All listed UAE companies now need at least one female board director | The National
Listed companies in the UAE now need to have at least one female director on their boards, according to the Securities and Commodities Authority.
The requirement for all companies on local markets came into force following a board meeting on Sunday by the market's regulator.
The UAE's markets must be elevated "to meet the highest global standards", the head of the SCA's board and Minister of Finance Abdulla Bin Touq said in a statement.
This "is a priority for the SCA and its board during the coming period and we will work with all partners to enhance the local investment environment and support its legal infrastructure to meet the UAE Vision 2021 and the targets of the next 50 years", Mr Bin Touq added.
The move is the latest in a series of measures being taken to boost female representation at the highest levels of UAE business. On Saturday, the Central Bank of the UAE signed an agreement with Aurora50, a social enterprise co-founded by Sheikha Shamma bint Sultan bin Khalifa, aimed at increasing the number of women on the boards of both public and private UAE companies. The two entities said they would promote the exchange of information and build a strong pipeline of female talent.
According to Aurora50, women currently sit on the boards of 28 of the 110 listed companies in the UAE, or 26 per cent of the total. However, they only make up around 3.5 per cent (29 of a total of 823 board members) of board directors of these firms.
The SCA had previously set a target for companies to achieve 20 per cent female representation on their boards, with those that fail to reach this level having to explain reasons for any shortfall.
"We previously used to accept explanations if there wasn’t compliance, but now we are moving to make female representation compulsory," the regulator's chief executive, Obaid Saif Al Zaabi, said. "So now there must be at least one female member on the board of any listed company."
The UAE has the highest level of women participating in the workforce – 57.5 per cent in 2020 – of any country in the Middle East and North Africa region, the World Bank said in a blog post last week.
The Washington-based lender said recent reforms made by the UAE have seen the country's score in its annual Women, Business and the Law study increase to 82.5 out of 100 points in 2021, up from 30 in 2019.
Sunday 14 March 2021
Slow Gulf economic recovery to have long-lasting impact on banks - S&P | Reuters
Slow Gulf economic recovery to have long-lasting impact on banks - S&P | Reuters
Economic recovery from the coronavirus crisis in the oil-rich Gulf region will be slow, weighing on the region’s banking sector, S&P Global Ratings said.
Gulf countries fell into a sharp recession last year as the COVID-19 pandemic affected vital non-oil economic sectors such as hospitality, commerce, and real estate, while lower oil prices hurt state revenues.
Events like Dubai Expo this year and the World Cup in Qatar next year, as well as a rebounding oil market, will provide some support but growth will remain below historical levels, S&P said.
“Indeed, most countries will not return to 2019 nominal GDP before 2023, with an even longer road for Saudi Arabia,” it said in a report on Sunday.
Recovery in sectors such as aviation, tourism, and real estate will take time, and while vaccination programmes are progressing, there are downside risks due to mutations in the novel coronavirus.
These factor swill weigh on bank’s asset quality with non-performing loans expected to increase, as well as on profitability, with some banks expected to post losses in 2021.
Economic recovery from the coronavirus crisis in the oil-rich Gulf region will be slow, weighing on the region’s banking sector, S&P Global Ratings said.
Gulf countries fell into a sharp recession last year as the COVID-19 pandemic affected vital non-oil economic sectors such as hospitality, commerce, and real estate, while lower oil prices hurt state revenues.
Events like Dubai Expo this year and the World Cup in Qatar next year, as well as a rebounding oil market, will provide some support but growth will remain below historical levels, S&P said.
“Indeed, most countries will not return to 2019 nominal GDP before 2023, with an even longer road for Saudi Arabia,” it said in a report on Sunday.
Recovery in sectors such as aviation, tourism, and real estate will take time, and while vaccination programmes are progressing, there are downside risks due to mutations in the novel coronavirus.
These factor swill weigh on bank’s asset quality with non-performing loans expected to increase, as well as on profitability, with some banks expected to post losses in 2021.
#Dubai stocks outperform on plans to increase tourism capacity | Reuters
Dubai stocks outperform on plans to increase tourism capacity | Reuters
Major stock markets in the Gulf ended higher on Sunday, with Dubai leading the gains following its plans to tourism capacity, while Egypt was supported by gains in SODIC.
Dubai’s main share index advanced 1%, buoyed by a 2.3% rise in sharia-compliant lender Dubai Islamic Bank and a 1.7% increase in Emaar Properties.
Dubai government said on Saturday it plans to increase its tourism and hotel capacity by 134% over the next 20 years, part of a wider plan to make the emirate more competitive as Gulf countries brace for the post-oil era.
The Dubai-2040 plan forecasts 400% increase in beach capacity and 168 square km (65 square miles) of lands allocated to logistics and other businesses, a government statement said.
In Abu Dhabi, the index gained 0.8%, with the country’s largest lender First Abu Dhabi Bank, while Aldar Properties finished 2.2% higher.
Aldar, Abu Dhabi’s largest real estate developer, offered to buy a majority stake in Egypt’s Six of October for Development and Investment Company (SODIC).
The Saudi stock market index gained 0.8% percent, as majority of its listed lenders advanced. Alinma Bank was the top gainer amongst its peers, jumping 4.3%.
Separately, Reuters reported in November that Saudi Arabia plans to ease foreign workers’ contractual restrictions, abolishing a controversial seven-decade-old sponsorship system known as kafala.
The plans, to take effect in March 2021, aim to make the Saudi labour market more attractive, the deputy minister for human resources said, by granting foreign workers the right to change jobs and leave the country without employers’ permission.
In Qatar, the index edged up 0.2%, helped by a 0.6% gain in petrochemical maker Industries Qatar.
Major stock markets in the Gulf ended higher on Sunday, with Dubai leading the gains following its plans to tourism capacity, while Egypt was supported by gains in SODIC.
Dubai’s main share index advanced 1%, buoyed by a 2.3% rise in sharia-compliant lender Dubai Islamic Bank and a 1.7% increase in Emaar Properties.
Dubai government said on Saturday it plans to increase its tourism and hotel capacity by 134% over the next 20 years, part of a wider plan to make the emirate more competitive as Gulf countries brace for the post-oil era.
The Dubai-2040 plan forecasts 400% increase in beach capacity and 168 square km (65 square miles) of lands allocated to logistics and other businesses, a government statement said.
In Abu Dhabi, the index gained 0.8%, with the country’s largest lender First Abu Dhabi Bank, while Aldar Properties finished 2.2% higher.
Aldar, Abu Dhabi’s largest real estate developer, offered to buy a majority stake in Egypt’s Six of October for Development and Investment Company (SODIC).
The Saudi stock market index gained 0.8% percent, as majority of its listed lenders advanced. Alinma Bank was the top gainer amongst its peers, jumping 4.3%.
Separately, Reuters reported in November that Saudi Arabia plans to ease foreign workers’ contractual restrictions, abolishing a controversial seven-decade-old sponsorship system known as kafala.
The plans, to take effect in March 2021, aim to make the Saudi labour market more attractive, the deputy minister for human resources said, by granting foreign workers the right to change jobs and leave the country without employers’ permission.
In Qatar, the index edged up 0.2%, helped by a 0.6% gain in petrochemical maker Industries Qatar.
#UAE Sheikh Lays Claim to Oil Cargo U.S. Says Is From Iran - Bloomberg
UAE Sheikh Lays Claim to Oil Cargo U.S. Says Is From Iran - Bloomberg
The U.S. attempt to prevent Iran exporting oil suffered a blow after a United Arab Emirates sheikh laid claim to a cargo that Washington seized and alleged is from the Islamic Republic.
A company controlled by the Emirate of Fujairah’s ruler told a U.S. court that the roughly 2 million barrels of crude was originally from Iraq.
Fujairah International Oil & Gas Corp., wholly owned by Sheikh Hamad bin Mohammed Al Sharqi, said it’s an intermediary seller of the oil, according to a claim filed in a federal court in the District of Columbia.
The case underscores the difficulty the U.S. faces as it tries to bar Iran from generating income from energy sales and pressure it into re-starting nuclear talks.
While shipments of Iranian oil have slumped due to threat of U.S. penalties, they have picked in recent months, though their origin is often disguised. The main buyers are refiners in China.
The U.S. attempt to prevent Iran exporting oil suffered a blow after a United Arab Emirates sheikh laid claim to a cargo that Washington seized and alleged is from the Islamic Republic.
A company controlled by the Emirate of Fujairah’s ruler told a U.S. court that the roughly 2 million barrels of crude was originally from Iraq.
Fujairah International Oil & Gas Corp., wholly owned by Sheikh Hamad bin Mohammed Al Sharqi, said it’s an intermediary seller of the oil, according to a claim filed in a federal court in the District of Columbia.
The case underscores the difficulty the U.S. faces as it tries to bar Iran from generating income from energy sales and pressure it into re-starting nuclear talks.
While shipments of Iranian oil have slumped due to threat of U.S. penalties, they have picked in recent months, though their origin is often disguised. The main buyers are refiners in China.
Gulf Equity Markets Rise, Shrugging Off Lower Crude: Inside EM - Bloomberg
Gulf Equity Markets Rise, Shrugging Off Lower Crude: Inside EM - Bloomberg
Dubai’s equities index led gains in the Gulf Sunday as traders focus on the long-term prospect for oil, shrugging off the first week of decline for Brent in two months.
The DFM General Index finished 1% higher after the city at the weekend announced an urban plan for the next two decades. Gauges in Saudi Arabia, Abu Dhabi, Oman, Kuwait and Qatar also rose.
Stock markets in the Gulf followed an increase for an index tracking emerging-market peers last week, sustaining gains even as crude, the region’s biggest export, posted the first weekly retreat since Jan. 15. Higher oil prices have been fueling gains for shares in the region, particularly in Saudi Arabia, where the main index is trading at the highest level since mid-2015.
“We are still bullish on oil,” said Ali Malik, an investment adviser at Bank of Singapore who sees Brent reaching $72 a barrel in two months’ time. “It will limit itself at a point, but we are still far away from that point.”
MIDDLE EASTERN MARKETS:
Dubai’s equities index led gains in the Gulf Sunday as traders focus on the long-term prospect for oil, shrugging off the first week of decline for Brent in two months.
The DFM General Index finished 1% higher after the city at the weekend announced an urban plan for the next two decades. Gauges in Saudi Arabia, Abu Dhabi, Oman, Kuwait and Qatar also rose.
Stock markets in the Gulf followed an increase for an index tracking emerging-market peers last week, sustaining gains even as crude, the region’s biggest export, posted the first weekly retreat since Jan. 15. Higher oil prices have been fueling gains for shares in the region, particularly in Saudi Arabia, where the main index is trading at the highest level since mid-2015.
“We are still bullish on oil,” said Ali Malik, an investment adviser at Bank of Singapore who sees Brent reaching $72 a barrel in two months’ time. “It will limit itself at a point, but we are still far away from that point.”
MIDDLE EASTERN MARKETS:
- Emaar Properties advanced 1.7% after Dubai unveiled an urban plan for the next two decades that focuses on boosting waterfront acreage
- The plan “should provide a boost to the real-estate sector companies in DFM as they will have a key role in the implementation,” said Vijay Valecha, chief investment officer at Century Financial Consultancy
- Dubai-listed Shuaa Capital plans to announce a deal in Abu Dhabi’s tech sector this week, Chief Executive Officer Jassim Alseddiqi said
- The Tadawul All Share Index gained 0.8%
- Saudi Arabia administered more than 130,000 vaccinations on Thursday, the highest daily rate since the inoculation campaign began
- Non-performing loans for Saudi lenders may increase at a slower pace than for peers in the United Arab Emirates, as the deferral program in the kingdom ends in June, Bloomberg Intelligence analyst Edmond Christou writes in a note
- “Residing risk on UAE lenders’ books mean they face bigger NPL hikes, with an 84% performing-loan share vs. Saudi peers’ 88%,” Christou says
Oil sector revival has producers eyeing boom times | Financial Times
Oil sector revival has producers eyeing boom times | Financial Times
If you thought coronavirus had hobbled the oil industry for good, think again. Just a year after a Saudi-Russian price war and the coronavirus pandemic triggered the worst oil crash in decades, a stunning reversal is under way.
It calls to mind the bumper sticker said to adorn half-tons from Texas to Alberta: “Please God, give me one more oil boom, I promise not to piss it all away next time.”
The moment when that pledge is tested suddenly seems closer than anyone expected six months ago. Crude prices, demand, sector equities, and the mood in the oil patch are all rising.
The good news might be too late if you are one of the tens of thousands of people retrenched as oil companies prepared for what many executives feared could be a multiyear downturn. Drawing on the experience of countless booms and busts, the fossil fuel sector took the crisis as a prompt to cut back costs. That has left oil operators, especially in the US, emerging leaner and meaner — just as a wave of cash heads their way.
If you thought coronavirus had hobbled the oil industry for good, think again. Just a year after a Saudi-Russian price war and the coronavirus pandemic triggered the worst oil crash in decades, a stunning reversal is under way.
It calls to mind the bumper sticker said to adorn half-tons from Texas to Alberta: “Please God, give me one more oil boom, I promise not to piss it all away next time.”
The moment when that pledge is tested suddenly seems closer than anyone expected six months ago. Crude prices, demand, sector equities, and the mood in the oil patch are all rising.
The good news might be too late if you are one of the tens of thousands of people retrenched as oil companies prepared for what many executives feared could be a multiyear downturn. Drawing on the experience of countless booms and busts, the fossil fuel sector took the crisis as a prompt to cut back costs. That has left oil operators, especially in the US, emerging leaner and meaner — just as a wave of cash heads their way.
Gulf Equity Markets Rise, Shrugging Off Lower Crude: Inside EM - Bloomberg
Gulf Equity Markets Rise, Shrugging Off Lower Crude: Inside EM - Bloomberg
Dubai’s equities index led gains in the Gulf Sunday as traders focus on the long-term prospect for oil, shrugging off the first week of decline for Brent in two months.
The DFM General Index advanced as much as 0.9% after the city at the weekend announced an urban plan for the next two decades. Gauges in Saudi Arabia, Abu Dhabi, Oman and Kuwait also rose while Qatar’s slipped.
Stock markets in the Gulf followed an increase for an index tracking emerging-market peers last week, sustaining gains even as crude, the region’s biggest export, posted the first weekly retreat since Jan. 15. Higher oil prices have been fueling an increase for shares in the Gulf, particularly in Saudi Arabia, where the main index is trading at the highest level since mid-2015.
“We are still bullish on oil, we see it hitting the $72/b level for Brent in a two-months time,” said Ali Malik, an investment adviser at Bank of Singapore. “It will limit itself at a point, but we are still far away from that point.”
MIDDLE EASTERN MARKETS:
Dubai’s equities index led gains in the Gulf Sunday as traders focus on the long-term prospect for oil, shrugging off the first week of decline for Brent in two months.
The DFM General Index advanced as much as 0.9% after the city at the weekend announced an urban plan for the next two decades. Gauges in Saudi Arabia, Abu Dhabi, Oman and Kuwait also rose while Qatar’s slipped.
Stock markets in the Gulf followed an increase for an index tracking emerging-market peers last week, sustaining gains even as crude, the region’s biggest export, posted the first weekly retreat since Jan. 15. Higher oil prices have been fueling an increase for shares in the Gulf, particularly in Saudi Arabia, where the main index is trading at the highest level since mid-2015.
“We are still bullish on oil, we see it hitting the $72/b level for Brent in a two-months time,” said Ali Malik, an investment adviser at Bank of Singapore. “It will limit itself at a point, but we are still far away from that point.”
MIDDLE EASTERN MARKETS:
- Emaar Properties rose as much as 1.7%, contributing the most to the increase of Dubai’s benchmark, after Dubai unveiled an urban plan for the next two decades that focuses on boosting waterfront acreage
- The plan “should provide a boost to the real-estate sector companies in DFM as they will have a key role in the implementation,” said Vijay Valecha, chief investment officer at Century Financial Consultancy
- Dubai-listed Shuaa Capital plans to announce a deal in Abu Dhabi’s tech sector this week, Chief Executive Officer Jassim Alseddiqi said
- The Tadawul All Share Index jumps to the highest level since June 2015
- Saudi Arabia administered more than 130,000 vaccinations on Thursday, the highest daily rate since the inoculation campaign began
- Non-performing loans for Saudi lenders may increase at a slower pace than for peers in the United Arab Emirates, as the deferral program in the kingdom ends in June, Bloomberg Intelligence analyst Edmond Christou writes in a note
- “Residing risk on UAE lenders’ books mean they face bigger NPL hikes, with an 84% performing-loan share vs. Saudi peers’ 88%,” Christou says
Swiss Ask If Late #Saudi King Broke Law With $100 Million Gift - Bloomberg
Swiss Ask If Late Saudi King Broke Law With $100 Million Gift - Bloomberg
A Swiss prosecutor is probing whether the late Saudi king broke any laws when he transferred $100 million to a fund controlled by fellow royal Juan Carlos I of Spain in 2008.
Last month, a hearing was held behind closed doors in Geneva to discuss a legal opinion that prosecutor Yves Bertossa sought from scholars on whether the payment by the late King Abdullah could constitute a crime under Saudi law, according to documents seen by Bloomberg. Bertossa first solicited the advice in a July 23 letter to the Swiss Institute of Comparative Law.
Bertossa’s request for an opinion came just a month after Spanish Supreme Court prosecutors announced they would investigate whether Juan Carlos, who abdicated and lost his immunity from prosecution in 2014, could be pursued for possible crimes linked to a high-speed train project in Saudi Arabia won by a Spanish-Saudi consortium.
Bertossa’s scrutiny of King Abdullah, the half-brother of the current king, could roil Switzerland’s longstanding role as a preferred destination for Saudi wealth. Middle Eastern investors had 432 billion Swiss francs ($464 billion) stored in the country at the end of 2019, according to the Swiss Bankers Association, nearly a fifth of the total. Saudis flock to Geneva every July and August to avoid the fierce desert heat, staying in luxury villas along Lake Geneva.
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Saudi Arabia's King Abdullah in 2011. Photographer: Chip Somodevilla/Getty Images |
A Swiss prosecutor is probing whether the late Saudi king broke any laws when he transferred $100 million to a fund controlled by fellow royal Juan Carlos I of Spain in 2008.
Last month, a hearing was held behind closed doors in Geneva to discuss a legal opinion that prosecutor Yves Bertossa sought from scholars on whether the payment by the late King Abdullah could constitute a crime under Saudi law, according to documents seen by Bloomberg. Bertossa first solicited the advice in a July 23 letter to the Swiss Institute of Comparative Law.
Bertossa’s request for an opinion came just a month after Spanish Supreme Court prosecutors announced they would investigate whether Juan Carlos, who abdicated and lost his immunity from prosecution in 2014, could be pursued for possible crimes linked to a high-speed train project in Saudi Arabia won by a Spanish-Saudi consortium.
Bertossa’s scrutiny of King Abdullah, the half-brother of the current king, could roil Switzerland’s longstanding role as a preferred destination for Saudi wealth. Middle Eastern investors had 432 billion Swiss francs ($464 billion) stored in the country at the end of 2019, according to the Swiss Bankers Association, nearly a fifth of the total. Saudis flock to Geneva every July and August to avoid the fierce desert heat, staying in luxury villas along Lake Geneva.
#UAE Oil Resale Exception: OPEC Has Been Holed Below the Waterline - Bloomberg
UAE Oil Resale Exception: OPEC Has Been Holed Below the Waterline - Bloomberg
It doesn’t seem much, but the most damaging leaks often don’t. The Organization of Petroleum Exporting Countries has suffered a small crack that could grow to into a rift big enough to sink it.
No, I’m not talking about the bust-up between Saudi Arabia and arch-rival Iran, nor wrangling over Iraq’s repeated failure to abide by its output target under the current production deal. Rather, I’m referring to a decision by the United Arab Emirates, the group’s third biggest producer, to allow its crude to be traded freely on the open market by its initial buyer. That’s an initiative that veteran oil analyst Philip K. Verleger says eventually “could weaken OPEC and the [OPEC+] Coalition.”
Until now, the big OPEC producers of the Persian Gulf — Saudi Arabia, Iraq, Iran, Kuwait and the UAE — have sold their crude under strict terms that dictate where it can be delivered and prevent its resale by the original lifter. That has given them the ability to vary the prices they charge in different parts of the world, depending on local market conditions, and maximize their revenues. A buyer’s failure to adhere to these terms has meant it could be shut out of future purchases.
It doesn’t seem much, but the most damaging leaks often don’t. The Organization of Petroleum Exporting Countries has suffered a small crack that could grow to into a rift big enough to sink it.
No, I’m not talking about the bust-up between Saudi Arabia and arch-rival Iran, nor wrangling over Iraq’s repeated failure to abide by its output target under the current production deal. Rather, I’m referring to a decision by the United Arab Emirates, the group’s third biggest producer, to allow its crude to be traded freely on the open market by its initial buyer. That’s an initiative that veteran oil analyst Philip K. Verleger says eventually “could weaken OPEC and the [OPEC+] Coalition.”
Until now, the big OPEC producers of the Persian Gulf — Saudi Arabia, Iraq, Iran, Kuwait and the UAE — have sold their crude under strict terms that dictate where it can be delivered and prevent its resale by the original lifter. That has given them the ability to vary the prices they charge in different parts of the world, depending on local market conditions, and maximize their revenues. A buyer’s failure to adhere to these terms has meant it could be shut out of future purchases.
Goldman Predicts Plunge in Gulf Borrowing Needs as Oil Rallies - Bloomberg
Goldman Predicts Plunge in Gulf Borrowing Needs as Oil Rallies - Bloomberg
The Gulf Cooperation Council’s borrowing requirements could drop to $10 billion over the next three years from about $270 billion, if oil prices continue to stay elevated, according to Goldman Sachs Group Inc.
If prices for the commodity average $65 a barrel and all else is equal, borrowing needs for the six countries comprising the council would drop 96% from what they’d be if oil traded at $45, Farouk Soussa, an economist at the bank wrote in a report.
Oil prices have rallied almost 80% since the start of November to about $70 a barrel as major economies roll out coronavirus vaccines and the OPEC cartel -- which is dominated by GCC member Saudi Arabia -- implements deep production cuts.
The Gulf Cooperation Council’s borrowing requirements could drop to $10 billion over the next three years from about $270 billion, if oil prices continue to stay elevated, according to Goldman Sachs Group Inc.
If prices for the commodity average $65 a barrel and all else is equal, borrowing needs for the six countries comprising the council would drop 96% from what they’d be if oil traded at $45, Farouk Soussa, an economist at the bank wrote in a report.
Oil prices have rallied almost 80% since the start of November to about $70 a barrel as major economies roll out coronavirus vaccines and the OPEC cartel -- which is dominated by GCC member Saudi Arabia -- implements deep production cuts.
GCC banks to see long-term adverse effects from 2020 shocks | ZAWYA MENA Edition
GCC banks to see long-term adverse effects from 2020 shocks | ZAWYA MENA Edition
The Gulf Cooperation Council (GCC) states will be slow to recover from last year’s sharp recession triggered by the COVID-19 pandemic and low oil prices, according to a global ratings agency.
“We see long-lasting adverse effects from the 2020 shock on GCC economies and banking sectors. Saudi and Qatar's banking sectors will be less impacted than those in the United Arab Emirates (UAE), Oman, and Bahrain, while in Kuwait the story will depend on the evolution of the fiscal impasse,” the S&P Global Ratings said in a new report.
Some banks will post losses in 2021, the report said. Banks suffered a triple shock to profitability in 2020 from lower lending growth, lower-for-longer interest rates, and higher cost of risk. Cost of risk will remain elevated following a jump of 60 percent in 2020 as banks set aside provisions in preparation for more stress.
On the economy front, real GDP contracted sharply in 2020 because of low oil prices and a significant COVID-19-related slump in the hospitality, commerce, and real estate sectors. “We expect oil prices will average $60 for 2021 and 2022 and continued progress on vaccine rollouts but see downside risks from further virus waves.”
Dubai Expo 2020 and the football World Cup in Doha in 2022, as well as hydrocarbon sector recovery, will boost economic growth but it will remain below historical levels. Indeed, most countries will not return to 2019 nominal GDP before 2023, with an even longer road for Saudi Arabia, it said.
The Gulf Cooperation Council (GCC) states will be slow to recover from last year’s sharp recession triggered by the COVID-19 pandemic and low oil prices, according to a global ratings agency.
“We see long-lasting adverse effects from the 2020 shock on GCC economies and banking sectors. Saudi and Qatar's banking sectors will be less impacted than those in the United Arab Emirates (UAE), Oman, and Bahrain, while in Kuwait the story will depend on the evolution of the fiscal impasse,” the S&P Global Ratings said in a new report.
Some banks will post losses in 2021, the report said. Banks suffered a triple shock to profitability in 2020 from lower lending growth, lower-for-longer interest rates, and higher cost of risk. Cost of risk will remain elevated following a jump of 60 percent in 2020 as banks set aside provisions in preparation for more stress.
On the economy front, real GDP contracted sharply in 2020 because of low oil prices and a significant COVID-19-related slump in the hospitality, commerce, and real estate sectors. “We expect oil prices will average $60 for 2021 and 2022 and continued progress on vaccine rollouts but see downside risks from further virus waves.”
Dubai Expo 2020 and the football World Cup in Doha in 2022, as well as hydrocarbon sector recovery, will boost economic growth but it will remain below historical levels. Indeed, most countries will not return to 2019 nominal GDP before 2023, with an even longer road for Saudi Arabia, it said.
$1bln DXBE debt deal will have no financial impact - #Dubai banks | ZAWYA MENA Edition
$1bln DXBE debt deal will have no financial impact - Dubai banks | ZAWYA MENA Edition
Dubai banks have said they do not expect financial fallout from the AED 4.27 billion ($1.16 billion) debt conversion deal between DXB Entertainment (DXBE) and developer Meraas.
Emirates NBD and Dubai Investment Bank both made statements to Dubai Financial Market (DFM) saying they were aware of DXBE’s resolution to transfer its debt to Meraas in exchange for share capital, but no adverse impact was expected.
DXBE, which operates Dubai Parks & Resorts, saw losses widen to AED 7.8 billion in 2020 following months of closures and measures to restrict the spread of COVID-19
Its shareholders agreed to accept the debt deal from Meraas last week.
Dubai banks have said they do not expect financial fallout from the AED 4.27 billion ($1.16 billion) debt conversion deal between DXB Entertainment (DXBE) and developer Meraas.
Emirates NBD and Dubai Investment Bank both made statements to Dubai Financial Market (DFM) saying they were aware of DXBE’s resolution to transfer its debt to Meraas in exchange for share capital, but no adverse impact was expected.
DXBE, which operates Dubai Parks & Resorts, saw losses widen to AED 7.8 billion in 2020 following months of closures and measures to restrict the spread of COVID-19
Its shareholders agreed to accept the debt deal from Meraas last week.
Mideast Stocks: Property shares buoy #Dubai; #Qatar extends losses | ZAWYA MENA Edition
Mideast Stocks: Property shares buoy Dubai; Qatar extends losses | ZAWYA MENA Edition
Major stock markets in the Gulf rose in early trade on Sunday, with indexes in the Dubai leading the gains on the back of their property shares, while Qatar bucked the trend to open lower.
In Dubai, the index opened 0.7% higher, on track to extend gains for a third consecutive session, led by a 0.8% increase in blue-chip developer Emaar Properties, and a 0.6% gain in sharia-compliant lender Dubai Islamic Bank.
Dubai government said on Saturday it plans to increase its tourism and hotel capacity by 134% over the next 20 years, part of a wider plan to make the emirate more competitive as Gulf countries brace for the post-oil era.
The Dubai-2040 plan forecasts 400% increase in beach capacity and 168 square km (65 square miles) of lands allocated to logistics and other businesses, a government statement said.
Saudi's benchmark index advanced 0.6%, buoyed mainly by gains in the financial stocks including Al Rajhi Bank, which gained 1% and National Commercial Bank climbed 1.4%.
Separately, Reuters reported last year in November that Saudi Arabia plans to ease foreign workers' contractual restrictions, abolishing a controversial seven-decade-old sponsorship system known as kafala.
The plans, to take effect in March 2021, aim to make the Saudi labour market more attractive, the deputy minister for human resources said, by granting foreign workers the right to change jobs and leave the country without employers' permission.
The Abu Dhabi index added 0.4%, driven by a 0.8% increase in market heavyweight First Abu Dhabi Bank.
The Qatari index, however, eased 0.2%, on track to extend losses for a third consecutive session, hit by a 1% fall in Qatar National Bank, the Gulf's largest lender.
Major stock markets in the Gulf rose in early trade on Sunday, with indexes in the Dubai leading the gains on the back of their property shares, while Qatar bucked the trend to open lower.
In Dubai, the index opened 0.7% higher, on track to extend gains for a third consecutive session, led by a 0.8% increase in blue-chip developer Emaar Properties, and a 0.6% gain in sharia-compliant lender Dubai Islamic Bank.
Dubai government said on Saturday it plans to increase its tourism and hotel capacity by 134% over the next 20 years, part of a wider plan to make the emirate more competitive as Gulf countries brace for the post-oil era.
The Dubai-2040 plan forecasts 400% increase in beach capacity and 168 square km (65 square miles) of lands allocated to logistics and other businesses, a government statement said.
Saudi's benchmark index advanced 0.6%, buoyed mainly by gains in the financial stocks including Al Rajhi Bank, which gained 1% and National Commercial Bank climbed 1.4%.
Separately, Reuters reported last year in November that Saudi Arabia plans to ease foreign workers' contractual restrictions, abolishing a controversial seven-decade-old sponsorship system known as kafala.
The plans, to take effect in March 2021, aim to make the Saudi labour market more attractive, the deputy minister for human resources said, by granting foreign workers the right to change jobs and leave the country without employers' permission.
The Abu Dhabi index added 0.4%, driven by a 0.8% increase in market heavyweight First Abu Dhabi Bank.
The Qatari index, however, eased 0.2%, on track to extend losses for a third consecutive session, hit by a 1% fall in Qatar National Bank, the Gulf's largest lender.