Oil rises over 1% as demand hopes bolster sentiment | Reuters
Oil rose more than 1% on Monday as Chinese economic figures and U.S. vaccination rates pointed to a strong rebound in demand in the world’s two largest economies.
Investors remain wary, however, over record-breaking infection rates in India, the third-largest fuel importer worldwide, along with higher OPEC+ oil supply.
Brent crude rose 80 cents, or 1.2%, to settle at $67.56 a barrel. U.S. West Texas Intermediate rose 91 cents, or 1.4%, to settle at $64.49 a barrel.
The United States and China, the world’s top two oil consumers, are expected to drive a recovery in demand from the coronavirus pandemic.
“Even as COVID-19 cases hit record levels this week, oil prices have moved higher on growing vaccination numbers in developed markets,” a BofA Global Research report said. “Recent data points to the high effectiveness of vaccines at preventing infections and fatalities.”
Monday, 3 May 2021
Aldar to invest in European PropTech fund run by venture capital firm Fifth Wall | The National
Aldar to invest in European PropTech fund run by venture capital firm Fifth Wall | The National
Aldar Properties is partnering with US venture capital firm Fifth Wall to invest in a fund focused on supporting property technology start-ups in Europe.
Through the investment, Aldar plans to tap into Fifth Wall’s network of PropTech start-ups in Europe and "gain access to the latest technology and trends that are driving the evolution of the real estate sector”, the developer said on Monday.
Aldar is the UAE’s biggest listed developer with a market capitalisation of more than Dh27.75 billion ($7.5bn).
The company recently revamped its business and adopted a new operating model with a parent company overseeing its core development and investment businesses.
This included the creation of an Aldar Ventures unit.
“Our investment in Fifth Wall marks the next phase of our innovation journey and will allow us to keep pace with the advancements of the Fourth Industrial Revolution,” said Maan Al Awlaqi, Aldar’s executive director of strategy and transformation.
Aldar Properties is partnering with US venture capital firm Fifth Wall to invest in a fund focused on supporting property technology start-ups in Europe.
Through the investment, Aldar plans to tap into Fifth Wall’s network of PropTech start-ups in Europe and "gain access to the latest technology and trends that are driving the evolution of the real estate sector”, the developer said on Monday.
Aldar is the UAE’s biggest listed developer with a market capitalisation of more than Dh27.75 billion ($7.5bn).
The company recently revamped its business and adopted a new operating model with a parent company overseeing its core development and investment businesses.
This included the creation of an Aldar Ventures unit.
“Our investment in Fifth Wall marks the next phase of our innovation journey and will allow us to keep pace with the advancements of the Fourth Industrial Revolution,” said Maan Al Awlaqi, Aldar’s executive director of strategy and transformation.
#SaudiArabia could ease fiscal adjustment to help recovery, IMF says | Reuters
Saudi Arabia could ease fiscal adjustment to help recovery, IMF says | Reuters
Saudi Arabia's plans to balance its finances are making good progress but a slower pace of adjustment could be considered this year to support the recovery from the coronavirus crisis, the International Monetary Fund said on Monday.
Saudi Arabia's economy, the largest in the Arab world, is expected to grow 2.1% in 2021 after shrinking 4.1% last year amid the twin shock of the pandemic and lower oil prices, the IMF said in a report.
The forecast figure is lower than a 2.9% real gross domestic product (GDP) growth estimate the IMF published last month due to a downward revision of Saudi oil GDP, now expected to contract by 0.5% this year, against an earlier 1.6% growth estimate.
This was due to production levels agreed by the Organization of the Petroleum Exporting Countries, Russia and their allies, a group known as OPEC+, said the Fund.
Saudi Arabia's plans to balance its finances are making good progress but a slower pace of adjustment could be considered this year to support the recovery from the coronavirus crisis, the International Monetary Fund said on Monday.
Saudi Arabia's economy, the largest in the Arab world, is expected to grow 2.1% in 2021 after shrinking 4.1% last year amid the twin shock of the pandemic and lower oil prices, the IMF said in a report.
The forecast figure is lower than a 2.9% real gross domestic product (GDP) growth estimate the IMF published last month due to a downward revision of Saudi oil GDP, now expected to contract by 0.5% this year, against an earlier 1.6% growth estimate.
This was due to production levels agreed by the Organization of the Petroleum Exporting Countries, Russia and their allies, a group known as OPEC+, said the Fund.
Craving More, #AbuDhabi’s New Wealth Fund Can’t Move Fast Enough - Bloomberg
Craving More, Abu Dhabi’s New Wealth Fund Can’t Move Fast Enough - Bloomberg
Less than two years into frenetic dealmaking that reeled in a haul from pharmaceuticals to agricultural trading, Mohamed Hassan Alsuwaidi’s biggest worry is if he’s moving “fast enough.”
The sense of urgency may seem surprising from the chief executive of Abu Dhabi’s newest sovereign fund, ADQ, which amassed an estimated $110 billion in assets since being founded in 2018, including a 45% stake in Louis Dreyfus Company BV.
“We’ll deploy significant amounts this year and over the next five years,” Alsuwaidi, 38, said in a rare interview. “People will be amazed at how much we will be able to deploy in the markets we operate.”
Even in a city that’s among the few globally to manage around $1 trillion in sovereign wealth capital, ADQ has quickly emerged as Abu Dhabi’s go-to lever for addressing its biggest weaknesses.
Although Alsuwaidi wouldn’t specify ADQ’s size, he said an estimate from Global SWF that put it at $110 billion isn’t too far off. Moreover, that number should double within seven to 10 years, he said. ADQ currently has 120 employees, of which 60 to 70 are directly involved in the fund’s investments.
Less than two years into frenetic dealmaking that reeled in a haul from pharmaceuticals to agricultural trading, Mohamed Hassan Alsuwaidi’s biggest worry is if he’s moving “fast enough.”
The sense of urgency may seem surprising from the chief executive of Abu Dhabi’s newest sovereign fund, ADQ, which amassed an estimated $110 billion in assets since being founded in 2018, including a 45% stake in Louis Dreyfus Company BV.
“We’ll deploy significant amounts this year and over the next five years,” Alsuwaidi, 38, said in a rare interview. “People will be amazed at how much we will be able to deploy in the markets we operate.”
Even in a city that’s among the few globally to manage around $1 trillion in sovereign wealth capital, ADQ has quickly emerged as Abu Dhabi’s go-to lever for addressing its biggest weaknesses.
Although Alsuwaidi wouldn’t specify ADQ’s size, he said an estimate from Global SWF that put it at $110 billion isn’t too far off. Moreover, that number should double within seven to 10 years, he said. ADQ currently has 120 employees, of which 60 to 70 are directly involved in the fund’s investments.
Mideast Stocks: Property, banking stocks boost #Dubai; #Saudi index falls | ZAWYA MENA Edition
Mideast Stocks: Property, banking stocks boost Dubai; Saudi index falls | ZAWYA MENA Edition
Most major stock markets in the Gulf closed higher on Monday, with the Dubai index outperforming the region on the back of property and banking shares, while the Saudi bourse was dragged down by material and financial stocks.
The Dubai index rose 1.1%, as blue-chip developer Emaar Properties added 1.8% and Dubai Islamic Bank gained 1.4%, snapping a four-session losing streak.
Dubai Investments jumped 2.6%, extending gains from the previous session, a day after the diversified investment group swung to a quarterly net profit of 123.8 million dirhams ($33.71 million).
Saudi Arabia's benchmark index fell for a straight third day, losing 0.5%, as the country's biggest lender The Saudi National Bank and petrochemical firm Saudi Basic Industries 2010.SE shed 1.3% and 1.2%, respectively.
The slide was capped by Dr Sulaiman Al-Habib Medical Services Group adding 0.8%, a day after announcing a new hospital project, and consumer food and beverages firm Almarai Co rising 1.5% on plans to invest 6.6 billion riyals to expand its poultry segment.
Abu Dhabi's index rose 0.3% as Emirates Telecommunications Group added 0.6%, rising for a second day after reporting a nearly 8% increase in first-quarter profit on Thursday.
Abu Dhabi Islamic Bank closed 2.9% higher, its sharpest intra-day gain since Feb. 25, after it reported first-quarter profit that more than doubled on Sunday.
The Qatari index closed up 0.3% after three days of consecutive declines as Industries Qatar and United Development added 1.7% and 2.3%, respectively.
Most major stock markets in the Gulf closed higher on Monday, with the Dubai index outperforming the region on the back of property and banking shares, while the Saudi bourse was dragged down by material and financial stocks.
The Dubai index rose 1.1%, as blue-chip developer Emaar Properties added 1.8% and Dubai Islamic Bank gained 1.4%, snapping a four-session losing streak.
Dubai Investments jumped 2.6%, extending gains from the previous session, a day after the diversified investment group swung to a quarterly net profit of 123.8 million dirhams ($33.71 million).
Saudi Arabia's benchmark index fell for a straight third day, losing 0.5%, as the country's biggest lender The Saudi National Bank and petrochemical firm Saudi Basic Industries 2010.SE shed 1.3% and 1.2%, respectively.
The slide was capped by Dr Sulaiman Al-Habib Medical Services Group adding 0.8%, a day after announcing a new hospital project, and consumer food and beverages firm Almarai Co rising 1.5% on plans to invest 6.6 billion riyals to expand its poultry segment.
Abu Dhabi's index rose 0.3% as Emirates Telecommunications Group added 0.6%, rising for a second day after reporting a nearly 8% increase in first-quarter profit on Thursday.
Abu Dhabi Islamic Bank closed 2.9% higher, its sharpest intra-day gain since Feb. 25, after it reported first-quarter profit that more than doubled on Sunday.
The Qatari index closed up 0.3% after three days of consecutive declines as Industries Qatar and United Development added 1.7% and 2.3%, respectively.
IMF Sees #Saudi Non-Oil Growth Rebounding as Economy Recovers - Bloomberg
IMF Sees Saudi Non-Oil Growth Rebounding as Economy Recovers - Bloomberg
The International Monetary Fund expects Saudi Arabia’s economic recovery to gather speed over the next two years but recommended increasing spending to support low-income households that have struggled to adapt to austerity measures.
The fund expects the biggest Arab economy to grow 2.1% this year -- revised down from a recent projection of 2.9% -- gathering speed to reach 4.8% growth in 2022, according to a statement issued after its regular Article IV consultation with the kingdom. Non-oil growth, the engine of job creation, is projected at 3.9% this year and 3.6% next year.
The government’s efforts to rein in spending should be “carefully calibrated in the short-term to ensure the recovery continues to be well supported,” the IMF team said in its statement. “Spending on the social safety net should be increased to support low-income households and help offset the loss of purchasing power they experienced.”
Saudi Arabia’s oil-dependent economy shrunk 4.1% last year and unemployment soared to the highest level on record during a dual crisis caused by the pandemic and low oil prices. The government tripled value-added tax and cut back allowances for government workers. Finance Minister Mohammed Al-Jadaan said this week the kingdom plans to reduce the value-added tax after the economy rebounds, without specifying a time frame.
The International Monetary Fund expects Saudi Arabia’s economic recovery to gather speed over the next two years but recommended increasing spending to support low-income households that have struggled to adapt to austerity measures.
The fund expects the biggest Arab economy to grow 2.1% this year -- revised down from a recent projection of 2.9% -- gathering speed to reach 4.8% growth in 2022, according to a statement issued after its regular Article IV consultation with the kingdom. Non-oil growth, the engine of job creation, is projected at 3.9% this year and 3.6% next year.
The government’s efforts to rein in spending should be “carefully calibrated in the short-term to ensure the recovery continues to be well supported,” the IMF team said in its statement. “Spending on the social safety net should be increased to support low-income households and help offset the loss of purchasing power they experienced.”
Saudi Arabia’s oil-dependent economy shrunk 4.1% last year and unemployment soared to the highest level on record during a dual crisis caused by the pandemic and low oil prices. The government tripled value-added tax and cut back allowances for government workers. Finance Minister Mohammed Al-Jadaan said this week the kingdom plans to reduce the value-added tax after the economy rebounds, without specifying a time frame.
#SaudiArabia Names Former Aramco Dealmaker as Economy Minister - Bloomberg
Saudi Arabia Names Former Aramco Dealmaker as Economy Minister - Bloomberg
Saudi Arabia appointed a former deal-maker for oil giant Saudi Aramco as economy and planning minister, as officials try to rally the biggest Arab economy from the dual shock of the coronavirus pandemic and last year’s oil price rout.
The new minister, Faisal Alibrahim, was named Monday in a series of royal orders. He had been vice minister of economy and planning since 2018, and was formerly head of a mergers and acquisitions group at Saudi Aramco, among other roles there. The position of economy minister had been held on an acting basis by the kingdom’s finance minister since last year.
Alibrahim takes over after coronavirus lockdowns and oil market turmoil shook the world’s largest crude exporter, causing gross domestic product to contract 4.1% in 2020. The economy is showing signs of recovery now and is expected to expand 2.9% this year, according to the International Monetary Fund.
In a local television interview last week, Crown PrinceMohammed bin Salman predicted a V-shaped rebound and said citizen unemployment -- currently at 12.6% -- could fall below 11% this year.
Prince Mohammed, the kingdom’s de facto ruler, oversees much of Saudi Arabia’s economic policy-making as he tries to diversify the kingdom away from oil. But the ministry also plays a key role.
Also in Monday’s royal orders, King Salman bin Abdulaziz promoted a woman, Eiman Al-Mutairi, to become vice minister of commerce. He removed his son Prince Sultan bin Salman as the head of the space agency, and replaced him with Abdullah Al-Swaha, the current communications and information technology minister.
Prince Sultan, the elder half-brother to Prince Mohammed, was appointed as an adviser to the king instead.
Saudi Arabia appointed a former deal-maker for oil giant Saudi Aramco as economy and planning minister, as officials try to rally the biggest Arab economy from the dual shock of the coronavirus pandemic and last year’s oil price rout.
The new minister, Faisal Alibrahim, was named Monday in a series of royal orders. He had been vice minister of economy and planning since 2018, and was formerly head of a mergers and acquisitions group at Saudi Aramco, among other roles there. The position of economy minister had been held on an acting basis by the kingdom’s finance minister since last year.
Alibrahim takes over after coronavirus lockdowns and oil market turmoil shook the world’s largest crude exporter, causing gross domestic product to contract 4.1% in 2020. The economy is showing signs of recovery now and is expected to expand 2.9% this year, according to the International Monetary Fund.
In a local television interview last week, Crown PrinceMohammed bin Salman predicted a V-shaped rebound and said citizen unemployment -- currently at 12.6% -- could fall below 11% this year.
Prince Mohammed, the kingdom’s de facto ruler, oversees much of Saudi Arabia’s economic policy-making as he tries to diversify the kingdom away from oil. But the ministry also plays a key role.
Also in Monday’s royal orders, King Salman bin Abdulaziz promoted a woman, Eiman Al-Mutairi, to become vice minister of commerce. He removed his son Prince Sultan bin Salman as the head of the space agency, and replaced him with Abdullah Al-Swaha, the current communications and information technology minister.
Prince Sultan, the elder half-brother to Prince Mohammed, was appointed as an adviser to the king instead.
Oil slips towards $66 as India offsets demand hopes elsewhere | Reuters
Oil slips towards $66 as India offsets demand hopes elsewhere | Reuters
Oil dropped towards $66 a barrel on Monday as concern about demand in India and higher OPEC+ supply offset optimism over a strong demand rebound in countries including the United States and China.
India on Monday reported more than 300,000 new coronavirus cases for a 12th straight day. The new wave of the virus has already led to a drop in fuel sales in the world’s third-largest consumer in April.
Brent crude fell 35 cents, or 0.5%, to $66.41 a barrel by 1000 GMT. U.S. West Texas Intermediate dropped 27 cents, or 0.4%, to $63.31.
“There is no doubt that India plays a major role when we talk about oil demand,” said Avatrade analyst Naeem Aslam. “As for the rest of the world, such as China, Europe, the Middle East and the U.S., the coronavirus vaccination process continues to roll on and we see tremendous progress.”
Oil dropped towards $66 a barrel on Monday as concern about demand in India and higher OPEC+ supply offset optimism over a strong demand rebound in countries including the United States and China.
India on Monday reported more than 300,000 new coronavirus cases for a 12th straight day. The new wave of the virus has already led to a drop in fuel sales in the world’s third-largest consumer in April.
Brent crude fell 35 cents, or 0.5%, to $66.41 a barrel by 1000 GMT. U.S. West Texas Intermediate dropped 27 cents, or 0.4%, to $63.31.
“There is no doubt that India plays a major role when we talk about oil demand,” said Avatrade analyst Naeem Aslam. “As for the rest of the world, such as China, Europe, the Middle East and the U.S., the coronavirus vaccination process continues to roll on and we see tremendous progress.”
Iraq Sees Steady Oil Prices and Considers Buying Exxon Stake - Bloomberg
Iraq Sees Steady Oil Prices and Considers Buying Exxon Stake - Bloomberg
Iraq, OPEC’s second-biggest oil producer, said crude prices would probably remain around $65 a barrel in the coming months and announced it’s considering buying Exxon Mobil Corp.’s stake in one of the world’s biggest fields.
The Organization of Petroleum Exporting Countries and its allies -- a 23-nation grouping known as OPEC+ -- will continue trying to keep crude prices “within normal averages,” Oil Minister Ihsan Abdul Jabbar told reporters in Baghdad. “There is no concern about a drop in prices.”
The comments suggest OPEC+ remains confident about the outlook for energy demand, despite the surge in coronavirus cases in India, the third-largest oil importer. The group of major exporters began unprecedented supply cuts last year to bolster prices as the pandemic spread. It plans to ease the restrictions between May and July and increase daily output by just over 2 million barrels.
Exxon Stake
Baghdad may end up buying Exxon’s 32.7% stake in the West Qurna-1 oil field in southern Iraq, the minister said. If so, the Iraqi government would probably purchase it through state-owned Basra Oil Co., he said.
The U.S. company is planning to sell the stake in the marquee field -- which has recoverable reserves of more than 20 billion barrels -- partly to reduce the mountain of debt it accumulated last year.
West Qurna-1 used to be considered one of the oil industry’s glittering prizes, with Exxon becoming lead contractor in 2010. But tough contractual terms, payment delays, OPEC production cuts and political instability have reduced its appeal in recent years.
Abdul Jabbar also said Iraq would spend $3 billion in the next five years to boost Basrah Gas Co.’s natural-gas output by around 40% from 950 million standard cubic feet a day. A separate project to develop the eastern Mansuriya gas field with China’s Sinopec will probably cost $2.1 billion, he said.
Iraq, OPEC’s second-biggest oil producer, said crude prices would probably remain around $65 a barrel in the coming months and announced it’s considering buying Exxon Mobil Corp.’s stake in one of the world’s biggest fields.
The Organization of Petroleum Exporting Countries and its allies -- a 23-nation grouping known as OPEC+ -- will continue trying to keep crude prices “within normal averages,” Oil Minister Ihsan Abdul Jabbar told reporters in Baghdad. “There is no concern about a drop in prices.”
The comments suggest OPEC+ remains confident about the outlook for energy demand, despite the surge in coronavirus cases in India, the third-largest oil importer. The group of major exporters began unprecedented supply cuts last year to bolster prices as the pandemic spread. It plans to ease the restrictions between May and July and increase daily output by just over 2 million barrels.
Exxon Stake
Baghdad may end up buying Exxon’s 32.7% stake in the West Qurna-1 oil field in southern Iraq, the minister said. If so, the Iraqi government would probably purchase it through state-owned Basra Oil Co., he said.
The U.S. company is planning to sell the stake in the marquee field -- which has recoverable reserves of more than 20 billion barrels -- partly to reduce the mountain of debt it accumulated last year.
West Qurna-1 used to be considered one of the oil industry’s glittering prizes, with Exxon becoming lead contractor in 2010. But tough contractual terms, payment delays, OPEC production cuts and political instability have reduced its appeal in recent years.
Abdul Jabbar also said Iraq would spend $3 billion in the next five years to boost Basrah Gas Co.’s natural-gas output by around 40% from 950 million standard cubic feet a day. A separate project to develop the eastern Mansuriya gas field with China’s Sinopec will probably cost $2.1 billion, he said.
#AbuDhabi’s Murban Crude Priced After First Month of Trading - Bloomberg
Abu Dhabi’s Murban Crude Priced After First Month of Trading - Bloomberg
Abu Dhabi for the first time used futures contracts it launched in March to price its benchmark Murban oil grade.
Government-owned Abu Dhabi National Oil Co.’s Murban crude will sell for $63.35 a barrel in June, according to a company statement. That’s down from April’s level of $63.94 for the emirate’s flagship crude.
Abu Dhabi is changing the way it prices its most valuable export, shifting from a retroactive pricing system in place until last year to a new futures market. Along the way, it hopes to bring enough physical and financial trading to the new bourse to convince other regional producers to use Murban as the benchmark for their own crude exports.
The official selling price for Murban is determined from futures trading on the ICE Futures Abu Dhabi exchange, which Adnoc owns along with Atlanta-based Intercontinental Exchange Inc. Murban futures contracts began trading at the end of March, the first step in Adnoc’s plan to establish the grade as a benchmark.
Murban crude for July lifting was down 0.6% at $64.51 a barrel at 11:20 a.m. in Abu Dhabi. Average daily volume for trading in April was 6,625 contracts, ICE said in a post on LinkedIn. Established crude benchmarks like Brent in Europe and West Texas Intermediate in the U.S. each trade roughly 1 million lots daily.
Abu Dhabi for the first time used futures contracts it launched in March to price its benchmark Murban oil grade.
Government-owned Abu Dhabi National Oil Co.’s Murban crude will sell for $63.35 a barrel in June, according to a company statement. That’s down from April’s level of $63.94 for the emirate’s flagship crude.
Abu Dhabi is changing the way it prices its most valuable export, shifting from a retroactive pricing system in place until last year to a new futures market. Along the way, it hopes to bring enough physical and financial trading to the new bourse to convince other regional producers to use Murban as the benchmark for their own crude exports.
The official selling price for Murban is determined from futures trading on the ICE Futures Abu Dhabi exchange, which Adnoc owns along with Atlanta-based Intercontinental Exchange Inc. Murban futures contracts began trading at the end of March, the first step in Adnoc’s plan to establish the grade as a benchmark.
Murban crude for July lifting was down 0.6% at $64.51 a barrel at 11:20 a.m. in Abu Dhabi. Average daily volume for trading in April was 6,625 contracts, ICE said in a post on LinkedIn. Established crude benchmarks like Brent in Europe and West Texas Intermediate in the U.S. each trade roughly 1 million lots daily.
SABIC likely to see strong earnings in 2021 on higher petchem prices | ZAWYA MENA Edition
SABIC likely to see strong earnings in 2021 on higher petchem prices | ZAWYA MENA Edition
Al Rajhi Capital has raised its target price on Saudi Basic Industries Corp (SABIC) to 120 Saudi riyals ($32) per share from the earlier 115 riyals per share following its robust first-quarter 2021 results and on potential synergies from the Aramco deal.
In a report the Riyadh-based investment bank said given the upward movement in petrochemical prices over the past few quarters, the company is likely to witness strong earnings growth in 2021.
It has, however, maintained a Neutral rating on the stock as the price has “already gained 22 percent YTD, implying the fundamentals are already priced.”
The petrochemicals group, which is majority owned by state oil giant Saudi Aramco, reported a Q1 net profit of 4.86 billion riyals, pivoting from a loss in the same period a year earlier.
Al Rajhi Capital said the result was largely in-line top-line and bottom-line, as improved cost efficiencies, along with likely higher-than-expected equity income offset weaker-than-expected sales volume during the quarter.
Al Rajhi Capital has raised its target price on Saudi Basic Industries Corp (SABIC) to 120 Saudi riyals ($32) per share from the earlier 115 riyals per share following its robust first-quarter 2021 results and on potential synergies from the Aramco deal.
In a report the Riyadh-based investment bank said given the upward movement in petrochemical prices over the past few quarters, the company is likely to witness strong earnings growth in 2021.
It has, however, maintained a Neutral rating on the stock as the price has “already gained 22 percent YTD, implying the fundamentals are already priced.”
The petrochemicals group, which is majority owned by state oil giant Saudi Aramco, reported a Q1 net profit of 4.86 billion riyals, pivoting from a loss in the same period a year earlier.
Al Rajhi Capital said the result was largely in-line top-line and bottom-line, as improved cost efficiencies, along with likely higher-than-expected equity income offset weaker-than-expected sales volume during the quarter.
#SaudiArabia Plans Sale of Grain Silos as Privatizations Pick Up - Bloomberg
Saudi Arabia Plans Sale of Grain Silos as Privatizations Pick Up - Bloomberg
Saudi Arabia, one of the world’s biggest buyers of wheat and barley, is preparing to sell some of its grain silos as part of Crown Prince Mohammed Bin Salman’s privatization drive.
State-owned Saudi Grains Organization aims to start selling silo sites as soon as this year, according to people familiar with the matter. SAGO will seek bids from foreign and local firms, said the people. No decisions have been made and SAGO may retain the assets, they said.
Under Prince Mohammed, Saudi Arabia has increased asset sales as it looks to open up and diversify the economy from oil. The government is also trying to narrow a budget deficit that ballooned last year due to coronavirus lockdowns and a slump in energy prices.
SAGO has been a key part of the kingdom’s privatization plans. In the past year, it sold all its flour mills to groups of local and international investors for about $1.5 billion. HSBC Holdings Plc advised it on all those transactions.
SAGO has 3.3 million tons of grain-storage space, according to its website. The country, much of which is desert, vies with China as the biggest importer of barley, buying about 6.9 million tons annually. It uses the grain mostly to feed sheep, camels and goats. It also ships in around 3 million tons a year of wheat.
Saudi Arabia, one of the world’s biggest buyers of wheat and barley, is preparing to sell some of its grain silos as part of Crown Prince Mohammed Bin Salman’s privatization drive.
State-owned Saudi Grains Organization aims to start selling silo sites as soon as this year, according to people familiar with the matter. SAGO will seek bids from foreign and local firms, said the people. No decisions have been made and SAGO may retain the assets, they said.
Under Prince Mohammed, Saudi Arabia has increased asset sales as it looks to open up and diversify the economy from oil. The government is also trying to narrow a budget deficit that ballooned last year due to coronavirus lockdowns and a slump in energy prices.
SAGO has been a key part of the kingdom’s privatization plans. In the past year, it sold all its flour mills to groups of local and international investors for about $1.5 billion. HSBC Holdings Plc advised it on all those transactions.
SAGO has 3.3 million tons of grain-storage space, according to its website. The country, much of which is desert, vies with China as the biggest importer of barley, buying about 6.9 million tons annually. It uses the grain mostly to feed sheep, camels and goats. It also ships in around 3 million tons a year of wheat.
Global Islamic finance forecast to grow as main markets recover - S&P | Reuters
Global Islamic finance forecast to grow as main markets recover - S&P | Reuters
The $2.2 trillion global Islamic finance industry is expected to grow 10%-12% over 2021-2022 due to increased Islamic bond issuance and a modest economic recovery in the main Islamic finance markets, S&P Global Ratings said.
The industry continued to grow last year despite the COVID-19 pandemic, although at a lower pace than in 2019, with global Islamic assets expanding by 10.6% in 2020 against growth of 17.3% the previous year.
Islamic finance, which bans interest payments and pure monetary speculation, has been on the rise for many years across markets in Africa, the Middle East and Southeast Asia, but it remains a fragmented industry with uneven implementation of its rules.
"Over the next 12 months, we could see progress on a unified global legal and regulatory framework for Islamic finance ... we believe that such a framework could help resolve the lack of standardisation and harmonisation that the Islamic finance industry has faced for decades," S&P said on Monday.
The $2.2 trillion global Islamic finance industry is expected to grow 10%-12% over 2021-2022 due to increased Islamic bond issuance and a modest economic recovery in the main Islamic finance markets, S&P Global Ratings said.
The industry continued to grow last year despite the COVID-19 pandemic, although at a lower pace than in 2019, with global Islamic assets expanding by 10.6% in 2020 against growth of 17.3% the previous year.
Islamic finance, which bans interest payments and pure monetary speculation, has been on the rise for many years across markets in Africa, the Middle East and Southeast Asia, but it remains a fragmented industry with uneven implementation of its rules.
"Over the next 12 months, we could see progress on a unified global legal and regulatory framework for Islamic finance ... we believe that such a framework could help resolve the lack of standardisation and harmonisation that the Islamic finance industry has faced for decades," S&P said on Monday.
Oil drops towards $66 as India demand concerns weigh | Reuters
Oil drops towards $66 as India demand concerns weigh | Reuters
Oil dropped towards $66 a barrel on Monday as concern about demand in India and higher OPEC+ supply offset optimism over rising demand in other major consumers such as China and the United States.
India on Monday reported more than 300,000 new coronavirus cases for a 12th straight day. The new wave of the virus has already led to a drop in fuel sales in the world’s third-largest consumer in April.
Brent crude fell 31 cents, or 0.5%, to $66.45 a barrel by 0815 GMT. U.S. West Texas Intermediate was down 19 cents, or 0.3%, at $63.39.
“There is no doubt that India plays a major role when we talk about oil demand, and the fact that the country is suffering from its worst coronavirus period is making investors nervous about oil prices,” said Avatrade analyst Naeem Aslam.
Oil dropped towards $66 a barrel on Monday as concern about demand in India and higher OPEC+ supply offset optimism over rising demand in other major consumers such as China and the United States.
India on Monday reported more than 300,000 new coronavirus cases for a 12th straight day. The new wave of the virus has already led to a drop in fuel sales in the world’s third-largest consumer in April.
Brent crude fell 31 cents, or 0.5%, to $66.45 a barrel by 0815 GMT. U.S. West Texas Intermediate was down 19 cents, or 0.3%, at $63.39.
“There is no doubt that India plays a major role when we talk about oil demand, and the fact that the country is suffering from its worst coronavirus period is making investors nervous about oil prices,” said Avatrade analyst Naeem Aslam.
MIDEAST STOCKS Most major Gulf stocks gain in early trade, earnings support #AbuDhabi | Reuters
MIDEAST STOCKS Most major Gulf stocks gain in early trade, earnings support Abu Dhabi | Reuters
Most major Gulf stock markets were slightly up in early trade on Monday, with Abu Dhabi gaining on corporate earnings, while Saudi Arabia was supported by project expansion announcements from Dr. Sulaiman Al-Habib Medical Services Group (4013.SE) and consumer food and beverages firm Almarai (2280.SE).
Abu Dhabi's benchmark index (.ADI) was up 0.2% as Emirates Telecommunications Group (ETISALAT.AD) advanced 1%, extending gains from the previous session after the telecom operator reported nearly 8% increase in first-quarter profit on Thursday.
Abu Dhabi Islamic Bank (ADIB.AD) rose 1.2%. The Islamic lender on Sunday reported 125.3% jump in first-quarter profit to 607.6 million dirhams ($165.45).
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, supported by a 0.2% gain in Al Rajhi Bank (1120.SE) and a 0.7% rise in Dr. Sulaiman Al-Habib Medical Services Group. Dr. Sulaiman Al Habib announced a new hospital project with an estimated cost of 458 million riyals ($122.15 million).
Among other gainers, Almarai rose 1.7% after the firm said it would invest 6.6 billion riyals to expand the poultry segment.
The Dubai index (.DFGMI) was up 0.7% as Emaar Properties rose 1.8%. Dubai Islamic Bank (DISB.DU) gained 0.9% after four days of consecutive falls following a 23% decline in first-quarter profit .
Qatar's Index (.QSI) slipped 0.1%, dragged down by Industries Qatar (IQCD.QA), which fell 0.7%, its fourth session of declines.
Most major Gulf stock markets were slightly up in early trade on Monday, with Abu Dhabi gaining on corporate earnings, while Saudi Arabia was supported by project expansion announcements from Dr. Sulaiman Al-Habib Medical Services Group (4013.SE) and consumer food and beverages firm Almarai (2280.SE).
Abu Dhabi's benchmark index (.ADI) was up 0.2% as Emirates Telecommunications Group (ETISALAT.AD) advanced 1%, extending gains from the previous session after the telecom operator reported nearly 8% increase in first-quarter profit on Thursday.
Abu Dhabi Islamic Bank (ADIB.AD) rose 1.2%. The Islamic lender on Sunday reported 125.3% jump in first-quarter profit to 607.6 million dirhams ($165.45).
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, supported by a 0.2% gain in Al Rajhi Bank (1120.SE) and a 0.7% rise in Dr. Sulaiman Al-Habib Medical Services Group. Dr. Sulaiman Al Habib announced a new hospital project with an estimated cost of 458 million riyals ($122.15 million).
Among other gainers, Almarai rose 1.7% after the firm said it would invest 6.6 billion riyals to expand the poultry segment.
The Dubai index (.DFGMI) was up 0.7% as Emaar Properties rose 1.8%. Dubai Islamic Bank (DISB.DU) gained 0.9% after four days of consecutive falls following a 23% decline in first-quarter profit .
Qatar's Index (.QSI) slipped 0.1%, dragged down by Industries Qatar (IQCD.QA), which fell 0.7%, its fourth session of declines.