Oil falls 2% on risk aversion, dollar strength | Reuters
Oil prices fell 2% on Monday as investors grew more risk averse, which hurt stock markets and boosted the U.S. dollar, making oil more expensive for holders of other currencies
Brent crude fell $1.42, or 1.9%, to settle at $73.92 a barrel after sinking to a session low of $73.52. U.S. West Texas Intermediate (WTI) declined $1.68, or 2.3%, to end at $70.29 after falling to as low as $69.86.
The dollar, seen as a safe haven, rose as worries about Chinese property developer Evergrande's solvency spooked equity markets and investors braced for the Federal Reserve to take another step toward tapering this week.
"As the U.S. dollar is usually a safe haven, its exchange rate against other currencies strengthens, a development that supplements the risk aversion environment and affects commodity prices, especially oil," Rystad Energy’s oil markets analyst Nishant Bhushan said.
Monday, 20 September 2021
Wall Street Flocked to #SaudiArabia But Still Awaits Fee Riches - Bloomberg
Wall Street Flocked to Saudi Arabia But Still Awaits Fee Riches - Bloomberg
The latest crop of Saudi Arabia’s market newcomers is proving just as frugal when it comes to paying investment bankers.
Despite attracting $125 billion in orders from investors for an initial public offering of Saudi Telecom Co.’s internet-services unit, banks including Morgan Stanley and HSBC Holdings Plc are set to share just about $12 million in fees, Arabian Internet and Communications Services Co., also known as solutions by stc, said in its prospectus.
That’s just 1.3% of the offering value, compared with an average of about 5% or more for IPOs in the U.S. or Europe. Morgan Stanley alone had a bigger payday during UiPath Inc.’s $1.54 billion IPO in April, which generated a total of $67 million in fees.
The Saudi deal’s pot also gets split between a local bank, auditors and legal advisers -- and will even be used to cover the cost of printing the prospectus.
The latest crop of Saudi Arabia’s market newcomers is proving just as frugal when it comes to paying investment bankers.
Despite attracting $125 billion in orders from investors for an initial public offering of Saudi Telecom Co.’s internet-services unit, banks including Morgan Stanley and HSBC Holdings Plc are set to share just about $12 million in fees, Arabian Internet and Communications Services Co., also known as solutions by stc, said in its prospectus.
That’s just 1.3% of the offering value, compared with an average of about 5% or more for IPOs in the U.S. or Europe. Morgan Stanley alone had a bigger payday during UiPath Inc.’s $1.54 billion IPO in April, which generated a total of $67 million in fees.
The Saudi deal’s pot also gets split between a local bank, auditors and legal advisers -- and will even be used to cover the cost of printing the prospectus.
#Saudi banks see robust growth in financing, deposits in Q2 | ZAWYA MENA Edition
Saudi banks see robust growth in financing, deposits in Q2 | ZAWYA MENA Edition
The top 10 banks in Saudi Arabia have seen robust growth quarter-on-quarter in financing and deposits according to professional services firm Alvarez & Marsal.
Core operating income increased by 8.4 percent from the first quarter to the second quarter of 2021, while L&A increased by 13.1 percent and deposits by 12.6 percent.
The report said L&A and deposit growth was primarily supported by the merger of National Commercial Bank (NCB) and SAMBA to form Saudi National Bank (SNB).
Operating income increased for the fourth consecutive quarter by 8.4 percent. But the overall operating efficiency for the banking sector deteriorated the second quarter of 2021 due to higher operating expenses, which were higher by 13.7 percent quarter on quarter, and impairments, which were up 81.6 percent, impacting net profit for the top ten banks in the Kingdom.
Aggregate net income decreased over the same period by 8.1 percent to SAR 11 billion ($2.93 billion). The fall in net profit, however, was partially offset by an increase in net interest income (+11.1 percent).
The top 10 banks in Saudi Arabia have seen robust growth quarter-on-quarter in financing and deposits according to professional services firm Alvarez & Marsal.
Core operating income increased by 8.4 percent from the first quarter to the second quarter of 2021, while L&A increased by 13.1 percent and deposits by 12.6 percent.
The report said L&A and deposit growth was primarily supported by the merger of National Commercial Bank (NCB) and SAMBA to form Saudi National Bank (SNB).
Operating income increased for the fourth consecutive quarter by 8.4 percent. But the overall operating efficiency for the banking sector deteriorated the second quarter of 2021 due to higher operating expenses, which were higher by 13.7 percent quarter on quarter, and impairments, which were up 81.6 percent, impacting net profit for the top ten banks in the Kingdom.
Aggregate net income decreased over the same period by 8.1 percent to SAR 11 billion ($2.93 billion). The fall in net profit, however, was partially offset by an increase in net interest income (+11.1 percent).
#Dubai Tycoon Bets $545 Million on Tower to Show Cavalli Is Back - Bloomberg
Dubai Tycoon Bets $545 Million on Tower to Show Cavalli Is Back - Bloomberg
The billionaire owner of Italian fashion house Cavalli is planning a lavish new tower in Dubai to showcase the brand’s return after a brush with bankruptcy and nearly two years of sluggish sales during the pandemic.
Hussain Sajwani, founder and chairman of Dubai-based Damac Properties, told Bloomberg that he may even double down on the planned $545 million structure by building a similar one in Miami.
The property tycoon bought the fashion company, which was founded in the 1970s by designer Roberto Cavalli, through his DICO private investment company in 2019. Roberto Cavalli SpA earlier that year had moved to shutter its U.S. stores and entered negotiations with creditors to stave off bankruptcy.
“I am committed to rebuilding the Cavalli brand, to relaunching it on key markets,” Sajwani said in the interview. That will mean investing in new locations around the world, he said, without disclosing precise figures. “We are ready to invest as much as needed.”
The billionaire owner of Italian fashion house Cavalli is planning a lavish new tower in Dubai to showcase the brand’s return after a brush with bankruptcy and nearly two years of sluggish sales during the pandemic.
Hussain Sajwani, founder and chairman of Dubai-based Damac Properties, told Bloomberg that he may even double down on the planned $545 million structure by building a similar one in Miami.
The property tycoon bought the fashion company, which was founded in the 1970s by designer Roberto Cavalli, through his DICO private investment company in 2019. Roberto Cavalli SpA earlier that year had moved to shutter its U.S. stores and entered negotiations with creditors to stave off bankruptcy.
“I am committed to rebuilding the Cavalli brand, to relaunching it on key markets,” Sajwani said in the interview. That will mean investing in new locations around the world, he said, without disclosing precise figures. “We are ready to invest as much as needed.”
Saudi Arabia to Combine PIF-Backed Red Sea Coast Developers - Bloomberg
Saudi Arabia to Combine PIF-Backed Red Sea Coast Developers - Bloomberg
Saudi Arabia plans to combine two state-controlled developers on the Red Sea coast as it pushes ahead with opening up the kingdom for more tourists.
The Red Sea Development Co. will take over Amaala, both owned by the country’s Public Investment Fund and building adjacent tourist destinations, John Pagano, chief executive officer of both companies, said in an interview Monday. He declined to give financial details.
Opening up to tourism is one of the ways Saudi Arabia intends to diversify its economy and cut its reliance on oil. Its other ambitious projects include an entertainment hub near the capital and a new city in the north-west called Neom that’s expected to cost $500 billion to build.
ACWA Power, one of the country’s main vehicles for building renewable energy projects, will build a battery storage facility at the site to ensure it can run on renewable power, Pagano said. “For at least a small period of time, our claim to fame will be the biggest battery storage system in the world.”
The Red Sea projects are expected to house 16 hotels by 2023, with 3,000 rooms. “In regard to the various hotel brands, we are hopefully going to sign a number of deals over the coming days,” said Pagano. “All the major players are very keen to be part of the Red Sea.”
The partnerships are likely to be announced during the kingdom’s Future Investment Initiative summit in October.
Saudi Arabia plans to combine two state-controlled developers on the Red Sea coast as it pushes ahead with opening up the kingdom for more tourists.
The Red Sea Development Co. will take over Amaala, both owned by the country’s Public Investment Fund and building adjacent tourist destinations, John Pagano, chief executive officer of both companies, said in an interview Monday. He declined to give financial details.
Opening up to tourism is one of the ways Saudi Arabia intends to diversify its economy and cut its reliance on oil. Its other ambitious projects include an entertainment hub near the capital and a new city in the north-west called Neom that’s expected to cost $500 billion to build.
ACWA Power, one of the country’s main vehicles for building renewable energy projects, will build a battery storage facility at the site to ensure it can run on renewable power, Pagano said. “For at least a small period of time, our claim to fame will be the biggest battery storage system in the world.”
The Red Sea projects are expected to house 16 hotels by 2023, with 3,000 rooms. “In regard to the various hotel brands, we are hopefully going to sign a number of deals over the coming days,” said Pagano. “All the major players are very keen to be part of the Red Sea.”
The partnerships are likely to be announced during the kingdom’s Future Investment Initiative summit in October.
MIDEAST STOCKS Most Gulf bourses decline as lower oil prices weigh | Reuters
MIDEAST STOCKS Most Gulf bourses decline as lower oil prices weigh | Reuters
Dubai led declines among stock markets in the Gulf on Monday, as sentiment was weighed by a fall in global equities and oil prices.
Global shares skidded as investors fretted about the spillover risk to the global economy from property group China Evergrande's troubles, while eyeing a week packed with global central bank meetings. read more
Dubai's main share index (.DFMGI) retreated 1.2%, as most of the stocks on the index finished lower, including its top lender Emirates NBD (ENBD.DU), which lost 1.4%.
The fall in Dubai stocks could prove temporary as strong local fundamentals continue to improve. Thanks to sanitary improvements, the local tourism industry is outperforming its equivalent in other countries, said Wael Makarem, senior market strategist Exness.
In Abu Dhabi, the index (.ADI) dropped 0.8%, weighed by country's largest lender First Abu Dhabi Bank (FAB.AD) and telecoms firm Etisalat (ETISALAT.AD), which fell 1% each.
Saudi Arabia's benchmark index (.TASI) fell 0.6%, with Al Rajhi Bank (1120.SE) losing 0.6% and petrochemical maker Saudi Basic Industries Corp (2010.SE) falling 1.3%.
A stronger dollar kept oil under pressure, with crude also taking a hit from energy companies in the U.S. Gulf of Mexico resuming production after back-to-back hurricanes in the region shut output.
The recovery in U.S. crude production capacity and doubts about demand levels in Asia are eroding the support base for the market. The main index has declined below its trend line and could see some corrections, Makarem said.
The Qatari index (.QSI) lost 0.4%, hit by a 1.1% fall in Qatar Islamic Bank (QISB.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) slid 1.6%, extending losses to a third consecutive session, as almost all the stocks on the index declined, with Commercial International Bank Egypt (COMI.CA) leading losses.
Dubai led declines among stock markets in the Gulf on Monday, as sentiment was weighed by a fall in global equities and oil prices.
Global shares skidded as investors fretted about the spillover risk to the global economy from property group China Evergrande's troubles, while eyeing a week packed with global central bank meetings. read more
Dubai's main share index (.DFMGI) retreated 1.2%, as most of the stocks on the index finished lower, including its top lender Emirates NBD (ENBD.DU), which lost 1.4%.
The fall in Dubai stocks could prove temporary as strong local fundamentals continue to improve. Thanks to sanitary improvements, the local tourism industry is outperforming its equivalent in other countries, said Wael Makarem, senior market strategist Exness.
In Abu Dhabi, the index (.ADI) dropped 0.8%, weighed by country's largest lender First Abu Dhabi Bank (FAB.AD) and telecoms firm Etisalat (ETISALAT.AD), which fell 1% each.
Saudi Arabia's benchmark index (.TASI) fell 0.6%, with Al Rajhi Bank (1120.SE) losing 0.6% and petrochemical maker Saudi Basic Industries Corp (2010.SE) falling 1.3%.
A stronger dollar kept oil under pressure, with crude also taking a hit from energy companies in the U.S. Gulf of Mexico resuming production after back-to-back hurricanes in the region shut output.
The recovery in U.S. crude production capacity and doubts about demand levels in Asia are eroding the support base for the market. The main index has declined below its trend line and could see some corrections, Makarem said.
The Qatari index (.QSI) lost 0.4%, hit by a 1.1% fall in Qatar Islamic Bank (QISB.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) slid 1.6%, extending losses to a third consecutive session, as almost all the stocks on the index declined, with Commercial International Bank Egypt (COMI.CA) leading losses.
Oil falls below $75 on risk-averse mood, dollar's gain | Reuters
Oil falls below $75 on risk-averse mood, dollar's gain | Reuters
Oil fell below $75 a barrel on Monday as rising risk aversion weighed on stock markets and boosted the U.S. dollar, although crude pared earlier losses on signs that some U.S. Gulf output will stay offline for months due to storm damage.
The dollar, seen as a safe haven, rose as worries about Chinese property developer Evergrande's solvency spooked equity markets and investors braced for the Federal Reserve to take another step towards tapering this week.
"Far East stock markets and the strong dollar are affecting oil," said Tamas Varga of oil broker PVM. "Nonetheless, unless all hell breaks loose, the positive sentiment ought to prevail."
Brent crude fell 92 cents, or 1.2%, to $74.42 a barrel at 1340 GMT, having dropped as low as $73.58 earlier in the session. U.S. West Texas Intermediate (WTI) declined $1.06, or 1.5%, to $70.91.
Oil fell below $75 a barrel on Monday as rising risk aversion weighed on stock markets and boosted the U.S. dollar, although crude pared earlier losses on signs that some U.S. Gulf output will stay offline for months due to storm damage.
The dollar, seen as a safe haven, rose as worries about Chinese property developer Evergrande's solvency spooked equity markets and investors braced for the Federal Reserve to take another step towards tapering this week.
"Far East stock markets and the strong dollar are affecting oil," said Tamas Varga of oil broker PVM. "Nonetheless, unless all hell breaks loose, the positive sentiment ought to prevail."
Brent crude fell 92 cents, or 1.2%, to $74.42 a barrel at 1340 GMT, having dropped as low as $73.58 earlier in the session. U.S. West Texas Intermediate (WTI) declined $1.06, or 1.5%, to $70.91.
Oil falls to $74 on risk-averse mood, U.S. Gulf output | Reuters
Oil falls to $74 on risk-averse mood, U.S. Gulf output | Reuters
Oil dropped more than $1 a barrel to around $74 on Monday as rising risk aversion weighed on stock markets and boosted the U.S. dollar, while more U.S. Gulf oil output came back online in the wake of two hurricanes.
The U.S. dollar, seen as a safe haven, rose as worries about Chinese property developer Evergrande's solvency spooked equity markets and as investors braced for the Federal Reserve to take another step towards tapering this week.
"Far East stock markets and the strong dollar are affecting oil," said Tamas Varga of oil broker PVM. "Nonetheless, unless all hell breaks loose, the positive sentiment ought to prevail."
Brent crude fell $1.27, or 1.7%, to $74.07 at 0941 GMT, having dropped as low as $73.75 earlier in the session. U.S. West Texas Intermediate (WTI) declined $1.33, or 1.9%, to $70.64.
A stronger dollar makes U.S. dollar-priced oil more expensive for holders of other currencies and generally reflects higher risk aversion, which tends to weigh on oil prices.
Oil dropped more than $1 a barrel to around $74 on Monday as rising risk aversion weighed on stock markets and boosted the U.S. dollar, while more U.S. Gulf oil output came back online in the wake of two hurricanes.
The U.S. dollar, seen as a safe haven, rose as worries about Chinese property developer Evergrande's solvency spooked equity markets and as investors braced for the Federal Reserve to take another step towards tapering this week.
"Far East stock markets and the strong dollar are affecting oil," said Tamas Varga of oil broker PVM. "Nonetheless, unless all hell breaks loose, the positive sentiment ought to prevail."
Brent crude fell $1.27, or 1.7%, to $74.07 at 0941 GMT, having dropped as low as $73.75 earlier in the session. U.S. West Texas Intermediate (WTI) declined $1.33, or 1.9%, to $70.64.
A stronger dollar makes U.S. dollar-priced oil more expensive for holders of other currencies and generally reflects higher risk aversion, which tends to weigh on oil prices.
Most Gulf bourses fall in line with weaker oil, Asian stocks | Reuters
Most Gulf bourses fall in line with weaker oil, Asian stocks | Reuters
Most stock markets in the Gulf region fell in early trade on Monday, mirroring weakness in Asian shares and oil prices, with Dubai leading declines.
Asian shares skidded ahead of a week packed with global central bank meetings, with Evergrande’s troubles adding to growing concerns about the health of China’s economy after Beijing’s recent crackdown on tech firms had haunted the region.
Oil prices extended losses from the previous session after energy companies in the U.S. Gulf of Mexico resumed production after back-to-back hurricanes in the region shut output. [O/R]
Dubai’s main share index dropped 0.8%, as most of the stocks on the index traded in the red including blue-chip developer Emaar Properties, which declined 1.2%.
Abu Dhabi’s benchmark index lost 0.6%, on course to extend losses from the previous session, with the country’s largest lender First Abu Dhabi Bank falling 0.6%.
The United Arab Emirates central bank sees increased risks of illicit financial flows emerging from the pandemic, including money-laundering and terrorism financing, it said in a report published on Sunday.
The bank identified fraud risks linked to COVID-19, including companies or individuals submitting false claims to qualify for government stimulus measures.
The report comes as the central bank steps up efforts to combat illicit financial flows.
Saudi Arabia’s benchmark index slipped 0.5%, hit by a 0.5% fall in Al Rajhi Bank and a 1.4% decline in Saudi Basic Industries Corp (SABIC).
SABIC, the world’s fourth-biggest petrochemicals firm, said on Sunday its joint venture project with ExxonMobil in the U.S. Gulf Coast has started commissioning activities and preparing for an initial startup.
The Qatari index dipped 0.4%, with Qatar Islamic Bank losing 0.9%.
Most stock markets in the Gulf region fell in early trade on Monday, mirroring weakness in Asian shares and oil prices, with Dubai leading declines.
Asian shares skidded ahead of a week packed with global central bank meetings, with Evergrande’s troubles adding to growing concerns about the health of China’s economy after Beijing’s recent crackdown on tech firms had haunted the region.
Oil prices extended losses from the previous session after energy companies in the U.S. Gulf of Mexico resumed production after back-to-back hurricanes in the region shut output. [O/R]
Dubai’s main share index dropped 0.8%, as most of the stocks on the index traded in the red including blue-chip developer Emaar Properties, which declined 1.2%.
Abu Dhabi’s benchmark index lost 0.6%, on course to extend losses from the previous session, with the country’s largest lender First Abu Dhabi Bank falling 0.6%.
The United Arab Emirates central bank sees increased risks of illicit financial flows emerging from the pandemic, including money-laundering and terrorism financing, it said in a report published on Sunday.
The bank identified fraud risks linked to COVID-19, including companies or individuals submitting false claims to qualify for government stimulus measures.
The report comes as the central bank steps up efforts to combat illicit financial flows.
Saudi Arabia’s benchmark index slipped 0.5%, hit by a 0.5% fall in Al Rajhi Bank and a 1.4% decline in Saudi Basic Industries Corp (SABIC).
SABIC, the world’s fourth-biggest petrochemicals firm, said on Sunday its joint venture project with ExxonMobil in the U.S. Gulf Coast has started commissioning activities and preparing for an initial startup.
The Qatari index dipped 0.4%, with Qatar Islamic Bank losing 0.9%.
Dubai Holding Real Estate plans to sell 6,000 units in two years amid property recovery
Dubai Holding Real Estate plans to sell 6,000 units in two years amid property recovery
Government-owned Dubai Holding Real Estate plans to sell about 6,000 units this year and the next as the developer aims to capitalise on the continued recovery of the UAE property market.
The company, which was created through the consolidation of Dubai Properties and Meraas as well as two other entities – North25 and Ejadah – last year, sold about 1,500 units in the six months to June 2021 and expects to sell a further 1,500 units by the end of the year.
Dubai Holding Real Estate plans to start new phases of master developments, as it taps into an uptick within the UAE’s property market
“We’ve certainly seen strong demand in the market this year,” Alexander Davies, chief commercial officer of the DHRE told The National in an interview.
“There is a lot being done to ensure not just attracting foreign direct investment here, but also people’s residency continues to lengthen. I think those initiatives by the government really underpin the confidence in the real estate sector.”
Government-owned Dubai Holding Real Estate plans to sell about 6,000 units this year and the next as the developer aims to capitalise on the continued recovery of the UAE property market.
The company, which was created through the consolidation of Dubai Properties and Meraas as well as two other entities – North25 and Ejadah – last year, sold about 1,500 units in the six months to June 2021 and expects to sell a further 1,500 units by the end of the year.
Dubai Holding Real Estate plans to start new phases of master developments, as it taps into an uptick within the UAE’s property market
“We’ve certainly seen strong demand in the market this year,” Alexander Davies, chief commercial officer of the DHRE told The National in an interview.
“There is a lot being done to ensure not just attracting foreign direct investment here, but also people’s residency continues to lengthen. I think those initiatives by the government really underpin the confidence in the real estate sector.”
Dubai’s Emirates to Increase U.S. Flights as Restrictions Ease - Bloomberg
Dubai’s Emirates to Increase U.S. Flights as Restrictions Ease - Bloomberg
Emirates plans to ramp up flights to the United States as travel restrictions ease further and ahead of the World Expo event in Dubai that’s expected to draw millions of visitors.
The airline will increase flights to a number of U.S. destinations from October and aims to restore more than 90% of its pre-Covid frequencies to the country by early December. The U.S. this month lowered its travel warning for the United Arab Emirates to level 3 from 4.
Emirates was hit hard by the pandemic, with widespread border curbs preventing travelers to make the intercontinental journeys in which the carrier specializes. As demand for travel picks up, it has ramped up operations and plans to recruit 3,000 cabin crew and 500 airport services employees to join its Dubai hub over the next six months.
Daily cases have been dropping in the UAE, which has rolled out one of the world’s fastest vaccination programs. Dubai, one of the country’s seven emirates, is preparing to host the Expo event in October and aims to attract 25 million visits over six months.
Emirates plans to ramp up flights to the United States as travel restrictions ease further and ahead of the World Expo event in Dubai that’s expected to draw millions of visitors.
The airline will increase flights to a number of U.S. destinations from October and aims to restore more than 90% of its pre-Covid frequencies to the country by early December. The U.S. this month lowered its travel warning for the United Arab Emirates to level 3 from 4.
Emirates was hit hard by the pandemic, with widespread border curbs preventing travelers to make the intercontinental journeys in which the carrier specializes. As demand for travel picks up, it has ramped up operations and plans to recruit 3,000 cabin crew and 500 airport services employees to join its Dubai hub over the next six months.
Daily cases have been dropping in the UAE, which has rolled out one of the world’s fastest vaccination programs. Dubai, one of the country’s seven emirates, is preparing to host the Expo event in October and aims to attract 25 million visits over six months.
Oil down on stronger greenback, rising U.S. rig count | Reuters
Oil down on stronger greenback, rising U.S. rig count | Reuters
Oil prices dropped on Monday, extending last week's losses after the U.S. dollar jumped to a three-week high and the U.S. rig count rose, although nearly a quarter of U.S. Gulf of Mexico output stayed offline in the wake of two hurricanes.
Brent crude futures fell 61 cents, or 0.8%, to $74.73 a barrel at 0650 GMT after losing 33 cents on Friday.
U.S. West Texas Intermediate (WTI) crude futures fell 66 cents, or 0.9%, to $71.31 a barrel, after declining 64 cents on Friday.
"Strength in the USD over the last couple of days has provided some headwinds to the market," researchers at ING Bank said in a note on Monday.
Oil fell with the greenback near a three-week high following a rally on Friday on better-than-expected U.S. retail sales data. That bolstered expectations for the U.S. Federal Reserve to begin reducing asset purchases later this year. read more
Oil prices dropped on Monday, extending last week's losses after the U.S. dollar jumped to a three-week high and the U.S. rig count rose, although nearly a quarter of U.S. Gulf of Mexico output stayed offline in the wake of two hurricanes.
Brent crude futures fell 61 cents, or 0.8%, to $74.73 a barrel at 0650 GMT after losing 33 cents on Friday.
U.S. West Texas Intermediate (WTI) crude futures fell 66 cents, or 0.9%, to $71.31 a barrel, after declining 64 cents on Friday.
"Strength in the USD over the last couple of days has provided some headwinds to the market," researchers at ING Bank said in a note on Monday.
Oil fell with the greenback near a three-week high following a rally on Friday on better-than-expected U.S. retail sales data. That bolstered expectations for the U.S. Federal Reserve to begin reducing asset purchases later this year. read more
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