Oil steadies in undersupplied market but coronavirus cases weigh | Reuters
Oil prices steadied on Monday after a choppy session as the spread of the COVID-19 Delta variant stoked fears about fuel demand, but losses were limited by forecasts that crude supply will be tight the rest of the year.
Brent crude futures rose 40 cents, or 0.5%, to end the session at $74.50 a barrel, while U.S. West Texas Intermediate crude slipped by 16 cents, or 0.2%, to settle at $71.91.
Early in the session, both benchmarks fell by more than $1 a barrel.
“Risk appetite has clearly massively improved over the last week and just like other risk assets, oil is taking a breather ahead of an intense few days,” Craig Erlam, senior market analyst at OANDA said.
“The second quarter recovery has got pulses racing at the prospect of what’s to come. The next wave of COVID is a downside risk to that but not to the extent that the previous surges have. Optimism is still strong and for good reason.”
Coronavirus cases kept rising over the weekend, with some countries reporting record daily increases and extending lockdown measures. China, the world’s largest crude importer, has also registered a rise in COVID-19 cases.
Monday, 26 July 2021
Gulf rebound set as #SaudiArabia, #UAE seen topping 4% growth in 2022 | Reuters
Gulf rebound set as Saudi Arabia, UAE seen topping 4% growth in 2022 | Reuters
The six economies in the Gulf Cooperation Council (GCC) are set to rebound and grow 2% to nearly 3% this year while the region's two largest economies, Saudi Arabia and the UAE, are forecast to grow over 4% next year, a quarterly Reuters survey showed.
That outlook follows steep declines last year following an oil price crash and the impact of the COVID-19 pandemic, while analysts expected Saudi Arabia, the UAE and Kuwait to benefit from an OPEC+ deal to boost oil production. read more
"Our core assumption was that a longer-term deal would be secured, and we raise our 2022 forecasts on the back of the baseline adjustments, which will enable the UAE, Kuwait and Saudi Arabia to raise oil output and their global market share from May 2022," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Medians in the July 5-26 poll pegged Saudi Arabia's growth at 2.3% this year, down slightly from a forecast of 2.4% in a similar poll three months ago.
The six economies in the Gulf Cooperation Council (GCC) are set to rebound and grow 2% to nearly 3% this year while the region's two largest economies, Saudi Arabia and the UAE, are forecast to grow over 4% next year, a quarterly Reuters survey showed.
That outlook follows steep declines last year following an oil price crash and the impact of the COVID-19 pandemic, while analysts expected Saudi Arabia, the UAE and Kuwait to benefit from an OPEC+ deal to boost oil production. read more
"Our core assumption was that a longer-term deal would be secured, and we raise our 2022 forecasts on the back of the baseline adjustments, which will enable the UAE, Kuwait and Saudi Arabia to raise oil output and their global market share from May 2022," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Medians in the July 5-26 poll pegged Saudi Arabia's growth at 2.3% this year, down slightly from a forecast of 2.4% in a similar poll three months ago.
Will NMC Healthcare founder B.R. Shetty's high-stakes $7b legal gamble in the US pay-off? | Banking – Gulf News
Will NMC Healthcare founder B.R. Shetty's high-stakes $7b legal gamble in the US pay-off? | Banking – Gulf News
Will Dr. B.R. Shetty win it in the US? More specifically, in a New York court of law, where he has sought damages totalling more than $7 billion against his former audit firm, banks, and senior executives of Abu Dhabi headquartered NMC Health, the UAE Exchange Centre and NeoPharma, a pharmaceutical business that he owns.
Informed sources in the UAE who had dealt with Shetty in the past are baffled that he has taken on a legal battle in the US despite being involved in sundry legal issues in the UAE, in the UK courts and in India. His assets are under freeze through various court orders, and he remains stuck in India despite repeatedly announcing that he wants to fly back to the UAE to clear his name.
“It’s interesting that Shetty has sought damages of $7 billion plus – which is more or less the same amount that was siphoned off from NMC’s books while he was holding senior positions in the healthcare group,” said a senior banker closely involved in the rescue act that the hospital operator went through since April 2020 after finding that loans taken from the banks were never reported in the books.
“The financial misdeeds happened in the UAE – involving US courts is more of a diversionary play, that’s how I see it. Fleecing of NMC’s funds/assets between 2012 and end 2019 happened in the UAE and involved parties based in the country. Justice too will need to be served in the UAE.
“It was NMC funds that got diverted, not Shetty’s. if at all anyone has a claim on damages, it is NMC’s lenders and creditors, most notably ADCB.”
Some sources say that getting the matter into a US court is double-edged – US-based pension funds had shareholding in NMC and if Shetty himself gets implicated in any way, it will set off more problems. “Such deeds would be viewed quite adversely in the US – opening legal proceedings in the US courts could be a potential can of worms,” said the banker.
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| Dr B.R. Shetty, founded NMC Healthcare in 1974. The company was listed on the FTSE in late 2012, and in 2017 relinquished the CEO position and became non-executive chairman.Image Credit: Gulf News Archive |
Will Dr. B.R. Shetty win it in the US? More specifically, in a New York court of law, where he has sought damages totalling more than $7 billion against his former audit firm, banks, and senior executives of Abu Dhabi headquartered NMC Health, the UAE Exchange Centre and NeoPharma, a pharmaceutical business that he owns.
Informed sources in the UAE who had dealt with Shetty in the past are baffled that he has taken on a legal battle in the US despite being involved in sundry legal issues in the UAE, in the UK courts and in India. His assets are under freeze through various court orders, and he remains stuck in India despite repeatedly announcing that he wants to fly back to the UAE to clear his name.
“It’s interesting that Shetty has sought damages of $7 billion plus – which is more or less the same amount that was siphoned off from NMC’s books while he was holding senior positions in the healthcare group,” said a senior banker closely involved in the rescue act that the hospital operator went through since April 2020 after finding that loans taken from the banks were never reported in the books.
“The financial misdeeds happened in the UAE – involving US courts is more of a diversionary play, that’s how I see it. Fleecing of NMC’s funds/assets between 2012 and end 2019 happened in the UAE and involved parties based in the country. Justice too will need to be served in the UAE.
“It was NMC funds that got diverted, not Shetty’s. if at all anyone has a claim on damages, it is NMC’s lenders and creditors, most notably ADCB.”
Some sources say that getting the matter into a US court is double-edged – US-based pension funds had shareholding in NMC and if Shetty himself gets implicated in any way, it will set off more problems. “Such deeds would be viewed quite adversely in the US – opening legal proceedings in the US courts could be a potential can of worms,” said the banker.
#SaudiArabia Halts Sale of One of World’s Biggest Water Plants - Bloomberg
Saudi Arabia Halts Sale of One of World’s Biggest Water Plants - Bloomberg
Saudi Arabia has halted the sale of one of the world’s biggest desalination plants citing the impact of the coronavirus pandemic on the deal, which had attracted interest from investors including France’s Engie SA and Riyadh-based Acwa Power.
The Ras Al Khair desalination and power plant, on Saudi Arabia’s east coast, had cost more than $7 billion to build. The suspension is a setback for the kingdom’s privatization plans, which the government had been hoping to accelerate this year.
“One of the main reasons for the cancellation of Ras Al Khair was the economic conditions resulting from the pandemic and its effect on transactions of this size,” a spokesman for the country’s National Centre for Privatization said on Monday.
Bids from investors showed the deal “will have a limited contribution” to the government’s objective, he said, and the government will continue to tender new public private partnership projects and privatizations.
The kingdom aims to raise about $38 billion over the next four years through privatizations, Finance Minister Mohammed Al Jadaan told the Financial Times in May. But previous targets for revenue-raising privatizations have been missed.
The sale of a stake in the Ras Al Khair plant has been in the works since at least 2017, when BNP Paribas was appointed as financial adviser. The country shortlisted bidders earlier this year, including JERA Co. and Marubeni Corp. of Japan, and India’s NTPC Ltd.
The plant, which serves the capital of Riyadh and eastern parts of the kingdom, produces 1.05 million cubic meters of desalinated water per day and 2.65 gigawatts of power.
The winner was supposed to acquire 60% of the facility, while also managing and operating it. Saudi Arabia, much of which is desert, relies heavily on desalinated water.
Saudi Arabia has halted the sale of one of the world’s biggest desalination plants citing the impact of the coronavirus pandemic on the deal, which had attracted interest from investors including France’s Engie SA and Riyadh-based Acwa Power.
The Ras Al Khair desalination and power plant, on Saudi Arabia’s east coast, had cost more than $7 billion to build. The suspension is a setback for the kingdom’s privatization plans, which the government had been hoping to accelerate this year.
“One of the main reasons for the cancellation of Ras Al Khair was the economic conditions resulting from the pandemic and its effect on transactions of this size,” a spokesman for the country’s National Centre for Privatization said on Monday.
Bids from investors showed the deal “will have a limited contribution” to the government’s objective, he said, and the government will continue to tender new public private partnership projects and privatizations.
The kingdom aims to raise about $38 billion over the next four years through privatizations, Finance Minister Mohammed Al Jadaan told the Financial Times in May. But previous targets for revenue-raising privatizations have been missed.
The sale of a stake in the Ras Al Khair plant has been in the works since at least 2017, when BNP Paribas was appointed as financial adviser. The country shortlisted bidders earlier this year, including JERA Co. and Marubeni Corp. of Japan, and India’s NTPC Ltd.
The plant, which serves the capital of Riyadh and eastern parts of the kingdom, produces 1.05 million cubic meters of desalinated water per day and 2.65 gigawatts of power.
The winner was supposed to acquire 60% of the facility, while also managing and operating it. Saudi Arabia, much of which is desert, relies heavily on desalinated water.
CB #UAE issues new anti-money laundering guidance for financial institutions | ZAWYA MENA Edition
CBUAE issues new anti-money laundering guidance for financial institutions | ZAWYA MENA Edition
The Central Bank of the UAE (CBUAE) on Monday issued a new guidance on anti-money laundering and combatting the financing of terrorism (AML/CFT) for its licensed financial institutions (LFIs) on the implementation of targeted financial sanctions (TFS).
The newly issued guidance is supplementary to the one on TFS for financial institutions and designated non-financial business and professions, issued in May 2021, the central bank said in a statement.
According to the new guidelines LFIs should develop, implement and regularly update an appropriate sanction compliance programme.
This should be applied across their institutions, including branches, subsidiaries, and other entities in which LFIs hold a majority interest.
LFIs must register on the Executive Office’s website to receive automated emailed notifications on the listing and de-listing of individuals or entities in the United Nations Consolidated List and the Local Terrorist List.
They are required to regularly screen their databases and transactions against the names that appear on the lists.
When a match to a listing is found through the screening process, LFIs must, within 24 hours without delay and prior notice, freeze the funds of the listed individuals or entities.
LFIs must immediately notify CBUAE, as well as the Executive Office, of any freezing measures and/or attempted transactions, the guidelines stated.
Khaled Mohamed Balama, Governor of CBUAE, said: “The threat of money laundering and terrorist financing on the UAE’s financial system is one that we aim to address through rigorous regulatory oversight and continuous clarification of LFIs’ obligations.” He said the regulator will continue to issue many more such guidelines in future.
The Central Bank of the UAE (CBUAE) on Monday issued a new guidance on anti-money laundering and combatting the financing of terrorism (AML/CFT) for its licensed financial institutions (LFIs) on the implementation of targeted financial sanctions (TFS).
The newly issued guidance is supplementary to the one on TFS for financial institutions and designated non-financial business and professions, issued in May 2021, the central bank said in a statement.
According to the new guidelines LFIs should develop, implement and regularly update an appropriate sanction compliance programme.
This should be applied across their institutions, including branches, subsidiaries, and other entities in which LFIs hold a majority interest.
LFIs must register on the Executive Office’s website to receive automated emailed notifications on the listing and de-listing of individuals or entities in the United Nations Consolidated List and the Local Terrorist List.
They are required to regularly screen their databases and transactions against the names that appear on the lists.
When a match to a listing is found through the screening process, LFIs must, within 24 hours without delay and prior notice, freeze the funds of the listed individuals or entities.
LFIs must immediately notify CBUAE, as well as the Executive Office, of any freezing measures and/or attempted transactions, the guidelines stated.
Khaled Mohamed Balama, Governor of CBUAE, said: “The threat of money laundering and terrorist financing on the UAE’s financial system is one that we aim to address through rigorous regulatory oversight and continuous clarification of LFIs’ obligations.” He said the regulator will continue to issue many more such guidelines in future.
MIDEAST STOCKS #AbuDhabi hits record high again; other major Gulf markets mixed | Reuters
MIDEAST STOCKS Abu Dhabi hits record high again; other major Gulf markets mixed | Reuters
Major stock markets in the Gulf ended mixed on Monday, a day after the bourses were in the black as they reopened after a long Eid break, with the Abu Dhabi index reaching a new record high.
During holidays in the Gulf, traders typically cash in shares and are generally cautious of any developments in global markets while their bourses are closed.
In Abu Dhabi, the index (.ADI) advanced 0.9%, hitting a new record high, buoyed by a 2.9% rise in conglomerate International Holding (IHC.AD) and a 1.1% increase in telecoms firm Etisalat (ETISALAT.AD).
Elsewhere, Dana Gas (DANA.AD) gained 2%, extending gains for a second consecutive session, after the energy firm won an arbitration on the sale of assets in Egypt.
The company said in April that IPR Wastani Petroleum Ltd, a member of the IPR Energy Group, had requested arbitration after Dana Gas cancelled a sale of oil and gas assets in Egypt. read more
Abu Dhabi will reduce business setup fees to 1,000 dirhams ($272.27), a 94% reduction from current rates, effective from July 27, as part of efforts to enable the private sector, Abu Dhabi media office said on Sunday. read more
Saudi Arabia's benchmark index (.TASI) edged up 0.2%, supported by a 0.6% gain in Al Rajhi Bank (1120.SE) and a 2.1% rise in Dr Sulaiman Al-Habib Medical Services (4013.SE).
Dubai's main share index (.DFMGI) dropped 0.6%, weighed down by a 1.1% fall in top lender Emirates NBD Bank (ENBD.DU), ahead of its board meeting on Tuesday to discuss first-half financial statements.
Blue-chip developer Emaar Properties (EMAR.DU) retreated 1.5%.
The Qatari benchmark (.QSI) declined 0.9%, with Qatar Islamic Bank (QISB.QA) losing 1.7% and Commercial Bank (COMB.QA) declining 2.5%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.5% lower, as most of the stocks on the index were in negative territory including Commercial International Bank (COMI.CA), which dropped 1.1%.
Major stock markets in the Gulf ended mixed on Monday, a day after the bourses were in the black as they reopened after a long Eid break, with the Abu Dhabi index reaching a new record high.
During holidays in the Gulf, traders typically cash in shares and are generally cautious of any developments in global markets while their bourses are closed.
In Abu Dhabi, the index (.ADI) advanced 0.9%, hitting a new record high, buoyed by a 2.9% rise in conglomerate International Holding (IHC.AD) and a 1.1% increase in telecoms firm Etisalat (ETISALAT.AD).
Elsewhere, Dana Gas (DANA.AD) gained 2%, extending gains for a second consecutive session, after the energy firm won an arbitration on the sale of assets in Egypt.
The company said in April that IPR Wastani Petroleum Ltd, a member of the IPR Energy Group, had requested arbitration after Dana Gas cancelled a sale of oil and gas assets in Egypt. read more
Abu Dhabi will reduce business setup fees to 1,000 dirhams ($272.27), a 94% reduction from current rates, effective from July 27, as part of efforts to enable the private sector, Abu Dhabi media office said on Sunday. read more
Saudi Arabia's benchmark index (.TASI) edged up 0.2%, supported by a 0.6% gain in Al Rajhi Bank (1120.SE) and a 2.1% rise in Dr Sulaiman Al-Habib Medical Services (4013.SE).
Dubai's main share index (.DFMGI) dropped 0.6%, weighed down by a 1.1% fall in top lender Emirates NBD Bank (ENBD.DU), ahead of its board meeting on Tuesday to discuss first-half financial statements.
Blue-chip developer Emaar Properties (EMAR.DU) retreated 1.5%.
The Qatari benchmark (.QSI) declined 0.9%, with Qatar Islamic Bank (QISB.QA) losing 1.7% and Commercial Bank (COMB.QA) declining 2.5%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.5% lower, as most of the stocks on the index were in negative territory including Commercial International Bank (COMI.CA), which dropped 1.1%.
#Saudi telco Mobily reports 32% jump in second-quarter profit as revenue grows
Saudi telco Mobily reports 32% jump in second-quarter profit as revenue grows
Saudi telecoms company Etihad Etisalat, better known as Mobily, has reported a 32 per cent increase in second-quarter profit on the back of higher revenue as the Arab world’s largest economy recovers from the coronavirus-induced slowdown.
Net profit after zakat and tax for the period ending June 30 rose to 244 million Saudi riyals ($65m), the company said in a statement on Monday to the kingdom's Tadawul stock exchange, where its shares are traded. Revenue during the period climbed 5 per cent year-on-year to 3.7 billion riyals ($987.9m).
“Mobily continued to grow its revenues for the second quarter of 2021 … mainly attributed to the growth in business unit revenues, the improvement in consumer revenues and the growth of FTTH [fibre-to-the-home] active base,” the company said.
The UAE's biggest telecom operator Etisalat owns a 28 per cent stake in Mobily, which was founded in 2004.
Saudi telecoms company Etihad Etisalat, better known as Mobily, has reported a 32 per cent increase in second-quarter profit on the back of higher revenue as the Arab world’s largest economy recovers from the coronavirus-induced slowdown.
Net profit after zakat and tax for the period ending June 30 rose to 244 million Saudi riyals ($65m), the company said in a statement on Monday to the kingdom's Tadawul stock exchange, where its shares are traded. Revenue during the period climbed 5 per cent year-on-year to 3.7 billion riyals ($987.9m).
“Mobily continued to grow its revenues for the second quarter of 2021 … mainly attributed to the growth in business unit revenues, the improvement in consumer revenues and the growth of FTTH [fibre-to-the-home] active base,” the company said.
The UAE's biggest telecom operator Etisalat owns a 28 per cent stake in Mobily, which was founded in 2004.
IMF Says #Bahrain Needs ‘Urgent Fiscal Adjustment’ After Virus - Bloomberg
IMF Says Bahrain Needs ‘Urgent Fiscal Adjustment’ After Virus - Bloomberg
Bahrain has to do more to get its finances in shape, even if it manages to round up additional regional support, according to the International Monetary Fund.
Once it recovers from the economic downturn instigated by the coronavirus pandemic, the island nation will likely need “an urgent fiscal adjustment,” Ali Al-Eyd, the fund’s Bahrain mission chief, said in an interview with Bloomberg.
“Whether that counts with Gulf Cooperation Council support -- which might help facilitate that adjustment -- or not, that’s still the bottom line,” he said.
Even before the pandemic struck, the smallest Gulf nation was in financial distress, forced to shore up its finances with a $10 billion bailout package from wealthier neighbors in 2018.
Bahrain’s budget deficit is expected to shrink by half this year after plummeting oil prices and the virus sent it widening to a record 18% of economic output in 2020, according to IMF estimates. Going forward, though, it’s expected to start growing again until at least 2026.
The fund projects Bahrain’s economy will grow 3.3% this year, but that March estimate could be revised to account for the rebound in oil prices, Al-Eyd said.
Bahrain has to do more to get its finances in shape, even if it manages to round up additional regional support, according to the International Monetary Fund.
Once it recovers from the economic downturn instigated by the coronavirus pandemic, the island nation will likely need “an urgent fiscal adjustment,” Ali Al-Eyd, the fund’s Bahrain mission chief, said in an interview with Bloomberg.
“Whether that counts with Gulf Cooperation Council support -- which might help facilitate that adjustment -- or not, that’s still the bottom line,” he said.
Even before the pandemic struck, the smallest Gulf nation was in financial distress, forced to shore up its finances with a $10 billion bailout package from wealthier neighbors in 2018.
Bahrain’s budget deficit is expected to shrink by half this year after plummeting oil prices and the virus sent it widening to a record 18% of economic output in 2020, according to IMF estimates. Going forward, though, it’s expected to start growing again until at least 2026.
The fund projects Bahrain’s economy will grow 3.3% this year, but that March estimate could be revised to account for the rebound in oil prices, Al-Eyd said.
Oil falls $1/bbl as coronavirus, floods threaten demand | Reuters
Oil falls $1/bbl as coronavirus, floods threaten demand | Reuters
Oil prices fell nearly $1 on Monday as concerns about fuel demand from the spread of COVID-19 variants, as well as floods in China, offset expectations of tight supplies through the rest of the year.
Brent crude futures for September fell 95 cents, or 1.3%, to $73.15 a barrel by 0627 GMT while U.S. Texas Intermediate crude was at $71.11 a barrel, down 96 cents. Earlier, both contracts dipped just over $1.
Coronavirus cases continued to rise over the weekend with some countries posting record daily increases and extending lockdown measures that could slow oil demand. China, the world's largest crude importer, has also seen a rise in COVID-19 cases while the nation battled severe floods and a typhoon in central and eastern parts of the country. read more
Also, Beijing's crackdown on the misuse of import quotas combined with the impact of high crude prices could see China's growth in oil imports sink to the lowest in two decades in 2021, despite an expected rise in refining rates in the second half. read more
"The delta variant is still spreading and China has started to clamp down on teapots so their import growth would not be that much," said Avtar Sandu, a senior commodities manager at Singapore's Phillips Futures, referring to independent refiners.
Oil prices fell nearly $1 on Monday as concerns about fuel demand from the spread of COVID-19 variants, as well as floods in China, offset expectations of tight supplies through the rest of the year.
Brent crude futures for September fell 95 cents, or 1.3%, to $73.15 a barrel by 0627 GMT while U.S. Texas Intermediate crude was at $71.11 a barrel, down 96 cents. Earlier, both contracts dipped just over $1.
Coronavirus cases continued to rise over the weekend with some countries posting record daily increases and extending lockdown measures that could slow oil demand. China, the world's largest crude importer, has also seen a rise in COVID-19 cases while the nation battled severe floods and a typhoon in central and eastern parts of the country. read more
Also, Beijing's crackdown on the misuse of import quotas combined with the impact of high crude prices could see China's growth in oil imports sink to the lowest in two decades in 2021, despite an expected rise in refining rates in the second half. read more
"The delta variant is still spreading and China has started to clamp down on teapots so their import growth would not be that much," said Avtar Sandu, a senior commodities manager at Singapore's Phillips Futures, referring to independent refiners.