Qatar banks headed for more mergers | Banking – Gulf News
Qatar's overbanked system could see more consolidation triggered by pressure on banks' profitability from the coronavirus pandemic according to Fitch Ratings.
The rating agency said while banks with weaker franchises and limited pricing power are likely to prompt the next wave of consolidation, common government ownership is also a key driver to create better capitalised banks with enhanced competitive advantages to support the Qatar Vision 2030 development plan.
Al Khalij Commercial Bank (AKCB) 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. 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 QAR8.2 billion representing 1.14 times its tangible book value, compared with 1.027 times tangible book value for IBQ.
Sunday 7 February 2021
Swift regulatory changes supported #UAE’s real-estate markets in 2020, says Knight Frank | Property – Gulf News
Swift regulatory changes supported UAE’s real-estate markets in 2020, says Knight Frank | Property – Gulf News
Regulatory changes at both the federal and local levels bolstered UAE’s real-estate markets in 2020, said Knight Frank in a report on Sunday.
“Despite being presented with an unprecedented set of challenges in 2020, real estate markets across the UAE have proved to be remarkably resilient,” said Taimur Khan, Associate Partner at Knight Frank Middle East
“The easing of a number of geopolitical issues over the course of 2020 will also further strengthen market fundamentals,” said Khan.
Apartment prices fall
Residential sales prices in Abu Dhabi fell on average by 2 per cent in 2020, down from 7.5 per cent a year earlier. While average apartment prices fall by 3 per cent, average prices for villas have increased by 2 per cent, the first annual increase in prices since 2014.
Residential rents in Abu Dhabi continued to soften in 2020, with average rents decreasing by 4.3 per cent. Over this period, average apartment and villa rents fell by 4.6 per cent and 2.6 per cent respectively.
Regulatory changes at both the federal and local levels bolstered UAE’s real-estate markets in 2020, said Knight Frank in a report on Sunday.
“Despite being presented with an unprecedented set of challenges in 2020, real estate markets across the UAE have proved to be remarkably resilient,” said Taimur Khan, Associate Partner at Knight Frank Middle East
“The easing of a number of geopolitical issues over the course of 2020 will also further strengthen market fundamentals,” said Khan.
Apartment prices fall
Residential sales prices in Abu Dhabi fell on average by 2 per cent in 2020, down from 7.5 per cent a year earlier. While average apartment prices fall by 3 per cent, average prices for villas have increased by 2 per cent, the first annual increase in prices since 2014.
Residential rents in Abu Dhabi continued to soften in 2020, with average rents decreasing by 4.3 per cent. Over this period, average apartment and villa rents fell by 4.6 per cent and 2.6 per cent respectively.
Saudi Arabian Shares Lead Gulf Gains on Oil, Earnings: Inside EM - Bloomberg
Saudi Arabian Shares Lead Gulf Gains on Oil, Earnings: Inside EM - Bloomberg
Saudi Arabia’s main equities index led advances in the Gulf on Sunday, catching up with gains in oil and emerging-market stocks last week.
The Tadawul gauge also got a boost by earnings from Bank AlBilad and United International Transport that were higher than estimates. Saudi Arabian Mining Co. extended gains after the company said it plans to focus on deleveraging this year.
Abu Dhabi’s main index ended higher after the exchange said it’ll reduce trading fees on all transactions. Stock gauges in Kuwait, Qatar and Bahrain also advanced. The benchmark in Dubai extended losses for the third session, and Oman’s also fell.
Last week, oil futures rallied to a one-year high as Chinese consumption surpassed pre-virus levels, the vaccine rollout restored confidence and the OPEC cartel kept a tight leash on supply. Also, stocks in developing countries posted their best week in three months as U.S. President Joe Biden’s push for a $1.9 trillion pandemic-relief package revived the reflation trade.
As higher oil prices support government revenue and stimulus, stocks in the United Arab Emirates with “higher yields and lower valuations” look “poised for a breakout,” Emirates NBD analysts led by Chief Investment Officer Maurice Gravier wrote in a note.
Saudi Arabia’s main equities index led advances in the Gulf on Sunday, catching up with gains in oil and emerging-market stocks last week.
The Tadawul gauge also got a boost by earnings from Bank AlBilad and United International Transport that were higher than estimates. Saudi Arabian Mining Co. extended gains after the company said it plans to focus on deleveraging this year.
Abu Dhabi’s main index ended higher after the exchange said it’ll reduce trading fees on all transactions. Stock gauges in Kuwait, Qatar and Bahrain also advanced. The benchmark in Dubai extended losses for the third session, and Oman’s also fell.
Last week, oil futures rallied to a one-year high as Chinese consumption surpassed pre-virus levels, the vaccine rollout restored confidence and the OPEC cartel kept a tight leash on supply. Also, stocks in developing countries posted their best week in three months as U.S. President Joe Biden’s push for a $1.9 trillion pandemic-relief package revived the reflation trade.
As higher oil prices support government revenue and stimulus, stocks in the United Arab Emirates with “higher yields and lower valuations” look “poised for a breakout,” Emirates NBD analysts led by Chief Investment Officer Maurice Gravier wrote in a note.
Alvarez & Marsal plans to double Middle East business | The National
Alvarez & Marsal plans to double Middle East business | The National
Professional services firm Alvarez & Marsal is planning to double the size of its Middle East business within the next five years, the company’s Middle East head Saeeda Jaffar said.
The firm, which is best known for its restructuring work, has grown from just four people when Ms Jaffar joined the company in 2016 to about “50-something” currently.
“We’ll probably close the year between 60 and 70 people, depending on how quickly we can bring people in,” Ms Jaffar told The National.
“And we have plans to continue the growth. And I think in the next three to five years, we should, at the very least, double again,” she added.
Professional services firm Alvarez & Marsal is planning to double the size of its Middle East business within the next five years, the company’s Middle East head Saeeda Jaffar said.
The firm, which is best known for its restructuring work, has grown from just four people when Ms Jaffar joined the company in 2016 to about “50-something” currently.
“We’ll probably close the year between 60 and 70 people, depending on how quickly we can bring people in,” Ms Jaffar told The National.
“And we have plans to continue the growth. And I think in the next three to five years, we should, at the very least, double again,” she added.
World’s Biggest Wealth Fund Emerges as Investor in #Qatar Insurer - Bloomberg
World’s Biggest Wealth Fund Emerges as Investor in Qatar Insurer - Bloomberg
Norway’s $1.3 trillion sovereign wealth fund has swooped in to buy shares of QLM Life & Medical Insurance Co., the first Qatari firm to list on the local stock market since 2019.
Norway’s central bank, which oversees the world’s biggest wealth fund, purchased a stake just shy of 5% in January, according to data from the Qatar Stock Exchange. The holding is worth about $17 million at the current market capitalization. In total, foreign shareholders have snapped up 11.5% in the firm.
The stock has climbed 22% after less than a month of trading following the initial public offering, versus a 4% drop for the benchmark QE Index in the same period.
Norway’s $1.3 trillion sovereign wealth fund has swooped in to buy shares of QLM Life & Medical Insurance Co., the first Qatari firm to list on the local stock market since 2019.
Norway’s central bank, which oversees the world’s biggest wealth fund, purchased a stake just shy of 5% in January, according to data from the Qatar Stock Exchange. The holding is worth about $17 million at the current market capitalization. In total, foreign shareholders have snapped up 11.5% in the firm.
The stock has climbed 22% after less than a month of trading following the initial public offering, versus a 4% drop for the benchmark QE Index in the same period.
Crude Oil Price Recovery Is Too Fast for Its Own Good - Bloomberg
Crude Oil Price Recovery Is Too Fast for Its Own Good - Bloomberg
The OPEC+ alliance of oil producers will face a big test of its cohesion in a few weeks’ time, when ministers meet to discuss the next step in their historic production deal aimed at rebalancing the world’s oil supply with recovering demand. Things have almost moved too quickly in their favor.
Recent increases in crude prices and the rapid drawing down of visible stockpiles will undoubtedly lead to calls for a more rapid raising of production targets than was envisaged in December. That may well reignite tensions between the co-leaders of the group, Saudi Arabia and Russia, with the potential for more brinkmanship that could undermine the price recovery.
The report card was very good when the producer group’s monitoring committee met last week to evaluate progress so far:
The OPEC+ alliance of oil producers will face a big test of its cohesion in a few weeks’ time, when ministers meet to discuss the next step in their historic production deal aimed at rebalancing the world’s oil supply with recovering demand. Things have almost moved too quickly in their favor.
Recent increases in crude prices and the rapid drawing down of visible stockpiles will undoubtedly lead to calls for a more rapid raising of production targets than was envisaged in December. That may well reignite tensions between the co-leaders of the group, Saudi Arabia and Russia, with the potential for more brinkmanship that could undermine the price recovery.
The report card was very good when the producer group’s monitoring committee met last week to evaluate progress so far:
- Aggregate compliance with the deal since it came into effect in May is at an unprecedented 99%
- Brent crude prices are testing $60 a barrel, a level not seen in more than a year
- Commercial oil stockpiles in the developed nations of the OECD are coming down and the group now expects them to fall below their five-year (2015-2019) average by August — a key target for Saudi Arabia
Most Gulf stocks gain on global rally, higher oil prices | Reuters
Most Gulf stocks gain on global rally, higher oil prices | Reuters
Most Gulf stock markets rose in early trade on Sunday, tracking a rally in global equity markets and a jump in oil prices on Friday, while the Dubai index bucked the trend to trade lower.
On Friday, global equities rallied on investor expectations of further stimulus from Washington and economic revival hopes that also lifted crude oil prices to nearly $60 a barrel.
Brent crude ended Friday’s session up 50 cents, or 0.9%, at $59.34 after hitting its highest since Feb. 20 at $59.79.
Saudi Arabia’s benchmark index advanced 1%, with Al Rajhi Bank and oil giant Saudi Aramco both gaining 0.7%.
Dubai’s main share index eased 0.4%, on track to extend losses for a third consecutive session, with blue-chip developer Emaar Properties falling 1%, while Dubai Investments slid 3.2%.
On Wednesday, the diversified Gulf-based investment group reported a net profit of 347.9 million dirhams ($94.7 million) for 2020, down from 657.4 million dirhams a year earlier.
In Abu Dhabi, the index edged up 0.2%, supported by a 0.6% gain in telecoms giant Emirates telecommunications.
The Qatari index gained 0.7%, buoyed by a 1.9% rise in petrochemical maker Industries Qatar and a 0.8% increase in Qatar National Bank, the Gulf’s largest lender.
Most Gulf stock markets rose in early trade on Sunday, tracking a rally in global equity markets and a jump in oil prices on Friday, while the Dubai index bucked the trend to trade lower.
On Friday, global equities rallied on investor expectations of further stimulus from Washington and economic revival hopes that also lifted crude oil prices to nearly $60 a barrel.
Brent crude ended Friday’s session up 50 cents, or 0.9%, at $59.34 after hitting its highest since Feb. 20 at $59.79.
Saudi Arabia’s benchmark index advanced 1%, with Al Rajhi Bank and oil giant Saudi Aramco both gaining 0.7%.
Dubai’s main share index eased 0.4%, on track to extend losses for a third consecutive session, with blue-chip developer Emaar Properties falling 1%, while Dubai Investments slid 3.2%.
On Wednesday, the diversified Gulf-based investment group reported a net profit of 347.9 million dirhams ($94.7 million) for 2020, down from 657.4 million dirhams a year earlier.
In Abu Dhabi, the index edged up 0.2%, supported by a 0.6% gain in telecoms giant Emirates telecommunications.
The Qatari index gained 0.7%, buoyed by a 1.9% rise in petrochemical maker Industries Qatar and a 0.8% increase in Qatar National Bank, the Gulf’s largest lender.
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