Oil rises after robust China data but J&J vaccine pause weighs | Reuters
Oil prices settled higher Tuesday on strong Chinese import data, but the rally was capped by concerns that pauses on the Johnson & Johnson vaccine could delay economic recovery and limit oil demand growth.
Brent crude oil futures settled up 39 cents, or 0.6%, at $63.67 a barrel, while U.S. crude oil futures gained 48 cents, or 0.8%, to $60.18 a barrel. Both contracts have recorded changes of less than 1% for five straight sessions.
“We’ve been trading in a range, and need clear demand data and direction on U.S. inventories to break out of this trough,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.
China’s exports grew at a robust pace in March in yet another boost to the nation’s economic recovery, as global demand picked up amid progress in COVID-19 vaccinations. Import growth surged to the highest in four years.
Crude oil imports into China jumped 21% in March from a low base a year earlier as refiners ramped up operations.
Tuesday, 13 April 2021
#Dubai draft law to freeze rents for three years 'will stabilise property market' | The National
Dubai draft law to freeze rents for three years 'will stabilise property market' | The National
A new draft law set to keep rents unchanged for a three-year period will ensure properties are valued fairly and ease disputes between renters and owners, Dubai Land Department said.
The rent freeze, if approved, will bring stability to the real estate market and provide a clear picture of the value of properties in the emirate, according to the department, the government body that handles registrations and frames legislation for the real estate sector.
Once the law is signed, a government notification will be issued to announce it has been adopted, with guidelines published alongside.
Officials did not have a date for when the law would come into force and are awaiting approval.
A new draft law set to keep rents unchanged for a three-year period will ensure properties are valued fairly and ease disputes between renters and owners, Dubai Land Department said.
The rent freeze, if approved, will bring stability to the real estate market and provide a clear picture of the value of properties in the emirate, according to the department, the government body that handles registrations and frames legislation for the real estate sector.
Once the law is signed, a government notification will be issued to announce it has been adopted, with guidelines published alongside.
Officials did not have a date for when the law would come into force and are awaiting approval.
Financials drag major Gulf markets lower | Reuters
Financials drag major Gulf markets lower | Reuters
Major stock markets in the Gulf ended lower on Tuesday, as financial shares dropped after the International Monetary Fund warned of rising debt risks in the coronavirus-hit Middle East.
The IMF said on Sunday that 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.
Lower demand and a slump in commodity prices eroded state finances last year. In the Middle East and North Africa, fiscal deficits widened to 10.1% of GDP in 2020 from 3.8% of GDP in 2019.
Saudi Arabia’s benchmark index dropped 0.7%, weighed down by a 1% decline in Al Rajhi Bank and a 1.7% decrease in Saudi National Bank.
In Dubai, the main share index finished 0.8% lower, with its top lender Emirates NBD and Dubai Islamic Bank (DIB) losing 1.7% each.
DIB, the largest Islamic lender in the United Arab Emirates, has hired banks to arrange a planned benchmark issuance of U.S. dollar-denominated Additional Tier 1 sukuk, a document showed on Monday.
The Abu Dhabi index declined 1.2%, dragged down by a 2.2% fall in First Abu Dhabi Bank, the country’s largest lender, and a 5% slide in Abu Dhabi Islamic Bank as the stock went ex-dividend.
In Qatar, the index eased 0.2%, hit by a 1.5% fall in Qatar Islamic Bank.
Major stock markets in the Gulf ended lower on Tuesday, as financial shares dropped after the International Monetary Fund warned of rising debt risks in the coronavirus-hit Middle East.
The IMF said on Sunday that 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.
Lower demand and a slump in commodity prices eroded state finances last year. In the Middle East and North Africa, fiscal deficits widened to 10.1% of GDP in 2020 from 3.8% of GDP in 2019.
Saudi Arabia’s benchmark index dropped 0.7%, weighed down by a 1% decline in Al Rajhi Bank and a 1.7% decrease in Saudi National Bank.
In Dubai, the main share index finished 0.8% lower, with its top lender Emirates NBD and Dubai Islamic Bank (DIB) losing 1.7% each.
DIB, the largest Islamic lender in the United Arab Emirates, has hired banks to arrange a planned benchmark issuance of U.S. dollar-denominated Additional Tier 1 sukuk, a document showed on Monday.
The Abu Dhabi index declined 1.2%, dragged down by a 2.2% fall in First Abu Dhabi Bank, the country’s largest lender, and a 5% slide in Abu Dhabi Islamic Bank as the stock went ex-dividend.
In Qatar, the index eased 0.2%, hit by a 1.5% fall in Qatar Islamic Bank.
Saudis Try To Shake Image as Solar Power ‘Latecomers’: Chart - Bloomberg
Saudis Try To Shake Image as Solar Power ‘Latecomers’: Chart - Bloomberg
Despite having some of the best solar potential in the world, Saudi Arabia produces a tiny fraction of its electricity from the sun. The world’s biggest oil exporter is now trying to change that and last week awarded contracts to build 2,970 megawatts of solar plants --- almost as much as Greece’s capacity -- as part of a plan to generate half its power from renewables by 2030 and cut emissions by millions of tons. “We were latecomers to the game,” Energy Minister Prince Abdulaziz bin Salman said in an interview on April 8.
Most Gulf markets ease in early trade | Reuters
Most Gulf markets ease in early trade | Reuters
Most stock markets in the Gulf fell in early trade on Tuesday, pressured by losses in their banking shares as the International Monetary Fund warns on rising debt risks in virus-hit Middle East.
The IMF 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.
Lower demand and a slump in commodity prices eroded state finances last year. In the Middle East and North Africa, fiscal deficits widened to 10.1% of GDP in 2020 from 3.8% of GDP in 2019.
Saudi Arabia’s benchmark index was down 0.1%, hit by a 0.8% decrease in Al Rajhi Bank and a 1.4% fall in Dr Sulaiman Al-Habib Medical Services.
In Abu Dhabi, the index eased 0.1%, with First Abu Dhabi Bank, the country’s largest lender, losing 0.7%, while Abu Dhabi Islamic Bank retreated 4.1%, as the sharia-compliant lender went ex-dividend.
In Dubai, the main share index edged up 0.1%, helped by a 0.4% increase in its top lender Emirates NBD Bank.
However, Dubai Islamic Bank (DIB) fell 0.7%.
DIB, the largest Islamic lender in the United Arab Emirates, has hired banks to arrange a planned benchmark issuance of U.S. dollar-denominated Additional Tier 1 sukuk, a document showed on Monday.
In Qatar, the index lost 0.2%, weighed down by a 1.8% fall in Qatar National Bank, the Gulf’s biggest lender.
On Sunday, the lender reported a 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.
Most stock markets in the Gulf fell in early trade on Tuesday, pressured by losses in their banking shares as the International Monetary Fund warns on rising debt risks in virus-hit Middle East.
The IMF 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.
Lower demand and a slump in commodity prices eroded state finances last year. In the Middle East and North Africa, fiscal deficits widened to 10.1% of GDP in 2020 from 3.8% of GDP in 2019.
Saudi Arabia’s benchmark index was down 0.1%, hit by a 0.8% decrease in Al Rajhi Bank and a 1.4% fall in Dr Sulaiman Al-Habib Medical Services.
In Abu Dhabi, the index eased 0.1%, with First Abu Dhabi Bank, the country’s largest lender, losing 0.7%, while Abu Dhabi Islamic Bank retreated 4.1%, as the sharia-compliant lender went ex-dividend.
In Dubai, the main share index edged up 0.1%, helped by a 0.4% increase in its top lender Emirates NBD Bank.
However, Dubai Islamic Bank (DIB) fell 0.7%.
DIB, the largest Islamic lender in the United Arab Emirates, has hired banks to arrange a planned benchmark issuance of U.S. dollar-denominated Additional Tier 1 sukuk, a document showed on Monday.
In Qatar, the index lost 0.2%, weighed down by a 1.8% fall in Qatar National Bank, the Gulf’s biggest lender.
On Sunday, the lender reported a 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.
A Key Oil Spread Heralds Rising Competition Among Suppliers - Bloomberg video
A Key Oil Spread Heralds Rising Competition Among Suppliers - Bloomberg
The battle for oil sales is set to become more intense as rising output from OPEC+ and the Middle East boosts the competitiveness of the region’s shipments, potentially forcing other suppliers to discount their barrels.
The warning signs can be seen in the widening of a key price spread that’s used by traders to determine the affordability of cargoes from the Middle East against Brent-linked barrels. Right now, the gap is close to the widest in more than 16 months, and that doesn’t bode well for oil that’s priced against Brent.
“There’s much cheaper crude, and a lot of it coming from the Middle East,” said Grayson Lim, a senior oil analyst at FGE. “Those Brent-linked cargoes will need to be offered at a huge discount for buyers in the region to snap up the barrels,” he said, referring to Asian users. “But if they’re heavily discounted, there’s a chance that Chinese buyers may come out to buy.”
Earlier this month the Organization of Petroleum Exporting Countries and its allies decided to relax the deep production curbs that rescued prices from last year’s pandemic-driven collapse. The move will see more than 2 million barrels a day in supply restored in stages through to July amid expectations that the roll-out of vaccines will underpin further gains in energy consumption. So far, the plan has been defended by leading architect Saudi Arabia, with futures for Brent and West Texas Intermediate up almost a quarter this year.
The warning signs can be seen in the widening of a key price spread that’s used by traders to determine the affordability of cargoes from the Middle East against Brent-linked barrels. Right now, the gap is close to the widest in more than 16 months, and that doesn’t bode well for oil that’s priced against Brent.
Earlier this month the Organization of Petroleum Exporting Countries and its allies decided to relax the deep production curbs that rescued prices from last year’s pandemic-driven collapse. The move will see more than 2 million barrels a day in supply restored in stages through to July amid expectations that the roll-out of vaccines will underpin further gains in energy consumption. So far, the plan has been defended by leading architect Saudi Arabia, with futures for Brent and West Texas Intermediate up almost a quarter this year.
Emirates NBD's Haque on Oil Prices, #UAE Recovery - Bloomberg video
Emirates NBD's Haque on Oil Prices, UAE Recovery - Bloomberg
Kathija Haque, Emirates NBD Chief Economist discusses oil price fluctuations and UAE recovery. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
U.S. Infrastructure Plan Piques $232 Billion Mubadala’s Interest - Bloomberg
U.S. Infrastructure Plan Piques $232 Billion Mubadala’s Interest - Bloomberg
President Joe Biden’s proposed infrastructure makeover is getting a thumbs up from one of the world’s biggest sovereign wealth funds.
Mubadala Investment Co. considers the U.S. to be “an unbelievable market,” and the opportunities there might prompt Abu Dhabi’s $232 billion wealth fund to commit money toward infrastructure in the country, Chief Executive Officer Khaldoon Al Mubarak said on Monday during a virtual conference.
“The United States is a country that has incredible infrastructure requirements and is now taking the opportunity of the stimulus packages, combined with zero interest rates, to really stimulate a significant upgrade,” he said.
Biden has called for sweeping investments in electric vehicles, renewable power and the electric grid as part of a broad blueprint to bolster the U.S. economy while combating climate change. The plans, part of a $2.25 trillion infrastructure and stimulus blueprint unveiled by the president, are meant to catalyze investments in a clean energy economy.
President Joe Biden’s proposed infrastructure makeover is getting a thumbs up from one of the world’s biggest sovereign wealth funds.
Mubadala Investment Co. considers the U.S. to be “an unbelievable market,” and the opportunities there might prompt Abu Dhabi’s $232 billion wealth fund to commit money toward infrastructure in the country, Chief Executive Officer Khaldoon Al Mubarak said on Monday during a virtual conference.
“The United States is a country that has incredible infrastructure requirements and is now taking the opportunity of the stimulus packages, combined with zero interest rates, to really stimulate a significant upgrade,” he said.
Biden has called for sweeping investments in electric vehicles, renewable power and the electric grid as part of a broad blueprint to bolster the U.S. economy while combating climate change. The plans, part of a $2.25 trillion infrastructure and stimulus blueprint unveiled by the president, are meant to catalyze investments in a clean energy economy.
#Dubai Islamic Bank gives price guidance for AT1 sukuk - document | ZAWYA MENA Edition
Dubai Islamic Bank gives price guidance for AT1 sukuk - document | ZAWYA MENA Edition
Dubai Islamic Bank, the United Arab Emirates' largest Islamic lender, gave on Tuesday price guidance of between 3.625% and 3.75% for U.S. dollar-denominated Additional Tier 1 sukuk, a document showed.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and Standard Chartered are arranging the deal, expected to close later on Tuesday, the document from one of the banks showed.
The Islamic bonds will be non-callable for six years.
Dubai Islamic Bank, the United Arab Emirates' largest Islamic lender, gave on Tuesday price guidance of between 3.625% and 3.75% for U.S. dollar-denominated Additional Tier 1 sukuk, a document showed.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and Standard Chartered are arranging the deal, expected to close later on Tuesday, the document from one of the banks showed.
The Islamic bonds will be non-callable for six years.
#AbuDhabi conglomerate IHC acquires 45% stake in Alpha Dhabi Holding | ZAWYA MENA Edition
Abu Dhabi conglomerate IHC acquires 45% stake in Alpha Dhabi Holding | ZAWYA MENA Edition
Abu Dhabi-based conglomerate International Holding Co. (IHC) has acquired a 45 percent stake in Alpha Dhabi Holding, a real estate and construction group.
IHC, listed on Abu Dhabi stock exchange, acquired a 94 percent stake last year in Falcon CI IV LP, a Cayman Island-based fund that has invested in Elon Musk’s California-based aerospace company, Space Exploration Technology Corp (SpaceX).
Alpha Dhabi Holding, known as Trojan Holding till recently, last month acquired a stake in UAE real estate company, Aldar Properties, from Mubadala Investment Co. through its subsidiary, Sublime Commercial Investment.
Syed Basar Shueb, CEO and Managing Director of IHC, said: “The acquisition of a substantial stake in Alpha Dhabi Holding will add a significant scale to IHC, the move will increase and diversify our investment vertical, as we continually seek strategic partnerships with local and international players and further strengthen our leadership position in the marketplace.
Abu Dhabi-based conglomerate International Holding Co. (IHC) has acquired a 45 percent stake in Alpha Dhabi Holding, a real estate and construction group.
IHC, listed on Abu Dhabi stock exchange, acquired a 94 percent stake last year in Falcon CI IV LP, a Cayman Island-based fund that has invested in Elon Musk’s California-based aerospace company, Space Exploration Technology Corp (SpaceX).
Alpha Dhabi Holding, known as Trojan Holding till recently, last month acquired a stake in UAE real estate company, Aldar Properties, from Mubadala Investment Co. through its subsidiary, Sublime Commercial Investment.
Syed Basar Shueb, CEO and Managing Director of IHC, said: “The acquisition of a substantial stake in Alpha Dhabi Holding will add a significant scale to IHC, the move will increase and diversify our investment vertical, as we continually seek strategic partnerships with local and international players and further strengthen our leadership position in the marketplace.
Oil prices climb on robust China data, Mideast tension | Reuters
Oil prices climb on robust China data, Mideast tension | Reuters
Oil prices climbed on Tuesday as data from China showed the world’s second-largest oil consumer’s import growth surging and on tensions in the Middle East after the Yemen-based Houthi movement said it fired missiles on Saudi oil sites.
Brent crude oil futures were up 37 cents, or 0.6%, at $63.65 a barrel by 0656 GMT while U.S. crude oil futures gained 32 cents, or 0.5%, to $60.02 a barrel.
China’s exports grew at a robust pace in March in yet another boost to the nation’s economic recovery as global demand picks up amid progress in worldwide COVID-19 vaccinations, while import growth surged to the highest in four years.
Crude oil imports into China also jumped 21% in March from a low base of comparison a year earlier as refiners ramped up operation amid robust fuel demand as the COVID-19 pandemic eased.
Oil prices climbed on Tuesday as data from China showed the world’s second-largest oil consumer’s import growth surging and on tensions in the Middle East after the Yemen-based Houthi movement said it fired missiles on Saudi oil sites.
Brent crude oil futures were up 37 cents, or 0.6%, at $63.65 a barrel by 0656 GMT while U.S. crude oil futures gained 32 cents, or 0.5%, to $60.02 a barrel.
China’s exports grew at a robust pace in March in yet another boost to the nation’s economic recovery as global demand picks up amid progress in worldwide COVID-19 vaccinations, while import growth surged to the highest in four years.
Crude oil imports into China also jumped 21% in March from a low base of comparison a year earlier as refiners ramped up operation amid robust fuel demand as the COVID-19 pandemic eased.
