#Qatar boss pours cold water on hopes for rapid aviation recovery | Financial Times

Qatar boss pours cold water on hopes for rapid aviation recovery | Financial Times

The chief executive of Qatar Airways has poured cold water on hopes for a rapid recovery in aviation and warned of a need for more co-operation in creating vaccine passports to save the industry. 

“I think the aviation recovery will not happen for quite a long period of time . . . I don’t see that the worst is over yet,” Akbar Al Baker said in an interview. 

The Qatari executive struck a more pessimistic tone than the bosses of many big European and American airlines, who predict a rebound in flying in the coming months. 

US airline bosses have said the worst impact of the crisis had passed, while in Europe there are hopes for a revival in travel once border restrictions ease. 

But Al Baker believes vaccines are only a “stopgap” solution because it is still not known how long they offer protection against Covid-19. 

The UK could end up with fourth, fifth or sixth waves of cases after it opens up its borders to international travel, he warned.

#UAE bank ADCB reports soaring profit as it recovers from NMC impairments | Reuters

UAE bank ADCB reports soaring profit as it recovers from NMC impairments | Reuters

Abu Dhabi Commercial Bank (ADCB) (ADCB.AD), UAE's third-biggest lender, reported a more than 400% surge in first-quarter profit on Sunday, after it took big impairments a year earlier due to its large exposure to troubled hospital operator NMC Health.

Net profit in January-March this year totalled 1.1 billion dirhams ($299.50 million), a 436% increase year on year and an 11% increase quarter on quarter, ADCB said.

The growth was "largely due to improved cost of risk compared to Q1 '20," Chief Executive Ala'a Eraiqat said in the earnings statement.

In the first three months of 2020 ADCB reported an 84% fall in net profit as it took $292 million in impairments on debt exposure to NMC Health and payments group Finablr, which ran into financial difficulties last year.

Most Mideast Shares Climb With Oil, Earnings Eyed: Inside EM - Bloomberg

Most Mideast Shares Climb With Oil, Earnings Eyed: Inside EM - Bloomberg

Most Middle Eastern stock markets edged higher as investors weighed lower Treasury yields, pressure on the oil price and corporate earnings.

Abu Dhabi’s ADX General Index climbed the most in the region, ending 0.3% higher on Sunday. Gauges in Saudi Arabia, Dubai, Bahrain, Oman, Qatar and Egypt also made gains while those in Kuwait and Israel slipped.

Stocks and currencies in developing economies rose last week as easing Treasury yields offset concerns over an increase in virus cases. But Brent crude, a major source of revenue for Gulf countries, declined for the week on concern the surge in cases in India will hamper demand recovery. India is the world’s third-largest oil importer, after the U.S. and China.

On the earnings front, Vodafone Qatar and Industries Qatar are expected to deliver results this week.

MIDDLE EASTERN MARKETS:

• In Saudi Arabia, Saudi Kayan climbed as much as 5.1% after posting a profit for the 1Q that compares to a loss last year
• Abu Dhabi’s ADX General Index extends increase this year to 21%, the best performance among major gauges in the region
• Etisalat rises 1% on Sunday, boosting the index the most by points, followed by First Abu Dhabi Bank +0.3% and Ras Al Khaimah Ceramics +5.2%
• Dubai’s DFM General Index trades near its 100-day moving average, a mark it has traded above for most part of the time since early November

COMMENTS:

• Within those banks that already delivered 1Q results in Saudi Arabia - Al Rajhi Bank, Bank AlBilad and Alinma Bank - loan growth was “robust” and “even higher than our already generous expectations,” CI Capital analysts wrote in a note
• Strong momentum attributed to the mortgage segment, analysts including Sara Boutros and Monsef Morsy write
• Loan growth in Kuwait is coming in “healthy” and driven mostly by the consumer segment, while loan trends in the United Arab Emirates have been “so far weak” as significant loan repayments outweigh the “already weak new loan originations”

#Qatar Petroleum Said to Plan $10 Billion Bond for Gas Expansion - Bloomberg

Qatar Petroleum Said to Plan $10 Billion Bond for Gas Expansion - Bloomberg

Qatar Petroleum plans to issue up to $10 billion of bonds as soon as this quarter to fund a massive natural-gas project, according to a person with knowledge of the matter.

The state producer is inviting banks to arrange what would be its first dollar bonds, the person said, asking not to be identified because the information is private. The company is seeking to sell between $7 billion and $10 billion of five, 10- and 30-year notes, the person said. That would make it one of the largest corporate deals this year and one of the biggest of any kind from emerging markets.

A spokesperson for QP didn’t immediately respond to a request for comment.

The money would go toward the North Field expansion, the person said. Through that project, Qatar will cement its status as the world’s biggest exporter of liquefied natural gas. It aims to raise output capacity more than 50% by 2027 to 126 million tons annually, which will cost $29 billion.

Qatar’s government issued a $10 billion bond in April last year and attracted nearly $45 billion of orders. Like the sovereign, QP is rated AA- or its equivalent by Moody’s Investors Service and S&P Global Ratings.

Reuters earlier reported that QP was planning a bond.

India’s Covid Crisis Threatens a Global Oil Recovery - Bloomberg

India’s Covid Crisis Threatens a Global Oil Recovery - Bloomberg

India, the world’s third-largest oil consumer behind the U.S. and China, was meant to be a major driver of oil’s demand recovery as economies reopened. But the country’s devastating health crisis has made that impossible. Everyone from oil traders to the world’s biggest producers are panicking.

Indian Prime Minister Narendra Modi is facing mounting criticism over a surge in coronavirus cases that began shortly after his government declared the country was “in the endgame of the Covid-19 pandemic,” allowed large election rallies and gave the go-ahead to the Kumbh Mela religious festival that attracted an estimated 3.5 million devotees.

As my Bloomberg Opinion colleague David Fickling wrote, the current situation in India means Covid will probably kill more people in 2021 than it did last year. The pandemic death toll in the country is likely to be many times higher than official figures suggest.

#Saudi State Miner Maaden Said to Name Third CEO in 13 Months - Bloomberg

Saudi State Miner Maaden Said to Name Third CEO in 13 Months - Bloomberg

Saudi Arabia’s state miner has appointed its third chief executive officer in the past 13 months after the departure of Mosaed Al Ohali, according to people familiar with the matter.

Abdulaziz Al Harbi, a senior vice president at Saudi Arabian Mining Co., will replace Al Ohali as acting CEO until further notice, said the people, who asked not to be identified because the matter is private. The company, also known as Maaden, may officially announce the resignation as soon as this week, they said.

Maaden’s stock rose 2.6% to an all-time high of 59.30 riyals on Sunday, before paring gains to 1.5% at 1:03 p.m. in Riyadh.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

#Sharjah economic growth to rebound by 4%, but deficit to remain high: S&P | ZAWYA MENA Edition

Sharjah economic growth to rebound by 4%, but deficit to remain high: S&P | ZAWYA MENA Edition

S&P Global Ratings has affirmed its “BBB-“ long-term sovereign credit rating with a stable outlook for Sharjah.

The rating is based on S&P’s expectation that despite the emirate’s large fiscal deficits, the government debt will remain below 60 percent of the gross domestic product (GDP) through 2024.

The local economy fell sharply by about 10 percent in real terms last year, while government revenues also plunged. This has resulted in elevated fiscal deficits.

In a report on Sunday, S&P said it has also assigned a “A-3” short-term rating to Sharjah.

It expects the emirate’s economic growth to rebound by four percent in 2021, and growth to average around two percent a year from 2022 to 2024.

Exclusive- #Qatar Petroleum plans debut dollar public bond sale - sources | Reuters

Exclusive-Qatar Petroleum plans debut dollar public bond sale - sources | Reuters

Qatar Petroleum (QP) is planning its first ever U.S. dollar-denominated public international bond sale, two sources said, the latest Gulf energy giant to tap debt markets in an age of lower energy prices.

The world’s top liquefied natural gas (LNG) supplier sent banks a request for proposals for the planned debt sale in the last few weeks, the sources said, with one of them adding it will likely raise billions of dollars.

“It will be a big deal,” the source said.

QP, which did not immediately respond to a request for comment, plans to vastly expand its capacity in coming years.

The company said last month it would take full ownership of its Qatargas 1 LNG plant, the country’s first, when its 25-year contract with international investors including Exxon Mobil Corp and Total SE expires next year.

ICD-Brookfield CEO on Opening #Dubai's Largest Office Tower in a Pandemic - Bloomberg

ICD-Brookfield CEO on Opening Dubai's Largest Office Tower in a Pandemic - Bloomberg

ICD-Brookfield opened Dubai's largest standalone office tower last September, when the worst of the coronavirus outbreak appeared over. More than half a year and another spike in infections later, regular office life remains a way off. But, after initially halting lease negotiations, many multinationals are now coming back and looking to conclude deals. CEO Rob Devereux spoke to Bloomberg's Zainab Fattah. (Source: Bloomberg)

Mideast Shares Trade Mixed With Oil, Earnings Eyed: Inside EM - Bloomberg

Mideast Shares Trade Mixed With Oil, Earnings Eyed: Inside EM - Bloomberg

Equities benchmarks in the Middle East traded little changed on Sunday as investors weigh lower Treasury yields, pressure on the oil price and corporate earnings.

Saudi Arabia’s benchmark Tadawul All Share Index climbed the most in the region, trading 0.3% higher by 11:12 a.m. in Riyadh. Gauges in Abu Dhabi, Oman and Egypt also made gains while those in Kuwait and Qatar are down. Meanwhile, indexes in Dubai, Bahrain and Israel are little-changed.

Stocks and currencies in developing economies rose last week as easing Treasury yields offset concerns over a rise in virus cases. But Brent crude, a major source of revenue for Gulf countries, declined for the week as the surge in cases in India could hamper demand recovery. The country is the world’s third-largest oil importer after the U.S. and China.

On the earnings front, Vodafone Qatar and Abu Dhabi Commercial Bank are expected to deliver results this week.

• In Saudi Arabia, Saudi Kayan climbed as much as 5% after posting a profit for the 1Q that compares to a loss last year
• Abu Dhabi’s ADX General Index extends increase this year to 21%, the best performance among major gauges in the region
• Etisalat rises 0.5% on Sunday, boosting the index the most by points, followed by First Abu Dhabi Bank +0.3% and Ras Al Khaimah Ceramics +4.7% at 12:10 p.m. local time
• Dubai’s DFM General Index trades near its 100-day moving average, a mark it has traded above for most part of the time since early November

MIDEAST STOCKS Major Gulf bourses off to a mixed start | Reuters

MIDEAST STOCKS Major Gulf bourses off to a mixed start | Reuters

Major Gulf markets were mixed in early trade on Sunday, with the Saudi index on track to extend gains from the previous session helped by in healthcare and petrochemical shares.

Saudi Arabia's benchmark index (.TASI) gained 0.3%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) rising 1.8% and Saudi Kayan Petrochemical (2350.SE) jumping 4.4%.

The petrochemical firm posted a net profit of 492.9 million riyals in first-quarter compared to a loss of 516.8 million riyals a year earlier.

In Dubai, the main share index (.DFMGI) eased 0.1%, hit by a 0.3% decrease in blue-chip developer Emaar Properties (EMAR.DU) and 0.6% fall in Dubai Investments (DINV.DU).

The Abu Dhabi index (.ADI) added 0.1%, supported by a 0.5% gain in telecoms giant Etisalat (ETISALAT.AD).

The telecoms operator is expected to tap the international bond market in the coming days ahead of a 1.2 billion euro ($1.45 billion) bond maturity in June, Reuters reported, citing three sources familiar with the matter.

Meanwhile, the United Arab Emirates has suspended all incoming flights from India due to a surge in coronavirus infections there, the UAE's National Emergency Crisis and Disaster Management Authority (NCEMA) said on Thursday. read more

In Qatar, the benchmark (.QSI) lost 0.3%, with Commercial Bank (COMB.QA) falling 0.9%, while Qatar Islamic Bank (QISB.QA) was down 0.3%.

#Dubai's Shuaa to pay $20.6mln cash dividends after profits more than doubled | ZAWYA MENA Edition

Dubai's Shuaa to pay $20.6mln cash dividends after profits more than doubled | ZAWYA MENA Edition

Asset management and investment banking firm Shuaa Capital is set to distribute more than 76 million dirhams ($20.6 million) in cash dividends for the year ending December 31, 2020.

The payout was approved during the latest general assembly, the Dubai-listed company said in a bourse filing posted on Sunday.

Pegged at three fils per share, the dividends represent three percent of the company’s share capital.

The announcement comes after the company, which had earlier merged with Abu Dhabi Financial Group, reported more than doubling its profit for the past year.

Net profit went up 166 percent to 125 million dirhams for the full year 2020 compared to 47 million dirhams in 2019.

“We achieved key milestones and landmark transactions, all while delivering a transformational integration programme against a backdrop of a global pandemic. It is therefore particularly pleasing that we have more than doubled profits year-on-year, proving the resilience and potential of our business model,” Jassim Alseddiqi, group CEO of Shuaa Capital, said in February.

#Oman to meet half of state borrowing needs through sukuk - Moody's | ZAWYA MENA Edition

Oman to meet half of state borrowing needs through sukuk - Moody's | ZAWYA MENA Edition

Moody’s Investors Service said the rising share of Islamic assets in Oman’s banking assets will continue to deepen the market for domestic government sukuk, supporting government liquidity.

“We expect the government will meet $2.0 billion-$2.5 billion of its annual borrowing needs with sukuk issuance, around half of which will likely be in the domestic market, supported by the growing share of Islamic banking assets,” it said in a note.

Domestic Islamic banking assets in Oman continue to grow at a significantly faster pace than conventional assets, government data showed.

Oman financed a modest 2.6 percent of its fiscal deficit through net sukuk issuance in 2020, down significantly from around 14 percent in 2019, 24 percent in 2018 and 20 percent in 2017.

“The declining share of sukuk in the funding mix reflects a general absence of international sukuk issuance, in part driven by investors’ preference for conventional bonds amid tighter global liquidity conditions, and the increase in Oman's sovereign market risk premia following the sharp decline in oil prices during 2020,” Moody’s said.

Texan Company and Dana Gas Cancel $236 Million Egyptian Deal - Bloomberg

Texan Company and Dana Gas Cancel $236 Million Egyptian Deal - Bloomberg

Dana Gas PJSC’s $236 million deal to sell oil and gas blocks in Egypt to Texan company IPR Energy Group has fallen through.

The agreement between the two firms, announced in October, was terminated after they failed to finalize terms, Dana Gas said in a statement on Sunday to the Abu Dhabi stock exchange.

Dana Gas said it will now keep the assets, which accounted for output equivalent to 31,000 barrels a day of oil in 2019. The company, one of the Middle East’s biggest private-sector gas producers, will also drill an exploration well in the offshore Block 6 in the first quarter of 2023.

The Sharjah, United Arab Emirates-based firm was set to receive $153 million in cash and as much as $83 million in contingent payments. While Dana Gas is still assessing the financial implications of the cancellation, it believes the Egyptian assets will improve its balance sheet and profitability “in the coming years,” it said.

Dana Gas said last year the sale would help it pay back a $309 million sukuk. While the Islamic bond was redeemed at the end of November, the firm took on a $90 million bridge loan from Dubai’s Mashreq Bank. Dana Gas did not say in Sunday’s statement how it would repay the loan.

The company had intended to focus on expanding output in the Kurdish region of northern Iraq after the sale. Dana Gas said on Tuesday that the Kurdistan Regional Government -- which has been late paying invoices for production in the past -- was settling its bills “in a timely manner”.