#SaudiArabia Provides Stimulus for Listed Companies in IPO Push - Bloomberg

Saudi Arabia Provides Stimulus for Listed Companies in IPO Push - Bloomberg

Saudi Arabia plans to provide long-term loans to listed companies as part of efforts to encourage private sector firms to float their shares on the kingdom’s stock exchange.

The government’s Projects Support Fund Initiative signed an agreement with the Saudi Stock Exchange on the stimulus plan, according to a statement on the finance ministry’s website.

• “The agreement comes with the objective of expanding the lending scope to the private sector in the healthcare, education and large real estate development sectors”
• “This comes within the framework of initiatives to incentivize and encourage private sector companies to offer and list their shares on the stock exchange”

#Saudi crown prince says kingdom offers $6 trillion investment opportunities over next decade - state news agency | Reuters

Saudi crown prince says kingdom offers $6 trillion investment opportunities over next decade - state news agency | Reuters

Saudi Crown Prince Mohammed bin Salman said the kingdom offers investment opportunities worth $6 trillion over the next decade, with new projects representing half of this value, the state news agency reported, citing his speech at the World Economic Forum on Wednesday.

The opportunities are part of the young prince’s Vision 2030, aimed at ending the kingdom’s dependence on oil and transforming it into a global investment power.

The prince, known in the West as MbS, plans to create new sectors and develop domestic projects that would create jobs for millions of Saudis, through the Public Investment Fund (PIF), the kingdom’s sovereign investment fund that acts as the main vehicle boosting investments at home and abroad.

PIF will finance 85% of these opportunities along with the Saudi private sector, while the remaining financing will come from capital investments from investors in the Gulf and globally, Saudi Press Agency said, quoting the prince’s speech.

#Oman's new parliament law shrouds budget talks in secrecy | Reuters

Oman's new parliament law shrouds budget talks in secrecy | Reuters

Oman has introduced a new law for parliament stipulating that state budget talks and the questioning of ministers should be carried out in secret, reducing transparency as the indebted state tries to tackle its creaking finances and shore up the economy.

Since assuming power a year ago, Sultan Haitham bin Tariq al-Said has overhauled government and state entities and begun pushing through sensitive fiscal reforms such as reductions in subsidies and the introduction of a value-added tax, which had dragged down his predecessor the late Sultan Qaboos.

Last week, the sultanate’s ruler announced a constitutional shakeup that included the appointment of a crown prince for the first time and new rules on how the bicameral parliament, the Council of Oman, would work.

The new law, published in the official gazette on Sunday, states that discussions in both the elected lower house and the appointed upper house on draft development plans and the state budget should be conducted in secret as should sessions for the questioning of ministers. The previous Basic Law did not specify such secrecy.

Land of wine and honey? Israeli settlers export to #UAE, to Palestinian chagrin | Reuters

Land of wine and honey? Israeli settlers export to UAE, to Palestinian chagrin | Reuters

Wine produced in an Israeli settlement in the occupied West Bank and labelled “from the land of Israel” will soon be available for sale in the United Arab Emirates, settler business leaders said.

Palestinians have condemned the export deal, saying settlements are illegal under international law, a view shared by many countries but disputed by Israel.

After forging official relations with the UAE last year under a U.S.-brokered deal that enraged Palestinians, a business conglomerate in the Arab Gulf state says it has an import deal for wine and olive oil with the Tura Winery in the Rehelim settlement.

The winery’s owner, Vered Ben-Sa’adon, told Reuters the exports showed that new Israel-UAE ties also extended to settlements, on West Bank land captured in a 1967 war and that Palestinians seek for a state.

“It’s very exciting for (people in the UAE) to feel the peace process, to be a part of it. When you sit in a hotel in Abu Dhabi, and drink a glass of Tura (wine), it’s to be a part of history,” said Ben-Sa’adon, 44.

Most Mideast Equity Gauges Fall as Earnings Roll In: Inside EM - Bloomberg

Most Mideast Equity Gauges Fall as Earnings Roll In: Inside EM - Bloomberg

Qatar stocks led losses in the Middle East as companies started reporting results across the region.

Profitability for lenders in the Gulf Arab region remains under pressure, with disruptions to trade and travel continuing to rattle the energy-rich region. Qatar National Bank QPSC, the Middle East’s biggest lender, reported last week a 16% drop in net income for 2020. Some banks in Oman also published results that showed a decline from last year. After the market closed on Sunday, Qatar Islamic Bank SAQ posted earnings that beat estimates.

The focus this week “will be on banks as they will be the first to report 4Q earnings in the United Arab Emirates,” said Harshjit Oza, head of research at Abu Dhabi-based International Securities. “We are expecting improved sequential performance in general for the sector.”

Doha’s QE Index fell 0.5%, the most in the region. Dubai’s DFM General Index dropped as much as 1.4%, before paring losses to 0.3% at close. Equity gauges in Bahrain, Kuwait, Israel and Egypt lost as much as 0.4%, while those in Abu Dhabi and Oman climbed as much as 0.3%.

Dividend-paying stocks will also be in the spotlight, Oza said, citing Abu Dhabi-based companies including Aldar Properties PJSC and First Abu Dhabi Bank PJSC.

• In Riyadh, phone operators Mobily and Zain Saudi dropped 0.7% and 1% after the kingdom fined them on several matters, including making promotional offers in violation of rules

• Qatar National Bank, the Middle East’s biggest bank, fell 0.7% in Doha
• QNB’s margin may still decline 4-6 basis points in 2021 versus a 12 basis-point drag last year, Bloomberg Intelligence analysts Edmond Christou and Philip Richards write in a note
• Kuwait’s Premier Market Index dropped 0.2%
• Kuwait’s long-term foreign currency debt rating affirmed by S&P Global Ratings at AA-, outlook remains negative

Mideast Stocks: Most Mideast stocks in red ahead of earnings season | ZAWYA MENA Edition

Mideast Stocks: Most Mideast stocks in red ahead of earnings season | ZAWYA MENA Edition

Most major stock markets in the Middle East ended lower on Sunday, ahead of the usual flurry of quarterly and full-year corporate results over the next few weeks, with the Qatari index leading the losses.

Saudi Arabia's benchmark index lost 0.3%, with petrochemicals company Saudi Basic Industries 2010.SE shedding 1.3% and Dr Sulaiman Al-Habib Medical Services 4013.SE closing 1.7% lower.

The kingdom's inflation rate rose to 3.4% in 2020, government data showed, lifted by the tripling of value-added tax last year as the state sought to boost revenue hit by the coronavirus crisis and lower oil prices.

The economy of the world's largest oil exporter contracted sharply last year, but data suggests the rate of decline slowed in the third quarter as some COVID-19 restrictions were lifted.

Oil prices, a key catalyst for the Gulf region's financial markets, retreated by more than 2% on Friday as concerns about renewed Chinese coronavirus lockdowns tempered a rally driven by strong import data from the world's biggest crude importer.

Dubai's main share index fell 0.3%, driven down by a 0.5% drop for blue-chip developer Emaar Properties and a 1.6% decline in shares of Emaar Malls .

The Abu Dhabi index, however, close 0.3% up, with telecoms company Etisalat rising 1.1% while Aldar Properties finished with a 0.9% gain.

Abu Dhabi, the capital of the Untied Arab Emirates, has agreed a deal to produce and export hydrogen as fuel, its state media office said on Sunday.

The Qatar index dropped 0.5%, with most stocks in negative territory, including a 0.8% decline for petrochemicals producer Industries Qatar.

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

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

#Israel’s Biggest Banks to Cooperate With Bahrain Lender - Bloomberg

Israel’s Biggest Banks to Cooperate With Bahrain Lender - Bloomberg

Israel’s two largest lenders have each signed memorandums of understanding with National Bank of Bahrain to facilitate business dealings between the countries.

Bank Leumi Le-Israel and Bank Hapoalim Ltd. said on Sunday they reached cooperation agreements with the Bahraini bank. The accords will provide a banking platform for trade ties, currency and securities trading, as well as investment between the two countries.

Bahrain in September signed an agreement to establish normal relations with Israel.

#AbuDhabi Starts $1.6 Billion Supply-Chain Financing for SMEs - Bloomberg

Abu Dhabi Starts $1.6 Billion Supply-Chain Financing for SMEs - Bloomberg

Abu Dhabi started a 6-billion dirham ($1.6 billion) supply-chain financing for small and medium-sized enterprises to help them weather the impact of the coronavirus.

The first phase of the initiative targets the healthcare sector and will partner the National Health Insurance Co., also known as Daman, and First Abu Dhabi Bank PJSC, according to Abu Dhabi’s Department of Finance.

It aims to facilitate quick payment of SMEs’ receivables and reduce their costs of working capital, it said.

NBK Capital Partners aims to boost assets to $2bn by 2025 | The National

NBK Capital Partners aims to boost assets to $2bn by 2025 | The National

NBK Capital Partners, a subsidiary of Kuwait’s biggest lender, aims to boost its assets under management to $2 billion by 2025 as it looks to launch a new technology-focused investment platform, its senior managing director said.

More investment deals and boosting investments in its existing portfolio of healthcare, pharmaceutical and e-commerce companies, will help nearly double AUMs over the next five years from the current $1.2bn, Yaser Moustafa, told The National in an interview.

"What we’re really excited about is that we think 2021 and 2022 will be [a] really exciting time to be investing capital in the region," Mr Moustafa said. "Private equity and private credit – both of these asset classes will be really of interest for those who know what they are doing and [how to] raise capital."

NBK Capital Partners, an alternative asset manager, runs closed-ended third party investment vehicles that invest in private equity, private capital and real estate.

The company plans to launch its new technology platform within the next 12 to 24 months, "or possibly earlier", Mr Moustafa said.

Coronavirus News: #Israel to Begin Reopening Economy in February, Minister Say - Bloomberg

Coronavirus News: Israel to Begin Reopening Economy in February, Minister Say - Bloomberg

Israel will begin gradually reopening its economy from February, and much of it will be active by March, Finance Minister Israel Katz said on Sunday.

The country has been under lockdown since the end of December, its third since the beginning of the coronavirus pandemic, as infections continue to climb.

“We will have to be very exact with our decisions, in order to stop the spread of infection on the one hand, and allow the economy to reopen on the other,” Katz said in an interview with Kan radio.

Israel’s economy probably contracted by 3.7% in 2020, according to the central bank’s Jan. 4 estimate. The economy may expand by as much as 6.3% in 2021 under a rapid vaccine drive, or as little as 3.5% if doses are given out gradually, according to the forecast. Some 23% of the population has received its first dose of vaccine in a two-dose regimen, and 2.5% have had both doses.

Oil-Rich #AbuDhabi Targets Hydrogen as Fuel for Future Export - Bloomberg

Oil-Rich Abu Dhabi Targets Hydrogen as Fuel for Future Export - Bloomberg

Three of Abu Dhabi’s biggest government-backed companies agreed to work together to turn the oil-rich emirate into an exporter of blue and green hydrogen.

Mubadala Investment Co., Abu Dhabi National Oil Co. and ADQ have formed an alliance to produce hydrogen using natural gas and renewable energy and market it overseas as well as in the United Arab Emirates, ADQ said in a statement.

Some Middle Eastern states that built their fortunes on oil are seeking to develop hydrogen as fuel, given a shift among some of their buyers toward less-polluting alternatives to crude. Saudi Arabia’s energy minister has said he wants the kingdom -- the world’s biggest oil exporter -- to become the world’s largest shipper of hydrogen.

Like Saudi Arabia, Abu Dhabi produces natural gas, which it could use to produce what is known as blue hydrogen. It also has ample sunshine, which it could harness to develop a variant called green hydrogen. Abu Dhabi is the capital and largest emirate in the UAE.

#SaudiArabia’s Top Bank Follows #UAE Rivals to Dollar Bond Market - Bloomberg

Saudi Arabia’s Top Bank Follows UAE Rivals to Dollar Bond Market - Bloomberg

Saudi Arabia’s National Commercial Bank hired advisers to tap the dollar bond market, joining rivals in the neighboring United Arab Emirates to take advantage of investors’ appetite for yield.

The bank mandated Citigroup Inc., Emirates NBD PJSC, Goldman Sachs Group Inc., JPMorgan Chase & Co., Mitsubishi UFJ Financial Group, NCB Capital and Standard Chartered Plc as lead managers and bookrunners for the potential Islamic bond offering, according to a statement.

The unprecedented monetary stimulus to help economies stung by the coronavirus crisis has brought yields near or below zero in developed markets and has encouraged issuers to offer debt while it remains cheap to do so. Dubai’s Emirates NBD and First Abu Dhabi Bank PJSC tapped the bond market earlier this month.

#Saudi inflation to remain high until first half of 2021 - Capital Economics | ZAWYA MENA Edition

Saudi inflation to remain high until first half of 2021 - Capital Economics | ZAWYA MENA Edition

Inflation in Saudi Arabia dropped back to 5.3 percent y-o-y in December 2020. But the effect of tripling VAT in July last year will continue to keep the headline rate elevated until the middle of this year, London-based Capital Economics said in a research note.

Saudi Arabia’s headline inflation rate eased from 5.8 percent year-on-year (y/y) in November to 5.3 percent y/y in December, its weakest reading pace since the VAT rate was hiked by 10 percent-points in July last year. On a month-on-month basis, which tends to be volatile due to seasonal effects, consumer prices fell for a second consecutive months, by 0.2 percent.

The breakdown of the data showed that the drop in inflation was fairly broad-based. Of the twelve major price categories, year-on-year inflation fell or was unchanged in seven. Food inflation, which accounts for around 20 percent of the CPI basket, eased from 13 percent y-o-y in November to 12.7 percent y-o-y in December. There were also declines in housing and transport inflation, with the former slipping deeper into negative territory, Capital Economics noted.

Partially offsetting all of this, health inflation hit a two-year high on the back of higher inflation of pharmaceutical products, as well as outpatient and hospital services. There were also modest increases in tobacco, as well as clothing, communications and hotels and restaurants inflation.

Major Gulf bourses dip ahead of earnings season | Reuters

Major Gulf bourses dip ahead of earnings season | Reuters

Major stock markets in the Gulf were subdued in early trade ahead of the usual flurry of quarterly and full-year corporate results over the next few weeks, with the Dubai index leading the losses.

Saudi Arabia’s benchmark index fell 0.2%, driven down by a 0.4% decline for Al Rajhi Bank and a 1.2% retreat in shares of Dr Sulaiman Al-Habib Medical Services.

The kingdom’s inflation rate rose to 3.4% in 2020, government data showed, lifted by the tripling of value-added tax last year as the state sought to boost revenue hit by the coronavirus crisis and lower oil prices.

Oil prices, a key catalyst for the Gulf region’s financial markets, retreated by more than 2% on Friday as concerns about renewed Chinese coronavirus lockdowns tempered a rally driven by strong import data from the world’s biggest crude importer.[O/R]

Dubai’s main share index lost 0.4%, with Emirates NBD Bank down 0.4% while blue-chip developer Emaar properties slipped by 0.5%.

In Abu Dhabi, the index eased by 0.1% as telecoms company Etisalat and First Abu Dhabi Bank, the copuntry’s largest lender, retreated by 0.5% and 0.1% respectively.

The Qatar index also traded 0.1% lower, weighed down by a 0.4% fall for the Gulf’s biggest lender, Qatar National Bank.

#Dubai Stocks Fall Most in Mideast as Earnings Roll In: Inside EM - Bloomberg

Dubai Stocks Fall Most in Mideast as Earnings Roll In: Inside EM - Bloomberg

Dubai stocks led losses in the Middle East as companies started reporting results across the region and the number of coronavirus cases surged.

Profitability for lenders in the Gulf Arab region remains under pressure, with disruptions to trade and travel continuing to rattle the energy-rich region. Qatar National Bank QPSC, the Middle East’s biggest lender, reported last week a 16% drop in net income for 2020. Some banks in Oman also published results that showed a decline from last year. Qatar Islamic Bank SAQ is expected to publish results Sunday.

The focus this week “will be on banks as they will be the first to report 4Q earnings in the United Arab Emirates,” said Harshjit Oza, head of research at Abu Dhabi-based International Securities. “We are expecting improved sequential performance in general for the sector.”

The DFM General Index dropped as much as 1.4%, with the biggest-listed lender Emirates NBD PJSC falling 1.3% and dragging the index down by the most. Equity gauges in Abu Dhabi and Riyadh lost 0.2% each, while those in Oman, Kuwait, Bahrain and Qatar climbed as much as 0.3%.

Dividend-paying stocks will also be in the spotlight, Oza said, citing Abu Dhabi-based companies including Aldar Properties PJSC and First Abu Dhabi Bank PJSC.