Oil settles mixed amid post-storm uncertainty | Reuters
Oil prices settled near year-long highs on Tuesday on signs that global coronavirus restrictions were being eased, although concerns about the pace of a U.S. economic recovery and the return of Texas oil production kept gains in check.
U.S. crude settled down 3 cents to $61.67 a barrel, still close to its highest levels since January 2020. Brent crude LCOc1 settled up 13 cents, or 0.2%, to $65.37 a barrel.
Both contracts rose more than $1 earlier before retreating.
Shale oil producers and refiners in the southern United States are slowly resuming production after 2 million barrels per day (bpd) of crude output and nearly 20% of U.S. refining capacity shut down because of last week’s winter storm.
Traffic at the Houston ship channel was slowly returning to normal. Production, however, was not expected to fully restart soon and some shale producers forecast lower oil output in the first quarter.
Tuesday, 23 February 2021
Tap into #UAE blue-chip stocks the 'ETF' way as Chimera closes second fund | Markets – Gulf News
Tap into UAE blue-chip stocks the 'ETF' way as Chimera closes second fund | Markets – Gulf News
Want to get into UAE stock markets, but don’t know which blue-chips to pick? Try an ETF (Exchange Traded Fund), which have in the global marketplace been the go-to method for investors to access everything from stocks to gold.
Now, investors get an opportunity to access some of the most heavily traded UAE stocks via an ETF – the Chimera S&P UAE UCITS ETF that “replicates and tracks the performance of the S&P UAE BMI Liquid 30/35 Index”. This would mean investors get to track and share the fortunes of the UAE’s leading real estate and banking stocks, which are highly liquid. Plus, there’s an emerging group of stocks that investors are clambering onto in recent months, such as IHC, the Abu Dhabi based holding company for diversified businesses.
The index comprises the “largest and most liquid stocks” listed on ADX, which gives “investors a broad exposure, across all sectors, to the UAE markets”.
The ETF comes from Chimera Capital Ltd.. Operating out of Abu Dhabi Global Market. But why an ETF specifically? The company had launched its first UAE-focussed ETF - Chimera S&P UAE Shariah ETF - in July last, which pulled in Dh50 million in the first six months.
Want to get into UAE stock markets, but don’t know which blue-chips to pick? Try an ETF (Exchange Traded Fund), which have in the global marketplace been the go-to method for investors to access everything from stocks to gold.
Now, investors get an opportunity to access some of the most heavily traded UAE stocks via an ETF – the Chimera S&P UAE UCITS ETF that “replicates and tracks the performance of the S&P UAE BMI Liquid 30/35 Index”. This would mean investors get to track and share the fortunes of the UAE’s leading real estate and banking stocks, which are highly liquid. Plus, there’s an emerging group of stocks that investors are clambering onto in recent months, such as IHC, the Abu Dhabi based holding company for diversified businesses.
The index comprises the “largest and most liquid stocks” listed on ADX, which gives “investors a broad exposure, across all sectors, to the UAE markets”.
The ETF comes from Chimera Capital Ltd.. Operating out of Abu Dhabi Global Market. But why an ETF specifically? The company had launched its first UAE-focussed ETF - Chimera S&P UAE Shariah ETF - in July last, which pulled in Dh50 million in the first six months.
#Dubai Aerospace Enterprise confirms talks on to lease its Boeing 737 MAX 8 | Aviation – Gulf News
Dubai Aerospace Enterprise confirms talks on to lease its Boeing 737 MAX 8 | Aviation – Gulf News
Dubai Aerospace Enterprise (DAE) is in talks with airlines about leasing the Boeing 737 MAX 8 aircraft in its fleet - days after UAE’s aviation regulator lifted its ban on the airplane.
“We are continuously in discussions to provide them with leasing solutions... and it is fair to say that a good number of these discussions are about the 737 MAX 8,” said Firoz Tarapore, CEO of DAE. “Over time, we expect the 737 MAX 8 alongside the Airbus A320neo family to be the cornerstone of the DAE fleet.”
The Dubai-based aircraft lessor has 20 Boeing 737 MAX 8 aircraft with operators. This represents 7 per cent of its owned fleet.
Dubai Aerospace Enterprise (DAE) is in talks with airlines about leasing the Boeing 737 MAX 8 aircraft in its fleet - days after UAE’s aviation regulator lifted its ban on the airplane.
“We are continuously in discussions to provide them with leasing solutions... and it is fair to say that a good number of these discussions are about the 737 MAX 8,” said Firoz Tarapore, CEO of DAE. “Over time, we expect the 737 MAX 8 alongside the Airbus A320neo family to be the cornerstone of the DAE fleet.”
The Dubai-based aircraft lessor has 20 Boeing 737 MAX 8 aircraft with operators. This represents 7 per cent of its owned fleet.
#Kuwait expects parliament to cooperate on solutions to budget financing - Finance Minister | Reuters
Kuwait expects parliament to cooperate on solutions to budget financing - Finance Minister | Reuters
Kuwait said on Tuesday it was confident parliament would cooperate to find solutions and implement financial reforms to cover its deficit, the finance ministry said in a statement.
It said the oil-rich Gulf state expects a budget deficit of 55.4 billion Kuwaiti dinars ($183.29 billion) from fiscal year 2020/21 to fiscal year 2024/25, but that the country’s finances remained “strong” due to the Future Generations Fund, Kuwait’s largest state fund.
Kuwait said on Tuesday it was confident parliament would cooperate to find solutions and implement financial reforms to cover its deficit, the finance ministry said in a statement.
It said the oil-rich Gulf state expects a budget deficit of 55.4 billion Kuwaiti dinars ($183.29 billion) from fiscal year 2020/21 to fiscal year 2024/25, but that the country’s finances remained “strong” due to the Future Generations Fund, Kuwait’s largest state fund.
#Kuwait Projects $183 Billion Cumulative Deficit Over Five Years - Bloomberg
Kuwait Projects $183 Billion Cumulative Deficit Over Five Years - Bloomberg
Kuwait’s government projects a cumulative budget deficit of 55.4 billion dinars ($183 billion) in the five fiscal years ending on March 31, 2025, Finance Minister Khalifa Hamada said in a statement.
Total expenses during that period are projected at 114.1 billion dinars, with 71%, or 81 billion dinars, allocated to salaries and subsidies, the minister said. Issuing bonds and withdrawing cash from the country’s sovereign wealth fund aren’t solutions to reform and are merely temporary measures to finance the deficit, Hamada said.
The minister also said:
Kuwait’s government projects a cumulative budget deficit of 55.4 billion dinars ($183 billion) in the five fiscal years ending on March 31, 2025, Finance Minister Khalifa Hamada said in a statement.
Total expenses during that period are projected at 114.1 billion dinars, with 71%, or 81 billion dinars, allocated to salaries and subsidies, the minister said. Issuing bonds and withdrawing cash from the country’s sovereign wealth fund aren’t solutions to reform and are merely temporary measures to finance the deficit, Hamada said.
The minister also said:
- The country must address its liquidity problem as soon as possible, while implementing reforms to cut spending and boost non-oil income.
- Statement comes in response to a draft bill the government submitted to parliament that would allow withdrawals from the Future Generations Fund.
#SaudiArabia Turns to Euro-Bond Amid Near Record-Low Yields - Bloomberg
Saudi Arabia Turns to Euro-Bond Amid Near Record-Low Yields - Bloomberg
Saudi Arabia is tapping international bond markets for the second straight month, marketing euro-denominated debt to take advantage of ultra-low borrowing costs and help reduce its reliance on dollar debt.
The world’s largest crude exporter is planning a two-part, benchmark-sized deal with a three-year and nine-year offering, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak publicly. Saudi Arabia raised $5 billion from a two-part dollar-bond offering in January.
The kingdom has picked BNP Paribas SA, Goldman Sachs Group Inc. and HSBC Holdings Plc as global coordinators, and Citigroup Inc, JPMorgan Chase & Co, Standard Chartered Plc and Samba Capital as passive joint bookrunners to organize a global investor call on Tuesday.
Saudi Arabia is tapping international bond markets for the second straight month, marketing euro-denominated debt to take advantage of ultra-low borrowing costs and help reduce its reliance on dollar debt.
The world’s largest crude exporter is planning a two-part, benchmark-sized deal with a three-year and nine-year offering, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak publicly. Saudi Arabia raised $5 billion from a two-part dollar-bond offering in January.
The kingdom has picked BNP Paribas SA, Goldman Sachs Group Inc. and HSBC Holdings Plc as global coordinators, and Citigroup Inc, JPMorgan Chase & Co, Standard Chartered Plc and Samba Capital as passive joint bookrunners to organize a global investor call on Tuesday.
Apollo, GIP Said to Bid for $10 Billion Aramco Pipeline Stake - Bloomberg
Apollo, GIP Said to Bid for $10 Billion Aramco Pipeline Stake - Bloomberg
Apollo Global Management Inc. and Global Infrastructure Partners are among suitors that bid for a roughly $10 billion stake in Saudi Aramco’s oil pipelines, people familiar with the matter said.
Canada’s Brookfield Asset Management Inc., BlackRock Inc., sovereign wealth fund China Investment Corp. and Beijing-backed Silk Road Fund Co. have also made non-binding offers, the people said, asking not to be identified as the matter is private. Pension funds in Abu Dhabi and Saudi Arabia have separately submitted initial bids, the people said.
Aramco is studying the proposals before deciding which companies will be invited to make binding offers, the people said. Bidders may team up later in the process, the people said. Some prominent family-owned groups in Saudi Arabia are also considering partnering with other investors, according to the people.
The world’s largest oil company is mulling asset disposals as a way of maintaining its $75 billion of annual dividend payments, almost all of which go to the Saudi government. That payout -- the biggest of any listed company in the world -- became harder to sustain after the coronavirus pandemic caused crude prices to plunge last year.
While prices have risen since November, that’s in large part because members of the OPEC+ cartel, including Saudi Arabia, have restricted production.
Apollo Global Management Inc. and Global Infrastructure Partners are among suitors that bid for a roughly $10 billion stake in Saudi Aramco’s oil pipelines, people familiar with the matter said.
Canada’s Brookfield Asset Management Inc., BlackRock Inc., sovereign wealth fund China Investment Corp. and Beijing-backed Silk Road Fund Co. have also made non-binding offers, the people said, asking not to be identified as the matter is private. Pension funds in Abu Dhabi and Saudi Arabia have separately submitted initial bids, the people said.
Aramco is studying the proposals before deciding which companies will be invited to make binding offers, the people said. Bidders may team up later in the process, the people said. Some prominent family-owned groups in Saudi Arabia are also considering partnering with other investors, according to the people.
The world’s largest oil company is mulling asset disposals as a way of maintaining its $75 billion of annual dividend payments, almost all of which go to the Saudi government. That payout -- the biggest of any listed company in the world -- became harder to sustain after the coronavirus pandemic caused crude prices to plunge last year.
While prices have risen since November, that’s in large part because members of the OPEC+ cartel, including Saudi Arabia, have restricted production.
From Star Performer to Star Witness: A Cum-Ex Trader Cooperates - Bloomberg
From Star Performer to Star Witness: A Cum-Ex Trader Cooperates - Bloomberg
For an employee who raked in millions each year, one of Duet Group’s top traders maintained fairly irregular desk hours.
Some days he wouldn’t set foot at all inside the office on the fourth floor of Al Fattan Tower in Dubai’s financial center, according to former colleagues who asked not to be identified discussing corporate life. But for a few weeks each spring, when European companies dole out dividends, the trader -- whom Bloomberg is choosing to call A. for legal reasons -- would log long days at his desk and generate huge profits for his firm.
Those deals have come back to haunt Duet, after A. turned from a star performer to a star witness for German prosecutors. A.’s story reveals the far-reaching net that continues to entangle individuals and firms who were engaged in so-called Cum-Ex transactions, almost a decade after the dividend-tax practice ended. London-based Duet at its peak had several billion dollars under management and allegedly played a key role in arranging the deals.
A., who left the firm in 2015, is one of the first traders to cooperate with an investigation into what German lawmakers say is one of the biggest tax heists in European history. He joins a handful of finance industry figures who did Cum-Ex trades at other firms and have provided testimony about former employers, colleagues and counterparties -- cooperation that has helped some of them stay out of jail.
This story is based on London court filings and an indictment against two bankers -- convicted last year -- assembled by German authorities, as well as conversations with more than a dozen people involved in the probe and familiar with Duet’s operations. They asked not to be identified because details of the case remain confidential.
For an employee who raked in millions each year, one of Duet Group’s top traders maintained fairly irregular desk hours.
Some days he wouldn’t set foot at all inside the office on the fourth floor of Al Fattan Tower in Dubai’s financial center, according to former colleagues who asked not to be identified discussing corporate life. But for a few weeks each spring, when European companies dole out dividends, the trader -- whom Bloomberg is choosing to call A. for legal reasons -- would log long days at his desk and generate huge profits for his firm.
Those deals have come back to haunt Duet, after A. turned from a star performer to a star witness for German prosecutors. A.’s story reveals the far-reaching net that continues to entangle individuals and firms who were engaged in so-called Cum-Ex transactions, almost a decade after the dividend-tax practice ended. London-based Duet at its peak had several billion dollars under management and allegedly played a key role in arranging the deals.
A., who left the firm in 2015, is one of the first traders to cooperate with an investigation into what German lawmakers say is one of the biggest tax heists in European history. He joins a handful of finance industry figures who did Cum-Ex trades at other firms and have provided testimony about former employers, colleagues and counterparties -- cooperation that has helped some of them stay out of jail.
This story is based on London court filings and an indictment against two bankers -- convicted last year -- assembled by German authorities, as well as conversations with more than a dozen people involved in the probe and familiar with Duet’s operations. They asked not to be identified because details of the case remain confidential.
#Saudi real GDP to return to pre-COVID-19 levels in 2022, says S&P | ZAWYA MENA Edition
Saudi real GDP to return to pre-COVID-19 levels in 2022, says S&P | ZAWYA MENA Edition
Saudi Arabia’s economy will recover from 2021 to 2022 on the back of higher oil demand and private consumption, ratings agency S&P Global said on Tuesday.
However, the real gross domestic product (GDP) will not return to 2019 levels until 2022, as the expiry of OPEC+ quotas and higher oil prices boost economic activity to nearly 3 percent, the agency said in its report, “Saudi Banking Sector 2021 Outlook”.
Credit growth, which picked up in 2020 based on stronger mortgage and lending for small and medium-sized enterprises (SMEs), is set to stay strong in nominal terms but will slow down due to high base effect from 2021 to 202
Corporate credit growth may pick up as public investment fund programs generate business for contractors. However, SME credit could slow, as the central bank’s deferral programs are wound down, the report said.
Cost of risk is also likely to stay elevated in 2021 at about 120 basis points. “This reflects our view that the volatile global health situation and international travel restrictions still weigh on the economy,” cited the report.
Saudi Arabia’s economy will recover from 2021 to 2022 on the back of higher oil demand and private consumption, ratings agency S&P Global said on Tuesday.
However, the real gross domestic product (GDP) will not return to 2019 levels until 2022, as the expiry of OPEC+ quotas and higher oil prices boost economic activity to nearly 3 percent, the agency said in its report, “Saudi Banking Sector 2021 Outlook”.
Credit growth, which picked up in 2020 based on stronger mortgage and lending for small and medium-sized enterprises (SMEs), is set to stay strong in nominal terms but will slow down due to high base effect from 2021 to 202
Corporate credit growth may pick up as public investment fund programs generate business for contractors. However, SME credit could slow, as the central bank’s deferral programs are wound down, the report said.
Cost of risk is also likely to stay elevated in 2021 at about 120 basis points. “This reflects our view that the volatile global health situation and international travel restrictions still weigh on the economy,” cited the report.
#SaudiArabia hires banks for euro-denominated bond sale -document | ZAWYA MENA Edition
Saudi Arabia hires banks for euro-denominated bond sale -document | ZAWYA MENA Edition
Saudi Arabia has hired banks to arrange an investor call ahead of a planned sale of euro-denominated bonds split into tranches of three and nine years, a document showed on Tuesday.
BNP Paribas, Goldman Sachs, and HSBC were mandated as global coordinators for the potential debt sale, which is subject to market conditions, according to the document issued by one of the banks leading the deal and seen by Reuters.
Saudi Arabia has hired banks to arrange an investor call ahead of a planned sale of euro-denominated bonds split into tranches of three and nine years, a document showed on Tuesday.
BNP Paribas, Goldman Sachs, and HSBC were mandated as global coordinators for the potential debt sale, which is subject to market conditions, according to the document issued by one of the banks leading the deal and seen by Reuters.
BofA hikes 2021 Brent price view by $10/bbl on strong oil balances | Reuters
BofA hikes 2021 Brent price view by $10/bbl on strong oil balances | Reuters
Bank of America (BofA) Global Research lifted its forecast for Brent crude oil prices for this year citing tighter supplies due to the Texas freeze and OPEC+ output curbs and unmatched global monetary stimulus, it said in a note dated Monday.
The bank now expects Brent crude oil to average $60 per barrel in 2021, up from a previous estimate of $50. BofA also forecasts West Texas Intermediate (WTI) crude prices to average $57 a barrel this year.
Brent prices could temporarily spike to $70 a barrel in the second quarter of the year, the bank’s analysts said in a note.
Brent crude was up 0.4% at $65.51 a barrel by 1313 GMT, and U.S. crude rose 0.5% to $62.00 a barrel.
Oil prices rose on Tuesday, helped by the likely easing of COVID-19 lockdowns globally, positive economic forecasts and lower output as U.S. supplies were slow to return after the deep freeze in Texas shut down crude production.
Bank of America (BofA) Global Research lifted its forecast for Brent crude oil prices for this year citing tighter supplies due to the Texas freeze and OPEC+ output curbs and unmatched global monetary stimulus, it said in a note dated Monday.
The bank now expects Brent crude oil to average $60 per barrel in 2021, up from a previous estimate of $50. BofA also forecasts West Texas Intermediate (WTI) crude prices to average $57 a barrel this year.
Brent prices could temporarily spike to $70 a barrel in the second quarter of the year, the bank’s analysts said in a note.
Brent crude was up 0.4% at $65.51 a barrel by 1313 GMT, and U.S. crude rose 0.5% to $62.00 a barrel.
Oil prices rose on Tuesday, helped by the likely easing of COVID-19 lockdowns globally, positive economic forecasts and lower output as U.S. supplies were slow to return after the deep freeze in Texas shut down crude production.
Higher oil prices push #Saudi index up, while Egypt declines | Reuters
Higher oil prices push Saudi index up, while Egypt declines | Reuters
Gulf markets ended mostly higher on Tuesday, with Saudi Arabia’s benchmark index leading gains, while Egypt’s blue-chip index slid more than 1 percent.
The Saudi index closed 0.8% higher, its biggest daily percentage gain in over a week, buoyed by higher oil prices.
The rise in crude prices was underpinned by the likely easing of COVID-19 lockdowns around the world, positive economic forecasts and lower output as U.S. supplies were slow to return after a deep freeze in Texas shut down production. [O/R]
Financial stocks boosted the index, with Al Rajhi Bank jumping 4% and National Commercial Bank, the country’s largest lender, advancing 1.8%.
Dubai’s main share index snapped five sessions of losses to end marginally higher at 0.2%, bolstered by a 3% rise in Emirates Integrated Telecommunications Company.
During the day the index rose more than 1%.
“The optimism over the drop in coronavirus cases in the country is playing a good role in reviving investors’ appetite,” said Wael Makarem, market analyst at ICM.com.
The Abu Dhabi index mirrored Dubai, closing up about 0.2%, with Emirates Telecommunications Group (Etisalat) gaining nearly 1% after its board recommended a total dividend of 1.2 dirhams per share for 2020.
Bucking the trend, the Qatari index fell for the fifth consecutive session to end 0.6% lower.
Qatar National Bank, the Gulf’s largest lender by assets, reversed early gains and dropped 3.4%.
Outside the Gulf, Egypt’s blue chip index fell more than 1%, after rising for the past two sessions.
Gulf markets ended mostly higher on Tuesday, with Saudi Arabia’s benchmark index leading gains, while Egypt’s blue-chip index slid more than 1 percent.
The Saudi index closed 0.8% higher, its biggest daily percentage gain in over a week, buoyed by higher oil prices.
The rise in crude prices was underpinned by the likely easing of COVID-19 lockdowns around the world, positive economic forecasts and lower output as U.S. supplies were slow to return after a deep freeze in Texas shut down production. [O/R]
Financial stocks boosted the index, with Al Rajhi Bank jumping 4% and National Commercial Bank, the country’s largest lender, advancing 1.8%.
Dubai’s main share index snapped five sessions of losses to end marginally higher at 0.2%, bolstered by a 3% rise in Emirates Integrated Telecommunications Company.
During the day the index rose more than 1%.
“The optimism over the drop in coronavirus cases in the country is playing a good role in reviving investors’ appetite,” said Wael Makarem, market analyst at ICM.com.
The Abu Dhabi index mirrored Dubai, closing up about 0.2%, with Emirates Telecommunications Group (Etisalat) gaining nearly 1% after its board recommended a total dividend of 1.2 dirhams per share for 2020.
Bucking the trend, the Qatari index fell for the fifth consecutive session to end 0.6% lower.
Qatar National Bank, the Gulf’s largest lender by assets, reversed early gains and dropped 3.4%.
Outside the Gulf, Egypt’s blue chip index fell more than 1%, after rising for the past two sessions.
#Saudi Wealth Fund Bets on Startups With Hambro Perks Investment - Bloomberg
Saudi Wealth Fund Bets on Startups With Hambro Perks Investment - Bloomberg
Saudi Arabia’s sovereign wealth fund is backing a Middle East venture-capital fund run by Hambro Perks Ltd., joining the trend for state investors in the region to put money into early-stage companies.
The Public Investment Fund of Saudi Arabia is an anchor investor in the $50 million Oryx Fund, which will target fintech, health and education technology startups across the Middle East and North Africa, according to Dominic Perks, co-founder of London-based venture firm Hambro Perks. He declined to say how much the Saudi fund, also known as PIF, has invested.
Oryx is the first Western venture-capital fund to get backing from PIF, which made the investment through its Jada unit, according to a statement from Hambro Perks. Other investors include Saudi Venture Capital Co. and Riyadh Valley Co.
Middle East sovereign funds have been stepping up their financing of startups as a way to create local jobs and help diversify their countries’ energy-dependent economies. Yet it remains rare for these funds to invest in other firms’ vehicles focused on the Middle East and Africa. Venture-capital funds concentrating on this region have raised just $11.7 billion since 2016, according to data from Preqin.
Saudi Arabia’s sovereign wealth fund is backing a Middle East venture-capital fund run by Hambro Perks Ltd., joining the trend for state investors in the region to put money into early-stage companies.
The Public Investment Fund of Saudi Arabia is an anchor investor in the $50 million Oryx Fund, which will target fintech, health and education technology startups across the Middle East and North Africa, according to Dominic Perks, co-founder of London-based venture firm Hambro Perks. He declined to say how much the Saudi fund, also known as PIF, has invested.
Oryx is the first Western venture-capital fund to get backing from PIF, which made the investment through its Jada unit, according to a statement from Hambro Perks. Other investors include Saudi Venture Capital Co. and Riyadh Valley Co.
Middle East sovereign funds have been stepping up their financing of startups as a way to create local jobs and help diversify their countries’ energy-dependent economies. Yet it remains rare for these funds to invest in other firms’ vehicles focused on the Middle East and Africa. Venture-capital funds concentrating on this region have raised just $11.7 billion since 2016, according to data from Preqin.
#Kuwait looks at palliative liquidity measures in reforms stalemate | Reuters
Kuwait looks at palliative liquidity measures in reforms stalemate | Reuters
Kuwait is trying to cover its fiscal shortfall through asset swaps and tapping its sovereign wealth fund, as a standoff between government and parliament pushes the cabinet to look for palliative measures while structural reforms remain deadlocked.
The oil-rich Gulf state, hit hard by lower oil prices and the COVID-19 pandemic, faces near-term liquidity risks, largely because parliament hasn’t authorised government borrowing.
This week, the cabinet submitted a draft bill to parliament that would allow it to withdraw up to 5 billion dinars ($16.54 billion) per year from the country’s Future Generations Fund. The fund, a nest egg for when oil runs out that is managed by Kuwait Investment Authority (KIA), has only been tapped once, during the first Gulf War.
But the proposal may not be approved and government sources said in any case it would only buy some time, without addressing longer-term budgetary needs.
Kuwait is trying to cover its fiscal shortfall through asset swaps and tapping its sovereign wealth fund, as a standoff between government and parliament pushes the cabinet to look for palliative measures while structural reforms remain deadlocked.
The oil-rich Gulf state, hit hard by lower oil prices and the COVID-19 pandemic, faces near-term liquidity risks, largely because parliament hasn’t authorised government borrowing.
This week, the cabinet submitted a draft bill to parliament that would allow it to withdraw up to 5 billion dinars ($16.54 billion) per year from the country’s Future Generations Fund. The fund, a nest egg for when oil runs out that is managed by Kuwait Investment Authority (KIA), has only been tapped once, during the first Gulf War.
But the proposal may not be approved and government sources said in any case it would only buy some time, without addressing longer-term budgetary needs.
Obituary: Yamani, the #Saudi oil minister who brought the West to its knees | Reuters
Obituary: Yamani, the Saudi oil minister who brought the West to its knees | Reuters
Saudi Arabia’s Sheikh Zaki Yamani, the embodiment of the ascent of Arab petroleum power and the face of the 1973 oil embargo that brought the West to its knees, has died.
Yamani was a witness to the 1975 murder of the Saudi king who had plucked him, a non-royal, from obscurity to be oil minister. Later the same year Yamani was kidnapped at an OPEC meeting by Ilyich Ramirez Sanchez, known as Carlos the Jackal.
Yamani, 91, died in London, Saudi state media reported on Tuesday.
Known for his elegant manner and trademark goatee beard, Yamani’s 24-year tenure running the oil affairs of the world’s biggest crude producer made him a global celebrity during the inflationary “oil shocks” of the 1970s.
That ended with his abrupt sacking in 1986 after a costly attempt to prop up crude prices, a failed strategy which has cast a shadow over Saudi oil policy to this day.
Saudi Arabia’s Sheikh Zaki Yamani, the embodiment of the ascent of Arab petroleum power and the face of the 1973 oil embargo that brought the West to its knees, has died.
Yamani was a witness to the 1975 murder of the Saudi king who had plucked him, a non-royal, from obscurity to be oil minister. Later the same year Yamani was kidnapped at an OPEC meeting by Ilyich Ramirez Sanchez, known as Carlos the Jackal.
Yamani, 91, died in London, Saudi state media reported on Tuesday.
Known for his elegant manner and trademark goatee beard, Yamani’s 24-year tenure running the oil affairs of the world’s biggest crude producer made him a global celebrity during the inflationary “oil shocks” of the 1970s.
That ended with his abrupt sacking in 1986 after a costly attempt to prop up crude prices, a failed strategy which has cast a shadow over Saudi oil policy to this day.
Analysis: How rich is #SaudiArabia? Kingdom does the math in balance sheet overhaul | Reuters
Analysis: How rich is Saudi Arabia? Kingdom does the math in balance sheet overhaul | Reuters
Saudi Arabia wants to demystify its finances.
The kingdom is working on creating a consolidated balance sheet of its assets and liabilities which will include items currently kept off the oil-rich economy’s books, including the investments and debts of its powerful sovereign wealth fund.
“The main purpose of this programme is to have a financial equivalent of an MRI of the government balance sheet,” a Finance Ministry spokesman told Reuters, adding that it would include assets and liabilities that are currently “off-balance sheet”.
Saudi Arabia’s Crown Prince and de facto ruler Mohammed bin Salman has put Public Investment Fund (PIF), Saudi Arabia’s main sovereign wealth fund, at the centre of reforms aimed at diversifying the economy of the world’s top oil exporter away from fossil fuel.
Under the prince’s chairmanship, PIF has transformed from a sleepy sovereign wealth fund into a global investment vehicle making multi-billion dollar bets on hi-tech companies such as Uber as well as other equity investments and pledging tens of billions of dollars to funds run by Japan’s Softbank.
Its financial statements are not published and it does not feature in the kingdom’s budget, which is publicly available.
Saudi Arabia wants to demystify its finances.
The kingdom is working on creating a consolidated balance sheet of its assets and liabilities which will include items currently kept off the oil-rich economy’s books, including the investments and debts of its powerful sovereign wealth fund.
“The main purpose of this programme is to have a financial equivalent of an MRI of the government balance sheet,” a Finance Ministry spokesman told Reuters, adding that it would include assets and liabilities that are currently “off-balance sheet”.
Saudi Arabia’s Crown Prince and de facto ruler Mohammed bin Salman has put Public Investment Fund (PIF), Saudi Arabia’s main sovereign wealth fund, at the centre of reforms aimed at diversifying the economy of the world’s top oil exporter away from fossil fuel.
Under the prince’s chairmanship, PIF has transformed from a sleepy sovereign wealth fund into a global investment vehicle making multi-billion dollar bets on hi-tech companies such as Uber as well as other equity investments and pledging tens of billions of dollars to funds run by Japan’s Softbank.
Its financial statements are not published and it does not feature in the kingdom’s budget, which is publicly available.
#UAE to Supply First Air Missile Defense to Germany’s Rheinmetall - Bloomberg
UAE to Supply First Air Missile Defense to Germany’s Rheinmetall - Bloomberg
The United Arab Emirates said it will supply its first locally manufactured air defense missiles to German security contractor Rheinmetall AG, as the Gulf state expands the production and export of military technology.
Halcon, a unit of state-owned Edge Group, designed the SkyKnight missile system to provide early warning signals and counter threats from aircraft, unmanned aerial vehicles and rockets, according to the announcement made during Abu Dhabi’s International Defense Exhibition and Conference on Tuesday. The missiles will be part of Rheinmetall’s Skynex defense system, the statement said.
Oil-rich UAE has undertaken to localize arms production and exports amid a push to diversify its economy and become less dependent on foreign companies, particularly defense contractors. Last year, Abu Dhabi-owned Edge accounted for 1.3% of global arms sales, ranked 22nd of the 25 top companies in the world, according to the Stockholm International Peace Research Institute.
Edge’s Chief Executive Officer Faisal Al Bannai said in an interview that he expects sales to grow as much as 15% in 2021, up from $5 billion last year.
The United Arab Emirates said it will supply its first locally manufactured air defense missiles to German security contractor Rheinmetall AG, as the Gulf state expands the production and export of military technology.
Halcon, a unit of state-owned Edge Group, designed the SkyKnight missile system to provide early warning signals and counter threats from aircraft, unmanned aerial vehicles and rockets, according to the announcement made during Abu Dhabi’s International Defense Exhibition and Conference on Tuesday. The missiles will be part of Rheinmetall’s Skynex defense system, the statement said.
Oil-rich UAE has undertaken to localize arms production and exports amid a push to diversify its economy and become less dependent on foreign companies, particularly defense contractors. Last year, Abu Dhabi-owned Edge accounted for 1.3% of global arms sales, ranked 22nd of the 25 top companies in the world, according to the Stockholm International Peace Research Institute.
Edge’s Chief Executive Officer Faisal Al Bannai said in an interview that he expects sales to grow as much as 15% in 2021, up from $5 billion last year.
#Saudi Wealth Fund’s Spending Programs Will Boost Banks, S&P Says - Bloomberg
Saudi Wealth Fund’s Spending Programs Will Boost Banks, S&P Says - Bloomberg
Saudi Arabia’s banks are expected to benefit from the sovereign wealth fund’s spending spree this year, although low interest rates and a rollback of central bank support may weigh on profits, S&P Global Ratings said.
“Mortgage origination will remain buoyant and corporate lending is likely to pick up as Public Investment Fund programs create business for contractors,” the ratings agency said in a report.
The sovereign investor is a key lever for the kingdom’s efforts to revive growth after what may be the deepest recession the world’s largest crude exporter has experienced since 1987. Handed $40 billion last year to buy global stocks, the PIF plans to plow the same amount into the domestic economy this year and again in 2022.
The kingdom tripled VAT to 15% in July as it endured twin economic shocks from the spread of the coronavirus pandemic and turmoil in the oil market. Inflation is expected to rise during the first quarter compared to the same period the previous year due to the residual effect of VAT, the central bank said on Monday.
“The Saudi economy will recover in 2021-2022 from the shocks of 2020 as global demand for oil recovers and private consumption increases,” S&P said. “That said, real GDP will not return to 2019 levels until 2022.”
Saudi Arabia’s banks are expected to benefit from the sovereign wealth fund’s spending spree this year, although low interest rates and a rollback of central bank support may weigh on profits, S&P Global Ratings said.
“Mortgage origination will remain buoyant and corporate lending is likely to pick up as Public Investment Fund programs create business for contractors,” the ratings agency said in a report.
The sovereign investor is a key lever for the kingdom’s efforts to revive growth after what may be the deepest recession the world’s largest crude exporter has experienced since 1987. Handed $40 billion last year to buy global stocks, the PIF plans to plow the same amount into the domestic economy this year and again in 2022.
The kingdom tripled VAT to 15% in July as it endured twin economic shocks from the spread of the coronavirus pandemic and turmoil in the oil market. Inflation is expected to rise during the first quarter compared to the same period the previous year due to the residual effect of VAT, the central bank said on Monday.
“The Saudi economy will recover in 2021-2022 from the shocks of 2020 as global demand for oil recovers and private consumption increases,” S&P said. “That said, real GDP will not return to 2019 levels until 2022.”
COVID Impact: Etisalat witnesses 3% drop in #UAE subscribers to 12.2mln | ZAWYA MENA Edition
COVID Impact: Etisalat witnesses 3% drop in UAE subscribers to 12.2mln | ZAWYA MENA Edition
Telecom subscribers in the UAE declined by hundreds of thousands last year as the coronavirus pandemic took a toll on the economy.
The UAE’s major telecom operator, Etisalat, reported on Tuesday that its subscriber base in the country dropped by 366,000 (3 percent) to 12.2 million in the fourth quarter of 2020. Mobile subscribers fell 4 percent year-on-year to 10.4 million, mainly due to the decline in the prepaid segment.
In its statement accompanying its financial results, Emirates Telecommunications Group (Etisalat) admitted that its operations were impacted by the lockdown last year, with sales of mobile phones and uptake of prepaid and roaming mobile services falling at the same time.
Despite the challenges, the company ended 2020 with a consolidated net profit of 9 billion dirhams ($2.4 billion), up 3.8 percent year over year, and has recommended a special one-time dividend of AED0.40, bringing the total dividends for the year to AED1.20 per share, which represents a dividend payout ratio of 115 percent.
Telecom subscribers in the UAE declined by hundreds of thousands last year as the coronavirus pandemic took a toll on the economy.
The UAE’s major telecom operator, Etisalat, reported on Tuesday that its subscriber base in the country dropped by 366,000 (3 percent) to 12.2 million in the fourth quarter of 2020. Mobile subscribers fell 4 percent year-on-year to 10.4 million, mainly due to the decline in the prepaid segment.
In its statement accompanying its financial results, Emirates Telecommunications Group (Etisalat) admitted that its operations were impacted by the lockdown last year, with sales of mobile phones and uptake of prepaid and roaming mobile services falling at the same time.
Despite the challenges, the company ended 2020 with a consolidated net profit of 9 billion dirhams ($2.4 billion), up 3.8 percent year over year, and has recommended a special one-time dividend of AED0.40, bringing the total dividends for the year to AED1.20 per share, which represents a dividend payout ratio of 115 percent.
Oil prices jump more than $1 as U.S. output slow to restart | Reuters
Oil prices jump more than $1 as U.S. output slow to restart | Reuters
Oil prices jumped by more than $1 on Tuesday, underpinned by optimism over COVID-19 vaccine rollouts and lower output as U.S. supplies were slow to return after a deep freeze in Texas shut in crude production last week.
Shale oil producers in the southern United States could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output that shut down because of cold weather, as frozen pipes and power supply interruptions slow their recovery, sources said.
Brent crude was up $1.08, or 1.7%, at $66.32 a barrel by 0437 GMT, after earlier hitting a high of $66.79. U.S. crude rose 92 cents, or 1.5%, to $62.62 a barrel, having reached a session high of $63. Both benchmarks have risen more than 2% on Tuesday after climbing nearly 4% in the previous session.
“The positive momentum continues in the oil complex, with investors unabashedly predisposed to a bullish view,” said Stephen Innes, chief global markets strategist at Axi in a note.
Oil prices jumped by more than $1 on Tuesday, underpinned by optimism over COVID-19 vaccine rollouts and lower output as U.S. supplies were slow to return after a deep freeze in Texas shut in crude production last week.
Shale oil producers in the southern United States could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output that shut down because of cold weather, as frozen pipes and power supply interruptions slow their recovery, sources said.
Brent crude was up $1.08, or 1.7%, at $66.32 a barrel by 0437 GMT, after earlier hitting a high of $66.79. U.S. crude rose 92 cents, or 1.5%, to $62.62 a barrel, having reached a session high of $63. Both benchmarks have risen more than 2% on Tuesday after climbing nearly 4% in the previous session.
“The positive momentum continues in the oil complex, with investors unabashedly predisposed to a bullish view,” said Stephen Innes, chief global markets strategist at Axi in a note.
Mideast Stocks: Most Gulf markets track oil, Asian shares higher | ZAWYA MENA Edition
Mideast Stocks: Most Gulf markets track oil, Asian shares higher | ZAWYA MENA Edition
Most stock markets in the Gulf region rose in early trade on Tuesday, tracking gains in oil prices and Asian shares, with Dubai benchmark index on track to snap five sessions of losses.
Oil prices, a key catalyst for the Gulf region's financial markets, jumped more than $1 on a tight global supply outlook and an approaching meeting of top crude producers is expected to keep output largely in check.
Saudi Arabia's benchmark index rose 0.8%, with Al Rajhi Bank increasing 1.5%, while petrochemical firm Saudi Basic Industries was up 1.7%.
Dubai's main share index advanced 1.1%, outperforming the peers, boosted by a 2.2% gain in its largest lender Emirates NBD.
Among others, blue-chip developers Emaar Properties climbed 1.1%.
In Abu Dhabi, the index edged up 0.2%, with Emirates Telecommunications Group (Etisalat) rising 1%.
Etisalat's board recommended a total dividend of 1.2 dirhams per share for the year 2020, including a special dividend of 40 fils per share after the telco canceled its share buy-back program.
The index's gains, however, were capped by losses at the country's largest lender First Abu Dhabi Bank.
The Qatari index rose 0.3%, a day after it saw biggest intraday fall in ten months.
Qatar National Bank, the Gulf's largest lender by assets, gained 2.3%, while Sharia-compliant lender Masraf Al Rayan traded 1.6% higher.
Most stock markets in the Gulf region rose in early trade on Tuesday, tracking gains in oil prices and Asian shares, with Dubai benchmark index on track to snap five sessions of losses.
Oil prices, a key catalyst for the Gulf region's financial markets, jumped more than $1 on a tight global supply outlook and an approaching meeting of top crude producers is expected to keep output largely in check.
Saudi Arabia's benchmark index rose 0.8%, with Al Rajhi Bank increasing 1.5%, while petrochemical firm Saudi Basic Industries was up 1.7%.
Dubai's main share index advanced 1.1%, outperforming the peers, boosted by a 2.2% gain in its largest lender Emirates NBD.
Among others, blue-chip developers Emaar Properties climbed 1.1%.
In Abu Dhabi, the index edged up 0.2%, with Emirates Telecommunications Group (Etisalat) rising 1%.
Etisalat's board recommended a total dividend of 1.2 dirhams per share for the year 2020, including a special dividend of 40 fils per share after the telco canceled its share buy-back program.
The index's gains, however, were capped by losses at the country's largest lender First Abu Dhabi Bank.
The Qatari index rose 0.3%, a day after it saw biggest intraday fall in ten months.
Qatar National Bank, the Gulf's largest lender by assets, gained 2.3%, while Sharia-compliant lender Masraf Al Rayan traded 1.6% higher.
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