Oil firm led by Tory donor investigated over alleged bribes in nine countries | Petrofac | The Guardian
A multinational oil firm which was led by a major Conservative donor has been under investigation for allegedly paying million-pound bribes to secure contracts in nine countries.
The anti-corruption agency the Serious Fraud Office (SFO) has been examining allegedly suspicious payments made by the UK-based firm Petrofac.
The firm was headed by Ayman Asfari, who with his wife has donated almost £800,000 to the Conservative party in their personal capacity.
Details of the alleged payments, going back to the early 2000s, indicate that the SFO’s investigation has been wider than previously known publicly. The inquiry, which started at least four years ago, continues.
The SFO has been examining alleged payments made by Petrofac over more than 15 years to land contracts in the Middle East, Africa and Asia, including Kuwait and Algeria.
Sunday, 20 June 2021
New Giant #Saudi Pension Fund Aims to Crack World’s Top 10 Ranks - Bloomberg
New Giant Saudi Pension Fund Aims to Crack World’s Top 10 Ranks - Bloomberg
Saudi Arabia gave a first glimpse of the ambition behind the merger of two of its pension and insurance funds with a plan to rival the world’s largest investors.
The new entity will boast assets of over $250 billion, according to the chief executive officer of Hassana Investment Co, the investment management arm of the kingdom’s General Organization of Social Insurance. GOSI, as the fund is known, will combine with the Public Pension Agency in a move that will reduce costs and help increase investment returns, Saad Al-Fadly, CEO of Hassana, said in an interview.
“The merger will strengthen the position of the fund, enhance performance, and position GOSI as one of the top 10 pension plan investors in the world,” he said, in the first public comments to put a figure on the size of the new state investor.
“Scale is a benefit that helps in relationship management, cost management and in negotiations, so it helps in many aspects which will improve returns,” he said.
Saudi Arabia has been taking steps to merge and restructure various entities as it looks to boost efficiency as part of a plan to diversify the economy away from oil. It’s also been building up its sovereign wealth fund to raise its reach and influence. The government has outlined a plan to grow its assets to over $1 trillion by 2025.
Diverse Portfolio
The GOSI and PPA merger, which was announced last week, will create a fund that not only holds large stakes in Saudi companies, but also has a global portfolio that includes shares worth $204 million in AstraZeneca Plc and $171 million in HSBC Holdings Plc.
Domestic assets include a combined $8.7 billion holding in Saudi National Bank and a $4.3 billion stake in Al Rajhi Bank, according to data compiled by Bloomberg. Their portfolios also include real estate and bonds.
The funds will conduct a review of investment strategy as part of the merger process, Al Fadly said. “Returns have been really good, and we hope that will continue,” he said, declining to give specifics.
Hassana has meanwhile joined a consortium of investors with EIG Global Energy Partners of the U.S. and China’s Silk Road Fund that are paying $12.4 billion to acquire a 49% stake in Aramco Oil Pipelines Co.
The largest public pension fund in the world is currently Japan’s Government Pension Investment Fund, with assets of $1.7 trillion, according to data provider Global SWF. The 10th largest fund -- the New York State Common Retirement Fund -- has assets of $255 billion.
Saudi Arabia gave a first glimpse of the ambition behind the merger of two of its pension and insurance funds with a plan to rival the world’s largest investors.
The new entity will boast assets of over $250 billion, according to the chief executive officer of Hassana Investment Co, the investment management arm of the kingdom’s General Organization of Social Insurance. GOSI, as the fund is known, will combine with the Public Pension Agency in a move that will reduce costs and help increase investment returns, Saad Al-Fadly, CEO of Hassana, said in an interview.
“The merger will strengthen the position of the fund, enhance performance, and position GOSI as one of the top 10 pension plan investors in the world,” he said, in the first public comments to put a figure on the size of the new state investor.
“Scale is a benefit that helps in relationship management, cost management and in negotiations, so it helps in many aspects which will improve returns,” he said.
Saudi Arabia has been taking steps to merge and restructure various entities as it looks to boost efficiency as part of a plan to diversify the economy away from oil. It’s also been building up its sovereign wealth fund to raise its reach and influence. The government has outlined a plan to grow its assets to over $1 trillion by 2025.
Diverse Portfolio
The GOSI and PPA merger, which was announced last week, will create a fund that not only holds large stakes in Saudi companies, but also has a global portfolio that includes shares worth $204 million in AstraZeneca Plc and $171 million in HSBC Holdings Plc.
Domestic assets include a combined $8.7 billion holding in Saudi National Bank and a $4.3 billion stake in Al Rajhi Bank, according to data compiled by Bloomberg. Their portfolios also include real estate and bonds.
The funds will conduct a review of investment strategy as part of the merger process, Al Fadly said. “Returns have been really good, and we hope that will continue,” he said, declining to give specifics.
Hassana has meanwhile joined a consortium of investors with EIG Global Energy Partners of the U.S. and China’s Silk Road Fund that are paying $12.4 billion to acquire a 49% stake in Aramco Oil Pipelines Co.
The largest public pension fund in the world is currently Japan’s Government Pension Investment Fund, with assets of $1.7 trillion, according to data provider Global SWF. The 10th largest fund -- the New York State Common Retirement Fund -- has assets of $255 billion.
#Saudi Stocks Slump as Valuation Concerns Mount: Inside EM - Bloomberg
Saudi Stocks Slump as Valuation Concerns Mount: Inside EM - Bloomberg
Middle Eastern stock markets were mixed as investors reconciled concerns of high valuations with more positive economic indicators.
Saudi Arabia’s Tadawul All Share Index led losses in the Gulf, dropping as much as 0.8% on Sunday. The kingdom’s equities have climbed for six straight weeks, their longest winning streak since September, with the key gauge hovering near its highest in almost seven years amid optimism on oil prices.
The lofty valuations are reason for caution, according to Tarek Fadlallah, the chief executive officer of Nomura Asset Management’s Middle East unit.
“The macro story in Saudi Arabia is much more interesting than the micro story,” he said on Bloomberg TV. There is “a lot going on to be optimistic about if you are looking from a 30,000-foot view. However, if you look at the company level, there’s been very little restructuring. There’s been very little advancement in terms of the profitability of individual companies.”
Meantime, stock exchanges from Dubai to Oman, Egypt and Israel tracked global indexes, which declined Friday as the Federal Reserve’s surprise hawkish tone upended the reflation trade that’s gained favor this year. Shares in Kuwait, Qatar and Bahrain rose, while Abu Dhabi’s were little changed.
Middle Eastern stock markets were mixed as investors reconciled concerns of high valuations with more positive economic indicators.
Saudi Arabia’s Tadawul All Share Index led losses in the Gulf, dropping as much as 0.8% on Sunday. The kingdom’s equities have climbed for six straight weeks, their longest winning streak since September, with the key gauge hovering near its highest in almost seven years amid optimism on oil prices.
The lofty valuations are reason for caution, according to Tarek Fadlallah, the chief executive officer of Nomura Asset Management’s Middle East unit.
“The macro story in Saudi Arabia is much more interesting than the micro story,” he said on Bloomberg TV. There is “a lot going on to be optimistic about if you are looking from a 30,000-foot view. However, if you look at the company level, there’s been very little restructuring. There’s been very little advancement in terms of the profitability of individual companies.”
Meantime, stock exchanges from Dubai to Oman, Egypt and Israel tracked global indexes, which declined Friday as the Federal Reserve’s surprise hawkish tone upended the reflation trade that’s gained favor this year. Shares in Kuwait, Qatar and Bahrain rose, while Abu Dhabi’s were little changed.
MIDEAST STOCKS #Saudi bourse underperforms major Gulf markets, #Qatar gains | Reuters
MIDEAST STOCKS Saudi bourse underperforms major Gulf markets, Qatar gains | Reuters
Most major stock markets in the Gulf ended lower on Sunday, with the Saudi index leading the losses, although Qatar bucked the trend to close higher.
The benchmark index (.TASI) in Saudi Arabia, fell 0.6%, with Al Rajhi Bank (1120.SE) and petrochemical firm Saudi Basic Industries (2010.SE) dropping 1.8% each.
The kingdom's April crude oil exports fell to their lowest level since June 2020, official data showed on Thursday. read more
OPEC and its allies agreed to extend most oil output cuts into April but Saudi Arabia said it would extend its voluntary oil output cut of 1 million bpd, and would decide in following months when to gradually phase it out. read more
The country's gross domestic product also shrank 3% in the first quarter, slightly less than official estimates and compared with a 1% contraction last year, as a sharp fall in the oil sector pulled back the economy, data showed. read more
Dubai's main share index (.DFMGI) lost 0.4%, weighed down by a 0.8% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU) and Emirates NBD Bank (ENBD.DU) was down 0.4%.
Dubai's state airport operator said it was hoping for a "flood" of travelers as the coronavirus pandemic eases. It targets passenger traffic through Dubai International Airport to rising 8% to 28 million this year as demand recovers. read more
The airport handled 5.75 million passengers in the first quarter, a 67.8% fall compared to the same quarter in 2020 before the pandemic halted traffic.
In Abu Dhabi, the index (.ADI) traded flat as gains in financial shares were offset by declines in telecoms firm Etisalat (ETISALAT.AD).
In Qatar, the index (.QSI) closed 0.2% higher, with Qatar Islamic Bank (QISB.QA) rising 0.7%.
Last week, ratings agency Fitch affirmed Qatar at 'AA-' with a stable outlook.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 0.7%, hit by a 2.7% fall in Abu Qir Fertilizer and Chemical Industries (ABUK.CA).
Most major stock markets in the Gulf ended lower on Sunday, with the Saudi index leading the losses, although Qatar bucked the trend to close higher.
The benchmark index (.TASI) in Saudi Arabia, fell 0.6%, with Al Rajhi Bank (1120.SE) and petrochemical firm Saudi Basic Industries (2010.SE) dropping 1.8% each.
The kingdom's April crude oil exports fell to their lowest level since June 2020, official data showed on Thursday. read more
OPEC and its allies agreed to extend most oil output cuts into April but Saudi Arabia said it would extend its voluntary oil output cut of 1 million bpd, and would decide in following months when to gradually phase it out. read more
The country's gross domestic product also shrank 3% in the first quarter, slightly less than official estimates and compared with a 1% contraction last year, as a sharp fall in the oil sector pulled back the economy, data showed. read more
Dubai's main share index (.DFMGI) lost 0.4%, weighed down by a 0.8% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU) and Emirates NBD Bank (ENBD.DU) was down 0.4%.
Dubai's state airport operator said it was hoping for a "flood" of travelers as the coronavirus pandemic eases. It targets passenger traffic through Dubai International Airport to rising 8% to 28 million this year as demand recovers. read more
The airport handled 5.75 million passengers in the first quarter, a 67.8% fall compared to the same quarter in 2020 before the pandemic halted traffic.
In Abu Dhabi, the index (.ADI) traded flat as gains in financial shares were offset by declines in telecoms firm Etisalat (ETISALAT.AD).
In Qatar, the index (.QSI) closed 0.2% higher, with Qatar Islamic Bank (QISB.QA) rising 0.7%.
Last week, ratings agency Fitch affirmed Qatar at 'AA-' with a stable outlook.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 0.7%, hit by a 2.7% fall in Abu Qir Fertilizer and Chemical Industries (ABUK.CA).
Batelco Jumps to Highest Since 2008 Amid Dual Listing Plans - Bloomberg
Batelco Jumps to Highest Since 2008 Amid Dual Listing Plans - Bloomberg
Bahrain Telecommunications Co. shares rallied to the highest since 2008 in heavy trading as the company weighs cross-listing its shares on Saudi Arabia’s stock exchange.
Shares jumped by 2.2% to 0.61 Bahraini dinars at 11:05 a.m. local time. More than 454,000 shares were traded -- over six times the stock’s 30-day average for this time of day. The stock was the biggest gainer on the Bahrain Bourse All Share Index by points.
Bloomberg News reported last week that Batelco, Bahrain’s biggest telecommunications firm, is planning to become the first company to have a dual listing on Saudi Arabia’s bourse.
“Batelco confirms that it has made a preliminary assessment of the potential merits of such transaction,” Batelco said in a statement Sunday. “As of now there is no filing with any stock exchange in relation to a potential dual listing,” it added.
Bahrain Telecommunications Co. shares rallied to the highest since 2008 in heavy trading as the company weighs cross-listing its shares on Saudi Arabia’s stock exchange.
Shares jumped by 2.2% to 0.61 Bahraini dinars at 11:05 a.m. local time. More than 454,000 shares were traded -- over six times the stock’s 30-day average for this time of day. The stock was the biggest gainer on the Bahrain Bourse All Share Index by points.
Bloomberg News reported last week that Batelco, Bahrain’s biggest telecommunications firm, is planning to become the first company to have a dual listing on Saudi Arabia’s bourse.
“Batelco confirms that it has made a preliminary assessment of the potential merits of such transaction,” Batelco said in a statement Sunday. “As of now there is no filing with any stock exchange in relation to a potential dual listing,” it added.
#Dubai Airport to Reopen Terminal This Week - Bloomberg video
Dubai Airport to Reopen Terminal This Week - Bloomberg
Paul Griffiths, CEO of Dubai Airports, discusses this week's reopening of Dubai International's Terminal One and Concourse D as the passenger hub prepares for a rebound in global travel. He speaks with Manus Cranny on "Bloomberg Daybreak: Middle East" in an exclusive interview. (Source: Bloomberg)
Middle Eastern Markets Mixed, High Valuations Eyed: Inside EM - Bloomberg
Middle Eastern Markets Mixed, High Valuations Eyed: Inside EM - Bloomberg
Middle Eastern stock markets were mixed as investors attempted to reconcile concerns about high valuations with more positive economic indicators.
Saudi Arabia’s benchmark Tadawul All Share Index fluctuated, dropping as much as 0.8% on Sunday before trimming losses.
“The macro story in Saudi Arabia is much more interesting than the micro story,” said Tarek Fadlallah, the chief executive officer of Nomura Asset Management’s Middle East unit, who said he’s cautious about high valuations in Saudi Arabia.
The Tadawul has been rallying for six weeks, the first such gain since September 2020, trading at the highest levels in seven years. Higher oil prices and government programs have been supporting Saudi stocks.
Among Saudi companies, “there’s been very little restructuring. There’s been very little advancement in terms of the profitability of individual companies,” Dubai-based Fadlallah said in an interview with Bloomberg TV. Returns on equities for Saudi-listed companies are “down 50% for listed Saudi stocks over the last decade or so, and it’s very difficult to see how that’s going to turn around.”
Other markets in the region were mixed. Exchanges in Dubai, Oman, Egypt and Israel tracked global peers, which tumbled on Friday as the Federal Reserve’s surprise hawkishness upended the reflation trade that has dominated markets this year. Indexes in Kuwait, Qatar, Abu Dhabi and Bahrain rose.
MIDDLE EASTERN MARKETS:
Middle Eastern stock markets were mixed as investors attempted to reconcile concerns about high valuations with more positive economic indicators.
Saudi Arabia’s benchmark Tadawul All Share Index fluctuated, dropping as much as 0.8% on Sunday before trimming losses.
“The macro story in Saudi Arabia is much more interesting than the micro story,” said Tarek Fadlallah, the chief executive officer of Nomura Asset Management’s Middle East unit, who said he’s cautious about high valuations in Saudi Arabia.
The Tadawul has been rallying for six weeks, the first such gain since September 2020, trading at the highest levels in seven years. Higher oil prices and government programs have been supporting Saudi stocks.
Among Saudi companies, “there’s been very little restructuring. There’s been very little advancement in terms of the profitability of individual companies,” Dubai-based Fadlallah said in an interview with Bloomberg TV. Returns on equities for Saudi-listed companies are “down 50% for listed Saudi stocks over the last decade or so, and it’s very difficult to see how that’s going to turn around.”
Other markets in the region were mixed. Exchanges in Dubai, Oman, Egypt and Israel tracked global peers, which tumbled on Friday as the Federal Reserve’s surprise hawkishness upended the reflation trade that has dominated markets this year. Indexes in Kuwait, Qatar, Abu Dhabi and Bahrain rose.
- Dubai Financial Market General Index falls 0.4% at 11:42 a.m. local time
- Dubai Islamic Bank -1%; Emirates NBD -0.4%; Emaar Properties -0.5%
- Bahrain Bourse All Share Index jumps as much as 0.5%, supported by Batelco
- Tadawul All Share Index little-changed at 10:44 a.m. in Riyadh
- Kuwait Premier Market Index gains most in the Gulf, supported by banks
- Kuwait Finance House +0.5%; Ahli United Bank +1.3%; National Bank of Kuwait +0.4% at 10:47 a.m.
Oil Price Spike: OPEC+ Must Manage Shift From Lack of Demand to Lack of Supply - Bloomberg
Oil Price Spike: OPEC+ Must Manage Shift From Lack of Demand to Lack of Supply - Bloomberg
The oil market is rapidly shifting from a period of over-supply during the height of the pandemic to one of potential shortage. Producers who managed the slump now need to be diligent in managing the recovery.
The oil producing countries in the OPEC+ group — led by Saudi Arabia and Russia — have done an amazing job at managing oil supplies as demand has crawled its way back from the biggest collapse in history.
Sure, they got off to a shaky start. Instead of slashing supply as demand cratered in April 2020, they boosted it in a production free-for-all after their previous cooperation fell apart. The deal that emerged when they eventually got together took days to form and almost foundered on the unwillingness of Mexico to play its part.
But after some vague pledge from President Donald Trump that the U.S. would make up the cuts that Mexico refused, the producer group announced a record output reduction of almost 10 million barrels a day. And, for the most part, it has stuck by what it promised.
The oil market is rapidly shifting from a period of over-supply during the height of the pandemic to one of potential shortage. Producers who managed the slump now need to be diligent in managing the recovery.
The oil producing countries in the OPEC+ group — led by Saudi Arabia and Russia — have done an amazing job at managing oil supplies as demand has crawled its way back from the biggest collapse in history.
Sure, they got off to a shaky start. Instead of slashing supply as demand cratered in April 2020, they boosted it in a production free-for-all after their previous cooperation fell apart. The deal that emerged when they eventually got together took days to form and almost foundered on the unwillingness of Mexico to play its part.
But after some vague pledge from President Donald Trump that the U.S. would make up the cuts that Mexico refused, the producer group announced a record output reduction of almost 10 million barrels a day. And, for the most part, it has stuck by what it promised.
Chevron, consortium of Total and #Qatar Petroleum win Suriname oil bids | Reuters
Chevron, consortium of Total and Qatar Petroleum win Suriname oil bids | Reuters
Suriname's state oil company Staatsolie said on Friday that Chevron Corp (CVX.N) and a consortium of France's TotalEnergies SE (TOTF.PA) and Qatar Petroleum (QATPE.UL) submitted the most favorable bids to develop offshore oil blocks.
Staatsolie said it was now in the process of negotiating production-sharing contracts for Chevron for Block 5 and with the Total-Qatar Petroleum consortium for Blocks 6 and 8. Staatsolie in November invited companies to bid for exploration rights in eight offshore shallow water blocks.
Companies including Total and Malaysia's Petronas have made hydrocarbon discoveries off the South American country's coast, potentially transforming the struggling economy of the former Dutch colony of 575,000 people. Neighboring Guyana has emerged as the world's newest energy hotspot after oil production began in late 2019.
But Suriname's optimism about its oil potential has also complicated debt restructuring talks with bondholders, who argue that the country's future oil revenues should be taken into account in determining the government's ability to make payments.
Suriname's state oil company Staatsolie said on Friday that Chevron Corp (CVX.N) and a consortium of France's TotalEnergies SE (TOTF.PA) and Qatar Petroleum (QATPE.UL) submitted the most favorable bids to develop offshore oil blocks.
Staatsolie said it was now in the process of negotiating production-sharing contracts for Chevron for Block 5 and with the Total-Qatar Petroleum consortium for Blocks 6 and 8. Staatsolie in November invited companies to bid for exploration rights in eight offshore shallow water blocks.
Companies including Total and Malaysia's Petronas have made hydrocarbon discoveries off the South American country's coast, potentially transforming the struggling economy of the former Dutch colony of 575,000 people. Neighboring Guyana has emerged as the world's newest energy hotspot after oil production began in late 2019.
But Suriname's optimism about its oil potential has also complicated debt restructuring talks with bondholders, who argue that the country's future oil revenues should be taken into account in determining the government's ability to make payments.
#Bahrain's Batelco considers dual listing | Reuters
Bahrain's Batelco considers dual listing | Reuters
Bahrain telecommunications company Batelco said on Sunday it had made a preliminary assessment of a dual listing, though that no decision on whether it would proceed had been taken.
The statement to Bahrain's bourse followed a Bloomberg June 17 report which cited sources it did not identify as saying the telco was considering a dual listing in Saudi Arabia.
The Bahrain bourse-listed company did not say where it was considering for its dual listing.
The Bahrain government owns nearly 56.97% of Batelco, including through shares held by sovereign wealth fund Mumtalakat, according Refinitiv data.
Bahrain telecommunications company Batelco said on Sunday it had made a preliminary assessment of a dual listing, though that no decision on whether it would proceed had been taken.
The statement to Bahrain's bourse followed a Bloomberg June 17 report which cited sources it did not identify as saying the telco was considering a dual listing in Saudi Arabia.
The Bahrain bourse-listed company did not say where it was considering for its dual listing.
The Bahrain government owns nearly 56.97% of Batelco, including through shares held by sovereign wealth fund Mumtalakat, according Refinitiv data.
#Dubai Airports Capacity to Hit 90% of Pre-Virus Levels by Autumn - Bloomberg
Dubai Airports Capacity to Hit 90% of Pre-Virus Levels by Autumn - Bloomberg
Dubai Airport, the world’s largest by international passenger numbers, expects to recover up to 90% of its pre-pandemic capacity by autumn and will reopen a terminal as demand picks up.
“We’re anticipating a huge surge in inbound and outbound demand over the next few months,” Dubai Airports Chief Executive Officer Paul Griffiths said in an interview with Bloomberg TV on Sunday.
Air travel will get a boost as countries start to remove restrictions, while an upcoming holiday in the Middle East and Expo 2020 Dubai -- which begins in October -- will also help shore up demand, he said. The airport plans to reopen a terminal and concourse that were shut in March 2020, and will add 3,500 jobs to meet growing demand.
Tourism is key to the emirate’s economy and Dubai International Airport, the Middle East’s trade and travel hub, relies heavily on connecting passengers around the globe.
The sheikhdom’s flagship carrier, Emirates, is also ramping up operations to accommodate demand over the summer. The carrier will have recovered about 90% of its pre-pandemic network by the end of July, it said earlier.
Griffiths, however, doesn’t expect the Gulf nation to be removed from the United Kingdom’s red list before end of June or July. Britain is one of Dubai’s most important markets and “we’re anxiously” negotiating with the U.K. government, he said.
Meanwhile, Dubai has started easing restrictions on some incoming passengers from India, Nigeria and South Africa.
Dubai Airport, the world’s largest by international passenger numbers, expects to recover up to 90% of its pre-pandemic capacity by autumn and will reopen a terminal as demand picks up.
“We’re anticipating a huge surge in inbound and outbound demand over the next few months,” Dubai Airports Chief Executive Officer Paul Griffiths said in an interview with Bloomberg TV on Sunday.
Air travel will get a boost as countries start to remove restrictions, while an upcoming holiday in the Middle East and Expo 2020 Dubai -- which begins in October -- will also help shore up demand, he said. The airport plans to reopen a terminal and concourse that were shut in March 2020, and will add 3,500 jobs to meet growing demand.
Tourism is key to the emirate’s economy and Dubai International Airport, the Middle East’s trade and travel hub, relies heavily on connecting passengers around the globe.
The sheikhdom’s flagship carrier, Emirates, is also ramping up operations to accommodate demand over the summer. The carrier will have recovered about 90% of its pre-pandemic network by the end of July, it said earlier.
Griffiths, however, doesn’t expect the Gulf nation to be removed from the United Kingdom’s red list before end of June or July. Britain is one of Dubai’s most important markets and “we’re anxiously” negotiating with the U.K. government, he said.
Meanwhile, Dubai has started easing restrictions on some incoming passengers from India, Nigeria and South Africa.
Damac Hires Advisers to Assess $599 Million Offer to Go Private - Bloomberg
Damac Hires Advisers to Assess $599 Million Offer to Go Private - Bloomberg
Damac Properties PJSC hired advisers to assess an offer to take the Dubai-based real estate developer private after backlash from investors.
An independent valuer and financial adviser have been appointed to help the board determine the financial fairness of the offer from the perspective of shareholders, Damac said in a statement to the stock exchange on Sunday.
Billionaire Hussain Sajwani offered to take the rest of Damac private at a discount of nearly 45% to the developer’s local listing in 2015. The bid was the latest in a string of similar deals in the United Arab Emirates which sought to buy out minority shareholders at a discount.
Maple Invest Co. Limited, an investment vehicle owned by Sajwani, offered 2.2 billion dirhams ($599 million), making what it called “a voluntary conditional offer for the issued share capital of Damac not already owned by Maple and its affiliates.” Sajwani, who owns a 72% stake in the developer, resigned as Damac’s chairman to avoid conflict of interest.
Damac’s June 9 announcement sparked a backlash among some investors who questioned the timing of the plan just as the property market is starting to improve following seven years of decline.
Damac’s board hired Al Tamimi & Co. law firm and said the supplemental offer document will be published this month. Also, Sofyan Al Khatib, while staying on as a board member, won’t be part of discussion in relation to the offer due to his “connection” to the former chairman, Damac said.
Damac Properties PJSC hired advisers to assess an offer to take the Dubai-based real estate developer private after backlash from investors.
An independent valuer and financial adviser have been appointed to help the board determine the financial fairness of the offer from the perspective of shareholders, Damac said in a statement to the stock exchange on Sunday.
Billionaire Hussain Sajwani offered to take the rest of Damac private at a discount of nearly 45% to the developer’s local listing in 2015. The bid was the latest in a string of similar deals in the United Arab Emirates which sought to buy out minority shareholders at a discount.
Maple Invest Co. Limited, an investment vehicle owned by Sajwani, offered 2.2 billion dirhams ($599 million), making what it called “a voluntary conditional offer for the issued share capital of Damac not already owned by Maple and its affiliates.” Sajwani, who owns a 72% stake in the developer, resigned as Damac’s chairman to avoid conflict of interest.
Damac’s June 9 announcement sparked a backlash among some investors who questioned the timing of the plan just as the property market is starting to improve following seven years of decline.
Damac’s board hired Al Tamimi & Co. law firm and said the supplemental offer document will be published this month. Also, Sofyan Al Khatib, while staying on as a board member, won’t be part of discussion in relation to the offer due to his “connection” to the former chairman, Damac said.
How a $600 Billion Wealth Fund Got Caught in Political Crossfire - Bloomberg
How a $600 Billion Wealth Fund Got Caught in Political Crossfire - Bloomberg
A $600 billion sovereign wealth fund is caught in the cross-hairs of a political power struggle that’s roiling one of the world’s richest countries.
The Kuwait Investment Authority, the world’s oldest state investment vehicle, has been in limbo since its board’s tenure expired two months ago. A new term has yet to be approved as political differences spill over into a disagreement over the make-up of the nine-member board, according to a person familiar with the matter.
The uncertainty now hanging over the KIA, which manages Kuwait’s vast oil wealth through two key funds, is emblematic of a broader malaise that’s paralyzed policy making, prompted ratings agencies to warn of downgrades and perversely left the government of a major OPEC crude exporter scrabbling for cash. KIA officials were not immediately available for comment.
It’s all part of a deep standoff between members of the only elected parliament in the Gulf and a government whose leader is appointed by the ruling Emir, a deadlock that’s blocked the state from borrowing and left it with barely enough to pay public sector salaries. The dispute’s also delaying investment and economic reforms, including an overhaul of the welfare state the government says is needed to end eight consecutive years of budget deficits.
“The signals this sends are very negative,” said Kuwaiti businessman and economist Abdullah Al-Shami, who owns two companies specialized in medical and financial services. “It is a new low and I can justify that by saying we have two political agendas and so two economic agendas. The first is going toward new liberal policies adopted by the West and the other wants to maintain the welfare system as it is.”
A $600 billion sovereign wealth fund is caught in the cross-hairs of a political power struggle that’s roiling one of the world’s richest countries.
The Kuwait Investment Authority, the world’s oldest state investment vehicle, has been in limbo since its board’s tenure expired two months ago. A new term has yet to be approved as political differences spill over into a disagreement over the make-up of the nine-member board, according to a person familiar with the matter.
The uncertainty now hanging over the KIA, which manages Kuwait’s vast oil wealth through two key funds, is emblematic of a broader malaise that’s paralyzed policy making, prompted ratings agencies to warn of downgrades and perversely left the government of a major OPEC crude exporter scrabbling for cash. KIA officials were not immediately available for comment.
It’s all part of a deep standoff between members of the only elected parliament in the Gulf and a government whose leader is appointed by the ruling Emir, a deadlock that’s blocked the state from borrowing and left it with barely enough to pay public sector salaries. The dispute’s also delaying investment and economic reforms, including an overhaul of the welfare state the government says is needed to end eight consecutive years of budget deficits.
“The signals this sends are very negative,” said Kuwaiti businessman and economist Abdullah Al-Shami, who owns two companies specialized in medical and financial services. “It is a new low and I can justify that by saying we have two political agendas and so two economic agendas. The first is going toward new liberal policies adopted by the West and the other wants to maintain the welfare system as it is.”
Al Rajhi Bank: Fitch boosts outlook to 'Stable' on resilient metrics | ZAWYA MENA Edition
Al Rajhi Bank: Fitch boosts outlook to 'Stable' on resilient metrics | ZAWYA MENA Edition
Fitch Ratings agency has revised Saudi Arabia’s Al Rajhi Banking and Investment Corporation's outlook to ‘Stable’ from ‘Negative’, while affirming the bank's 'A-' Long-Term Issuer Default Ratings (IDR).
The ratings agency assessed that pressures on the bank from the operating environment from the pandemic and lower oil prices have eased sufficiently, and that the financial metrics of the lander have been resilient in the past quarters, despite these pressures.
The agency has also assigned the Saudi bank a National Long-Term Rating of 'AA+(sau)' with Stable Outlook.
“Our assessment of its franchise is underpinned by the bank's position as Saudi Arabia's leading retail bank and its Islamic status also enables it to capture a large proportion of stable non-profit-bearing deposits,” the agency said in a report.
The bank’s funding profile is very strong with 87 percent coming from stable non-profit-bearing deposits at end-1Q21, most of it being sourced from retail customers owing to the dominant retail franchise. This reduces funding concentration risk, stabilises the funding base and results in the lowest cost of funding among Saudi banks (0.1 percent in 2020), Fitch said.
Due to this, profitability is strong too. “Financing-impairment charges (FICs) remain contained and absorbed a low 13 percent of pre-impairment operating profit in 1Q21, extending a declining trend from 21 percent in 3M20, when pandemic-related additional expected credit losses were large.”
The impact of the pandemic on the bank's operating profitability was moderate, as operating profit/ risk-weighted assets fell to 3.7 percent in 2020 from below 4.2 percent in 2019 before improving to 4.3 percent in 1Q21, on the back of higher financing volumes and contained FICs, according to the report.
Fitch Ratings agency has revised Saudi Arabia’s Al Rajhi Banking and Investment Corporation's outlook to ‘Stable’ from ‘Negative’, while affirming the bank's 'A-' Long-Term Issuer Default Ratings (IDR).
The ratings agency assessed that pressures on the bank from the operating environment from the pandemic and lower oil prices have eased sufficiently, and that the financial metrics of the lander have been resilient in the past quarters, despite these pressures.
The agency has also assigned the Saudi bank a National Long-Term Rating of 'AA+(sau)' with Stable Outlook.
“Our assessment of its franchise is underpinned by the bank's position as Saudi Arabia's leading retail bank and its Islamic status also enables it to capture a large proportion of stable non-profit-bearing deposits,” the agency said in a report.
The bank’s funding profile is very strong with 87 percent coming from stable non-profit-bearing deposits at end-1Q21, most of it being sourced from retail customers owing to the dominant retail franchise. This reduces funding concentration risk, stabilises the funding base and results in the lowest cost of funding among Saudi banks (0.1 percent in 2020), Fitch said.
Due to this, profitability is strong too. “Financing-impairment charges (FICs) remain contained and absorbed a low 13 percent of pre-impairment operating profit in 1Q21, extending a declining trend from 21 percent in 3M20, when pandemic-related additional expected credit losses were large.”
The impact of the pandemic on the bank's operating profitability was moderate, as operating profit/ risk-weighted assets fell to 3.7 percent in 2020 from below 4.2 percent in 2019 before improving to 4.3 percent in 1Q21, on the back of higher financing volumes and contained FICs, according to the report.
MIDEAST STOCKS Major Gulf markets mixed in early trade | Reuters
MIDEAST STOCKS Major Gulf markets mixed in early trade | Reuters
Major Gulf stock markets were mixed in early trade on Sunday with the Abu Dhabi index leading gains boosted by top lender First Abu Dhabi Bank.
The benchmark index (.TASI) in Saudi Arabia, fell 0.3%, with Al Rajhi Bank (1120.SE) losing 0.9% and petrochemical firm Saudi Basic Industries (2010.SE) easing 0.7%.
The kingdom's April crude oil exports fell to their lowest level since June 2020, official data showed on Thursday.
OPEC and its allies agreed to extend most oil output cuts into April but Saudi Arabia said it would extend its voluntary oil output cut of 1 million bpd, and would decide in following months when to gradually phase it out.
The country's gross domestic product also shrank 3% in the first quarter, slightly less than official estimates and compared with a 1% contraction last year, as a sharp fall in the oil sector pulled back the economy, data showed.
Dubai's main share index (.DFMGI) dropped 0.4%, hit by a 1% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU) and a 0.4% decrease in Emirates NBD Bank (ENBD.DU).
In Abu Dhabi, the index (.ADI) added 0.2%, supported by a 0.7% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD) and a 0.5% increase in aquaculture firm International Holdings (IHC.AD).
The central bank of the United Arab Emirates said the country's gross domestic product will grow 2.4% this year and 3.8% in 2022 as the economy recovers from restrictions imposed during the COVID pandemic.
In Qatar, the index (.QSI) edged up 0.1%, with Qatar Islamic Bank (QISB.QA) gaining 0.5%.
Last week, ratings agency Fitch affirmed Qatar at 'AA-' with a stable outlook.
Major Gulf stock markets were mixed in early trade on Sunday with the Abu Dhabi index leading gains boosted by top lender First Abu Dhabi Bank.
The benchmark index (.TASI) in Saudi Arabia, fell 0.3%, with Al Rajhi Bank (1120.SE) losing 0.9% and petrochemical firm Saudi Basic Industries (2010.SE) easing 0.7%.
The kingdom's April crude oil exports fell to their lowest level since June 2020, official data showed on Thursday.
OPEC and its allies agreed to extend most oil output cuts into April but Saudi Arabia said it would extend its voluntary oil output cut of 1 million bpd, and would decide in following months when to gradually phase it out.
The country's gross domestic product also shrank 3% in the first quarter, slightly less than official estimates and compared with a 1% contraction last year, as a sharp fall in the oil sector pulled back the economy, data showed.
Dubai's main share index (.DFMGI) dropped 0.4%, hit by a 1% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU) and a 0.4% decrease in Emirates NBD Bank (ENBD.DU).
In Abu Dhabi, the index (.ADI) added 0.2%, supported by a 0.7% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD) and a 0.5% increase in aquaculture firm International Holdings (IHC.AD).
The central bank of the United Arab Emirates said the country's gross domestic product will grow 2.4% this year and 3.8% in 2022 as the economy recovers from restrictions imposed during the COVID pandemic.
In Qatar, the index (.QSI) edged up 0.1%, with Qatar Islamic Bank (QISB.QA) gaining 0.5%.
Last week, ratings agency Fitch affirmed Qatar at 'AA-' with a stable outlook.