Oil settles near 13-month highs; Texas deep freeze supports | Reuters
Oil prices settled near 13-month highs on Tuesday, supported by a deep freeze in the U.S. South that shut wells and oil refineries in Texas.
Prices have been buoyant for months, with major oil producing countries restricting supply and vaccines rolling out to combat the coronavirus pandemic.
U.S. West Texas Intermediate (WTI) crude futures settled up 1% to $60.05, after touching their highest since early January 2020. Brent settled up 5 cents, or 0.1%, to $63.35 a barrel, near the 13-month peak reached the previous session.
“Cold temperatures have added supply side support amidst numerous well freeze-offs and several refinery disruptions as some facilities have seen forced shutdowns due to power restriction,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
Tuesday 16 February 2021
Oil price rally points to more OPEC+ easing from April -sources | Reuters
Oil price rally points to more OPEC+ easing from April -sources | Reuters
OPEC+ oil producers are likely to ease curbs on supply after April given a recovery in prices, OPEC+ sources said, although any increase in output will be modest as producers are wary of fresh setbacks in the battle against the pandemic.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, slowed the pace of a planned output increase in January to match weaker-than-expected fuel demand due to continued restrictions on population movement because of the pandemic. Saudi Arabia made additional voluntary cuts to supply for February and March.
An oil rally since then to a 13-month high to almost $64 per barrel has boosted confidence among producers that the market could absorb more supply.
Forecasters, including OPEC, are predicting a record rise in demand this year as vaccines are rolled out, despite current weakness. [OPEC/M]
“Yes, if demand recovers as we expect, OPEC+ will ease the production adjustments gradually, always thinking about reducing the inventory overhang,” said an OPEC delegate, asked if the oil rally would make easing more likely from April.
OPEC+ oil producers are likely to ease curbs on supply after April given a recovery in prices, OPEC+ sources said, although any increase in output will be modest as producers are wary of fresh setbacks in the battle against the pandemic.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, slowed the pace of a planned output increase in January to match weaker-than-expected fuel demand due to continued restrictions on population movement because of the pandemic. Saudi Arabia made additional voluntary cuts to supply for February and March.
An oil rally since then to a 13-month high to almost $64 per barrel has boosted confidence among producers that the market could absorb more supply.
Forecasters, including OPEC, are predicting a record rise in demand this year as vaccines are rolled out, despite current weakness. [OPEC/M]
“Yes, if demand recovers as we expect, OPEC+ will ease the production adjustments gradually, always thinking about reducing the inventory overhang,” said an OPEC delegate, asked if the oil rally would make easing more likely from April.
#Saudi sovereign wealth fund boosts U.S. equities exposure to nearly $12.8 billion | Reuters
Saudi sovereign wealth fund boosts U.S. equities exposure to nearly $12.8 billion | Reuters
Saudi Arabia’s sovereign wealth fund has increased its holding of U.S. stocks to nearly $12.8 billion in the fourth quarter from $7 billion in the third quarter, according to a U.S. regulatory filing on Tuesday.
The Public Investment Fund (PIF) took new bets in the last quarter, buying a $1.07 billion stake in Electronic Arts Inc and a $1.4 billion stake in Activision Blizzard, according to a Securities and Exchange Commission filing.
In the third quarter, the PIF had cut its exposure to North American equities by $3 billion, offloading some exchange traded funds (ETF) and stocks including Berkshire Hathaway.
At the start of 2020 the sovereign wealth fund bulked up minority stakes in companies worldwide, including oil companies, taking advantage of market weakness caused by the COVID-19 pandemic.
Saudi Arabia’s sovereign wealth fund has increased its holding of U.S. stocks to nearly $12.8 billion in the fourth quarter from $7 billion in the third quarter, according to a U.S. regulatory filing on Tuesday.
The Public Investment Fund (PIF) took new bets in the last quarter, buying a $1.07 billion stake in Electronic Arts Inc and a $1.4 billion stake in Activision Blizzard, according to a Securities and Exchange Commission filing.
In the third quarter, the PIF had cut its exposure to North American equities by $3 billion, offloading some exchange traded funds (ETF) and stocks including Berkshire Hathaway.
At the start of 2020 the sovereign wealth fund bulked up minority stakes in companies worldwide, including oil companies, taking advantage of market weakness caused by the COVID-19 pandemic.
Factbox: #SaudiArabia's main economic and social reforms, investor concerns | Reuters
Factbox: Saudi Arabia's main economic and social reforms, investor concerns | Reuters
A requirement for foreign firms to have a regional HQ in Saudi Arabia to qualify for state contracts from 2024 is the latest in a series social and economic reforms intended to modernise the conservative kingdom and diversify its oil-dependent economy.
Here are some of the main reforms implemented by Crown Prince Mohammed bin Salman, as well as some leading investor concerns and reforms yet to be implemented.
A requirement for foreign firms to have a regional HQ in Saudi Arabia to qualify for state contracts from 2024 is the latest in a series social and economic reforms intended to modernise the conservative kingdom and diversify its oil-dependent economy.
Here are some of the main reforms implemented by Crown Prince Mohammed bin Salman, as well as some leading investor concerns and reforms yet to be implemented.
SOCIAL REFORMS
*2016
Saudi Arabia curbs the powers of the religious police who once patrolled public spaces, neutering their ability to impose strict rules on women’s dress or enforce bans on alcohol, music, prayer-time closures and the mixing of men and women.
*2016
Saudi Arabia curbs the powers of the religious police who once patrolled public spaces, neutering their ability to impose strict rules on women’s dress or enforce bans on alcohol, music, prayer-time closures and the mixing of men and women.
Warner Music Buys Stake in #Saudi Billionaire Alwaleed Bin Talal's Record Label - Bloomberg
Warner Music Buys Stake in Saudi Billionaire Alwaleed Bin Talal's Record Label - Bloomberg
Warner Music Group Corp. has acquired a stake in Saudi billionaire Prince Alwaleed Bin Talal’s Rotana Music, giving it rights to distribute releases by some of the Arab world’s biggest artists outside the Middle East.
The New York City-based entertainment publishing company, which owns hip-hop music labels Atlantic Records and Asylum Records, didn’t disclose details of the investment. The deal involved Warner acquiring a significant minority stake in Rotana Music that valued the Middle East record label at about $200 million, according to a person familiar with the transaction.
Cementing the deal gives Alwaleed’s Rotana an infusion of cash and international distribution network for its stars, while Warner Music gets access to a young, tech-savvy region.
Alwaleed invested about $270 million into Deezer in 2018, a deal that also made available Rotana’s audio and video content for the music streaming service. That investment was the first made by the prince after he was detained in 2017 in what the Saudi government described as a crackdown on corruption. He was released a few months later after signing a “confirmed understanding” with Saudi authorities.
Warner Music Group Corp. has acquired a stake in Saudi billionaire Prince Alwaleed Bin Talal’s Rotana Music, giving it rights to distribute releases by some of the Arab world’s biggest artists outside the Middle East.
The New York City-based entertainment publishing company, which owns hip-hop music labels Atlantic Records and Asylum Records, didn’t disclose details of the investment. The deal involved Warner acquiring a significant minority stake in Rotana Music that valued the Middle East record label at about $200 million, according to a person familiar with the transaction.
Cementing the deal gives Alwaleed’s Rotana an infusion of cash and international distribution network for its stars, while Warner Music gets access to a young, tech-savvy region.
Alwaleed invested about $270 million into Deezer in 2018, a deal that also made available Rotana’s audio and video content for the music streaming service. That investment was the first made by the prince after he was detained in 2017 in what the Saudi government described as a crackdown on corruption. He was released a few months later after signing a “confirmed understanding” with Saudi authorities.
#UAE's top Islamic banks saw impairment losses widening in 2020 | ZAWYA MENA Edition
UAE's top Islamic banks saw impairment losses widening in 2020 | ZAWYA MENA Edition
Leading Islamic banks in the UAE, Dubai Investment Bank (DIB) and Emirates Islamic Bank (EIB) posted increasing impairment losses in the financial year 2020.
Full year financial results showed DIB impairment losses reached AED 4.552 billion ($1.239 billion), up from AED 1.764 billion 2019.
EIB’s results, published at the end of January, showed impairment losses on financial assets reached AED 1.434 billion in 2020, up from AED 439 million in 2019, with impairment losses on non-financial assets of AED52 million in 2020, up from AED 43 million in 2019.
DIB’s chairman, Mohammed Ibrahim Al Shaibani, also the director general of the Ruler’s Court of Dubai, said the bank had provided AED 9 billion in relief to 54,000 customers in retail and corporate under the UAE’s Targeted Economic Support Scheme (TESS) programme. TESS was announced in March 2020 to provide support during COVID-19.
“The DIB franchise is capable of weathering challenging situations and possesses the ability to come out as a winner, as it has done in similar situations in the past,” he said.
Leading Islamic banks in the UAE, Dubai Investment Bank (DIB) and Emirates Islamic Bank (EIB) posted increasing impairment losses in the financial year 2020.
Full year financial results showed DIB impairment losses reached AED 4.552 billion ($1.239 billion), up from AED 1.764 billion 2019.
EIB’s results, published at the end of January, showed impairment losses on financial assets reached AED 1.434 billion in 2020, up from AED 439 million in 2019, with impairment losses on non-financial assets of AED52 million in 2020, up from AED 43 million in 2019.
DIB’s chairman, Mohammed Ibrahim Al Shaibani, also the director general of the Ruler’s Court of Dubai, said the bank had provided AED 9 billion in relief to 54,000 customers in retail and corporate under the UAE’s Targeted Economic Support Scheme (TESS) programme. TESS was announced in March 2020 to provide support during COVID-19.
“The DIB franchise is capable of weathering challenging situations and possesses the ability to come out as a winner, as it has done in similar situations in the past,” he said.
Analysis: #SaudiArabia eyes #Dubai's crown with HQ ultimatum | Reuters
Analysis: Saudi Arabia eyes Dubai's crown with HQ ultimatum | Reuters
Saudi Arabia has ratcheted up the stakes in an intensifying competition with neighbouring Dubai for foreign talent and money.
From 2024, the Saudi government will stop giving state contracts to companies and commercial institutions that base their Middle East hubs in any other country in the region, the Saudi finance minister told Reuters.
The measure is the latest attempt by the kingdom, one of the world’s most conservative countries, to remould itself as a financial and tourism hub under the leadership of de facto ruler Crown Prince Mohammed bin Salman.
But challenging the dominance of Dubai, based in the United Arab Emirates (UAE), as the region’s commercial and financial capital will not be easy. With little of the oil wealth of its neighbours, it has built its economy on its open-for-business credentials and the promise of a glitzy lifestyle for well-heeled expatriates.
“It’s a further challenge to UAE business, especially Dubai, though the superior operating environment, legal environment and facilities (there) suggests that businesses may continue to have offices across the region,” said Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, a Washington think tank.
Saudi Arabia has ratcheted up the stakes in an intensifying competition with neighbouring Dubai for foreign talent and money.
From 2024, the Saudi government will stop giving state contracts to companies and commercial institutions that base their Middle East hubs in any other country in the region, the Saudi finance minister told Reuters.
The measure is the latest attempt by the kingdom, one of the world’s most conservative countries, to remould itself as a financial and tourism hub under the leadership of de facto ruler Crown Prince Mohammed bin Salman.
But challenging the dominance of Dubai, based in the United Arab Emirates (UAE), as the region’s commercial and financial capital will not be easy. With little of the oil wealth of its neighbours, it has built its economy on its open-for-business credentials and the promise of a glitzy lifestyle for well-heeled expatriates.
“It’s a further challenge to UAE business, especially Dubai, though the superior operating environment, legal environment and facilities (there) suggests that businesses may continue to have offices across the region,” said Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, a Washington think tank.
#Dubai bucks Gulf trend with blue-chip sell-off | Reuters
Dubai bucks Gulf trend with blue-chip sell-off | Reuters
Most stock markets in the Middle East ended higher on Tuesday, though the Dubai index was dragged into negative territory by Dubai Islamic Bank (DIB).
DIB, the United Arab Emirates’ largest sharia-compliant lender, slid 2.6% after reporting a sharp decline in full-year profit while blue-chip developer Emaar Properties retreated 1.6%, weighing on a Dubai index down 1.2%.
Investor sentiment was also soured by Saudi Arabia’s plans to cease signing contracts with companies that do not have a regional base in the kingdom, looking to attract foreign investment and create local jobs.
Foreign firms have long used neighbouring United Arab Emirates as a springboard for regional operations, including for Saudi Arabia.
Saudi Arabia’s benchmark index edged up 0.2%, extending its rally for a ninth day, held back by a 4.9% slide for Jabal Omar Development.
Shares in oil behemoth Saudi Aramco finished 0.6% up after Credit Suisse raised its target price for the oil major’s shares to 30.5 riyals ($8.13), up from from 28 riyals.
In Abu Dhabi, the index added 0.3%, supported by a 1% gain for First Abu Dhabi Bank, the country’s largest lender.
Elsewhere, the Qatari index reversed early losses to close flat, helped by Commercial Bank’s 0.9% gain.
Most stock markets in the Middle East ended higher on Tuesday, though the Dubai index was dragged into negative territory by Dubai Islamic Bank (DIB).
DIB, the United Arab Emirates’ largest sharia-compliant lender, slid 2.6% after reporting a sharp decline in full-year profit while blue-chip developer Emaar Properties retreated 1.6%, weighing on a Dubai index down 1.2%.
Investor sentiment was also soured by Saudi Arabia’s plans to cease signing contracts with companies that do not have a regional base in the kingdom, looking to attract foreign investment and create local jobs.
Foreign firms have long used neighbouring United Arab Emirates as a springboard for regional operations, including for Saudi Arabia.
Saudi Arabia’s benchmark index edged up 0.2%, extending its rally for a ninth day, held back by a 4.9% slide for Jabal Omar Development.
Shares in oil behemoth Saudi Aramco finished 0.6% up after Credit Suisse raised its target price for the oil major’s shares to 30.5 riyals ($8.13), up from from 28 riyals.
In Abu Dhabi, the index added 0.3%, supported by a 1% gain for First Abu Dhabi Bank, the country’s largest lender.
Elsewhere, the Qatari index reversed early losses to close flat, helped by Commercial Bank’s 0.9% gain.
#AbuDhabi's ADQ lines up banks for $1 billion Louis Dreyfus acquisition loan - sources | Reuters
Abu Dhabi's ADQ lines up banks for $1 billion Louis Dreyfus acquisition loan - sources | Reuters
The Abu Dhabi Securities Exchange (ADX) has asked companies to produce their audited annual financial report on time.
ADX said in a circular on Tuesday that the report should be approved by the board of directors of the company and submitted within three months after the end of a financial year.
The exchange also reiterated that board members and insiders will be automatically prevented from trading until the relevant annual financial report is received.
“The listed companies should either disclose the financial report before or after the trading session according to the circulation of Securities and Commodities Authority,” ADX said.
The circular was issued to highlight the importance of disclosure and transparency for the benefit of all stakeholders.
The Abu Dhabi Securities Exchange (ADX) has asked companies to produce their audited annual financial report on time.
ADX said in a circular on Tuesday that the report should be approved by the board of directors of the company and submitted within three months after the end of a financial year.
The exchange also reiterated that board members and insiders will be automatically prevented from trading until the relevant annual financial report is received.
“The listed companies should either disclose the financial report before or after the trading session according to the circulation of Securities and Commodities Authority,” ADX said.
The circular was issued to highlight the importance of disclosure and transparency for the benefit of all stakeholders.
ADX requires companies to produce annual financial report on time | ZAWYA MENA Edition
ADX requires companies to produce annual financial report on time | ZAWYA MENA Edition
The Abu Dhabi Securities Exchange (ADX) has asked companies to produce their audited annual financial report on time.
ADX said in a circular on Tuesday that the report should be approved by the board of directors of the company and submitted within three months after the end of a financial year.
The exchange also reiterated that board members and insiders will be automatically prevented from trading until the relevant annual financial report is received.
“The listed companies should either disclose the financial report before or after the trading session according to the circulation of Securities and Commodities Authority,” ADX said.
The circular was issued to highlight the importance of disclosure and transparency for the benefit of all stakeholders.
The Abu Dhabi Securities Exchange (ADX) has asked companies to produce their audited annual financial report on time.
ADX said in a circular on Tuesday that the report should be approved by the board of directors of the company and submitted within three months after the end of a financial year.
The exchange also reiterated that board members and insiders will be automatically prevented from trading until the relevant annual financial report is received.
“The listed companies should either disclose the financial report before or after the trading session according to the circulation of Securities and Commodities Authority,” ADX said.
The circular was issued to highlight the importance of disclosure and transparency for the benefit of all stakeholders.
Oil prices near 13-month highs, supported by Texas cold snap | Reuters
Oil prices near 13-month highs, supported by Texas cold snap | Reuters
Oil prices hovered near 13-month highs on Tuesday, supported by a cold snap that shut wells in the biggest U.S. producing state Texas, although gains were capped by a wage deal in Norway that averted supply disruptions in Europe.
The global rollout of coronavirus vaccinations, fuelling expectations of a recovery in the global economy and oil demand, has also kept prices buoyant.
Keenly watched U.S. oil inventory data from the API industry association and Energy Information Administration (EIA) will be released this week on Wednesday and Thursday, respectively, each delayed by a day after U.S. markets were closed on Monday.
Benchmark Brent crude slipped 16 cents, or 0.2%, to $63.14 a barrel by 1056 GMT, but it remained to its highest since January 2020 that was reached the previous session.
U.S. West Texas Intermediate (WTI) crude futures gained 33 cents, or 0.6%, to $59.80 a barrel by 1056 GMT, after touching their highest since early January 2020.
Oil prices hovered near 13-month highs on Tuesday, supported by a cold snap that shut wells in the biggest U.S. producing state Texas, although gains were capped by a wage deal in Norway that averted supply disruptions in Europe.
The global rollout of coronavirus vaccinations, fuelling expectations of a recovery in the global economy and oil demand, has also kept prices buoyant.
Keenly watched U.S. oil inventory data from the API industry association and Energy Information Administration (EIA) will be released this week on Wednesday and Thursday, respectively, each delayed by a day after U.S. markets were closed on Monday.
Benchmark Brent crude slipped 16 cents, or 0.2%, to $63.14 a barrel by 1056 GMT, but it remained to its highest since January 2020 that was reached the previous session.
U.S. West Texas Intermediate (WTI) crude futures gained 33 cents, or 0.6%, to $59.80 a barrel by 1056 GMT, after touching their highest since early January 2020.
#Dubai Islamic Bank’s full year profit drops on higher impairment charges | The National
Dubai Islamic Bank’s full year profit drops on higher impairment charges | The National
Dubai Islamic Bank (DIB), the largest Sharia-compliant lender in the UAE by assets, reported a 34 per cent drop in its full-year net profit as impairment charges and operating expenses rose amid the coronavirus pandemic.
Net profit attributable to owners of the bank for the period ending December 31, 2020 declined to Dh3.29 billion ($895 million). Impairment charges more than doubled to Dh4.5bn as the lender took a "prudent approach" to its loan book to protect against unforeseen scenarios, the lender said in a statement to the Dubai Financial Market, where its shares trade. Operating expenses climbed 16 per cent to Dh2.7bn.
“The DIB franchise is capable of weathering challenging situations and possesses the ability to come out as a winner, as it has done in similar situations in the past,” Mohammed Al Shaibani, director-general of the Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said.
“The confidence shown by investors, stakeholders and customers alike towards the DIB Group is testament to the trust and dependability that it owns.”
Dubai Islamic Bank (DIB), the largest Sharia-compliant lender in the UAE by assets, reported a 34 per cent drop in its full-year net profit as impairment charges and operating expenses rose amid the coronavirus pandemic.
Net profit attributable to owners of the bank for the period ending December 31, 2020 declined to Dh3.29 billion ($895 million). Impairment charges more than doubled to Dh4.5bn as the lender took a "prudent approach" to its loan book to protect against unforeseen scenarios, the lender said in a statement to the Dubai Financial Market, where its shares trade. Operating expenses climbed 16 per cent to Dh2.7bn.
“The DIB franchise is capable of weathering challenging situations and possesses the ability to come out as a winner, as it has done in similar situations in the past,” Mohammed Al Shaibani, director-general of the Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said.
“The confidence shown by investors, stakeholders and customers alike towards the DIB Group is testament to the trust and dependability that it owns.”
National Bank of #Kuwait hires banks for dollar AT1 bonds - document | Reuters
National Bank of Kuwait hires banks for dollar AT1 bonds - document | Reuters
The National Bank of Kuwait has hired a group of banks to arrange investor calls ahead of a planned issuance of U.S. dollar-denominated Additional Tier 1 bonds, a document showed on Tuesday.
NBK hired Citi, HSBC, JPMorgan, NBK Capital, Standard Chartered and UBS to arrange investor calls starting on Tuesday, which will be followed by the issuance - subject to market conditions - of the perpetual bonds that will be non-callable for six years, the document from one of the banks showed.
The National Bank of Kuwait has hired a group of banks to arrange investor calls ahead of a planned issuance of U.S. dollar-denominated Additional Tier 1 bonds, a document showed on Tuesday.
NBK hired Citi, HSBC, JPMorgan, NBK Capital, Standard Chartered and UBS to arrange investor calls starting on Tuesday, which will be followed by the issuance - subject to market conditions - of the perpetual bonds that will be non-callable for six years, the document from one of the banks showed.
#Russia’s Pandemic Winners Drive $10 Billion Share Sale Pipeline - Bloomberg
Russia’s Pandemic Winners Drive $10 Billion Share Sale Pipeline - Bloomberg
Russia is on track for a blockbuster year of share sales, led by gold miners, e-commerce companies, and other firms emerging stronger from the pandemic.
Initial and secondary public offerings by Russian companies on domestic and foreign exchanges could exceed $10 billion this year, according to VTB Capital, the investment-banking arm of Russia’s second-biggest lender. That would be the strongest showing in at least eight years, Dealogic data show.
For now, markets are awash with stimulus, tempting local companies to join the global IPO rush after Russia’s benchmark MOEX stock index hit a record high last month. That could change if opposition leader Alexey Navalny’s arrest and imprisonment triggers tougher sanctions from the U.S. and Europe, but some investors are betting fresh penalties wouldn’t be severe enough to rattle markets.
“A lot of the companies planning equity offerings benefited from the pandemic, and their value increased,” said Fedor Tregubenko, UBS Group AG’s Russia chief. “Financial markets had a large liquidity boost last year, so there is demand for new investments.”
Russia is on track for a blockbuster year of share sales, led by gold miners, e-commerce companies, and other firms emerging stronger from the pandemic.
Initial and secondary public offerings by Russian companies on domestic and foreign exchanges could exceed $10 billion this year, according to VTB Capital, the investment-banking arm of Russia’s second-biggest lender. That would be the strongest showing in at least eight years, Dealogic data show.
“A lot of the companies planning equity offerings benefited from the pandemic, and their value increased,” said Fedor Tregubenko, UBS Group AG’s Russia chief. “Financial markets had a large liquidity boost last year, so there is demand for new investments.”
Gulf Fund Raises $75 Million for Mideast, North African Startups - Bloomberg
Gulf Fund Raises $75 Million for Mideast, North African Startups - Bloomberg
A Gulf venture capital firm created a year ago has raised $75 million to deploy in startups across the Middle East, as rich Saudi companies and families seek to monetize on the boom in technology firms.
Nuwa Capital, based both in Dubai and Riyadh, has finished the first round of investment in its Nuwa Ventures Fund I and targets reaching the $100 million mark this year, Khaled Talhouni, managing partner at Nuwa Capital, said in a phone interview.
The appetite for tech firms has been increasing among Gulf investors as governments in the region step up efforts to steer their economies away from oil. Saudi Arabia’s Public Investment Fund, which has bet on companies such as Uber Technologies Inc. and Jio Platforms Ltd., is expected to spend as much as $40 billion in the oil-rich kingdom throughout 2022.
Most of the proceeds raised in the Nuwa fund comes from Saudi family business and corporate groups, including the Al Faisaliah Group, Talhouni said.
Talhouni, Sarah Abu Risheh and Stephanie Nour Prince, founding partners at Nuwa Capital, previously worked at Wamda Capital, which first invested in Dubai-based ride-hailing app Careem in 2015. Careem was later sold to Uber for about $3 billion in 2019.
Nuwa Capital will target areas that include software as a service and providers of technologies for traditional industries like food and beverage and health care, Abu Risheh said.
“We like to see companies that go pan-regional, that’s where we see success,” Abu Risheh said by phone.
A Gulf venture capital firm created a year ago has raised $75 million to deploy in startups across the Middle East, as rich Saudi companies and families seek to monetize on the boom in technology firms.
Nuwa Capital, based both in Dubai and Riyadh, has finished the first round of investment in its Nuwa Ventures Fund I and targets reaching the $100 million mark this year, Khaled Talhouni, managing partner at Nuwa Capital, said in a phone interview.
The appetite for tech firms has been increasing among Gulf investors as governments in the region step up efforts to steer their economies away from oil. Saudi Arabia’s Public Investment Fund, which has bet on companies such as Uber Technologies Inc. and Jio Platforms Ltd., is expected to spend as much as $40 billion in the oil-rich kingdom throughout 2022.
Most of the proceeds raised in the Nuwa fund comes from Saudi family business and corporate groups, including the Al Faisaliah Group, Talhouni said.
Talhouni, Sarah Abu Risheh and Stephanie Nour Prince, founding partners at Nuwa Capital, previously worked at Wamda Capital, which first invested in Dubai-based ride-hailing app Careem in 2015. Careem was later sold to Uber for about $3 billion in 2019.
Nuwa Capital will target areas that include software as a service and providers of technologies for traditional industries like food and beverage and health care, Abu Risheh said.
“We like to see companies that go pan-regional, that’s where we see success,” Abu Risheh said by phone.
Watani Iron Steel to start trading on Tadawul from February 17 | ZAWYA MENA Edition
Watani Iron Steel to start trading on Tadawul from February 17 | ZAWYA MENA Edition
The Saudi Stock Exchange (Tadawul) has announced the listing of Watani Iron Steel Co on its parallel market NOMU from tomorrow (Wednesday).
The company will have a +/- 30 percent daily price fluctuation limit and a +/- 10 percent static price fluctuation limit.
The Capital Market Authority (CMA) approved the registration of Watani Iron Steel shares for the purpose of direct listing on NOMU in December 2020.
The Saudi Stock Exchange (Tadawul) has announced the listing of Watani Iron Steel Co on its parallel market NOMU from tomorrow (Wednesday).
The company will have a +/- 30 percent daily price fluctuation limit and a +/- 10 percent static price fluctuation limit.
The Capital Market Authority (CMA) approved the registration of Watani Iron Steel shares for the purpose of direct listing on NOMU in December 2020.
Outlook: Investors may find value in select equities despite higher valuations | ZAWYA MENA Edition
Outlook: Investors may find value in select equities despite higher valuations | ZAWYA MENA Edition
AD Investment Management (ADIM) said it sees opportunity for MENA investors to selectively find value in equities, despite the spike in valuations after the initial shock of COVID-19.
The Middle East-focused asset management boutique sponsored by Invest AD, said with fiscal stimulus and deficit spending to remain integral -- coupled with yield curve control and vaccine rollouts accelerating the evolution of a ‘new normal’-- the investment landscape in 2021 may reflect a continuation of the reflation/momentum trade, albeit at increased volatility.
There is also potential to position portfolios for recoveries in stocks depressed by years of unfortunate cycle timing, ADIM said in its Annual Outlook Letter for 2021.
Investors need to pick stocks with relatively attractive valuations that can help to normalize in returns within a period of time order to mitigate the risk of increasing interest rates disrupting the surge in equities, it said.
“Markets in aggregate seem to be currently priced to beyond perfection, where a lot needs to go right on the path to projected growth for them to justify their valuations,” said ADIM’s Annual Outlook Letter. “Even then, they are not offering the kind of returns one would hope for over the next decade from where we are today.”
AD Investment Management (ADIM) said it sees opportunity for MENA investors to selectively find value in equities, despite the spike in valuations after the initial shock of COVID-19.
The Middle East-focused asset management boutique sponsored by Invest AD, said with fiscal stimulus and deficit spending to remain integral -- coupled with yield curve control and vaccine rollouts accelerating the evolution of a ‘new normal’-- the investment landscape in 2021 may reflect a continuation of the reflation/momentum trade, albeit at increased volatility.
There is also potential to position portfolios for recoveries in stocks depressed by years of unfortunate cycle timing, ADIM said in its Annual Outlook Letter for 2021.
Investors need to pick stocks with relatively attractive valuations that can help to normalize in returns within a period of time order to mitigate the risk of increasing interest rates disrupting the surge in equities, it said.
“Markets in aggregate seem to be currently priced to beyond perfection, where a lot needs to go right on the path to projected growth for them to justify their valuations,” said ADIM’s Annual Outlook Letter. “Even then, they are not offering the kind of returns one would hope for over the next decade from where we are today.”
Oil prices climb as deep freeze shuts U.S. oil wells, curbs refineries | Reuters
Oil prices climb as deep freeze shuts U.S. oil wells, curbs refineries | Reuters
Oil prices rose on Tuesday as a cold front shut wells and refineries in Texas, the biggest crude producing state in the United States, the world’s biggest oil producer.
Prices also gained as Yemen’s Iran-aligned Houthi group said it struck airports in Saudi Arabia with drones, raising supply concerns in the world’s biggest oil exporter, and on optimism for a global economic recovery amid accelerated COVID-19 vaccine rollouts.
Brent crude was up 14 cents, or 0.2%, at $63.44 a barrel at 0740 GMT, after rising to its highest since January 2020 in the previous session.
U.S. West Texas Intermediate (WTI) crude futures gained 61 cents, or 1%, to $60.08 a barrel. WTI did not settle on Monday because of a U.S. federal holiday. Prices will settle at the close of trading on Tuesday.
“The unexpected U.S. supply disruption provides another short term price recovery bridge that has likely taken oil prices to a level where markets were eventually heading but just a little bit quicker than expected,” Stephen Innes, chief global markets strategist at Axi said in a note on Tuesday.
Oil prices rose on Tuesday as a cold front shut wells and refineries in Texas, the biggest crude producing state in the United States, the world’s biggest oil producer.
Prices also gained as Yemen’s Iran-aligned Houthi group said it struck airports in Saudi Arabia with drones, raising supply concerns in the world’s biggest oil exporter, and on optimism for a global economic recovery amid accelerated COVID-19 vaccine rollouts.
Brent crude was up 14 cents, or 0.2%, at $63.44 a barrel at 0740 GMT, after rising to its highest since January 2020 in the previous session.
U.S. West Texas Intermediate (WTI) crude futures gained 61 cents, or 1%, to $60.08 a barrel. WTI did not settle on Monday because of a U.S. federal holiday. Prices will settle at the close of trading on Tuesday.
“The unexpected U.S. supply disruption provides another short term price recovery bridge that has likely taken oil prices to a level where markets were eventually heading but just a little bit quicker than expected,” Stephen Innes, chief global markets strategist at Axi said in a note on Tuesday.
MIDEAST STOCKS-Gulf markets mostly slip in early trade | Nasdaq
MIDEAST STOCKS-Gulf markets mostly slip in early trade | Nasdaq
Most stock markets in the Gulf were slightly lower early on Tuesday, with the Dubai index leading losses, weighed down by Dubai Islamic Bank (DIB) DISB.DU.
DIB, the United Arab Emirates' largest sharia-compliant lender, reported a net profit of 3.16 billion dirhams ($860.38 million) for 2020, down sharply from 5.10 billion dirhams a year earlier.
Dubai's main share index .DFMGI declined 0.9%, dragged down by a 2.8% fall in Dubai Islamic Bank and a 0.4% drop in Emirates NBD Bank ENBD.DU.
National Central Cooling Co (Tabreed) TABR.DU, however, added 0.4%.
On Monday, Tabreed Chief Executive Bader Al Lamki said the company is interested in acquiring the district cooling unit that serves Dubai International Airport.
District cooling firms deliver chilled water via insulated pipes to offices, as well as industrial and residential buildings.
Saudi Arabia's benchmark index .TASI eased 0.1%, on track to end eight sessions of gains, with Al Rajhi Bank 1120.SE losing 1.3%.
Among losers, Bank AlJazira 1020.SE slipped 2.4% after the lender reported a steep fall in 2020 profit.
Abu Dhabi's stock market outperformed the region, with its index .ADI edging up 0.2%, lifted by a 0.5% gain in the country's largest lender First Abu Dhabi Bank FAB.AD.
Elsewhere, the Qatari benchmark .QSI eased 0.2%, hit by a 1.7% fall in Qatar Navigation QNNC.QA.
Most stock markets in the Gulf were slightly lower early on Tuesday, with the Dubai index leading losses, weighed down by Dubai Islamic Bank (DIB) DISB.DU.
DIB, the United Arab Emirates' largest sharia-compliant lender, reported a net profit of 3.16 billion dirhams ($860.38 million) for 2020, down sharply from 5.10 billion dirhams a year earlier.
Dubai's main share index .DFMGI declined 0.9%, dragged down by a 2.8% fall in Dubai Islamic Bank and a 0.4% drop in Emirates NBD Bank ENBD.DU.
National Central Cooling Co (Tabreed) TABR.DU, however, added 0.4%.
On Monday, Tabreed Chief Executive Bader Al Lamki said the company is interested in acquiring the district cooling unit that serves Dubai International Airport.
District cooling firms deliver chilled water via insulated pipes to offices, as well as industrial and residential buildings.
Saudi Arabia's benchmark index .TASI eased 0.1%, on track to end eight sessions of gains, with Al Rajhi Bank 1120.SE losing 1.3%.
Among losers, Bank AlJazira 1020.SE slipped 2.4% after the lender reported a steep fall in 2020 profit.
Abu Dhabi's stock market outperformed the region, with its index .ADI edging up 0.2%, lifted by a 0.5% gain in the country's largest lender First Abu Dhabi Bank FAB.AD.
Elsewhere, the Qatari benchmark .QSI eased 0.2%, hit by a 1.7% fall in Qatar Navigation QNNC.QA.