Kuwait's efforts on political gridlock give hope for strained finances - IMF | Reuters
Kuwait's political gridlock has strained state coffers but new efforts to resolve the impasse could signal an acceleration in reform momentum, the International Monetary Fund said.
A stand-off between the government and the elected parliament had paralysed legislative work, hindering efforts to boost state finances and enact measures including a debt law making it possible to tap global markets, a government priority.
The IMF said on Wednesday the oil-rich Gulf state would need to work on comprehensive reforms on items such as social benefits, the labour market, and the business environment.
"Sustained political gridlock has hobbled reforms and increased macroeconomic vulnerabilities, but a new high-level effort offers hope for resolving the impasse", the fund said in a statement.
Wednesday 20 October 2021
Oil rallies as U.S. crude stocks decline in tight market | Reuters
Oil rallies as U.S. crude stocks decline in tight market | Reuters
Oil prices rallied on Wednesday after U.S. crude inventories at the nation's largest storage site hit their lowest level in three years and nationwide fuel stocks fell sharply, a signal of rising demand.
Brent crude futures settled at $85.82 a barrel, a gain of 0.9% or 74 cents and the highest since October 2018.
November U.S. West Texas Intermediate (WTI) crude , which expires on Wednesday, settled at $83.87, up 91 cents, or 1.1%. The more active WTI contract for December settled up 98 cents to $83.42 a barrel.
Crude prices have risen as supply has tightened, with the Organization of the Petroleum Exporting Countries maintaining a slow increase in supply rather than intervening to add more barrels to the market, and as U.S. demand has ramped up.
Oil prices rallied on Wednesday after U.S. crude inventories at the nation's largest storage site hit their lowest level in three years and nationwide fuel stocks fell sharply, a signal of rising demand.
Brent crude futures settled at $85.82 a barrel, a gain of 0.9% or 74 cents and the highest since October 2018.
November U.S. West Texas Intermediate (WTI) crude , which expires on Wednesday, settled at $83.87, up 91 cents, or 1.1%. The more active WTI contract for December settled up 98 cents to $83.42 a barrel.
Crude prices have risen as supply has tightened, with the Organization of the Petroleum Exporting Countries maintaining a slow increase in supply rather than intervening to add more barrels to the market, and as U.S. demand has ramped up.
Oil rises modestly as U.S. crude stockpiles dwindle | Reuters
Oil rises modestly as U.S. crude stockpiles dwindle | Reuters
Oil prices edged higher on Wednesday, rebounding from early losses after U.S. crude stockpiles unexpectedly fell and inventories at the nation's largest storage site hit their lowest level in three years.
Brent crude futures rose 10 cents, or 0.1%, to $85.18 a barrel as of 11:58 a.m. EDT (1558 GMT), close to multi-year highs.
November U.S. West Texas Intermediate (WTI) crude , which expires on Wednesday, rose 34 cents, or 0.4% to $83.30 a barrel, while the more active WTI contract for December was up 22 cents, or 0.3%, to $82.66 a barrel.
Crude prices have risenas supply has tightened, with the Organization of the Petroleum Exporting Countries maintaining a slow increase in supply rather than intervening to add more barrels to the market, and as U.S. demand has ramped up.
Oil prices edged higher on Wednesday, rebounding from early losses after U.S. crude stockpiles unexpectedly fell and inventories at the nation's largest storage site hit their lowest level in three years.
Brent crude futures rose 10 cents, or 0.1%, to $85.18 a barrel as of 11:58 a.m. EDT (1558 GMT), close to multi-year highs.
November U.S. West Texas Intermediate (WTI) crude , which expires on Wednesday, rose 34 cents, or 0.4% to $83.30 a barrel, while the more active WTI contract for December was up 22 cents, or 0.3%, to $82.66 a barrel.
Crude prices have risenas supply has tightened, with the Organization of the Petroleum Exporting Countries maintaining a slow increase in supply rather than intervening to add more barrels to the market, and as U.S. demand has ramped up.
Energy crisis is wake up call for more investment, forum hears | Reuters
Energy crisis is wake up call for more investment, forum hears | Reuters
The current energy crisis is a wake-up call for the need to invest more in the sector to avoid another energy supply crunch, Abu Dhabi National Oil Company (ADNOC) Chief Executive Sultan al-Jaber told a conference on Wednesday.
The oil minister of India, the world's third biggest oil consumer and importer, echoed Jaber's comments, while OPEC's secretary general said oil and gas needed to play a central role in the energy transition.
"Yes, a wake-up call. That there is not enough investment. In addition to that is also the fact that the transition to green energy is also imposing a cost," said the Indian minister, Hardeep Singh Puri, at the CERA Week India Energy Forum.
India is facing its worst power crisis in years and has been hit hard by rising oil prices, with local fuel prices surging to record highs and its trade deficit ballooning to the highest in at least 14 years. read more
The current energy crisis is a wake-up call for the need to invest more in the sector to avoid another energy supply crunch, Abu Dhabi National Oil Company (ADNOC) Chief Executive Sultan al-Jaber told a conference on Wednesday.
The oil minister of India, the world's third biggest oil consumer and importer, echoed Jaber's comments, while OPEC's secretary general said oil and gas needed to play a central role in the energy transition.
"Yes, a wake-up call. That there is not enough investment. In addition to that is also the fact that the transition to green energy is also imposing a cost," said the Indian minister, Hardeep Singh Puri, at the CERA Week India Energy Forum.
India is facing its worst power crisis in years and has been hit hard by rising oil prices, with local fuel prices surging to record highs and its trade deficit ballooning to the highest in at least 14 years. read more
Aramex drives #Dubai bourse higher, #Saudi at 15-year high | Reuters
Aramex drives Dubai bourse higher, Saudi at 15-year high | Reuters
Dubai's stock market ended higher on Wednesday, outperforming its Gulf peers, led by a surge in logistic firm Aramex, while the Saudi index extended gains a day after hitting a 15-year peak.
Dubai's main share index (.DFMGI) finished 1.4% higher, with Aramex (ARMX.DU) soaring 14.9%, its biggest intraday gain since Jan. 2009, after a direct deal worth 1.41 billion dirhams ($383.90 million) for its 295 million shares.
On Tuesday, Aramex also said it was resuming deliveries to-and-from the UAE and Doha. read more
Saudi Arabia, the UAE, Bahrain and Egypt agreed in January to end a dispute that had led them to sever ties with Qatar in 2017 over accusations that Doha supported "terrorism" - a reference to Islamist groups. Doha had denied the charges.
Elsewhere, Emirates NBD Bank (ENBD.DU) added 0.7% after reporting a 61% jump in third-quarter earnings, helped by a recovering economy and demand for retail financing surged. read more
Emirates Integrated Telecommunications (DU.DU) declined 2.8%, following a steep fall in quarterly profit.
Saudi Arabia's benchmark index (.TASI) climbed 0.9%, with Al Rajhi Bank (1120.SE)adding 1.6% and Sahara International Petrochemical Company (Sipchem) (2310.SE) jumping 10%, after posting a strong quarterly profit.
"The market is supported by the strong oil demand and the improving sanitary conditions," said Wael Makarem, senior market strategist at Exness.
In Abu Dhabi, the index (.ADI) eased 0.2%, hit by a 0.9% fall in the United Arab Emirates' largest lender First Abu Dhabi (FAB.AD).
But Emirates Telecommunications Group (ETISALAT.AD) gained 0.3%, as the telecoms firm signed an agreement with Group42 to create the largest data centre provider in the UAE.
Separately, Fertiglobe said its initial public offering was priced at 2.55 dirhams a share, and it was expecting to raise around $795 million for its shareholders. read more
Its shares are expected to list on the Abu Dhabi stock market on Oct. 27, the statement said.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.6%, extending losses from the previous session when it snapped a 10-day winning streak on profit taking.
Egypt's e-finance for Digital and Financial Investments (EFIH.CA) soared 50.2% on its debut, in a boost for the country's ambitious privatisation plans that could see several state enterprises go public in the coming years.
Dubai's main share index (.DFMGI) finished 1.4% higher, with Aramex (ARMX.DU) soaring 14.9%, its biggest intraday gain since Jan. 2009, after a direct deal worth 1.41 billion dirhams ($383.90 million) for its 295 million shares.
On Tuesday, Aramex also said it was resuming deliveries to-and-from the UAE and Doha. read more
Saudi Arabia, the UAE, Bahrain and Egypt agreed in January to end a dispute that had led them to sever ties with Qatar in 2017 over accusations that Doha supported "terrorism" - a reference to Islamist groups. Doha had denied the charges.
Elsewhere, Emirates NBD Bank (ENBD.DU) added 0.7% after reporting a 61% jump in third-quarter earnings, helped by a recovering economy and demand for retail financing surged. read more
Emirates Integrated Telecommunications (DU.DU) declined 2.8%, following a steep fall in quarterly profit.
Saudi Arabia's benchmark index (.TASI) climbed 0.9%, with Al Rajhi Bank (1120.SE)adding 1.6% and Sahara International Petrochemical Company (Sipchem) (2310.SE) jumping 10%, after posting a strong quarterly profit.
"The market is supported by the strong oil demand and the improving sanitary conditions," said Wael Makarem, senior market strategist at Exness.
In Abu Dhabi, the index (.ADI) eased 0.2%, hit by a 0.9% fall in the United Arab Emirates' largest lender First Abu Dhabi (FAB.AD).
But Emirates Telecommunications Group (ETISALAT.AD) gained 0.3%, as the telecoms firm signed an agreement with Group42 to create the largest data centre provider in the UAE.
Separately, Fertiglobe said its initial public offering was priced at 2.55 dirhams a share, and it was expecting to raise around $795 million for its shareholders. read more
Its shares are expected to list on the Abu Dhabi stock market on Oct. 27, the statement said.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.6%, extending losses from the previous session when it snapped a 10-day winning streak on profit taking.
Egypt's e-finance for Digital and Financial Investments (EFIH.CA) soared 50.2% on its debut, in a boost for the country's ambitious privatisation plans that could see several state enterprises go public in the coming years.
Oil falls as China considers intervention to ease coal crunch | Reuters
Oil falls as China considers intervention to ease coal crunch | Reuters
Oil prices fell on Wednesday after the Chinese government stepped up efforts to tame record high coal prices and ensure coal mines operate at full capacity as Beijing moved to ease a power shortage.
Brent crude futures fell 85 cents, or 1%, to $84.23 a barrel at 1217 GMT, paring a 75 cent rise in the previous session, but still lingering close to multi-year highs.
November U.S. West Texas Intermediate (WTI) crude , which expires on Wednesday, fell 85 cents, or 1%, to $82.11 a barrel. The more active WTI contract for December was down 98 cents, or 1.2%, to $81.46 a barrel.
"China is planning to take steps to combat the steep rises in the domestic coal market ... which could put considerable pressure on the coal price there and reverse the fuel switch to oil," Commerzbank said.
Oil prices fell on Wednesday after the Chinese government stepped up efforts to tame record high coal prices and ensure coal mines operate at full capacity as Beijing moved to ease a power shortage.
Brent crude futures fell 85 cents, or 1%, to $84.23 a barrel at 1217 GMT, paring a 75 cent rise in the previous session, but still lingering close to multi-year highs.
November U.S. West Texas Intermediate (WTI) crude , which expires on Wednesday, fell 85 cents, or 1%, to $82.11 a barrel. The more active WTI contract for December was down 98 cents, or 1.2%, to $81.46 a barrel.
"China is planning to take steps to combat the steep rises in the domestic coal market ... which could put considerable pressure on the coal price there and reverse the fuel switch to oil," Commerzbank said.
Emirates Islamic swings to $218mln net profit on lower impairment costs | ZAWYA MENA Edition
Emirates Islamic swings to $218mln net profit on lower impairment costs | ZAWYA MENA Edition
Emirates Islamic’s earnings have rebounded on the back of higher non-funded income and lower impairment allowances.
The Islamic lender reported on Wednesday a net profit of 804 million dirhams ($218.8 million) for the first nine months of the year, up 358 percent from a year ago, when net losses reached 311 million dirhams.
Total income also grew 14 percent year-on-year to 1.798 billion dirhams during the same period, while expenses fell one percent year-on-year to 808 million dirhams.
In a statement to the Dubai Financial Market (DFM), the bank said it has achieved “strong capital and liquidity”, combined with a “healthy deposit mix”.
It said total assets have remained “robust” at 66 billion dirhams, while customer financing went up 4 percent to 42.4 billion dirhams. Total customer deposits also rose 4 percent to 48.9 billion dirhams.
“As a key contributor to the development of the overall Islamic finance sector, Emirates Islamic has asserted its position as a leading financial institution in the UAE, and this is reflected in our financial performance,” said Salah Mohammed Amin, the bank’s CEO.
Emirates Islamic’s earnings have rebounded on the back of higher non-funded income and lower impairment allowances.
The Islamic lender reported on Wednesday a net profit of 804 million dirhams ($218.8 million) for the first nine months of the year, up 358 percent from a year ago, when net losses reached 311 million dirhams.
Total income also grew 14 percent year-on-year to 1.798 billion dirhams during the same period, while expenses fell one percent year-on-year to 808 million dirhams.
In a statement to the Dubai Financial Market (DFM), the bank said it has achieved “strong capital and liquidity”, combined with a “healthy deposit mix”.
It said total assets have remained “robust” at 66 billion dirhams, while customer financing went up 4 percent to 42.4 billion dirhams. Total customer deposits also rose 4 percent to 48.9 billion dirhams.
“As a key contributor to the development of the overall Islamic finance sector, Emirates Islamic has asserted its position as a leading financial institution in the UAE, and this is reflected in our financial performance,” said Salah Mohammed Amin, the bank’s CEO.
#Saudi Solar Prices Surge Amid Silicon-Supply Crunch - Bloomberg
Saudi Solar Prices Surge Amid Silicon-Supply Crunch - Bloomberg
Bid prices to develop Saudi Arabia’s latest round of solar-power projects rose substantially from earlier this year, underscoring how soaring panel costs are hitting the renewable-energy industry.
China’s JinkoSolar Holding Company Limited submitted the lowest shortlisted offer to generate electricity from a 300-megawatt plant, according to a document on the Saudi Ministry of Energy’s website. At 1.48 cents a kilowatt-hour, it was around 40% above a contract of 1.04 cents per kWh that Saudi Arabia signed in early 2021, saying it was the lowest tariff on record globally.
France’s TotalEnergies SE, Riyadh-based ACWA Power International and Abu Dhabi-based Masdar were among the other bidders.
The cost of polysilicon, a material used in photovoltaic solar panels, has risen to its highest since April 2019, partly due to factory shutdowns in China. That’s spurred concerns that countries will delay or cut back investments in clean energy.
Bid prices to develop Saudi Arabia’s latest round of solar-power projects rose substantially from earlier this year, underscoring how soaring panel costs are hitting the renewable-energy industry.
China’s JinkoSolar Holding Company Limited submitted the lowest shortlisted offer to generate electricity from a 300-megawatt plant, according to a document on the Saudi Ministry of Energy’s website. At 1.48 cents a kilowatt-hour, it was around 40% above a contract of 1.04 cents per kWh that Saudi Arabia signed in early 2021, saying it was the lowest tariff on record globally.
France’s TotalEnergies SE, Riyadh-based ACWA Power International and Abu Dhabi-based Masdar were among the other bidders.
The cost of polysilicon, a material used in photovoltaic solar panels, has risen to its highest since April 2019, partly due to factory shutdowns in China. That’s spurred concerns that countries will delay or cut back investments in clean energy.
#Dubai Bourse CEO Rebukes Switzerland Over Letter on #UAE Gold - Bloomberg
Dubai Bourse CEO Rebukes Switzerland Over Letter on UAE Gold - Bloomberg
The head of Dubai’s commodity exchange took a swipe at Swiss authorities for telling their refiners to tighten up audits on gold imports from the United Arab Emirates.
Switzerland this month wrote to refineries urging that sufficient steps are taken to identify the true country of origin for all gold coming from the UAE. There have been concerns from non-governmental organizations in recent years that regulatory loopholes allow gold linked to conflict and money laundering to trade in Dubai, heightening worries that such metal may end up in Europe via the key refining hub of Switzerland.
In a LinkedIn post on Wednesday, the chief executive officer of the Dubai Multi Commodities Centre criticized the Swiss letter and accused authorities there of hypocrisy.
“Is taking a blanket approach to isolating key trading partners such as the UAE, rather than working with them to address specific, evidence-based issues, a credible way to protect its gold industry?” DMCC CEO Ahmed Bin Sulayem said in the post.
The DMCC CEO pointed out that its rules force members to follow the Organisation for Economic Co-operation and Development’s guidelines on sourcing minerals. He added that he wanted to work with the Swiss gold industry in a more collaborative way.
Switzerland’s State Secretariat for Economic Affairs, which sent the letter to refineries this month, didn’t immediately respond to a request for comment on the DMCC’s response.
The head of Dubai’s commodity exchange took a swipe at Swiss authorities for telling their refiners to tighten up audits on gold imports from the United Arab Emirates.
Switzerland this month wrote to refineries urging that sufficient steps are taken to identify the true country of origin for all gold coming from the UAE. There have been concerns from non-governmental organizations in recent years that regulatory loopholes allow gold linked to conflict and money laundering to trade in Dubai, heightening worries that such metal may end up in Europe via the key refining hub of Switzerland.
In a LinkedIn post on Wednesday, the chief executive officer of the Dubai Multi Commodities Centre criticized the Swiss letter and accused authorities there of hypocrisy.
“Is taking a blanket approach to isolating key trading partners such as the UAE, rather than working with them to address specific, evidence-based issues, a credible way to protect its gold industry?” DMCC CEO Ahmed Bin Sulayem said in the post.
The DMCC CEO pointed out that its rules force members to follow the Organisation for Economic Co-operation and Development’s guidelines on sourcing minerals. He added that he wanted to work with the Swiss gold industry in a more collaborative way.
Switzerland’s State Secretariat for Economic Affairs, which sent the letter to refineries this month, didn’t immediately respond to a request for comment on the DMCC’s response.
Franklin Templeton's Kronfol on Energy Deals - Bloomberg video
Franklin Templeton's Kronfol on Energy Deals - Bloomberg
Dino Kronfol, Franklin Templeton CIO discusses Saudi Arabia's energy green shift. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Abraham Accords Boosts Trade between #UAE & #Israel - Bloomberg video
Abraham Accords Boosts Trade between UAE & Israel - Bloomberg
Between January and July of this year, trade in goods between Israel and the UAE amounted to 610 million dollars. Dov Kotler, CEO at Bank Hapoalim gives his take on how commerce between the trade partners has led to investment opportunities. He speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Oil drops as China considers intervention to ease coal crunch | Reuters
Oil drops as China considers intervention to ease coal crunch | Reuters
Oil prices fell on Wednesday after the Chinese government stepped up efforts to tame record high coal prices and ensure coal mines operate at full capacity as Beijing moved to ease a power shortage.
Brent crude futures dropped 73 cents, or 0.9%, to $84.35 a barrel at 1003 GMT, paring a 75 cent rise in the previous session, but still lingering close to multi-year highs.
U.S. West Texas Intermediate (WTI) crude futures for November, which expires on Wednesday, fell 68 cents, or 0.8%, to $82.28 a barrel. The more active WTI contract for December was down 80 cents, or 1%, to $81.64 a barrel.
"China is planning to take steps to combat the steep rises in the domestic coal market ... which could put considerable pressure on the coal price there and reverse the fuel switch to oil," Commerzbank said.
Oil prices fell on Wednesday after the Chinese government stepped up efforts to tame record high coal prices and ensure coal mines operate at full capacity as Beijing moved to ease a power shortage.
Brent crude futures dropped 73 cents, or 0.9%, to $84.35 a barrel at 1003 GMT, paring a 75 cent rise in the previous session, but still lingering close to multi-year highs.
U.S. West Texas Intermediate (WTI) crude futures for November, which expires on Wednesday, fell 68 cents, or 0.8%, to $82.28 a barrel. The more active WTI contract for December was down 80 cents, or 1%, to $81.64 a barrel.
"China is planning to take steps to combat the steep rises in the domestic coal market ... which could put considerable pressure on the coal price there and reverse the fuel switch to oil," Commerzbank said.
Middle Eastern Borrowers Are on Track to Raise Record Loan Sums - Bloomberg
Middle Eastern Borrowers Are on Track to Raise Record Loan Sums - Bloomberg
Companies from the Middle East and North Africa region look poised to raise record sums from loans as progress with vaccination and partial reopening of tourism spurs investment.
The United Arab Emirates is among countries that have been easing travel restrictions while Saudi Arabia has been rising in Bloomberg’s latest Covid resilience rankings.
Firms from the region have borrowed $103 billion of loans so far this year, already surpassing the $90 billion sought in the whole of 2020. With the jump in oil prices also providing an economic boost, loan arrangers see a good chance that volumes will at least match the $125 billion record for the region seen in 2018.
“Market activity has picked up especially in the second half of the year as the pandemic effects began to ease,” said Fawaz Abu Sneineh, acting head of global corporate finance with First Abu Dhabi Bank PJSC. “Increased liquidity has resulted in competition between banks, enabling the stronger borrowers, particularly sovereign and quasi-sovereign entities, to raise financing on more borrower friendly terms compared to the previous twelve months.”
Saudi Arabia’s sovereign wealth fund has sealed the largest loan deal so far this year, with a $15 billion revolving facility from 17 banks in March.
“The pool of liquidity is also expanding to include Asian and European involvement as well as regional lenders, even for tighter-priced facilities in the private sector space,” said Aydın Emek, Head of Loan Syndicate & Distribution, Middle East North Africa & Turkey, with HSBC Holdings Plc.
Companies from the Middle East and North Africa region look poised to raise record sums from loans as progress with vaccination and partial reopening of tourism spurs investment.
The United Arab Emirates is among countries that have been easing travel restrictions while Saudi Arabia has been rising in Bloomberg’s latest Covid resilience rankings.
Firms from the region have borrowed $103 billion of loans so far this year, already surpassing the $90 billion sought in the whole of 2020. With the jump in oil prices also providing an economic boost, loan arrangers see a good chance that volumes will at least match the $125 billion record for the region seen in 2018.
“Market activity has picked up especially in the second half of the year as the pandemic effects began to ease,” said Fawaz Abu Sneineh, acting head of global corporate finance with First Abu Dhabi Bank PJSC. “Increased liquidity has resulted in competition between banks, enabling the stronger borrowers, particularly sovereign and quasi-sovereign entities, to raise financing on more borrower friendly terms compared to the previous twelve months.”
Saudi Arabia’s sovereign wealth fund has sealed the largest loan deal so far this year, with a $15 billion revolving facility from 17 banks in March.
“The pool of liquidity is also expanding to include Asian and European involvement as well as regional lenders, even for tighter-priced facilities in the private sector space,” said Aydın Emek, Head of Loan Syndicate & Distribution, Middle East North Africa & Turkey, with HSBC Holdings Plc.
French express parcel firm Geopost acquires 20.15% stake in Dubai's Aramex | Reuters
French express parcel firm Geopost acquires 20.15% stake in Dubai's Aramex | Reuters
GeoPost, the express parcel arm of French Groupe La Poste (LAPST.UL), has acquired a 20.15% stake in Dubai-listed courier firm Aramex (ARMX.DU), according to a regulatory filing on Wednesday.
The French express logistics firm acquired about 295 million shares in Aramex, valuing the deal at 1.4 billion dirhams ($381.18 million), a filing on the Dubai Financial Market showed.
GeoPost, the express parcel arm of French Groupe La Poste (LAPST.UL), has acquired a 20.15% stake in Dubai-listed courier firm Aramex (ARMX.DU), according to a regulatory filing on Wednesday.
The French express logistics firm acquired about 295 million shares in Aramex, valuing the deal at 1.4 billion dirhams ($381.18 million), a filing on the Dubai Financial Market showed.
#AbuDhabi wealth fund to lead GoTo's pre-IPO funding with $400 mln | Reuters
Abu Dhabi wealth fund to lead GoTo's pre-IPO funding with $400 mln | Reuters
The Abu Dhabi Investment Authority (ADIA) will invest $400 million to lead a pre-IPO fundraising exercise by Indonesia's biggest tech group, GoTo, the firms said in a joint statement on Wednesday.
Backed by investors such as Alibaba Group Holding (9988.HK), Softbank Vision Fund and Singapore wealth fund GIC, GoTo is among the firms to benefit from more people flocking to digital platforms during pandemic lockdowns that confine them to homes.
GoTo's Chief Executive Andre Soelistyo hailed the investment by the Middle Eastern sovereign wealth fund as "the first in our pre-IPO fundraising as we prime our business for exponential growth over the coming months and years."
Sources previously told Reuters that GoTo, formed by merging ride-hailing-to-payments firm Gojek and e-commerce leader Tokopedia in May, was set to complete a pre-IPO funding exercise to raise up to $2 billion but regulatory delays threatened to push its local listing plans to early next year.
"This investment in GoTo is aligned with a number of our key investment themes," said Hamad Shahwan Al Dhaheri, the executive director of the private equities department of ADIA.
The digital economy in Southeast Asia's fast-growing markets was one of these areas, he added in Wednesday's statement.
The Abu Dhabi Investment Authority (ADIA) will invest $400 million to lead a pre-IPO fundraising exercise by Indonesia's biggest tech group, GoTo, the firms said in a joint statement on Wednesday.
Backed by investors such as Alibaba Group Holding (9988.HK), Softbank Vision Fund and Singapore wealth fund GIC, GoTo is among the firms to benefit from more people flocking to digital platforms during pandemic lockdowns that confine them to homes.
GoTo's Chief Executive Andre Soelistyo hailed the investment by the Middle Eastern sovereign wealth fund as "the first in our pre-IPO fundraising as we prime our business for exponential growth over the coming months and years."
Sources previously told Reuters that GoTo, formed by merging ride-hailing-to-payments firm Gojek and e-commerce leader Tokopedia in May, was set to complete a pre-IPO funding exercise to raise up to $2 billion but regulatory delays threatened to push its local listing plans to early next year.
"This investment in GoTo is aligned with a number of our key investment themes," said Hamad Shahwan Al Dhaheri, the executive director of the private equities department of ADIA.
The digital economy in Southeast Asia's fast-growing markets was one of these areas, he added in Wednesday's statement.
Fertiglobe sets mid-range IPO price, gross proceeds of around $795 mln | Reuters
Fertiglobe sets mid-range IPO price, gross proceeds of around $795 mln | Reuters
Fertiglobe, a joint venture between Abu Dhabi National Oil Co and chemical producer OCI (OCI.AS), said its initial public offering was priced at 2.55 dirhams ($0.6943) a share, raising around $795 million for its shareholders.
The price is in the middle of the 2.45-2.65 dirhams per share range the company had set out and gives it a market capitalisation of about $5.8 billion, Fertiglobe said in a statement on Wednesday.
"The final offer price was set in the middle of the range by the selling shareholders, with the objective of providing an attractive investment opportunity for new shareholders," the statement said.
The maker of fertilisers and clean ammonia products said the offering received strong demand from international, regional and local investors.
Its shares are expected to list on the Abu Dhabi stock market on October 27, the statement said.
Fertiglobe is the second ADNOC-backed company seeking a listing on the ADX after ADNOC Drilling raised $1.1 billion in its IPO.
Fertiglobe, a joint venture between Abu Dhabi National Oil Co and chemical producer OCI (OCI.AS), said its initial public offering was priced at 2.55 dirhams ($0.6943) a share, raising around $795 million for its shareholders.
The price is in the middle of the 2.45-2.65 dirhams per share range the company had set out and gives it a market capitalisation of about $5.8 billion, Fertiglobe said in a statement on Wednesday.
"The final offer price was set in the middle of the range by the selling shareholders, with the objective of providing an attractive investment opportunity for new shareholders," the statement said.
The maker of fertilisers and clean ammonia products said the offering received strong demand from international, regional and local investors.
Its shares are expected to list on the Abu Dhabi stock market on October 27, the statement said.
Fertiglobe is the second ADNOC-backed company seeking a listing on the ADX after ADNOC Drilling raised $1.1 billion in its IPO.
#Dubai’s Biggest Bank Still Waiting for Asset Quality to Improve - Bloomberg
Dubai’s Biggest Bank Still Waiting for Asset Quality to Improve - Bloomberg
Emirates NBD PJSC reported a surge in earnings and said impairment charges dropped sharply even as asset quality barely improved.
Dubai’s biggest bank said its nine-month profit rose an annual 29% to 7.3 billion dirhams ($2 billion), while impairment allowances dropped 42%. The ratio of non-performing loans was at 6.2% as of Sept. 30, unchanged from a year earlier, according to a statement on Wednesday.
Dubai, which kicked off its $7 billion Expo this month, has reaped the benefits of a faster reopening after the pandemic paralyzed trade and travel. While higher oil prices also mean a boon for the United Arab Emirates, of which Dubai is a part, S&P Global Ratings has warned that weak tourism will likely long remain a drag on the economy of the Middle East’s commercial hub.
Emirates NBD said it had a record quarter for demand for personal loans and credit cards. Its cost of risk, or a proportion of new loan-loss provisions to total loans, dropped to 106 basis points as of Sept. 30, from 176 basis points a year earlier, reaching a level that’s at “the low-end of the pre-pandemic range,” according to Group Chief Financial Officer Patrick Sullivan.
“The balance sheet remains rock solid with a further improvement in capital, liquidity and credit quality” during the third quarter, Sullivan said in the statement.
The UAE’s central bank has meanwhile begun winding down an economic support program launched in response to the coronavirus, which helped curb risks for lenders. The withdrawal of forbearance measures will likely lay bare the impact of the pandemic on weaker businesses.
The loan deferral component of the stimulus program will expire by the end of 2021 with financial institutions able to carry on tapping a collateralized 50-billion-dirham liquidity facility until the middle of 2022.
Emirates NBD also said its international expansion has continued, with additional branches in Saudi Arabia and approval granted to expand the bank’s India retail network. Group Chief Executive Officer Shayne Nelson said 36% of income now comes from international operations.
Emirates NBD nine-month numbers vs year ago:
Emirates NBD PJSC reported a surge in earnings and said impairment charges dropped sharply even as asset quality barely improved.
Dubai’s biggest bank said its nine-month profit rose an annual 29% to 7.3 billion dirhams ($2 billion), while impairment allowances dropped 42%. The ratio of non-performing loans was at 6.2% as of Sept. 30, unchanged from a year earlier, according to a statement on Wednesday.
Dubai, which kicked off its $7 billion Expo this month, has reaped the benefits of a faster reopening after the pandemic paralyzed trade and travel. While higher oil prices also mean a boon for the United Arab Emirates, of which Dubai is a part, S&P Global Ratings has warned that weak tourism will likely long remain a drag on the economy of the Middle East’s commercial hub.
Emirates NBD said it had a record quarter for demand for personal loans and credit cards. Its cost of risk, or a proportion of new loan-loss provisions to total loans, dropped to 106 basis points as of Sept. 30, from 176 basis points a year earlier, reaching a level that’s at “the low-end of the pre-pandemic range,” according to Group Chief Financial Officer Patrick Sullivan.
“The balance sheet remains rock solid with a further improvement in capital, liquidity and credit quality” during the third quarter, Sullivan said in the statement.
The UAE’s central bank has meanwhile begun winding down an economic support program launched in response to the coronavirus, which helped curb risks for lenders. The withdrawal of forbearance measures will likely lay bare the impact of the pandemic on weaker businesses.
The loan deferral component of the stimulus program will expire by the end of 2021 with financial institutions able to carry on tapping a collateralized 50-billion-dirham liquidity facility until the middle of 2022.
Emirates NBD also said its international expansion has continued, with additional branches in Saudi Arabia and approval granted to expand the bank’s India retail network. Group Chief Executive Officer Shayne Nelson said 36% of income now comes from international operations.
Emirates NBD nine-month numbers vs year ago:
- Total income 17.3 billion dirhams vs 18.3 billion dirhams
- Impairments 3.7 billion dirhams vs 6.4 billion dirhams
- Operating profit 7.9 billion dirhams vs 6.1 billion dirhams
- 157.2% liquidity coverage ratio and 16.1% common equity Tier-1 ratio
- Total assets stable at 699 billion dirhams
Aramex buoys #Dubai bourse, #Saudi at 15-year high | Reuters
Aramex buoys Dubai bourse, Saudi at 15-year high | Reuters
Dubai's stock market rose in early trade on Wednesday, outperforming its regional peers, while the Saudi index held on to a 15-year high.
Dubai's main share index (.DFMGI) advanced 0.8%. Aramex (ARMX.DU) surged 14.9%, its biggest intraday gain since Jan. 2009, after a direct deal worth 1.41 billion dirhams ($383.90 million) was implemented on its 295 million shares.
On Tuesday, the logistics firm also resumed deliveries to and from the United Arab Emirates and Doha.
Saudi Arabia, the UAE, Bahrain and Egypt agreed in January to end a dispute that had led them to sever ties with Qatar in 2017 over accusations that Doha supported "terrorism" - a reference to Islamist groups. Doha denied the charges.
Among other gainers, top lender Emirates NBD (ENBD.DU) added 0.4% after a 61% jump in third-quarter earnings, as impairment charges slumped on a recovering economy and demand for retail financing surged. read more
On the other hand, Emirates Integrated Telecommunications Co (DU.DU) dropped 0.6%, on course to extend losses for a second session.
The telecoms firm reported a quarterly net profit of 283.2 million dirhams ($77.11 million) on Tuesday, down from 824.1 million dirhams a year earlier.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, with Al Rajhi bank (1120.SE) rising 0.9%, while Sahara International Petrochemical Company (2310.SE) soared more than 6%, after it reported a sharp rise in quarterly net profit.
The kingdom kept its ranking as China's top crude supplier for a tenth month in September, increasing its volumes by 2% from a year earlier, customs data showed on Wednesday.
In Abu Dhabi, the index (.ADI) eased 0.1%, hit by a 0.6% decrease in the country's largest lender First Abu Dhabi Bank (FAB.AD).
Separately, Fertiglobe, a joint venture between Abu Dhabi National Oil Co and chemical producer OCI (OCI.AS), said its initial public offering was priced at 2.55 dirhams a share, raising around $795 million for its shareholders. read more
Its shares are expected to list on the Abu Dhabi stock market on October 27, the statement said.
The Qatari index (.QSI) rose 0.2%, helped by a 1.1% gain in petrochemical maker Industries Qatar (IQCD.QA).
Dubai's stock market rose in early trade on Wednesday, outperforming its regional peers, while the Saudi index held on to a 15-year high.
Dubai's main share index (.DFMGI) advanced 0.8%. Aramex (ARMX.DU) surged 14.9%, its biggest intraday gain since Jan. 2009, after a direct deal worth 1.41 billion dirhams ($383.90 million) was implemented on its 295 million shares.
On Tuesday, the logistics firm also resumed deliveries to and from the United Arab Emirates and Doha.
Saudi Arabia, the UAE, Bahrain and Egypt agreed in January to end a dispute that had led them to sever ties with Qatar in 2017 over accusations that Doha supported "terrorism" - a reference to Islamist groups. Doha denied the charges.
Among other gainers, top lender Emirates NBD (ENBD.DU) added 0.4% after a 61% jump in third-quarter earnings, as impairment charges slumped on a recovering economy and demand for retail financing surged. read more
On the other hand, Emirates Integrated Telecommunications Co (DU.DU) dropped 0.6%, on course to extend losses for a second session.
The telecoms firm reported a quarterly net profit of 283.2 million dirhams ($77.11 million) on Tuesday, down from 824.1 million dirhams a year earlier.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, with Al Rajhi bank (1120.SE) rising 0.9%, while Sahara International Petrochemical Company (2310.SE) soared more than 6%, after it reported a sharp rise in quarterly net profit.
The kingdom kept its ranking as China's top crude supplier for a tenth month in September, increasing its volumes by 2% from a year earlier, customs data showed on Wednesday.
In Abu Dhabi, the index (.ADI) eased 0.1%, hit by a 0.6% decrease in the country's largest lender First Abu Dhabi Bank (FAB.AD).
Separately, Fertiglobe, a joint venture between Abu Dhabi National Oil Co and chemical producer OCI (OCI.AS), said its initial public offering was priced at 2.55 dirhams a share, raising around $795 million for its shareholders. read more
Its shares are expected to list on the Abu Dhabi stock market on October 27, the statement said.
The Qatari index (.QSI) rose 0.2%, helped by a 1.1% gain in petrochemical maker Industries Qatar (IQCD.QA).
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