UAE Closes In on Oil Output Deal to Resolve Standoff With OPEC+ - Bloomberg
The United Arab Emirates has made significant progress in resolving its standoff with OPEC+, nearing a compromise that could give the country a more generous output limit next year and allow the whole group to pump more oil in the coming months.
The talks, involving the UAE and Saudi Arabia, are still ongoing and any deal would need the support of other OPEC+ nations, according to delegates familiar with the discussions. While one delegate said the deal was effectively done, another said discussions were continuing.
The UAE’s energy ministry issued a statement acknowledging the talks, but said no agreement had yet been reached with the whole of OPEC+.
The negotiations are nonetheless the first sign that Riyadh and Abu Dhabi are moving to cool off tensions after an unusually public fight earlier this month that briefly sent crude to a six-year high in New York.
Last week, the Organization of Petroleum Exporting Countries and its allies were forced to abandon a tentative deal to boost oil production in monthly installments of 400,000 barrels a day because of last minute objections from the UAE. If the compromise is ratified at the group’s next meeting -- for which there’s still no date -- it could potentially open the way to higher output.
However, there is only a narrow window for a deal that could deliver timely extra oil supplies. August sales volumes are largely locked and most Gulf countries are preparing for an Islamic holiday that will close government offices and businesses for most or all of next week,
Without extra output from OPEC+, the International Energy Agency warned on Tuesday that the oil market will “tighten significantly” and potentially damage the economic recovery. Crude prices fell on the news, with Brent crude falling 2.3% to settle at $74.76 a barrel.
The UAE’s dispute with OPEC+ centers around its demand for a higher production limit next year, in return for backing an extension of the cartel’s current agreement from April 2022 until December 2022.
Last week, Abu Dhabi asked to reset the baseline for its production cuts to about 3.8 million barrels a day next year, potentially increasing its production limit by more than 600,000 barrels a day. The UAE has agreed to set a new baseline of 3.65 million barrels a day, one delegate said. Another delegate said that figure was still under discussion.
Oil analysts have warned that the UAE’s demand could open a “Pandora’s Box” for OPEC+ as other members seek better terms to redress grievances of their own. Sure enough, Iraq is also pursuing a higher production baseline, according to a delegate, who didn’t specify the number it’s requesting or when it would take effect.
Like the UAE, Baghdad has bolstered production capacity since the OPEC+ accord began with the assistance of international companies.
Wednesday, 14 July 2021
Franklin Templeton's Eid on Tight Spreads in Fixed Income Markets - Bloomberg video
Franklin Templeton's Eid on Tight Spreads in Fixed Income Markets - Bloomberg
Sharif Eid, portfolio manager, Global Sukuk and MENA fixed income at Franklin Templeton discusses Saudi Arabia's surplus oil revenue and the impact of higher oil prices on sovereign debt. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Jarir Sees 'Much Stronger Profit' in 3Q - Bloomberg video
Jarir Sees 'Much Stronger Profit' in 3Q - Bloomberg
Muhammad Al-Agil, Chairman, Jarir Marketing discusses the company's latest half-year earnings as the Saudi retailer missed profit estimates. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Oil Drops as U.S. Fuel Stocks Grow and OPEC+ Nears Deal - Bloomberg
Oil Drops as U.S. Fuel Stocks Grow and OPEC+ Nears Deal - Bloomberg
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Armenian state fund and Air Arabia to launch Armenian low cost airline | Reuters
Armenian state fund and Air Arabia to launch Armenian low cost airline | Reuters
The Armenian National Interests Fund and Middle East budget carrier Air Arabia (AIRA.DU) said on Wednesday they planned to launch a new budget airline with Armenian capital Yerevan as its base.
The new carrier will operate as a joint venture between the pair, they said in a statement, adopting the low-cost model operated by Air Arabia.
"We see tremendous potential for Armenia in building its airline sector, which will add sustained value to the economy through job creation and the development of travel and tourism sector," Air Arabia's group chief executive, Adel Al Ali, was quoted as saying.
Air Arabia operates five hubs in Sharjah, Abu Dhabi, Ras Al Khaimah, Egypt and Morocco, and its shares are listed on the Dubai Financial Market.
Air Arabia has been pushing ahead to expand in the wake of the coronavirus outbreak last year as low cost carriers bet on a post-pandemic surge in travel.
Its joint venture with Abu Dhabi state-owned Etihad Airways, Air Arabia Abu Dhabi, began operations last year and has since expanded its network to 15 destinations to meet growing demand for budget travel from the capital.
The Armenian National Interests Fund and Middle East budget carrier Air Arabia (AIRA.DU) said on Wednesday they planned to launch a new budget airline with Armenian capital Yerevan as its base.
The new carrier will operate as a joint venture between the pair, they said in a statement, adopting the low-cost model operated by Air Arabia.
"We see tremendous potential for Armenia in building its airline sector, which will add sustained value to the economy through job creation and the development of travel and tourism sector," Air Arabia's group chief executive, Adel Al Ali, was quoted as saying.
Air Arabia operates five hubs in Sharjah, Abu Dhabi, Ras Al Khaimah, Egypt and Morocco, and its shares are listed on the Dubai Financial Market.
Air Arabia has been pushing ahead to expand in the wake of the coronavirus outbreak last year as low cost carriers bet on a post-pandemic surge in travel.
Its joint venture with Abu Dhabi state-owned Etihad Airways, Air Arabia Abu Dhabi, began operations last year and has since expanded its network to 15 destinations to meet growing demand for budget travel from the capital.
Mashreq reports Dh85 million net profit for first half of 2021 | Banking – Gulf News
Mashreq reports Dh85 million net profit for first half of 2021 | Banking – Gulf News
Mashreq, one of the leading financial institutions in the UAE, Wednesday reported Dh85 million net profit for the first half (H1) of 2021 compared to Dh535 million reported in the same period last year.
The bank’s operating income increased by 1.4 per cent over the previous year to Dh2.9 billion due to improvements in fees and commission.
Mashreq’s non-interest income to operating income ratio improved to 49.8 per cent compared to 47.1 per cent in the first half of 2020.
Operating profit at Dh1.6 billion is a 4.6 per cent increase compared to first half of 2020 as a result of increased operating income and reduced operating expense.
“Recording a net profit of Dh85 million during the first half of 2021, I believe we are fortunate to have been steered through the pandemic and its far-reaching impacts by a national leadership that has taken proactive measures to protect business interests, jobs and economic stability,” said AbdulAziz Al Ghurair, Chairman of Mashreq Bank.
Mashreq, one of the leading financial institutions in the UAE, Wednesday reported Dh85 million net profit for the first half (H1) of 2021 compared to Dh535 million reported in the same period last year.
The bank’s operating income increased by 1.4 per cent over the previous year to Dh2.9 billion due to improvements in fees and commission.
Mashreq’s non-interest income to operating income ratio improved to 49.8 per cent compared to 47.1 per cent in the first half of 2020.
Operating profit at Dh1.6 billion is a 4.6 per cent increase compared to first half of 2020 as a result of increased operating income and reduced operating expense.
“Recording a net profit of Dh85 million during the first half of 2021, I believe we are fortunate to have been steered through the pandemic and its far-reaching impacts by a national leadership that has taken proactive measures to protect business interests, jobs and economic stability,” said AbdulAziz Al Ghurair, Chairman of Mashreq Bank.
#Dubai bank's win in #AbuDhabi court to remain legal headache for NMC | Reuters
Dubai bank's win in Abu Dhabi court to remain legal headache for NMC | Reuters
An Abu Dhabi judge referred to arbitration a dispute between NMC and Dubai Islamic Bank and ordered the firm to pay most of the legal costs incurred by the lender, in a case that impacts creditor recoveries in NMC’s multi-billion restructuring.
NMC, the largest private healthcare provider in the United Arab Emirates (UAE), ran into trouble last year after the disclosure of more than $4 billion in hidden debt.
Its UAE operating businesses were placed into administration in the courts of Abu Dhabi’s international financial centre ADGM. Ownership is set to soon move to the creditors.
But the outcome of legal action launched by administrators Alvarez & Marsal in an ADGM court against one of NMC’s creditors, Dubai Islamic Bank (DIB), has left the healthcare company out of pocket and set the stage for more legal action.
“To my mind the overall winners on this phase of litigation are Dubai Islamic Bank,” Judge Andrew Smith said in a court hearing this week, according to a transcript seen by Reuters.
“It seems to me that the fair order is that the claimants should bear their own costs and should pay DIB 75% of their costs,” he said.
DIB’s legal costs amounted to $1.2 million, the transcript showed.
The judge ordered that NMC’s dispute of the validity and nature of DIB’s securities received from the company be referred to arbitration in London, effectively staying NMC’s main claim in the Abu Dhabi proceedings.
“We are comfortable with the key issues in the case with Dubai Islamic Bank being referred to arbitration, through which the joint administrators will continue to seek to resolve DIB’s position,” Joint Administrator Richard Fleming told Reuters.
“Our core focus is on the forthcoming launch of the deeds of company arrangement. This will provide the most appropriate mechanism to ensure both the delivery of first-class patient care and a beneficial outcome for all creditors.”
DIB, which did not immediately respond to a request for comment, had lent around $400 million to NMC using collateral known as insurance receivables, which relate to payments by insurance companies for medical treatment.
It sought rights over those securities in cases filed in neighbouring Dubai, while Alvarez & Marsal wanted to include them in NMC’s administration process, regulated by ADGM.
An Abu Dhabi judge referred to arbitration a dispute between NMC and Dubai Islamic Bank and ordered the firm to pay most of the legal costs incurred by the lender, in a case that impacts creditor recoveries in NMC’s multi-billion restructuring.
NMC, the largest private healthcare provider in the United Arab Emirates (UAE), ran into trouble last year after the disclosure of more than $4 billion in hidden debt.
Its UAE operating businesses were placed into administration in the courts of Abu Dhabi’s international financial centre ADGM. Ownership is set to soon move to the creditors.
But the outcome of legal action launched by administrators Alvarez & Marsal in an ADGM court against one of NMC’s creditors, Dubai Islamic Bank (DIB), has left the healthcare company out of pocket and set the stage for more legal action.
“To my mind the overall winners on this phase of litigation are Dubai Islamic Bank,” Judge Andrew Smith said in a court hearing this week, according to a transcript seen by Reuters.
“It seems to me that the fair order is that the claimants should bear their own costs and should pay DIB 75% of their costs,” he said.
DIB’s legal costs amounted to $1.2 million, the transcript showed.
The judge ordered that NMC’s dispute of the validity and nature of DIB’s securities received from the company be referred to arbitration in London, effectively staying NMC’s main claim in the Abu Dhabi proceedings.
“We are comfortable with the key issues in the case with Dubai Islamic Bank being referred to arbitration, through which the joint administrators will continue to seek to resolve DIB’s position,” Joint Administrator Richard Fleming told Reuters.
“Our core focus is on the forthcoming launch of the deeds of company arrangement. This will provide the most appropriate mechanism to ensure both the delivery of first-class patient care and a beneficial outcome for all creditors.”
DIB, which did not immediately respond to a request for comment, had lent around $400 million to NMC using collateral known as insurance receivables, which relate to payments by insurance companies for medical treatment.
It sought rights over those securities in cases filed in neighbouring Dubai, while Alvarez & Marsal wanted to include them in NMC’s administration process, regulated by ADGM.
#UAE News: #Dubai Regulator Hits Ex-Abraaj Finance Chief With Record Fine - Bloomberg
UAE News: Dubai Regulator Hits Ex-Abraaj Finance Chief With Record Fine - Bloomberg
The former finance chief of the now-defunct Abraaj Group said he was aware of the fraud that led to the private equity firm’s 2019 collapse but was too afraid to speak out, according to the Dubai financial regulator.
Ashish Dave was handed a $1.7 million fine by the Dubai Financial Services Authority on Wednesday for his involvement in the scandal, the largest-ever penalty imposed on any individual in the emirate’s financial center. Abraaj, which was headed by financier Arif Naqvi, went into liquidation following a process that began when investors including the Bill & Melinda Gates Foundation ordered a probe into the use of money from Abraaj’s healthcare fund.
Dave said he was “aware of the deception that was being carried out but was not in a position to stop it,” according to the regulator’s 96-page decision notice published alongside the fine. He feared he “would have been the only person, along with my family,” that would suffer as a result, it said.
The fine was imposed for Dave’s “involvement in deception, unauthorized activity, and compliance breaches,” according to the notice. His attempts to mislead investors contributed to the collapse of the region’s largest private equity firm and “undermined the confidence of investors in the DIFC and damaged the reputation and integrity of the DIFC,” it said.
Dave didn’t respond to calls to his mobile phone requesting comment on Wednesday.
The fine is the latest move by the Dubai Financial Services Authority over the Abraaj affair and the people behind a fraud that rattled reputations in the DIFC, the city’s financial free-zone, one of the Middle East’s biggest business hubs. Abraaj at one time managed as much as $14 billion.
According to Wednesday’s decision notice, Dave said he attended a meeting in mid-2017 with a senior official at the firm who told him $425 million of investors’ money had been taken out of two funds without their knowledge. He said he immediately asked himself “What the hell have I gotten myself into?”
Dave was also banned from working in or from Dubai’s financial center, the regulator said Wednesday.
Naqvi faces criminal charges in the U.S. and is currently in the U.K. awaiting extradition. The Dubai regulator imposed a record $315 million fine on Abraaj in 2019.
Dave worked at Abraaj as chief financial officer from September 2008 to September 2013 and then again from February 2017 to March 2018. Between 2013 and 2017 he was partner at accounting firm KPMG LLP, which was also auditor of Abraaj.
Dave asked for a waiver of the fine, saying he was unable to pay it. The regulator rejected the appeal on the grounds that “it would send entirely the wrong signal to the market and to those who might be tempted to infringe the rules, the object of which is to protect investors.”
The former finance chief of the now-defunct Abraaj Group said he was aware of the fraud that led to the private equity firm’s 2019 collapse but was too afraid to speak out, according to the Dubai financial regulator.
Ashish Dave was handed a $1.7 million fine by the Dubai Financial Services Authority on Wednesday for his involvement in the scandal, the largest-ever penalty imposed on any individual in the emirate’s financial center. Abraaj, which was headed by financier Arif Naqvi, went into liquidation following a process that began when investors including the Bill & Melinda Gates Foundation ordered a probe into the use of money from Abraaj’s healthcare fund.
Dave said he was “aware of the deception that was being carried out but was not in a position to stop it,” according to the regulator’s 96-page decision notice published alongside the fine. He feared he “would have been the only person, along with my family,” that would suffer as a result, it said.
The fine was imposed for Dave’s “involvement in deception, unauthorized activity, and compliance breaches,” according to the notice. His attempts to mislead investors contributed to the collapse of the region’s largest private equity firm and “undermined the confidence of investors in the DIFC and damaged the reputation and integrity of the DIFC,” it said.
Dave didn’t respond to calls to his mobile phone requesting comment on Wednesday.
The fine is the latest move by the Dubai Financial Services Authority over the Abraaj affair and the people behind a fraud that rattled reputations in the DIFC, the city’s financial free-zone, one of the Middle East’s biggest business hubs. Abraaj at one time managed as much as $14 billion.
According to Wednesday’s decision notice, Dave said he attended a meeting in mid-2017 with a senior official at the firm who told him $425 million of investors’ money had been taken out of two funds without their knowledge. He said he immediately asked himself “What the hell have I gotten myself into?”
Dave was also banned from working in or from Dubai’s financial center, the regulator said Wednesday.
Naqvi faces criminal charges in the U.S. and is currently in the U.K. awaiting extradition. The Dubai regulator imposed a record $315 million fine on Abraaj in 2019.
Dave worked at Abraaj as chief financial officer from September 2008 to September 2013 and then again from February 2017 to March 2018. Between 2013 and 2017 he was partner at accounting firm KPMG LLP, which was also auditor of Abraaj.
Dave asked for a waiver of the fine, saying he was unable to pay it. The regulator rejected the appeal on the grounds that “it would send entirely the wrong signal to the market and to those who might be tempted to infringe the rules, the object of which is to protect investors.”
MIDEAST STOCKS #AbuDhabi leads Gulf higher as Yahsat makes strong market debut | Reuters
MIDEAST STOCKS Abu Dhabi leads Gulf higher as Yahsat makes strong market debut | Reuters
Most major Gulf markets closed higher on Wednesday with Abu Dhabi stocks leading gains, as Mubadala-backed satellite operator Al Yah Satellite Communications (Yahsat) listed after a $730 million initial public offering (IPO).
Abu Dhab's index (.ADI) closed 0.5% higher boosted by a 1.9% rise in International Holding Company (IHC.AD).
Shares of Yahsat surged as much as 12.7% in the first day of trading before closing at 2.80 dirhams ($0.7624) per share, 1.8% above its IPO price of 2.75 dirhams. read more
Saudi Arabia's benchmark index (.TASI) was up 0.4% supported Saudi National Bank (1180.SE) and Al Rajhi Bank (1120.SE), rising 1.5% and 0.4%, respectively.
Saudi Aramco added 0.7%, while Arriyadh Development (4150.SE) jumped 9.9% to be the top percentage gainer on the index after reporting a 163% surge in quarterly profit and declaring first half dividend of 1 riyal per share.
The Qatari index (.QSI) edged up 0.1% as the Gulf's largest lender Qatar National Bank (QNBK.QA) increased 1.3%.
The Dubai index (.DFMGI) closed down 0.2%. Dubai Islamic Bank (DISB.DU) slipped 0.8%, while Dubai Investments (DINV.DU) shed 2.3% after saying it acquired Emirates NBD's stake in National General Insurance (NGIN.DU). Emirates NBD Bank (ENBD.DU) rose 1.5%
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 1.6% higher as the country's largest lender Commercial International Bank (COMI.CA) added a further 1% to Tuesday's gain following a 24% increase in second-quarter net profit.
Fawry for banking technology and electronic payment (FWRY.CA) climbed 3.2% after saying it acquired a minority stake in food deliver platform Elmenus.
Most major Gulf markets closed higher on Wednesday with Abu Dhabi stocks leading gains, as Mubadala-backed satellite operator Al Yah Satellite Communications (Yahsat) listed after a $730 million initial public offering (IPO).
Abu Dhab's index (.ADI) closed 0.5% higher boosted by a 1.9% rise in International Holding Company (IHC.AD).
Shares of Yahsat surged as much as 12.7% in the first day of trading before closing at 2.80 dirhams ($0.7624) per share, 1.8% above its IPO price of 2.75 dirhams. read more
Saudi Arabia's benchmark index (.TASI) was up 0.4% supported Saudi National Bank (1180.SE) and Al Rajhi Bank (1120.SE), rising 1.5% and 0.4%, respectively.
Saudi Aramco added 0.7%, while Arriyadh Development (4150.SE) jumped 9.9% to be the top percentage gainer on the index after reporting a 163% surge in quarterly profit and declaring first half dividend of 1 riyal per share.
The Qatari index (.QSI) edged up 0.1% as the Gulf's largest lender Qatar National Bank (QNBK.QA) increased 1.3%.
The Dubai index (.DFMGI) closed down 0.2%. Dubai Islamic Bank (DISB.DU) slipped 0.8%, while Dubai Investments (DINV.DU) shed 2.3% after saying it acquired Emirates NBD's stake in National General Insurance (NGIN.DU). Emirates NBD Bank (ENBD.DU) rose 1.5%
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 1.6% higher as the country's largest lender Commercial International Bank (COMI.CA) added a further 1% to Tuesday's gain following a 24% increase in second-quarter net profit.
Fawry for banking technology and electronic payment (FWRY.CA) climbed 3.2% after saying it acquired a minority stake in food deliver platform Elmenus.
#UAE says agreement with OPEC+ on oil supply deal not yet reached | Reuters
UAE says agreement with OPEC+ on oil supply deal not yet reached | Reuters
The United Arab Emirates' energy minister said in a statement on Wednesday that an agreement had not been reached yet with OPEC+ regarding its position on an extension of an oil supply deal.
"Deliberations and consultations between concerned parties are ongoing," the statement said.
Earlier on Wednesday, Reuters reported that the UAE and Saudi Arabia reached an compromise giving Abu Dhabi a new production baseline to allow the extension of the supply agreement until the end of 2022. read more
The United Arab Emirates' energy minister said in a statement on Wednesday that an agreement had not been reached yet with OPEC+ regarding its position on an extension of an oil supply deal.
"Deliberations and consultations between concerned parties are ongoing," the statement said.
Earlier on Wednesday, Reuters reported that the UAE and Saudi Arabia reached an compromise giving Abu Dhabi a new production baseline to allow the extension of the supply agreement until the end of 2022. read more
#Qatar Wealth Fund Builds Regional Hub in Singapore to Diversify - Bloomberg
Qatar Wealth Fund Builds Regional Hub in Singapore to Diversify - Bloomberg
Qatar’s $300 billion sovereign wealth fund is building a regional hub in Singapore, people familiar with the matter said, as part of its efforts to diversify a portfolio weighted toward Europe and the U.S.
While the Qatar Investment Authority has previously done deals in the city state, a local base will help bolster its presence in the Southeast Asian nation and beyond. Abdulla Al Kuwari is now based there as head of QIA (Singapore) Pte. Ltd, according to his LinkedIn profile, along with Jason Chew, who is an adviser.
A representative for QIA said on Wednesday the fund has a wholly-owned subsidiary in Singapore, but didn’t provide further details. Earlier this year, another representative said the subsidiary there would serve as a “springboard” for sourcing investment opportunities in the region.
The fund has vowed to invest more in Asia and the United States as it pursues growth and diversification after years of substantial investment in Europe. Asia “has been very much on our radar screen,” Chairman Sheikh Mohammed bin Abdulrahman Al Thani told Bloomberg earlier this year. North American deals, however, will remain a priority, he said.
In a June 2021 letter to Singapore’s corporate regulator, Qatar Investment Authority Advisory (Singapore) Pte. said it was a wholly-owned subsidiary of the QIA and asked for a change in its local name.
“To better reflect our scope of business which covers the Asia Pacific Region, and not Singapore, we propose to change our company name,” it said, nominating “Qatar Investment Authority Advisory (Asia Pacific) Pte.” as its preferred option.
Founded in 2005, the QIA ranks as the world’s 11th-largest wealth fund, according to the Sovereign Wealth Fund Institute. It holds stakes in some of the world’s top companies including London Stock Exchange Group Plc, Volkswagen AG and Glencore Plc. The fund also participated in Chinese electric-car startup Xpeng Inc.’s funding round before its U.S. initial public offering last year.
Qatar’s $300 billion sovereign wealth fund is building a regional hub in Singapore, people familiar with the matter said, as part of its efforts to diversify a portfolio weighted toward Europe and the U.S.
While the Qatar Investment Authority has previously done deals in the city state, a local base will help bolster its presence in the Southeast Asian nation and beyond. Abdulla Al Kuwari is now based there as head of QIA (Singapore) Pte. Ltd, according to his LinkedIn profile, along with Jason Chew, who is an adviser.
A representative for QIA said on Wednesday the fund has a wholly-owned subsidiary in Singapore, but didn’t provide further details. Earlier this year, another representative said the subsidiary there would serve as a “springboard” for sourcing investment opportunities in the region.
The fund has vowed to invest more in Asia and the United States as it pursues growth and diversification after years of substantial investment in Europe. Asia “has been very much on our radar screen,” Chairman Sheikh Mohammed bin Abdulrahman Al Thani told Bloomberg earlier this year. North American deals, however, will remain a priority, he said.
In a June 2021 letter to Singapore’s corporate regulator, Qatar Investment Authority Advisory (Singapore) Pte. said it was a wholly-owned subsidiary of the QIA and asked for a change in its local name.
“To better reflect our scope of business which covers the Asia Pacific Region, and not Singapore, we propose to change our company name,” it said, nominating “Qatar Investment Authority Advisory (Asia Pacific) Pte.” as its preferred option.
Founded in 2005, the QIA ranks as the world’s 11th-largest wealth fund, according to the Sovereign Wealth Fund Institute. It holds stakes in some of the world’s top companies including London Stock Exchange Group Plc, Volkswagen AG and Glencore Plc. The fund also participated in Chinese electric-car startup Xpeng Inc.’s funding round before its U.S. initial public offering last year.
#UAE Resolves OPEC+ Standoff With Compromise Over Output Quota - Bloomberg
UAE Resolves OPEC+ Standoff With Compromise Over Output Quota - Bloomberg
The United Arab Emirates has reached a preliminary deal to resolve the its standoff with OPEC+, giving the Gulf state a higher output quota, said a delegate.
The proposal would need to be approved by all OPEC+ members before it can take effect and a new date for a meeting will be set soon, the delegate said, asking not to be named because the information was private.
Oil fluctuated on the news, with Brent crude down 0.3% at $76.25 a barrel as of 12:53 p.m. in London.
Last week, the Organization of Petroleum Exporting Countries and its allies were forced to abandon a tentative deal to boost oil production because of last minute objections from the UAE. If the compromise is ratified at a new meeting, it could potentially open the way to higher output, although some members have already locked in most of their supply volumes for August.
The UAE will set a new baseline of 3.65 million barrels a day for its production cuts, the delegate said. That would be an increase from about 3.17 million currently -- a level the country has argued is unfairly low.
The emirates will now support a proposal from Saudi Arabia to extend the duration of the OPEC+ cuts agreement to December 2022, the delegate said.
The United Arab Emirates has reached a preliminary deal to resolve the its standoff with OPEC+, giving the Gulf state a higher output quota, said a delegate.
The proposal would need to be approved by all OPEC+ members before it can take effect and a new date for a meeting will be set soon, the delegate said, asking not to be named because the information was private.
Oil fluctuated on the news, with Brent crude down 0.3% at $76.25 a barrel as of 12:53 p.m. in London.
Last week, the Organization of Petroleum Exporting Countries and its allies were forced to abandon a tentative deal to boost oil production because of last minute objections from the UAE. If the compromise is ratified at a new meeting, it could potentially open the way to higher output, although some members have already locked in most of their supply volumes for August.
The UAE will set a new baseline of 3.65 million barrels a day for its production cuts, the delegate said. That would be an increase from about 3.17 million currently -- a level the country has argued is unfairly low.
The emirates will now support a proposal from Saudi Arabia to extend the duration of the OPEC+ cuts agreement to December 2022, the delegate said.
Trade emerges as latest flashpoint in deepening #Saudi-#UAE rivalry | Financial Times
Trade emerges as latest flashpoint in deepening Saudi-UAE rivalry | Financial Times
Trade threatens to become the latest flashpoint in the economic and strategic rivalry between Riyadh and Abu Dhabi and risks adding to tensions in the six-nation Gulf Co-operation Council after Saudi Arabia imposed new tariffs on imports from its neighbours.
The levies, which came into force this month, range from 3 to 15 per cent and apply to products made by any company based in its Gulf neighbours whose workforce does not include 10-25 per cent of that country’s nationals. Riyadh said the move was aimed at stopping its industries from being undercut by cheap foreign labour.
But it rides roughshod over the GCC’s customs union, under which most products from non-GCC nations are subject to a 5 per cent tariff and trade between GCC members — Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman — is mainly tariff free.
Lines of trucks have been backed up at the Saudi-UAE border as logistics operators struggle with new paperwork, including a form requiring importers to the kingdom to provide proof of their location and labour force composition.
“This has blindsided us; the requirements are impossible,” said one executive with a Dubai-based family-owned conglomerate. “This is the end of the GCC — what’s the point?”
One of #Dubai’s Oldest Lenders Prepares for a Digital-Only Future - Bloomberg
One of Dubai’s Oldest Lenders Prepares for a Digital-Only Future - Bloomberg
One of the oldest banks in the United Arab Emirates is preparing for a digital-only future as it fends off competition from non-traditional financial services startups.
Dubai-based Mashreqbank PSC now operates just 10 branches in the United Arab Emirates, down from 34 two years ago. That’s set to fall further, with Chief Executive Officer Ahmed Abdelaal predicting traditional branches will “cease to exist very soon.”
“There’s a complete shift in our strategy to focus on digital channels,” which now account for the majority of new business at the lender, Abdelaal said in an interview. “We still have some clients who rely on brick and mortar but our numbers show these are diminishing by the minute.”
Mashreq traces its origins back to 1967, four years before the UAE was founded as an independent country. The lender, like others in the Middle East, is pivoting to digital banking to cater to a young population that prefers to bank online. For some countries like Egypt, digital platforms are often the only way to access banking services.
While lenders including Emirates NBD have set up digital offshoots, independent entities are also entering the market. The founder of Dubai-based Emaar Properties PJSC has set up a platform called Zand, while Abu Dhabi sovereign fund ADQ last year announced plans for a $545 million digital bank. Meanwhile, local payment apps have attracted funding and companies like Stripe Inc. have entered the market.
Abdelaal said Mashreq isn’t competing with traditional banks anymore. “Our real competitors are the providers of client experience...the owners of data, the owners of information,” he said.
One of the oldest banks in the United Arab Emirates is preparing for a digital-only future as it fends off competition from non-traditional financial services startups.
Dubai-based Mashreqbank PSC now operates just 10 branches in the United Arab Emirates, down from 34 two years ago. That’s set to fall further, with Chief Executive Officer Ahmed Abdelaal predicting traditional branches will “cease to exist very soon.”
“There’s a complete shift in our strategy to focus on digital channels,” which now account for the majority of new business at the lender, Abdelaal said in an interview. “We still have some clients who rely on brick and mortar but our numbers show these are diminishing by the minute.”
Mashreq traces its origins back to 1967, four years before the UAE was founded as an independent country. The lender, like others in the Middle East, is pivoting to digital banking to cater to a young population that prefers to bank online. For some countries like Egypt, digital platforms are often the only way to access banking services.
While lenders including Emirates NBD have set up digital offshoots, independent entities are also entering the market. The founder of Dubai-based Emaar Properties PJSC has set up a platform called Zand, while Abu Dhabi sovereign fund ADQ last year announced plans for a $545 million digital bank. Meanwhile, local payment apps have attracted funding and companies like Stripe Inc. have entered the market.
Abdelaal said Mashreq isn’t competing with traditional banks anymore. “Our real competitors are the providers of client experience...the owners of data, the owners of information,” he said.
Abdelaal also said:
- There are now several green shoots including higher foreign investments and a rebound in property prices that point to an economic recovery in Dubai.
- The bank is seeking to enter Oman and grow its business in Egypt. It has also applied for a banking license in Saudi Arabia
- Mashreq is working on a number of Shariah-compliant green bonds in the region.
#UAE News: Mubadala’s Yahsat Jumps on Debut, Boosting #AbuDhabi IPO Push - Bloomberg
UAE News: Mubadala’s Yahsat Jumps on Debut, Boosting Abu Dhabi IPO Push - Bloomberg
Satellite operator Yahsat jumped in its Abu Dhabi trading debut, bolstering the emirate’s efforts to revive listings on an exchange that last hosted an initial public offering in 2017.
Al Yah Satellite Communications Co. rose as much 13% on Wednesday to 3.10 dirhams. The company is owned by Abu Dhabi’s $243 billion sovereign fund Mubadala Investment Co., which will keep a majority stake after the listing.
Abu Dhabi’s exchange has been reaching out to state-run and family owned companies, offering incentives such as flexibility on the minimum required stake size and reduced or zero fees, Bloomberg reported in May.
Mubadala is close to listing Emirates Global Aluminium PJSC, while state-run Abu Dhabi National Oil Co. is considering selling shares in its drilling business and has started preparations for a potential IPO of its fertilizer joint venture.
Yahsat’s share sale is the second-largest on record in the emirate, after Abu Dhabi National Oil Co. for Distribution PJSC raised $850.8 million in a 2017 offering, according to data compiled by Bloomberg. It is also the first IPO in Abu Dhabi since that listing.
Mubadala sold 975.9 million Yahsat shares, representing a 40% stake, for 2.75 dirhams each, the mid point of a marketed range. The sale attracted foreign and “high quality” investors, the company said in a statement last week. The Emirates Investment Authority subscribed to 5% of the offer.
Yahsat provides satellite communications solutions to more than 150 countries globally, according to its website. Its fleet of five satellites reaches more than 80% of the world’s population, and the company expects to launch a new satellite in 2023, Reuters reported on Wednesday. The company has been profitable for at least the last three years, with its net income rising to 253 million dirhams in 2020.
Satellite operator Yahsat jumped in its Abu Dhabi trading debut, bolstering the emirate’s efforts to revive listings on an exchange that last hosted an initial public offering in 2017.
Al Yah Satellite Communications Co. rose as much 13% on Wednesday to 3.10 dirhams. The company is owned by Abu Dhabi’s $243 billion sovereign fund Mubadala Investment Co., which will keep a majority stake after the listing.
Abu Dhabi’s exchange has been reaching out to state-run and family owned companies, offering incentives such as flexibility on the minimum required stake size and reduced or zero fees, Bloomberg reported in May.
Mubadala is close to listing Emirates Global Aluminium PJSC, while state-run Abu Dhabi National Oil Co. is considering selling shares in its drilling business and has started preparations for a potential IPO of its fertilizer joint venture.
Yahsat’s share sale is the second-largest on record in the emirate, after Abu Dhabi National Oil Co. for Distribution PJSC raised $850.8 million in a 2017 offering, according to data compiled by Bloomberg. It is also the first IPO in Abu Dhabi since that listing.
Mubadala sold 975.9 million Yahsat shares, representing a 40% stake, for 2.75 dirhams each, the mid point of a marketed range. The sale attracted foreign and “high quality” investors, the company said in a statement last week. The Emirates Investment Authority subscribed to 5% of the offer.
Yahsat provides satellite communications solutions to more than 150 countries globally, according to its website. Its fleet of five satellites reaches more than 80% of the world’s population, and the company expects to launch a new satellite in 2023, Reuters reported on Wednesday. The company has been profitable for at least the last three years, with its net income rising to 253 million dirhams in 2020.
Oil prices slip as China import drop signals demand risk | Reuters
Oil prices slip as China import drop signals demand risk | Reuters
Oil prices fell on Wednesday over fresh concerns about demand after data showed that China's first-half crude imports dropped, but were still holding near a one-week high amid worries about supplies as the world recovers from the coronavirus pandemic.
Brent crude was down 8 cents, or 0.1%, at $76.41 a barrel by 0602 GMT, after gaining 1.8% on Tuesday. West Texas Intermediate was off by 15 cents, or 0.2%, at $75.10 a barrel, having jumped 1.6% in the previous session.
China's crude imports dropped by 3% from January to June compared with a year earlier, the first such contraction since 2013, as import quota shortages, refinery maintenance and rising global prices curbed buying. read more
"Imports were scaled back as surging prices for crude oil have eroded refinery profit margins," Eurasia Group said in a note.
Oil prices fell on Wednesday over fresh concerns about demand after data showed that China's first-half crude imports dropped, but were still holding near a one-week high amid worries about supplies as the world recovers from the coronavirus pandemic.
Brent crude was down 8 cents, or 0.1%, at $76.41 a barrel by 0602 GMT, after gaining 1.8% on Tuesday. West Texas Intermediate was off by 15 cents, or 0.2%, at $75.10 a barrel, having jumped 1.6% in the previous session.
China's crude imports dropped by 3% from January to June compared with a year earlier, the first such contraction since 2013, as import quota shortages, refinery maintenance and rising global prices curbed buying. read more
"Imports were scaled back as surging prices for crude oil have eroded refinery profit margins," Eurasia Group said in a note.