Oil falls to near 4-week low after big build in U.S. inventories | Reuters
Oil prices fell to a near four-week low on Wednesday, after U.S. crude stocks rose more than expected, as gasoline inventories in the world's largest oil consumer hit a four-year low.
Brent crude futures fell $2.73, or 3.2%, to settle at $81.99 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $3.05, or 3.6%, to settle at $80.86.
That was the biggest daily percentage declines for both benchmarks since early August and the lowest closes for Brent since Oct. 7 and WTI since Oct. 13.
Weekly crude stocks rose more by 3.3 million barrels, more than expected, but gasoline stocks fell to their lowest level since November 2017. U.S. oil market supply has tightened, with stocks at the Cushing, Oklahoma storage hub at their lowest in three years.
Wednesday 3 November 2021
With shale subdued, #Saudi, Russia become more comfortable with oil rally | Reuters
With shale subdued, Saudi, Russia become more comfortable with oil rally | Reuters
Saudi Arabia and Russia are more confident higher oil prices will not elicit a fast response from the U.S. shale industry, OPEC+ sources said, reflecting a desire to rebuild revenue and supporting the case against raising OPEC+ output more quickly.
The two countries lead the OPEC+ group of the Organization of the Petroleum Exporting Countries and allies. OPEC+ supply restraint has underpinned a rally that pushed global benchmark Brent crude to a three-year high of $86.70 last month.
The signs that Riyadh and Moscow are less wary about higher prices help explain why OPEC+ has rebuffed calls from the United States and other consumers for a more rapid unwinding of output cuts made last year during the worst of the pandemic.
"OPEC+ keeps an eye on U.S. oil production and reserves and for the time being the alliance has no worries about that," said a Russian OPEC+ source. "U.S. shale oil output is recovering relatively modestly."
Saudi Arabia and Russia are more confident higher oil prices will not elicit a fast response from the U.S. shale industry, OPEC+ sources said, reflecting a desire to rebuild revenue and supporting the case against raising OPEC+ output more quickly.
The two countries lead the OPEC+ group of the Organization of the Petroleum Exporting Countries and allies. OPEC+ supply restraint has underpinned a rally that pushed global benchmark Brent crude to a three-year high of $86.70 last month.
The signs that Riyadh and Moscow are less wary about higher prices help explain why OPEC+ has rebuffed calls from the United States and other consumers for a more rapid unwinding of output cuts made last year during the worst of the pandemic.
"OPEC+ keeps an eye on U.S. oil production and reserves and for the time being the alliance has no worries about that," said a Russian OPEC+ source. "U.S. shale oil output is recovering relatively modestly."
Biggest #AbuDhabi Developer Is Shopping for Large Property Deals - Bloomberg
Biggest Abu Dhabi Developer Is Shopping for Large Property Deals - Bloomberg
Aldar Properties PJSC has built up a cash war chest and is “actively” considering investments in large real estate portfolios as Abu Dhabi’s biggest developer seeks to grow its management business, a senior executive said.
The company, armed with 6.8 billion dirhams ($1.85 billion) in capital, has the resources to make purchases both in its home market and around the United Arab Emirates, Chief Financial Officer Greg Fewer said on a conference call Wednesday.
With holdings spanning retail, commercial, residential and school properties, “those are the sectors where we see very interesting acquisition opportunities within Abu Dhabi and the UAE to scale all those different segments,” Fewer said, without naming a likely target.
Aldar, which primarily operates in Abu Dhabi, has been chasing growth in a cramped market. At home, the company is growing its management business after acquiring Asteco Property Management last year. Beyond the UAE, it’s also looking to gain a foothold in Egypt through a proposed acquisition of a majority stake in a developer known as Sodic.
Aldar Properties PJSC has built up a cash war chest and is “actively” considering investments in large real estate portfolios as Abu Dhabi’s biggest developer seeks to grow its management business, a senior executive said.
The company, armed with 6.8 billion dirhams ($1.85 billion) in capital, has the resources to make purchases both in its home market and around the United Arab Emirates, Chief Financial Officer Greg Fewer said on a conference call Wednesday.
With holdings spanning retail, commercial, residential and school properties, “those are the sectors where we see very interesting acquisition opportunities within Abu Dhabi and the UAE to scale all those different segments,” Fewer said, without naming a likely target.
Aldar, which primarily operates in Abu Dhabi, has been chasing growth in a cramped market. At home, the company is growing its management business after acquiring Asteco Property Management last year. Beyond the UAE, it’s also looking to gain a foothold in Egypt through a proposed acquisition of a majority stake in a developer known as Sodic.
#Saudi Wealth Fund Said to Weigh Deal to Form Mobile Towers Giant - Bloomberg
Saudi Wealth Fund Said to Weigh Deal to Form Mobile Towers Giant - Bloomberg
The Public Investment Fund is weighing a deal to combine the mobile phone infrastructure of Saudi Telecom Co. and Zain Saudi Arabia in a merger that would form the kingdom’s largest cellular towers company, according to people familiar with the matter.
If completed, the deal would create a firm with 23,000 towers, which the Saudi wealth fund could potentially list on the local bourse, the people said. A merger would cut overlap in places where both firms have towers, making it more efficient to invest in upgrading coverage and mobile internet speeds, they said, asking not to be identified as the information is private.
The talks are still at an early stage and the PIF, as the wealth fund is known, may decide against the transaction. The PIF declined to comment while STC and Zain Saudi didn’t immediately respond to requests for comment.
Telecom operators globally are seeking to derive more value out of their tower portfolios, taking advantage of rising investor appetite for such assets. MTN Group Ltd. is said to be in talks with American Towers Inc. and IHS Holdings Ltd. about the sale-and-lease back of its South African tower holdings, while Vodafone Group Plc completed an initial public offering of its tower business earlier this year.
STC, which is majority owned by the PIF, spun out its more than 15,000 towers into a new subsidiary called Tawal in 2019 and capitalized it with 2.5 billion riyals ($670 million). Meanwhile, Zain Saudi has approved offers from investors including the PIF to buy 80% of its towers unit, valuing the business at $807 million.
With assets estimated at $450 billion, the PIF is playing a more active role in the domestic economy by channeling investment, leading consolidation in industries like banking and listing state assets.
Despite years of the three main mobile operators trying to reach a deal with each other or with external investors to sell off their mobile towers, none of them have managed to close a transaction yet.
The Public Investment Fund is weighing a deal to combine the mobile phone infrastructure of Saudi Telecom Co. and Zain Saudi Arabia in a merger that would form the kingdom’s largest cellular towers company, according to people familiar with the matter.
If completed, the deal would create a firm with 23,000 towers, which the Saudi wealth fund could potentially list on the local bourse, the people said. A merger would cut overlap in places where both firms have towers, making it more efficient to invest in upgrading coverage and mobile internet speeds, they said, asking not to be identified as the information is private.
The talks are still at an early stage and the PIF, as the wealth fund is known, may decide against the transaction. The PIF declined to comment while STC and Zain Saudi didn’t immediately respond to requests for comment.
Telecom operators globally are seeking to derive more value out of their tower portfolios, taking advantage of rising investor appetite for such assets. MTN Group Ltd. is said to be in talks with American Towers Inc. and IHS Holdings Ltd. about the sale-and-lease back of its South African tower holdings, while Vodafone Group Plc completed an initial public offering of its tower business earlier this year.
STC, which is majority owned by the PIF, spun out its more than 15,000 towers into a new subsidiary called Tawal in 2019 and capitalized it with 2.5 billion riyals ($670 million). Meanwhile, Zain Saudi has approved offers from investors including the PIF to buy 80% of its towers unit, valuing the business at $807 million.
With assets estimated at $450 billion, the PIF is playing a more active role in the domestic economy by channeling investment, leading consolidation in industries like banking and listing state assets.
Despite years of the three main mobile operators trying to reach a deal with each other or with external investors to sell off their mobile towers, none of them have managed to close a transaction yet.
Mideast Stocks: #Dubai stocks at 3-year high on bourse expansion plan | ZAWYA MENA Edition
Mideast Stocks: Dubai stocks at 3-year high on bourse expansion plan | ZAWYA MENA Edition
Dubai's stock market ended higher on Wednesday, reaching its highest in over three years, buildng on gains from the previous session when stocks jumped following the emirate's plans to launch a multi-billion dirham market-maker fund and intitial public offerings.
Dubai's main share index jumped 3.8%, as most stocks were trading in the black, including blue-chip developer Emaar Properties EMAR.DU with a 7.8% jump, its highest since Oct. 2019.
Dubai plans to launch a 2 billion dirham ($545 million) market-maker fund to boost trading on its stock market, state news agency WAM reported, citing the emirate's deputy ruler Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum.
He also said a committee overseeing the stock market's development approved a goal to double the financial market's size to 3 trillion dirhams, and that 10 state and state-related firms would be listed on Dubai Financial Market (DFM).
Sheikh Maktoum, who oversees stock markets in the emirate, later tweeted that state-owned utility Dubai Electricity & Water Authority would be listed on Dubai bourse in the coming months.
The government's intent to strengthen the local bourse was widely welcomed as the DFM missed such big events while other neighboring markets enjoyed new additions and were able to attract liquidity and investors, said Wael Makarem, senior market strategist at Exness.
Among other gainers, DFM surged 14.9% to notch its biggest intraday gain in about 18 months.
Saudi Arabia's benchmark index dropped 0.6%, hit by a 0.8% fall in oil giant Saudi Aramco.
Oil prices fell as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, meets on Thursday to review its policy and is expected to reconfirm plans for steady monthly increases despite calls for a raise.
In Abu Dhabi, the index eased 0.1%, a day after it reached a record high, with conglomerate International Holding losing 0.2%.
Outside the Gulf, Egypt's blue-chip index edged up 0.1%, extending gains for a second consecutive session, helped by a 1.2% rise in Commercial International Bank.
Dubai's stock market ended higher on Wednesday, reaching its highest in over three years, buildng on gains from the previous session when stocks jumped following the emirate's plans to launch a multi-billion dirham market-maker fund and intitial public offerings.
Dubai's main share index jumped 3.8%, as most stocks were trading in the black, including blue-chip developer Emaar Properties EMAR.DU with a 7.8% jump, its highest since Oct. 2019.
Dubai plans to launch a 2 billion dirham ($545 million) market-maker fund to boost trading on its stock market, state news agency WAM reported, citing the emirate's deputy ruler Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum.
He also said a committee overseeing the stock market's development approved a goal to double the financial market's size to 3 trillion dirhams, and that 10 state and state-related firms would be listed on Dubai Financial Market (DFM).
Sheikh Maktoum, who oversees stock markets in the emirate, later tweeted that state-owned utility Dubai Electricity & Water Authority would be listed on Dubai bourse in the coming months.
The government's intent to strengthen the local bourse was widely welcomed as the DFM missed such big events while other neighboring markets enjoyed new additions and were able to attract liquidity and investors, said Wael Makarem, senior market strategist at Exness.
Among other gainers, DFM surged 14.9% to notch its biggest intraday gain in about 18 months.
Saudi Arabia's benchmark index dropped 0.6%, hit by a 0.8% fall in oil giant Saudi Aramco.
Oil prices fell as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, meets on Thursday to review its policy and is expected to reconfirm plans for steady monthly increases despite calls for a raise.
In Abu Dhabi, the index eased 0.1%, a day after it reached a record high, with conglomerate International Holding losing 0.2%.
Outside the Gulf, Egypt's blue-chip index edged up 0.1%, extending gains for a second consecutive session, helped by a 1.2% rise in Commercial International Bank.
Column: Rising oil prices are fuelling expected inflation: Kemp | Reuters
Column: Rising oil prices are fuelling expected inflation: Kemp | Reuters
Past changes in oil prices are closely associated with U.S. consumers’ and investors’ expectations for overall inflation in future, which helps explain why they are sensitive for central banks and other policymakers.
In the last three decades, the rise and fall in oil prices has correlated with expectations about future inflation measured by the University of Michigan’s monthly consumer survey and breakeven rates derived from U.S. Treasury Inflation Protected Securities (TIPS).
Cyclical changes in Brent prices over the previous 12 months have a pronounced association with changes in the expected rate of all-items inflation over the next 12 months in the University of Michigan survey.
Price changes also have a pronounced association with changes in the expected rate of all-items inflation over the next five and ten years evident in U.S. Treasury breakeven rates.
Past changes in oil prices are closely associated with U.S. consumers’ and investors’ expectations for overall inflation in future, which helps explain why they are sensitive for central banks and other policymakers.
In the last three decades, the rise and fall in oil prices has correlated with expectations about future inflation measured by the University of Michigan’s monthly consumer survey and breakeven rates derived from U.S. Treasury Inflation Protected Securities (TIPS).
Cyclical changes in Brent prices over the previous 12 months have a pronounced association with changes in the expected rate of all-items inflation over the next 12 months in the University of Michigan survey.
Price changes also have a pronounced association with changes in the expected rate of all-items inflation over the next five and ten years evident in U.S. Treasury breakeven rates.
#SaudiArabia's CMA approves listing of bourse's shares | Reuters
Saudi Arabia's CMA approves listing of bourse's shares | Reuters
Saudi Arabia’s Capital Markets Authority said on Wednesday it has approved an initial public offering of Saudi Tadawul Group, the kingdom’s stock exchange.
The market regulator said it approved an application for an offering of 36 million shares, which represents 30% of Tadawul’s share capital.
Saudi Tadawul Group, the owner and operator of the bourse, in April said it hired JP Morgan, Citigroup and the securities arm of Saudi National Bank for its public share-sale.
Saudi Arabia’s Capital Markets Authority said on Wednesday it has approved an initial public offering of Saudi Tadawul Group, the kingdom’s stock exchange.
The market regulator said it approved an application for an offering of 36 million shares, which represents 30% of Tadawul’s share capital.
Saudi Tadawul Group, the owner and operator of the bourse, in April said it hired JP Morgan, Citigroup and the securities arm of Saudi National Bank for its public share-sale.
Oil down after API data shows U.S. inventory build-up | Reuters
Oil down after API data shows U.S. inventory build-up | Reuters
Oil prices fell on Wednesday as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
Brent crude futures were down $2.20, or 2.6%, at $82.52 a barrel at 1308 GMT. U.S. West Texas Intermediate (WTI) crude futures tumbled $2.60, or 3.10%, to $81.31 a barrel.
"Crude prices are declining after the API reported the sixth straight week of crude oil inventory builds and as the Biden administration exhausts every possible plea to OPEC+ members before tapping their Strategic Petroleum Reserve," said Edward Moya, senior analyst at OANDA.
President Joe Biden, speaking at a climate summit in Glasgow, blamed a surge in oil and gas prices on a refusal by OPEC nations to pump more crude.
Oil prices fell on Wednesday as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
Brent crude futures were down $2.20, or 2.6%, at $82.52 a barrel at 1308 GMT. U.S. West Texas Intermediate (WTI) crude futures tumbled $2.60, or 3.10%, to $81.31 a barrel.
"Crude prices are declining after the API reported the sixth straight week of crude oil inventory builds and as the Biden administration exhausts every possible plea to OPEC+ members before tapping their Strategic Petroleum Reserve," said Edward Moya, senior analyst at OANDA.
President Joe Biden, speaking at a climate summit in Glasgow, blamed a surge in oil and gas prices on a refusal by OPEC nations to pump more crude.
Oil slips after API data shows U.S. inventory build-up | Reuters
Oil slips after API data shows U.S. inventory build-up | Reuters
Oil prices fell on Wednesday as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
Brent crude futures were down $1.38, or 1.6%, to $83.34 a barrel at 0950 GMT. U.S. West Texas Intermediate (WTI) crude futures tumbled $1.60, or 1.9%, to $82.31 a barrel.
"Crude prices are declining after the API reported the sixth straight week of crude oil inventory builds and as the Biden administration exhausts every possible plea to OPEC+ members before tapping their Strategic Petroleum Reserve," said Edward Moya, senior analyst at OANDA.
President Joe Biden, speaking at a climate summit in Glasgow, blamed a surge in oil and gas prices on a refusal by OPEC nations to pump more crude.
Oil prices fell on Wednesday as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
Brent crude futures were down $1.38, or 1.6%, to $83.34 a barrel at 0950 GMT. U.S. West Texas Intermediate (WTI) crude futures tumbled $1.60, or 1.9%, to $82.31 a barrel.
"Crude prices are declining after the API reported the sixth straight week of crude oil inventory builds and as the Biden administration exhausts every possible plea to OPEC+ members before tapping their Strategic Petroleum Reserve," said Edward Moya, senior analyst at OANDA.
President Joe Biden, speaking at a climate summit in Glasgow, blamed a surge in oil and gas prices on a refusal by OPEC nations to pump more crude.
#SaudiArabia wants businesses and families to pick Riyadh ht @ayaelb
Saudi Arabia wants businesses and families to pick Riyadh
Upon arrival at Dubai’s international airport, travelers can pick up a free guide to the city’s top attractions and events. Curiously, the cover of this month’s “Time Out-DXB” beckons visitors to Saudi Arabia. Emblazoned with an image of the kingdom’s ancient Diriyah fort near the Saudi capital, it reads: “Welcome to Arabia. A Journey You’ve Never Imagined”.
The landlocked, once ultraconservative capital of Riyadh is pitching itself as a city of concerts, movie theaters, world class sporting events and deal-making; a city where revamped cultural heritage sites wait to be discovered, distinguishing Saudi Arabia from other Gulf Arab capitals defined by sprawling malls and high-rise hotels.
The pitch is part of Saudi Arabia’s plan to grab the limelight and title as the region’s top place to do business. Currently, the more glamorous emirate of Dubai is seen as the region’s hub for finance and tourism. No longer does the kingdom want consultants and executives flying in for a few days, only to fly right back out and spend those earnings elsewhere.
There are incentives — or, some say, penalties — for businesses to consider: Saudi Arabia has told companies they have until the beginning of 2024 to relocate their regional headquarters to the country or lose out on lucrative government contracts that keep the region’s biggest economy humming.
Upon arrival at Dubai’s international airport, travelers can pick up a free guide to the city’s top attractions and events. Curiously, the cover of this month’s “Time Out-DXB” beckons visitors to Saudi Arabia. Emblazoned with an image of the kingdom’s ancient Diriyah fort near the Saudi capital, it reads: “Welcome to Arabia. A Journey You’ve Never Imagined”.
The landlocked, once ultraconservative capital of Riyadh is pitching itself as a city of concerts, movie theaters, world class sporting events and deal-making; a city where revamped cultural heritage sites wait to be discovered, distinguishing Saudi Arabia from other Gulf Arab capitals defined by sprawling malls and high-rise hotels.
The pitch is part of Saudi Arabia’s plan to grab the limelight and title as the region’s top place to do business. Currently, the more glamorous emirate of Dubai is seen as the region’s hub for finance and tourism. No longer does the kingdom want consultants and executives flying in for a few days, only to fly right back out and spend those earnings elsewhere.
There are incentives — or, some say, penalties — for businesses to consider: Saudi Arabia has told companies they have until the beginning of 2024 to relocate their regional headquarters to the country or lose out on lucrative government contracts that keep the region’s biggest economy humming.
Former managing partner of Abraaj fined $1.9mln by #Dubai regulator | ZAWYA MENA Edition
Former managing partner of Abraaj fined $1.9mln by Dubai regulator | ZAWYA MENA Edition
A former managing partner of the scandal-tainted private equity firm Abraaj has been fined $1,927,498 by the Dubai Financial Services Authority (DFSA) for his involvement in a $200 million shortfall cover at the firm.
Mustafa Abdel-Wadood has also been prohibited from performing any function in connection with the provision of financial services in or from the Dubai International Financial Centre (DIFC).
According to DFSA, Abdel-Wadood had been involved in the cover of a $200 million shortfall, by carrying out acts including the misuse of investor funds, the withholding of sale proceeds and reports from investors and providing false explanations to investors.
A statement from the authority said Abdel-Wadood was one of the most senior figures at the Abraaj Group from July 2006 to February 2018, prior to when the Dubai-based company collapsed and filed for provisional liquidation in the Cayman Islands in June of that year.
A former managing partner of the scandal-tainted private equity firm Abraaj has been fined $1,927,498 by the Dubai Financial Services Authority (DFSA) for his involvement in a $200 million shortfall cover at the firm.
Mustafa Abdel-Wadood has also been prohibited from performing any function in connection with the provision of financial services in or from the Dubai International Financial Centre (DIFC).
According to DFSA, Abdel-Wadood had been involved in the cover of a $200 million shortfall, by carrying out acts including the misuse of investor funds, the withholding of sale proceeds and reports from investors and providing false explanations to investors.
A statement from the authority said Abdel-Wadood was one of the most senior figures at the Abraaj Group from July 2006 to February 2018, prior to when the Dubai-based company collapsed and filed for provisional liquidation in the Cayman Islands in June of that year.
#Saudi non-oil private sector output highest in nearly four years -PMI | Reuters
Saudi non-oil private sector output highest in nearly four years -PMI | Reuters
Saudi Arabia's non-oil private sector notched a 14th month of consecutive growth in October as output expanded at the fastest rate since December 2017, signalling the sector's continued strengthening, a survey showed on Wednesday.
The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers' Index (PMI) fell to 57.7 in October from 58.6 in September but remained well above the 50.0 mark that separates growth from contraction.
It was also above the series average of 56.9 and with the exception of the September reading was the fastest pace of growth since November 2019. The output sub-index rose to 62.1 in October from 61.2 in November.
"October PMI data showed the non-oil sector recovering at a rapid pace. Growth in output was the strongest seen for nearly four years, driven by a marked rise in client demand as the lifting of COVID-19 restrictions continued to boost economic activity," said David Owen, economist at survey compiler IHS Markit.
Saudi Arabia's non-oil private sector notched a 14th month of consecutive growth in October as output expanded at the fastest rate since December 2017, signalling the sector's continued strengthening, a survey showed on Wednesday.
The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers' Index (PMI) fell to 57.7 in October from 58.6 in September but remained well above the 50.0 mark that separates growth from contraction.
It was also above the series average of 56.9 and with the exception of the September reading was the fastest pace of growth since November 2019. The output sub-index rose to 62.1 in October from 61.2 in November.
"October PMI data showed the non-oil sector recovering at a rapid pace. Growth in output was the strongest seen for nearly four years, driven by a marked rise in client demand as the lifting of COVID-19 restrictions continued to boost economic activity," said David Owen, economist at survey compiler IHS Markit.
Column: Oil prices, inflation and the business cycle in 2022 | Reuters
Column: Oil prices, inflation and the business cycle in 2022 | Reuters
The White House has consistently argued the global economy will grow its way out of current supply chain bottlenecks, with strong demand encouraging investment in new capacity, bringing price rises gradually under control.
In this view, demand will eventually create its own supply, without generating too much inflation in the interim, an assumption that lies behind the plan to run a high-pressure economy without overheating.
“Economic heat does not necessary equate with overheating”, White House advisers Jared Bernstein and Ernie Tedeschi said in a press briefing earlier this year (“Pandemic prices: assessing inflation in the months and years ahead”, April 12).
Supply chain bottlenecks and the resulting upward pressure on prices are “transient” problems that will resolve themselves as price rises spur investment in new productive capacity.
The White House has consistently argued the global economy will grow its way out of current supply chain bottlenecks, with strong demand encouraging investment in new capacity, bringing price rises gradually under control.
In this view, demand will eventually create its own supply, without generating too much inflation in the interim, an assumption that lies behind the plan to run a high-pressure economy without overheating.
“Economic heat does not necessary equate with overheating”, White House advisers Jared Bernstein and Ernie Tedeschi said in a press briefing earlier this year (“Pandemic prices: assessing inflation in the months and years ahead”, April 12).
Supply chain bottlenecks and the resulting upward pressure on prices are “transient” problems that will resolve themselves as price rises spur investment in new productive capacity.
#Saudi Home Prices Jump to Fastest in 5 Years Amid Ownership Boom - Bloomberg
Saudi Home Prices Jump to Fastest in 5 Years Amid Ownership Boom - Bloomberg
Apartment prices in Saudi Arabia increased at the fastest pace in five years, spurred by a government plan to boost home ownership by building affordable housing and offering cheap loans.
In the capital, Riyadh, and the Red Sea port city of Jeddah, apartment values increased 17% and 12% respectively over the past 12 months, according to data by global property consultant Knight Frank.
“Home ownership has actually become more affordable since the launch of the National Transformational Plan,” said Faisal Durrani, head of Middle East research at Knight Frank, referring to Crown Prince Mohammed bin Salman’s plan to wean the economy off oil. “Two-bedroom apartments for instance, on average, cost 2.4 times annual incomes, compared to a multiplier of 2.7 back in 2016, well within globally accepted affordability thresholds.”
Prices of single-family homes aren’t rising as quickly as apartments, partly because they cost anywhere between seven to 12 times annual incomes, Durrani said.
The kingdom aims to lift home ownership to 70% in 2030 from about 60% today.
Apartment prices in Saudi Arabia increased at the fastest pace in five years, spurred by a government plan to boost home ownership by building affordable housing and offering cheap loans.
In the capital, Riyadh, and the Red Sea port city of Jeddah, apartment values increased 17% and 12% respectively over the past 12 months, according to data by global property consultant Knight Frank.
“Home ownership has actually become more affordable since the launch of the National Transformational Plan,” said Faisal Durrani, head of Middle East research at Knight Frank, referring to Crown Prince Mohammed bin Salman’s plan to wean the economy off oil. “Two-bedroom apartments for instance, on average, cost 2.4 times annual incomes, compared to a multiplier of 2.7 back in 2016, well within globally accepted affordability thresholds.”
Prices of single-family homes aren’t rising as quickly as apartments, partly because they cost anywhere between seven to 12 times annual incomes, Durrani said.
The kingdom aims to lift home ownership to 70% in 2030 from about 60% today.
#AbuDhabi's Aldar Properties Q3 net profit rises 11% | Reuters
Abu Dhabi's Aldar Properties Q3 net profit rises 11% | Reuters
Aldar Properties , the builder of Abu Dhabi's Formula One circuit, reported an 11% rise in third-quarter net profit on Wednesday, helped by higher sales as the pandemic recovery picked up pace.
Profit attributable to shareholders came in at 473.2 million dirhams ($128.85 million) for the three months ended Sept. 30, compared with 426.2 million dirhams in the prior-year period.
"As post-pandemic recovery gathered momentum, our diversified businesses continued to rebound at pace, with the third quarter delivering 2.69 billion dirhams in development sales," Chief Executive Officer Talal Al Dhiyabi was quoted as saying.
Aldar Properties , the builder of Abu Dhabi's Formula One circuit, reported an 11% rise in third-quarter net profit on Wednesday, helped by higher sales as the pandemic recovery picked up pace.
Profit attributable to shareholders came in at 473.2 million dirhams ($128.85 million) for the three months ended Sept. 30, compared with 426.2 million dirhams in the prior-year period.
"As post-pandemic recovery gathered momentum, our diversified businesses continued to rebound at pace, with the third quarter delivering 2.69 billion dirhams in development sales," Chief Executive Officer Talal Al Dhiyabi was quoted as saying.
#Dubai’s Expo Spurs Tourism, Boosting #UAE Business Activity - Bloomberg
Dubai’s Expo Spurs Tourism, Boosting UAE Business Activity - Bloomberg
Business activity in the United Arab Emirates rose to the highest level in more than two years last month, helped in part by an influx of tourists drawn to Dubai’s Expo 2020 event.
A Purchasing Managers’ Index compiled by IHS Markit rose to 55.7 in October from 53.3 in September, above the 50-mark separating growth from contraction and signaling a significant expansion in the Gulf country’s non-oil private sector. The increase was driven by faster increase in output and new orders.
“The Expo 2020 finally began in the UAE at the start of October and brought a highly welcome upsurge in growth across the non-oil private sector,” said David Owen, economist at IHS Markit. “The key test for the UAE economy will be whether this initial uplift in demand from the Expo can be sustained over the coming months.”
After a year’s delay, Dubai is hoping Expo attracts enough tourists to help solidify a nascent economic recovery. According to IHS, the event drove sales last month in multiple sectors, including tourism.
Purchasing activity rose at the fastest pace in three months as both input buying and inventories expanded. Job creation also increased, though the rate of growth was marginal.
Business activity in the United Arab Emirates rose to the highest level in more than two years last month, helped in part by an influx of tourists drawn to Dubai’s Expo 2020 event.
A Purchasing Managers’ Index compiled by IHS Markit rose to 55.7 in October from 53.3 in September, above the 50-mark separating growth from contraction and signaling a significant expansion in the Gulf country’s non-oil private sector. The increase was driven by faster increase in output and new orders.
“The Expo 2020 finally began in the UAE at the start of October and brought a highly welcome upsurge in growth across the non-oil private sector,” said David Owen, economist at IHS Markit. “The key test for the UAE economy will be whether this initial uplift in demand from the Expo can be sustained over the coming months.”
After a year’s delay, Dubai is hoping Expo attracts enough tourists to help solidify a nascent economic recovery. According to IHS, the event drove sales last month in multiple sectors, including tourism.
- New orders growth was substantial, driven by an increase in demand from Expo.
- Companies increased output levels to the most since July 2019 as the loosening of Covid-19 restrictions helped boost activity.
- Employment figures showed only subdued growth despite increasing pressure on business capacity.
- Purchase costs saw a slight uptick, while staff costs dropped for the first time since early this year. That led to overall expenses rising at the slowest pace in five months.
- Optimism about future activity among firms was the strongest in more than a year.
Purchasing activity rose at the fastest pace in three months as both input buying and inventories expanded. Job creation also increased, though the rate of growth was marginal.
#Dubai bourse extends gains on plans to launch market-maker fund, IPOs | Reuters
Dubai bourse extends gains on plans to launch market-maker fund, IPOs | Reuters
Dubai's stock market advanced on Wednesday, a session after the index registered sharp gains following its plans to launch a multi-billion dirham market-maker fund, while the Saudi benchmark retreated amid falling oil prices.
Dubai's main share index (.DFMGI) advanced 2.4% to its highest level in more than three years as most stocks were trading in the black, including blue-chip developer Emaar Properties (EMAR.DU) with a 5% jump.
Dubai plans to launch a 2 billion dirham ($545 million) market-maker fund to boost trading on its stock market, state news agency WAM reported, citing the emirate's deputy ruler Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum. read more
He also said a committee overseeing the stock market's development approved a goal to double the financial market's size to 3 trillion dirhams, and that 10 state and state-related firms would be listed on Dubai Financial Market (DFM).
Sheikh Maktoum, who oversees stock markets in the emirate, later tweeted that state-owned utility Dubai Electricity & Water Authority would be listed on the Dubai bourse in the coming months.
Among other gainers, Dubai Financial Market (DFM.DU) surged 14.9% to notch its biggest intraday gain in about 18 months.
Saudi Arabia's benchmark index (.TASI) fell 0.5%, hit by a 0.9% drop in Dr Sulaiman Al-Habib Medical Services (4013.SE) and a 0.4% decrease in oil giant Saudi Aramco (2222.SE).
Oil prices fell as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, meets on Thursday to review its policy and is expected to reconfirm plans for monthly increases. read more
The kingdom's energy index (.TENI) was down 0.5%.
In Abu Dhabi, the index (.ADI) added 0.2%, reaching a record high, with Emirates Telecommunications Group (ETISALAT.AD) rising 1.8%.
The Qatari benchmark (.TASI) rose 0.4%, with petrochemical maker Industries Qatar (IQCD.QA) gaining 0.7%.
Dubai's stock market advanced on Wednesday, a session after the index registered sharp gains following its plans to launch a multi-billion dirham market-maker fund, while the Saudi benchmark retreated amid falling oil prices.
Dubai's main share index (.DFMGI) advanced 2.4% to its highest level in more than three years as most stocks were trading in the black, including blue-chip developer Emaar Properties (EMAR.DU) with a 5% jump.
Dubai plans to launch a 2 billion dirham ($545 million) market-maker fund to boost trading on its stock market, state news agency WAM reported, citing the emirate's deputy ruler Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum. read more
He also said a committee overseeing the stock market's development approved a goal to double the financial market's size to 3 trillion dirhams, and that 10 state and state-related firms would be listed on Dubai Financial Market (DFM).
Sheikh Maktoum, who oversees stock markets in the emirate, later tweeted that state-owned utility Dubai Electricity & Water Authority would be listed on the Dubai bourse in the coming months.
Among other gainers, Dubai Financial Market (DFM.DU) surged 14.9% to notch its biggest intraday gain in about 18 months.
Saudi Arabia's benchmark index (.TASI) fell 0.5%, hit by a 0.9% drop in Dr Sulaiman Al-Habib Medical Services (4013.SE) and a 0.4% decrease in oil giant Saudi Aramco (2222.SE).
Oil prices fell as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, meets on Thursday to review its policy and is expected to reconfirm plans for monthly increases. read more
The kingdom's energy index (.TENI) was down 0.5%.
In Abu Dhabi, the index (.ADI) added 0.2%, reaching a record high, with Emirates Telecommunications Group (ETISALAT.AD) rising 1.8%.
The Qatari benchmark (.TASI) rose 0.4%, with petrochemical maker Industries Qatar (IQCD.QA) gaining 0.7%.
Oil slips after API data shows U.S. inventory build-up | Reuters
Oil slips after API data shows U.S. inventory build-up | Reuters
Oil prices fell on Wednesday as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
Brent crude futures fell $1.03, or 1.2%, to $83.69 a barrel by 0724 GMT, after dropping to a session-low of $83.27 earlier.
U.S. West Texas Intermediate (WTI) crude futures tumbled $1.30, or 1.6%, to $82.61 a barrel, after dropping to a low of $82.26 earlier.
"Crude prices are declining after the API reported the sixth straight week of crude oil inventory builds and as the Biden administration exhausts every possible plea to OPEC+ members before tapping their Strategic Petroleum Reserve," said Edward Moya, senior analyst at OANDA.
Oil prices fell on Wednesday as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
Brent crude futures fell $1.03, or 1.2%, to $83.69 a barrel by 0724 GMT, after dropping to a session-low of $83.27 earlier.
U.S. West Texas Intermediate (WTI) crude futures tumbled $1.30, or 1.6%, to $82.61 a barrel, after dropping to a low of $82.26 earlier.
"Crude prices are declining after the API reported the sixth straight week of crude oil inventory builds and as the Biden administration exhausts every possible plea to OPEC+ members before tapping their Strategic Petroleum Reserve," said Edward Moya, senior analyst at OANDA.
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