Oil edges up as rising demand faces Iran supply worries | Reuters
Oil prices edged a shade higher on Tuesday as rising demand from the approach of the Northern Hemisphere’s summer driving season and lifting of coronavirus restrictions faced worries that Iran’s possible return to the market will cause a supply glut.
After gaining over 5% in the prior two sessions, Brent futures rose 19 cents, or 0.3%, to settle at $68.65 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 2 cents to settle at $66.07.
That was the highest closes for both benchmarks in a week.
Another factor supporting crude prices was the decline in the U.S. dollar to a 19-week low versus a basket of currencies as inflation worries recede. A weaker dollar makes it less expensive for holders of other currencies to buy commodities priced in dollars, like oil.
Tuesday 25 May 2021
Tesla Rival Lucid Motors CEO Peter Rawlinson Interview on Musk, Supply Chain - Bloomberg
Tesla Rival Lucid Motors CEO Peter Rawlinson Interview on Musk, Supply Chain - Bloomberg
Lucid Motors Inc., the Saudi-backed electric-vehicle startup waiting to go public via a blank-check company, is facing supply chain disruptions and delays amid a global chip shortage that’s impacting its path to production.
The Newark, California-based company is looking at alternative semiconductors and evaluating if those chips can work in Lucid’s existing systems, Chief Executive Officer Peter Rawlinson said in an interview with Bloomberg Television. Other parts suppliers to the startup are falling behind schedule and Lucid’s ability to assess the quality of key components has been limited by the pandemic.
“Covid has wrecked havoc with our process,” Rawlinson said. “There are always going to be weak links when you have an international supply base of notionally 250 suppliers.”
Rawlinson said his supply-chain managers recognized the shortage of chips early on in the crisis. Lucid is targeting lower volumes of production, so it doesn’t need large volumes of parts. However, that means the company also has less buying power than legacy automakers because its yet to deliver a single car.
Lucid Motors Inc., the Saudi-backed electric-vehicle startup waiting to go public via a blank-check company, is facing supply chain disruptions and delays amid a global chip shortage that’s impacting its path to production.
The Newark, California-based company is looking at alternative semiconductors and evaluating if those chips can work in Lucid’s existing systems, Chief Executive Officer Peter Rawlinson said in an interview with Bloomberg Television. Other parts suppliers to the startup are falling behind schedule and Lucid’s ability to assess the quality of key components has been limited by the pandemic.
“Covid has wrecked havoc with our process,” Rawlinson said. “There are always going to be weak links when you have an international supply base of notionally 250 suppliers.”
Rawlinson said his supply-chain managers recognized the shortage of chips early on in the crisis. Lucid is targeting lower volumes of production, so it doesn’t need large volumes of parts. However, that means the company also has less buying power than legacy automakers because its yet to deliver a single car.
#Oman orders speedier job creation amid protests over unemployment | Reuters
Oman orders speedier job creation amid protests over unemployment | Reuters
Groups of Omanis demanding jobs held fresh protests on Tuesday, activists said, in the biggest challenge yet to the Gulf state’s new ruler, who ordered the government to accelerate plans to create thousands of jobs.
Social media postings showed a group of protesters holding a sit-in under a bridge in the northern city of Sohar, where protests have taken place for three consecutive days. Other protests were reported in several other towns, including Rustaq, Nizwa and Sur.
Videos and photos showed security forces serving water to protesters, a change of approach from Monday’s demonstrations when police fired tear gas to disperse gatherings and arrested groups of protesters.
Sultan Haitham, who acceded to the throne last year after the death of Sultan Qaboos, has had to bring in austerity measures to ease pressure on public finances at a time of low oil prices.
The government did not comment on Tuesday’s protests. Oman’s state television showed the sultan chairing a meeting on youth employment.
“The youth are the nation’s wealth, its unfailing resource ... We will make sure we listen to them, sense their needs, interests and aspirations,” Sultan Haitham said.
The sultan also announced new directives to create up to 32,000 full and part-time government jobs, according to Oman’s state news agency. These will include government subsidies for those entering the workforce for the first time.
The economy of Oman, a relatively small energy producer with high levels of debt, is vulnerable to swings in oil prices and external shocks such as the coronavirus pandemic.
The protests follow the introduction last month of a value-added tax (VAT) for the first time, one of a series of reforms aimed at ensuring the sultanate’s financial sustainability.
Oman has pushed forward its programme of replacing foreign workers with Omani citizens to ease pressure on the job market but youth unemployment is relatively high at over 10%.
“The authorities may choose to postpone the implementation of some of the planned fiscal measures to maintain socioeconomic stability, especially if oil prices rise enough to reduce pressure on the budget,” said Zahabia Gupta, an analyst at S&P Global Ratings.
The International Monetary Fund has estimated Oman’s gross external debt will go down to around 112% of gross domestic product this year from 127% of GDP last year.
Rachna Uppal, director of research at Azure Strategy, said Oman has committed to diversifying its income stream away from hydrocarbons but there are headwinds on the horizon.
“The slow pace of reforms and increased austerity measures combined with the ongoing uncertainty over the pandemic is testing popular patience ... if protests continue or spread wider, it could spook investors at a critical time for Oman,” she said.
Markets so far appeared to have shrugged off the protests, with Oman credit default swaps – a measure of sovereign default risk – unchanged on Tuesday, according to IHS Markit data.
“Seeing where oil prices are and Oman’s move early in the year to fund the deficit - it already raised $4.35 billion out of its $5 billion external funding need – there are no major concerns in the market” said Zeina Rizk, a fixed income fund manager at Dubai-based Arqaam Capital.
Groups of Omanis demanding jobs held fresh protests on Tuesday, activists said, in the biggest challenge yet to the Gulf state’s new ruler, who ordered the government to accelerate plans to create thousands of jobs.
Social media postings showed a group of protesters holding a sit-in under a bridge in the northern city of Sohar, where protests have taken place for three consecutive days. Other protests were reported in several other towns, including Rustaq, Nizwa and Sur.
Videos and photos showed security forces serving water to protesters, a change of approach from Monday’s demonstrations when police fired tear gas to disperse gatherings and arrested groups of protesters.
Sultan Haitham, who acceded to the throne last year after the death of Sultan Qaboos, has had to bring in austerity measures to ease pressure on public finances at a time of low oil prices.
The government did not comment on Tuesday’s protests. Oman’s state television showed the sultan chairing a meeting on youth employment.
“The youth are the nation’s wealth, its unfailing resource ... We will make sure we listen to them, sense their needs, interests and aspirations,” Sultan Haitham said.
The sultan also announced new directives to create up to 32,000 full and part-time government jobs, according to Oman’s state news agency. These will include government subsidies for those entering the workforce for the first time.
The economy of Oman, a relatively small energy producer with high levels of debt, is vulnerable to swings in oil prices and external shocks such as the coronavirus pandemic.
The protests follow the introduction last month of a value-added tax (VAT) for the first time, one of a series of reforms aimed at ensuring the sultanate’s financial sustainability.
Oman has pushed forward its programme of replacing foreign workers with Omani citizens to ease pressure on the job market but youth unemployment is relatively high at over 10%.
“The authorities may choose to postpone the implementation of some of the planned fiscal measures to maintain socioeconomic stability, especially if oil prices rise enough to reduce pressure on the budget,” said Zahabia Gupta, an analyst at S&P Global Ratings.
The International Monetary Fund has estimated Oman’s gross external debt will go down to around 112% of gross domestic product this year from 127% of GDP last year.
Rachna Uppal, director of research at Azure Strategy, said Oman has committed to diversifying its income stream away from hydrocarbons but there are headwinds on the horizon.
“The slow pace of reforms and increased austerity measures combined with the ongoing uncertainty over the pandemic is testing popular patience ... if protests continue or spread wider, it could spook investors at a critical time for Oman,” she said.
Markets so far appeared to have shrugged off the protests, with Oman credit default swaps – a measure of sovereign default risk – unchanged on Tuesday, according to IHS Markit data.
“Seeing where oil prices are and Oman’s move early in the year to fund the deficit - it already raised $4.35 billion out of its $5 billion external funding need – there are no major concerns in the market” said Zeina Rizk, a fixed income fund manager at Dubai-based Arqaam Capital.
Oil edges up as rising demand offsets #Iran supply worries | Reuters
Oil edges up as rising demand offsets Iran supply worries | Reuters
Oil prices edged higher on Tuesday as rising demand from the approach of the Northern Hemisphere’s summer driving season and lifting of coronavirus restrictions offset worries that Iran’s possible return to the market will cause supplies to jump.
After gaining over 5% in the prior two sessions, Brent futures rose 16 cents, or 0.2%, to $68.62 a barrel by 12:18 p.m. EDT (1618 GMT), while U.S. West Texas Intermediate (WTI) crude rose 19 cents, or 0.3%, to $66.24.
That kept both benchmarks on track for their highest closes in a week.
“Oil prices ... remain at high levels as the high season for oil demand is approaching and as restrictions are lifted in much of Europe and the United States,” said Louise Dickson, oil markets analyst at Rystad Energy.
Parts of Europe and the United States are recording fewer COVID-19 infections and deaths, prompting governments to ease restrictions. However, in areas such as India - the world’s third-biggest oil importer - infection rates remain high.
Oil prices edged higher on Tuesday as rising demand from the approach of the Northern Hemisphere’s summer driving season and lifting of coronavirus restrictions offset worries that Iran’s possible return to the market will cause supplies to jump.
After gaining over 5% in the prior two sessions, Brent futures rose 16 cents, or 0.2%, to $68.62 a barrel by 12:18 p.m. EDT (1618 GMT), while U.S. West Texas Intermediate (WTI) crude rose 19 cents, or 0.3%, to $66.24.
That kept both benchmarks on track for their highest closes in a week.
“Oil prices ... remain at high levels as the high season for oil demand is approaching and as restrictions are lifted in much of Europe and the United States,” said Louise Dickson, oil markets analyst at Rystad Energy.
Parts of Europe and the United States are recording fewer COVID-19 infections and deaths, prompting governments to ease restrictions. However, in areas such as India - the world’s third-biggest oil importer - infection rates remain high.
#AbuDhabi sells $2 billion in bonds despite oil rebound | Reuters
Abu Dhabi sells $2 billion in bonds despite oil rebound | Reuters
Abu Dhabi sold $2 billion in seven-year bonds on Tuesday in its first foray into the international debt markets this year, raising cash for state coffers despite a recent rebound in oil prices.
The oil-rich emirate sold the bonds at 45 basis points (bps) over U.S. Treasuries. That was tightened from initial guidance of 70-75 bps over Treasuries after the debt sale received over $6.9 billion in orders.
The United Arab Emirates, where Abu Dhabi is the capital, was hit hard by the COVID-19 pandemic and last year's crash in oil prices, but a rebound in global crude demand as economies re-open has reduced the urgency to borrow for budget purposes.
"Seven years is the sweet spot in the market right now. A lot of issuers are choosing seven or 12 years because of the macros of rates," said Zeina Rizk, executive fixed income director at Arqaam Capital, adding some of the funds might end up boosting foreign currency reserves.
Citi (C.N), First Abu Dhabi Bank (FAB.AD), HSBC (HSBA.L), JPMorgan (JPM.N) and Standard Chartered (STAN.L) are joint lead managers and joint bookrunners for the deal, according to a document from one of the banks, seen by Reuters.
"This is more of an updating-the-curve kind of issuance. They didn't have a seven-year paper and hence the curve was being interpolated," another fund manager said.
Brent crude , trading at over $68 on Tuesday, has more than tripled since oil's crash last year, when Brent fell below $20 a barrel.
Abu Dhabi is expected to post a budget deficit of around 43 billion dirhams ($11.7 billion) in 2021 against 37.2 billion dirhams last year, the preliminary prospectus for the new bond offering, reviewed by Reuters, showed.
The budget, however, is based on an oil price assumption of about $46 per barrel versus roughly $50 per barrel last year.
"This deficit is expected to be funded principally by borrowings," the prospectus said.
Abu Dhabi has become a relatively frequent issuer of U.S. dollar-denominated debt in recent years, and tapped the market three times last year for a total of $15 billion.
At the end of 2020, it had $40 billion in outstanding bonds and $3.9 billion in outstanding loans. Outstanding bonds and loans totalled $29.4 billion at the end of 2019, the prospectus showed.
Abu Dhabi sold $2 billion in seven-year bonds on Tuesday in its first foray into the international debt markets this year, raising cash for state coffers despite a recent rebound in oil prices.
The oil-rich emirate sold the bonds at 45 basis points (bps) over U.S. Treasuries. That was tightened from initial guidance of 70-75 bps over Treasuries after the debt sale received over $6.9 billion in orders.
The United Arab Emirates, where Abu Dhabi is the capital, was hit hard by the COVID-19 pandemic and last year's crash in oil prices, but a rebound in global crude demand as economies re-open has reduced the urgency to borrow for budget purposes.
"Seven years is the sweet spot in the market right now. A lot of issuers are choosing seven or 12 years because of the macros of rates," said Zeina Rizk, executive fixed income director at Arqaam Capital, adding some of the funds might end up boosting foreign currency reserves.
Citi (C.N), First Abu Dhabi Bank (FAB.AD), HSBC (HSBA.L), JPMorgan (JPM.N) and Standard Chartered (STAN.L) are joint lead managers and joint bookrunners for the deal, according to a document from one of the banks, seen by Reuters.
"This is more of an updating-the-curve kind of issuance. They didn't have a seven-year paper and hence the curve was being interpolated," another fund manager said.
Brent crude , trading at over $68 on Tuesday, has more than tripled since oil's crash last year, when Brent fell below $20 a barrel.
Abu Dhabi is expected to post a budget deficit of around 43 billion dirhams ($11.7 billion) in 2021 against 37.2 billion dirhams last year, the preliminary prospectus for the new bond offering, reviewed by Reuters, showed.
The budget, however, is based on an oil price assumption of about $46 per barrel versus roughly $50 per barrel last year.
"This deficit is expected to be funded principally by borrowings," the prospectus said.
Abu Dhabi has become a relatively frequent issuer of U.S. dollar-denominated debt in recent years, and tapped the market three times last year for a total of $15 billion.
At the end of 2020, it had $40 billion in outstanding bonds and $3.9 billion in outstanding loans. Outstanding bonds and loans totalled $29.4 billion at the end of 2019, the prospectus showed.
#AbuDhabi judge rules in favour of #Dubai Islamic Bank in NMC case | Reuters
Abu Dhabi judge rules in favour of Dubai Islamic Bank in NMC case | Reuters
A judge in Abu Dhabi ruled in favour of Dubai Islamic Bank and against the administrators of NMC, in a case that could complicate the private healthcare firm's multi-billion-dollar debt restructuring.
NMC ran into trouble last year after the disclosure of more than $4 billion in hidden debt and its UAE operating businesses were placed into administration in the courts of Abu Dhabi's international financial centre ADGM.
Dubai Islamic Bank, with over $400 million in exposure to NMC, lent to the company using collateral known as insurance receivables, which relate to payments by insurance companies for medical treatment.
NMC's administrators Alvarez & Marsal filed a suit in ADGM courts last month to obtain power over those securities, claimed by Dubai Islamic Bank, and possibly to use them to pay other creditors.
A judge in Abu Dhabi ruled in favour of Dubai Islamic Bank and against the administrators of NMC, in a case that could complicate the private healthcare firm's multi-billion-dollar debt restructuring.
NMC ran into trouble last year after the disclosure of more than $4 billion in hidden debt and its UAE operating businesses were placed into administration in the courts of Abu Dhabi's international financial centre ADGM.
Dubai Islamic Bank, with over $400 million in exposure to NMC, lent to the company using collateral known as insurance receivables, which relate to payments by insurance companies for medical treatment.
NMC's administrators Alvarez & Marsal filed a suit in ADGM courts last month to obtain power over those securities, claimed by Dubai Islamic Bank, and possibly to use them to pay other creditors.
#Saudi Jeddah Port Eyes Overseas Deals After Wealth Fund Backing - Bloomberg
Saudi Jeddah Port Eyes Overseas Deals After Wealth Fund Backing - Bloomberg
The operator of Saudi Arabia’s Red Sea Gateway Terminal is looking to invest in ports in Africa and the Middle East, following backing from the kingdom’s sovereign wealth fund.
The RSGT plans to invest in at least three international ports in the next five years, with each investment totaling as much as $500 million, port chief Jens Floe said. It’s also aiming to spend up to $1.7 billion developing its main port in Jeddah on the Red Sea, as well as potentially investing in other Saudi ports.
Saudi Arabia’s Public Investment Fund and Cosco Shipping Ports bought a stake in RSGT in January, valuing the port operator at about $880 million. The wealth fund is leading a strategy to turn the kingdom into a transport and logistics hub and support local companies looking to export products. The pandemic has also led to a renewed focus on food security in the region, where the desert environment means many countries rely on agricultural imports.
“Adding Cosco and PIF as shareholders will really accelerate our domestic and our international growth plans,” Floe said in an interview. He said investments may come in rail and dry ports, and emerging market terminals in “less mature and less organized ports.”
The operator of Saudi Arabia’s Red Sea Gateway Terminal is looking to invest in ports in Africa and the Middle East, following backing from the kingdom’s sovereign wealth fund.
The RSGT plans to invest in at least three international ports in the next five years, with each investment totaling as much as $500 million, port chief Jens Floe said. It’s also aiming to spend up to $1.7 billion developing its main port in Jeddah on the Red Sea, as well as potentially investing in other Saudi ports.
Saudi Arabia’s Public Investment Fund and Cosco Shipping Ports bought a stake in RSGT in January, valuing the port operator at about $880 million. The wealth fund is leading a strategy to turn the kingdom into a transport and logistics hub and support local companies looking to export products. The pandemic has also led to a renewed focus on food security in the region, where the desert environment means many countries rely on agricultural imports.
“Adding Cosco and PIF as shareholders will really accelerate our domestic and our international growth plans,” Floe said in an interview. He said investments may come in rail and dry ports, and emerging market terminals in “less mature and less organized ports.”
MIDEAST STOCKS #Saudi leads major Gulf markets higher; Egypt slides | Reuters
MIDEAST STOCKS Saudi leads major Gulf markets higher; Egypt slides | Reuters
Major stock markets in the Gulf ended higher on Tuesday, with the Saudi index leading the way, while broad-based losses pulled Egyptian shares lower amid media reports the country's National Bank is set to raise $1 billion to refinance debt.
Egypt's blue-chip index (.EGX30) declined 2.1%. Most of the stocks on the index were in negative territory, including Commercial International Bank (COMI.CA), which dropped 2%.
Saudi Arabia's benchmark index (.TASI) finished 1.3% higher, buoyed by a 1.8% rise in Al Rajhi Bank (1120.SE) and a 5.7% jump in Riyad Bank (1010.SE).
Russian Deputy Prime Minister Alexander Novak on Tuesday offered to work with Saudi Arabia on hydrogen production, speaking during an online meeting of the intergovernmental commission of Russia and Saudi Arabia. read more
The kingdom, which plans to diversify its economy, is considering several large-scale project to produce hydrogen.
The Qatari index (.QSI) rebounded 0.9%, a day after declining over 1%. Petrochemical firm Industries Qatar (IQCD.QA) advanced 3.6%, while Qatar Islamic Bank (QISB.QA) rose 0.9%.
However, Qatar National Bank (QNB) (QNBK.QA) eased 0.6%.
QNB, the Gulf's largest lender, said former Qatar Finance Minister Ali Sherif al-Emadi had been removed from the bank's board of directors after his arrest earlier this month over embezzlement allegations. read more
Dubai's main share index (.DFMGI) closed 0.4% higher, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) gaining 1%, despite its shares trading ex-dividend.
In Abu Dhabi, the index (.ADI) added 0.3%, supported by a 0.7% increase in telecoms firm Etisalat (ETISALAT.AD) and a 2.9% gain in Abu Dhabi Commercial Bank (ADCB.AD).
Abu Dhabi plans to sell U.S. dollar bonds on Tuesday in its first foray in the international debt markets this year, raising cash for state coffers despite a recent rebound in oil prices. read more
The United Arab Emirates, where Abu Dhabi is the capital, was hit hard by the COVID-19 pandemic and last year's crash in oil prices, but a rebound in global crude demand as economies re-open has reduced the urgency to borrow for budget purposes.
Major stock markets in the Gulf ended higher on Tuesday, with the Saudi index leading the way, while broad-based losses pulled Egyptian shares lower amid media reports the country's National Bank is set to raise $1 billion to refinance debt.
Egypt's blue-chip index (.EGX30) declined 2.1%. Most of the stocks on the index were in negative territory, including Commercial International Bank (COMI.CA), which dropped 2%.
Saudi Arabia's benchmark index (.TASI) finished 1.3% higher, buoyed by a 1.8% rise in Al Rajhi Bank (1120.SE) and a 5.7% jump in Riyad Bank (1010.SE).
Russian Deputy Prime Minister Alexander Novak on Tuesday offered to work with Saudi Arabia on hydrogen production, speaking during an online meeting of the intergovernmental commission of Russia and Saudi Arabia. read more
The kingdom, which plans to diversify its economy, is considering several large-scale project to produce hydrogen.
The Qatari index (.QSI) rebounded 0.9%, a day after declining over 1%. Petrochemical firm Industries Qatar (IQCD.QA) advanced 3.6%, while Qatar Islamic Bank (QISB.QA) rose 0.9%.
However, Qatar National Bank (QNB) (QNBK.QA) eased 0.6%.
QNB, the Gulf's largest lender, said former Qatar Finance Minister Ali Sherif al-Emadi had been removed from the bank's board of directors after his arrest earlier this month over embezzlement allegations. read more
Dubai's main share index (.DFMGI) closed 0.4% higher, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) gaining 1%, despite its shares trading ex-dividend.
In Abu Dhabi, the index (.ADI) added 0.3%, supported by a 0.7% increase in telecoms firm Etisalat (ETISALAT.AD) and a 2.9% gain in Abu Dhabi Commercial Bank (ADCB.AD).
Abu Dhabi plans to sell U.S. dollar bonds on Tuesday in its first foray in the international debt markets this year, raising cash for state coffers despite a recent rebound in oil prices. read more
The United Arab Emirates, where Abu Dhabi is the capital, was hit hard by the COVID-19 pandemic and last year's crash in oil prices, but a rebound in global crude demand as economies re-open has reduced the urgency to borrow for budget purposes.
Spotii management to stay on after purchase by Zip | Reuters
Spotii management to stay on after purchase by Zip | Reuters
United Arab Emirates-based digital buy now, pay later (BNPL) firm Spotii said on Tuesday its management would stay on to lead the company's expansion after it was acquired by Australia's Zip.
Zip, Australia's second biggest BNPL firm, said on Monday it had bought the shares in Spotii it did not already own for $16 million. It later said it would rebrand Spotii as Zip.
Spotii Chief Operating Officer Ziyaad Ahmed said the day-to-day management remained the same as he and Chief Executive Anuscha Iqbal would continue to be heavily involved in the business.
Spotii, which says it is available in Gulf countries UAE, Saudi Arabia, Bahrain and Oman, has 650 merchants signed up to the platform and seen transaction volume rise at an average of 90% month-on-month since launching last year, according to Zip.
Ahmed said Spotii's pace of expansion would likely accelerate following the acquisition, which Zip has said is expected to close in the third quarter.
Spotii would focus on expanding in the Middle East and North Africa, he said, declining to say which countries it would enter next.
Other Middle Eastern BNPL firms include Tamara, Tabby, Postpay and Shahry.
United Arab Emirates-based digital buy now, pay later (BNPL) firm Spotii said on Tuesday its management would stay on to lead the company's expansion after it was acquired by Australia's Zip.
Zip, Australia's second biggest BNPL firm, said on Monday it had bought the shares in Spotii it did not already own for $16 million. It later said it would rebrand Spotii as Zip.
Spotii Chief Operating Officer Ziyaad Ahmed said the day-to-day management remained the same as he and Chief Executive Anuscha Iqbal would continue to be heavily involved in the business.
Spotii, which says it is available in Gulf countries UAE, Saudi Arabia, Bahrain and Oman, has 650 merchants signed up to the platform and seen transaction volume rise at an average of 90% month-on-month since launching last year, according to Zip.
Ahmed said Spotii's pace of expansion would likely accelerate following the acquisition, which Zip has said is expected to close in the third quarter.
Spotii would focus on expanding in the Middle East and North Africa, he said, declining to say which countries it would enter next.
Other Middle Eastern BNPL firms include Tamara, Tabby, Postpay and Shahry.
#AbuDhabi's ADIA buys minority stake in healthcare IT group Dedalus | Reuters
Abu Dhabi's ADIA buys minority stake in healthcare IT group Dedalus | Reuters
The private equity arm of the Abu Dhabi Investment Authority (ADIA) said on Tuesday it had bought a significant minority stake in healthcare software provider Dedalus Holding from private equity firm Ardian.
Florence-based Dedalus provides healthcare information and clinical and administrative software to hospitals, clinics and laboratories, in more than 40 countries.
Ardian will remain Dedalus' majority shareholder.
ADIA is estimated to have around $700 billion assets under management.
The private equity arm of the Abu Dhabi Investment Authority (ADIA) said on Tuesday it had bought a significant minority stake in healthcare software provider Dedalus Holding from private equity firm Ardian.
Florence-based Dedalus provides healthcare information and clinical and administrative software to hospitals, clinics and laboratories, in more than 40 countries.
Ardian will remain Dedalus' majority shareholder.
ADIA is estimated to have around $700 billion assets under management.
Oil steady near one week high as prospect of #Iran glut wanes | Reuters
Oil steady near one week high as prospect of Iran glut wanes | Reuters
Oil prices were steady on Tuesday, holding around one-week highs after jumping more than 3% the previous session as investors tempered expectations of an early return of oil exporter Iran to international crude markets.
Brent crude futures were down 1 cent at $68.45 a barrel by 0701 GMT, having jumped 3% on Monday. U.S. West Texas Intermediate futures were off 8 cents at $65.97 a barrel, after gaining 3.9% the previous session.
Indirect negotiations between the United States and Iran are due to resume in Vienna this week. Talks were given another life after Tehran and the U.N. nuclear agency extended a monitoring agreement on the Middle Eastern country’s atomic programme.
Worries that Iran was soon going to start selling oil if an agreement resulted in the lifting of U.N. and other sanctions on crude exports had previously pulled down prices, but talks have not been conclusive.
Oil prices were steady on Tuesday, holding around one-week highs after jumping more than 3% the previous session as investors tempered expectations of an early return of oil exporter Iran to international crude markets.
Brent crude futures were down 1 cent at $68.45 a barrel by 0701 GMT, having jumped 3% on Monday. U.S. West Texas Intermediate futures were off 8 cents at $65.97 a barrel, after gaining 3.9% the previous session.
Indirect negotiations between the United States and Iran are due to resume in Vienna this week. Talks were given another life after Tehran and the U.N. nuclear agency extended a monitoring agreement on the Middle Eastern country’s atomic programme.
Worries that Iran was soon going to start selling oil if an agreement resulted in the lifting of U.N. and other sanctions on crude exports had previously pulled down prices, but talks have not been conclusive.
#AbuDhabi back to bond markets despite rebound in oil | Reuters
Abu Dhabi back to bond markets despite rebound in oil | Reuters
Abu Dhabi plans to sell U.S. dollar bonds on Tuesday in its first foray in the international debt markets this year, raising cash for state coffers despite a recent rebound in oil prices.
The oil-rich emirate gave initial guidance of 70-75 basis points over U.S. Treasuries for seven-year U.S. dollar-denominated bonds expected to price later in the day. It did not say how much it intended to raise.
The United Arab Emirates, where Abu Dhabi is the capital, was hit hard by the COVID-19 pandemic and last year's crash in oil prices, but a rebound in global crude demand as economies re-open has reduced the urgency to borrow for budget purposes.
"I'm hearing that the issue size is around $2 billion only," said Zeina Rizk, executive fixed income director at Arqaam Capital, adding some of the funds might end up boosting foreign currency reserves.
Abu Dhabi plans to sell U.S. dollar bonds on Tuesday in its first foray in the international debt markets this year, raising cash for state coffers despite a recent rebound in oil prices.
The oil-rich emirate gave initial guidance of 70-75 basis points over U.S. Treasuries for seven-year U.S. dollar-denominated bonds expected to price later in the day. It did not say how much it intended to raise.
The United Arab Emirates, where Abu Dhabi is the capital, was hit hard by the COVID-19 pandemic and last year's crash in oil prices, but a rebound in global crude demand as economies re-open has reduced the urgency to borrow for budget purposes.
"I'm hearing that the issue size is around $2 billion only," said Zeina Rizk, executive fixed income director at Arqaam Capital, adding some of the funds might end up boosting foreign currency reserves.
MIDEAST STOCKS Major Gulf markets gain, #Qatar set to snap 4-day losing streak | Reuters
MIDEAST STOCKS Major Gulf markets gain, Qatar set to snap 4-day losing streak | Reuters
Major stock markets in the Gulf rose in early trade on Tuesday, with the Qatari index marking a gain after four straight sessions of losses.
Saudi Arabia's benchmark index (.TASI) added 0.6%, led by a 0.8% rise in Al Rajhi Bank (1120.SE) and a 3% leap in Riyad Bank (1010.SE).
Saudi Arabia, the world's largest oil exporter, is facing a sharp recession because of the coronavirus crisis and depleted oil revenues.
In Qatar, the index (.QSI) rose 0.7%, with petrochemical maker Industries Qatar (IQCD.QA) advancing 3.3%.
Earlier in May, the Gulf state had decided to gradually lift coronavirus-related measures in four phases, starting May 28 and ending on July 30. read more
Dubai's main share index (.DFMGI) edged up 0.1%, helped by a 0.4% increase in top lender Emirates NBD (ENBD.DU) and a 1.5% increase in Emirates Integrated Telecommunications (DU.DU).
Elsewhere, Deyaar Development (DEYR.DU) advanced 4.1%. On Sunday, the developer announced that its third and fourth phases of it Midtown project are on track, expects completion before schedule.
However, Dubai Islamic Bank (DISB.DU) lost 0.2% as the country's largest sharia-compliant lender traded ex-dividend.
In Abu Dhabi, the index (.ADI) added 0.3%, with aquaculture firm International Holding (IHC.AD) rising 1%.
Major stock markets in the Gulf rose in early trade on Tuesday, with the Qatari index marking a gain after four straight sessions of losses.
Saudi Arabia's benchmark index (.TASI) added 0.6%, led by a 0.8% rise in Al Rajhi Bank (1120.SE) and a 3% leap in Riyad Bank (1010.SE).
Saudi Arabia, the world's largest oil exporter, is facing a sharp recession because of the coronavirus crisis and depleted oil revenues.
In Qatar, the index (.QSI) rose 0.7%, with petrochemical maker Industries Qatar (IQCD.QA) advancing 3.3%.
Earlier in May, the Gulf state had decided to gradually lift coronavirus-related measures in four phases, starting May 28 and ending on July 30. read more
Dubai's main share index (.DFMGI) edged up 0.1%, helped by a 0.4% increase in top lender Emirates NBD (ENBD.DU) and a 1.5% increase in Emirates Integrated Telecommunications (DU.DU).
Elsewhere, Deyaar Development (DEYR.DU) advanced 4.1%. On Sunday, the developer announced that its third and fourth phases of it Midtown project are on track, expects completion before schedule.
However, Dubai Islamic Bank (DISB.DU) lost 0.2% as the country's largest sharia-compliant lender traded ex-dividend.
In Abu Dhabi, the index (.ADI) added 0.3%, with aquaculture firm International Holding (IHC.AD) rising 1%.
Booming Pipeline of IPO Deals Is Said to Get Push From #AbuDhabi - Bloomberg
Booming Pipeline of IPO Deals Is Said to Get Push From Abu Dhabi - Bloomberg
Abu Dhabi is dangling incentives to revive initial public offerings after a dry spell of nearly four years that’s defied the rally in global stock markets.
The Abu Dhabi Securities Exchange, owned by wealth fund ADQ, is reaching out to state-run firms and family-owned companies, according to people familiar with the process. The bourse, known as ADX, is offering sweeteners that include flexibility on the minimum stake size required for share sales and promising to reduce or forgo listing fees, they said, asking not to be named as the discussions are private.
The inducements have been enough to get the bourse’s pipeline humming with deals. ADX Chairman Mohammed Ali Al Shorafa Al Hammadi has said it may see at least 10 new listings this year, which would be the most on record.
With trading volumes in local equities already suffering from lower oil prices, corporate governance in the United Arab Emirates has also been in the spotlight for investors in the wake of accounting scandals, delistings in Dubai and the experience of large companies such as builder Arabtec Holding, which entered liquidation last year. The Abu Dhabi exchange hasn’t had an IPO since Abu Dhabi National Oil Co. for Distribution PJSC started trading in 2017.
“Driving monetization of our assets is part of ADQ’s strategy,” said Mohamed Alsuwaidi, chief executive of ADQ. “By doing that you basically open up the capital markets not just for local but foreign investors also. We plan to take more assets public on ADX.”
Spokespeople for ADX and the regulator -- the Securities and Commodities Authority -- didn’t respond to requests for comment.
Fertilizers, Drilling
The list of IPO hopefuls has started to take shape in recent weeks.
State-run oil-company Abu Dhabi National Oil Co. is considering selling shares in its drilling business and started preparations for a potential IPO of its fertilizer joint venture in Abu Dhabi. Sovereign wealth fund Mubadala Investment Co. is also close to selling shares in Emirates Global Aluminium PJSC.
Others may follow. What’s more, ADX is also floating the possibility of inviting special purpose acquisition companies to list on the exchange after some conditions are met. Alsuwaidi said ADQ is “exploring” other initiatives such as inviting real estate investment trusts, bond offerings and exchange traded funds
ADX aims to more than double the bourse’s market capitalization over the next three years. It stood at 750 billion dirhams ($204 billion) at the end of December.
Abu Dhabi is dangling incentives to revive initial public offerings after a dry spell of nearly four years that’s defied the rally in global stock markets.
The Abu Dhabi Securities Exchange, owned by wealth fund ADQ, is reaching out to state-run firms and family-owned companies, according to people familiar with the process. The bourse, known as ADX, is offering sweeteners that include flexibility on the minimum stake size required for share sales and promising to reduce or forgo listing fees, they said, asking not to be named as the discussions are private.
The inducements have been enough to get the bourse’s pipeline humming with deals. ADX Chairman Mohammed Ali Al Shorafa Al Hammadi has said it may see at least 10 new listings this year, which would be the most on record.
With trading volumes in local equities already suffering from lower oil prices, corporate governance in the United Arab Emirates has also been in the spotlight for investors in the wake of accounting scandals, delistings in Dubai and the experience of large companies such as builder Arabtec Holding, which entered liquidation last year. The Abu Dhabi exchange hasn’t had an IPO since Abu Dhabi National Oil Co. for Distribution PJSC started trading in 2017.
“Driving monetization of our assets is part of ADQ’s strategy,” said Mohamed Alsuwaidi, chief executive of ADQ. “By doing that you basically open up the capital markets not just for local but foreign investors also. We plan to take more assets public on ADX.”
Spokespeople for ADX and the regulator -- the Securities and Commodities Authority -- didn’t respond to requests for comment.
Fertilizers, Drilling
The list of IPO hopefuls has started to take shape in recent weeks.
State-run oil-company Abu Dhabi National Oil Co. is considering selling shares in its drilling business and started preparations for a potential IPO of its fertilizer joint venture in Abu Dhabi. Sovereign wealth fund Mubadala Investment Co. is also close to selling shares in Emirates Global Aluminium PJSC.
Others may follow. What’s more, ADX is also floating the possibility of inviting special purpose acquisition companies to list on the exchange after some conditions are met. Alsuwaidi said ADQ is “exploring” other initiatives such as inviting real estate investment trusts, bond offerings and exchange traded funds
ADX aims to more than double the bourse’s market capitalization over the next three years. It stood at 750 billion dirhams ($204 billion) at the end of December.
Fitch downgrades #Dubai's Emirates REIT after sukuk exchange offer | Reuters
Fitch downgrades Dubai's Emirates REIT after sukuk exchange offer | Reuters
Ratings agency Fitch downgraded Emirates REIT, a Dubai-listed sharia-compliant real estate investment trust, by several notches after the company proposed to exchange its sukuk, or Islamic bonds, for new instruments.
Fitch on Monday cut its rating to ‘C’ - the last rating before a borrower defaults on its debt - from ‘B+’, saying it viewed the proposed debt exchange as a “material reduction in terms for lenders”.
Emirates REIT last week offered to exchange its outstanding $400 million unsecured sukuk for new secured ones to bolster its balance sheet, hit by the coronavirus crisis last year.
Some bondholders have hired advisors including Rothschild to oppose the terms of the offer and engage in negotiations with the company to obtain better terms.
The Dubai company, whose profits are derived from real estate assets it manages, is offering to issue new secured bonds due in 2024, two years longer than the bonds’ current maturity.
While the existing sukuk’s profit rate would be maintained, first year distributions would be delayed under the proposal.
Fitch said that should the proposed exchange go through, it will re-rate the company based on its new capital structure.
It also estimated the company should have sufficient liquidity to meet a June sukuk distribution of $10.2 million in case bondholders vote against the exchange.
Emirates REIT, in response to the Fitch ratings action, said in a statement that it has so far received positive feedback from institutional sukuk holders and that it believes they will vote in support of the offer.
Ratings agency Fitch downgraded Emirates REIT, a Dubai-listed sharia-compliant real estate investment trust, by several notches after the company proposed to exchange its sukuk, or Islamic bonds, for new instruments.
Fitch on Monday cut its rating to ‘C’ - the last rating before a borrower defaults on its debt - from ‘B+’, saying it viewed the proposed debt exchange as a “material reduction in terms for lenders”.
Emirates REIT last week offered to exchange its outstanding $400 million unsecured sukuk for new secured ones to bolster its balance sheet, hit by the coronavirus crisis last year.
Some bondholders have hired advisors including Rothschild to oppose the terms of the offer and engage in negotiations with the company to obtain better terms.
The Dubai company, whose profits are derived from real estate assets it manages, is offering to issue new secured bonds due in 2024, two years longer than the bonds’ current maturity.
While the existing sukuk’s profit rate would be maintained, first year distributions would be delayed under the proposal.
Fitch said that should the proposed exchange go through, it will re-rate the company based on its new capital structure.
It also estimated the company should have sufficient liquidity to meet a June sukuk distribution of $10.2 million in case bondholders vote against the exchange.
Emirates REIT, in response to the Fitch ratings action, said in a statement that it has so far received positive feedback from institutional sukuk holders and that it believes they will vote in support of the offer.
#Qatar National Bank removes ex finance minister from board after arrest | Reuters
Qatar National Bank removes ex finance minister from board after arrest | Reuters
Qatar National Bank said on Tuesday that former Qatar Finance Minister Ali Sherif al-Emadi has been removed from the bank’s board of directors after his arrest earlier this month over embezzlement allegations.
“Qatar National Bank announced that the Qatar Investment Authority (QIA) has decided to withdraw the board membership from Mr. Ali Shareef Al-Emadi as a representative of QIA on the Board of Directors of Qatar National Bank,” the lender said in a bourse filing.
Emadi was arrested earlier this month and questioned over allegations of embezzlement, abuse of power and crimes related to the public sector. He has been stripped of his ministerial duties, now handled by the trade and industry minister, Ali bin Ahmed Al Kuwari.
Emadi has not commented publicly on the probe and has not been charged with an offense. Reuters had been unable to contact him while he is in police custody.
Emadi had been minister of finance in the wealthy Gulf Arab state since 2013 and sat on the board of its powerful $300 billion sovereign wealth fund, the Qatar Investment Authority, which owns 50% of Qatar National Bank.
The bank’s deputy chairman, Sheikh Fahad Bin Faisal Bin Thani al-Thani, will perform the duties of the chairman until a new one is elected to the board, QNB - the largest lender in the Middle East and Africa - said on Tuesday.
Foreign Minister and QIA chairman Sheikh Mohammed bin Abdulrahman Al-Thani has previously said the investigation of Emadi was related to his capacity as finance minister, and not to his posts at either the sovereign fund or the bank.
Qatar National Bank said on Tuesday that former Qatar Finance Minister Ali Sherif al-Emadi has been removed from the bank’s board of directors after his arrest earlier this month over embezzlement allegations.
“Qatar National Bank announced that the Qatar Investment Authority (QIA) has decided to withdraw the board membership from Mr. Ali Shareef Al-Emadi as a representative of QIA on the Board of Directors of Qatar National Bank,” the lender said in a bourse filing.
Emadi was arrested earlier this month and questioned over allegations of embezzlement, abuse of power and crimes related to the public sector. He has been stripped of his ministerial duties, now handled by the trade and industry minister, Ali bin Ahmed Al Kuwari.
Emadi has not commented publicly on the probe and has not been charged with an offense. Reuters had been unable to contact him while he is in police custody.
Emadi had been minister of finance in the wealthy Gulf Arab state since 2013 and sat on the board of its powerful $300 billion sovereign wealth fund, the Qatar Investment Authority, which owns 50% of Qatar National Bank.
The bank’s deputy chairman, Sheikh Fahad Bin Faisal Bin Thani al-Thani, will perform the duties of the chairman until a new one is elected to the board, QNB - the largest lender in the Middle East and Africa - said on Tuesday.
Foreign Minister and QIA chairman Sheikh Mohammed bin Abdulrahman Al-Thani has previously said the investigation of Emadi was related to his capacity as finance minister, and not to his posts at either the sovereign fund or the bank.