IMF warns on rising debt risks in virus-hit Middle East, Central Asia | Reuters
The International Monetary Fund said on Sunday countries in the Middle East and Central Asia need to curb their financing requirements, as a surge in government debt, exacerbated by the pandemic, threatens recovery prospects.
The region, which includes around 30 countries from Mauritania to Kazakhstan, saw an economic rebound in the third quarter as countries relaxed measures to contain the new coronavirus.
But the outlook remains highly uncertain and recovery paths will diverge depending on the speed of vaccinations, reliance on heavily impacted sectors, such as tourism, and countries’ fiscal policy.
“Recovery has started, but recovery has started in an uneven, uncertain way,” Jihad Azour, director of the Middle East and Central Asia Department at the IMF, told Reuters.
“The outlook is uncertain because the legacies of the pre-COVID-19 are still there, especially for countries who have high levels of debt.”
Sunday, 11 April 2021
#Qatar National Bank's first-quarter net profit falls 7% as provisions climb | Reuters
Qatar National Bank's first-quarter net profit falls 7% as provisions climb | Reuters
Qatar National Bank (QNB), the biggest lender in the Gulf, said on Sunday its first quarter net profit fell by 7% from a year earlier to 3.3 billion riyals ($906 million) as it booked 1.4 billion riyals in “precautionary” loan loss provisions.
The bank’s total assets grew by 8% from a year earlier to 1.042 trillion riyals at the end of March, the bank said in a statement. That growth was mainly due to a 2% increase in loans advances to 721 billion riyals.
QNB’s ratio of non-performing loans rose to 2.2% at the end of the quarter from 1.9% at the end of March 2020.
It said its loan to deposit ratio of 96.1% was “healthy” and complemented by conservative credit underwriting in the first quarter.
Qatar National Bank (QNB), the biggest lender in the Gulf, said on Sunday its first quarter net profit fell by 7% from a year earlier to 3.3 billion riyals ($906 million) as it booked 1.4 billion riyals in “precautionary” loan loss provisions.
The bank’s total assets grew by 8% from a year earlier to 1.042 trillion riyals at the end of March, the bank said in a statement. That growth was mainly due to a 2% increase in loans advances to 721 billion riyals.
QNB’s ratio of non-performing loans rose to 2.2% at the end of the quarter from 1.9% at the end of March 2020.
It said its loan to deposit ratio of 96.1% was “healthy” and complemented by conservative credit underwriting in the first quarter.
Emaar Names Female to Board as #UAE Pushes for Gender Diversity - Bloomberg
Emaar Names Female to Board as UAE Pushes for Gender Diversity - Bloomberg
Emaar Properties PJSC appointed a female to its board as the largest listed developer in Dubai complies with a new rule to boost gender diversity in the United Arab Emirates.
Eman Abdulrazzaq, who is currently the group chief human resource officer at Emirates NBD PJSC, will join eight others on Emaar’s board, according to a statement. Before that, she was the regional head of strategy, planning and chief of staff at HSBC Bank Middle East, according to Emaar.
The UAE’s market regulator last month said it will require at least one female director on the boards of all listed companies as firms around the world face pressure to boost gender diversity. The move was aimed at empowering Emirati women and encouraging them to play a greater role on the boards of listed companies, it said.
Emaar Properties PJSC appointed a female to its board as the largest listed developer in Dubai complies with a new rule to boost gender diversity in the United Arab Emirates.
Eman Abdulrazzaq, who is currently the group chief human resource officer at Emirates NBD PJSC, will join eight others on Emaar’s board, according to a statement. Before that, she was the regional head of strategy, planning and chief of staff at HSBC Bank Middle East, according to Emaar.
The UAE’s market regulator last month said it will require at least one female director on the boards of all listed companies as firms around the world face pressure to boost gender diversity. The move was aimed at empowering Emirati women and encouraging them to play a greater role on the boards of listed companies, it said.
Heathrow Plan to Raise $3.8 Billion Challenged, Telegraph Says - Bloomberg
Heathrow Plan to Raise $3.8 Billion Challenged, Telegraph Says - Bloomberg
London’s Heathrow faces opposition from some board members to its plan to raise 2.8 billion pounds ($3.8 billion) from airlines and customers by increasing airport prices, the Telegraph newspaper reported.
State-backed Qatar Airways, whose owner is also Heathrow’s second-biggest shareholder, said the plan is “unreasonable, not in the consumer interest and should be rejected,” according to the report. The airline’s top executive, Akbar Al Baker, is a representative for the state of Qatar on Heathrow’s board of directors.
Heathrow’s demands to change a complex regulatory framework so it could recoup losses caused by the pandemic have been rejected by the Civil Aviation Authority, the newspaper said. A spokesman for Heathrow said the regulatory adjustment is needed to lower prices for consumers, according to the Telegraph.
While all airlines and airports have taken a battering in the coronavirus crisis, Heathrow has been hit particularly hard since it relies on long-haul markets that have all but been wiped out. Passenger volumes have fallen to the lowest level since 1966 due to the ban on non-essential travel and quarantine rules. The airport posted a 2-billion-pound pretax loss for 2020.
Airports including Heathrow, as well as operators of air traffic control systems, have indicated they are seeking to recover lost revenue with “monopolistic behaviors,” according to Willie Walsh, the director general of the International Air Transport Association and the former CEO of IAG SA.
IATA will lobby regulators to step in and prevent fee hikes that airlines can’t afford after a year in crisis, he said earlier this month.
Qatar Airways owns a 25% stake in IAG, whose British Airways is the largest operator at Heathrow.
London’s Heathrow faces opposition from some board members to its plan to raise 2.8 billion pounds ($3.8 billion) from airlines and customers by increasing airport prices, the Telegraph newspaper reported.
State-backed Qatar Airways, whose owner is also Heathrow’s second-biggest shareholder, said the plan is “unreasonable, not in the consumer interest and should be rejected,” according to the report. The airline’s top executive, Akbar Al Baker, is a representative for the state of Qatar on Heathrow’s board of directors.
Heathrow’s demands to change a complex regulatory framework so it could recoup losses caused by the pandemic have been rejected by the Civil Aviation Authority, the newspaper said. A spokesman for Heathrow said the regulatory adjustment is needed to lower prices for consumers, according to the Telegraph.
While all airlines and airports have taken a battering in the coronavirus crisis, Heathrow has been hit particularly hard since it relies on long-haul markets that have all but been wiped out. Passenger volumes have fallen to the lowest level since 1966 due to the ban on non-essential travel and quarantine rules. The airport posted a 2-billion-pound pretax loss for 2020.
Airports including Heathrow, as well as operators of air traffic control systems, have indicated they are seeking to recover lost revenue with “monopolistic behaviors,” according to Willie Walsh, the director general of the International Air Transport Association and the former CEO of IAG SA.
IATA will lobby regulators to step in and prevent fee hikes that airlines can’t afford after a year in crisis, he said earlier this month.
Qatar Airways owns a 25% stake in IAG, whose British Airways is the largest operator at Heathrow.
Major Gulf markets end mixed; financials weigh on #Saudi | Reuters
Major Gulf markets end mixed; financials weigh on Saudi | Reuters
Major stock markets in the Gulf ended mixed on Sunday, with the Saudi index pressured by financial shares amid falling oil prices, while Dubai was supported by property stocks.
Oil prices settled lower on Friday and lost around 2% on the week as production increases and renewed COVID-19 lockdowns in some countries offset optimism about a recovery in fuel demand. [O/R]
Moves in oil prices are a key catalyst for the Gulf region’s financial markets.
Saudi Arabia’s benchmark index declined 0.7%, hit by a 1.9% fall in Al Rajhi Bank and a 2% slide in Saudi National Bank.
Elsewhere, Saudi Aramco eased 0.1%, despite the company agreeing a $12.4 billion deal to sell a stake in its pipelines.
In Dubai, the main share index finished 0.4% higher, led by a 1.9% rise in Emaar Properties and a 2.3% increase in its unit Emaar Malls.
The managing director of Emaar Properties, Dubai’s largest listed real estate developer, on Thursday said the company achieved first-quarter sales of 6 billion dirhams ($1.63 billion), Al Arabiya reported.
Mohamed Alabbar told the Saudi news outlet this was against sales of 2.5 billion dirhams in the same period last year. He said the numbers were promising and the property market has seen increased demand, particularly for villas, townhouses and homes with sea views.
In Abu Dhabi, the index added 0.2%, helped by a 0.7% increase in telecoms group Etisalat and 0.1% gain in the country’s largest lender First Abu Dhabi Bank.
Separately, Abu Dhabi National Oil Company is considering listing its drilling business on the local stock market, Reuters reported on Thursday, citing three sources familiar with the matter.
The state oil group said its drilling company is the largest in the Middle East.
The Qatari index gained 0.2%, with petrochemical company Industries Qatar rising 1.4%, while Qatar National Bank (QNB) was up 0.2%.
After trading hours, QNB, the biggest lender in the Gulf, reported its first quarter net profit of 3.3 billion riyals, ($906.32 million) down by 7% from a year earlier as it booked 1.4 billion riyals in “precautionary” loan-loss provisions.
Major stock markets in the Gulf ended mixed on Sunday, with the Saudi index pressured by financial shares amid falling oil prices, while Dubai was supported by property stocks.
Oil prices settled lower on Friday and lost around 2% on the week as production increases and renewed COVID-19 lockdowns in some countries offset optimism about a recovery in fuel demand. [O/R]
Moves in oil prices are a key catalyst for the Gulf region’s financial markets.
Saudi Arabia’s benchmark index declined 0.7%, hit by a 1.9% fall in Al Rajhi Bank and a 2% slide in Saudi National Bank.
Elsewhere, Saudi Aramco eased 0.1%, despite the company agreeing a $12.4 billion deal to sell a stake in its pipelines.
In Dubai, the main share index finished 0.4% higher, led by a 1.9% rise in Emaar Properties and a 2.3% increase in its unit Emaar Malls.
The managing director of Emaar Properties, Dubai’s largest listed real estate developer, on Thursday said the company achieved first-quarter sales of 6 billion dirhams ($1.63 billion), Al Arabiya reported.
Mohamed Alabbar told the Saudi news outlet this was against sales of 2.5 billion dirhams in the same period last year. He said the numbers were promising and the property market has seen increased demand, particularly for villas, townhouses and homes with sea views.
In Abu Dhabi, the index added 0.2%, helped by a 0.7% increase in telecoms group Etisalat and 0.1% gain in the country’s largest lender First Abu Dhabi Bank.
Separately, Abu Dhabi National Oil Company is considering listing its drilling business on the local stock market, Reuters reported on Thursday, citing three sources familiar with the matter.
The state oil group said its drilling company is the largest in the Middle East.
The Qatari index gained 0.2%, with petrochemical company Industries Qatar rising 1.4%, while Qatar National Bank (QNB) was up 0.2%.
After trading hours, QNB, the biggest lender in the Gulf, reported its first quarter net profit of 3.3 billion riyals, ($906.32 million) down by 7% from a year earlier as it booked 1.4 billion riyals in “precautionary” loan-loss provisions.
Mideast Two-Year Financing Needs Rise to $919 Billion, IMF Says - Bloomberg
Mideast Two-Year Financing Needs Rise to $919 Billion, IMF Says - Bloomberg
Financing needs in the Middle East and North Africa are expected to reach $919 billion for this year and next as the region seeks to recover from the coronavirus pandemic, according to the International Monetary Fund.
In an updated outlook published Sunday, it said public-financing requirements were likely to remain above 15% of gross domestic product in most parts of the region through the end of 2022.
The global lender revised its MENA growth projections upward to 4% in 2021, from an earlier estimate of 3.1%. The IMF expects output to expand 3.7% next year, but the improvement will ultimately be determined by the speed of vaccine rollouts, said Jihad Azour, director for the region.
“The recovery has started, but it has started on a divergent path,” he said in an interview. “Our first message is countries need to accelerate vaccinations, give it the first priority. Regional cooperation is welcome.”
Financing needs in the Middle East and North Africa are expected to reach $919 billion for this year and next as the region seeks to recover from the coronavirus pandemic, according to the International Monetary Fund.
In an updated outlook published Sunday, it said public-financing requirements were likely to remain above 15% of gross domestic product in most parts of the region through the end of 2022.
The global lender revised its MENA growth projections upward to 4% in 2021, from an earlier estimate of 3.1%. The IMF expects output to expand 3.7% next year, but the improvement will ultimately be determined by the speed of vaccine rollouts, said Jihad Azour, director for the region.
“The recovery has started, but it has started on a divergent path,” he said in an interview. “Our first message is countries need to accelerate vaccinations, give it the first priority. Regional cooperation is welcome.”
#UAE’s Taqa seeks to shine with solar energy push | Financial Times
UAE’s Taqa seeks to shine with solar energy push | Financial Times
 |
The Noor Abu Dhabi solar plant produces enough electricity for around 90,000 homes © TAQA Group From a distance, the 3.4m panels making up the United Arab Emirates’ largest solar power plant look like a massive lake. But Noor Abu Dhabi, nestled between camel farms and rolling sand dunes, is no mirage. The 1.2 gigawatt facility — the world’s largest single-site plant — produces enough electricity for around 90,000 homes. Owned by Taqa, an Abu Dhabi state-backed utility, with Japan’s Marubeni and China’s JinkoSolar, it will celebrate its second anniversary of operations this month. Staff constantly scan for repairs so production can be maximised during daylight hours, while every evening more than 1,400 robotic cleaners wipe the dust from the banks of solar panels to boost efficiency. Noor and another Taqa project — an even larger 2GW solar plant under construction in Al Dhafra, nearer the capital — are emblematic of the company’s ambitions to recast itself as a force in clean energy. It has outlined a new sustainable strategy with a goal for renewables to form 30 per cent of its energy mix, compared with 5 per cent now, and plans to boost domestic power capacity from 18GW to 30GW by 2030. It will set itself a carbon emissions target later this year.  |
#UAE Fund Mubadala May Join $12 Billion Aramco Oil Pipelines Deal - Bloomberg
UAE Fund Mubadala May Join $12 Billion Aramco Oil Pipelines Deal - Bloomberg
Mubadala Investment Co. may join a group investing $12.4 billion in Saudi Aramco’s oil pipelines, according to a spokesperson for the Abu Dhabi wealth fund.
The $232 billion fund is in talks with U.S. investor EIG Global Energy Partners LLC, the lead member of the consortium, the spokesperson said, adding that a final agreement has yet to be reached between the two parties.
Washington-based EIG and Aramco, the world’s largest oil company, announced the deal late Friday. The group will buy 49% of Aramco Oil Pipelines Co., a newly-formed entity with rights to 25 years of payments for crude shipped through the Saudi Arabian firm’s network.
Mubadala Investment Co. may join a group investing $12.4 billion in Saudi Aramco’s oil pipelines, according to a spokesperson for the Abu Dhabi wealth fund.
The $232 billion fund is in talks with U.S. investor EIG Global Energy Partners LLC, the lead member of the consortium, the spokesperson said, adding that a final agreement has yet to be reached between the two parties.
Washington-based EIG and Aramco, the world’s largest oil company, announced the deal late Friday. The group will buy 49% of Aramco Oil Pipelines Co., a newly-formed entity with rights to 25 years of payments for crude shipped through the Saudi Arabian firm’s network.
Bank of America Securities' Yazhari on #Saudi Banks' Eyeing Firmer Corporate-Loan Demand - Bloomberg
Bank of America Securities' Yazhari on Saudi Banks' Eyeing Firmer Corporate-Loan Demand - Bloomberg
Hootan Yazhari, Bank of America Securities Managing Director of Frontier Markets, discusses Bloomberg's forecast that Saudi banks' credit may grow 10-11% in 2021-2022 based on consensus aided by mortgages and firmer corporate loan gains starting in the second half of the year. He speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
OPEC Is Cautious About All That Unused Oil Stored Around the World - Bloomberg
OPEC Is Cautious About All That Unused Oil Stored Around the World - Bloomberg
The OPEC+ group of oil producers, led by Saudi Arabia and Russia, may have got inventory levels back up to where they want them, but that doesn’t mean they can take their feet off the brakes on production just yet.
At their last meeting, inauspiciously held on April Fool’s Day, the group set out a path to restore some of their shut-down production over the next three months. The easing, but not yet the ending, of output curbs reflects a more optimistic view of demand for oil as the northern hemisphere moves into its summer months.
The output increases are relatively modest — 350,000 barrels a day in May, the same in June and another 440,000 barrels in July. On top of that, Saudi Arabia will gradually restore the additional 1 million barrels a day that it cut unilaterally in February.
But by the end of July, although the producers will have added almost 2.3 million barrels a day to supply since March, they will still only be pumping what they’d originally planned for January. And they will still be withholding almost 60% of the production they cut a year ago.
The strength of oil prices owes a lot to the group’s discipline and its willingness to delay the easing of output cuts, even as it neared its self-set target of reducing commercial oil stockpiles in OECD countries to their average 2014-2019 level.
According to the latest monthly forecast from the U.S. Energy Information Administration, that target has already been reached. But don’t expect that to mean a sudden flood of oil from Saudi Arabia, Russia and their allies. Their approach will, rightly, remain cautious.
The OPEC+ group of oil producers, led by Saudi Arabia and Russia, may have got inventory levels back up to where they want them, but that doesn’t mean they can take their feet off the brakes on production just yet.
At their last meeting, inauspiciously held on April Fool’s Day, the group set out a path to restore some of their shut-down production over the next three months. The easing, but not yet the ending, of output curbs reflects a more optimistic view of demand for oil as the northern hemisphere moves into its summer months.
The output increases are relatively modest — 350,000 barrels a day in May, the same in June and another 440,000 barrels in July. On top of that, Saudi Arabia will gradually restore the additional 1 million barrels a day that it cut unilaterally in February.
But by the end of July, although the producers will have added almost 2.3 million barrels a day to supply since March, they will still only be pumping what they’d originally planned for January. And they will still be withholding almost 60% of the production they cut a year ago.
The strength of oil prices owes a lot to the group’s discipline and its willingness to delay the easing of output cuts, even as it neared its self-set target of reducing commercial oil stockpiles in OECD countries to their average 2014-2019 level.
According to the latest monthly forecast from the U.S. Energy Information Administration, that target has already been reached. But don’t expect that to mean a sudden flood of oil from Saudi Arabia, Russia and their allies. Their approach will, rightly, remain cautious.
#UAE's largest lender unveils payments subsidiary Magnati - Arabianbusiness
UAE's largest lender unveils payments subsidiary Magnati - Arabianbusiness
First Abu Dhabi Bank (FAB), the UAE's largest lender, has completed the carve out of its payments business into a fully owned and operational subsidiary.
The new brand name, Magnati, is built around energy, potential and partnerships, and underscores its mission to transform payments into possibilities, FAB said in a statement.
It added that Magnati will be able to unlock new growth opportunities through a focused and agile model, underpinned by an intelligent payments platform that creates value for customer, government, merchant and institutional clients.
This platform will enable clients to grow their core businesses by monetising data and using next generation technologies such as APIs, artificial intelligence and machine learning capabilities to deliver improved experiences and increased efficiency.
First Abu Dhabi Bank (FAB), the UAE's largest lender, has completed the carve out of its payments business into a fully owned and operational subsidiary.
The new brand name, Magnati, is built around energy, potential and partnerships, and underscores its mission to transform payments into possibilities, FAB said in a statement.
It added that Magnati will be able to unlock new growth opportunities through a focused and agile model, underpinned by an intelligent payments platform that creates value for customer, government, merchant and institutional clients.
This platform will enable clients to grow their core businesses by monetising data and using next generation technologies such as APIs, artificial intelligence and machine learning capabilities to deliver improved experiences and increased efficiency.
Mideast Stocks: Most major Gulf markets fall; #Dubai gains | ZAWYA MENA Edition
Mideast Stocks: Most major Gulf markets fall; Dubai gains | ZAWYA MENA Edition
Stock markets in the Gulf slipped on Sunday after oil prices fell at the end of last week, although Dubai bucked the trend to trade higher.
Oil prices settled lower on Friday and lost around 2% on the week as production increases and renewed COVID-19 lockdowns in some countries offset optimism about a recovery in fuel demand.
The movement in oil prices is a key catalyst for the Gulf region's financial markets.
Saudi Arabia's benchmark index slipped 0.2%, hit by a 1.1% fall in Al Rajhi Bank and a 0.9% decline in Saudi National Bank.
However, oil behemoth Saudi Aramco edged up 0.1%.
It was supported by news that the company had agreed a $12.4 billion deal to sell a 49% stake in its pipelines to a consortium led by U.S.-based EIG Global Energy Partners, although the deal had been expected.
Announced late on Friday, it is the company's largest deal since its record $29.4 billion initial public offering in late 2019.
Dubai's main share index rose 0.5%, led by a 1.6% gain in blue-chip developer Emaar Properties and a 4.2% jump in DAMAC Properties.
In Abu Dhabi, the index fell 0.1%, with aquaculture firm International Holding losing 0.4% and Gulf Pharmaceutical Industries tumbling 7.6%.
Abu Dhabi National Oil Company (ADNOC) is considering listing its drilling business on the local stock market, according to three sources familiar with the matter.
The state oil giant says its drilling company is the largest in the Middle East.
In Qatar, the index dropped 0.7%, pressured by a 5.5% slide in utility firm Qatar Electricity and Water.
Stock markets in the Gulf slipped on Sunday after oil prices fell at the end of last week, although Dubai bucked the trend to trade higher.
Oil prices settled lower on Friday and lost around 2% on the week as production increases and renewed COVID-19 lockdowns in some countries offset optimism about a recovery in fuel demand.
The movement in oil prices is a key catalyst for the Gulf region's financial markets.
Saudi Arabia's benchmark index slipped 0.2%, hit by a 1.1% fall in Al Rajhi Bank and a 0.9% decline in Saudi National Bank.
However, oil behemoth Saudi Aramco edged up 0.1%.
It was supported by news that the company had agreed a $12.4 billion deal to sell a 49% stake in its pipelines to a consortium led by U.S.-based EIG Global Energy Partners, although the deal had been expected.
Announced late on Friday, it is the company's largest deal since its record $29.4 billion initial public offering in late 2019.
Dubai's main share index rose 0.5%, led by a 1.6% gain in blue-chip developer Emaar Properties and a 4.2% jump in DAMAC Properties.
In Abu Dhabi, the index fell 0.1%, with aquaculture firm International Holding losing 0.4% and Gulf Pharmaceutical Industries tumbling 7.6%.
Abu Dhabi National Oil Company (ADNOC) is considering listing its drilling business on the local stock market, according to three sources familiar with the matter.
The state oil giant says its drilling company is the largest in the Middle East.
In Qatar, the index dropped 0.7%, pressured by a 5.5% slide in utility firm Qatar Electricity and Water.
Mideast Stocks Mixed With Earnings in Spotlight: Inside EM - Bloomberg
Mideast Stocks Mixed With Earnings in Spotlight: Inside EM - Bloomberg
Equity markets in the Middle East were mixed in Sunday trade, with investors focusing on first-quarter earnings as reporting season picks up.
Kuwait’s Premier Market Index rose as much as 0.8%, the most in the region, while Qatar’s gauge slipped as much as 0.4%.
Almarai Co. was little changed after the Saudi food and beverage producer reported profit for the first three months of the year that met estimates. Qatar National Bank, the Middle East’s biggest listed lender, is expected to announce its results Sunday. Qatar First Bank is also due to report this week.
Earnings will improve for roughly two-thirds of banks covered in the Middle East and North Africa, according to CI Capital, with aggregate net income up about 11% from a year earlier and 21% from the previous quarter, analysts Sara Boutros and Maryam Saleh wrote in a note. UAE banks are likely to outperform on earnings, while Saudi lenders should stand out on balance sheet growth.
Equity markets in the Middle East were mixed in Sunday trade, with investors focusing on first-quarter earnings as reporting season picks up.
Kuwait’s Premier Market Index rose as much as 0.8%, the most in the region, while Qatar’s gauge slipped as much as 0.4%.
Almarai Co. was little changed after the Saudi food and beverage producer reported profit for the first three months of the year that met estimates. Qatar National Bank, the Middle East’s biggest listed lender, is expected to announce its results Sunday. Qatar First Bank is also due to report this week.
Earnings will improve for roughly two-thirds of banks covered in the Middle East and North Africa, according to CI Capital, with aggregate net income up about 11% from a year earlier and 21% from the previous quarter, analysts Sara Boutros and Maryam Saleh wrote in a note. UAE banks are likely to outperform on earnings, while Saudi lenders should stand out on balance sheet growth.
- In Saudi Arabia, the Tadawul All Share Index slipped 0.1% as of 10:14 a.m., trimming its gain this year to 15%
- Dubai’s DFM General Index rose 0.2%, while Abu Dhabi’s ADX General Index was down 0.1%
- Business conditions in Dubai remained flat last month even as the Middle East’s business hub showed signs of recovery from the pandemic
- Qatar’s QE Index dropped 0.3%
- Qatari stocks are expected to exhibit a “sequential recovery in earnings” on a normalized basis in the first quarter, with a 28% increase from the previous quarter, mostly due to a recovery in non-financial stocks and commodity prices, according to QNB Financial Services
- Qatar National Cement slid 1.6% following a gain of 2.1% Thursday, when it posted a 29% increase in quarterly net income
#Dubai Business Activity Flat as Supply Shortages, Tourism Weigh - Bloomberg
Dubai Business Activity Flat as Supply Shortages, Tourism Weigh - Bloomberg
Business conditions in Dubai remained flat last month even as the Middle East’s business hub showed signs of recovery from the pandemic.
“Global supply difficulties washed up on Dubai’s shores in March,” wrote David Owen, economist at IHS Markit. “This will constrain profit margins as competitive pressures and efforts to aid the recovery in demand led firms to lower output charges.”
IHS Markit’s Purchasing Managers’ Index rose to 51 in March from 50.9 in February, remaining above the 50 mark that separates growth from contraction.
An increase in input prices, fueled by raw-material supply shortages led to the fastest acceleration of input cost inflation since late 2018. Still, companies lowered selling charges to stimulate demand.
Business conditions in Dubai remained flat last month even as the Middle East’s business hub showed signs of recovery from the pandemic.
“Global supply difficulties washed up on Dubai’s shores in March,” wrote David Owen, economist at IHS Markit. “This will constrain profit margins as competitive pressures and efforts to aid the recovery in demand led firms to lower output charges.”
IHS Markit’s Purchasing Managers’ Index rose to 51 in March from 50.9 in February, remaining above the 50 mark that separates growth from contraction.
An increase in input prices, fueled by raw-material supply shortages led to the fastest acceleration of input cost inflation since late 2018. Still, companies lowered selling charges to stimulate demand.
- Output continued to expand solidly, while new work picked up after a slight decrease in February
- Companies remained confident of a rise in business activity in the coming year as the economy recovers from the coronavirus pandemic
- Construction firms saw the second-sharpest increase in output since the middle of 2019 as some projects resumed following virus-related restrictions
- Shrinking travel and tourism activity continued to weigh on the recovery
- Outlook for future business activity among non-oil firms remained positive in March, although it fell from February’s five-month high
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