Oil prices rise, as Saudis dismiss supply concerns as demand grows | Reuters
Oil prices rose 1% on Thursday after top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply and the International Energy Agency said surging natural gas prices could boost demand for oil among power generators.
The market largely shrugged off an unexpectedly large increase in U.S. crude inventories as refiners cut production in a generally slower period for those facilities.
Brent crude futures settled up 82 cents to $84 a barrel, a 1% gain, and its highest settle since October 2018. U.S. West Texas Intermediate (WTI) crude futures ended up 87 cents to $81.31 a barrel, notching another seven-year closing high.
Oil demand is set to rise by half a million barrels per day (bpd) as the power sector and heavy industries switch from more expensive sources of energy, the IEA said, warning that the energy crunch could stoke inflation and slow world economic growth. read more
Thursday 14 October 2021
OPEC+ Kingpins Say They Protected Oil From Chaos Seen With Gas - Bloomberg
OPEC+ Kingpins Say They Protected Oil From Chaos Seen With Gas - Bloomberg
Oil’s stability relative to natural gas and coal underscore that OPEC+ is doing a good job balancing supply and demand, said the energy ministers of Saudi Arabia and Russia.
While crude has jumped to a three-year high above $80 a barrel, the increase has been nothing compared to volatility seen with gas and coal prices, Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday. He reiterated that the OPEC+ cartel, led by Riyadh and Moscow, should stick with gradual production increases, despite calls from many traders and even the White House for it to move faster.
“We have done a remarkable job,” he said during the Russian Energy Week conference. “Gas markets, coal markets, other sources of energy need a regulator. This situation is telling us that people need to copy and paste what OPEC has done.”
Gas futures in Asia and Europe have soared by more than 150% since the end of June, while coal’s doubled. Brent crude, by contrast, is up 12%.
Oil’s stability relative to natural gas and coal underscore that OPEC+ is doing a good job balancing supply and demand, said the energy ministers of Saudi Arabia and Russia.
While crude has jumped to a three-year high above $80 a barrel, the increase has been nothing compared to volatility seen with gas and coal prices, Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday. He reiterated that the OPEC+ cartel, led by Riyadh and Moscow, should stick with gradual production increases, despite calls from many traders and even the White House for it to move faster.
“We have done a remarkable job,” he said during the Russian Energy Week conference. “Gas markets, coal markets, other sources of energy need a regulator. This situation is telling us that people need to copy and paste what OPEC has done.”
Gas futures in Asia and Europe have soared by more than 150% since the end of June, while coal’s doubled. Brent crude, by contrast, is up 12%.
EXCLUSIVE #AbuDhabi's IHC to IPO subsidiary Multiply this year, CEO says | Reuters
EXCLUSIVE Abu Dhabi's IHC to IPO subsidiary Multiply this year, CEO says | Reuters
Abu Dhabi conglomerate International Holding Co (IHC) plans to list subsidiary Multiply, a holding company that invests in tech-focused businesses, on Abu Dhabi's main stock market this year, IHC's chief executive said.
The planned transaction, which could value Multiply at 8 to 10 billion dirhams ($2.2-$2.7 billion), would be the latest in a string of listings and deals for IHC (IHC.AD), a firm with a market capitalisation of $72.5 billion.
"We’re planning the listing before the end of the year, it’s going to be an IPO, a main market listing", IHC's CEO Syed Basar Shueb told Reuters.
IHC plans to offer 30% of Multiply's shares and is working with local banks on the transaction, he added.
The planned deal would follow a surge of new listings on Abu Dhabi's ADX bourse this year, including companies owned by oil giant Abu Dhabi National Oil Co (ADNOC) and state investor Mubadala.
The Abu Dhabi stock index (.ADI) is the best performing market in the Gulf this year, helped by higher oil prices, incentives to boost trading and more listings.
"Definitely one of the reasons (for the listing) is market conditions ... but our long term strategy is to list every single entity which we invest into in the market eventually", said Shueb.
IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, became Abu Dhabi's most valuable listed company in June after the listing of subsidiary Alpha Dhabi (ALPHADHABI.AD).
It is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's de facto ruler Abu Dhabi Crown Prince Mohammed bin Zayed.
The company also plans an IPO for its majority-owned healthcare firm Pure Health, which Shueb said could happen as soon as March next year.
It is looking at acquisitions abroad, including food processing facilities and healthcare assets in Turkey, he said, adding discussions were at an early stage.
IHC recently sold a 50% stake in another subsidiary, Eltizam, to Abu Dhabi state investor ADQ. Eltizam could also be listed next year, said Shueb.
Sheikh Tahnoon is also the chairman of ADQ.
Abu Dhabi conglomerate International Holding Co (IHC) plans to list subsidiary Multiply, a holding company that invests in tech-focused businesses, on Abu Dhabi's main stock market this year, IHC's chief executive said.
The planned transaction, which could value Multiply at 8 to 10 billion dirhams ($2.2-$2.7 billion), would be the latest in a string of listings and deals for IHC (IHC.AD), a firm with a market capitalisation of $72.5 billion.
"We’re planning the listing before the end of the year, it’s going to be an IPO, a main market listing", IHC's CEO Syed Basar Shueb told Reuters.
IHC plans to offer 30% of Multiply's shares and is working with local banks on the transaction, he added.
The planned deal would follow a surge of new listings on Abu Dhabi's ADX bourse this year, including companies owned by oil giant Abu Dhabi National Oil Co (ADNOC) and state investor Mubadala.
The Abu Dhabi stock index (.ADI) is the best performing market in the Gulf this year, helped by higher oil prices, incentives to boost trading and more listings.
"Definitely one of the reasons (for the listing) is market conditions ... but our long term strategy is to list every single entity which we invest into in the market eventually", said Shueb.
IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, became Abu Dhabi's most valuable listed company in June after the listing of subsidiary Alpha Dhabi (ALPHADHABI.AD).
It is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's de facto ruler Abu Dhabi Crown Prince Mohammed bin Zayed.
The company also plans an IPO for its majority-owned healthcare firm Pure Health, which Shueb said could happen as soon as March next year.
It is looking at acquisitions abroad, including food processing facilities and healthcare assets in Turkey, he said, adding discussions were at an early stage.
IHC recently sold a 50% stake in another subsidiary, Eltizam, to Abu Dhabi state investor ADQ. Eltizam could also be listed next year, said Shueb.
Sheikh Tahnoon is also the chairman of ADQ.
MIDEAST STOCKS Most Gulf exchanges track oil prices higher | Reuters
MIDEAST STOCKS Most Gulf exchanges track oil prices higher | Reuters
Most stock markets in the Gulf ended higher on Thursday amid rising oil prices, with oil behemoth Saudi Aramco nearing a $2 trillion valuation.
Oil prices rose by about 1% after the International Energy Agency said that record natural gas prices would boost demand for oil and top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply.
Saudi Arabia's benchmark index (.TASI) closed 0.6% higher, with Yanbu National Petrochemicals Co (2290.SE) jumping 7.1% and oil giant Saudi Aramco (2222.SE) gaining 0.8%, nearing a $2 billion valuation.
The kingdom's energy index (.TENI) was up 1%.
In Abu Dhabi, the index (.ADI) added 0.3%, led by a 3.2% rise in Abu Dhabi Commercial Bank (ADCB.AD) and a 0.3% increase in the country's largest lender, First Abu Dhabi Bank (FAB.AD).
The UAE's Aldar Properties and ADQ have submitted a request to Egypt's Financial Regulatory Authority to acquire up to 90% of Egyptian property developer SODIC (OCDI.CA), they said on Tuesday.
Aldar, however, traded flat, while Egypt's SODIC inched up 0.1%.
Dubai's main share index (.DFMGI) finsihed flat, as gains in financial shares were offset by declines in property stocks.
Investors considered the risks of a U.S. reduction of its asset purchase programme on economic growth and equities. The main index could see additional price corrections next week if investors return to profit-taking, said Wael Makarem, senior market strategist at Exness.
Among the gainers, Mashreq Bank (MASB.DU) leapt 3.6% as the lender sought shareholder approval to increase share capital.
The Qatari index (.QSI) gained 0.5%, with the Gulf's biggest lender, Qatar National Bank (QNBK.QA), advancing 1.1% and petrochemical maker Industries Qatar (IQCD.QA) rising 0.7%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 1.1%, with top lender Commercial International Bank (COMI.CA).
Egypt's liquefied natural gas exports are expected to rise in October from the previous month, Reuters reported on Wednesday, citing trading and industry sources.
The most populous Arab country hopes its location and infrastructure will help it become a link for energy trading between the Middle East, Africa and Europe.
Most stock markets in the Gulf ended higher on Thursday amid rising oil prices, with oil behemoth Saudi Aramco nearing a $2 trillion valuation.
Oil prices rose by about 1% after the International Energy Agency said that record natural gas prices would boost demand for oil and top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply.
Saudi Arabia's benchmark index (.TASI) closed 0.6% higher, with Yanbu National Petrochemicals Co (2290.SE) jumping 7.1% and oil giant Saudi Aramco (2222.SE) gaining 0.8%, nearing a $2 billion valuation.
The kingdom's energy index (.TENI) was up 1%.
In Abu Dhabi, the index (.ADI) added 0.3%, led by a 3.2% rise in Abu Dhabi Commercial Bank (ADCB.AD) and a 0.3% increase in the country's largest lender, First Abu Dhabi Bank (FAB.AD).
The UAE's Aldar Properties and ADQ have submitted a request to Egypt's Financial Regulatory Authority to acquire up to 90% of Egyptian property developer SODIC (OCDI.CA), they said on Tuesday.
Aldar, however, traded flat, while Egypt's SODIC inched up 0.1%.
Dubai's main share index (.DFMGI) finsihed flat, as gains in financial shares were offset by declines in property stocks.
Investors considered the risks of a U.S. reduction of its asset purchase programme on economic growth and equities. The main index could see additional price corrections next week if investors return to profit-taking, said Wael Makarem, senior market strategist at Exness.
Among the gainers, Mashreq Bank (MASB.DU) leapt 3.6% as the lender sought shareholder approval to increase share capital.
The Qatari index (.QSI) gained 0.5%, with the Gulf's biggest lender, Qatar National Bank (QNBK.QA), advancing 1.1% and petrochemical maker Industries Qatar (IQCD.QA) rising 0.7%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 1.1%, with top lender Commercial International Bank (COMI.CA).
Egypt's liquefied natural gas exports are expected to rise in October from the previous month, Reuters reported on Wednesday, citing trading and industry sources.
The most populous Arab country hopes its location and infrastructure will help it become a link for energy trading between the Middle East, Africa and Europe.
Oil prices trim gains after big build in U.S. stocks | Reuters
Oil prices trim gains after big build in U.S. stocks | Reuters
Oil prices rose on Thursday after top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply and the International Energy Agency said surging natural gas prices could boost demand for oil among power generators.
The market trimmed gains after U.S. crude inventories rose more than anticipated as refiners cut production in a generally slower period for those facilities.
Brent crude futures gained 42 cents, or 0.5%, to $83.60 a barrel by 11:26 a.m. EDT (1526 GMT) after hitting a session high of $84.50 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 21 cents to $80.65.
U.S. crude stocks rose by a surprising 6 million barrels, much higher than the modest 702,000-barrel increase analysts had expected. Production edged higher, reaching 11.4 million bpd.
Oil prices rose on Thursday after top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply and the International Energy Agency said surging natural gas prices could boost demand for oil among power generators.
The market trimmed gains after U.S. crude inventories rose more than anticipated as refiners cut production in a generally slower period for those facilities.
Brent crude futures gained 42 cents, or 0.5%, to $83.60 a barrel by 11:26 a.m. EDT (1526 GMT) after hitting a session high of $84.50 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 21 cents to $80.65.
U.S. crude stocks rose by a surprising 6 million barrels, much higher than the modest 702,000-barrel increase analysts had expected. Production edged higher, reaching 11.4 million bpd.
Oil prices climb on upgrade to IEA demand forecast | Reuters
Oil prices climb on upgrade to IEA demand forecast | Reuters
Oil prices rose by about 1% on Thursday after the International Energy Agency said that record natural gas prices would boost demand for oil and top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply.
Brent crude futures gained 89 cents, or 1.1%, to $84.07 a barrel by 1204 GMT after falling 0.3% on Wednesday. U.S. West Texas Intermediate (WTI) crude futures climbed 87 cents, or 1.1%, to $81.31, more than recouping the previous day's 0.3% decline.
Oil demand is set to jump by half a million barrels per day (bpd) as the power sector and heavy industries switch from other more expensive sources of energy, the IEA said, warning that the energy crunch could stoke inflation and slow the world's economic recovery from the COVID-19 pandemic. read more
In its monthly report, the IEA increased its global oil demand growth forecast by 170,000 bpd to 5.5 million bpd for 2021 and by 210,000 bpd to 3.3 million bpd for 2022. The agency now expects total oil demand in 2022 to reach 99.6 million bpd, slightly above pre-pandemic levels.
Oil prices rose by about 1% on Thursday after the International Energy Agency said that record natural gas prices would boost demand for oil and top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply.
Brent crude futures gained 89 cents, or 1.1%, to $84.07 a barrel by 1204 GMT after falling 0.3% on Wednesday. U.S. West Texas Intermediate (WTI) crude futures climbed 87 cents, or 1.1%, to $81.31, more than recouping the previous day's 0.3% decline.
Oil demand is set to jump by half a million barrels per day (bpd) as the power sector and heavy industries switch from other more expensive sources of energy, the IEA said, warning that the energy crunch could stoke inflation and slow the world's economic recovery from the COVID-19 pandemic. read more
In its monthly report, the IEA increased its global oil demand growth forecast by 170,000 bpd to 5.5 million bpd for 2021 and by 210,000 bpd to 3.3 million bpd for 2022. The agency now expects total oil demand in 2022 to reach 99.6 million bpd, slightly above pre-pandemic levels.
#Saudi energy minister dismisses calls for extra OPEC+ barrels | Reuters
Saudi energy minister dismisses calls for extra OPEC+ barrels | Reuters
OPEC leader Saudi Arabia dismissed calls for speedier oil output increases on Thursday, saying its efforts with allies were enough and protecting the oil market from the wild price swings seen in natural gas and coal markets.
“What we see in the oil market today is an incremental (price) increase of 29%, vis-à-vis 500% increases in (natural) gas prices, 300% increases in coal prices, 200% increases in NGLs (natural gas liquids) ...,” Saudi energy minister Prince Abdulaziz bin Salman told a forum in Moscow on Thursday.
The Organization of the Petroleum Exporting Countries and allies led by Russia, collectively known as OPEC+, have done a “remarkable” job acting as “so-called regulator of the oil market,” he said.
“Gas markets, coal markets, other sources of energy need a regulator. This situation is telling us that people need to copy and paste what OPEC+ has done and what it has achieved.”
Asked about calls by major consumers like the United States for OPEC+ to increase production further to cool off rising oil prices, Prince Abdulaziz said: “I keep telling people we are increasing production.”
OPEC leader Saudi Arabia dismissed calls for speedier oil output increases on Thursday, saying its efforts with allies were enough and protecting the oil market from the wild price swings seen in natural gas and coal markets.
“What we see in the oil market today is an incremental (price) increase of 29%, vis-à-vis 500% increases in (natural) gas prices, 300% increases in coal prices, 200% increases in NGLs (natural gas liquids) ...,” Saudi energy minister Prince Abdulaziz bin Salman told a forum in Moscow on Thursday.
The Organization of the Petroleum Exporting Countries and allies led by Russia, collectively known as OPEC+, have done a “remarkable” job acting as “so-called regulator of the oil market,” he said.
“Gas markets, coal markets, other sources of energy need a regulator. This situation is telling us that people need to copy and paste what OPEC+ has done and what it has achieved.”
Asked about calls by major consumers like the United States for OPEC+ to increase production further to cool off rising oil prices, Prince Abdulaziz said: “I keep telling people we are increasing production.”
#Saudi banks: Pressure on lenders easing with rising oil price, government support | ZAWYA MENA Edition
Saudi banks: Pressure on lenders easing with rising oil price, government support | ZAWYA MENA Edition
The downside risk for banks in Saudi Arabia has reduced, as pressures from the COVID-19 pandemic and lower oil prices are easing, according to the latest analysis by Fitch.
The ratings agency noted that the deterioration in asset quality and profitability in the kingdom’s banking sector has been contained, with the banks’ financial metrics stabilising.
Various government support measures including interest-free deposits, as well as strong loan growth in 2020 and first six months of the year and sustained momentum in retail mortgages helped banks.
Fitch said pressures on banks are easing because global oil demand has recovered and non-oil economic activity has improved.
“The impact of the pandemic on Saudi Arabian banks has been contained, while pressures on the operating environment have eased and the economic activity is gradually recovering, supported by higher oil prices,” Fitch said.
With the reduced pressures on the operating environment, Fitch has revised the outlooks on all Saudi banks’ long-term issuer default ratings to stable in the second and third quarters of the year. It said Saudi banks’ weighted average viability rating of “bbb+” remains the highest in the Gulf Cooperation Council.
However, Fitch said that delayed recognition of impairments remains a key risk. “But we believe the impact on the sector’s asset quality and overall financial profiles will be contained.”
The Saudi Central Bank (SAMA) said last year that it injected $13.3 billion into the banking sector to boost liquidity.
Loan growth in the country also strengthened in 2020 and first half of 2021, at 14.9 percent and 19 percent, respectively.
As of September 2020, retail mortgage lending was up 41 percent, fuelled by a high demand for home ownership.
The downside risk for banks in Saudi Arabia has reduced, as pressures from the COVID-19 pandemic and lower oil prices are easing, according to the latest analysis by Fitch.
The ratings agency noted that the deterioration in asset quality and profitability in the kingdom’s banking sector has been contained, with the banks’ financial metrics stabilising.
Various government support measures including interest-free deposits, as well as strong loan growth in 2020 and first six months of the year and sustained momentum in retail mortgages helped banks.
Fitch said pressures on banks are easing because global oil demand has recovered and non-oil economic activity has improved.
“The impact of the pandemic on Saudi Arabian banks has been contained, while pressures on the operating environment have eased and the economic activity is gradually recovering, supported by higher oil prices,” Fitch said.
With the reduced pressures on the operating environment, Fitch has revised the outlooks on all Saudi banks’ long-term issuer default ratings to stable in the second and third quarters of the year. It said Saudi banks’ weighted average viability rating of “bbb+” remains the highest in the Gulf Cooperation Council.
However, Fitch said that delayed recognition of impairments remains a key risk. “But we believe the impact on the sector’s asset quality and overall financial profiles will be contained.”
The Saudi Central Bank (SAMA) said last year that it injected $13.3 billion into the banking sector to boost liquidity.
Loan growth in the country also strengthened in 2020 and first half of 2021, at 14.9 percent and 19 percent, respectively.
As of September 2020, retail mortgage lending was up 41 percent, fuelled by a high demand for home ownership.
#Dubai property market is undervalued - UBS | ZAWYA MENA Edition
Dubai property market is undervalued - UBS | ZAWYA MENA Edition
While Frankfurt, Toronto, and Hong Kong exhibited the most elevated risk levels on housing markets, Dubai was the only undervalued market, and the only one to be classified in a lower category than it was last year, according to a report by UBS.
In its Global Real Estate Bubble Index 2021, the bank said better affordability, easier mortgage regulations, higher oil prices, and an economic rebound seem to have started a recovery in Dubai's housing market.
Even before the coronavirus pandemic, a housing supply glut and lower oil prices had dampened Dubai’s property market. During the lockdown last year, job losses among expatriates led many of them to leave the emirate, adding to the downward pressure on rents and sale prices. Now, however, sales transactions have been picking up as property buyers take the recovery in business activities and prices that are still attractive.
According to an S&P report earlier this week, the rebound in the property market is also supported by high Covid-19 vaccination rates and new visa and corporate ownership rule.
“Dubai’s real estate sector will likely benefit from the World Expo 2020 which started a year late this October due to the pandemic,” the S&P analysts wrote. “But structural oversupply of residential properties will challenge price increases over the long term, making the recovery fragile.”
UBS also warned that although construction in Dubai has slowed, "essentially limitless supply poses a risk for long-term appreciation prospects.”
While Frankfurt, Toronto, and Hong Kong exhibited the most elevated risk levels on housing markets, Dubai was the only undervalued market, and the only one to be classified in a lower category than it was last year, according to a report by UBS.
In its Global Real Estate Bubble Index 2021, the bank said better affordability, easier mortgage regulations, higher oil prices, and an economic rebound seem to have started a recovery in Dubai's housing market.
Even before the coronavirus pandemic, a housing supply glut and lower oil prices had dampened Dubai’s property market. During the lockdown last year, job losses among expatriates led many of them to leave the emirate, adding to the downward pressure on rents and sale prices. Now, however, sales transactions have been picking up as property buyers take the recovery in business activities and prices that are still attractive.
According to an S&P report earlier this week, the rebound in the property market is also supported by high Covid-19 vaccination rates and new visa and corporate ownership rule.
“Dubai’s real estate sector will likely benefit from the World Expo 2020 which started a year late this October due to the pandemic,” the S&P analysts wrote. “But structural oversupply of residential properties will challenge price increases over the long term, making the recovery fragile.”
UBS also warned that although construction in Dubai has slowed, "essentially limitless supply poses a risk for long-term appreciation prospects.”
#Saudi inflation inches up to 0.6% in September | Reuters
Saudi inflation inches up to 0.6% in September | Reuters
Saudi Arabia's consumer price index increased 0.6% in September from a year earlier and was 0.2% higher month on month, government data showed on Thursday.
The annual rate was marginally above a rise of 0.3% in August and 0.4% in July, data from Saudi Arabia's General Authority for Statistics showed. That compared with a rise of 6.2% in June, the last month affected by the tripling of value added tax (VAT) to 15% in July last year.
"Food and Beverages prices were the main driver of the inflation rate in September 2021 due to their high importance in the Saudi consumer basket (with a weight of 18%)," the General Authority for Statistics said.
Food prices rose 2.6% due to a 12.5% rise in vegetable prices and meat and poultry prices increasing by 2%.
Transport prices rose 5.9% on the back of a 44.9% increase in gasoline prices, the statistics authority said.
Saudi Arabia's consumer price index increased 0.6% in September from a year earlier and was 0.2% higher month on month, government data showed on Thursday.
The annual rate was marginally above a rise of 0.3% in August and 0.4% in July, data from Saudi Arabia's General Authority for Statistics showed. That compared with a rise of 6.2% in June, the last month affected by the tripling of value added tax (VAT) to 15% in July last year.
"Food and Beverages prices were the main driver of the inflation rate in September 2021 due to their high importance in the Saudi consumer basket (with a weight of 18%)," the General Authority for Statistics said.
Food prices rose 2.6% due to a 12.5% rise in vegetable prices and meat and poultry prices increasing by 2%.
Transport prices rose 5.9% on the back of a 44.9% increase in gasoline prices, the statistics authority said.
#AbuDhabi Fund Mubadala Capital Buys Major Taco Bell Franchisee - Bloomberg
Abu Dhabi Fund Mubadala Capital Buys Major Taco Bell Franchisee - Bloomberg
A unit of Abu Dhabi’s Mubadala Investment Co. acquired one of the largest Taco Bell Corp. franchisees in the U.S., underscoring the $243 billion sovereign wealth fund’s growing appetite for private equity deals.
Mubadala Capital, the fund’s asset management arm, bought K-Mac Holdings Corp. from Lee Equity Partners Opportunities Fund, according to a statement on Thursday. Financial terms weren’t disclosed. K-Mac operates some 300 fast-food Taco Bell outlets that are primarily located in the country’s Midwest and South.
The deal reflects Mubadala Capital’s foray into the food and beverage sector, where it invested about $1.8 billion in the past seven years alone. It also underlines the buyout division’s U.S. focus, a destination for about 80% of its capital, said Adib Martin Mattar, who heads private equity at Mubadala Capital.
“It’s still the world’s biggest market when it comes to doing private equity deals and finding investments,” Mattar said.
A unit of Abu Dhabi’s Mubadala Investment Co. acquired one of the largest Taco Bell Corp. franchisees in the U.S., underscoring the $243 billion sovereign wealth fund’s growing appetite for private equity deals.
Mubadala Capital, the fund’s asset management arm, bought K-Mac Holdings Corp. from Lee Equity Partners Opportunities Fund, according to a statement on Thursday. Financial terms weren’t disclosed. K-Mac operates some 300 fast-food Taco Bell outlets that are primarily located in the country’s Midwest and South.
The deal reflects Mubadala Capital’s foray into the food and beverage sector, where it invested about $1.8 billion in the past seven years alone. It also underlines the buyout division’s U.S. focus, a destination for about 80% of its capital, said Adib Martin Mattar, who heads private equity at Mubadala Capital.
“It’s still the world’s biggest market when it comes to doing private equity deals and finding investments,” Mattar said.
Oil rises on bigger-than-expected draw in U.S. fuel stocks | Reuters
Oil rises on bigger-than-expected draw in U.S. fuel stocks | Reuters
Oil prices climbed on Thursday, reversing previous losses, as a bigger-than-expected draw in U.S. gasoline and distillate stocks prompted buying.
The uptick was also supported by expectations that soaring natural gas prices as winter approaches will drive a switch to oil to meet heating demand.
Brent crude futures gained 67 cents, or 0.8%, to $83.85 a barrel at 0647 GMT after falling 0.3% on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures climbed 62 cents, or 0.8%, to $81.06 a barrel, more than recouping the previous day's 0.3% decline.
"A larger-than-expected drop in the U.S. gasoline and distillate inventories led to fresh buying," said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.
Oil prices climbed on Thursday, reversing previous losses, as a bigger-than-expected draw in U.S. gasoline and distillate stocks prompted buying.
The uptick was also supported by expectations that soaring natural gas prices as winter approaches will drive a switch to oil to meet heating demand.
Brent crude futures gained 67 cents, or 0.8%, to $83.85 a barrel at 0647 GMT after falling 0.3% on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures climbed 62 cents, or 0.8%, to $81.06 a barrel, more than recouping the previous day's 0.3% decline.
"A larger-than-expected drop in the U.S. gasoline and distillate inventories led to fresh buying," said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.
MIDEAST STOCKS Most Gulf indexes rise in early trade; #AbuDhabi falls | Reuters
MIDEAST STOCKS Most Gulf indexes rise in early trade; Abu Dhabi falls | Reuters
Most major Gulf stock markets rose in early trade on Thursday amid rising oil prices, with the Saudi index on track for a third straight weekly gain.
Oil prices reversed previous losses as a bigger-than-expected draw in U.S. gasoline and distillate stocks prompted buying.
The uptick was also supported by expectations that soaring natural gas prices as winter approaches will drive a switch to oil to meet heating demand.
Saudi Arabia's benchmark index (.TASI) gained 0.2%, with Yanbu National Petrochemicals Co (2290.SE) advancing 4.8% and petrochemical giant Saudi Basic Industries (2010.SE) adding 0.9%.
Fitch Ratings on Wednesday said the impact of the pandemic on Saudi Arabian banks had been contained.
Dubai's main share index (.DFMGI) inched up 0.1%, with Emirates NBD Bank (ENBD.DU) rising 0.4%, while Mashreq Bank (MASB.DU) leapt about 4% as the lender sought shareholder approval to increase share capital.
The United Arab Emirates said non-oil foreign trade rose by 27% in the first half of 2021 to 900 billion dirhams ($245.04 billion), state news agency WAM reported on Wednesday.
The Qatari benchmark (.QSI) climbed 0.5%, bolstered by a 0.9% rise in the Gulf's largest lender Qatar National Bank (QNBK.QA) and a 0.6% increase in Qatar Islamic Bank (QISB.QA).
In Abu Dhabi, the index (.ADI), however, eased 0.1%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) losing 0.5%.
Most major Gulf stock markets rose in early trade on Thursday amid rising oil prices, with the Saudi index on track for a third straight weekly gain.
Oil prices reversed previous losses as a bigger-than-expected draw in U.S. gasoline and distillate stocks prompted buying.
The uptick was also supported by expectations that soaring natural gas prices as winter approaches will drive a switch to oil to meet heating demand.
Saudi Arabia's benchmark index (.TASI) gained 0.2%, with Yanbu National Petrochemicals Co (2290.SE) advancing 4.8% and petrochemical giant Saudi Basic Industries (2010.SE) adding 0.9%.
Fitch Ratings on Wednesday said the impact of the pandemic on Saudi Arabian banks had been contained.
Dubai's main share index (.DFMGI) inched up 0.1%, with Emirates NBD Bank (ENBD.DU) rising 0.4%, while Mashreq Bank (MASB.DU) leapt about 4% as the lender sought shareholder approval to increase share capital.
The United Arab Emirates said non-oil foreign trade rose by 27% in the first half of 2021 to 900 billion dirhams ($245.04 billion), state news agency WAM reported on Wednesday.
The Qatari benchmark (.QSI) climbed 0.5%, bolstered by a 0.9% rise in the Gulf's largest lender Qatar National Bank (QNBK.QA) and a 0.6% increase in Qatar Islamic Bank (QISB.QA).
In Abu Dhabi, the index (.ADI), however, eased 0.1%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) losing 0.5%.