Saudi Arabia Seeks to End Arbitrary Justice to Win Investors - Bloomberg
Saudi officials are working to overhaul the country’s unpredictable judicial system by the end of this year, partly to encourage investors long deterred by the perceived arbitrariness of the kingdom’s courts.
Authorities are working to codify a system that has historically granted judges wide discretion to issue rulings based on individual interpretations of Islamic law. This arrangement has created risk for both Saudi and international investors because it can lead to conflicting rulings from different judges even in similar cases, analysts and officials say.
While legislation will still be rooted in Islamic law, the codification “will contribute to the predictability of rulings” and “limit individualism in issuing verdicts,” Crown Prince Mohammed bin Salman, known as MBS, said in a statement published late Monday by the official Saudi Press Agency. Some of the changes will aid women in particular, he added.
“This could be quite significant,” said Kristin Diwan, a senior resident scholar at the Arab Gulf States Institute in Washington. “This lack of predictability is a real problem as MBS looks to attract more foreign investment and to lure more foreign businesses and tourists to the kingdom.”
Tuesday, 9 February 2021
Oil prices surge for seventh straight day of gains | Reuters
Oil prices surge for seventh straight day of gains | Reuters
Oil prices rose on Tuesday for their seventh straight session of gains, touching 13-month highs as investors kept betting that fuel demand will rise while OPEC and allied producers keep a lid on supply.
Brent settled up 53 cents, or 0.9%, to $61.06 a barrel. U.S. West Texas Intermediate crude (WTI) for March was at $58.36 a barrel, up 39 cents or 0.7%.
The session peaks for both benchmarks were the highest since January 2020.
“With Brent over $60, it’s been great psychologically ... and everyone is feeling bullish about stronger demand and global inventories in further decline,” said John Kilduff, partner at Again Capital LLC in New York.
Oil prices rose on Tuesday for their seventh straight session of gains, touching 13-month highs as investors kept betting that fuel demand will rise while OPEC and allied producers keep a lid on supply.
Brent settled up 53 cents, or 0.9%, to $61.06 a barrel. U.S. West Texas Intermediate crude (WTI) for March was at $58.36 a barrel, up 39 cents or 0.7%.
The session peaks for both benchmarks were the highest since January 2020.
“With Brent over $60, it’s been great psychologically ... and everyone is feeling bullish about stronger demand and global inventories in further decline,” said John Kilduff, partner at Again Capital LLC in New York.
#SaudiArabia’s central bank faces biggest overhaul in decades | Financial Times
Saudi Arabia’s central bank faces biggest overhaul in decades | Financial Times
Saudi Arabia’s central bank is set for its most significant changes in decades as a new law comes into force this month that analysts say will formalise Crown Prince Mohammed bin Salman’s efforts to divert more of the kingdom’s oil wealth to back his grandiose investment plans.
Saudi Arabia’s central bank is set for its most significant changes in decades as a new law comes into force this month that analysts say will formalise Crown Prince Mohammed bin Salman’s efforts to divert more of the kingdom’s oil wealth to back his grandiose investment plans.
The reforms — in which supporting economic growth will become part of the Saudi Arabian Monetary Authority’s mandate and the bank reports directly to the king — could diminish its role of investing the nation’s hard currency surpluses in favour of the sovereign wealth fund chaired by the crown prince, analysts say.
It also underscores the kingdom’s radical shift from being a conservative investor to a more aggressive and higher-risk approach favoured by Prince Mohammed, King Salman’s favourite son and the nation’s day-to-day ruler.
Mohammed al-Jadaan, the finance minister, told the Financial Times that the changes would not affect Sama’s core responsibilities, including maintaining sufficient reserves to protect the riyal-dollar peg and financial stability, as well as regulating and supporting the financial sector.
"The Company still exists": Drake and Scull International CEO | ZAWYA MENA Edition
"The Company still exists": Drake and Scull International CEO | ZAWYA MENA Edition
The CEO of Drake and Scull International (DSI), has offered reassurance that the company is keen to continue operations, adding that it has won new business in Tunisia and India is focusing on completing work in Iraq.
A press release, issued alongside preliminary financial results, said Munir Mansour confirmed that ‘the company still exists’ and that it had reached the final stages of a restructuring process.
Results for the year ending December 31 2020 showed that DSI turned a net profit of AED 109.31 million ($29.76 Million) compared to a loss of AED 87 million ($23.69 million) in 2019.
“Mr Munir Mansour, CEO of the Company, confirmed that the Company still exists and is keen on the continuity of the operations of the Company and its subsidiaries, through its ongoing projects, and the main essential and vital contracts of the Company's related to water and energy in several countries, additionally one of the Company's subsidiaries has won two new projects in Tunisia and India to develop sewage plants,” said the statement.
The CEO of Drake and Scull International (DSI), has offered reassurance that the company is keen to continue operations, adding that it has won new business in Tunisia and India is focusing on completing work in Iraq.
A press release, issued alongside preliminary financial results, said Munir Mansour confirmed that ‘the company still exists’ and that it had reached the final stages of a restructuring process.
Results for the year ending December 31 2020 showed that DSI turned a net profit of AED 109.31 million ($29.76 Million) compared to a loss of AED 87 million ($23.69 million) in 2019.
“Mr Munir Mansour, CEO of the Company, confirmed that the Company still exists and is keen on the continuity of the operations of the Company and its subsidiaries, through its ongoing projects, and the main essential and vital contracts of the Company's related to water and energy in several countries, additionally one of the Company's subsidiaries has won two new projects in Tunisia and India to develop sewage plants,” said the statement.
MIDEAST STOCKS-Most Gulf markets up in line with global stocks | Nasdaq
MIDEAST STOCKS-Most Gulf markets up in line with global stocks | Nasdaq
Most stock markets in the Gulf ended higher on Tuesday, mirroring global equities, with Saudi Arabia extending gains for a fourth consecutive session.
The MSCI All-Country World Index .MIWD00000PUS held broadly steady throughout the European morning, up 0.1% at a fresh record high.
Oil prices, a key catalyst for the Gulf region's financial markets, also hit 13-month highs, helped by rising optimism about a pick up in fuel demand. O/R
Saudi Arabia's benchmark index .TASI climbed 1%, with Al Rajhi Bank 1120.SE rising 2.9%.
National Commercial Bank (NCB) 1180.SE, the country's largest lender, and Samba Financial Group 1090.SE advanced 1.5% and 2.6%, respectively.
Saudi Arabia's Capital Market Authority approved NCB's request to increase its capital to merge with Samba via a securities exchange offer.
The CMA gave the nod for NCB to increase its capital to 44.78 billion riyals ($11.94 billion) from 30 billion riyals, by issuing 1.48 billion ordinary shares.
Dubai's main share index .TASI edged up 0.2%, bolstered by a 2.2% rise in its largest lender Emirates NBD ENBD.DU and a 1.1% increase in blue-chip developer Emaar Properties EMAR.DU.
In Dubai, where a second wave of coronavirus infections threatens to upend a tourism boom, stocks ended four sessions of losses.
The Abu Dhabi the index .ADI closed 0.1% higher, supported by a 0.8% gain in First Abu Dhabi Bank (FAB) FAB.AD.
FAB, the largest lender in the United Arab Emirates, raised 750 million euros ($907.35 million) through the sale of five-year bonds on Tuesday, its debut euro-denominated issue, a document showed.
In Qatar, the index .QSI, however, closed 0.5% lower, weighed down by a 1.5% fall in Qatar National Bank QNBK.QA and a 0.8% decline in sharia-compliant lender Masraf Al Rayan MARK.QA.
Elsewhere, petrochemical firm Industries Qatar IQCD.QA eased 0.4%, following a drop in full year net profit.
Most stock markets in the Gulf ended higher on Tuesday, mirroring global equities, with Saudi Arabia extending gains for a fourth consecutive session.
The MSCI All-Country World Index .MIWD00000PUS held broadly steady throughout the European morning, up 0.1% at a fresh record high.
Oil prices, a key catalyst for the Gulf region's financial markets, also hit 13-month highs, helped by rising optimism about a pick up in fuel demand. O/R
Saudi Arabia's benchmark index .TASI climbed 1%, with Al Rajhi Bank 1120.SE rising 2.9%.
National Commercial Bank (NCB) 1180.SE, the country's largest lender, and Samba Financial Group 1090.SE advanced 1.5% and 2.6%, respectively.
Saudi Arabia's Capital Market Authority approved NCB's request to increase its capital to merge with Samba via a securities exchange offer.
The CMA gave the nod for NCB to increase its capital to 44.78 billion riyals ($11.94 billion) from 30 billion riyals, by issuing 1.48 billion ordinary shares.
Dubai's main share index .TASI edged up 0.2%, bolstered by a 2.2% rise in its largest lender Emirates NBD ENBD.DU and a 1.1% increase in blue-chip developer Emaar Properties EMAR.DU.
In Dubai, where a second wave of coronavirus infections threatens to upend a tourism boom, stocks ended four sessions of losses.
The Abu Dhabi the index .ADI closed 0.1% higher, supported by a 0.8% gain in First Abu Dhabi Bank (FAB) FAB.AD.
FAB, the largest lender in the United Arab Emirates, raised 750 million euros ($907.35 million) through the sale of five-year bonds on Tuesday, its debut euro-denominated issue, a document showed.
In Qatar, the index .QSI, however, closed 0.5% lower, weighed down by a 1.5% fall in Qatar National Bank QNBK.QA and a 0.8% decline in sharia-compliant lender Masraf Al Rayan MARK.QA.
Elsewhere, petrochemical firm Industries Qatar IQCD.QA eased 0.4%, following a drop in full year net profit.
Top #UAE bank FAB raises $907.73mln with first euro-denominated bond | ZAWYA MENA Edition
Top UAE bank FAB raises $907.73mln with first euro-denominated bond | ZAWYA MENA Edition
First Abu Dhabi Bank, the largest lender in the United Arab Emirates, raised 750 million euros ($907.73 million) through the sale of five-year bonds on Tuesday, its debut euro-denominated issue, a document showed.
It set the spread at 55 basis points (bps) over mid-swaps, tightening initial price guidance by 20 bps after receiving more than 1.6 billion euros in orders, the document from one of the banks running the deal showed.
FAB has already tapped debt markets several times this year, including with a sterling-denominated deal last week and the region's first green bonds denominated in Swiss francs last month.
The Gulf has seen a flood of debt sales so far this year, as borrowers in the oil-dependent region take advantage of cheap rates and abundant global liquidity to plug finances hit by the pandemic-induced downturn.
First Abu Dhabi Bank, the largest lender in the United Arab Emirates, raised 750 million euros ($907.73 million) through the sale of five-year bonds on Tuesday, its debut euro-denominated issue, a document showed.
It set the spread at 55 basis points (bps) over mid-swaps, tightening initial price guidance by 20 bps after receiving more than 1.6 billion euros in orders, the document from one of the banks running the deal showed.
FAB has already tapped debt markets several times this year, including with a sterling-denominated deal last week and the region's first green bonds denominated in Swiss francs last month.
The Gulf has seen a flood of debt sales so far this year, as borrowers in the oil-dependent region take advantage of cheap rates and abundant global liquidity to plug finances hit by the pandemic-induced downturn.
#Saudi Stocks May Turn Into Good Reflation Bet, Julius Baer Says - Bloomberg
Saudi Stocks May Turn Into Good Reflation Bet, Julius Baer Says - Bloomberg
Investors looking for emerging-market opportunities to capitalize on the expected global economic rebound should take a look at Saudi Arabia’s equities, according to a strategist at Julius Baer Group Ltd.
Saudi shares “could benefit from the reflation trade, especially with oil moving higher,” said Mathieu Racheter, an equity strategist for emerging markets at the Swiss firm, which has $486 billion in assets under management.
The Tadawul All Share Index has lagged the rebound in the MSCI Emerging Markets Index since last year’s pandemic-spurred rout. Still, it rose for a fourth straight day on Tuesday, climbing to a three-week high as oil headed above $60 a barrel on signs the global market is tightening and demand is improving.
Investors looking for emerging-market opportunities to capitalize on the expected global economic rebound should take a look at Saudi Arabia’s equities, according to a strategist at Julius Baer Group Ltd.
Saudi shares “could benefit from the reflation trade, especially with oil moving higher,” said Mathieu Racheter, an equity strategist for emerging markets at the Swiss firm, which has $486 billion in assets under management.
The Tadawul All Share Index has lagged the rebound in the MSCI Emerging Markets Index since last year’s pandemic-spurred rout. Still, it rose for a fourth straight day on Tuesday, climbing to a three-week high as oil headed above $60 a barrel on signs the global market is tightening and demand is improving.
State oil firms risk wasting $400 billion as energy shift speeds up | Reuters
State oil firms risk wasting $400 billion as energy shift speeds up | Reuters
State-owned oil companies could squander about $400 billion on investments in the next decade on new oil projects that will struggle to turn a profit as the world shifts away from fossil fuels, a non-governmental organisation said on Tuesday.
The Natural Resource Governance Institute (NRGI) estimated national oil companies, or NOCs, would invest $1.9 trillion in the next 10 years with about a fifth of those investments only breaking even if oil prices stay above $40 a barrel.
Oil prices have climbed to around $60 this week, after plunging below $20 last year when demand plummeted due to the coronavirus crisis. But the long-term outlook is weakening, as more analysts and energy firms see peak oil demand being reached sooner than the previous forecasts of the early 2030s.
“A huge amount of state investments in oil projects will likely only yield returns if global oil consumption is so high that the world exceeds its carbon emission targets,” Patrick Heller, who co-authored NRGI’s Risky Bet report, said in reference to goals set out in the 2015 Paris climate agreement.
State-owned oil companies could squander about $400 billion on investments in the next decade on new oil projects that will struggle to turn a profit as the world shifts away from fossil fuels, a non-governmental organisation said on Tuesday.
The Natural Resource Governance Institute (NRGI) estimated national oil companies, or NOCs, would invest $1.9 trillion in the next 10 years with about a fifth of those investments only breaking even if oil prices stay above $40 a barrel.
Oil prices have climbed to around $60 this week, after plunging below $20 last year when demand plummeted due to the coronavirus crisis. But the long-term outlook is weakening, as more analysts and energy firms see peak oil demand being reached sooner than the previous forecasts of the early 2030s.
“A huge amount of state investments in oil projects will likely only yield returns if global oil consumption is so high that the world exceeds its carbon emission targets,” Patrick Heller, who co-authored NRGI’s Risky Bet report, said in reference to goals set out in the 2015 Paris climate agreement.
#UAE Central Bank Sees Strong Rebound as Use of Covid Fund Drops - Bloomberg
UAE Central Bank Sees Strong Rebound as Use of Covid Fund Drops - Bloomberg
The United Arab Emirates’ central bank stood by its forecast for a return to growth in 2021 after lower crude prices and pandemic restrictions hit the Arab world’s second-largest economy.
“Economic activity is still subdued but recovering,” Governor Abdulhamid Saeed Alahmadi said. The government will continue to diversify the economy, fund infrastructure improvements and encourage private investment, he said. In December, the bank forecast growth of 2.5% in 2021.
Utilization of a stimulus program of capital and liquidity measures to help the economy through the global health crisis has fallen to about 50% of its peak, he said, indicating “that banks are now gradually coming back to manage their credit books and navigate the way forward.”
The United Arab Emirates’ central bank stood by its forecast for a return to growth in 2021 after lower crude prices and pandemic restrictions hit the Arab world’s second-largest economy.
“Economic activity is still subdued but recovering,” Governor Abdulhamid Saeed Alahmadi said. The government will continue to diversify the economy, fund infrastructure improvements and encourage private investment, he said. In December, the bank forecast growth of 2.5% in 2021.
Utilization of a stimulus program of capital and liquidity measures to help the economy through the global health crisis has fallen to about 50% of its peak, he said, indicating “that banks are now gradually coming back to manage their credit books and navigate the way forward.”
Vaccination rollout and government spending underpin #UAE recovery, Central Bank says | The National
Vaccination rollout and government spending underpin UAE recovery, Central Bank says | The National
The accelerated roll out of vaccines in the UAE coupled with government efforts to maintain spending and diversify the economy will support a strong rebound this year, according to the governor of the central bank.
"The rapid pace of vaccination is a great comfort, and the UAE is well on target to inoculate more than 50 per cent of its population by March 2021," Abdulhamid Saeed Al Ahmadi, said on Tuesday.
"We predict a strong return to growth in GDP for the UAE in 2021 as the government continues to diversify the economy, provide strong infrastructure spending and encourage private investment both as a measure of growth and private employment."
Although the final figures have yet to be confirmed, global economic output, as well as the UAE’s GDP, are likely to be "subdued" for 2020 with a contraction in the range of 3.5 per cent and 6 per cent approximately, Mr Al Ahmadi said said.
"The good news is that most predictions for 2021 are optimistic and signal a return to growth throughout the year," he added.
The accelerated roll out of vaccines in the UAE coupled with government efforts to maintain spending and diversify the economy will support a strong rebound this year, according to the governor of the central bank.
"The rapid pace of vaccination is a great comfort, and the UAE is well on target to inoculate more than 50 per cent of its population by March 2021," Abdulhamid Saeed Al Ahmadi, said on Tuesday.
"We predict a strong return to growth in GDP for the UAE in 2021 as the government continues to diversify the economy, provide strong infrastructure spending and encourage private investment both as a measure of growth and private employment."
Although the final figures have yet to be confirmed, global economic output, as well as the UAE’s GDP, are likely to be "subdued" for 2020 with a contraction in the range of 3.5 per cent and 6 per cent approximately, Mr Al Ahmadi said said.
"The good news is that most predictions for 2021 are optimistic and signal a return to growth throughout the year," he added.
Doha Bank FY Net Income Beats Estimates - Bloomberg video
Doha Bank FY Net Income Beats Estimates - Bloomberg video
#SaudiArabia Plans Judicial Overhaul to Smooth Way for Investors - Bloomberg
Saudi Arabia Plans Judicial Overhaul to Smooth Way for Investors - Bloomberg
Saudi officials are working to overhaul the country’s unpredictable judicial system by the end of this year, partly to encourage investors long deterred by the perceived arbitrariness of the kingdom’s courts.
Authorities are working to codify a system that has historically granted judges wide discretion to issue rulings based on individual interpretations of Islamic law. This discretionary arrangement has created risk for both Saudi and international investors because it can lead to conflicting rulings from different judges even in similar cases.
While legislation will still be rooted in Islamic law, the codification “will contribute to the predictability of rulings” and “limit individualism in issuing verdicts,” Crown Prince Mohammed bin Salman, also known as MBS, said in a statement published late Monday by the official Saudi Press Agency. Some of the changes will aid women in particular, he added.
“This could be quite significant,” said Kristin Diwan, a senior resident scholar at the Arab Gulf States Institute in Washington. “This lack of predictability is a real problem as MBS looks to attract more foreign investment and to lure more foreign businesses and tourists to the kingdom.”
Saudi officials are working to overhaul the country’s unpredictable judicial system by the end of this year, partly to encourage investors long deterred by the perceived arbitrariness of the kingdom’s courts.
Authorities are working to codify a system that has historically granted judges wide discretion to issue rulings based on individual interpretations of Islamic law. This discretionary arrangement has created risk for both Saudi and international investors because it can lead to conflicting rulings from different judges even in similar cases.
While legislation will still be rooted in Islamic law, the codification “will contribute to the predictability of rulings” and “limit individualism in issuing verdicts,” Crown Prince Mohammed bin Salman, also known as MBS, said in a statement published late Monday by the official Saudi Press Agency. Some of the changes will aid women in particular, he added.
“This could be quite significant,” said Kristin Diwan, a senior resident scholar at the Arab Gulf States Institute in Washington. “This lack of predictability is a real problem as MBS looks to attract more foreign investment and to lure more foreign businesses and tourists to the kingdom.”
Deserted debts stir disquiet in the mysterious world of #Dubai Inc | Reuters
Deserted debts stir disquiet in the mysterious world of Dubai Inc | Reuters
Dubai’s debts have always been something of a mystery for investors but since the coronavirus pandemic hit its economy, things have got hazier, some say.
Over the past 12 months, two firms with links to Dubai’s government and its ruler, respectively, have said they would not meet hundreds of millions of dollars’ worth of debt repayments, a rare step in the Middle Eastern business hub, where debts are typically renegotiated and state support is often seen as implicit.
One of the firms, Dubai Holding, the investment vehicle of Sheikh Mohammed bin Rashid al-Maktoum, Dubai’s ruler, told creditors that it would not service a $1.2 billion loan owed by its subsidiary Dubai Holding Investments Group and was prepared to pursue liquidation for the unit, according to a source and a document sent to investors in December and reviewed by Reuters.
The second firm, state-owned property developer Limitless, told creditors last March it wasn’t able to meet payments for a loan worth about $1.2 billion, according to a company document seen by Reuters. It has since been seeking to restructure the debt.
Dubai Holding, which has $35 billion in assets and holdings in property and the hospitality sector, declined to comment on the debts of its subsidiary and repayment plans for other units. A Limitless spokeswoman told Reuters its restructuring discussions with lenders were continuing but did not comment further. Creditors to the company included Dubai banks such as Emirates NBD, Mashreqbank and Dubai Islamic Bank. They declined to comment.
Dubai’s debts have always been something of a mystery for investors but since the coronavirus pandemic hit its economy, things have got hazier, some say.
Over the past 12 months, two firms with links to Dubai’s government and its ruler, respectively, have said they would not meet hundreds of millions of dollars’ worth of debt repayments, a rare step in the Middle Eastern business hub, where debts are typically renegotiated and state support is often seen as implicit.
One of the firms, Dubai Holding, the investment vehicle of Sheikh Mohammed bin Rashid al-Maktoum, Dubai’s ruler, told creditors that it would not service a $1.2 billion loan owed by its subsidiary Dubai Holding Investments Group and was prepared to pursue liquidation for the unit, according to a source and a document sent to investors in December and reviewed by Reuters.
The second firm, state-owned property developer Limitless, told creditors last March it wasn’t able to meet payments for a loan worth about $1.2 billion, according to a company document seen by Reuters. It has since been seeking to restructure the debt.
Dubai Holding, which has $35 billion in assets and holdings in property and the hospitality sector, declined to comment on the debts of its subsidiary and repayment plans for other units. A Limitless spokeswoman told Reuters its restructuring discussions with lenders were continuing but did not comment further. Creditors to the company included Dubai banks such as Emirates NBD, Mashreqbank and Dubai Islamic Bank. They declined to comment.
#Dubai's Drake & Scull names date for creditor meeting as profits return - Arabianbusiness
Dubai's Drake & Scull names date for creditor meeting as profits return - Arabianbusiness
Drake & Scull International (DSI) said on Tuesday its restructuring process has reached its final stages as it announced a return to full-year profitability in 2020.
The contracting major said in a statement that it recorded a net profit of AED109 million compared to a net loss of AED87 million in 2019.
It added that the expert appointed by the Financial Reorganisation Committee has published invitations to creditors to attend meetings on February 25.
The company also announced a decrease in accumulated losses from AED5 billion dirhams to AED4.8 billion as of the end of December 2020.
Last year, an application by DSI to have its financial reorganisation process conducted under the supervision of the Financial Reorganisation Committee was approved and in May Aaronite Partners was approved as experts to take this forward.
Drake & Scull International (DSI) said on Tuesday its restructuring process has reached its final stages as it announced a return to full-year profitability in 2020.
The contracting major said in a statement that it recorded a net profit of AED109 million compared to a net loss of AED87 million in 2019.
It added that the expert appointed by the Financial Reorganisation Committee has published invitations to creditors to attend meetings on February 25.
The company also announced a decrease in accumulated losses from AED5 billion dirhams to AED4.8 billion as of the end of December 2020.
Last year, an application by DSI to have its financial reorganisation process conducted under the supervision of the Financial Reorganisation Committee was approved and in May Aaronite Partners was approved as experts to take this forward.
Biggest LNG Supplier Hires Builders for $29 Billion Expansion - Bloomberg
Biggest LNG Supplier Hires Builders for $29 Billion Expansion - Bloomberg
Qatar hired engineers for a planned $29 billion expansion of its capacity to produce liquefied natural gas, seeking to cement its position as the world’s biggest supplier of the fuel.
While Australia, the U.S. and other producers have been ramping up output, Qatar’s LNG capacity has stayed mostly flat for a decade. Gas, a cleaner-burning alternative to crude oil, is seen as an important fuel for bridging the global transition from petroleum to solar energy and other renewables.
State-run Qatar Petroleum selected Chiyoda Corp. of Japan and London-based TechnipFMC Plc to do construction work worth around $13 billion, Qatar’s energy minister and QP Chief Executive Officer Saad Al-Kaabi said at a signing ceremony in Doha on Monday.
“This was the main contract we were waiting to sign to finalize the costs of the project,” Kaabi said. QP will award an agreement to build storage tanks within the next two weeks and will sign almost all other project-related deals by the end of the year, he said.
Qatar hired engineers for a planned $29 billion expansion of its capacity to produce liquefied natural gas, seeking to cement its position as the world’s biggest supplier of the fuel.
While Australia, the U.S. and other producers have been ramping up output, Qatar’s LNG capacity has stayed mostly flat for a decade. Gas, a cleaner-burning alternative to crude oil, is seen as an important fuel for bridging the global transition from petroleum to solar energy and other renewables.
State-run Qatar Petroleum selected Chiyoda Corp. of Japan and London-based TechnipFMC Plc to do construction work worth around $13 billion, Qatar’s energy minister and QP Chief Executive Officer Saad Al-Kaabi said at a signing ceremony in Doha on Monday.
“This was the main contract we were waiting to sign to finalize the costs of the project,” Kaabi said. QP will award an agreement to build storage tanks within the next two weeks and will sign almost all other project-related deals by the end of the year, he said.
#Saudi Wealth Fund Joins #Qatar, #UAE Peers in Private Lending Rush - Bloomberg
Saudi Wealth Fund Joins Qatar, UAE Peers in Private Lending Rush - Bloomberg
Saudi Arabia’s $400 billion Public Investment Fund became the latest sovereign investor to enter the growing market for direct lending.
The PIF, as it’s known, will anchor a $300 million Shariah-compliant fund started by Dubai-based private equity firm NBK Capital Partners, according to a statement on Tuesday. Yaser Moustafa, senior managing director at NBK Capital, said in an interview that the vehicle will also involve a “very prominent” U.S. family office and large institutional investors.
Private credit has emerged as a popular asset class in recent years, ballooning into an $850 billion market as it attracted interest from the world’s largest sovereign investors. NBK Capital, the private equity arm of Kuwait’s largest bank, said it completed the first closing of the credit fund, which will work with mid-sized Middle Eastern firms that are struggling to secure attractive financing.
“Because of some of the constraints on some of the regional banks and some of traditional funding sources, there’s a gap there for private credit to fit in,” Moustafa said. “That’s the gap we can fit.”
Saudi Arabia’s $400 billion Public Investment Fund became the latest sovereign investor to enter the growing market for direct lending.
The PIF, as it’s known, will anchor a $300 million Shariah-compliant fund started by Dubai-based private equity firm NBK Capital Partners, according to a statement on Tuesday. Yaser Moustafa, senior managing director at NBK Capital, said in an interview that the vehicle will also involve a “very prominent” U.S. family office and large institutional investors.
Private credit has emerged as a popular asset class in recent years, ballooning into an $850 billion market as it attracted interest from the world’s largest sovereign investors. NBK Capital, the private equity arm of Kuwait’s largest bank, said it completed the first closing of the credit fund, which will work with mid-sized Middle Eastern firms that are struggling to secure attractive financing.
“Because of some of the constraints on some of the regional banks and some of traditional funding sources, there’s a gap there for private credit to fit in,” Moustafa said. “That’s the gap we can fit.”
#Dubai Business Activity Barely Grows With Restrictions Reimposed - Bloomberg
Dubai Business Activity Barely Grows With Restrictions Reimposed - Bloomberg
Non-oil companies in Dubai increased output for the second month in a row in January but the uptick was marginal in the emirate where authorities have reimposed some restrictive measures imposed to curb the spread of Covid-19.
The non-oil private sector economy in the Middle East’s business hub improved fractionally last month, according to IHS Markit. While its Purchasing Managers’ Index fell to 50.6 in January from 51 last month, driven by a decrease in output and new orders, the gauge still remained above the 50 mark that separates growth from contraction.
Employment figures in Dubai showed an uptick for the first time in about a year, and at the quickest pace in 14 months as companies expressed optimism toward future business. The overall employment indicator was still below the 50 mark.
“Despite sales growth near-stalling, non-oil companies in Dubai increased output for the second month in a row in January,” wrote David Owen, economist at IHS Markit. “With confidence for 2021 also improving due to the rapid vaccine roll-out in the UAE, employment rose for the first time in nearly a year, after the pandemic drove record declines during the second quarter of 2020.”
Non-oil companies in Dubai increased output for the second month in a row in January but the uptick was marginal in the emirate where authorities have reimposed some restrictive measures imposed to curb the spread of Covid-19.
The non-oil private sector economy in the Middle East’s business hub improved fractionally last month, according to IHS Markit. While its Purchasing Managers’ Index fell to 50.6 in January from 51 last month, driven by a decrease in output and new orders, the gauge still remained above the 50 mark that separates growth from contraction.
Employment figures in Dubai showed an uptick for the first time in about a year, and at the quickest pace in 14 months as companies expressed optimism toward future business. The overall employment indicator was still below the 50 mark.
#UAE investors optimistic about region's economy: UBS | ZAWYA MENA Edition
UAE investors optimistic about region's economy: UBS | ZAWYA MENA Edition
UAE investors feel confident about their region’s economic perspectives, with 85 percent expressing optimism for the current year, according to a new investment sentiment survey by UBS. However, opinions are split on when life will return to normal.
A slight majority of 51 percent think normal activity will resume before July 2021, while 49 percent of those surveyed believe it will not happen until the second half of the year, according to the report issued Monday.
Following the COVID-19 coronavirus outbreak, countries across the world resorted to largescale lockdowns leading to a slowdown in economic activities. UAE, a frontrunner in vaccine delivery, hopes to vaccinate its entire adult population by end-2021, crossing the 50 percent mark by the end of next month.
According to the UBS survey, globally, over 60 percent of survey respondents have a positive economic outlook over the next 12 months, compared with 55 percent three months prior.
UAE investors feel confident about their region’s economic perspectives, with 85 percent expressing optimism for the current year, according to a new investment sentiment survey by UBS. However, opinions are split on when life will return to normal.
A slight majority of 51 percent think normal activity will resume before July 2021, while 49 percent of those surveyed believe it will not happen until the second half of the year, according to the report issued Monday.
Following the COVID-19 coronavirus outbreak, countries across the world resorted to largescale lockdowns leading to a slowdown in economic activities. UAE, a frontrunner in vaccine delivery, hopes to vaccinate its entire adult population by end-2021, crossing the 50 percent mark by the end of next month.
According to the UBS survey, globally, over 60 percent of survey respondents have a positive economic outlook over the next 12 months, compared with 55 percent three months prior.
#Saudi PIF invests in NBK Capital Partners' shariah credit fund | Reuters
Saudi PIF invests in NBK Capital Partners' shariah credit fund | Reuters
Saudi Arabia’s sovereign wealth fund has become an anchor investor in a new $300 million shariah credit fund launched by NBK Capital Partners (NBKCP) that will provide capital to mid-market companies in the Middle East, NBKCP said on Tuesday.
It did not disclose the stake taken by Public Investment Fund (PIF), which manages $400 billion in assets, but NBKCP said it was a nine-digit figure, meaning at least a third of the targeted $300 million. Fundraising closes next year.
PIF, which largely invests in equities and infrastructure, is making a rare foray into the debt market.
“We can touch parts of the economy that they (PIF) can’t touch as efficiently, so we end up being sort of this force multiplier for them in terms of getting capital into pockets efficiently,” NBKCP Senior Managing Director Yaser Moustafa told Reuters.
Saudi Arabia’s sovereign wealth fund has become an anchor investor in a new $300 million shariah credit fund launched by NBK Capital Partners (NBKCP) that will provide capital to mid-market companies in the Middle East, NBKCP said on Tuesday.
It did not disclose the stake taken by Public Investment Fund (PIF), which manages $400 billion in assets, but NBKCP said it was a nine-digit figure, meaning at least a third of the targeted $300 million. Fundraising closes next year.
PIF, which largely invests in equities and infrastructure, is making a rare foray into the debt market.
“We can touch parts of the economy that they (PIF) can’t touch as efficiently, so we end up being sort of this force multiplier for them in terms of getting capital into pockets efficiently,” NBKCP Senior Managing Director Yaser Moustafa told Reuters.
Oil climbs to 13-month highs on output cuts, demand recovery hopes | Reuters
Oil climbs to 13-month highs on output cuts, demand recovery hopes | Reuters
Oil prices advanced on Tuesday to their highest in 13 months, as supply cuts by major producers and optimism over a recovery in fuel demand support energy markets.
Brent crude futures for April gained 50 cents, or 0.8%, to $61.06 a barrel by 0721 GMT. U.S. West Texas Intermediate crude (WTI) for March was at $58.37 a barrel, up 40 cents, or 0.7%.
Both Brent and WTI touched their highest since January 2020 earlier in the session. Front-month prices for both contracts were up for the seventh session on Tuesday, the longest winning streak since January 2019.
“Oil’s upward momentum remained undiminished on global recovery hopes,” said OANDA’s Jeffrey Halley.
Additional supply reductions by top exporter Saudi Arabia in February and March, on top of cuts by producers in the Organization of the Petroleum Exporting Countries and their allies, are tightening supplies and balancing global markets.
Oil prices advanced on Tuesday to their highest in 13 months, as supply cuts by major producers and optimism over a recovery in fuel demand support energy markets.
Brent crude futures for April gained 50 cents, or 0.8%, to $61.06 a barrel by 0721 GMT. U.S. West Texas Intermediate crude (WTI) for March was at $58.37 a barrel, up 40 cents, or 0.7%.
Both Brent and WTI touched their highest since January 2020 earlier in the session. Front-month prices for both contracts were up for the seventh session on Tuesday, the longest winning streak since January 2019.
“Oil’s upward momentum remained undiminished on global recovery hopes,” said OANDA’s Jeffrey Halley.
Additional supply reductions by top exporter Saudi Arabia in February and March, on top of cuts by producers in the Organization of the Petroleum Exporting Countries and their allies, are tightening supplies and balancing global markets.
Wall street and oil surge boost most Gulf markets | Reuters
Wall street and oil surge boost most Gulf markets | Reuters
Most major stock markets in the Gulf rose early on Tuesday, after a record-setting day on Wall Street, although Qatar bucked the trend to trade lower.
Wall Street reached all-time closing highs on Monday as the Nasdaq Composite added nearly 1% and the S&P 500 and the Dow Jones Industrial Average gained about 0.75%.
Oil prices, a key catalyst for the Gulf region’s financial markets, also hit 13-month highs, helped by rising optimism about a pick up in fuel demand.
Saudi Arabia’s benchmark index advanced 1.2%, on track to extend gains for a fourth consecutive session, buoyed by a 3% jump in Al Rajhi Bank.
National Commercial Bank (NCB), the country’s largest lender, and Samba Financial Group climbed 1.8% and 2.6%, respectively.
Saudi Arabia’s Capital Market Authority approved NCB’s request to increase its capital to merge with Samba via a securities exchange offer.
The CMA gave the nod for NCB to increase its capital to 44.78 billion riyals ($11.94 billion) from 30 billion riyals, by issuing 1.48 billion ordinary shares.
Dubai’s main share index added 0.7%, with its largest lender Emirates NBD Bank rising 2.2% and blue-chip developer Emaar Properties up 2.4%.
In Dubai, where a second wave of coronavirus infections threatens to upend a tourism boom, stocks were on course to end four sessions of losses.
The Abu Dhabi index was up 0.4%, led by a 1.1% gain in First Abu Dhabi Bank (FAB).
FAB, the biggest lender in the United Arab Emirates, is planning its debut euro-denominated bond issue, a document showed on Monday, the latest Gulf issuer to raise capital amid a downturn caused by the pandemic.
In Qatar, the index, however, eased 0.5%, hit by a 1.5% fall in Qatar National Bank and a 0.8% fall in sharia-compliant lender Masraf Al Rayan.
Elsewhere, petrochemical firm Industries Qatar lost 0.4%, after it reported a fall in full year net profit.
Most major stock markets in the Gulf rose early on Tuesday, after a record-setting day on Wall Street, although Qatar bucked the trend to trade lower.
Wall Street reached all-time closing highs on Monday as the Nasdaq Composite added nearly 1% and the S&P 500 and the Dow Jones Industrial Average gained about 0.75%.
Oil prices, a key catalyst for the Gulf region’s financial markets, also hit 13-month highs, helped by rising optimism about a pick up in fuel demand.
Saudi Arabia’s benchmark index advanced 1.2%, on track to extend gains for a fourth consecutive session, buoyed by a 3% jump in Al Rajhi Bank.
National Commercial Bank (NCB), the country’s largest lender, and Samba Financial Group climbed 1.8% and 2.6%, respectively.
Saudi Arabia’s Capital Market Authority approved NCB’s request to increase its capital to merge with Samba via a securities exchange offer.
The CMA gave the nod for NCB to increase its capital to 44.78 billion riyals ($11.94 billion) from 30 billion riyals, by issuing 1.48 billion ordinary shares.
Dubai’s main share index added 0.7%, with its largest lender Emirates NBD Bank rising 2.2% and blue-chip developer Emaar Properties up 2.4%.
In Dubai, where a second wave of coronavirus infections threatens to upend a tourism boom, stocks were on course to end four sessions of losses.
The Abu Dhabi index was up 0.4%, led by a 1.1% gain in First Abu Dhabi Bank (FAB).
FAB, the biggest lender in the United Arab Emirates, is planning its debut euro-denominated bond issue, a document showed on Monday, the latest Gulf issuer to raise capital amid a downturn caused by the pandemic.
In Qatar, the index, however, eased 0.5%, hit by a 1.5% fall in Qatar National Bank and a 0.8% fall in sharia-compliant lender Masraf Al Rayan.
Elsewhere, petrochemical firm Industries Qatar lost 0.4%, after it reported a fall in full year net profit.
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