Oil falls on U.S. crude stock build, Delta variant spread | Reuters
Oil prices fell for a third day in a row to a two-week low on Wednesday on a surprise build in U.S. crude stockpiles, negative U.S. economic report and worries the spread of the coronavirus Delta variant will weigh on global energy demand.
Traders noted the oil price drop came despite reports of increased Mideast geopolitical tensions.
Brent futures fell $2.03, or 2.8%, to settle at $70.38 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.41, or 3.4%, to settle at $68.15.
That was the lowest close for both benchmarks since July 20.
The U.S. Energy Information Administration (EIA) said crude stockpiles rose by an unexpected 3.6 million barrels last week, while gasoline inventories fell by a bigger-than-forecast 5.3 million barrels.
Wednesday, 4 August 2021
Gulf buy now, pay later firm Tabby raises $50 mln, to speed up expansion | Reuters
Gulf buy now, pay later firm Tabby raises $50 mln, to speed up expansion | Reuters
Buy now, pay later firm Tabby will accelerate expansion plans into new Arab markets after raising $50 million in its latest funding round, giving it a $300 million valuation, it said on Wednesday.
Tabby, whose investors include Abu Dhabi state fund Mubadala, is already available in Saudi Arabia and the United Arab Emirates where consumers can use its services with over 2,000 merchants including with brands such as Adidas and Ikea.
Chief Executive Hosam Arab told Reuters Tabby would be operational in Qatar, Kuwait, Oman and Bahrain in the next few months and would expand into North Africa "towards the beginning of next year."
"This investment will enable us to deliver the most rewarding and relevant shopping experience for regional consumers and retailers," he said in an earlier statement.
Buy now, pay later firm Tabby will accelerate expansion plans into new Arab markets after raising $50 million in its latest funding round, giving it a $300 million valuation, it said on Wednesday.
Tabby, whose investors include Abu Dhabi state fund Mubadala, is already available in Saudi Arabia and the United Arab Emirates where consumers can use its services with over 2,000 merchants including with brands such as Adidas and Ikea.
Chief Executive Hosam Arab told Reuters Tabby would be operational in Qatar, Kuwait, Oman and Bahrain in the next few months and would expand into North Africa "towards the beginning of next year."
"This investment will enable us to deliver the most rewarding and relevant shopping experience for regional consumers and retailers," he said in an earlier statement.
GCC economies expected to grow 2.2% this year, says World Bank | Reuters
GCC economies expected to grow 2.2% this year, says World Bank | Reuters
Economies of the Gulf Cooperation Council (GCC) will likely grow at an aggregate 2.2% this year after a 4.8% contraction last year caused by the pandemic and lower oil prices, the World Bank said on Wednesday.
“With recent progress made with the rollout of the COVID-19 vaccine globally and with the revival of production and trade worldwide, the prospects for an economic recovery are firmer now than at the end of last year,” it said in a research report.
“Although downside risks remain, the forecast stands for an aggregate GCC economic turnaround of 2.2% in 2021 and an annual average growth of 3.3% in 2022–23.”
It remains vital for GCC countries - which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates - to diversify their economies, the World Bank said, as oil revenues account for over 70% of total government revenues in most GCC countries.
It said it expects Kuwait and Qatar to introduce a value-added tax this year, following the example of other GCC states that have implemented the revenue-diversifying measure in different phases over the last few years.
On the fiscal side, most GCC countries are expected to continue to post deficits over the coming years, the World Bank said, after shortfalls intensified last year because of the coronavirus crisis.
The countries that posted the largest deficits in 2020 - Bahrain, Kuwait and Oman - are expected to remain in deficit until 2023, but with narrower ratios than in the 2020 downturn.
While a rebound in oil prices may lift economic prospects in the short term, the World Bank said downside risks to its outlook are “extremely high” because of the region’s heavy exposure to global oil demand and the service industries.
“Mobility restrictions including for international travel may hurt attendance at future high-profile events in the GCC—the 2020 (rescheduled to 2021) World Expo in the UAE and the 2022 Federation Internationale de Football Association (FIFA) World Cup in Qatar”, it said.
Economies of the Gulf Cooperation Council (GCC) will likely grow at an aggregate 2.2% this year after a 4.8% contraction last year caused by the pandemic and lower oil prices, the World Bank said on Wednesday.
“With recent progress made with the rollout of the COVID-19 vaccine globally and with the revival of production and trade worldwide, the prospects for an economic recovery are firmer now than at the end of last year,” it said in a research report.
“Although downside risks remain, the forecast stands for an aggregate GCC economic turnaround of 2.2% in 2021 and an annual average growth of 3.3% in 2022–23.”
It remains vital for GCC countries - which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates - to diversify their economies, the World Bank said, as oil revenues account for over 70% of total government revenues in most GCC countries.
It said it expects Kuwait and Qatar to introduce a value-added tax this year, following the example of other GCC states that have implemented the revenue-diversifying measure in different phases over the last few years.
On the fiscal side, most GCC countries are expected to continue to post deficits over the coming years, the World Bank said, after shortfalls intensified last year because of the coronavirus crisis.
The countries that posted the largest deficits in 2020 - Bahrain, Kuwait and Oman - are expected to remain in deficit until 2023, but with narrower ratios than in the 2020 downturn.
While a rebound in oil prices may lift economic prospects in the short term, the World Bank said downside risks to its outlook are “extremely high” because of the region’s heavy exposure to global oil demand and the service industries.
“Mobility restrictions including for international travel may hurt attendance at future high-profile events in the GCC—the 2020 (rescheduled to 2021) World Expo in the UAE and the 2022 Federation Internationale de Football Association (FIFA) World Cup in Qatar”, it said.
Gulf economies are ready to take on clean energy and hydrogen projects | Analysis – Gulf News
Gulf economies are ready to take on clean energy and hydrogen projects | Analysis – Gulf News
The global energy industry has seen its share of forecasts related to what could drive the next wave of growth – or even what hurdles are likely to come about in its way. This is where so much has been debated about the prospects for renewable energy projects and what role the Gulf oil producers will have in shaping such a future. Can Gulf economies make that transition to a clean energy future?
For example, hydrogen, which is one of the most important forms of that alternative energy in it two forms green and blue - is likely to be widely used in transportation, industry, fertilizer production and more. Hydrogen as a fuel is produced through electricity by chemically separating it from oxygen.
Green hydrogen is produced by using renewable energy sources such as solar, which does not result in pollution. Blue hydrogen is produced using fossil energy sources, but results in polluting emissions. No one can outdo GCC economies in hydrogen production given their access to solar energy and the fact that they have huge oil and gas reserves. c.
The UAE joined the Global Hydrogen Council and has developed a National Clean Energy Strategy 2050, where ADNOC produces 300,000 metric tonnes of hydrogen annually. This week, the Abu Dhabi energy giant exported the first cargo of blue hydrogen to Japan. The UAE has many new projects through global partnerships, such as the setting of a joint working group with Russia on hydrogen energy. And Dubai launched the first green hydrogen project of its kind in the region using solar power.
The global energy industry has seen its share of forecasts related to what could drive the next wave of growth – or even what hurdles are likely to come about in its way. This is where so much has been debated about the prospects for renewable energy projects and what role the Gulf oil producers will have in shaping such a future. Can Gulf economies make that transition to a clean energy future?
For example, hydrogen, which is one of the most important forms of that alternative energy in it two forms green and blue - is likely to be widely used in transportation, industry, fertilizer production and more. Hydrogen as a fuel is produced through electricity by chemically separating it from oxygen.
Green hydrogen is produced by using renewable energy sources such as solar, which does not result in pollution. Blue hydrogen is produced using fossil energy sources, but results in polluting emissions. No one can outdo GCC economies in hydrogen production given their access to solar energy and the fact that they have huge oil and gas reserves. c.
The UAE joined the Global Hydrogen Council and has developed a National Clean Energy Strategy 2050, where ADNOC produces 300,000 metric tonnes of hydrogen annually. This week, the Abu Dhabi energy giant exported the first cargo of blue hydrogen to Japan. The UAE has many new projects through global partnerships, such as the setting of a joint working group with Russia on hydrogen energy. And Dubai launched the first green hydrogen project of its kind in the region using solar power.
Mubadala Capital's SPAC Blue Whale Acquisition prices IPO at $10 per share | ZAWYA MENA Edition
Mubadala Capital's SPAC Blue Whale Acquisition prices IPO at $10 per share | ZAWYA MENA Edition
Blue Whale Acquisition I, a blank check company formed by Abu Dhabi’s Mubadala Capital targeting media and entertainment, announced the pricing of its initial public offering (IPO) of 20 million shares at $10 per unit on Wednesday.
The units will be listed on the Nasdaq Capital Market in the US and trade under the ticker symbol “BWCAU” beginning on August 4, 2021.
Blue Whale is sponsored by Mubadala Capital, the asset management subsidiary of Mubadala Investment Company, the Abu Dhabi-based sovereign investor with over $243 billion of assets under management.
Goldman Sachs & Co LLC and BofA Securities are acting as book-running managers in the offering. Blue Whale has granted the underwriters a 45-day option to purchase up to 3 million additional units at the initial public offering price to cover over-allotments, if any.
Blue Whale, a media and entertainment SPAC (special purpose acquisition company), is led by Maxime Franzetti, head of Public Equities and SPACs at Mubadala Capital, Adib Mattar, head of Private Equity at Mubadala Capital and Russ Pillar, senior advisor to Mubadala Capital.
Each unit offered for sale consists of one Class A ordinary share, and one-fourth of one warrant to purchase one Class A ordinary share, for $10.00 per unit.
In addition, MIC Capital Partners (Public) Parallel Cayman, LP, the direct parent of the sponsor, has agreed to enter into a forward purchase agreement that will provide for the purchase, at its discretion, of up to $50 million forward purchase units, each consisting of one Class A ordinary share, or a forward purchase share, and one-fourth of one warrant to purchase one Class A ordinary share, or a forward purchase warrant, for $10.00 per unit, in a private placement to close substantially concurrently with the closing of the initial business combination.
MIC Capital Partners has also committed to purchase 2 million units of the 20 million public shares sold in this offering at the offering price of $10 per unit.
Blue Whale Acquisition I, a blank check company formed by Abu Dhabi’s Mubadala Capital targeting media and entertainment, announced the pricing of its initial public offering (IPO) of 20 million shares at $10 per unit on Wednesday.
The units will be listed on the Nasdaq Capital Market in the US and trade under the ticker symbol “BWCAU” beginning on August 4, 2021.
Blue Whale is sponsored by Mubadala Capital, the asset management subsidiary of Mubadala Investment Company, the Abu Dhabi-based sovereign investor with over $243 billion of assets under management.
Goldman Sachs & Co LLC and BofA Securities are acting as book-running managers in the offering. Blue Whale has granted the underwriters a 45-day option to purchase up to 3 million additional units at the initial public offering price to cover over-allotments, if any.
Blue Whale, a media and entertainment SPAC (special purpose acquisition company), is led by Maxime Franzetti, head of Public Equities and SPACs at Mubadala Capital, Adib Mattar, head of Private Equity at Mubadala Capital and Russ Pillar, senior advisor to Mubadala Capital.
Each unit offered for sale consists of one Class A ordinary share, and one-fourth of one warrant to purchase one Class A ordinary share, for $10.00 per unit.
In addition, MIC Capital Partners (Public) Parallel Cayman, LP, the direct parent of the sponsor, has agreed to enter into a forward purchase agreement that will provide for the purchase, at its discretion, of up to $50 million forward purchase units, each consisting of one Class A ordinary share, or a forward purchase share, and one-fourth of one warrant to purchase one Class A ordinary share, or a forward purchase warrant, for $10.00 per unit, in a private placement to close substantially concurrently with the closing of the initial business combination.
MIC Capital Partners has also committed to purchase 2 million units of the 20 million public shares sold in this offering at the offering price of $10 per unit.
MIDEAST STOCKS #Dubai gains as #UAE eases travel curbs; other markets mixed | Reuters
MIDEAST STOCKS Dubai gains as UAE eases travel curbs; other markets mixed | Reuters
Major bourses in the Gulf ended mixed on Wednesday, knocked by tensions in the region after the seizure of an oil product tanker, although an easing of UAE travel curbs boosted the Dubai index.
On Tuesday, three maritime security sources claimed Iranian-backed forces seized an oil product tanker off the coast of the United Arab Emirates. Iran denied the reports. read more
"The latest news about an oil tanker being seized by Iran-backed forces increases tension levels and the likelihood that oil prices could climb and stock markets could slip," said Daniel Takieddine, senior market analyst at FXPrimus.
Brent crude oil futures , however, were down 1.8%, or $1.30, to $71.11 a barrel by 0122 GMT, as the spread of the coronavirus Delta variant in top consuming countries outweighed the impact of Mideast geopolitical tensions and a fall in U.S. inventories.
Saudi Arabia's benchmark index (.TASI) dropped 0.4%, with Al Rajhi Bank (1120.SE) losing 0.5%, while Savola Group (2050.SE) declined 4.5%.
The food retailer reported a second-quarter net profit of 200 million riyals ($53.33 million) down from 409.6 million riyals year ago.
The kingdom's foreign minister said on Tuesday he saw an emboldened Iran acting in a negative manner around the Middle East, endangering shipping, arming Yemen's Houthis and contributing to political deadlock in Lebanon. read more
In Abu Dhabi, the index (.ADI) lost 0.4%, pressured by a 1.2% fall in the country's largest lender First Abu Dhabi Bank (FAB.AD).
The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, advanced 0.6%, with Dubai Islamic Bank (DISB.DU) advancing 2.8%.
Dubai's state airport operator expects a surge in passenger traffic over the coming weeks and months, its chief executive said on Wednesday, after the United Arab Emirates announced an easing of travel restrictions from African and Asian countries. read more
The Gulf state, a major international travel hub, on Tuesday said it would lift a ban on transit flights, including from major market India. read more
Elsewhere, budget airliner Air Arabia (AIRA.DU) was up 0.7%.
The Qatari benchmark (.QSI) added 0.1%, helped by a 0.6% increase in Qatar National Bank (QNBK.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) eased 0.1%, hit by a 2.8% fall in Fawry for Banking Technology and Electronic (FWRY.CA).
Major bourses in the Gulf ended mixed on Wednesday, knocked by tensions in the region after the seizure of an oil product tanker, although an easing of UAE travel curbs boosted the Dubai index.
On Tuesday, three maritime security sources claimed Iranian-backed forces seized an oil product tanker off the coast of the United Arab Emirates. Iran denied the reports. read more
"The latest news about an oil tanker being seized by Iran-backed forces increases tension levels and the likelihood that oil prices could climb and stock markets could slip," said Daniel Takieddine, senior market analyst at FXPrimus.
Brent crude oil futures , however, were down 1.8%, or $1.30, to $71.11 a barrel by 0122 GMT, as the spread of the coronavirus Delta variant in top consuming countries outweighed the impact of Mideast geopolitical tensions and a fall in U.S. inventories.
Saudi Arabia's benchmark index (.TASI) dropped 0.4%, with Al Rajhi Bank (1120.SE) losing 0.5%, while Savola Group (2050.SE) declined 4.5%.
The food retailer reported a second-quarter net profit of 200 million riyals ($53.33 million) down from 409.6 million riyals year ago.
The kingdom's foreign minister said on Tuesday he saw an emboldened Iran acting in a negative manner around the Middle East, endangering shipping, arming Yemen's Houthis and contributing to political deadlock in Lebanon. read more
In Abu Dhabi, the index (.ADI) lost 0.4%, pressured by a 1.2% fall in the country's largest lender First Abu Dhabi Bank (FAB.AD).
The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, advanced 0.6%, with Dubai Islamic Bank (DISB.DU) advancing 2.8%.
Dubai's state airport operator expects a surge in passenger traffic over the coming weeks and months, its chief executive said on Wednesday, after the United Arab Emirates announced an easing of travel restrictions from African and Asian countries. read more
The Gulf state, a major international travel hub, on Tuesday said it would lift a ban on transit flights, including from major market India. read more
Elsewhere, budget airliner Air Arabia (AIRA.DU) was up 0.7%.
The Qatari benchmark (.QSI) added 0.1%, helped by a 0.6% increase in Qatar National Bank (QNBK.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) eased 0.1%, hit by a 2.8% fall in Fawry for Banking Technology and Electronic (FWRY.CA).
Oil prices fall on U.S. crude stock build, Delta variant spread | Reuters
Oil prices fall on U.S. crude stock build, Delta variant spread | Reuters
Oil prices fell for a third day in a row to a two-week low on Wednesday on a surprise build in U.S. crude stockpiles and as the spread of the coronavirus Delta variant outweighed the impact of Mideast geopolitical tensions.
The U.S. Energy Information Administration (EIA) said crude stockpiles rose 3.6 million barrels during the week ended July 30.
That compares with the 3.1-million barrel draw analysts forecast in a Reuters poll and the 0.9-million barrel decline the American Petroleum Institute (API) reported on Tuesday. ,
Brent futures fell $1.09, or 1.5%, to $71.32 a barrel by 10:51 a.m. EDT (1451 GMT), while U.S. West Texas Intermediate (WTI) crude fell $1.43, or 2.0%, to $69.13.
Oil prices fell for a third day in a row to a two-week low on Wednesday on a surprise build in U.S. crude stockpiles and as the spread of the coronavirus Delta variant outweighed the impact of Mideast geopolitical tensions.
The U.S. Energy Information Administration (EIA) said crude stockpiles rose 3.6 million barrels during the week ended July 30.
That compares with the 3.1-million barrel draw analysts forecast in a Reuters poll and the 0.9-million barrel decline the American Petroleum Institute (API) reported on Tuesday. ,
Brent futures fell $1.09, or 1.5%, to $71.32 a barrel by 10:51 a.m. EDT (1451 GMT), while U.S. West Texas Intermediate (WTI) crude fell $1.43, or 2.0%, to $69.13.
Aramco Raises Asia, U.S. Oil Prices in Sign Demand Seen Rising - Bloomberg
Aramco Raises Asia, U.S. Oil Prices in Sign Demand Seen Rising - Bloomberg
Saudi Arabia raised oil for prices for buyers in Asia and the U.S. for September in a sign the world’s largest crude exporter sees demand continuing to recover despite a surge in coronavirus cases in some of the world’s main energy importers.
OPEC+, the oil-producers’ group led by the Saudis and Russia, agreed last month to ramp up production over the rest of the year and supply a market that most analysts see as facing a dearth of barrels amid a global economic recovery from the worst of the pandemic.
Saudi Aramco will increase its key Arab Light grade for Asia by 30 cents from August to $3 a barrel above the state company’s benchmark, according to a statement. That’s slightly less than the 50-cent increase seen in a Bloomberg survey. Aramco is raising pricing for other grades to the region by between 20 and 60 cents.
Saudi Arabia sends more than 60% of its crude exports to Asia, with China, South Korea, Japan and India the biggest buyers.
Saudi Arabia raised oil for prices for buyers in Asia and the U.S. for September in a sign the world’s largest crude exporter sees demand continuing to recover despite a surge in coronavirus cases in some of the world’s main energy importers.
OPEC+, the oil-producers’ group led by the Saudis and Russia, agreed last month to ramp up production over the rest of the year and supply a market that most analysts see as facing a dearth of barrels amid a global economic recovery from the worst of the pandemic.
Saudi Aramco will increase its key Arab Light grade for Asia by 30 cents from August to $3 a barrel above the state company’s benchmark, according to a statement. That’s slightly less than the 50-cent increase seen in a Bloomberg survey. Aramco is raising pricing for other grades to the region by between 20 and 60 cents.
Saudi Arabia sends more than 60% of its crude exports to Asia, with China, South Korea, Japan and India the biggest buyers.
Oil prices fall as Delta variant spread weighs | Reuters
Oil prices fall as Delta variant spread weighs | Reuters
Oil prices fell on Wednesday as the spread of the coronavirus Delta variant in top consuming countries outweighed Mideast geopolitical tensions and a fall in U.S. inventories.
Brent crude oil futures were down 67 cents, or 0.9%, to $71.74 a barrel by 1144 GMT. U.S. West Texas Intermediate (WTI) crude fell 86 cents, or 1.2%, to $69.70 a barrel.
"Worries continue to grow over the spread of the Delta variant in China, which has weighed heavily on oil prices in recent days," analysts at bank ING said.
The United States and China, the world's two biggest oil consumers, are grappling with rapidly spreading outbreaks of the highly contagious Delta variant that analysts fear will limit fuel demand at a time when it traditionally rises in both countries.
Oil prices fell on Wednesday as the spread of the coronavirus Delta variant in top consuming countries outweighed Mideast geopolitical tensions and a fall in U.S. inventories.
Brent crude oil futures were down 67 cents, or 0.9%, to $71.74 a barrel by 1144 GMT. U.S. West Texas Intermediate (WTI) crude fell 86 cents, or 1.2%, to $69.70 a barrel.
"Worries continue to grow over the spread of the Delta variant in China, which has weighed heavily on oil prices in recent days," analysts at bank ING said.
The United States and China, the world's two biggest oil consumers, are grappling with rapidly spreading outbreaks of the highly contagious Delta variant that analysts fear will limit fuel demand at a time when it traditionally rises in both countries.
Iran's New President Sworn In as New Crisis Grips Gulf - Bloomberg video
Iran's New President Sworn In as New Crisis Grips Gulf - Bloomberg
Aathira Prasad, Director of Macroeconomics at Nasser Saidi & Associates discusses escalating tensions in the Gulf region as Iran's President Ebrahim Raisi is sworn in. She also shares her views on Egypt's rising food prices and the UAE's easing of restrictions for fully-vaccinated travellers from South Asia and Africa. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Aathira Prasad, Director of Macroeconomics at Nasser Saidi & Associates discusses escalating tensions in the Gulf region as Iran's President Ebrahim Raisi is sworn in. She also shares her views on Egypt's rising food prices and the UAE's easing of restrictions for fully-vaccinated travellers from South Asia and Africa. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Saudi Arabian Food Distributor Surges in Riyadh Trading Debut - Bloomberg
Saudi Arabian Food Distributor Surges in Riyadh Trading Debut - Bloomberg
Tanmiah Food Co. jumped 30% on its trading debut in Saudi Arabia, in another sign of pent up demand for initial public offerings in the kingdom.
Shares of the Saudi-based manufacturer and distributor of food and agricultural products surged to 87.1 riyals ($23.22) on Wednesday. More than 19,000 shares were traded by 10:18 a.m. in Riyadh.
Riyadh has been the hottest market for IPOs in the Middle East over the past two years, with new offerings oversubscribed mostly by local retail and institutional investors. Tanmiah is the third company to go public in the kingdom this year, after Theeb Rent A Car Co. and AlKhorayef Water & Power Technologies Co.
Tanmiah completed its book-building process for institutional subscription with a coverage ratio of 9,534%, setting the offer price at the top of its range. Saudi Fransi Capital is the financial adviser, lead manager, bookrunner, and underwriter.
Tanmiah Food Co. jumped 30% on its trading debut in Saudi Arabia, in another sign of pent up demand for initial public offerings in the kingdom.
Shares of the Saudi-based manufacturer and distributor of food and agricultural products surged to 87.1 riyals ($23.22) on Wednesday. More than 19,000 shares were traded by 10:18 a.m. in Riyadh.
Riyadh has been the hottest market for IPOs in the Middle East over the past two years, with new offerings oversubscribed mostly by local retail and institutional investors. Tanmiah is the third company to go public in the kingdom this year, after Theeb Rent A Car Co. and AlKhorayef Water & Power Technologies Co.
Tanmiah completed its book-building process for institutional subscription with a coverage ratio of 9,534%, setting the offer price at the top of its range. Saudi Fransi Capital is the financial adviser, lead manager, bookrunner, and underwriter.
#Saudi Wealth Fund Is Said to Hire Ex-HSBC Executive as Director - Bloomberg
Saudi Wealth Fund Is Said to Hire Ex-HSBC Executive as Director - Bloomberg
Saudi Arabia’s wealth fund appointed Omar Jahidi as its director of investments in the Middle East and North Africa, according to people familiar with the matter, the latest in a string of appointments to help expand its reach.
Jahidi, previously the director for investment banking advisory at HSBC Holdings Plc in Saudi Arabia, will be joining the Public Investment Fund in the coming weeks, the people said, asking not to be identified because the appointment hasn’t been made public.
He will report to Eyas AlDossari, head of investment advisory within the MENA investments division, who was formerly in charge of investment banking for Saudi Arabia at Goldman Sachs Group Inc. and also worked at HSBC.
The PIF, as the fund is known, didn’t immediately respond to requests for comment, while HSBC declined to comment.
The PIF has made a spate of senior appointments recently, naming Turqi Alnowaiser and Yazeed Alhumied as deputy governors and hiring Abdullah Shaker, who previously worked for Saudi AlBaraka Banking Group and HSBC.
Jahidi is joining the PIF as the fund expands rapidly, morphing from a largely domestically-focused holding company into an engine of Crown Prince Mohammed bin Salman’s plans to transform the kingdom’s economy.
Since 2015, the PIF’s assets under management have risen to $430 billion from about $150 billion. It has taken stakes in Uber Technologies Inc., put $45 billion into SoftBank’s Vision Fund, and backed electric vehicle maker Lucid Motors Inc. It’s also increased headcount to more than 1,000 from about 40.
Saudi Arabia’s wealth fund appointed Omar Jahidi as its director of investments in the Middle East and North Africa, according to people familiar with the matter, the latest in a string of appointments to help expand its reach.
Jahidi, previously the director for investment banking advisory at HSBC Holdings Plc in Saudi Arabia, will be joining the Public Investment Fund in the coming weeks, the people said, asking not to be identified because the appointment hasn’t been made public.
He will report to Eyas AlDossari, head of investment advisory within the MENA investments division, who was formerly in charge of investment banking for Saudi Arabia at Goldman Sachs Group Inc. and also worked at HSBC.
The PIF, as the fund is known, didn’t immediately respond to requests for comment, while HSBC declined to comment.
The PIF has made a spate of senior appointments recently, naming Turqi Alnowaiser and Yazeed Alhumied as deputy governors and hiring Abdullah Shaker, who previously worked for Saudi AlBaraka Banking Group and HSBC.
Jahidi is joining the PIF as the fund expands rapidly, morphing from a largely domestically-focused holding company into an engine of Crown Prince Mohammed bin Salman’s plans to transform the kingdom’s economy.
Since 2015, the PIF’s assets under management have risen to $430 billion from about $150 billion. It has taken stakes in Uber Technologies Inc., put $45 billion into SoftBank’s Vision Fund, and backed electric vehicle maker Lucid Motors Inc. It’s also increased headcount to more than 1,000 from about 40.
#Saudi British Bank swings to $245mln Q2 net profit | ZAWYA MENA Edition
Saudi British Bank swings to $245mln Q2 net profit | ZAWYA MENA Edition
Saudi British Bank (SABB), an affiliate of HSBC Holdings, swung to a net profit of 919 million riyals ($245 million) in the second quarter of 2021, compared to a net loss of 6.86 billion in the year-earlier period due to lower provision for expected credit losses and a fall in total operating expenses.
The result beats a profit estimate of 770 million riyals penciled in by Riyad Capital.
The rise in net income was mainly due to the lower provision for expected credit losses and lower total operating expenses. “This was partially offset by a decrease in total operating income mainly contributed by lower net special commission income by 19 percent,” the lender said in a statement on Tadawul website.
Provision for expected credit losses for the quarter was 26 million riyals compared with 1,309 million riyals in the same period of last year.
Saudi British Bank (SABB), an affiliate of HSBC Holdings, swung to a net profit of 919 million riyals ($245 million) in the second quarter of 2021, compared to a net loss of 6.86 billion in the year-earlier period due to lower provision for expected credit losses and a fall in total operating expenses.
The result beats a profit estimate of 770 million riyals penciled in by Riyad Capital.
The rise in net income was mainly due to the lower provision for expected credit losses and lower total operating expenses. “This was partially offset by a decrease in total operating income mainly contributed by lower net special commission income by 19 percent,” the lender said in a statement on Tadawul website.
Provision for expected credit losses for the quarter was 26 million riyals compared with 1,309 million riyals in the same period of last year.
#Saudi Aramco investors expect profit surge after strong first half | ZAWYA MENA Edition
Saudi Aramco investors expect profit surge after strong first half | ZAWYA MENA Edition
The oil reporting season will reach a climax next week with the announcement of first half results from the biggest company in the sector, Saudi Aramco.
With strong crude prices for most of the six months to June 30, and rising output as OPEC+ constraints were steadily lifted during the period, analysts are expecting a big increase in profits from the Saudi oil giant.
Analyst Christian Malek at JP Morgan is forecasting around $23.7bn of net income, a huge jump on the $6.6bn Aramco reported last year after the oil price collapsed as the COVID-19 pandemic severely hit demand.
“Against a positively trending demand/price backdrop, we expect a robust quarterly net income print from Aramco,” Malek said in a recent report to investors.
Higher oil prices, seasonally higher gas volumes, strong conditions in the petrochemical business and higher throughput from the start up of the Jazan facility will contribute to a strong first half performance, he added.
With strong crude prices for most of the six months to June 30, and rising output as OPEC+ constraints were steadily lifted during the period, analysts are expecting a big increase in profits from the Saudi oil giant.
Analyst Christian Malek at JP Morgan is forecasting around $23.7bn of net income, a huge jump on the $6.6bn Aramco reported last year after the oil price collapsed as the COVID-19 pandemic severely hit demand.
“Against a positively trending demand/price backdrop, we expect a robust quarterly net income print from Aramco,” Malek said in a recent report to investors.
Higher oil prices, seasonally higher gas volumes, strong conditions in the petrochemical business and higher throughput from the start up of the Jazan facility will contribute to a strong first half performance, he added.
GCC wealth: #Saudi, #UAE top the list; Bahrain marks fastest growth | ZAWYA MENA Edition
GCC wealth: Saudi, UAE top the list; Bahrain marks fastest growth | ZAWYA MENA Edition
Bahrain’s wealth is a fraction of Saudi Arabia’s $1 trillion, but the smaller kingdom has seen the GCC’s fastest wealth growth since 2015, according to a new report by Boston Consulting Group (BCG).
Global wealth continued to grow in 2020 despite the pandemic, according to BCG, and the Middle East was no different, growing eight percent to $11 trillion.
Mustafa Bosca, managing director and partner at BCG said there were a number of factors involved in the region’s wealth growth, including greater emphasis on savings as individuals stayed at home during the COVID-19 movement restrictions.
“First and foremost, the government support in terms of various ways, both through the banking system, through contribution through different parts of the economy,” Bosca said.
“The second thing is, also around the increased savings – as in other parts of the world. The Middle East citizens and residents could not engage in some of the major activities, going to restaurants, tourism travelling outside the region - that increased the savings.
Bahrain’s wealth is a fraction of Saudi Arabia’s $1 trillion, but the smaller kingdom has seen the GCC’s fastest wealth growth since 2015, according to a new report by Boston Consulting Group (BCG).
Global wealth continued to grow in 2020 despite the pandemic, according to BCG, and the Middle East was no different, growing eight percent to $11 trillion.
Mustafa Bosca, managing director and partner at BCG said there were a number of factors involved in the region’s wealth growth, including greater emphasis on savings as individuals stayed at home during the COVID-19 movement restrictions.
“First and foremost, the government support in terms of various ways, both through the banking system, through contribution through different parts of the economy,” Bosca said.
“The second thing is, also around the increased savings – as in other parts of the world. The Middle East citizens and residents could not engage in some of the major activities, going to restaurants, tourism travelling outside the region - that increased the savings.
U.S. oil drops for 3rd day on concerns COVID-19 variant spread to cut demand | Reuters
U.S. oil drops for 3rd day on concerns COVID-19 variant spread to cut demand | Reuters
U.S. oil prices fell for a third day on Wednesday while Brent futures were largely unchanged on mounting concerns that the increasing spread of the Delta variant of the coronavirus in top consuming countries will cut fuel demand.
U.S. West Texas Intermediate (WTI) crude fell 7 cents, or 0.1, to $70.49 a barrel, as of 0647 GMT. Brent crude oil futures added 1 cent to $72.42 a barrel.
Both futures fell on Tuesday to their lowest since July 21 before regaining some ground by the close.
The United States and China, the world's two biggest oil consumers, are grappling with rapidly spreading outbreaks of the highly contagious Delta variant that analysts fear will limit fuel demand at a time when it traditionally rises in both countries.
U.S. oil prices fell for a third day on Wednesday while Brent futures were largely unchanged on mounting concerns that the increasing spread of the Delta variant of the coronavirus in top consuming countries will cut fuel demand.
U.S. West Texas Intermediate (WTI) crude fell 7 cents, or 0.1, to $70.49 a barrel, as of 0647 GMT. Brent crude oil futures added 1 cent to $72.42 a barrel.
Both futures fell on Tuesday to their lowest since July 21 before regaining some ground by the close.
The United States and China, the world's two biggest oil consumers, are grappling with rapidly spreading outbreaks of the highly contagious Delta variant that analysts fear will limit fuel demand at a time when it traditionally rises in both countries.
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