OPEC+ considers options for releasing more oil to the market -sources | Reuters
OPEC+ is considering going beyond its existing deal to boost production by 400,000 barrels per day (bpd) when it meets next week, sources said, against a backdrop of oil near a three-year high and pressure from consumers for more supply.
The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, agreed in July to boost output by 400,000 bpd a month to phase out 5.8 million bpd in cuts. It meets on Monday to review its output policy.
Four OPEC+ sources said adding more oil was being looked at as a scenario, but none gave details on volumes or which month. Another OPEC+ source suggested an increase of 800,000 bpd for one month was a possible scenario, with zero the next month.
The nearest month any increase could occur is November since OPEC+'s last meeting decided the October volumes. read more
Thursday, 30 September 2021
Oil steadies after report China ready to buy more | Reuters
Oil steadies after report China ready to buy more | Reuters
Oil futures were little changed on Thursday as reports China was prepared to buy more oil and other energy supplies to meet growing demand offset price pressure from an unexpected rise in U.S. crude inventories and a strong dollar.
Brent futures for November delivery fell 12 cents, or 0.2%, to settle at $78.52 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 20 cents, or 0.3%, to settle at $75.03.
Earlier in the day prices at both benchmarks dropped over $1 a barrel.
"The expiration of NYMEX products and Brent crude ... spiked volatility," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
Oil futures were little changed on Thursday as reports China was prepared to buy more oil and other energy supplies to meet growing demand offset price pressure from an unexpected rise in U.S. crude inventories and a strong dollar.
Brent futures for November delivery fell 12 cents, or 0.2%, to settle at $78.52 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 20 cents, or 0.3%, to settle at $75.03.
Earlier in the day prices at both benchmarks dropped over $1 a barrel.
"The expiration of NYMEX products and Brent crude ... spiked volatility," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
#UAE Needs Prioritized Stimulus, Reforms for Growth, IMF Says - Bloomberg
UAE Needs Prioritized Stimulus, Reforms for Growth, IMF Says - Bloomberg
The United Arab Emirates should prioritize new fiscal stimulus and structural reforms to ensure sustainable economic growth, the International Monetary Fund said, as the Gulf Arab state prepares to wind down its pandemic-related support measures.
The new reforms should target attracting highly skilled professionals, supporting private sector employment, and increasing trade and foreign investment, the IMF said in a report Thursday. “Going forward, however, support measures should be increasingly targeted to viable sectors and firms and supporting people most in need,” it said.
The UAE’s economy has been recovering and is expected to rally further after Dubai opens its $7 billion World Expo on Friday. Dubai, which is part of the UAE, derives a third of its economy from sectors such as hospitality and wholesale and retail trade, so the launch of the coronavirus-delayed Expo will provide a boost.
“A gradual recovery is expected in 2021,” the IMF said citing a “strong” health response and supportive macroeconomic policies as well as the rebound in tourism and domestic activity related to the delayed Expo 2020. Despite the global and local uncertainty around the economic recovery, “the UAE’s strong reform momentum provides an upside risk to growth,” it said.
As the economy improves, the government is expected to pare its pandemic-related stimulus. Budget spending in the oil-rich Gulf country is estimated at 58 billion dirhams ($15.8 billion) this year, 3 billion dirhams less than in 2019, before the coronavirus threw global spending plans into turmoil.
The United Arab Emirates should prioritize new fiscal stimulus and structural reforms to ensure sustainable economic growth, the International Monetary Fund said, as the Gulf Arab state prepares to wind down its pandemic-related support measures.
The new reforms should target attracting highly skilled professionals, supporting private sector employment, and increasing trade and foreign investment, the IMF said in a report Thursday. “Going forward, however, support measures should be increasingly targeted to viable sectors and firms and supporting people most in need,” it said.
The UAE’s economy has been recovering and is expected to rally further after Dubai opens its $7 billion World Expo on Friday. Dubai, which is part of the UAE, derives a third of its economy from sectors such as hospitality and wholesale and retail trade, so the launch of the coronavirus-delayed Expo will provide a boost.
“A gradual recovery is expected in 2021,” the IMF said citing a “strong” health response and supportive macroeconomic policies as well as the rebound in tourism and domestic activity related to the delayed Expo 2020. Despite the global and local uncertainty around the economic recovery, “the UAE’s strong reform momentum provides an upside risk to growth,” it said.
As the economy improves, the government is expected to pare its pandemic-related stimulus. Budget spending in the oil-rich Gulf country is estimated at 58 billion dirhams ($15.8 billion) this year, 3 billion dirhams less than in 2019, before the coronavirus threw global spending plans into turmoil.
MIDEAST STOCKS Banks boost most Gulf shares; #AbuDhabi dips | Reuters
MIDEAST STOCKS Banks boost most Gulf shares; Abu Dhabi dips | Reuters
Jumps in financial shares helped most stock markets in the Gulf close higher on Thursday, with indexes heading for a quarterly gain, although the Abu Dhabi benchmark bucked the trend to end lower for the day.
The GCC has outperformed on the back of oil price strength. There might be a concerning signal in the last month's weakness in non-commodity sectors in Saudi, said Hasnain Malik of Tellimer
The most value and potential for recovery in the region is seen in Dubai, he said.
Saudi Arabia's benchmark index (.TASI) closed up 1%, adding a 4.7% over the July-September period, although at a slower pace than the previous two quarters.
Al Rajhi Bank (1120.SE) jumped and Saudi National Bank (1180.SE) jumped 1.3% and 2% receptively after brokerage firm EFG Hermes raised target prices.
Saudi Telecom (7010.SE) added nearly 2% after its unit, solutions by stc (7202.SE), surged nearly 30% on its first day of trading amid a rush of initial public offerings.
Oil prices, a key catalyst for the Gulf's financial shares, will see modest gains for the rest of the year and into 2022 as consumption resumes its recovery to pre-pandemic levels, with a likely COVID-19 resurgence still looming large over the outlook, a Reuters poll showed on Thursday. read more
In Dubai, the main share index (.DFMGI) rose 0.7%, logging a slower quarterly gain of 1.2% so far in this year, supported by a 1.1% rise in Emirates NBD Bank (ENBD.DU) and a 1.2% leap in blue-chip developer Emaar Properties (EMAR.DU).
Abu Dhabi's index (.ADI) ended the month down 0.4%, but eked out 12.6% for the quarter. The country's largest lender First Abu Dhabi Bank (FAB.AD) dropped 1.7% and Abu Dhabi Commercial Bank (ADCB.AD) lost 0.7%.
In Qatar, the benchmark (.QSI) gained 0.5% as petrochemical company Industries Qatar (IQCD.QA) increased 1.4%, logging a seventh consecutive sessions of rise.
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 1% higher, bolstered by a 1.8% jump in its top lender Commercial International Bank-CIB (COMI.CA).
Jumps in financial shares helped most stock markets in the Gulf close higher on Thursday, with indexes heading for a quarterly gain, although the Abu Dhabi benchmark bucked the trend to end lower for the day.
The GCC has outperformed on the back of oil price strength. There might be a concerning signal in the last month's weakness in non-commodity sectors in Saudi, said Hasnain Malik of Tellimer
The most value and potential for recovery in the region is seen in Dubai, he said.
Saudi Arabia's benchmark index (.TASI) closed up 1%, adding a 4.7% over the July-September period, although at a slower pace than the previous two quarters.
Al Rajhi Bank (1120.SE) jumped and Saudi National Bank (1180.SE) jumped 1.3% and 2% receptively after brokerage firm EFG Hermes raised target prices.
Saudi Telecom (7010.SE) added nearly 2% after its unit, solutions by stc (7202.SE), surged nearly 30% on its first day of trading amid a rush of initial public offerings.
Oil prices, a key catalyst for the Gulf's financial shares, will see modest gains for the rest of the year and into 2022 as consumption resumes its recovery to pre-pandemic levels, with a likely COVID-19 resurgence still looming large over the outlook, a Reuters poll showed on Thursday. read more
In Dubai, the main share index (.DFMGI) rose 0.7%, logging a slower quarterly gain of 1.2% so far in this year, supported by a 1.1% rise in Emirates NBD Bank (ENBD.DU) and a 1.2% leap in blue-chip developer Emaar Properties (EMAR.DU).
Abu Dhabi's index (.ADI) ended the month down 0.4%, but eked out 12.6% for the quarter. The country's largest lender First Abu Dhabi Bank (FAB.AD) dropped 1.7% and Abu Dhabi Commercial Bank (ADCB.AD) lost 0.7%.
In Qatar, the benchmark (.QSI) gained 0.5% as petrochemical company Industries Qatar (IQCD.QA) increased 1.4%, logging a seventh consecutive sessions of rise.
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 1% higher, bolstered by a 1.8% jump in its top lender Commercial International Bank-CIB (COMI.CA).
UAE set for gradual recovery, but COVID-19 risks cloud outlook, IMF says | Reuters
UAE set for gradual recovery, but COVID-19 risks cloud outlook, IMF says | Reuters
The United Arab Emirates is set for a gradual economic recovery, thanks in part to its strong response to the coronavirus crisis and a rebound in tourism, the International Monetary Fund said, but the risk of a pandemic resurgence clouds the outlook.
The Gulf's second largest economy suffered a deep recession last year as curbs against the COVID-19 pandemic hurt vital sectors such as trade and tourism, while record low oil prices weighed on petroleum revenues.
The IMF estimated a contraction of 6.1% in gross domestic product in 2020, but said the recovery had begun to gain momentum.
"A gradual recovery is expected in 2021, supported by the UAE’s early and strong health response, continued supportive macroeconomic policies, and rebound in tourism and domestic activity related to the delayed Expo 2020, set to begin in October," the IMF said in a statement on Thursday.
The United Arab Emirates is set for a gradual economic recovery, thanks in part to its strong response to the coronavirus crisis and a rebound in tourism, the International Monetary Fund said, but the risk of a pandemic resurgence clouds the outlook.
The Gulf's second largest economy suffered a deep recession last year as curbs against the COVID-19 pandemic hurt vital sectors such as trade and tourism, while record low oil prices weighed on petroleum revenues.
The IMF estimated a contraction of 6.1% in gross domestic product in 2020, but said the recovery had begun to gain momentum.
"A gradual recovery is expected in 2021, supported by the UAE’s early and strong health response, continued supportive macroeconomic policies, and rebound in tourism and domestic activity related to the delayed Expo 2020, set to begin in October," the IMF said in a statement on Thursday.
Oil prices little changed on report China ready to buy more | Reuters
Oil prices little changed on report China ready to buy more | Reuters
Oil prices erased most of their losses and were trading little changed on Thursday following reports China was prepared to buy more oil to meet growing demand.
Brent futures for November delivery fell 11 cents, or 0.1%, to $78.53 a barrel by 11:43 a.m. EDT (1543 GMT), while U.S. West Texas Intermediate (WTI) crude rose 48 cents, or 0.6%, to $75.31.
Brent futures for December, which will soon be the front-month, were up 0.3% to $78.30 a barrel.
Earlier in the day prices fell over $1 a barrel on higher U.S. crude oil inventories and a strong dollar .
Phil Flynn, senior analyst at Price Futures Group in Chicago, said the late morning futures price move higher was due to a report that China was prepared to buy more oil.
Oil prices erased most of their losses and were trading little changed on Thursday following reports China was prepared to buy more oil to meet growing demand.
Brent futures for November delivery fell 11 cents, or 0.1%, to $78.53 a barrel by 11:43 a.m. EDT (1543 GMT), while U.S. West Texas Intermediate (WTI) crude rose 48 cents, or 0.6%, to $75.31.
Brent futures for December, which will soon be the front-month, were up 0.3% to $78.30 a barrel.
Earlier in the day prices fell over $1 a barrel on higher U.S. crude oil inventories and a strong dollar .
Phil Flynn, senior analyst at Price Futures Group in Chicago, said the late morning futures price move higher was due to a report that China was prepared to buy more oil.
#SaudiArabia keeps focus on deficit cut with 2022 budget | Reuters
Saudi Arabia keeps focus on deficit cut with 2022 budget | Reuters
Saudi Arabia expects to post a deficit of 2.7% of gross domestic product this year and to reduce it further next year, it said in a preliminary budget statement for 2022, maintaining a focus on fiscal adjustment despite projected higher crude revenues.
Saudi Arabia had budgeted a 4.9% deficit for 2021 but that figure has now been revised to a 2.7% forecast, which the kingdom plans to reduce further to 1.6% of GDP in 2022.
According to its projections, Saudi Arabia would switch to a 0.8% surplus in 2023.
"The key message to us is a continued focus on expenditure restraint to stabilise the fiscal position", said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
The improvement in the kingdom's fiscal position this year was driven by a jump in revenues, from a budgeted 849 billion riyals to a revised estimate of 930 billion riyals, as oil production increased and crude prices rebounded.
The largest Arab economy suffered a deep recession last year as the coronavirus crisis hurt its nascent non-oil economic sectors while record-low oil prices weighed on state coffers, widening the 2020 budget deficit to 11.2% of GDP.
Riyadh forecasts economic growth of 2.6% this year and 7.5% in 2022, it said in the budget statement.
Saudi Arabia expects to post a deficit of 2.7% of gross domestic product this year and to reduce it further next year, it said in a preliminary budget statement for 2022, maintaining a focus on fiscal adjustment despite projected higher crude revenues.
Saudi Arabia had budgeted a 4.9% deficit for 2021 but that figure has now been revised to a 2.7% forecast, which the kingdom plans to reduce further to 1.6% of GDP in 2022.
According to its projections, Saudi Arabia would switch to a 0.8% surplus in 2023.
"The key message to us is a continued focus on expenditure restraint to stabilise the fiscal position", said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
The improvement in the kingdom's fiscal position this year was driven by a jump in revenues, from a budgeted 849 billion riyals to a revised estimate of 930 billion riyals, as oil production increased and crude prices rebounded.
The largest Arab economy suffered a deep recession last year as the coronavirus crisis hurt its nascent non-oil economic sectors while record-low oil prices weighed on state coffers, widening the 2020 budget deficit to 11.2% of GDP.
Riyadh forecasts economic growth of 2.6% this year and 7.5% in 2022, it said in the budget statement.
Someone Is Betting That Oil Will Soar to a Record $200 a Barrel - Bloomberg
Someone Is Betting That Oil Will Soar to a Record $200 a Barrel - Bloomberg
Could the energy crunch get so bad that oil prices hit $200 a barrel? One options trader thinks so.
Brent $200 calls for December 2022, options contracts that would profit a buyer from a rally toward that level, traded 1,300 times on Wednesday. While the contracts don’t expire until October next year, they could profit from any sharp spike in prices this winter or next summer.
In a market where a single cargo of crude would currently fetch about $160 million, the $130,000 wager on oil reaching an all-time high is tiny. However, it reflects the fact that a growing number of options traders are betting that an energy crunch this winter may see prices rip higher.
Brent crude, the global benchmark, hit $80 for the first time in three years this week. Market watchers see demand exceeding supply to the tune of more than a million barrels a day and expect that switching from gas to oil because of high power prices could exacerbate that deficit. Bank of America Corp. this week underlined an earlier call that crude could top $100 a barrel at some point over the winter, if it is exceptionally cold.
It’s not just $200 calls that have been trading in recent days. Holdings in Brent $100 calls through to the end of next year have climbed by 20,000 contracts this month.
Could the energy crunch get so bad that oil prices hit $200 a barrel? One options trader thinks so.
Brent $200 calls for December 2022, options contracts that would profit a buyer from a rally toward that level, traded 1,300 times on Wednesday. While the contracts don’t expire until October next year, they could profit from any sharp spike in prices this winter or next summer.
In a market where a single cargo of crude would currently fetch about $160 million, the $130,000 wager on oil reaching an all-time high is tiny. However, it reflects the fact that a growing number of options traders are betting that an energy crunch this winter may see prices rip higher.
Brent crude, the global benchmark, hit $80 for the first time in three years this week. Market watchers see demand exceeding supply to the tune of more than a million barrels a day and expect that switching from gas to oil because of high power prices could exacerbate that deficit. Bank of America Corp. this week underlined an earlier call that crude could top $100 a barrel at some point over the winter, if it is exceptionally cold.
It’s not just $200 calls that have been trading in recent days. Holdings in Brent $100 calls through to the end of next year have climbed by 20,000 contracts this month.
Oil to gain as demand recovery resumes, but virus risks remain: Reuters poll | Reuters
Oil to gain as demand recovery resumes, but virus risks remain: Reuters poll | Reuters
Oil prices will see modest gains for the rest of the year and into 2022 as consumption resumes its recovery to pre-pandemic levels, with a likely COVID-19 resurgence still looming large over the outlook, a Reuters poll showed on Thursday.
The survey of 39 participants forecast Brent would average $68.87 per barrel in 2021, up from the $68.02 consensus in August, when the Delta variant's spread prompted the first downward revision in the 2021 outlook in about nine months.
Citing a faster fuel demand recovery and storm-led Gulf of Mexico supply disruptions, Goldman Sachs recently hiked its year-end Brent forecast to $90, but flagged a potential new virus variant and a ramp-up in OPEC+ production as risks. read more
"Demand growth will continue to support oil prices, balanced by the expected increase in OPEC+ production between now and the end-2021," Ann-Louise Hittle, vice president, oils research at WoodMac said.
Brent has averaged about $68 this year, but topped $80 a barrel mark this week amid growing demand and expectations that producers will decide to keep supplies tight when the Organization of the Petroleum Exporting Countries meets next week.
Oil prices will see modest gains for the rest of the year and into 2022 as consumption resumes its recovery to pre-pandemic levels, with a likely COVID-19 resurgence still looming large over the outlook, a Reuters poll showed on Thursday.
The survey of 39 participants forecast Brent would average $68.87 per barrel in 2021, up from the $68.02 consensus in August, when the Delta variant's spread prompted the first downward revision in the 2021 outlook in about nine months.
Citing a faster fuel demand recovery and storm-led Gulf of Mexico supply disruptions, Goldman Sachs recently hiked its year-end Brent forecast to $90, but flagged a potential new virus variant and a ramp-up in OPEC+ production as risks. read more
"Demand growth will continue to support oil prices, balanced by the expected increase in OPEC+ production between now and the end-2021," Ann-Louise Hittle, vice president, oils research at WoodMac said.
Brent has averaged about $68 this year, but topped $80 a barrel mark this week amid growing demand and expectations that producers will decide to keep supplies tight when the Organization of the Petroleum Exporting Countries meets next week.
Oil steady despite higher U.S. inventories and strong dollar | Reuters
Oil steady despite higher U.S. inventories and strong dollar | Reuters
Oil prices held steady on Thursday after rising above $80 a barrel this week, with bearish factors such as rising U.S. crude inventories and a strong dollar countered by an expected supply deficit over the coming months.
Brent crude for November delivery slipped in and out of positive territory during the session. The contract was down 21 cents at $78.43 a barrel by 1107 GMT on its expiry day while December loading crude was at $77.92. U.S. oil dipped 18 cents to $74.65.
U.S. oil and fuel stockpiles increased by 4.6 million barrels to 418.5 million barrels in the week to Sept. 24, the U.S. Energy Department's Energy Information Administration (EIA) said on Wednesday.
In another typically bearish development, the U.S. dollar held near one-year highs, making oil more expensive for holders of other currencies.
Oil prices held steady on Thursday after rising above $80 a barrel this week, with bearish factors such as rising U.S. crude inventories and a strong dollar countered by an expected supply deficit over the coming months.
Brent crude for November delivery slipped in and out of positive territory during the session. The contract was down 21 cents at $78.43 a barrel by 1107 GMT on its expiry day while December loading crude was at $77.92. U.S. oil dipped 18 cents to $74.65.
U.S. oil and fuel stockpiles increased by 4.6 million barrels to 418.5 million barrels in the week to Sept. 24, the U.S. Energy Department's Energy Information Administration (EIA) said on Wednesday.
In another typically bearish development, the U.S. dollar held near one-year highs, making oil more expensive for holders of other currencies.
#Qatar Petroleum secures deal to supply LNG to China for 15 years | ZAWYA MENA Edition
Qatar Petroleum secures deal to supply LNG to China for 15 years | ZAWYA MENA Edition
Qatar Petroleum, one of the world’s biggest liquefied natural gas (LNG) suppliers, has secured a new deal to supply LNG to China for a period of 15 years.
The sale and purchase agreement (SPA) with CNNOC Gas and Power Trading & Marketing Limited, a subsidiary of China National Offshore Oil Corporation, will see Qatar deliver 3.5 million tonnes of LNG per annum (MTPA) starting from January 2022, according to a statement on Wednesday.
CNOOC is China’s top offshore oil and gas producer.
“We are pleased to further build upon our strong relationship with CNOOC with the signing of this new [agreement]. We are especially proud to continue to meet the People’s Republic of China’s growing need for cleaner energy that LNG provides,” said Minister of State for Energy Affairs Saad Sherida Al-Kaabi.
Qatar Petroleum, one of the world’s biggest liquefied natural gas (LNG) suppliers, has secured a new deal to supply LNG to China for a period of 15 years.
The sale and purchase agreement (SPA) with CNNOC Gas and Power Trading & Marketing Limited, a subsidiary of China National Offshore Oil Corporation, will see Qatar deliver 3.5 million tonnes of LNG per annum (MTPA) starting from January 2022, according to a statement on Wednesday.
CNOOC is China’s top offshore oil and gas producer.
“We are pleased to further build upon our strong relationship with CNOOC with the signing of this new [agreement]. We are especially proud to continue to meet the People’s Republic of China’s growing need for cleaner energy that LNG provides,” said Minister of State for Energy Affairs Saad Sherida Al-Kaabi.
#Dubai's DFM trading hours will be extended to five hours | ZAWYA MENA Edition
Dubai's DFM trading hours will be extended to five hours | ZAWYA MENA Edition
Dubai Financial Market (DFM) has notified investors that as of Sunday, October 3, trading hours will be from 10am-3pm, instead of 10am-2pm.
A statement posed on DFM said the move was “part of constant efforts to strengthen UAE markets’ competitiveness and attractiveness as well as to expedite investors’ trading activities.”
Dubai Financial Market (DFM) has notified investors that as of Sunday, October 3, trading hours will be from 10am-3pm, instead of 10am-2pm.
A statement posed on DFM said the move was “part of constant efforts to strengthen UAE markets’ competitiveness and attractiveness as well as to expedite investors’ trading activities.”
#Saudi regulator CMA approves four stake sale applications in Nomu | ZAWYA MENA Edition
Saudi regulator CMA approves four stake sale applications in Nomu | ZAWYA MENA Edition
Saudi Arabia's capital market regulator has approved the share sale applications of four companies in the Nomu Parallel Market.
In statements on the Saudi stock exchange Tadawul, the Capital Market Authority (CMA) said the approval for the companies--Jahez International Company for Information and Technology, Nayifat Finance Co., Group Five Pipe Saudi Co. and East Pipes Integrated Company for Industry--shall be valid for six months.
Jahez International is offering 1,363,934 shares representing 13 percent of its share capital.
Nayifat Finance has applied to offer 35,000,000 shares representing 35 percent its share capital.
Group Five Pipe Saudi Co. has applied to offer 2,800,000 shares representing 10 percent of its share capital.
East Pipes Integrated Company for Industry has applied to offer 6,300,000 shares representing 30 percent of its share capital.
Saudi Arabia's capital market regulator has approved the share sale applications of four companies in the Nomu Parallel Market.
In statements on the Saudi stock exchange Tadawul, the Capital Market Authority (CMA) said the approval for the companies--Jahez International Company for Information and Technology, Nayifat Finance Co., Group Five Pipe Saudi Co. and East Pipes Integrated Company for Industry--shall be valid for six months.
Jahez International is offering 1,363,934 shares representing 13 percent of its share capital.
Nayifat Finance has applied to offer 35,000,000 shares representing 35 percent its share capital.
Group Five Pipe Saudi Co. has applied to offer 2,800,000 shares representing 10 percent of its share capital.
East Pipes Integrated Company for Industry has applied to offer 6,300,000 shares representing 30 percent of its share capital.
#Saudi Internet Services Firm Soars on Debut Amid Gulf IPO Rush - Bloomberg
Saudi Internet Services Firm Soars on Debut Amid Gulf IPO Rush - Bloomberg
Saudi Telecom Co.’s internet-services unit surged on its trading debut in Riyadh after drawing $126 billion in orders for its initial public offering.
Arabian Internet and Communications Services Co., also known as solutions by stc, jumped to 196.20 riyals, hitting the Saudi exchange’s 30% daily trading limit. The company sold shares at 151 riyals apiece, at the top end of its offering range, valuing the company at 18.1 billion riyals ($4.8 billion).
Investors placed bids in the IPO for 130 times the shares on offer, generating more orders than Saudi Aramco’s share sale. solutions by stc raised $966 million by selling 24 million shares, or a 20% stake.
Al Rajhi Capital initiated coverage on the stock with an overweight rating and a price target of 200 riyals. The information and communications technology sector has strong visibility for growth in Saudi Arabia, allowing for market share gains for solutions by stc, Al Rajhi’s Mazen Al-Sudairi and Pritish Devassy wrote in a note.
Saudi Telecom Co.’s internet-services unit surged on its trading debut in Riyadh after drawing $126 billion in orders for its initial public offering.
Arabian Internet and Communications Services Co., also known as solutions by stc, jumped to 196.20 riyals, hitting the Saudi exchange’s 30% daily trading limit. The company sold shares at 151 riyals apiece, at the top end of its offering range, valuing the company at 18.1 billion riyals ($4.8 billion).
Investors placed bids in the IPO for 130 times the shares on offer, generating more orders than Saudi Aramco’s share sale. solutions by stc raised $966 million by selling 24 million shares, or a 20% stake.
Al Rajhi Capital initiated coverage on the stock with an overweight rating and a price target of 200 riyals. The information and communications technology sector has strong visibility for growth in Saudi Arabia, allowing for market share gains for solutions by stc, Al Rajhi’s Mazen Al-Sudairi and Pritish Devassy wrote in a note.
Hottest Market
Riyadh has been the hottest market for IPOs in the Middle East over the past years, though Abu Dhabi is catching up.
ACWA Power International, one of the kingdom’s main vehicles for building renewable energy projects, on Tuesday priced its IPO at the top end of an original range, seeking to raise $1.2 billion. It is set to be the biggest offering in Riyadh since Saudi Aramco’s listing in 2019.
Plenty more IPOs are in the pipeline, including the stock exchange itself, the specialty chemicals business of Saudi Basic Industries Corp. and cargo firm Saudi Arabian Logistics Co.
Riyadh has been the hottest market for IPOs in the Middle East over the past years, though Abu Dhabi is catching up.
ACWA Power International, one of the kingdom’s main vehicles for building renewable energy projects, on Tuesday priced its IPO at the top end of an original range, seeking to raise $1.2 billion. It is set to be the biggest offering in Riyadh since Saudi Aramco’s listing in 2019.
Plenty more IPOs are in the pipeline, including the stock exchange itself, the specialty chemicals business of Saudi Basic Industries Corp. and cargo firm Saudi Arabian Logistics Co.
#Saudi unemployment down marginally to 11.3% in Q2 | Reuters
Saudi unemployment down marginally to 11.3% in Q2 | Reuters
Unemployment in Saudi Arabia declined only marginally to 11.3% in the second quarter from 11.7% in the first three months of the year, official data showed on Thursday, signalling that recovery from the coronavirus crisis has lost some momentum.
Saudi Arabia has been pushing through economic reforms since 2016 to create millions of jobs and aims to reduce unemployment to 7% by 2030, but those plans were disrupted by the COVID-19 pandemic that sent oil prices plummeting.
Unemployment hit a record high of 15.4% in the second quarter last year but it has declined rapidly since then, reaching pre-pandemic levels in the first quarter this year.
The pace of decline slowed down in the second quarter, however, data from the General Authority for Statistics showed on Thursday, while a business survey this month pointed to a sharp drop in output expansion in the private sector. read more
Unemployment in Saudi Arabia declined only marginally to 11.3% in the second quarter from 11.7% in the first three months of the year, official data showed on Thursday, signalling that recovery from the coronavirus crisis has lost some momentum.
Saudi Arabia has been pushing through economic reforms since 2016 to create millions of jobs and aims to reduce unemployment to 7% by 2030, but those plans were disrupted by the COVID-19 pandemic that sent oil prices plummeting.
Unemployment hit a record high of 15.4% in the second quarter last year but it has declined rapidly since then, reaching pre-pandemic levels in the first quarter this year.
The pace of decline slowed down in the second quarter, however, data from the General Authority for Statistics showed on Thursday, while a business survey this month pointed to a sharp drop in output expansion in the private sector. read more
Oil mixed after U.S. inventories post surprise gain | Reuters
Oil mixed after U.S. inventories post surprise gain | Reuters
Oil prices were mixed on Thursday as selling prompted by an unexpected rise in U.S. inventories eased, with analysts predicting supply may not keep up with a recovery in demand.
Brent crude was down 8 cents at $78.56 a barrel by 0615 GMT, after falling 0.6% on Wednesday. U.S. oil rose 11 cents to $74.94 a barrel, having also declined by 0.6% in the previous session.
U.S. oil and fuel stockpiles increased last week, the U.S. Energy Department's Energy Information Administration (EIA) said on Wednesday.
Crude inventories (USOILC=ECI) were up by 4.6 million barrels in the week to Sept. 24 to 418.5 million, EIA data showed, compared with analysts' expectations in a Reuters poll for a 1.7 million-barrel drop.
Oil prices were mixed on Thursday as selling prompted by an unexpected rise in U.S. inventories eased, with analysts predicting supply may not keep up with a recovery in demand.
Brent crude was down 8 cents at $78.56 a barrel by 0615 GMT, after falling 0.6% on Wednesday. U.S. oil rose 11 cents to $74.94 a barrel, having also declined by 0.6% in the previous session.
U.S. oil and fuel stockpiles increased last week, the U.S. Energy Department's Energy Information Administration (EIA) said on Wednesday.
Crude inventories (USOILC=ECI) were up by 4.6 million barrels in the week to Sept. 24 to 418.5 million, EIA data showed, compared with analysts' expectations in a Reuters poll for a 1.7 million-barrel drop.
Wednesday, 29 September 2021
#Dubai Misses Out on the IPO Boom Sweeping Abu Dhabi and Riyadh - Bloomberg
Dubai Misses Out on the IPO Boom Sweeping Abu Dhabi and Riyadh - Bloomberg
Dubai may be the tourist gateway into the Middle East, but equity investors are flocking to its neighbors Abu Dhabi and Riyadh instead, as share sales worth billions of dollars heat up local markets.
Initial public offerings from Saudi Arabia’s ACWA Power International and Saudi Telecom Co.’s internet-services unit, as well as Abu Dhabi Ports and Adnoc Drilling Company PJSC are livening up their home exchanges. Yet, the United Arab Emirates’ other bourse, Dubai, only has delistings like that of Emaar Malls PJSC on the horizon.
Rebounding crude prices in 2021, further boosted by a global energy crunch, are buoying oil-rich Saudi Arabia and Abu Dhabi, which has also worked hard to revive its local bourse. Meanwhile, Dubai’s economy, heavily reliant on hospitality, real estate and tourism, has been ravaged by the pandemic.
“Dubai has a lot of catching up to do: Its liquidity profile is weak in comparison to Abu Dhabi and Riyadh, which are also some of the best-performing emerging markets this year,” said Salah Shamma, Franklin Templeton’s Dubai-based head of equity investment for the Middle East and North Africa.
Before the recent surge in offerings, Abu Dhabi’s stock exchange had gone three-and-a-half years without any IPOs, data compiled by Bloomberg show. Dubai has only seen one small company go public since 2017, while its only prospect of a listing this year went up in smoke when logistics firm Tristar Transport pulled its deal in April.
In other gulf markets, demand for new stocks has been through the roof. Investors placed more than $34 billion of orders for Adnoc Drilling’s $1.1 billion IPO, while Arabian Internet and Communications Services Co., also known as solutions by stc, attracted a whopping 471 billion riyals ($126 billion) in bids for its $966 million offering this month.
A tie-up with Abu Dhabi’s bourse would be one way to bolster Dubai’s market, according to Vijay Valecha, chief investment officer at Dubai-based consultancy Century Financial. “Worldwide, stock exchanges are merging to increase their investor base and improve their daily trading volumes.”
In the meantime, the deals deluge will likely carry on for Abu Dhabi and Riyadh. The Saudi stock exchange itself and the specialty chemicals business of Saudi Basic Industries Corp. are mulling public listings, as are Emirates Global Aluminium and Adnoc’s fertilizer joint venture Fertiglobe, Boomberg News has reported.
Dubai may be the tourist gateway into the Middle East, but equity investors are flocking to its neighbors Abu Dhabi and Riyadh instead, as share sales worth billions of dollars heat up local markets.
Initial public offerings from Saudi Arabia’s ACWA Power International and Saudi Telecom Co.’s internet-services unit, as well as Abu Dhabi Ports and Adnoc Drilling Company PJSC are livening up their home exchanges. Yet, the United Arab Emirates’ other bourse, Dubai, only has delistings like that of Emaar Malls PJSC on the horizon.
Rebounding crude prices in 2021, further boosted by a global energy crunch, are buoying oil-rich Saudi Arabia and Abu Dhabi, which has also worked hard to revive its local bourse. Meanwhile, Dubai’s economy, heavily reliant on hospitality, real estate and tourism, has been ravaged by the pandemic.
“Dubai has a lot of catching up to do: Its liquidity profile is weak in comparison to Abu Dhabi and Riyadh, which are also some of the best-performing emerging markets this year,” said Salah Shamma, Franklin Templeton’s Dubai-based head of equity investment for the Middle East and North Africa.
Before the recent surge in offerings, Abu Dhabi’s stock exchange had gone three-and-a-half years without any IPOs, data compiled by Bloomberg show. Dubai has only seen one small company go public since 2017, while its only prospect of a listing this year went up in smoke when logistics firm Tristar Transport pulled its deal in April.
In other gulf markets, demand for new stocks has been through the roof. Investors placed more than $34 billion of orders for Adnoc Drilling’s $1.1 billion IPO, while Arabian Internet and Communications Services Co., also known as solutions by stc, attracted a whopping 471 billion riyals ($126 billion) in bids for its $966 million offering this month.
A tie-up with Abu Dhabi’s bourse would be one way to bolster Dubai’s market, according to Vijay Valecha, chief investment officer at Dubai-based consultancy Century Financial. “Worldwide, stock exchanges are merging to increase their investor base and improve their daily trading volumes.”
In the meantime, the deals deluge will likely carry on for Abu Dhabi and Riyadh. The Saudi stock exchange itself and the specialty chemicals business of Saudi Basic Industries Corp. are mulling public listings, as are Emirates Global Aluminium and Adnoc’s fertilizer joint venture Fertiglobe, Boomberg News has reported.
Oil prices slip as U.S. inventories rise, despite OPEC's slow road to adding supply | Reuters
Oil prices slip as U.S. inventories rise, despite OPEC's slow road to adding supply | Reuters
Oil prices slipped on Wednesday after U.S. crude inventories rose by more than anticipated, even as OPEC plans to maintain its deliberate approach to adding supply to the market.
U.S. crude stockpiles rose by 4.6 million barrels last week, exceeding expectations, boosted by a rebound in output as offshore facilities shut in by two U.S. Gulf hurricanes resumed activity.
Brent crude settled down 45 cents to $78.64 a barrel, after reaching $80 on Tuesday. U.S. oil prices ended down 46 cents, or 0.6%, to $74.83 a barrel.
The market was also pressured by strength in the U.S. dollar, which hit a one-year high against a basket of other major currencies. Since oil is transacted in dollars, strength in the U.S. currency makes the commodity more expensive worldwide.
Oil prices slipped on Wednesday after U.S. crude inventories rose by more than anticipated, even as OPEC plans to maintain its deliberate approach to adding supply to the market.
U.S. crude stockpiles rose by 4.6 million barrels last week, exceeding expectations, boosted by a rebound in output as offshore facilities shut in by two U.S. Gulf hurricanes resumed activity.
Brent crude settled down 45 cents to $78.64 a barrel, after reaching $80 on Tuesday. U.S. oil prices ended down 46 cents, or 0.6%, to $74.83 a barrel.
The market was also pressured by strength in the U.S. dollar, which hit a one-year high against a basket of other major currencies. Since oil is transacted in dollars, strength in the U.S. currency makes the commodity more expensive worldwide.
Oil prices firm on OPEC's go-it-slow approach to adding supply | Reuters
Oil prices firm on OPEC's go-it-slow approach to adding supply | Reuters
Oil prices rebounded from losses on Wednesday after U.S. crude inventories rose by more than anticipated, and as OPEC plans to maintain its deliberate approach to adding supply to the market despite strong worldwide demand.
U.S. crude stockpiles rose by 4.6 million barrels last week, exceeding expectations, boosted by a rebound in output as offshore facilities shut in by two U.S. Gulf hurricanes resumed activity.
Brent crude rose 7 cents to $79.11 a barrel by 10:51 a.m. ET (1451 GMT). On Tuesday, it fell nearly $2 after touching its highest in almost three years at $80.75.
U.S. oil prices rose 23 cents, or 0.3%, to $75.52.
Oil prices have been charging higher as economies recover from pandemic lockdowns and fuel demand picks up, while some producing countries have seen supply disruptions.
Oil prices rebounded from losses on Wednesday after U.S. crude inventories rose by more than anticipated, and as OPEC plans to maintain its deliberate approach to adding supply to the market despite strong worldwide demand.
U.S. crude stockpiles rose by 4.6 million barrels last week, exceeding expectations, boosted by a rebound in output as offshore facilities shut in by two U.S. Gulf hurricanes resumed activity.
Brent crude rose 7 cents to $79.11 a barrel by 10:51 a.m. ET (1451 GMT). On Tuesday, it fell nearly $2 after touching its highest in almost three years at $80.75.
U.S. oil prices rose 23 cents, or 0.3%, to $75.52.
Oil prices have been charging higher as economies recover from pandemic lockdowns and fuel demand picks up, while some producing countries have seen supply disruptions.
MIDEAST STOCKS Major Gulf markets ease on oil price slide; #Qatar extends gains | Reuters
MIDEAST STOCKS Major Gulf markets ease on oil price slide; Qatar extends gains | Reuters
Most major stock markets in the Gulf ended lower on Wednesday, mirroring a slide in oil prices, while the Qatari index was on track to extend gains from the previous session.
Oil prices fell on Wednesday after U.S. crude inventories unexpectedly rose and amid concerns about a slowing Chinese economy. read more
Brent crude was down 46 cents, or 0.6%, at $78.63 a barrel by 0950 GMT. On Tuesday, it fell nearly $2 after touching its highest in almost three years at $80.75.
Oil prices have been charging higher as economies recover from pandemic lockdowns and fuel demand picks up, while some producing countries have seen supply disruptions.
Saudi Arabia's benchmark index (.TASI) closed flat as gains in consumer shares were capped by losses in energy stocks, with Saudi Arabian Mining Company (1211.SE) increasing 3.3%, while Oil giant Saudi Aramco (2222.SE), which saw its biggest intra-day gain in the last session since March 17 last year, was down 1%.
Aseer Trading Tourism & Manufacturing (4080.SE) surged nearly 10% in its biggest intra-day gain since March 29 this year after the government announced its strategy to develop the Aseer region into a tourism hub as part of the kingdom efforts to diversify its oil-dependent economy, with tourism contributing 10% of gross domestic product by 2030.
Saudi Arabia's crown prince Mohammed bin Salman's 50 billion riyal ($13 billion) strategy is to develop the region on the Red Sea coast that would attract 10 million visitors by 2030. read more
Separately, Saudi Arabia's stock exchange will likely end the year with more than 30 new listings, Mohammed El-Kuwaiz, the chairman of Saudi Arabia's Capital Markets Authority, said on Monday
Pipeline of expected listings is significant, with five new listings approved just in the past two days, three on the main exchange and two in parallel market.
The Abu Dhabi index (.ADI) closed down 0.6%, hit by a 1.1% drop in United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD) and a 0.6% ease in Emirates Telecommunications Group (ETISALAT.AD).
Dubai's main share index (.DFMGI) also declined 0.2%, weighed by a 0.8% fall in Dubai Islamic Bank (DISB.DU) and a 0.7 ease in Air Arabia (AIRA.DU).
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.5%, extending losses for a third-day in a row. Commercial International Bank - COMI (COMI.CA) decreased 1.3% and cigarette maker Eastern Company (EAST.CA) tumbled 3.3%.
The Qatari index (.QSI), however, was up 0.4% as Industries Qatar (IQCD.QA) increased 1.5% in its seventh consecutive rise, while Commercial Bank (COMB.QA) advanced 1.5%.
Most major stock markets in the Gulf ended lower on Wednesday, mirroring a slide in oil prices, while the Qatari index was on track to extend gains from the previous session.
Oil prices fell on Wednesday after U.S. crude inventories unexpectedly rose and amid concerns about a slowing Chinese economy. read more
Brent crude was down 46 cents, or 0.6%, at $78.63 a barrel by 0950 GMT. On Tuesday, it fell nearly $2 after touching its highest in almost three years at $80.75.
Oil prices have been charging higher as economies recover from pandemic lockdowns and fuel demand picks up, while some producing countries have seen supply disruptions.
Saudi Arabia's benchmark index (.TASI) closed flat as gains in consumer shares were capped by losses in energy stocks, with Saudi Arabian Mining Company (1211.SE) increasing 3.3%, while Oil giant Saudi Aramco (2222.SE), which saw its biggest intra-day gain in the last session since March 17 last year, was down 1%.
Aseer Trading Tourism & Manufacturing (4080.SE) surged nearly 10% in its biggest intra-day gain since March 29 this year after the government announced its strategy to develop the Aseer region into a tourism hub as part of the kingdom efforts to diversify its oil-dependent economy, with tourism contributing 10% of gross domestic product by 2030.
Saudi Arabia's crown prince Mohammed bin Salman's 50 billion riyal ($13 billion) strategy is to develop the region on the Red Sea coast that would attract 10 million visitors by 2030. read more
Separately, Saudi Arabia's stock exchange will likely end the year with more than 30 new listings, Mohammed El-Kuwaiz, the chairman of Saudi Arabia's Capital Markets Authority, said on Monday
Pipeline of expected listings is significant, with five new listings approved just in the past two days, three on the main exchange and two in parallel market.
The Abu Dhabi index (.ADI) closed down 0.6%, hit by a 1.1% drop in United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD) and a 0.6% ease in Emirates Telecommunications Group (ETISALAT.AD).
Dubai's main share index (.DFMGI) also declined 0.2%, weighed by a 0.8% fall in Dubai Islamic Bank (DISB.DU) and a 0.7 ease in Air Arabia (AIRA.DU).
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.5%, extending losses for a third-day in a row. Commercial International Bank - COMI (COMI.CA) decreased 1.3% and cigarette maker Eastern Company (EAST.CA) tumbled 3.3%.
The Qatari index (.QSI), however, was up 0.4% as Industries Qatar (IQCD.QA) increased 1.5% in its seventh consecutive rise, while Commercial Bank (COMB.QA) advanced 1.5%.
ACWA Power, One of the Hottest IPOs in Gulf Region - Bloomberg video
ACWA Power, One of the Hottest IPOs in Gulf Region - Bloomberg
Fahd Iqbal Head of Private Bank Middle East Research at Credit Suisse discusses ACWA Power's listing, ESG in the Middle East, oil price volatility and his investment plays for the UAE, Qatar and Egypt. He speaks with Yousef Gamal El-Diny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Reliance Backs Aramco Chair’s Board Role After Investor Dissent - Bloomberg
Reliance Backs Aramco Chair’s Board Role After Investor Dissent - Bloomberg
Reliance Industries Ltd. defended its plan to appoint Saudi Aramco’s non-executive Chairman Yasir Al Rumayyan as an independent director of the Indian oil-to-retail conglomerate, after some shareholders decided to vote against the move.
California State Teachers Retirement Fund and State Board of Administration of Florida decided to vote against the proposal, following recommendations from proxy advisory firm Glass Lewis that cited Reliance’s plan to sell a 20% stake in its oil-to-chemicals business to Saudi Aramco.
“The appointment of H.E. Yasir Al Rumayyan has no connection with the contemplated transaction with Saudi Aramco,” Reliance said in an exchange filing Wednesday. “Further, as approved by the shareholders, the O2C business of RIL is being spun off to a subsidiary and as per the terms of the proposed transaction, Saudi Aramco will participate in the equity of the O2C subsidiary. The O2C Subsidiary Board may have nominees of Saudi Aramco to protect its interest.”
Reliance had appointed Rumayyan as independent director from July 19 for a term of three years. The family of Reliance Chairman Mukesh Ambani, who had announced the decision at the company’s annual shareholder meeting, holds more than 50% of Reliance shares. The e-voting to ratify the appointment will end Oct. 19.
Reliance Industries Ltd. defended its plan to appoint Saudi Aramco’s non-executive Chairman Yasir Al Rumayyan as an independent director of the Indian oil-to-retail conglomerate, after some shareholders decided to vote against the move.
California State Teachers Retirement Fund and State Board of Administration of Florida decided to vote against the proposal, following recommendations from proxy advisory firm Glass Lewis that cited Reliance’s plan to sell a 20% stake in its oil-to-chemicals business to Saudi Aramco.
“The appointment of H.E. Yasir Al Rumayyan has no connection with the contemplated transaction with Saudi Aramco,” Reliance said in an exchange filing Wednesday. “Further, as approved by the shareholders, the O2C business of RIL is being spun off to a subsidiary and as per the terms of the proposed transaction, Saudi Aramco will participate in the equity of the O2C subsidiary. The O2C Subsidiary Board may have nominees of Saudi Aramco to protect its interest.”
Reliance had appointed Rumayyan as independent director from July 19 for a term of three years. The family of Reliance Chairman Mukesh Ambani, who had announced the decision at the company’s annual shareholder meeting, holds more than 50% of Reliance shares. The e-voting to ratify the appointment will end Oct. 19.
Soaring Energy Prices Sends Gulf Stocks on a Relentless Tear - Bloomberg
Soaring Energy Prices Sends Gulf Stocks on a Relentless Tear - Bloomberg
Oil prices near $80 a barrel and global commodity shortages have ignited a record-beating rally in Gulf stocks.
An MSCI index tracking companies in the United Arab Emirates, Saudi Arabia and other Gulf states has notched gains for 11 straight months, the longest winning streak ever.
The benchmark is up 31% in 2021 with some of the biggest gains coming from Saudi petrochemical and natural resource companies reaping profits from higher material prices.
“There are growing concerns about the pass-through inflationary effects of rising commodity prices for most global economies,” said Akber Khan, senior director of asset management at Al Rayan Investment in Doha. “Ironically, this is exactly what investors in the Gulf are increasingly excited about.”
Oil-rich Gulf countries have also navigated the pandemic better than other emerging markets. The United Arab Emirates has inoculated more than 80% of its population, putting it in sixth place on Bloomberg’s Resilience Rankings.
That all points to a strengthened economic backdrop for the region and its shares, according to Ali El Adou, head of asset management at Daman Investments in Dubai.
Stocks are also benefiting from government investments in the non-oil sector and new companies going public, he added.
Oil prices near $80 a barrel and global commodity shortages have ignited a record-beating rally in Gulf stocks.
An MSCI index tracking companies in the United Arab Emirates, Saudi Arabia and other Gulf states has notched gains for 11 straight months, the longest winning streak ever.
The benchmark is up 31% in 2021 with some of the biggest gains coming from Saudi petrochemical and natural resource companies reaping profits from higher material prices.
“There are growing concerns about the pass-through inflationary effects of rising commodity prices for most global economies,” said Akber Khan, senior director of asset management at Al Rayan Investment in Doha. “Ironically, this is exactly what investors in the Gulf are increasingly excited about.”
Oil-rich Gulf countries have also navigated the pandemic better than other emerging markets. The United Arab Emirates has inoculated more than 80% of its population, putting it in sixth place on Bloomberg’s Resilience Rankings.
That all points to a strengthened economic backdrop for the region and its shares, according to Ali El Adou, head of asset management at Daman Investments in Dubai.
Stocks are also benefiting from government investments in the non-oil sector and new companies going public, he added.
Lucid to start deliveries of electric cars with range exceeding Tesla's in October | Reuters
Lucid to start deliveries of electric cars with range exceeding Tesla's in October | Reuters
U.S. startup Lucid Group Inc (LCID.O) said on Tuesday it will start delivering luxury electric sedans with a Tesla-beating driving range in late October, posing a major challenge to the market leader whose sales of premium models have stagnated.
The California-based Lucid began production of its long-delayed Lucid Air cars at its Arizona factory on Tuesday, and said it aims to ramp plant's capacity up to 90,000 vehicles per annum in the next two years.
The top-end Lucid Air Dream Edition will be available in late October, followed by less expensive models: Grand Touring, Touring and Air Pure. The company said it has received more than 13,000 reservations for Lucid Air models, and it has increased the planned total production of the Lucid Air Dream Edition to 520 vehicles.
A version of the Lucid Air Dream Edition, priced at $169,000, received an official U.S. government rating of a 520-mile (837 km) driving range, over 100 miles more than its closest rival, Tesla's Model S, which is priced at $89,990. The higher range helped lead to a 23% jump in Lucid's shares this month.
U.S. startup Lucid Group Inc (LCID.O) said on Tuesday it will start delivering luxury electric sedans with a Tesla-beating driving range in late October, posing a major challenge to the market leader whose sales of premium models have stagnated.
The California-based Lucid began production of its long-delayed Lucid Air cars at its Arizona factory on Tuesday, and said it aims to ramp plant's capacity up to 90,000 vehicles per annum in the next two years.
The top-end Lucid Air Dream Edition will be available in late October, followed by less expensive models: Grand Touring, Touring and Air Pure. The company said it has received more than 13,000 reservations for Lucid Air models, and it has increased the planned total production of the Lucid Air Dream Edition to 520 vehicles.
A version of the Lucid Air Dream Edition, priced at $169,000, received an official U.S. government rating of a 520-mile (837 km) driving range, over 100 miles more than its closest rival, Tesla's Model S, which is priced at $89,990. The higher range helped lead to a 23% jump in Lucid's shares this month.
ACWA Power sets final IPO price at nearly $15
ACWA Power sets final IPO price at nearly $15
Saudi utility developer ACWA Power has set the final price of its initial public offering at SR56 ($14.9) per share, the company said in a bourse filing.
Half-owned by the Public Investment Fund, the company earlier announced its intention to issue 85.3 millions shares or 11.67 percent of the company in an IPO.
Retail offering started on Wednesday, and will run until Oct. 1. Around 8.12 million shares or 10 percent of the offering size were allocated for individual investors.
The company is expecting to raise more than $1 billion from the public offering, valuing the company at about $10 billion.
Saudi utility developer ACWA Power has set the final price of its initial public offering at SR56 ($14.9) per share, the company said in a bourse filing.
Half-owned by the Public Investment Fund, the company earlier announced its intention to issue 85.3 millions shares or 11.67 percent of the company in an IPO.
Retail offering started on Wednesday, and will run until Oct. 1. Around 8.12 million shares or 10 percent of the offering size were allocated for individual investors.
The company is expecting to raise more than $1 billion from the public offering, valuing the company at about $10 billion.
#Dubai Resets After Covid-Ravaged Year With $7 Billion Expo - Bloomberg
Dubai Resets After Covid-Ravaged Year With $7 Billion Expo - Bloomberg
One year after the pandemic forced a delay, Dubai is set to open its $7 billion Expo on a desert site the size of 600 football fields.
Having spent years preparing for the event, the city hopes that an exhibition featuring autonomous vehicles, a pavilion shaped like falcons and one with an original Pharaoh coffin will attract enough tourists to help solidify a nascent economic recovery.
Starting Friday, diplomats, dealmakers, artists and musicians will fly in from around the world. The city has stuck to its target of 25 million visits -- both virtually and in person -- and at a time when travel restrictions have slowed business across financial centers, the six-month long exhibition may even help to create a template for others to follow.
Dubai has shunned lockdowns since emerging from one last year, keeping its economy open and embarking on an ambitious vaccination drive. The United Arab Emirates, of which Dubai is a part, has inoculated more than 80% of its population and infections rates have dropped. The country is now placed sixth on Bloomberg’s Resilience Rankings.
One year after the pandemic forced a delay, Dubai is set to open its $7 billion Expo on a desert site the size of 600 football fields.
Having spent years preparing for the event, the city hopes that an exhibition featuring autonomous vehicles, a pavilion shaped like falcons and one with an original Pharaoh coffin will attract enough tourists to help solidify a nascent economic recovery.
Starting Friday, diplomats, dealmakers, artists and musicians will fly in from around the world. The city has stuck to its target of 25 million visits -- both virtually and in person -- and at a time when travel restrictions have slowed business across financial centers, the six-month long exhibition may even help to create a template for others to follow.
Dubai has shunned lockdowns since emerging from one last year, keeping its economy open and embarking on an ambitious vaccination drive. The United Arab Emirates, of which Dubai is a part, has inoculated more than 80% of its population and infections rates have dropped. The country is now placed sixth on Bloomberg’s Resilience Rankings.
#AbuDhabi's Etihad working on third sustainable financing | Reuters
Abu Dhabi's Etihad working on third sustainable financing | Reuters
Etihad Airways is working on what would be its third financing transaction linked to sustainable investment considerations, the Abu Dhabi government-owned airline's treasurer said on Wednesday.
Environmental, social and governance (ESG) concerns are gaining ground in the oil-rich Gulf region, with borrowers setting up ESG frameworks to transition to greener economies and capitalise on a global surge in awareness of sustainability risks following the COVID-19 pandemic.
"We’re now working on what would be our third transaction in the space", Daniel Tromans, group treasurer at Etihad said on Wednesday, without disclosing details other than to say announcements could be made in the next few weeks.
He was addressing a panel on sustainability at the ACT Middle East Treasury Summit, an online event.
Etihad Airways is working on what would be its third financing transaction linked to sustainable investment considerations, the Abu Dhabi government-owned airline's treasurer said on Wednesday.
Environmental, social and governance (ESG) concerns are gaining ground in the oil-rich Gulf region, with borrowers setting up ESG frameworks to transition to greener economies and capitalise on a global surge in awareness of sustainability risks following the COVID-19 pandemic.
"We’re now working on what would be our third transaction in the space", Daniel Tromans, group treasurer at Etihad said on Wednesday, without disclosing details other than to say announcements could be made in the next few weeks.
He was addressing a panel on sustainability at the ACT Middle East Treasury Summit, an online event.
Reliance backs #Saudi Aramco chairman as independent director | Reuters
Reliance backs Saudi Aramco chairman as independent director | Reuters
Reliance Industries Ltd (RELI.NS) said on Wednesday Saudi Aramco Chairman Yasir Al-Rumayyan met all regulatory criteria for his appointment as an independent director, pending a shareholder approval on the decision.
The California State Teachers' Retirement Fund, a shareholder of the Indian conglomerate, had last week decided to vote against the move based on U.S. proxy advisory research firm Glass Lewis' recommendation, BloombergQuint had reported. read more
The voting to confirm Al-Rumayyan's appointment for a period of three years will end on Oct. 19.
Reliance Industries Ltd (RELI.NS) said on Wednesday Saudi Aramco Chairman Yasir Al-Rumayyan met all regulatory criteria for his appointment as an independent director, pending a shareholder approval on the decision.
The California State Teachers' Retirement Fund, a shareholder of the Indian conglomerate, had last week decided to vote against the move based on U.S. proxy advisory research firm Glass Lewis' recommendation, BloombergQuint had reported. read more
The voting to confirm Al-Rumayyan's appointment for a period of three years will end on Oct. 19.
Oil drops a second day after rally peters out | Reuters
Oil drops a second day after rally peters out | Reuters
Oil prices fell on Wednesday after U.S. crude inventories unexpectedly rose as doubts over demand resurfaced, with COVID-19 cases continuing to increase worldwide and some regions facing gasoline shortages.
Brent crude was down $1.34, or 1.7%, at $77.75 a barrel by 0706 GMT. On Tuesday, it fell nearly $2 after touching its highest in almost three years at $80.75.
U.S. oil prices dropped $1.38, or 1.8%, to $73.91, having fallen 0.2% in the previous session.
Oil prices have been charging higher as economies recover from pandemic lockdowns and fuel demand picks up, while some producing countries have seen supply disruptions.
Oil prices fell on Wednesday after U.S. crude inventories unexpectedly rose as doubts over demand resurfaced, with COVID-19 cases continuing to increase worldwide and some regions facing gasoline shortages.
Brent crude was down $1.34, or 1.7%, at $77.75 a barrel by 0706 GMT. On Tuesday, it fell nearly $2 after touching its highest in almost three years at $80.75.
U.S. oil prices dropped $1.38, or 1.8%, to $73.91, having fallen 0.2% in the previous session.
Oil prices have been charging higher as economies recover from pandemic lockdowns and fuel demand picks up, while some producing countries have seen supply disruptions.
Tuesday, 28 September 2021
Brent dips after topping $80 a barrel, highest since Oct 2018 | Reuters
Brent dips after topping $80 a barrel, highest since Oct 2018 | Reuters
Brent oil dipped on Tuesday after topping $80 per barrel for the first time in nearly three years, as a five-day rally ran out of steam with investors locking in profits.
Oil benchmark prices have been on a tear, with fuel demand growing and traders expecting major oil-producing nations will decide to keep supplies tight when the Organization of the Petroleum Exporting Countries (OPEC) meets next week.
Brent dipped 44 cents, or 0.6%, to $79.09 a barrel, after reaching its highest level since October 2018 at $80.75.
U.S. West Texas Intermediate (WTI) crude fell 16 cents, or 0.2%, to $75.29 a barrel, after hitting a session high of $76.67, highest since July.
"You probably have a fair amount of profit-taking, because we've had a pretty extraordinary run-up in prices," said Andrew Lipow, president of Houston-based consultancy Lipow Oil Associates. "We might have a little bit of a respite here as the market evaluates what the supply and demand dynamics are."
Brent oil dipped on Tuesday after topping $80 per barrel for the first time in nearly three years, as a five-day rally ran out of steam with investors locking in profits.
Oil benchmark prices have been on a tear, with fuel demand growing and traders expecting major oil-producing nations will decide to keep supplies tight when the Organization of the Petroleum Exporting Countries (OPEC) meets next week.
Brent dipped 44 cents, or 0.6%, to $79.09 a barrel, after reaching its highest level since October 2018 at $80.75.
U.S. West Texas Intermediate (WTI) crude fell 16 cents, or 0.2%, to $75.29 a barrel, after hitting a session high of $76.67, highest since July.
"You probably have a fair amount of profit-taking, because we've had a pretty extraordinary run-up in prices," said Andrew Lipow, president of Houston-based consultancy Lipow Oil Associates. "We might have a little bit of a respite here as the market evaluates what the supply and demand dynamics are."
OPEC forecasts oil demand rebound before post-2035 plateau | Reuters
OPEC forecasts oil demand rebound before post-2035 plateau | Reuters
Oil demand will grow sharply in the next few years as economies recover from the pandemic, OPEC forecast on Tuesday, adding that the world needs to keep investing in production to avert a crunch despite an energy transition.
The view from the Organization of the Petroleum Exporting Countries contrasts with that of the International Energy Agency, which in a May report said investors should not fund new oil projects if the world wants to reach net zero emissions. read more
Oil use will rise by 1.7 million barrels per day in 2023 to 101.6 million bpd, OPEC said its 2021 World Oil Outlook, adding to robust growth already predicted for 2021 and 2022 , and pushing demand back above the pre-pandemic 2019 rate.
"Energy and oil demand have picked up significantly in 2021 after the massive drop in 2020," OPEC Secretary General Mohammad Barkindo wrote in the foreword to the report. "Continued expansion is forecast for the longer term."
Oil demand will grow sharply in the next few years as economies recover from the pandemic, OPEC forecast on Tuesday, adding that the world needs to keep investing in production to avert a crunch despite an energy transition.
The view from the Organization of the Petroleum Exporting Countries contrasts with that of the International Energy Agency, which in a May report said investors should not fund new oil projects if the world wants to reach net zero emissions. read more
Oil use will rise by 1.7 million barrels per day in 2023 to 101.6 million bpd, OPEC said its 2021 World Oil Outlook, adding to robust growth already predicted for 2021 and 2022 , and pushing demand back above the pre-pandemic 2019 rate.
"Energy and oil demand have picked up significantly in 2021 after the massive drop in 2020," OPEC Secretary General Mohammad Barkindo wrote in the foreword to the report. "Continued expansion is forecast for the longer term."
#Saudi launches $13 bln plan to turn coastal region into tourism hub | Reuters
Saudi launches $13 bln plan to turn coastal region into tourism hub | Reuters
Saudi Arabia's crown prince Mohammed bin Salman launched a 50 billion riyal ($13 billion) strategy on Tuesday to develop the Aseer region on the Red Sea coast into a tourism hub that would attract 10 million visitors by 2030.
The aim is to develop tourist attractions in the mountainous area and improve services and infrastructure including healthcare and transport, state news agency SPA said.
The Gulf Arab state, which opened its doors in September 2019 to foreign tourists through a new visa regime, wants to diversify its oil-dependent economy, with tourism contributing 10% of gross domestic product by 2030.
While the nascent tourism sector was hit hard by the coronavirus pandemic, local campaigns helped to partially attract millions of dollars Saudis used to spend overseas.
In February, Saudi Arabia's Public Investment Fund launched a venture that would invest $3 billion to build 2,700 hotel rooms, 1,300 residential units, and 30 commercial and entertainment attractions in Aseer by 2030. read more
Saudi Arabia's crown prince Mohammed bin Salman launched a 50 billion riyal ($13 billion) strategy on Tuesday to develop the Aseer region on the Red Sea coast into a tourism hub that would attract 10 million visitors by 2030.
The aim is to develop tourist attractions in the mountainous area and improve services and infrastructure including healthcare and transport, state news agency SPA said.
The Gulf Arab state, which opened its doors in September 2019 to foreign tourists through a new visa regime, wants to diversify its oil-dependent economy, with tourism contributing 10% of gross domestic product by 2030.
While the nascent tourism sector was hit hard by the coronavirus pandemic, local campaigns helped to partially attract millions of dollars Saudis used to spend overseas.
In February, Saudi Arabia's Public Investment Fund launched a venture that would invest $3 billion to build 2,700 hotel rooms, 1,300 residential units, and 30 commercial and entertainment attractions in Aseer by 2030. read more
#Saudi Energy Firm ACWA Sets IPO Price at Top End of Range - Bloomberg
Saudi Energy Firm ACWA Sets IPO Price at Top End of Range - Bloomberg
ACWA Power International, one of Saudi Arabia’s main vehicles for building renewable energy projects, set the offer price for its initial public offering at the top of a range as investors flock to share sales in the kingdom.
The power producer, which will be 44% owned by Saudi Arabia’s sovereign wealth fund after the IPO, said it’ll sell shares at 56 riyals ($14.93) apiece after institutional part of the offering ended. It will raise $1.2 billion for ACWA and value the company at $10.9 billion.
Demand for stock offerings in Saudi Arabia has never been higher. Arabian Internet and Communications Services Co., also known as solutions by stc, attracted over 471 billion riyals in orders for its IPO earlier this month. Plenty more are in the pipeline, including the stock exchange itself and the specialty chemicals business of Saudi Basic Industries Corp.
ACWA is a key part of Saudi Arabia’s plan to transform its energy sector, boosting renewable power generation to reduce emissions and the amount of hydrocarbons that are burnt to make electricity and could be more profitability exported. Over the next five years, the company will double the amount of power it generates, mostly from renewable sources, Chief Executive Officer Paddy Padmanathan told Bloomberg earlier in September.
ACWA Power International, one of Saudi Arabia’s main vehicles for building renewable energy projects, set the offer price for its initial public offering at the top of a range as investors flock to share sales in the kingdom.
The power producer, which will be 44% owned by Saudi Arabia’s sovereign wealth fund after the IPO, said it’ll sell shares at 56 riyals ($14.93) apiece after institutional part of the offering ended. It will raise $1.2 billion for ACWA and value the company at $10.9 billion.
Demand for stock offerings in Saudi Arabia has never been higher. Arabian Internet and Communications Services Co., also known as solutions by stc, attracted over 471 billion riyals in orders for its IPO earlier this month. Plenty more are in the pipeline, including the stock exchange itself and the specialty chemicals business of Saudi Basic Industries Corp.
ACWA is a key part of Saudi Arabia’s plan to transform its energy sector, boosting renewable power generation to reduce emissions and the amount of hydrocarbons that are burnt to make electricity and could be more profitability exported. Over the next five years, the company will double the amount of power it generates, mostly from renewable sources, Chief Executive Officer Paddy Padmanathan told Bloomberg earlier in September.
- ACWA’s IPO is the biggest offering in Riyadh since Saudi Aramco’s listing in 2019
- Subscription period for individual investors: Sept. 29 to Oct. 1
- Joint financial advisers: JPMorgan, Citigroup, Riyad Capital and Natixis
MIDEAST STOCKS Most major Gulf markets firm as Aramco leads #Saudi higher | Reuters
MIDEAST STOCKS Most major Gulf markets firm as Aramco leads Saudi higher | Reuters
Major stock markets in the Gulf ended higher on Tuesday, buoyed by rising oil prices on brighter demand outlook, while Aramco boosted Saudi gains.
Oil markets climbed for a sixth day on Tuesday, also boosted by a tighter supply, but power shortages in China which hit factory output tempered the rally. read more
Brent crude futures gained 67 cents, or 0.8%, to $80.20 a barrel at 1016 GMT, after reaching their highest level since October 2018 at $80.75.
Demand for oil will grow sharply in the next few years as the global economy recovers from the pandemic, OPEC said on Tuesday, adding that the world needs to keep investing in oil production to avert a crunch even as the energy transition is under way. read more
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, as Oil giant Saudi Aramco (2222.SE) rose 3.6% in its biggest intra-day gain since March 17 last year, while petrochemicals company Saudi Basic Industries (2010.SE), was up 0.6%.
S&P Global Ratings on Tuesday affirmed Saudi Arabia's A- (minus) credit rating with a stable outlook, expecting a rebound in growth through 2024 driven by higher oil prices, eased OPEC production quotas and a large vaccine rollout in the kingdom. read more
The rating agency sees Saudi Arabia's deficit dropping from 11.2% last year to 4.3% in 2021, while averaging 5.7% between this year and 2024. Real GDP growth is expected to average 2.4% in the same period after contracting 4.1% in 2020.
Bolstered by industrial shares, Qatari index, (.QSI) rose 0.7%, as Industries Qatar (IQCD.QA) gained 3.6%, logging its sixth consecutive rise, while Qatar Fuel (QFLS.QA) added 0.7%.
Dubai's main share index (.DFMGI) gained 0.5%, buoyed by a 1.8% rise in its largest lender Emirates NBD Bank (ENBD.DU) and a 0.4% advance in Dubai Islamic Bank (DISB.DU).
Financials stocks also lifted the Abu Dhabi index (.ADI), which was up 0.1%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) rising 0.8% and International Holding (IHC.AD) gaining 0.1%.
Dana Gas (DANA.AD), however, closed flat after rising as much as 4.5% during the day. The energy firm won an arbitration award of $607 million in a gas supply dispute with National Iranian Oil Co (NIOC). read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 0.7%, as its top lender Commercial International Bank (COMI.CA) lost 0.8% and E-payments platform Fawry Banking and Payment Technology Services (FWRY.CA) dropped 3.4%.
Egypt's central bank, on Sunday, approved the granting of licences to allow merchants to accept contactless payments from their customers' mobile phones. read more
Major stock markets in the Gulf ended higher on Tuesday, buoyed by rising oil prices on brighter demand outlook, while Aramco boosted Saudi gains.
Oil markets climbed for a sixth day on Tuesday, also boosted by a tighter supply, but power shortages in China which hit factory output tempered the rally. read more
Brent crude futures gained 67 cents, or 0.8%, to $80.20 a barrel at 1016 GMT, after reaching their highest level since October 2018 at $80.75.
Demand for oil will grow sharply in the next few years as the global economy recovers from the pandemic, OPEC said on Tuesday, adding that the world needs to keep investing in oil production to avert a crunch even as the energy transition is under way. read more
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, as Oil giant Saudi Aramco (2222.SE) rose 3.6% in its biggest intra-day gain since March 17 last year, while petrochemicals company Saudi Basic Industries (2010.SE), was up 0.6%.
S&P Global Ratings on Tuesday affirmed Saudi Arabia's A- (minus) credit rating with a stable outlook, expecting a rebound in growth through 2024 driven by higher oil prices, eased OPEC production quotas and a large vaccine rollout in the kingdom. read more
The rating agency sees Saudi Arabia's deficit dropping from 11.2% last year to 4.3% in 2021, while averaging 5.7% between this year and 2024. Real GDP growth is expected to average 2.4% in the same period after contracting 4.1% in 2020.
Bolstered by industrial shares, Qatari index, (.QSI) rose 0.7%, as Industries Qatar (IQCD.QA) gained 3.6%, logging its sixth consecutive rise, while Qatar Fuel (QFLS.QA) added 0.7%.
Dubai's main share index (.DFMGI) gained 0.5%, buoyed by a 1.8% rise in its largest lender Emirates NBD Bank (ENBD.DU) and a 0.4% advance in Dubai Islamic Bank (DISB.DU).
Financials stocks also lifted the Abu Dhabi index (.ADI), which was up 0.1%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) rising 0.8% and International Holding (IHC.AD) gaining 0.1%.
Dana Gas (DANA.AD), however, closed flat after rising as much as 4.5% during the day. The energy firm won an arbitration award of $607 million in a gas supply dispute with National Iranian Oil Co (NIOC). read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 0.7%, as its top lender Commercial International Bank (COMI.CA) lost 0.8% and E-payments platform Fawry Banking and Payment Technology Services (FWRY.CA) dropped 3.4%.
Egypt's central bank, on Sunday, approved the granting of licences to allow merchants to accept contactless payments from their customers' mobile phones. read more
Brent oil near $80 a barrel on tighter supplies | Reuters
Brent oil near $80 a barrel on tighter supplies | Reuters
Oil markets climbed for a sixth day on Tuesday, boosted by a tighter supply and firm demand outlook, but power shortages in China which hit factory output tempered the rally.
Brent crude had gained 12 cents, or 0.1%, to $79.65 a barrel at 1358 GMT, after reaching their highest level since October 2018 at $80.75. Brent gained 1.8% on Monday.
U.S. West Texas Intermediate (WTI) crude rose 22 cents, or 0.3%, to $75.67 a barrel, after hitting a session high of $76.67, its highest since July. It jumped 2% the previous day.
Hurricanes Ida and Nicholas, which swept through the U.S. Gulf of Mexico in August and September, damaged platforms, pipelines and processing hubs, shutting most offshore production for weeks. read more
Oil markets climbed for a sixth day on Tuesday, boosted by a tighter supply and firm demand outlook, but power shortages in China which hit factory output tempered the rally.
Brent crude had gained 12 cents, or 0.1%, to $79.65 a barrel at 1358 GMT, after reaching their highest level since October 2018 at $80.75. Brent gained 1.8% on Monday.
U.S. West Texas Intermediate (WTI) crude rose 22 cents, or 0.3%, to $75.67 a barrel, after hitting a session high of $76.67, its highest since July. It jumped 2% the previous day.
Hurricanes Ida and Nicholas, which swept through the U.S. Gulf of Mexico in August and September, damaged platforms, pipelines and processing hubs, shutting most offshore production for weeks. read more
Masdar assigned debut ratings by Moody’s and Fitch
Masdar assigned debut ratings by Moody’s and Fitch
Masdar, a subsidiary of Mubadala Investment Company, received investment grade A2 and A+ ratings from Moody’s Investors Service and Fitch Ratings, respectively, marking the first time the Abu Dhabi renewable energy company is rated by global agencies.
An A2 rating is sixth-highest credit rating of Moody's and indicates low credit risk, as does the A+ rating by Fitch. Masdar is wholly owned by Mamoura Diversified Global Holding.
The ratings are a reflection of Masdar’s “robust portfolio of renewable energy and sustainable real estate assets and its crucial role in the diversification of the Abu Dhabi economy”, Musabbeh Al Kaabi, chief executive of the UAE Investments at Mubadala, said.
First-time credit ratings will give Masdar greater flexibility in financing and investing in new projects as the company looks to accelerate its global expansion.
Masdar, a subsidiary of Mubadala Investment Company, received investment grade A2 and A+ ratings from Moody’s Investors Service and Fitch Ratings, respectively, marking the first time the Abu Dhabi renewable energy company is rated by global agencies.
An A2 rating is sixth-highest credit rating of Moody's and indicates low credit risk, as does the A+ rating by Fitch. Masdar is wholly owned by Mamoura Diversified Global Holding.
The ratings are a reflection of Masdar’s “robust portfolio of renewable energy and sustainable real estate assets and its crucial role in the diversification of the Abu Dhabi economy”, Musabbeh Al Kaabi, chief executive of the UAE Investments at Mubadala, said.
First-time credit ratings will give Masdar greater flexibility in financing and investing in new projects as the company looks to accelerate its global expansion.
#Dubai to find out if pandemic-delayed Expo 2020 will pay off
Dubai to find out if pandemic-delayed Expo 2020 will pay off
A computer-graphic-soaked advertisement featuring Australian actor and Hollywood heartthrob Chris Hemsworth beckons the world to Dubai’s upcoming Expo 2020, promising a “world of pure imagination” as children without facemasks race across a futuristic carnival scene.
Reality, however, crashes into the frame in all capital-letters caption at the bottom of the screen, saying: “THIS COMMERCIAL WAS FILMED IN 2019.”
Delayed a year over the coronavirus pandemic, Dubai’s Expo 2020 opens on Friday, pushing this city-state all-in on its bet of billions of dollars that the world’s fair will boost its economy. The sheikhdom built what feels like an entire city out of what once were rolling sand dunes on its southern edges to support the fair, an outpost that largely will be disassembled after the six-month event ends in March.
But questions about the Expo’s drawing power in the modern era began even before the pandemic. It will be one of the world’s first global events, following an Olympics this summer that divided host nation Japan and took place without spectators. Though Dubai has thrown open its doors to tourists from around the world and has not required vaccinations, it remains unclear how many guests will be coming to this extravaganza.
A computer-graphic-soaked advertisement featuring Australian actor and Hollywood heartthrob Chris Hemsworth beckons the world to Dubai’s upcoming Expo 2020, promising a “world of pure imagination” as children without facemasks race across a futuristic carnival scene.
Reality, however, crashes into the frame in all capital-letters caption at the bottom of the screen, saying: “THIS COMMERCIAL WAS FILMED IN 2019.”
Delayed a year over the coronavirus pandemic, Dubai’s Expo 2020 opens on Friday, pushing this city-state all-in on its bet of billions of dollars that the world’s fair will boost its economy. The sheikhdom built what feels like an entire city out of what once were rolling sand dunes on its southern edges to support the fair, an outpost that largely will be disassembled after the six-month event ends in March.
But questions about the Expo’s drawing power in the modern era began even before the pandemic. It will be one of the world’s first global events, following an Olympics this summer that divided host nation Japan and took place without spectators. Though Dubai has thrown open its doors to tourists from around the world and has not required vaccinations, it remains unclear how many guests will be coming to this extravaganza.
Barclays raises 2022 oil price view on likely supply deficit | Reuters
Barclays raises 2022 oil price view on likely supply deficit | Reuters
Barclays on Tuesday raised its 2022 oil price forecasts reasoning that a continued recovery in demand could widen a 'persistent' supply shortfall.
The bank raised its 2022 Brent crude price forecast by $9 to $77 per barrel driven in part by "reduced confidence" for a revival of the U.S.-Iran nuclear deal.
Expectations of tight supply, coupled with surging coal and gas prices, pushed oil prices higher for a sixth straight session on Tuesday, with Brent crude futures topping $80 a barrel while U.S. crude rose to around $76.
"OPEC+ tapering would not plug the oil supply gap through at least Q1 2022 as demand recovery is likely to continue to outpace this, due partly to limited capacity of some producers in the group to ramp up output," Barclays said in a note.
Barclays on Tuesday raised its 2022 oil price forecasts reasoning that a continued recovery in demand could widen a 'persistent' supply shortfall.
The bank raised its 2022 Brent crude price forecast by $9 to $77 per barrel driven in part by "reduced confidence" for a revival of the U.S.-Iran nuclear deal.
Expectations of tight supply, coupled with surging coal and gas prices, pushed oil prices higher for a sixth straight session on Tuesday, with Brent crude futures topping $80 a barrel while U.S. crude rose to around $76.
"OPEC+ tapering would not plug the oil supply gap through at least Q1 2022 as demand recovery is likely to continue to outpace this, due partly to limited capacity of some producers in the group to ramp up output," Barclays said in a note.
S&P affirms #Saudi rating on expected rebound through 2024 | Reuters
S&P affirms Saudi rating on expected rebound through 2024 | Reuters
S&P Global Ratings on Tuesday affirmed Saudi Arabia's A- (minus) credit rating with a stable outlook, expecting a rebound in growth through 2024 driven by higher oil prices, eased OPEC production quotas and a large vaccine rollout in the kingdom.
After the COVID-19 pandemic weighed on the economy, Saudi Arabia has returned to ambitious investment projects linked to its strategy of weaning the economy off oil, S&P said. Significant investments are being made by the Public Investment Fund, the kingdom's sovereign wealth fund, and other entities in both the oil and non-oil sectors.
The rating agency sees Saudi Arabia's deficit dropping from 11.2% last year to 4.3% in 2021, while averaging 5.7% between this year and 2024. Real GDP growth is expected to average 2.4% in the same period after contracting 4.1% in 2020.
"In 2021, higher oil prices are being partially counterbalanced by constrained annual Saudi oil production volumes, which continue to be limited by an OPEC deal," S&P said in a mid-year review.
S&P Global Ratings on Tuesday affirmed Saudi Arabia's A- (minus) credit rating with a stable outlook, expecting a rebound in growth through 2024 driven by higher oil prices, eased OPEC production quotas and a large vaccine rollout in the kingdom.
After the COVID-19 pandemic weighed on the economy, Saudi Arabia has returned to ambitious investment projects linked to its strategy of weaning the economy off oil, S&P said. Significant investments are being made by the Public Investment Fund, the kingdom's sovereign wealth fund, and other entities in both the oil and non-oil sectors.
The rating agency sees Saudi Arabia's deficit dropping from 11.2% last year to 4.3% in 2021, while averaging 5.7% between this year and 2024. Real GDP growth is expected to average 2.4% in the same period after contracting 4.1% in 2020.
"In 2021, higher oil prices are being partially counterbalanced by constrained annual Saudi oil production volumes, which continue to be limited by an OPEC deal," S&P said in a mid-year review.
#Qatar property market slowdown continues; prices to stabilise next year | ZAWYA MENA Edition
Qatar property market slowdown continues; prices to stabilise next year | ZAWYA MENA Edition
Qatar’s property market has not yet recovered from the impact of the coronavirus pandemic, with housing rents continuing to slide and sales prices fluctuating during the first half of 2021, according to the latest analysis by Property Finder Qatar.
The Gulf state is expected to see prices stabilising only in 2021, although investor and tenant demand for villas and apartments, is already picking up. Demand has been driven largely by low prices in the market.
“Qatar is expected to reach a stable pricing index in the coming year, despite the current price and supply fluctuations,” Property Finder Qatar said.
“The slowdown [caused by] the pandemic continues to significantly affect the market. However, sales transactions and rental deals are rising as investors and property buyers look to take advantage of lower market prices,” added said Afaf Hashem, country manager of Property Finder Qatar.
Qatar’s property market has not yet recovered from the impact of the coronavirus pandemic, with housing rents continuing to slide and sales prices fluctuating during the first half of 2021, according to the latest analysis by Property Finder Qatar.
The Gulf state is expected to see prices stabilising only in 2021, although investor and tenant demand for villas and apartments, is already picking up. Demand has been driven largely by low prices in the market.
“Qatar is expected to reach a stable pricing index in the coming year, despite the current price and supply fluctuations,” Property Finder Qatar said.
“The slowdown [caused by] the pandemic continues to significantly affect the market. However, sales transactions and rental deals are rising as investors and property buyers look to take advantage of lower market prices,” added said Afaf Hashem, country manager of Property Finder Qatar.
#Saudi ESG Enigma Doesn’t Add Up for Some Investors - Bloomberg
Saudi ESG Enigma Doesn’t Add Up for Some Investors - Bloomberg
Some investors find it difficult to reconcile Saudi Arabia’s record on climate with its plans for sustainable financing, even if it is moving faster than others in its energy transition, a senior portfolio manager at BlueBay Asset Management said.
The world’s largest crude exporter is planning green bonds, tapping into a booming global market for finance that complies with environmental, social and governance, or ESG, goals. This comes as governments worldwide step up efforts to prevent temperatures from rising more than 1.5 degrees Celsius above pre-industrial levels.
“I don’t think I can name any other country in emerging markets that has moved at a similar pace, and this is really encouraging,” Polina Kurdyavko, Head of Emerging Market Debt at Bluebay, told an investment conference in Riyadh where officials discussed the green bond plans.
At the same time, Bluebay’s clients question Saudi Arabia’s commitments to combat climate change, she said.
“Saudi Arabia ranks among the countries that are ‘critically insufficient’ in terms of the program set forward in order to deliver the 1.5 degree target,” she said, appearing to cite its ranking by non-profit Climate Action Tracker that gives the kingdom the lowest level possible for its climate policies.
“For us as investors it’s very difficult to reconcile those two points,” Kurdyavko said, calling on the government to help institutions explain the gap to their clients. “That would make our job a lot easier and would make the issuers of the country pay much lower rates.”
Some investors find it difficult to reconcile Saudi Arabia’s record on climate with its plans for sustainable financing, even if it is moving faster than others in its energy transition, a senior portfolio manager at BlueBay Asset Management said.
The world’s largest crude exporter is planning green bonds, tapping into a booming global market for finance that complies with environmental, social and governance, or ESG, goals. This comes as governments worldwide step up efforts to prevent temperatures from rising more than 1.5 degrees Celsius above pre-industrial levels.
“I don’t think I can name any other country in emerging markets that has moved at a similar pace, and this is really encouraging,” Polina Kurdyavko, Head of Emerging Market Debt at Bluebay, told an investment conference in Riyadh where officials discussed the green bond plans.
At the same time, Bluebay’s clients question Saudi Arabia’s commitments to combat climate change, she said.
“Saudi Arabia ranks among the countries that are ‘critically insufficient’ in terms of the program set forward in order to deliver the 1.5 degree target,” she said, appearing to cite its ranking by non-profit Climate Action Tracker that gives the kingdom the lowest level possible for its climate policies.
“For us as investors it’s very difficult to reconcile those two points,” Kurdyavko said, calling on the government to help institutions explain the gap to their clients. “That would make our job a lot easier and would make the issuers of the country pay much lower rates.”
Activist Investing Makes New Inroads as Gulf Shakes Off Taboos - Bloomberg
Activist Investing Makes New Inroads as Gulf Shakes Off Taboos - Bloomberg
Activist investing can be a lonely slog in the Middle East.
The hardball tactics deployed by Carl Icahn or Paul Singer’s Elliott Investment Management are all but unheard-of in a region where board decisions rarely meet dissent while shareholders work out their differences behind closed doors.
But the Gulf’s listed firms, at a cumulative market value of nearly $3.5 trillion, may be the next frontier for activists pushing management to make strategic or operational changes, especially as competition for foreign capital intensifies within the region and more companies go public. Shareholder campaigns could also alter the calculus for corporations after a series of recent delistings saw little in the way of pushback from investors.
One fund in the Gulf that hasn’t shied away from corporate showdowns is Sancta Capital. Drawing inspiration from Baupost Group, the Dubai-based alternative asset manager says it’s the only firm in the Middle East and North Africa that focuses on special situations investing.
Activist investing can be a lonely slog in the Middle East.
The hardball tactics deployed by Carl Icahn or Paul Singer’s Elliott Investment Management are all but unheard-of in a region where board decisions rarely meet dissent while shareholders work out their differences behind closed doors.
But the Gulf’s listed firms, at a cumulative market value of nearly $3.5 trillion, may be the next frontier for activists pushing management to make strategic or operational changes, especially as competition for foreign capital intensifies within the region and more companies go public. Shareholder campaigns could also alter the calculus for corporations after a series of recent delistings saw little in the way of pushback from investors.
One fund in the Gulf that hasn’t shied away from corporate showdowns is Sancta Capital. Drawing inspiration from Baupost Group, the Dubai-based alternative asset manager says it’s the only firm in the Middle East and North Africa that focuses on special situations investing.
#Saudi Petrochemical Rivals Merge to Create $11 Billion Company - Bloomberg
Saudi Petrochemical Rivals Merge to Create $11 Billion Company - Bloomberg
Saudi Industrial Investment Group offered to take over all of National Petrochemical Co. and create one of the largest manufacturers of chemicals in the Middle East, just as prices soar.
The all-share deal will merge two companies with a combined market capitalization of $11.2 billion and comes amid increasing consolidation among Saudi Arabia’s industrial firms as they seek to build scale and improve profitability.
Saudi Industrial Investment Group, known as SIIG, wants to swap 1.27 of its shares of each of National Petrochem’s, according to a statement. The transaction will value National Petrochem at 24 billion riyals ($6.4 billion).
SIIG already owns half of National Petrochem. The companies started negotiations in September 2020 and hired advisers in April.
Prices for chemicals and other petroleum products -- used to make everything from plastics to paint -- have surged this year as major economies recover from the coronavirus pandemic. SIIG and National Petrochem’s stocks are up almost 50% this year.
Last year, Saudi International Petrochemical Co. bought Sahara Petrochemical Co. That was followed by Aramco taking a majority stake in Saudi Basic Industries Corp., the kingdom’s biggest chemicals maker, in a $69 billion deal.
Saudi Industrial Investment Group offered to take over all of National Petrochemical Co. and create one of the largest manufacturers of chemicals in the Middle East, just as prices soar.
The all-share deal will merge two companies with a combined market capitalization of $11.2 billion and comes amid increasing consolidation among Saudi Arabia’s industrial firms as they seek to build scale and improve profitability.
Saudi Industrial Investment Group, known as SIIG, wants to swap 1.27 of its shares of each of National Petrochem’s, according to a statement. The transaction will value National Petrochem at 24 billion riyals ($6.4 billion).
SIIG already owns half of National Petrochem. The companies started negotiations in September 2020 and hired advisers in April.
Prices for chemicals and other petroleum products -- used to make everything from plastics to paint -- have surged this year as major economies recover from the coronavirus pandemic. SIIG and National Petrochem’s stocks are up almost 50% this year.
Last year, Saudi International Petrochemical Co. bought Sahara Petrochemical Co. That was followed by Aramco taking a majority stake in Saudi Basic Industries Corp., the kingdom’s biggest chemicals maker, in a $69 billion deal.
MIDEAST STOCKS Most Gulf stocks up in early trade, #Saudi extends gains on rising oil prices | Reuters
MIDEAST STOCKS Most Gulf stocks up in early trade, Saudi extends gains on rising oil prices | Reuters
Most major Gulf stock markets rose in early trade on Tuesday, with petrochemical shares aiding the Saudi index as oil extends its gains to a sixth day, while a couple of corporate announcements pushed the Abu Dhabi index higher.
Oil markets climbed for a sixth day on Tuesday, reversing earlier losses, on fears over tight supply while surging prices of liquefied natural gas (LNG) and coal also lent support. read more
Brent crude (.LCOc1) futures were up 1.3% to $80.58 a barrel at 0645 GMT.
Saudi Arabia's benchmark index (.TASI) was trading 0.2% higher on track to a third consecutive daily rise.
Saudi Basic Industries <2010.SE > advanced 1.3% its fertilizer unit SABIC Agri-Nutrients (2020.SE) added 1.9%.
Saudi Industrial Investment Group (SIIG) (2250.SE) and National Petrochemical Company (Petrochem) (2002.SE) surged as much as 4% and 3.2%, respectively after they announced they were signing a non-binding agreement on a proposed merger. read more
Petrochem shareholders would receive 1.27 shares in SIIG in exchange for each share they owned in Petrochem.
The Abu Dhabi index (.ADI) was up 0.1% with International Holding (IHC.AD) gaining 0.1% and Dana Gas jumping 4.5%.
International Holding said its unit Emirates Stallions Group will Develop a hospitality project worth 240 million dirhams ($65 million) in Sudan, while Dana Gas said it won an arbitration award of $607 million in a gas supply dispute with National Iranian Oil Co (NIOC). read more
The Qatari index (.QSI) was up 0.2% supported by gains in industrial shares. Industries Qatar (IQCD.QA) increased 1.4% in its sixth consecutive rise, while Mesaieed Petrochemical (MPHC.QA) added 1%.
Gains were capped by losses in the financial sector with Commercial Bank (COMB.QA) declining 2%.
In Dubai, the index (.DFMGI) was flat. The blue-chip developer Emaar Properties (EMAR.DU) shed 0.3%, while Dubai Islamic Bank (DISB.DU) edged up 0.2%.
Most major Gulf stock markets rose in early trade on Tuesday, with petrochemical shares aiding the Saudi index as oil extends its gains to a sixth day, while a couple of corporate announcements pushed the Abu Dhabi index higher.
Oil markets climbed for a sixth day on Tuesday, reversing earlier losses, on fears over tight supply while surging prices of liquefied natural gas (LNG) and coal also lent support. read more
Brent crude (.LCOc1) futures were up 1.3% to $80.58 a barrel at 0645 GMT.
Saudi Arabia's benchmark index (.TASI) was trading 0.2% higher on track to a third consecutive daily rise.
Saudi Basic Industries <2010.SE > advanced 1.3% its fertilizer unit SABIC Agri-Nutrients (2020.SE) added 1.9%.
Saudi Industrial Investment Group (SIIG) (2250.SE) and National Petrochemical Company (Petrochem) (2002.SE) surged as much as 4% and 3.2%, respectively after they announced they were signing a non-binding agreement on a proposed merger. read more
Petrochem shareholders would receive 1.27 shares in SIIG in exchange for each share they owned in Petrochem.
The Abu Dhabi index (.ADI) was up 0.1% with International Holding (IHC.AD) gaining 0.1% and Dana Gas jumping 4.5%.
International Holding said its unit Emirates Stallions Group will Develop a hospitality project worth 240 million dirhams ($65 million) in Sudan, while Dana Gas said it won an arbitration award of $607 million in a gas supply dispute with National Iranian Oil Co (NIOC). read more
The Qatari index (.QSI) was up 0.2% supported by gains in industrial shares. Industries Qatar (IQCD.QA) increased 1.4% in its sixth consecutive rise, while Mesaieed Petrochemical (MPHC.QA) added 1%.
Gains were capped by losses in the financial sector with Commercial Bank (COMB.QA) declining 2%.
In Dubai, the index (.DFMGI) was flat. The blue-chip developer Emaar Properties (EMAR.DU) shed 0.3%, while Dubai Islamic Bank (DISB.DU) edged up 0.2%.
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