Saudi Crown Prince Plans Car-Free City for Future Beyond Oil - Bloomberg
Saudi Arabia’s crown prince unveiled his latest vision for a future beyond oil in the kingdom: a car- and road-free city with zero carbon emissions.
The 170 kilometer-long (106 miles) development called “The Line” will be part of a previously-announced $500 billion mega-project called “Neom,” Crown Prince Mohammed bin Salman said in a televised speech on Sunday. Construction is planned to start in the first quarter of this year. A news release described The Line as a walkable “belt of hyper-connected future communities, without cars and roads and built around nature.” It said the city would have 1 million residents and create 380,000 jobs by 2030. It didn’t provide details on the plan’s expected cost or how it would be funded.
Neom is the crown jewel of Prince Mohammed’s plan to diversify the economy of the world’s largest crude exporter. Announced in 2017, the project spans more than 10,000 square miles in a remote area of the country’s northwest. It’s described on its website as “a bold and audacious dream” that will become a hub for new technologies and businesses.
But the project has been plagued by skepticism and political controversies since its launch, with analysts questioning if it’s realistic and whether it can attract the investment needed.
Sunday, 10 January 2021
Resolution of #Qatar dispute will broadly improve GCC business, investment: S&P | ZAWYA MENA Edition
Resolution of Qatar dispute will broadly improve GCC business, investment: S&P | ZAWYA MENA Edition
The restoration of the Gulf Cooperation Council’s relationship with Qatar will improve cooperation but the damage done by the rift is likely to remain, says S & P.
Following the resolution of the dispute between Qatar and the other GCC states, S & P said political and economic cooperation will both improve, but the damage done to the three-year boycott, both real and perceived, will remain.
However, the agency foresees no ratings impact on the countries at present, saying they would remain as follows: Qatar (AA-/Stable/A-1+), Saudi Arabia (A-/Stable/A-2), Bahrain (B+/Stable/B), and Egypt (B/Stable/B). The UAE is not rated by the agency.
“In our view, the imposition of the boycott has undermined the perception of unity put forward by GCC leaders prior to the diplomatic rift. We believe that underlying differences in foreign policies will likely still weigh on relations among GCC countries, despite the formal reconciliation,” said S & P in RatingsDirect report .
The resolution will however support improvement in the region’s broader business and investment environment, S & P said.
The restoration of the Gulf Cooperation Council’s relationship with Qatar will improve cooperation but the damage done by the rift is likely to remain, says S & P.
Following the resolution of the dispute between Qatar and the other GCC states, S & P said political and economic cooperation will both improve, but the damage done to the three-year boycott, both real and perceived, will remain.
However, the agency foresees no ratings impact on the countries at present, saying they would remain as follows: Qatar (AA-/Stable/A-1+), Saudi Arabia (A-/Stable/A-2), Bahrain (B+/Stable/B), and Egypt (B/Stable/B). The UAE is not rated by the agency.
“In our view, the imposition of the boycott has undermined the perception of unity put forward by GCC leaders prior to the diplomatic rift. We believe that underlying differences in foreign policies will likely still weigh on relations among GCC countries, despite the formal reconciliation,” said S & P in RatingsDirect report .
The resolution will however support improvement in the region’s broader business and investment environment, S & P said.
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close
#UAE aircraft lessor DAE secured 125 lease deals, extensions in 2020 | ZAWYA MENA Edition
UAE aircraft lessor DAE secured 125 lease deals, extensions in 2020 | ZAWYA MENA Edition
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| Dubai Aerospace delivers first of 18 Boeing 737 MAX 8 aircraft to American Airlines. Image courtesy Dubai Media Office Twitter handle. Dubai Aerospace Enterprise (DAE), one of the world’s biggest aircraft lessors, secured a total of 125 lease agreements and extensions in 2020. The leasing company, which is owned by sovereign wealth fund Investment Corporation of Dubai, also reported at least 55 new underwriting aircraft purchase commitments for the whole year. The business transactions are part of the full-year 2020 report for the company’s aircraft leasing division, DAE Capital. The company had said earlier it was looking to land more purchase and leaseback deals with airlines despite a massive decline in air traffic in 2020. Last December, it delivered the first of 18 Boeing 737 MAX 8 jets to American Airlines. DAE also reported that total bond repurchases and share repurchases last year amounted to $192 million and $350 million, respectively. |
Shale Boom: U.S. Imports of #Saudi Crude Won’t Stay Zero for Long - Bloomberg
Shale Boom: U.S. Imports of Saudi Crude Won’t Stay Zero for Long - Bloomberg
In the final week of 2020, the U.S. imported no crude from Saudi Arabia for the first time in 35 years. But it's not quite the historic moment it might seem at first sight.
As recently as 2017, the desert kingdom was regularly sending more than 1 million barrels a day of its crude across the Atlantic and Pacific Oceans to the U.S. Within the space of four years that market has all but disappeared, as the shale industry boomed for a second time and then demand collapsed with the pandemic.
The drop to zero doesn't spell the end of Saudi shipments to the U.S. Already that figure won’t be repeated in Wednesday’s weekly report from the Energy Information Administration that covers the first full week of January. U.S. customs data show 1.9 million barrels of Saudi crude entered the country during that period.
The pattern of dwindling flows to the world’s biggest oil market is one that’s been felt by producers around the globe.
The first to feel the chill (aside from Iran, which hasn’t exported crude to the U.S. since President Jimmy Carter imposed sanctions in 1979) were those in West Africa, particularly Nigeria. Their oil shipments across the Atlantic were hit by the 2008 financial crisis and then crumbled in the teeth of the first shale gale beginning in 2011. They revived briefly as that boom ran out of steam in 2015, but the recovery was short-lived.
In the final week of 2020, the U.S. imported no crude from Saudi Arabia for the first time in 35 years. But it's not quite the historic moment it might seem at first sight.
As recently as 2017, the desert kingdom was regularly sending more than 1 million barrels a day of its crude across the Atlantic and Pacific Oceans to the U.S. Within the space of four years that market has all but disappeared, as the shale industry boomed for a second time and then demand collapsed with the pandemic.
The drop to zero doesn't spell the end of Saudi shipments to the U.S. Already that figure won’t be repeated in Wednesday’s weekly report from the Energy Information Administration that covers the first full week of January. U.S. customs data show 1.9 million barrels of Saudi crude entered the country during that period.
The pattern of dwindling flows to the world’s biggest oil market is one that’s been felt by producers around the globe.
The first to feel the chill (aside from Iran, which hasn’t exported crude to the U.S. since President Jimmy Carter imposed sanctions in 1979) were those in West Africa, particularly Nigeria. Their oil shipments across the Atlantic were hit by the 2008 financial crisis and then crumbled in the teeth of the first shale gale beginning in 2011. They revived briefly as that boom ran out of steam in 2015, but the recovery was short-lived.
#UAE's SHUAA Capital buys out Stanford Marine's debt as part of restructuring | Reuters
UAE's SHUAA Capital buys out Stanford Marine's debt as part of restructuring | Reuters
A consortium led by United Arab Emirates financial firm SHUAA Capital has bought 1.13 billion dirhams ($308 million) of debt held by Stanford Marine Group (SMG) as part of its restructuring, the companies said on Sunday.
Dubai-based marine services firm SMG has struggled since the collapse in oil prices in 2015, which led to a dramatic fall in chartering rates and a drying up of projects.
“Since 2019, SHUAA Capital has been working with SMG’s lending syndicate and their advisors to arrive at a buyout deal that met all parties’ objectives. The restructuring strengthens SMG’s liquidity position,” SHUAA and SMG said in a joint statement.
The plan has helped save more than 1,800 jobs and annual exports of close to $20 million worth of vessels, the companies said, adding that the debt buyout has supported banks in exiting a distressed debt situation with a cash recovery.
A consortium led by United Arab Emirates financial firm SHUAA Capital has bought 1.13 billion dirhams ($308 million) of debt held by Stanford Marine Group (SMG) as part of its restructuring, the companies said on Sunday.
Dubai-based marine services firm SMG has struggled since the collapse in oil prices in 2015, which led to a dramatic fall in chartering rates and a drying up of projects.
“Since 2019, SHUAA Capital has been working with SMG’s lending syndicate and their advisors to arrive at a buyout deal that met all parties’ objectives. The restructuring strengthens SMG’s liquidity position,” SHUAA and SMG said in a joint statement.
The plan has helped save more than 1,800 jobs and annual exports of close to $20 million worth of vessels, the companies said, adding that the debt buyout has supported banks in exiting a distressed debt situation with a cash recovery.
OPEC crude output cuts should help U.S. shale profits in 2021 | Reuters
OPEC crude output cuts should help U.S. shale profits in 2021 | Reuters
A decision by OPEC and allied countries to cut crude production through March delivered a late Christmas present for U.S. shale firms that have slashed costs, but any rise in prices spurred by the unexpected move may be just a modest stocking stuffer.
U.S. crude oil production has fallen 2 million barrels per day in the last year as low prices and demand forced shale producers to cut their losses. Investors had already been pressuring the industry to curb spending and boost returns before the pandemic hit. Shale output was quickly cut, but might return quickly if prices keep rising.
On Tuesday, Saudi Arabia, the world’s biggest oil exporter, said it would voluntarily reduce its production by 1 million barrels per day (bpd) in February and March, after Russia pushed to increase output, worried about U.S. shale capitalizing on the group’s cuts.
Russia and Kazakhstan will increase their output, reluctant to cede market share to the United States. Overall, OPEC+ had been due to restore 500,000 bpd in each of the two months. Saudi officials were concerned new increases would outpace demand during new coronavirus lockdowns.
Prices for West Texas Intermediate on Friday topped $52 per barrel, and the 12-month futures’ price, which producers use to plan spending on new wells, hit $51.37 a barrel, up from $44.63 at the start of December.
A decision by OPEC and allied countries to cut crude production through March delivered a late Christmas present for U.S. shale firms that have slashed costs, but any rise in prices spurred by the unexpected move may be just a modest stocking stuffer.
U.S. crude oil production has fallen 2 million barrels per day in the last year as low prices and demand forced shale producers to cut their losses. Investors had already been pressuring the industry to curb spending and boost returns before the pandemic hit. Shale output was quickly cut, but might return quickly if prices keep rising.
On Tuesday, Saudi Arabia, the world’s biggest oil exporter, said it would voluntarily reduce its production by 1 million barrels per day (bpd) in February and March, after Russia pushed to increase output, worried about U.S. shale capitalizing on the group’s cuts.
Russia and Kazakhstan will increase their output, reluctant to cede market share to the United States. Overall, OPEC+ had been due to restore 500,000 bpd in each of the two months. Saudi officials were concerned new increases would outpace demand during new coronavirus lockdowns.
Prices for West Texas Intermediate on Friday topped $52 per barrel, and the 12-month futures’ price, which producers use to plan spending on new wells, hit $51.37 a barrel, up from $44.63 at the start of December.
#Saudi cut to boost oil market de-stocking, even as demand falters | Reuters
Saudi cut to boost oil market de-stocking, even as demand falters | Reuters
Saudi Arabia’s voluntary oil production cut is expected to bring the oil market into deficit for most of 2021 even as new lockdowns to contain the spread of the coronavirus batter oil demand, analysts say.
Saudi Arabia, the world’s biggest oil exporter, surprised the market on Jan. 5 with a voluntary output cuts of 1 million barrels per day (bpd) in February and March.
The move came as the Organization of the Petroleum Exporting Countries and allies - a group known as OPEC+ - agreed most producers would hold output steady in February and March, while allowing Russia and Kazakhstan to raise output by a modest amount.
With coronavirus infections spreading rapidly, producers are wary of a new blows to oil demand which could lead to rising inventories.
“We remain in uncharted territory as the COVID-19 situation continues to evolve, but [OPEC+] has so far succeeded in both putting a floor below prices and reducing volatility, which should encourage further cooperation,” Barclays said.
Saudi Arabia’s voluntary oil production cut is expected to bring the oil market into deficit for most of 2021 even as new lockdowns to contain the spread of the coronavirus batter oil demand, analysts say.
Saudi Arabia, the world’s biggest oil exporter, surprised the market on Jan. 5 with a voluntary output cuts of 1 million barrels per day (bpd) in February and March.
The move came as the Organization of the Petroleum Exporting Countries and allies - a group known as OPEC+ - agreed most producers would hold output steady in February and March, while allowing Russia and Kazakhstan to raise output by a modest amount.
With coronavirus infections spreading rapidly, producers are wary of a new blows to oil demand which could lead to rising inventories.
“We remain in uncharted territory as the COVID-19 situation continues to evolve, but [OPEC+] has so far succeeded in both putting a floor below prices and reducing volatility, which should encourage further cooperation,” Barclays said.
Gulf stocks gain on global rally, higher oil prices | Reuters
Gulf stocks gain on global rally, higher oil prices | Reuters
Major Gulf stock markets rose in early trade on Sunday, tracking a rally in global equity markets and a jump in oil prices on Friday. The sentiment in the Gulf was additionally supported by further developments on Saudi Arabia and its allies’ agreement to restore ties with Qatar.
Global equities rallied on Friday as investors looked beyond U.S. political unrest and focused on further stimulus to mend the economic damage of the coronavirus pandemic.
Brent crude settled at $55.99 a barrel, climbing 3% on Friday, supported by Saudi Arabia’s pledge to cut output and strong gains in major equity markets.
Regionally, United Arab Emirates reopened all its land, sea and air entry points with Qatar on Saturday, while Qatar Airways and Saudi Airlines announced they would resume flights between Doha and Riyadh as part of a political rapprochement in a three-year-old dispute.
Saudi Arabia’s index was trading 0.7% higher with Al Rajhi Bank and Saudi Basic Industries rising 1% and 0.8%, respectively.
United Electronics, which kicked off fourth quarter earnings in Saudi Arabia, jumped 8.3% to be the biggest percentage gainer on the index. The electronics retailer said its profit for the quarter surged 41.2% to 101.8 million riyals ($27.14 million).
Dubai’s index advanced 1.5%, with Emirates NBD Bank increasing 2.3% and the largest listed developer Emaar Properties adding 1.8%.
Shuaa Capital gained 2.1% after saying a consortium led by it had bought out 1.13 billion dirhams ($308 million) debt of Dubai-based Stanford Marine Group
The Abu Dhabi index was up 0.4% as First Abu Dhabi Bank and Aldar Properties led the gains, rising 0.6% and 1.2%, respectively.
Qatar’s index was up 0.3%, led by gains in banking shares. Qatar National Bank gained 0.8%.
Masraf Alrayan added 0.9%. On Thursday, the Islamic lender said it had entered into a merger agreement with Al Khalij Commercial Bank (Al Khaliji) and would issue 0.50 of a share for every Al Khaliji share.
Al Khaliji, which is not a part of the index, surged 6.1% in its sixth consecutive day of gains.
Major Gulf stock markets rose in early trade on Sunday, tracking a rally in global equity markets and a jump in oil prices on Friday. The sentiment in the Gulf was additionally supported by further developments on Saudi Arabia and its allies’ agreement to restore ties with Qatar.
Global equities rallied on Friday as investors looked beyond U.S. political unrest and focused on further stimulus to mend the economic damage of the coronavirus pandemic.
Brent crude settled at $55.99 a barrel, climbing 3% on Friday, supported by Saudi Arabia’s pledge to cut output and strong gains in major equity markets.
Regionally, United Arab Emirates reopened all its land, sea and air entry points with Qatar on Saturday, while Qatar Airways and Saudi Airlines announced they would resume flights between Doha and Riyadh as part of a political rapprochement in a three-year-old dispute.
Saudi Arabia’s index was trading 0.7% higher with Al Rajhi Bank and Saudi Basic Industries rising 1% and 0.8%, respectively.
United Electronics, which kicked off fourth quarter earnings in Saudi Arabia, jumped 8.3% to be the biggest percentage gainer on the index. The electronics retailer said its profit for the quarter surged 41.2% to 101.8 million riyals ($27.14 million).
Dubai’s index advanced 1.5%, with Emirates NBD Bank increasing 2.3% and the largest listed developer Emaar Properties adding 1.8%.
Shuaa Capital gained 2.1% after saying a consortium led by it had bought out 1.13 billion dirhams ($308 million) debt of Dubai-based Stanford Marine Group
The Abu Dhabi index was up 0.4% as First Abu Dhabi Bank and Aldar Properties led the gains, rising 0.6% and 1.2%, respectively.
Qatar’s index was up 0.3%, led by gains in banking shares. Qatar National Bank gained 0.8%.
Masraf Alrayan added 0.9%. On Thursday, the Islamic lender said it had entered into a merger agreement with Al Khalij Commercial Bank (Al Khaliji) and would issue 0.50 of a share for every Al Khaliji share.
Al Khaliji, which is not a part of the index, surged 6.1% in its sixth consecutive day of gains.
Mideast Stocks Climb, Track Global Peers and Oil Gain: Inside EM - Bloomberg
Mideast Stocks Climb, Track Global Peers and Oil Gain: Inside EM - Bloomberg
The Middle East’s benchmark equity indexes all advanced on Sunday, tracking a global stock rally on optimism that a Democratic sweep in the U.S. will boost fiscal spending in the world’s largest economy.
Egypt’s EGX 30 Index climbed for a third day to lead regional gains as the government reported declining inflation. Meantime, Saudi shares increased, hovering at their highest since July 2019.
This year “looks to favor 2020 laggards in the Middle East and North Africa as business activity continues to recover,” Citigroup Inc. analysts including Mumbai-based Rahul Bajaj wrote in a report. The speed of vaccine distribution as well as a normalization in travel and logistics will particularly benefit stocks from the United Arab Emirates, they said.
The Middle East’s benchmark equity indexes all advanced on Sunday, tracking a global stock rally on optimism that a Democratic sweep in the U.S. will boost fiscal spending in the world’s largest economy.
Egypt’s EGX 30 Index climbed for a third day to lead regional gains as the government reported declining inflation. Meantime, Saudi shares increased, hovering at their highest since July 2019.
This year “looks to favor 2020 laggards in the Middle East and North Africa as business activity continues to recover,” Citigroup Inc. analysts including Mumbai-based Rahul Bajaj wrote in a report. The speed of vaccine distribution as well as a normalization in travel and logistics will particularly benefit stocks from the United Arab Emirates, they said.
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