ACWA Power Gets Saudi Approval to Offer 11.1% Stake in IPO - Bloomberg
Saudi Arabia’s Capital Market Authority approved an application by ACWA Power, the kingdom’s renewable energy leader, to sell an 11.1% stake in an initial public offering.
ACWA Power, also known as International Co. for Water and Power Projects, will offer 81.2 million shares in the IPO, the market authority said in a statement Wednesday. The regulatory approval is valid for six months.
The kingdom’s sovereign wealth fund holds a 50% stake in the company, which is at the forefront of Crown Prince Mohammed bin Salman’s plans to turn the world’s largest crude exporter into a renewable energy powerhouse. ACWA Power is involved in building a $5 billion green hydrogen plant at the prince’s flagship megaproject, a futuristic city-from-scratch called Neom.
While Saudi Arabia produces one-eighth of the world’s oil supply, its operational renewable energy capacity is small by regional standards.
Boosting the kingdom’s environmental credentials is a key goal for Prince Mohammed, who launched an expansive program called “Saudi Green” earlier this year that calls for planting 50 billion trees across the Middle East. He’s repeatedly said he wants half of the kingdom’s energy needs to come from renewables by 2030.
Riyadh has been the hottest market for IPOs in the Middle East over the past two years, with new offerings oversubscribed, mostly by local retail and institutional investors. In 2019, the bourse hosted the $29 billion offering of the world’s biggest oil producer, Saudi Aramco, with shares being sold mostly to Saudi investors seeking guaranteed dividends.
Wednesday, 30 June 2021
Oil rises on lower U.S. stockpiles, demand recovery | Reuters
Oil rises on lower U.S. stockpiles, demand recovery | Reuters
Oil prices rose on Wednesday, heading for monthly and quarterly gains, after U.S. crude stockpiles fell for a sixth straight week and an OPEC report foresaw an undersupplied market this year.
The Brent crude contract for August, which expired on Wednesday, ended the session up 37 cents, or 0.5% at $75.13 a barrel. The September contract rose 34 cents to settle at $74.62 a barrel. U.S. West Texas Intermediate crude (WTI) settled up 49 cents, or 0.7% at $73.47 a barrel.
Both benchmarks are just below highs last reached in 2018, and are set to record their seventh monthly gain in the past eight months. WTI rose more than 10% in June while Brent rose over 8%.
A Reuters poll showed that Brent was seen averaging $67.48 a barrel this year and WTI $64.54, both up from May’s poll.
U.S. crude stockpiles fell last week for the sixth straight week as refiners ramped up output in response to rising demand, the Energy Information Administration said. [EIA/S]
Inventories at Cushing, Oklahoma, the delivery point for WTI, slid to their lowest since March 2020, EIA data showed.
Oil prices rose on Wednesday, heading for monthly and quarterly gains, after U.S. crude stockpiles fell for a sixth straight week and an OPEC report foresaw an undersupplied market this year.
The Brent crude contract for August, which expired on Wednesday, ended the session up 37 cents, or 0.5% at $75.13 a barrel. The September contract rose 34 cents to settle at $74.62 a barrel. U.S. West Texas Intermediate crude (WTI) settled up 49 cents, or 0.7% at $73.47 a barrel.
Both benchmarks are just below highs last reached in 2018, and are set to record their seventh monthly gain in the past eight months. WTI rose more than 10% in June while Brent rose over 8%.
A Reuters poll showed that Brent was seen averaging $67.48 a barrel this year and WTI $64.54, both up from May’s poll.
U.S. crude stockpiles fell last week for the sixth straight week as refiners ramped up output in response to rising demand, the Energy Information Administration said. [EIA/S]
Inventories at Cushing, Oklahoma, the delivery point for WTI, slid to their lowest since March 2020, EIA data showed.
MIDEAST STOCKS #Dubai drops as fresh virus spike in other nations stokes recovery fears | Reuters
MIDEAST STOCKS Dubai drops as fresh virus spike in other nations stokes recovery fears | Reuters
Dubai shares hit a four-week low on Wednesday, as a resurgence in COVID-19 cases in other countries across the world threatened economic recovery in the tourism-reliant market.
Dubai's main index (.DFMGI) fell for a third consecutive session to end 0.6% lower, its lowest closing since June 1, with Emirates NBD Bank (ENBD.DU) dropping 1.1%, while Sharia-compliant lender Dubai Islamic Bank (DISB.DU) declned 0.8%.
"Dubai's hard-fought position as a global and regional hub is being monitored in the context of rapidly spreading delta variant, shortly after the local government announced eased restrictions," Kaia Parv, head of investment research at FXPrimus.
On the other hand, Abu Dhabi's main index (.ADI) advanced 1.1% to hit a record high, buoyed by a 2% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD), followed by conglomerate International Holding (IHC) (IHC.AD) jumping 3.5%.
IHC has risen 24% so far this week after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake.
Saudi Arabia's benchmark index (.TASI) touched its highest level since September 2014, before closing 0.1% lower. Buoyant oil prices allowed the index to post its sixth monthly gain in a row for year-to-date gains of over 26%.
Oil giant Saudi Aramco (2222.SE) and Saudi National Bank (1180.SE) led losses with falls of 0.6% and 0.7%, respectively.
The Qatari benchmark (.QSI) slipped 0.2%, hit by a 0.7% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Negative sentiment still grips the Gulf markets as traders continue closing their positions, Parv said, adding that the pullback has become more pronounced as the week advances with investors choosing to take profits from these levels.
"Prices had become extended based on technical indicators, and a correction had been due for some time."
Outside the Gulf, Egypt's blue-chip index (.EGX30) bounced back 1.3% from a 1.5% decline a day earlier following a sell-off in blue-chip stocks, led by gains in Commercial International Bank (COMI.CA), which was up 3.3%.
Dubai shares hit a four-week low on Wednesday, as a resurgence in COVID-19 cases in other countries across the world threatened economic recovery in the tourism-reliant market.
Dubai's main index (.DFMGI) fell for a third consecutive session to end 0.6% lower, its lowest closing since June 1, with Emirates NBD Bank (ENBD.DU) dropping 1.1%, while Sharia-compliant lender Dubai Islamic Bank (DISB.DU) declned 0.8%.
"Dubai's hard-fought position as a global and regional hub is being monitored in the context of rapidly spreading delta variant, shortly after the local government announced eased restrictions," Kaia Parv, head of investment research at FXPrimus.
On the other hand, Abu Dhabi's main index (.ADI) advanced 1.1% to hit a record high, buoyed by a 2% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD), followed by conglomerate International Holding (IHC) (IHC.AD) jumping 3.5%.
IHC has risen 24% so far this week after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake.
Saudi Arabia's benchmark index (.TASI) touched its highest level since September 2014, before closing 0.1% lower. Buoyant oil prices allowed the index to post its sixth monthly gain in a row for year-to-date gains of over 26%.
Oil giant Saudi Aramco (2222.SE) and Saudi National Bank (1180.SE) led losses with falls of 0.6% and 0.7%, respectively.
The Qatari benchmark (.QSI) slipped 0.2%, hit by a 0.7% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Negative sentiment still grips the Gulf markets as traders continue closing their positions, Parv said, adding that the pullback has become more pronounced as the week advances with investors choosing to take profits from these levels.
"Prices had become extended based on technical indicators, and a correction had been due for some time."
Outside the Gulf, Egypt's blue-chip index (.EGX30) bounced back 1.3% from a 1.5% decline a day earlier following a sell-off in blue-chip stocks, led by gains in Commercial International Bank (COMI.CA), which was up 3.3%.
#SaudiArabia's PIF considers buying #Dubai design firm Depa, sources say | Reuters
Saudi Arabia's PIF considers buying Dubai design firm Depa, sources say | Reuters
Saudi Arabia's Public Investment Fund (PIF) is considering buying Dubai-listed interior design and speciality contractor Depa Plc (DEPA.DI) to fit-out hotels under construction in the kingdom, three sources with knowledge of the matter said.
Should a deal be reached, an offer would be made to Depa's biggest shareholders and the firm would be taken private, said one of the sources, declining to be identified as the matter is not public.
PIF, which holds $430 billion of assets under management, declined to comment when contacted by Reuters on Tuesday.
Depa, listed on Nasdaq Dubai, said in a statement to the bourse it was company policy not to comment on market rumours or media speculation.
Depa would continue to make required disclosures to ensure that the market was kept informed on a timely basis as appropriate, it said.
Saudi Arabia's Public Investment Fund (PIF) is considering buying Dubai-listed interior design and speciality contractor Depa Plc (DEPA.DI) to fit-out hotels under construction in the kingdom, three sources with knowledge of the matter said.
Should a deal be reached, an offer would be made to Depa's biggest shareholders and the firm would be taken private, said one of the sources, declining to be identified as the matter is not public.
PIF, which holds $430 billion of assets under management, declined to comment when contacted by Reuters on Tuesday.
Depa, listed on Nasdaq Dubai, said in a statement to the bourse it was company policy not to comment on market rumours or media speculation.
Depa would continue to make required disclosures to ensure that the market was kept informed on a timely basis as appropriate, it said.
#Qatar Petroleum posts first-quarter profit rises 36% to almost $5 bln | Reuters
Qatar Petroleum posts first-quarter profit rises 36% to almost $5 bln | Reuters
Qatar Petroleum, one of the world's top natural gas suppliers, posted a profit of 18.1 billion riyals ($4.90 billion) in the first quarter of 2021, up from 13.3 billion riyals a year prior, a bonds prospectus reviewed by Reuters showed.
The 36% rise in profit was despite revenue falling slightly to 24.3 billion riyals in the first quarter of 2021 from 24.5 billion riyals in the first quarter of 2020.
Capital expenditure by QP, its subsidiaries and joint ventures through 2025 is projected at 300 billion riyals, the prospectus said.
Qatar Petroleum, one of the world's top natural gas suppliers, posted a profit of 18.1 billion riyals ($4.90 billion) in the first quarter of 2021, up from 13.3 billion riyals a year prior, a bonds prospectus reviewed by Reuters showed.
The 36% rise in profit was despite revenue falling slightly to 24.3 billion riyals in the first quarter of 2021 from 24.5 billion riyals in the first quarter of 2020.
Capital expenditure by QP, its subsidiaries and joint ventures through 2025 is projected at 300 billion riyals, the prospectus said.
#Qatar Petroleum tightens guidance as orders top $26 billion for jumbo bond deal | Reuters
Qatar Petroleum tightens guidance as orders top $26 billion for jumbo bond deal | Reuters
Qatar Petroleum tightened the price guidance across its four-tranche bond deal by 25 basis points each after combined orders topped $26 billion, a document showed on Wednesday.
It tightened guidance to around 55 bps over U.S. Treasuries (UST) for a five-year portion, around 95 bps over UST for 10-year paper, around 120 bps over UST for 20-year notes and around 130 bps over UST for 30-year Formosa bonds, according to the document from one of the banks arranging the deal, which is expected to launch later on Wednesday.
The 10-year tranche drew the most orders, topping $8.7 billion while the Formosa tranche attracted more than $7.5 billion in demand. Formosa bonds are a category of debt sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
Qatar Petroleum tightened the price guidance across its four-tranche bond deal by 25 basis points each after combined orders topped $26 billion, a document showed on Wednesday.
It tightened guidance to around 55 bps over U.S. Treasuries (UST) for a five-year portion, around 95 bps over UST for 10-year paper, around 120 bps over UST for 20-year notes and around 130 bps over UST for 30-year Formosa bonds, according to the document from one of the banks arranging the deal, which is expected to launch later on Wednesday.
The 10-year tranche drew the most orders, topping $8.7 billion while the Formosa tranche attracted more than $7.5 billion in demand. Formosa bonds are a category of debt sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
Oil to sustain surprise rally despite Iran, third COVID-19 wave threat | Reuters
Oil to sustain surprise rally despite Iran, third COVID-19 wave threat | Reuters
Who of the traditional bulls predicted a rally that saw oil prices doubling in the last eight months? The short answer is no one.
Of more than 50 analysts polled by Reuters last October when Brent was hovering near $35 per barrel amid a second large wave of global lockdowns to slow the coronavirus pandemic, almost none dared to predict prices would approach $60.
U.S. bank Goldman Sachs saw second-quarter average prices hitting $57.50 a barrel and much smaller Houston-based consultancy Stratas Advisors had the boldest bet at $60.
As prices have exceeded $75 per barrel this June, the most accurate forecasters predict a further rally fuelled by recovering demand and tight OPEC supply – albeit at a more modest pace.
Overall, the 44 analysts polled by Reuters this month forecast benchmark Brent prices to average about $67.48 a barrel this year, up from the $64.79 consensus in May.
Who of the traditional bulls predicted a rally that saw oil prices doubling in the last eight months? The short answer is no one.
Of more than 50 analysts polled by Reuters last October when Brent was hovering near $35 per barrel amid a second large wave of global lockdowns to slow the coronavirus pandemic, almost none dared to predict prices would approach $60.
U.S. bank Goldman Sachs saw second-quarter average prices hitting $57.50 a barrel and much smaller Houston-based consultancy Stratas Advisors had the boldest bet at $60.
As prices have exceeded $75 per barrel this June, the most accurate forecasters predict a further rally fuelled by recovering demand and tight OPEC supply – albeit at a more modest pace.
Overall, the 44 analysts polled by Reuters this month forecast benchmark Brent prices to average about $67.48 a barrel this year, up from the $64.79 consensus in May.
Oil rises on lower U.S. stockpiles but OPEC warns of 2022 glut | Reuters
Oil rises on lower U.S. stockpiles but OPEC warns of 2022 glut | Reuters
Oil prices rose on Wednesday, heading for monthly and quarterly gains, after industry data suggested U.S. crude stockpiles were shrinking while an OPEC report foresaw an undersupplied market this year, but a possible glut next year.
The Brent crude contract for August, due to expire on Wednesday, was up 83 cents, or 1.1% at $75.59 a barrel by 1224 GMT. The September contract was up 99 cents at $75.27 a barrel. U.S. crude was up $1.10, or 1.5% at $74.08 a barrel.
Both Brent and WTIs are just below highs last reached in 2018, and are set to record their seventh monthly gain in the past eight months.
A Reuters poll showed that Brent was seen averaging $67.48 a barrel this year and WTI $64.54, both up from May's poll. read more
Oil prices rose on Wednesday, heading for monthly and quarterly gains, after industry data suggested U.S. crude stockpiles were shrinking while an OPEC report foresaw an undersupplied market this year, but a possible glut next year.
The Brent crude contract for August, due to expire on Wednesday, was up 83 cents, or 1.1% at $75.59 a barrel by 1224 GMT. The September contract was up 99 cents at $75.27 a barrel. U.S. crude was up $1.10, or 1.5% at $74.08 a barrel.
Both Brent and WTIs are just below highs last reached in 2018, and are set to record their seventh monthly gain in the past eight months.
A Reuters poll showed that Brent was seen averaging $67.48 a barrel this year and WTI $64.54, both up from May's poll. read more
Saudis Leaving Workforce Push Unemployment to a Five-Year Low - Bloomberg
Saudis Leaving Workforce Push Unemployment to a Five-Year Low - Bloomberg
Unemployment among Saudi Arabia’s citizens fell to its lowest level in nearly five years, but the decline was partly driven by people dropping out of the labor force, unwelcome news for a crown prince who has put job creation for a youthful population at the center of his agenda.
The jobless rate decreased to 11.7% in the first quarter compared to 12.6% in the fourth quarter, continuing a strong downward trend after hitting a record at the height of the pandemic, according to data from the General Authority for Statistics. However, labor force participation for citizens also fell, from 51.2% in the fourth quarter to 49.5% in the first three months of the year -- the sharpest drop since an economic downturn in 2017.
Job creation is a major consideration for Crown Prince Mohammed bin Salman, the country’s de facto leader, as he reshapes an economy dependent on exporting oil and importing foreign labor. The global health emergency exacerbated the scale of the problem, pushing citizen unemployment up to 15.4% during the kingdom’s coronavirus lockdown last year.
Unemployment among Saudi Arabia’s citizens fell to its lowest level in nearly five years, but the decline was partly driven by people dropping out of the labor force, unwelcome news for a crown prince who has put job creation for a youthful population at the center of his agenda.
The jobless rate decreased to 11.7% in the first quarter compared to 12.6% in the fourth quarter, continuing a strong downward trend after hitting a record at the height of the pandemic, according to data from the General Authority for Statistics. However, labor force participation for citizens also fell, from 51.2% in the fourth quarter to 49.5% in the first three months of the year -- the sharpest drop since an economic downturn in 2017.
Job creation is a major consideration for Crown Prince Mohammed bin Salman, the country’s de facto leader, as he reshapes an economy dependent on exporting oil and importing foreign labor. The global health emergency exacerbated the scale of the problem, pushing citizen unemployment up to 15.4% during the kingdom’s coronavirus lockdown last year.
#Dubai's DP World hires banks for sale of flagship free zone stake-sources | Reuters
Dubai's DP World hires banks for sale of flagship free zone stake-sources | Reuters
Dubai's DP World has hired banks to help sell a minority stake in its flagship business park, Jebel Ali Free Zone, which could fetch a few billion dollars, three sources familiar with the deal said.
It hired JPMorgan (JPM.N), Standard Chartered (STAN.L) and First Abu Dhabi Bank (FAB.AD) for the transaction that is likely to draw interest from infrastructure funds, private equity firms and other investors such as pension funds, they said.
The deal may be funded using leverage finance, one of the sources added.
Located adjacent to DP World's flagship Jebel Ali Port in Dubai, Jafza is one of United Arab Emirates' largest specialised business parks, commonly referred to locally as a free trade zone, where full foreign ownership is permitted.
Jebel Ali's free zone hosts more than 8,000 companies now, up from 500 in 1995, according to its website.
Dubai's DP World has hired banks to help sell a minority stake in its flagship business park, Jebel Ali Free Zone, which could fetch a few billion dollars, three sources familiar with the deal said.
It hired JPMorgan (JPM.N), Standard Chartered (STAN.L) and First Abu Dhabi Bank (FAB.AD) for the transaction that is likely to draw interest from infrastructure funds, private equity firms and other investors such as pension funds, they said.
The deal may be funded using leverage finance, one of the sources added.
Located adjacent to DP World's flagship Jebel Ali Port in Dubai, Jafza is one of United Arab Emirates' largest specialised business parks, commonly referred to locally as a free trade zone, where full foreign ownership is permitted.
Jebel Ali's free zone hosts more than 8,000 companies now, up from 500 in 1995, according to its website.
Tuesday, 29 June 2021
#Saudi mortgage provider SRC buys 'significant' portion of Arab National Bank's home finance portfolio | Property – Gulf News
Saudi mortgage provider SRC buys 'significant' portion of Arab National Bank's home finance portfolio | Property – Gulf News
The high-flying Saudi Real Estate Refinance Company, a wholly owned company of the Public Investment Fund (PIF), will purchase a significant portion of Arab National Bank’s housing finance portfolio and provide liquidity to the Bank. This, it is hoped, will provide greater homeownership opportunities for over two million of the bank’s customers.
The partnership is aimed at providing long-term liquidity in the housing financing market to boost the rate of Saudi homeownership to 70 per cent by 2030. The agreement with ANB is the latest among several partnerships with banks and real estate finance companies operating in the Kingdom. SRC aims to promote the growth and stability of the real estate finance market by facilitating the provision of more affordable home financing options for Saudi citizens.
The partnership agreement was signed by SRC’s CEO Fabrice Susini and Obaid Abdullah Al-Rasheed, Managing Director and CEO of ANB. Susini, CEO of SRC, said: “SRC will continue to cultivate partnerships to help realise the objectives of the housing programme, through facilitation of liquidity provision to originators and enabling affordability of home financing to Saudi families. Increasing the proportion of home ownership is in line with SRC’s goal of building a strong secondary market in the Kingdom.”
The partnership is aimed at providing long-term liquidity in the housing financing market to boost the rate of Saudi homeownership to 70 per cent by 2030. The agreement with ANB is the latest among several partnerships with banks and real estate finance companies operating in the Kingdom. SRC aims to promote the growth and stability of the real estate finance market by facilitating the provision of more affordable home financing options for Saudi citizens.
The partnership agreement was signed by SRC’s CEO Fabrice Susini and Obaid Abdullah Al-Rasheed, Managing Director and CEO of ANB. Susini, CEO of SRC, said: “SRC will continue to cultivate partnerships to help realise the objectives of the housing programme, through facilitation of liquidity provision to originators and enabling affordability of home financing to Saudi families. Increasing the proportion of home ownership is in line with SRC’s goal of building a strong secondary market in the Kingdom.”
Oil Edges Up With OPEC+ Delaying Talks to Resolve Differences - Bloomberg
Oil Edges Up With OPEC+ Delaying Talks to Resolve Differences - Bloomberg
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IPOs in Middle East Gain Momentum - Bloomberg video
IPOs in Middle East Gain Momentum - Bloomberg
Mohammed Ali Yasin, Chief Strategy Officer at Al Dhabi Capital discusses new listings on the Abu Dhabi and Saudi Arabia stock exchanges and their broader implications for the region. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Oil Erases Earlier Loss as Market Swings Before OPEC+ This Week - Bloomberg
Oil Erases Earlier Loss as Market Swings Before OPEC+ This Week - Bloomberg
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Ambani's Reliance Invests in #AbuDhabi Petrochemicals Hub - Bloomberg
Ambani's Reliance Invests in Abu Dhabi Petrochemicals Hub - Bloomberg
Reliance Industries Ltd. is set to invest in petrochemical facilities in Abu Dhabi, according to people familiar with the matter, as it strengthens energy ties with the Middle East.
The Indian conglomerate plans to join projects at Abu Dhabi National Oil Co.’s Ruwais refining hub, the people said. India’s Economic Times, which first reported the news, said the investment will amount to as much as $1.5 billion and may be announced as soon as Tuesday.
Adnoc, which pumps almost all the oil and gas in the United Arab Emirates, is hoping to attract around $5 billion into Ruwais under a program called Ta’ziz. The country is seeking to boost investments in higher-value petroleum products such as chemicals.
Reliance, the operator of the world’s biggest refining complex, and Adnoc signed a framework in 2019 to explore joint investments in petrochemicals.
The Indian company, led by Asia’s richest person Mukesh Ambani, is also in talks with Saudi Aramco about refining ventures. Ambani expects to finalize a deal this year that will see the Saudi firm invest billions of dollars in Reliance’s oil-to-chemicals projects. Aramco’s chairman, Yasir Al-Rumayyan, will join Reliance’s board, Ambani announced last week.
“His joining our board is also the beginning of internationalization of Reliance,” Ambani said. “You will hear more about our international plans in the times to come.”
Spokespeople for Reliance and Adnoc declined to comment.
Reliance Industries Ltd. is set to invest in petrochemical facilities in Abu Dhabi, according to people familiar with the matter, as it strengthens energy ties with the Middle East.
The Indian conglomerate plans to join projects at Abu Dhabi National Oil Co.’s Ruwais refining hub, the people said. India’s Economic Times, which first reported the news, said the investment will amount to as much as $1.5 billion and may be announced as soon as Tuesday.
Adnoc, which pumps almost all the oil and gas in the United Arab Emirates, is hoping to attract around $5 billion into Ruwais under a program called Ta’ziz. The country is seeking to boost investments in higher-value petroleum products such as chemicals.
Reliance, the operator of the world’s biggest refining complex, and Adnoc signed a framework in 2019 to explore joint investments in petrochemicals.
The Indian company, led by Asia’s richest person Mukesh Ambani, is also in talks with Saudi Aramco about refining ventures. Ambani expects to finalize a deal this year that will see the Saudi firm invest billions of dollars in Reliance’s oil-to-chemicals projects. Aramco’s chairman, Yasir Al-Rumayyan, will join Reliance’s board, Ambani announced last week.
“His joining our board is also the beginning of internationalization of Reliance,” Ambani said. “You will hear more about our international plans in the times to come.”
Spokespeople for Reliance and Adnoc declined to comment.
#Dubai's Emaar Properties secures $500 million via Islamic bonds | Reuters
Dubai's Emaar Properties secures $500 million via Islamic bonds | Reuters
Emaar Properties (EMAR.DU), Dubai's largest listed property developer, sold $500 million in 10-year sukuk, or Islamic bonds, at 3.7% on Tuesday after they drew more than $3.3 billion in orders, a document showed.
The sukuk were tightened from an initial price guidance of around 4.25%, a document from one of the banks in the deal showed.
Dubai Islamic Bank (DISB.DU), Emirates NBD Capital (ENBD.DU), First Abu Dhabi Bank (FAB.AD), Mashreqbank (MASB.DU) and Standard Chartered (STAN.L) arranged the deal.
Reuters reported early this month that Emaar had hired banks to arrange a dollar sukuk sale. read more
The builder of the world's tallest building, Dubai's Burj Khalifa, last issued international bonds in 2019, raising $500 million via sukuk.
S&P Global Ratings downgraded Emaar to a BB+ "junk" rating last July as the real estate and retail sectors were slammed by the COVID-19 pandemic and related restrictions.
Emaar, which is 29.22% owned by state fund Investment Corporation of Dubai, last month reported an 8% rise in first-quarter net profit to 657 million dirhams ($178.88 million), which founder Mohamed Alabbar said was "comparable" with pre-pandemic results in 2019.
The company and its subsidiaries have outstanding debt of about $816 million, Refinitiv data shows.
Emaar Properties (EMAR.DU), Dubai's largest listed property developer, sold $500 million in 10-year sukuk, or Islamic bonds, at 3.7% on Tuesday after they drew more than $3.3 billion in orders, a document showed.
The sukuk were tightened from an initial price guidance of around 4.25%, a document from one of the banks in the deal showed.
Dubai Islamic Bank (DISB.DU), Emirates NBD Capital (ENBD.DU), First Abu Dhabi Bank (FAB.AD), Mashreqbank (MASB.DU) and Standard Chartered (STAN.L) arranged the deal.
Reuters reported early this month that Emaar had hired banks to arrange a dollar sukuk sale. read more
The builder of the world's tallest building, Dubai's Burj Khalifa, last issued international bonds in 2019, raising $500 million via sukuk.
S&P Global Ratings downgraded Emaar to a BB+ "junk" rating last July as the real estate and retail sectors were slammed by the COVID-19 pandemic and related restrictions.
Emaar, which is 29.22% owned by state fund Investment Corporation of Dubai, last month reported an 8% rise in first-quarter net profit to 657 million dirhams ($178.88 million), which founder Mohamed Alabbar said was "comparable" with pre-pandemic results in 2019.
The company and its subsidiaries have outstanding debt of about $816 million, Refinitiv data shows.
#Saudi Aramco seeks financing advisor for gas pipeline deal -sources | Reuters
Saudi Aramco seeks financing advisor for gas pipeline deal -sources | Reuters
Saudi Aramco (2222.SE) has invited banks to pitch for an advisory role to help finance the sale of a significant minority stake in its gas pipelines, the oil giant's second major midstream deal after a $12.4 billion deal for oil pipelines, three sources said.
Aramco has already hired Morgan Stanley (MS.N) as an M&A advisor and the financing advisory role is up for grabs among banks, two of the sources said.
The gas pipeline stake sale will be a "copy paste" of the oil pipeline deal, one of the sources said.
Aramco has used a lease and lease-back agreement to sell a 49% stake of newly formed Aramco Oil Pipelines Co to the buyer and rights to 25 years of tariff payments for oil carried on its pipelines.
Saudi Aramco (2222.SE) has invited banks to pitch for an advisory role to help finance the sale of a significant minority stake in its gas pipelines, the oil giant's second major midstream deal after a $12.4 billion deal for oil pipelines, three sources said.
Aramco has already hired Morgan Stanley (MS.N) as an M&A advisor and the financing advisory role is up for grabs among banks, two of the sources said.
The gas pipeline stake sale will be a "copy paste" of the oil pipeline deal, one of the sources said.
Aramco has used a lease and lease-back agreement to sell a 49% stake of newly formed Aramco Oil Pipelines Co to the buyer and rights to 25 years of tariff payments for oil carried on its pipelines.
#UAE's new AML /CFT guidelines on providing services for real estate, precious metals sectors | ZAWYA MENA Edition
UAE's new AML /CFT guidelines on providing services for real estate, precious metals sectors | ZAWYA MENA Edition
The Central Bank of UAE has issued new guidance on anti-money laundering and combating the financing of terrorism (AML/CFT) for licensed financial institutions (LFI) providing services to the real estate sector, and dealers of precious metals and stones (DPMS).
For all customer dealings, LFIs are required to perform appropriate customer due diligence and report any behaviour that they reasonably suspect may be linked to money laundering, financing of terrorism or a criminal offence by submitting suspicious activity reports directly to the UAE’s Financial Intelligence Unit using the “goAML” portal.
LFIs providing services to real estate and precious metals and stones sectors specifically should assess the associated money laundering and terrorist financing risks and develop an effective AML/CFT programme that encompasses a competent compliance officer and provides training for LFIs’ employees on said risks.
Khaled Mohamed Balama, Governor of the CBUAE, said: “This Guidance serves as a key point of reference for those providing services to real estate and precious metals and stones sectors and is set to further increase the efficacy of licensed financial institutions in contributing to the stringent national efforts in the field of AML/CFT.”
The Central Bank of UAE has issued new guidance on anti-money laundering and combating the financing of terrorism (AML/CFT) for licensed financial institutions (LFI) providing services to the real estate sector, and dealers of precious metals and stones (DPMS).
For all customer dealings, LFIs are required to perform appropriate customer due diligence and report any behaviour that they reasonably suspect may be linked to money laundering, financing of terrorism or a criminal offence by submitting suspicious activity reports directly to the UAE’s Financial Intelligence Unit using the “goAML” portal.
LFIs providing services to real estate and precious metals and stones sectors specifically should assess the associated money laundering and terrorist financing risks and develop an effective AML/CFT programme that encompasses a competent compliance officer and provides training for LFIs’ employees on said risks.
Khaled Mohamed Balama, Governor of the CBUAE, said: “This Guidance serves as a key point of reference for those providing services to real estate and precious metals and stones sectors and is set to further increase the efficacy of licensed financial institutions in contributing to the stringent national efforts in the field of AML/CFT.”
JPMorgan sets up legal entity in #AbuDhabi's ADGM | Reuters
JPMorgan sets up legal entity in Abu Dhabi's ADGM | Reuters
JPMorgan (JPM.N) has set up a new legal entity in Abu Dhabi's financial centre ADGM, it said in a statement on Tuesday.
The bank has been physically present in the emirate for 10 years through a representative office, but has now established a new legal entity, called J.P. Morgan Middle East, licenced by the Abu Dhabi Global Markets Financial Services Regulatory Authority.
This will "enable the firm to provide a more complete suite of J.P. Morgan products and services to clients in Abu Dhabi," the U.S. bank said.
JPMorgan (JPM.N) has set up a new legal entity in Abu Dhabi's financial centre ADGM, it said in a statement on Tuesday.
The bank has been physically present in the emirate for 10 years through a representative office, but has now established a new legal entity, called J.P. Morgan Middle East, licenced by the Abu Dhabi Global Markets Financial Services Regulatory Authority.
This will "enable the firm to provide a more complete suite of J.P. Morgan products and services to clients in Abu Dhabi," the U.S. bank said.
Oil drops as COVID-19 surges threaten fuel demand outlook | Reuters
Oil drops as COVID-19 surges threaten fuel demand outlook | Reuters
Oil prices dropped for a second day on Tuesday on worries about slower fuel demand growth as outbreaks of the highly contagious Delta variant of coronavirus sparked new mobility restrictions around the world.
Brent crude futures fell 67 cents, or 0.9%, to $74.01 a barrel by 0901 GMT, after slumping 2% on Monday.
U.S. West Texas Intermediate (WTI) crude futures fell 83 cents, or 1.1%, to $72.08 a barrel, extending a 1.5% loss on Monday.
Despite the virus flare-up, the market still broadly expects vaccine rollouts to brighten the demand outlook, analysts said.
"The narrative of the past few months has not changed: the war against the virus is being gradually won, the global economy and oil demand are recovering," said PVM Oil analyst Tamas Varga.
Oil prices dropped for a second day on Tuesday on worries about slower fuel demand growth as outbreaks of the highly contagious Delta variant of coronavirus sparked new mobility restrictions around the world.
Brent crude futures fell 67 cents, or 0.9%, to $74.01 a barrel by 0901 GMT, after slumping 2% on Monday.
U.S. West Texas Intermediate (WTI) crude futures fell 83 cents, or 1.1%, to $72.08 a barrel, extending a 1.5% loss on Monday.
Despite the virus flare-up, the market still broadly expects vaccine rollouts to brighten the demand outlook, analysts said.
"The narrative of the past few months has not changed: the war against the virus is being gradually won, the global economy and oil demand are recovering," said PVM Oil analyst Tamas Varga.
Monday, 28 June 2021
Oil falls 2% on rising COVID-19 cases, ahead of OPEC+ talks | Reuters
Oil falls 2% on rising COVID-19 cases, ahead of OPEC+ talks | Reuters
Oil prices fell 2% to a one-week low on Monday after hitting their highest since 2018 earlier in the session, as a spike in COVID-19 cases in Asia and Europe put a brake on the rally before this week's OPEC+ meeting.
Brent futures fell $1.50, or 2.0%, to settle at $74.68 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.14, or 1.5%, to settle at $72.91.
Those declines pushed both contracts out of overbought territory and were their lowest closes since June 18. Earlier in the volatile session, both benchmarks rose to their highest levels since October 2018.
"The forecast for oil demand recovery over the summer may be a bit overestimated, and traders are facing a reality check this week as the (COVID-19) Delta variant reached Europe and as an infections surge in Southeast Asia and Australia is bringing back lockdowns," said Louise Dickson, oil markets analyst at Rystad Energy.
Oil prices fell 2% to a one-week low on Monday after hitting their highest since 2018 earlier in the session, as a spike in COVID-19 cases in Asia and Europe put a brake on the rally before this week's OPEC+ meeting.
Brent futures fell $1.50, or 2.0%, to settle at $74.68 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.14, or 1.5%, to settle at $72.91.
Those declines pushed both contracts out of overbought territory and were their lowest closes since June 18. Earlier in the volatile session, both benchmarks rose to their highest levels since October 2018.
"The forecast for oil demand recovery over the summer may be a bit overestimated, and traders are facing a reality check this week as the (COVID-19) Delta variant reached Europe and as an infections surge in Southeast Asia and Australia is bringing back lockdowns," said Louise Dickson, oil markets analyst at Rystad Energy.
Alpha Dhabi shares jump 13% as #AbuDhabi bourse's market value surges to $314bn | The National
Alpha Dhabi shares jump 13% as Abu Dhabi bourse's market value surges to $314bn | The National
Shares in Alpha Dhabi, the investment group listed on the Abu Dhabi Securities Exchange on Sunday, closed up almost 13 per cent on Monday, making it the fourth-biggest company on the exchange.
The company, in which Integrated Holding Company and Infinity Wave Holding each own a 44 per cent stake, is valued at Dh169 billion ($46bn) at Monday's Dh16.90 a share closing price. That means only IHC itself (Dh208.7bn), Etisalat (Dh193.1bn) and First Abu Dhabi Bank (Dh178bn) have a higher market capitalisation.
IHC's shares also gained another 3.4 per cent to Dh114.60, pushing the ADX's main market index up 0.63 per cent and its market capitalisation to Dh1.15 trillion.
In the year to date, the Abu Dhabi market is the best performer in the Gulf and "among the best globally", gaining 33.8 per cent, said Devesh Mamtani, chief market strategist at Dubai-based brokerage Century Financial.
Shares in Alpha Dhabi, the investment group listed on the Abu Dhabi Securities Exchange on Sunday, closed up almost 13 per cent on Monday, making it the fourth-biggest company on the exchange.
The company, in which Integrated Holding Company and Infinity Wave Holding each own a 44 per cent stake, is valued at Dh169 billion ($46bn) at Monday's Dh16.90 a share closing price. That means only IHC itself (Dh208.7bn), Etisalat (Dh193.1bn) and First Abu Dhabi Bank (Dh178bn) have a higher market capitalisation.
IHC's shares also gained another 3.4 per cent to Dh114.60, pushing the ADX's main market index up 0.63 per cent and its market capitalisation to Dh1.15 trillion.
In the year to date, the Abu Dhabi market is the best performer in the Gulf and "among the best globally", gaining 33.8 per cent, said Devesh Mamtani, chief market strategist at Dubai-based brokerage Century Financial.
#SaudiArabia’s Net Foreign Assets Fall Again From Decade Low - Bloomberg
Saudi Arabia’s Net Foreign Assets Fall Again From Decade Low - Bloomberg
Saudi Arabia’s net foreign assets dropped 0.8% in May from the month before, sinking further after hitting the lowest level in more than a decade.
The stockpile at the kingdom’s central bank fell by 13.65 billion riyals, according to the bank’s monthly report.
Saudi Arabia’s net foreign assets declined significantly in 2020 as lower oil income strained finances and officials simultaneously transferred $40 billion to the kingdom’s sovereign fund to fuel an opportunistic investment spree.
The indicator -- which topped $700 billion in 2014 after an oil boom pumped up savings -- now stands at 1.62 trillion riyals ($432 billion). However most economists say that’s more than enough to defend the Saudi riyal’s peg to the dollar, and rising oil prices could boost the fortunes of the world’s largest crude exporter in the months ahead.
The price of Brent crude has averaged around $73 a barrel so far in June, compared to $68 in May and $65 in April.
Saudi Arabia’s net foreign assets dropped 0.8% in May from the month before, sinking further after hitting the lowest level in more than a decade.
The stockpile at the kingdom’s central bank fell by 13.65 billion riyals, according to the bank’s monthly report.
Saudi Arabia’s net foreign assets declined significantly in 2020 as lower oil income strained finances and officials simultaneously transferred $40 billion to the kingdom’s sovereign fund to fuel an opportunistic investment spree.
The indicator -- which topped $700 billion in 2014 after an oil boom pumped up savings -- now stands at 1.62 trillion riyals ($432 billion). However most economists say that’s more than enough to defend the Saudi riyal’s peg to the dollar, and rising oil prices could boost the fortunes of the world’s largest crude exporter in the months ahead.
The price of Brent crude has averaged around $73 a barrel so far in June, compared to $68 in May and $65 in April.
#Iran's recovery seen as modest with return to original nuclear deal - IIF | Reuters
Iran's recovery seen as modest with return to original nuclear deal - IIF | Reuters
Iran’s economic recovery is likely to be modest should it revive a 2015 nuclear deal with six world powers without expanding the scope of the pact, according to a trade body for the global financial industry.
Hardliner Ebrahim Raisi’s victory in a presidential election this month will not derail the nuclear negotiations, but the United States may face difficulties in expanding the scope of the accord, the Institute of International Finance (IIF) said in a report.
“The likely outcome for the JCPOA (Joint Comprehensive Plan of Action) negotiations is a return to the 2015 agreement, which would keep many sanctions in place. Such a limited agreement would deter significant investment by Western firms, making a sharp pickup in growth unlikely,” it said.
Iran and the United States have been holding indirect talks since April to revive the 2015 nuclear deal, which then U.S. President Donald Trump abandoned in 2018, reimposing sanctions.
U.S. President Joe Biden is seeking to revive and eventually broaden the nuclear pact to put greater limits on Iran’s nuclear and ballistic missile programmes, as well as constraining its regional activities.
Iran’s economic recovery is likely to be modest should it revive a 2015 nuclear deal with six world powers without expanding the scope of the pact, according to a trade body for the global financial industry.
Hardliner Ebrahim Raisi’s victory in a presidential election this month will not derail the nuclear negotiations, but the United States may face difficulties in expanding the scope of the accord, the Institute of International Finance (IIF) said in a report.
“The likely outcome for the JCPOA (Joint Comprehensive Plan of Action) negotiations is a return to the 2015 agreement, which would keep many sanctions in place. Such a limited agreement would deter significant investment by Western firms, making a sharp pickup in growth unlikely,” it said.
Iran and the United States have been holding indirect talks since April to revive the 2015 nuclear deal, which then U.S. President Donald Trump abandoned in 2018, reimposing sanctions.
U.S. President Joe Biden is seeking to revive and eventually broaden the nuclear pact to put greater limits on Iran’s nuclear and ballistic missile programmes, as well as constraining its regional activities.
#Qatar Petroleum hires banks for four-tranche jumbo bond sale | Reuters
Qatar Petroleum hires banks for four-tranche jumbo bond sale | Reuters
Qatar Petroleum has hired a group of banks to arrange a four-tranche issuance of U.S. dollar-denominated bonds, a document showed, for what will be its debut public bond sale months after it signed a contract to boost its liquefied natural gas output.
The bond sale will comprise conventional tranches of five, 10 and 20 years, as well a 30-year Formosa portion, the document from one of the banks on the deal and reviewed by Reuters showed.
Formosa bonds are sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The document did not give any indication on the size of the deal but sources have previously told Reuters the planned debt sale could raise up to $10 billion. read more
Qatar Petroleum (QP), one of the world's top liquefied natural gas (LNG) suppliers, hired Citi and JPMorgan to coordinate the issue.
They, along with BofA Securities (BAC.N), Deutsche Bank (DBKGn.DE), Goldman Sachs (GS.N), HSBC (HSBA.L), MUFG (8306.T), QNB Capital (QNBK.QA) and Credit Suisse (CSGN.S), will arrange investor calls starting on Monday.
Fitch Ratings assigned QP a long-term issuer default rating of AA- with a stable outlook on Monday, which it said was "constrained by that of sole shareholder - Qatar (AA-/Stable) - given strong links between the company and the sovereign".
"Fitch assesses the Standalone Credit Profile (SCP) of QP at 'aa+', which is supported by the large scale of its LNG franchise, low production costs, large reserve base and conservative leverage," Fitch said, adding QP operations' focus on gas "makes it better placed for energy transition than other oil and gas majors."
QP's fundraising comes as energy companies in the region seek different means to raise cash after they were hurt last year by the double shock of the COVID-19 pandemic and oil prices collapsing.
QP signed a contract in February for the first phase of its North Field LNG expansion project, which aims to boost Qatar's LNG output by 40% a year by 2026. read more
Fitch said key constraints on QP's rating include completion risk for large capital expenditure projects related to increasing LNG production, as well as political risk.
Qatar Petroleum has hired a group of banks to arrange a four-tranche issuance of U.S. dollar-denominated bonds, a document showed, for what will be its debut public bond sale months after it signed a contract to boost its liquefied natural gas output.
The bond sale will comprise conventional tranches of five, 10 and 20 years, as well a 30-year Formosa portion, the document from one of the banks on the deal and reviewed by Reuters showed.
Formosa bonds are sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The document did not give any indication on the size of the deal but sources have previously told Reuters the planned debt sale could raise up to $10 billion. read more
Qatar Petroleum (QP), one of the world's top liquefied natural gas (LNG) suppliers, hired Citi and JPMorgan to coordinate the issue.
They, along with BofA Securities (BAC.N), Deutsche Bank (DBKGn.DE), Goldman Sachs (GS.N), HSBC (HSBA.L), MUFG (8306.T), QNB Capital (QNBK.QA) and Credit Suisse (CSGN.S), will arrange investor calls starting on Monday.
Fitch Ratings assigned QP a long-term issuer default rating of AA- with a stable outlook on Monday, which it said was "constrained by that of sole shareholder - Qatar (AA-/Stable) - given strong links between the company and the sovereign".
"Fitch assesses the Standalone Credit Profile (SCP) of QP at 'aa+', which is supported by the large scale of its LNG franchise, low production costs, large reserve base and conservative leverage," Fitch said, adding QP operations' focus on gas "makes it better placed for energy transition than other oil and gas majors."
QP's fundraising comes as energy companies in the region seek different means to raise cash after they were hurt last year by the double shock of the COVID-19 pandemic and oil prices collapsing.
QP signed a contract in February for the first phase of its North Field LNG expansion project, which aims to boost Qatar's LNG output by 40% a year by 2026. read more
Fitch said key constraints on QP's rating include completion risk for large capital expenditure projects related to increasing LNG production, as well as political risk.
#UAE's ADNOC to deepen crude oil term supply cut in Sept -sources | Reuters
UAE's ADNOC to deepen crude oil term supply cut in Sept -sources | Reuters
Abu Dhabi National Oil Company (ADNOC) will reduce the volume of crude oil it supplies to Asian term buyers by 15% in September, according to six sources with direct knowledge of the matter.
The cut was much deeper compared with a reduction of 5% in term volume allocation for crude oil cargoes loading in August, three of the sources said. ADNOC did not provide a reason for the deeper cuts, the sources said.
ADNOC declined to comment on such issues.
The move came as a surprise for some market participants ahead of an upcoming OPEC+ meeting on July 1. It was not immediately clear why ADNOC was making a deeper supply cut for crude oil loading in September for its term contract customers.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs.
Sources told Reuters last Tuesday that OPEC+ was discussing a further easing of oil output cuts from August as oil prices rise on demand recovery, but no decision had been taken yet on the exact volume to bring back to the market. read more
Abu Dhabi National Oil Company (ADNOC) will reduce the volume of crude oil it supplies to Asian term buyers by 15% in September, according to six sources with direct knowledge of the matter.
The cut was much deeper compared with a reduction of 5% in term volume allocation for crude oil cargoes loading in August, three of the sources said. ADNOC did not provide a reason for the deeper cuts, the sources said.
ADNOC declined to comment on such issues.
The move came as a surprise for some market participants ahead of an upcoming OPEC+ meeting on July 1. It was not immediately clear why ADNOC was making a deeper supply cut for crude oil loading in September for its term contract customers.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs.
Sources told Reuters last Tuesday that OPEC+ was discussing a further easing of oil output cuts from August as oil prices rise on demand recovery, but no decision had been taken yet on the exact volume to bring back to the market. read more
Emaar Properties plans to issue benchmark sukuk as #Dubai real estate market improves | The National
Emaar Properties plans to issue benchmark sukuk as Dubai real estate market improves | The National
Emaar Properties, the UAE's biggest listed property developer by market capitalisation, plans to issue a new benchmark sukuk.
The company appointed Dubai Islamic Bank, Emirates NBD, First Abu Dhabi Bank, Mashreq Bank and Standard Chartered Bank as joint lead arrangers for a global investor call and a series of one-to-one and group meetings with fixed income investors, it said in a statement to the Dubai Financial Market, where its shares trade.
"A benchmark US dollar ... senior unsecured sukuk with a 10-year tenor under Emaar Properties' $2 billion Trust Certificate Issuance Programme may follow subject to market conditions," it said.
A benchmark bond or sukuk is generally classed as a debt issuance of at least $500 million.
Bond issuances by Gulf entities are expected to be around $125m this year, in line with last year's total, according to emerging markets specialist Franklin Templeton.
Emaar Properties, the UAE's biggest listed property developer by market capitalisation, plans to issue a new benchmark sukuk.
The company appointed Dubai Islamic Bank, Emirates NBD, First Abu Dhabi Bank, Mashreq Bank and Standard Chartered Bank as joint lead arrangers for a global investor call and a series of one-to-one and group meetings with fixed income investors, it said in a statement to the Dubai Financial Market, where its shares trade.
"A benchmark US dollar ... senior unsecured sukuk with a 10-year tenor under Emaar Properties' $2 billion Trust Certificate Issuance Programme may follow subject to market conditions," it said.
A benchmark bond or sukuk is generally classed as a debt issuance of at least $500 million.
Bond issuances by Gulf entities are expected to be around $125m this year, in line with last year's total, according to emerging markets specialist Franklin Templeton.
#Qatar Petroleum Sees Natural Gas Demand Peaking Around 2040, Much Later Than IEA - Bloomberg
Qatar Petroleum Sees Natural Gas Demand Peaking Around 2040, Much Later Than IEA - Bloomberg
Natural gas giant Qatar Petroleum predicted global demand for the fuel will continue to climb for almost two decades, making it far more optimistic than the International Energy Agency.
QP expects consumption to grow at a rate of 1.5% a year, driven higher by economic growth and a broad shift away from dirtier-burning coal, according to a bond prospectus seen by Bloomberg. It sees demand peaking around 2040, roughly 15 years later than forecast by the IEA.
The world’s largest producer of liquefied natural gas is spending tens of billions of dollars to build expansion projects that rely on a rosy future for the commodity. Gas has been seen as a key transition fuel in the global shift to cleaner energy, though it’s falling out of favor with some governments as they accelerate efforts to slow climate change.
The Paris-based IEA, an adviser to most major economies, expects gas demand to peak in the mid-2020s, according to its Net Zero by 2050 report published in May. By mid-century, gas use will be 55% lower than in 2020, it said.
QP’s outlook contrasts sharply, and its forecast for LNG is even more bullish. The state producer expects LNG demand to grow even after gas consumption starts to decline, saying falling gas production in some countries will raise demand for imports. It sees the LNG market growing at a rate of 3.6% a year to 2040, and continuing to expand until the end of that decade.
Qatar is ramping up production of the liquefied fuel dramatically, while dropping prices to squeeze competitors out the market. Qatar Petroleum’s capital expenditure will total almost $60 billion from 2021 to 2025, according to the prospectus.
Natural gas giant Qatar Petroleum predicted global demand for the fuel will continue to climb for almost two decades, making it far more optimistic than the International Energy Agency.
QP expects consumption to grow at a rate of 1.5% a year, driven higher by economic growth and a broad shift away from dirtier-burning coal, according to a bond prospectus seen by Bloomberg. It sees demand peaking around 2040, roughly 15 years later than forecast by the IEA.
The world’s largest producer of liquefied natural gas is spending tens of billions of dollars to build expansion projects that rely on a rosy future for the commodity. Gas has been seen as a key transition fuel in the global shift to cleaner energy, though it’s falling out of favor with some governments as they accelerate efforts to slow climate change.
The Paris-based IEA, an adviser to most major economies, expects gas demand to peak in the mid-2020s, according to its Net Zero by 2050 report published in May. By mid-century, gas use will be 55% lower than in 2020, it said.
QP’s outlook contrasts sharply, and its forecast for LNG is even more bullish. The state producer expects LNG demand to grow even after gas consumption starts to decline, saying falling gas production in some countries will raise demand for imports. It sees the LNG market growing at a rate of 3.6% a year to 2040, and continuing to expand until the end of that decade.
Qatar is ramping up production of the liquefied fuel dramatically, while dropping prices to squeeze competitors out the market. Qatar Petroleum’s capital expenditure will total almost $60 billion from 2021 to 2025, according to the prospectus.
Oil Market Latest News: Oil Holds Steady Near $74 a Barrel - Bloomberg
Oil Market Latest News: Oil Holds Steady Near $74 a Barrel - Bloomberg
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MIDEAST STOCKS Fresh COVID curbs and US air strike push Gulf stocks lower | Reuters
MIDEAST STOCKS Fresh COVID curbs and US air strike push Gulf stocks lower | Reuters
A resurgence in coronavirus infections and U.S. air strikes against Iran-backed militias slammed Gulf stock markets on Monday, knocking Abu Dhabi's main index from record highs hit earlier in the session.
Dubai's share index (.DFMGI) posted the biggest fall, down 1.1% and off 21-month highs touched on Sunday. It was weighed by a 1.8% fall in top lender Emirates NBD (ENBD.DU) and a 1.6% decline in blue-chip developer Emaar Properties (EMAR.DU).
Losses were partly due to new COVID-19 restrictions and fears for the region's economic revival, Michael Stark, research analyst at Exness said, also noting the impact of a U.S. strike in Iraq.
Gulf markets had opened stronger, following Sunday's robust session but soon gave up early gains, digesting a U.S. announcement of air strikes against Iran-backed militia in Iraq and Syria in response to drone attacks against U.S. personnel and facilities in Iraq read more .
Iraqi militia groups vowed to retaliate.
"The U.S. intervention sent shivers across the markets as the shadow of armed conflict shows its nose," Stark said.
Abu Dhabi's share index (.ADI), ended 0.6% higher though it ceded some early gains driven by a surge in the International Holding Company (IHC.AD) conglomerate.
IHC added 3.4% to Sunday's 15% rise after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake. Alpha Dhabi soared 12.7%. read more
IHC, now Abu Dhabi's most valuable listed company, has gained more than 170% so far this year.
Elsewhere, Saudi Arabia's benchmark index (.TASI) edged 0.1% lower, with Saudi National Bank (1180.SE), the kingdom's largest lender, losing 1%, and Sahara International Petrochemical Company (2310.SE) declining 2.1%.
Separately, Saudi Fransi Capital has started a book building process in preparation for Tanmiah Food Co's initial public offering, setting a price range of 59 riyals ($15.73) to 67 riyals per share, the investment banking group said in a statement on Sunday.
Qatar's share benchmark (.QSI) dropped 0.6%, with most index members in negative territory including largest constituent Qatar National Bank (QNBK.QA).
Telecoms firm Ooredoo (ORDS.QA) closed unchanged, a day after falling 3.8% following an imposition of a 3.5 million riyal ($950,000) financial sanction.
Outside the Gulf, Egypt's blue-chip index (.EGX) lost 0.3%, pressured by a 1.2% fall in Commercial International Bank (COMI.CA).
A resurgence in coronavirus infections and U.S. air strikes against Iran-backed militias slammed Gulf stock markets on Monday, knocking Abu Dhabi's main index from record highs hit earlier in the session.
Dubai's share index (.DFMGI) posted the biggest fall, down 1.1% and off 21-month highs touched on Sunday. It was weighed by a 1.8% fall in top lender Emirates NBD (ENBD.DU) and a 1.6% decline in blue-chip developer Emaar Properties (EMAR.DU).
Losses were partly due to new COVID-19 restrictions and fears for the region's economic revival, Michael Stark, research analyst at Exness said, also noting the impact of a U.S. strike in Iraq.
Gulf markets had opened stronger, following Sunday's robust session but soon gave up early gains, digesting a U.S. announcement of air strikes against Iran-backed militia in Iraq and Syria in response to drone attacks against U.S. personnel and facilities in Iraq read more .
Iraqi militia groups vowed to retaliate.
"The U.S. intervention sent shivers across the markets as the shadow of armed conflict shows its nose," Stark said.
Abu Dhabi's share index (.ADI), ended 0.6% higher though it ceded some early gains driven by a surge in the International Holding Company (IHC.AD) conglomerate.
IHC added 3.4% to Sunday's 15% rise after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake. Alpha Dhabi soared 12.7%. read more
IHC, now Abu Dhabi's most valuable listed company, has gained more than 170% so far this year.
Elsewhere, Saudi Arabia's benchmark index (.TASI) edged 0.1% lower, with Saudi National Bank (1180.SE), the kingdom's largest lender, losing 1%, and Sahara International Petrochemical Company (2310.SE) declining 2.1%.
Separately, Saudi Fransi Capital has started a book building process in preparation for Tanmiah Food Co's initial public offering, setting a price range of 59 riyals ($15.73) to 67 riyals per share, the investment banking group said in a statement on Sunday.
Qatar's share benchmark (.QSI) dropped 0.6%, with most index members in negative territory including largest constituent Qatar National Bank (QNBK.QA).
Telecoms firm Ooredoo (ORDS.QA) closed unchanged, a day after falling 3.8% following an imposition of a 3.5 million riyal ($950,000) financial sanction.
Outside the Gulf, Egypt's blue-chip index (.EGX) lost 0.3%, pressured by a 1.2% fall in Commercial International Bank (COMI.CA).
With oil prices rallying, it is now time for Opec+ to regain market share | The National
With oil prices rallying, it is now time for Opec+ to regain market share | The National
The Opec meeting at the start of July faces quite a different mood from last year’s gatherings. After battling low prices, a coronavirus-induced slump in demand and a cautious recovery, the market’s alarm signals are now flashing orange. It is time for the producers’ organisation to move on to the next phase of the campaign.
The headline price is striking enough, with Brent crude at more than $76 a barrel on Friday – its highest level since late 2018, bringing it close to breaching a seven-year record.
However, there are plenty of other signs of market tightness.
The discount of US benchmark West Texas Intermediate to Brent now sits at $2, compared to $10 at the last peak in 2018. As American demand picks up while production remains subdued, there is less incentive to export surplus crude.
The premium between September and October WTI futures has widened to more than $1 a barrel, indicating that prompt supplies are strained.
The premium for immediate delivery over longer-dated futures, the situation known as backwardation, encourages traders to empty oil from storage to avoid receiving a lower price later.
Apart from China, surplus inventories built up earlier during the pandemic have almost dissipated. Stocks in developed countries are now below their five-year average before the pandemic. Major traders such as Vitol expect global demand to be back at pre-Covid levels by the second half of next year.
The global economy is picking up as key countries overcome the worst of the pandemic. The global composite purchasing managers’ index, a good advance indicator, reached its highest level in more than 15 years in May.
Manufacturing has led the recovery so far as people stuck at homes buy computers and make house improvements.
Now services are starting to pick up in the US and Europe as the pace of vaccinations rises – meaning more car travel to restaurants, malls and cinemas, as well as holidays by road and, increasingly, air.
Concerns remain over the new coronavirus variants, particularly the now-infamous Delta strain, the slow pace of vaccination in many parts of the world and the problem of reopening Asian countries such as Japan that managed to keep infection levels low but have little established immunity.
The Opec meeting at the start of July faces quite a different mood from last year’s gatherings. After battling low prices, a coronavirus-induced slump in demand and a cautious recovery, the market’s alarm signals are now flashing orange. It is time for the producers’ organisation to move on to the next phase of the campaign.
The headline price is striking enough, with Brent crude at more than $76 a barrel on Friday – its highest level since late 2018, bringing it close to breaching a seven-year record.
However, there are plenty of other signs of market tightness.
The discount of US benchmark West Texas Intermediate to Brent now sits at $2, compared to $10 at the last peak in 2018. As American demand picks up while production remains subdued, there is less incentive to export surplus crude.
The premium between September and October WTI futures has widened to more than $1 a barrel, indicating that prompt supplies are strained.
The premium for immediate delivery over longer-dated futures, the situation known as backwardation, encourages traders to empty oil from storage to avoid receiving a lower price later.
Apart from China, surplus inventories built up earlier during the pandemic have almost dissipated. Stocks in developed countries are now below their five-year average before the pandemic. Major traders such as Vitol expect global demand to be back at pre-Covid levels by the second half of next year.
The global economy is picking up as key countries overcome the worst of the pandemic. The global composite purchasing managers’ index, a good advance indicator, reached its highest level in more than 15 years in May.
Manufacturing has led the recovery so far as people stuck at homes buy computers and make house improvements.
Now services are starting to pick up in the US and Europe as the pace of vaccinations rises – meaning more car travel to restaurants, malls and cinemas, as well as holidays by road and, increasingly, air.
Concerns remain over the new coronavirus variants, particularly the now-infamous Delta strain, the slow pace of vaccination in many parts of the world and the problem of reopening Asian countries such as Japan that managed to keep infection levels low but have little established immunity.
Mumzworld Online Retailer Bought by #Saudi's Tamer Group as FirstCry Gains Ground - Bloomberg
Mumzworld Online Retailer Bought by Saudi's Tamer Group as FirstCry Gains Ground - Bloomberg
A Saudi conglomerate will buy the Middle East’s largest online children-goods retailer, underscoring the growth of e-commerce in the region amid increasing competition for business.
Dubai-based Mumzworld said on Monday that it signed a sales and purchase agreement with Jeddah-based Tamer Group, describing it as the region’s first “woman-led e-commerce transaction.” Financial details weren’t disclosed.
The transaction will provide Mumzworld with the resources and networks to “continue to supercharge our growth” both geographically and in terms of product offerings, said its co-founder and chief executive Mona Ataya.
“We are a business that is home-grown,” she said in an interview. “So this acquisition by a strategic giant is the right DNA and the right strategic fit for us.”
A Saudi conglomerate will buy the Middle East’s largest online children-goods retailer, underscoring the growth of e-commerce in the region amid increasing competition for business.
Dubai-based Mumzworld said on Monday that it signed a sales and purchase agreement with Jeddah-based Tamer Group, describing it as the region’s first “woman-led e-commerce transaction.” Financial details weren’t disclosed.
The transaction will provide Mumzworld with the resources and networks to “continue to supercharge our growth” both geographically and in terms of product offerings, said its co-founder and chief executive Mona Ataya.
“We are a business that is home-grown,” she said in an interview. “So this acquisition by a strategic giant is the right DNA and the right strategic fit for us.”
#Saudi Aramco Bets on Blue Hydrogen Exports Ramping Up From 2030 - Bloomberg video
Saudi Aramco Bets on Blue Hydrogen Exports Ramping Up From 2030 - Bloomberg
Saudi Aramco outlined plans to invest in blue hydrogen as the world shifts away from dirtier forms of energy, but said it will take at least until the end of this decade before a global market for the fuel is developed.
“We’re going to have a large share” of the market for blue hydrogen, Aramco’s chief technology officer, Ahmad Al-Khowaiter, said in an interview with Bloomberg Television on Sunday in Dhahran, eastern Saudi Arabia, where the company’s based. “The scale up isn’t going to happen before 2030. We’re not going to see large volumes of blue ammonia before then.”
Hydrogen is seen as crucial to slowing climate change since it emits no harmful greenhouse gases when burned. The blue form of the fuel is made from natural gas, with the carbon emissions generated in the conversion process being captured. The hydrogen is sometimes converted again into ammonia to allow it to be transported more easily between continents.
The state energy firm may end up spending roughly $1 billion on capturing carbon for every 1 million tons of blue ammonia produced, Khowaiter said. That would exclude the expense of producing the gas, he said.
“We’re going to have a large share” of the market for blue hydrogen, Aramco’s chief technology officer, Ahmad Al-Khowaiter, said in an interview with Bloomberg Television on Sunday in Dhahran, eastern Saudi Arabia, where the company’s based. “The scale up isn’t going to happen before 2030. We’re not going to see large volumes of blue ammonia before then.”
Hydrogen is seen as crucial to slowing climate change since it emits no harmful greenhouse gases when burned. The blue form of the fuel is made from natural gas, with the carbon emissions generated in the conversion process being captured. The hydrogen is sometimes converted again into ammonia to allow it to be transported more easily between continents.
The state energy firm may end up spending roughly $1 billion on capturing carbon for every 1 million tons of blue ammonia produced, Khowaiter said. That would exclude the expense of producing the gas, he said.
Emaar hires banks for 10-year dollar Islamic bonds - document | ZAWYA MENA Edition
Emaar hires banks for 10-year dollar Islamic bonds - document | ZAWYA MENA Edition
Emaar Properties has hired banks to arrange an issuance of U.S. dollar-denominated 10-year sukuk, or Islamic bonds, a document showed on Monday.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreqbank and Standard Chartered will arrange investor calls starting on Monday, the document from one of the banks showed.
A senior unsecured sukuk issuance will follow, subject to market conditions.
Reuters reported early this month that Emaar hired banks to arrange a dollar sukuk sale.
Emaar Properties has hired banks to arrange an issuance of U.S. dollar-denominated 10-year sukuk, or Islamic bonds, a document showed on Monday.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreqbank and Standard Chartered will arrange investor calls starting on Monday, the document from one of the banks showed.
A senior unsecured sukuk issuance will follow, subject to market conditions.
Reuters reported early this month that Emaar hired banks to arrange a dollar sukuk sale.
MIDEAST STOCKS #AbuDhabi outperforms Gulf stocks as IHC extends surge | Reuters
MIDEAST STOCKS Abu Dhabi outperforms Gulf stocks as IHC extends surge | Reuters
Abu Dhabi stocks outperformed Gulf markets on Monday, led by a 9% surge in the shares of the International Holding Company (IHC) conglomerate, which benefited from the listing of a subsidiary.
The Abu Dhabi index (.ADI) advanced 1.2%, while International Holding (IHC.AD) was up 3.4%, having jumped 15% on Sunday. IHC shares are up around 170% this year.
IHC, now Abu Dhabi's most valuable listed company, gained after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake and which operates in the healthcare, construction and hospitality sectors. read more .
Alpha Dhabi leapt over 8%.
Saudi Arabia's benchmark index (.TASI) rose too, adding 0.2%, helped by a 0.4% gain in Al Rajhi Bank (1120.SE) and a 0.5% increase in petrochemical maker Saudi Basic Industries (2010.SE).
Separately, Saudi Fransi Capital has started a book building process for Tanmiah Food Co's initial public offering, setting a price range of 59 riyals ($15.73) to 67 riyals per share, the investment banking group said on Sunday.
But Dubai's main share index (.DMFGI) eased 0.2%, hit by a 0.5% fall in blue-chip developer Emaar Properties (EMAR.DU). Emaar shed some of the 1% gain it made on Sunday, after S&P Global raised its outlook to stable from negative.
S&P attributed the outlook revision to better momentum in Dubai's residential real estate, with prices rising in some areas for the first time since 2015.
The Qatari benchmark (.QSI) lost 0.2%, with petrochemical maker Industries Qatar (IQCD.QA) falling 0.6% and Qatar Fuel Company (QFLS.QA) dropping 1.3%.
However, the index's losses were limited by telecoms firm Ooredoo (ORDS.QA), which rose 1.3%. Ooredoo shares retreated 3.8% on Sunday after the imposition of a 3.5 million riyal ($950,000) financial sanction for violating instructions issued by the authority.
Abu Dhabi stocks outperformed Gulf markets on Monday, led by a 9% surge in the shares of the International Holding Company (IHC) conglomerate, which benefited from the listing of a subsidiary.
The Abu Dhabi index (.ADI) advanced 1.2%, while International Holding (IHC.AD) was up 3.4%, having jumped 15% on Sunday. IHC shares are up around 170% this year.
IHC, now Abu Dhabi's most valuable listed company, gained after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake and which operates in the healthcare, construction and hospitality sectors. read more .
Alpha Dhabi leapt over 8%.
Saudi Arabia's benchmark index (.TASI) rose too, adding 0.2%, helped by a 0.4% gain in Al Rajhi Bank (1120.SE) and a 0.5% increase in petrochemical maker Saudi Basic Industries (2010.SE).
Separately, Saudi Fransi Capital has started a book building process for Tanmiah Food Co's initial public offering, setting a price range of 59 riyals ($15.73) to 67 riyals per share, the investment banking group said on Sunday.
But Dubai's main share index (.DMFGI) eased 0.2%, hit by a 0.5% fall in blue-chip developer Emaar Properties (EMAR.DU). Emaar shed some of the 1% gain it made on Sunday, after S&P Global raised its outlook to stable from negative.
S&P attributed the outlook revision to better momentum in Dubai's residential real estate, with prices rising in some areas for the first time since 2015.
The Qatari benchmark (.QSI) lost 0.2%, with petrochemical maker Industries Qatar (IQCD.QA) falling 0.6% and Qatar Fuel Company (QFLS.QA) dropping 1.3%.
However, the index's losses were limited by telecoms firm Ooredoo (ORDS.QA), which rose 1.3%. Ooredoo shares retreated 3.8% on Sunday after the imposition of a 3.5 million riyal ($950,000) financial sanction for violating instructions issued by the authority.
#Qatar Petroleum hires banks for four-tranche jumbo bond sale | Reuters
Qatar Petroleum hires banks for four-tranche jumbo bond sale | Reuters
Qatar Petroleum has hired a group of banks to arrange a four-tranche issuance of U.S. dollar-denominated bonds, a document showed, for what will be its debut public bond sale months after it signed a contract to boost its liquefied natural gas output.
The bond sale will comprise conventional tranches of five, 10 and 20 years, as well a 30-year Formosa portion, the document from one of the banks on the deal and reviewed by Reuters showed.
Formosa bonds are sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The document did not give any indication on the size of the deal but sources have previously told Reuters the planned debt sale could raise up to $10 billion. read more
Qatar Petroleum (QP), one of the world's top liquefied natural gas (LNG) suppliers, hired Citi and JPMorgan to coordinate the issue.
They, along with BofA Securities (BAC.N), Deutsche Bank (DBKGn.DE), Goldman Sachs (GS.N), HSBC (HSBA.L), MUFG (8306.T), QNB Capital (QNBK.QA) and Credit Suisse (CSGN.S), will arrange investor calls starting on Monday.
QP's fundraising comes as energy companies in the region seek different means to raise cash after they were hurt last year by the double shock of the COVID-19 pandemic and oil prices collapsing.
QP signed a contract in February for the first phase of its North Field LNG expansion project, which aims to boost Qatar's LNG output by 40% a year by 2026.
Qatar Petroleum has hired a group of banks to arrange a four-tranche issuance of U.S. dollar-denominated bonds, a document showed, for what will be its debut public bond sale months after it signed a contract to boost its liquefied natural gas output.
The bond sale will comprise conventional tranches of five, 10 and 20 years, as well a 30-year Formosa portion, the document from one of the banks on the deal and reviewed by Reuters showed.
Formosa bonds are sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The document did not give any indication on the size of the deal but sources have previously told Reuters the planned debt sale could raise up to $10 billion. read more
Qatar Petroleum (QP), one of the world's top liquefied natural gas (LNG) suppliers, hired Citi and JPMorgan to coordinate the issue.
They, along with BofA Securities (BAC.N), Deutsche Bank (DBKGn.DE), Goldman Sachs (GS.N), HSBC (HSBA.L), MUFG (8306.T), QNB Capital (QNBK.QA) and Credit Suisse (CSGN.S), will arrange investor calls starting on Monday.
QP's fundraising comes as energy companies in the region seek different means to raise cash after they were hurt last year by the double shock of the COVID-19 pandemic and oil prices collapsing.
QP signed a contract in February for the first phase of its North Field LNG expansion project, which aims to boost Qatar's LNG output by 40% a year by 2026.
Gulf ‘unlikely to introduce broad-based income taxes’: Moody’s | ZAWYA MENA Edition
Gulf ‘unlikely to introduce broad-based income taxes’: Moody’s | ZAWYA MENA Edition
The introduction of broad-based income taxes in the GCC is unlikely in the short-to-medium term, says Moody’s.
A new report by the US-based ratings agency states that direct taxation, which would significantly and durably lower the reliance of government revenue on oil and gas is a long way away as the region lacks economic diversification which means non-oil sector growth needs to be effectively subsidised.
The key difference between the GCC and most other sovereigns is an effective absence of direct taxes.
None of the GCC sovereigns currently levy property or personal income taxes, notes the report.
The introduction of broad-based income taxes in the GCC is unlikely in the short-to-medium term, says Moody’s.
A new report by the US-based ratings agency states that direct taxation, which would significantly and durably lower the reliance of government revenue on oil and gas is a long way away as the region lacks economic diversification which means non-oil sector growth needs to be effectively subsidised.
The key difference between the GCC and most other sovereigns is an effective absence of direct taxes.
None of the GCC sovereigns currently levy property or personal income taxes, notes the report.
Oil drifts near 2018 highs ahead of OPEC+ meeting | Reuters
Oil drifts near 2018 highs ahead of OPEC+ meeting | Reuters
Oil prices hit and then recoiled from highs last seen in October 2018 on Monday as investors eyed the outcome of this week's OPEC+ meeting as the United States and Iran wrangle over the revival of a nuclear deal, delaying a surge in Iranian oil exports.
Brent crude for August had slipped 1 cent to $76.17 a barrel by 0619 GMT while U.S. West Texas Intermediate crude for August was at $74.09 a barrel, up 4 cents.
Oil prices rose for a fifth week last week as fuel demand rebounded on strong economic growth and increased travel during summer in the northern hemisphere, while global crude supplies stayed snug as the Organization of the Petroleum Exporting Countries (OPEC) and their allies maintained production cuts.
The producer group, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs. OPEC+ meets on July 1 and could further ease supply cuts in August as oil prices rise on demand recovery.
Oil prices hit and then recoiled from highs last seen in October 2018 on Monday as investors eyed the outcome of this week's OPEC+ meeting as the United States and Iran wrangle over the revival of a nuclear deal, delaying a surge in Iranian oil exports.
Brent crude for August had slipped 1 cent to $76.17 a barrel by 0619 GMT while U.S. West Texas Intermediate crude for August was at $74.09 a barrel, up 4 cents.
Oil prices rose for a fifth week last week as fuel demand rebounded on strong economic growth and increased travel during summer in the northern hemisphere, while global crude supplies stayed snug as the Organization of the Petroleum Exporting Countries (OPEC) and their allies maintained production cuts.
The producer group, known as OPEC+, is returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year's record oil output curbs. OPEC+ meets on July 1 and could further ease supply cuts in August as oil prices rise on demand recovery.
Sunday, 27 June 2021
Dawn of Roaring Twenties Seen as #Dubai’s Luxury Home Sales Soar - Bloomberg
Dawn of Roaring Twenties Seen as Dubai’s Luxury Home Sales Soar - Bloomberg
A record burst of sales in the priciest corners of the global property market may be ushering in a post-pandemic era of exuberance in real estate -- with Dubai among the front-runners.
The Middle East business hub is the latest city to light up with what Knight Frank LLP called “a spectacular post-Covid rebound in luxury home sales.” In the first five months of the year, 22 properties worth more than $10 million found a buyer, the most since 2015 and up from a total of 19 last year.
Far from being an isolated hotspot, the emirate may mirror a pattern seen in other global cities, the consultancy firm said on Sunday. Homes in the wealthiest areas of London are selling at the fastest rate in seven years, according to LonRes data.
“The rebounding of Dubai’s super prime market echoes a wider global trend, signaling the start perhaps of a ‘Roaring Twenties’ for global real estate,” said Faisal Durrani, head of Middle East Research at Knight Frank.
A record burst of sales in the priciest corners of the global property market may be ushering in a post-pandemic era of exuberance in real estate -- with Dubai among the front-runners.
The Middle East business hub is the latest city to light up with what Knight Frank LLP called “a spectacular post-Covid rebound in luxury home sales.” In the first five months of the year, 22 properties worth more than $10 million found a buyer, the most since 2015 and up from a total of 19 last year.
Far from being an isolated hotspot, the emirate may mirror a pattern seen in other global cities, the consultancy firm said on Sunday. Homes in the wealthiest areas of London are selling at the fastest rate in seven years, according to LonRes data.
“The rebounding of Dubai’s super prime market echoes a wider global trend, signaling the start perhaps of a ‘Roaring Twenties’ for global real estate,” said Faisal Durrani, head of Middle East Research at Knight Frank.
#Dubai Lures Wall Street Jet-Setters as Events Business Returns - Bloomberg
Dubai Lures Wall Street Jet-Setters as Events Business Returns - Bloomberg
The jet-setting days of Wall Street bankers and executives flocking to Davos in January might be on pause, but in the financial capital of the Middle East it’s business as usual once more.
Dubai is moving full-speed ahead with in-person events on the back of fewer travel restrictions and one of the world’s most-connected airports. The United Arab Emirates also has among the fastest vaccination programs, with 15 million doses administered in a population of 10 million.
As restrictions hamper travel to hubs including London and Singapore, Dubai is fast becoming a winner in the more than $1 trillion global events industry. The emirate plans to host one of the biggest gas conferences and an African investor summit this year, while top cricketers are set to gather in the UAE for a popular tournament and later, for the T20 World Cup.
Conferences and events accounted for 3% of Dubai’s $112 billion economy in 2019, said Helal Al Marri, director general of the emirate’s Department of Tourism and Commerce Marketing, or DTCM. A return to normalcy would bolster the leisure industry, which was leveled by the pandemic.
The jet-setting days of Wall Street bankers and executives flocking to Davos in January might be on pause, but in the financial capital of the Middle East it’s business as usual once more.
Dubai is moving full-speed ahead with in-person events on the back of fewer travel restrictions and one of the world’s most-connected airports. The United Arab Emirates also has among the fastest vaccination programs, with 15 million doses administered in a population of 10 million.
As restrictions hamper travel to hubs including London and Singapore, Dubai is fast becoming a winner in the more than $1 trillion global events industry. The emirate plans to host one of the biggest gas conferences and an African investor summit this year, while top cricketers are set to gather in the UAE for a popular tournament and later, for the T20 World Cup.
Conferences and events accounted for 3% of Dubai’s $112 billion economy in 2019, said Helal Al Marri, director general of the emirate’s Department of Tourism and Commerce Marketing, or DTCM. A return to normalcy would bolster the leisure industry, which was leveled by the pandemic.
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