#Oman Prices Third Bond Sale Since October to Plug Deficit - Bloomberg

Oman Prices Third Bond Sale Since October to Plug Deficit - Bloomberg

Oman returned to the debt market for the third time in less than three months, taking advantage of investors’ appetite for yield to help plug the Gulf Arab region’s widest budget deficit.

The largest oil exporter outside of OPEC sold $3.25 billion in a three-part debt offering.

• Oman priced $1.75 billion in 10-year notes at a yield of 6.25%, according to people familiar with the matter, compared with an initial price target of 6.625%
• It sold another $1 billion in 30-year securities at 7.25%, versus guidance of 7.5% and initial price talk of between 7.625% and 7.75%
• It also tapped $500 million of its 2025 bond at 4.45%; earlier guidance was for 4.625%-4.75%, and the initial price talk was 4.875%, the people said, asking not to be identified because the details are confidential

Oil prices climb on Chinese data, dollar weakness | Reuters

Oil prices climb on Chinese data, dollar weakness | Reuters

Oil prices edged higher on Thursday, boosted by a weak dollar and bullish signals from Chinese import data but pressured by renewed worries about global oil demand due to surging coronavirus cases in Europe and new lockdowns in China.

Brent crude oil futures rose 36 cents, or 0.6%, to settle at $56.42 a barrel. U.S. West Texas Intermediate (WTI) ended 66 cents, or 1.3%, higher at $53.57.

The U.S. dollar index slumped after U.S Federal Reserve Chair Jerome Powell struck a dovish tone, saying the U.S. central bank is not raising interest rates anytime soon.

A weaker greenback makes dollar-denominated oil cheaper for holders of foreign currencies.

Raising hopes of increased oil demand was a hefty U.S. COVID-19 relief package, which President-elect Joe Biden is due to unveil on Thursday.

Mideast Stocks: Most Gulf shares ease, but weekly gains intact | Reuters

Mideast Stocks: Most Gulf shares ease, but weekly gains intact | Reuters

Saudi Arabian and United Arab Emirates share indexes weakened on Thursday on lower oil prices but still held on to weekly gains, while Qatari and Egyptian stocks finished the week on a high.

Oil prices dipped as bullish signals from Chinese import data and U.S. crude oil stocks draws were outweighed by surging coronavirus cases in Europe and new lockdowns in China. [O/R]

Saudi Arabia’s benchmark index edged down 0.2%, with Al Rajhi Bank and oil behemoth Saudi Aramco easing 0.4% each. The index gained 1.9% on the week.

Saudi Arabian inflation rose to 3.4% in 2020, lifted by the tripling of value-added tax last year as the kingdom sought to boost state revenues hit by the coronavirus crisis and lower oil prices.

Property stocks weighed on Dubai’s main index with the benchmark dropping for the first time this week, by 0.7%.

Blue-chip developer Emaar Properties was the worst performer, slipping 1.5%, while Damac Properties and Emaar Malls lost 3.4% and 1%, respectively.

The index, however, posted its second successive weekly gain with a rise of almost 3.0%.

In Abu Dhabi, the benchmark lost 0.5%, also its first blip during the week and only the second time it has slipped out of the 10 trading days in the new year. It was up nearly 2% on the week.

The country’s largest lender First Abu Dhabi Bank fell 0.4% on Thursday, while telecoms major Etisalat was down 0.6%.

In Qatar, the main index firmed 0.4%, supported by a 4.3% gain in Qatar Industries and 0.9% increase in Qatar Islamic Bank. It was also up around 2% on the week.

#AbuDhabi on track to launch Murban futures trading in March | ZAWYA MENA Edition

Abu Dhabi on track to launch Murban futures trading in March | ZAWYA MENA Edition

ICE Futures Abu Dhabi (IFAD), which will host the futures contracts for Abu Dhabi’s flagship Murban crude oil, is on track to launch by the end of March 2021, the exchange’s operator said on Wednesday.

Stuart Williams, President of ICE Futures Europe Intercontinental Exchange, told a Gulf Intelligence webinar that IFAD and trading in Murban futures would be launched on 29 March 2021.

The launch, originally scheduled for the first half of 2020, was delayed due to the COVID-19 outbreak. The new launch date was announced in November last year.

Williams said IFAD had received approvals from the Bank of England and the Monetary Authority of Singapore. Bank of England’s approval will allow ICE Clear Europe, the clearing house, to clear contracts traded on IFAD.

Last year, approvals were obtained from Abu Dhabi Global Market, the United States, and Switzerland.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

#SaudiArabia steps up domestic investment as low oil prices and coronavirus bite | Financial Times

Saudi Arabia steps up domestic investment as low oil prices and coronavirus bite | Financial Times

Saudi Arabia’s sovereign wealth fund has committed to spending at least $40bn annually in the domestic economy over the next five years as it prepares to break ground on its latest mega-project.  

Yasir al-Rumayyan, governor of the Public Investment Fund, told the Financial Times that after 2025, “these amounts, maybe, will grow higher” as he described the investment vehicle becoming the “engine of economic growth” in the kingdom. The PIF invested about $15.5bn in the kingdom in 2019. 

Mr Rumayyan was speaking days after the PIF unveiled its most ambitious project to date — the creation of a futuristic, carbon-free city that will stretch along a narrow, 170km strip of Neom, Crown Prince Mohammed bin Salman’s flagship development. The cost of infrastructure for the city, known as “The Line” is expected to be between $100bn and $200bn, with the PIF its cornerstone investor. 

Mr Rumayyan said financing for the project would come through a combination of bonds, loans and equity from the $400bn PIF, as well as outside investments.

#Dubai Loan Standoff May Pit State Company Against Lenders - Bloomberg video

Dubai Loan Standoff May Pit State Company Against Lenders - Bloomberg

Doug Bitcon, Rasmala Investment Bank, Head of Credit Strategies discusses Dubai's rising government debt. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

#Oman back to debt markets with multi-tranche dollar bond offering | Reuters

Oman back to debt markets with multi-tranche dollar bond offering | Reuters

Oman started selling U.S. dollar-denominated multi-tranche bonds on Thursday, a document showed, as the debt-burdened Gulf oil producer seeks fresh funding to cover a large fiscal shortfall.

Oman is selling bonds with maturities of 10 and 30 years, and it re-opened $750 million bonds due in 2025, according to a document issued by one of the banks leading the deal and seen by Reuters.

Oman, rated below investment grade by all major credit ratings agencies, has piled up debt at breakneck speed over the past few years to offset a decline in oil prices and cover widening deficits.

On Thursday, it started marketing the 10-year paper at around 6.625% and the 30-year at 7.625%-7.75%, while the re-opening, or “tap”, of the 2025 bonds was marketed at around 4.875%.

Fixed income market outlook: GCC issuances to remain subdued in 2021 | ZAWYA MENA Edition

Fixed income market outlook: GCC issuances to remain subdued in 2021 | ZAWYA MENA Edition

Kuwait-based Kamco Invest expects fixed income issuances in 2021 in the GCC to remain flat to marginally lower year-on-year (y-o-y) after record growth last year.

“Government issuances are expected to decline from the exceptional growth in 2020 due to significantly smaller deficit financing expected next year. On the other hand, corporate issuances are expected to remain strong led by economic revival, better business sentiments and lower rates that would partially or fully offset the overall decline,” Kamco Invest said in a report Wednesday.

GCC fixed income issuances during 2020 rose for the second consecutive year notching another record high, but the y-o-y growth was marginal compared to last year. Growth for the year was dragged by December numbers when there were no primary market bonds or sukuk from the regional governments and no sukuk issuances from the corporates.

Total issuances reached $140.3 billion during the year as compared $139.1 billion in 2019 led by higher issuances of bonds, whereas sukuk issuances remained flat.

Bond issuances reached $95.3 billion in 2020 in the region compared to $94.1 billion during 2019, up 1.2 percent y-o-y, whereas sukuk issuances stood at $45 billion.

#AbuDhabi Investment Office expands global network with eight new hubs | ZAWYA MENA Edition

Abu Dhabi Investment Office expands global network with eight new hubs | ZAWYA MENA Edition

Etihad Towers is the name of a complex of buildings with five towers in Abu Dhabi, the capital city of the 

United Arab Emirates. Image used for illustrative purpose.

Getty Images

State-run Abu Dhabi Investment Office (ADIO) is expanding its presence around the world, including the United States, Israel, China, Germany, France and the United Kingdom, to attract more new businesses to the emirate.

At least eight new ADIO global network offices in Tel Aviv, New York, San Francisco, Frankfurt, London, Paris, Beijing and Seoul have just been established, a statement confirmed on Thursday.

ADIO enables opportunities for domestic and foreign investors aligned with Abu Dhabi’s economic priorities

“[The opening of new offices] reflects Abu Dhabi’s commitment to launch greater investment opportunities in collaboration with the emirate’s key international partners,” said Mohammed Ali Al Shorafa, chairman of ADIO,

“The representative offices will serve as a bridge between key international markets and the exciting opportunities in some of our economy’s highest potential areas, opening up new areas of cooperation between the domestic private sector and its international counterparts,” he added.

Oil prices edge up on strong China data, U.S. crude oil draw | Reuters

Oil prices edge up on strong China data, U.S. crude oil draw | Reuters

Oil prices edged higher on Thursday after a drawdown in U.S. crude stocks for a fifth straight week and robust data from China showing a surge in imports, though mounting coronavirus cases globally capped gains.

Brent crude oil futures gained 13 cents, or 0.2%, to $56.19 a barrel by 0744 GMT, while U.S. West Texas Intermediate (WTI) increased 20 cents, or 0.4%, to $53.11 a barrel.

China’s total crude oil imports rose 7.3% in 2020 despite the coronavirus shock, with record arrivals in the second and third quarters as refineries expanded operations and low prices encouraged stockpiling, customs data showed.

“It capped off a strong year with most commodities recording positive growth despite weaker economic growth,” analysts from ANZ Bank said in a note on Thursday.

MIDEAST STOCKS-Most major Gulf markets fall in early trade; #Qatar up | Nasdaq

MIDEAST STOCKS-Most major Gulf markets fall in early trade; Qatar up | Nasdaq

Most major Gulf markets were in negative territory on Thursday, mirroring weak oil prices as mounting coronavirus cases globally raised demand concerns, although Qatar bucked the trend to trade higher.

Brent crude oil futures LCOc1 fell 18 cents, or 0.3%, to $55.88 a barrel by 0425 GMT. O/R

Saudi Arabia's benchmark index .TASI fell 0.4%, with Al Rajhi Bank 1120.SE losing 0.4%, while the kingdom's largest lender, National Commercial Bank 1180.SE, was down 0.6%.

Elsewhere, oil giant Saudi Aramco 2222.SE eased 0.3%.

Aramco has cut supplies of February-loading crude for some Asian buyers by up to a quarter while meeting requirements of at least four others, Reuters reported on Wednesday, citing several refinery and trade sources.

Dubai's main share index .DFMGI dropped 0.8%, as most of the stocks on the index were in negative territory including blue-chip developer Emaar Properties EMAR.DU, which was down 0.7%.

In Abu Dhabi, the index .ADI lost 0.4%, hit by a 0.4% fall in the country's largest lender, First Abu Dhabi Bank FAB.AD.

The daily number of COVID-19 cases in the United Arab Emirates crossed the 3,000 threshold for the first time this week as authorities in the Middle East's business and tourism hub urged people to accept vaccinations.

The surge in infections in the UAE prompted Britain to remove the country from its travel corridors list on Tuesday.

The Qatari index .QSI, however, rose 0.1%, supported by a 0.5% increase in Qatar Islamic Bank QISB.QA.