Oil jumps 2%, hits highest in a year as producers limit supply | Financial Post
Oil prices rose 2% on Tuesday, reaching their highest in 12 months after major producers showed they were reining in output roughly in line with their commitments.
The global and U.S. crude benchmarks rallied as optimism about more U.S. economic stimulus added to market bullishness from OPEC production levels, which rose less than expected in January.
Brent crude settled up $1.11, or 2%, at $57.46 a barrel, after its third straight day of gains. During the session, it touched $58.05, the highest levels since January last year.
U.S. oil gained $1.21, or 2.3%, to close at $54.76, after hitting a session high of $55.26, the highest in a year.
Crude output from the Organization of the Petroleum Exporting Countries rose in January for a seventh month but the increase was smaller than expected, a Reuters survey found.
Tuesday 2 February 2021
OPEC Core’s Crude Exports Slip Even as Output Curbs Are Eased - Bloomberg
OPEC Core’s Crude Exports Slip Even as Output Curbs Are Eased - Bloomberg
Oil shipments from OPEC’s Persian Gulf producers slipped last month, even as output restrictions were eased and production volumes increased.
Combined shipments of crude and condensate -- a light form of oil extracted from gas fields -- from Saudi Arabia, Iraq, the United Arab Emirates and Kuwait were almost 430,000 barrels a day lower in January than in December. The UAE was the only one of the group to boost shipments last month, vessel-tracking data monitored by Bloomberg show.
The four Persian Gulf nations shipped a total of 13.59 million barrels a day of crude and condensate last month. With 29 million barrels, equivalent to about 940,000 barrels a day, on ships yet to signal a final destination, the volumes delivered to individual countries could rise significantly.
The biggest drop came from Saudi Arabia, where shipments fell by 688,000 barrels a day, or 10%, to their lowest level since August. It reversed the previous month’s increase and was the biggest month-on-month decline since June, when the kingdom implemented a unilateral output cut of 1 million barrels a day.
Oil shipments from OPEC’s Persian Gulf producers slipped last month, even as output restrictions were eased and production volumes increased.
Combined shipments of crude and condensate -- a light form of oil extracted from gas fields -- from Saudi Arabia, Iraq, the United Arab Emirates and Kuwait were almost 430,000 barrels a day lower in January than in December. The UAE was the only one of the group to boost shipments last month, vessel-tracking data monitored by Bloomberg show.
The four Persian Gulf nations shipped a total of 13.59 million barrels a day of crude and condensate last month. With 29 million barrels, equivalent to about 940,000 barrels a day, on ships yet to signal a final destination, the volumes delivered to individual countries could rise significantly.
The biggest drop came from Saudi Arabia, where shipments fell by 688,000 barrels a day, or 10%, to their lowest level since August. It reversed the previous month’s increase and was the biggest month-on-month decline since June, when the kingdom implemented a unilateral output cut of 1 million barrels a day.
#Saudi wealth fund to raise more than $10 billion with loan - sources | Reuters
Saudi wealth fund to raise more than $10 billion with loan - sources | Reuters
Saudi Arabia’s sovereign wealth fund may raise $10 billion or more through a revolving loan, exceeding what it initially targeted, sources said, as the Public Investment Fund (PIF) seeks extra liquidity to fund its plans.
The fund, which is the engine of Crown Prince Mohammed bin Salman’s economic transformation plans for Saudi Arabia and manages a portfolio worth $400 billion, has boosted its firepower by tapping several funding sources in recent years.
PIF, which declined to comment, is raising the new facility for general corporate use, the sources told Reuters.
It has been in talks with banks since late last year about a loan facility, its third such debt raising since 2018, which it initially targeted at $7 billion.
Saudi Arabia’s sovereign wealth fund may raise $10 billion or more through a revolving loan, exceeding what it initially targeted, sources said, as the Public Investment Fund (PIF) seeks extra liquidity to fund its plans.
The fund, which is the engine of Crown Prince Mohammed bin Salman’s economic transformation plans for Saudi Arabia and manages a portfolio worth $400 billion, has boosted its firepower by tapping several funding sources in recent years.
PIF, which declined to comment, is raising the new facility for general corporate use, the sources told Reuters.
It has been in talks with banks since late last year about a loan facility, its third such debt raising since 2018, which it initially targeted at $7 billion.
#UAE News: Emirates Global Aluminium to Sell First Solar-Based Aluminum to BMW - Bloomberg
UAE News: Emirates Global Aluminium to Sell First Solar-Based Aluminum to BMW - Bloomberg
BMW AG and Emirates Global Aluminium PJSC have struck a deal for the first aluminum produced using solar power, a milestone for both their energy-intensive industries.
The Middle East’s biggest aluminum maker will supply 43,000 metric tons per year of solar aluminum to the German carmaker in a deal worth at least 100 million euros ($121 million), the two companies said in statements on Tuesday.
EGA, based in the United Arab Emirates, is the world’s first firm to make aluminum commercially with solar electricity, according to the statements. It will use power generated at the Mohammed Bin Rashid Al Maktoum Solar Park, located in a desert near Dubai. The aluminum will provide almost half of the needs of BMW’s Landshut plant northeast of Munich.
Landshut will play an important role in BMW’s plan to take on Tesla Inc., with the facility supplying components for electric vehicles such as the future iX and i4 models.
BMW AG and Emirates Global Aluminium PJSC have struck a deal for the first aluminum produced using solar power, a milestone for both their energy-intensive industries.
The Middle East’s biggest aluminum maker will supply 43,000 metric tons per year of solar aluminum to the German carmaker in a deal worth at least 100 million euros ($121 million), the two companies said in statements on Tuesday.
EGA, based in the United Arab Emirates, is the world’s first firm to make aluminum commercially with solar electricity, according to the statements. It will use power generated at the Mohammed Bin Rashid Al Maktoum Solar Park, located in a desert near Dubai. The aluminum will provide almost half of the needs of BMW’s Landshut plant northeast of Munich.
Landshut will play an important role in BMW’s plan to take on Tesla Inc., with the facility supplying components for electric vehicles such as the future iX and i4 models.
#UAE citizenship amendment is 'symbolically significant': Moody's | ZAWYA MENA Edition
UAE citizenship amendment is 'symbolically significant': Moody's | ZAWYA MENA Edition
UAE’s decision to grant citizenship to highly qualified foreigners is ‘symbolically significant’ but nominations are likely to be limited to a small number of people at first, Thaddeus Best, analyst at Moody’s Investors Service, told Zawya.
“The criteria are quite qualitative, requiring exceptional achievement in scientific or creative endeavors in addition to being recommended by members of the Federal cabinet, emirate executive councils or local courts.
“While impossible to quantify, the emphasis on exceptional talent would suggest that the target audience is likely to be initially limited to a fairly small number of expats,” he told Zawya in an emailed response.
The new citizenship policy was announced by Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE and Ruler of Dubai, last week. It will allow talented scientists, doctors, inventors, intellectuals and creative individuals who meet criteria, including international recognition, to be nominated to receive UAE citizenship.
Successful applicants will be able to retain dual nationality, something that was not previously the case.
UAE’s decision to grant citizenship to highly qualified foreigners is ‘symbolically significant’ but nominations are likely to be limited to a small number of people at first, Thaddeus Best, analyst at Moody’s Investors Service, told Zawya.
“The criteria are quite qualitative, requiring exceptional achievement in scientific or creative endeavors in addition to being recommended by members of the Federal cabinet, emirate executive councils or local courts.
“While impossible to quantify, the emphasis on exceptional talent would suggest that the target audience is likely to be initially limited to a fairly small number of expats,” he told Zawya in an emailed response.
The new citizenship policy was announced by Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE and Ruler of Dubai, last week. It will allow talented scientists, doctors, inventors, intellectuals and creative individuals who meet criteria, including international recognition, to be nominated to receive UAE citizenship.
Successful applicants will be able to retain dual nationality, something that was not previously the case.
MIDEAST STOCKS-UAE markets extend gains; #Saudi falls | Nasdaq
MIDEAST STOCKS-UAE markets extend gains; Saudi falls | Nasdaq
Most major Gulf markets finished higher on Tuesday, tracking broader Asian shares, as increased optimism about economic stimulus and global recovery boosted investor sentiment.
MSCI's gauge of Asia Pacific stocks outside Japan .MIAPJ0000PUS rose 1.49%, building on Monday's 2.3% gain as the markets remained buoyant ahead of Tuesday's talks between U.S. President Joe Biden and Republic Senators on a new COVID support bill.
The markets in the United Arab Emirates (UAE) led the Gulf region's gains for the second straight day, with both Abu Dhabi .ADI and Dubai .DFMGI shares firming about a percent.
The Abu Dhabi index put on 1.1%, driven by a 5% jump in Aldar Properties ALDAR.AD, while UAE's largest lender First Abu Dhabi Bank FAB.AD added 1.2%.
Dubai's main share index climbed 1%, buoyed by a 1.7% increase in its biggest lender Emirates NBD Bank ENBD.DU, while blue-chip developer Emaar Properties EMAR.DU tacked on 2.1%.
The investor sentiment in Dubai got a further boost as the emirate is all set to start vaccinating people with the Oxford-AstraZeneca AZN.L COVID-19 shot. The UAE is battling its biggest outbreak since the start of the pandemic.
In Qatar, the index .QSI firmed 0.4%, with petrochemical maker Industries Qatar IQCD.QA gaining 2.2%.
The Gulf state is planning to meet fixed income investors starting in mid-February, Reuters reported, citing two sources, ahead of a potential sale of international bonds.
Elsewhere, Saudi Arabia's benchmark index .TASI shed 0.4%, its third consecutive session of losses.
Index heavyweight Al-Rajhi Bank 1120.SE was the worst performer on the Saudi benchmark, declining 0.7%, while Saudi Basic Industries Corp 2010.SE, the world's fourth-biggest petrochemicals firm, slipped 1.3%.
Separately, Saudi Arabia's sovereign wealth fund may raise $10 billion or more through a revolving loan, exceeding what it initially targeted, sources said, as the Public Investment Fund (PIF) seeks extra liquidity to fund its plans.
Most major Gulf markets finished higher on Tuesday, tracking broader Asian shares, as increased optimism about economic stimulus and global recovery boosted investor sentiment.
MSCI's gauge of Asia Pacific stocks outside Japan .MIAPJ0000PUS rose 1.49%, building on Monday's 2.3% gain as the markets remained buoyant ahead of Tuesday's talks between U.S. President Joe Biden and Republic Senators on a new COVID support bill.
The markets in the United Arab Emirates (UAE) led the Gulf region's gains for the second straight day, with both Abu Dhabi .ADI and Dubai .DFMGI shares firming about a percent.
The Abu Dhabi index put on 1.1%, driven by a 5% jump in Aldar Properties ALDAR.AD, while UAE's largest lender First Abu Dhabi Bank FAB.AD added 1.2%.
Dubai's main share index climbed 1%, buoyed by a 1.7% increase in its biggest lender Emirates NBD Bank ENBD.DU, while blue-chip developer Emaar Properties EMAR.DU tacked on 2.1%.
The investor sentiment in Dubai got a further boost as the emirate is all set to start vaccinating people with the Oxford-AstraZeneca AZN.L COVID-19 shot. The UAE is battling its biggest outbreak since the start of the pandemic.
In Qatar, the index .QSI firmed 0.4%, with petrochemical maker Industries Qatar IQCD.QA gaining 2.2%.
The Gulf state is planning to meet fixed income investors starting in mid-February, Reuters reported, citing two sources, ahead of a potential sale of international bonds.
Elsewhere, Saudi Arabia's benchmark index .TASI shed 0.4%, its third consecutive session of losses.
Index heavyweight Al-Rajhi Bank 1120.SE was the worst performer on the Saudi benchmark, declining 0.7%, while Saudi Basic Industries Corp 2010.SE, the world's fourth-biggest petrochemicals firm, slipped 1.3%.
Separately, Saudi Arabia's sovereign wealth fund may raise $10 billion or more through a revolving loan, exceeding what it initially targeted, sources said, as the Public Investment Fund (PIF) seeks extra liquidity to fund its plans.
NCB to change name to #Saudi National Bank after its merger | The National
NCB to change name to Saudi National Bank after its merger | The National
National Commercial Bank (NCB), Saudi Arabia's biggest lender by assets, plans to change its name to Saudi National Bank, once it completes its merger with rival Samba Financial Group.
The deal will create the Arab world’s third-biggest banking entity with assets worth $223 billion.
“The committee responsible for preparing the integration plan resolved that the proposed name [Saudi National Bank] shall be the new name of the merged bank” once the merger is approved, NCB said in a statement to Saudi Stock Exchange, where its shares trade.
The transaction, which is subject to approval by the banking regulator and shareholders of both NCB and Samba, is expected to be completed in the first half of this year, the two lenders said in separate statements to the bourse on Monday.
National Commercial Bank (NCB), Saudi Arabia's biggest lender by assets, plans to change its name to Saudi National Bank, once it completes its merger with rival Samba Financial Group.
The deal will create the Arab world’s third-biggest banking entity with assets worth $223 billion.
“The committee responsible for preparing the integration plan resolved that the proposed name [Saudi National Bank] shall be the new name of the merged bank” once the merger is approved, NCB said in a statement to Saudi Stock Exchange, where its shares trade.
The transaction, which is subject to approval by the banking regulator and shareholders of both NCB and Samba, is expected to be completed in the first half of this year, the two lenders said in separate statements to the bourse on Monday.
#Dubai's Meraas makes offer for theme park operator DXBE's bond certificates | Markets – Gulf News
Dubai's Meraas makes offer for theme park operator DXBE's bond certificates | Markets – Gulf News
Dubai’s mega theme parks operator, DXB Entertainments, is in receipt of the conversion notice from Meraas – the first step that will see it being wholly owned by Meraas.
The conversion notice relates to bond certificates issued by DXB Entertainments, for Dh1.216 billion (Accrued interest adds a further Dh269.13 million). The process is expected to be completed on or around February 28, 2021.
These certificates were originally due on June 30, 2026.
It was recently that Meraas - the majority shareholder in DFM-listed DXBE - confirmed it would be making an offer to acquire the rest of the stake and make the company private again. This move, Meraas believes, will better position DXBE to handle the issues arising out of the COVID-19 pandemic and create a clearer path towards future profitability.
Dubai’s mega theme parks operator, DXB Entertainments, is in receipt of the conversion notice from Meraas – the first step that will see it being wholly owned by Meraas.
The conversion notice relates to bond certificates issued by DXB Entertainments, for Dh1.216 billion (Accrued interest adds a further Dh269.13 million). The process is expected to be completed on or around February 28, 2021.
These certificates were originally due on June 30, 2026.
It was recently that Meraas - the majority shareholder in DFM-listed DXBE - confirmed it would be making an offer to acquire the rest of the stake and make the company private again. This move, Meraas believes, will better position DXBE to handle the issues arising out of the COVID-19 pandemic and create a clearer path towards future profitability.
#AbuDhabi pension fund to acquire 31% stake in ADNOC property vehicle for $900mln | ZAWYA MENA Edition
Abu Dhabi pension fund to acquire 31% stake in ADNOC property vehicle for $900mln | ZAWYA MENA Edition
Abu Dhabi National Oil Company (ADNOC) said Tuesday that Abu Dhabi Pension Fund would acquire 31 percent of the energy company's real estate vehicle.
Under the agreement, ADPF will acquire 31 percent of Abu Dhabi Energy Real Estate Company (ADREC), which was created to hold ADNOC's 51 percent stake in Abu Dhabi Property Leasing Holding Co, for $900 million, the energy company said in a statement.
The partnership with the pension fund follows the announcement by ADNOC in September last year that it had entered into a long-term strategic investment pact with Apollo Global Management Inc. and its subsidiaries, one of the world's largest alternative investment managers, and a group of institutional investors, for an underlying real estate portfolio valued at $5.5 billion.
ADPLHC was created to leverage rental income streams from select ADNOC real estate assets under a 24-year master lease agreement. ADPLHC holds long-term leasehold interests underpinned by a sizeable, diversified portfolio of ADNOC real estate assets located across Abu Dhabi.
Abu Dhabi National Oil Company (ADNOC) said Tuesday that Abu Dhabi Pension Fund would acquire 31 percent of the energy company's real estate vehicle.
Under the agreement, ADPF will acquire 31 percent of Abu Dhabi Energy Real Estate Company (ADREC), which was created to hold ADNOC's 51 percent stake in Abu Dhabi Property Leasing Holding Co, for $900 million, the energy company said in a statement.
The partnership with the pension fund follows the announcement by ADNOC in September last year that it had entered into a long-term strategic investment pact with Apollo Global Management Inc. and its subsidiaries, one of the world's largest alternative investment managers, and a group of institutional investors, for an underlying real estate portfolio valued at $5.5 billion.
ADPLHC was created to leverage rental income streams from select ADNOC real estate assets under a 24-year master lease agreement. ADPLHC holds long-term leasehold interests underpinned by a sizeable, diversified portfolio of ADNOC real estate assets located across Abu Dhabi.
Biden Overrules Trump on #UAE Tariff, Keeping Aluminum Duties - Bloomberg
Biden Overrules Trump on UAE Tariff, Keeping Aluminum Duties - Bloomberg
President Joe Biden said he would keep U.S. tariffs in place on aluminum imports from the United Arab Emirates, reversing a last-minute move by his predecessor to grant the Gulf nation relief from the duties.
The 10% tariff will remain in place for national security reasons, the White House announced Monday evening. “In my view, the available evidence indicates that imports from the UAE may still displace domestic production, and thereby threaten to impair our national security,” Biden said.
Former President Donald Trump announced he was suspending tariffs on the UAE’s aluminum imports in a proclamation released on Inauguration Day as he traveled aboard Air Force One from Washington to his Mar-a-Lago resort in Florida. The reprieve came after the UAE agreed last year to a Trump-brokered deal to establish diplomatic relations with Israel.
Biden’s reimposition of the tariffs came less than a week after the U.S. dealt the UAE at least a temporary setback by placing a hold on the sale of as many as 50 advanced F-35 warplanes. An official described the pause as routine.
Aluminum ranks as the UAE’s biggest exported good by value to the U.S., and the nation sold $1.3 billion worth of the metal to American buyers in 2019, according to the Office of the U.S. Trade Representative.
UAE-based Emirates Global Aluminium PJSC, the largest producer in the Middle East, is “monitoring the situation closely,” spokesman Simon Buerk said. EGA dropped plans for an initial share offering after Trump first imposed tariffs on UAE aluminum in 2018.
CRU Group, a commodity researcher, says shipments from the UAE were roughly 11.5% of total U.S. aluminum imports last year through November, and about 14% in 2019. In 2019, the UAE metal accounted for about 11% of all aluminum consumed in the U.S., according to the research group.
President Joe Biden said he would keep U.S. tariffs in place on aluminum imports from the United Arab Emirates, reversing a last-minute move by his predecessor to grant the Gulf nation relief from the duties.
The 10% tariff will remain in place for national security reasons, the White House announced Monday evening. “In my view, the available evidence indicates that imports from the UAE may still displace domestic production, and thereby threaten to impair our national security,” Biden said.
Former President Donald Trump announced he was suspending tariffs on the UAE’s aluminum imports in a proclamation released on Inauguration Day as he traveled aboard Air Force One from Washington to his Mar-a-Lago resort in Florida. The reprieve came after the UAE agreed last year to a Trump-brokered deal to establish diplomatic relations with Israel.
Biden’s reimposition of the tariffs came less than a week after the U.S. dealt the UAE at least a temporary setback by placing a hold on the sale of as many as 50 advanced F-35 warplanes. An official described the pause as routine.
Aluminum ranks as the UAE’s biggest exported good by value to the U.S., and the nation sold $1.3 billion worth of the metal to American buyers in 2019, according to the Office of the U.S. Trade Representative.
UAE-based Emirates Global Aluminium PJSC, the largest producer in the Middle East, is “monitoring the situation closely,” spokesman Simon Buerk said. EGA dropped plans for an initial share offering after Trump first imposed tariffs on UAE aluminum in 2018.
CRU Group, a commodity researcher, says shipments from the UAE were roughly 11.5% of total U.S. aluminum imports last year through November, and about 14% in 2019. In 2019, the UAE metal accounted for about 11% of all aluminum consumed in the U.S., according to the research group.
S&P Sees Gulf Business Cycle Taking Several Quarters to Recover - Bloomberg
S&P Sees Gulf Business Cycle Taking Several Quarters to Recover - Bloomberg
The business cycle in Gulf countries in likely to take “several quarters at least to fully recover” from twin shocks of the coronavirus pandemic and the drop in oil prices, according to S&P Global Ratings.
Corporate and infrastructure companies in the six-nation Gulf Cooperation Council are expected to operate “conservatively” in 2021 as the economy recovers, according to the report. The GCC comprises Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain.
“Absent a substantial recovery in revenue generation, they are likely to focus on cost optimization, proactively managing their liquidity, and preserving their cash lows, while new investments will continue to take a back seat in most sectors,” S&P credit analyst Timucin Engin wrote in a report.
The business cycle in Gulf countries in likely to take “several quarters at least to fully recover” from twin shocks of the coronavirus pandemic and the drop in oil prices, according to S&P Global Ratings.
Corporate and infrastructure companies in the six-nation Gulf Cooperation Council are expected to operate “conservatively” in 2021 as the economy recovers, according to the report. The GCC comprises Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain.
“Absent a substantial recovery in revenue generation, they are likely to focus on cost optimization, proactively managing their liquidity, and preserving their cash lows, while new investments will continue to take a back seat in most sectors,” S&P credit analyst Timucin Engin wrote in a report.
Riskiest Bank Capital Comes Cheaper in Gulf Than for UBS or HSBC - Bloomberg
Riskiest Bank Capital Comes Cheaper in Gulf Than for UBS or HSBC - Bloomberg
The sale by Saudi Arabia’s biggest bank of a high-risk type of bond -- at better rates than larger international peers -- is spurring concerns that investors are mispricing risk amid booming global valuations.
National Commercial Bank last month issued Additional Tier 1 notes at 3.5%, the lowest yield yet for the instrument from the region. That’s also cheaper than issuances over the past six months by higher-rated firms including HSBC Holdings Plc, UBS Group AG and Standard Chartered Plc. Also known as AT1, the notes are the first type of bank debt to suffer losses in a crisis.
Jeddah-based NCB, which is in the middle of a $15 billion takeover of a local rival, saw demand for four times the amount of the securities on offer at the Jan. 21 sale. The clamor defied the fallout from the global pandemic, a 14% drop in oil since the start of 2020 and a warning by Fitch Ratings in November that a jump in impairment charges may pressure banks’ creditworthiness.
Introduced after the global financial crisis, AT1s are typically repaid by banks before call options expire to display their financial strength. Banks in the Middle East have issued $17.9 billion of AT1 securities, according to data compiled by Bloomberg.
There have been instances where AT1 bonds have blown up. India last year banned individual investors from buying the securities after seizing one of the nation’s lenders.
The sale by Saudi Arabia’s biggest bank of a high-risk type of bond -- at better rates than larger international peers -- is spurring concerns that investors are mispricing risk amid booming global valuations.
National Commercial Bank last month issued Additional Tier 1 notes at 3.5%, the lowest yield yet for the instrument from the region. That’s also cheaper than issuances over the past six months by higher-rated firms including HSBC Holdings Plc, UBS Group AG and Standard Chartered Plc. Also known as AT1, the notes are the first type of bank debt to suffer losses in a crisis.
Jeddah-based NCB, which is in the middle of a $15 billion takeover of a local rival, saw demand for four times the amount of the securities on offer at the Jan. 21 sale. The clamor defied the fallout from the global pandemic, a 14% drop in oil since the start of 2020 and a warning by Fitch Ratings in November that a jump in impairment charges may pressure banks’ creditworthiness.
Introduced after the global financial crisis, AT1s are typically repaid by banks before call options expire to display their financial strength. Banks in the Middle East have issued $17.9 billion of AT1 securities, according to data compiled by Bloomberg.
There have been instances where AT1 bonds have blown up. India last year banned individual investors from buying the securities after seizing one of the nation’s lenders.
Major Gulf markets climb, track Asian shares | Reuters
Major Gulf markets climb, track Asian shares | Reuters
Major stock markets in the Gulf rose early on Tuesday, with Dubai leading the gains, in line with Asian shares as optimism increased about economic stimulus and global recovery.
Saudi Arabia’s benchmark index rose 0.5%, with National Commercial Bank, the kingdom’s largest lender, advancing 2% and oil giant Saudi Aramco adding 0.6%.
Oil prices, a key catalyst for the Gulf region’s financial markets, rose around 1%, after major crude producers showed they were reining in output roughly in line with their commitments. [O/R]
Voluntary cuts of 1 million barrels per day by Saudi Arabia are set to be implemented from the beginning of February through March.
Markets were buoyant ahead of negotiations on Tuesday as U.S. President Joe Biden appeared poised to push forward with his $1.9 trillion COVID-19 relief plan even if it fails to draw Republican support.
Dubai’s main share index climbed 1.1%, buoyed by a 2.1% gain in blue-chip developer Emaar Properties and a 1.3% increase in Emirates NBD Bank.
In Abu Dhabi, the index gained 0.8%, led by a 4.6% jump in Aldar Properties.
Aldar, Abu Dhabi’s largest property developer, said on Sunday, it had adopted a new operating model to drive its next phase of growth.
The model will focus on enhancing customer experience, digital transformation, operational efficiency and sustainability.
Among other gainers, First Abu Dhabi Bank, the country’s largest lender, traded 0.8% higher.
In Qatar, the index increased 0.6%, with petrochemical maker Industries Qatar rising 2%, while Doha Bank leapt 2.6%.
The Gulf state is planning to meet fixed income investors starting in mid-February, Reuters reported, citing two sources, ahead of a potential sale of international bonds.
Qatar will hold a so-called non-deal roadshow - investor meetings not tied to a specific deal - in Europe from Feb. 15-17, in the United States from Feb. 22-24 and in Asia on Feb. 25 and March 1, the sources said, adding that Standard Chartered is handling logistics.
Major stock markets in the Gulf rose early on Tuesday, with Dubai leading the gains, in line with Asian shares as optimism increased about economic stimulus and global recovery.
Saudi Arabia’s benchmark index rose 0.5%, with National Commercial Bank, the kingdom’s largest lender, advancing 2% and oil giant Saudi Aramco adding 0.6%.
Oil prices, a key catalyst for the Gulf region’s financial markets, rose around 1%, after major crude producers showed they were reining in output roughly in line with their commitments. [O/R]
Voluntary cuts of 1 million barrels per day by Saudi Arabia are set to be implemented from the beginning of February through March.
Markets were buoyant ahead of negotiations on Tuesday as U.S. President Joe Biden appeared poised to push forward with his $1.9 trillion COVID-19 relief plan even if it fails to draw Republican support.
Dubai’s main share index climbed 1.1%, buoyed by a 2.1% gain in blue-chip developer Emaar Properties and a 1.3% increase in Emirates NBD Bank.
In Abu Dhabi, the index gained 0.8%, led by a 4.6% jump in Aldar Properties.
Aldar, Abu Dhabi’s largest property developer, said on Sunday, it had adopted a new operating model to drive its next phase of growth.
The model will focus on enhancing customer experience, digital transformation, operational efficiency and sustainability.
Among other gainers, First Abu Dhabi Bank, the country’s largest lender, traded 0.8% higher.
In Qatar, the index increased 0.6%, with petrochemical maker Industries Qatar rising 2%, while Doha Bank leapt 2.6%.
The Gulf state is planning to meet fixed income investors starting in mid-February, Reuters reported, citing two sources, ahead of a potential sale of international bonds.
Qatar will hold a so-called non-deal roadshow - investor meetings not tied to a specific deal - in Europe from Feb. 15-17, in the United States from Feb. 22-24 and in Asia on Feb. 25 and March 1, the sources said, adding that Standard Chartered is handling logistics.
Oil prices extend rally as producers restrain output | Reuters
Oil prices extend rally as producers restrain output | Reuters
Oil prices rose around 1% on Tuesday after major crude producers showed they were reining in output roughly in line with their commitments, extending gains for a market thrown out of kilter by weak demand during the coronavirus pandemic.
Brent crude was up 48 cents, or 0.9%, at $56.83 a barrel by 0754 GMT, its third straight day of gains. U.S. oil gained 52 cents, or 1%, to $54.07. Both contracts rose more than 2% in the previous session.
OPEC crude production rose for a seventh month in January but the increase was smaller than expected, a Reuters survey found.
The Organization of the Petroleum Exporting Countries (OPEC) was pumping 25.75 million barrels per day (bpd) in January, the survey found, up 160,000 bpd from December.
Market analysts say the OPEC has been showing more discipline in keeping to its commitments as surging COVID-19 infections threaten any recovery in demand.
Oil prices rose around 1% on Tuesday after major crude producers showed they were reining in output roughly in line with their commitments, extending gains for a market thrown out of kilter by weak demand during the coronavirus pandemic.
Brent crude was up 48 cents, or 0.9%, at $56.83 a barrel by 0754 GMT, its third straight day of gains. U.S. oil gained 52 cents, or 1%, to $54.07. Both contracts rose more than 2% in the previous session.
OPEC crude production rose for a seventh month in January but the increase was smaller than expected, a Reuters survey found.
The Organization of the Petroleum Exporting Countries (OPEC) was pumping 25.75 million barrels per day (bpd) in January, the survey found, up 160,000 bpd from December.
Market analysts say the OPEC has been showing more discipline in keeping to its commitments as surging COVID-19 infections threaten any recovery in demand.
Banks in #Qatar could see more consolidation: Fitch | ZAWYA MENA Edition
Banks in Qatar could see more consolidation: Fitch | ZAWYA MENA Edition
Qatar's crowded banking sector could see more consolidation triggered by pressure on banks' profitability from the coronavirus pandemic, particularly those with weaker franchises and limited pricing power, according to Fitch Ratings.
Common government ownership is also a key driver for consolidation to create better capitalised banks with enhanced competitive advantages to support the Qatar Vision 2030 development plan, the global ratings agency said in a new report. Al Khalij Commercial Bank and Islamic bank Masraf Al Rayan's (MAR) recently agreed merger will potentially create Qatar's largest Islamic bank by total assets and diversify MAR's business model, which is predominantly wholesale focused (85 percent of total financing).
This will be the second merger in Qatar between an Islamic bank and a conventional bank after Islamic bank Dukhan and International Bank of Qatar (IBQ) merged in April 2019. Despite a weaker economic environment and expected downward pressure on valuations from the impact of the pandemic, AKCB was valued at 8.2 billion Qatari riyals (based on the closing share price on 5 January), representing 1.14x its tangible book value, compared with 1.027x tangible book value for IBQ (A/Stable/bb+ pre-merger).
“In our view, this reflects AKCB's adequate capitalisation (end-3Q20: common equity Tier 1 ratio of 14.8 percent against 8.5 percent regulatory minimum) and private banking niche, an important addition to MAR's business model and funding franchise,” Fitch said. MAR (the surviving entity) will have a larger funding capacity (147 billion riyals combined non-equity funding) to finance additional government projects. This could further increase MAR's exposure to government and government-related entities, which represented 47 percent of its financing book at end-3Q20, but would support the bank's asset quality. The combined entity is set to be well-capitalised with a leverage ratio of about 12 percent, although one-off integration costs could weaken capital. The merger should strengthen MAR's private banking funding franchise, which could reduce the bank's high reliance on wholesale funding, particularly short-term placements, and lower its loans-to-deposits ratio, which is one of the highest in the market.
Qatar's crowded banking sector could see more consolidation triggered by pressure on banks' profitability from the coronavirus pandemic, particularly those with weaker franchises and limited pricing power, according to Fitch Ratings.
Common government ownership is also a key driver for consolidation to create better capitalised banks with enhanced competitive advantages to support the Qatar Vision 2030 development plan, the global ratings agency said in a new report. Al Khalij Commercial Bank and Islamic bank Masraf Al Rayan's (MAR) recently agreed merger will potentially create Qatar's largest Islamic bank by total assets and diversify MAR's business model, which is predominantly wholesale focused (85 percent of total financing).
This will be the second merger in Qatar between an Islamic bank and a conventional bank after Islamic bank Dukhan and International Bank of Qatar (IBQ) merged in April 2019. Despite a weaker economic environment and expected downward pressure on valuations from the impact of the pandemic, AKCB was valued at 8.2 billion Qatari riyals (based on the closing share price on 5 January), representing 1.14x its tangible book value, compared with 1.027x tangible book value for IBQ (A/Stable/bb+ pre-merger).
“In our view, this reflects AKCB's adequate capitalisation (end-3Q20: common equity Tier 1 ratio of 14.8 percent against 8.5 percent regulatory minimum) and private banking niche, an important addition to MAR's business model and funding franchise,” Fitch said. MAR (the surviving entity) will have a larger funding capacity (147 billion riyals combined non-equity funding) to finance additional government projects. This could further increase MAR's exposure to government and government-related entities, which represented 47 percent of its financing book at end-3Q20, but would support the bank's asset quality. The combined entity is set to be well-capitalised with a leverage ratio of about 12 percent, although one-off integration costs could weaken capital. The merger should strengthen MAR's private banking funding franchise, which could reduce the bank's high reliance on wholesale funding, particularly short-term placements, and lower its loans-to-deposits ratio, which is one of the highest in the market.
#Dubai Aerospace Enterprise prices $300mln 1.625% notes due 2024 | ZAWYA MENA Edition
Dubai Aerospace Enterprise prices $300mln 1.625% notes due 2024 | ZAWYA MENA Edition
Dubai Aerospace Enterprise (DAE), one of the world’s biggest aircraft leasing companies, has priced $300 million aggregate principal amount of 1.625 percent notes due 2024, it said in a statement Monday.
The notes represent senior unsecured obligations and will be issued under DAE’s $2.5 billion Global Medium-Term Note Program, which is rated ‘BBB-‘ by Fitch Ratings and ‘Baa3’ by Moody’s Investors.
The notes, to be issued by DAE Funding and guaranteed by DAE, will be issued at a price of 99.427 percent. The notes mature on February 15, 2024, while the settlement date of the notes is February 1, 2021.
DAE, owned by the Investment Corporation of Dubai, said the net proceeds from the notes will be used for general corporate purposes including redemption of certain existing notes.
Dubai Aerospace Enterprise (DAE), one of the world’s biggest aircraft leasing companies, has priced $300 million aggregate principal amount of 1.625 percent notes due 2024, it said in a statement Monday.
The notes represent senior unsecured obligations and will be issued under DAE’s $2.5 billion Global Medium-Term Note Program, which is rated ‘BBB-‘ by Fitch Ratings and ‘Baa3’ by Moody’s Investors.
The notes, to be issued by DAE Funding and guaranteed by DAE, will be issued at a price of 99.427 percent. The notes mature on February 15, 2024, while the settlement date of the notes is February 1, 2021.
DAE, owned by the Investment Corporation of Dubai, said the net proceeds from the notes will be used for general corporate purposes including redemption of certain existing notes.
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