Oil climbs nearly 5% on signs of increasing crude demand | Reuters
Oil prices surged almost 5% on Wednesday, after a report from the International Energy Agency, followed by U.S. inventory data boosted optimism about returning demand after the coronavirus lockdowns last year crushed fuel consumption.
Brent crude futures rose $2.91, or 4.6%, to settle at $66.58 a barrel. U.S. West Texas Intermediate (WTI) crude ended $2.97, or 4.9%, higher at $63.15 a barrel.
U.S. crude inventories fell by 5.9 million barrels last week, the Energy Information Administration said, exceeding analysts’ forecasts for a 2.9 million-barrel drop. East Coast crude stocks hit a record low. [EIA/S]
Gasoline supplied in latest week, indicating the U.S. consumption of the fuel, rose to 8.9 million barrels per day, the highest since August, the EIA report showed.
Wednesday 14 April 2021
Exclusive: NMC sues #Dubai bank in $6 billion #UAE debt row - sources | Reuters
Exclusive: NMC sues Dubai bank in $6 billion UAE debt row - sources | Reuters
The United Arab Emirates’ largest private healthcare provider NMC is suing a Dubai bank in Abu Dhabi courts, three sources said and a court document showed, in a dispute that could complicate the company’s multibillion-dollar debt restructuring and potentially delay payouts to creditors.
The healthcare company ran into trouble last year after the disclosure of more than $4 billion in hidden debt.
Its UAE operating businesses were placed into administration in the courts of Abu Dhabi’s international financial centre ADGM. Claims from creditors to date amount to $6.4 billion, the company has said.
The legal action by NMC’s administrator against Dubai Islamic Bank (DIB) comes after DIB filed lawsuits in neighbouring Dubai. The lawsuits pit UAE’s different legal systems against one another and risk complicating the restructuring.
“So which court takes priority now?” one of the sources said. “The problem is that none of this has ever been done before.” The sources declined to be identified because of the commercial sensitivity of the matter.
The United Arab Emirates’ largest private healthcare provider NMC is suing a Dubai bank in Abu Dhabi courts, three sources said and a court document showed, in a dispute that could complicate the company’s multibillion-dollar debt restructuring and potentially delay payouts to creditors.
The healthcare company ran into trouble last year after the disclosure of more than $4 billion in hidden debt.
Its UAE operating businesses were placed into administration in the courts of Abu Dhabi’s international financial centre ADGM. Claims from creditors to date amount to $6.4 billion, the company has said.
The legal action by NMC’s administrator against Dubai Islamic Bank (DIB) comes after DIB filed lawsuits in neighbouring Dubai. The lawsuits pit UAE’s different legal systems against one another and risk complicating the restructuring.
“So which court takes priority now?” one of the sources said. “The problem is that none of this has ever been done before.” The sources declined to be identified because of the commercial sensitivity of the matter.
Oil Surges With U.S. Data Underscoring Brighter Global Outlook - Bloomberg
Oil Surges With U.S. Data Underscoring Brighter Global Outlook - Bloomberg
Futures climbed as much as 5.3% in New York on Wednesday, pushing prices out of a recent $5 trading range to the highest intraday level since March 18. A U.S. government report showed domestic crude inventories fell by 5.89 million barrels last week, the biggest decline in two months, bringing nationwide supplies to the lowest since late February. A gauge for gasoline demand ticked higher for a seventh straight week.
“The crude draw and the very slight increase in gasoline inventories speaks to the whole setup of recovering demand and balancing inventories,” said Quinn Kiley, a portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “It’s a stark difference compared to this time last year. We’re seeing the real contrast between what it looks like in a poor demand scenario a year ago versus a recovery scenario today.”
- West Texas Intermediate for May rose $3.05 to $63.23 a barrel at 12:53 p.m. in New York
- Brent for June settlement gained $3 to $66.67 a barrel
Futures climbed as much as 5.3% in New York on Wednesday, pushing prices out of a recent $5 trading range to the highest intraday level since March 18. A U.S. government report showed domestic crude inventories fell by 5.89 million barrels last week, the biggest decline in two months, bringing nationwide supplies to the lowest since late February. A gauge for gasoline demand ticked higher for a seventh straight week.
“The crude draw and the very slight increase in gasoline inventories speaks to the whole setup of recovering demand and balancing inventories,” said Quinn Kiley, a portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “It’s a stark difference compared to this time last year. We’re seeing the real contrast between what it looks like in a poor demand scenario a year ago versus a recovery scenario today.”
Shareholders of #SaudiArabia's Sabic approve $2.4bn 2020 cash dividend | The National
Shareholders of Saudi Arabia's Sabic approve $2.4bn 2020 cash dividend | The National
Saudi Basic Industries Corporation, the Middle East's biggest petrochemicals producer, will pay out a total 2020 cash dividend of 9 billion Saudi riyals ($2.4bn) after shareholders approved a 4.5bn riyals dividend for the second half of last year.
The second-half cash dividend of 1.5 riyals per share represents 15 per cent of the nominal share value of Sabic and will be distributed to eligible shareholders on May 3, the company said in a statement on Wednesday. The company’s board recommended a similar dividend for the first half of 2020, despite the pandemic-driven economic headwinds.
Sabic reported a 40 million riyals net profit for 2020, down 99.23 per cent from the previous year on the back of lower average selling prices in most products. Impairment provisions in certain capital and financial assets also dented the company’s annual profit.
Although net income fell sharply from the company's 5.2bn riyals earnings in 2019, it beat estimates from analysts polled by Bloomberg, who had forecast a full-year loss of almost 300m riyals due to the impact of the coronavirus pandemic.
Saudi Basic Industries Corporation, the Middle East's biggest petrochemicals producer, will pay out a total 2020 cash dividend of 9 billion Saudi riyals ($2.4bn) after shareholders approved a 4.5bn riyals dividend for the second half of last year.
The second-half cash dividend of 1.5 riyals per share represents 15 per cent of the nominal share value of Sabic and will be distributed to eligible shareholders on May 3, the company said in a statement on Wednesday. The company’s board recommended a similar dividend for the first half of 2020, despite the pandemic-driven economic headwinds.
Sabic reported a 40 million riyals net profit for 2020, down 99.23 per cent from the previous year on the back of lower average selling prices in most products. Impairment provisions in certain capital and financial assets also dented the company’s annual profit.
Although net income fell sharply from the company's 5.2bn riyals earnings in 2019, it beat estimates from analysts polled by Bloomberg, who had forecast a full-year loss of almost 300m riyals due to the impact of the coronavirus pandemic.
#AbuDhabi's Etihad in talks to divest Air Seychelles stake | Reuters
Abu Dhabi's Etihad in talks to divest Air Seychelles stake | Reuters
Etihad Airways is in talks to divest its 40% stake in Air Seychelles, the small Indian Ocean carrier’s Chief Executive Officer Remco Althius said on Wednesday.
The move would leave the Seychelles government as the sole shareholder of Air Seychelles as the Abu Dhabi carrier further unwinds its failed strategy of investing in other airlines.
“It’s been formalised as we speak. It’s happening right now,” said Althius, a former Etihad executive, during an online event by aviation consultancy CAPA.
Etihad, which declined to comment, bought the minority stake in 2012, investing $20 million in addition to providing a $25 million loan.
The Seychelles government plans to buy the stake at a nominal value, according to a December regulatory filing.
Etihad Airways is in talks to divest its 40% stake in Air Seychelles, the small Indian Ocean carrier’s Chief Executive Officer Remco Althius said on Wednesday.
The move would leave the Seychelles government as the sole shareholder of Air Seychelles as the Abu Dhabi carrier further unwinds its failed strategy of investing in other airlines.
“It’s been formalised as we speak. It’s happening right now,” said Althius, a former Etihad executive, during an online event by aviation consultancy CAPA.
Etihad, which declined to comment, bought the minority stake in 2012, investing $20 million in addition to providing a $25 million loan.
The Seychelles government plans to buy the stake at a nominal value, according to a December regulatory filing.
#Qatar leads major Gulf markets higher; Egypt retreats | Reuters
Qatar leads major Gulf markets higher; Egypt retreats | Reuters
Major Gulf stock markets ended higher on Wednesday amid rising oil prices on revised oil demand forecasts, while Egypt was hit by a blue-chip sell-off.
The International Energy Agency (IEA) predicted global oil demand and supply would rebalance in the second half of the year and that producers may then need to pump an additional 2 million barrels per day to meet the expected demand.
Brent crude futures rose $1.01, or 1.59%, to $64.68 a barrel by 1241 GMT. [O/R]
The movement in oil prices is a key catalyst for the Gulf region’s financial markets.
Saudi Arabia’s benchmark index reversed earlier losses to close 0.1% higher, supported by a 0.8% increase in Al Rajhi Bank and a 2% rise in Riyad Bank.
However, the index’s gains were limited by losses at petrochemical firm Saudi Basic Industries and Almarai Company, the Gulf’s largest dairy company, as the duo went ex-dividend.
In Dubai, the main share index edged up 0.2%, supported by a 2.2% gain in its top lender Emirates NBD.
The Abu Dhabi index added 0.3%, with First Abu Dhabi Bank, the United Arab Emirates’ biggest lender, rising 0.7%, while Abu Dhabi Commercial Bank finished 1% higher.
Separately, Lunar exploration company ispace will transport a United Arab Emirates rover to the moon in 2022, the company said on Wednesday, as the UAE pushes for rapid expansion in the space exploration business to diversify its economy.
The UAE launched a National Space Programme in 2017 to develop local expertise. Its population of 9.4 million, most of whom are foreign workers, lacks the scientific and industrial base of the major countries that have space programmes.
In Qatar, the benchmark advanced 1.2%, ending two sessions of losses, led by a 2.7% rise in Qatar Islamic Bank.
Major Gulf stock markets ended higher on Wednesday amid rising oil prices on revised oil demand forecasts, while Egypt was hit by a blue-chip sell-off.
The International Energy Agency (IEA) predicted global oil demand and supply would rebalance in the second half of the year and that producers may then need to pump an additional 2 million barrels per day to meet the expected demand.
Brent crude futures rose $1.01, or 1.59%, to $64.68 a barrel by 1241 GMT. [O/R]
The movement in oil prices is a key catalyst for the Gulf region’s financial markets.
Saudi Arabia’s benchmark index reversed earlier losses to close 0.1% higher, supported by a 0.8% increase in Al Rajhi Bank and a 2% rise in Riyad Bank.
However, the index’s gains were limited by losses at petrochemical firm Saudi Basic Industries and Almarai Company, the Gulf’s largest dairy company, as the duo went ex-dividend.
In Dubai, the main share index edged up 0.2%, supported by a 2.2% gain in its top lender Emirates NBD.
The Abu Dhabi index added 0.3%, with First Abu Dhabi Bank, the United Arab Emirates’ biggest lender, rising 0.7%, while Abu Dhabi Commercial Bank finished 1% higher.
Separately, Lunar exploration company ispace will transport a United Arab Emirates rover to the moon in 2022, the company said on Wednesday, as the UAE pushes for rapid expansion in the space exploration business to diversify its economy.
The UAE launched a National Space Programme in 2017 to develop local expertise. Its population of 9.4 million, most of whom are foreign workers, lacks the scientific and industrial base of the major countries that have space programmes.
In Qatar, the benchmark advanced 1.2%, ending two sessions of losses, led by a 2.7% rise in Qatar Islamic Bank.
#UAE's ADCB says received offers for its stake in Alexandria Medical Services | ZAWYA MENA Edition
UAE's ADCB says received offers for its stake in Alexandria Medical Services | ZAWYA MENA Edition
UAE-based Abu Dhabi Commercial Bank (ADCB) said it has received initial non-binding offers from potential investors for the sale of its 51 percent stake in the Alexandria Medical Services - Alexandria New Medical Center.
CI Capital is ADCB’s advisor for the potential sale.
In a statement on Abu Dhabi Stock Exchange the lender said it has sought the details of potential offers. Once that is received, ADCB will disclose the final list of potential buyers and the timeline for submitting the final bids.
Alexandria Medical Services - Alexandria New Medical Center offers medical diagnostic and treatment services in various medical fields.
However, Cleopatra Hospitals Group (CHG), Egypt’s largest private hospital group, has announced its intention to acquire Abu Dhabi Commercial Bank’s (ADCB) 51.5 percent stake in the company.
UAE-based Abu Dhabi Commercial Bank (ADCB) said it has received initial non-binding offers from potential investors for the sale of its 51 percent stake in the Alexandria Medical Services - Alexandria New Medical Center.
CI Capital is ADCB’s advisor for the potential sale.
In a statement on Abu Dhabi Stock Exchange the lender said it has sought the details of potential offers. Once that is received, ADCB will disclose the final list of potential buyers and the timeline for submitting the final bids.
Alexandria Medical Services - Alexandria New Medical Center offers medical diagnostic and treatment services in various medical fields.
However, Cleopatra Hospitals Group (CHG), Egypt’s largest private hospital group, has announced its intention to acquire Abu Dhabi Commercial Bank’s (ADCB) 51.5 percent stake in the company.
#Dubai Islamic Bank sells $500mln in perpetual sukuk | ZAWYA MENA Edition
Dubai Islamic Bank sells $500mln in perpetual sukuk | ZAWYA MENA Edition
Dubai Islamic Bank, the UAE’s largest Islamic lender, on Wednesday sold $500 million in perpetual non-call 5.5 years additional Tier 1 sukuk with a profit rate of 3.375 percent per annum.
In a statement, the bank said despite the record low yield, the sukuk was 5.6x oversubscribed with an orderbook that peaked at $2.8 billion.
The sukuk is issued under DIB Tier 1 Sukuk (5) Ltd. and is listed on Euronext Dublin and NASDAQ Dubai.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and Standard Chartered Bank acted as joint lead managers and bookrunners on this transaction.
According to Dubai Islamic Bank, which is rated A3 by Moody's and A by Fitch, this is the lowest ever pricing achieved by a GCC bank (both conventional and Islamic) on an AT1 instrument and the lowest ever on a dollar AT1 sukuk globally.
Dubai Islamic Bank, the UAE’s largest Islamic lender, on Wednesday sold $500 million in perpetual non-call 5.5 years additional Tier 1 sukuk with a profit rate of 3.375 percent per annum.
In a statement, the bank said despite the record low yield, the sukuk was 5.6x oversubscribed with an orderbook that peaked at $2.8 billion.
The sukuk is issued under DIB Tier 1 Sukuk (5) Ltd. and is listed on Euronext Dublin and NASDAQ Dubai.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and Standard Chartered Bank acted as joint lead managers and bookrunners on this transaction.
According to Dubai Islamic Bank, which is rated A3 by Moody's and A by Fitch, this is the lowest ever pricing achieved by a GCC bank (both conventional and Islamic) on an AT1 instrument and the lowest ever on a dollar AT1 sukuk globally.
Tristar Pulls IPO in Setback for #Dubai’s Stock Exchange - Bloomberg
Tristar Pulls IPO in Setback for Dubai’s Stock Exchange - Bloomberg
Middle Eastern logistics firm Tristar Transport has pulled its initial public offering in Dubai, dealing a blow to the city’s attempts to revive a stock market where just one company has listed in three years.
Tristar has informed Dubai’s main bourse that the IPO has been withdrawn, Chief Executive Eugene Mayne told Bloomberg in an interview. The deal was likely withdrawn “largely due to a mismatch in valuation expectations and investor education,” he said.
Tristar had set the price range for the offering at 2.20 dirhams to 2.70 dirhams per share. The firm was offering up to 24% of its shares in the IPO, valuing it at as much as 3.24 billion dirhams ($882 million), and the sale was scheduled to end on Thursday.
“We have strong cash flow and cash balances, we have capital for growth,” Mayne said, adding that the firm is not in a hurry to tap the IPO market again in the short term.
Middle Eastern logistics firm Tristar Transport has pulled its initial public offering in Dubai, dealing a blow to the city’s attempts to revive a stock market where just one company has listed in three years.
Tristar has informed Dubai’s main bourse that the IPO has been withdrawn, Chief Executive Eugene Mayne told Bloomberg in an interview. The deal was likely withdrawn “largely due to a mismatch in valuation expectations and investor education,” he said.
Tristar had set the price range for the offering at 2.20 dirhams to 2.70 dirhams per share. The firm was offering up to 24% of its shares in the IPO, valuing it at as much as 3.24 billion dirhams ($882 million), and the sale was scheduled to end on Thursday.
“We have strong cash flow and cash balances, we have capital for growth,” Mayne said, adding that the firm is not in a hurry to tap the IPO market again in the short term.
Oil maintains upward momentum despite fresh coronavirus fears | Reuters
Oil maintains upward momentum despite fresh coronavirus fears | Reuters
Crude oil prices jumped on revised oil demand forecasts on Wednesday despite concerns over rising coronavirus cases and vaccine rollouts.
Brent crude futures rose $1, or 1.57%, to $64.67 a barrel by 0858 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 96 cents, or 1.6%, at $61.
“The main price driver this morning is the monthly IEA report that foresees a significant rise in global oil demand in the second half of the year. This, in turn, will increase demand for OPEC oil and deplete worldwide and OECD inventories,” said PVM Oil Associates analyst Tamas Varga.
The International Energy Agency (IEA) predicted global oil demand and supply were set to rebalance in the second half of the year and that producers may then need to pump an additional 2 million barrels per day (bpd) to meet the expected demand.
Similarly, the Organization of the Petroleum Exporting Countries (OPEC) on Tuesday raised its global demand forecast by 70,000 bpd from last month’s forecast and now expects global demand to rise by 5.95 million bpd in 2021.
Crude oil prices jumped on revised oil demand forecasts on Wednesday despite concerns over rising coronavirus cases and vaccine rollouts.
Brent crude futures rose $1, or 1.57%, to $64.67 a barrel by 0858 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 96 cents, or 1.6%, at $61.
“The main price driver this morning is the monthly IEA report that foresees a significant rise in global oil demand in the second half of the year. This, in turn, will increase demand for OPEC oil and deplete worldwide and OECD inventories,” said PVM Oil Associates analyst Tamas Varga.
The International Energy Agency (IEA) predicted global oil demand and supply were set to rebalance in the second half of the year and that producers may then need to pump an additional 2 million barrels per day (bpd) to meet the expected demand.
Similarly, the Organization of the Petroleum Exporting Countries (OPEC) on Tuesday raised its global demand forecast by 70,000 bpd from last month’s forecast and now expects global demand to rise by 5.95 million bpd in 2021.
#Kuwait cenbank says it has told banks to appoint Kuwaitis in leadership roles | Reuters
Kuwait cenbank says it has told banks to appoint Kuwaitis in leadership roles | Reuters
Kuwait’s central bank said on Wednesday on its website it has instructed local banks to appoint Kuwaitis in “leadership positions”, as part of a drive to create more job opportunities for the country’s own nationals.
Kuwait’s central bank said on Wednesday on its website it has instructed local banks to appoint Kuwaitis in “leadership positions”, as part of a drive to create more job opportunities for the country’s own nationals.
Biden administration proceeding with $23 billion weapon sales to #UAE | Reuters
Biden administration proceeding with $23 billion weapon sales to UAE | Reuters
U.S. President Joe Biden’s administration has told Congress it is proceeding with more than $23 billion in weapons sales to the United Arab Emirates, including advanced F-35 aircraft, armed drones and other equipment, congressional aides said on Tuesday.
A State Department spokesperson said the administration would move forward with the proposed sales to the UAE, “even as we continue reviewing details and consulting with Emirati officials” related to the use of the weapons.
The Democratic president’s administration had paused the deals agreed to by former Republican President Donald Trump in order to review them. The sales to the Gulf nation were finalized right before Trump left office.
The Trump administration told Congress in November it had approved the U.S. sale to the UAE as a side deal to the Abraham Accords, a U.S.-brokered agreement in September in which the UAE agreed to normalize relations with Israel.
In the last months of the Trump administration, Israel reached deals with the UAE, Bahrain, Sudan and Morocco as part of the accords.
U.S. President Joe Biden’s administration has told Congress it is proceeding with more than $23 billion in weapons sales to the United Arab Emirates, including advanced F-35 aircraft, armed drones and other equipment, congressional aides said on Tuesday.
A State Department spokesperson said the administration would move forward with the proposed sales to the UAE, “even as we continue reviewing details and consulting with Emirati officials” related to the use of the weapons.
The Democratic president’s administration had paused the deals agreed to by former Republican President Donald Trump in order to review them. The sales to the Gulf nation were finalized right before Trump left office.
The Trump administration told Congress in November it had approved the U.S. sale to the UAE as a side deal to the Abraham Accords, a U.S.-brokered agreement in September in which the UAE agreed to normalize relations with Israel.
In the last months of the Trump administration, Israel reached deals with the UAE, Bahrain, Sudan and Morocco as part of the accords.
A $12.5 Billion Deal Shows #Saudi Oil Still Eclipses All Else - Bloomberg
A $12.5 Billion Deal Shows Saudi Oil Still Eclipses All Else - Bloomberg
Saudi Arabia is celebrating one of the biggest foreign-investment windfalls in its history after netting more than $12 billion by selling off a stake in the oil pipelines that traverse the desert kingdom.
But the country may also be facing an uncomfortable reality as a result. As carefully cultivated relationships with firms such as BlackRock Inc. and SoftBank Group Corp. have yet to draw in the desired investment, it’s turning to the jewels of its energy industry to attract new money.
Last week’s sale of the stake to EIG Global Energy Partners LLC shows how reliant Saudi Arabia is on its traditional mainstay and the challenges Crown Prince Mohammed bin Salman faces in diversifying the country away from oil and gas to achieve his Vision 2030 goal. The likes of BlackRock and SoftBank haven’t invested back into the country as much as the government might have hoped, while foreigners favor revenue-rich energy assets over tourism and entertainment.
“Entertainment and tourism might have had a better year of foreign direct investment in 2020 if Covid had not happened,” Karen Young, resident scholar at the American Enterprise Institute in Washington, said via e-mail. “But all the same, the core investors who see value in Saudi will be interested in the largest and most profitable sector, and that is still very much oil and energy.”
Saudi Arabia is celebrating one of the biggest foreign-investment windfalls in its history after netting more than $12 billion by selling off a stake in the oil pipelines that traverse the desert kingdom.
But the country may also be facing an uncomfortable reality as a result. As carefully cultivated relationships with firms such as BlackRock Inc. and SoftBank Group Corp. have yet to draw in the desired investment, it’s turning to the jewels of its energy industry to attract new money.
Last week’s sale of the stake to EIG Global Energy Partners LLC shows how reliant Saudi Arabia is on its traditional mainstay and the challenges Crown Prince Mohammed bin Salman faces in diversifying the country away from oil and gas to achieve his Vision 2030 goal. The likes of BlackRock and SoftBank haven’t invested back into the country as much as the government might have hoped, while foreigners favor revenue-rich energy assets over tourism and entertainment.
“Entertainment and tourism might have had a better year of foreign direct investment in 2020 if Covid had not happened,” Karen Young, resident scholar at the American Enterprise Institute in Washington, said via e-mail. “But all the same, the core investors who see value in Saudi will be interested in the largest and most profitable sector, and that is still very much oil and energy.”
Major Gulf markets steady, financials support #Dubai | Reuters
Major Gulf markets steady, financials support Dubai | Reuters
Major stock markets in Gulf were steady early on Wednesday in the absence of fresh factors to drive trade, with financial shares supporting the Dubai index.
In Dubai, the main share index rose 0.3%, with top lender Emirates NBD gaining 1.3% and Dubai Islamic Bank up 0.2%.
The latter, a sharia-compliant lender, launched a $500 million sale of Additional Tier 1 sukuk at 3.375% on Tuesday, setting a record low rate for the perpetual debt instrument out of the Gulf.
The Abu Dhabi index edged up 0.1%, helped by a 0.4% rise in the United Arab Emirates’ largest lender First Abu Dhabi Bank.
In Qatar, the index gained 0.2%, on track to end two sessions of losses, with market heavyweight Industries Qatar rising 0.9%.
Saudi Arabia’s benchmark index, traded flat.
Major stock markets in Gulf were steady early on Wednesday in the absence of fresh factors to drive trade, with financial shares supporting the Dubai index.
In Dubai, the main share index rose 0.3%, with top lender Emirates NBD gaining 1.3% and Dubai Islamic Bank up 0.2%.
The latter, a sharia-compliant lender, launched a $500 million sale of Additional Tier 1 sukuk at 3.375% on Tuesday, setting a record low rate for the perpetual debt instrument out of the Gulf.
The Abu Dhabi index edged up 0.1%, helped by a 0.4% rise in the United Arab Emirates’ largest lender First Abu Dhabi Bank.
In Qatar, the index gained 0.2%, on track to end two sessions of losses, with market heavyweight Industries Qatar rising 0.9%.
Saudi Arabia’s benchmark index, traded flat.
Real estate outlook: #Dubai's property values will continue to face pressure in 2021 | ZAWYA MENA Edition
Real estate outlook: Dubai's property values will continue to face pressure in 2021 | ZAWYA MENA Edition
Dubai’s residential property market, which has recently seen a surge in demand from investors and first-time buyers, is expected to continue to face pressure this year, according to a new analysis.
The values of apartments, villas and townhouses across Dubai and Abu Dhabi fell in 2020, primarily due to a fall in demand caused by the coronavirus pandemic.
The size of the population in both emirates is estimated to have fallen by 5 percent last year as expatriates hit by job losses opted to return to their home countries. “While population growth is expected to return in 2021, it will likely not be at least until late 2022 before we see population levels return to their pre-pandemic levels,” said Knight Frank in a report released on Tuesday.
“In Dubai, this lower level of demand will be further compounded by a continuing influx of supply, which in turn is likely to continue to put pressure on property values,” it added.
Dubai is expected to see the delivery of more than 41,000 new apartments and villas this year, higher than the completed units in 2020, according to Asteco. In Abu Dhabi, new supply could reach more than 7,000 units, based on the estimates shared by real-estate consultancy CORE.
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| Sheikh Zayed Road, Dubai, UAE. Image used for illustrative purpose. Getty Images |
Dubai’s residential property market, which has recently seen a surge in demand from investors and first-time buyers, is expected to continue to face pressure this year, according to a new analysis.
The values of apartments, villas and townhouses across Dubai and Abu Dhabi fell in 2020, primarily due to a fall in demand caused by the coronavirus pandemic.
The size of the population in both emirates is estimated to have fallen by 5 percent last year as expatriates hit by job losses opted to return to their home countries. “While population growth is expected to return in 2021, it will likely not be at least until late 2022 before we see population levels return to their pre-pandemic levels,” said Knight Frank in a report released on Tuesday.
“In Dubai, this lower level of demand will be further compounded by a continuing influx of supply, which in turn is likely to continue to put pressure on property values,” it added.
Dubai is expected to see the delivery of more than 41,000 new apartments and villas this year, higher than the completed units in 2020, according to Asteco. In Abu Dhabi, new supply could reach more than 7,000 units, based on the estimates shared by real-estate consultancy CORE.
#UAE adopts guidelines to combat money laundering | ZAWYA MENA Edition
UAE adopts guidelines to combat money laundering | ZAWYA MENA Edition
The UAE’s National Committee for Combating Money Laundering and Financing of Terrorism and Illegal Organisations (NAMLCFTC) adopted anti-money laundering and countering the financing of terrorism (AML/CFT) guidelines for financial institutions, designated non-financial businesses and professions, at its meeting Tuesday.
The Committee approved six-risk assessment reports related to terrorism financing, trade-based money laundering, misuse of legal persons, non-profit organisations, lawyers and the gold sector.
They will help "align the legislative and operational frameworks and priorities with the current risks and enhance understanding of risks and to boost cooperation among the competent authorities," the Central Bank of the UAE said in a statement.
The NAMLCFTC guidelines, which are for financial institutions, designated non-financial businesses and professions, aim to raise awareness of the importance of adhering to legislation related to financial crimes and the associated risks and penalties for violating them.
The decisions were taken at the NAMLCFTC's third meeting of the year, headed by the newly appointed Central Bank governor and chairman of the committee, Khaled Mohamed Balama and attended by UAE minister of state and chairman of Abu Dhabi Global Market Ahmed Al Sayegh.
The committee also endorsed an initiative to implement a national strategy for combating money laundering and combating the financing of terrorism, which aims to strengthen cooperation between different entities and limit money laundering.
The UAE passed an anti-money laundering and terrorism financing law in 2018.
The UAE’s National Committee for Combating Money Laundering and Financing of Terrorism and Illegal Organisations (NAMLCFTC) adopted anti-money laundering and countering the financing of terrorism (AML/CFT) guidelines for financial institutions, designated non-financial businesses and professions, at its meeting Tuesday.
The Committee approved six-risk assessment reports related to terrorism financing, trade-based money laundering, misuse of legal persons, non-profit organisations, lawyers and the gold sector.
They will help "align the legislative and operational frameworks and priorities with the current risks and enhance understanding of risks and to boost cooperation among the competent authorities," the Central Bank of the UAE said in a statement.
The NAMLCFTC guidelines, which are for financial institutions, designated non-financial businesses and professions, aim to raise awareness of the importance of adhering to legislation related to financial crimes and the associated risks and penalties for violating them.
The decisions were taken at the NAMLCFTC's third meeting of the year, headed by the newly appointed Central Bank governor and chairman of the committee, Khaled Mohamed Balama and attended by UAE minister of state and chairman of Abu Dhabi Global Market Ahmed Al Sayegh.
The committee also endorsed an initiative to implement a national strategy for combating money laundering and combating the financing of terrorism, which aims to strengthen cooperation between different entities and limit money laundering.
The UAE passed an anti-money laundering and terrorism financing law in 2018.
Oil maintains upward momentum but virus concerns cap gains | Reuters
Oil maintains upward momentum but virus concerns cap gains | Reuters
Crude oil climbed on Wednesday after industry data showed U.S. inventories declined more than expected and OPEC raised its outlook for oil demand, but gains were capped by worries about the coronavirus and by rising supplies.
Brent crude futures rose 85 cents, or 1.3%, to $64.52 a barrel by 0619 GMT, after gaining 39 cents on Tuesday.
U.S. West Texas Intermediate (WTI) crude futures added 82 cents, or 1.4%, to $61 a barrel, following Tuesday’s rise of 48 cents.
Signs of a strong economic recovery in China and the United States have underpinned recent price gains, but concerns over stalled vaccine rollouts worldwide and soaring COVID-19 infections in India and Brazil have slowed the market’s advance.
“Continuing setbacks on vaccine rollouts and global cases nearing January’s peak is likely to hold a firm cap on crude’s ascent in the short term. At the same time, persistent optimism over a U.S. recovery and the world being on the cusp of emerging out of the COVID crisis is holding a floor,” said Vandana Hari, energy analyst at Vanda Insights.
Crude oil climbed on Wednesday after industry data showed U.S. inventories declined more than expected and OPEC raised its outlook for oil demand, but gains were capped by worries about the coronavirus and by rising supplies.
Brent crude futures rose 85 cents, or 1.3%, to $64.52 a barrel by 0619 GMT, after gaining 39 cents on Tuesday.
U.S. West Texas Intermediate (WTI) crude futures added 82 cents, or 1.4%, to $61 a barrel, following Tuesday’s rise of 48 cents.
Signs of a strong economic recovery in China and the United States have underpinned recent price gains, but concerns over stalled vaccine rollouts worldwide and soaring COVID-19 infections in India and Brazil have slowed the market’s advance.
“Continuing setbacks on vaccine rollouts and global cases nearing January’s peak is likely to hold a firm cap on crude’s ascent in the short term. At the same time, persistent optimism over a U.S. recovery and the world being on the cusp of emerging out of the COVID crisis is holding a floor,” said Vandana Hari, energy analyst at Vanda Insights.