Thursday, 10 June 2021
BofA’s Yazhari: #Saudi British Bank Has Strong Growth Trajectory - Bloomberg video
BofA’s Yazhari: Saudi British Bank Has Strong Growth Trajectory - Bloomberg
Hootan Yazhari, head of MENA & global frontier markets equity research at Bank of America Securities discusses his investment outlook for Saudi and Qatari banking shares. He speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Saudi Aramco Is Said to Hire Morgan Stanley for Gas Pipeline Deal - Bloomberg
Aramco Is Said to Hire Morgan Stanley for Gas Pipeline Deal - Bloomberg
Saudi Aramco has hired Morgan Stanley as the lead adviser to review a potential multibillion-dollar stake sale in its natural gas pipeline network, people familiar with the matter said.
The state-owned energy producer is making early preparations for the sale, according to the people, who asked not to to be identified because the information is private. The company hasn’t yet started a formal process and could add more banks to work on the deal, they said.
The deal may be structured similarly to Aramco’s $12.4 billion oil pipeline deal, the people said. In that transaction, investors will own a minority stake in a new subsidiary that has leasing rights over the network, while Aramco will retain ownership of the oil pipelines and will continue to hold a majority stake in the subsidiary.
The percentage of the stake up for sale is under discussion, the people said. Deliberations are at an early stage and there’s no certainty the company will proceed with a transaction. Aramco and Morgan Stanley declined to comment.
Bloomberg reported in April that Aramco was considering selling part of its gas pipeline network in a deal that could raise billions of dollars depending on how the transaction is structured. The same month, Aramco said a consortium led by EIG Global Energy Partners LLC would invest in its oil pipelines.
Aramco is offloading stakes in non-core assets to help maintain its $75 billion dividend, most of which goes to the Saudi government. The company is also planning to spend about $35 billion on capital expenditure this year.
Aramco’s Master Gas System is a network of pipelines connecting its production with processing sites throughout the kingdom. The infrastructure has a capacity of about 9.6 billion cubic feet per day, according to Aramco’s annual report.
Saudi Aramco has hired Morgan Stanley as the lead adviser to review a potential multibillion-dollar stake sale in its natural gas pipeline network, people familiar with the matter said.
The state-owned energy producer is making early preparations for the sale, according to the people, who asked not to to be identified because the information is private. The company hasn’t yet started a formal process and could add more banks to work on the deal, they said.
The deal may be structured similarly to Aramco’s $12.4 billion oil pipeline deal, the people said. In that transaction, investors will own a minority stake in a new subsidiary that has leasing rights over the network, while Aramco will retain ownership of the oil pipelines and will continue to hold a majority stake in the subsidiary.
The percentage of the stake up for sale is under discussion, the people said. Deliberations are at an early stage and there’s no certainty the company will proceed with a transaction. Aramco and Morgan Stanley declined to comment.
Bloomberg reported in April that Aramco was considering selling part of its gas pipeline network in a deal that could raise billions of dollars depending on how the transaction is structured. The same month, Aramco said a consortium led by EIG Global Energy Partners LLC would invest in its oil pipelines.
Aramco is offloading stakes in non-core assets to help maintain its $75 billion dividend, most of which goes to the Saudi government. The company is also planning to spend about $35 billion on capital expenditure this year.
Aramco’s Master Gas System is a network of pipelines connecting its production with processing sites throughout the kingdom. The infrastructure has a capacity of about 9.6 billion cubic feet per day, according to Aramco’s annual report.
Oil hits two-year highs on rising demand expectations | Reuters
Oil hits two-year highs on rising demand expectations | Reuters
Oil prices edged up to their highest in over two years in volatile trade on Thursday, on optimism for strong economic demand after new U.S. unemployment claims fell to their lowest since the country’s first wave of COVID-19 last year.
The market shook off a brief plunge after media reports suggested the United States lifted sanctions on Iranian oil officials.
The U.S. Treasury later said it had removed sanctions on three former Iranian officials and on two companies previously involved in trading Iranian petrochemical products. A U.S. official told Reuters that the activity was “routine” and not related to talks with Iran over reviving the 2015 deal to restrict its nuclear weapons development.
Brent futures rose 30 cents, or 0.4%, to settle at $72.52 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 33 cents, or 0.5%, to end at $70.29.
Those were the highest closes for Brent since May 2019 and WTI since October 2018.
Oil prices edged up to their highest in over two years in volatile trade on Thursday, on optimism for strong economic demand after new U.S. unemployment claims fell to their lowest since the country’s first wave of COVID-19 last year.
The market shook off a brief plunge after media reports suggested the United States lifted sanctions on Iranian oil officials.
The U.S. Treasury later said it had removed sanctions on three former Iranian officials and on two companies previously involved in trading Iranian petrochemical products. A U.S. official told Reuters that the activity was “routine” and not related to talks with Iran over reviving the 2015 deal to restrict its nuclear weapons development.
Brent futures rose 30 cents, or 0.4%, to settle at $72.52 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 33 cents, or 0.5%, to end at $70.29.
Those were the highest closes for Brent since May 2019 and WTI since October 2018.
#Israel's monday.com valued at nearly $7.6 bln in Nasdaq debut | Reuters
Israel's monday.com valued at nearly $7.6 bln in Nasdaq debut | Reuters
Shares of monday.com Ltd (MNDY.O) jumped nearly 12% in their Nasdaq debut on Thursday, giving the Israeli work management company a market capitalization of about $7.6 billion.
The company's shares opened at $173.15, compared with their initial public offering (IPO) price of $155 per share.
Tel Aviv-based monday.com sold 3.7 million shares in its IPO, raising about $574 million.
Launched in 2014, the company operates a cloud-based platform known as Work OS that allows organizations to build software, applications and work management tools based on their needs.
"There is a big shift in the last ten years in Israel. We're breaking another glass ceiling I think... in terms of the maturity of the ecosystem," co-Chief Executive Officer Roy Mann told Reuters in an interview.
monday.com is present in more than 190 countries and has over 125,000 customers, including companies such as Adobe Inc (ADBE.O), Peloton Interactive Inc (PTON.O), Discovery Inc (DISCA.O) and Universal Music Group.
"monday.com's strong IPO pricing illustrates appetite for online workplace management software tools remains robust as a consequence of pandemic-induced growth," said Nalin Patel, EMEA Private Capital Analyst at PitchBook.
The company sees a massive opportunity in using its internal and external resources to go after the market and does not see any reason to pursue any acquisitions post going public.
"Our plan is to grow organically for a long time," Mann said.
monday.com's revenue surged 85% to $59 million in the three months ended March 31, from a year earlier, the company's filing showed. Net loss, however, widened to $39 million from $19.9 million.
Goldman Sachs, J.P. Morgan, Allen & Co and Jefferies were among the underwriters of the offering.
Shares of monday.com Ltd (MNDY.O) jumped nearly 12% in their Nasdaq debut on Thursday, giving the Israeli work management company a market capitalization of about $7.6 billion.
The company's shares opened at $173.15, compared with their initial public offering (IPO) price of $155 per share.
Tel Aviv-based monday.com sold 3.7 million shares in its IPO, raising about $574 million.
Launched in 2014, the company operates a cloud-based platform known as Work OS that allows organizations to build software, applications and work management tools based on their needs.
"There is a big shift in the last ten years in Israel. We're breaking another glass ceiling I think... in terms of the maturity of the ecosystem," co-Chief Executive Officer Roy Mann told Reuters in an interview.
monday.com is present in more than 190 countries and has over 125,000 customers, including companies such as Adobe Inc (ADBE.O), Peloton Interactive Inc (PTON.O), Discovery Inc (DISCA.O) and Universal Music Group.
"monday.com's strong IPO pricing illustrates appetite for online workplace management software tools remains robust as a consequence of pandemic-induced growth," said Nalin Patel, EMEA Private Capital Analyst at PitchBook.
The company sees a massive opportunity in using its internal and external resources to go after the market and does not see any reason to pursue any acquisitions post going public.
"Our plan is to grow organically for a long time," Mann said.
monday.com's revenue surged 85% to $59 million in the three months ended March 31, from a year earlier, the company's filing showed. Net loss, however, widened to $39 million from $19.9 million.
Goldman Sachs, J.P. Morgan, Allen & Co and Jefferies were among the underwriters of the offering.
Despite uncertainties, OPEC sticks to forecast of oil demand surge in second half | Reuters
Despite uncertainties, OPEC sticks to forecast of oil demand surge in second half | Reuters
OPEC stuck to its prediction of a strong world oil demand recovery in 2021 led by the United States and China despite uncertainties stemming from the pandemic, pointing to a need for more oil from the producer group.
In a monthly report on Thursday, the Organization of the Petroleum Exporting Countries said demand would rise by 6.6% or 5.95 million barrels per day (bpd) this year. The forecast was unchanged for a second consecutive month.
The report's forecast comes despite a slower-than-expected recovery in the first half of this year and as it warns of "significant uncertainties" such as the potential emergence of new variants of the coronavirus.
"Global economic recovery has been delayed due to the resurgence of COVID-19 infections and renewed lockdowns in key economies, including the Eurozone, Japan and India," OPEC said in its monthly report.
OPEC stuck to its prediction of a strong world oil demand recovery in 2021 led by the United States and China despite uncertainties stemming from the pandemic, pointing to a need for more oil from the producer group.
In a monthly report on Thursday, the Organization of the Petroleum Exporting Countries said demand would rise by 6.6% or 5.95 million barrels per day (bpd) this year. The forecast was unchanged for a second consecutive month.
The report's forecast comes despite a slower-than-expected recovery in the first half of this year and as it warns of "significant uncertainties" such as the potential emergence of new variants of the coronavirus.
"Global economic recovery has been delayed due to the resurgence of COVID-19 infections and renewed lockdowns in key economies, including the Eurozone, Japan and India," OPEC said in its monthly report.
MIDEAST STOCKS Most Gulf markets rise as oil rebounds; Egypt bucks trend | Reuters
MIDEAST STOCKS Most Gulf markets rise as oil rebounds; Egypt bucks trend | Reuters
Major stock markets in the Gulf ended higher on Thursday, supported by a rebound in oil prices, but the Egyptian index bucked the trend to close lower.
Brent crude oil futures LCOc1 were up 18 cents, or 0.25%, at $72.40 a barrel by 1024 GMT, holding just shy of a high not seen since May 2019.
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, extending gains for the fourth consecutive session, with Al Rajhi Bank (1120.SE) rising 0.6% and Riyad Bank (1010.SE) ending 1% higher.
Separately, Saudi Arabia's sovereign wealth fund, the Public Investment Fund, said on Tuesday it has established two deputy governor roles to support the $430 billion fund's continued growth and expansion. read more
The fund is expected to inject at least $40 billion annually into the local economy until 2025, and increase its assets to $1 trillion by then.
In Dubai, the index (.DFMGI) gained 0.4%, driven by a 1.1% rise in its top lender Emirates NBD Bank (ENBD.DU) and a 0.4% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Abu Dhabi's main share index (.ADI) added 0.1%, extending gains to a fifth day in a row, helped by a 0.4% hike in aquaculture firm International Holding (IHC.AD) and a 0.1% gain in lender First Abu Dhabi Bank (FAB) (FAB.AD).
Elsewhere, Abu Dhabi state investor Mubadala said on Tuesday it has joined a consortium led by U.S.-based EIG Global Energy Partners that had agreed to buy a 49% equity stake in Aramco Oil Pipelines Co. read more
Boosted by financials shares, Qatar's index (.QSI) also rose 0.3%, with Gulf's largest lender Qatar National Bank (QNB)(QNBK.QA) climbing 1.7% and petrochemical maker Industries Qatar (IQCD.QA) advancing 0.8%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended 0.6% lower as the country's largest lender, Commercial International Bank (COMI.CA) slid 1.7%, and tobacco monopoly Eastern Company (EAST.CA) fell 0.8%.
Major stock markets in the Gulf ended higher on Thursday, supported by a rebound in oil prices, but the Egyptian index bucked the trend to close lower.
Brent crude oil futures LCOc1 were up 18 cents, or 0.25%, at $72.40 a barrel by 1024 GMT, holding just shy of a high not seen since May 2019.
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, extending gains for the fourth consecutive session, with Al Rajhi Bank (1120.SE) rising 0.6% and Riyad Bank (1010.SE) ending 1% higher.
Separately, Saudi Arabia's sovereign wealth fund, the Public Investment Fund, said on Tuesday it has established two deputy governor roles to support the $430 billion fund's continued growth and expansion. read more
The fund is expected to inject at least $40 billion annually into the local economy until 2025, and increase its assets to $1 trillion by then.
In Dubai, the index (.DFMGI) gained 0.4%, driven by a 1.1% rise in its top lender Emirates NBD Bank (ENBD.DU) and a 0.4% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Abu Dhabi's main share index (.ADI) added 0.1%, extending gains to a fifth day in a row, helped by a 0.4% hike in aquaculture firm International Holding (IHC.AD) and a 0.1% gain in lender First Abu Dhabi Bank (FAB) (FAB.AD).
Elsewhere, Abu Dhabi state investor Mubadala said on Tuesday it has joined a consortium led by U.S.-based EIG Global Energy Partners that had agreed to buy a 49% equity stake in Aramco Oil Pipelines Co. read more
Boosted by financials shares, Qatar's index (.QSI) also rose 0.3%, with Gulf's largest lender Qatar National Bank (QNB)(QNBK.QA) climbing 1.7% and petrochemical maker Industries Qatar (IQCD.QA) advancing 0.8%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended 0.6% lower as the country's largest lender, Commercial International Bank (COMI.CA) slid 1.7%, and tobacco monopoly Eastern Company (EAST.CA) fell 0.8%.
#Dubai developer Damac's shareholders to know of opening and closing dates of buy offer in 21 days | Property – Gulf News
Dubai developer Damac's shareholders to know of opening and closing dates of buy offer in 21 days | Property – Gulf News
In another 21 days, the Hussain Sajwani owned Maple Invest will inform Damac’s Board of Directors and shareholders the opening and closing date for its open-ended offer to acquire the 27.285 per cent not held by it.
Maple made the formal approach to Damac on June 9, a day after signaling its intention to acquire the balance stake. If all goes as per plan, Hussain Sajwani will own 100 per cent in the Dubai real estate developer he set up and then took to an IPO in 2013.
What’s on the table?
Sajwani and Maple, the investment company that he owns in full, plan to acquire the 1.07 billion Damac shares that are held by others. The offer price is set at Dh1.3 a share. (On Thursday (June 10), Damac’s stock was back at the Dh1.3 level after dropping 2 fils on Wednesday.)
And Maple makes it amply clear that the offer is final – The “offer price of Dh1.3 set out in the intention and this offer document is final and is not subject to further amendment, whether upwards or downwards…”.
Not enough?
The Damac stock had touched a 52-week high of Dh1.75, while its low for a similar period was Dh0.67. There are some shareholders who believe the offer price should have been at Dh1.5 or slightly higher given that the company’s core fundamentals remain sound even in difficult market circumstances. Plus, these minority shareholders reckon that Damac would be one of the biggest beneficiaries from the ongoing upturn in property buying in Dubai, especially as several of its projects are complete or nearly there.
Once Maple and Sajwani are confirmed of acquiring 17.785 per cent of the Damac held by others, it would take them to the 90 per cent threshold. Buy one more share and that immediately sets in motion the ‘squeeze out’ of all those stock owners who are not in the mood to sell.
Then, it's game, set and match for Hussain Sajwani...
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Damac's mintority shareholders will have 21 days and then some to make up their mind on the Dh2.2b offer to buy them out. Image Credit: Bloomberg |
In another 21 days, the Hussain Sajwani owned Maple Invest will inform Damac’s Board of Directors and shareholders the opening and closing date for its open-ended offer to acquire the 27.285 per cent not held by it.
Maple made the formal approach to Damac on June 9, a day after signaling its intention to acquire the balance stake. If all goes as per plan, Hussain Sajwani will own 100 per cent in the Dubai real estate developer he set up and then took to an IPO in 2013.
WHY SET AT DH1.3 A SHARE?
According to Damac, the offer is based on the average price of Damac shares during the 3-month period preceding the date of the offer document, which is Dh1.2335.
What’s on the table?
Sajwani and Maple, the investment company that he owns in full, plan to acquire the 1.07 billion Damac shares that are held by others. The offer price is set at Dh1.3 a share. (On Thursday (June 10), Damac’s stock was back at the Dh1.3 level after dropping 2 fils on Wednesday.)
And Maple makes it amply clear that the offer is final – The “offer price of Dh1.3 set out in the intention and this offer document is final and is not subject to further amendment, whether upwards or downwards…”.
Not enough?
The Damac stock had touched a 52-week high of Dh1.75, while its low for a similar period was Dh0.67. There are some shareholders who believe the offer price should have been at Dh1.5 or slightly higher given that the company’s core fundamentals remain sound even in difficult market circumstances. Plus, these minority shareholders reckon that Damac would be one of the biggest beneficiaries from the ongoing upturn in property buying in Dubai, especially as several of its projects are complete or nearly there.
Once Maple and Sajwani are confirmed of acquiring 17.785 per cent of the Damac held by others, it would take them to the 90 per cent threshold. Buy one more share and that immediately sets in motion the ‘squeeze out’ of all those stock owners who are not in the mood to sell.
Then, it's game, set and match for Hussain Sajwani...
WHAT HAPPENS IF SOMEONE DOESN’T WANT TO SELL?If Maple gets to 90 per cent plus one share, all remaining Damac shares not yet owned by it or Sajwani will be re-registered in the name of the offeror in Damac’s share register.“Whether or not you have completed an acceptance and transfer form prior to the expiry of the ‘mandatory acquisition notice period’, your Damac shares will be re-registered in the name of the offeror on that date…”
Investcorp weighs taking #SaudiArabia's Al Borg public -sources | Reuters
Investcorp weighs taking Saudi Arabia's Al Borg public -sources | Reuters
Middle Eastern fund Investcorp is considering a public share sale of Saudi Arabia's Al Borg Medical Laboratories, two sources familiar with the matter said.
Bahrain-headquartered Investcorp invited banks to pitch for a planned listing of Al Borg, one of the largest private medical laboratory chains in the Gulf, said the sources, declining to be identified as the matter is not public.
Investcorp could raise around $200 million from the initial public offering of the lab firm, which has done well in the wake of the coronavirus pandemic, one of the sources said.
Investcorp declined to comment when contacted by Reuters on Thursday. Al Borg did not immediately respond to a request for comment.
Investcorp bought its stake in Al Borg in 2016 and the companies said at the time the investment would help it expand in the kingdom and elsewhere in the region.
Al Borg has more than 60 laboratories across eight countries in the Gulf and Africa, according to its website, offering medical laboratory testing services to hospitals, clinics, companies and individuals.
Middle Eastern fund Investcorp is considering a public share sale of Saudi Arabia's Al Borg Medical Laboratories, two sources familiar with the matter said.
Bahrain-headquartered Investcorp invited banks to pitch for a planned listing of Al Borg, one of the largest private medical laboratory chains in the Gulf, said the sources, declining to be identified as the matter is not public.
Investcorp could raise around $200 million from the initial public offering of the lab firm, which has done well in the wake of the coronavirus pandemic, one of the sources said.
Investcorp declined to comment when contacted by Reuters on Thursday. Al Borg did not immediately respond to a request for comment.
Investcorp bought its stake in Al Borg in 2016 and the companies said at the time the investment would help it expand in the kingdom and elsewhere in the region.
Al Borg has more than 60 laboratories across eight countries in the Gulf and Africa, according to its website, offering medical laboratory testing services to hospitals, clinics, companies and individuals.
MIDEAST DEBT #Oman scores bumper bond sale as investors shelve debt worries | Reuters
MIDEAST DEBT Oman scores bumper bond sale as investors shelve debt worries | Reuters
Oman saw bumper demand in its first dollar-denominated sukuk sale since 2018 on Tuesday, as the rise in oil prices over the last year and a fiscal consolidation plan allayed investors' concerns about a break-neck rise in debt levels.
The small Gulf state's $1.75 billion nine-year sukuk drew over $11.5 billion in demand. read more
The sukuk were up about one cent on the dollar on Wednesday in the so-called grey market, market sources said. An S&P Global model called the Market Derived Signal Score shows that for the first time in more than two years, credit default swaps were not pricing a credit rating downgrade for Oman.
"They have set fairly cautious oil price assumptions, at $45 a barrel for this year, and $50 thereafter. But they have a plan to balance the budget at $50 by 2025," said Timothy Ash at BlueBay Asset Management, adding he now sees Oman as an improving credit story.
He said he expected its budget to outperform given higher oil prices, with Brent crude at over $72 on Wednesday.
"Recent demonstrations have underlined that reforms are not easy, but we see real commitment to reform, but also to improve transparency, which is really encouraging from an investor perspective," Ash said.
Last month Oman saw hundreds of Omani men protest demanding jobs, handing its new ruler Sheikh Sultan his biggest challenge since taking the throne last year following the death of Sultan Qaboos - in power for five decades.
Morgan Stanley said on Wednesday it prefers Oman, among the best performers on the Emerging Markets Bond Index, over Bahrain - the only other "junk" rated Gulf country.
Oman, a relatively small oil producer, is more sensitive than its hydrocarbon-rich Gulf neighbours to oil price swings, meaning it was hit especially hard by 2020's historic price crash and the COVID-19 pandemic. Its debt as share of annual economic output, or GDP, soared to nearly 80% last year having been little more than 5% in 2015.
"While we have tempered our optimism with the rally, we maintain a positive bias and think that it's too early to cut exposure as fiscal consolidation should remain on track," Morgan Stanley said in a research note.
Oman faced what bankers called lacklustre demand when it tapped the debt markets last year, but the consolidation plan and oil price recovery helped Oman become the first Gulf sovereign to issue bonds in January, raising $3.25 billion with conventional bonds sold out of a $15 billion orderbook.
"With the latest issue Oman has refinanced bonds expiring in 2021 and the current public deficit... allowing the government to concentrate on the budget deficit consolidation," said Raffaele Bertoni, head of debt capital markets at Gulf Investment Corporation.
Nick Eisinger, principal, fixed income emerging markets at Vanguard said the sukuk, an instrument for which demand has long outstripped supply, were tighter versus Oman's conventional bonds but were "still decent value".
"Oman has plenty of near term liquidity. Reform was solid at the start of the year. It has faded a little since but high oil price helps," he said.
"The medium-term outlook is still questionable but near-term is fine."
Oman saw bumper demand in its first dollar-denominated sukuk sale since 2018 on Tuesday, as the rise in oil prices over the last year and a fiscal consolidation plan allayed investors' concerns about a break-neck rise in debt levels.
The small Gulf state's $1.75 billion nine-year sukuk drew over $11.5 billion in demand. read more
The sukuk were up about one cent on the dollar on Wednesday in the so-called grey market, market sources said. An S&P Global model called the Market Derived Signal Score shows that for the first time in more than two years, credit default swaps were not pricing a credit rating downgrade for Oman.
"They have set fairly cautious oil price assumptions, at $45 a barrel for this year, and $50 thereafter. But they have a plan to balance the budget at $50 by 2025," said Timothy Ash at BlueBay Asset Management, adding he now sees Oman as an improving credit story.
He said he expected its budget to outperform given higher oil prices, with Brent crude at over $72 on Wednesday.
"Recent demonstrations have underlined that reforms are not easy, but we see real commitment to reform, but also to improve transparency, which is really encouraging from an investor perspective," Ash said.
Last month Oman saw hundreds of Omani men protest demanding jobs, handing its new ruler Sheikh Sultan his biggest challenge since taking the throne last year following the death of Sultan Qaboos - in power for five decades.
Morgan Stanley said on Wednesday it prefers Oman, among the best performers on the Emerging Markets Bond Index, over Bahrain - the only other "junk" rated Gulf country.
Oman, a relatively small oil producer, is more sensitive than its hydrocarbon-rich Gulf neighbours to oil price swings, meaning it was hit especially hard by 2020's historic price crash and the COVID-19 pandemic. Its debt as share of annual economic output, or GDP, soared to nearly 80% last year having been little more than 5% in 2015.
"While we have tempered our optimism with the rally, we maintain a positive bias and think that it's too early to cut exposure as fiscal consolidation should remain on track," Morgan Stanley said in a research note.
Oman faced what bankers called lacklustre demand when it tapped the debt markets last year, but the consolidation plan and oil price recovery helped Oman become the first Gulf sovereign to issue bonds in January, raising $3.25 billion with conventional bonds sold out of a $15 billion orderbook.
"With the latest issue Oman has refinanced bonds expiring in 2021 and the current public deficit... allowing the government to concentrate on the budget deficit consolidation," said Raffaele Bertoni, head of debt capital markets at Gulf Investment Corporation.
Nick Eisinger, principal, fixed income emerging markets at Vanguard said the sukuk, an instrument for which demand has long outstripped supply, were tighter versus Oman's conventional bonds but were "still decent value".
"Oman has plenty of near term liquidity. Reform was solid at the start of the year. It has faded a little since but high oil price helps," he said.
"The medium-term outlook is still questionable but near-term is fine."
#SaudiArabia was almost one third of Arab economy in 2020 | ZAWYA MENA Edition
Saudi Arabia was almost one third of Arab economy in 2020 | ZAWYA MENA Edition
Saudi Arabia made up 29.3 percent of the $2.39 trillion Arab economy in 2020. The Kingdom’s $700.1 billion in nominal GDP was almost twice the size of the region’s second-largest economy, Egypt’s $361.9 billion, Al Eqtisadiah reported, citing data from the Saudi Arabian Monetary Authority, the International Monetary Fund and Arab statistical bodies. The UAE was the third largest Arab economy with GDP of $354.3 billion.
The six countries of the Gulf Cooperation Council had combined GDP of $1.41 trillion, 58.8 percent of the Arab economy.
The Arab world represents 2.8 percent of the global economy, and would rank eighth, behind France, if it was a single country.
The six countries of the Gulf Cooperation Council had combined GDP of $1.41 trillion, 58.8 percent of the Arab economy.
The Arab world represents 2.8 percent of the global economy, and would rank eighth, behind France, if it was a single country.
Oil Holds Steady After U.S. Build as Focus Turns to Inflation - Bloomberg
Oil Holds Steady After U.S. Build as Focus Turns to Inflation - Bloomberg
Oil erased losses as traders awaited inflation data, after an increase in U.S. fuel stockpiles brought crude’s rally to a halt.
Futures in New York held steady after earlier dropping 1%. In the U.S., inflation figures due later Thursday may give clues about the path of monetary policy. Data on Wednesday showed gasoline inventories jumped, and a rolling average of demand slid for the first time in a month, adding to the bearish sentiment.
Despite the weekly demand data, the oil market remains on a steady path of recovering consumption -- though strength in the western world is partly offset by weakness in some Asian countries. Traders are also monitoring international talks to revive the Iranian nuclear deal, which are yet to find a solution. All the while, OPEC+ is gradually adding supply back to the market.
“Many seem to think the U.S. inventory report on the large oil-product inventory increase is a one-off event, considering that other indicators point to improving demand,” said Giovannni Staunovo, a commodity analyst at UBS Group AG. “So considering the positive momentum, some likely see this as a buying opportunity.”
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Oil erased losses as traders awaited inflation data, after an increase in U.S. fuel stockpiles brought crude’s rally to a halt.
Futures in New York held steady after earlier dropping 1%. In the U.S., inflation figures due later Thursday may give clues about the path of monetary policy. Data on Wednesday showed gasoline inventories jumped, and a rolling average of demand slid for the first time in a month, adding to the bearish sentiment.
Despite the weekly demand data, the oil market remains on a steady path of recovering consumption -- though strength in the western world is partly offset by weakness in some Asian countries. Traders are also monitoring international talks to revive the Iranian nuclear deal, which are yet to find a solution. All the while, OPEC+ is gradually adding supply back to the market.
“Many seem to think the U.S. inventory report on the large oil-product inventory increase is a one-off event, considering that other indicators point to improving demand,” said Giovannni Staunovo, a commodity analyst at UBS Group AG. “So considering the positive momentum, some likely see this as a buying opportunity.”
#Saudi PIF Commits Up to $160 Million to Gulf Infrastructure Fund - Bloomberg
Saudi PIF Commits Up to $160 Million to Gulf Infrastructure Fund - Bloomberg
Saudi Arabia’s sovereign wealth fund has agreed to commit up to a fifth of a planned $800 million Middle East infrastructure fund being established by Aberdeen Standard Investments and Investcorp.
The Aberdeen Standard Investcorp Infrastructure Partners fund has received the pledge from the PIF along with another $90 million commitment from the Asian Infrastructure Investment Bank, according to a statement Thursday. The rest of the funding is expected to come from investors including pension funds, insurance companies, endowments, family offices and private clients, it said.
Aberdeen and Investcorp announced the fund two years ago with a view to channel investment into the Middle East’s health care, education and utilities industries. Former U.K. Defense Secretary Michael Fallon was appointed chairman of the fund last month.
The PIF is becoming increasingly important as a source of capital for fund managers in the Middle East as it embarks on a plan to support the Saudi economy’s diversification away from a reliance on oil sales. It agreed to be anchor investor in a $300 million private credit fund managed by NBK Capital Partners in February, and has also established a $1.1 billion fund of funds to support venture capital firms investing in the kingdom.
The infrastructure fund is part of Investcorp’s plans to boost its assets under management to $50 billion. It’s also planning to begin raising a $500 million Saudi investment fund later this year, co-Chief Executive Officer Hazem Ben-Gacem told Bloomberg earlier this month.
Investcorp is also currently raising a $1 billion North American private equity fund to do bigger buyouts there, people familiar with the matter told Bloomberg in March. The private equity firm is currently in the process of delisting from the Bahrain stock exchange.
Saudi Arabia’s sovereign wealth fund has agreed to commit up to a fifth of a planned $800 million Middle East infrastructure fund being established by Aberdeen Standard Investments and Investcorp.
The Aberdeen Standard Investcorp Infrastructure Partners fund has received the pledge from the PIF along with another $90 million commitment from the Asian Infrastructure Investment Bank, according to a statement Thursday. The rest of the funding is expected to come from investors including pension funds, insurance companies, endowments, family offices and private clients, it said.
Aberdeen and Investcorp announced the fund two years ago with a view to channel investment into the Middle East’s health care, education and utilities industries. Former U.K. Defense Secretary Michael Fallon was appointed chairman of the fund last month.
The PIF is becoming increasingly important as a source of capital for fund managers in the Middle East as it embarks on a plan to support the Saudi economy’s diversification away from a reliance on oil sales. It agreed to be anchor investor in a $300 million private credit fund managed by NBK Capital Partners in February, and has also established a $1.1 billion fund of funds to support venture capital firms investing in the kingdom.
The infrastructure fund is part of Investcorp’s plans to boost its assets under management to $50 billion. It’s also planning to begin raising a $500 million Saudi investment fund later this year, co-Chief Executive Officer Hazem Ben-Gacem told Bloomberg earlier this month.
Investcorp is also currently raising a $1 billion North American private equity fund to do bigger buyouts there, people familiar with the matter told Bloomberg in March. The private equity firm is currently in the process of delisting from the Bahrain stock exchange.
Oil skids as start of U.S. summer driving season fails to lift fuel demand | Reuters
Oil skids as start of U.S. summer driving season fails to lift fuel demand | Reuters
Oil prices fell on Thursday as inventory data in the United States, the world’s top oil consumer, showed a surge in gasoline stocks that indicates weaker-than-expected fuel demand at the start of summer, the country’s peak season for motoring.
Brent crude oil futures were down 55 cents, or 0.8%, at $71.67 a barrel by 0341 GMT, while U.S. oil futures declined by 53 cents, or 0.8%, at $69.43 a barrel.
“Markets had been optimistic on demand as the U.S. enters the peak summer driving season,” analysts from ANZ Research said in a note on Thursday.
“An acceleration in (coronavirus) vaccinations and rising traffic numbers are a plus for demand for transportation fuel. However, this data highlights it won’t be a smooth road back to recovery.”
U.S. crude oil stockpiles that include the Strategic Petroleum Reserve (SPR) fell for the 11th straight week as refiners ramped up output, but fuel inventories grew sharply due to weak consumer demand, the Energy Information Administration (EIA) said on Wednesday.
Oil prices fell on Thursday as inventory data in the United States, the world’s top oil consumer, showed a surge in gasoline stocks that indicates weaker-than-expected fuel demand at the start of summer, the country’s peak season for motoring.
Brent crude oil futures were down 55 cents, or 0.8%, at $71.67 a barrel by 0341 GMT, while U.S. oil futures declined by 53 cents, or 0.8%, at $69.43 a barrel.
“Markets had been optimistic on demand as the U.S. enters the peak summer driving season,” analysts from ANZ Research said in a note on Thursday.
“An acceleration in (coronavirus) vaccinations and rising traffic numbers are a plus for demand for transportation fuel. However, this data highlights it won’t be a smooth road back to recovery.”
U.S. crude oil stockpiles that include the Strategic Petroleum Reserve (SPR) fell for the 11th straight week as refiners ramped up output, but fuel inventories grew sharply due to weak consumer demand, the Energy Information Administration (EIA) said on Wednesday.
MIDEAST STOCKS Major Gulf indexes mixed in early trade | Reuters
MIDEAST STOCKS Major Gulf indexes mixed in early trade | Reuters
Major Gulf stocks were mixed in early trade on Thursday, with the Saudi Arabia index on track to gain for a fourth consecutive session, buoyed by banking shares.
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, with Al Rajhi Bank (1120.SE) gaining 0.6% and Saudi National Bank (1180.SE) advancing 0.4%.
Separately, Saudi Arabia's sovereign wealth fund, the Public Investment Fund, said on Tuesday it has established two deputy governor roles to support the $430 billion fund's continued growth and expansion.
The fund is expected to inject at least $40 billion annually into the local economy until 2025, and increase its assets to $1 trillion by that date.
Pressured by financials and property shares, Dubai's index (.DFMGI) slid 0.2%, extending losses to a third day in a row, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) declining 0.8% and blue-chip developer Emaar Properties (EMAR.DU) shedding 0.3%.
In Abu Dhabi, the index (.ADI) fell 0.2%, snapping four consecutive sessions gains, as market heavyweight First Abu Dhabi Bank (FAB.AD) decreased 0.5% and Abu Dhabi Islamic Bank (ADIB.AD) declined 1.4%.
Elsewhere, Abu Dhabi state investor Mubadala said on Tuesday it has joined a consortium led by U.S.-based EIG Global Energy Partners that had agreed to buy a 49% equity stake in Aramco Oil Pipelines Co. read more
Qatar's index (.QSI) edged up 0.1%, helped by a 1.3 gain in petrochemical maker Industries Qatar (IQCD.QA) and a 0.6% rise in the Gulf's largest lender, Qatar National Bank (QNB) (QNBK.QA).
Major Gulf stocks were mixed in early trade on Thursday, with the Saudi Arabia index on track to gain for a fourth consecutive session, buoyed by banking shares.
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, with Al Rajhi Bank (1120.SE) gaining 0.6% and Saudi National Bank (1180.SE) advancing 0.4%.
Separately, Saudi Arabia's sovereign wealth fund, the Public Investment Fund, said on Tuesday it has established two deputy governor roles to support the $430 billion fund's continued growth and expansion.
The fund is expected to inject at least $40 billion annually into the local economy until 2025, and increase its assets to $1 trillion by that date.
Pressured by financials and property shares, Dubai's index (.DFMGI) slid 0.2%, extending losses to a third day in a row, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) declining 0.8% and blue-chip developer Emaar Properties (EMAR.DU) shedding 0.3%.
In Abu Dhabi, the index (.ADI) fell 0.2%, snapping four consecutive sessions gains, as market heavyweight First Abu Dhabi Bank (FAB.AD) decreased 0.5% and Abu Dhabi Islamic Bank (ADIB.AD) declined 1.4%.
Elsewhere, Abu Dhabi state investor Mubadala said on Tuesday it has joined a consortium led by U.S.-based EIG Global Energy Partners that had agreed to buy a 49% equity stake in Aramco Oil Pipelines Co. read more
Qatar's index (.QSI) edged up 0.1%, helped by a 1.3 gain in petrochemical maker Industries Qatar (IQCD.QA) and a 0.6% rise in the Gulf's largest lender, Qatar National Bank (QNB) (QNBK.QA).
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