Expatriate Executives Flee Saudi Arabia’s Bad Bosses - WSJ
In the summer of 2020, two videogame companies cancelled sponsorship deals with Saudi Arabia’s planned city-state of Neom following fan complaints about the country’s human-rights record. Neom Chief Executive Nadhmi al-Nasr called an emergency meeting on a weekend and asked his communications team why it hadn’t warned him this might happen.
“If you don’t tell me who is responsible,” Mr Nasr said, according to people with direct knowledge of the meeting, “I’m going to take a gun from under my desk and shoot you.”
Colleagues later consoled a woman who broke down crying, these people said. Most of the people in that meeting have since left Neom, part of an exodus of foreign staff, according to current and former employees.
Neom is Saudi Crown Prince Mohammed bin Salman’s most ambitious project, a group of futuristic technology-driven communities with its own laws across an area the size of Massachusetts that the 36-year-old leader hopes will one day feature flying cars, robot dinosaurs and a giant artificial moon.
Tuesday, 31 May 2022
OPEC Weighs Suspending Russia From Oil-Production Deal - WSJ
OPEC Weighs Suspending Russia From Oil-Production Deal - WSJ
Some OPEC members are exploring the idea of suspending Russia’s participation in an oil-production deal as Western sanctions and a partial European ban begin to undercut Moscow’s ability to pump more, OPEC delegates said.
Exempting Russia from its oil-production targets could potentially pave the way for Saudi Arabia, the United Arab Emirates and other producers in the Organization of the Petroleum Exporting Countries to pump significantly more crude, something that the U.S. and European nations have pressed them to do as the invasion of Ukraine sent oil prices soaring above $100 a barrel.
Russia, one of the world’s three largest oil producers, agreed with OPEC and nine non-OPEC nations last year to pump more crude each month, but its output is now expected to fall about 8% this year. It couldn’t be determined whether Russia would agree to an exemption from the deal’s production targets.
So far, there is no formal push for OPEC to pump more oil to make up for any potential Russian shortfall, but some members in the Persian Gulf have begun planning for an output increase sometime in the next few months, delegates said.
Some OPEC members are exploring the idea of suspending Russia’s participation in an oil-production deal as Western sanctions and a partial European ban begin to undercut Moscow’s ability to pump more, OPEC delegates said.
Exempting Russia from its oil-production targets could potentially pave the way for Saudi Arabia, the United Arab Emirates and other producers in the Organization of the Petroleum Exporting Countries to pump significantly more crude, something that the U.S. and European nations have pressed them to do as the invasion of Ukraine sent oil prices soaring above $100 a barrel.
Russia, one of the world’s three largest oil producers, agreed with OPEC and nine non-OPEC nations last year to pump more crude each month, but its output is now expected to fall about 8% this year. It couldn’t be determined whether Russia would agree to an exemption from the deal’s production targets.
So far, there is no formal push for OPEC to pump more oil to make up for any potential Russian shortfall, but some members in the Persian Gulf have begun planning for an output increase sometime in the next few months, delegates said.
Oil turns negative as OPEC eyes Russia suspension from output deal | Reuters
Oil turns negative as OPEC eyes Russia suspension from output deal | Reuters
Oil prices turned negative on Tuesday after a report that some producers were exploring the idea of suspending Russia's participation in the OPEC+ production deal.
While there was no formal push for Organization of the Petroleum Exporting Countries to pump more oil to make up for any potential Russian shortfall, some Gulf members had begun planning for an output increase sometime in the next few months, the Wall Street Journal reported, citing OPEC delegates.
Brent crude futures for August, the most actively traded contract, settled down $2, or 1.7%, at $115.60 a barrel, after rising to $120.80 earlier in the day. The front-month contract for July, which expired on Tuesday, closed up $1.17, or 1%, at $122.84.
U.S. West Texas Intermediate (WTI) crude settled at $114.67 a barrel, down 40 cents or 0.4% from Friday's close. Earlier in the session, it had touched $119.98, its highest since March 9. There was no settlement on Monday's U.S. Memorial Day holiday.
Oil prices turned negative on Tuesday after a report that some producers were exploring the idea of suspending Russia's participation in the OPEC+ production deal.
While there was no formal push for Organization of the Petroleum Exporting Countries to pump more oil to make up for any potential Russian shortfall, some Gulf members had begun planning for an output increase sometime in the next few months, the Wall Street Journal reported, citing OPEC delegates.
Brent crude futures for August, the most actively traded contract, settled down $2, or 1.7%, at $115.60 a barrel, after rising to $120.80 earlier in the day. The front-month contract for July, which expired on Tuesday, closed up $1.17, or 1%, at $122.84.
U.S. West Texas Intermediate (WTI) crude settled at $114.67 a barrel, down 40 cents or 0.4% from Friday's close. Earlier in the session, it had touched $119.98, its highest since March 9. There was no settlement on Monday's U.S. Memorial Day holiday.
Arada Developments set to raise $350 mln with debut sukuk | Reuters
Arada Developments set to raise $350 mln with debut sukuk | Reuters
Arada Developments, the largest developer in Sharjah in the United Arab Emirates, was set to raise $350 million in its debut foray in the debt markets, a document showed on Tuesday.
The yield was set at 8.125%, tightening from initial price guidance of around 8.25%. The Islamic bonds, or sukuk, received more than $720 million in orders, including $185 million in interest from joint lead managers, the document from one of the banks on the deal showed.
The company had said the sukuk would be of benchmark size, which usually means at least $500 million.
The issuance is the first public dollar bond sale out of the Gulf since late March, when the Sharjah government raised $750 million, also with sukuk.
The region has seen a dearth of bond sales this year amid enduring market volatility and as many issuers turn to loans.
Arada is 40% owned by Basma Group, which is owned by Sharjah's deputy ruler, and 60% by Corp KBW Investments, which is owned by Prince Khaled bin Alwaleed bin Talal Al Saud, a member of the Saudi royal family.
Arada Developments, the largest developer in Sharjah in the United Arab Emirates, was set to raise $350 million in its debut foray in the debt markets, a document showed on Tuesday.
The yield was set at 8.125%, tightening from initial price guidance of around 8.25%. The Islamic bonds, or sukuk, received more than $720 million in orders, including $185 million in interest from joint lead managers, the document from one of the banks on the deal showed.
The company had said the sukuk would be of benchmark size, which usually means at least $500 million.
The issuance is the first public dollar bond sale out of the Gulf since late March, when the Sharjah government raised $750 million, also with sukuk.
The region has seen a dearth of bond sales this year amid enduring market volatility and as many issuers turn to loans.
Arada is 40% owned by Basma Group, which is owned by Sharjah's deputy ruler, and 60% by Corp KBW Investments, which is owned by Prince Khaled bin Alwaleed bin Talal Al Saud, a member of the Saudi royal family.
#Dubai Billionaire Sajwani's Damac Group Buys Bankrupt Swiss Diamond Jeweler - Bloomberg
Dubai Billionaire Sajwani's Damac Group Buys Bankrupt Swiss Diamond Jeweler - Bloomberg
Billionaire Hussain Sajwani’s Damac Group has purchased De Grisogono SA, a Swiss luxury jeweler that filed for bankruptcy early 2020, as part of the Dubai firm’s expansion into high-end fashion.
Alongside the deal, Damac said it launched a property project called Safa One by de Grisogono in Dubai, featuring cascading waterfalls, hanging gardens and a manmade-beach on the podium level.
“Keeping in line with our ambitions to expand our business into the luxury and high-end fashion realm, bidding for de Grisogono came to us naturally,” Sajwani said in a statement on Tuesday. It didn’t provide financial details for the De Grisogono transaction.
The acquisition comes three years after the billionaire bought Italian fashion group Roberto Cavalli SpA through his private investment firm. Earlier this month, Damac said it won a $120 million bid to acquire land in the upscale Miami neighborhood of Surfside, where it plans to build a Cavalli-branded condominium project.
De Grisogono, known for extravagant diamond jewelry worn by the likes of Paris Hilton, filed for bankruptcy in 2020, ensnared in a corruption probe involving Isabel dos Santos, the daughter of Angola’s former president.
The company was founded in 1993 by former Bulgari SpA executive Fawaz Gruosi and is known for its signature black-diamond jewelry. De Grisogono, whose pieces have been worn by Naomi Campbell and Salma Hayek, has combined uncommonly used semi-precious stones such as rubellite and tourmalene with diamonds, sapphires and rubies.
Billionaire Hussain Sajwani’s Damac Group has purchased De Grisogono SA, a Swiss luxury jeweler that filed for bankruptcy early 2020, as part of the Dubai firm’s expansion into high-end fashion.
Alongside the deal, Damac said it launched a property project called Safa One by de Grisogono in Dubai, featuring cascading waterfalls, hanging gardens and a manmade-beach on the podium level.
“Keeping in line with our ambitions to expand our business into the luxury and high-end fashion realm, bidding for de Grisogono came to us naturally,” Sajwani said in a statement on Tuesday. It didn’t provide financial details for the De Grisogono transaction.
The acquisition comes three years after the billionaire bought Italian fashion group Roberto Cavalli SpA through his private investment firm. Earlier this month, Damac said it won a $120 million bid to acquire land in the upscale Miami neighborhood of Surfside, where it plans to build a Cavalli-branded condominium project.
De Grisogono, known for extravagant diamond jewelry worn by the likes of Paris Hilton, filed for bankruptcy in 2020, ensnared in a corruption probe involving Isabel dos Santos, the daughter of Angola’s former president.
The company was founded in 1993 by former Bulgari SpA executive Fawaz Gruosi and is known for its signature black-diamond jewelry. De Grisogono, whose pieces have been worn by Naomi Campbell and Salma Hayek, has combined uncommonly used semi-precious stones such as rubellite and tourmalene with diamonds, sapphires and rubies.
Oil bull run continues as EU agrees to ban most Russian oil | Reuters
Oil bull run continues as EU agrees to ban most Russian oil | Reuters
Oil prices extended a bull run on Tuesday after the European Union agreed to a partial and phased ban on Russian oil and China decided to lift some COVID-19 restrictions amid rising demand before the peak U.S. and European summer driving season.
Brent crude for July, which expires on Tuesday, rose $2.31, or 1.9%, to $123.98 a barrel by 1338 GMT, after earlier rising to $124.64 - its highest since March 9. The August contract hit a high of $120.80.
The premium of August-loading Brent contracts over a six-month spread hit a nine-week high at close to $15 a barrel, indicating current supply tightness.
U.S. West Texas Intermediate (WTI) crude was trading at $119.18 a barrel, up $4.11 in a fourth consecutive session of gains, up 3.6% from Friday's close, hitting its highest since March 9. There was no settlement on Monday's U.S. holiday.
Oil prices extended a bull run on Tuesday after the European Union agreed to a partial and phased ban on Russian oil and China decided to lift some COVID-19 restrictions amid rising demand before the peak U.S. and European summer driving season.
Brent crude for July, which expires on Tuesday, rose $2.31, or 1.9%, to $123.98 a barrel by 1338 GMT, after earlier rising to $124.64 - its highest since March 9. The August contract hit a high of $120.80.
The premium of August-loading Brent contracts over a six-month spread hit a nine-week high at close to $15 a barrel, indicating current supply tightness.
U.S. West Texas Intermediate (WTI) crude was trading at $119.18 a barrel, up $4.11 in a fourth consecutive session of gains, up 3.6% from Friday's close, hitting its highest since March 9. There was no settlement on Monday's U.S. holiday.
Salt Bae Restaurant Owner May Sell Stake to #Qatar Wealth Fund - Bloomberg
Salt Bae Restaurant Owner May Sell Stake to Qatar Wealth Fund - Bloomberg
The owner of the Nusr-Et steakhouse, known by its founder’s Salt Bae meme, is in talks to sell a stake to Qatar’s $450 billion wealth fund.
D.ream Group, owned by Turkish billionaire Ferit Sahenk’s Dogus Holding AS, may sell a 20% stake to the Qatar Investment Authority for about $300 million, the people said, asking not to be identified as the information is private. A deal at that price would imply a valuation of $1.5 billion.
The talks were reported by Turkey’s Sozcu newspaper earlier on Tuesday. Dogus confirmed discussions with the QIA, but declined to provide further details. The Qatari fund wasn’t immediately available for comment.
Dogus has been trying to raise cash and deliver on pledges it made to banks as part of a debt restructuring. In 2020, the firm agreed to sell a 30% stake in a high-end Istanbul shopping center to an arm of the QIA.
D.ream Group owns stakes in restaurants including Nusr-Et, founded by butcher Nusret Gokce. Investors in the company include Singapore’s Temasek and London-based private equity firm Metric Capital Partners, who bought a 17% stake for $200 million in 2018, valuing the company at $1.18 billion.
The owner of the Nusr-Et steakhouse, known by its founder’s Salt Bae meme, is in talks to sell a stake to Qatar’s $450 billion wealth fund.
D.ream Group, owned by Turkish billionaire Ferit Sahenk’s Dogus Holding AS, may sell a 20% stake to the Qatar Investment Authority for about $300 million, the people said, asking not to be identified as the information is private. A deal at that price would imply a valuation of $1.5 billion.
The talks were reported by Turkey’s Sozcu newspaper earlier on Tuesday. Dogus confirmed discussions with the QIA, but declined to provide further details. The Qatari fund wasn’t immediately available for comment.
Dogus has been trying to raise cash and deliver on pledges it made to banks as part of a debt restructuring. In 2020, the firm agreed to sell a 30% stake in a high-end Istanbul shopping center to an arm of the QIA.
D.ream Group owns stakes in restaurants including Nusr-Et, founded by butcher Nusret Gokce. Investors in the company include Singapore’s Temasek and London-based private equity firm Metric Capital Partners, who bought a 17% stake for $200 million in 2018, valuing the company at $1.18 billion.
#AbuDhabi outperforms Gulf peers ahead of Borouge's IPO | Reuters
Abu Dhabi outperforms Gulf peers ahead of Borouge's IPO | Reuters
Most Gulf markets ended higher on Tuesday, tracking oil prices, with the Abu Dhabi index outperforming the region ahead of its biggest-ever initial public offering (IPO) of Borouge.
In Abu Dhabi, the index (.FTFADGI) advanced 1.6%, nearing the peak hit in April, boosted by a 3.6% jump in First Abu Dhabi Bank (FAB.AD).
Abu Dhabi-based petrochemicals company Borouge, which is owned by Abu Dhabi National Oil Company (ADNOC) and Austria's Borealis, raised more than $2 billion on Tuesday after demand for its IPO topped $83.4 billion. read more
The shares are due to start trading on the Abu Dhabi Securities Exchange (ADX) on Friday.
The Abu Dhabi bourse was supported by stronger oil prices and the success of Borouge's fundraise, said Farah Mourad, senior market analyst of XTB MENA.
"The listing has attracted the interest of many investors and could help push the market higher in the coming days."
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, helped by a 3.6% jump in Saudi National Bank (1180.SE) and a 1.1% increase in oil giant Saudi Aramco (2222.SE).
Crude prices, a key catalyst for the Gulf's financial market, extended a bull run after the EU agreed to a partial and phased ban on Russian oil and China decided to lift some coronavirus restrictions amid rising demand ahead of the peak U.S. and European summer driving season. read more
Dubai's main share index (.DFMGI) concluded 0.1% higher, with blue-chip developer Emaar Properties (EMAR.DU) advancing 2.5%.
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.{nL2N2XJ08T]
The Qatari index (.QSI) firmed 0.2%, with Gulf's biggest lender Qatar National Bank (QNBK.QA) ending 2.7% higher.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 0.4%, led by a 0.9% rise in Commercial International Bank Egypt.
Egypt's M2 money supply rose by 23.7% year-on-year in April, data from the central bank showed on Tuesday.
Most Gulf markets ended higher on Tuesday, tracking oil prices, with the Abu Dhabi index outperforming the region ahead of its biggest-ever initial public offering (IPO) of Borouge.
In Abu Dhabi, the index (.FTFADGI) advanced 1.6%, nearing the peak hit in April, boosted by a 3.6% jump in First Abu Dhabi Bank (FAB.AD).
Abu Dhabi-based petrochemicals company Borouge, which is owned by Abu Dhabi National Oil Company (ADNOC) and Austria's Borealis, raised more than $2 billion on Tuesday after demand for its IPO topped $83.4 billion. read more
The shares are due to start trading on the Abu Dhabi Securities Exchange (ADX) on Friday.
The Abu Dhabi bourse was supported by stronger oil prices and the success of Borouge's fundraise, said Farah Mourad, senior market analyst of XTB MENA.
"The listing has attracted the interest of many investors and could help push the market higher in the coming days."
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, helped by a 3.6% jump in Saudi National Bank (1180.SE) and a 1.1% increase in oil giant Saudi Aramco (2222.SE).
Crude prices, a key catalyst for the Gulf's financial market, extended a bull run after the EU agreed to a partial and phased ban on Russian oil and China decided to lift some coronavirus restrictions amid rising demand ahead of the peak U.S. and European summer driving season. read more
Dubai's main share index (.DFMGI) concluded 0.1% higher, with blue-chip developer Emaar Properties (EMAR.DU) advancing 2.5%.
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.{nL2N2XJ08T]
The Qatari index (.QSI) firmed 0.2%, with Gulf's biggest lender Qatar National Bank (QNBK.QA) ending 2.7% higher.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 0.4%, led by a 0.9% rise in Commercial International Bank Egypt.
Egypt's M2 money supply rose by 23.7% year-on-year in April, data from the central bank showed on Tuesday.
Borouge’s $2 Billion #AbuDhabi IPO Draws $83 Billion of Orders - Bloomberg
Borouge’s $2 Billion Abu Dhabi IPO Draws $83 Billion of Orders - Bloomberg
The United Arab Emirates’ main oil company and Borealis AG raised $2 billion in the initial public offering of their chemicals joint venture, drawing $83 billion of orders in the latest sign of strong demand for listings in the region.
Borouge’s IPO is Abu Dhabi’s biggest-ever listing and adds to a string of sizable offerings from the UAE and Saudi Arabia, where markets have largely bucked the volatility that’s put a lid on share sales globally.
Abu Dhabi National Oil Co. and Vienna-based Borealis sold 3 billion shares at 2.45 dirhams each in the deal, valuing Borouge at $20 billion. The demand amounted to an oversubscription level of almost 42 times.
Oil’s almost 60% surge this year to more than $120 a barrel has helped draw foreign flows to the region’s markets, which have been some of the world’s best performers this year. Many recent offerings in Dubai and Saudi Arabia have attract tens of billions of dollars of demand.
The United Arab Emirates’ main oil company and Borealis AG raised $2 billion in the initial public offering of their chemicals joint venture, drawing $83 billion of orders in the latest sign of strong demand for listings in the region.
Borouge’s IPO is Abu Dhabi’s biggest-ever listing and adds to a string of sizable offerings from the UAE and Saudi Arabia, where markets have largely bucked the volatility that’s put a lid on share sales globally.
Abu Dhabi National Oil Co. and Vienna-based Borealis sold 3 billion shares at 2.45 dirhams each in the deal, valuing Borouge at $20 billion. The demand amounted to an oversubscription level of almost 42 times.
Oil’s almost 60% surge this year to more than $120 a barrel has helped draw foreign flows to the region’s markets, which have been some of the world’s best performers this year. Many recent offerings in Dubai and Saudi Arabia have attract tens of billions of dollars of demand.
#Israel signs major trade pact with Gulf state #UAE | Reuters
Israel signs major trade pact with Gulf state UAE | Reuters
Israel signed a free trade agreement with the United Arab Emirates on Tuesday, its first big trade accord with an Arab state that reduces or removes tariffs and over time targets lifting annual bilateral trade to more than $10 billion.
The pact was signed in Dubai by Israel's Minister of Economy and Industry Orna Barbivai and her counterpart, UAE Minister of Economy Abdulla bin Touq Al Marri, after months of negotiations.
Tariffs will be eliminated on 96% of goods with the UAE predicting the Comprehensive Economic Partnership Agreement would boost bilateral trade to more than $10 billion a year within five years.
Emirati trade minister Thani Al Zeyoudi said the trade deal wrote "a new chapter in the history of the Middle East."
Israel signed a free trade agreement with the United Arab Emirates on Tuesday, its first big trade accord with an Arab state that reduces or removes tariffs and over time targets lifting annual bilateral trade to more than $10 billion.
The pact was signed in Dubai by Israel's Minister of Economy and Industry Orna Barbivai and her counterpart, UAE Minister of Economy Abdulla bin Touq Al Marri, after months of negotiations.
Tariffs will be eliminated on 96% of goods with the UAE predicting the Comprehensive Economic Partnership Agreement would boost bilateral trade to more than $10 billion a year within five years.
Emirati trade minister Thani Al Zeyoudi said the trade deal wrote "a new chapter in the history of the Middle East."
#Dubai Investment Firm ICD Returns to Profit as Economy Rebounds - Bloomberg
Dubai Investment Firm ICD Returns to Profit as Economy Rebounds - Bloomberg
Dubai’s main state-owned investment firm swung to a full-year profit in 2021, rebounding from a pandemic-induced $5.15 billion loss.
Investment Corp. of Dubai posted a profit 5.5 billion dirhams ($1.5 billion) after a loss of 18.9 billion dirhams a year earlier, according to a statement. Revenue climbed about 25% to 169 billion dirhams.
“Our portfolio companies reaped the benefits of the steps taken earlier during the pandemic to protect their businesses, adapt their models, and enhance cost-effectiveness,” Managing Director Mohammed Ibrahim Al Shaibani said in a statement.
The firm owns Emirates Group, which reported a smaller annual loss and predicted a return to profit this year, tapping a recovery in travel demand.
Business activity in Dubai rebounded sharply last year alongside a jump in tourism, helped by the Expo 2020 exhibition -- one of the biggest in-person events since the pandemic started. The United Arab Emirates, of which Dubai is a part, had one of the world’s fastest vaccination rollouts.
“Whilst good progress was made during the earlier part of the year despite the virus variant disruptions, the second part of the year saw a much stronger recovery helped by the easing of global travel restrictions and the positive impact of the hosting of Expo 2020 Dubai,” Al Shaibani said.
Investment Corp. of Dubai also has holdings in lenders including Emirates NBD and Dubai Islamic Bank as well as real-estate developer Emaar Properties PJSC -- all of which reported higher profit last year.
Dubai’s main state-owned investment firm swung to a full-year profit in 2021, rebounding from a pandemic-induced $5.15 billion loss.
Investment Corp. of Dubai posted a profit 5.5 billion dirhams ($1.5 billion) after a loss of 18.9 billion dirhams a year earlier, according to a statement. Revenue climbed about 25% to 169 billion dirhams.
“Our portfolio companies reaped the benefits of the steps taken earlier during the pandemic to protect their businesses, adapt their models, and enhance cost-effectiveness,” Managing Director Mohammed Ibrahim Al Shaibani said in a statement.
The firm owns Emirates Group, which reported a smaller annual loss and predicted a return to profit this year, tapping a recovery in travel demand.
Business activity in Dubai rebounded sharply last year alongside a jump in tourism, helped by the Expo 2020 exhibition -- one of the biggest in-person events since the pandemic started. The United Arab Emirates, of which Dubai is a part, had one of the world’s fastest vaccination rollouts.
“Whilst good progress was made during the earlier part of the year despite the virus variant disruptions, the second part of the year saw a much stronger recovery helped by the easing of global travel restrictions and the positive impact of the hosting of Expo 2020 Dubai,” Al Shaibani said.
Investment Corp. of Dubai also has holdings in lenders including Emirates NBD and Dubai Islamic Bank as well as real-estate developer Emaar Properties PJSC -- all of which reported higher profit last year.
#AbuDhabi leads gains in Gulf markets; #Qatar falls | Reuters
Abu Dhabi leads gains in Gulf markets; Qatar falls | Reuters
Most stock markets in the Gulf rose in early trade on Tuesday, in line with oil prices, with the Abu Dhabi index nearing its peak ahead of Borouge's initial public offering (IPO).
In Abu Dhabi, the index (.FTFADGI) advanced 1.5%, nearing a high hit in April, with the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD) jumping 3.9%.
Abu Dhabi-based petrochemicals company Borouge raised more than $2 billion on Tuesday after demand for its IPO topped $83.4 billion.
The company is owned by Abu Dhabi National Oil Company (ADNOC) and Austria's Borealis. Following the IPO, ADNOC will continue to hold a 54% majority stake and Borealis will own 36%. read more
Among other gainers, Agthia Group (AGTHIA.AD) gained 1.9% after approving investment for construction of a manufacturing facility in Jeddah worth 90 million dirhams ($24.50 million).
Saudi Arabia's benchmark index (.TASI) added 0.5%, with oil-giant Saudi Aramco (2222.SE) rising 1.1%.
Crude prices, a key catalyst for the Gulf's financial markets, extended gains after the EU agreed to slash oil imports from Russia, fuelling worries of a tighter market already strained for supply amid rising demand ahead of peak U.S. and European summer driving season.
Dubai's main share index (.DFMGI) edged 0.1% higher, supported by a 0.5% rise in blue-chip developer Emaar Properties (EMAR.DU).
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity. read more
Elsewhere, Aramex (ARMX.DU) leapt 4.8% after the logistics firm increased its foreign ownership limit to 100% from 49% earlier.
Bucking the trend, the Qatari index (.QSI) dropped 0.6%, hit by a 1.6% fall in Qatar Islamic Bank (QISB.QA).
Most stock markets in the Gulf rose in early trade on Tuesday, in line with oil prices, with the Abu Dhabi index nearing its peak ahead of Borouge's initial public offering (IPO).
In Abu Dhabi, the index (.FTFADGI) advanced 1.5%, nearing a high hit in April, with the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD) jumping 3.9%.
Abu Dhabi-based petrochemicals company Borouge raised more than $2 billion on Tuesday after demand for its IPO topped $83.4 billion.
The company is owned by Abu Dhabi National Oil Company (ADNOC) and Austria's Borealis. Following the IPO, ADNOC will continue to hold a 54% majority stake and Borealis will own 36%. read more
Among other gainers, Agthia Group (AGTHIA.AD) gained 1.9% after approving investment for construction of a manufacturing facility in Jeddah worth 90 million dirhams ($24.50 million).
Saudi Arabia's benchmark index (.TASI) added 0.5%, with oil-giant Saudi Aramco (2222.SE) rising 1.1%.
Crude prices, a key catalyst for the Gulf's financial markets, extended gains after the EU agreed to slash oil imports from Russia, fuelling worries of a tighter market already strained for supply amid rising demand ahead of peak U.S. and European summer driving season.
Dubai's main share index (.DFMGI) edged 0.1% higher, supported by a 0.5% rise in blue-chip developer Emaar Properties (EMAR.DU).
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity. read more
Elsewhere, Aramex (ARMX.DU) leapt 4.8% after the logistics firm increased its foreign ownership limit to 100% from 49% earlier.
Bucking the trend, the Qatari index (.QSI) dropped 0.6%, hit by a 1.6% fall in Qatar Islamic Bank (QISB.QA).
Oil bull run continues as EU agrees to ban most Russian oil | Reuters
Oil bull run continues as EU agrees to ban most Russian oil | Reuters
Oil prices extended a bull run on Tuesday after the EU agreed to a partial ban on Russian oil and China decided to lift some coronavirus restrictions amid rising demand ahead of peak U.S. and European summer driving season.
Brent crude for July, which expires on Tuesday, rose $2.31, or 1.9%, to $123.98 a barrel by 0823 GMT, after earlier rising to $124.10 - its highest since March 9. The more active August contract rose $2.44 to $120.04.
U.S. West Texas Intermediate (WTI) crude was trading at $119.34 a barrel, up $4.27 in a fourth session of gains in a row, or 3.7% from Friday's close, hitting its highest since March 9. There was no settlement on Monday due to a U.S. public holiday.
Both July-loading contracts are set to end May as the sixth straight month of rising prices.
Oil prices extended a bull run on Tuesday after the EU agreed to a partial ban on Russian oil and China decided to lift some coronavirus restrictions amid rising demand ahead of peak U.S. and European summer driving season.
Brent crude for July, which expires on Tuesday, rose $2.31, or 1.9%, to $123.98 a barrel by 0823 GMT, after earlier rising to $124.10 - its highest since March 9. The more active August contract rose $2.44 to $120.04.
U.S. West Texas Intermediate (WTI) crude was trading at $119.34 a barrel, up $4.27 in a fourth session of gains in a row, or 3.7% from Friday's close, hitting its highest since March 9. There was no settlement on Monday due to a U.S. public holiday.
Both July-loading contracts are set to end May as the sixth straight month of rising prices.
Monday, 30 May 2022
Oil climbs above $121 a barrel as China eases restrictions, EU meets | Reuters
Oil climbs above $121 a barrel as China eases restrictions, EU meets | Reuters
Oil prices climbed above $121 a barrel on Monday, hitting a two-month high as China eased COVID-19 restrictions and traders priced in expectations that the European Union will eventually reach an agreement to ban Russian oil imports.
Trading activity was muted due to a public holiday in the United States.
The Brent crude futures contract for July, which will expire on Tuesday, settled up $2.24, or 1.9%, at $121.67 a barrel. U.S. West Texas Intermediate (WTI) crude futures were up $1.99, or 1.7%, to $117.06 a barrel at 18.03 GMT, extending solid gains made last week.
"One reason being cited for this is the imminent lifting of coronavirus restrictions in Shanghai, which is sparking hopes that oil demand will pick up again in China," analysts at Commerzbank said in a note to clients.
Shanghai announced an end to its two-month-long COVID-19 lockdown, and will allow the vast majority of people in China's largest city to leave their homes and drive their cars from Wednesday. read more
Oil prices climbed above $121 a barrel on Monday, hitting a two-month high as China eased COVID-19 restrictions and traders priced in expectations that the European Union will eventually reach an agreement to ban Russian oil imports.
Trading activity was muted due to a public holiday in the United States.
The Brent crude futures contract for July, which will expire on Tuesday, settled up $2.24, or 1.9%, at $121.67 a barrel. U.S. West Texas Intermediate (WTI) crude futures were up $1.99, or 1.7%, to $117.06 a barrel at 18.03 GMT, extending solid gains made last week.
"One reason being cited for this is the imminent lifting of coronavirus restrictions in Shanghai, which is sparking hopes that oil demand will pick up again in China," analysts at Commerzbank said in a note to clients.
Shanghai announced an end to its two-month-long COVID-19 lockdown, and will allow the vast majority of people in China's largest city to leave their homes and drive their cars from Wednesday. read more
Oil above $120 a barrel as EU meets on Russia sanctions | Reuters
Oil above $120 a barrel as EU meets on Russia sanctions | Reuters
Oil prices climbed above $120 a barrel on Monday, hitting their highest in more than two months as traders priced in expectations that the European Union will eventually reach an agreement to ban Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up $1.35, or 1.1%, at $120.78 a barrel by 1616 GMT. The August Brent contract , which is more active, rose $1.27, or 1.1%, to $116.81 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped $1.11, or 1%, to $116.18 a barrel, extending solid gains made last week.
The EU is meeting on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, which Moscow calls a "special military operation".
Oil prices climbed above $120 a barrel on Monday, hitting their highest in more than two months as traders priced in expectations that the European Union will eventually reach an agreement to ban Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up $1.35, or 1.1%, at $120.78 a barrel by 1616 GMT. The August Brent contract , which is more active, rose $1.27, or 1.1%, to $116.81 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped $1.11, or 1%, to $116.18 a barrel, extending solid gains made last week.
The EU is meeting on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, which Moscow calls a "special military operation".
Mideast Stocks: #AbuDhabi bourse outperforms Gulf peers ahead of Borouge IPO
Mideast Stocks: Abu Dhabi bourse outperforms Gulf peers ahead of Borouge IPO
Stock markets in the Gulf ended higher on Monday, tracking global shares and oil prices higher, with the Abu Dhabi index outperforming the region ahead of its biggest-ever initial public offering (IPO) Borouge.
MSCI's benchmark for global stocks turned positive on the month on bets of a possible slowdown in U.S. monetary tightening and after an easing of COVID restrictions in China.
In Abu Dhabi, the index advanced 2.4%, with First Abu Dhabi Bank gaining 4.5% and Abu Dhabi Commercial Bank adding 4.6%. The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge, its biggest-ever IPO. Last week, Borouge said it set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors.
The Abu Dhabi stock market continued to extend towards its peak as the strong oil prices provided significant support alongside the positive sentiment among investors, said Wael Makarem, senior market strategist at Exness.
Saudi Arabia's benchmark index closed 1.7% higher, led by a 4.3% jump in Al Rajhi Bank and a 4.4% increase in Riyad Bank. Crude prices, a key catalyst for the Gulf's financial market, climbed above $120 a barrel on Monday, hitting their highest in more than two months, as traders waited to see whether a European Union meeting would reach an agreement on banning Russian oil imports.
Dubai's main share index concluded 1.5% higher, with blue-chip developer Emaar Properties climbing 3.5%. Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
The Qatari index edged up 0.3%, with petrochemical maker Industries Qatar adding 1.5% Outside the Gulf, Egypt's blue-chip index rose 0.2%, ending four days of losses, helped by a 3.3% rise in Talaat Mostafa Group Holding.
Stock markets in the Gulf ended higher on Monday, tracking global shares and oil prices higher, with the Abu Dhabi index outperforming the region ahead of its biggest-ever initial public offering (IPO) Borouge.
MSCI's benchmark for global stocks turned positive on the month on bets of a possible slowdown in U.S. monetary tightening and after an easing of COVID restrictions in China.
In Abu Dhabi, the index advanced 2.4%, with First Abu Dhabi Bank gaining 4.5% and Abu Dhabi Commercial Bank adding 4.6%. The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge, its biggest-ever IPO. Last week, Borouge said it set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors.
The Abu Dhabi stock market continued to extend towards its peak as the strong oil prices provided significant support alongside the positive sentiment among investors, said Wael Makarem, senior market strategist at Exness.
Saudi Arabia's benchmark index closed 1.7% higher, led by a 4.3% jump in Al Rajhi Bank and a 4.4% increase in Riyad Bank. Crude prices, a key catalyst for the Gulf's financial market, climbed above $120 a barrel on Monday, hitting their highest in more than two months, as traders waited to see whether a European Union meeting would reach an agreement on banning Russian oil imports.
Dubai's main share index concluded 1.5% higher, with blue-chip developer Emaar Properties climbing 3.5%. Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
The Qatari index edged up 0.3%, with petrochemical maker Industries Qatar adding 1.5% Outside the Gulf, Egypt's blue-chip index rose 0.2%, ending four days of losses, helped by a 3.3% rise in Talaat Mostafa Group Holding.
Watch Outlook for EM Currencies - Bloomberg video
Watch Outlook for EM Currencies - Bloomberg
Carla Slim, MENA Economist at Standard Chartered discusses her views macro factors impacting EM currencies, Egypt's ongoing economic woes and Abu Dhabi's sovereign wealth fund's $10 billion investment. She speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Carla Slim, MENA Economist at Standard Chartered discusses her views macro factors impacting EM currencies, Egypt's ongoing economic woes and Abu Dhabi's sovereign wealth fund's $10 billion investment. She speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#SaudiArabia Oil Windfall Puzzle Solved: Mideast Newsletter - Bloomberg
Saudi Arabia Oil Windfall Puzzle Solved: Mideast Newsletter - Bloomberg
Investors and economists watching Saudi Arabia's economy over the past few months have been puzzling over something — where is the kingdom's oil windfall going?
With crude prices over a $100 a barrel and production at over 10 million barrels a day, the country is in a rare sweet spot. The kingdom is making about $1 billion from oil exports every day, putting it on track to record its first budget surplus in nearly a decade and the first since the rise of Crown Prince Mohammed bin Salman. How he spends it will be closely watched.
The answer - he won't. Or at least not yet. Finance Minister Mohammed Al-Jadaan said this time the surplus will accumulate in a government current account held at the central bank until the end of the year. After that, it'll be used to replenish foreign currency reserves with any extra potentially transferred to sovereign wealth funds - including the powerful Public Investment Fund that’s become the main engine of state-investment in the domestic economy.
It's a key part of Prince Mohammed's plan to break the boom-bust cycle that plagued Saudi Arabia in the past. Previous budget surpluses were spent on public sector salaries, large infrastructure projects, and big chunks of it were put into low yielding but safe investments like US treasuries. Oil surpluses created an economy whose fortunes rose and fell with the oil price, rather than a rainy day fund.
Prince Mohammed wants to shake off the oil curse, but avoiding it will be tough. Global inflation is rising, the Saudi banking system is struggling with the tightest liquidity conditions in years, and external investor backing for the Prince's biggest initiatives to wean the economy off oil has yet to arrive. The temptation when billions of dollars are flooding into government accounts will be to try and tackle these problems by throwing money at them.
Investors and economists watching Saudi Arabia's economy over the past few months have been puzzling over something — where is the kingdom's oil windfall going?
With crude prices over a $100 a barrel and production at over 10 million barrels a day, the country is in a rare sweet spot. The kingdom is making about $1 billion from oil exports every day, putting it on track to record its first budget surplus in nearly a decade and the first since the rise of Crown Prince Mohammed bin Salman. How he spends it will be closely watched.
The answer - he won't. Or at least not yet. Finance Minister Mohammed Al-Jadaan said this time the surplus will accumulate in a government current account held at the central bank until the end of the year. After that, it'll be used to replenish foreign currency reserves with any extra potentially transferred to sovereign wealth funds - including the powerful Public Investment Fund that’s become the main engine of state-investment in the domestic economy.
It's a key part of Prince Mohammed's plan to break the boom-bust cycle that plagued Saudi Arabia in the past. Previous budget surpluses were spent on public sector salaries, large infrastructure projects, and big chunks of it were put into low yielding but safe investments like US treasuries. Oil surpluses created an economy whose fortunes rose and fell with the oil price, rather than a rainy day fund.
Prince Mohammed wants to shake off the oil curse, but avoiding it will be tough. Global inflation is rising, the Saudi banking system is struggling with the tightest liquidity conditions in years, and external investor backing for the Prince's biggest initiatives to wean the economy off oil has yet to arrive. The temptation when billions of dollars are flooding into government accounts will be to try and tackle these problems by throwing money at them.
#AbuDhabi's Borouge draws $80 bln in demand for its IPO -sources | Reuters
Abu Dhabi's Borouge draws $80 bln in demand for its IPO -sources | Reuters
Abu Dhabi-based petrochemicals company Borouge has attracted demand of $80 billion for its initial public offering, two sources told Reuters, as retail investors snapped up shares despite volatile global markets.
The company, which is jointly owned by Abu Dhabi National Oil Company and Austria's Borealis, has attracted orders of $63 billion from institutional investors, said the sources, declining to be named as the matter is not public.
Borouge is due to list on the Abu Dhabi stock exchange on Friday.
Demand for the retail tranche, which includes employees in the company, totalled $17 billion, the highest for an IPO in the United Arab Emirates in almost two decades.
Asset managers BlackRock and Fidelity were among institutional investors taking part in the offering, the sources said.
Borouge and ADNOC declined to comment when contacted by Reuters on Monday. BlackRock and Fidelity did not immediately respond to a request for comment.
Abu Dhabi-based petrochemicals company Borouge has attracted demand of $80 billion for its initial public offering, two sources told Reuters, as retail investors snapped up shares despite volatile global markets.
The company, which is jointly owned by Abu Dhabi National Oil Company and Austria's Borealis, has attracted orders of $63 billion from institutional investors, said the sources, declining to be named as the matter is not public.
Borouge is due to list on the Abu Dhabi stock exchange on Friday.
Demand for the retail tranche, which includes employees in the company, totalled $17 billion, the highest for an IPO in the United Arab Emirates in almost two decades.
Asset managers BlackRock and Fidelity were among institutional investors taking part in the offering, the sources said.
Borouge and ADNOC declined to comment when contacted by Reuters on Monday. BlackRock and Fidelity did not immediately respond to a request for comment.
#Israel's sovereign wealth fund to begin on June 1 -FinMin | Reuters
Israel's sovereign wealth fund to begin on June 1 -FinMin | Reuters
Israel's long-delayed sovereign wealth fund can start operating on June 1 now that taxes on profits from natural gas and other resources have passed the 1 billion shekels ($301 million) minimum, the Finance Ministry and Tax Authority said on Monday.
Finance Minister Avigdor will sign an order to transfer 1.14 billion shekels, levies accumulated to date, to the fund on Wednesday, the ministry said.
Israel's long-delayed sovereign wealth fund can start operating on June 1 now that taxes on profits from natural gas and other resources have passed the 1 billion shekels ($301 million) minimum, the Finance Ministry and Tax Authority said on Monday.
Finance Minister Avigdor will sign an order to transfer 1.14 billion shekels, levies accumulated to date, to the fund on Wednesday, the ministry said.
Oil prices climb above $120 a barrel ahead of EU meeting on Russia sanctions | Reuters
Oil prices climb above $120 a barrel ahead of EU meeting on Russia sanctions | Reuters
Oil prices climbed above $120 a barrel on Monday, hitting their highest in more than two months, as traders waited to see whether a European Union meeting would reach an agreement on banning Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up 59 cents, or 0.5%, at $120.02 a barrel at 1100 GMT. The August Brent contract , which is more active, rose 74 cents, or 0.6%, to $116.30 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped 65 cents, or 0.6%, to $115.72 a barrel, extending solid gains made last week.
The EU is due to meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, actions which Moscow calls a "special military operation".
Oil prices climbed above $120 a barrel on Monday, hitting their highest in more than two months, as traders waited to see whether a European Union meeting would reach an agreement on banning Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up 59 cents, or 0.5%, at $120.02 a barrel at 1100 GMT. The August Brent contract , which is more active, rose 74 cents, or 0.6%, to $116.30 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped 65 cents, or 0.6%, to $115.72 a barrel, extending solid gains made last week.
The EU is due to meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, actions which Moscow calls a "special military operation".
Analysis: How the Ukraine conflict is reshaping global oil markets | Reuters
Analysis: How the Ukraine conflict is reshaping global oil markets | Reuters
Russia's invasion of Ukraine has reconfigured the global oil market, with African suppliers stepping in to meet European demand and Moscow, stung by Western sanctions, increasingly tapping risky ship-to-ship transfers to get its crude to Asia.
The reroutings mark the biggest supply-side shakeup of the global oil trade since the U.S. shale revolution altered the shape of the market around a decade ago and suggest Russia will be able to navigate a European Union (EU) oil ban, provided Asia and China continue to buy its crude.
Sanctions imposed on Moscow after the conflict in Ukraine kicked off in February, including a U.S. ban on its oil imports, have prompted Russia to pivot away from Europe, where its crude is shunned, to customers in India and China who are picking up cargoes at a steep discount, according to industry data and traders. read more
Russian exports were back to pre-invasion levels in April, according to data from the Paris-based International Energy Agency and oil prices have stabilised around $110 after hitting a 14-year high above $139 a barrel in March.
Russia's invasion of Ukraine has reconfigured the global oil market, with African suppliers stepping in to meet European demand and Moscow, stung by Western sanctions, increasingly tapping risky ship-to-ship transfers to get its crude to Asia.
The reroutings mark the biggest supply-side shakeup of the global oil trade since the U.S. shale revolution altered the shape of the market around a decade ago and suggest Russia will be able to navigate a European Union (EU) oil ban, provided Asia and China continue to buy its crude.
Sanctions imposed on Moscow after the conflict in Ukraine kicked off in February, including a U.S. ban on its oil imports, have prompted Russia to pivot away from Europe, where its crude is shunned, to customers in India and China who are picking up cargoes at a steep discount, according to industry data and traders. read more
Russian exports were back to pre-invasion levels in April, according to data from the Paris-based International Energy Agency and oil prices have stabilised around $110 after hitting a 14-year high above $139 a barrel in March.
Foreign demand to keep #Dubai property prices on steady upward course: Reuters poll | Reuters
Foreign demand to keep Dubai property prices on steady upward course: Reuters poll | Reuters
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
With an economic rebound propelled by higher energy prices and a revival in trade and tourism, the Dubai property market shrugged off a long streak of falls last year and has held on to upbeat momentum since then.
The latest May 11-26 Reuters poll of 13 property market analysts showed a median rise of 7.5% in Dubai house prices in 2022, unchanged from the previous poll taken two months ago.
Market sentiment, lifted by the pandemic easing, "coupled with the successful hosting of the World Expo, the reopening of travel corridors...continues to underpin the market's rebound," said Faisal Durrani, head of Middle East research at Knight Frank.
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
With an economic rebound propelled by higher energy prices and a revival in trade and tourism, the Dubai property market shrugged off a long streak of falls last year and has held on to upbeat momentum since then.
The latest May 11-26 Reuters poll of 13 property market analysts showed a median rise of 7.5% in Dubai house prices in 2022, unchanged from the previous poll taken two months ago.
Market sentiment, lifted by the pandemic easing, "coupled with the successful hosting of the World Expo, the reopening of travel corridors...continues to underpin the market's rebound," said Faisal Durrani, head of Middle East research at Knight Frank.
#UAE’s Utico Hires Banks for Share Sale, Joining #Dubai’s IPO Push - Bloomberg
UAE’s Utico Hires Banks for Share Sale, Joining Dubai’s IPO Push - Bloomberg
United Arab Emirates-based utility Utico FZC hired banks including Goldman Sachs, HSBC Holdings and Standard Chartered to advise on a potential IPO in Dubai this year, joining a steady stream of companies tapping the Gulf equity markets.
The company is seeking a primary offering on the Dubai Financial Market and may consider a dual listing, according to a statement. Other banks involved in the IPO are Emirates NBD, First Abu Dhabi Bank and Citigroup.
As part of the process, the power and water utility is also planning a share buyback, it said.
“As part of the IPO preparations, shareholding changes are underway where consolidation is ongoing,” said Richard Menezes, founder and managing director of Utico. “Talks are ongoing with a major fund and an investor to acquire the firm 100% from its current investors and take it for an IPO in Q4 this year.”
United Arab Emirates-based utility Utico FZC hired banks including Goldman Sachs, HSBC Holdings and Standard Chartered to advise on a potential IPO in Dubai this year, joining a steady stream of companies tapping the Gulf equity markets.
The company is seeking a primary offering on the Dubai Financial Market and may consider a dual listing, according to a statement. Other banks involved in the IPO are Emirates NBD, First Abu Dhabi Bank and Citigroup.
As part of the process, the power and water utility is also planning a share buyback, it said.
“As part of the IPO preparations, shareholding changes are underway where consolidation is ongoing,” said Richard Menezes, founder and managing director of Utico. “Talks are ongoing with a major fund and an investor to acquire the firm 100% from its current investors and take it for an IPO in Q4 this year.”
Mideast Stocks: #AbuDhabi leads major Gulf bourses higher ahead of Borouge IPO
Mideast Stocks: Abu Dhabi leads major Gulf bourses higher ahead of Borouge IPO
Major stock markets in the Gulf rose in early trade on Monday, in line with Asian shares and oil prices, with the Abu Dhabi index leading the gains ahead of Borouge's initial public offering (IPO).
In Abu Dhabi, equities were boosted by a 4.4% jump in First Abu Dhabi Bank and a 4.3% increase in Abu Dhabi Commercial Bank.
The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge, its biggest-ever IPO.
Last week, Borouge said it set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors.
Among other gainers, ADNOC Drilling gained 2.9% as the company announced acquisition of two additional premium offshore jackup rigs.
Saudi Arabia's benchmark index advanced 1.6%, with Al Rajhi Bank adding 3.4%, while Jabal Omar Development climbed 4.6% after the developer recorded a decrease in accumulated losses.
Elsewhere, Saudi Home Loans jumped 3.7% after announcing an annual dividend of 0.774 riyal per share.
Oil prices, a key catalyst for the Gulf's financial markets, rose, hitting their highest in more than two months, as traders waited to see whether the European Union would reach an agreement on banning Russian oil imports.
Dubai's main share index rose 1.5%, led by blue-chip developer Emaar Properties leaping 3.4%.
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
The Qatari index inched up 0.1%.
Qatar's gross domestic product (GDP) should grow 3.5% in 2022, Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al-Thani told a conference on Sunday in Doha.
Fitch Ratings in April forecast Qatar's GDP would grow 3.2% in 2022, from 1.6% in 2021, reflecting increased output from the soccer World Cup that the country is hosting in November and December and the post-pandemic recovery.
Major stock markets in the Gulf rose in early trade on Monday, in line with Asian shares and oil prices, with the Abu Dhabi index leading the gains ahead of Borouge's initial public offering (IPO).
In Abu Dhabi, equities were boosted by a 4.4% jump in First Abu Dhabi Bank and a 4.3% increase in Abu Dhabi Commercial Bank.
The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge, its biggest-ever IPO.
Last week, Borouge said it set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors.
Among other gainers, ADNOC Drilling gained 2.9% as the company announced acquisition of two additional premium offshore jackup rigs.
Saudi Arabia's benchmark index advanced 1.6%, with Al Rajhi Bank adding 3.4%, while Jabal Omar Development climbed 4.6% after the developer recorded a decrease in accumulated losses.
Elsewhere, Saudi Home Loans jumped 3.7% after announcing an annual dividend of 0.774 riyal per share.
Oil prices, a key catalyst for the Gulf's financial markets, rose, hitting their highest in more than two months, as traders waited to see whether the European Union would reach an agreement on banning Russian oil imports.
Dubai's main share index rose 1.5%, led by blue-chip developer Emaar Properties leaping 3.4%.
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
The Qatari index inched up 0.1%.
Qatar's gross domestic product (GDP) should grow 3.5% in 2022, Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al-Thani told a conference on Sunday in Doha.
Fitch Ratings in April forecast Qatar's GDP would grow 3.2% in 2022, from 1.6% in 2021, reflecting increased output from the soccer World Cup that the country is hosting in November and December and the post-pandemic recovery.
Oil prices climb to over 2-month highs ahead of EU meeting on Russia sanctions | Reuters
Oil prices climb to over 2-month highs ahead of EU meeting on Russia sanctions | Reuters
Oil prices rose on Monday, hitting their highest in more than two months, as traders waited to see whether a planned European Union meeting would reach an agreement on banning Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up 54 cents, or 0.5%, at $119.97 a barrel at 0912 GMT. The August Brent contract , which is more active, rose 69 cents, or 0.6%, to $116.25 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped 62 cents, or 0.5%, to $115.69 a barrel, extending solid gains made last week.
The EU is due to meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, actions which Moscow calls a "special military operation".
Oil prices rose on Monday, hitting their highest in more than two months, as traders waited to see whether a planned European Union meeting would reach an agreement on banning Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up 54 cents, or 0.5%, at $119.97 a barrel at 0912 GMT. The August Brent contract , which is more active, rose 69 cents, or 0.6%, to $116.25 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped 62 cents, or 0.5%, to $115.69 a barrel, extending solid gains made last week.
The EU is due to meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, actions which Moscow calls a "special military operation".
Sunday, 29 May 2022
#Dubai owner of P&O Ferries hails management’s ‘amazing job’ over sackings | Financial Times
Dubai owner of P&O Ferries hails management’s ‘amazing job’ over sackings | Financial Times
The head of the Dubai-based group that owns P&O Ferries has insisted it is too late to reverse the decision to sack 800 sailors, as he praised its management for doing an “amazing job” in restructuring the UK company.
The head of the Dubai-based group that owns P&O Ferries has insisted it is too late to reverse the decision to sack 800 sailors, as he praised its management for doing an “amazing job” in restructuring the UK company.
Speaking to the Financial Times on the sidelines of the World Economic Forum in Davos this week, Sultan Ahmed bin Sulayem, the chair and chief executive of DP World, expressed irritation at the way the UK government turned on P&O after the company announced in March that it would dismiss 800 workers without consultation.
Sulayem said the decision was taken by the P&O board without input from its Dubai parent, and the move could not be reversed.
“We said many times, [the UK government] can’t do anything now because [the P&O decision] is in the past,” he said, stressing the company’s defence that its two available options were to switch to a cheaper workforce or cease operating.
Moody’s affirms #Kuwait ‘A1’ rating
Moody’s affirms Kuwait ‘A1’ rating
Moody’s Investors Service (“Moody’s”) affirmed the Government of Kuwait’s long-term local and foreign currency issuer ratings at A1. The outlook remains stable.
The decision to affirm the ratings is underpinned by Moody’s assessment that Kuwait’s balance sheet and fiscal buffers will remain strong for the foreseeable future, which preserve macroeconomic and external stability and anchor the credit profile. Balanced against this key credit strength is the persistently challenging political environment that limits the prospects for reforms that would reduce the vulnerability of the economy and government finances to long-term carbon transition risks.
The stable outlook reflects balanced risks to the ratings. Effective implementation of measures to reduce the government’s exposure to oil revenue and diversify the economy, which Moody’s does not currently factor into its baseline assumptions for at least the next two years, may raise the resilience of Kuwait’s credit profile to oil price fluctuations. By contrast, accelerating global momentum towards carbon transition that lowers the demand for and price of oil, in the absence of reforms including the passage of legislation to expand the government’s financing options, may reintroduce liquidity risks and weigh on the credit profile longer term. Kuwait’s local and foreign currency country ceilings remain unchanged at Aa2.
The narrower-than-average two-notch gap between the local currency ceiling and the sovereign rating reflects the country’s stable balance of payments through episodes of oil price volatility, against the economy’s exposure to a key revenue source and a challenging domestic political environment that constrains reform and diversification prospects. The zero-notch gap between the foreign currency ceiling and local currency ceiling reflects very low transfer and convertibility risks, given the country’s very large net external creditor position that includes ample foreign exchange reserves held by the central bank.
Moody’s Investors Service (“Moody’s”) affirmed the Government of Kuwait’s long-term local and foreign currency issuer ratings at A1. The outlook remains stable.
The decision to affirm the ratings is underpinned by Moody’s assessment that Kuwait’s balance sheet and fiscal buffers will remain strong for the foreseeable future, which preserve macroeconomic and external stability and anchor the credit profile. Balanced against this key credit strength is the persistently challenging political environment that limits the prospects for reforms that would reduce the vulnerability of the economy and government finances to long-term carbon transition risks.
The stable outlook reflects balanced risks to the ratings. Effective implementation of measures to reduce the government’s exposure to oil revenue and diversify the economy, which Moody’s does not currently factor into its baseline assumptions for at least the next two years, may raise the resilience of Kuwait’s credit profile to oil price fluctuations. By contrast, accelerating global momentum towards carbon transition that lowers the demand for and price of oil, in the absence of reforms including the passage of legislation to expand the government’s financing options, may reintroduce liquidity risks and weigh on the credit profile longer term. Kuwait’s local and foreign currency country ceilings remain unchanged at Aa2.
The narrower-than-average two-notch gap between the local currency ceiling and the sovereign rating reflects the country’s stable balance of payments through episodes of oil price volatility, against the economy’s exposure to a key revenue source and a challenging domestic political environment that constrains reform and diversification prospects. The zero-notch gap between the foreign currency ceiling and local currency ceiling reflects very low transfer and convertibility risks, given the country’s very large net external creditor position that includes ample foreign exchange reserves held by the central bank.
Borrowers in #UAE, Gulf face painful back-to-back rate hikes | Banking – Gulf News
Borrowers in UAE, Gulf face painful back-to-back rate hikes | Banking – Gulf News
UAE borrowers will face another sharp rise in interest rates from June as the US Federal Reserve prepares for a 50 basis point hike. This could be repeated in July as well.
The Fed’s May meeting minutes showed officials are resolved to raising interest rates aggressively to curb inflation despite fears the US may suffer a recession. The minutes show officials willing to lift Fed funds rate by 50 bps in June and July after May’s 50 bps hike.
“We expect Fed will raise (rates) to 2.75-3 per cent by early next year,” said Mansoor Mohiuddin, Chief Economist at Bank of Singapore. “We think it is too soon for Fed to shift from 50 bps to 25 bps hikes.”
The UAE and other GCC countries are likely to follow the Fed’s tightening cycle to maintain exchange rate stability due to the currencies’ peg to the dollar.
UAE borrowers will face another sharp rise in interest rates from June as the US Federal Reserve prepares for a 50 basis point hike. This could be repeated in July as well.
The Fed’s May meeting minutes showed officials are resolved to raising interest rates aggressively to curb inflation despite fears the US may suffer a recession. The minutes show officials willing to lift Fed funds rate by 50 bps in June and July after May’s 50 bps hike.
“We expect Fed will raise (rates) to 2.75-3 per cent by early next year,” said Mansoor Mohiuddin, Chief Economist at Bank of Singapore. “We think it is too soon for Fed to shift from 50 bps to 25 bps hikes.”
The UAE and other GCC countries are likely to follow the Fed’s tightening cycle to maintain exchange rate stability due to the currencies’ peg to the dollar.
#Qatar's Commercial Bank keen to issue green bonds, CEO says | Reuters
Qatar's Commercial Bank keen to issue green bonds, CEO says | Reuters
The Commercial Bank of Qatar (CBQ) is keen to issue green bonds if it can ensure the money is used for projects that comply fully with green credentials, Chief Executive Officer Joseph Abraham told a conference in Doha on Sunday.
“There's a huge pool of investor funds which are available, and I think if you are a credible institution with a credible track record and proper governance around it, automatically your bond will be effective," Abraham said.
Qatar's regulators and the stock market are keen on environmental, social and governance (ESG) matters, and the bank's own management and board are keen to improve CBQ's ESG credentials, he added.
The Commercial Bank of Qatar (CBQ) is keen to issue green bonds if it can ensure the money is used for projects that comply fully with green credentials, Chief Executive Officer Joseph Abraham told a conference in Doha on Sunday.
“There's a huge pool of investor funds which are available, and I think if you are a credible institution with a credible track record and proper governance around it, automatically your bond will be effective," Abraham said.
Qatar's regulators and the stock market are keen on environmental, social and governance (ESG) matters, and the bank's own management and board are keen to improve CBQ's ESG credentials, he added.
Kipco Sees Qurain Deal This Year as S&P Puts It on CreditWatch - Bloomberg
Kipco Sees Qurain Deal This Year as S&P Puts It on CreditWatch - Bloomberg
Kuwait Projects Co. said it expects to complete a takeover of Qurain Petrochemical Industries Co. this year, after S&P Global Ratings said it would struggle to improve its financial position if the deal fell through.
“In parallel with the management’s efforts to secure the necessary funding to meet our obligations and maintain our financial standing, we continue to work towards successfully closing the merger with QPIC,” said Eman Al Awadhi, group senior vice president for corporate communications & investor relations at Kuwait Projects.
“With the due diligence process well underway, the merger is progressing according to the set timeline and we are confident that it will be completed before year-end,” she said in a statement.
Kuwait Projects, also known as Kipco, and Qurain Petrochemical in March signed an agreement to assess a potential combination that would create a firm with a combined market value of about $2.7 billion. Kipco is an investment firm focusing on the Middle East and North Africa.
Kuwait Projects Co. said it expects to complete a takeover of Qurain Petrochemical Industries Co. this year, after S&P Global Ratings said it would struggle to improve its financial position if the deal fell through.
“In parallel with the management’s efforts to secure the necessary funding to meet our obligations and maintain our financial standing, we continue to work towards successfully closing the merger with QPIC,” said Eman Al Awadhi, group senior vice president for corporate communications & investor relations at Kuwait Projects.
“With the due diligence process well underway, the merger is progressing according to the set timeline and we are confident that it will be completed before year-end,” she said in a statement.
Kuwait Projects, also known as Kipco, and Qurain Petrochemical in March signed an agreement to assess a potential combination that would create a firm with a combined market value of about $2.7 billion. Kipco is an investment firm focusing on the Middle East and North Africa.
#Qatar central bank governor expects GDP growth of 3.5% in 2022 | Reuters
Qatar central bank governor expects GDP growth of 3.5% in 2022 | Reuters
Qatar's gross domestic product (GDP) should grow 3.5% in 2022, Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al-Thani told a conference on Sunday in Doha.
The energy-rich Gulf emirate plans to start licensing financial technology companies soon, he added.
Fitch Ratings in April forecast Qatar's GDP would grow 3.2% in 2022, from 1.6% in 2021, reflecting increased output from the soccer World Cup that the country is hosting in November and December and the post-pandemic recovery.
Qatar's gross domestic product (GDP) should grow 3.5% in 2022, Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al-Thani told a conference on Sunday in Doha.
The energy-rich Gulf emirate plans to start licensing financial technology companies soon, he added.
Fitch Ratings in April forecast Qatar's GDP would grow 3.2% in 2022, from 1.6% in 2021, reflecting increased output from the soccer World Cup that the country is hosting in November and December and the post-pandemic recovery.
#AbuDhabi state holding firm ADQ to allocate $10 billion for investments with Egypt, Jordan | Reuters
Abu Dhabi state holding firm ADQ to allocate $10 billion for investments with Egypt, Jordan | Reuters
Abu Dhabi state holding firm ADQ will allocate $10 billion in investment for projects with Egypt and Jordan, the United Arab Emirates' state news agency WAM reported on Sunday, citing the Industry and Advanced Technology Minister Sultan Al Jaber.
ADQ has become the leading vehicle for outbound investments from Abu Dhabi, managing about $110 billion in assets, according to Global SWF. It acquired a 45% stake in commodities trader Louis Dreyfus Co (LDC)in 2021.
Abu Dhabi state holding firm ADQ will allocate $10 billion in investment for projects with Egypt and Jordan, the United Arab Emirates' state news agency WAM reported on Sunday, citing the Industry and Advanced Technology Minister Sultan Al Jaber.
ADQ has become the leading vehicle for outbound investments from Abu Dhabi, managing about $110 billion in assets, according to Global SWF. It acquired a 45% stake in commodities trader Louis Dreyfus Co (LDC)in 2021.
#Qatar Exports Surge as Demand for Gas Climbs on Ukraine War - Bloomberg
Qatar Exports Surge as Demand for Gas Climbs on Ukraine War - Bloomberg
Qatar’s exports soared in April as the world’s top liquefied natural gas exporter benefits from a surge in demand after Russia’s war in Ukraine.
Total exports amounted to 43.5 billion riyals ($11.9 billion) compared with 21 billion riyals year ago, according to a statement. That resulted in a trade surplus of 34.2 billion riyals in the month.
Europe is racing to find alternatives to gas from Russia -- the continent’s biggest supplier -- after the country’s invasion of Ukraine. Imports of liquefied natural gas from Qatar and the US, the world’s largest exporters, are a key part of that solution.
Several senior European Union officials -- including the bloc’s top diplomat, Josep Borrell, and Germany’s Economic Minister Robert Habeck -- have traveled to Qatar in the past months to discuss gas supplies.
China was the top destination of Qatar’s exports in April with close to 6.6 billion riyals, followed by India and Japan.
Qatar’s exports soared in April as the world’s top liquefied natural gas exporter benefits from a surge in demand after Russia’s war in Ukraine.
Total exports amounted to 43.5 billion riyals ($11.9 billion) compared with 21 billion riyals year ago, according to a statement. That resulted in a trade surplus of 34.2 billion riyals in the month.
Europe is racing to find alternatives to gas from Russia -- the continent’s biggest supplier -- after the country’s invasion of Ukraine. Imports of liquefied natural gas from Qatar and the US, the world’s largest exporters, are a key part of that solution.
Several senior European Union officials -- including the bloc’s top diplomat, Josep Borrell, and Germany’s Economic Minister Robert Habeck -- have traveled to Qatar in the past months to discuss gas supplies.
China was the top destination of Qatar’s exports in April with close to 6.6 billion riyals, followed by India and Japan.
Friday, 27 May 2022
Oil settles up ahead of U.S. driving season, EU embargo decision | Reuters
Oil settles up ahead of U.S. driving season, EU embargo decision | Reuters
Oil prices rose on Friday, closing out the week with gains ahead of the U.S. Memorial Day holiday weekend, the start of peak U.S. demand season, and as European nations negotiate over whether to impose an outright ban on Russian crude oil.
Brent crude rose $2.03, or 1.7%, to settle at $119.43. U.S. West Texas Intermediate (WTI) crude rose 98 cents, or 0.9%, to settle at $115.07 a barrel. For the week, Brent rose 6% while WTI gained 1.5%.
Prices drew support from strong worldwide demand for fuel, with both gasoline and heating oil futures outpacing crude this year.
"Demand is strong with products leading the way, especially gasoline which dragged crude oil up with it,” said John Kilduff, a partner at Again Capital LLC.
Oil prices rose on Friday, closing out the week with gains ahead of the U.S. Memorial Day holiday weekend, the start of peak U.S. demand season, and as European nations negotiate over whether to impose an outright ban on Russian crude oil.
Brent crude rose $2.03, or 1.7%, to settle at $119.43. U.S. West Texas Intermediate (WTI) crude rose 98 cents, or 0.9%, to settle at $115.07 a barrel. For the week, Brent rose 6% while WTI gained 1.5%.
Prices drew support from strong worldwide demand for fuel, with both gasoline and heating oil futures outpacing crude this year.
"Demand is strong with products leading the way, especially gasoline which dragged crude oil up with it,” said John Kilduff, a partner at Again Capital LLC.
ADC Acquisition: First SPAC in the Middle East Surges in #AbuDhabi Trading Debut - Bloomberg
ADC Acquisition: First SPAC in the Middle East Surges in Abu Dhabi Trading Debut - Bloomberg
The first special purpose acquisition company to list in the Middle East soared in its Abu Dhabi trading debut as the region’s blank-check market gains traction.
ADC Acquisition Corp., backed by Abu Dhabi’s wealth fund ADQ and Chimera Investments, rose as much as 30% before trimming gains to trade at 11.48 dirhams as of 10:24 a.m. local time. The SPAC sold 36.7 million shares at 10 dirhams apiece.
Abu Dhabi is the first exchange in the Middle East to set up a legal framework for blank-check firms, with Dubai looking to follow suit. Saudi Arabia’s bourse said last year it’s still considering whether to open its doors to SPACs.
While abysmal returns, tightening regulatory oversight and investor fatigue have led SPAC issuance to crater in the US this year, the trend is taking off in the Gulf. Initial public offerings in general have boomed in the Middle East, as high oil prices buoy regional stocks and international investors pile in.
Bloomberg News reported last week Investcorp is considering listing a SPAC in the United Arad Emirates that could raise as much as $250 million.
The first special purpose acquisition company to list in the Middle East soared in its Abu Dhabi trading debut as the region’s blank-check market gains traction.
ADC Acquisition Corp., backed by Abu Dhabi’s wealth fund ADQ and Chimera Investments, rose as much as 30% before trimming gains to trade at 11.48 dirhams as of 10:24 a.m. local time. The SPAC sold 36.7 million shares at 10 dirhams apiece.
Abu Dhabi is the first exchange in the Middle East to set up a legal framework for blank-check firms, with Dubai looking to follow suit. Saudi Arabia’s bourse said last year it’s still considering whether to open its doors to SPACs.
While abysmal returns, tightening regulatory oversight and investor fatigue have led SPAC issuance to crater in the US this year, the trend is taking off in the Gulf. Initial public offerings in general have boomed in the Middle East, as high oil prices buoy regional stocks and international investors pile in.
Bloomberg News reported last week Investcorp is considering listing a SPAC in the United Arad Emirates that could raise as much as $250 million.
Oil on track for weekly rise on global supply concerns | Reuters
Oil on track for weekly rise on global supply concerns | Reuters
Oil prices edged higher on Friday and were on track for weekly gains, supported by the prospect of a tight market due to rising gasoline consumption in the United States in summer, and also the possibility of an EU ban on Russian oil.
Brent crude was up 64 cents, or 0.6%, at $118.04 at 1338 GMT, and was on track for a gain of about 5% this week.
U.S. West Texas Intermediate (WTI) crude rose 11 cents, or 0.1%, to $114.20 a barrel. WTI is set for a weekly gain of 0.6%.
"Oil prices have risen to the highest level since end of March, benefiting from renewed declines in U.S. oil inventories," said UBS analyst Giovanni Staunovo.
Oil prices edged higher on Friday and were on track for weekly gains, supported by the prospect of a tight market due to rising gasoline consumption in the United States in summer, and also the possibility of an EU ban on Russian oil.
Brent crude was up 64 cents, or 0.6%, at $118.04 at 1338 GMT, and was on track for a gain of about 5% this week.
U.S. West Texas Intermediate (WTI) crude rose 11 cents, or 0.1%, to $114.20 a barrel. WTI is set for a weekly gain of 0.6%.
"Oil prices have risen to the highest level since end of March, benefiting from renewed declines in U.S. oil inventories," said UBS analyst Giovanni Staunovo.
#AbuDhabi bourse rebounds ahead of Borouge IPO, #Dubai flat | Reuters
Abu Dhabi bourse rebounds ahead of Borouge IPO, Dubai flat | Reuters
Stocks in Abu Dhabi rebounded on Friday, ahead of its biggest ever initial public offering (IPO) of petrochemicals firm Borouge, although the Dubai index ended flat.
The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge.
Borouge said on Monday it has set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors. read more
According to Daniel Takieddine, CEO MENA BDSwiss, investors are increasingly looking toward Borouge's IPO as a catalyst and the listing could attract liquidity as well as help the main index near its previous peak.
In Abu Dhabi, the index (.FTFADGI) advanced 1.6%, with First Abu Dhabi Bank (FAB) (FAB.AD) jumping 6%, its biggest intraday gain in nearly three months.
FAB, the United Arab Emirates' biggest lender, along with other banks is set to share up to $30 million in fees for working on the Borouge IPO, according to a media report.
Elsewhere, Al Seer Marine Supplies And Equipment (ASM.AD) rose nearly 2% as the firm acquired two LPG Tankers worth 246 million dirhams ($66.98 million).
On the other hand, the Abu Dhabi index posted weekly loss of 2.5%, its fourth weekly loss in five.
Dubai's main market index (.DFMGI), however, closed flat.
Logistics firm Aramex leapt 4.8% after the company increased its foreign ownership limit to 100% from 49% earlier.
Stocks in Abu Dhabi rebounded on Friday, ahead of its biggest ever initial public offering (IPO) of petrochemicals firm Borouge, although the Dubai index ended flat.
The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge.
Borouge said on Monday it has set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors. read more
According to Daniel Takieddine, CEO MENA BDSwiss, investors are increasingly looking toward Borouge's IPO as a catalyst and the listing could attract liquidity as well as help the main index near its previous peak.
In Abu Dhabi, the index (.FTFADGI) advanced 1.6%, with First Abu Dhabi Bank (FAB) (FAB.AD) jumping 6%, its biggest intraday gain in nearly three months.
FAB, the United Arab Emirates' biggest lender, along with other banks is set to share up to $30 million in fees for working on the Borouge IPO, according to a media report.
Elsewhere, Al Seer Marine Supplies And Equipment (ASM.AD) rose nearly 2% as the firm acquired two LPG Tankers worth 246 million dirhams ($66.98 million).
On the other hand, the Abu Dhabi index posted weekly loss of 2.5%, its fourth weekly loss in five.
Dubai's main market index (.DFMGI), however, closed flat.
Logistics firm Aramex leapt 4.8% after the company increased its foreign ownership limit to 100% from 49% earlier.
#SaudiArabia steps into the Davos limelight | Financial Times
Saudi Arabia steps into the Davos limelight | Financial Times
The gloomy global elite strolling the Promenade in Davos this week could cheer themselves up by stopping off for free ice cream courtesy of Saudi Arabia’s Crown Prince Mohammed bin Salman.
The gloomy global elite strolling the Promenade in Davos this week could cheer themselves up by stopping off for free ice cream courtesy of Saudi Arabia’s Crown Prince Mohammed bin Salman.
Or they could drop into the Saudi café for coffee, pumpkin jereesh and a rose mamoul crumble. Then visit Prince Mohammed’s Misk Foundation “Youth majlis” pavilion.
With Russian oligarchs banned, the Saudis stepped into the limelight.
Despite a dire human rights record, the Gulf country wants the world to focus on its economic story: the world’s top oil exporter is one of the few bright spots in an otherwise shaky global economy wracked by Russia’s invasion of Ukraine, and surging inflation.
#Russia Faces Biggest Debt Test Yet as US Payment Ban Clouds Path - Bloomberg
Russia Faces Biggest Debt Test Yet as US Payment Ban Clouds Path - Bloomberg
Russia’s ability to sidestep its first foreign default in a century is turning more fraught as another payment comes due on the warring nation’s debt.
Investors are supposed to receive about $100 million of interest on Russian foreign debt in their accounts by Friday, payments President Vladimir Putin’s government says it has already made. That’s unlikely to satisfy concerned bondholders who are keen to see the cash after the US Treasury closed a loophole that previously allowed American banks and individuals to accept such payments.
It’s the latest twist in a debt saga that has dragged on for months as the war in Ukraine and sanctions complicate the flow of cash from Russia to creditors. If Russia’s obligations aren’t fulfilled, a 30-day grace period ensues.
“We are in uncharted waters,” said Ehsan Khoman, head of emerging market research at MUFG Bank Ltd. in Dubai. “All eyes are now on May 27.”
Russia’s ability to sidestep its first foreign default in a century is turning more fraught as another payment comes due on the warring nation’s debt.
Investors are supposed to receive about $100 million of interest on Russian foreign debt in their accounts by Friday, payments President Vladimir Putin’s government says it has already made. That’s unlikely to satisfy concerned bondholders who are keen to see the cash after the US Treasury closed a loophole that previously allowed American banks and individuals to accept such payments.
It’s the latest twist in a debt saga that has dragged on for months as the war in Ukraine and sanctions complicate the flow of cash from Russia to creditors. If Russia’s obligations aren’t fulfilled, a 30-day grace period ensues.
“We are in uncharted waters,” said Ehsan Khoman, head of emerging market research at MUFG Bank Ltd. in Dubai. “All eyes are now on May 27.”
#AbuDhabi's first SPAC lists after raising about $100 mln | Reuters
Abu Dhabi's first SPAC lists after raising about $100 mln | Reuters
Abu Dhabi's first special-purpose acquisition company listed on Friday, raising $100 million in the share sale, its co-owners said.
ADC, owned by state investor ADQ and Chimera Investment, will identify scalable businesses with strong management teams and acquire one or more businesses, the statement said.
Shares of ADC were trading at 10.50 dirhams, up from an offer price of 10 dirhams.
The UAE Securities and Commodities Authority in January approved a regulatory framework for blank-check firms, more commonly known as SPACs.
They raise money to acquire a private firm with the purpose of taking it public, allowing the target to list more quickly on share markets than via traditional initial public offerings.
Abu Dhabi's first special-purpose acquisition company listed on Friday, raising $100 million in the share sale, its co-owners said.
ADC, owned by state investor ADQ and Chimera Investment, will identify scalable businesses with strong management teams and acquire one or more businesses, the statement said.
Shares of ADC were trading at 10.50 dirhams, up from an offer price of 10 dirhams.
The UAE Securities and Commodities Authority in January approved a regulatory framework for blank-check firms, more commonly known as SPACs.
They raise money to acquire a private firm with the purpose of taking it public, allowing the target to list more quickly on share markets than via traditional initial public offerings.
Oil on track for weekly rise amid global supply concerns | Reuters
Oil on track for weekly rise amid global supply concerns | Reuters
Oil prices rose on Friday and were on track for weekly gains, supported by a prospect of a tight market due to rising gasoline consumption in the United States in summer, and also the possibility of an EU ban on Russian oil.
Brent crude was up 58 cents, or 0.5%, at $117.98 at 0844 GMT, and was on track for a gain of about 5% this week.
U.S. West Texas Intermediate (WTI) crude rose 27 cents, or 0.2%, at $114.36 a barrel. WTI is set for a weekly gain of about 1%.
"Oil prices have risen to the highest level since end of March, benefiting from renewed declines in U.S. oil inventories," said UBS analyst Giovanni Staunovo.
Oil prices rose on Friday and were on track for weekly gains, supported by a prospect of a tight market due to rising gasoline consumption in the United States in summer, and also the possibility of an EU ban on Russian oil.
Brent crude was up 58 cents, or 0.5%, at $117.98 at 0844 GMT, and was on track for a gain of about 5% this week.
U.S. West Texas Intermediate (WTI) crude rose 27 cents, or 0.2%, at $114.36 a barrel. WTI is set for a weekly gain of about 1%.
"Oil prices have risen to the highest level since end of March, benefiting from renewed declines in U.S. oil inventories," said UBS analyst Giovanni Staunovo.
Thursday, 26 May 2022
Oil rises to 2-month high on tight supplies, EU seeks Russian crude ban | Reuters
Oil rises to 2-month high on tight supplies, EU seeks Russian crude ban | Reuters
Oil prices climbed about 3% to a two-month high on Thursday on signs of tight supply ahead of U.S. summer driving season, as the European Union (EU) wrangled with Hungary over plans to ban crude imports from Russia over its invasion of Ukraine.
Traders also noted oil prices followed a rise in equities and some weakening of the U.S. dollar against a basket of currencies, which makes oil cheaper when purchased in other currencies.
Brent futures rose $3.37, or 3.0%, to settle at $117.40 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $3.76, or 3.4%, to settle at $114.09.
After rising for six days in a row, Brent closed at its highest since March 25. WTI settled at its highest since May 16.
Oil prices climbed about 3% to a two-month high on Thursday on signs of tight supply ahead of U.S. summer driving season, as the European Union (EU) wrangled with Hungary over plans to ban crude imports from Russia over its invasion of Ukraine.
Traders also noted oil prices followed a rise in equities and some weakening of the U.S. dollar against a basket of currencies, which makes oil cheaper when purchased in other currencies.
Brent futures rose $3.37, or 3.0%, to settle at $117.40 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $3.76, or 3.4%, to settle at $114.09.
After rising for six days in a row, Brent closed at its highest since March 25. WTI settled at its highest since May 16.
Oil jumps to 2-month high on tight supplies, EU seeks Russian crude ban | Reuters
Oil jumps to 2-month high on tight supplies, EU seeks Russian crude ban | Reuters
Oil prices climbed about 3% to a two-month high on Thursday on signs of tight supply ahead of U.S. summer driving season, as the European Union (EU) wrangled with Hungary over plans to ban crude imports from Russia over its invasion of Ukraine.
Brent futures rose $3.52, or 3.1%, to $117.55 a barrel by 1:34 p.m. EDT. U.S. West Texas Intermediate (WTI) crude rose $3.97, or 3.6%, to $114.30.
Brent was on track for its sixth straight daily gainand highest close since March 25. WTI was headed for its highest close since March 23.
"Crude prices rose as a tight oil market was going to remain in place given the start of the summer driving season was going to keep a downward trajectory for U.S. stockpiles," said Edward Moya, senior market analyst at data and analytics firm OANDA.
Oil prices climbed about 3% to a two-month high on Thursday on signs of tight supply ahead of U.S. summer driving season, as the European Union (EU) wrangled with Hungary over plans to ban crude imports from Russia over its invasion of Ukraine.
Brent futures rose $3.52, or 3.1%, to $117.55 a barrel by 1:34 p.m. EDT. U.S. West Texas Intermediate (WTI) crude rose $3.97, or 3.6%, to $114.30.
Brent was on track for its sixth straight daily gainand highest close since March 25. WTI was headed for its highest close since March 23.
"Crude prices rose as a tight oil market was going to remain in place given the start of the summer driving season was going to keep a downward trajectory for U.S. stockpiles," said Edward Moya, senior market analyst at data and analytics firm OANDA.
#SaudiArabia Tucks Away Billions in Oil Money For Next Year - Bloomberg
Saudi Arabia Tucks Away Billions in Oil Money For Next Year - Bloomberg
Saudi Arabia will hold billions of dollars from its oil windfall in a government current account until the end of the year and only then decide how to distribute the money, a shift in its strategy from previous boom periods.
In the past, higher oil prices and output would quickly translate into rising foreign reserves and deposits in local banks, and often lead to a swift boost in the government’s spending. But this time, it will wait until “after the surplus is realized, which means after the closing of the fiscal year” in December, according to Finance Minister Mohammed Al-Jadaan.
In a statement to Bloomberg, Al-Jadaan said the government won’t spend the money until it’s rebuilt reserves depleted during eight years of subdued oil prices. It could then use some of the cash to repay debts and pour it into state investment vehicles, including the powerful Public Investment Fund and the National Development Fund, which focuses on domestic infrastructure.
“The surplus achieved in the first quarter is shown in the government current account and has not yet been deposited to government reserves nor transferred to other groups,” he said.
Saudi Arabia will hold billions of dollars from its oil windfall in a government current account until the end of the year and only then decide how to distribute the money, a shift in its strategy from previous boom periods.
In the past, higher oil prices and output would quickly translate into rising foreign reserves and deposits in local banks, and often lead to a swift boost in the government’s spending. But this time, it will wait until “after the surplus is realized, which means after the closing of the fiscal year” in December, according to Finance Minister Mohammed Al-Jadaan.
In a statement to Bloomberg, Al-Jadaan said the government won’t spend the money until it’s rebuilt reserves depleted during eight years of subdued oil prices. It could then use some of the cash to repay debts and pour it into state investment vehicles, including the powerful Public Investment Fund and the National Development Fund, which focuses on domestic infrastructure.
“The surplus achieved in the first quarter is shown in the government current account and has not yet been deposited to government reserves nor transferred to other groups,” he said.
Oil climbs on tight supply, prospect of EU ban on Russian crude | Reuters
Oil climbs on tight supply, prospect of EU ban on Russian crude | Reuters
Oil prices rose on Thursday, extending a cautious rally this week on signs of tight supply while the European Union (EU) wrangles with Hungary over plans to ban imports from Russia, the world's second-largest crude exporter, after it invaded Ukraine.
Brent crude futures were up $1.60 cents, or 1.4%, to $115.63 a barrel at 1352 GMT. U.S. West Texas Intermediate (WTI) crude futures climbed $2.33, or 2.1%, to $112.66 a barrel.
A bigger-than-expected drawdown in U.S. crude inventories in the week to May 20, following soaring exports, buoyed the market on Wednesday. U.S. refiners picked up the pace of activity, boosting overall capacity use to the highest levels since before the pandemic.
"The fundamental backdrop ... is getting price supportive as the driving season is approaching and will turn even more bullish once the EU sanctions on Russian oil sales are endorsed by all parties involved," PVM Oil's Tamas Varga said.
Oil prices rose on Thursday, extending a cautious rally this week on signs of tight supply while the European Union (EU) wrangles with Hungary over plans to ban imports from Russia, the world's second-largest crude exporter, after it invaded Ukraine.
Brent crude futures were up $1.60 cents, or 1.4%, to $115.63 a barrel at 1352 GMT. U.S. West Texas Intermediate (WTI) crude futures climbed $2.33, or 2.1%, to $112.66 a barrel.
A bigger-than-expected drawdown in U.S. crude inventories in the week to May 20, following soaring exports, buoyed the market on Wednesday. U.S. refiners picked up the pace of activity, boosting overall capacity use to the highest levels since before the pandemic.
"The fundamental backdrop ... is getting price supportive as the driving season is approaching and will turn even more bullish once the EU sanctions on Russian oil sales are endorsed by all parties involved," PVM Oil's Tamas Varga said.
Gulf markets close mixed on growth worries | Reuters
Gulf markets close mixed on growth worries | Reuters
Stock markets in the Gulf ended mixed on Thursday, on persistent concerns over slowing economic growth and after the latest U.S. Federal Reserve minutes confirmed its intent to tighten monetary policy quickly.
Saudi Arabia's benchmark index (.TASI) dropped 0.5%, with the kingdom's biggest lender Saudi National Bank (1180.SE) losing 1.6%, while Dr Sulaiman Al-Habib Medical Services (4013.SE) retreated 1.9%.
Shares of oil behemoth Saudi Aramco (2222.SE), which is at par with Apple Inc (AAPL.O) as the world's most valuable company, were down 0.7%.
Aramco has approached motor oil and lubricant maker Valvoline Inc (VVV.N) to buy its segment catering to commercial customers, Reuters reported on Wednesday, citing sources familiar with the matter. read more
However, the Saudi index recorded its first weekly gain in three weeks.
In Abu Dhabi, the index (.FTFADGI) lost 0.2%, hit by a 1.5%, fall in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).
However, the index's losses were limited by gains at telecoms firm e& (ETISALAT.AD), which advanced 1.1%, after it launched region's first telco non-fungible token (NFT) collection.
Dubai's main share index (.DFMGI) finished 1.2% higher, ending three sessions of losses, boosted by a 3.1% jump in Emirates NBD Bank (ENBD.DU).
Dubai's Emirates Central Cooling Systems Corporation (Empower) has invited investment banks to pitch for roles in its planned initial public offering, which is slated for later this year, two sources with direct knowledge of the matter said. read more
Sheikh Maktoum Bin Mohammed, Dubai's deputy ruler, in November announced plans to take 10 government-linked companies public to boost stock market activity. The ruler named Empower as part of those plans in December.
On the other hand, the Dubai index posted its seventh week of losses in eight.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 0.5%, with Abu Qir Fertilizers (ABUK.CA) falling 2.8%.
Investors reacted to the developments in the United States, while international investors remained cautious to a certain extent, affecting the Egyptian market's potential, said Fadi Reyad, market analyst at CAPEX.com.
Stock markets in the Gulf ended mixed on Thursday, on persistent concerns over slowing economic growth and after the latest U.S. Federal Reserve minutes confirmed its intent to tighten monetary policy quickly.
Saudi Arabia's benchmark index (.TASI) dropped 0.5%, with the kingdom's biggest lender Saudi National Bank (1180.SE) losing 1.6%, while Dr Sulaiman Al-Habib Medical Services (4013.SE) retreated 1.9%.
Shares of oil behemoth Saudi Aramco (2222.SE), which is at par with Apple Inc (AAPL.O) as the world's most valuable company, were down 0.7%.
Aramco has approached motor oil and lubricant maker Valvoline Inc (VVV.N) to buy its segment catering to commercial customers, Reuters reported on Wednesday, citing sources familiar with the matter. read more
However, the Saudi index recorded its first weekly gain in three weeks.
In Abu Dhabi, the index (.FTFADGI) lost 0.2%, hit by a 1.5%, fall in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).
However, the index's losses were limited by gains at telecoms firm e& (ETISALAT.AD), which advanced 1.1%, after it launched region's first telco non-fungible token (NFT) collection.
Dubai's main share index (.DFMGI) finished 1.2% higher, ending three sessions of losses, boosted by a 3.1% jump in Emirates NBD Bank (ENBD.DU).
Dubai's Emirates Central Cooling Systems Corporation (Empower) has invited investment banks to pitch for roles in its planned initial public offering, which is slated for later this year, two sources with direct knowledge of the matter said. read more
Sheikh Maktoum Bin Mohammed, Dubai's deputy ruler, in November announced plans to take 10 government-linked companies public to boost stock market activity. The ruler named Empower as part of those plans in December.
On the other hand, the Dubai index posted its seventh week of losses in eight.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 0.5%, with Abu Qir Fertilizers (ABUK.CA) falling 2.8%.
Investors reacted to the developments in the United States, while international investors remained cautious to a certain extent, affecting the Egyptian market's potential, said Fadi Reyad, market analyst at CAPEX.com.
Mubadala to expand #UAE companies' operations to compete globally
Mubadala to expand UAE companies' operations to compete globally
Mubadala Investment Company aims to expand the operations of its UAE companies and help them to become “globally renowned competitors to the biggest companies out there in their sector”, a senior executive has said.
The UAE portfolio of the sovereign fund, which has an asset base of Dh1.04 trillion, includes aerospace manufacturer Strata, Sanad Group, Al Yah Satellite Company (Yahsat), Mubadala Health and clean energy company Masdar, among others.
“The time has come for us to expand beyond UAE and it is a natural growth strategy for all of UAE companies, especially the big ones,” Badr Al Olama, executive director of UAE clusters at Mubadala, told The National on the sidelines of the Global Aerospace Summit at Emirates Palace in Abu Dhabi on Wednesday.
“Even the industrial companies that you have in different emirates, I think the realisation is now you need to be global in your activities.”
Mubadala Investment Company aims to expand the operations of its UAE companies and help them to become “globally renowned competitors to the biggest companies out there in their sector”, a senior executive has said.
The UAE portfolio of the sovereign fund, which has an asset base of Dh1.04 trillion, includes aerospace manufacturer Strata, Sanad Group, Al Yah Satellite Company (Yahsat), Mubadala Health and clean energy company Masdar, among others.
“The time has come for us to expand beyond UAE and it is a natural growth strategy for all of UAE companies, especially the big ones,” Badr Al Olama, executive director of UAE clusters at Mubadala, told The National on the sidelines of the Global Aerospace Summit at Emirates Palace in Abu Dhabi on Wednesday.
“Even the industrial companies that you have in different emirates, I think the realisation is now you need to be global in your activities.”
#SaudiArabia’s Making $1 Billion From Oil Exports Every Day - Bloomberg
Saudi Arabia’s Making $1 Billion From Oil Exports Every Day - Bloomberg
Saudi Arabia’s oil exports reached $30 billion in March, the highest in at least six years, driven by a rally in oil prices and rising production.
The value of crude exports, now almost $1 billion a day, increased by 123% year on year, the kingdom’s statistics office said.
Saudi Arabia’s crude production rose to 10.3 million barrels a day in March, with Brent oil prices averaging $112 a barrel. Prices have jumped almost 50% this year, mostly due to the fallout of Russia’s invasion of Ukraine.
Saudi Arabia’s oil exports reached $30 billion in March, the highest in at least six years, driven by a rally in oil prices and rising production.
The value of crude exports, now almost $1 billion a day, increased by 123% year on year, the kingdom’s statistics office said.
Saudi Arabia’s crude production rose to 10.3 million barrels a day in March, with Brent oil prices averaging $112 a barrel. Prices have jumped almost 50% this year, mostly due to the fallout of Russia’s invasion of Ukraine.
Borouge IPO: Citi, FAB Among Banks Set to Share $30 Million - Bloomberg
Borouge IPO: Citi, FAB Among Banks Set to Share $30 Million - Bloomberg
Banks including Citigroup Inc., First Abu Dhabi Bank, HSBC Holdings Plc and Morgan Stanley are set to share up to $30 million in fees for working on the initial public offering of chemical producer Borouge Plc in Abu Dhabi.
The share sale is seeking to raise $2 billion, set to be the biggest listing in the United Arab Emirates’ capital. Borouge said the joint bookrunners would receive a 1.25% underwriting commission as well as a discretionary fee of up to 0.25% of the deal size.
That compares with a $97 million payout banks including Citigroup, HSBC and Emirates NBD were offered for underwriting the $6.1 billion IPO of Dubai Electricity & Water Authority in April. Underwriting fees in the Middle East tend to be lower than in other markets such as the U.S., where banks can earn around 5% of deal value for an IPO.
The joint global coordinators of the Borouge IPO are Citigroup, First Abu Dhabi Bank, HSBC and Morgan Stanley. Typically they receive most of the fee proceeds. The joint bookrunners are Abu Dhabi Commercial Bank, Arqaam Capital, EFG-Hermes, Goldman Sachs, and International Securities.
The IPO drew in investors including the family of Indian billionaire Gautam Adani, who committed $75 million to the deal. Investors including BlackRock Inc. and Fidelity are also bidding for Borouge shares, according to people with knowledge of the matter.
Banks including Citigroup Inc., First Abu Dhabi Bank, HSBC Holdings Plc and Morgan Stanley are set to share up to $30 million in fees for working on the initial public offering of chemical producer Borouge Plc in Abu Dhabi.
The share sale is seeking to raise $2 billion, set to be the biggest listing in the United Arab Emirates’ capital. Borouge said the joint bookrunners would receive a 1.25% underwriting commission as well as a discretionary fee of up to 0.25% of the deal size.
That compares with a $97 million payout banks including Citigroup, HSBC and Emirates NBD were offered for underwriting the $6.1 billion IPO of Dubai Electricity & Water Authority in April. Underwriting fees in the Middle East tend to be lower than in other markets such as the U.S., where banks can earn around 5% of deal value for an IPO.
The joint global coordinators of the Borouge IPO are Citigroup, First Abu Dhabi Bank, HSBC and Morgan Stanley. Typically they receive most of the fee proceeds. The joint bookrunners are Abu Dhabi Commercial Bank, Arqaam Capital, EFG-Hermes, Goldman Sachs, and International Securities.
The IPO drew in investors including the family of Indian billionaire Gautam Adani, who committed $75 million to the deal. Investors including BlackRock Inc. and Fidelity are also bidding for Borouge shares, according to people with knowledge of the matter.
#UAE'S Foreign Trade Minister on Supply Chain Challenges, Diversification - Bloomberg video
Watch UAE'S Foreign Trade Minister on Supply Chain Challenges, Diversification - Bloomberg
UAE Foreign Trade Minister Thani Bin Ahmed Al Zeyoudi says that supply chain woes are dominating the conversation in Davos. He speaks to Bloomberg's Francine Lacqua at the World Economic Forum in Davos. (Source: Bloomberg)
#Qatar wins speedy trial, loses procedural claims in Airbus clash | Reuters
Qatar wins speedy trial, loses procedural claims in Airbus clash | Reuters
A British judge on Thursday granted Qatar Airways a relatively quick trial against Airbus (AIR.PA) in a row over jetliner safety but dismissed several procedural claims including a bid by the airline to split the high-profile case into two parts.
The companies have been locked in a dispute for months over the airworthiness of Europe's newest long-haul jet after damage to its protective outer skin shattered one of aviation's closest commercial relationships. read more
The judge's decision means Airbus is free to attempt to keep delivering A350s to Qatar Airways, triggering payment clauses, or to try to sell rejected planes to carriers like Air India which industry sources say could step in as a buyer.
Qatar Airways asked Britain's High Court to split the trial and order Airbus to perform a deeper analysis of issues affecting a system for protecting the planes against lightning, which on average hits commercial jets once a year.
A British judge on Thursday granted Qatar Airways a relatively quick trial against Airbus (AIR.PA) in a row over jetliner safety but dismissed several procedural claims including a bid by the airline to split the high-profile case into two parts.
The companies have been locked in a dispute for months over the airworthiness of Europe's newest long-haul jet after damage to its protective outer skin shattered one of aviation's closest commercial relationships. read more
The judge's decision means Airbus is free to attempt to keep delivering A350s to Qatar Airways, triggering payment clauses, or to try to sell rejected planes to carriers like Air India which industry sources say could step in as a buyer.
Qatar Airways asked Britain's High Court to split the trial and order Airbus to perform a deeper analysis of issues affecting a system for protecting the planes against lightning, which on average hits commercial jets once a year.
#SaudiArabia’s Al Othaim Family Pulls IPO for Malls Unit - Bloomberg
Saudi Arabia’s Al Othaim Family Pulls IPO for Malls Unit - Bloomberg
Saudi Arabia’s Al Othaim family has shelved plans for an initial public offering of its malls business, people familiar with the matter said, in a sign the global IPO market malaise is spreading to the Middle East.
The family is delaying a listing of Abdullah Al Othaim Investment Co. over concerns about valuation and volatility in stocks, the people said, asking not to be identified discussing confidential information.
They’d been considering seeking about $400 million to $500 million from the offering in Saudi Arabia, though hadn’t set precise terms of the deal, the people said. An IPO of the malls unit could be revived at a later date, according to the people.
A representative for the company didn’t immediately respond to a request for comment. GIB Capital LLC had been advising on the listing.
The Middle East has been a rare bright spot for listings in 2022. But rising inflation, combined with higher interest rates, is weighing ever heavier on investor demand for IPOs, particularly for those of consumer-facing businesses.
Saudi Arabia’s Al Othaim family has shelved plans for an initial public offering of its malls business, people familiar with the matter said, in a sign the global IPO market malaise is spreading to the Middle East.
The family is delaying a listing of Abdullah Al Othaim Investment Co. over concerns about valuation and volatility in stocks, the people said, asking not to be identified discussing confidential information.
They’d been considering seeking about $400 million to $500 million from the offering in Saudi Arabia, though hadn’t set precise terms of the deal, the people said. An IPO of the malls unit could be revived at a later date, according to the people.
A representative for the company didn’t immediately respond to a request for comment. GIB Capital LLC had been advising on the listing.
The Middle East has been a rare bright spot for listings in 2022. But rising inflation, combined with higher interest rates, is weighing ever heavier on investor demand for IPOs, particularly for those of consumer-facing businesses.
Borouge’s $2 Billion IPO Attracts BlackRock, Fidelity - Bloomberg
Borouge’s $2 Billion IPO Attracts BlackRock, Fidelity - Bloomberg
UAE chemical producer Borouge Plc’s $2 billion initial public offering is attracting interest from BlackRock Inc. and Fidelity, as fund managers scramble for a slice of the latest hot Middle Eastern listing, people with knowledge of the matter said.
BlackRock and Fidelity are among international funds bidding to get stock in the offering, the people said, asking not to be identified because the information is private. Borouge had already attracted orders from institutional investors for at least 17 times the amount of stock on offer as of mid-day Wednesday, the third day of bookbuilding, according to the people.
Borouge makes specialty plastics for manufacturing and consumer goods at its production facilities in the emirate of Abu Dhabi. Its owners -- Abu Dhabi National Oil Co. and Austrian chemical maker Borealis AG -- are seeking to value Borouge at about $20 billion in what would be the emirate’s biggest-ever listing.
Adnoc and Borealis aren’t currently planning to boost the size of the deal to meet excess demand and will likely stick to their initial plan to list 10% of the company, the people said. Retail investors have until May 28 to place orders and institutional investors have until May 30, meaning the demand for shares is likely to rise.
UAE chemical producer Borouge Plc’s $2 billion initial public offering is attracting interest from BlackRock Inc. and Fidelity, as fund managers scramble for a slice of the latest hot Middle Eastern listing, people with knowledge of the matter said.
BlackRock and Fidelity are among international funds bidding to get stock in the offering, the people said, asking not to be identified because the information is private. Borouge had already attracted orders from institutional investors for at least 17 times the amount of stock on offer as of mid-day Wednesday, the third day of bookbuilding, according to the people.
Borouge makes specialty plastics for manufacturing and consumer goods at its production facilities in the emirate of Abu Dhabi. Its owners -- Abu Dhabi National Oil Co. and Austrian chemical maker Borealis AG -- are seeking to value Borouge at about $20 billion in what would be the emirate’s biggest-ever listing.
Adnoc and Borealis aren’t currently planning to boost the size of the deal to meet excess demand and will likely stick to their initial plan to list 10% of the company, the people said. Retail investors have until May 28 to place orders and institutional investors have until May 30, meaning the demand for shares is likely to rise.
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