Saudi Arabia’s Net Foreign Assets Rose in June From 10-Year Low - Bloomberg
Saudi Arabia’s net foreign assets rose 2% in June, recovering slightly from their lowest level in more than a decade as higher oil prices gave the kingdom a boost.
The stockpile at the central bank increased by 34 billion riyals ($9.1 billion) last month, according to the central bank’s monthly report released on Saturday.
Net foreign assets declined significantly in 2020 as lower oil income strained finances and officials transferred $40 billion to the kingdom’s sovereign fund to fuel an investment spree. The indicator -- which topped $700 billion in 2014 after an oil boom pumped up savings -- now stands at 1.66 trillion riyals.
Most economists say that’s more than enough to defend the riyal’s peg to the dollar, and rising oil prices could further lift the fortunes of the world’s largest crude exporter in the months ahead.
The price of Brent crude averaged over $73 a barrel in June, compared to $68 in May and $65 in April.
Saturday 31 July 2021
#Qatar dials into Africa’s mobile-money scramble | Reuters
Qatar dials into Africa’s mobile-money scramble | Reuters
Africa’s financial technology buzz is growing. Airtel Africa (AAF.L) on Friday said the Qatar Investment Authority would pay $200 million for a minority stake and a board seat in the telco’s mobile-money unit, AMC. That’s on top of the $300 million Airtel Africa received from selling stakes in the business to private equity firm TPG and Mastercard (MA.N) earlier this year. The deal values AMC at an enterprise value of $2.7 billion – over 13 times its EBITDA for the year to March. Airtel Africa gets cash to invest in telecom infrastructure.
AMC allows phone subscribers to send money without using the banking system. The long-run potential is vast: mobile-money transaction volumes in sub-Saharan Africa rose 23% to $490 billion last year. Yet competition is growing. African banks, tech firms and mobile rivals MTN (MTNJ.J) and Vodacom (VODJ.J) are all battling for market share read more . The continent’s unpredictable regulators and economic gyrations also create problems. Not everyone will grab a prize.
Africa’s financial technology buzz is growing. Airtel Africa (AAF.L) on Friday said the Qatar Investment Authority would pay $200 million for a minority stake and a board seat in the telco’s mobile-money unit, AMC. That’s on top of the $300 million Airtel Africa received from selling stakes in the business to private equity firm TPG and Mastercard (MA.N) earlier this year. The deal values AMC at an enterprise value of $2.7 billion – over 13 times its EBITDA for the year to March. Airtel Africa gets cash to invest in telecom infrastructure.
AMC allows phone subscribers to send money without using the banking system. The long-run potential is vast: mobile-money transaction volumes in sub-Saharan Africa rose 23% to $490 billion last year. Yet competition is growing. African banks, tech firms and mobile rivals MTN (MTNJ.J) and Vodacom (VODJ.J) are all battling for market share read more . The continent’s unpredictable regulators and economic gyrations also create problems. Not everyone will grab a prize.
Column - IEA’s roadmap shows difficult journey to net zero: Kemp | Reuters
Column-IEA’s roadmap shows difficult journey to net zero: Kemp | Reuters
Polarised responses to the International Energy Agency report on achieving net zero emissions by 2050 reveal the enormous challenges of the goal and differences about whether it is realistic in the timeframe.
Like the Rorschach inkblot test, reactions to the report reveal more about the reader’s own views on how energy and climate systems change than about the technical contents of the report itself.
Reducing net emissions to zero by mid-century is consistent with the goal of limiting the long-term increase in average global temperatures to 1.5 degrees Celsius (2.7°F) to which global policymakers have committed themselves.
In the last year, an increasing number of governments have pledged to achieve net zero by 2050 or 2060, covering 70% of worldwide emissions (“Net zero by 2050: a roadmap for the global energy sector”, IEA, 2021).
But in the short term, emissions are on a rising trend, notwithstanding a temporary decline during the COVID-19 pandemic, putting the world a long way off track.
Polarised responses to the International Energy Agency report on achieving net zero emissions by 2050 reveal the enormous challenges of the goal and differences about whether it is realistic in the timeframe.
Like the Rorschach inkblot test, reactions to the report reveal more about the reader’s own views on how energy and climate systems change than about the technical contents of the report itself.
Reducing net emissions to zero by mid-century is consistent with the goal of limiting the long-term increase in average global temperatures to 1.5 degrees Celsius (2.7°F) to which global policymakers have committed themselves.
In the last year, an increasing number of governments have pledged to achieve net zero by 2050 or 2060, covering 70% of worldwide emissions (“Net zero by 2050: a roadmap for the global energy sector”, IEA, 2021).
But in the short term, emissions are on a rising trend, notwithstanding a temporary decline during the COVID-19 pandemic, putting the world a long way off track.
OPEC July oil output hits 15-month high as demand recovers, survey shows | Reuters
OPEC July oil output hits 15-month high as demand recovers, survey shows | Reuters
OPEC oil output rose in July to its highest since April 2020, a Reuters survey found, as the group further eased production curbs under a pact with its allies and top exporter Saudi Arabia phased out a voluntary supply cut.
The Organization of the Petroleum Exporting Countries has pumped 26.72 million barrels per day (bpd), the survey found, up 610,000 bpd from June's revised estimate. Output has risen every month since June 2020 apart from in February.
OPEC and allies, known as OPEC+, have been unwinding record output cuts agreed in April 2020, as demand and the economy recover. With oil prices rising to a 2 1/2-year high, OPEC+ decided this month on further hikes from August. read more
"Most forecasts are still predicting robust growth in demand in the second half of the year," said Carsten Fritsch of Commerzbank. "It is easy to believe that the oil market has learnt to live with the virus, in other words."
OPEC oil output rose in July to its highest since April 2020, a Reuters survey found, as the group further eased production curbs under a pact with its allies and top exporter Saudi Arabia phased out a voluntary supply cut.
The Organization of the Petroleum Exporting Countries has pumped 26.72 million barrels per day (bpd), the survey found, up 610,000 bpd from June's revised estimate. Output has risen every month since June 2020 apart from in February.
OPEC and allies, known as OPEC+, have been unwinding record output cuts agreed in April 2020, as demand and the economy recover. With oil prices rising to a 2 1/2-year high, OPEC+ decided this month on further hikes from August. read more
"Most forecasts are still predicting robust growth in demand in the second half of the year," said Carsten Fritsch of Commerzbank. "It is easy to believe that the oil market has learnt to live with the virus, in other words."
Moody's keeps Apicorp's credit outlook stable amid strong profitability
Moody's keeps Apicorp's credit outlook stable amid strong profitability
Moody's affirmed the Arab Petroleum Investments Corporation's long-term issuer and senior unsecured ratings at Aa2 while maintaining a stable outlook for the multilateral development bank.
The agency based its assessment on the Dammam-based bank's "high capital adequacy, supported by a track record of strong profitability, robust asset quality and low levels of nonperforming assets, which balance relatively high leverage."
Apicorp, which is owned by the 10 members of the Organisation of Arab Petroleum Exporting Countries, is also "supported by its very strong liquidity, underpinned by ample availability of liquid resources to cover upcoming net cash outflows, and a well-diversified funding structure," the agency added.
Moody's took into account potential risks the bank faces from operating in countries with elevated geopolitical tensions and high exposure to commodity prices.
Moody's affirmed the Arab Petroleum Investments Corporation's long-term issuer and senior unsecured ratings at Aa2 while maintaining a stable outlook for the multilateral development bank.
The agency based its assessment on the Dammam-based bank's "high capital adequacy, supported by a track record of strong profitability, robust asset quality and low levels of nonperforming assets, which balance relatively high leverage."
Apicorp, which is owned by the 10 members of the Organisation of Arab Petroleum Exporting Countries, is also "supported by its very strong liquidity, underpinned by ample availability of liquid resources to cover upcoming net cash outflows, and a well-diversified funding structure," the agency added.
Moody's took into account potential risks the bank faces from operating in countries with elevated geopolitical tensions and high exposure to commodity prices.
Friday 30 July 2021
Oil climbs, notches fourth monthly gain on growing demand | Reuters
Oil climbs, notches fourth monthly gain on growing demand | Reuters
Oil prices edged higher on Friday, with global benchmark Brent posting a fourth monthly gain, with demand growing faster than supply and vaccinations expected to alleviate the impact of a resurgence in COVID-19 infections across the world.
Brent crude futures for September , which expired on Friday, rose 28 cents, or 0.4%, to settle at $76.33 a barrel. The more active contract for October ended the session up 31 cents at $75.41 per barrel.
U.S. West Texas Intermediate (WTI) crude futures rose 33 cents, or 0.5%, to end the session at $73.95 a barrel.
Both benchmarks notched gains of more than 2% for the week, while Brent rose 1.6% in July, its fourth straight monthly increase. WTI was unchanged for the month.
Even with coronavirus cases rising in the United States, all around Asia and parts of Europe, analysts said higher vaccination rates would limit the need for the harsh lockdowns that gutted demand during the peak of the pandemic last year.
Oil prices edged higher on Friday, with global benchmark Brent posting a fourth monthly gain, with demand growing faster than supply and vaccinations expected to alleviate the impact of a resurgence in COVID-19 infections across the world.
Brent crude futures for September , which expired on Friday, rose 28 cents, or 0.4%, to settle at $76.33 a barrel. The more active contract for October ended the session up 31 cents at $75.41 per barrel.
U.S. West Texas Intermediate (WTI) crude futures rose 33 cents, or 0.5%, to end the session at $73.95 a barrel.
Both benchmarks notched gains of more than 2% for the week, while Brent rose 1.6% in July, its fourth straight monthly increase. WTI was unchanged for the month.
Even with coronavirus cases rising in the United States, all around Asia and parts of Europe, analysts said higher vaccination rates would limit the need for the harsh lockdowns that gutted demand during the peak of the pandemic last year.
#Saudi economy minister: Opportunities will exceed $3trln within 5 years | ZAWYA MENA Edition
Saudi economy minister: Opportunities will exceed $3trln within 5 years | ZAWYA MENA Edition
Minister of Economy and Planning Faisal Al-Ibrahim said that there is a lesson from the COVID-19 pandemic that the use of solutions based on the Fourth Industrial Revolution revealed the reality of the widening gap between the leading economies and the rest of the world.
“Despite the significant progress made since the launch of the Kingdom’s Vision 2030 and during the pandemic, the catalyst for further economic growth could be seizing part of the opportunities that exceed $3 trillion over the next five years and their multiplier effects,” he said while addressing a session of the Fourth Industrial Revolution Forum in Riyadh on Thursday.
The minister stressed that the Kingdom still has a lot of work to do to raise its rank in the Global Innovation Index, and plans to be in the leading position among its counterparts in the G20. He explained that this leads to the factors that shape the future role of the Fourth Industrial Revolution Center, as the center enjoys the convergence of the growing role of the Fourth Industrial Revolution in providing solutions to global challenges with the momentum and potential of Saudi Arabia’s vision and its impact locally and globally. This is in addition to the Kingdom’s growing global leadership role, which is based on a solid legacy of work with global partners to overcome global challenges and its pioneering vision and massive transformation.
“The center should take advantage of these possibilities, to become a center for work on discovering, discussing and providing comprehensive solutions to global challenges as well as local challenges that are of the same level of importance.”
The minister said that COVID-19 has created an intense need for data, and repeatedly established evidence-based policies through innovative technical solutions. “The epidemic has become an enabler for the accelerated development of leading technologies, and the best evidence for this is the global market outlook. In its latest report on technology and innovation, UNCTAD predicted that the market for leading technologies would become $3.2 trillion in 2025, a jump of nearly 10 times than the levels of 2018,” he added.
Minister of Economy and Planning Faisal Al-Ibrahim said that there is a lesson from the COVID-19 pandemic that the use of solutions based on the Fourth Industrial Revolution revealed the reality of the widening gap between the leading economies and the rest of the world.
“Despite the significant progress made since the launch of the Kingdom’s Vision 2030 and during the pandemic, the catalyst for further economic growth could be seizing part of the opportunities that exceed $3 trillion over the next five years and their multiplier effects,” he said while addressing a session of the Fourth Industrial Revolution Forum in Riyadh on Thursday.
The minister stressed that the Kingdom still has a lot of work to do to raise its rank in the Global Innovation Index, and plans to be in the leading position among its counterparts in the G20. He explained that this leads to the factors that shape the future role of the Fourth Industrial Revolution Center, as the center enjoys the convergence of the growing role of the Fourth Industrial Revolution in providing solutions to global challenges with the momentum and potential of Saudi Arabia’s vision and its impact locally and globally. This is in addition to the Kingdom’s growing global leadership role, which is based on a solid legacy of work with global partners to overcome global challenges and its pioneering vision and massive transformation.
“The center should take advantage of these possibilities, to become a center for work on discovering, discussing and providing comprehensive solutions to global challenges as well as local challenges that are of the same level of importance.”
The minister said that COVID-19 has created an intense need for data, and repeatedly established evidence-based policies through innovative technical solutions. “The epidemic has become an enabler for the accelerated development of leading technologies, and the best evidence for this is the global market outlook. In its latest report on technology and innovation, UNCTAD predicted that the market for leading technologies would become $3.2 trillion in 2025, a jump of nearly 10 times than the levels of 2018,” he added.
Oil prices drop, but on track for weekly gain | Reuters
Oil prices drop, but on track for weekly gain | Reuters
Oil prices fell on Friday but remained on track to post steep weekly gains with demand growing faster than supply, while vaccinations are expected to alleviate the impact of a resurgence in COVID-19 infections across the globe.
Brent crude futures for September , which expires on Friday, dropped 56 cents, or 0.7%, to $75.49 a barrel by 0640 GMT, following a 1.75% jump on Thursday.
The more active Brent contract for October was down 64 cents, or 0.9% to $74.46 per barrel.
U.S. West Texas Intermediate (WTI) crude futures fell 60 cents, or 0.8%, to $73.02 a barrel, whittling down a 1.7% rise from Thursday.
"Oil prices pulled back slightly amid cautious sentiment across the Asia Pacific markets as investors weighed virus concerns and weaker-than-expected U.S. GDP and jobs data," said Margaret Yang, a strategist at Singapore-based DailyFX.
Oil prices fell on Friday but remained on track to post steep weekly gains with demand growing faster than supply, while vaccinations are expected to alleviate the impact of a resurgence in COVID-19 infections across the globe.
Brent crude futures for September , which expires on Friday, dropped 56 cents, or 0.7%, to $75.49 a barrel by 0640 GMT, following a 1.75% jump on Thursday.
The more active Brent contract for October was down 64 cents, or 0.9% to $74.46 per barrel.
U.S. West Texas Intermediate (WTI) crude futures fell 60 cents, or 0.8%, to $73.02 a barrel, whittling down a 1.7% rise from Thursday.
"Oil prices pulled back slightly amid cautious sentiment across the Asia Pacific markets as investors weighed virus concerns and weaker-than-expected U.S. GDP and jobs data," said Margaret Yang, a strategist at Singapore-based DailyFX.
Oil settles up, Brent tops $76 as U.S. supplies tighten more | Reuters
Oil settles up, Brent tops $76 as U.S. supplies tighten more | Reuters
Oil prices rose on Thursday, with global benchmark Brent topping $76 a barrel, as supplies in the United States tightened further after shrinking to the smallest levels since January 2020.
Brent crude oil futures settled up $1.31 a barrel, or 1.75% at $76.05 a barrel. U.S. West Texas Intermediate (WTI) crude oil futures settled up $1.23, or 1.7% at $73.62 a barrel.
Data from information provider Genscape indicated that the inventories at the Cushing, Oklahoma storage hub have continued to draw, traders said on Thursday. Cushing stockpiles were seen at 36.299 million barrels by Tuesday afternoon, down 360,917 barrels from July 23.
The Cushing inventory data came a day after the U.S. Energy Information Administration (EIA) reported that domestic crude inventories fell by 4.1 million barrels in the week to July 23.
Oil prices rose on Thursday, with global benchmark Brent topping $76 a barrel, as supplies in the United States tightened further after shrinking to the smallest levels since January 2020.
Brent crude oil futures settled up $1.31 a barrel, or 1.75% at $76.05 a barrel. U.S. West Texas Intermediate (WTI) crude oil futures settled up $1.23, or 1.7% at $73.62 a barrel.
Data from information provider Genscape indicated that the inventories at the Cushing, Oklahoma storage hub have continued to draw, traders said on Thursday. Cushing stockpiles were seen at 36.299 million barrels by Tuesday afternoon, down 360,917 barrels from July 23.
The Cushing inventory data came a day after the U.S. Energy Information Administration (EIA) reported that domestic crude inventories fell by 4.1 million barrels in the week to July 23.
Thursday 29 July 2021
Oil Extends Gain From Two-Week High as U.S. Stockpiles Decline - Bloomberg
Oil Extends Gain From Two-Week High as U.S. Stockpiles Decline - Bloomberg
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MIDEAST STOCKS #AbuDhabi hits record high, major Gulf bourses gain | Reuters
MIDEAST STOCKS Abu Dhabi hits record high, major Gulf bourses gain | Reuters
Major stock markets in the Gulf ended higher on Thursday, amid rising oil prices, with the Abu Dhabi index hitting a record high.
Brent crude oil futures were up 39 cents, or 0.5%, at $75.13 a barrel by 1254 GMT, as crude stockpiles in the United States, the world's top oil consumer, fell to their lowest since January 2020.
GCC stock markets opened in the black as U.S. oil stockpiles continued decreasing, revealing strong consumption and an active economic recovery, said Daniel Takieddine, senior market analyst at FXPrimus.
"The reduced stockpile has propped crude prices up which gave a boost to the region's stock markets."
Saudi Arabia's benchmark index (.TASI) rose 0.7%, with Al Rajhi Bank (1120.SE) increasing 1.1% and Saudi Telecom Company (7010.SE) surging 3.4%.
The kingdom's oil exports value increased 147% in May to just over 60 billion riyals ($16.00 billion) from a year earlier while non-oil exports rose by 70%, official data showed on Wednesday. read more
In Abu Dhabi, the index (.ADI) advanced 1%, hitting a record high, buoyed by a 2% rise in First Abu Dhabi Bank (FAB) (FAB.AD).
FAB, the United Arab Emirates' largest lender, on Wednesday posted a net profit of 2.88 billion dirhams ($784.14 million) in the quarter ended June 30, up from 2.4 billion a year earlier. read more
Dubai's main share index (.DFMGI) added 0.5%, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) rising 1.7% and blue-chip developer Emaar Properties (EMAR.DU) closing 1.8%.
The Qatari index (.QSI) rose 0.4%, with petrochemical maker Industries Qatar (IQCD.QA) gaining 1.3%, while Commercial Bank (COMB.QA) added 0.9%, extending gains from the previous session when it recommended a shareholder meeting to increase foreign ownership limit to 100%.
On the other hand, telecoms firm Ooredoo (ORDS.QA) fell 0.7% after it posted a net loss of 1.15 billion riyals ($315.93 million) for the second-quarter, versus profit of 432 million riyals year ago.
Outside the Gulf, Egypt's blue-chip index (.EGX30) lost 0.3%, as most of the stocks on the index were in negative territory including Fawry for Banking Technology and Electronic (FWRY.CA), which was down 3.2%.
Major stock markets in the Gulf ended higher on Thursday, amid rising oil prices, with the Abu Dhabi index hitting a record high.
Brent crude oil futures were up 39 cents, or 0.5%, at $75.13 a barrel by 1254 GMT, as crude stockpiles in the United States, the world's top oil consumer, fell to their lowest since January 2020.
GCC stock markets opened in the black as U.S. oil stockpiles continued decreasing, revealing strong consumption and an active economic recovery, said Daniel Takieddine, senior market analyst at FXPrimus.
"The reduced stockpile has propped crude prices up which gave a boost to the region's stock markets."
Saudi Arabia's benchmark index (.TASI) rose 0.7%, with Al Rajhi Bank (1120.SE) increasing 1.1% and Saudi Telecom Company (7010.SE) surging 3.4%.
The kingdom's oil exports value increased 147% in May to just over 60 billion riyals ($16.00 billion) from a year earlier while non-oil exports rose by 70%, official data showed on Wednesday. read more
In Abu Dhabi, the index (.ADI) advanced 1%, hitting a record high, buoyed by a 2% rise in First Abu Dhabi Bank (FAB) (FAB.AD).
FAB, the United Arab Emirates' largest lender, on Wednesday posted a net profit of 2.88 billion dirhams ($784.14 million) in the quarter ended June 30, up from 2.4 billion a year earlier. read more
Dubai's main share index (.DFMGI) added 0.5%, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) rising 1.7% and blue-chip developer Emaar Properties (EMAR.DU) closing 1.8%.
The Qatari index (.QSI) rose 0.4%, with petrochemical maker Industries Qatar (IQCD.QA) gaining 1.3%, while Commercial Bank (COMB.QA) added 0.9%, extending gains from the previous session when it recommended a shareholder meeting to increase foreign ownership limit to 100%.
On the other hand, telecoms firm Ooredoo (ORDS.QA) fell 0.7% after it posted a net loss of 1.15 billion riyals ($315.93 million) for the second-quarter, versus profit of 432 million riyals year ago.
Outside the Gulf, Egypt's blue-chip index (.EGX30) lost 0.3%, as most of the stocks on the index were in negative territory including Fawry for Banking Technology and Electronic (FWRY.CA), which was down 3.2%.
Etisalat’s second-quarter net profit rises on higher revenue
Etisalat’s second-quarter net profit rises on higher revenue
Etisalat, the UAE’s biggest telecoms operator, reported a slight increase in second-quarter net profit on the back of higher revenue.
The total net profit attributable to owners of the company for the three-month period ending June 30 climbed to Dh2.39 billion ($650 million) from Dh2.38bn during the same period last year, the company said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares trade.
Net profit in the first six months climbed nearly 4 per cent to Dh4.7bn from the same period a year earlier, as revenue grew more than 3 per cent to Dh26.43bn.
Revenue during the second quarter jumped 5.7 per cent year-on-year to Dh13.21bn. Impairment dropped 25 per cent to Dh246.6m.
Etisalat, the UAE’s biggest telecoms operator, reported a slight increase in second-quarter net profit on the back of higher revenue.
The total net profit attributable to owners of the company for the three-month period ending June 30 climbed to Dh2.39 billion ($650 million) from Dh2.38bn during the same period last year, the company said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares trade.
Net profit in the first six months climbed nearly 4 per cent to Dh4.7bn from the same period a year earlier, as revenue grew more than 3 per cent to Dh26.43bn.
Revenue during the second quarter jumped 5.7 per cent year-on-year to Dh13.21bn. Impairment dropped 25 per cent to Dh246.6m.
#SaudiArabia plans $15bln technology fund with private investors- report | ZAWYA MENA Edition
Saudi Arabia plans $15bln technology fund with private investors- report | ZAWYA MENA Edition
A public-private partnership will launch a $15 billion technology fund to advance the digital infrastructure in Saudi Arabia, Arab News reported on Thursday quoting Haytham AlOhali, vice minister of the Ministry of Communications & Information Technology (MCIT).
The minister made the announcement on Wednesday, during the Saudi 4th Industrial Revolution (4IR) conference held in Riyadh, the report said.
Telecom and technology operators invest between $3 billion and $4 billion annually in digital infrastructure, fiber infrastructure, Internet networks and 5G services, and this is not enough for the kingdom to take a lead, said AlOhali.
The public-private partnership will deploy the $15 billion in the kingdom's infrastructure, he said. It will invest in robotics, artificial intelligence, and wireless technology.
The investments in the fourth industrial technology are expected to reach $200 billion in the Kingdom, with value creation coming from improved efficiency and reduction in cost over a 10-year period, said AlOhali, according to Arab News.
A public-private partnership will launch a $15 billion technology fund to advance the digital infrastructure in Saudi Arabia, Arab News reported on Thursday quoting Haytham AlOhali, vice minister of the Ministry of Communications & Information Technology (MCIT).
The minister made the announcement on Wednesday, during the Saudi 4th Industrial Revolution (4IR) conference held in Riyadh, the report said.
Telecom and technology operators invest between $3 billion and $4 billion annually in digital infrastructure, fiber infrastructure, Internet networks and 5G services, and this is not enough for the kingdom to take a lead, said AlOhali.
The public-private partnership will deploy the $15 billion in the kingdom's infrastructure, he said. It will invest in robotics, artificial intelligence, and wireless technology.
The investments in the fourth industrial technology are expected to reach $200 billion in the Kingdom, with value creation coming from improved efficiency and reduction in cost over a 10-year period, said AlOhali, according to Arab News.
Queen's Gambit Growth Captial's Grace on Merger With Ride-Sharing Startup Swvl - Bloomberg
Queen's Gambit Growth Captial's Grace on Merger With Ride-Sharing Startup Swvl - Bloomberg
Victoria Grace, CEO of Queen's Gambit Growth, discusses a SPAC deal with Dubai-based ride hailing company Swvl. She speaks with Caroline Hyde and Sonali Basak on "Bloomberg Markets: European Close". (Source: Bloomberg)
Victoria Grace, CEO of Queen's Gambit Growth, discusses a SPAC deal with Dubai-based ride hailing company Swvl. She speaks with Caroline Hyde and Sonali Basak on "Bloomberg Markets: European Close". (Source: Bloomberg)
Doha Bank CEO Says Reorganizing Program Boosted Results - Bloomberg video
Doha Bank CEO Says Reorganizing Program Boosted Results - Bloomberg
Raghavan Seetharaman, Group CEO of Doha Bank discusses the lender's 2Q21 results and growth expectations in the UAE and Saudi markets. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Billion-dollar whales fill #1MDB’s wide net | Reuters
Billion-dollar whales fill 1MDB’s wide net | Reuters
Malaysia is steadily making good on its 1Malaysia Development Berhad disaster. The Southeast Asian country has so far clawed back $4.3 billion. That’s close to the base headline amount U.S. prosecutors indicated had been misappropriated from the sovereign fund originally set up by disgraced former Prime Minister Najib Razak to buy power plants and fund a new financial district. Now the current government may even be able to recoup enough to cover some $5.4 billion of remaining unfunded dues. Goldman Sachs was the first major player to cough up, with Malaysia extracting a $2.5 billion cash settlement one year ago. The Wall Street firm pocketed lucrative fees helping the fund issue bonds up until 2013, proceeds of which were allegedly misused. Other settlements followed with Deloitte and Malaysian lender AmBank. The U.S. Department of Justice also handed over $1 billion it had recouped, including some from selling assets like a super-yacht, Van Gogh and Monet paintings and a stake in the Park Lane Hotel in New York - all allegedly obtained using stolen funds. The balance left in the pot of money covers the fund’s obligations through 2022, but not the more than $5 billion Malaysia is on the hook for through 2039; that includes $3 billion of principal repayment in 2023. The gap explains why it continues to aggressively pursue claims. The country is targeting Deutsche Bank, JPMorgan and others in some 22 civil lawsuits seeking around $23 billion. This month it confirmed filing suits against 44 current and former partners of KPMG linked to its audit of 1MDB’s financial statements between 2010 and 2012, which Reuters reported are worth $5.6 billion. Companies have refuted the claims or refused to comment. The total owed might shrink, too, depending on the outcome of a dispute with Abu Dhabi: One of the emirate’s sovereign investment vehicles originally co-guaranteed 1MDB bonds but Malaysia has been trying to wriggle out of a related settlement agreement it says is worth $5.8 billion and which was agreed by Najib’s administration before he was ousted. The standoff in arbitration between the two countries may even fizzle out if enough funds are recouped elsewhere. Malaysia needs to secure a fifth or less of its claims to turn its highly embarrassing 1MDB shortfall into a surplus. Its close enough to that milestone for some of its targets to complain about the government’s overreach. The lawyers, at least, will have a field day.
Emirates News Agency - #UAE Central Bank maintains Base Rate at 15 basis points
Emirates News Agency - UAE Central Bank maintains Base Rate at 15 basis points
The Central Bank of the UAE (CBUAE) has decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 15 basis points, effective from Thursday, 29th July 2021.
This decision was taken following the US Federal Reserve Board’s announcement on 28th July 2021, to set the Interest on Reserve Balances (IORB) at 15 basis points, CBUAE said in a statement on Thursday.
The Central Bank also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the Base Rate.
The Base Rate, which signals the general stance of the CBUAE’s monetary policy, shall be anchored to the US Federal Reserve Board’s IORB rate, effective from 29th July 2021. This follows the Federal Reserve’s announcement that, as of 29th July 2021, rates applicable on Interest on Excess Reserves (IOER) and Interest of Requited Reserves (IORR) will be replaced by the single IORB rate.
Previously, the rate applicable to IOER had been the anchor for the CBUAE’s Base Rate.
The Central Bank of the UAE (CBUAE) has decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 15 basis points, effective from Thursday, 29th July 2021.
This decision was taken following the US Federal Reserve Board’s announcement on 28th July 2021, to set the Interest on Reserve Balances (IORB) at 15 basis points, CBUAE said in a statement on Thursday.
The Central Bank also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the Base Rate.
The Base Rate, which signals the general stance of the CBUAE’s monetary policy, shall be anchored to the US Federal Reserve Board’s IORB rate, effective from 29th July 2021. This follows the Federal Reserve’s announcement that, as of 29th July 2021, rates applicable on Interest on Excess Reserves (IOER) and Interest of Requited Reserves (IORR) will be replaced by the single IORB rate.
Previously, the rate applicable to IOER had been the anchor for the CBUAE’s Base Rate.
Oil edges higher on inventory drawdowns, Brent tops $75 a barrel | Reuters
Oil edges higher on inventory drawdowns, Brent tops $75 a barrel | Reuters
Oil prices rose on Thursday as crude stockpiles in the United States, the world's top oil consumer, fell to their lowest since January 2020, with Brent crude oil prices pushing back past $75 a barrel.
Brent crude oil futures gained 37 cents, or 0.5%, to $75.11 a barrel by 0646 GMT, while U.S. West Texas Intermediate (WTI) crude oil futures increased by 39 cents, or 0.5%, to $72.78 a barrel.
Brent topped $75 a barrel for the first time in more than two years in June, but fell back sharply earlier this month on fears about the rapid spread of the Delta variant and a compromise deal by leading OPEC producers to increase supply.
"The (oil inventory) falls suggest the rise in cases of COVID-19's Delta variant is having little impact on mobility," ANZ analysts said in a note on Thursday.
Oil prices rose on Thursday as crude stockpiles in the United States, the world's top oil consumer, fell to their lowest since January 2020, with Brent crude oil prices pushing back past $75 a barrel.
Brent crude oil futures gained 37 cents, or 0.5%, to $75.11 a barrel by 0646 GMT, while U.S. West Texas Intermediate (WTI) crude oil futures increased by 39 cents, or 0.5%, to $72.78 a barrel.
Brent topped $75 a barrel for the first time in more than two years in June, but fell back sharply earlier this month on fears about the rapid spread of the Delta variant and a compromise deal by leading OPEC producers to increase supply.
"The (oil inventory) falls suggest the rise in cases of COVID-19's Delta variant is having little impact on mobility," ANZ analysts said in a note on Thursday.
Wednesday 28 July 2021
Oil settles near $75; sharp U.S. inventory drop counters virus worry | Reuters
Oil settles near $75; sharp U.S. inventory drop counters virus worry | Reuters
Oil settled near $75 a barrel on Wednesday after data showed U.S. crude inventories fell more sharply than analysts had forecast, bringing the market's focus back to tight supplies rather than rising COVID-19 infections.
Crude inventories fell by 4.1 million barrels in the week to July 23, the U.S. Energy Information Administration said. Gasoline and distillate fuel stocks also dropped.
"A rebound in implied demand for both gasoline and distillates, as well as lower refinery runs, has encouraged decent inventory draws for both," said Matt Smith, director of commodity research at ClipperData.
Brent crude settled up 26 cents, or 0.4%, to $74.74 a barrel, after posting on Tuesday its first decline in six days. U.S. West Texas Intermediate (WTI) crude settled up 74 cents, or 1%, to $72.39.
Oil has risen 45% this year, helped by demand recovery and supply curbs by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+.
Oil settled near $75 a barrel on Wednesday after data showed U.S. crude inventories fell more sharply than analysts had forecast, bringing the market's focus back to tight supplies rather than rising COVID-19 infections.
Crude inventories fell by 4.1 million barrels in the week to July 23, the U.S. Energy Information Administration said. Gasoline and distillate fuel stocks also dropped.
"A rebound in implied demand for both gasoline and distillates, as well as lower refinery runs, has encouraged decent inventory draws for both," said Matt Smith, director of commodity research at ClipperData.
Brent crude settled up 26 cents, or 0.4%, to $74.74 a barrel, after posting on Tuesday its first decline in six days. U.S. West Texas Intermediate (WTI) crude settled up 74 cents, or 1%, to $72.39.
Oil has risen 45% this year, helped by demand recovery and supply curbs by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+.
#Dubai based Swvl to list on Nasdaq through $1.5bn SPAC deal
Dubai-based Swvl to list on Nasdaq through $1.5bn SPAC deal
Dubai-based Swvl will become the second technology start-up in the Middle East to list on the Nasdaq through a special purpose acquisition company at a valuation of $1.5 billion, the company said on Wednesday.
The Cairo-born mass transit and shared mobility services provider is set to go public through a merger with Queen’s Gambit Growth Capital, the first SPAC that is led entirely by women.
The combined public company will be named Swvl Holdings Corporation and is expected to list under the ticker symbol SWVL. The transaction is expected to close in the fourth quarter of 2021.
“Dubai-headquartered Swvl is the first Middle East $1.5bn Unicorn to list on Nasdaq US, founded by Mostafa Kandil, 28-year-old entrepreneur,” Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said in a tweet.
“Dubai’s impact on the global start-up scene shows the vision and spirit of the region’s youth in shaping tomorrow’s businesses.”
Dubai-based Swvl will become the second technology start-up in the Middle East to list on the Nasdaq through a special purpose acquisition company at a valuation of $1.5 billion, the company said on Wednesday.
The Cairo-born mass transit and shared mobility services provider is set to go public through a merger with Queen’s Gambit Growth Capital, the first SPAC that is led entirely by women.
The combined public company will be named Swvl Holdings Corporation and is expected to list under the ticker symbol SWVL. The transaction is expected to close in the fourth quarter of 2021.
“Dubai-headquartered Swvl is the first Middle East $1.5bn Unicorn to list on Nasdaq US, founded by Mostafa Kandil, 28-year-old entrepreneur,” Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said in a tweet.
“Dubai’s impact on the global start-up scene shows the vision and spirit of the region’s youth in shaping tomorrow’s businesses.”
Oil nears $75 as U.S. inventory drop counters virus concerns | Reuters
Oil nears $75 as U.S. inventory drop counters virus concerns | Reuters
Oil rose towards $75 a barrel on Wednesday ahead of an industry report expected to show U.S. crude inventories fell, bringing the focus back to a tight supply and demand balance rather than rising coronavirus infections.
Official U.S. Energy Information Administration inventory figures are out at 1430 GMT. On Tuesday, two market sources citing American Petroleum Institute figures said crude stocks fell 4.7 million barrels, more than analysts forecast.
"This price catalyst may inject some much-needed momentum into proceedings, especially after the API set a bullish tone," said Stephen Brennock of broker PVM, referring to the EIA report.
Brent crude rose 41 cents, or 0.6%, to $74.89 a barrel at 1337 GMT, after posting on Tuesday its first decline in six days. U.S. West Texas Intermediate (WTI) crude advanced 48 cents, or 0.7%, to $72.13.
Oil rose towards $75 a barrel on Wednesday ahead of an industry report expected to show U.S. crude inventories fell, bringing the focus back to a tight supply and demand balance rather than rising coronavirus infections.
Official U.S. Energy Information Administration inventory figures are out at 1430 GMT. On Tuesday, two market sources citing American Petroleum Institute figures said crude stocks fell 4.7 million barrels, more than analysts forecast.
"This price catalyst may inject some much-needed momentum into proceedings, especially after the API set a bullish tone," said Stephen Brennock of broker PVM, referring to the EIA report.
Brent crude rose 41 cents, or 0.6%, to $74.89 a barrel at 1337 GMT, after posting on Tuesday its first decline in six days. U.S. West Texas Intermediate (WTI) crude advanced 48 cents, or 0.7%, to $72.13.
#AbuDhabi's Mubadala invests $250mln in biosimulation firm Certara | ZAWYA MENA Edition
Abu Dhabi's Mubadala invests $250mln in biosimulation firm Certara | ZAWYA MENA Edition
Abu Dhabi’s Mubadala Investment Company has made an investment worth approximately $250 million in Certara, a Nasdaq-listed biosimulation company.
Mubadala and certain existing institutional shareholders of Certara, including a shareholder affiliated with EQT, a private equity company, have entered into an agreement under which an affiliate of Mubadala will purchase an aggregate of 9,615,384 shares at $26 per share from the shareholders in a private transaction.
The transaction is scheduled to close on August 2, 2021. EQT will remain a significant shareholder in the company after the transaction, Mubadala said in a statement Wednesday.
The sovereign investor, which manages a global portfolio of $232 billion aimed at generating sustainable financial returns for the Government of Abu Dhabi, said this investment aligned with its strategy of “enabling innovation to address unmet clinical needs and drive cost efficiencies.”
Certara accelerates medicines using biosimulation software and technology to transform traditional drug discovery and development. Its clients include more than 1,650 global biopharmaceutical companies.
Camilla Languille, Head of Life Sciences at Mubadala, said, “Biosimulation is transforming traditional drug development via computational approaches that save time and cost throughout the entire biopharma R&D process. We are proud to have invested in Certara, whose market-leading software is accelerating the development of new medicines that improve the lives of patients.”
Abu Dhabi’s Mubadala Investment Company has made an investment worth approximately $250 million in Certara, a Nasdaq-listed biosimulation company.
Mubadala and certain existing institutional shareholders of Certara, including a shareholder affiliated with EQT, a private equity company, have entered into an agreement under which an affiliate of Mubadala will purchase an aggregate of 9,615,384 shares at $26 per share from the shareholders in a private transaction.
The transaction is scheduled to close on August 2, 2021. EQT will remain a significant shareholder in the company after the transaction, Mubadala said in a statement Wednesday.
The sovereign investor, which manages a global portfolio of $232 billion aimed at generating sustainable financial returns for the Government of Abu Dhabi, said this investment aligned with its strategy of “enabling innovation to address unmet clinical needs and drive cost efficiencies.”
Certara accelerates medicines using biosimulation software and technology to transform traditional drug discovery and development. Its clients include more than 1,650 global biopharmaceutical companies.
Camilla Languille, Head of Life Sciences at Mubadala, said, “Biosimulation is transforming traditional drug development via computational approaches that save time and cost throughout the entire biopharma R&D process. We are proud to have invested in Certara, whose market-leading software is accelerating the development of new medicines that improve the lives of patients.”
MIDEAST STOCKS Most Gulf bourses gain on corporate earnings boost | Reuters
MIDEAST STOCKS Most Gulf bourses gain on corporate earnings boost | Reuters
Most major stock markets in the Gulf ended higher on Wednesday, largely supported by strong corporate earnings, while the Dubai index closed lower and was the only laggard.
Saudi Arabia's benchmark index (.TASI) rose 0.2%, helped by a 0.4% gain in Al Rajhi Bank (1120.SE) and a 0.6% increase in oil behemoth Saudi Aramco (2222.SE).
Ratings firm Fitch raised Aramco's outlook to stable and affirmed its IDR at "A".
In Abu Dhabi, the index (.ADI) advanced 1%, buoyed by a 0.8% rise in conglomerate International Holding (IHC.AD) and a 1.8% increase in Aldar Properties (ALDAR.AD).
Among other gainers, First Abu Dhabi Bank (FAB) (FAB.AD) was up 0.1% after the United Arab Emirates' largest lender posted a net profit of 2.88 billion dirhams ($783.9 million) for the quarter to June 30, up from 2.4 billion a year earlier.
FAB's net impairment charges fell 36% to 677 million dirhams while those of Emirates NBD almost halved to 851 million dirhams.
The Qatari benchmark (.QSI) added 0.4%, with Commercial Bank (COMB.QA) leaping 3.4%, after it recommended a shareholder meeting to increase foreign ownership limit to 100%.
The lender reported a rise in first-half net profit on Tuesday.
Dubai's main share index (.DFMGI) dropped 0.4%, hit by a 1% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.7% decline in Emirates NBD Bank (ENBD.DU).
Emirates NBD posted a second-quarter net profit of 2.46 billion dirhams ($669.79 million), up from 2.01 billion dirhams, but it saw a decline in net interest income. read more
However, Dubai Islamic Bank (DISB.DU) edged up 0.2% after it posted flat quarterly net income.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was up 0.1%.
Egypt's economy will grow 5.0% in the fiscal year that ends in June next year, a Reuters survey predicted on Monday, unchanged from analysts' expectations in a similar poll three months ago and slightly below the government's target of 5.4%. read more
Most major stock markets in the Gulf ended higher on Wednesday, largely supported by strong corporate earnings, while the Dubai index closed lower and was the only laggard.
Saudi Arabia's benchmark index (.TASI) rose 0.2%, helped by a 0.4% gain in Al Rajhi Bank (1120.SE) and a 0.6% increase in oil behemoth Saudi Aramco (2222.SE).
Ratings firm Fitch raised Aramco's outlook to stable and affirmed its IDR at "A".
In Abu Dhabi, the index (.ADI) advanced 1%, buoyed by a 0.8% rise in conglomerate International Holding (IHC.AD) and a 1.8% increase in Aldar Properties (ALDAR.AD).
Among other gainers, First Abu Dhabi Bank (FAB) (FAB.AD) was up 0.1% after the United Arab Emirates' largest lender posted a net profit of 2.88 billion dirhams ($783.9 million) for the quarter to June 30, up from 2.4 billion a year earlier.
FAB's net impairment charges fell 36% to 677 million dirhams while those of Emirates NBD almost halved to 851 million dirhams.
The Qatari benchmark (.QSI) added 0.4%, with Commercial Bank (COMB.QA) leaping 3.4%, after it recommended a shareholder meeting to increase foreign ownership limit to 100%.
The lender reported a rise in first-half net profit on Tuesday.
Dubai's main share index (.DFMGI) dropped 0.4%, hit by a 1% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.7% decline in Emirates NBD Bank (ENBD.DU).
Emirates NBD posted a second-quarter net profit of 2.46 billion dirhams ($669.79 million), up from 2.01 billion dirhams, but it saw a decline in net interest income. read more
However, Dubai Islamic Bank (DISB.DU) edged up 0.2% after it posted flat quarterly net income.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was up 0.1%.
Egypt's economy will grow 5.0% in the fiscal year that ends in June next year, a Reuters survey predicted on Monday, unchanged from analysts' expectations in a similar poll three months ago and slightly below the government's target of 5.4%. read more
Arqaam's Meijer on MENA Banks' 1H Results - Bloomberg video
Arqaam's Meijer on MENA Banks' 1H Results - Bloomberg
Jaap Meijer, MD & Head of Equities Research, Arqaam Capital discusses the latest HY results from banks Emirates NBD and FAB; analyzes Saudi stocks and gives his investment picks. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Insufficient funds to pay indemnity for expats in #Kuwait government offices | ZAWYA MENA Edition
Insufficient funds to pay indemnity for expats in Kuwait government offices | ZAWYA MENA Edition
The Civil Service Commission (CSC) called on the Ministry of Finance to strengthen its budget to pay end-of-service benefits to resident employees whose services have ended in government institutions, reports Al-Qabas daily quoting reliable sources.
The same sources told the daily the payment of dues of expatriate employees who are replaced by the citizens in government institutions is facing a delay of up to months, which has caused a number of them leaving before the dues are paid, or some of them remain with notices to leave the country until the dues are paid.
The sources attributed the matter to the high number of residents whose services were terminated within the replacement policy, which caused the budget allocated for this item to be depleted.
The sources stated the Ministry of Finance has not yet responded to the CSC demand to inject funds into the budget for the end-of-service bonuses item, while the end of their services are awaiting their disbursement, indicating that the solution to the Kuwaitization and the adjustment of the demographic structure must be in cooperation between all concerned parties until it is done as required financially and administratively, noting that the termination of the services of residents cannot bear fruit in modifying the demographic structure unless their dues are disbursed to ensure their departure from the country.
The sources concluded that one of the conditions for disbursing the end-of-service indemnities is to attach a notice of departure by the employee whose services are terminated, indicating that some of them obtain temporary residences until the completion of their financial procedures and obtaining their financial dues, but these temporary residences expire before the payment of dues due to the budget deficit.
The Civil Service Commission (CSC) called on the Ministry of Finance to strengthen its budget to pay end-of-service benefits to resident employees whose services have ended in government institutions, reports Al-Qabas daily quoting reliable sources.
The same sources told the daily the payment of dues of expatriate employees who are replaced by the citizens in government institutions is facing a delay of up to months, which has caused a number of them leaving before the dues are paid, or some of them remain with notices to leave the country until the dues are paid.
The sources attributed the matter to the high number of residents whose services were terminated within the replacement policy, which caused the budget allocated for this item to be depleted.
The sources stated the Ministry of Finance has not yet responded to the CSC demand to inject funds into the budget for the end-of-service bonuses item, while the end of their services are awaiting their disbursement, indicating that the solution to the Kuwaitization and the adjustment of the demographic structure must be in cooperation between all concerned parties until it is done as required financially and administratively, noting that the termination of the services of residents cannot bear fruit in modifying the demographic structure unless their dues are disbursed to ensure their departure from the country.
The sources concluded that one of the conditions for disbursing the end-of-service indemnities is to attach a notice of departure by the employee whose services are terminated, indicating that some of them obtain temporary residences until the completion of their financial procedures and obtaining their financial dues, but these temporary residences expire before the payment of dues due to the budget deficit.
#UAE Opens 10-Year ‘Golden Visa’ Scheme to All Resident Doctors - Bloomberg
UAE Opens 10-Year ‘Golden Visa’ Scheme to All Resident Doctors - Bloomberg
The United Arab Emirates will allow all resident doctors to apply for so-called “golden visas,” a 10-year permit covering specialized sectors including science, innovation and health care.
Doctors licensed by UAE health regulators can apply before September 2022, state-run news agency WAM reported Wednesday.
The long-term visa allows foreigners to work, live and study without needing an Emirati sponsor. Expat residents make up nearly 90% of the UAE population but many left as the pandemic eliminated some employment opportunities.
The United Arab Emirates will allow all resident doctors to apply for so-called “golden visas,” a 10-year permit covering specialized sectors including science, innovation and health care.
Doctors licensed by UAE health regulators can apply before September 2022, state-run news agency WAM reported Wednesday.
The long-term visa allows foreigners to work, live and study without needing an Emirati sponsor. Expat residents make up nearly 90% of the UAE population but many left as the pandemic eliminated some employment opportunities.
LNG price recovery spurs investment in race against carbon targets | Reuters
LNG price recovery spurs investment in race against carbon targets | Reuters
The investment outlook for liquefied natural gas (LNG) has improved this year but project go-aheads will not match the bonanza of 2019, as the fight against climate change clouds the prospects for gas demand growth longer term.
Renewed optimism as the industry emerges from the pandemic, rapidly rebounding oil and gas prices and a better economic outlook is building confidence in short and long term LNG demand in Asia and spurring companies to look at new LNG projects, most of which were shelved last year when prices slumped.
However they need to take into account the ever tighter carbon emissions targets that governments are setting for 2030 and beyond.
For oil and gas producers, LNG is seen as the best option for helping their customers cut carbon emissions, especially in the Asia Pacific, where it can replace coal as a fuel, at least until clean hydrogen becomes affordable.
Global LNG demand is expected to grow by 53% to 560 million tonnes per annum (mtpa) between 2020 and 2030, consultancy Wood Mackenzie said.
To help meet that demand, Qatar Petroleum earlier this year gave the go-ahead for the world’s biggest LNG project, a 32 mtpa expansion of its North Field LNG, while Gazprom started construction of the 13 mtpa Baltic LNG project in Russia.
“Robust demand growth notwithstanding, the addition of significant new Qatari and Russian capacity means that LNG developers are now racing to get their projects through an increasingly narrow proverbial door within this decade,” WoodMac vice president Valery Chow said.
The investment outlook for liquefied natural gas (LNG) has improved this year but project go-aheads will not match the bonanza of 2019, as the fight against climate change clouds the prospects for gas demand growth longer term.
Renewed optimism as the industry emerges from the pandemic, rapidly rebounding oil and gas prices and a better economic outlook is building confidence in short and long term LNG demand in Asia and spurring companies to look at new LNG projects, most of which were shelved last year when prices slumped.
However they need to take into account the ever tighter carbon emissions targets that governments are setting for 2030 and beyond.
For oil and gas producers, LNG is seen as the best option for helping their customers cut carbon emissions, especially in the Asia Pacific, where it can replace coal as a fuel, at least until clean hydrogen becomes affordable.
Global LNG demand is expected to grow by 53% to 560 million tonnes per annum (mtpa) between 2020 and 2030, consultancy Wood Mackenzie said.
To help meet that demand, Qatar Petroleum earlier this year gave the go-ahead for the world’s biggest LNG project, a 32 mtpa expansion of its North Field LNG, while Gazprom started construction of the 13 mtpa Baltic LNG project in Russia.
“Robust demand growth notwithstanding, the addition of significant new Qatari and Russian capacity means that LNG developers are now racing to get their projects through an increasingly narrow proverbial door within this decade,” WoodMac vice president Valery Chow said.
Alpha Dhabi profit rises sharply on acquisitions
Alpha Dhabi profit rises sharply on acquisitions
Alpha Dhabi Holding, a subsidiary of Abu Dhabi's International Holding Company, reported a sharp rise in second-quarter net income as it continues to expand business through strategic acquisitions.
Net income attributable to shareholders of the company for the three months to the end of June climbed to Dh731.12 million ($199m), from Dh28.45m a year earlier, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
The company's quarterly net income after tax climbed to Dh1.62bn, from Dh27.75m in the second quarter of 2020.
The rise in profitability reflects “the impact of the transformative change during the year”, Alpha Dhabi said.
Alpha Dhabi shares climbed almost 2 per cent to Dh27 on more than 54 million shares trade at 11:40am. Its parent IHC advanced 2.9 per cent to Dh134.80 while Abu Dhabi's benchmark general index rose 0.74 per cent.
Alpha Dhabi Holding, a subsidiary of Abu Dhabi's International Holding Company, reported a sharp rise in second-quarter net income as it continues to expand business through strategic acquisitions.
Net income attributable to shareholders of the company for the three months to the end of June climbed to Dh731.12 million ($199m), from Dh28.45m a year earlier, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
The company's quarterly net income after tax climbed to Dh1.62bn, from Dh27.75m in the second quarter of 2020.
The rise in profitability reflects “the impact of the transformative change during the year”, Alpha Dhabi said.
Alpha Dhabi shares climbed almost 2 per cent to Dh27 on more than 54 million shares trade at 11:40am. Its parent IHC advanced 2.9 per cent to Dh134.80 while Abu Dhabi's benchmark general index rose 0.74 per cent.
#UAE News: Top Banks See Profits Surge as Impairments Drop on Recovery - Bloomberg
UAE News: Top Banks See Profits Surge as Impairments Drop on Recovery - Bloomberg
The three largest banks in the United Arab Emirates reported a drop in impairment charges by nearly a third in the first half as they took advantage of an economic recovery from the Covid-19 pandemic.
Emirates NBD PJSC, Dubai’s biggest lender, and its counterpart in the UAE capital, First Abu Dhabi Bank PJSC, posted an increase in profit in the first half, supported by higher fee income and a drop in the cost of risk. Dubai Islamic Bank’s first-half impairments fell 29% even though profit dropped.
The results reflect an improvement in economic conditions in the UAE, OPEC’s third-biggest producer, whose vaccine rollout fed an upswing in activity and as oil prices rebounded. Executives emphasized lower-than-expected loan-loss charges, pointing to their banks’ strengthening balance sheets and adequate provisioning while still sounding caution about the outlook.
Emirates NBD’s profit rose 17% to 4.8 billion dirhams ($1.3 billion) and impairment allowances dropped by 38% in the first half, according to a statement Wednesday.
Its performance improved as “the impact of lower interest rates was more than offset by firm cost management and a significant improvement in the cost of risk to pre-pandemic levels,” said Group Chief Executive Officer Shayne Nelson.
First Abu Dhabi Bank said second-quarter profit rose 19% to 2.88 billion dirhams, helped by higher fee income and sharp gains in its investments and derivatives. Impairments dropped 36%, the lender said.
Emirates NBD 1H Results and Outlook:
First Abu Dhabi Bank 2Q Results and Outlook:
Dubai Islamic Bank 1H Results
The three largest banks in the United Arab Emirates reported a drop in impairment charges by nearly a third in the first half as they took advantage of an economic recovery from the Covid-19 pandemic.
Emirates NBD PJSC, Dubai’s biggest lender, and its counterpart in the UAE capital, First Abu Dhabi Bank PJSC, posted an increase in profit in the first half, supported by higher fee income and a drop in the cost of risk. Dubai Islamic Bank’s first-half impairments fell 29% even though profit dropped.
The results reflect an improvement in economic conditions in the UAE, OPEC’s third-biggest producer, whose vaccine rollout fed an upswing in activity and as oil prices rebounded. Executives emphasized lower-than-expected loan-loss charges, pointing to their banks’ strengthening balance sheets and adequate provisioning while still sounding caution about the outlook.
Emirates NBD’s profit rose 17% to 4.8 billion dirhams ($1.3 billion) and impairment allowances dropped by 38% in the first half, according to a statement Wednesday.
Its performance improved as “the impact of lower interest rates was more than offset by firm cost management and a significant improvement in the cost of risk to pre-pandemic levels,” said Group Chief Executive Officer Shayne Nelson.
First Abu Dhabi Bank said second-quarter profit rose 19% to 2.88 billion dirhams, helped by higher fee income and sharp gains in its investments and derivatives. Impairments dropped 36%, the lender said.
Emirates NBD 1H Results and Outlook:
- 1H total income 11.5 billion dirhams vs 12.6 billion
- 1H impairments 2.61 billion dirhams vs 4.21 billion
- 1H cost of risk 114bps vs 172bps
- NIM 2021 guidance raised to 2.40-2.50% from 2.35-2.45%
- Loan growth guidance for the year lowered to low-single digit from low/mid single digit
First Abu Dhabi Bank 2Q Results and Outlook:
- Profit 2.88 billion dirhams, +19% y/y
- Operating income 5.19 billion dirhams, +8.3% y/y
- Net interest income 2.80 billion dirhams, -14% y/y
- Impairments 677 million dirhams, -36% y/y
- 2Q cost of risk 63bps vs 108bps
- 2Q profit driven by double-digit growth in non-interest income
- 1H impairment charges at 1.1 billion dirhams, down 36% year-on-year, “reflecting improving economic conditions, and adequate provision buffers”
- 1H operating costs at 2.8 billion dirhams, up 7% year-on-year
Dubai Islamic Bank 1H Results
- Profit 1.86 billion dirhams, -12% y/y
- Total income 5.84 billion dirhams, -14% y/y
- Impairments 1.50 billion dirhams, -29% y/y
#Dubai's Emirates NBD H1 net profit up 17% to $1.3bln | ZAWYA MENA Edition
Dubai's Emirates NBD H1 net profit up 17% to $1.3bln | ZAWYA MENA Edition
Dubai’s biggest bank Emirates NBD said its net profit rose 17 percent to 4.8 billion dirhams ($1.3 billion) as a recovery in economic conditions led to higher retail lending and improvement in the cost of risk.
Total income, however, fell 9 percent year-on year (y-o-y) to 11.5 billion dirhams, the lender said in a statement Wednesday on Dubai Financial Market where its shares trade. Total expenses fell 6 percent y-o-y to 3.76 billion dirhams “on cost management.”
The bank posted a 22 percent rise in Q2 net profit at 2.46 billion dirham ($670 million) supported by higher fee and commission income and lower impairment charges.
Earnings per share rose to 0.70 dirhams from 0.60 dirhams in the year-ago period.
The lender managed to bring down impairment allowances by 38 percent y-o-y. Cost of risk substantially improved to 114 basis points (bps), the lowest, it claimed, since the pre-pandemic days of 2019.
Net interest margin held stable at 2.45 percent with lower cost of funding as strong Current Account Saving Account (CASA) balances help mitigate the lower yields on loans and liquid assets.
Meanwhile, Emirates Islamic, a part of the Emirates NBD Group, said H1 net profit jumped to 569 million dirhams on the back of higher non-funded income, lower costs and lower impairment allowances.
Dubai’s biggest bank Emirates NBD said its net profit rose 17 percent to 4.8 billion dirhams ($1.3 billion) as a recovery in economic conditions led to higher retail lending and improvement in the cost of risk.
Total income, however, fell 9 percent year-on year (y-o-y) to 11.5 billion dirhams, the lender said in a statement Wednesday on Dubai Financial Market where its shares trade. Total expenses fell 6 percent y-o-y to 3.76 billion dirhams “on cost management.”
The bank posted a 22 percent rise in Q2 net profit at 2.46 billion dirham ($670 million) supported by higher fee and commission income and lower impairment charges.
Earnings per share rose to 0.70 dirhams from 0.60 dirhams in the year-ago period.
The lender managed to bring down impairment allowances by 38 percent y-o-y. Cost of risk substantially improved to 114 basis points (bps), the lowest, it claimed, since the pre-pandemic days of 2019.
Net interest margin held stable at 2.45 percent with lower cost of funding as strong Current Account Saving Account (CASA) balances help mitigate the lower yields on loans and liquid assets.
Meanwhile, Emirates Islamic, a part of the Emirates NBD Group, said H1 net profit jumped to 569 million dirhams on the back of higher non-funded income, lower costs and lower impairment allowances.
#UAE's biggest lender FAB posts 19% jump in Q2 net profit | Reuters
UAE's biggest lender FAB posts 19% jump in Q2 net profit | Reuters
First Abu Dhabi Bank (FAB.AD), the United Arab Emirates' biggest lender, posted on Wednesday a 19% rise in quarterly net profit, underpinned by sharp gains in its investments and derivatives and on higher fee income.
FAB posted a net profit of 2.879 billion dirhams ($783.87 million) in the quarter ended June 30, up from 2.4 billion a year earlier.
Arqaam Capital had forecast a net profit of 2.4 billion dirhams, while EFG Hermes had projected 2.5 billion dirhams.
The lender's operating income was boosted by a sharp jump in derivatives and investments of 1.4 billion dirhams in the second quarter, a surge from 200 million dirhams a year earlier.
Net fee and commission income rose by more than a fifth to 768.8 million dirhams.
Net interest income fell in a weak interest rate environment worldwide while impairment charges dropped amid signs of recovery from the COVID-19 pandemic fallout.
First Abu Dhabi Bank (FAB.AD), the United Arab Emirates' biggest lender, posted on Wednesday a 19% rise in quarterly net profit, underpinned by sharp gains in its investments and derivatives and on higher fee income.
FAB posted a net profit of 2.879 billion dirhams ($783.87 million) in the quarter ended June 30, up from 2.4 billion a year earlier.
Arqaam Capital had forecast a net profit of 2.4 billion dirhams, while EFG Hermes had projected 2.5 billion dirhams.
The lender's operating income was boosted by a sharp jump in derivatives and investments of 1.4 billion dirhams in the second quarter, a surge from 200 million dirhams a year earlier.
Net fee and commission income rose by more than a fifth to 768.8 million dirhams.
Net interest income fell in a weak interest rate environment worldwide while impairment charges dropped amid signs of recovery from the COVID-19 pandemic fallout.
Oil prices gain on U.S. fuel drawdown despite rising COVID-19 cases | Reuters
Oil prices gain on U.S. fuel drawdown despite rising COVID-19 cases | Reuters
Oil prices climbed on Wednesday after industry data showed U.S. crude and product stockpiles dropped more than expected last week, bolstering expectations that demand will outpace supply growth even amid a surge in COVID-19 infections.
Brent crude futures rose 38 cents, or 0.5%, to $74.86 a barrel at 0641 GMT, after shedding 2 cents on Tuesday in the first decline in six days.
U.S. West Texas Intermediate (WTI) crude futures were up 42 cents, or 0.6%, at $72.07 a barrel, reversing Tuesday's 0.4% decline.
"Oil prices are riding the tailwind of a weakening U.S. dollar and falling API crude inventories today," said Margaret Yang, a strategist at Singapore-based DailyFX.
"But the upward momentum appears to be weak amid virus concerns and sporadic lockdowns around the world," Yang added.
Oil prices climbed on Wednesday after industry data showed U.S. crude and product stockpiles dropped more than expected last week, bolstering expectations that demand will outpace supply growth even amid a surge in COVID-19 infections.
Brent crude futures rose 38 cents, or 0.5%, to $74.86 a barrel at 0641 GMT, after shedding 2 cents on Tuesday in the first decline in six days.
U.S. West Texas Intermediate (WTI) crude futures were up 42 cents, or 0.6%, at $72.07 a barrel, reversing Tuesday's 0.4% decline.
"Oil prices are riding the tailwind of a weakening U.S. dollar and falling API crude inventories today," said Margaret Yang, a strategist at Singapore-based DailyFX.
"But the upward momentum appears to be weak amid virus concerns and sporadic lockdowns around the world," Yang added.
Tuesday 27 July 2021
Visa-Backed Paymate Said to Pick Banks for $400 Million IPO - Bloomberg
Visa-Backed Paymate Said to Pick Banks for $400 Million IPO - Bloomberg
Paymate India Pvt, a business-to-business payment solution provider, has selected banks for its Mumbai initial public offering that could raise about $400 million, according to people familiar with the matter.
ICICI Securities Ltd., JM Financial Ltd. and Nomura Holdings Inc. were picked to help arrange the share sale, which could take place as soon as next year, said the people, who asked not to be identified as the discussions are private. Paymate plans to file a draft prospectus for the IPO as early as September, they added.
Deliberations are ongoing and more banks could be added at a later stage, the people said. Representatives for ICICI Securities and JM Financial declined to comment, while representatives for Nomura and Paymate couldn’t be reached immediately for comment.
Paymate, founded by entrepreneur Ajay Adiseshann, has a presence in India and the United Arab Emirates and is expanding across central Europe, the Middle East and Africa, according to its website. The Mumbai-based company counts Visa Inc., Recruit Strategic Partners and boutique investment firm Mayfair 101 among its backers.
Paymate India Pvt, a business-to-business payment solution provider, has selected banks for its Mumbai initial public offering that could raise about $400 million, according to people familiar with the matter.
ICICI Securities Ltd., JM Financial Ltd. and Nomura Holdings Inc. were picked to help arrange the share sale, which could take place as soon as next year, said the people, who asked not to be identified as the discussions are private. Paymate plans to file a draft prospectus for the IPO as early as September, they added.
Deliberations are ongoing and more banks could be added at a later stage, the people said. Representatives for ICICI Securities and JM Financial declined to comment, while representatives for Nomura and Paymate couldn’t be reached immediately for comment.
Paymate, founded by entrepreneur Ajay Adiseshann, has a presence in India and the United Arab Emirates and is expanding across central Europe, the Middle East and Africa, according to its website. The Mumbai-based company counts Visa Inc., Recruit Strategic Partners and boutique investment firm Mayfair 101 among its backers.
Oil prices steady as virus spread counters tight supplies | Reuters
Oil prices steady as virus spread counters tight supplies | Reuters
Oil prices held steady on Tuesday ahead of the release of U.S. inventory data as investors worried that global demand could be dented by surging COVID-19 cases, even though supplies are tightening and vaccination rates rising.
Inventory data was due from the American Petroleum Institute (API) on Tuesday and the U.S. Energy Information Administration on Wednesday.
Analysts polled by Reuters expected the data to show U.S. crude stocks fell by about 2.9 million barrels and gasoline stocks fell by 900,000 barrels in the week to July 23. [EIA/S]
“The API inventory data may jolt crude prices back into life,” said Craig Erlam, senior analyst at OANDA.
Brent futures slipped 2 cents to settle at $74.48 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 26 cents, or 0.4%, to settle at $71.65.
That was the first decline for Brent in six days.
Oil prices held steady on Tuesday ahead of the release of U.S. inventory data as investors worried that global demand could be dented by surging COVID-19 cases, even though supplies are tightening and vaccination rates rising.
Inventory data was due from the American Petroleum Institute (API) on Tuesday and the U.S. Energy Information Administration on Wednesday.
Analysts polled by Reuters expected the data to show U.S. crude stocks fell by about 2.9 million barrels and gasoline stocks fell by 900,000 barrels in the week to July 23. [EIA/S]
“The API inventory data may jolt crude prices back into life,” said Craig Erlam, senior analyst at OANDA.
Brent futures slipped 2 cents to settle at $74.48 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 26 cents, or 0.4%, to settle at $71.65.
That was the first decline for Brent in six days.
RAKBank reports 25% jump in second-quarter net profit amid continued economic recovery
RAKBank reports 25% jump in second-quarter net profit amid continued economic recovery
National Bank of Ras Al Khaimah reported a 25.4 per cent surge in its first-quarter net profit as loans and advances grew and impairment charges fell amid continued economic recovery.
Net income for the three months to the end of June climbed to Dh191.2 million ($52.1m), the bank said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.
Provisions for credit losses for the quarter decreased by Dh114.4m to Dh296.6m, a more than 27 per cent year-on-year drop. Loans and advances grew to Dh33.2 billion, a 3.1 per cent increase from the end of December 2020 level, the bank said.
“This is a crucial turning point for us as we see growth in our loan book and customer deposit and that is a very positive sign,” RAKBank chief executive, Peter England, said. “Our provisions for this quarter are the lowest they have been for many years as we see the re-balancing of our portfolio, which we have undertaken over the years, bear very positive results.”
The second quarter was “very strong” for the bank, with total income also growing after a number of quarters of decline since the beginning of the pandemic, he said.
National Bank of Ras Al Khaimah reported a 25.4 per cent surge in its first-quarter net profit as loans and advances grew and impairment charges fell amid continued economic recovery.
Net income for the three months to the end of June climbed to Dh191.2 million ($52.1m), the bank said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.
Provisions for credit losses for the quarter decreased by Dh114.4m to Dh296.6m, a more than 27 per cent year-on-year drop. Loans and advances grew to Dh33.2 billion, a 3.1 per cent increase from the end of December 2020 level, the bank said.
“This is a crucial turning point for us as we see growth in our loan book and customer deposit and that is a very positive sign,” RAKBank chief executive, Peter England, said. “Our provisions for this quarter are the lowest they have been for many years as we see the re-balancing of our portfolio, which we have undertaken over the years, bear very positive results.”
The second quarter was “very strong” for the bank, with total income also growing after a number of quarters of decline since the beginning of the pandemic, he said.
Amazon-backed Wiliot raises $200 mln in investment led by SoftBank Vision Fund 2 | Reuters
Amazon-backed Wiliot raises $200 mln in investment led by SoftBank Vision Fund 2 | Reuters
Wiliot, a technology company backed by Amazon Web Services (AMZN.O) and Qualcomm Inc (QCOM.O), said on Tuesday it raised $200 million in a funding round led by SoftBank Vision Fund 2.
The company, which makes chips that can be embedded on product packaging to help track items during their manufacturing, shipping, and sale, did not disclose the valuation at which the funds were raised.
Its technology can be integrated into vaccine vials and food packaging, among others. Wiliot says it aims to expand the internet-of-things network to include everyday products.
The company was founded in 2017 and is headquartered in Israel, with a presence in California, Germany, Ukraine, Australia and Taiwan.
Wiliot, a technology company backed by Amazon Web Services (AMZN.O) and Qualcomm Inc (QCOM.O), said on Tuesday it raised $200 million in a funding round led by SoftBank Vision Fund 2.
The company, which makes chips that can be embedded on product packaging to help track items during their manufacturing, shipping, and sale, did not disclose the valuation at which the funds were raised.
Its technology can be integrated into vaccine vials and food packaging, among others. Wiliot says it aims to expand the internet-of-things network to include everyday products.
The company was founded in 2017 and is headquartered in Israel, with a presence in California, Germany, Ukraine, Australia and Taiwan.
#Dubai house prices rise for second straight quarter - Knight Frank | Reuters
Dubai house prices rise for second straight quarter - Knight Frank | Reuters
Dubai residential property prices rose in April-June for a second straight quarter as demand picked up after the pandemic, consultancy Knight Frank said on Tuesday, although average prices are still 26% below the last market peak six years ago.
Average transacted prices rose by almost 1% in the second quarter of this year, following a 0.5% rise in the first, said Faisal Durrani, Knight Frank's Head of Middle East Research.
The uptick put some new energy into a property market that saw a sharp fall in activity at the height of the pandemic and had been in a five-year slump prior to that.
The 1% rise in April-June was the fastest quarterly rise since the summer of 2014. The last time meaningful gains were registered for two consecutive quarters was in the first two quarters of 2014, Durrani told Reuters.
Dubai residential property prices rose in April-June for a second straight quarter as demand picked up after the pandemic, consultancy Knight Frank said on Tuesday, although average prices are still 26% below the last market peak six years ago.
Average transacted prices rose by almost 1% in the second quarter of this year, following a 0.5% rise in the first, said Faisal Durrani, Knight Frank's Head of Middle East Research.
The uptick put some new energy into a property market that saw a sharp fall in activity at the height of the pandemic and had been in a five-year slump prior to that.
The 1% rise in April-June was the fastest quarterly rise since the summer of 2014. The last time meaningful gains were registered for two consecutive quarters was in the first two quarters of 2014, Durrani told Reuters.
Private equity firm TPG raises $5.4 bln for climate fund | Reuters
Private equity firm TPG raises $5.4 bln for climate fund | Reuters
TPG has raised $5.4 billion for its inaugural fund under its climate investing strategy from a number of high-profile investors including Allstate Corp (ALL.N) and Hartford Financial (HIG.N), the private equity firm said on Tuesday.
The TPG Rise Climate was launched in early 2021.
Hank Paulson, a former U.S. Treasury Secretary, is the executive chairman of the fund, while co-founder Jim Coulter is the managing partner.
TPG said the fund is designed to expand the scope of commercially viable climate technologies and its investor base includes Ontario Teachers' Pension Plan Board, Saudi Arabia's Public Investment Fund (PIF) and France's AXA (AXAF.PA).
TPG, which has more than $100 billion in assets under management, is evaluating a public listing, the Wall Street Journal reported last month.
TPG has raised $5.4 billion for its inaugural fund under its climate investing strategy from a number of high-profile investors including Allstate Corp (ALL.N) and Hartford Financial (HIG.N), the private equity firm said on Tuesday.
The TPG Rise Climate was launched in early 2021.
Hank Paulson, a former U.S. Treasury Secretary, is the executive chairman of the fund, while co-founder Jim Coulter is the managing partner.
TPG said the fund is designed to expand the scope of commercially viable climate technologies and its investor base includes Ontario Teachers' Pension Plan Board, Saudi Arabia's Public Investment Fund (PIF) and France's AXA (AXAF.PA).
TPG, which has more than $100 billion in assets under management, is evaluating a public listing, the Wall Street Journal reported last month.
Oil prices flat as tight supply counters virus spread | Reuters
Oil prices flat as tight supply counters virus spread | Reuters
Oil prices were little changed on Tuesday, supported by tight supplies and rising vaccination rates but pressured by worries that surging COVID-19 cases worldwide will weigh on demand.
Brent futures rose 5 cents, or 0.1%, to $74.55 a barrel by 11:10 a.m. EDT (1510 GMT.U.S. West Texas Intermediate (WTI) crude fell 12 cents, or 0.2%, to $71.79.
That still put Brent up for a sixth straight day for the first time since May, on track for its highest close in almost two weeks.
Benchmark prices held their ground even after the United States issued travel warnings to Spain and Portugal because of rising COVID-19 cases.
Oil prices were little changed on Tuesday, supported by tight supplies and rising vaccination rates but pressured by worries that surging COVID-19 cases worldwide will weigh on demand.
Brent futures rose 5 cents, or 0.1%, to $74.55 a barrel by 11:10 a.m. EDT (1510 GMT.U.S. West Texas Intermediate (WTI) crude fell 12 cents, or 0.2%, to $71.79.
That still put Brent up for a sixth straight day for the first time since May, on track for its highest close in almost two weeks.
Benchmark prices held their ground even after the United States issued travel warnings to Spain and Portugal because of rising COVID-19 cases.
Brookfield (BAM) Gets $7 Billion for Impact Fund With Temasek on Board - Bloomberg
Brookfield (BAM) Gets $7 Billion for Impact Fund With Temasek on Board - Bloomberg
Brookfield Asset Management Inc. said it has raised $7 billion for the initial close of its new impact investment fund, pulling in money from Singapore’s sovereign wealth fund and Canadian pension managers for an investment vehicle that will help businesses cut their carbon emissions.
The Toronto-based alternative asset manager said it plans to raise as much as $12.5 billion for the Brookfield Global Transition Fund, which would make it the largest of its kind to date.
Ontario Teachers’ Pension Plan Board and Singapore’s $281 billion Temasek Holdings will be significant initial investors, Brookfield said in a statement. Canadian pension funds PSP Investments and Investment Management Corp. of Ontario have also made meaningful commitments to the fund, Brookfield said, without disclosing how much each is contributing.
Brookfield Asset Management Inc. said it has raised $7 billion for the initial close of its new impact investment fund, pulling in money from Singapore’s sovereign wealth fund and Canadian pension managers for an investment vehicle that will help businesses cut their carbon emissions.
The Toronto-based alternative asset manager said it plans to raise as much as $12.5 billion for the Brookfield Global Transition Fund, which would make it the largest of its kind to date.
Ontario Teachers’ Pension Plan Board and Singapore’s $281 billion Temasek Holdings will be significant initial investors, Brookfield said in a statement. Canadian pension funds PSP Investments and Investment Management Corp. of Ontario have also made meaningful commitments to the fund, Brookfield said, without disclosing how much each is contributing.
MIDEAST STOCKS Most Gulf markets firm on higher oil prices | Reuters
MIDEAST STOCKS Most Gulf markets firm on higher oil prices | Reuters
Most stock markets in the Gulf ended higher on Tuesday, mirroring a rise in oil prices, with the Abu Dhabi index settling at a record high.
Brent crude futures rose 23 cents, or 0.3%, to $74.73 a barrel by 1150 GMT as investors bet tight supply and rising vaccination rates will help offset any impact on demand from surging COVID-19 cases worldwide.
GCC markets have recovered as oil prices stabilized following clearer expectations on global demand, FXPRIMUS market analyst Daniel Takieddine said.
"The spread of the delta variant remains an ongoing concern however and could still affect how markets view economic development in the short term."
Saudi Arabia's benchmark index (.TASI) added 0.2%, with Saudi Telecom Co (7010.SE) rising 1.9% and Saudi National Bank (1180.SE), the kingdom's largest lender, closing 0.9% higher.
Elsewhere, Yanbu Cement Co (3060.SE) rose more than 3% after its board proposed a cash dividend of 1.25 riyals per share.
Dubai's main share index (.DFMGI) edged up 0.1%, helped by a 1.1% increase in top lender Emirates NBD (ENBD.DU) ahead of its earnings announcement.
Blue-chip developer Emaar Properties (EMAR.DU) added 0.5%.
In Abu Dhabi, the index (.ADI) ended flat to stay at a record high
Dana Gas (DANA.AD) advanced 2%, extending gains for a third consecutive session, after the energy firm won an arbitration on the sale of assets in Egypt.
The company said in April that IPR Wastani Petroleum Ltd, a member of the IPR Energy Group, had requested arbitration after Dana Gas cancelled a sale of oil and gas assets in Egypt. read more
The Qatari index (.QSI) eased 0.1 due to a 0.8% fall in Commercial Bank (COMB.QA) and a 1.5% decline in telecoms firm Ooredoo (ORDS.QA), ahead of its board meeting on Wednesday to discuss first-half earnings.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.6%, with Fawry for Banking Technology and Electronic (FWRY.CA) rising 3.4%.
Egypt's economy will grow 5% in the fiscal year that ends in June next year, a Reuters survey predicted on Monday, unchanged from analysts' expectations in a similar poll three months ago and slightly below the government's target of 5.4%.
Most stock markets in the Gulf ended higher on Tuesday, mirroring a rise in oil prices, with the Abu Dhabi index settling at a record high.
Brent crude futures rose 23 cents, or 0.3%, to $74.73 a barrel by 1150 GMT as investors bet tight supply and rising vaccination rates will help offset any impact on demand from surging COVID-19 cases worldwide.
GCC markets have recovered as oil prices stabilized following clearer expectations on global demand, FXPRIMUS market analyst Daniel Takieddine said.
"The spread of the delta variant remains an ongoing concern however and could still affect how markets view economic development in the short term."
Saudi Arabia's benchmark index (.TASI) added 0.2%, with Saudi Telecom Co (7010.SE) rising 1.9% and Saudi National Bank (1180.SE), the kingdom's largest lender, closing 0.9% higher.
Elsewhere, Yanbu Cement Co (3060.SE) rose more than 3% after its board proposed a cash dividend of 1.25 riyals per share.
Dubai's main share index (.DFMGI) edged up 0.1%, helped by a 1.1% increase in top lender Emirates NBD (ENBD.DU) ahead of its earnings announcement.
Blue-chip developer Emaar Properties (EMAR.DU) added 0.5%.
In Abu Dhabi, the index (.ADI) ended flat to stay at a record high
Dana Gas (DANA.AD) advanced 2%, extending gains for a third consecutive session, after the energy firm won an arbitration on the sale of assets in Egypt.
The company said in April that IPR Wastani Petroleum Ltd, a member of the IPR Energy Group, had requested arbitration after Dana Gas cancelled a sale of oil and gas assets in Egypt. read more
The Qatari index (.QSI) eased 0.1 due to a 0.8% fall in Commercial Bank (COMB.QA) and a 1.5% decline in telecoms firm Ooredoo (ORDS.QA), ahead of its board meeting on Wednesday to discuss first-half earnings.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.6%, with Fawry for Banking Technology and Electronic (FWRY.CA) rising 3.4%.
Egypt's economy will grow 5% in the fiscal year that ends in June next year, a Reuters survey predicted on Monday, unchanged from analysts' expectations in a similar poll three months ago and slightly below the government's target of 5.4%.
Mehra: Staying Away from China Tech - Bloomberg video
Mehra: Staying Away from China Tech - Bloomberg
Deepak Mehra, Head of Investments at Commercial Bank of Dubai discusses China's Tech Crackdown and its implications for global investors. He speaks Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Deepak Mehra, Head of Investments at Commercial Bank of Dubai discusses China's Tech Crackdown and its implications for global investors. He speaks Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Global LNG Market Faces Shakeup From Japan’s Green Shift - Bloomberg
Japan’s aggressive new plan to champion clean energy is shaking up the liquefied natural gas market that it helped pioneer 60 years ago.
The country, the world’s top LNG importer, called for more renewables such as wind and solar to replace natural gas in a revised plan released last week. The shift aims for LNG-fired power generation to fall by roughly half this decade, creating upheaval for Japanese utilities as well as suppliers from Qatar to Australia to the U.S.
The stricter guidelines will see Japan imports drop by a third by the end of the decade, according to traders and analysts. It will force domestic utilities to abandon long-term LNG deals, which have been the backbone of the nation’s imports, while increasing dependence on the more turbulent spot market.
“The move will further dampen Japanese LNG buyers’ appetite to sign long-term deals that extend beyond 2030, which could leave them more exposed to short-term price dynamics if demand ends up higher than targeted,” said Saul Kavonic, an energy analyst at Credit Suisse Group AG.
The policy was a surprise to suppliers around the world. Natural gas -- once widely seen as the bridge to a green future -- has been falling out of favor with some governments as they boost efforts to slow climate change and the cost of renewables drops drastically. Until recently, Japan had been touting the super-chilled fuel as a cleaner alternative to coal.
Analysis: Cash-hungry emerging markets arrive late to the SPAC party | Reuters
Analysis: Cash-hungry emerging markets arrive late to the SPAC party | Reuters
Emerging markets have so far been on the fringes of a fundraising boom using so-called SPACs or special-purpose acquisition companies, which could potentially unlock a vital new source of cash for entrepreneurs in developing regions.
But the take-off of SPAC fundraisings in these markets hinges in part on the success of a few recently-delayed landmark deals, reflecting wider global investor caution about this funding tool.
SPACs allow investors to list a shell company on public markets before they have identified a business to buy, which provides a speedier route to an initial public offering.
In excess of $115.6 billion has been raised via more than 400 SPACS or blank-check companies this year, mainly on Wall Street where SPACs make up two thirds of all Initial Public Offerings (IPOs), although activity has slowed as regulatory and valuation concerns have increased. read more
In contrast, a total of $1.18 billion has been raised this year via six SPACs by emerging market issuers, including two apiece from Israel and China. This is just a fraction of the $96.3 billion raised via traditional IPOs from emerging markets, based on Refinitiv data.
But SPACs are expected to feature more prominently in future fundraisings for emerging market entrepreneurs, opening up more capital and operational expertise.
Just this month, SPACs formed by Abu Dhabi's Mubadala Capital and Singapore's Fat Projects Spac filed with the U.S. Securities and Exchange Commission to raise up to $300 million in IPOs.
Emerging markets have so far been on the fringes of a fundraising boom using so-called SPACs or special-purpose acquisition companies, which could potentially unlock a vital new source of cash for entrepreneurs in developing regions.
But the take-off of SPAC fundraisings in these markets hinges in part on the success of a few recently-delayed landmark deals, reflecting wider global investor caution about this funding tool.
SPACs allow investors to list a shell company on public markets before they have identified a business to buy, which provides a speedier route to an initial public offering.
In excess of $115.6 billion has been raised via more than 400 SPACS or blank-check companies this year, mainly on Wall Street where SPACs make up two thirds of all Initial Public Offerings (IPOs), although activity has slowed as regulatory and valuation concerns have increased. read more
In contrast, a total of $1.18 billion has been raised this year via six SPACs by emerging market issuers, including two apiece from Israel and China. This is just a fraction of the $96.3 billion raised via traditional IPOs from emerging markets, based on Refinitiv data.
But SPACs are expected to feature more prominently in future fundraisings for emerging market entrepreneurs, opening up more capital and operational expertise.
Just this month, SPACs formed by Abu Dhabi's Mubadala Capital and Singapore's Fat Projects Spac filed with the U.S. Securities and Exchange Commission to raise up to $300 million in IPOs.
Oil Steadies With Investors Assessing Demand Amid Delta Spread - Bloomberg
Oil Steadies With Investors Assessing Demand Amid Delta Spread - Bloomberg
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Oil inches up as tight supply, vaccinations outweigh virus concerns | Reuters
Oil inches up as tight supply, vaccinations outweigh virus concerns | Reuters
Oil prices rose on Tuesday with investors betting tight supply and rising vaccination rates will help offset any impact on demand due to surging COVID-19 cases worldwide.
Brent crude futures climbed 34 cents, or 0.46%, to $74.84 a barrel at 0508 GMT, extending a 0.5% gain on Monday.
U.S. West Texas Intermediate (WTI) crude futures rose 20 cents, or 0.28%, to $72.11 a barrel, after losing 16 cents on Monday.
Benchmark prices rose even after the United States issued travel warnings to Spain and Portugal due to rising COVID-19 cases and a White House official told Reuters that wider travel curbs will not be lifted due to the highly infectious Delta variant and rising domestic infections.
“Oil prices are set to range this week after recovering all of the “delta-dip” losses from the last Monday week,” Jeffrey Halley, a senior Asia Pacific market analyst at OANDA, wrote in a note. “Both contracts should continue to consolidate their gains, with volatility much reduced from last week.”
Oil prices rose on Tuesday with investors betting tight supply and rising vaccination rates will help offset any impact on demand due to surging COVID-19 cases worldwide.
Brent crude futures climbed 34 cents, or 0.46%, to $74.84 a barrel at 0508 GMT, extending a 0.5% gain on Monday.
U.S. West Texas Intermediate (WTI) crude futures rose 20 cents, or 0.28%, to $72.11 a barrel, after losing 16 cents on Monday.
Benchmark prices rose even after the United States issued travel warnings to Spain and Portugal due to rising COVID-19 cases and a White House official told Reuters that wider travel curbs will not be lifted due to the highly infectious Delta variant and rising domestic infections.
“Oil prices are set to range this week after recovering all of the “delta-dip” losses from the last Monday week,” Jeffrey Halley, a senior Asia Pacific market analyst at OANDA, wrote in a note. “Both contracts should continue to consolidate their gains, with volatility much reduced from last week.”
Monday 26 July 2021
Oil steadies in undersupplied market but coronavirus cases weigh | Reuters
Oil steadies in undersupplied market but coronavirus cases weigh | Reuters
Oil prices steadied on Monday after a choppy session as the spread of the COVID-19 Delta variant stoked fears about fuel demand, but losses were limited by forecasts that crude supply will be tight the rest of the year.
Brent crude futures rose 40 cents, or 0.5%, to end the session at $74.50 a barrel, while U.S. West Texas Intermediate crude slipped by 16 cents, or 0.2%, to settle at $71.91.
Early in the session, both benchmarks fell by more than $1 a barrel.
“Risk appetite has clearly massively improved over the last week and just like other risk assets, oil is taking a breather ahead of an intense few days,” Craig Erlam, senior market analyst at OANDA said.
“The second quarter recovery has got pulses racing at the prospect of what’s to come. The next wave of COVID is a downside risk to that but not to the extent that the previous surges have. Optimism is still strong and for good reason.”
Coronavirus cases kept rising over the weekend, with some countries reporting record daily increases and extending lockdown measures. China, the world’s largest crude importer, has also registered a rise in COVID-19 cases.
Oil prices steadied on Monday after a choppy session as the spread of the COVID-19 Delta variant stoked fears about fuel demand, but losses were limited by forecasts that crude supply will be tight the rest of the year.
Brent crude futures rose 40 cents, or 0.5%, to end the session at $74.50 a barrel, while U.S. West Texas Intermediate crude slipped by 16 cents, or 0.2%, to settle at $71.91.
Early in the session, both benchmarks fell by more than $1 a barrel.
“Risk appetite has clearly massively improved over the last week and just like other risk assets, oil is taking a breather ahead of an intense few days,” Craig Erlam, senior market analyst at OANDA said.
“The second quarter recovery has got pulses racing at the prospect of what’s to come. The next wave of COVID is a downside risk to that but not to the extent that the previous surges have. Optimism is still strong and for good reason.”
Coronavirus cases kept rising over the weekend, with some countries reporting record daily increases and extending lockdown measures. China, the world’s largest crude importer, has also registered a rise in COVID-19 cases.
Gulf rebound set as #SaudiArabia, #UAE seen topping 4% growth in 2022 | Reuters
Gulf rebound set as Saudi Arabia, UAE seen topping 4% growth in 2022 | Reuters
The six economies in the Gulf Cooperation Council (GCC) are set to rebound and grow 2% to nearly 3% this year while the region's two largest economies, Saudi Arabia and the UAE, are forecast to grow over 4% next year, a quarterly Reuters survey showed.
That outlook follows steep declines last year following an oil price crash and the impact of the COVID-19 pandemic, while analysts expected Saudi Arabia, the UAE and Kuwait to benefit from an OPEC+ deal to boost oil production. read more
"Our core assumption was that a longer-term deal would be secured, and we raise our 2022 forecasts on the back of the baseline adjustments, which will enable the UAE, Kuwait and Saudi Arabia to raise oil output and their global market share from May 2022," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Medians in the July 5-26 poll pegged Saudi Arabia's growth at 2.3% this year, down slightly from a forecast of 2.4% in a similar poll three months ago.
The six economies in the Gulf Cooperation Council (GCC) are set to rebound and grow 2% to nearly 3% this year while the region's two largest economies, Saudi Arabia and the UAE, are forecast to grow over 4% next year, a quarterly Reuters survey showed.
That outlook follows steep declines last year following an oil price crash and the impact of the COVID-19 pandemic, while analysts expected Saudi Arabia, the UAE and Kuwait to benefit from an OPEC+ deal to boost oil production. read more
"Our core assumption was that a longer-term deal would be secured, and we raise our 2022 forecasts on the back of the baseline adjustments, which will enable the UAE, Kuwait and Saudi Arabia to raise oil output and their global market share from May 2022," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Medians in the July 5-26 poll pegged Saudi Arabia's growth at 2.3% this year, down slightly from a forecast of 2.4% in a similar poll three months ago.
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