Oil prices drop 4% as new lockdowns undermine hopes for economic recovery | Reuters
Oil prices fell 4% per barrel on Thursday, extending a string of market weakness on renewed lockdowns in Europe and Asia to head off a rising coronavirus infection rate.
Prices lost much of the gains from the previous session that followed news of a large container ship running aground in the Suez Canal. The ship has still not been freed, but for now the market was shrugging off the blockage, as only a small percentage of the world’s crude is shipped through the canal.
Brent crude fell $2.46, or 3.8%, to settle at $61.95 a barrel. U.S. West Texas Intermediate (WTI) crude fell $2.62, or 4.3%, to settle at $58.56 a barrel.
Countries in Europe are renewing restrictions to curb COVID-19 cases, which will reduce demand from the region. Germany, the largest European economy, saw its biggest increase in coronavirus cases since January.
Thursday, 25 March 2021
Dreyfus deal to help #UAE achieve food security - minister | Reuters
Dreyfus deal to help UAE achieve food security - minister | Reuters
The acquisition of a stake in commodity merchant Louis Dreyfus Company (LDC) by Abu Dhabi’s ADQ is an important part of the emirates’ food security strategy, food and water security minister Mariam bint Mohammed Saeed Hareb Almheiri said.
LDC agreed in November to sell a 45% stake to the state-owned holding company, the first outside investment in the family-owned commodity merchant’s 170-year-old history.
The deal, which is expected to close by mid-2021, includes a long-term supply agreement to sell agricultural commodities to the United Arab Emirates, the companies said.
“It is important as a country that is importing a lot of food that we have a handle on some of the supply chain aspects,” the minister said in an interview.
LDC’s main shareholder Margarita Louis-Dreyfus said on Thursday that the ADQ deal would enable the acceleration of investments as the commodities trader reported a 66% jump in 2020 net profit.
The acquisition of a stake in commodity merchant Louis Dreyfus Company (LDC) by Abu Dhabi’s ADQ is an important part of the emirates’ food security strategy, food and water security minister Mariam bint Mohammed Saeed Hareb Almheiri said.
LDC agreed in November to sell a 45% stake to the state-owned holding company, the first outside investment in the family-owned commodity merchant’s 170-year-old history.
The deal, which is expected to close by mid-2021, includes a long-term supply agreement to sell agricultural commodities to the United Arab Emirates, the companies said.
“It is important as a country that is importing a lot of food that we have a handle on some of the supply chain aspects,” the minister said in an interview.
LDC’s main shareholder Margarita Louis-Dreyfus said on Thursday that the ADQ deal would enable the acceleration of investments as the commodities trader reported a 66% jump in 2020 net profit.
Suez Canal Blocked: What a Lengthy Closure Will Mean for the Oil Price - Bloomberg
Suez Canal Blocked: What a Lengthy Closure Will Mean for the Oil Price - Bloomberg
We’re probably looking now at the longest ever accidental closure of the Suez Canal, the vital trade link from the Middle East and Asia to Europe and North America, but oil markets aren’t blinking.
The container ship Ever Given — 440 meters long, 59 meters wide and riding at a depth of 15.7 meters in the water — is stuck fast, with its bow wedged into the eastern bank of the canal and its stern in the western bank. Photos showing the vessel’s bow right up to the edge of the canal suggest that almost 50 meters of the ship are aground. Getting it free isn’t simple and could take several more days.
The reaction of the oil market has been muted, however, and justifiably so. On Wednesday, when the problem first became fully apparent, crude did recover some of the previous day’s loss, but prices have begun to weaken again. The market was already coming to terms with yet another slowdown in recovery as the pandemic surges again in parts of the world. Renewed lockdowns in France and Italy have dampened the immediate outlook for European oil consumption, while U.K. politicians have warned citizens that it’s too early to consider flying off to sunny southern Europe for their holidays, undermining hopes for a rebound in air travel.
We’re probably looking now at the longest ever accidental closure of the Suez Canal, the vital trade link from the Middle East and Asia to Europe and North America, but oil markets aren’t blinking.
The container ship Ever Given — 440 meters long, 59 meters wide and riding at a depth of 15.7 meters in the water — is stuck fast, with its bow wedged into the eastern bank of the canal and its stern in the western bank. Photos showing the vessel’s bow right up to the edge of the canal suggest that almost 50 meters of the ship are aground. Getting it free isn’t simple and could take several more days.
The reaction of the oil market has been muted, however, and justifiably so. On Wednesday, when the problem first became fully apparent, crude did recover some of the previous day’s loss, but prices have begun to weaken again. The market was already coming to terms with yet another slowdown in recovery as the pandemic surges again in parts of the world. Renewed lockdowns in France and Italy have dampened the immediate outlook for European oil consumption, while U.K. politicians have warned citizens that it’s too early to consider flying off to sunny southern Europe for their holidays, undermining hopes for a rebound in air travel.
#Kuwait’s State Oil Company to Seek Up to $20 Billion of Funding - Bloomberg
Kuwait’s State Oil Company to Seek Up to $20 Billion of Funding - Bloomberg
The state oil company of Kuwait plans to borrow as much as $20 billion over the next five years to make up for an expected shortfall in funding, a person familiar with the matter said.
Kuwait Petroleum Corp. will need the money to maintain the petrostate’s crude-production levels, said the person, who asked not to be named because the information is private.
The borrowing plan underscores how badly Persian Gulf countries were impacted by the drop in crude prices last year as the coronavirus pandemic spread and energy demand plunged.
The company remits almost everything it generates from crude sales to the OPEC member’s government. It then gets reimbursed in installments to fund capital expenditure, mainly for upstream operations and investments in oil fields. The firm may face a deficit of 6 billion dinars ($19.9 billion) over five years, though it hopes to minimize the gap by becoming more efficient, the person said.
The state oil company of Kuwait plans to borrow as much as $20 billion over the next five years to make up for an expected shortfall in funding, a person familiar with the matter said.
Kuwait Petroleum Corp. will need the money to maintain the petrostate’s crude-production levels, said the person, who asked not to be named because the information is private.
The borrowing plan underscores how badly Persian Gulf countries were impacted by the drop in crude prices last year as the coronavirus pandemic spread and energy demand plunged.
The company remits almost everything it generates from crude sales to the OPEC member’s government. It then gets reimbursed in installments to fund capital expenditure, mainly for upstream operations and investments in oil fields. The firm may face a deficit of 6 billion dinars ($19.9 billion) over five years, though it hopes to minimize the gap by becoming more efficient, the person said.
#Dubai developer GGICO in talks with lenders to renegotiate Dh2.92b in loans | Markets – Gulf News
Dubai developer GGICO in talks with lenders to renegotiate Dh2.92b in loans | Markets – Gulf News
Accumulated losses at Dubai-based Gulf General Investment Co. has crossed Dh1.67 billion – which is a whopping 93.35 per cent of the share capital. It will now start a capital reduction programme to offset the losses.
The Board of Directors have now come up with a set of measures to tackle the losses and steer the company – which is into real estate, manufacturing as well as in other sectors – back into the black. The measures include:
• Reduce the paid up capital;
• Swap assets to settle a sizeable portion of the liabilities;
• Settle existing loans by selling assets to lenders; and
• Focus on ‘profit-making’ investments’.
The losses were brought about because of the general decline in the fair value of investments – an issue that has cropped up for other listed companies as well. Also hurting GGICO was the operational dip in some of its key subsidiaries.
The combined borrowings as of end December 2020 was Dh2.92 billion, “which is payable within one year from the reporting date,” a statement said.
Accumulated losses at Dubai-based Gulf General Investment Co. has crossed Dh1.67 billion – which is a whopping 93.35 per cent of the share capital. It will now start a capital reduction programme to offset the losses.
The Board of Directors have now come up with a set of measures to tackle the losses and steer the company – which is into real estate, manufacturing as well as in other sectors – back into the black. The measures include:
• Reduce the paid up capital;
• Swap assets to settle a sizeable portion of the liabilities;
• Settle existing loans by selling assets to lenders; and
• Focus on ‘profit-making’ investments’.
The losses were brought about because of the general decline in the fair value of investments – an issue that has cropped up for other listed companies as well. Also hurting GGICO was the operational dip in some of its key subsidiaries.
The combined borrowings as of end December 2020 was Dh2.92 billion, “which is payable within one year from the reporting date,” a statement said.
#AbuDhabi's Mubadala buys refinery assets from Brazil's Petrobras for $1.65bn | The National
Abu Dhabi's Mubadala buys refinery assets from Brazil's Petrobras for $1.65bn | The National
Abu Dhabi's Mubadala Group bought a refinery and logistics assets from Brazil's state oil company Petrobras for $1.65 billion, as the company looks to expand its oil and gas assets abroad.
The transaction included the sale of the Landulpho Alves Refinery as well its associated logistics assets in the state of Bahia.
The refinery, one of Brazil's oldest, is also its third largest. It includes an integrated petrochemical complex, which is one of the largest in the southern hemisphere.
It is capable of refining liquefied petroleum gas, gasoline, diesel fuel and lubricants. It has a capacity of 333,000 barrels per day.
Mubadala has exposure to the associated chemicals assets through its investment in Spanish group Cepsa, in which it is the majority shareholder with a 63 per cent stake.
Abu Dhabi's Mubadala Group bought a refinery and logistics assets from Brazil's state oil company Petrobras for $1.65 billion, as the company looks to expand its oil and gas assets abroad.
The transaction included the sale of the Landulpho Alves Refinery as well its associated logistics assets in the state of Bahia.
The refinery, one of Brazil's oldest, is also its third largest. It includes an integrated petrochemical complex, which is one of the largest in the southern hemisphere.
It is capable of refining liquefied petroleum gas, gasoline, diesel fuel and lubricants. It has a capacity of 333,000 barrels per day.
Mubadala has exposure to the associated chemicals assets through its investment in Spanish group Cepsa, in which it is the majority shareholder with a 63 per cent stake.
Gold hub #UAE toughens fight against financial crime | Reuters
Gold hub UAE toughens fight against financial crime | Reuters
The United Arab Emirates, one of the world’s largest gold hubs, is strengthening its defences against financial crime, including new restrictions on the movement of cash and precious metals, the Gulf state said on Thursday.
The steps follow a 2018 tightening of financial regulations that sought to dispel a view among some foreign investors that the country is an illicit money hot spot.
Detailing the latest measures, the UAE Executive Office to Combat Money Laundering and Terrorist Financing said the tools include one for submitting suspicious banking reports, a unified electronic customs platform and a programme restricting movement of cash, stones and precious metals before and after arrival.
“Through the adoption of these technical controls, the Executive Office hopes to strengthen the UAE’s efforts to curb illicit flows of funds, promote asset recovery, and combat all forms of transnational financial crime,” the Office, set up in February, said in a statement.
The United Arab Emirates, one of the world’s largest gold hubs, is strengthening its defences against financial crime, including new restrictions on the movement of cash and precious metals, the Gulf state said on Thursday.
The steps follow a 2018 tightening of financial regulations that sought to dispel a view among some foreign investors that the country is an illicit money hot spot.
Detailing the latest measures, the UAE Executive Office to Combat Money Laundering and Terrorist Financing said the tools include one for submitting suspicious banking reports, a unified electronic customs platform and a programme restricting movement of cash, stones and precious metals before and after arrival.
“Through the adoption of these technical controls, the Executive Office hopes to strengthen the UAE’s efforts to curb illicit flows of funds, promote asset recovery, and combat all forms of transnational financial crime,” the Office, set up in February, said in a statement.
Covid pandemic to have 'long-lasting' impact on Gulf banking sector, says S&P - Arabianbusiness
Covid pandemic to have 'long-lasting' impact on Gulf banking sector, says S&P - Arabianbusiness
GCC banks' operating performance will remain constrained by the protracted recovery in key economic sectors and low interest rates despite the recent rally in oil prices and brighter near-term outlook, according to S&P Global Ratings.
In a new research note, S&P said it expects GDP growth in the Gulf countries will slowly recover from last year's sharp recession triggered by the Covid-19 pandemic and low oil prices.
However, the ratings agency added that it sees long-lasting adverse effects from the 2020 shock on GCC economies and banking sectors.
Over the past 12 months, GCC banks have set aside $10.9 billion of additional credit loss provisions for the expected negative impact of the Covid-19 pandemic and drop in oil prices on their economies.
Saudi and Qatar's banking sectors will be less affected than those in the UAE, Oman, and Bahrain, while in Kuwait the story will depend on the evolution of the fiscal impasse, S&P said.
GCC banks' operating performance will remain constrained by the protracted recovery in key economic sectors and low interest rates despite the recent rally in oil prices and brighter near-term outlook, according to S&P Global Ratings.
In a new research note, S&P said it expects GDP growth in the Gulf countries will slowly recover from last year's sharp recession triggered by the Covid-19 pandemic and low oil prices.
However, the ratings agency added that it sees long-lasting adverse effects from the 2020 shock on GCC economies and banking sectors.
Over the past 12 months, GCC banks have set aside $10.9 billion of additional credit loss provisions for the expected negative impact of the Covid-19 pandemic and drop in oil prices on their economies.
Saudi and Qatar's banking sectors will be less affected than those in the UAE, Oman, and Bahrain, while in Kuwait the story will depend on the evolution of the fiscal impasse, S&P said.
#Saudi PIF transfers stakes in food, farm cos to SALIC | Reuters
Saudi PIF transfers stakes in food, farm cos to SALIC | Reuters
The Public Investment Fund, Saudi Arabia’s wealth fund, has transferred its stakes in Almarai, the National Agricultural Development Co and the Saudi Fisheries Co to Saudi Agricultural and Livestock Investment Co (SALIC).
The transfer is aimed at leveraging synergies within its food and agriculture portfolio and enabling SALIC to stimulate growth in the sector, the PIF said in a statement on Thursday.
PIF transferred its 16.32% stake in dairy products firm Almarai, 20% stake in the National Agricultural Development Company and nearly 40% stake in the Saudi Fisheries Company to its wholly-owned unit SALIC.
“The company’s (SALIC) contributions will be especially significant in the wake of the Covid-19 pandemic, which re-emphasized the strategic importance of supporting the stability of food supply chain,” PIF said.
The move it said is in line with PIF’s Strategy 2021-2025, which focuses on unlocking the capabilities of promising non-oil sectors to enhance the kingdom’s efforts to diversify revenue sources, including in the food and agriculture sector.
Neighbouring Abu Dhabi has also been consolidating its farming sector under state-owned ADQ, which has built up a portfolio of food and agriculture businesses and last year agreed to acquire an indirect 45% equity stake in commodities trader Louis Dreyfus Co.
The Public Investment Fund, Saudi Arabia’s wealth fund, has transferred its stakes in Almarai, the National Agricultural Development Co and the Saudi Fisheries Co to Saudi Agricultural and Livestock Investment Co (SALIC).
The transfer is aimed at leveraging synergies within its food and agriculture portfolio and enabling SALIC to stimulate growth in the sector, the PIF said in a statement on Thursday.
PIF transferred its 16.32% stake in dairy products firm Almarai, 20% stake in the National Agricultural Development Company and nearly 40% stake in the Saudi Fisheries Company to its wholly-owned unit SALIC.
“The company’s (SALIC) contributions will be especially significant in the wake of the Covid-19 pandemic, which re-emphasized the strategic importance of supporting the stability of food supply chain,” PIF said.
The move it said is in line with PIF’s Strategy 2021-2025, which focuses on unlocking the capabilities of promising non-oil sectors to enhance the kingdom’s efforts to diversify revenue sources, including in the food and agriculture sector.
Neighbouring Abu Dhabi has also been consolidating its farming sector under state-owned ADQ, which has built up a portfolio of food and agriculture businesses and last year agreed to acquire an indirect 45% equity stake in commodities trader Louis Dreyfus Co.
MIDEAST STOCKS- #Dubai index leads most of Gulf lower; Egypt extends gains | Nasdaq
MIDEAST STOCKS-Dubai index leads most of Gulf lower; Egypt extends gains | Nasdaq
Most Gulf markets ended lower on Thursday as new coronavirus restrictions in Europe revived worries about demand for oil products, while stocks trading ex-dividend hit bourses in United Arab Emirates.
In Dubai, the main share index .DFMGI dropped 0.8%, with sharia-compliant lender Dubai Islamic Bank DISB.DU sliding 4.2%, its biggest intraday fall since mid-December, as the stock went ex-dividend.
The index snapped three consecutive weekly gains, shedding 4.2% during the week.
Dubai's economy, which is the region's most diversified, was one of the hardest hit by the pandemic. S&P estimated that GDP contracted 10.8% last year.
The Abu Dhabi index .ADI fell 0.3%, weakened by a 2.7% decline in telecoms firm Etisalat ETISALAT.AD trading ex-dividend.
UAE bourses face a challenge as local firms increasingly seek fast-track listings in New York through mergers with special purpose acquisition companies (SPACs).
The UAE over recent months has introduced reforms, such as cutting trading fees, to try to make its equity markets more attractive.
But such measures may not be enough. SPAC mergers have become more attractive to Gulf companies that find traditional IPOs more complicated and expensive, but they are uncertain to succeed as investors are cautious.
Saudi Arabia's benchmark index .TASI concluded 0.5% lower, with Al Rajhi Bank 1120.SE losing 0.5%, while National Commercial Bank 1180.SE was down over 1%.
The index also logged a weekly loss of 0.7%, declining in three of the last five trading days.
In Qatar, the index .QSI lost 0.4%, driven down by a 1.1% fall in petrochemical firm Industries Qatar IQCD.QA and 1.9% decrease in Mesaieed Petrochemical MPHC.QA, which traded ex-dividend.
Most Gulf markets ended lower on Thursday as new coronavirus restrictions in Europe revived worries about demand for oil products, while stocks trading ex-dividend hit bourses in United Arab Emirates.
In Dubai, the main share index .DFMGI dropped 0.8%, with sharia-compliant lender Dubai Islamic Bank DISB.DU sliding 4.2%, its biggest intraday fall since mid-December, as the stock went ex-dividend.
The index snapped three consecutive weekly gains, shedding 4.2% during the week.
Dubai's economy, which is the region's most diversified, was one of the hardest hit by the pandemic. S&P estimated that GDP contracted 10.8% last year.
The Abu Dhabi index .ADI fell 0.3%, weakened by a 2.7% decline in telecoms firm Etisalat ETISALAT.AD trading ex-dividend.
UAE bourses face a challenge as local firms increasingly seek fast-track listings in New York through mergers with special purpose acquisition companies (SPACs).
The UAE over recent months has introduced reforms, such as cutting trading fees, to try to make its equity markets more attractive.
But such measures may not be enough. SPAC mergers have become more attractive to Gulf companies that find traditional IPOs more complicated and expensive, but they are uncertain to succeed as investors are cautious.
Saudi Arabia's benchmark index .TASI concluded 0.5% lower, with Al Rajhi Bank 1120.SE losing 0.5%, while National Commercial Bank 1180.SE was down over 1%.
The index also logged a weekly loss of 0.7%, declining in three of the last five trading days.
In Qatar, the index .QSI lost 0.4%, driven down by a 1.1% fall in petrochemical firm Industries Qatar IQCD.QA and 1.9% decrease in Mesaieed Petrochemical MPHC.QA, which traded ex-dividend.
1MDB Scandal: Judge Deals Setback to US Justice Department With Ruling - Bloomberg
1MDB Scandal: Judge Deals Setback to US Justice Department With Ruling - Bloomberg
A U.S. judge rejected the Justice Department’s attempts to seize $325 million from an oil exploration joint-venture linked to the 1MDB scandal, in a setback for federal prosecutors in a multibillion dollar kleptocracy case.
The U.S. ruling emerged at a London court hearing this week where Petrosaudi Oil Services (Venezuela) Ltd. is battling to win release of hundreds of millions of dollars at the heart of the case.
U.S. District Judge Dale Fischer in Los Angeles earlier this month granted Petrosaudi’s request to dismiss the Justice Department’s forfeiture claim, ruling that the government had failed to make an adequate allegation between the money and any criminal offense. The Justice Department created the Kleptocracy Asset Recovery Initiative in 2010, with the aim of seizing proceeds from foreign corruption.
“It appears that the government would like to take advantage of an inference that one or more PetroSaudi entities were knowingly involved in the theft of the $700 million and the subsequent laundering and cover-up without actually making any allegations to that effect,” Fischer said in her March 9 ruling.
A U.S. judge rejected the Justice Department’s attempts to seize $325 million from an oil exploration joint-venture linked to the 1MDB scandal, in a setback for federal prosecutors in a multibillion dollar kleptocracy case.
The U.S. ruling emerged at a London court hearing this week where Petrosaudi Oil Services (Venezuela) Ltd. is battling to win release of hundreds of millions of dollars at the heart of the case.
U.S. District Judge Dale Fischer in Los Angeles earlier this month granted Petrosaudi’s request to dismiss the Justice Department’s forfeiture claim, ruling that the government had failed to make an adequate allegation between the money and any criminal offense. The Justice Department created the Kleptocracy Asset Recovery Initiative in 2010, with the aim of seizing proceeds from foreign corruption.
“It appears that the government would like to take advantage of an inference that one or more PetroSaudi entities were knowingly involved in the theft of the $700 million and the subsequent laundering and cover-up without actually making any allegations to that effect,” Fischer said in her March 9 ruling.
Column: Australia's natural gas industry frets about supply. They should worry about demand | Reuters
Column: Australia's natural gas industry frets about supply. They should worry about demand | Reuters
Australia, the world’s largest exporter of liquefied natural gas, is facing a dilemma when it comes to domestic demand for the fuel, as the government’s plans for a gas-fired economic recovery run into some confronting realities.
Domestic gas consumers are facing a shortfall in supply within two to three years, and the exploration and production industry is increasingly warning it will be difficult, if not nearly impossible to boost output in the time available.
It may seem incongruous that a country that has in the last 10 years overtaken Qatar to claim the crown as the world’s biggest shipper of LNG is facing a shortfall in supply that threatens an already under pressure manufacturing base.
But a combination of over-investment in LNG export terminals on the populous east coast, restrictive government policies in some states and at a federal level and Australia’s challenging geology and vast distances now threaten to radically re-shape the country’s natural gas sector.
The message from speaker after speaker at this week’s Australian Domestic Gas Outlook (ADGO) conference in Sydney was consistent.
There isn’t enough natural gas to meet demand, what gas there is to be found and developed is likely to be considerably more expensive that the discoveries of the past, and what new gas can be brought to market can’t be delivered fast enough.
Australia, the world’s largest exporter of liquefied natural gas, is facing a dilemma when it comes to domestic demand for the fuel, as the government’s plans for a gas-fired economic recovery run into some confronting realities.
Domestic gas consumers are facing a shortfall in supply within two to three years, and the exploration and production industry is increasingly warning it will be difficult, if not nearly impossible to boost output in the time available.
It may seem incongruous that a country that has in the last 10 years overtaken Qatar to claim the crown as the world’s biggest shipper of LNG is facing a shortfall in supply that threatens an already under pressure manufacturing base.
But a combination of over-investment in LNG export terminals on the populous east coast, restrictive government policies in some states and at a federal level and Australia’s challenging geology and vast distances now threaten to radically re-shape the country’s natural gas sector.
The message from speaker after speaker at this week’s Australian Domestic Gas Outlook (ADGO) conference in Sydney was consistent.
There isn’t enough natural gas to meet demand, what gas there is to be found and developed is likely to be considerably more expensive that the discoveries of the past, and what new gas can be brought to market can’t be delivered fast enough.
#SaudiArabia seeks $420bln foreign investments in infrastructure and transportation: Al-Falih | ZAWYA MENA Edition
Saudi Arabia seeks $420bln foreign investments in infrastructure and transportation: Al-Falih | ZAWYA MENA Edition
Saudi Arabia’s infrastructure and transportation sectors are seeking to attract around $420 billion in foreign investments over the next decade, said Saudi Investment Minister Khalid Al-Falih on Tuesday.
As part of Vision 2030, foreign investments in the Kingdom are projected to reach $3 trillion.
Al-Falih made the remarks US-Saudi Arabia Business Leaders 2021 Virtual Forum, Asharq Al-Awsat reported.
At the two-day event, which was organized by the US Chamber of Commerce in Washington, Al-Falih exhorted US businesses to invest in Saudi Arabia as the Kingdom a variety of opportunities across different sectors that are attractive.
“Saudi Arabia is opening up multiple new industries as an integral part of the Vision 2030 transformation, including clean energy, mining, mobility and logistics, tourism and quality of life, ICT, healthcare and life sciences & biotech,” he said.
Saudi Arabia’s infrastructure and transportation sectors are seeking to attract around $420 billion in foreign investments over the next decade, said Saudi Investment Minister Khalid Al-Falih on Tuesday.
As part of Vision 2030, foreign investments in the Kingdom are projected to reach $3 trillion.
Al-Falih made the remarks US-Saudi Arabia Business Leaders 2021 Virtual Forum, Asharq Al-Awsat reported.
At the two-day event, which was organized by the US Chamber of Commerce in Washington, Al-Falih exhorted US businesses to invest in Saudi Arabia as the Kingdom a variety of opportunities across different sectors that are attractive.
“Saudi Arabia is opening up multiple new industries as an integral part of the Vision 2030 transformation, including clean energy, mining, mobility and logistics, tourism and quality of life, ICT, healthcare and life sciences & biotech,” he said.
#Saudi Bank AlBilad to issue $800mln riyal-denominated sukuk | ZAWYA MENA Edition
Saudi Bank AlBilad to issue $800mln riyal-denominated sukuk | ZAWYA MENA Edition
Saudi Arabia’s Bank AlBilad will issue a domestic Saudi riyal-denominated Tier 2 sukuk for up to 3 billion riyals ($800 million) by way of private placement in the kingdom.
The potential offer may also include an option for the holders of the 2 billion riyals sukuk, due in 2026, to exchange their investment for the Tier 2 sukuk, subject to the terms and conditions, the lender said in a statement to the Tadawul exchange on Thursday.
Bank AlBilad has mandated Albilad Capital as the sole arranger and dealer for the potential offer.
Last month, the lender reported 8 percent increased net profit to 1.35 billion riyals for the fiscal year 2020 on higher net income from investment and financing activities.
Saudi Arabia’s Bank AlBilad will issue a domestic Saudi riyal-denominated Tier 2 sukuk for up to 3 billion riyals ($800 million) by way of private placement in the kingdom.
The potential offer may also include an option for the holders of the 2 billion riyals sukuk, due in 2026, to exchange their investment for the Tier 2 sukuk, subject to the terms and conditions, the lender said in a statement to the Tadawul exchange on Thursday.
Bank AlBilad has mandated Albilad Capital as the sole arranger and dealer for the potential offer.
Last month, the lender reported 8 percent increased net profit to 1.35 billion riyals for the fiscal year 2020 on higher net income from investment and financing activities.
Oil falls as demand concerns trump Suez Canal disruptions | Reuters
Oil falls as demand concerns trump Suez Canal disruptions | Reuters
Oil prices fell more than 1% as fresh coronavirus lockdowns revived worries about demand for oil products, even as tug boats struggled to move a stranded container ship blocking crude oil carriers in the Suez Canal.
Brent crude futures slid 77 cents, or 1.2%, to $63.64 a barrel at 0736 GMT, after jumping 6% overnight.
U.S. West Texas Intermediate (WTI) crude futures dropped by 87 cents, or 1.4%, to $60.31 a barrel, after climbing 5.9% overnight.
Both benchmarks fell over 2% earlier in the session.
“Oil is shifting lower, and in addition to lockdown woes, the slow uptake in Chinese buying, evidence of rising Iranian exports and clear signals that the physical market was not reflecting the futures market continues to cloud the near term viewfinder,” said Stephen Innes, chief markets strategist at Axi.
Oil prices fell more than 1% as fresh coronavirus lockdowns revived worries about demand for oil products, even as tug boats struggled to move a stranded container ship blocking crude oil carriers in the Suez Canal.
Brent crude futures slid 77 cents, or 1.2%, to $63.64 a barrel at 0736 GMT, after jumping 6% overnight.
U.S. West Texas Intermediate (WTI) crude futures dropped by 87 cents, or 1.4%, to $60.31 a barrel, after climbing 5.9% overnight.
Both benchmarks fell over 2% earlier in the session.
“Oil is shifting lower, and in addition to lockdown woes, the slow uptake in Chinese buying, evidence of rising Iranian exports and clear signals that the physical market was not reflecting the futures market continues to cloud the near term viewfinder,” said Stephen Innes, chief markets strategist at Axi.
Mideast stocks: #UAE bourses fall on ex-dividend stocks; others little changed | Reuters
Mideast stocks: UAE bourses fall on ex-dividend stocks; others little changed | Reuters
Dubai and Abu Dhabi’s stock markets retreated on Thursday, dragged down by firms that traded ex-dividend, while other major Gulf markets were steady in early trade.
In Dubai, the main share index declined 1%, with Dubai Islamic Bank, the United Arab Emirates’ (UAE) largest sharia-compliant lender, losing 4% as the stock traded ex-dividend.
Elsewhere, Dubai Investments was down 1.2%
The Abu Dhabi index dropped 1.1%, hit by a 4.4% fall in telecoms firm Etisalat after the stock went ex-dividend.
UAE bourses are facing a fresh challenge as local firms increasingly seek fast-track listings in New York through mergers with special purpose acquisition companies (SPACs).
The UAE recently introduced a raft of reforms, such as a cut in trading fees, aimed at making its equity markets more attractive.
But such measures may not be enough. SPAC mergers have become more attractive to Gulf companies which find traditional IPOs more complicated and expensive, yet uncertain to succeed amid lacklustre investor appetite.
Saudi Arabia’s benchmark index rose 0.2%, with Samba Financial Group gaining 1%, and Riyad Bank rising 0.8%.
In Qatar, the benchmark index edged up 0.1%, helped by a 0.8% increase in petrochemicals maker Industries Qatar.
The index’s gains were capped by losses at Mesaieed Petrochemical, which traded ex-dividend.
Dubai and Abu Dhabi’s stock markets retreated on Thursday, dragged down by firms that traded ex-dividend, while other major Gulf markets were steady in early trade.
In Dubai, the main share index declined 1%, with Dubai Islamic Bank, the United Arab Emirates’ (UAE) largest sharia-compliant lender, losing 4% as the stock traded ex-dividend.
Elsewhere, Dubai Investments was down 1.2%
The Abu Dhabi index dropped 1.1%, hit by a 4.4% fall in telecoms firm Etisalat after the stock went ex-dividend.
UAE bourses are facing a fresh challenge as local firms increasingly seek fast-track listings in New York through mergers with special purpose acquisition companies (SPACs).
The UAE recently introduced a raft of reforms, such as a cut in trading fees, aimed at making its equity markets more attractive.
But such measures may not be enough. SPAC mergers have become more attractive to Gulf companies which find traditional IPOs more complicated and expensive, yet uncertain to succeed amid lacklustre investor appetite.
Saudi Arabia’s benchmark index rose 0.2%, with Samba Financial Group gaining 1%, and Riyad Bank rising 0.8%.
In Qatar, the benchmark index edged up 0.1%, helped by a 0.8% increase in petrochemicals maker Industries Qatar.
The index’s gains were capped by losses at Mesaieed Petrochemical, which traded ex-dividend.