Oil steady after mixed U.S. crude inventory report | Reuters
Oil prices steadied on Thursday following two straight days of gains that took oil futures to highs not seen in a year, after weekly U.S. crude stocks fell sharply while fuel inventories rose more than expected.
Brent futures settled at $71.31 a barrel, down 4 cents after touching its highest since May 2019 earlier in the session. U.S. crude settled at $68.81 a barrel, losing 2 cents. WTI prices rose as high as $69.40, the strongest since October 2018, after gaining 1.5% in the previous session.
U.S. crude inventories dropped by 5.1 million barrels last week, compared with expectations for a decrease of 2.4 million barrels, while gasoline stocks grew by 1.5 million barrels and distillate stockpiles jumped by 3.7 million barrels. [EIA/S]
“They burned through a lot of crude oil though, and we had builds in gasoline and distillate,” Bob Yawger, director of energy futures at Mizuho in New York. “You don’t want to be burning that much crude and then the customers don’t want it.”
Thursday, 3 June 2021
#Saudi IPO Berain Water Picks Banks to Manage Offering - Bloomberg
Saudi IPO Berain Water Picks Banks to Manage Offering - Bloomberg
One of Saudi Arabia’s biggest bottled-water companies is exploring going public, according to people familiar with the matter.
Riyadh-based Berain Water has hired the investment banking arm of Samba Financial Group to manage a possible initial public offering of a 30% stake, the people said, asking not to be identified as the information is private. No decision has yet been made and the company may decide against an IPO, they said.
Samba Capital and Berain declined to comment.
The IPO could add to a string of listings in Saudi Arabia, where companies are taking advantage of investors’ demand for new offerings and as state entities look to raise money to bankroll efforts to diversify the economy.
The listing would also open a new industry to public investment in Saudi Arabia, a desert country that’s forecast to be among the top 10 most “water-stressed” nations in 2040 by research organization the World Resources Institute. The kingdom is also expected later this year to sell part of one of the world’s biggest desalination plants, the Ras Al-Khair facility on Saudi Arabia’s Persian Gulf coast.
Berain is owned by Global Beverages Co., a subsidiary of Rajhi Invest.
Some government-controlled firms including the Saudi stock exchange and Acwa Power are also pushing ahead with plans to raise money by selling shares this year. Saudi Telecom Co. and Saudi Basic Industries Corp. are planning to offer stakes in subsidiaries.
One of Saudi Arabia’s biggest bottled-water companies is exploring going public, according to people familiar with the matter.
Riyadh-based Berain Water has hired the investment banking arm of Samba Financial Group to manage a possible initial public offering of a 30% stake, the people said, asking not to be identified as the information is private. No decision has yet been made and the company may decide against an IPO, they said.
Samba Capital and Berain declined to comment.
The IPO could add to a string of listings in Saudi Arabia, where companies are taking advantage of investors’ demand for new offerings and as state entities look to raise money to bankroll efforts to diversify the economy.
The listing would also open a new industry to public investment in Saudi Arabia, a desert country that’s forecast to be among the top 10 most “water-stressed” nations in 2040 by research organization the World Resources Institute. The kingdom is also expected later this year to sell part of one of the world’s biggest desalination plants, the Ras Al-Khair facility on Saudi Arabia’s Persian Gulf coast.
Berain is owned by Global Beverages Co., a subsidiary of Rajhi Invest.
Some government-controlled firms including the Saudi stock exchange and Acwa Power are also pushing ahead with plans to raise money by selling shares this year. Saudi Telecom Co. and Saudi Basic Industries Corp. are planning to offer stakes in subsidiaries.
Mideast Stocks: #Saudi, #UAE markets extend weekly gaining streak | ZAWYA MENA Edition
Mideast Stocks: Saudi, UAE markets extend weekly gaining streak | ZAWYA MENA Edition
Stocks in the United Arab Emirates and Saudi Arabia extended their weekly gaining streak, boosted by rising oil prices and improving business activity in the non-oil sector.
Saudi Arabia's benchmark stock index added 1.7% in its fourth consecutive weekly gains, as Brent crude LCOc1 has risen in four of last five weeks, according to Refinitiv data.
Sentiment was also boosted by a survey showing Saudi Arabia's non-oil private sector expanded for the ninth consecutive month in May.
The stock index was up 0.4% on Thursday, rising for an eighth straight session, helped by a 4.3% jump in Saudi Telecom .
The Dubai index fell 0.5% but logged its fifth weekly gain in a row. Emirates NBD Bank dropped 1.4% and Damac Properties declined 3.5% for the day.
Abu Dhabi's index closed down 0.3%. Emirates Telecommunications Group and First Abu Dhabi Bank shed 0.8% and 0.4%, respectively. The stock index registered a fifth weekly rise.
The United Arab Emirates' non-oil private sector expanded for a sixth consecutive month in May, a survey showed.
Qatar's index fell 0.5%, wiping out its gain for the week. The index was down 0.1% for the week.
Commercial Bank led the losers, shedding 1.6%. The lender offered to buy an additional 15.2% stake in National Bank of Oman for 49.4 million rials.
Outside the Gulf, Egypt's blue-chip index was down 0.7% with Fawry For Banking Technology And Electronic Payment and Commercial International Bank dropping 3.2% and 0.1%, respectively.
The Egyptian index posted its third consecutive weekly drop, down 1.8%.
Egypt's non-oil private sector contracted for a sixth consecutive month in May, with HIS Markit's Purchasing Managers' Index (PMI)stood at 48.6 - below the 50.0 threshold that separates growth from contraction.
Stocks in the United Arab Emirates and Saudi Arabia extended their weekly gaining streak, boosted by rising oil prices and improving business activity in the non-oil sector.
Saudi Arabia's benchmark stock index added 1.7% in its fourth consecutive weekly gains, as Brent crude LCOc1 has risen in four of last five weeks, according to Refinitiv data.
Sentiment was also boosted by a survey showing Saudi Arabia's non-oil private sector expanded for the ninth consecutive month in May.
The stock index was up 0.4% on Thursday, rising for an eighth straight session, helped by a 4.3% jump in Saudi Telecom .
The Dubai index fell 0.5% but logged its fifth weekly gain in a row. Emirates NBD Bank dropped 1.4% and Damac Properties declined 3.5% for the day.
Abu Dhabi's index closed down 0.3%. Emirates Telecommunications Group and First Abu Dhabi Bank shed 0.8% and 0.4%, respectively. The stock index registered a fifth weekly rise.
The United Arab Emirates' non-oil private sector expanded for a sixth consecutive month in May, a survey showed.
Qatar's index fell 0.5%, wiping out its gain for the week. The index was down 0.1% for the week.
Commercial Bank led the losers, shedding 1.6%. The lender offered to buy an additional 15.2% stake in National Bank of Oman for 49.4 million rials.
Outside the Gulf, Egypt's blue-chip index was down 0.7% with Fawry For Banking Technology And Electronic Payment and Commercial International Bank dropping 3.2% and 0.1%, respectively.
The Egyptian index posted its third consecutive weekly drop, down 1.8%.
Egypt's non-oil private sector contracted for a sixth consecutive month in May, with HIS Markit's Purchasing Managers' Index (PMI)stood at 48.6 - below the 50.0 threshold that separates growth from contraction.
Petrostates See Dire Consequences If World Rejects Oil Too Fast - Bloomberg
Petrostates See Dire Consequences If World Rejects Oil Too Fast - Bloomberg
The world’s largest petrostates rejected calls for a rapid shift away from oil and gas, warning that starving the industry of investment would harm the global economy.
If the world were to follow the International Energy Agency’s controversial road map, which said investment in new fields would have to stop immediately to achieve net-zero carbon emissions by 2050, “the price for oil will go to, what, $200? Gas prices will skyrocket,” said Russian Deputy Prime Minister Alexander Novak.
His warnings were echoed by the energy ministers of Qatar and Saudi Arabia, who said they will keep expanding their oil and gas facilities and warned others against the consequences of starving the industry cash.
The “euphoria” around the transition to clean energy is “dangerous,” Qatar’s Energy Minister Saad Sherida Al Kaabi said at the St Petersburg International Economic Forum in Russia on Thursday. “When you deprive the business from additional investments, you have big spikes” in prices.
It’s no surprise that top officials from the world’s largest fossil fuel exporters want to see the industry continue for decades to come. Their comments are illustrative of the vast gulf between the world’s current carbon-based energy system and the changes required to prevent damaging climate change.
Saudi Energy Minister Prince Abdulaziz bin Salman has already dismissed the IEA road map, which would limit the average increase in global temperatures to 1.5 Celsius, calling it a “la-la-land” scenario. When asked on Thursday if oil is dead, he responded by saying the kingdom is increasing its production capacity.
Qatar is pushing ahead with its $29 billion expansion of liquefied natural gas facilities and will decide whether to take international partners in the project by the end of this year, Al Kaabi said. Oil and gas will still be around for decades to come, Novak said.
The world’s largest petrostates rejected calls for a rapid shift away from oil and gas, warning that starving the industry of investment would harm the global economy.
If the world were to follow the International Energy Agency’s controversial road map, which said investment in new fields would have to stop immediately to achieve net-zero carbon emissions by 2050, “the price for oil will go to, what, $200? Gas prices will skyrocket,” said Russian Deputy Prime Minister Alexander Novak.
His warnings were echoed by the energy ministers of Qatar and Saudi Arabia, who said they will keep expanding their oil and gas facilities and warned others against the consequences of starving the industry cash.
The “euphoria” around the transition to clean energy is “dangerous,” Qatar’s Energy Minister Saad Sherida Al Kaabi said at the St Petersburg International Economic Forum in Russia on Thursday. “When you deprive the business from additional investments, you have big spikes” in prices.
It’s no surprise that top officials from the world’s largest fossil fuel exporters want to see the industry continue for decades to come. Their comments are illustrative of the vast gulf between the world’s current carbon-based energy system and the changes required to prevent damaging climate change.
Saudi Energy Minister Prince Abdulaziz bin Salman has already dismissed the IEA road map, which would limit the average increase in global temperatures to 1.5 Celsius, calling it a “la-la-land” scenario. When asked on Thursday if oil is dead, he responded by saying the kingdom is increasing its production capacity.
Qatar is pushing ahead with its $29 billion expansion of liquefied natural gas facilities and will decide whether to take international partners in the project by the end of this year, Al Kaabi said. Oil and gas will still be around for decades to come, Novak said.
Premature to talk about oil market overheating, #Saudi minister says | Reuters
Premature to talk about oil market overheating, Saudi minister says | Reuters
It would be premature to talk about potential overheating in the global oil market before seeing higher demand, Russia’s RIA news agency quoted Saudi Arabian energy minister Abdulaziz bin Salman as saying on Thursday.
“There will always be a good amount of supply to meet demand, but we’ll have to see demand before you see supply,” he said when asked about the overheating risk at the St Petersburg economic forum in Russia.
It would be premature to talk about potential overheating in the global oil market before seeing higher demand, Russia’s RIA news agency quoted Saudi Arabian energy minister Abdulaziz bin Salman as saying on Thursday.
“There will always be a good amount of supply to meet demand, but we’ll have to see demand before you see supply,” he said when asked about the overheating risk at the St Petersburg economic forum in Russia.
Rare Cross-Gulf Bank Tie-Up May Strengthen With #Qatar Lender Bid - Bloomberg
Rare Cross-Gulf Bank Tie-Up May Strengthen With Qatar Lender Bid - Bloomberg
Qatar’s third-biggest lender is looking to build a controlling stake in National Bank of Oman as meager expansion opportunities at home drive financial firms to seek out growth farther afield.
Commercial Bank of Qatar QSC has offered 49.43 million rials ($128 million) to raise its holding by 15.2% to 50.1%, according to a regulatory statement Thursday. The proposal to acquire 247 million shares represents a 18% premium to NBO’s closing price of June 2.
NBO’s shares rose as much as 9.5% in Muscat, the biggest intraday jump since January. The stock is heading for the highest closing price since the start of the pandemic last year. CBQ declined as much as 0.7%, underperforming the broader market.
Qatar’s third-biggest lender is looking to build a controlling stake in National Bank of Oman as meager expansion opportunities at home drive financial firms to seek out growth farther afield.
Commercial Bank of Qatar QSC has offered 49.43 million rials ($128 million) to raise its holding by 15.2% to 50.1%, according to a regulatory statement Thursday. The proposal to acquire 247 million shares represents a 18% premium to NBO’s closing price of June 2.
NBO’s shares rose as much as 9.5% in Muscat, the biggest intraday jump since January. The stock is heading for the highest closing price since the start of the pandemic last year. CBQ declined as much as 0.7%, underperforming the broader market.
#AbuDhabi’s ADQ Weighs Stake in Juhayna Food Egyptian Dairy Firm - Bloomberg
Abu Dhabi’s ADQ Weighs Stake in Juhayna Food Egyptian Dairy Firm - Bloomberg
ADQ is considering acquiring a stake in Juhayna Food Industries as the Abu Dhabi sovereign wealth fund pursues more deals in Egypt, according to people familiar with the matter.
Abu Dhabi’s newest state fund has been weighing a potential investment in Egypt’s largest dairy and juice producer, the people said, asking not to be identified as the matter is private. Shares of Juhayna were up 5% at 10:46 a.m. Thursday in Cairo for the biggest intraday gain in more than two weeks, giving the company a market value of 4.2 billion Egyptian pounds ($266 million).
Deliberations are in the early stages and there’s no certainty ADQ will proceed with any transaction, the people said. A representative for ADQ wasn’t immediately available for comment. Juhayna management haven’t received any official offers or letters from ADQ, the company said in an exchange filing Thursday.
ADQ has been among the most active Middle East investors since its inception in 2018 and has been looking beyond the United Arab Emirates for deals. Egypt has been a region of focus, with ADQ committing to invest $10 billion alongside the country’s sovereign wealth fund.
Last year, ADQ agreed to partner with LuLu Group International, which runs one of the Middle East’s largest hypermarket chains, by investing $1 billion to back the grocer’s expansion in Egypt. And in March, it bought an Egyptian pharmaceuticals company from Bausch Health Cos. for $740 million.
Founded in 1983 by Safwan Thabet, Juhayna manufactures more than 200 products and employs over 4,000 people, according to its website. Its share price has taken a hit since late 2020 after authorities detained Thabet and then his son, Seifeldin Thabet, who is chief executive officer and deputy chairman.
ADQ is considering acquiring a stake in Juhayna Food Industries as the Abu Dhabi sovereign wealth fund pursues more deals in Egypt, according to people familiar with the matter.
Abu Dhabi’s newest state fund has been weighing a potential investment in Egypt’s largest dairy and juice producer, the people said, asking not to be identified as the matter is private. Shares of Juhayna were up 5% at 10:46 a.m. Thursday in Cairo for the biggest intraday gain in more than two weeks, giving the company a market value of 4.2 billion Egyptian pounds ($266 million).
Deliberations are in the early stages and there’s no certainty ADQ will proceed with any transaction, the people said. A representative for ADQ wasn’t immediately available for comment. Juhayna management haven’t received any official offers or letters from ADQ, the company said in an exchange filing Thursday.
ADQ has been among the most active Middle East investors since its inception in 2018 and has been looking beyond the United Arab Emirates for deals. Egypt has been a region of focus, with ADQ committing to invest $10 billion alongside the country’s sovereign wealth fund.
Last year, ADQ agreed to partner with LuLu Group International, which runs one of the Middle East’s largest hypermarket chains, by investing $1 billion to back the grocer’s expansion in Egypt. And in March, it bought an Egyptian pharmaceuticals company from Bausch Health Cos. for $740 million.
Founded in 1983 by Safwan Thabet, Juhayna manufactures more than 200 products and employs over 4,000 people, according to its website. Its share price has taken a hit since late 2020 after authorities detained Thabet and then his son, Seifeldin Thabet, who is chief executive officer and deputy chairman.
LNG trade rises to record in 2020 but growth slowed by COVID-19 -IGU | Reuters
LNG trade rises to record in 2020 but growth slowed by COVID-19 -IGU | Reuters
Global liquefied natural gas (LNG) trade volumes rose to a record last year led by Asia, though growth was marginal as demand was slammed by coronavirus-induced restrictions, according to a report by the International Gas Union (IGU).
Overall LNG trade increased to 356.1 million tonnes last year, up by 1.4 million tonnes or about 0.4% from 2019, mostly driven by increased exports from the United States and Australia, the group said in its annual report released on Thursday.
This was smaller than the growth of 40.9 million tonnes, or 11.5%, in 2019, the IGU said. But, LNG was one of the few commodities that had an increase in trade in 2020, it said.
"LNG trade in 2020 was heavily impacted by COVID-19, as markets, cities and producers across the globe wrestled with lockdowns and a multitude of other disruptions," said the IGU, which comprises more than 160 members and advocates the use of gas.
Australia overtook Qatar as the largest LNG exporter in the world, while the U.S. and Russia remained as the third- and fourth-largest exporters respectively, it added.
In 2020, the U.S. exported 11 million tonnes, or about 33%, more than in 2019 due to new production from Freeport LNG, Cameron LNG and Elba Island. Exports, however, declined from Trinidad and Tobago, Malaysia, Egypt, Algeria and Norway, the IGU said.
For imports, Asia made up 70% of overall volumes with growth mainly driven by China, India, Taiwan and South Korea, with Myanmar being a new importer.
"While COVID-19 meant significant restrictions for some of these markets, they likely also benefited from the lower price period in 2020 and purchased additional short-term volumes, and expansion of regasification capacity in some cases," IGU said.
Extended lockdowns and the increased share of renewables in the energy mix reduced net imports into Europe by 4.3 million tonnes.
COVID-19 also severely impacted liquefaction development with companies delaying final investment decisions on projects up to 2021 and later because of the uncertain economic climate with developers prioritising deferment of capital expenditure, IGU said.
For instance, a total of 87.3 million tonnes per annum (mtpa) of capacity were expected to be sanctioned in 2020, but only one project of 3.25 mtpa in Mexico was approved.
New regasification projects in China and India will continue to support gas demand while projects under construction in Ghana, El Salvador, Cyprus and Nicaragua and expected online over the next two years could see these countries make their debut LNG purchases, IGU said.
Global liquefied natural gas (LNG) trade volumes rose to a record last year led by Asia, though growth was marginal as demand was slammed by coronavirus-induced restrictions, according to a report by the International Gas Union (IGU).
Overall LNG trade increased to 356.1 million tonnes last year, up by 1.4 million tonnes or about 0.4% from 2019, mostly driven by increased exports from the United States and Australia, the group said in its annual report released on Thursday.
This was smaller than the growth of 40.9 million tonnes, or 11.5%, in 2019, the IGU said. But, LNG was one of the few commodities that had an increase in trade in 2020, it said.
"LNG trade in 2020 was heavily impacted by COVID-19, as markets, cities and producers across the globe wrestled with lockdowns and a multitude of other disruptions," said the IGU, which comprises more than 160 members and advocates the use of gas.
Australia overtook Qatar as the largest LNG exporter in the world, while the U.S. and Russia remained as the third- and fourth-largest exporters respectively, it added.
In 2020, the U.S. exported 11 million tonnes, or about 33%, more than in 2019 due to new production from Freeport LNG, Cameron LNG and Elba Island. Exports, however, declined from Trinidad and Tobago, Malaysia, Egypt, Algeria and Norway, the IGU said.
For imports, Asia made up 70% of overall volumes with growth mainly driven by China, India, Taiwan and South Korea, with Myanmar being a new importer.
"While COVID-19 meant significant restrictions for some of these markets, they likely also benefited from the lower price period in 2020 and purchased additional short-term volumes, and expansion of regasification capacity in some cases," IGU said.
Extended lockdowns and the increased share of renewables in the energy mix reduced net imports into Europe by 4.3 million tonnes.
COVID-19 also severely impacted liquefaction development with companies delaying final investment decisions on projects up to 2021 and later because of the uncertain economic climate with developers prioritising deferment of capital expenditure, IGU said.
For instance, a total of 87.3 million tonnes per annum (mtpa) of capacity were expected to be sanctioned in 2020, but only one project of 3.25 mtpa in Mexico was approved.
New regasification projects in China and India will continue to support gas demand while projects under construction in Ghana, El Salvador, Cyprus and Nicaragua and expected online over the next two years could see these countries make their debut LNG purchases, IGU said.
#Dubai developer Emaar hires banks for dollar sukuk sale -sources | Reuters
Dubai developer Emaar hires banks for dollar sukuk sale -sources | Reuters
Dubai real estate company Emaar Properties (EMAR.DU) has hired banks for issuance of U.S. dollar-denominated Islamic bonds, or sukuk, as soon as next week, two sources close to the matter said without disclosing how much it aims to raise.
The builder of the world's tallest building, Dubai's Burj Khalifa, last issued international bonds in 2019, raising $500 million via sukuk.
Emaar did not immediately respond to a Reuters request for comment.
S&P Global Ratings downgraded Emaar to a BB+ "junk" rating last July as the real estate and retail sectors were slammed by the COVID-19 pandemic and related restrictions.
The 10-year sukuk issued in 2019 at a rate of 3.875% traded at 101.3 cents on the dollar on Wednesday, data from Refinitiv's Tradeweb showed.
Emaar, which is 29.22% owned by state fund Investment Corporation of Dubai, last month reported an 8% rise in first-quarter net profit to 657 million dirhams ($178.88 million), which founder Mohamed Alabbar said was "comparable" with pre-pandemic results in 2019.
The company and its subsidiaries have outstanding debt of $817.25 million, Refinitiv data shows.
Dubai real estate company Emaar Properties (EMAR.DU) has hired banks for issuance of U.S. dollar-denominated Islamic bonds, or sukuk, as soon as next week, two sources close to the matter said without disclosing how much it aims to raise.
The builder of the world's tallest building, Dubai's Burj Khalifa, last issued international bonds in 2019, raising $500 million via sukuk.
Emaar did not immediately respond to a Reuters request for comment.
S&P Global Ratings downgraded Emaar to a BB+ "junk" rating last July as the real estate and retail sectors were slammed by the COVID-19 pandemic and related restrictions.
The 10-year sukuk issued in 2019 at a rate of 3.875% traded at 101.3 cents on the dollar on Wednesday, data from Refinitiv's Tradeweb showed.
Emaar, which is 29.22% owned by state fund Investment Corporation of Dubai, last month reported an 8% rise in first-quarter net profit to 657 million dirhams ($178.88 million), which founder Mohamed Alabbar said was "comparable" with pre-pandemic results in 2019.
The company and its subsidiaries have outstanding debt of $817.25 million, Refinitiv data shows.
Oil Trades Near 2018 High as Report Signals Falling Stockpiles - Bloomberg video
Oil Trades Near 2018 High as Report Signals Falling Stockpiles - Bloomberg
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Battle Looms in Key Oil Market as #Iran Aims to Seize Back Sales - Bloomberg
Battle Looms in Key Oil Market as Iran Aims to Seize Back Sales - Bloomberg
The likely return of Iranian oil is setting up what promises to be an aggressive battle to supply a corner of the coveted Asian market.
Iran is a major producer of condensates -- ultra-light oil that’s a by-product from natural gas fields -- and South Korea is Asia’s biggest operator of splitters designed to turn it into petrochemicals used to make plastics.
SK Innovation Co., Hanwha Total Petrochemical Co. and Hyundai Oilbank Co. used to favor Iran’s South Pars condensate due to plentiful supply and relatively low prices, but U.S. sanctions saw those flows dry up from 2019. The South Korean refiners then turned to condensates from Qatar and Australia, as well as West Texas Light crude and full-range naphtha from Europe and Africa.
With the Iranian nuclear accord possibly being revived by August, the Persian Gulf nation will be keen to win back its former customers. And while the battle for market share will be centered on Korean condensate buyers, it will also ripple through Asian markets for light crudes and naphtha.
The likely return of Iranian oil is setting up what promises to be an aggressive battle to supply a corner of the coveted Asian market.
Iran is a major producer of condensates -- ultra-light oil that’s a by-product from natural gas fields -- and South Korea is Asia’s biggest operator of splitters designed to turn it into petrochemicals used to make plastics.
SK Innovation Co., Hanwha Total Petrochemical Co. and Hyundai Oilbank Co. used to favor Iran’s South Pars condensate due to plentiful supply and relatively low prices, but U.S. sanctions saw those flows dry up from 2019. The South Korean refiners then turned to condensates from Qatar and Australia, as well as West Texas Light crude and full-range naphtha from Europe and Africa.
With the Iranian nuclear accord possibly being revived by August, the Persian Gulf nation will be keen to win back its former customers. And while the battle for market share will be centered on Korean condensate buyers, it will also ripple through Asian markets for light crudes and naphtha.
Momentum builds against 60s ‘rule’ in #Kuwait | ZAWYA MENA Edition
Momentum builds against 60s ‘rule’ in Kuwait | ZAWYA MENA Edition
Officials from the Kuwait Chamber of Commerce and Industry (KCCI) recently met with the Cabinet’s Finance Committee in the presence of representatives of the Public Authority for Manpower (PAM), and demanded the cancellation of the decision to prevent the renewal of work permits of expatriates aged 60 years and above, and holders of high school certification and below, reports Al-Rai daily.
According to informed sources, the Finance Committee listened to an explanation about the considerations pitched in by KCCI officials to reject the decision.
Three main proposals were submitted for mitigating the risks of the implementation of this decision.
The first proposal is for the concerned person to pay a fee ranging between KD 1,000 and KD 2,000 to the state upon renewal for the first time, taking into account the human and social conditions of the residents of this segment.
The second proposal is related to imposing an annual fee on the beneficiaries of this procedure. The third proposal submitted by KCCI stipulates that every resident on whom the decision applies must take health insurance.
In this case, fears that the state will bear the costs of treatment of diseases that may arise at this age can be dispelled, taking into account that the children of this segment, like the majority of residents, do not study in government schools or universities.
The sources stressed that the Minister of Commerce and Industry Dr Abdullah Al-Salman, who supervises PAM, expressed his interest in the proposals submitted in agreement with the Government’s Finance Committee.
Officials from the Kuwait Chamber of Commerce and Industry (KCCI) recently met with the Cabinet’s Finance Committee in the presence of representatives of the Public Authority for Manpower (PAM), and demanded the cancellation of the decision to prevent the renewal of work permits of expatriates aged 60 years and above, and holders of high school certification and below, reports Al-Rai daily.
According to informed sources, the Finance Committee listened to an explanation about the considerations pitched in by KCCI officials to reject the decision.
Three main proposals were submitted for mitigating the risks of the implementation of this decision.
The first proposal is for the concerned person to pay a fee ranging between KD 1,000 and KD 2,000 to the state upon renewal for the first time, taking into account the human and social conditions of the residents of this segment.
The second proposal is related to imposing an annual fee on the beneficiaries of this procedure. The third proposal submitted by KCCI stipulates that every resident on whom the decision applies must take health insurance.
In this case, fears that the state will bear the costs of treatment of diseases that may arise at this age can be dispelled, taking into account that the children of this segment, like the majority of residents, do not study in government schools or universities.
The sources stressed that the Minister of Commerce and Industry Dr Abdullah Al-Salman, who supervises PAM, expressed his interest in the proposals submitted in agreement with the Government’s Finance Committee.
#UAE non-oil sector showed signs of improvement in May; job numbers disappoint | ZAWYA MENA Edition
UAE non-oil sector showed signs of improvement in May; job numbers disappoint | ZAWYA MENA Edition
The UAE non-oil economy continued to recover midway through the second quarter, as domestic demand improved on the back of rising confidence surrounding the COVID-19 pandemic, a survey showed on Thursday.
While output rose at a solid pace, employment numbers continued to slow down and input purchases increased only slightly.
The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, edged down to 52.3 in May from 52.7 in April, highlighting a moderate improvement in business conditions.
Improving domestic sales helped new orders, whereas international orders were stymied by COVID-19 restrictions in some destinations for UAE exports, the IHS Markit report said.
"UAE's non-oil private sector showed further signs of improvement in May, although growth slipped marginally from April's recent high. New orders were largely supported by domestic sales, as latest data signalled a slight decrease in export orders," said David Owen, economist at IHS Markit.
Surveyed firms highlighted that competition in the market and uncertainty linked to the pandemic led to reduced new orders, prompting companies to lower their selling prices.
Several businesses kept employment numbers unchanged in May, while some firms cut their staff levels due to cash flow issues. As a result, employment fell for the fourth month in a row, the report noted.
"Employment numbers continued to disappoint in May, falling for the fourth month in a row. With backlogs starting to rise and demand strengthening, it is hoped that businesses will start to raise their staffing levels soon to support overall growth," Owen said.
Business expectations for the upcoming 12 months climbed again in May, the survey said. Only around 14 percent of surveyed firms expected output to rise in the next 12 months and it was attributed to a recovery from the pandemic, with the Expo 2020 also cited. The multi-month Expo 2020, which starts in October, is expected to attract visitors to the Emirates.
According to the IMF, the UAE economy contracted 5.9 percent last year. But it has had one of the world's fastest COVID-19 vaccination programmes.
The UAE non-oil economy continued to recover midway through the second quarter, as domestic demand improved on the back of rising confidence surrounding the COVID-19 pandemic, a survey showed on Thursday.
While output rose at a solid pace, employment numbers continued to slow down and input purchases increased only slightly.
The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, edged down to 52.3 in May from 52.7 in April, highlighting a moderate improvement in business conditions.
Improving domestic sales helped new orders, whereas international orders were stymied by COVID-19 restrictions in some destinations for UAE exports, the IHS Markit report said.
"UAE's non-oil private sector showed further signs of improvement in May, although growth slipped marginally from April's recent high. New orders were largely supported by domestic sales, as latest data signalled a slight decrease in export orders," said David Owen, economist at IHS Markit.
Surveyed firms highlighted that competition in the market and uncertainty linked to the pandemic led to reduced new orders, prompting companies to lower their selling prices.
Several businesses kept employment numbers unchanged in May, while some firms cut their staff levels due to cash flow issues. As a result, employment fell for the fourth month in a row, the report noted.
"Employment numbers continued to disappoint in May, falling for the fourth month in a row. With backlogs starting to rise and demand strengthening, it is hoped that businesses will start to raise their staffing levels soon to support overall growth," Owen said.
Business expectations for the upcoming 12 months climbed again in May, the survey said. Only around 14 percent of surveyed firms expected output to rise in the next 12 months and it was attributed to a recovery from the pandemic, with the Expo 2020 also cited. The multi-month Expo 2020, which starts in October, is expected to attract visitors to the Emirates.
According to the IMF, the UAE economy contracted 5.9 percent last year. But it has had one of the world's fastest COVID-19 vaccination programmes.
Moody's revises #Dubai Aerospace Enterprise outlook to stable from negative | ZAWYA MENA Edition
Moody's revises Dubai Aerospace Enterprise outlook to stable from negative | ZAWYA MENA Edition
Dubai Aerospace Enterprise (DAE) has had its outlook revised from negative to stable by Moody’s amid growing air travel demand.
The outlook was revised on the basis that an increased air travel will improve its profitability and cash flow metrics over the next 12-18 months, Moody’s said.
“The stable outlook also reflects Moody’s expectation that DAE will maintain strong access to alternate liquidity and low leverage,” the agency said.
“DAE’s diverse funding sources and strong liquidity coverage are underscored by its unique access to capital in the United Arab Emirates (Government of United Arab Emirates, Aa2 stable), as well as by its long-term, stable ownership by the Investment Corporation of Dubai.”
Moody’s revised its outlook for the aircraft leasing sector to stable from negative on 20 May 2021, reflecting its expectations that rising air travel volumes will strengthen airline credit quality and improve demand for leased aircraft, strengthening prospects for stronger profitability by 2023.
Dubai Aerospace Enterprise (DAE) has had its outlook revised from negative to stable by Moody’s amid growing air travel demand.
The outlook was revised on the basis that an increased air travel will improve its profitability and cash flow metrics over the next 12-18 months, Moody’s said.
“The stable outlook also reflects Moody’s expectation that DAE will maintain strong access to alternate liquidity and low leverage,” the agency said.
“DAE’s diverse funding sources and strong liquidity coverage are underscored by its unique access to capital in the United Arab Emirates (Government of United Arab Emirates, Aa2 stable), as well as by its long-term, stable ownership by the Investment Corporation of Dubai.”
Moody’s revised its outlook for the aircraft leasing sector to stable from negative on 20 May 2021, reflecting its expectations that rising air travel volumes will strengthen airline credit quality and improve demand for leased aircraft, strengthening prospects for stronger profitability by 2023.
#Qatar's Commercial Bank to up stake in National Bank of #Oman to 50.1% | Reuters
Qatar's Commercial Bank to up stake in National Bank of Oman to 50.1% | Reuters
Qatar's Commercial Bank (COMB.QA) said on Thursday it has made an offer to buy an additional stake of 15.2% stake in National Bank of Oman (NBOB.OM) for 49.4 million rials ($128 million).
The deal will boost Commercial Bank's stake in the Omani lender to over 50%, keeping it as the biggest shareholder ahead of the government of Oman's 26.18% stake, according to Refinitiv data.
The news send shares of National Bank of Oman up 9.5% in early trade.
Banks generally try to keep a majority stake in a rival lender because a minority stake is seen as punitive for capital under Basel III, the global framework for capital adequacy.
Qatar's Commercial Bank (COMB.QA) said on Thursday it has made an offer to buy an additional stake of 15.2% stake in National Bank of Oman (NBOB.OM) for 49.4 million rials ($128 million).
The deal will boost Commercial Bank's stake in the Omani lender to over 50%, keeping it as the biggest shareholder ahead of the government of Oman's 26.18% stake, according to Refinitiv data.
The news send shares of National Bank of Oman up 9.5% in early trade.
Banks generally try to keep a majority stake in a rival lender because a minority stake is seen as punitive for capital under Basel III, the global framework for capital adequacy.
MIDEAST STOCKS Most major Gulf markets slip in early trade, set for weekly gains | Reuters
MIDEAST STOCKS Most major Gulf markets slip in early trade, set for weekly gains | Reuters
Most Gulf stock markets fell in early trade on Thursday, with Dubai leading losses, though the markets were on track for their weekly gains.
The Dubai index (.DFMGI) fell 0.5%, but the benchmark was on track for a fifth weekly gain. Emirates NBD Bank (ENBD.DU) dropped 1.4% and Emaar Properties (EMAR.DU) lost 0.5%.
Emaar, which along with its subsidiaries has an outstanding debt of $817.25 million, has hired banks for issuance of U.S. dollar-denominated Islamic bonds, sources said. read more
The Abu Dhabi index (.ADI) was down 0.2%. First Abu Dhabi Bank (FAB.AD) fell 0.6% and Emirates Telecommunications Group (ETISALAT.AD) lost 0.2%.
The index is heading for a fifth weekly rise.
Business activity in the United Arab Emirates' non-oil private sector expanded for a sixth consecutive month in May, as the seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, edged down to 52.3 from 52.7 in April. read more
Saudi Arabia's index (.TASI) was flat as the gains led by real estate sector were outweighed by the financial shares. Riyad Bank (1010.SE) decreased 0.7%, while Jabal Omar Development (4250.SE) rose 0.6%.
The Saudi index is on track for a fourth consecutive weekly gain.
Saudi Arabia's non-oil private sector expanded for the ninth consecutive month in May, as its PMI rose to 56.4 from 55.2 in April. read more
Qatar's index (.QSI) was down 0.1%, with financial and industrial stocks dragging the index most. The index was up 0.2% for the week.
Industries Qatar (IQCD.QA) shed 0.4% and Commercial Bank (COMB.QA) eased 0.5%.
Commercial Bank offered to buy an additional 15.2% stake in National Bank of Oman (NBOB.OM) for 49.4 million rials.
Most Gulf stock markets fell in early trade on Thursday, with Dubai leading losses, though the markets were on track for their weekly gains.
The Dubai index (.DFMGI) fell 0.5%, but the benchmark was on track for a fifth weekly gain. Emirates NBD Bank (ENBD.DU) dropped 1.4% and Emaar Properties (EMAR.DU) lost 0.5%.
Emaar, which along with its subsidiaries has an outstanding debt of $817.25 million, has hired banks for issuance of U.S. dollar-denominated Islamic bonds, sources said. read more
The Abu Dhabi index (.ADI) was down 0.2%. First Abu Dhabi Bank (FAB.AD) fell 0.6% and Emirates Telecommunications Group (ETISALAT.AD) lost 0.2%.
The index is heading for a fifth weekly rise.
Business activity in the United Arab Emirates' non-oil private sector expanded for a sixth consecutive month in May, as the seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, edged down to 52.3 from 52.7 in April. read more
Saudi Arabia's index (.TASI) was flat as the gains led by real estate sector were outweighed by the financial shares. Riyad Bank (1010.SE) decreased 0.7%, while Jabal Omar Development (4250.SE) rose 0.6%.
The Saudi index is on track for a fourth consecutive weekly gain.
Saudi Arabia's non-oil private sector expanded for the ninth consecutive month in May, as its PMI rose to 56.4 from 55.2 in April. read more
Qatar's index (.QSI) was down 0.1%, with financial and industrial stocks dragging the index most. The index was up 0.2% for the week.
Industries Qatar (IQCD.QA) shed 0.4% and Commercial Bank (COMB.QA) eased 0.5%.
Commercial Bank offered to buy an additional 15.2% stake in National Bank of Oman (NBOB.OM) for 49.4 million rials.
#Saudi Business Activity Expands at Fastest Pace Since 2017 - Bloomberg
Saudi Business Activity Expands at Fastest Pace Since 2017 - Bloomberg
Business conditions in Saudi Arabia improved at the quickest pace in more than three years in May, helped by further easing in virus-related restrictions.
The kingdom’s Purchasing Managers’ Index survey compiled by IHS Markit rose to the highest since January, supported by an increase in new business along with an uptick in export orders. The pace of expansion was the fastest since December 2017.
Employment in the Arab world’s largest economy also gained slightly last month as some private sector firms expanded their capacity. “Firms often cited growth in new business and a notable pick up in export sales,” said David Owen, economist at IHS Markit.
“Most firms continued to operate with unchanged workforce numbers, suggesting a focus on boosting productivity back to pre-Covid levels,” he said. “On the plus side, inventories were increased at the quickest pace in a year-and-a-half as firms prepare for a further recovery in demand over the coming months.”
In neighboring United Arab Emirates, the non-oil private sector economy improved at a slower pace compared with the previous month. Local demand was better and while job figures continued to fall, output levels rose.
There was further deterioration in activity in Egypt’s non-oil private sector, extending a downturn in place since the end of 2020. The rate of contraction was the softest in three months, though, as weak demand was partly offset by improving conditions in some areas of the economy.
More from IHS:
Business conditions in Saudi Arabia improved at the quickest pace in more than three years in May, helped by further easing in virus-related restrictions.
The kingdom’s Purchasing Managers’ Index survey compiled by IHS Markit rose to the highest since January, supported by an increase in new business along with an uptick in export orders. The pace of expansion was the fastest since December 2017.
Employment in the Arab world’s largest economy also gained slightly last month as some private sector firms expanded their capacity. “Firms often cited growth in new business and a notable pick up in export sales,” said David Owen, economist at IHS Markit.
“Most firms continued to operate with unchanged workforce numbers, suggesting a focus on boosting productivity back to pre-Covid levels,” he said. “On the plus side, inventories were increased at the quickest pace in a year-and-a-half as firms prepare for a further recovery in demand over the coming months.”
In neighboring United Arab Emirates, the non-oil private sector economy improved at a slower pace compared with the previous month. Local demand was better and while job figures continued to fall, output levels rose.
There was further deterioration in activity in Egypt’s non-oil private sector, extending a downturn in place since the end of 2020. The rate of contraction was the softest in three months, though, as weak demand was partly offset by improving conditions in some areas of the economy.
- Saudi Arabia’s PMI rose to 56.4 in May from 55.2 in April
- Firms built their inventories at the fastest rate in 18 months
- Better market conditions helped increase customer orders. New orders rose at the fastest rate in four months
- Export orders rose at the quickest pace since 2015 as global demand strengthened
- Business expectations improved to the highest in three months, amid hopes of further recovery over the next year
- Job creation increased for a second month, but at a softer rate from the previous month
- UAE PMI fell to 52.3 last month versus 52.7 in April
- New orders were mainly helped by better domestic sales, though international orders were held back by pandemic restrictions in some places
- Competitive pressure along with virus-linked uncertainty led to fewer orders, leading firms to reduce prices
- Employment fell for the fourth month as some firms cut their staff because of cash flow issues, though most kept headcount unchanged
- There was a slight slump in supplier performance which continued the trend seen since the start of the year
- Business outlook for the coming year rose for a sixth month and to the highest since July amid hopes of a recovery from the pandemic and ahead of Expo 2020
- Egypt PMI rose to 48.6 last month from 47.7 in April
- While output remains weak, there’s optimism for year ahead; the outlook for business activity is at strongest since February 2018
- Rate of job losses has eased from the start of the second quarter
Oil Climbs From 2018 High as Report Signals Falling Stockpiles - Bloomberg
Oil Climbs From 2018 High as Report Signals Falling Stockpiles - Bloomberg
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Futures in New York rose above $69 a barrel after adding almost 4% over the past two sessions, while Brent neared $72. The American Petroleum Institute reported stockpiles fell by 5.36 million barrels last week, said people familiar. That would be the biggest draw in a month if confirmed by official data. Oil is in “strong demand right now,” with economies around the world opening up, Daniel Yergin, the oil historian and vice chairman at IHS Markit Ltd., told Bloomberg Television, predicting prices could rise as high as $80 a barrel.  |