Bank wins freezing order against NMC Health owners and executives | Financial Times

Bank wins freezing order against NMC Health owners and executives | Financial Times

A leading Abu Dhabi bank has won a worldwide freezing order against the principal owners and executives of NMC Health, the UK-listed healthcare group that collapsed into administration last year amid fraud claims. 

Abu Dhabi Commercial Bank, a major creditor with exposure of more than $1bn to the group, has secured the order from a court in London against six defendants: former owners BR Shetty, NMC’s founder; Emirati investors Khalifa al-Muhairi and Saeed al-Qebaisi; as well as the former chief executive, Prasanth Manghat; and two senior financial officers. 

At a high court hearing in December held in private, the judge granted the order against the six former owners and senior executives to prevent the risk of dissipation of assets, in light of the bank’s compensation claim for losses caused by “fraudulent misrepresentations and conspiracy”. 

The court’s judgment cited a witness statement from NMC’s chief executive, Michael Davis, who was appointed following Manghat’s departure about a year ago, which said a forensic team had found documentary evidence that the alleged fraud was carried out by the defendants. 

Abu Dhabi-based NMC, which has disclosed more than $4bn in unreported debt, was placed into administration in the UK in April last year, with the administrators also pursuing a process in Abu Dhabi.  

ADIB reports 'strong recovery' in second-half profits in 2020 | The National

ADIB reports 'strong recovery' in second-half profits in 2020 | The National

Abu Dhabi Islamic Bank reported a "strong recovery" in net profit during the second half of the year as revenue grew 10 per cent on higher levels of economic activity, but overall profit for the full-year remained 38 per cent lower after a first half disrupted by the Covid-19 pandemic.

Group net profit for the year stood at Dh1.6 billion, down from Dh2.6bn in the prior year. Full-year revenue was 9.4 per cent lower at Dh5.35bn.

“In an incredibly challenging year brought upon by the global Covid-19 pandemic, ADIB demonstrated strength, resilience and adaptability," the lender's chairman Jawaan Al Khaili said in a statement to the Abu Dhabi Securities Exchange, where its shares trade.

"I am particularly pleased with the significant recovery in our second half performance, which saw the bank’s net profit grow by 73 per cent compared to H1 2020. This was made possible due to a robust, diversified business model, and the outcome of a rigorous cost discipline programme that offset the impact of net profit margin compression."

ADIB's net margin fell 74 basis points to 3.51 per cent, despite the lender managing to cut operating expenses by 7.7 per cent year-on-year as it implemented a range of cost-saving measures.

Mideast Stocks: Oil bolsters #Saudi index as other Gulf markets slip | ZAWYA MENA Edition

Mideast Stocks: Oil bolsters Saudi index as other Gulf markets slip | ZAWYA MENA Edition

Most Middle East stock markets ended lower on Sunday, with financials weighing on the Dubai index, while Saudi extended gains for a seventh consecutive session on rising oil prices.

Oil, a key catalyst for the Gulf's financial markets, hit its highest levels in more than a year on Friday on hopes a U.S. stimulus will boost the economy and fuel demand.

Brent crude settled up $1.29, or 2.1%, at $62.43 a barrel by 1832 GMT after rising to a session high of $62.83, the highest since Jan. 22, 2020.

Saudi Arabia's benchmark index advanced 1%, boosted by a 4.4% surge in Al Rajhi Bank and a 4.2% rise in Saudi Arabian Mining Company.

Dubai's main share index dropped 0.4%, weighed down by a 5% fall in Mashreq Bank and a 0.4% decrease in Emirates NBD Bank.

Elsewhere, Dubai developer DAMAC Properties closed 1.6% lower after it reported a steep loss for 2020 as sales shrank during the coronavirus pandemic.

In Abu Dhabi, the index closed flat, as losses in financial shares were offset by gains in property stocks including Aldar Properties, which climbed 1.6%.

After trading hours, Abu Dhabi's largest property developer Aldar reported fourth-quarter net profit of 729 million dirhams ($198 million), a 28% rise on the same quarter a year earlier.

The Qatari index was down 0.1%, after a 0.7% fall in Qatar Islamic Bank.

Emaar founder sees 'world of opportunities' despite $1bn drop in profits - Arabianbusiness

Emaar founder sees 'world of opportunities' despite $1bn drop in profits - Arabianbusiness

The founder of Dubai-based giant Emaar Properties, Mohamed Alabbar, has said there are a “world of opportunities” in 2021, despite seeing year-on-year profits drop by almost $1 billion.

The master developer behind the Burj Khalifa reported a net profit of $712m for 2020, down 58 percent from the $1.7bn announced 12 months previously; while revenues dropped almost 20 percent, from $6.7bn in 2019 to $5.366bn.

Emaar’s financial results were revealed on the same day that fellow Dubai-based developer Damac announced losses of over $272m for 2020, blamed largely on the impact of the global coronavirus pandemic.

Alabbar said: “Our performance in 2020 is a direct result of our ability to move quickly, adapt to new business conditions and utilise our existing resources to access new opportunities. We continue to embrace technology to help grow our business, while at the same time closely adhere to the cost discipline that helps us achieve better results in each quarter.”

#Dubai Developers Suffer as Aldar Holds Steady in #AbuDhabi - Bloomberg

Dubai Developers Suffer as Aldar Holds Steady in Abu Dhabi - Bloomberg

The fortunes of property developers in Dubai and Abu Dhabi diverged last year.

Dubai’s Emaar Properties PJSC reported a 58% slump in profit, while Damac Properties PJSC posted its second consecutive full-year loss -- underscoring the impact of an oversupply aggravated by the coronavirus pandemic.

Aldar Properties PJSC in neighboring Abu Dhabi, however, performed better than Emaar and Damac. It posted a profit that was almost unchanged from a year ago as it benefits from government contracts.

A property glut and faltering demand have driven Dubai home prices down by more than 30% since the market peaked seven years ago, a decline made worse by the pandemic. The government last year set up a committee to manage supply and demand, while property developers temporarily halted new projects.

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

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

#Saudi index hits more than 9,000 points for first time since 2019 | ZAWYA MENA Edition

Saudi index hits more than 9,000 points for first time since 2019 | ZAWYA MENA Edition

Saudi Arabia’s stock market on Sunday crossed the 9,000 mark for the first time since July 2019.

The benchmark Tadawul index was trading one percent higher at 9,033.09 around 12 noon, with volumes traded hitting 157.99 million transactions. The value of shares traded stood at 5.77 billion riyals.

"The TASI rally was led by the nearly 4 percent rise in the shares of Al Rajhi Bank. The bank's earnings for [the full year 2020] were better than expected with its earnings per share better than six-year average and annual growth of 4.3 percent despite the pandemic," said Mohammed Alsuwayed, financial analyst at Razeen Capital.

Most sectors were also trading in the positive territory.

Etihad Atheeb Telecommunication Co. emerged as the top gainer, trading at 12.16 Saudi riyals ($3.24), while Al Rajhi Bank jumped nearly 4 percent to 83 riyals.

Shares of the company resumed trading on the exchange after it published its financial statement for nine months ending December 31, 2020.

Etisalat’s 2020 net profit rises 3.8% to Dh9bn | The National

Etisalat’s 2020 net profit rises 3.8% to Dh9bn | The National

Etisalat, the UAE's biggest telecom operator, reported a 3.8 per cent annual increase in net profit in 2020 despite a marginal decline in revenue.

Net profit attributable to equity holders in the 12 months ended December 31 rose to Dh9.03 billion, compared to Dh8.69bn a year earlier, the company said in a statement on Sunday to the Abu Dhabi Securities Exchange, where its shares trade.

Revenue during the period decreased 0.9 per cent to Dh51.7bn.

“This is mainly attributable to Covid-19 pandemic that resulted in temporary lockdown, restricted mobility and travel ban resulting in reduced activities in most of our markets that negatively impacted revenue,” Etisalat said.

These are the preliminary results and the audited financials for the 2020 and the fourth quarter will be disclosed on February 22.

Etisalat, which had a monopoly in the UAE until the country's second telecoms operator du entered the market in 2007, said its operating profit increased 10.3 per cent annually to more than Dh13bn last year.

Daman Investments' Ali El Adou on Cyclical Sectors, #Dubai Real Estate, #Saudi Market Outlook - Bloomberg video

Daman Investments' Ali El Adou on Cyclical Sectors, Dubai Real Estate, Saudi Market Outlook - Bloomberg

Ali El Adou, Daman Investments Head of Asset Management, discusses his company's rating of overweight in the UAE vs. other countries in the MENA region in the reopening trade in Dubai, how he favors exposure to cyclicals (including banks, metals, petrochemicals, and real estate), the Dubai real estate market, and the Saudi market outlook. He speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

Rasmala Investment Bank's Doug Bitcon on #Kuwait's Currency Peg, the #UAE Real Estate Market - Bloomberg video

Rasmala Investment Bank's Doug Bitcon on Kuwait's Currency Peg, the UAE Real Estate Market - Bloomberg

Doug Bitcon, Rasmala Investment Bank Head of Credit Strategies, discusses Kuwait's currency peg with the state unable to borrow, the Kuwaiti dinar 12-month forwards, and the UAE's real estate market. He speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

Mideast Stocks Trade Mixed With Earnings in Spotlight: Inside EM - Bloomberg

Mideast Stocks Trade Mixed With Earnings in Spotlight: Inside EM - Bloomberg

Middle Eastern equity markets were mixed on Sunday as investors weighed earnings and after shares in developing economies rose to a record high last week.

Saudi Arabia’s Tadawul All Share Index gained as much as 0.8%, with Al Rajhi Bank and Saudi Basic Industries contributing the most to the increase. Benchmarks in the United Arab Emirates, Oman and Qatar fell as much as 0.4%, while those in Bahrain and Kuwait were little changed.

Saudi shares rose in the wake of the MSCI Emerging Markets Index touching its highest level yet late last week, gaining on optimism over fiscal stimulus in the U.S. and coronavirus vaccine rollouts. Oil in London also climbed for a fourth straight week amid supply cuts by major producers and a recovery in U.S. demand.

In Dubai, Damac Properties PJSC fell close to 5% and dragged down the main index after posting a loss in 2020. The company’s chairman said it’ll take at least one to two years for the United Arab Emirates’ real estate market to get out of its downturn.

FINANCIAL RESULTS:

• Damac FY Loss 1.04b Dirhams vs Loss of 37m Y/y; Est. Loss of 904m
• Yanbu Cement FY Profit Misses Estimates
• Leejam Sports FY Loss Misses Estimates
• Mabanee FY Net Income 21.6M Dinars Vs. 56.4M Dinars Y/y
• Burgan Bank FY Net Income Beats Estimates
• Al Ahli Bank Of Kuwait FY Net Loss 69.7M Dinars
• Waha Capital FY Profit 231m Dirhams Vs. Loss 616.3m Y/y
• Div.: 0.06 Fils/Share for 2020
• Alinma Bank FY Profit 1.97b Riyals, -30% Y/y; Est. 2.07b
• Amlak Finance FY Loss 438m Dirhams, +37% Y/y

Oil Price Targets Would Make a Far Better Goal - Bloomberg

Oil Price Targets Would Make a Far Better Goal - Bloomberg

If you can’t hit the target, bring it closer. That seems to be the policy adopted by the OPEC+ alliance of oil producers as they make the world’s biggest-ever output cuts in an attempt to shore up oil prices.

After a meeting in January, the group’s co-leader, Saudi Arabia’s oil minister, Prince Abdulaziz Bin Salman, announced that the producers were setting themselves a new target for their output cuts — restoring oil stockpiles in the developed countries of the Organisation for Economic Cooperation and Development to a new five-year average level.

They’re focusing on the OECD because its members report oil stockpiles in a (relatively) timely fashion — preliminary levels for the end of December were published by the International Energy Agency last week, although they will be revised for many months to come. Whereas other countries, like China, don’t publish oil stockpile levels at all.

OPEC+ was formed in 2016 to combat the soaring global oil stockpile that resulted from the second U.S. shale boom and the collapse in oil prices. Its members sought to bring the volume of oil stored in tanks, salt caverns, ships and pipelines down to its five-year average level, although they were never quite specific about which five-year measure they had in mind. It was meant to be a quick, six-month process starting in January 2017. More than four years on, their efforts are continuing, given new urgency by the Covid-19 pandemic.

Damac Drops After Loss and Forecast for Slow #Dubai Recovery - Bloomberg

Damac Drops After Loss and Forecast for Slow Dubai Recovery - Bloomberg

Damac Properties PJSC plunged on Sunday after posting a loss and its chairman saying it’ll take at least one to two years for the United Arab Emirates’ real estate market to get out of its downturn.

“I anticipate it will take at least 12 to 24 months to see a substantial recovery,” Chairman Hussain Sajwani said in a statement after Damac posted its second consecutive full-year loss.

“2020 was a very tough year for all property developers in the United Arab Emirates and Damac felt the negative impact just the same,” he said.

The coronavirus pandemic has aggravated a property slump in Dubai, where oversupply and economic uncertainty has pushed down prices for years. The government last year set up a committee to manage supply and demand, while property developers temporarily halted new projects.

Damac shares slumped as much as 4.8%, the most in about two months, to trade at 1.20 dirhams. It was the biggest drag to Dubai’s DFM General Index, down 0.1%.

#Qatar Islamic Bank, HSBC sign $100mln deal | ZAWYA MENA Edition

Qatar Islamic Bank, HSBC sign $100mln deal | ZAWYA MENA Edition

Qatar Islamic Bank (QIB), the country’s largest sharia-compliant lender by assets, has signed an Islamic trade facility worth $100 million with HSBC Bank Middle East.

“This is a first-of-its-kind transaction for HSBC Bank Middle East within the MENAT [Middle East, North Africa and Turkey] region and we are very proud that Qatar was the first country where it was executed,” said Abdul Hakeem Mostafawi, CEO of HSBC Qatar, in a statement to the Qatar Stock Exchange on Sunday.

“We are very optimistic about the different growth opportunities in Qatar that is driven by the expansion in gas production, final preparations for the FIFA 2022 World Cup and ongoing investment in infrastructure development. This transaction signals a strong start to the year.”

Bassel Gamal group CEO of QIB also welcome the transaction.

“We are very proud that QIB is the first Bank in the region to complete an Islamic trade facility with HSBC. The transaction has been executed efficiently, with the highest professional standards. We look forward to further cooperation in the future,” he said.

Most major Gulf markets ease in early trade; #Saudi gains | Reuters

Most major Gulf markets ease in early trade; Saudi gains | Reuters

Most major stock markets in the Gulf fell in early trade on Sunday, with the Dubai index pressured by a string of disappointing earnings, although Saudi Arabia bucked the trend.

Saudi Arabia’s benchmark index, the regional outlier, advanced 1.1%, buoyed by a 4% jump in Al Rajhi Bank.

The lender is on track to extend gains for a eighth consecutive session after it reported annual net profit of 10.60 billion riyals ($2.83 billion), up from 10.16 billion a year earlier.

Dubai’s main share index fell 0.4%, hit by a 3.2% drop in DAMAC Properties after it reported a steep loss for 2020 as sales shrank during the coronavirus pandemic.

The Dubai developer had rallied in January amid the United Arab Emirates’ immunisation campaign, but a subsequent rise in coronavirus cases in the country dented sentiment.

Among others, Mashreq Bank retreated 5%. Last week, the lender posted a full-year loss.

In Abu Dhabi, the index eased 0.2%, with the country’s largest lender First Abu Dhabi Bank falling 0.5%.

The Qatari index lost 0.3%, pulled down by a 0.9% drop in Qatar Islamic Bank and a 0.4% decrease in petrochemical firm Industries Qatar.