Oil up, near $70 a barrel as demand outlook improves | Reuters
Oil prices firmed on Monday, with Brent trading near $70 a barrel on growing optimism that fuel demand will grow in the next quarter, while investors looked ahead to see how producers will respond at this week’s OPEC+ meeting.
Trading was thin as U.S. and UK markets were closed on Monday due to public holidays. Brent crude futures settled up 60 cents, or 0.9%, at $69.32 a barrel, off the a session high of $69.82. U.S. West Texas Intermediate crude rose 0.9% and last traded at $66.91 a barrel. Both contracts were set for a second monthly gain.
Analysts expect oil demand growth to outstrip supply despite the possible return of Iranian crude and condensate exports.
“Despite the mobility restrictions that are still in place, oil demand is recovering dynamically around the world,” Commerzbank said.
Monday, 31 May 2021
Undecided investors will settle fate of #Dubai fund Emirates REIT's $400m Sukuk extension plans | Property – Gulf News
Undecided investors will settle fate of Dubai fund Emirates REIT's $400m Sukuk extension plans | Property – Gulf News
The final stretch is in sight for what is turning out to be one of the most intense battle of wits in the UAE’s corporate landscape.
Equitativa, the operator of the Emirates REIT property fund, says it has swung enough investors in favour of its plan to issue new Sukuk certificates to replace the current ones for a $400 million debt issue. And that by June 9, which is the deadline for the submission for the consent, it will have the majority.
Now, opposing this view is the Ad Hoc Group, which features some of the biggest names in the local and international investor space, which says that together they currently constitute 33 per cent of the investor base in the $400 million Sukuk. They are also looking to swing enough of the undecided to join in opposing Equitativa’s move.
Even otherwise, the 30 per cent plus combined strength gives the Group a “blocking position”. Plus, a “majority of certificate-holders – 55 per cent (with only 75 per cent of the 60 per cent of certificate-holders who have voted to date in favour) – remain opposed or have yet to vote, demonstrating the lack of support for the consent solicitation despite the deal being structured to incentivise early voting,” the Group said in a statement issued Monday.
The final stretch is in sight for what is turning out to be one of the most intense battle of wits in the UAE’s corporate landscape.
Equitativa, the operator of the Emirates REIT property fund, says it has swung enough investors in favour of its plan to issue new Sukuk certificates to replace the current ones for a $400 million debt issue. And that by June 9, which is the deadline for the submission for the consent, it will have the majority.
Now, opposing this view is the Ad Hoc Group, which features some of the biggest names in the local and international investor space, which says that together they currently constitute 33 per cent of the investor base in the $400 million Sukuk. They are also looking to swing enough of the undecided to join in opposing Equitativa’s move.
Even otherwise, the 30 per cent plus combined strength gives the Group a “blocking position”. Plus, a “majority of certificate-holders – 55 per cent (with only 75 per cent of the 60 per cent of certificate-holders who have voted to date in favour) – remain opposed or have yet to vote, demonstrating the lack of support for the consent solicitation despite the deal being structured to incentivise early voting,” the Group said in a statement issued Monday.
#UAE's Ministry of Economy unveils campaign for companies to comply with 'ultimate beneficiary' rules | The National
UAE's Ministry of Economy unveils campaign for companies to comply with 'ultimate beneficiary' rules | The National
The UAE’s Ministry of Economy has started a campaign to ensure that more than 500,000 non-financial businesses in the country submit data on their ultimate beneficiaries.
Property brokers, account auditors, dealers of precious metals and gemstones and corporate services providers are being encouraged to register the required data before the campaign ends on June 30, said Safeya Al Safi, director of the ministry's anti-money laundering department, yesterday.
Declaring a company’s ultimate beneficiary is “one of the main requirements for completing disclosure and transparency requirements from enterprises and individuals within the anti-money laundering system in the country”, Ms Al Safi said.
“The ministry seeks to enhance understanding and raise awareness among these establishments ... [about] the dangers of money laundering, their methods and means of protection against it.”
Registering with the anti-money laundering system is a mandatory step for designated non-financial businesses and professionals, or DNFBPs, but it is not the only one, she said.
The UAE’s Ministry of Economy has started a campaign to ensure that more than 500,000 non-financial businesses in the country submit data on their ultimate beneficiaries.
Property brokers, account auditors, dealers of precious metals and gemstones and corporate services providers are being encouraged to register the required data before the campaign ends on June 30, said Safeya Al Safi, director of the ministry's anti-money laundering department, yesterday.
Declaring a company’s ultimate beneficiary is “one of the main requirements for completing disclosure and transparency requirements from enterprises and individuals within the anti-money laundering system in the country”, Ms Al Safi said.
“The ministry seeks to enhance understanding and raise awareness among these establishments ... [about] the dangers of money laundering, their methods and means of protection against it.”
Registering with the anti-money laundering system is a mandatory step for designated non-financial businesses and professionals, or DNFBPs, but it is not the only one, she said.
MIDEAST STOCKS #UAE, #Saudi indexes log monthly gain as Middle East markets end mixed | Reuters
MIDEAST STOCKS UAE, Saudi indexes log monthly gain as Middle East markets end mixed | Reuters
Middle Eastern stock markets closed mixed on Monday, with indexes in the United Arab Emirates and Saudi Arabia logging monthly gains amid rising oil prices and improving business activity in their non-oil sectors.
Brent crude futures (.LCOc1) have gained more than 3% this month and are up more than 34% year-on-year, according to Refinitiv Eikon data.
The United Arab Emirates' non-oil sector expanded in April as the seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI) edged up to 52.7, its highest level since July 2019 and the fifth consecutive month it has held above the 50.0 line that separates growth from contraction. read more
Saudi Arabia's PMI rose 55.2 in April, remaining above the 50 mark for the eighth straight month. read more
The index in Abu Dhabi (.ADI) closed 0.7% higher, ending the month with a 8.5% rise, its eighth consecutive monthly gain.
Market heavyweights First Abu Dhabi Bank (FAB.AD) climbed 3.2%, while Emirates Telecommunications Group (ETISALAT.AD) fell 0.6%.
The Dubai index (.DFMGI) dropped 0.4%, hit by property shares as the blue-chip developer Emaar Properties (EMAR.DU) declined 1.7% and Damac Properties (DAMAC.DU) decreased 3.6%.
Losses were partially offset by Emirates NBD Bank (ENBD.DU), which advanced 1.9%.
Dubai's index logged its third monthly gain this year, rising 7.4% for the month.
Saudi Arabia's all shares index (.TASI) closed flat, registering a fifth consecutive monthly gain, adding 1.3% for the month.
Al Rajhi Bank (1120.SE) and Dr. Sulaiman Al-Habib Medical Services Group (4013.SE) were down 0.4% and 0.1%, respectively, while Riyad Bank (1010.SE) increased 1.2% and Saudi Basic Industries (2010.SE) was up 0.5%.
The Qatari index (.QSI) closed 0.2% higher with the financial shares eclipsing the losses in energy sector. Commercial Bank (COMB.QA) and Qatar International Islamic Bank (QIIB.QA) increased 1.9% and 1.8%, respectively, while Qatar Electricity and Water (QEWC.QA) shed 3.5%.
Qatar's index lost 1.5% in May, logging its second monthly fall this year.
Outside the Gulf, Egyptian blue-chip index (.EGX30) was up 0.1%, but recorded a fourth consecutive monthly decline this year.
Commercial International Bank (COMI.CA) eased 1.3%, while CI Capital (CICH.CA) surged 6.9%.
Middle Eastern stock markets closed mixed on Monday, with indexes in the United Arab Emirates and Saudi Arabia logging monthly gains amid rising oil prices and improving business activity in their non-oil sectors.
Brent crude futures (.LCOc1) have gained more than 3% this month and are up more than 34% year-on-year, according to Refinitiv Eikon data.
The United Arab Emirates' non-oil sector expanded in April as the seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI) edged up to 52.7, its highest level since July 2019 and the fifth consecutive month it has held above the 50.0 line that separates growth from contraction. read more
Saudi Arabia's PMI rose 55.2 in April, remaining above the 50 mark for the eighth straight month. read more
The index in Abu Dhabi (.ADI) closed 0.7% higher, ending the month with a 8.5% rise, its eighth consecutive monthly gain.
Market heavyweights First Abu Dhabi Bank (FAB.AD) climbed 3.2%, while Emirates Telecommunications Group (ETISALAT.AD) fell 0.6%.
The Dubai index (.DFMGI) dropped 0.4%, hit by property shares as the blue-chip developer Emaar Properties (EMAR.DU) declined 1.7% and Damac Properties (DAMAC.DU) decreased 3.6%.
Losses were partially offset by Emirates NBD Bank (ENBD.DU), which advanced 1.9%.
Dubai's index logged its third monthly gain this year, rising 7.4% for the month.
Saudi Arabia's all shares index (.TASI) closed flat, registering a fifth consecutive monthly gain, adding 1.3% for the month.
Al Rajhi Bank (1120.SE) and Dr. Sulaiman Al-Habib Medical Services Group (4013.SE) were down 0.4% and 0.1%, respectively, while Riyad Bank (1010.SE) increased 1.2% and Saudi Basic Industries (2010.SE) was up 0.5%.
The Qatari index (.QSI) closed 0.2% higher with the financial shares eclipsing the losses in energy sector. Commercial Bank (COMB.QA) and Qatar International Islamic Bank (QIIB.QA) increased 1.9% and 1.8%, respectively, while Qatar Electricity and Water (QEWC.QA) shed 3.5%.
Qatar's index lost 1.5% in May, logging its second monthly fall this year.
Outside the Gulf, Egyptian blue-chip index (.EGX30) was up 0.1%, but recorded a fourth consecutive monthly decline this year.
Commercial International Bank (COMI.CA) eased 1.3%, while CI Capital (CICH.CA) surged 6.9%.
#Qatar Petroleum hires banks for June jumbo bond sale | Nasdaq
Qatar Petroleum hires banks for June jumbo bond sale | Nasdaq
Qatar Petroleum has hired a group of international banks to arrange a multibillion-dollar sale of bonds on international debt markets, said two sources close to the matter.
The sale is expected to take place by the end of June, the sources told Reuters, as the Gulf's hydrocarbons giants seek to raise cash in the face of low energy prices and Qatar Petroleum plans to expand capacity.
Qatar Petroleum, one of the world's biggest suppliers of liquefied natural gas (LNG), has hired BofA Securities BAC.N, Citi C.N, Goldman Sachs GS.N, HSBC HSBA.L, JPMorgan JPM.N and MUFG 8306.T to lead the deal, the sources said.
Qatar Petroleum did not immediately respond to a request for comment.
The banks either declined to comment or did not immediately respond to requests for comment.
Qatar Petroleum has hired a group of international banks to arrange a multibillion-dollar sale of bonds on international debt markets, said two sources close to the matter.
The sale is expected to take place by the end of June, the sources told Reuters, as the Gulf's hydrocarbons giants seek to raise cash in the face of low energy prices and Qatar Petroleum plans to expand capacity.
Qatar Petroleum, one of the world's biggest suppliers of liquefied natural gas (LNG), has hired BofA Securities BAC.N, Citi C.N, Goldman Sachs GS.N, HSBC HSBA.L, JPMorgan JPM.N and MUFG 8306.T to lead the deal, the sources said.
Qatar Petroleum did not immediately respond to a request for comment.
The banks either declined to comment or did not immediately respond to requests for comment.
#Israel and #UAE Sign Tax Treaty in Latest Normalization Step - Bloomberg
Israel and UAE Sign Tax Treaty in Latest Normalization Step - Bloomberg
Israel and the United Arab Emirates have signed a double taxation treaty, Israel’s Finance Ministry said on Monday, the latest move to normalize ties less than a year after the countries signed a historic accord.
The agreement will accelerate the development of economic relations and contribute to prosperity in both countries, Israeli Finance Minister Israel Katz said on Twitter.
The agreement adds to a string of accords signed between the two countries in what may be a sign that this month’s 11-day conflict with Hamas in Gaza won’t be a big setback for efforts to build ties. There was no immediate comment from the UAE, which faced criticism online for its normalization deal during the fighting.
Treaties for the avoidance of double taxation are bilateral agreements in which the contracting states establish rules that will apply to income and assets that are connected to the two countries, according to the Finance Ministry’s website. The Israel-UAE agreement also refers to the exchange of information between the two nations.
The treaty is subject to approval by Israel’s parliament and cabinet, and is expected to go into effect on Jan. 1, 2022. Israel is party to 58 double taxation treaties, the Finance Ministry said.
Israel and the United Arab Emirates have signed a double taxation treaty, Israel’s Finance Ministry said on Monday, the latest move to normalize ties less than a year after the countries signed a historic accord.
The agreement will accelerate the development of economic relations and contribute to prosperity in both countries, Israeli Finance Minister Israel Katz said on Twitter.
The agreement adds to a string of accords signed between the two countries in what may be a sign that this month’s 11-day conflict with Hamas in Gaza won’t be a big setback for efforts to build ties. There was no immediate comment from the UAE, which faced criticism online for its normalization deal during the fighting.
Treaties for the avoidance of double taxation are bilateral agreements in which the contracting states establish rules that will apply to income and assets that are connected to the two countries, according to the Finance Ministry’s website. The Israel-UAE agreement also refers to the exchange of information between the two nations.
The treaty is subject to approval by Israel’s parliament and cabinet, and is expected to go into effect on Jan. 1, 2022. Israel is party to 58 double taxation treaties, the Finance Ministry said.
Al Dhabi Capital's Yasin: Overweight #UAE Market - Bloomberg video
Al Dhabi Capital's Yasin: Overweight UAE Market - Bloomberg
Mohammed Ali Yasin, Chief Strategy Officer at Al Dhabi Capital, discusses a potential merger between Abu Dhabi's and Dubai's stock indices. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Mohammed Ali Yasin, Chief Strategy Officer at Al Dhabi Capital, discusses a potential merger between Abu Dhabi's and Dubai's stock indices. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Kuwait International Bank agrees to sell debts owed by NMC Health | The National
Kuwait International Bank agrees to sell debts owed by NMC Health | The National
Kuwait International Bank is recouping some of the money it is owed by NMC Health, the healthcare group founded by BR Shetty that was placed into administration last year, by selling off its debt.
The lender is owed $74.11 million by NMC Health, but agreed to sell the debt for $13.25m, the company said in a statement to Boursa Kuwait, where its shares trade. It did not disclose the name of the buyer and said it had "fully provided" for the debt exposure in last year's accounts.
"The sale will be disclosed once executed and all relevant procedures are completed," KIB said.
Troubles at NMC Health, which grew from a single clinic into the UAE's biggest healthcare provider, began after a report by short seller Muddy Waters in 2019 accused the company of inflating its assets and understating its debt. An independent investigation following that uncovered more than $4.4bn of previously unreported debt and the company was placed into administration in April last year.
In an update to lenders in April, administrators Alvarez & Marsal said it has received about $6.4bn of creditor claims to date, including almost $6.3bn from a group of 136 financial creditors. A further $650m of debt from another 10 main financial creditors was still outstanding and needed to be filed ahead of a deadline at the end of April.
Creditors are set to vote on NMC Health's future on June 15. The administrators are proposing a lender-led restructuring of the group, which would cut its debt to $2.25bn in return for exit instruments that could be cashed in at a future date once the business returns to growth and generates more value.
The proposal needs the support of more than 50 per cent of unsecured creditors. If this isn't achieved, then a distressed sale or liquidation would take place . A distressed sale "is likely to yield a significantly lower recovery than a restructuring", administrators said, while liquidation of the business would lead to "little or no recovery" for the bulk of the company's creditors.
Kuwait International Bank is recouping some of the money it is owed by NMC Health, the healthcare group founded by BR Shetty that was placed into administration last year, by selling off its debt.
The lender is owed $74.11 million by NMC Health, but agreed to sell the debt for $13.25m, the company said in a statement to Boursa Kuwait, where its shares trade. It did not disclose the name of the buyer and said it had "fully provided" for the debt exposure in last year's accounts.
"The sale will be disclosed once executed and all relevant procedures are completed," KIB said.
Troubles at NMC Health, which grew from a single clinic into the UAE's biggest healthcare provider, began after a report by short seller Muddy Waters in 2019 accused the company of inflating its assets and understating its debt. An independent investigation following that uncovered more than $4.4bn of previously unreported debt and the company was placed into administration in April last year.
In an update to lenders in April, administrators Alvarez & Marsal said it has received about $6.4bn of creditor claims to date, including almost $6.3bn from a group of 136 financial creditors. A further $650m of debt from another 10 main financial creditors was still outstanding and needed to be filed ahead of a deadline at the end of April.
Creditors are set to vote on NMC Health's future on June 15. The administrators are proposing a lender-led restructuring of the group, which would cut its debt to $2.25bn in return for exit instruments that could be cashed in at a future date once the business returns to growth and generates more value.
The proposal needs the support of more than 50 per cent of unsecured creditors. If this isn't achieved, then a distressed sale or liquidation would take place . A distressed sale "is likely to yield a significantly lower recovery than a restructuring", administrators said, while liquidation of the business would lead to "little or no recovery" for the bulk of the company's creditors.
Diversity & Inclusion in the Israeli Tech Sector - Bloomberg video
Diversity & Inclusion in the Israeli Tech Sector - Bloomberg
Alan Feld, Founder and Managing Partner, Vintage Investment Partners, & Founder, Power in Diversity Israel discusses breaking down barriers to create an inclusive workforce for Israel's tech sector. He speaks with Yousef Gamal El-Din and Simone Foxman on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Alan Feld, Founder and Managing Partner, Vintage Investment Partners, & Founder, Power in Diversity Israel discusses breaking down barriers to create an inclusive workforce for Israel's tech sector. He speaks with Yousef Gamal El-Din and Simone Foxman on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Emirates Stallions Group lists on #AbuDhabi exchange | ZAWYA MENA Edition
Emirates Stallions Group lists on Abu Dhabi exchange | ZAWYA MENA Edition
Emirates Stallions Group, the construction and real estate company owned by Abu Dhabi’s International Holding Company (IHC), listed on the Abu Dhabi Securities Exchange Second Market on Monday.
It made its trading debut under the ticker ESG, IHC said in a disclosure on ADX.
Emirates Stallions Group, which is present in 12 markets, had assets of 537 million dirhams ($146 million) as of the end of Q1 2021 and over 1000 employees.
Matar Suhail Al Yabhouni Al Dhaheri, the chairman of Emirates Stallions Group said: “Listing Emirates Stallions Group on the ADX Second Market allows wider investor participation in an important business within the IHC Group. Backed by the financial strength of IHC, the second largest company by market capitalisation on the ADX, our portfolio companies have proven resilient over the last year and are well positioned to grasp new opportunities as the UAE and regional economies make a strong rebound from the global pandemic.”
Emirates Stallions is the fourth IHC Group company to list on the ADX Second Market, following the successful listings of Palm Sports, Easylease and Zee Stores in late 2020.
IHC said on early this month it planned to list three subsidiaries, including ESG and Al Seer Marine Supplies & Equipment Co. in the second quarter of this year. It has not yet named the third company.
IHC, which has been on a major acquisition spree over the past 12 months, has a portfolio spanning across nine industry verticals, including food, industries, capital and real estate.
Emirates Stallions Group, the construction and real estate company owned by Abu Dhabi’s International Holding Company (IHC), listed on the Abu Dhabi Securities Exchange Second Market on Monday.
It made its trading debut under the ticker ESG, IHC said in a disclosure on ADX.
Emirates Stallions Group, which is present in 12 markets, had assets of 537 million dirhams ($146 million) as of the end of Q1 2021 and over 1000 employees.
Matar Suhail Al Yabhouni Al Dhaheri, the chairman of Emirates Stallions Group said: “Listing Emirates Stallions Group on the ADX Second Market allows wider investor participation in an important business within the IHC Group. Backed by the financial strength of IHC, the second largest company by market capitalisation on the ADX, our portfolio companies have proven resilient over the last year and are well positioned to grasp new opportunities as the UAE and regional economies make a strong rebound from the global pandemic.”
Emirates Stallions is the fourth IHC Group company to list on the ADX Second Market, following the successful listings of Palm Sports, Easylease and Zee Stores in late 2020.
IHC said on early this month it planned to list three subsidiaries, including ESG and Al Seer Marine Supplies & Equipment Co. in the second quarter of this year. It has not yet named the third company.
IHC, which has been on a major acquisition spree over the past 12 months, has a portfolio spanning across nine industry verticals, including food, industries, capital and real estate.
MIDEAST STOCKS-Major Gulf stocks mixed; #UAE, #Saudi set for monthly gain | Nasdaq
MIDEAST STOCKS-Major Gulf stocks mixed; UAE, Saudi set for monthly gain | Nasdaq
Major Gulf stock markets were mixed in early trade on Monday, with indexes in the United Arab Emirates and Saudi Arabia set for monthly gains amid rising oil prices and signs of economic recovery.
Brent crude futures .LCOc1 have gained more than 3% this month and are up more than 34% year-on-year, according to Refinitiv Eikon data.
The United Arab Emirates' non-oil sector expanded in April as the seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI) edged up to 52.7, its highest level since July 2019 and the fifth consecutive month it has held above the 50.0 line that separates growth from contraction.
Saudi Arabia's PMI rose 55.2 in April, remaining above the 50 mark for the eighth straight month.
The Abu Dhabi index .ADI was up 0.2% and set for its second best monthly close this year.
First Abu Dhabi Bank FAB.AD increased 0.5% and Emirates Telecommunications Group ETISALAT.AD added 0.4%.
The index in Dubai .DFMGI edged down 0.1% as financial and property shares traded lower. Dubai Islamic Bank DISB.DU lost 0.4%, while Emaar Development EMAARDEV.DU shed 1.1%.
Dubai is set to register its third monthly gain this year when it closes on Monday.
Abu Dhabi and Dubai stocks have gained more than 29% and 12%, respectively, this year following the end of a political rift with Qatar, improving business activities and analysts' expectations of property prices.
Saudi Arabia's all shares index .TASI was trading flat and set to record a fifth monthly rise this year. Saudi National Bank 1180.SE was down 0.6% and Saudi British Bank 1060.SE was up 0.7%.
The Qatari index .QSI was up 0.3% but on track for a monthly loss. Industrial and financial stocks supported the index as Commercial Bank COMB.QA rose 2.2% and Industries Qatar IQCD.QA gained 0.8%.
Major Gulf stock markets were mixed in early trade on Monday, with indexes in the United Arab Emirates and Saudi Arabia set for monthly gains amid rising oil prices and signs of economic recovery.
Brent crude futures .LCOc1 have gained more than 3% this month and are up more than 34% year-on-year, according to Refinitiv Eikon data.
The United Arab Emirates' non-oil sector expanded in April as the seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI) edged up to 52.7, its highest level since July 2019 and the fifth consecutive month it has held above the 50.0 line that separates growth from contraction.
Saudi Arabia's PMI rose 55.2 in April, remaining above the 50 mark for the eighth straight month.
The Abu Dhabi index .ADI was up 0.2% and set for its second best monthly close this year.
First Abu Dhabi Bank FAB.AD increased 0.5% and Emirates Telecommunications Group ETISALAT.AD added 0.4%.
The index in Dubai .DFMGI edged down 0.1% as financial and property shares traded lower. Dubai Islamic Bank DISB.DU lost 0.4%, while Emaar Development EMAARDEV.DU shed 1.1%.
Dubai is set to register its third monthly gain this year when it closes on Monday.
Abu Dhabi and Dubai stocks have gained more than 29% and 12%, respectively, this year following the end of a political rift with Qatar, improving business activities and analysts' expectations of property prices.
Saudi Arabia's all shares index .TASI was trading flat and set to record a fifth monthly rise this year. Saudi National Bank 1180.SE was down 0.6% and Saudi British Bank 1060.SE was up 0.7%.
The Qatari index .QSI was up 0.3% but on track for a monthly loss. Industrial and financial stocks supported the index as Commercial Bank COMB.QA rose 2.2% and Industries Qatar IQCD.QA gained 0.8%.
#Qatar Air May Stop Taking Airbus Deliveries Over Mystery Spat - Bloomberg video
Qatar Air May Stop Taking Airbus Deliveries Over Mystery Spat - Bloomberg
Qatar Airways Chief Executive Officer Akbar Al Baker lashed out at Airbus SE for the second time this month, warning his airline might stop taking deliveries from the planemaker this year over an unspecified “serious” issue.
“We have an issue with Airbus we need to settle, and if we are not able to settle that serious issue we have with them, we will refuse to take any aircraft from them,” he said in an interview with Bloomberg TV. Problems with Qatar Airways, Al Baker warned, will cause Airbus “a stress in the relationship with IAG, with LatAm, with other airlines in which we have a shareholding.”
The subject of the spat? “I unfortunately cannot tell you what that issue is,” Al Baker said.
Airbus won’t say either. A spokesperson for the Blagnac, France-based company said it’s in constant discussions with customers about their requirements, and that details on those discussions “remain confidential.”
The warning comes days after the airline chief criticized Airbus’s giant A380 jets over their inefficiency and operational cost. However, he said his dissatisfaction with that aircraft was “water under the bridge” and not the subject of the latest dispute.
The Qatari carrier has leaned on its diverse fleet to keep flying during the pandemic and expects to service more than 140 destinations by mid-summer. Smaller planes have allowed the carriers to fly with fewer passengers amid the COVID-19 pandemic. It’s even added a handful of new routes to its roster, including Seattle and San Francisco.
“We have an issue with Airbus we need to settle, and if we are not able to settle that serious issue we have with them, we will refuse to take any aircraft from them,” he said in an interview with Bloomberg TV. Problems with Qatar Airways, Al Baker warned, will cause Airbus “a stress in the relationship with IAG, with LatAm, with other airlines in which we have a shareholding.”
The subject of the spat? “I unfortunately cannot tell you what that issue is,” Al Baker said.
Airbus won’t say either. A spokesperson for the Blagnac, France-based company said it’s in constant discussions with customers about their requirements, and that details on those discussions “remain confidential.”
The warning comes days after the airline chief criticized Airbus’s giant A380 jets over their inefficiency and operational cost. However, he said his dissatisfaction with that aircraft was “water under the bridge” and not the subject of the latest dispute.
The Qatari carrier has leaned on its diverse fleet to keep flying during the pandemic and expects to service more than 140 destinations by mid-summer. Smaller planes have allowed the carriers to fly with fewer passengers amid the COVID-19 pandemic. It’s even added a handful of new routes to its roster, including Seattle and San Francisco.
MIDEAST DEBT- #UAE sukuk standards slow issuance, distort prices, investors say | Reuters
MIDEAST DEBT-UAE sukuk standards slow issuance, distort prices, investors say | Reuters
The adoption by the United Arab Emirates of certain sharia-compliance standards has slowed the issuance of Islamic bonds from the Gulf, adding to a chronic supply-demand imbalance, market sources said.
Dubai, one of the UAE’s seven emirates, has long aimed to establish itself as a major global centre for issuance of sukuk, or Islamic bonds, that constitute the backbone of the $2.2 trillion global Islamic finance industry. UAE investors are also key players in the global sukuk market.
But compliance standards adopted by UAE central bank body the Higher Sharia Authority, and confusion around them, are preventing local banks from buying some sukuk, prompting investors to request clearer rules as the UAE’s flow of new issuance ebbs, market sources said.
“The market is going through a teething period as it seeks clarity on how to find ways to comply with the regulations,” said Bashar Al Natoor, global head of Islamic finance at Fitch Ratings.
The Higher Sharia Authority (HSA) adopted the sharia standards of the Bahrain-based Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the standard-setting body for the Islamic financial industry, in 2018. However, issuance programmes created prior to that were exempt from the new rules, sources said, meaning the effect has taken some time to become apparent.
Investors also said disagreement among scholars at UAE institutions over whether Saudi Arabia’s National Commercial Bank’s AT1 sukuk issuance in January was AAOIFI-compliant, and thus adhered to HSA regulations, had rattled potential buyers.
A key issue is around AAOIFI requirements for certain debt instruments’ “tangibility ratio”, which relates to the assets that need to be used as collateral for sukuk to remain sharia-compliant until maturity.
The adoption by the United Arab Emirates of certain sharia-compliance standards has slowed the issuance of Islamic bonds from the Gulf, adding to a chronic supply-demand imbalance, market sources said.
Dubai, one of the UAE’s seven emirates, has long aimed to establish itself as a major global centre for issuance of sukuk, or Islamic bonds, that constitute the backbone of the $2.2 trillion global Islamic finance industry. UAE investors are also key players in the global sukuk market.
But compliance standards adopted by UAE central bank body the Higher Sharia Authority, and confusion around them, are preventing local banks from buying some sukuk, prompting investors to request clearer rules as the UAE’s flow of new issuance ebbs, market sources said.
“The market is going through a teething period as it seeks clarity on how to find ways to comply with the regulations,” said Bashar Al Natoor, global head of Islamic finance at Fitch Ratings.
The Higher Sharia Authority (HSA) adopted the sharia standards of the Bahrain-based Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the standard-setting body for the Islamic financial industry, in 2018. However, issuance programmes created prior to that were exempt from the new rules, sources said, meaning the effect has taken some time to become apparent.
Investors also said disagreement among scholars at UAE institutions over whether Saudi Arabia’s National Commercial Bank’s AT1 sukuk issuance in January was AAOIFI-compliant, and thus adhered to HSA regulations, had rattled potential buyers.
A key issue is around AAOIFI requirements for certain debt instruments’ “tangibility ratio”, which relates to the assets that need to be used as collateral for sukuk to remain sharia-compliant until maturity.
Oil Market: OPEC+ Expected to Stick with July Output Boost - Bloomberg
Oil Market: OPEC+ Expected to Stick with July Output Boost - Bloomberg
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 Oil advanced in Asian trading with the market focused on an OPEC+ supply policy meeting early this week and any commentary around the prospect for returning Iranian supply. Futures in New York rose toward $67 a barrel after falling 0.8% on Friday. OPEC and its allies are expected to stick with a decision to boost output in July when the group gathers Tuesday, according to a Bloomberg survey last week. While rebounding demand is driving prices higher, the possibility of more barrels from Iran should a nuclear deal be revived is clouding the outlook. Iran and world powers have resumed discussions, Russia’s envoy to the United Nations in Vienna said in a tweet, adding that there was an understanding among the countries involved that “the current round should be final.” |
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