Oil hits over 1-year high on OPEC+ supply discipline, demand prospects | Reuters
Oil prices surged on Wednesday, hitting the highest in more than a year on lift from a decision by OPEC and allies to stick to the plan to gradually restore supply, along with the slow pace of nuclear talks between Iran and the United States.
Brent rose $1.1, or 1.6%, to settle at $71.35 a barrel. It reached $71.48 a barrel, its highest since January 2020.
U.S. West Texas Intermediate (WTI) crude rose $1.11, or 1.6%, to settle at $68.83 a barrel. It hit $69.00 a barrel during the session, the highest since October 2018.
"The oil market welcomed the OPEC+ decision to stick with its existing production plan, and in conjunction with positive global demand indications, prices are gaining further today," said Louise Dickson, Rystad Energy oil markets analyst.
Wednesday 2 June 2021
#Sharjah, #Ajman approve foreign ownership of commercial and industrial licenses | Markets – Gulf News
Sharjah, Ajman approve foreign ownership of commercial and industrial licenses | Markets – Gulf News
The Sharjah Economic Development Department (SEDD) has started implementing 100 per cent foreign ownership for investors from this month (June).
This is done without any requirements such as a specific capital or any additional fees for foreign investors. The decision also includes allowing branches of foreign companies to conduct their business in the emirate without the need for an agent of a foreign company.
“SEDD is keen on to continuously improve the business environment, by facilitating and simplifying carrying out the business in Sharjah,” said Sultan Abdullah bin Hadda Al Suwaidi, Chairman. “This can be done through omitting and removing all barriers facing investment projects and investors, by reducing burdens on business establishments.”
Ajman approves 1,000 activities
The Department of Economic Development in Ajman (Ajman DED) also decided to open up full ownership in the commercial and industrial sectors to foreign investors. More than 1,000 economic activities for foreign investment, with the exception of “economic activities with a strategic impact”.
Abdullah Ahmed Al Hamrani, Director-General of the Ajman DED, said, “The Department has prepared a policy of foreign investment and external promotion, which aims to enhance the investment environment in the emirate and provide a competitive investment environment.”
The Sharjah Economic Development Department (SEDD) has started implementing 100 per cent foreign ownership for investors from this month (June).
This is done without any requirements such as a specific capital or any additional fees for foreign investors. The decision also includes allowing branches of foreign companies to conduct their business in the emirate without the need for an agent of a foreign company.
“SEDD is keen on to continuously improve the business environment, by facilitating and simplifying carrying out the business in Sharjah,” said Sultan Abdullah bin Hadda Al Suwaidi, Chairman. “This can be done through omitting and removing all barriers facing investment projects and investors, by reducing burdens on business establishments.”
Ajman approves 1,000 activities
The Department of Economic Development in Ajman (Ajman DED) also decided to open up full ownership in the commercial and industrial sectors to foreign investors. More than 1,000 economic activities for foreign investment, with the exception of “economic activities with a strategic impact”.
Abdullah Ahmed Al Hamrani, Director-General of the Ajman DED, said, “The Department has prepared a policy of foreign investment and external promotion, which aims to enhance the investment environment in the emirate and provide a competitive investment environment.”
It's nearly neck and neck for #Dubai's Emirates REIT and opposing investors ahead of June 7 vote | Property – Gulf News
It's nearly neck and neck for Dubai's Emirates REIT and opposing investors ahead of June 7 vote | Property – Gulf News
It is now down to the wire in the race between the Dubai property fund Emirates REIT and an investor group opposed to its latest plans to win a majority ahead of the Jun 7 deadline.
According to the opposing investors – calling themselves the ‘Ad Hoc Group – they now have sewn up support from 40 per cent of those who had invested in the $400 million Sukuk issued by Emirates REIT fund manager Equitativa in 2017. The Group received a big boost on Wednesday when a major international firm holding exposure in the Sukuk decided to join.
Now, as per the Ad Hoc Group’s calculations, there is only a 5 per cent difference between the blocs in favour and those opposed to the latest plans. Al of which could make for a few more action packed days ahead of the June 7 deadline for submission of votes.
What is the vote for?
Equitativa had made a proposal to issue new Sukuk certificates – with a maturity date in December 2024 – to replace the current ones, which will mature late 2022. The fund manager had offered additional sweeteners to convince investors in the Sukuk – but some of them were not willing to buy in.
All investors have to submit their support or not by evening June 7 on the Sukuk certificate proposal. Which is why all those investors yet to make up their minds will be critical to swing the vote one-way or the other.
“Voting data provided by Emirates REIT continues to show that investors representing the majority of certificates outstanding (55 per cent) oppose or did not vote for the consent solicitation as at 26 May,” the Ad Hoc Group said in a statement.
“Certificate-holders representing only 45 per cent of Certificates outstanding have, according to the data provided, voted in favour. Given that the consent solicitation is structured to incentivise early voting, the Ad-Hoc Group believes that more recent voting data will show the scale of opposition.
“The Ad-Hoc Group calls again on Emirates REIT to provide the latest voting data to validate its counter-claim that it has a majority, in the interests of full transparency and to avoid the potential spread of misinformation.”
The ball is in Equtativa’s court…
It is now down to the wire in the race between the Dubai property fund Emirates REIT and an investor group opposed to its latest plans to win a majority ahead of the Jun 7 deadline.
According to the opposing investors – calling themselves the ‘Ad Hoc Group – they now have sewn up support from 40 per cent of those who had invested in the $400 million Sukuk issued by Emirates REIT fund manager Equitativa in 2017. The Group received a big boost on Wednesday when a major international firm holding exposure in the Sukuk decided to join.
Now, as per the Ad Hoc Group’s calculations, there is only a 5 per cent difference between the blocs in favour and those opposed to the latest plans. Al of which could make for a few more action packed days ahead of the June 7 deadline for submission of votes.
AD HOC GROUP DEMANDAd Hoc Group urges Emirates REIT not to oversee and ignore the specific requests made to them that will bring long-term benefit to all certificate-holders and the company’s shareholders;Additional institutional investors (have) expressed their support to the Ad Hoc Group, indicating greater opposition to the proposed transaction. Collectively, the Ad-Hoc Group and such other investors together represent 40% of certificates outstanding who oppose the 'consent solicitation'.Ad-Hoc Group has appointed Akin Gump Strauss Hauer & Feld, a law firm with expertise acting for Ad-hoc committees in contentious and non-contentious capital markets restructurings.
What is the vote for?
Equitativa had made a proposal to issue new Sukuk certificates – with a maturity date in December 2024 – to replace the current ones, which will mature late 2022. The fund manager had offered additional sweeteners to convince investors in the Sukuk – but some of them were not willing to buy in.
All investors have to submit their support or not by evening June 7 on the Sukuk certificate proposal. Which is why all those investors yet to make up their minds will be critical to swing the vote one-way or the other.
“Voting data provided by Emirates REIT continues to show that investors representing the majority of certificates outstanding (55 per cent) oppose or did not vote for the consent solicitation as at 26 May,” the Ad Hoc Group said in a statement.
“Certificate-holders representing only 45 per cent of Certificates outstanding have, according to the data provided, voted in favour. Given that the consent solicitation is structured to incentivise early voting, the Ad-Hoc Group believes that more recent voting data will show the scale of opposition.
“The Ad-Hoc Group calls again on Emirates REIT to provide the latest voting data to validate its counter-claim that it has a majority, in the interests of full transparency and to avoid the potential spread of misinformation.”
The ball is in Equtativa’s court…
Investcorp's move to delist in keeping with its iconic history | The National
Investcorp's move to delist in keeping with its iconic history | The National
In London, in the mid to late 1990s, the only Arab financial company that was spoken of with reverence was Investcorp. By then it had been involved in iconic deals for luxury brands such as Tiffany & Co and Gucci, rejuvenating them and then taking them public at enormous profit. It outbid future US President Donald Trump to acquire Tiffany’s in 1984 and netted $1 billion profit from Gucci. Understandably, Iraqi founder Nemir Kirdar, a former Chase banker, became a legend in financial circles.
In 1982, he had started off with an idea to put the money of wealthy Gulf merchant families into companies in the US which had lost some of their lustre as they changed hands from one generation to the next. The Gulf at that time was akin to Silicon Valley in terms of concentration of investors, and Investcorp offered them from their home base the kind of access to good private equity deals that they would usually have to be in New York to get.
This was underpinned by principles of professionalism and strong management, which Investcorp pioneered in the Arabian Gulf’s financial sector. Its example has inspired many institutions since to follow the path it trailblazed. Investcorp’s ability to raise money from investors in the Gulf consistently for decades puts it at the very pinnacle of the industry. Many huge Wall Street and City of London names have found their experience of fund raising in the region far more frustrating. Investcorp has been able to tailor a peerless capital raising approach. As one ex-banker told me, “I always take my cue from what Investcorp are doing”.
In the past six years in particular, under executive chairman Mohammed Alardhi, Investcorp has leveraged its dominant regional position to become a global private equity company. Its expanded investor base is now institutionally-led, including sovereign wealth funds, and spread across continents, including Asia. While its legacy on New York’s Fifth Avenue remains the most well-known (fashion designer Tom Ford came to prominence at Gucci under its watch), Investcorp’s more than 150 deals have also spanned other sectors, including property and technology. It has a dozen offices, including in Beijing, New York and Switzerland. However, its roots are in the Gulf and Bahrain, where its headquarters will remain, even though its shares will no longer be listed on the local stock exchange. In many ways, this decision is also true to its heritage. As a company that has always been management led, rather unique for a region where many businesses are run by shareholders and owners, no longer being publicly listed will allow its leadership to be even more focused on growth and increasing Investcorp’s value.
Since its early days under Mr Kirdar, Investcorp has valued good practice, governance and processes. This discipline has been key to its sustained success. Recently, and in a short space of time, it has tripled its assets under management to $35 billion. In 2019, Mr Alardhi told me in Davos that the target is $50bn. In the 1980s and right up until the financial crisis a decade ago, being publicly listed supported good governance and management discipline, as well as providing the most efficient access to liquidity to fuel growth.
Today, it can be argued convincingly that being a publicly listed company anywhere in the world is more of a distraction for management than a strength. The impact of social media and platforms such as the Robinhood trading app on stock markets has been to increase volatility and undermine investor confidence. In any case, companies that want to go public now are more likely to do so under the more controlled conditions of a special purpose acquisition company than an actual initial public offering. It is unlikely that any observers will see not being listed as a disadvantage for Investcorp.
In fact, freed of the burden of periodic market reporting, the ability of its management to pursue opportunities will be enhanced. Ultimately, more time spent on growing the business will be good for shareholder value.
It has been almost 40 years since Investcorp was launched as a pioneering private equity company. It now describes itself as “a leading global manager of alternative investments”, having said it learnt from every deal and each period of market turmoil. It has also experienced a smooth succession from founder to the next generation of management. Mr Kirdar passed away last year, aged 83, but he had already handed over the reins in 2017.The decision to delist was backed unanimously by its shareholders and hardly any will sell their holdings, it is understood. In any case, the original shareholders from the 1980s pass on their interests in Investcorp from one generation to the next, like a family heirloom.
This typified a culture of long-sightedness, which has helped build the company’s resilience. During the Covid-19 pandemic, Investcorp was able to absorb the shocks and increase its profit in the six months to December 31, 2020, because its global and diversified scale allowed it to take advantage of the recovery in Asia.
The next period holds much promise too. For example, three companies working on Expo 2020 Dubai are part of Investcorp’s portfolio. The Expo’s tag line is “connecting minds, creating the future”. Investcorp’s unofficial motto might be “always connected to the future”.
In London, in the mid to late 1990s, the only Arab financial company that was spoken of with reverence was Investcorp. By then it had been involved in iconic deals for luxury brands such as Tiffany & Co and Gucci, rejuvenating them and then taking them public at enormous profit. It outbid future US President Donald Trump to acquire Tiffany’s in 1984 and netted $1 billion profit from Gucci. Understandably, Iraqi founder Nemir Kirdar, a former Chase banker, became a legend in financial circles.
In 1982, he had started off with an idea to put the money of wealthy Gulf merchant families into companies in the US which had lost some of their lustre as they changed hands from one generation to the next. The Gulf at that time was akin to Silicon Valley in terms of concentration of investors, and Investcorp offered them from their home base the kind of access to good private equity deals that they would usually have to be in New York to get.
This was underpinned by principles of professionalism and strong management, which Investcorp pioneered in the Arabian Gulf’s financial sector. Its example has inspired many institutions since to follow the path it trailblazed. Investcorp’s ability to raise money from investors in the Gulf consistently for decades puts it at the very pinnacle of the industry. Many huge Wall Street and City of London names have found their experience of fund raising in the region far more frustrating. Investcorp has been able to tailor a peerless capital raising approach. As one ex-banker told me, “I always take my cue from what Investcorp are doing”.
In the past six years in particular, under executive chairman Mohammed Alardhi, Investcorp has leveraged its dominant regional position to become a global private equity company. Its expanded investor base is now institutionally-led, including sovereign wealth funds, and spread across continents, including Asia. While its legacy on New York’s Fifth Avenue remains the most well-known (fashion designer Tom Ford came to prominence at Gucci under its watch), Investcorp’s more than 150 deals have also spanned other sectors, including property and technology. It has a dozen offices, including in Beijing, New York and Switzerland. However, its roots are in the Gulf and Bahrain, where its headquarters will remain, even though its shares will no longer be listed on the local stock exchange. In many ways, this decision is also true to its heritage. As a company that has always been management led, rather unique for a region where many businesses are run by shareholders and owners, no longer being publicly listed will allow its leadership to be even more focused on growth and increasing Investcorp’s value.
Since its early days under Mr Kirdar, Investcorp has valued good practice, governance and processes. This discipline has been key to its sustained success. Recently, and in a short space of time, it has tripled its assets under management to $35 billion. In 2019, Mr Alardhi told me in Davos that the target is $50bn. In the 1980s and right up until the financial crisis a decade ago, being publicly listed supported good governance and management discipline, as well as providing the most efficient access to liquidity to fuel growth.
Today, it can be argued convincingly that being a publicly listed company anywhere in the world is more of a distraction for management than a strength. The impact of social media and platforms such as the Robinhood trading app on stock markets has been to increase volatility and undermine investor confidence. In any case, companies that want to go public now are more likely to do so under the more controlled conditions of a special purpose acquisition company than an actual initial public offering. It is unlikely that any observers will see not being listed as a disadvantage for Investcorp.
In fact, freed of the burden of periodic market reporting, the ability of its management to pursue opportunities will be enhanced. Ultimately, more time spent on growing the business will be good for shareholder value.
It has been almost 40 years since Investcorp was launched as a pioneering private equity company. It now describes itself as “a leading global manager of alternative investments”, having said it learnt from every deal and each period of market turmoil. It has also experienced a smooth succession from founder to the next generation of management. Mr Kirdar passed away last year, aged 83, but he had already handed over the reins in 2017.The decision to delist was backed unanimously by its shareholders and hardly any will sell their holdings, it is understood. In any case, the original shareholders from the 1980s pass on their interests in Investcorp from one generation to the next, like a family heirloom.
This typified a culture of long-sightedness, which has helped build the company’s resilience. During the Covid-19 pandemic, Investcorp was able to absorb the shocks and increase its profit in the six months to December 31, 2020, because its global and diversified scale allowed it to take advantage of the recovery in Asia.
The next period holds much promise too. For example, three companies working on Expo 2020 Dubai are part of Investcorp’s portfolio. The Expo’s tag line is “connecting minds, creating the future”. Investcorp’s unofficial motto might be “always connected to the future”.
MIDEAST STOCKS Most Gulf markets track oil prices higher; Egypt falls | Reuters
MIDEAST STOCKS Most Gulf markets track oil prices higher; Egypt falls | Reuters
Major Gulf stock markets ended higher on Wednesday, with Saudi Arabia extending gains into a seventh session amid rising oil prices, while financials dragged down the Egyptian index.
Brent crude rose 1.2% to $71.09 a barrel by 1011 GMT, supported by an OPEC+ decision to stick to its plan to restore supply to the market gradually and by the slow pace of nuclear talks between Iran and the United States. read more
Saudi Arabia's benchmark stock index (.TASI) rose 0.6%, helped mostly by the financials and material sectors.
Saudi National Bank (1180.SE) climbed 1.9% and Saudi Basic Industries (2010.SE) gained 1%.
Almarai (2280.SE) jumped 3.1% after the consumer food and beverage company signed an agreement to acquire Binghatti Beverage's production facility in the United Arab Emirates for 215 million dirhams ($58.54 million).
Trading in the Tadawul securities market was suspended for less than an hour due to a technical glitch. With a market capitalisation of nearly $2.6 trillion, Tadawul is the Arab world's largest stock exchange. read more
The Qatari index (.QSI) was up 0.3%, heading for a third straight session of gains. Qatar National Bank (QNBK.QA) and Qatar International Islamic Bank (QIIB.QA) advanced 1.4% and 0.9%, respectively.
Abu Dhabi's index (.ADI) closed up 0.2%, with First Abu Dhabi Bank (FAB.AD) gaining 0.5% and International Holdings (IHC.AD) adding 0.4%.
The Dubai index (.DFMGI) climbed 1%, supported by a 0.8% gain in Dubai Islamic Bank (DISB.DU) and a 2.8% rise in Damac Properties (DAMAC.DU).
Egypt's blue-chip index (.EGX30) dropped 1.1%, with Commercial International Bank (CIB) (COMI.CA) down 3.2%.
Egypt's gross domestic product grew 1.9% between July 2020 and March 2021, compared with 5.4% growth in the same period a year earlier. The country's financial year runs from July to June.
Major Gulf stock markets ended higher on Wednesday, with Saudi Arabia extending gains into a seventh session amid rising oil prices, while financials dragged down the Egyptian index.
Brent crude rose 1.2% to $71.09 a barrel by 1011 GMT, supported by an OPEC+ decision to stick to its plan to restore supply to the market gradually and by the slow pace of nuclear talks between Iran and the United States. read more
Saudi Arabia's benchmark stock index (.TASI) rose 0.6%, helped mostly by the financials and material sectors.
Saudi National Bank (1180.SE) climbed 1.9% and Saudi Basic Industries (2010.SE) gained 1%.
Almarai (2280.SE) jumped 3.1% after the consumer food and beverage company signed an agreement to acquire Binghatti Beverage's production facility in the United Arab Emirates for 215 million dirhams ($58.54 million).
Trading in the Tadawul securities market was suspended for less than an hour due to a technical glitch. With a market capitalisation of nearly $2.6 trillion, Tadawul is the Arab world's largest stock exchange. read more
The Qatari index (.QSI) was up 0.3%, heading for a third straight session of gains. Qatar National Bank (QNBK.QA) and Qatar International Islamic Bank (QIIB.QA) advanced 1.4% and 0.9%, respectively.
Abu Dhabi's index (.ADI) closed up 0.2%, with First Abu Dhabi Bank (FAB.AD) gaining 0.5% and International Holdings (IHC.AD) adding 0.4%.
The Dubai index (.DFMGI) climbed 1%, supported by a 0.8% gain in Dubai Islamic Bank (DISB.DU) and a 2.8% rise in Damac Properties (DAMAC.DU).
Egypt's blue-chip index (.EGX30) dropped 1.1%, with Commercial International Bank (CIB) (COMI.CA) down 3.2%.
Egypt's gross domestic product grew 1.9% between July 2020 and March 2021, compared with 5.4% growth in the same period a year earlier. The country's financial year runs from July to June.
#Dubai’s hotels will see a return to pre-COVID occupancy rates by 2023: KPMG | Tourism – Gulf News
Dubai’s hotels will see a return to pre-COVID occupancy rates by 2023: KPMG | Tourism – Gulf News
Dubai’s hotels saw occupancy rates of nearly 60 per cent in the month of April after setting a 12-month high figure during the winter.
Occupancy rates surged to 69 per cent in December after “nosediving” to less than 25 per cent during the initial outbreak of the virus last year, according to a KPMG hospitality industry report.
The emirate’s occupancy levels are “significantly” higher than the Middle East and Africa region’s 2020 rate of 49 per cent, said KPMG.
Predictions for 2021
KPMG’s survey found that 75 per cent of hotel operators anticipate the vaccine to be effective in boosting occupancy rates. In fact, half of those surveyed expect occupancy rates above 60 per cent in FY 2021 and 75 per cent expect occupancy to return to pre-covid-19 levels by 2023.
Among operators of Dubai-based properties, half anticipate an average daily rate (ADR) of $120-150 in 2021, with an additional 25 per cent expecting $150 or higher. Consistent with the presumed occupancy rates’ timeframe, 83 per cent expect average daily rates to return to pre-Covid-19 levels in 2023.
Dubai’s hotels saw occupancy rates of nearly 60 per cent in the month of April after setting a 12-month high figure during the winter.
Occupancy rates surged to 69 per cent in December after “nosediving” to less than 25 per cent during the initial outbreak of the virus last year, according to a KPMG hospitality industry report.
The emirate’s occupancy levels are “significantly” higher than the Middle East and Africa region’s 2020 rate of 49 per cent, said KPMG.
Predictions for 2021
KPMG’s survey found that 75 per cent of hotel operators anticipate the vaccine to be effective in boosting occupancy rates. In fact, half of those surveyed expect occupancy rates above 60 per cent in FY 2021 and 75 per cent expect occupancy to return to pre-covid-19 levels by 2023.
Among operators of Dubai-based properties, half anticipate an average daily rate (ADR) of $120-150 in 2021, with an additional 25 per cent expecting $150 or higher. Consistent with the presumed occupancy rates’ timeframe, 83 per cent expect average daily rates to return to pre-Covid-19 levels in 2023.
#SaudiArabia Trading Resumes in Biggest Mideast Exchange After Two-Hour Halt - Bloomberg
Saudi Arabia Tadawul Stock Exchange Trading Halted, State TV Says - Bloomberg
Equities trading resumed in Saudi Arabia after a technical glitch shuttered the Middle East’s biggest stock exchange for two hours.
“The technical issue has been resolved and trading services are now functioning normally,” the Saudi Exchange said in a statement. Shares were trading 0.6% higher when trading restarted on Wednesday.
The bourse is home to over 200 listed securities with a total market capitalization of about $2.6 trillion, including the world’s biggest energy company Saudi Aramco.
The benchmark Tadawul All Share Index was up as much as 0.8% before trading stopped. An average of 312 million shares were traded per day over the past year on the index, with the average daily value traded in the bourse near $3 billion.
The outage comes as the Saudi exchange pushes ahead with a planned initial public offering. The holding company that owns the bourse has hired Citigroup Inc., JPMorgan Chase & Co., and NCB Capital as financial advisers and global coordinators for the listing.
The outage will not have a significant impact on the IPO, if it’s a one-time event, Al Dhabi Capital Ltd. Chief Strategy Officer Mohammed Ali Yasin said in an email. “If it happens again, then it will raise questions on the reasons behind it, and may affect the upcoming IPO, probably on the valuation front.”
Trading in several exchanges around the world has been disrupted recently. Euronext NV, the Mexican Bourse and the Tokyo Stock Exchange were all hit by outages last year, while New Zealand’s stock exchange struggled to restore services after cyber attacks shuttered the market for three straight days.
Before that, Deutsche Boerse AG’s electronic trading system was down for hours after a technical glitch affected trading in Germany, Hungary, the Czech Republic, Austria, Croatia and Slovenia.
Equities trading resumed in Saudi Arabia after a technical glitch shuttered the Middle East’s biggest stock exchange for two hours.
“The technical issue has been resolved and trading services are now functioning normally,” the Saudi Exchange said in a statement. Shares were trading 0.6% higher when trading restarted on Wednesday.
The bourse is home to over 200 listed securities with a total market capitalization of about $2.6 trillion, including the world’s biggest energy company Saudi Aramco.
The benchmark Tadawul All Share Index was up as much as 0.8% before trading stopped. An average of 312 million shares were traded per day over the past year on the index, with the average daily value traded in the bourse near $3 billion.
The outage will not have a significant impact on the IPO, if it’s a one-time event, Al Dhabi Capital Ltd. Chief Strategy Officer Mohammed Ali Yasin said in an email. “If it happens again, then it will raise questions on the reasons behind it, and may affect the upcoming IPO, probably on the valuation front.”
Trading in several exchanges around the world has been disrupted recently. Euronext NV, the Mexican Bourse and the Tokyo Stock Exchange were all hit by outages last year, while New Zealand’s stock exchange struggled to restore services after cyber attacks shuttered the market for three straight days.
Before that, Deutsche Boerse AG’s electronic trading system was down for hours after a technical glitch affected trading in Germany, Hungary, the Czech Republic, Austria, Croatia and Slovenia.
Investcorp to Delist From Bahrain Exchange After Nearly 40 Years - Bloomberg
Investcorp to Delist From Bahrain Exchange After Nearly 40 Years - Bloomberg
Investcorp Holdings BSC, the Middle East’s biggest alternative asset manager, will delist from the Bahrain stock exchange after almost four decades in response to low trading volumes, the latest in a string of companies in the region to go back into private ownership.
The firm, which manages assets of more than $35 billion, got approval from investors to delist at a shareholder meeting in Bahrain Wednesday. Investcorp shareholders will have the option either to let the company buy back the stock or to remain as investors in a private entity.
“Looking at our future strategy and growth plans, Investcorp is better off for its shareholders as a private company,” co-Chief Executive Officer Hazem Ben-Gacem said in an interview. “That’s where we feel we can generate the best returns, and execute on our strategy without having to worry about quarterly results or certain other requirements of public markets.”
The company will continue to be headquartered in Manama, with the Central Bank of Bahrain as its primary regulator, Ben-Gacem said. “For now our focus is on executing our long-term plan as a private company, and there’s no plans to consider another public listing,” he said.
Investcorp is one of the biggest international financial firms in Bahrain, which used to be the Middle East’s financial center until the rise of Dubai as a business and banking hub in the late 1990s and early 2000s. Yet trading on Bahrain’s bourse has languished in recent years.
On some days less than a million shares change hands, and Investcorp’s stock was rarely traded at all. It was the the sixth-biggest member of the Bahrain Bourse All Share Index, with a weighting of 4.3%.
Investcorp Holdings BSC, the Middle East’s biggest alternative asset manager, will delist from the Bahrain stock exchange after almost four decades in response to low trading volumes, the latest in a string of companies in the region to go back into private ownership.
The firm, which manages assets of more than $35 billion, got approval from investors to delist at a shareholder meeting in Bahrain Wednesday. Investcorp shareholders will have the option either to let the company buy back the stock or to remain as investors in a private entity.
“Looking at our future strategy and growth plans, Investcorp is better off for its shareholders as a private company,” co-Chief Executive Officer Hazem Ben-Gacem said in an interview. “That’s where we feel we can generate the best returns, and execute on our strategy without having to worry about quarterly results or certain other requirements of public markets.”
The company will continue to be headquartered in Manama, with the Central Bank of Bahrain as its primary regulator, Ben-Gacem said. “For now our focus is on executing our long-term plan as a private company, and there’s no plans to consider another public listing,” he said.
Investcorp is one of the biggest international financial firms in Bahrain, which used to be the Middle East’s financial center until the rise of Dubai as a business and banking hub in the late 1990s and early 2000s. Yet trading on Bahrain’s bourse has languished in recent years.
On some days less than a million shares change hands, and Investcorp’s stock was rarely traded at all. It was the the sixth-biggest member of the Bahrain Bourse All Share Index, with a weighting of 4.3%.
Exclusive: SoftBank tech fund in talks to invest in #Dubai cloud kitchen Kitopi - sources | Reuters
Exclusive: SoftBank tech fund in talks to invest in Dubai cloud kitchen Kitopi - sources | Reuters
SoftBank Group Corp is in talks to invest in Dubai “cloud kitchen” Kitopi’s latest funding round through its second technology fund, sources familiar with the matter said.
The Japanese company’s Vision Fund 2 has put forward a proposal to lead an investment of about $400 million in Kitopi, said the sources, who declined to be named as the matter is not public.
SoftBank declined to comment. Kitopi also declined to comment.
So-called cloud kitchens are facilities built to prepare food specifically for delivery and they have benefited from the shift to online services during the coronavirus crisis.
These “dark”, “cloud” or “ghost” kitchens have no physical presence as a restaurant, and offer delivery-only services from a centralised location through a mobile app.
Kitopi, which is headquartered in Dubai, operates more than 60 kitchens and has more than 1500 employees.
Allied Market Research in India has estimated that the global cloud kitchen industry could be worth about $71 billion by 2027 compared with $43 billion in 2019.
Kitobi hired Bank of America earlier this year to help with the fund raising round, a source has told Reuters, expected to generate $150 million to $200 million of financing to expand into Southeast Asia.
SoftBank’s Vision Fund 2, which has targeted $108 billion in fundraising, was seeded with $38 billion from SoftBank’s own funds.
Kitopi has raised $117.2 million since its inception from investors including Dubai-based venture capital firm BECO Capital and U.S.-based Lumia Capital.
SoftBank Group Corp is in talks to invest in Dubai “cloud kitchen” Kitopi’s latest funding round through its second technology fund, sources familiar with the matter said.
The Japanese company’s Vision Fund 2 has put forward a proposal to lead an investment of about $400 million in Kitopi, said the sources, who declined to be named as the matter is not public.
SoftBank declined to comment. Kitopi also declined to comment.
So-called cloud kitchens are facilities built to prepare food specifically for delivery and they have benefited from the shift to online services during the coronavirus crisis.
These “dark”, “cloud” or “ghost” kitchens have no physical presence as a restaurant, and offer delivery-only services from a centralised location through a mobile app.
Kitopi, which is headquartered in Dubai, operates more than 60 kitchens and has more than 1500 employees.
Allied Market Research in India has estimated that the global cloud kitchen industry could be worth about $71 billion by 2027 compared with $43 billion in 2019.
Kitobi hired Bank of America earlier this year to help with the fund raising round, a source has told Reuters, expected to generate $150 million to $200 million of financing to expand into Southeast Asia.
SoftBank’s Vision Fund 2, which has targeted $108 billion in fundraising, was seeded with $38 billion from SoftBank’s own funds.
Kitopi has raised $117.2 million since its inception from investors including Dubai-based venture capital firm BECO Capital and U.S.-based Lumia Capital.
#Israel to open economic office in #AbuDhabi to boost Gulf investment | Reuters
Israel to open economic office in Abu Dhabi to boost Gulf investment | Reuters
Israel plans to open an economic attache office in Abu Dhabi this summer to attract foreign investment and boost economic relations with Gulf states and the broader Arab world, the Economy Ministry said on Tuesday.
This follows a U.S.-brokered normalisation of ties between Israel and the United Arab Emirates (UAE) last September that has led to a number of bilateral banking deals and direct flights between the two countries.
On Monday, an Emirati embassy opened in Tel Aviv while Israel’s Finance Ministry said Israel and the United Arab Emirates signed a tax treaty to spur business development between the countries.
Economy Minister Amir Peretz said he saw “enormous economic potential” in strengthening Israeli-Emirati relations.
“Opening the economic attache office will give a significant boost to the various initiatives already underway,” Peretz added.
Israel’s Foreign Trade Administration (FTA), a part of the Economy Ministry, operates in more than 50 business centers around the world. It opened a branch in Manila last year.
Aviad Tamir will be the economic attache in the UAE, the ministry said.
The FTA last year identified significant economic potential for Israel’s economy from relations with the UAE, including strengthening aviation ties between Israel and the Gulf, oil imports, energy solutions, diamond exports, exports of medical equipment water technologies, and exports of financial and cyber security technologies.
The new branches in the UAE “will yield significant returns in light of the great interest arising from Emirates interested in a long line of Israeli technologies as well as in light of the large capital in the UAE that may be translated into significant investments in Israeli economy and industry,” said FTA director Ohad Cohen.
Israel has also recently normalised relations with Bahrain.
Israel plans to open an economic attache office in Abu Dhabi this summer to attract foreign investment and boost economic relations with Gulf states and the broader Arab world, the Economy Ministry said on Tuesday.
This follows a U.S.-brokered normalisation of ties between Israel and the United Arab Emirates (UAE) last September that has led to a number of bilateral banking deals and direct flights between the two countries.
On Monday, an Emirati embassy opened in Tel Aviv while Israel’s Finance Ministry said Israel and the United Arab Emirates signed a tax treaty to spur business development between the countries.
Economy Minister Amir Peretz said he saw “enormous economic potential” in strengthening Israeli-Emirati relations.
“Opening the economic attache office will give a significant boost to the various initiatives already underway,” Peretz added.
Israel’s Foreign Trade Administration (FTA), a part of the Economy Ministry, operates in more than 50 business centers around the world. It opened a branch in Manila last year.
Aviad Tamir will be the economic attache in the UAE, the ministry said.
The FTA last year identified significant economic potential for Israel’s economy from relations with the UAE, including strengthening aviation ties between Israel and the Gulf, oil imports, energy solutions, diamond exports, exports of medical equipment water technologies, and exports of financial and cyber security technologies.
The new branches in the UAE “will yield significant returns in light of the great interest arising from Emirates interested in a long line of Israeli technologies as well as in light of the large capital in the UAE that may be translated into significant investments in Israeli economy and industry,” said FTA director Ohad Cohen.
Israel has also recently normalised relations with Bahrain.
#Saudi stock market trading stops over technical error
Saudi stock market trading stops over technical error
Saudi Arabia’s key stock market suspended trading Wednesday over what it referred to as an unexplained technical glitch.
Saudi state television reported the trades halting on Riyadh’s Tadawul in an urgent on-screen graphic, with an anchor saying officials were trying to fix the problem.
The Tadawul later said trading had resumed, but Saudi state TV said trading remained halted despite the stock market’s statement. There was no immediate explanation for the conflicting statements.
Saudi Al-Ekhbaria TV also reported trading had resumed.
The Tadawul trades a sliver of the worth of the country’s oil giant, the Saudi Arabian Oil Co. Aramco is one of the world’s top-valued companies.
Saudi Arabia’s key stock market suspended trading Wednesday over what it referred to as an unexplained technical glitch.
Saudi state television reported the trades halting on Riyadh’s Tadawul in an urgent on-screen graphic, with an anchor saying officials were trying to fix the problem.
The Tadawul later said trading had resumed, but Saudi state TV said trading remained halted despite the stock market’s statement. There was no immediate explanation for the conflicting statements.
Saudi Al-Ekhbaria TV also reported trading had resumed.
The Tadawul trades a sliver of the worth of the country’s oil giant, the Saudi Arabian Oil Co. Aramco is one of the world’s top-valued companies.
#AbuDhabi's Mubadala hires banks for Yahsat's IPO-sources | Reuters
Abu Dhabi's Mubadala hires banks for Yahsat's IPO-sources | Reuters
Abu Dhabi state investor Mubadala has hired banks for the planned initial public offering of Al Yah Satellite Communications Company (Yahsat) which could raise over $500 million, three sources said.
Bank of America (BAC.N), First Abu Dhabi Bank (FAB.AD) and Morgan Stanley (MS.N) will act as global coordinators for the deal, while EFG Hermes (HRHO.CA), HSBC (HSBA.L) and Abu Dhabi Commercial Bank (ADCB.AD) will have bookrunner roles, they said.
Yahsat has five satellites that serve more than 150 countries, information on its website shows. It also owns satellite phone operator Thuraya.
Yahsat is among the three portfolio companies that Mubadala is pushing to go public this year, the sources said.
It is close to making a decision on the listing of Emirates Global Aluminium, which is owned by Mubadala and Investment Corp of Dubai.
It is also looking at a potential listing of Santa Clara-based semiconductor producer Globalfoundries later in the year, two sources familiar with move said. read more
Mubadala, which manages over $240 billion in assets, declined to comment and the banks did not immediately respond to Reuters requests for comments.
Abu Dhabi state investor Mubadala has hired banks for the planned initial public offering of Al Yah Satellite Communications Company (Yahsat) which could raise over $500 million, three sources said.
Bank of America (BAC.N), First Abu Dhabi Bank (FAB.AD) and Morgan Stanley (MS.N) will act as global coordinators for the deal, while EFG Hermes (HRHO.CA), HSBC (HSBA.L) and Abu Dhabi Commercial Bank (ADCB.AD) will have bookrunner roles, they said.
Yahsat has five satellites that serve more than 150 countries, information on its website shows. It also owns satellite phone operator Thuraya.
Yahsat is among the three portfolio companies that Mubadala is pushing to go public this year, the sources said.
It is close to making a decision on the listing of Emirates Global Aluminium, which is owned by Mubadala and Investment Corp of Dubai.
It is also looking at a potential listing of Santa Clara-based semiconductor producer Globalfoundries later in the year, two sources familiar with move said. read more
Mubadala, which manages over $240 billion in assets, declined to comment and the banks did not immediately respond to Reuters requests for comments.
Aramco Said to Plan Bond Sale to Help Fund $75 Billion Dividend - Bloomberg
Aramco Said to Plan Bond Sale to Help Fund $75 Billion Dividend - Bloomberg
Saudi Aramco is preparing to return to global capital markets with a bond that would help fund a $75 billion dividend commitment, according to people with knowledge of the plan.
The world’s biggest energy company has picked around 15 banks to manage a sale of Islamic debt, or sukuk, that could happen this month, according to people with knowledge of the matter. The state-controlled firm may seek to raise around $5 billion, one of the people said.
Aramco is considering a sale of both dollar and local-currency sukuk, the people said. No decision has been made and the firm may put off the deal if market conditions deteriorate. Aramco declined to comment.
Several other state energy companies in the Persian Gulf are also mulling Eurobond sales. Qatar Petroleum may issue as much as $10 billion in the coming weeks, while Energy Development Oman is seeking to raise around $3 billion.
Saudi Aramco is preparing to return to global capital markets with a bond that would help fund a $75 billion dividend commitment, according to people with knowledge of the plan.
The world’s biggest energy company has picked around 15 banks to manage a sale of Islamic debt, or sukuk, that could happen this month, according to people with knowledge of the matter. The state-controlled firm may seek to raise around $5 billion, one of the people said.
Aramco is considering a sale of both dollar and local-currency sukuk, the people said. No decision has been made and the firm may put off the deal if market conditions deteriorate. Aramco declined to comment.
Several other state energy companies in the Persian Gulf are also mulling Eurobond sales. Qatar Petroleum may issue as much as $10 billion in the coming weeks, while Energy Development Oman is seeking to raise around $3 billion.
#Dubai's Deyaar sets conditions to Limitless settlement proposal | ZAWYA MENA Edition
Dubai's Deyaar sets conditions to Limitless settlement proposal | ZAWYA MENA Edition
Dubai-based real estate company Deyaar Development, which in 2019 won a dispute related to purchase of land against the developer, Limitless, said its board of directors has resolved to accept the settlement proposal, albeit with a few conditions.
The Court of Cassation had ordered Limitless to pay 411.9 million dirhams to Deyaar, plus fees and compensation of 61.1 million dirhams.
Regarding Limitless LLC’s offer of plots of land and cash, Deyaar’s board on Wednesday said it would accept the plots of land if it has all the necessary infrastructure as well as approvals for the masterplan from all relevant authorities.
In addition, the land valuations would need to be carried out by an independent third-party valuer appointed jointly by the parties, Deyaar said in a disclosure to DFM where its shares are listed.
Once the draft settlement is finalised with Limitless, Deyaar would seek shareholder approval through a special resolution, the developer said.
Limitless, which specialized in waterfront developments, went in for a third restructuring of its debt recently.
Dubai-based real estate company Deyaar Development, which in 2019 won a dispute related to purchase of land against the developer, Limitless, said its board of directors has resolved to accept the settlement proposal, albeit with a few conditions.
The Court of Cassation had ordered Limitless to pay 411.9 million dirhams to Deyaar, plus fees and compensation of 61.1 million dirhams.
Regarding Limitless LLC’s offer of plots of land and cash, Deyaar’s board on Wednesday said it would accept the plots of land if it has all the necessary infrastructure as well as approvals for the masterplan from all relevant authorities.
In addition, the land valuations would need to be carried out by an independent third-party valuer appointed jointly by the parties, Deyaar said in a disclosure to DFM where its shares are listed.
Once the draft settlement is finalised with Limitless, Deyaar would seek shareholder approval through a special resolution, the developer said.
Limitless, which specialized in waterfront developments, went in for a third restructuring of its debt recently.
GCC earnings bounced back in Q1 as economic activity resumed | ZAWYA MENA Edition
GCC earnings bounced back in Q1 as economic activity resumed | ZAWYA MENA Edition
Financial earnings of listed companies in the GCC bounced back in Q1 2021 due to a faster-than-expected economic recovery despite partial lockdowns where COVID-19 cases remerged, Kamo Invest said in a report.
Quarterly net profits reached $40 billion during Q1, up 49 percent or $13.2 billion compared to $26.8 billion reported in Q1-2020.
Earnings during the quarter also surpassed the comparative quarter in 2019 level by 4.4 percent.
The q-o-q growth as compared to Q4-2020 was even stronger at 60 percent. Out of the 21 sectors on the exchange, 17 sectors reported y-o-y as well as q-o-q growth in profits during Q1-2021.
Moreover, the top five sectors in the region reported a y-o-y profit growth of 42 percent.
The Energy sector reported the biggest profits in the region at $21.4 billion, up 28 percent y-o-y and 54 percent q-o-q. Profits for Saudi Aramco was up 24 percent y-o-y during Q1 at $21 billion, whereas the rest of the companies in the sector reported profits of $591 million in in the quarter under review compared to a loss of $181 million in Q1-2020.
The Banking sector also reported higher profits during the quarter at $8.4 billion; a growth of over 16 percent y-o-y and 66 percent q-o-q. The sequential growth reflected higher provisions-led decline in profits in Q4-2020. Out of the 64 banks in the region, 46 banks reported a growth in profits.
The Materials sector pivoted to gains from losses in the year-ago period. Profits stood at $3.45 billion Q1-2021 compared to $250 million loss in the year-earlier period and $1.6 billion in the past quarter. The turnaround in SABIC’s bottom-line from a loss of $0.3 billion in Q1-2020 to a profit of $1.9 billion was the biggest factor for profits jump at the sector level.
Three sectors, however, reported y-o-y decline in profits. They are Consumer Services, Food & Staples Retailing and Software & Services. Companies in the Food & Staples Retailing and Software & Services sectors reported smaller profits due to a higher base in Q1-2020. The decline in the Consumer Services sector was mainly led by losses in companies that continue to be affected by COVID-19 restrictions, including airlines and related industries.
Top performing exchanges
In terms of countries, aggregate net profits for Saudi Arabian listed companies rose 47 percent y-o-y to $29.3 billion in Q1-2021 against $19.9 billion in the year-ago quarter.
In the UAE, the companies listed on DFM reported the smallest y-o-y increase in net profits in the quarter. Aggregate net profits reached $2 billion, registering a y-o-y increase of 23 percent or $366 million.
Abu Dhabi ADX-listed corporates reported one of the best quarterly earnings performances in the GCC during Q1 with a y-o-y growth of over 82 percent or $1.5 billion whereas q-o-q growth was at 9.6 percent.
Boursa Kuwait-listed companies had the biggest y-o-y percentage net profit increase during Q1 with a three-fold jump. Net profits during the quarter reached $1.34 billion as compared to $0.45 billion during the year-ago quarter.
Financial earnings of listed companies in the GCC bounced back in Q1 2021 due to a faster-than-expected economic recovery despite partial lockdowns where COVID-19 cases remerged, Kamo Invest said in a report.
Quarterly net profits reached $40 billion during Q1, up 49 percent or $13.2 billion compared to $26.8 billion reported in Q1-2020.
Earnings during the quarter also surpassed the comparative quarter in 2019 level by 4.4 percent.
The q-o-q growth as compared to Q4-2020 was even stronger at 60 percent. Out of the 21 sectors on the exchange, 17 sectors reported y-o-y as well as q-o-q growth in profits during Q1-2021.
Moreover, the top five sectors in the region reported a y-o-y profit growth of 42 percent.
The Energy sector reported the biggest profits in the region at $21.4 billion, up 28 percent y-o-y and 54 percent q-o-q. Profits for Saudi Aramco was up 24 percent y-o-y during Q1 at $21 billion, whereas the rest of the companies in the sector reported profits of $591 million in in the quarter under review compared to a loss of $181 million in Q1-2020.
The Banking sector also reported higher profits during the quarter at $8.4 billion; a growth of over 16 percent y-o-y and 66 percent q-o-q. The sequential growth reflected higher provisions-led decline in profits in Q4-2020. Out of the 64 banks in the region, 46 banks reported a growth in profits.
The Materials sector pivoted to gains from losses in the year-ago period. Profits stood at $3.45 billion Q1-2021 compared to $250 million loss in the year-earlier period and $1.6 billion in the past quarter. The turnaround in SABIC’s bottom-line from a loss of $0.3 billion in Q1-2020 to a profit of $1.9 billion was the biggest factor for profits jump at the sector level.
Three sectors, however, reported y-o-y decline in profits. They are Consumer Services, Food & Staples Retailing and Software & Services. Companies in the Food & Staples Retailing and Software & Services sectors reported smaller profits due to a higher base in Q1-2020. The decline in the Consumer Services sector was mainly led by losses in companies that continue to be affected by COVID-19 restrictions, including airlines and related industries.
Top performing exchanges
In terms of countries, aggregate net profits for Saudi Arabian listed companies rose 47 percent y-o-y to $29.3 billion in Q1-2021 against $19.9 billion in the year-ago quarter.
In the UAE, the companies listed on DFM reported the smallest y-o-y increase in net profits in the quarter. Aggregate net profits reached $2 billion, registering a y-o-y increase of 23 percent or $366 million.
Abu Dhabi ADX-listed corporates reported one of the best quarterly earnings performances in the GCC during Q1 with a y-o-y growth of over 82 percent or $1.5 billion whereas q-o-q growth was at 9.6 percent.
Boursa Kuwait-listed companies had the biggest y-o-y percentage net profit increase during Q1 with a three-fold jump. Net profits during the quarter reached $1.34 billion as compared to $0.45 billion during the year-ago quarter.
MIDEAST STOCKS #Saudi stocks extend gains, most major Gulf markets up in early trade | Reuters
MIDEAST STOCKS Saudi stocks extend gains, most major Gulf markets up in early trade | Reuters
Most major Gulf markets rose in early trade on Wednesday, with Saudi stocks extending gains into a seventh session amid rising oil prices.
Oil prices rose on Wednesday after OPEC and its allies stuck to their plan to cautiously bring back more oil supply to the markets in June and July while expecting a robust recovery in demand in the United States and China.
Brent crude futures (.LCOc1) climbed 0.31% to $70.47 a barrel. read more
Saudi Arabia's benchmark index (.TASI) rose 0.4%, helped mostly by financial and material shares.
The Kingdom's largest lender Saudi National Bank (1180.SE) and Al Rajhi Bank (1120.SE) increased 1.3% and 0.2%, respectively, while National Industrialization Company (2060.SE) added 2.6%.
The Saudi index is up 22% this year following an end to a diplomatic rift with Qatar, and on rising oil prices, improving business activity in its non-oil sector and inflows of foreign funds.
Brent crude futures (.LCOc1) have gained 35% this year, according to Refinitiv Eikon data, and a monthly statement from the Saudi stock exchange showed that foreigners have been net buyers of Saudi stocks every month so far this year.
In April, the seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers' Index, which covers manufacturing and services, remained above the 50 mark that separates expansion from contraction for the eighth straight month. read more
The index in Abu Dhabi (.ADI) edged up 0.1%, supported by a 1.2% increase in International Holdings Company (IHC.AD).
IHC said on Monday it listed its construction unit Emirates Stallions on the Abu Dhabi securities exchange's second market. Emirates Stallions is the fourth IHC group company to list on the ADX second market, following the listings of Palm Sports, Easylease and Zee Stores in late 2020.
Gains were partially capped by ADNOC Distribution (ADNOCDIST.AD), which fell 2.1%.
The Dubai index (.DFMGI) traded 0.1% higher, with Damac Properties (DAMAC.DU) rising 3.6% and Dubai Islamic Bank (DISB.DU) gaining 0.4%.
The Qatari index (.QSI) was trading flat, with the Gulf's largest lender Qatar National Bank (QNBK.QA) adding 0.6% and Industries Qatar (IQCD.QA) losing 0.2%.
Most major Gulf markets rose in early trade on Wednesday, with Saudi stocks extending gains into a seventh session amid rising oil prices.
Oil prices rose on Wednesday after OPEC and its allies stuck to their plan to cautiously bring back more oil supply to the markets in June and July while expecting a robust recovery in demand in the United States and China.
Brent crude futures (.LCOc1) climbed 0.31% to $70.47 a barrel. read more
Saudi Arabia's benchmark index (.TASI) rose 0.4%, helped mostly by financial and material shares.
The Kingdom's largest lender Saudi National Bank (1180.SE) and Al Rajhi Bank (1120.SE) increased 1.3% and 0.2%, respectively, while National Industrialization Company (2060.SE) added 2.6%.
The Saudi index is up 22% this year following an end to a diplomatic rift with Qatar, and on rising oil prices, improving business activity in its non-oil sector and inflows of foreign funds.
Brent crude futures (.LCOc1) have gained 35% this year, according to Refinitiv Eikon data, and a monthly statement from the Saudi stock exchange showed that foreigners have been net buyers of Saudi stocks every month so far this year.
In April, the seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers' Index, which covers manufacturing and services, remained above the 50 mark that separates expansion from contraction for the eighth straight month. read more
The index in Abu Dhabi (.ADI) edged up 0.1%, supported by a 1.2% increase in International Holdings Company (IHC.AD).
IHC said on Monday it listed its construction unit Emirates Stallions on the Abu Dhabi securities exchange's second market. Emirates Stallions is the fourth IHC group company to list on the ADX second market, following the listings of Palm Sports, Easylease and Zee Stores in late 2020.
Gains were partially capped by ADNOC Distribution (ADNOCDIST.AD), which fell 2.1%.
The Dubai index (.DFMGI) traded 0.1% higher, with Damac Properties (DAMAC.DU) rising 3.6% and Dubai Islamic Bank (DISB.DU) gaining 0.4%.
The Qatari index (.QSI) was trading flat, with the Gulf's largest lender Qatar National Bank (QNBK.QA) adding 0.6% and Industries Qatar (IQCD.QA) losing 0.2%.
Analysis-Investors forgiving as #Oman's austerity drive hits bumps in the road | Reuters
Analysis-Investors forgiving as Oman's austerity drive hits bumps in the road | Reuters
Oman may be rowing back on an austerity plan to fix its shaky finances in the face of protests over unemployment but investors are cutting the Gulf state’s new ruler some slack for now.
Sultan Haitham, who acceded to the throne in January 2020, promised last week on the third day of rare demonstrations in several towns and cities to create 32,000 jobs and subsidise private companies that take on Omanis.
But the move did not trigger any major drop in the price of Oman’s bonds, with investors saying some flexibility in its fiscal adjustment was expected to guarantee social stability in a country also hit by protests over jobs and corruption in 2011.
“The market reaction is reflecting an understanding that significant reform, particularly as it relates to taxation in a region that has limited precedence, will meet obstacles, but has not been materially derailed,” said Sharif Eid, a portfolio manager at Franklin Templeton Investments.
“Short term, measured adjustments are to be expected, particularly as they may impact social factors,” he said.
Oman’s government bonds due in 2047 yielded 6.9% at the end of last week, only slightly higher than 6.7% before the protests. In March last year, the yield hit nearly 12% as the coronavirus outbreak triggered a collapse in crude prices.
Oman’s austerity measures unveiled last year are seen as crucial for maintaining the cash-strapped country’s ability to access international debt markets ahead of debt redemptions worth about $11 billion this year and next.
Oman is among the weakest countries financially in the oil-rich region and more vulnerable to swings in the price of hydrocarbons, a sector that accounted for about a third of its gross domestic product (GDP) in 2019.
Since the oil price crash in 2014, its debt to GDP ratio has leapt from about 15% in 2015 to 80% last year, while Oman’s plans to diversify revenue away from oil and to reduce spending on its bloated public sector have lagged.
Oman’s finance ministry and central bank did not respond to requests for comment about the country’s ability to prop up its economy in the face of financial constraints.
Oman may be rowing back on an austerity plan to fix its shaky finances in the face of protests over unemployment but investors are cutting the Gulf state’s new ruler some slack for now.
Sultan Haitham, who acceded to the throne in January 2020, promised last week on the third day of rare demonstrations in several towns and cities to create 32,000 jobs and subsidise private companies that take on Omanis.
But the move did not trigger any major drop in the price of Oman’s bonds, with investors saying some flexibility in its fiscal adjustment was expected to guarantee social stability in a country also hit by protests over jobs and corruption in 2011.
“The market reaction is reflecting an understanding that significant reform, particularly as it relates to taxation in a region that has limited precedence, will meet obstacles, but has not been materially derailed,” said Sharif Eid, a portfolio manager at Franklin Templeton Investments.
“Short term, measured adjustments are to be expected, particularly as they may impact social factors,” he said.
Oman’s government bonds due in 2047 yielded 6.9% at the end of last week, only slightly higher than 6.7% before the protests. In March last year, the yield hit nearly 12% as the coronavirus outbreak triggered a collapse in crude prices.
Oman’s austerity measures unveiled last year are seen as crucial for maintaining the cash-strapped country’s ability to access international debt markets ahead of debt redemptions worth about $11 billion this year and next.
Oman is among the weakest countries financially in the oil-rich region and more vulnerable to swings in the price of hydrocarbons, a sector that accounted for about a third of its gross domestic product (GDP) in 2019.
Since the oil price crash in 2014, its debt to GDP ratio has leapt from about 15% in 2015 to 80% last year, while Oman’s plans to diversify revenue away from oil and to reduce spending on its bloated public sector have lagged.
Oman’s finance ministry and central bank did not respond to requests for comment about the country’s ability to prop up its economy in the face of financial constraints.
Oil extends gains on OPEC+ supply discipline, demand prospects | Reuters
Oil extends gains on OPEC+ supply discipline, demand prospects | Reuters
Oil prices rose on Wednesday after OPEC and its allies stuck to their plan to cautiously bring back oil supply to the markets in June and July while expecting a robust recovery in demand in the United States and China, the world's two biggest oil consumers.
U.S. West Texas Intermediate (WTI) crude futures rose 18 cents, or 0.27%, to $67.90 as of 0642 GMT, extending a 2.1% gain following the Memorial Day holiday in the United States on Monday. Prices rose to their highest since October 2018.
Brent crude futures climbed 22 cents, or 0.31%, to $70.47 a barrel, after rising 1.3% overnight, when it hit its highest since March 8.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, together called OPEC+, agreed on Tuesday to keep to their plan to gradually ease supply curbs through July.
Oil prices rose on Wednesday after OPEC and its allies stuck to their plan to cautiously bring back oil supply to the markets in June and July while expecting a robust recovery in demand in the United States and China, the world's two biggest oil consumers.
U.S. West Texas Intermediate (WTI) crude futures rose 18 cents, or 0.27%, to $67.90 as of 0642 GMT, extending a 2.1% gain following the Memorial Day holiday in the United States on Monday. Prices rose to their highest since October 2018.
Brent crude futures climbed 22 cents, or 0.31%, to $70.47 a barrel, after rising 1.3% overnight, when it hit its highest since March 8.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, together called OPEC+, agreed on Tuesday to keep to their plan to gradually ease supply curbs through July.
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