas , Goldman Sachs , HSBC , Citi , JPMorgan , Standard Chartered and Samba Capital are arranging the deal, which is expected to close later on Wednesday.
Office launched to spearhead #UAE anti-money laundering efforts | The National
Office launched to spearhead UAE anti-money laundering efforts | The National
National efforts to combat money launderers, entities and individuals suspected of financing terrorists and organised crime are to be led by a new UAE institution, launched officially on Wednesday.
The Executive Office of Anti-Money Laundering and Counter Terrorism Financing, which is affiliated with the Ministry of Foreign Affairs and International Co-operation, will help protect the integrity of the UAE's financial system and "actively pursue those who abuse it for illicit means", said Hamid Al Zaabi, the director general of the Office.
“It’s an important moment for the UAE. The Office will be acting as a national co-ordinator with internal, intergovernmental and international organisations to tackle money laundering and crack down on the financiers of terror,” said Mr Al Zaabi.
The launch of the Office is part of a country-wide series of measures to tackle money laundering in the UAE.
The Office aims at protecting vital financial interests undermined by dirty money, illicit finance and the funding of terrorism.
National efforts to combat money launderers, entities and individuals suspected of financing terrorists and organised crime are to be led by a new UAE institution, launched officially on Wednesday.
The Executive Office of Anti-Money Laundering and Counter Terrorism Financing, which is affiliated with the Ministry of Foreign Affairs and International Co-operation, will help protect the integrity of the UAE's financial system and "actively pursue those who abuse it for illicit means", said Hamid Al Zaabi, the director general of the Office.
“It’s an important moment for the UAE. The Office will be acting as a national co-ordinator with internal, intergovernmental and international organisations to tackle money laundering and crack down on the financiers of terror,” said Mr Al Zaabi.
The launch of the Office is part of a country-wide series of measures to tackle money laundering in the UAE.
The Office aims at protecting vital financial interests undermined by dirty money, illicit finance and the funding of terrorism.
New Finablr Owners in Merger Talks With Bahraini Payments Firm - Bloomberg
New Finablr Owners in Merger Talks With Bahraini Payments Firm - Bloomberg
The UAE-Israeli consortium that acquired UAE Exchange is in merger talks with Bahrain’s BFC Group Holdings to create a Middle Eastern remittances and currency firm with more than 24 million customers in 30 countries.
Prism Group AG and Abu Dhabi’s Royal Strategic Partners teamed up in December to buy the assets of Finablr Plc, the London-listed payments firm that collapsed after disclosing more than a $1 billion in hidden debts.
The merger discussions are at an advanced stage and are expected to be finalized by the second quarter, according to a statement from Prism and Royal Strategic Partners. It is subject to regulatory approvals in India, Bahrain and Kuwait.
“The deal would create the largest remittance services and currency exchange group in the MENA region,” the statement said.
The UAE-Israeli consortium that acquired UAE Exchange is in merger talks with Bahrain’s BFC Group Holdings to create a Middle Eastern remittances and currency firm with more than 24 million customers in 30 countries.
Prism Group AG and Abu Dhabi’s Royal Strategic Partners teamed up in December to buy the assets of Finablr Plc, the London-listed payments firm that collapsed after disclosing more than a $1 billion in hidden debts.
The merger discussions are at an advanced stage and are expected to be finalized by the second quarter, according to a statement from Prism and Royal Strategic Partners. It is subject to regulatory approvals in India, Bahrain and Kuwait.
“The deal would create the largest remittance services and currency exchange group in the MENA region,” the statement said.
NBK's Al Bahar Sees #Kuwait Government Pushing New Projects Soon: Video - Bloomberg video
NBK's Al Bahar Sees Kuwait Government Pushing New Projects Soon: Video - Bloomberg
Shaikha Khaled Al Bahar, NBK, Deputy Group CEO discusses Kuwait's spiraling deficit. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Saudi imports from #Turkey tumble in December after informal boycott | Reuters
Saudi imports from Turkey tumble in December after informal boycott | Reuters
The value of Saudi Arabia’s imports from Turkey in December dropped to their lowest level in at least a year, Saudi official data showed on Wednesday, on the back of an informal boycott by Saudi businessmen and retailers of Turkish products.
Political tensions spilled over into trade between the two regional powers last year after the kingdom’s biggest supermarket chains said they backed a boycott of Turkish imports that had been proposed by business leaders and Saudi social media influencers.
Turkey and Saudi Arabia have been at loggerheads since the 2011 uprisings across the Arab world when Riyadh accused Ankara of supporting Islamist political groups. Tensions escalated in 2018 over the murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate.
Imports from Turkey amounted to 50.6 million riyals ($13.5 million) in December, down from 182.2 million riyals in November, and from 1.06 billion riyals in December 2019, according to Saudi Arabia’s General Authority for Statistics.
The value of Saudi Arabia’s imports from Turkey in December dropped to their lowest level in at least a year, Saudi official data showed on Wednesday, on the back of an informal boycott by Saudi businessmen and retailers of Turkish products.
Political tensions spilled over into trade between the two regional powers last year after the kingdom’s biggest supermarket chains said they backed a boycott of Turkish imports that had been proposed by business leaders and Saudi social media influencers.
Turkey and Saudi Arabia have been at loggerheads since the 2011 uprisings across the Arab world when Riyadh accused Ankara of supporting Islamist political groups. Tensions escalated in 2018 over the murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate.
Imports from Turkey amounted to 50.6 million riyals ($13.5 million) in December, down from 182.2 million riyals in November, and from 1.06 billion riyals in December 2019, according to Saudi Arabia’s General Authority for Statistics.
#Qatar's Commercial Bank expected to sell $500 million AT1 bonds, sources say | Reuters
Qatar's Commercial Bank expected to sell $500 million AT1 bonds, sources say | Reuters
Qatar’s Commercial Bank indicated it expects to sell on Wednesday $500 million in Additional Tier-1 bonds non-callable for five years, two sources said, citing a bank document on the deal.
It gave initial price guidance of around 4.75% for the bonds, which are expected to launch later on Wednesday, said the sources, who declined to be identified as they are not authorised to speak to media.
Barclays, Credit Suisse, Deutsche Bank, HSBC, JPMorgan and QNB Capital are arranging the deal.
Qatar’s Commercial Bank indicated it expects to sell on Wednesday $500 million in Additional Tier-1 bonds non-callable for five years, two sources said, citing a bank document on the deal.
It gave initial price guidance of around 4.75% for the bonds, which are expected to launch later on Wednesday, said the sources, who declined to be identified as they are not authorised to speak to media.
Barclays, Credit Suisse, Deutsche Bank, HSBC, JPMorgan and QNB Capital are arranging the deal.
#Saudi oil export value falls nearly 30% in December - official data | Reuters
Saudi oil export value falls nearly 30% in December - official data | Reuters
The value of Saudi Arabia’s oil exports in December dropped nearly 30%, or 19.5 billion riyals ($5.2 billion), compared with the year before, official data showed on Wednesday.
The value of non-oil exports fell 7.7% in December to 18.4 billion riyals versus 20 billion riyals in December 2019. Oil’s share of total exports fell to 71.6% in December from 76.7% the year previously.
China remained Saudi Arabia’s main trading partner in December, accounting for 13.5 billion riyals out of its 64.8 billion riyals of total exports. In December 2019, the kingdom’s total exports value was 85.8 billion riyals.
Japan and India were Saudi Arabia’s next biggest export markets, with 7.5 billion and 6.3 billion riyals worth, respectively. The value of China’s imports was 9 billion riyals in December. The United States and United Arab Emirates followed, with 5.2 billion and 3.1 billion riyals, respectively.
The value of Saudi Arabia’s oil exports in December dropped nearly 30%, or 19.5 billion riyals ($5.2 billion), compared with the year before, official data showed on Wednesday.
The value of non-oil exports fell 7.7% in December to 18.4 billion riyals versus 20 billion riyals in December 2019. Oil’s share of total exports fell to 71.6% in December from 76.7% the year previously.
China remained Saudi Arabia’s main trading partner in December, accounting for 13.5 billion riyals out of its 64.8 billion riyals of total exports. In December 2019, the kingdom’s total exports value was 85.8 billion riyals.
Japan and India were Saudi Arabia’s next biggest export markets, with 7.5 billion and 6.3 billion riyals worth, respectively. The value of China’s imports was 9 billion riyals in December. The United States and United Arab Emirates followed, with 5.2 billion and 3.1 billion riyals, respectively.
Luxury Ride-Hailing App Pivots to Middle East as Lockdowns Bite - Bloomberg
Luxury Ride-Hailing App Pivots to Middle East as Lockdowns Bite - Bloomberg
A luxury ride-hailing app operating in Moscow, London and Paris is expanding into the Middle East as a “hedge” against lengthy lockdowns that have shattered the services industry in Europe.
Wheely will apply for an e-hailing license in Dubai in the coming weeks and open an office there as a hub for the Middle East, said founder and Chief Executive Officer Anton Chirkunov. Dubai is a top destination requested by Wheely customers, especially those traveling from Moscow, he said.
“We are now looking at these geographies as a hedge against restrictions,” Chirkunov said in a video interview from London, where Wheely moved its headquarters from Moscow just under two years ago. “We had southern France as the next step in our plan, but we don’t understand what’s going to happen in France in terms of restrictions, so we are looking at the Middle East instead as the next step.”
Wheely started serving wealthy Russians in Moscow in 2012 with its luxury Mercedes-Benz cars driven by chauffeurs wearing a suit and tie. The company says it now attracts a broader clientele beyond Russia’s borders.
A luxury ride-hailing app operating in Moscow, London and Paris is expanding into the Middle East as a “hedge” against lengthy lockdowns that have shattered the services industry in Europe.
Wheely will apply for an e-hailing license in Dubai in the coming weeks and open an office there as a hub for the Middle East, said founder and Chief Executive Officer Anton Chirkunov. Dubai is a top destination requested by Wheely customers, especially those traveling from Moscow, he said.
“We are now looking at these geographies as a hedge against restrictions,” Chirkunov said in a video interview from London, where Wheely moved its headquarters from Moscow just under two years ago. “We had southern France as the next step in our plan, but we don’t understand what’s going to happen in France in terms of restrictions, so we are looking at the Middle East instead as the next step.”
Wheely started serving wealthy Russians in Moscow in 2012 with its luxury Mercedes-Benz cars driven by chauffeurs wearing a suit and tie. The company says it now attracts a broader clientele beyond Russia’s borders.
#UAE aircraft lessor DAE sees rise in loss provisions as customer revenues impacted | ZAWYA MENA Edition
UAE aircraft lessor DAE sees rise in loss provisions as customer revenues impacted | ZAWYA MENA Edition
Loss provisions for financial assets is expected to increase further this year if the coronavirus pandemic lasts longer, major aircraft lessor Dubai Aerospace Enterprise (DAE) said.
The company reported lower lease revenue for last year as the outbreak took a toll on the commercial air travel industry.
It posted a profit of $228 million in 2020 compared to $377.5 million in 2019, and has so far supported more than 30 carriers impacted by the outbreak, with deferral relief packages hitting $180 million as of December 31, 2020.
“Revenues for our customers have been disrupted in significant, unprecedented and unforeseen ways as governmental authorities around the world put in place necessary isolation measures to contain the spread of COVID-19,” DAE said in a statement to Nasdaq.
Headquartered in Dubai, DAE is one of the world’s biggest aircraft lessors, serving aviation companies in more than 60 countries. It acquires and leases commercial aircraft to airlines, as well as trades and manages aircraft on lease for third-party investors.
Loss provisions for financial assets is expected to increase further this year if the coronavirus pandemic lasts longer, major aircraft lessor Dubai Aerospace Enterprise (DAE) said.
The company reported lower lease revenue for last year as the outbreak took a toll on the commercial air travel industry.
It posted a profit of $228 million in 2020 compared to $377.5 million in 2019, and has so far supported more than 30 carriers impacted by the outbreak, with deferral relief packages hitting $180 million as of December 31, 2020.
“Revenues for our customers have been disrupted in significant, unprecedented and unforeseen ways as governmental authorities around the world put in place necessary isolation measures to contain the spread of COVID-19,” DAE said in a statement to Nasdaq.
Headquartered in Dubai, DAE is one of the world’s biggest aircraft lessors, serving aviation companies in more than 60 countries. It acquires and leases commercial aircraft to airlines, as well as trades and manages aircraft on lease for third-party investors.
#Saudi GDP set to rise 2.1% in 2021; second COVID-19 wave could derail economy | ZAWYA MENA Edition
Saudi GDP set to rise 2.1% in 2021; second COVID-19 wave could derail economy | ZAWYA MENA Edition
Saudi Arabian investment bank, Jadwa Investment, expect a broad-based recovery for the kingdom in 2021 with both oil and non-oil sectors contributing to the rebound.
“Our forecast assumes between 15-20 percent of the adult population being vaccinated against COVID-19 by mid-year, and 70 percent by year end. As such, we see a quarter-on-quarter improvement in the Saudi non-oil economy, with this recovery being more vigorous in the second half of 2021, Jadwa said in a new report.
Jadwa, however, cautioned that the range of potential effects of COVID-19 on the economy remained uncertain. The main risk in the outlook comes from a more prolonged and serious outbreak of a second wave of COVID-19, possibly through a variant of the disease, or due to a slower rollout of the vaccine than currently anticipated, it noted.
“In this context, the recovery in the Saudi economy during the year will not be smooth, with the recent suspension of recreational activities illustrating this point. As such, all economic risks in the year ahead are wholly skewed to the downside.”
Provisional full year GDP data for 2020 showed that the economy contracted by 4.1 percent.
Saudi Arabian investment bank, Jadwa Investment, expect a broad-based recovery for the kingdom in 2021 with both oil and non-oil sectors contributing to the rebound.
“Our forecast assumes between 15-20 percent of the adult population being vaccinated against COVID-19 by mid-year, and 70 percent by year end. As such, we see a quarter-on-quarter improvement in the Saudi non-oil economy, with this recovery being more vigorous in the second half of 2021, Jadwa said in a new report.
Jadwa, however, cautioned that the range of potential effects of COVID-19 on the economy remained uncertain. The main risk in the outlook comes from a more prolonged and serious outbreak of a second wave of COVID-19, possibly through a variant of the disease, or due to a slower rollout of the vaccine than currently anticipated, it noted.
“In this context, the recovery in the Saudi economy during the year will not be smooth, with the recent suspension of recreational activities illustrating this point. As such, all economic risks in the year ahead are wholly skewed to the downside.”
Provisional full year GDP data for 2020 showed that the economy contracted by 4.1 percent.
Oil prices slip on surprise build in U.S. crude stocks | Reuters
Oil prices slip on surprise build in U.S. crude stocks | Reuters
Oil prices were lower on Wednesday after industry data showed a surprise build in U.S. crude stocks last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut.
Crude stockpiles rose by 1 million barrels in the week to Feb. 19, the American Petroleum Institute (API) reported on Tuesday, against estimates for a draw of 5.2 million barrels in a Reuters poll.
API data showed refinery crude runs fell by 2.2 million bpd.
Brent crude futures slipped by 6 cents, or 0.1%, to $65.31 a barrel at 0748 GMT, but narrowed losses earlier in the session that sent it to as low as $64.80.
U.S. West Texas Intermediate (WTI) crude futures were down 29 cents or 0.5% at $61.38 a barrel, after trading as low as $60.97 earlier on Wednesday.
Oil prices were lower on Wednesday after industry data showed a surprise build in U.S. crude stocks last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut.
Crude stockpiles rose by 1 million barrels in the week to Feb. 19, the American Petroleum Institute (API) reported on Tuesday, against estimates for a draw of 5.2 million barrels in a Reuters poll.
API data showed refinery crude runs fell by 2.2 million bpd.
Brent crude futures slipped by 6 cents, or 0.1%, to $65.31 a barrel at 0748 GMT, but narrowed losses earlier in the session that sent it to as low as $64.80.
U.S. West Texas Intermediate (WTI) crude futures were down 29 cents or 0.5% at $61.38 a barrel, after trading as low as $60.97 earlier on Wednesday.
MIDEAST STOCKS- #Saudi index leads major Gulf markets lower | Nasdaq
MIDEAST STOCKS-Saudi index leads major Gulf markets lower | Nasdaq
Major stock markets in the Gulf fell in early trade on Wednesday, led by losses in financials, with Saudi index leading the way.
Oil prices, a key catalyst for the Gulf's financial markets, retreated after industry data showed a surprise build in U.S. crude stocks. O/R
Saudi's benchmark index .TASI dropped 0.8%, weighed down by a decline in Al Rajhi Bank 1120.SE and oil giant Saudi Aramco 2222.SE.
However, HSBC said Aramco's prospects look more positive and promising for 2021, hinting at declining net debt and a possible dividend hike.
HSBC expects the oil giant to return to positive organic free cash flow of $5 billion in 2021, with Brent at $56 per barrel.
Meanwhile, U.S. President Joe Biden plans to call Saudi Arabia's King Salman on Wednesday, ahead of the public release of an intelligence report about the murder of journalist Jamal Khashoggi, Axios reported late on Tuesday, citing a source. .
The call, if it happens as scheduled, will be Biden's first conversation as president with the Saudi king, according to Axios.
In Dubai, the index .DFMGI dropped 0.4%, with blue-chip developer Emaar Properties EMAR.DU falling 1.7%, while Union Properties UPRO.DU was down 3%.
The Abu Dhabi index .ADI slipped up 0.2%, driven down by a 0.3% drop in market heavyweight First Abu Dhabi Bank FAB.AD.
The Qatari index .QSI eased 0.1%, on course to extend losses for a sixth-day in a row. Commercial Bank COMB.QA lost 1.2% and Qatar Islamic Bank QISB.QA declined 0.8%.
Major stock markets in the Gulf fell in early trade on Wednesday, led by losses in financials, with Saudi index leading the way.
Oil prices, a key catalyst for the Gulf's financial markets, retreated after industry data showed a surprise build in U.S. crude stocks. O/R
Saudi's benchmark index .TASI dropped 0.8%, weighed down by a decline in Al Rajhi Bank 1120.SE and oil giant Saudi Aramco 2222.SE.
However, HSBC said Aramco's prospects look more positive and promising for 2021, hinting at declining net debt and a possible dividend hike.
HSBC expects the oil giant to return to positive organic free cash flow of $5 billion in 2021, with Brent at $56 per barrel.
Meanwhile, U.S. President Joe Biden plans to call Saudi Arabia's King Salman on Wednesday, ahead of the public release of an intelligence report about the murder of journalist Jamal Khashoggi, Axios reported late on Tuesday, citing a source. .
The call, if it happens as scheduled, will be Biden's first conversation as president with the Saudi king, according to Axios.
In Dubai, the index .DFMGI dropped 0.4%, with blue-chip developer Emaar Properties EMAR.DU falling 1.7%, while Union Properties UPRO.DU was down 3%.
The Abu Dhabi index .ADI slipped up 0.2%, driven down by a 0.3% drop in market heavyweight First Abu Dhabi Bank FAB.AD.
The Qatari index .QSI eased 0.1%, on course to extend losses for a sixth-day in a row. Commercial Bank COMB.QA lost 1.2% and Qatar Islamic Bank QISB.QA declined 0.8%.
Tuesday, 23 February 2021
Oil settles mixed amid post-storm uncertainty | Reuters
Oil settles mixed amid post-storm uncertainty | Reuters
Oil prices settled near year-long highs on Tuesday on signs that global coronavirus restrictions were being eased, although concerns about the pace of a U.S. economic recovery and the return of Texas oil production kept gains in check.
U.S. crude settled down 3 cents to $61.67 a barrel, still close to its highest levels since January 2020. Brent crude LCOc1 settled up 13 cents, or 0.2%, to $65.37 a barrel.
Both contracts rose more than $1 earlier before retreating.
Shale oil producers and refiners in the southern United States are slowly resuming production after 2 million barrels per day (bpd) of crude output and nearly 20% of U.S. refining capacity shut down because of last week’s winter storm.
Traffic at the Houston ship channel was slowly returning to normal. Production, however, was not expected to fully restart soon and some shale producers forecast lower oil output in the first quarter.
Oil prices settled near year-long highs on Tuesday on signs that global coronavirus restrictions were being eased, although concerns about the pace of a U.S. economic recovery and the return of Texas oil production kept gains in check.
U.S. crude settled down 3 cents to $61.67 a barrel, still close to its highest levels since January 2020. Brent crude LCOc1 settled up 13 cents, or 0.2%, to $65.37 a barrel.
Both contracts rose more than $1 earlier before retreating.
Shale oil producers and refiners in the southern United States are slowly resuming production after 2 million barrels per day (bpd) of crude output and nearly 20% of U.S. refining capacity shut down because of last week’s winter storm.
Traffic at the Houston ship channel was slowly returning to normal. Production, however, was not expected to fully restart soon and some shale producers forecast lower oil output in the first quarter.
Tap into #UAE blue-chip stocks the 'ETF' way as Chimera closes second fund | Markets – Gulf News
Tap into UAE blue-chip stocks the 'ETF' way as Chimera closes second fund | Markets – Gulf News
Want to get into UAE stock markets, but don’t know which blue-chips to pick? Try an ETF (Exchange Traded Fund), which have in the global marketplace been the go-to method for investors to access everything from stocks to gold.
Now, investors get an opportunity to access some of the most heavily traded UAE stocks via an ETF – the Chimera S&P UAE UCITS ETF that “replicates and tracks the performance of the S&P UAE BMI Liquid 30/35 Index”. This would mean investors get to track and share the fortunes of the UAE’s leading real estate and banking stocks, which are highly liquid. Plus, there’s an emerging group of stocks that investors are clambering onto in recent months, such as IHC, the Abu Dhabi based holding company for diversified businesses.
The index comprises the “largest and most liquid stocks” listed on ADX, which gives “investors a broad exposure, across all sectors, to the UAE markets”.
The ETF comes from Chimera Capital Ltd.. Operating out of Abu Dhabi Global Market. But why an ETF specifically? The company had launched its first UAE-focussed ETF - Chimera S&P UAE Shariah ETF - in July last, which pulled in Dh50 million in the first six months.
Want to get into UAE stock markets, but don’t know which blue-chips to pick? Try an ETF (Exchange Traded Fund), which have in the global marketplace been the go-to method for investors to access everything from stocks to gold.
Now, investors get an opportunity to access some of the most heavily traded UAE stocks via an ETF – the Chimera S&P UAE UCITS ETF that “replicates and tracks the performance of the S&P UAE BMI Liquid 30/35 Index”. This would mean investors get to track and share the fortunes of the UAE’s leading real estate and banking stocks, which are highly liquid. Plus, there’s an emerging group of stocks that investors are clambering onto in recent months, such as IHC, the Abu Dhabi based holding company for diversified businesses.
The index comprises the “largest and most liquid stocks” listed on ADX, which gives “investors a broad exposure, across all sectors, to the UAE markets”.
The ETF comes from Chimera Capital Ltd.. Operating out of Abu Dhabi Global Market. But why an ETF specifically? The company had launched its first UAE-focussed ETF - Chimera S&P UAE Shariah ETF - in July last, which pulled in Dh50 million in the first six months.
#Dubai Aerospace Enterprise confirms talks on to lease its Boeing 737 MAX 8 | Aviation – Gulf News
Dubai Aerospace Enterprise confirms talks on to lease its Boeing 737 MAX 8 | Aviation – Gulf News
Dubai Aerospace Enterprise (DAE) is in talks with airlines about leasing the Boeing 737 MAX 8 aircraft in its fleet - days after UAE’s aviation regulator lifted its ban on the airplane.
“We are continuously in discussions to provide them with leasing solutions... and it is fair to say that a good number of these discussions are about the 737 MAX 8,” said Firoz Tarapore, CEO of DAE. “Over time, we expect the 737 MAX 8 alongside the Airbus A320neo family to be the cornerstone of the DAE fleet.”
The Dubai-based aircraft lessor has 20 Boeing 737 MAX 8 aircraft with operators. This represents 7 per cent of its owned fleet.
Dubai Aerospace Enterprise (DAE) is in talks with airlines about leasing the Boeing 737 MAX 8 aircraft in its fleet - days after UAE’s aviation regulator lifted its ban on the airplane.
“We are continuously in discussions to provide them with leasing solutions... and it is fair to say that a good number of these discussions are about the 737 MAX 8,” said Firoz Tarapore, CEO of DAE. “Over time, we expect the 737 MAX 8 alongside the Airbus A320neo family to be the cornerstone of the DAE fleet.”
The Dubai-based aircraft lessor has 20 Boeing 737 MAX 8 aircraft with operators. This represents 7 per cent of its owned fleet.
#Kuwait expects parliament to cooperate on solutions to budget financing - Finance Minister | Reuters
Kuwait expects parliament to cooperate on solutions to budget financing - Finance Minister | Reuters
Kuwait said on Tuesday it was confident parliament would cooperate to find solutions and implement financial reforms to cover its deficit, the finance ministry said in a statement.
It said the oil-rich Gulf state expects a budget deficit of 55.4 billion Kuwaiti dinars ($183.29 billion) from fiscal year 2020/21 to fiscal year 2024/25, but that the country’s finances remained “strong” due to the Future Generations Fund, Kuwait’s largest state fund.
Kuwait said on Tuesday it was confident parliament would cooperate to find solutions and implement financial reforms to cover its deficit, the finance ministry said in a statement.
It said the oil-rich Gulf state expects a budget deficit of 55.4 billion Kuwaiti dinars ($183.29 billion) from fiscal year 2020/21 to fiscal year 2024/25, but that the country’s finances remained “strong” due to the Future Generations Fund, Kuwait’s largest state fund.
#Kuwait Projects $183 Billion Cumulative Deficit Over Five Years - Bloomberg
Kuwait Projects $183 Billion Cumulative Deficit Over Five Years - Bloomberg
Kuwait’s government projects a cumulative budget deficit of 55.4 billion dinars ($183 billion) in the five fiscal years ending on March 31, 2025, Finance Minister Khalifa Hamada said in a statement.
Total expenses during that period are projected at 114.1 billion dinars, with 71%, or 81 billion dinars, allocated to salaries and subsidies, the minister said. Issuing bonds and withdrawing cash from the country’s sovereign wealth fund aren’t solutions to reform and are merely temporary measures to finance the deficit, Hamada said.
The minister also said:
Kuwait’s government projects a cumulative budget deficit of 55.4 billion dinars ($183 billion) in the five fiscal years ending on March 31, 2025, Finance Minister Khalifa Hamada said in a statement.
Total expenses during that period are projected at 114.1 billion dinars, with 71%, or 81 billion dinars, allocated to salaries and subsidies, the minister said. Issuing bonds and withdrawing cash from the country’s sovereign wealth fund aren’t solutions to reform and are merely temporary measures to finance the deficit, Hamada said.
The minister also said:
- The country must address its liquidity problem as soon as possible, while implementing reforms to cut spending and boost non-oil income.
- Statement comes in response to a draft bill the government submitted to parliament that would allow withdrawals from the Future Generations Fund.
#SaudiArabia Turns to Euro-Bond Amid Near Record-Low Yields - Bloomberg
Saudi Arabia Turns to Euro-Bond Amid Near Record-Low Yields - Bloomberg
Saudi Arabia is tapping international bond markets for the second straight month, marketing euro-denominated debt to take advantage of ultra-low borrowing costs and help reduce its reliance on dollar debt.
The world’s largest crude exporter is planning a two-part, benchmark-sized deal with a three-year and nine-year offering, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak publicly. Saudi Arabia raised $5 billion from a two-part dollar-bond offering in January.
The kingdom has picked BNP Paribas SA, Goldman Sachs Group Inc. and HSBC Holdings Plc as global coordinators, and Citigroup Inc, JPMorgan Chase & Co, Standard Chartered Plc and Samba Capital as passive joint bookrunners to organize a global investor call on Tuesday.
Saudi Arabia is tapping international bond markets for the second straight month, marketing euro-denominated debt to take advantage of ultra-low borrowing costs and help reduce its reliance on dollar debt.
The world’s largest crude exporter is planning a two-part, benchmark-sized deal with a three-year and nine-year offering, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak publicly. Saudi Arabia raised $5 billion from a two-part dollar-bond offering in January.
The kingdom has picked BNP Paribas SA, Goldman Sachs Group Inc. and HSBC Holdings Plc as global coordinators, and Citigroup Inc, JPMorgan Chase & Co, Standard Chartered Plc and Samba Capital as passive joint bookrunners to organize a global investor call on Tuesday.
Apollo, GIP Said to Bid for $10 Billion Aramco Pipeline Stake - Bloomberg
Apollo, GIP Said to Bid for $10 Billion Aramco Pipeline Stake - Bloomberg
Apollo Global Management Inc. and Global Infrastructure Partners are among suitors that bid for a roughly $10 billion stake in Saudi Aramco’s oil pipelines, people familiar with the matter said.
Canada’s Brookfield Asset Management Inc., BlackRock Inc., sovereign wealth fund China Investment Corp. and Beijing-backed Silk Road Fund Co. have also made non-binding offers, the people said, asking not to be identified as the matter is private. Pension funds in Abu Dhabi and Saudi Arabia have separately submitted initial bids, the people said.
Aramco is studying the proposals before deciding which companies will be invited to make binding offers, the people said. Bidders may team up later in the process, the people said. Some prominent family-owned groups in Saudi Arabia are also considering partnering with other investors, according to the people.
The world’s largest oil company is mulling asset disposals as a way of maintaining its $75 billion of annual dividend payments, almost all of which go to the Saudi government. That payout -- the biggest of any listed company in the world -- became harder to sustain after the coronavirus pandemic caused crude prices to plunge last year.
While prices have risen since November, that’s in large part because members of the OPEC+ cartel, including Saudi Arabia, have restricted production.
Apollo Global Management Inc. and Global Infrastructure Partners are among suitors that bid for a roughly $10 billion stake in Saudi Aramco’s oil pipelines, people familiar with the matter said.
Canada’s Brookfield Asset Management Inc., BlackRock Inc., sovereign wealth fund China Investment Corp. and Beijing-backed Silk Road Fund Co. have also made non-binding offers, the people said, asking not to be identified as the matter is private. Pension funds in Abu Dhabi and Saudi Arabia have separately submitted initial bids, the people said.
Aramco is studying the proposals before deciding which companies will be invited to make binding offers, the people said. Bidders may team up later in the process, the people said. Some prominent family-owned groups in Saudi Arabia are also considering partnering with other investors, according to the people.
The world’s largest oil company is mulling asset disposals as a way of maintaining its $75 billion of annual dividend payments, almost all of which go to the Saudi government. That payout -- the biggest of any listed company in the world -- became harder to sustain after the coronavirus pandemic caused crude prices to plunge last year.
While prices have risen since November, that’s in large part because members of the OPEC+ cartel, including Saudi Arabia, have restricted production.
From Star Performer to Star Witness: A Cum-Ex Trader Cooperates - Bloomberg
From Star Performer to Star Witness: A Cum-Ex Trader Cooperates - Bloomberg
For an employee who raked in millions each year, one of Duet Group’s top traders maintained fairly irregular desk hours.
Some days he wouldn’t set foot at all inside the office on the fourth floor of Al Fattan Tower in Dubai’s financial center, according to former colleagues who asked not to be identified discussing corporate life. But for a few weeks each spring, when European companies dole out dividends, the trader -- whom Bloomberg is choosing to call A. for legal reasons -- would log long days at his desk and generate huge profits for his firm.
Those deals have come back to haunt Duet, after A. turned from a star performer to a star witness for German prosecutors. A.’s story reveals the far-reaching net that continues to entangle individuals and firms who were engaged in so-called Cum-Ex transactions, almost a decade after the dividend-tax practice ended. London-based Duet at its peak had several billion dollars under management and allegedly played a key role in arranging the deals.
A., who left the firm in 2015, is one of the first traders to cooperate with an investigation into what German lawmakers say is one of the biggest tax heists in European history. He joins a handful of finance industry figures who did Cum-Ex trades at other firms and have provided testimony about former employers, colleagues and counterparties -- cooperation that has helped some of them stay out of jail.
This story is based on London court filings and an indictment against two bankers -- convicted last year -- assembled by German authorities, as well as conversations with more than a dozen people involved in the probe and familiar with Duet’s operations. They asked not to be identified because details of the case remain confidential.
For an employee who raked in millions each year, one of Duet Group’s top traders maintained fairly irregular desk hours.
Some days he wouldn’t set foot at all inside the office on the fourth floor of Al Fattan Tower in Dubai’s financial center, according to former colleagues who asked not to be identified discussing corporate life. But for a few weeks each spring, when European companies dole out dividends, the trader -- whom Bloomberg is choosing to call A. for legal reasons -- would log long days at his desk and generate huge profits for his firm.
Those deals have come back to haunt Duet, after A. turned from a star performer to a star witness for German prosecutors. A.’s story reveals the far-reaching net that continues to entangle individuals and firms who were engaged in so-called Cum-Ex transactions, almost a decade after the dividend-tax practice ended. London-based Duet at its peak had several billion dollars under management and allegedly played a key role in arranging the deals.
A., who left the firm in 2015, is one of the first traders to cooperate with an investigation into what German lawmakers say is one of the biggest tax heists in European history. He joins a handful of finance industry figures who did Cum-Ex trades at other firms and have provided testimony about former employers, colleagues and counterparties -- cooperation that has helped some of them stay out of jail.
This story is based on London court filings and an indictment against two bankers -- convicted last year -- assembled by German authorities, as well as conversations with more than a dozen people involved in the probe and familiar with Duet’s operations. They asked not to be identified because details of the case remain confidential.
#Saudi real GDP to return to pre-COVID-19 levels in 2022, says S&P | ZAWYA MENA Edition
Saudi real GDP to return to pre-COVID-19 levels in 2022, says S&P | ZAWYA MENA Edition
Saudi Arabia’s economy will recover from 2021 to 2022 on the back of higher oil demand and private consumption, ratings agency S&P Global said on Tuesday.
However, the real gross domestic product (GDP) will not return to 2019 levels until 2022, as the expiry of OPEC+ quotas and higher oil prices boost economic activity to nearly 3 percent, the agency said in its report, “Saudi Banking Sector 2021 Outlook”.
Credit growth, which picked up in 2020 based on stronger mortgage and lending for small and medium-sized enterprises (SMEs), is set to stay strong in nominal terms but will slow down due to high base effect from 2021 to 202
Corporate credit growth may pick up as public investment fund programs generate business for contractors. However, SME credit could slow, as the central bank’s deferral programs are wound down, the report said.
Cost of risk is also likely to stay elevated in 2021 at about 120 basis points. “This reflects our view that the volatile global health situation and international travel restrictions still weigh on the economy,” cited the report.
Saudi Arabia’s economy will recover from 2021 to 2022 on the back of higher oil demand and private consumption, ratings agency S&P Global said on Tuesday.
However, the real gross domestic product (GDP) will not return to 2019 levels until 2022, as the expiry of OPEC+ quotas and higher oil prices boost economic activity to nearly 3 percent, the agency said in its report, “Saudi Banking Sector 2021 Outlook”.
Credit growth, which picked up in 2020 based on stronger mortgage and lending for small and medium-sized enterprises (SMEs), is set to stay strong in nominal terms but will slow down due to high base effect from 2021 to 202
Corporate credit growth may pick up as public investment fund programs generate business for contractors. However, SME credit could slow, as the central bank’s deferral programs are wound down, the report said.
Cost of risk is also likely to stay elevated in 2021 at about 120 basis points. “This reflects our view that the volatile global health situation and international travel restrictions still weigh on the economy,” cited the report.
#SaudiArabia hires banks for euro-denominated bond sale -document | ZAWYA MENA Edition
Saudi Arabia hires banks for euro-denominated bond sale -document | ZAWYA MENA Edition
Saudi Arabia has hired banks to arrange an investor call ahead of a planned sale of euro-denominated bonds split into tranches of three and nine years, a document showed on Tuesday.
BNP Paribas, Goldman Sachs, and HSBC were mandated as global coordinators for the potential debt sale, which is subject to market conditions, according to the document issued by one of the banks leading the deal and seen by Reuters.
Saudi Arabia has hired banks to arrange an investor call ahead of a planned sale of euro-denominated bonds split into tranches of three and nine years, a document showed on Tuesday.
BNP Paribas, Goldman Sachs, and HSBC were mandated as global coordinators for the potential debt sale, which is subject to market conditions, according to the document issued by one of the banks leading the deal and seen by Reuters.
BofA hikes 2021 Brent price view by $10/bbl on strong oil balances | Reuters
BofA hikes 2021 Brent price view by $10/bbl on strong oil balances | Reuters
Bank of America (BofA) Global Research lifted its forecast for Brent crude oil prices for this year citing tighter supplies due to the Texas freeze and OPEC+ output curbs and unmatched global monetary stimulus, it said in a note dated Monday.
The bank now expects Brent crude oil to average $60 per barrel in 2021, up from a previous estimate of $50. BofA also forecasts West Texas Intermediate (WTI) crude prices to average $57 a barrel this year.
Brent prices could temporarily spike to $70 a barrel in the second quarter of the year, the bank’s analysts said in a note.
Brent crude was up 0.4% at $65.51 a barrel by 1313 GMT, and U.S. crude rose 0.5% to $62.00 a barrel.
Oil prices rose on Tuesday, helped by the likely easing of COVID-19 lockdowns globally, positive economic forecasts and lower output as U.S. supplies were slow to return after the deep freeze in Texas shut down crude production.
Bank of America (BofA) Global Research lifted its forecast for Brent crude oil prices for this year citing tighter supplies due to the Texas freeze and OPEC+ output curbs and unmatched global monetary stimulus, it said in a note dated Monday.
The bank now expects Brent crude oil to average $60 per barrel in 2021, up from a previous estimate of $50. BofA also forecasts West Texas Intermediate (WTI) crude prices to average $57 a barrel this year.
Brent prices could temporarily spike to $70 a barrel in the second quarter of the year, the bank’s analysts said in a note.
Brent crude was up 0.4% at $65.51 a barrel by 1313 GMT, and U.S. crude rose 0.5% to $62.00 a barrel.
Oil prices rose on Tuesday, helped by the likely easing of COVID-19 lockdowns globally, positive economic forecasts and lower output as U.S. supplies were slow to return after the deep freeze in Texas shut down crude production.
Higher oil prices push #Saudi index up, while Egypt declines | Reuters
Higher oil prices push Saudi index up, while Egypt declines | Reuters
Gulf markets ended mostly higher on Tuesday, with Saudi Arabia’s benchmark index leading gains, while Egypt’s blue-chip index slid more than 1 percent.
The Saudi index closed 0.8% higher, its biggest daily percentage gain in over a week, buoyed by higher oil prices.
The rise in crude prices was underpinned by the likely easing of COVID-19 lockdowns around the world, positive economic forecasts and lower output as U.S. supplies were slow to return after a deep freeze in Texas shut down production. [O/R]
Financial stocks boosted the index, with Al Rajhi Bank jumping 4% and National Commercial Bank, the country’s largest lender, advancing 1.8%.
Dubai’s main share index snapped five sessions of losses to end marginally higher at 0.2%, bolstered by a 3% rise in Emirates Integrated Telecommunications Company.
During the day the index rose more than 1%.
“The optimism over the drop in coronavirus cases in the country is playing a good role in reviving investors’ appetite,” said Wael Makarem, market analyst at ICM.com.
The Abu Dhabi index mirrored Dubai, closing up about 0.2%, with Emirates Telecommunications Group (Etisalat) gaining nearly 1% after its board recommended a total dividend of 1.2 dirhams per share for 2020.
Bucking the trend, the Qatari index fell for the fifth consecutive session to end 0.6% lower.
Qatar National Bank, the Gulf’s largest lender by assets, reversed early gains and dropped 3.4%.
Outside the Gulf, Egypt’s blue chip index fell more than 1%, after rising for the past two sessions.
Gulf markets ended mostly higher on Tuesday, with Saudi Arabia’s benchmark index leading gains, while Egypt’s blue-chip index slid more than 1 percent.
The Saudi index closed 0.8% higher, its biggest daily percentage gain in over a week, buoyed by higher oil prices.
The rise in crude prices was underpinned by the likely easing of COVID-19 lockdowns around the world, positive economic forecasts and lower output as U.S. supplies were slow to return after a deep freeze in Texas shut down production. [O/R]
Financial stocks boosted the index, with Al Rajhi Bank jumping 4% and National Commercial Bank, the country’s largest lender, advancing 1.8%.
Dubai’s main share index snapped five sessions of losses to end marginally higher at 0.2%, bolstered by a 3% rise in Emirates Integrated Telecommunications Company.
During the day the index rose more than 1%.
“The optimism over the drop in coronavirus cases in the country is playing a good role in reviving investors’ appetite,” said Wael Makarem, market analyst at ICM.com.
The Abu Dhabi index mirrored Dubai, closing up about 0.2%, with Emirates Telecommunications Group (Etisalat) gaining nearly 1% after its board recommended a total dividend of 1.2 dirhams per share for 2020.
Bucking the trend, the Qatari index fell for the fifth consecutive session to end 0.6% lower.
Qatar National Bank, the Gulf’s largest lender by assets, reversed early gains and dropped 3.4%.
Outside the Gulf, Egypt’s blue chip index fell more than 1%, after rising for the past two sessions.
#Saudi Wealth Fund Bets on Startups With Hambro Perks Investment - Bloomberg
Saudi Wealth Fund Bets on Startups With Hambro Perks Investment - Bloomberg
Saudi Arabia’s sovereign wealth fund is backing a Middle East venture-capital fund run by Hambro Perks Ltd., joining the trend for state investors in the region to put money into early-stage companies.
The Public Investment Fund of Saudi Arabia is an anchor investor in the $50 million Oryx Fund, which will target fintech, health and education technology startups across the Middle East and North Africa, according to Dominic Perks, co-founder of London-based venture firm Hambro Perks. He declined to say how much the Saudi fund, also known as PIF, has invested.
Oryx is the first Western venture-capital fund to get backing from PIF, which made the investment through its Jada unit, according to a statement from Hambro Perks. Other investors include Saudi Venture Capital Co. and Riyadh Valley Co.
Middle East sovereign funds have been stepping up their financing of startups as a way to create local jobs and help diversify their countries’ energy-dependent economies. Yet it remains rare for these funds to invest in other firms’ vehicles focused on the Middle East and Africa. Venture-capital funds concentrating on this region have raised just $11.7 billion since 2016, according to data from Preqin.
Saudi Arabia’s sovereign wealth fund is backing a Middle East venture-capital fund run by Hambro Perks Ltd., joining the trend for state investors in the region to put money into early-stage companies.
The Public Investment Fund of Saudi Arabia is an anchor investor in the $50 million Oryx Fund, which will target fintech, health and education technology startups across the Middle East and North Africa, according to Dominic Perks, co-founder of London-based venture firm Hambro Perks. He declined to say how much the Saudi fund, also known as PIF, has invested.
Oryx is the first Western venture-capital fund to get backing from PIF, which made the investment through its Jada unit, according to a statement from Hambro Perks. Other investors include Saudi Venture Capital Co. and Riyadh Valley Co.
Middle East sovereign funds have been stepping up their financing of startups as a way to create local jobs and help diversify their countries’ energy-dependent economies. Yet it remains rare for these funds to invest in other firms’ vehicles focused on the Middle East and Africa. Venture-capital funds concentrating on this region have raised just $11.7 billion since 2016, according to data from Preqin.