Oil prices climb 2% as dollar slips | Reuters
Oil prices rose more than 2% on Thursday on a weaker dollar and expectations that a crude glut would be short-lived due to a steep fall in U.S. fuel stocks and a resumption of operations by Texas refiners.
Brent crude oil futures for May settled up $1.73, or 2.6%, to $69.63 a barrel while U.S. West Texas Intermediate crude for April ended the session $1.58 or 2.5% higher, at $66.02.
“The complex has recovered back to above yesterday’s highs with major assistance from a weak dollar/strong equity combo,” Jim Ritterbusch, president of Ritterbusch and Associates said.
“We feel that the energy complex could remain in a stall well into next week with WTI bounded roughly by parameters of about $63 to $68 before any renewed up-spike.”
U.S. Treasury yields fell on Thursday as concern about a strong pick-up in inflation eased and focus turned to an auction of 30-year government debt. The dollar fell for a third straight day and was at its lowest level in a week against a basket of currencies.
Thursday 11 March 2021
OPEC’s Shock Move to Tighten Market Leaves Oil World Divided - Bloomberg
OPEC’s Shock Move to Tighten Market Leaves Oil World Divided - Bloomberg
When OPEC+ unveiled its bold move to tighten crude markets last week, the oil world was united in surprise. But on the merits of the plan, it’s starkly divided.
The shock decision, steered by Saudi Arabia, to delay again the restart of oil output halted during the pandemic is being lauded by many as a masterstroke of supply management -- and criticized by others as misjudged.
Vitol Group, the world’s biggest trader, said price indicators attest that “OPEC+ have control” of the market. Crude’s rally to a 14-month high is shoring up revenues for the cartel, while spurring Wall Street banks like Goldman Sachs Group Inc. and JPMorgan Chase & Co. to bolster price forecasts.
But others warn that the Organization of Petroleum Exporting Countries risks over-tightening crude markets by denying supplies just as demand recovers, sending prices too high.
It could also encourage a new tide of U.S. shale-oil, Citigroup Inc. says, and turn out to be a mis-step as “counter-productive” as last year’s price war. Or the price squeeze could accelerate efforts to find other energy sources, as in India, a critical customer.
When OPEC+ unveiled its bold move to tighten crude markets last week, the oil world was united in surprise. But on the merits of the plan, it’s starkly divided.
The shock decision, steered by Saudi Arabia, to delay again the restart of oil output halted during the pandemic is being lauded by many as a masterstroke of supply management -- and criticized by others as misjudged.
Vitol Group, the world’s biggest trader, said price indicators attest that “OPEC+ have control” of the market. Crude’s rally to a 14-month high is shoring up revenues for the cartel, while spurring Wall Street banks like Goldman Sachs Group Inc. and JPMorgan Chase & Co. to bolster price forecasts.
But others warn that the Organization of Petroleum Exporting Countries risks over-tightening crude markets by denying supplies just as demand recovers, sending prices too high.
It could also encourage a new tide of U.S. shale-oil, Citigroup Inc. says, and turn out to be a mis-step as “counter-productive” as last year’s price war. Or the price squeeze could accelerate efforts to find other energy sources, as in India, a critical customer.
Credit Suisse freezes four funds invested in supply chain finance | Reuters
Credit Suisse freezes four funds invested in supply chain finance | Reuters
Credit Suisse has frozen four funds in its asset management unit that had invested in its supply chain finance strategy as it grapples with the fallout from the collapse of $10.1 billion worth of funds linked to British financial services firm Greensill Capital.
Switzerland’s second-biggest lender is facing questions from regulators and insurers as it contends with the insolvency of Greensill, for which it acted as a key source of funding.
On Wednesday it told employees the head of its asset management arm, which sold the Greensill-linked supply chain finance funds to investors, would temporarily stand aside along with two colleagues.
In a note to investors on Tuesday, the Swiss bank said its board had decided to temporarily suspend the four Luxembourg-based funds that held investments in the supply chain finance funds it wound down last week. It related the decision to current difficulties in establishing an accurate price for the supply chain-linked shares these four funds held.
The affected funds are Credit Suisse (Lux) Multi Strategy Bond Fund, Credit Suisse (Lux) Multi Strategy Alternative Fund, Credit Suisse (Lux) Qatar Enhanced Short Duration Fund and Credit Suisse (Lux) Institutional Target Volatility Fund.
The funds held around $1.2-$1.3 billion as of Feb. 26, figures showed, and held between 2.24% and 9.59% of their assets in the defunct supply chain finance funds, amounting to just over $100 million of their assets.
“Various options for reopening of the funds for subscriptions, redemptions, and conversions as soon as possible are currently being considered,” it said.
The decision took effect on March 1, it said.
Credit Suisse has frozen four funds in its asset management unit that had invested in its supply chain finance strategy as it grapples with the fallout from the collapse of $10.1 billion worth of funds linked to British financial services firm Greensill Capital.
Switzerland’s second-biggest lender is facing questions from regulators and insurers as it contends with the insolvency of Greensill, for which it acted as a key source of funding.
On Wednesday it told employees the head of its asset management arm, which sold the Greensill-linked supply chain finance funds to investors, would temporarily stand aside along with two colleagues.
In a note to investors on Tuesday, the Swiss bank said its board had decided to temporarily suspend the four Luxembourg-based funds that held investments in the supply chain finance funds it wound down last week. It related the decision to current difficulties in establishing an accurate price for the supply chain-linked shares these four funds held.
The affected funds are Credit Suisse (Lux) Multi Strategy Bond Fund, Credit Suisse (Lux) Multi Strategy Alternative Fund, Credit Suisse (Lux) Qatar Enhanced Short Duration Fund and Credit Suisse (Lux) Institutional Target Volatility Fund.
The funds held around $1.2-$1.3 billion as of Feb. 26, figures showed, and held between 2.24% and 9.59% of their assets in the defunct supply chain finance funds, amounting to just over $100 million of their assets.
“Various options for reopening of the funds for subscriptions, redemptions, and conversions as soon as possible are currently being considered,” it said.
The decision took effect on March 1, it said.
#Dubai leads most of Gulf higher; Saudi index dips | Reuters
Dubai leads most of Gulf higher; Saudi index dips | Reuters
Stock markets in the United Arab Emirates ended higher on Thursday, on the back of financials and energy shares, while the Saudi index ended a four-day winning streak.
Dubai’s main share index advanced 1%, with its largest lender Emirates NBD rising 2.6%, while sharia-compliant lender Dubai Islamic Bank closed 1.5% higher.
Elsewhere, Dubai Investments rose 3.4% after announcing a 8% cash dividend for the year 2020.
In Abu Dhabi, the index added 0.4%, led by a 0.8% increase in market heavyweight First Abu Dhabi Bank and an 8% jump in Dana Gas - its sharpest daily gain since December 2018.
Dana Gas announced a 5.5 fils per share dividend for the year 2020, despite posting a 1.38 billion dirhams loss for the year.
Governments of United Arab Emirates and Israel have entered formal talks to establish a quarantine-free travel corridor between the two countries to boost bilateral exchange following a normalisation deal, state news agency WAM reported on Wednesday.
UAE and Israel are among the countries with the world’s fastest COVID-19 vaccination programmes.
Saudi Arabia’s benchmark index eased 0.1%, snapping four sessions of gains, hit by a 1.7% fall in Al Rajhi Bank.
However, the index managed a fifth successive weekly gain, adding 3.7% during the week.
The Qatari index lost nearly 0.5%, with petrochemical maker Industries Qatar shedding 1.7% to be the worst performer on the benchmark.
The benchmark logged its first weekly gain of 2.2% in four weeks, advancing in three of the last four trading days.
Stock markets in the United Arab Emirates ended higher on Thursday, on the back of financials and energy shares, while the Saudi index ended a four-day winning streak.
Dubai’s main share index advanced 1%, with its largest lender Emirates NBD rising 2.6%, while sharia-compliant lender Dubai Islamic Bank closed 1.5% higher.
Elsewhere, Dubai Investments rose 3.4% after announcing a 8% cash dividend for the year 2020.
In Abu Dhabi, the index added 0.4%, led by a 0.8% increase in market heavyweight First Abu Dhabi Bank and an 8% jump in Dana Gas - its sharpest daily gain since December 2018.
Dana Gas announced a 5.5 fils per share dividend for the year 2020, despite posting a 1.38 billion dirhams loss for the year.
Governments of United Arab Emirates and Israel have entered formal talks to establish a quarantine-free travel corridor between the two countries to boost bilateral exchange following a normalisation deal, state news agency WAM reported on Wednesday.
UAE and Israel are among the countries with the world’s fastest COVID-19 vaccination programmes.
Saudi Arabia’s benchmark index eased 0.1%, snapping four sessions of gains, hit by a 1.7% fall in Al Rajhi Bank.
However, the index managed a fifth successive weekly gain, adding 3.7% during the week.
The Qatari index lost nearly 0.5%, with petrochemical maker Industries Qatar shedding 1.7% to be the worst performer on the benchmark.
The benchmark logged its first weekly gain of 2.2% in four weeks, advancing in three of the last four trading days.
Netanyahu Says #UAE to Invest $10 Billion in #Israel Projects - Bloomberg
Netanyahu Says UAE to Invest $10 Billion in Israel Projects - Bloomberg
The United Arab Emirates plans to invest $10 billion in the Israeli economy, Prime Minister Benjamin Netanyahu said, citing a conversation with the Gulf nation’s de facto ruler, Abu Dhabi’s Crown Prince Mohammed Bin Zayed.
Netanyahu said the two agreed that the Israeli leader’s first trip to the UAE, which was canceled on Thursday, would take place soon.
The United Arab Emirates plans to invest $10 billion in the Israeli economy, Prime Minister Benjamin Netanyahu said, citing a conversation with the Gulf nation’s de facto ruler, Abu Dhabi’s Crown Prince Mohammed Bin Zayed.
Netanyahu said the two agreed that the Israeli leader’s first trip to the UAE, which was canceled on Thursday, would take place soon.
OPEC Points to Weaker Crude Demand Outlook as It Keeps Lid on Supply - Bloomberg
OPEC Points to Weaker Crude Demand Outlook as It Keeps Lid on Supply - Bloomberg
OPEC downgraded the outlook for demand for its crude over the next two quarters, in keeping with the group’s plans to keep a tight rein on supply.
The Organization of Petroleum Exporting Countries trimmed estimates for the amount of crude it will need to pump in the second quarter by 690,000 barrels a day, amid a weaker picture for demand and stronger growth in rival supply.
“Ongoing lockdown measures, voluntary social distancing and other pandemic-related developments” continue to weigh on economic activity, the group’s Vienna-based research department said in its monthly report. Conditions should improve in the second half of 2021, it added.
The wariness is consistent with last week’s decision by Saudi Arabia and its fellow producers across the Organization of Petroleum Exporting Countries and its allies. The coalition surprised traders and propelled prices to a 14-month high above $70 a barrel by largely refraining from restoring any more of the production halted during the coronavirus.
OPEC downgraded the outlook for demand for its crude over the next two quarters, in keeping with the group’s plans to keep a tight rein on supply.
The Organization of Petroleum Exporting Countries trimmed estimates for the amount of crude it will need to pump in the second quarter by 690,000 barrels a day, amid a weaker picture for demand and stronger growth in rival supply.
“Ongoing lockdown measures, voluntary social distancing and other pandemic-related developments” continue to weigh on economic activity, the group’s Vienna-based research department said in its monthly report. Conditions should improve in the second half of 2021, it added.
The wariness is consistent with last week’s decision by Saudi Arabia and its fellow producers across the Organization of Petroleum Exporting Countries and its allies. The coalition surprised traders and propelled prices to a 14-month high above $70 a barrel by largely refraining from restoring any more of the production halted during the coronavirus.
Gulf's airlines struggle as regional services get hit with new restrictions | Aviation – Gulf News
Gulf's airlines struggle as regional services get hit with new restrictions | Aviation – Gulf News
New restrictions on flights from within the region are not helping Gulf’s airlines to make a comeback from the turmoil they suffered in 2020.
Last month, Saudi Arabia banned entry of passengers from 20 countries, including the UAE, to combat the spread of the coronavirus.
And then, passengers were caught in a bind when Kuwait took a U-turn on its decision to allow non-Kuwaitis into the country. Two hours before the country’s airport was supposed to start welcoming non-Kuwaiti passengers after a two-week ban, the Directorate-General of Civil Aviation (DGCA) announced that non-Kuwaitis are barred until further notice.
All of these last-minute regulatory changes are not doing already battered airlines any favors. Air travel demand in the Middle East plunged 82.3 per cent in January compared to a year ago - and unchanged from the 82.6 per cent demand drop in December.
New restrictions on flights from within the region are not helping Gulf’s airlines to make a comeback from the turmoil they suffered in 2020.
Last month, Saudi Arabia banned entry of passengers from 20 countries, including the UAE, to combat the spread of the coronavirus.
And then, passengers were caught in a bind when Kuwait took a U-turn on its decision to allow non-Kuwaitis into the country. Two hours before the country’s airport was supposed to start welcoming non-Kuwaiti passengers after a two-week ban, the Directorate-General of Civil Aviation (DGCA) announced that non-Kuwaitis are barred until further notice.
All of these last-minute regulatory changes are not doing already battered airlines any favors. Air travel demand in the Middle East plunged 82.3 per cent in January compared to a year ago - and unchanged from the 82.6 per cent demand drop in December.
Russia's Biggest LNG Producer Novatek Joins Race to Make Fuel Greener - Bloomberg
Russia's Biggest LNG Producer Novatek Joins Race to Make Fuel Greener - Bloomberg
Russia’s biggest liquefied natural gas producer joined the race to make sales of the fastest growing fossil fuel as clean as possible.
Buyers from Singapore to Europe are increasingly demanding to know exactly how dirty the gas is and the scale of the emissions it produces on its journey from wells to the end user. There is also mounting pressure from investors concerned by a lack of progress among the biggest energy companies to curb pollution.
Novatek PJSC plans to clean up its production along with tripling output by the end of the decade. That includes installing carbon capture and storage at one of its Arctic fields and exploring hydrogen opportunities. And showing its intent, the company bid, but lost out on price, in a landmark tender with Pavilion Energy Pte where each cargo comes with details on its emissions.
“The trend toward “Green LNG” may be seen as a premium product and as a way for LNG suppliers to differentiate themselves,” Chief Financial Officer Mark Gyetvay said in an interview.
Russia’s biggest liquefied natural gas producer joined the race to make sales of the fastest growing fossil fuel as clean as possible.
Buyers from Singapore to Europe are increasingly demanding to know exactly how dirty the gas is and the scale of the emissions it produces on its journey from wells to the end user. There is also mounting pressure from investors concerned by a lack of progress among the biggest energy companies to curb pollution.
Novatek PJSC plans to clean up its production along with tripling output by the end of the decade. That includes installing carbon capture and storage at one of its Arctic fields and exploring hydrogen opportunities. And showing its intent, the company bid, but lost out on price, in a landmark tender with Pavilion Energy Pte where each cargo comes with details on its emissions.
“The trend toward “Green LNG” may be seen as a premium product and as a way for LNG suppliers to differentiate themselves,” Chief Financial Officer Mark Gyetvay said in an interview.
Oil Climbs Above $65 on Signs of Rising U.S. Fuel Demand - Bloomberg
Oil Climbs Above $65 on Signs of Rising U.S. Fuel Demand - Bloomberg
Oil rose as the dollar declined and a fall in U.S. gasoline inventories offered a signal of recovering consumption.
Futures in New York climbed above $65 a barrel, while the U.S. currency was trading lower. Gasoline inventories have declined more than 25 million barrels in the last two weeks, while a measure for consumption expanded last week to the highest level since November. Profit from producing the fuel has soared.
The appetite for Iranian oil has grown, meanwhile, with China boosting its purchases even as other nations wait for the easing of U.S. sanctions. Imports have surged so much this month that ports in Shandong province are seeing increased congestion, according to traders and analysts.
Oil rose as the dollar declined and a fall in U.S. gasoline inventories offered a signal of recovering consumption.
Futures in New York climbed above $65 a barrel, while the U.S. currency was trading lower. Gasoline inventories have declined more than 25 million barrels in the last two weeks, while a measure for consumption expanded last week to the highest level since November. Profit from producing the fuel has soared.
The appetite for Iranian oil has grown, meanwhile, with China boosting its purchases even as other nations wait for the easing of U.S. sanctions. Imports have surged so much this month that ports in Shandong province are seeing increased congestion, according to traders and analysts.
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Want to Reduce Gulf Arab Reliance on Oil? Try Universal Income - Bloomberg
Want to Reduce Gulf Arab Reliance on Oil? Try Universal Income - Bloomberg
Countries in the Gulf Cooperation Council have built their economies, societies and political systems around oil. These are at a growing risk of disruption as crude’s importance in the global economy diminishes and prices fall. A universal income for citizens could help governments smooth the transition to a post-oil world.
Oil is central to the social contract in the Gulf. Petrodollars provide the lion’s share of government revenues, allowing rulers to keep taxes low. The Gulf monarchies provide citizens with cushy, and usually unproductive, public-sector jobs as a way to distribute oil rents — and to compensate for limited political representation.
This has a damaging knock-on effect on private companies by making local talent expensive, just when they are coming under pressure from governments to trim expats from their payrolls. High wages and low productivity cause most goods and services produced in the Gulf to be more costly than elsewhere, thwarting efforts to diversify production away from the extraction of hydrocarbons.
Still, this arrangement, with oil at the heart of the political economy, has served the region well. Standards of living have risen: The GCC is comfortably in the top third of the global income-per-capita distribution. Oil has also financed the upgrade of physical infrastructure.
Countries in the Gulf Cooperation Council have built their economies, societies and political systems around oil. These are at a growing risk of disruption as crude’s importance in the global economy diminishes and prices fall. A universal income for citizens could help governments smooth the transition to a post-oil world.
Oil is central to the social contract in the Gulf. Petrodollars provide the lion’s share of government revenues, allowing rulers to keep taxes low. The Gulf monarchies provide citizens with cushy, and usually unproductive, public-sector jobs as a way to distribute oil rents — and to compensate for limited political representation.
This has a damaging knock-on effect on private companies by making local talent expensive, just when they are coming under pressure from governments to trim expats from their payrolls. High wages and low productivity cause most goods and services produced in the Gulf to be more costly than elsewhere, thwarting efforts to diversify production away from the extraction of hydrocarbons.
Still, this arrangement, with oil at the heart of the political economy, has served the region well. Standards of living have risen: The GCC is comfortably in the top third of the global income-per-capita distribution. Oil has also financed the upgrade of physical infrastructure.
#Saudi developer of complex in Mecca secures state-guaranteed loans | Reuters
Saudi developer of complex in Mecca secures state-guaranteed loans | Reuters
Jabal Omar Development Company, one of Saudi Arabia’s largest-listed property developers, has secured 1.6 billion riyals ($427 million) in loans from Banque Saudi Fransi backed by a Finance Ministry guarantee, it said in a bourse filing.
The company, which posted five consecutive quarterly losses to the end of September 2020, operates the Jabal Omar complex of hotels and residential and commercial property within walking distance of the Grand Mosque in the Muslim holy city of Mecca.
The 15-year credit facilities, signed on March 8, will be used to complete work on the third phase of the Jabal Omar project, which includes four towers with 2,160 rooms and a total commercial area of 26,435 square metres.
It said the guarantee was issued “after agreeing on a number of representations and warranties” with the ministry.
Jabal Omar Development Company, one of Saudi Arabia’s largest-listed property developers, has secured 1.6 billion riyals ($427 million) in loans from Banque Saudi Fransi backed by a Finance Ministry guarantee, it said in a bourse filing.
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| FILE PHOTO: A general view picture shows the Kaaba as Muslim pilgrims keep social distance while performing their final Tawaf, marking the end of Haj pilgrimage amid the coronavirus disease (COVID-19) pandemic, in the holy city of Mecca, Saudi Arabia August 2, 2020. Sultan Al-Masoudi/Handout via REUTERS. |
The company, which posted five consecutive quarterly losses to the end of September 2020, operates the Jabal Omar complex of hotels and residential and commercial property within walking distance of the Grand Mosque in the Muslim holy city of Mecca.
The 15-year credit facilities, signed on March 8, will be used to complete work on the third phase of the Jabal Omar project, which includes four towers with 2,160 rooms and a total commercial area of 26,435 square metres.
It said the guarantee was issued “after agreeing on a number of representations and warranties” with the ministry.
#Kuwait finance minister calls for reforms despite rebound in oil prices | Reuters
Kuwait finance minister calls for reforms despite rebound in oil prices | Reuters
Kuwait’s finance minister said on Wednesday that an increase in oil revenues due to higher crude prices would not cover the Gulf state’s budget obligations and he called for radical economic reforms.
Kuwait’s budget would need oil prices of $90 per barrel to eliminate its deficit, the minister, Khalifa Hamada, said in a statement. Brent crude was trading at $67.86 a barrel at 1310 GMT on Wednesday.
“We must address the scarcity of financial resources and the depletion of liquidity in the treasury (the General Reserve Fund) as soon as possible, and they must be accompanied by radical economic and financial reforms that contribute to reducing expenditures and increasing non-oil revenues,” Hamada said, adding he had full confidence in parliament’s cooperation.
Kuwait’s finances are heavily dependent on oil income and a combination of lower prices due to the COVID-19 pandemic, as well as a continued stand-off between government and parliament on implementing measures such as a law allowing the state to borrow, have put it on the brink of a liquidity crunch.
Kuwait’s finance minister said on Wednesday that an increase in oil revenues due to higher crude prices would not cover the Gulf state’s budget obligations and he called for radical economic reforms.
Kuwait’s budget would need oil prices of $90 per barrel to eliminate its deficit, the minister, Khalifa Hamada, said in a statement. Brent crude was trading at $67.86 a barrel at 1310 GMT on Wednesday.
“We must address the scarcity of financial resources and the depletion of liquidity in the treasury (the General Reserve Fund) as soon as possible, and they must be accompanied by radical economic and financial reforms that contribute to reducing expenditures and increasing non-oil revenues,” Hamada said, adding he had full confidence in parliament’s cooperation.
Kuwait’s finances are heavily dependent on oil income and a combination of lower prices due to the COVID-19 pandemic, as well as a continued stand-off between government and parliament on implementing measures such as a law allowing the state to borrow, have put it on the brink of a liquidity crunch.
Robust rise in capital spending, consumption to spur mild #UAE rebound | ZAWYA MENA Edition
Robust rise in capital spending, consumption to spur mild UAE rebound | ZAWYA MENA Edition
Economic conditions in the UAE appear to be muted during the first quarter of 2021, but gross domestic product (GDP) is set to rebound mildly this year from 2020’s slump driven by the non-oil sector, analysts at FocusEconomics said on Wednesday.
The recovery is expected to be on the back of robust growth in capital spending, coupled with continued government consumption. “The external sector should benefit from the gradual easing of global restrictions as vaccines are rolled out. However, tensions in the region cloud the outlook,” it pointed out.
In their Consensus Forecast Middle East & North Africa report, FocusEconomics panelists forecast GDP to expand 2.7 per cent in 2021, which is unchanged from last month’s projection, and 3.8 per cent in 2022.
“Following the easing of some restrictions at the outset of the year, domestic Covid-19 cases surged through January and February — likely due to new variants of the virus. As such, authorities tightened travel restrictions again in late January, requiring a negative test and self-isolation periods upon arrival. The non-oil private sector PMI reflected the impact of the new measures by dropping to a three-month low in February, signalling that the improvement in business conditions was only marginal,” they said.
Economic conditions in the UAE appear to be muted during the first quarter of 2021, but gross domestic product (GDP) is set to rebound mildly this year from 2020’s slump driven by the non-oil sector, analysts at FocusEconomics said on Wednesday.
The recovery is expected to be on the back of robust growth in capital spending, coupled with continued government consumption. “The external sector should benefit from the gradual easing of global restrictions as vaccines are rolled out. However, tensions in the region cloud the outlook,” it pointed out.
In their Consensus Forecast Middle East & North Africa report, FocusEconomics panelists forecast GDP to expand 2.7 per cent in 2021, which is unchanged from last month’s projection, and 3.8 per cent in 2022.
“Following the easing of some restrictions at the outset of the year, domestic Covid-19 cases surged through January and February — likely due to new variants of the virus. As such, authorities tightened travel restrictions again in late January, requiring a negative test and self-isolation periods upon arrival. The non-oil private sector PMI reflected the impact of the new measures by dropping to a three-month low in February, signalling that the improvement in business conditions was only marginal,” they said.
#UAE lender CBI seeks shareholder vote to boost capital | Reuters
UAE lender CBI seeks shareholder vote to boost capital | Reuters
United Arab Emirates lender Commercial Bank International (CBI), which is partly owned by Qatar’s National Bank (QNB), is seeking to increase its capital to comply with a regulation that its UAE shareholding should not be less than 60%.
CBI, which holds a shareholder vote on March 22, plans to issue 430 million new shares at 1 dirham ($0.2723) each to boost its outstanding shares to about 2.17 billion shares, it said in a filing to the Abu Dhabi bourse.
QNB, Qatar’s biggest lender, owns 40% of CBI.
United Arab Emirates lender Commercial Bank International (CBI), which is partly owned by Qatar’s National Bank (QNB), is seeking to increase its capital to comply with a regulation that its UAE shareholding should not be less than 60%.
CBI, which holds a shareholder vote on March 22, plans to issue 430 million new shares at 1 dirham ($0.2723) each to boost its outstanding shares to about 2.17 billion shares, it said in a filing to the Abu Dhabi bourse.
QNB, Qatar’s biggest lender, owns 40% of CBI.
#Dubai's Shuaa Capital board proposes first cash dividend after merger | ZAWYA MENA Edition
Dubai's Shuaa Capital board proposes first cash dividend after merger | ZAWYA MENA Edition
Shuaa Capital said its board of directors has proposed a dividend of 3 fils per share totaling 76 million dirhams ($21 million) to shareholders.
The Dubai based asset management firm said in a statement this is the first dividend to be paid since the merger in 2019.
Earlier, the firm reported a net profit of 125 million dirhams for full-year 2020, up 168 percent year on year, and an EBITDA of 349 million dirhams, up 89 percent year on year.
Assets under management increased to a $14.1 billion at the year-end, driven by the strategy of increasing recurring revenue through permanent capital vehicles. It delivered a Return of Equity (ROE) of 8.5 percent for FY 2020, in line with targets.
Shuaa Capital said its board of directors has proposed a dividend of 3 fils per share totaling 76 million dirhams ($21 million) to shareholders.
The Dubai based asset management firm said in a statement this is the first dividend to be paid since the merger in 2019.
Earlier, the firm reported a net profit of 125 million dirhams for full-year 2020, up 168 percent year on year, and an EBITDA of 349 million dirhams, up 89 percent year on year.
Assets under management increased to a $14.1 billion at the year-end, driven by the strategy of increasing recurring revenue through permanent capital vehicles. It delivered a Return of Equity (ROE) of 8.5 percent for FY 2020, in line with targets.
Oil prices rise on economic outlook, drawdown in fuel stocks | Reuters
Oil prices rise on economic outlook, drawdown in fuel stocks | Reuters
Crude oil prices rose on Thursday as vaccine rollouts bolstered the economic outlook and U.S. fuel stocks fell sharply, although gains were capped by a surge in crude oil inventories after last month’s Texas storm.
Brent crude oil futures for May rose 20 cents, or 0.3%, to $68.10 a barrel by 0752 GMT, while U.S. West Texas Intermediate crude for April was up 21 cents, or 0.3%, at $64.65.
“Gasoline stocks fell... (which) provided the bullish offset and eventually sent oil prices higher on the strong demand for end products, hence an economic recovery,” said Stephen Innes, Chief Global Markets Strategist at Axi.
Crude oil prices rose on Thursday as vaccine rollouts bolstered the economic outlook and U.S. fuel stocks fell sharply, although gains were capped by a surge in crude oil inventories after last month’s Texas storm.
Brent crude oil futures for May rose 20 cents, or 0.3%, to $68.10 a barrel by 0752 GMT, while U.S. West Texas Intermediate crude for April was up 21 cents, or 0.3%, at $64.65.
“Gasoline stocks fell... (which) provided the bullish offset and eventually sent oil prices higher on the strong demand for end products, hence an economic recovery,” said Stephen Innes, Chief Global Markets Strategist at Axi.
MIDEAST STOCKS-Most Gulf markets rise in early trade; Qatari stocks ease | Nasdaq
MIDEAST STOCKS-Most Gulf markets rise in early trade; Qatari stocks ease | Nasdaq
Most major markets in the Gulf traded higher early on Thursday, with Sipchem supporting the Saudi index, while Qatar bucked the trend to open lower to snap a three-session winning streak.
Crude oil prices rose after vaccine rollouts bolstered the economic outlook and U.S. fuel stocks fell sharply.
Saudi Arabia's benchmark index rose 0.3%, with Al Rajhi Bank gaining 0.7%, while Sahara International Petrochemical Company (Sipchem) advanced 3.7% after reporting a 175.9 million riyals ($46.90 million) net profit for the year 2020.
The kingdom's foreign minister said on Wednesday it will take action to deter attacks on its oil facilities, following an attack on the heart of the industry this week by Yemen's Iran-aligned Houthi movement.
Saudi authorities said they foiled the attack with no casualties or serious damage.
Separately, Saudi Arabia's sovereign wealth fund, the Public Investment Fund, said on Wednesday it signed a $15 billion multi-currency revolving credit facility with a group of 17 banks, which it said gives it access to extra capital that can be deployed quickly when needed.
In Dubai, the index was up 0.3%, driven by a 0.7% gain in sharia-compliant lender Dubai Islamic Bank .
Elsewhere, Dubai Investments added 2% after announcing a 8% cash dividend for the year 2020.
The Abu Dhabi index edged up 0.2%, as market heavyweight First Abu Dhabi Bank added 0.4% and Dana Gas climbed 4.5% — its sharpest daily gain in more than eight months.
Dana Gas announced a 5.5 fils per share dividend for the year 2020, despite posting a 1.38 billion dirhams loss for the year.
The Qatari index , however, eased 0.1%, hit by a 2.1% drop in Qatar Islamic Bank .
Most major markets in the Gulf traded higher early on Thursday, with Sipchem supporting the Saudi index, while Qatar bucked the trend to open lower to snap a three-session winning streak.
Crude oil prices rose after vaccine rollouts bolstered the economic outlook and U.S. fuel stocks fell sharply.
Saudi Arabia's benchmark index rose 0.3%, with Al Rajhi Bank gaining 0.7%, while Sahara International Petrochemical Company (Sipchem) advanced 3.7% after reporting a 175.9 million riyals ($46.90 million) net profit for the year 2020.
The kingdom's foreign minister said on Wednesday it will take action to deter attacks on its oil facilities, following an attack on the heart of the industry this week by Yemen's Iran-aligned Houthi movement.
Saudi authorities said they foiled the attack with no casualties or serious damage.
Separately, Saudi Arabia's sovereign wealth fund, the Public Investment Fund, said on Wednesday it signed a $15 billion multi-currency revolving credit facility with a group of 17 banks, which it said gives it access to extra capital that can be deployed quickly when needed.
In Dubai, the index was up 0.3%, driven by a 0.7% gain in sharia-compliant lender Dubai Islamic Bank .
Elsewhere, Dubai Investments added 2% after announcing a 8% cash dividend for the year 2020.
The Abu Dhabi index edged up 0.2%, as market heavyweight First Abu Dhabi Bank added 0.4% and Dana Gas climbed 4.5% — its sharpest daily gain in more than eight months.
Dana Gas announced a 5.5 fils per share dividend for the year 2020, despite posting a 1.38 billion dirhams loss for the year.
The Qatari index , however, eased 0.1%, hit by a 2.1% drop in Qatar Islamic Bank .
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