Oil falls 3% on uncertainty over future OPEC+ output, recession fears | Reuters
Oil prices sank around 3% on Thursday as OPEC+ confirmed it would only increase output in August as much as previously announced despite tight global supplies, but left the market wondering about future output.
Brent crude futures for September delivery fell $3.42, or 3%, to settle at $109.03 per barrel. The August contract, which expires on Thursday, fell $1.45, or 1.3%, to settle at $114.81 a barrel.
U.S. West Texas Intermediate (WTI) crude futures fell $4.02, or 3.7%, to settle at $105.76 a barrel.
The OPEC+ group of producers, including Russia, on Thursday agreed to stick to its output strategy after two days of meetings. The producer club avoided discussing policy from September onwards. read more
Thursday 30 June 2022
#UAE Partners With Startup Deel to Expedite Foreign Worker Visas - Bloomberg
UAE Partners With Startup Deel to Expedite Foreign Worker Visas - Bloomberg
The United Arab Emirates is forging a partnership with startup Deel to speed up the visa process for foreign workers, offering a new tool in the country’s push to attract international talent and become a regional technology hub.
Payroll and onboarding company Deel will be able to offer its customers, which include the likes of Coinbase Global Inc. and Shopify Inc., faster access to visas through a strategic partnership with the UAE’s Office for AI, Digital Economy and Remote Work Applications, according to a statement shared with Bloomberg.
“I expect this to be a big growth generator for Deel and hopefully a big magnet for talent to the UAE,” Chief Executive Officer Alex Bouaziz said. Customers will be able to access two kinds of visas -- ten years of self-sponsored residence or a more flexible one for shorter durations.
The UAE government has been seeking to make the country a more attractive destination for global technology companies, as part of a plan to diversify away from oil. Bouaziz said that Deel has already begun onboarding workers in recent weeks under the agreement and it could eventually expand to cover tens of thousands of employees.
Founded in 2019, San Francisco-based Deel was last valued at $5.5 billion in October and has received backing from investors including Coatue and and Altimeter Capital. Deel entered a public offer last week to acquire Australian payroll company PayGroup, and Bouaziz said the company is working on other acquisitions.
This is the first time the firm has partnered with a government, but the pact could serve as a model for future agreements, Deel said.
The United Arab Emirates is forging a partnership with startup Deel to speed up the visa process for foreign workers, offering a new tool in the country’s push to attract international talent and become a regional technology hub.
Payroll and onboarding company Deel will be able to offer its customers, which include the likes of Coinbase Global Inc. and Shopify Inc., faster access to visas through a strategic partnership with the UAE’s Office for AI, Digital Economy and Remote Work Applications, according to a statement shared with Bloomberg.
“I expect this to be a big growth generator for Deel and hopefully a big magnet for talent to the UAE,” Chief Executive Officer Alex Bouaziz said. Customers will be able to access two kinds of visas -- ten years of self-sponsored residence or a more flexible one for shorter durations.
The UAE government has been seeking to make the country a more attractive destination for global technology companies, as part of a plan to diversify away from oil. Bouaziz said that Deel has already begun onboarding workers in recent weeks under the agreement and it could eventually expand to cover tens of thousands of employees.
Founded in 2019, San Francisco-based Deel was last valued at $5.5 billion in October and has received backing from investors including Coatue and and Altimeter Capital. Deel entered a public offer last week to acquire Australian payroll company PayGroup, and Bouaziz said the company is working on other acquisitions.
This is the first time the firm has partnered with a government, but the pact could serve as a model for future agreements, Deel said.
Oil falls 2% on uncertainty over future OPEC+ output, recession fears | Reuters
Oil falls 2% on uncertainty over future OPEC+ output, recession fears | Reuters
Oil prices sank over 2% on Thursday as OPEC+ confirmed it would only increase output in August as much as previously announced despite tight global supplies, but left the market wondering about future output.
Brent crude futures for September delivery fell $2.62, or 2.3%, to $109.83 per barrel by 1:10 p.m. EDT (1710 GMT). The August contract, which expires on Thursday, fell $1.36, or 1.2%, to $114.90 a barrel.
U.S. West Texas Intermediate (WTI) crude futures fell $3.22, or 2.9%, to $106.56 a barrel.
The OPEC+ group of producers, including Russia, on Thursday agreed to stick to its output strategy after two days of meetings. The producer club avoided discussing policy from September onwards. read more
Oil prices sank over 2% on Thursday as OPEC+ confirmed it would only increase output in August as much as previously announced despite tight global supplies, but left the market wondering about future output.
Brent crude futures for September delivery fell $2.62, or 2.3%, to $109.83 per barrel by 1:10 p.m. EDT (1710 GMT). The August contract, which expires on Thursday, fell $1.36, or 1.2%, to $114.90 a barrel.
U.S. West Texas Intermediate (WTI) crude futures fell $3.22, or 2.9%, to $106.56 a barrel.
The OPEC+ group of producers, including Russia, on Thursday agreed to stick to its output strategy after two days of meetings. The producer club avoided discussing policy from September onwards. read more
#SaudiArabia in talks to take stake in Aston Martin | Financial Times
Saudi Arabia in talks to take stake in Aston Martin | Financial Times
Saudi Arabia’s Public Investment Fund is in talks with Aston Martin about taking a stake in the business, as the luxury carmaker seeks to raise additional finances for its next range of cars, according to four people.
Saudi Arabia’s Public Investment Fund is in talks with Aston Martin about taking a stake in the business, as the luxury carmaker seeks to raise additional finances for its next range of cars, according to four people.
The PIF, which already has holdings in Lucid Motors and McLaren, is in talks to take fresh equity in the business that could be worth £200mn, the people said.
Talks are at an early stage, they added. Aston is facing the challenge of funding its next generation of sports cars, and its first push into electric vehicles, at a time when the business is saddled with debt and producing no net cash.
The company does not expect to begin generating cash until 2023, and one of Aston’s first priorities is to start paying down some of its high-interest debt.
Oil Set for First Monthly Drop This Year as OPEC+ Hikes Supply - Bloomberg
Oil Set for First Monthly Drop This Year as OPEC+ Hikes Supply - Bloomberg
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Oil is heading for the first monthly decline since November as OPEC+ completed the return of output that it halted during the pandemic.
West Texas Intermediate futures traded near $109 a barrel. OPEC+ rubber-stamped an increase in supply for August, but focus is turning to how much those members with spare production capacity will pump once the current agreement ends.
“Plain sailing as per the last many meetings,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “Nothing new in terms of how to address the massive level of over-compliance. Demand destruction is needed to prevent an autumn of oil market discontent.”
The oil market was roiled by two conflicting drivers in June. Escalating fears over an economic slowdown as central banks aggressively raise interest rates has weighed on headline prices. Still, physical barrels are fetching enormous premiums as tight crude markets wrestle with outages from Libya to Ecuador.
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Oil is heading for the first monthly decline since November as OPEC+ completed the return of output that it halted during the pandemic.
West Texas Intermediate futures traded near $109 a barrel. OPEC+ rubber-stamped an increase in supply for August, but focus is turning to how much those members with spare production capacity will pump once the current agreement ends.
“Plain sailing as per the last many meetings,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “Nothing new in terms of how to address the massive level of over-compliance. Demand destruction is needed to prevent an autumn of oil market discontent.”
The oil market was roiled by two conflicting drivers in June. Escalating fears over an economic slowdown as central banks aggressively raise interest rates has weighed on headline prices. Still, physical barrels are fetching enormous premiums as tight crude markets wrestle with outages from Libya to Ecuador.
Most Gulf indexes fall on fears of sharp economic slowdown | Reuters
Most Gulf indexes fall on fears of sharp economic slowdown | Reuters
Most stock markets in the Gulf ended lower on Thursday, as central banks' aggressive rate-hike approach to tame inflation stokes fears of a rapid economic slowdown.
On Wednesday, central bank chiefs from the U.S. Federal Reserve, the European Central Bank and the Bank of England met in Portugal and voiced their renewed commitment to control inflation no matter what pain it caused. read more
The MSCI World Equity Index was last down 0.67% (.MIWD00000PUS) with year-to-date losses at more than 20%, the most since the index's creation. The decline has wiped $13 trillion off stock values.
Saudi Arabia's benchmark index (.TASI) gave up early gains to close 1.7% lower, with Al Rajhi Bank (1120.SE) falling 2.6% and Saudi National Bank (1180.SE) retreating 3.5%.
The Saudi index (.TASI) has lost almost 12% this quarter, its worst performance since the start of the pandemic.
Dubai's main share index (.DFMGI) fell 0.7%, posting quarterly losses of more than 8%, with top lender Emirates NBD (ENBD.DU) down 1.5%.
The Dubai market was volatile and remained under pressure after a small rebound, said Farah Mourad, senior market analyst of XTB MENA.
"The market could return to new price corrections as concerns around the global economic conditions continue to affect investors' sentiment."
In Abu Dhabi, equities (.FTFADGI) eased 0.4%, hit by a 0.7% fall in International Holding (IHC.AD), a day after the conglomerate briefly touched a record valuation of more than $150 billion.
However, losses were limited by a 1% rise in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD), after HSBC raised its rating on the bank to "Hold" from "Reduce".
The Abu Dhabi index (.FTFADGI) logged a quarterly loss of 5.8%, its first quarterly fall since March last year.
The Qatari benchmark (.QSI) slipped 0.4%, with the Gulf's largest lender, Qatar National Bank (QNBK.QA), declining 0.7%.
The index recorded a quarterly loss of nearly 10%.
Most stock markets in the Gulf ended lower on Thursday, as central banks' aggressive rate-hike approach to tame inflation stokes fears of a rapid economic slowdown.
On Wednesday, central bank chiefs from the U.S. Federal Reserve, the European Central Bank and the Bank of England met in Portugal and voiced their renewed commitment to control inflation no matter what pain it caused. read more
The MSCI World Equity Index was last down 0.67% (.MIWD00000PUS) with year-to-date losses at more than 20%, the most since the index's creation. The decline has wiped $13 trillion off stock values.
Saudi Arabia's benchmark index (.TASI) gave up early gains to close 1.7% lower, with Al Rajhi Bank (1120.SE) falling 2.6% and Saudi National Bank (1180.SE) retreating 3.5%.
The Saudi index (.TASI) has lost almost 12% this quarter, its worst performance since the start of the pandemic.
Dubai's main share index (.DFMGI) fell 0.7%, posting quarterly losses of more than 8%, with top lender Emirates NBD (ENBD.DU) down 1.5%.
The Dubai market was volatile and remained under pressure after a small rebound, said Farah Mourad, senior market analyst of XTB MENA.
"The market could return to new price corrections as concerns around the global economic conditions continue to affect investors' sentiment."
In Abu Dhabi, equities (.FTFADGI) eased 0.4%, hit by a 0.7% fall in International Holding (IHC.AD), a day after the conglomerate briefly touched a record valuation of more than $150 billion.
However, losses were limited by a 1% rise in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD), after HSBC raised its rating on the bank to "Hold" from "Reduce".
The Abu Dhabi index (.FTFADGI) logged a quarterly loss of 5.8%, its first quarterly fall since March last year.
The Qatari benchmark (.QSI) slipped 0.4%, with the Gulf's largest lender, Qatar National Bank (QNBK.QA), declining 0.7%.
The index recorded a quarterly loss of nearly 10%.
GIP, #AbuDhabi Fund ADIA Agree to Buy $7.4 Billion Railcar Lessor VTG - Bloomberg
GIP, Abu Dhabi Fund ADIA Agree to Buy $7.4 Billion Railcar Lessor VTG - Bloomberg
A consortium including Global Infrastructure Partners agreed to buy control of VTG AG in a deal valuing the German railcar lessor at about 7 billion euros ($7.4 billion) including debt.
GIP is partnering with sovereign wealth fund Abu Dhabi Investment Authority on the purchase, according to a statement Wednesday, which confirmed an earlier Bloomberg News report. They will acquire a nearly 73% holding in the Hamburg-based company from investors including Morgan Stanley Infrastructure Partners.
VTG owns more than 88,500 railcars, a portfolio that ranks as the largest privately owned fleet in Europe, according to Wednesday’s statement. Morgan Stanley Infrastructure bought VTG through a 2018 takeover bid valuing the company at about 1.5 billion euros.
GIP and ADIA beat out rival investment firms vying for VTG, people with knowledge of the matter said earlier. Late German entrepreneur Joachim Herz’s private foundation is selling its interest in VTG through the deal. Another investor in VTG, Canadian pension fund Omers, will keep its holding after the transaction, according to the statement.
A consortium including Global Infrastructure Partners agreed to buy control of VTG AG in a deal valuing the German railcar lessor at about 7 billion euros ($7.4 billion) including debt.
GIP is partnering with sovereign wealth fund Abu Dhabi Investment Authority on the purchase, according to a statement Wednesday, which confirmed an earlier Bloomberg News report. They will acquire a nearly 73% holding in the Hamburg-based company from investors including Morgan Stanley Infrastructure Partners.
VTG owns more than 88,500 railcars, a portfolio that ranks as the largest privately owned fleet in Europe, according to Wednesday’s statement. Morgan Stanley Infrastructure bought VTG through a 2018 takeover bid valuing the company at about 1.5 billion euros.
GIP and ADIA beat out rival investment firms vying for VTG, people with knowledge of the matter said earlier. Late German entrepreneur Joachim Herz’s private foundation is selling its interest in VTG through the deal. Another investor in VTG, Canadian pension fund Omers, will keep its holding after the transaction, according to the statement.
Shell (LON:SHEL) Set to Sign Deal With #Qatar for Giant Gas Project - Bloomberg
Shell (LON:SHEL) Set to Sign Deal With Qatar for Giant Gas Project - Bloomberg
Shell Plc is set to follow other Western energy majors by taking a stake in a $29 billion project to boost Qatar’s exports of liquefied natural gas, just as Europe races to shore up new supplies of the fuel.
The London-based company will probably announce its partnership with state-controlled Qatar Energy in Doha on Tuesday, according to two people familiar with the matter. Shell’s chief executive officer, Ben van Beurden, is likely to attend the signing ceremony with Qatari Energy Minister Saad al Kaabi, who’s also CEO of QE, one of the people said.
A Shell spokesperson declined to comment, while QE didn’t immediately respond to a request for comment.
Qatar is increasing its output capacity amid a global energy crunch. Demand for LNG is soaring as European nations try to wean themselves off Russian gas following Moscow’s attack on Ukraine.
Shell Plc is set to follow other Western energy majors by taking a stake in a $29 billion project to boost Qatar’s exports of liquefied natural gas, just as Europe races to shore up new supplies of the fuel.
The London-based company will probably announce its partnership with state-controlled Qatar Energy in Doha on Tuesday, according to two people familiar with the matter. Shell’s chief executive officer, Ben van Beurden, is likely to attend the signing ceremony with Qatari Energy Minister Saad al Kaabi, who’s also CEO of QE, one of the people said.
A Shell spokesperson declined to comment, while QE didn’t immediately respond to a request for comment.
Qatar is increasing its output capacity amid a global energy crunch. Demand for LNG is soaring as European nations try to wean themselves off Russian gas following Moscow’s attack on Ukraine.
#SaudiArabia Unemployment Falls to Lowest Since 2008 as Economy Booms - Bloomberg
Saudi Arabia Unemployment Falls to Lowest Since 2008 as Economy Booms - Bloomberg
Saudi Arabia’s citizen unemployment rate fell to the lowest since 2008 as economic growth surged on the back of higher oil revenue.
Joblessness was at 10.1% in the first quarter, down from 11% in the final three months of last year. The rate reached 5.1% for male citizens and 20.2% for female Saudis, according to data published Thursday by the kingdom’s General Authority for Statistics.
The economy of the world’s largest crude exporter grew nearly 10% in the first quarter, buoyed by higher oil prices and production. The non-oil economy, the engine of job creation, expanded 3.7%.
Citizen unemployment peaked at over 15% at the height of the pandemic in mid-2020 and has since fallen almost every quarter. Yet even in a booming job market, the labor participation rate for Saudis fell by 1.4 percentage point from the fourth quarter to 50.1% in the first three months of this year.
Saudi Arabia’s citizen unemployment rate fell to the lowest since 2008 as economic growth surged on the back of higher oil revenue.
Joblessness was at 10.1% in the first quarter, down from 11% in the final three months of last year. The rate reached 5.1% for male citizens and 20.2% for female Saudis, according to data published Thursday by the kingdom’s General Authority for Statistics.
The economy of the world’s largest crude exporter grew nearly 10% in the first quarter, buoyed by higher oil prices and production. The non-oil economy, the engine of job creation, expanded 3.7%.
Citizen unemployment peaked at over 15% at the height of the pandemic in mid-2020 and has since fallen almost every quarter. Yet even in a booming job market, the labor participation rate for Saudis fell by 1.4 percentage point from the fourth quarter to 50.1% in the first three months of this year.
Pandemic Price Controls Experiment Goes Seriously Awry in #Kuwait - Bloomberg
Pandemic Price Controls Experiment Goes Seriously Awry in Kuwait - Bloomberg
Price controls designed to freeze food costs during the coronavirus outbreak in Kuwait have long outlasted the worst of the pandemic, causing indiscriminate economic havoc two years later.
It was a stopgap measure by one of the world’s richest countries, meant to protect an economy that relies on imports for more than 90% of its food.
But as its side effects increasingly come at a cost to companies and consumers, Kuwait’s experience carries a lesson for a growing number of nations around the world that are imposing or at least debating price controls to cope with record inflation.
“Controlling prices will lead to shortages,” said Eid Al-Shihri, an economist who’s a board member of the Kuwait Entrepreneurs Society. “When the government freezes prices, it shifts away from the market equilibrium, so those on the market supply side are affected.”
Price controls designed to freeze food costs during the coronavirus outbreak in Kuwait have long outlasted the worst of the pandemic, causing indiscriminate economic havoc two years later.
It was a stopgap measure by one of the world’s richest countries, meant to protect an economy that relies on imports for more than 90% of its food.
But as its side effects increasingly come at a cost to companies and consumers, Kuwait’s experience carries a lesson for a growing number of nations around the world that are imposing or at least debating price controls to cope with record inflation.
“Controlling prices will lead to shortages,” said Eid Al-Shihri, an economist who’s a board member of the Kuwait Entrepreneurs Society. “When the government freezes prices, it shifts away from the market equilibrium, so those on the market supply side are affected.”
Billionaire Olayans Join Funding for #UAE Agritech Firm Pure Harvest - Bloomberg
Billionaire Olayans Join Funding for Agritech Firm Pure Harvest - Bloomberg
United Arab Emirates-based Pure Harvest Smart Farms raised $180.5 million in its biggest ever fundraising, from backers including the billionaire Olayan family, which runs one of Saudi Arabia’s largest conglomerates.
The firm, which already has farms in the UAE and Saudi Arabia, will use the funds to expand in the Middle East and enter new markets in Asia. It grows produce including tomatoes and strawberries in controlled environments to protect crops from harsh outdoor conditions while also limiting water use.
Other investors include Britain’s Metric Capital Partners and South Korea’s IMM Investment Corp., the company said in a statement. The latest round, structured as a convertible financing, brings the total amount raised by Pure Harvest to $387.1 million.
Mostly dependent on imported food, governments in the Middle East have put increasing focus on food security in the wake of the coronavirus pandemic and Russia’s invasion of Ukraine. The war has sharply reduced exports from Ukraine, while the blockade of key Black Sea ports has exacerbated supply-chain turmoil, sending global food prices soaring.
United Arab Emirates-based Pure Harvest Smart Farms raised $180.5 million in its biggest ever fundraising, from backers including the billionaire Olayan family, which runs one of Saudi Arabia’s largest conglomerates.
The firm, which already has farms in the UAE and Saudi Arabia, will use the funds to expand in the Middle East and enter new markets in Asia. It grows produce including tomatoes and strawberries in controlled environments to protect crops from harsh outdoor conditions while also limiting water use.
Other investors include Britain’s Metric Capital Partners and South Korea’s IMM Investment Corp., the company said in a statement. The latest round, structured as a convertible financing, brings the total amount raised by Pure Harvest to $387.1 million.
Mostly dependent on imported food, governments in the Middle East have put increasing focus on food security in the wake of the coronavirus pandemic and Russia’s invasion of Ukraine. The war has sharply reduced exports from Ukraine, while the blockade of key Black Sea ports has exacerbated supply-chain turmoil, sending global food prices soaring.
Major Gulf bourses track oil prices higher; #Dubai dips | Reuters
Major Gulf bourses track oil prices higher; Dubai dips | Reuters
Most Gulf stock markets rose in early trade on Thursday on crude prices' strength, while gains were limited amid concerns that major central banks' aggressive rate-hike approach for taming inflation would end up slowing down the global economy.
Oil prices, a key catalyst for the Gulf's financial market, edged higher after dipping in early Asian trade, as concerns about global supply tightness outweighed a build in U.S. gasoline and distillate inventories.
Saudi Arabia's benchmark index (.TASI) inched 0.1% higher in a choppy trading session, led by a 3.9% rise in Sahara International Petrochemical Company (2310.SE).
The kingdom, the world's largest oil exporter, may raise prices of light crude grades to Asia for the second straight month in August on the back of record distillate margins and strong spot premiums for Middle Eastern oil this month. read more
Among other gainers, Arabian Centres (4321.SE) was up 1%, as the company adopted fair value model to measure real estate and the investment properties.
The mall operator expects net assets to be positively affected after adopting this model by an increase of about 10 billion riyals ($2.67 billion).
In Abu Dhabi, the equities (.FTFADGI) gained 1.1%, led by a 2% rise in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD), after HSBC raised its rating for the bank to 'Hold' from 'Reduce'.
However, HSBC slashed its target price to 16.6 dirhams from 18.1 dirhams earlier.
The Qatari benchmark (.QSI) added 0.4%, with petrochemical maker Industries Qatar (IQCD.QA) climbing 1.5%.
The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, eased 0.1%, hit by a 1.1% fall in top lender Emirates NBD (ENBD.DU).
Most Gulf stock markets rose in early trade on Thursday on crude prices' strength, while gains were limited amid concerns that major central banks' aggressive rate-hike approach for taming inflation would end up slowing down the global economy.
Oil prices, a key catalyst for the Gulf's financial market, edged higher after dipping in early Asian trade, as concerns about global supply tightness outweighed a build in U.S. gasoline and distillate inventories.
Saudi Arabia's benchmark index (.TASI) inched 0.1% higher in a choppy trading session, led by a 3.9% rise in Sahara International Petrochemical Company (2310.SE).
The kingdom, the world's largest oil exporter, may raise prices of light crude grades to Asia for the second straight month in August on the back of record distillate margins and strong spot premiums for Middle Eastern oil this month. read more
Among other gainers, Arabian Centres (4321.SE) was up 1%, as the company adopted fair value model to measure real estate and the investment properties.
The mall operator expects net assets to be positively affected after adopting this model by an increase of about 10 billion riyals ($2.67 billion).
In Abu Dhabi, the equities (.FTFADGI) gained 1.1%, led by a 2% rise in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD), after HSBC raised its rating for the bank to 'Hold' from 'Reduce'.
However, HSBC slashed its target price to 16.6 dirhams from 18.1 dirhams earlier.
The Qatari benchmark (.QSI) added 0.4%, with petrochemical maker Industries Qatar (IQCD.QA) climbing 1.5%.
The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, eased 0.1%, hit by a 1.1% fall in top lender Emirates NBD (ENBD.DU).
Oil steady as fuel stocks counter supply concerns | Reuters
Oil steady as fuel stocks counter supply concerns | Reuters
Oil prices were largely steady in volatile trading on Thursday as the market weighed concerns over global supply against a build in U.S. fuel product inventories.
Brent crude futures for September, the more actively traded contract, were up 28 cents, or 0.3%, at $112.73 a barrel by 0911 GMT. The August contract, which expires on Thursday, was down 11 cents, or 0.1%, at $116.15.
U.S. West Texas Intermediate (WTI) crude futures rose 20 cents, or 0.2%, to $109.98.
Crude inventories fell by 2.8 million barrels in the week to June 24, U.S. Energy Information Administration data showed, far exceeding the 569,000 barrel drop forecast in a Reuters poll of analysts. read more
Oil prices were largely steady in volatile trading on Thursday as the market weighed concerns over global supply against a build in U.S. fuel product inventories.
Brent crude futures for September, the more actively traded contract, were up 28 cents, or 0.3%, at $112.73 a barrel by 0911 GMT. The August contract, which expires on Thursday, was down 11 cents, or 0.1%, at $116.15.
U.S. West Texas Intermediate (WTI) crude futures rose 20 cents, or 0.2%, to $109.98.
Crude inventories fell by 2.8 million barrels in the week to June 24, U.S. Energy Information Administration data showed, far exceeding the 569,000 barrel drop forecast in a Reuters poll of analysts. read more
Wednesday 29 June 2022
Schlumberger-Backed Arabian Drilling Gets Approval for Saudi IPO - Bloomberg
Schlumberger-Backed Arabian Drilling Gets Approval for Saudi IPO - Bloomberg
Arabian Drilling Co., a Saudi oilfield-services firm partly held by Schlumberger NV, obtained the regulator’s approval to list its shares in an initial public offering, joining a steady stream of companies tapping the Gulf’s biggest stock market.
The company received the go-ahead to list a 30% stake, or 26.7 million shares, on the Saudi stock exchange, according to a statement. Bloomberg reported in April, citing people familiar with the matter, that Arabian Drilling appointed the Saudi unit of HSBC Holdings Plc and SNB Capital as financial advisers for an IPO that could value it at more than $1.4 billion.
Investor appetite for local listings remains strong, though a rally in Middle Eastern equities faded over the past month as fears of recessions gripped global markets. Saudi Arabian stocks briefly erased this year’s gains last week, trading about 18% below a high in May, before rebounding as bargain hunters stepped in.
Saudi Arabia’s stock market is one of the most active in the Middle East and since allowing foreigners to directly buy stocks in 2015 has attracted some of the biggest global investors. The exchange has been working for several years to attract listings from companies in the region as it tries to position itself as the main venue for stock trading in Middle East.
Arabian Drilling was founded in 1964 and counts Saudi Aramco, the kingdom’s state energy producer, among its main customers. Saudi Arabia’s Industrialization & Energy Services Co. owns 51% of Arabian Drilling, and Services Petroliers Schlumberger the rest.
Arabian Drilling Co., a Saudi oilfield-services firm partly held by Schlumberger NV, obtained the regulator’s approval to list its shares in an initial public offering, joining a steady stream of companies tapping the Gulf’s biggest stock market.
The company received the go-ahead to list a 30% stake, or 26.7 million shares, on the Saudi stock exchange, according to a statement. Bloomberg reported in April, citing people familiar with the matter, that Arabian Drilling appointed the Saudi unit of HSBC Holdings Plc and SNB Capital as financial advisers for an IPO that could value it at more than $1.4 billion.
Investor appetite for local listings remains strong, though a rally in Middle Eastern equities faded over the past month as fears of recessions gripped global markets. Saudi Arabian stocks briefly erased this year’s gains last week, trading about 18% below a high in May, before rebounding as bargain hunters stepped in.
Saudi Arabia’s stock market is one of the most active in the Middle East and since allowing foreigners to directly buy stocks in 2015 has attracted some of the biggest global investors. The exchange has been working for several years to attract listings from companies in the region as it tries to position itself as the main venue for stock trading in Middle East.
Arabian Drilling was founded in 1964 and counts Saudi Aramco, the kingdom’s state energy producer, among its main customers. Saudi Arabia’s Industrialization & Energy Services Co. owns 51% of Arabian Drilling, and Services Petroliers Schlumberger the rest.
Wall Street Banks Pulls Back From Middle East SPACs on SEC Clampdown - Bloomberg
Wall Street Banks Pulls Back From Middle East SPACs on SEC Clampdown - Bloomberg
Wall Street banks are rethinking their involvement in the listings of special purpose acquisition companies in the Middle East’s nascent market as new liability guidelines from US regulators chill the once red-hot industry.
Middle East SPAC sponsors such as Gulf Capital and Investcorp were initially in talks with Citigroup Inc. and Bank of America Corp. respectively, but they are likely to rely on local banks to finalize the deal, according to people familiar with the matter. It’s unclear what role either US bank will play, if any.
Citigroup will be very cautious in accepting new SPAC mandates in the region although it won’t pull back completely and could step up work depending on how the final rules in the US look, the people added, who asked not to be identified discussing private matters. Bank of America has also paused work on SPACs more broadly while the US rules are being finalized.
Goldman Sachs Group Inc., which has pulled out of working with most SPACs it took public, is currently not chasing blank-check firms in the Middle East, people familiar with the matter said. JPMorgan Chase & Co. is being similarly cautious.
Wall Street banks are rethinking their involvement in the listings of special purpose acquisition companies in the Middle East’s nascent market as new liability guidelines from US regulators chill the once red-hot industry.
Middle East SPAC sponsors such as Gulf Capital and Investcorp were initially in talks with Citigroup Inc. and Bank of America Corp. respectively, but they are likely to rely on local banks to finalize the deal, according to people familiar with the matter. It’s unclear what role either US bank will play, if any.
Citigroup will be very cautious in accepting new SPAC mandates in the region although it won’t pull back completely and could step up work depending on how the final rules in the US look, the people added, who asked not to be identified discussing private matters. Bank of America has also paused work on SPACs more broadly while the US rules are being finalized.
Goldman Sachs Group Inc., which has pulled out of working with most SPACs it took public, is currently not chasing blank-check firms in the Middle East, people familiar with the matter said. JPMorgan Chase & Co. is being similarly cautious.
Oil slides 2% on rising U.S. fuel stocks and output | Reuters
Oil slides 2% on rising U.S. fuel stocks and output | Reuters
Oil prices slid about 2% on Wednesday as a rise in U.S. gasoline and distillate inventories and worries about slower economic growth around the world offset ongoing concerns about tight crude supplies.
Brent futures for August delivery fell $1.72, or 1.5%, to settle at $116.26 a barrel. The August contract will expire on Thursday and the more-active September contract was down $1.35 to $112.45.
U.S. West Texas Intermediate crude for August fell $1.98, or 1.8%, to settle at $109.78.
The Energy Information Administration (EIA) said U.S. crude inventories fell last week even as production hit its highest level since April 2020 during the first wave of the coronavirus pandemic. Fuel stocks rose as refiners ramped up activity, operating at 95% of capacity, the highest for this time of year in four years.
Oil prices slid about 2% on Wednesday as a rise in U.S. gasoline and distillate inventories and worries about slower economic growth around the world offset ongoing concerns about tight crude supplies.
Brent futures for August delivery fell $1.72, or 1.5%, to settle at $116.26 a barrel. The August contract will expire on Thursday and the more-active September contract was down $1.35 to $112.45.
U.S. West Texas Intermediate crude for August fell $1.98, or 1.8%, to settle at $109.78.
The Energy Information Administration (EIA) said U.S. crude inventories fell last week even as production hit its highest level since April 2020 during the first wave of the coronavirus pandemic. Fuel stocks rose as refiners ramped up activity, operating at 95% of capacity, the highest for this time of year in four years.
Gulf bourses end mixed on recession worries | Reuters
Gulf bourses end mixed on recession worries | Reuters
Stock markets in the Gulf ended mixed on Wednesday on growing concerns over inflation and the possibility of recession, while the Egyptian bourse rebounded a day after hitting its lowest in two years.
In Abu Dhabi, equities (.FTFADGI) closed 0.4% lower, hit by a 1.6% fall in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD).
However, conglomerate International Holding Co (IHC) (IHC.AD) settled 0.4% higher, after rising about 6% at 305 dirhams ($83.05), fetching a valuation of over $150 billion.
On Tuesday, IHC's unit Alpha Dhabi Holding (ALPHADHABI.AD) announced that it increased stake in Aldar Properties (ALDAR.AD) and became the single-largest shareholder.
Shares of Alpha Dhabi advanced 2.1%, while Aldar eased 0.2%.
IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's president Sheikh Mohammed bin Zayed.
Dubai's main share index (.DFMGI) lost 0.2%, with Emirates Integrated Telecommunications (DU.DU) declining 2.1% and top lender Emirates NBD (ENBD.DU) retreating 1.5%.
The Dubai market remains exposed to new price corrections as global sentiment shifts while the slowdown could impact banks in the emirate, said Daniel Takieddine, CEO MENA BDSwiss.
The Qatari benchmark (.QSI) dropped 0.5%, weighed down by a 1.8% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
HSBC on Wednesday said it slashed price target for the lender to 22.2 riyals from 25.6 riyals earlier.
Saudi Arabia's benchmark index (.TASI) added 0.5%, led by a 2.9% jump in the country's biggest lender Saudi National Bank (1180.SE).
The Saudi stock market saw a positive performance thanks to the expectations around oil prices, said Takieddine.
"The market could benefit from higher oil prices as supplies remain an issue," he said.
Oil prices, a key catalyst for the Gulf's financial markets, gained for a fourth straight session with tight supply worries offsetting concerns about a weaker global economy.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rebounded 0.5%, a day after hitting its lowest in over two years.
Stock markets in the Gulf ended mixed on Wednesday on growing concerns over inflation and the possibility of recession, while the Egyptian bourse rebounded a day after hitting its lowest in two years.
In Abu Dhabi, equities (.FTFADGI) closed 0.4% lower, hit by a 1.6% fall in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD).
However, conglomerate International Holding Co (IHC) (IHC.AD) settled 0.4% higher, after rising about 6% at 305 dirhams ($83.05), fetching a valuation of over $150 billion.
On Tuesday, IHC's unit Alpha Dhabi Holding (ALPHADHABI.AD) announced that it increased stake in Aldar Properties (ALDAR.AD) and became the single-largest shareholder.
Shares of Alpha Dhabi advanced 2.1%, while Aldar eased 0.2%.
IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's president Sheikh Mohammed bin Zayed.
Dubai's main share index (.DFMGI) lost 0.2%, with Emirates Integrated Telecommunications (DU.DU) declining 2.1% and top lender Emirates NBD (ENBD.DU) retreating 1.5%.
The Dubai market remains exposed to new price corrections as global sentiment shifts while the slowdown could impact banks in the emirate, said Daniel Takieddine, CEO MENA BDSwiss.
The Qatari benchmark (.QSI) dropped 0.5%, weighed down by a 1.8% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
HSBC on Wednesday said it slashed price target for the lender to 22.2 riyals from 25.6 riyals earlier.
Saudi Arabia's benchmark index (.TASI) added 0.5%, led by a 2.9% jump in the country's biggest lender Saudi National Bank (1180.SE).
The Saudi stock market saw a positive performance thanks to the expectations around oil prices, said Takieddine.
"The market could benefit from higher oil prices as supplies remain an issue," he said.
Oil prices, a key catalyst for the Gulf's financial markets, gained for a fourth straight session with tight supply worries offsetting concerns about a weaker global economy.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rebounded 0.5%, a day after hitting its lowest in over two years.
Oil prices rise for fourth day on supply worries | Reuters
Oil prices rise for fourth day on supply worries | Reuters
Oil prices gained for a fourth straight session on Wednesday with tight supply worries offsetting concerns about a weaker global economy.
Brent crude futures for August were up 87 cents to $118.85 a barrel by 1132 GMT. The August contract will expire on Thursday and the more-active September contract was at $114.79, up 99 cents, or 0.87%.
U.S. West Texas Intermediate (WTI) crude futures were up $1.20, or 1.1%, to $112.96 a barrel.
Both contracts rose more than 2% on Tuesday as concerns over tight supplies due to Western sanctions on Russia outweighed fears of that demand may slow in a potential future recession.
Oil prices gained for a fourth straight session on Wednesday with tight supply worries offsetting concerns about a weaker global economy.
Brent crude futures for August were up 87 cents to $118.85 a barrel by 1132 GMT. The August contract will expire on Thursday and the more-active September contract was at $114.79, up 99 cents, or 0.87%.
U.S. West Texas Intermediate (WTI) crude futures were up $1.20, or 1.1%, to $112.96 a barrel.
Both contracts rose more than 2% on Tuesday as concerns over tight supplies due to Western sanctions on Russia outweighed fears of that demand may slow in a potential future recession.
#Dubai is the most expensive city in the Gulf for expatriates in 2022 – Mercer survey
Dubai is the most expensive city in the Gulf for expatriates in 2022 – Mercer survey
Dubai has been ranked among the world’s most expensive cities to live and work in for expatriates this year, according to the Cost of Living survey by Mercer.
The study, which looks at how the rising cost of living has impacted workers’ financial wellbeing in 227 cities worldwide, placed Dubai in the 31st position.
The emirate, which has been seeing a growing influx of millionaires and demand for property recently, emerged as the costliest city in the Gulf Cooperation Council (GCC) region, beating out the neighbouring cities of Riyadh, which landed in the 103rd position, Jeddah (111th place), Manama (117), Muscat (119), Kuwait City (131) and Doha (133).
Dubai is also a pricier destination for expats compared to popular global hubs like Paris, Munich, Chicago and Sydney.
Hong Kong landed in the first spot, followed by Zurich and Geneva in the second and third positions, respectively.
Dubai has been ranked among the world’s most expensive cities to live and work in for expatriates this year, according to the Cost of Living survey by Mercer.
The study, which looks at how the rising cost of living has impacted workers’ financial wellbeing in 227 cities worldwide, placed Dubai in the 31st position.
The emirate, which has been seeing a growing influx of millionaires and demand for property recently, emerged as the costliest city in the Gulf Cooperation Council (GCC) region, beating out the neighbouring cities of Riyadh, which landed in the 103rd position, Jeddah (111th place), Manama (117), Muscat (119), Kuwait City (131) and Doha (133).
Dubai is also a pricier destination for expats compared to popular global hubs like Paris, Munich, Chicago and Sydney.
Hong Kong landed in the first spot, followed by Zurich and Geneva in the second and third positions, respectively.
Franklin Templeton Explores Opening an Office in #SaudiArabia - Bloomberg
Franklin Templeton Explores Opening an Office in Saudi Arabia - Bloomberg
Franklin Templeton is looking to establish an office in Saudi Arabia to deepen its access to the Middle East’s largest economy, according to people familiar with the matter.
Chief Executive Officer Jenny Johnson has earmarked the kingdom as a major expansion market for the asset manager, the people said, asking not to be named because the information is private.
The California-based firm, which oversees some $1.5 trillion worth of assets, plans to start the regulatory licensing process that will enable it to build a presence in Riyadh, where it will have investment teams and some sales and support on the ground, the people said. The office will be staffed through a mix of new recruits and internal transfers, including from the company’s Dubai office.
A spokeswoman for Franklin Templeton described Saudi Arabia as “an important market” in the region. “While we have not announced any new office openings, we are currently exploring options to grow our regional footprint and will share details in due course,” she said.
Franklin Templeton is looking to establish an office in Saudi Arabia to deepen its access to the Middle East’s largest economy, according to people familiar with the matter.
Chief Executive Officer Jenny Johnson has earmarked the kingdom as a major expansion market for the asset manager, the people said, asking not to be named because the information is private.
The California-based firm, which oversees some $1.5 trillion worth of assets, plans to start the regulatory licensing process that will enable it to build a presence in Riyadh, where it will have investment teams and some sales and support on the ground, the people said. The office will be staffed through a mix of new recruits and internal transfers, including from the company’s Dubai office.
A spokeswoman for Franklin Templeton described Saudi Arabia as “an important market” in the region. “While we have not announced any new office openings, we are currently exploring options to grow our regional footprint and will share details in due course,” she said.
Mideast Stocks: Strategists Won’t Call Bottom for Gulf Equities as Risks Build - Bloomberg
Mideast Stocks: Strategists Won’t Call Bottom for Gulf Equities as Risks Build - Bloomberg
The selloff in Persian Gulf equities won’t come to an end just yet, according to strategists, who say the risk of lower oil prices and a probable US recession will keep gains at bay.
“There could be more pain for Gulf markets from current levels,” said Noaman Khalid, associate director of indices, macroeconomics and strategy at Arqaam Capital. A lack of positive catalysts would leave the region’s equities “exposed to global vulnerabilities,” he said in written comments.
The MSCI GCC Countries Combined Index has slumped 13% this quarter, marking its worst three-month performance since March 2020, and regional benchmarks including those in Saudi Arabia and the United Arab Emirates have given up most of their yearly gains. The gauge is set to snap a sequence of handing investors positive returns every quarter since the start of the pandemic.
Gulf countries were seen as a haven by investors over the past year as oil prices soared and interest rates climbed, benefiting benchmarks which generally have big weightings of banking and energy shares. Regional equities gave up most of their yearly gains in recent weeks as sentiment soured due to the prospect of a US recession and as crude prices started to pull back from recent peaks.
The selloff in Persian Gulf equities won’t come to an end just yet, according to strategists, who say the risk of lower oil prices and a probable US recession will keep gains at bay.
“There could be more pain for Gulf markets from current levels,” said Noaman Khalid, associate director of indices, macroeconomics and strategy at Arqaam Capital. A lack of positive catalysts would leave the region’s equities “exposed to global vulnerabilities,” he said in written comments.
The MSCI GCC Countries Combined Index has slumped 13% this quarter, marking its worst three-month performance since March 2020, and regional benchmarks including those in Saudi Arabia and the United Arab Emirates have given up most of their yearly gains. The gauge is set to snap a sequence of handing investors positive returns every quarter since the start of the pandemic.
Gulf countries were seen as a haven by investors over the past year as oil prices soared and interest rates climbed, benefiting benchmarks which generally have big weightings of banking and energy shares. Regional equities gave up most of their yearly gains in recent weeks as sentiment soured due to the prospect of a US recession and as crude prices started to pull back from recent peaks.
Most major Gulf bourses fall on lower oil prices, IHC boosts #AbuDhabi | Reuters
Most major Gulf bourses fall on lower oil prices, IHC boosts Abu Dhabi | Reuters
Most stock markets in the Gulf slipped on Wednesday, tracking oil prices and on concerns over inflation and the possibility of recession, although conglomerate International Holding Co helped Abu Dhabi buck the trend and trade higher.
Saudi Arabia's benchmark index (.TASI) dropped 0.4%, hit by a 1.7% fall in Retal Urban Development Company (4322.SE) and a 0.8% decrease in oil behemoth Saudi Aramco (2222.SE).
Oil prices, a key catalyst for the Gulf's financial markets, fell after rising in the previous three sessions as the market tussled between concerns about the global economy and tight global oil supplies.
Dubai's main share index (.DFMGI) eased 0.1%, with top lender Emirates NBD Bank (ENBD.DU) losing 1.1% and blue-chip developer Emaar Properties (EMAR.DU) falling 0.4%.
The S&P 500 index (.SPX) retreated more than 2% overnight after data showed U.S. consumer confidence dropped to a 16-month low in June due to fears high inflation could cause the economy to slow significantly in the second half of the year. read more
In Abu Dhabi, equities (.FTFADGI) advanced 1.4%, with conglomerate International Holding Co (IHC) (IHC.AD) jumping about 6% at 305 dirhams ($83.05), fetching a valuation of over $150 billion.
On Tuesday, IHC's unit Alpha Dhabi Holding (ALPHADHABI.AD) announced that it increased stake in Aldar Properties (ALDAR.AD) and became the single-largest shareholder.
Shares of Alpha Dhabi gained 1.4% and Aldar added 0.7%.
IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's president Sheikh Mohammed bin Zayed.
The Qatari index (.QSI) lost 0.4%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA) declining 1.3% after HCBC slashed its price target to 22.2 riyals from 25.6 riyals earlier.
Most stock markets in the Gulf slipped on Wednesday, tracking oil prices and on concerns over inflation and the possibility of recession, although conglomerate International Holding Co helped Abu Dhabi buck the trend and trade higher.
Saudi Arabia's benchmark index (.TASI) dropped 0.4%, hit by a 1.7% fall in Retal Urban Development Company (4322.SE) and a 0.8% decrease in oil behemoth Saudi Aramco (2222.SE).
Oil prices, a key catalyst for the Gulf's financial markets, fell after rising in the previous three sessions as the market tussled between concerns about the global economy and tight global oil supplies.
Dubai's main share index (.DFMGI) eased 0.1%, with top lender Emirates NBD Bank (ENBD.DU) losing 1.1% and blue-chip developer Emaar Properties (EMAR.DU) falling 0.4%.
The S&P 500 index (.SPX) retreated more than 2% overnight after data showed U.S. consumer confidence dropped to a 16-month low in June due to fears high inflation could cause the economy to slow significantly in the second half of the year. read more
In Abu Dhabi, equities (.FTFADGI) advanced 1.4%, with conglomerate International Holding Co (IHC) (IHC.AD) jumping about 6% at 305 dirhams ($83.05), fetching a valuation of over $150 billion.
On Tuesday, IHC's unit Alpha Dhabi Holding (ALPHADHABI.AD) announced that it increased stake in Aldar Properties (ALDAR.AD) and became the single-largest shareholder.
Shares of Alpha Dhabi gained 1.4% and Aldar added 0.7%.
IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's president Sheikh Mohammed bin Zayed.
The Qatari index (.QSI) lost 0.4%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA) declining 1.3% after HCBC slashed its price target to 22.2 riyals from 25.6 riyals earlier.
Oil prices rise for fourth day on supply worries | Reuters
Oil prices rise for fourth day on supply worries | Reuters
Oil prices gained for a fourth straight session on Wednesday with tight supply worries offsetting concerns about a weaker global economy.
Brent crude futures for August were little changed at $117.9 a barrel by 0917 GMT. The August contract will expire on Thursday and the more-active September contract was at $114.06, up 23 cents, or 0.2%.
U.S. West Texas Intermediate (WTI) crude futures were up 44 cents, or 0.4%, to $112.20 a barrel.
Both contracts rose more than 2% on Tuesday as concerns over tight supplies due to Western sanctions on Russia outweighed fears of that demand may slow in a potential future recession.
"The market is stuck in the push-pull between the current deteriorating macro backdrop and the looming threat of a recession, pitted against the strongest fundamental oil market set-up in decades, maybe ever," RBC Capital's Mike Tran said in a note.
Oil prices gained for a fourth straight session on Wednesday with tight supply worries offsetting concerns about a weaker global economy.
Brent crude futures for August were little changed at $117.9 a barrel by 0917 GMT. The August contract will expire on Thursday and the more-active September contract was at $114.06, up 23 cents, or 0.2%.
U.S. West Texas Intermediate (WTI) crude futures were up 44 cents, or 0.4%, to $112.20 a barrel.
Both contracts rose more than 2% on Tuesday as concerns over tight supplies due to Western sanctions on Russia outweighed fears of that demand may slow in a potential future recession.
"The market is stuck in the push-pull between the current deteriorating macro backdrop and the looming threat of a recession, pitted against the strongest fundamental oil market set-up in decades, maybe ever," RBC Capital's Mike Tran said in a note.
Tuesday 28 June 2022
The Hottest Investor in Renewables Is a Big Oil Producer - WSJ
The Hottest Investor in Renewables Is a Big Oil Producer - WSJ
The United Arab Emirates is emerging as one of the world’s biggest state financiers of clean energy, seeking to become as influential in renewables as it currently is in oil and gas.
Since November, when global nations agreed to accelerate emissions-cutting plans at a United Nations summit, the U.A.E. has said it will fund development of thousands of megawatts of solar-energy projects in countries across the world. It has committed $400 million to enable developing nations’ transition to clean energy and pledged to help supply green electricity to 100 million Africans by 2035.
The Gulf state, alongside the U.S., also has promised to raise $4 billion to invest in technologies that would transform agriculture and food production to limit climate change.
Emirati officials hope the bet on clean energy won’t only help diversify the country’s oil-dependent economy but increase its diplomatic clout and shift perceptions of the Gulf state.
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| A large-scale solar installation near the Masdar City sustainable urban development project. BERND VON JUTRCZENKA/ZUMA PRESS |
The United Arab Emirates is emerging as one of the world’s biggest state financiers of clean energy, seeking to become as influential in renewables as it currently is in oil and gas.
Since November, when global nations agreed to accelerate emissions-cutting plans at a United Nations summit, the U.A.E. has said it will fund development of thousands of megawatts of solar-energy projects in countries across the world. It has committed $400 million to enable developing nations’ transition to clean energy and pledged to help supply green electricity to 100 million Africans by 2035.
The Gulf state, alongside the U.S., also has promised to raise $4 billion to invest in technologies that would transform agriculture and food production to limit climate change.
Emirati officials hope the bet on clean energy won’t only help diversify the country’s oil-dependent economy but increase its diplomatic clout and shift perceptions of the Gulf state.
Oil settles higher as major producers flag capacity limits | Reuters
Oil settles higher as major producers flag capacity limits | Reuters
Oil prices settled higher for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil.
Brent crude futures climbed $2.89, or 2.5%, to settle at $117.58 a barrel by 12:33 p.m. EDT (1633 GMT). U.S. West Texas Intermediate (WTI) crude settled up$2.19, or 2%, to $111.76 a barrel.
Both contracts extended the previous session's gains of nearly 2% after the Group of Seven economic powers vowed to ratchet up existing Western pressure on Russia from sanctions over its invasion of Ukraine.
G7 leaders have agreed to explore imposing a ban on transporting Russian oil that has been sold above a certain price, aiming to deplete Moscow's war chest. read more
Oil prices settled higher for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil.
Brent crude futures climbed $2.89, or 2.5%, to settle at $117.58 a barrel by 12:33 p.m. EDT (1633 GMT). U.S. West Texas Intermediate (WTI) crude settled up$2.19, or 2%, to $111.76 a barrel.
Both contracts extended the previous session's gains of nearly 2% after the Group of Seven economic powers vowed to ratchet up existing Western pressure on Russia from sanctions over its invasion of Ukraine.
G7 leaders have agreed to explore imposing a ban on transporting Russian oil that has been sold above a certain price, aiming to deplete Moscow's war chest. read more
An Esoteric Oil Gauge Has Spiked to an Unprecedented Level - Bloomberg
An Esoteric Oil Gauge Has Spiked to an Unprecedented Level - Bloomberg
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The oil market is so strong some gauges are at previously unthinkable levels.
Nowhere in the world is that as stark as in a flagship futures contract in the United Arab Emirates, currently the third-largest producer in the Organization of Petroleum Exporting Countries.
Murban crude oil futures for August are trading at about $8.90 a barrel higher than for the following month. The same spread closed at a record $9.52 on June 24. The jump is so eye-watering that the equivalent marker for global benchmark Brent has never traded at that level.
With oil refining margins at incredibly high levels globally, traders are willing to pay significantly more for get-it-now crudes. Shipments of Middle Eastern crude to Europe, including Murban, have grown in recent months. The flows have likely increased as refiners seek to replace Russian supplies, which have been shunned since it invaded Ukraine.
While the price spike has been enabled by an incredibly strong crude market -- both Brent and US benchmark West Texas Intermediate are back in a superbackwardation that characterizes extremely tight markets -- liquidity in the emergent Murban contract is more limited than for the main benchmarks.
Total open interest across all Murban futures is about 40,000 contracts and volume rarely surpasses 5,000 contracts a day, a fraction of that for Brent or WTI.
But the jump is a reminder of the strength in physical crude oil right now. Key North Sea swaps have also surged in recent days, in another sign of wider market strength.
.png)
The oil market is so strong some gauges are at previously unthinkable levels.
Nowhere in the world is that as stark as in a flagship futures contract in the United Arab Emirates, currently the third-largest producer in the Organization of Petroleum Exporting Countries.
Murban crude oil futures for August are trading at about $8.90 a barrel higher than for the following month. The same spread closed at a record $9.52 on June 24. The jump is so eye-watering that the equivalent marker for global benchmark Brent has never traded at that level.
With oil refining margins at incredibly high levels globally, traders are willing to pay significantly more for get-it-now crudes. Shipments of Middle Eastern crude to Europe, including Murban, have grown in recent months. The flows have likely increased as refiners seek to replace Russian supplies, which have been shunned since it invaded Ukraine.
While the price spike has been enabled by an incredibly strong crude market -- both Brent and US benchmark West Texas Intermediate are back in a superbackwardation that characterizes extremely tight markets -- liquidity in the emergent Murban contract is more limited than for the main benchmarks.
Total open interest across all Murban futures is about 40,000 contracts and volume rarely surpasses 5,000 contracts a day, a fraction of that for Brent or WTI.
But the jump is a reminder of the strength in physical crude oil right now. Key North Sea swaps have also surged in recent days, in another sign of wider market strength.
#Saudi foreign direct investment inflows rise 9.5% in first quarter | Reuters
Saudi foreign direct investment inflows rise 9.5% in first quarter | Reuters
Saudi Arabia recorded 9.5% increase year on year in foreign direct investment (FDI) flows during the first three months of 2022, the investment ministry said on Twitter on Tuesday.
The FDI inflows were at 7.4 billion riyals ($1.97 billion) in the first quarter of 2022, the ministry added.
Saudi Arabia recorded 9.5% increase year on year in foreign direct investment (FDI) flows during the first three months of 2022, the investment ministry said on Twitter on Tuesday.
The FDI inflows were at 7.4 billion riyals ($1.97 billion) in the first quarter of 2022, the ministry added.
Most Gulf bourses gain, tracking oil, global shares | Reuters
Most Gulf bourses gain, tracking oil, global shares | Reuters
Most stock markets in the Gulf ended higher on Tuesday, tracking oil prices and global shares as China eased some quarantine requirements for international arrivals which raised hopes for stronger growth and a revival in demand for commodities.
China slashed the quarantine time for inbound travellers by half in a major easing of one of the world's strictest COVID-19 curbs, which have deterred cross-border travel and resulted in international flights running at just 2% of pre-pandemic levels. read more
Saudi Arabia's benchmark index (.TASI) leapt 2.1%, buoyed by a 3.3% rise in oil behemoth Saudi Aramco (2222.SE) and a 3.4% increase in the country's biggest lender Saudi National Bank (1180.SE).
Oil prices, a key factor for the Gulf's financial markets, swung higher after China eased quarantine rules, with focus already on tight supply as G7 leaders agreed to study placing price caps on imports of Russian oil and gas.
The energy index (.TENI) in the kingdom advanced 3.2%.
Dubai's main share index (.DFMGI) added 1.1%, led by a 1.9% gain in Emirates NBD Bank (ENBD.DU) and a 1.6% rise in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Dubai business park operator TECOM Group said on Monday it had raised 1.7 billion dirhams ($462.87 million) from investors via its initial public offering. read more
Over the short term, the market remains supported by the success of Tecom's IPO, according to Fadi Reyad, market analyst at CAPEX.com.
In Abu Dhabi, the equities (.FTFADGI) finished 1.9% higher, with conglomerate International Holding (IHC.AD) climbing 2%, after its unit Alpha Dhabi Holding (ALPHADHABI.AD) increased the stake in Aldar Properties (ALDAR.AD) and became the single-largest shareholder.
Shares of Alpha Dhabi were 2.4% higher, while Aldar advanced 3.7%.
The Qatari index (.QSI) closed 1.1% higher, driven by a 2.4% increase in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) slipped 0.8%, reaching its lowest since April 2020.
The Egyptian bourse continued its slide as international investors' selling trend is still active said Reyad.
"The market could see some support when new IPOs are launched, attracting liquidity."
Most stock markets in the Gulf ended higher on Tuesday, tracking oil prices and global shares as China eased some quarantine requirements for international arrivals which raised hopes for stronger growth and a revival in demand for commodities.
China slashed the quarantine time for inbound travellers by half in a major easing of one of the world's strictest COVID-19 curbs, which have deterred cross-border travel and resulted in international flights running at just 2% of pre-pandemic levels. read more
Saudi Arabia's benchmark index (.TASI) leapt 2.1%, buoyed by a 3.3% rise in oil behemoth Saudi Aramco (2222.SE) and a 3.4% increase in the country's biggest lender Saudi National Bank (1180.SE).
Oil prices, a key factor for the Gulf's financial markets, swung higher after China eased quarantine rules, with focus already on tight supply as G7 leaders agreed to study placing price caps on imports of Russian oil and gas.
The energy index (.TENI) in the kingdom advanced 3.2%.
Dubai's main share index (.DFMGI) added 1.1%, led by a 1.9% gain in Emirates NBD Bank (ENBD.DU) and a 1.6% rise in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Dubai business park operator TECOM Group said on Monday it had raised 1.7 billion dirhams ($462.87 million) from investors via its initial public offering. read more
Over the short term, the market remains supported by the success of Tecom's IPO, according to Fadi Reyad, market analyst at CAPEX.com.
In Abu Dhabi, the equities (.FTFADGI) finished 1.9% higher, with conglomerate International Holding (IHC.AD) climbing 2%, after its unit Alpha Dhabi Holding (ALPHADHABI.AD) increased the stake in Aldar Properties (ALDAR.AD) and became the single-largest shareholder.
Shares of Alpha Dhabi were 2.4% higher, while Aldar advanced 3.7%.
The Qatari index (.QSI) closed 1.1% higher, driven by a 2.4% increase in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) slipped 0.8%, reaching its lowest since April 2020.
The Egyptian bourse continued its slide as international investors' selling trend is still active said Reyad.
"The market could see some support when new IPOs are launched, attracting liquidity."
Watch ACDB's Malik on #Saudi Banks, OPEC+ Outlook - Bloomberg video
Watch ACDB's Malik on Saudi Banks, OPEC+ Outlook - Bloomberg
Monica Malik, chief economist at Abu Dhabi Commercial Bank, discusses the liquidity relief for Saudi banks after facing the worst funding crunch in over and decade. She also talks about the difficult situation with OPEC+ in a tight oil market. She speaks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Oil extends gains as major producers flag capacity limits | Reuters
Oil extends gains as major producers flag capacity limits | Reuters
Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil.
Brent crude futures climbed by $1.98, or 1.72%, to $117.02 a barrel by 1153 GMT, adding to the previous session's 1.7% gain.
U.S. West Texas Intermediate (WTI) crude futures rose $1.65, or 1.5%, to $111.22, extending the previous session's 1.8% advance.
Leaders of the G7 group of wealthy nations said they will explore a potential ban on transporting Russian oil that has been sold above a certain price as they seek to step up pressure on Moscow over its invasion of Ukraine. read more
Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil.
Brent crude futures climbed by $1.98, or 1.72%, to $117.02 a barrel by 1153 GMT, adding to the previous session's 1.7% gain.
U.S. West Texas Intermediate (WTI) crude futures rose $1.65, or 1.5%, to $111.22, extending the previous session's 1.8% advance.
Leaders of the G7 group of wealthy nations said they will explore a potential ban on transporting Russian oil that has been sold above a certain price as they seek to step up pressure on Moscow over its invasion of Ukraine. read more
#UAE’s Alpha Dhabi increases stake in Aldar Properties
UAE’s Alpha Dhabi increases stake in Aldar Properties
UAE-based conglomerate Alpha Dhabi Holding has become the “parent company” of Abu Dhabi real estate giant Aldar Properties PJSC, by increasing stake and reaffirming itself as the largest shareholder, the company said today.
The holding company said in a statement to Abu Dhabi Securities Exchange (ADX) that it increased its stake in Aldar but did not disclose by what percentage.
Alpha Dhabi last increased its stake in Aldar to 30 percent in January 2022.
Eng. Hamad Al Ameri, CEO of Alpha Dhabi Holding, said: “As a long-term strategic shareholder, Alpha Dhabi will continue to support Aldar’s management team as they execute its transformational growth agenda.
UAE-based conglomerate Alpha Dhabi Holding has become the “parent company” of Abu Dhabi real estate giant Aldar Properties PJSC, by increasing stake and reaffirming itself as the largest shareholder, the company said today.
The holding company said in a statement to Abu Dhabi Securities Exchange (ADX) that it increased its stake in Aldar but did not disclose by what percentage.
Alpha Dhabi last increased its stake in Aldar to 30 percent in January 2022.
Eng. Hamad Al Ameri, CEO of Alpha Dhabi Holding, said: “As a long-term strategic shareholder, Alpha Dhabi will continue to support Aldar’s management team as they execute its transformational growth agenda.
Major Gulf bourses track Asian shares, oil prices higher | Reuters
Major Gulf bourses track Asian shares, oil prices higher | Reuters
Major stock exchanges in the Middle East rose on Tuesday, in line with Asian peers, driven by China's decision to ease some quarantine rules for international arrivals.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 0.5%, having spent most of the day in negative territory.
China will halve to seven days its COVID-19 quarantine period for visitors from overseas, with a further three days spent at home, health authorities said. read more
In Abu Dhabi, the index (.FTFADGI) rose 0.5%, with the country's biggest lender First Abu Dhabi Bank (FAB.AD) gaining 0.9%, while Alpha Dhabi Holding (ALPHADHABI.AD) advanced as much as 3.2% after increasing stake in Aldar Properties (ALDAR.AD), becoming the single-largest shareholder.
Shares of Aldar Properties were up 3.2%.
Dubai's main share index (.DFMGI) edged up 0.2%, helped by a 1% increase in blue-chip developer Emaar Properties (EMAR.DU).
Dubai business park operator TECOM Group said on Monday it had raised 1.7 billion dirhams ($462.87 million) from investors via its initial public offering. read more
Saudi Arabia's benchmark index (.TASI) rose 0.4%, supported by a 0.8% rise in Saudi National Bank (1180.SE) and a 0.4% increase in oil giant Saudi Aramco (2222.SE).
Industrial investment firm Bawan (1302.SE) surged 8.7%, its biggest intraday gain in nearly two years, after the company announced its intention to purchase up to 3 million treasury shares.
Oil prices, a key catalyst for the Gulf's financial markets, rallied for a third session as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly, while political unrest in Libya and Ecuador added to supply concerns.
In Qatar, the index (.QSI) gained 0.5%, with petrochemical maker Industries Qatar (IQCD.QA) rising 1.6%, and Commercial Bank (COMB.QA) adding 1.3%.
Major stock exchanges in the Middle East rose on Tuesday, in line with Asian peers, driven by China's decision to ease some quarantine rules for international arrivals.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 0.5%, having spent most of the day in negative territory.
China will halve to seven days its COVID-19 quarantine period for visitors from overseas, with a further three days spent at home, health authorities said. read more
In Abu Dhabi, the index (.FTFADGI) rose 0.5%, with the country's biggest lender First Abu Dhabi Bank (FAB.AD) gaining 0.9%, while Alpha Dhabi Holding (ALPHADHABI.AD) advanced as much as 3.2% after increasing stake in Aldar Properties (ALDAR.AD), becoming the single-largest shareholder.
Shares of Aldar Properties were up 3.2%.
Dubai's main share index (.DFMGI) edged up 0.2%, helped by a 1% increase in blue-chip developer Emaar Properties (EMAR.DU).
Dubai business park operator TECOM Group said on Monday it had raised 1.7 billion dirhams ($462.87 million) from investors via its initial public offering. read more
Saudi Arabia's benchmark index (.TASI) rose 0.4%, supported by a 0.8% rise in Saudi National Bank (1180.SE) and a 0.4% increase in oil giant Saudi Aramco (2222.SE).
Industrial investment firm Bawan (1302.SE) surged 8.7%, its biggest intraday gain in nearly two years, after the company announced its intention to purchase up to 3 million treasury shares.
Oil prices, a key catalyst for the Gulf's financial markets, rallied for a third session as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly, while political unrest in Libya and Ecuador added to supply concerns.
In Qatar, the index (.QSI) gained 0.5%, with petrochemical maker Industries Qatar (IQCD.QA) rising 1.6%, and Commercial Bank (COMB.QA) adding 1.3%.
Oil extends gains as major producers flag capacity limits | Reuters
Oil extends gains as major producers flag capacity limits | Reuters
Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly, while political unrest in Libya and Ecuador added to supply concerns.
U.S. West Texas Intermediate (WTI) crude futures rose $1.8, or 1.6%, to $111.36 a barrel by 0644 GMT, extending a 1.8% gain in the previous session.
Brent crude futures climbed $1.9, or 1.7%, to $116.99, adding to a 1.7% rise in the previous session.
The UAE and Saudi Arabia have been seen as the only two countries in the Organization of the Petroleum Exporting Countries (OPEC) with spare capacity available to make up for lost Russian supply and weak output from other member nations.
Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly, while political unrest in Libya and Ecuador added to supply concerns.
U.S. West Texas Intermediate (WTI) crude futures rose $1.8, or 1.6%, to $111.36 a barrel by 0644 GMT, extending a 1.8% gain in the previous session.
Brent crude futures climbed $1.9, or 1.7%, to $116.99, adding to a 1.7% rise in the previous session.
The UAE and Saudi Arabia have been seen as the only two countries in the Organization of the Petroleum Exporting Countries (OPEC) with spare capacity available to make up for lost Russian supply and weak output from other member nations.
#Iran applies to join BRICS group of emerging countries | Reuters
Iran applies to join BRICS group of emerging countries | Reuters
Iran has submitted an application to become a member in the group of emerging economies known as the BRICS, an Iranian official said on Monday.
Iran's membership in the BRICS group, which includes Brazil, Russia, India, China and South Africa, "would result in added values for both sides," Iran's Foreign Ministry spokesperson said.
Russian Foreign Ministry spokeswoman Maria Zakharova said separately that Argentina had also applied to join the group. Argentinian officials could not be reached for immediate comment.
Argentina's President Alberto Fernandez, currently in Europe, has in recent days reiterated his desire for Argentina to join BRICS.
Iran has submitted an application to become a member in the group of emerging economies known as the BRICS, an Iranian official said on Monday.
Iran's membership in the BRICS group, which includes Brazil, Russia, India, China and South Africa, "would result in added values for both sides," Iran's Foreign Ministry spokesperson said.
Russian Foreign Ministry spokeswoman Maria Zakharova said separately that Argentina had also applied to join the group. Argentinian officials could not be reached for immediate comment.
Argentina's President Alberto Fernandez, currently in Europe, has in recent days reiterated his desire for Argentina to join BRICS.
Monday 27 June 2022
#UAE minister pledges commitment to oil production ceiling through end of pact | Reuters
UAE minister pledges commitment to oil production ceiling through end of pact | Reuters
The United Arab Emirates' oil production is near to maximum capacity based on its current OPEC+ production baseline, which is 3.168 million barrels per day, Energy Minister Suhail al-Mazrouei told state news agency WAM on Monday.
"In light of recent media reports, I would like to clarify that the UAE is producing near to our maximum production capacity based on its current OPEC+ production baseline (3.168 mbopd) which UAE is committed by until the end of the agreement," he said.
The United Arab Emirates' oil production is near to maximum capacity based on its current OPEC+ production baseline, which is 3.168 million barrels per day, Energy Minister Suhail al-Mazrouei told state news agency WAM on Monday.
"In light of recent media reports, I would like to clarify that the UAE is producing near to our maximum production capacity based on its current OPEC+ production baseline (3.168 mbopd) which UAE is committed by until the end of the agreement," he said.
Oil rises $2/bbl after G7 vows new Russian sanctions | Reuters
Oil rises $2/bbl after G7 vows new Russian sanctions | Reuters
Oil rose $2 a barrel on Monday on the prospect of even tighter supplies loomed over the market as the Group of Seven nations promised to tighten the squeeze on Russian President Vladimir Putin's war chest while actually lowering energy prices.
Brent crude futures settled $1.97, or 1.7% higher, at $115.09 a barrel, while U.S. West Texas Intermediate crude closed up $1.95, or 1.8%, at $109.57 a barrel.
The group of wealthy nations vowed to stand with Ukraine "for as long as it takes", proposing to cap the price of Russian oil as part of new sanctions to hit Moscow's finances. read more
"I think if they were to implement a price cap on sale and purchase of Russian oil, it's difficult for me to imagine how this is going to be implemented, especially when China and India have become Russia's biggest customers," said Houston-based oil consultant Andrew Lipow.
Oil rose $2 a barrel on Monday on the prospect of even tighter supplies loomed over the market as the Group of Seven nations promised to tighten the squeeze on Russian President Vladimir Putin's war chest while actually lowering energy prices.
Brent crude futures settled $1.97, or 1.7% higher, at $115.09 a barrel, while U.S. West Texas Intermediate crude closed up $1.95, or 1.8%, at $109.57 a barrel.
The group of wealthy nations vowed to stand with Ukraine "for as long as it takes", proposing to cap the price of Russian oil as part of new sanctions to hit Moscow's finances. read more
"I think if they were to implement a price cap on sale and purchase of Russian oil, it's difficult for me to imagine how this is going to be implemented, especially when China and India have become Russia's biggest customers," said Houston-based oil consultant Andrew Lipow.
BlueCrest Hires Ex-Citadel Trader Wheeler for #Dubai Expansion - Bloomberg
BlueCrest Hires Ex-Citadel Trader Wheeler for Dubai Expansion - Bloomberg
Billionaire Michael Platt’s private investment firm is expanding operations to Dubai, with former Citadel money manager Chris Wheeler among those hired.
BlueCrest Capital Management is expected to start with 10 people, including at least three portfolio managers, according to people with knowledge of the matter. The firm plans to open an office in the Dubai financial district and trade imminently, said the people, who asked not to be identified because the details are private.
Wheeler and a spokesman for BlueCrest declined to comment.
The firm, which runs Platt’s wealth and that of his partners, joins peers such as Schonfeld Strategic Advisors and Brevan Howard Asset Management in expanding to Dubai as the city emerges as one of the newest hubs for hedge fund talent. Such firms rely on a group of traders running different strategies across multiple investment teams.
Billionaire Michael Platt’s private investment firm is expanding operations to Dubai, with former Citadel money manager Chris Wheeler among those hired.
BlueCrest Capital Management is expected to start with 10 people, including at least three portfolio managers, according to people with knowledge of the matter. The firm plans to open an office in the Dubai financial district and trade imminently, said the people, who asked not to be identified because the details are private.
Wheeler and a spokesman for BlueCrest declined to comment.
The firm, which runs Platt’s wealth and that of his partners, joins peers such as Schonfeld Strategic Advisors and Brevan Howard Asset Management in expanding to Dubai as the city emerges as one of the newest hubs for hedge fund talent. Such firms rely on a group of traders running different strategies across multiple investment teams.
#Qatar pledges $100 mln to establish platform to recover distressed assets | Reuters
Qatar pledges $100 mln to establish platform to recover distressed assets | Reuters
The Qatar Financial Center (QFC) said on Monday that it has pledged $100 million to fund a new platform aimed at recovering distressed assets.
Atlas Merchant Capital, the private equity firm co-founded by former Barclays Plc chief Bob Diamond, will advise the new platform on strategy and the new vehicle will seek to coordinate with an investment firm focused on distressed assets, the QFC statement said.
However, QFC called the move a “non-binding letter of intent” intended to motivate institutional investors to fund an additional $1.5 billion.
Atlas Merchant Capital did not respond to a request for comment.
The new vehicle "will aim to provide liquidity to financial institutions and credit markets for the resolution of distressed assets, QFC said, adding it "believes recent global crises have created an opportunity for private investment in the sector."
The new platform, which will open a regional hub in Doha, targets a first close in 2022 and a final close in 2023, according to the QFC statement.
The QFC licenses foreign companies to exempt them from the Gulf state’s local ownership laws and to allow for full repatriation of profits.
The Qatar Financial Center (QFC) said on Monday that it has pledged $100 million to fund a new platform aimed at recovering distressed assets.
Atlas Merchant Capital, the private equity firm co-founded by former Barclays Plc chief Bob Diamond, will advise the new platform on strategy and the new vehicle will seek to coordinate with an investment firm focused on distressed assets, the QFC statement said.
However, QFC called the move a “non-binding letter of intent” intended to motivate institutional investors to fund an additional $1.5 billion.
Atlas Merchant Capital did not respond to a request for comment.
The new vehicle "will aim to provide liquidity to financial institutions and credit markets for the resolution of distressed assets, QFC said, adding it "believes recent global crises have created an opportunity for private investment in the sector."
The new platform, which will open a regional hub in Doha, targets a first close in 2022 and a final close in 2023, according to the QFC statement.
The QFC licenses foreign companies to exempt them from the Gulf state’s local ownership laws and to allow for full repatriation of profits.
Oil prices rise amid G7 talks on new Russian sanctions | Reuters
Oil prices rise amid G7 talks on new Russian sanctions | Reuters
Oil prices traded higher on Monday in a volatile session as investors waited for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations in Germany.
Brent crude futures rose $2.56, or 2.3%, to $115.68 a barrel by 1:56 p.m. ET (1756 GMT), while U.S. West Texas Intermediate crude was up $2.51, or 2.3%, at $110.14 a barrel.
The prospect of even tighter supplies loomed over the market as western governments sought ways to limit Russia's ability to fund its war in Ukraine, even though G7 leaders were also expected to discuss a revival of the Iran nuclear deal, which might lead to more oil exports from the OPEC member. [ read more ]
Oil prices traded higher on Monday in a volatile session as investors waited for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations in Germany.
Brent crude futures rose $2.56, or 2.3%, to $115.68 a barrel by 1:56 p.m. ET (1756 GMT), while U.S. West Texas Intermediate crude was up $2.51, or 2.3%, at $110.14 a barrel.
The prospect of even tighter supplies loomed over the market as western governments sought ways to limit Russia's ability to fund its war in Ukraine, even though G7 leaders were also expected to discuss a revival of the Iran nuclear deal, which might lead to more oil exports from the OPEC member. [ read more ]
#SaudiArabia Banks Facing $43 Billion Tab Get a Rates Breather for Now - Bloomberg video
Saudi Arabia Banks Facing $43 Billion Tab Get a Rates Breather for Now - Bloomberg
Saudi Arabia’s cash injections into banks brought immediate liquidity relief for an industry still in the grip of a funding challenge.
The interest rate banks charge one another for loans had its biggest two-decline since the height of the global pandemic in March 2020 after policy makers acted to address the worst funding crunch in over a decade. The Saudi Central Bank, known as SAMA, in recent days placed about $13 billion as time deposits with commercial lenders, according to people familiar with the matter.
But under the assumption that Saudi banks will expand credit by nearly 14% this year while deposits grow far slower, Bloomberg Intelligence estimates lenders will still need to raise about 160 billion riyals ($43 billion) to finance bigger loan books.
“Banks still must diversify funding,” said Edmond Christou, senior analyst at Bloomberg Intelligence. “SAMA’s aid just delays a fix.”
The first signs of a turnaround have already emerged, however, with liquidity conditions loosening sharply since Friday’s close. The three-month Saudi Interbank Offered Rate, or Saibor, slipped to 2.9281% on Monday, a decline of nearly 37 basis points in two days.
The interest rate banks charge one another for loans had its biggest two-decline since the height of the global pandemic in March 2020 after policy makers acted to address the worst funding crunch in over a decade. The Saudi Central Bank, known as SAMA, in recent days placed about $13 billion as time deposits with commercial lenders, according to people familiar with the matter.
But under the assumption that Saudi banks will expand credit by nearly 14% this year while deposits grow far slower, Bloomberg Intelligence estimates lenders will still need to raise about 160 billion riyals ($43 billion) to finance bigger loan books.
“Banks still must diversify funding,” said Edmond Christou, senior analyst at Bloomberg Intelligence. “SAMA’s aid just delays a fix.”
The first signs of a turnaround have already emerged, however, with liquidity conditions loosening sharply since Friday’s close. The three-month Saudi Interbank Offered Rate, or Saibor, slipped to 2.9281% on Monday, a decline of nearly 37 basis points in two days.
Most Gulf indexes in black as inflation fears ease | Reuters
Most Gulf indexes in black as inflation fears ease | Reuters
Most Gulf markets extended gains on Monday, tracking global shares as a drop in commodity prices allayed fears of accelerating inflation and aggressive interest rate hikes.
Dubai's main share index (.DFMGI) gained 0.5%, led by a 2.7% rise in top lender Emirates NBD (ENBD.DU).
Dubai business park operator TECOM Group said on Monday it had raised 1.7 billion dirhams ($463 million) from investors via its initial public offering (IPO). read more
The company, owned by the investment vehicle of Dubai's ruler, had announced its plan on June 8 to sell a 12.5% stake by offering 625 million ordinary shares in its IPO.
Dubai stocks moved higher, supported by a rebound in international markets and the successful IPO of Tecom, said Wael Makarem, Senior Market Strategist – MENA at Exness.
"The offering has shown investors' interest in Dubai but the market remains exposed to price corrections in the currently challenging global conditions."
In Abu Dhabi, stocks (.FTFADGI) added 0.3%, supported by a 3.6% jump in conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) as its unit signed a memorandum of understanding with a Libyan firm to develop a strategic long-term partnership and collaborate in renewable energy sector in Libya.
The Qatari index (.QSI) added 0.2%, with Qatar Gas Transport (QGTS.QA) rising more than 3% after its cabinet approved increasing the percentage of non-Qatari investors' ownership up to 100% of the co's capital.
The benchmark index (.TASI) in Saudi Arabia, however, fell 0.7% in a choppy trade.
Oil prices, a key catalyst for the Gulf's financial markets, were volatile following last week's rout, as the market grappled with concerns over an economic slowdown versus worries about lost Russian supply amid sanctions over the Ukraine conflict.
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 2%, with most of stocks in the negative territory including Fawry for Banking Technology and Electronic Payment (FWRY.CA), which lost about 10%.
According to Makarem, Egyptian stocks continued to fall under the weight of the selling pressure as international investors accelerated their retreat from the market.
"The Egyptian market remained exposed to the development in the aftermath of the G7 nations' meeting concerning Ukraine."
Most Gulf markets extended gains on Monday, tracking global shares as a drop in commodity prices allayed fears of accelerating inflation and aggressive interest rate hikes.
Dubai's main share index (.DFMGI) gained 0.5%, led by a 2.7% rise in top lender Emirates NBD (ENBD.DU).
Dubai business park operator TECOM Group said on Monday it had raised 1.7 billion dirhams ($463 million) from investors via its initial public offering (IPO). read more
The company, owned by the investment vehicle of Dubai's ruler, had announced its plan on June 8 to sell a 12.5% stake by offering 625 million ordinary shares in its IPO.
Dubai stocks moved higher, supported by a rebound in international markets and the successful IPO of Tecom, said Wael Makarem, Senior Market Strategist – MENA at Exness.
"The offering has shown investors' interest in Dubai but the market remains exposed to price corrections in the currently challenging global conditions."
In Abu Dhabi, stocks (.FTFADGI) added 0.3%, supported by a 3.6% jump in conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) as its unit signed a memorandum of understanding with a Libyan firm to develop a strategic long-term partnership and collaborate in renewable energy sector in Libya.
The Qatari index (.QSI) added 0.2%, with Qatar Gas Transport (QGTS.QA) rising more than 3% after its cabinet approved increasing the percentage of non-Qatari investors' ownership up to 100% of the co's capital.
The benchmark index (.TASI) in Saudi Arabia, however, fell 0.7% in a choppy trade.
Oil prices, a key catalyst for the Gulf's financial markets, were volatile following last week's rout, as the market grappled with concerns over an economic slowdown versus worries about lost Russian supply amid sanctions over the Ukraine conflict.
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 2%, with most of stocks in the negative territory including Fawry for Banking Technology and Electronic Payment (FWRY.CA), which lost about 10%.
According to Makarem, Egyptian stocks continued to fall under the weight of the selling pressure as international investors accelerated their retreat from the market.
"The Egyptian market remained exposed to the development in the aftermath of the G7 nations' meeting concerning Ukraine."
Biden’s Reversal on #Saudi, #UAE Is Bad Strategy and Won't Lower Gas Prices - Bloomberg
Biden’s Reversal on Saudis, UAE Is Bad Strategy and Won't Lower Gas Prices - Bloomberg
After several months of will-he-won’t-he speculation, the White House confirmed that President Joe Biden’s trip to the Middle East next month will include a stop in Saudi Arabia. There, he will meet with Mohammed bin Salman, ending the crown prince’s diplomatic isolation over his involvement in the murder of the journalist Jamal Khashoggi. The decision is a staggering about-face from Biden, who during his presidential campaign vowed to make Saudi Arabia a “pariah” state.
This isn’t the only apparent change in the Biden administration’s approach toward the Gulf. There are widespread reports that it is on the verge of signing a substantive new security pact with the United Arab Emirates. The deal is rumored to include regional economic and security cooperation, as well as the potential for a concrete U.S. security guarantee to Abu Dhabi.
All this has met with a wave of praise in Washington, with many of those who normally argue that realpolitik is immoral suddenly discovering the merits of realism when it comes to the U.S.-Saudi relationship.
Richard Haass, president of the Council on Foreign Relations, declared that “a pure, values-centered approach to Saudi Arabia … is unsustainable.” Andrew Exum, a defense official in President Barack Obama’s administration, lauded the president for “sacrificing his values today in the interests of something we haven’t seen much of in the past two decades: realism.”
After several months of will-he-won’t-he speculation, the White House confirmed that President Joe Biden’s trip to the Middle East next month will include a stop in Saudi Arabia. There, he will meet with Mohammed bin Salman, ending the crown prince’s diplomatic isolation over his involvement in the murder of the journalist Jamal Khashoggi. The decision is a staggering about-face from Biden, who during his presidential campaign vowed to make Saudi Arabia a “pariah” state.
This isn’t the only apparent change in the Biden administration’s approach toward the Gulf. There are widespread reports that it is on the verge of signing a substantive new security pact with the United Arab Emirates. The deal is rumored to include regional economic and security cooperation, as well as the potential for a concrete U.S. security guarantee to Abu Dhabi.
All this has met with a wave of praise in Washington, with many of those who normally argue that realpolitik is immoral suddenly discovering the merits of realism when it comes to the U.S.-Saudi relationship.
Richard Haass, president of the Council on Foreign Relations, declared that “a pure, values-centered approach to Saudi Arabia … is unsustainable.” Andrew Exum, a defense official in President Barack Obama’s administration, lauded the president for “sacrificing his values today in the interests of something we haven’t seen much of in the past two decades: realism.”
Persian Gulf Gets First ETFs Tracking US Stocks From Chimera - Bloomberg
Persian Gulf Gets First ETFs Tracking US Stocks From Chimera - Bloomberg
Two exchange-traded funds tracking US equities will be a first for the Persian Gulf’s growing ETF industry as Abu Dhabi’s Chimera Capital LLC expands its products.
The company will list Chimera S&P US Shariah Value ETF, a vehicle that will track the performance of the S&P High Yield Dividend Aristocrats U.S. Shariah Top 30 35/20 Capped Index. The gauge includes stocks such as Johnson & Johnson, Procter & Gamble Co., and Exxon Mobil Corp.
Chimera will also launch Chimera S&P US Shariah Growth ETF, which will track the performance of the S&P 500 U.S. Shariah Top 30 35/20 Capped Index. This gauge tracks the performance of thirty of the biggest and most liquid Shariah-compliant constituents of the S&P 500, including companies such as Apple Inc., Tesla Inc., and Amazon.com Inc.
US equities have tumbled this year as the Federal Reserve embarked on a path to raise interest rates to tame soaring inflation, amplifying fears of a recession. About $16.8 billion exited global stock funds in the week through June 22, with US equities seeing their first outflow in seven weeks at $17.4 billion, Bank of America Corp. said, citing EPFR Global data.
The two new ETFs will start trading on Friday in Abu Dhabi. They are the latest additions to the Chimera Umbrella Fund, which already had three other Shariah-compliant ETFs. BNY Mellon will be the funds’ global custodian, and International Securities, EFG-Hermes, Arqaam Capital, Daman Securities and BHM Capital were all authorized participants.
Two exchange-traded funds tracking US equities will be a first for the Persian Gulf’s growing ETF industry as Abu Dhabi’s Chimera Capital LLC expands its products.
The company will list Chimera S&P US Shariah Value ETF, a vehicle that will track the performance of the S&P High Yield Dividend Aristocrats U.S. Shariah Top 30 35/20 Capped Index. The gauge includes stocks such as Johnson & Johnson, Procter & Gamble Co., and Exxon Mobil Corp.
Chimera will also launch Chimera S&P US Shariah Growth ETF, which will track the performance of the S&P 500 U.S. Shariah Top 30 35/20 Capped Index. This gauge tracks the performance of thirty of the biggest and most liquid Shariah-compliant constituents of the S&P 500, including companies such as Apple Inc., Tesla Inc., and Amazon.com Inc.
US equities have tumbled this year as the Federal Reserve embarked on a path to raise interest rates to tame soaring inflation, amplifying fears of a recession. About $16.8 billion exited global stock funds in the week through June 22, with US equities seeing their first outflow in seven weeks at $17.4 billion, Bank of America Corp. said, citing EPFR Global data.
The two new ETFs will start trading on Friday in Abu Dhabi. They are the latest additions to the Chimera Umbrella Fund, which already had three other Shariah-compliant ETFs. BNY Mellon will be the funds’ global custodian, and International Securities, EFG-Hermes, Arqaam Capital, Daman Securities and BHM Capital were all authorized participants.
Atlas Merchant Capital Gets Qatari Backing for Distressed Assets Platform - Bloomberg
Atlas Merchant Capital Gets Qatari Backing for Distressed Assets Platform - Bloomberg
Atlas Merchant Capital, the investment firm co-founded by former Barclays Plc Chief Executive Officer Bob Diamond, has received commitments from Qatar for a new vehicle focused on distressed assets.
The Qatar Financial Centre -- a platform through which most foreign financial firms do business in the country -- has signed a non-binding letter of intent to commit $100 million to the Atlas entity, it said in a statement on Monday.
The vehicle, which will have an office in Doha, expects to target a first close in 2022 and a final close in 2023. It is aiming for total capital commitments of $1.5 billion, and said the QFC’s backing “will help to mobilise other institutional investors.” Atlas Merchant will advise on strategy.
“The platform will aim to provide liquidity to financial institutions and credit markets for the resolution of distressed assets,” the QFC statement said. “Recent global crises have created an opportunity for private investment in the sector.”
Atlas Merchant Capital, the investment firm co-founded by former Barclays Plc Chief Executive Officer Bob Diamond, has received commitments from Qatar for a new vehicle focused on distressed assets.
The Qatar Financial Centre -- a platform through which most foreign financial firms do business in the country -- has signed a non-binding letter of intent to commit $100 million to the Atlas entity, it said in a statement on Monday.
The vehicle, which will have an office in Doha, expects to target a first close in 2022 and a final close in 2023. It is aiming for total capital commitments of $1.5 billion, and said the QFC’s backing “will help to mobilise other institutional investors.” Atlas Merchant will advise on strategy.
“The platform will aim to provide liquidity to financial institutions and credit markets for the resolution of distressed assets,” the QFC statement said. “Recent global crises have created an opportunity for private investment in the sector.”
#Oman’s actual budget deficit declines 45.4% in 2021
Oman’s actual budget deficit declines 45.4% in 2021
Oman’s actual budget deficit by the end of 2021 was OMR1.223 billion ($3.18 billion), a 45.4% decline compared to the estimated deficit of OMR2.240 billion as a result of the improvement in oil prices and the rise in oil revenue.
Public revenue registered an increase by 29.6% reaching OMR11.195 billion at the end of 2021 compared to the approved budget of OMR8.640 billion. The rise is attributed to the improvement of oil prices in international markets, an Oman News Agency report said.
Actual public spending by the end of 2021 went up by 14.1% to reach OMR12.418 billion compared to the estimates of the approved public spending of OMR10.880 billion. This rise is attributed to an increase in investment expenditure by 32.6%, contributions and other expenses by 9% and the current expenditure of government units by 4.2%.
This came during the press conference organised by the Ministry of Finance to highlight the main financial indicators for Oman in 2021 and the financial performance of this year till May 2022.
Oman’s actual budget deficit by the end of 2021 was OMR1.223 billion ($3.18 billion), a 45.4% decline compared to the estimated deficit of OMR2.240 billion as a result of the improvement in oil prices and the rise in oil revenue.
Public revenue registered an increase by 29.6% reaching OMR11.195 billion at the end of 2021 compared to the approved budget of OMR8.640 billion. The rise is attributed to the improvement of oil prices in international markets, an Oman News Agency report said.
Actual public spending by the end of 2021 went up by 14.1% to reach OMR12.418 billion compared to the estimates of the approved public spending of OMR10.880 billion. This rise is attributed to an increase in investment expenditure by 32.6%, contributions and other expenses by 9% and the current expenditure of government units by 4.2%.
This came during the press conference organised by the Ministry of Finance to highlight the main financial indicators for Oman in 2021 and the financial performance of this year till May 2022.
Oil prices slip ahead of G7 talks on new Russian sanctions | Reuters
Oil prices slip ahead of G7 talks on new Russian sanctions | Reuters
Brent crude futures declined 28 cents to $112.84 a barrel by 0932 GMT after rebounding 2.8% on Friday. U.S. West Texas Intermediate crude was at $107.17 a barrel, down 45 cents, or 0.42%, following a 3.2% gain in the previous session.
#Saudi NEOM Project: Keller Gets Key Contract to Help Build the Mega City - Bloomberg
Saudi NEOM Project: Keller Gets Key Contract to Help Build the Mega City - Bloomberg
Out in the Saudi desert a new mega city is rising from the sand, a 170 km metropolis which Keller Group says has the potential to generate contract revenue in the hundreds of millions of pounds in coming years.
NEOM is a new city being built from the ground up, stretching from the Gulf of Aqaba, continuing through the Sharma Valley all the way to the upper valley region, Keller Group said in a statement Monday. The first stage of the project is known as ‘The Line’, an area divided into 135 modules, each containing 8 buildings for a total of over 1,000 structures.
Keller has signed an umbrella Framework Agreement for work on The Line, and is getting ready for the first works order. Keller estimates this work will have a value of around £50m, which it expects to complete within the next 12 months.
The company says it is “well positioned to participate in the future geotechnical work,” which has the potential to generate even greater revenue as the dream of the city becomes realised.
Out in the Saudi desert a new mega city is rising from the sand, a 170 km metropolis which Keller Group says has the potential to generate contract revenue in the hundreds of millions of pounds in coming years.
NEOM is a new city being built from the ground up, stretching from the Gulf of Aqaba, continuing through the Sharma Valley all the way to the upper valley region, Keller Group said in a statement Monday. The first stage of the project is known as ‘The Line’, an area divided into 135 modules, each containing 8 buildings for a total of over 1,000 structures.
Keller has signed an umbrella Framework Agreement for work on The Line, and is getting ready for the first works order. Keller estimates this work will have a value of around £50m, which it expects to complete within the next 12 months.
The company says it is “well positioned to participate in the future geotechnical work,” which has the potential to generate even greater revenue as the dream of the city becomes realised.
#Dubai IPO: Tecom Draws $9.6 Billion in Orders for the Share Sales - Bloomberg
Dubai IPO: Tecom Draws $9.6 Billion in Orders for the Share Sales - Bloomberg
Dubai business park operator Tecom Group drew orders worth $9.63 billion for its initial public offering, the latest Middle East listing to attract strong investor demand amid a boom in regional share sales.
Dubai’s government sold 625 million shares at 2.67 dirhams each, raising $454 million, according to a statement on Monday. The price implies a dividend yield of about 6%, following a regional trend of luring investors with juicy returns, and a market capitalization of 13.4 billion dirhams ($3.65 billion).
The price range had been set at 2.46 dirhams to 2.67 dirhams per share and investors put in enough orders to cover the books within hours on the first day. Despite being covered 21 times, Tecom’s IPO proved less popular than some recent Middle Eastern listings.
Dubai’s main utility, Dubai Electricity & Water Authority, was 37 times oversubscribed, excluding cornerstone and strategic investors, while specialty plastics maker Borouge’s IPO was about 42 times oversubscribed.
Dubai business park operator Tecom Group drew orders worth $9.63 billion for its initial public offering, the latest Middle East listing to attract strong investor demand amid a boom in regional share sales.
Dubai’s government sold 625 million shares at 2.67 dirhams each, raising $454 million, according to a statement on Monday. The price implies a dividend yield of about 6%, following a regional trend of luring investors with juicy returns, and a market capitalization of 13.4 billion dirhams ($3.65 billion).
The price range had been set at 2.46 dirhams to 2.67 dirhams per share and investors put in enough orders to cover the books within hours on the first day. Despite being covered 21 times, Tecom’s IPO proved less popular than some recent Middle Eastern listings.
Dubai’s main utility, Dubai Electricity & Water Authority, was 37 times oversubscribed, excluding cornerstone and strategic investors, while specialty plastics maker Borouge’s IPO was about 42 times oversubscribed.
#Dubai leads major Gulf bourses higher ahead of TECOM IPO | Reuters
Dubai leads major Gulf bourses higher ahead of TECOM IPO | Reuters
Major markets in the Gulf rose on Monday, in line with Asian stock markets on improved market sentiment, with the Dubai index leading the gains ahead of TECOM Group's IPO.
The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia's ability to fund its war in Ukraine. read more
MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS) was up 1.19%.
Dubai's main share index (.DFMGI) advanced 1.1%, boosted by a 2.7% rise in top lender Emirates NBD (ENBD.DU) and 1% increase in blue-chip developer Emaar Properties (EMAR.DU).
Dubai business park operator TECOM Group set final price for its initial public offering at 2.67 Dirhams per share, implying a market capitalisation of AED 13.4 billion ($3.65 billion).
In Qatar, the index (.QSI) traded 0.8% higher, led by a 2.1% surge in petrochemical maker Industries Qatar (IQCD.QA) and a 2.3% jump in Masraf Al Rayan (MARK.QA).
Saudi Arabia's benchmark index (.TASI) rose 0.6%, supported by gains in banking stocks.
Index heavyweight Al Rajhi Bank (1120.SE) and Riyad Bank (1010.SE) jumped 1.6% and 1.7% respectively.
Among other stocks, Saudi Arabian Refineries (2030.SE) surged 5.2% after the company announced issuance of commercial registration for its subsidiary under the name Al-Sado Investment with a capital of 5 million Riyals.
In Abu Dhabi, the equities index (.FTFADGI) rose 0.5%, with the emirates' biggest lender First Abu Dhabi Bank (FAB.AD) jumping 1% and Abu Dhabi Ports (ADPORTS.AD) up 2.2%.
However, Dana Gas (DANA.AD) fell 3.2% after it said that rockets landed within the Khor Mor Block in the Kurdistan Region of Iraq.
The company also said work on the KM 250 expansion project has been temporarily suspended while security enhancements are carried out.
Major markets in the Gulf rose on Monday, in line with Asian stock markets on improved market sentiment, with the Dubai index leading the gains ahead of TECOM Group's IPO.
The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia's ability to fund its war in Ukraine. read more
MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS) was up 1.19%.
Dubai's main share index (.DFMGI) advanced 1.1%, boosted by a 2.7% rise in top lender Emirates NBD (ENBD.DU) and 1% increase in blue-chip developer Emaar Properties (EMAR.DU).
Dubai business park operator TECOM Group set final price for its initial public offering at 2.67 Dirhams per share, implying a market capitalisation of AED 13.4 billion ($3.65 billion).
In Qatar, the index (.QSI) traded 0.8% higher, led by a 2.1% surge in petrochemical maker Industries Qatar (IQCD.QA) and a 2.3% jump in Masraf Al Rayan (MARK.QA).
Saudi Arabia's benchmark index (.TASI) rose 0.6%, supported by gains in banking stocks.
Index heavyweight Al Rajhi Bank (1120.SE) and Riyad Bank (1010.SE) jumped 1.6% and 1.7% respectively.
Among other stocks, Saudi Arabian Refineries (2030.SE) surged 5.2% after the company announced issuance of commercial registration for its subsidiary under the name Al-Sado Investment with a capital of 5 million Riyals.
In Abu Dhabi, the equities index (.FTFADGI) rose 0.5%, with the emirates' biggest lender First Abu Dhabi Bank (FAB.AD) jumping 1% and Abu Dhabi Ports (ADPORTS.AD) up 2.2%.
However, Dana Gas (DANA.AD) fell 3.2% after it said that rockets landed within the Khor Mor Block in the Kurdistan Region of Iraq.
The company also said work on the KM 250 expansion project has been temporarily suspended while security enhancements are carried out.
Oil prices volatile ahead of G7 discussions on Russian exports | Reuters
Oil prices volatile ahead of G7 discussions on Russian exports | Reuters
Oil prices edged down on Monday in a volatile session as investors stood on guard for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations in Germany.
The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia's ability to fund its war in Ukraine, even though G7 leaders were also expected to discuss a revival of the Iran nuclear deal, which might lead to more Iranian oil exports.
Members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies including Russia, known as OPEC+, will likely stick to a plan for accelerated oil output increases in August when they meet on Thursday, sources said. read more
But, for now, the pressing supply worries outweighed growing concerns over the potential for a global recession following a string of downbeat economic data from the U.S., the world's biggest oil consumer.
Brent crude futures edged down 8 cents to $113.04 a barrel by 0632 GMT after rebounding 2.8% on Friday. U.S. West Texas Intermediate crude was at $107.38 a barrel, down 24 cents, or 0.2%, following a 3.2% gain in the previous session.
Oil prices edged down on Monday in a volatile session as investors stood on guard for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations in Germany.
The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia's ability to fund its war in Ukraine, even though G7 leaders were also expected to discuss a revival of the Iran nuclear deal, which might lead to more Iranian oil exports.
Members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies including Russia, known as OPEC+, will likely stick to a plan for accelerated oil output increases in August when they meet on Thursday, sources said. read more
But, for now, the pressing supply worries outweighed growing concerns over the potential for a global recession following a string of downbeat economic data from the U.S., the world's biggest oil consumer.
Brent crude futures edged down 8 cents to $113.04 a barrel by 0632 GMT after rebounding 2.8% on Friday. U.S. West Texas Intermediate crude was at $107.38 a barrel, down 24 cents, or 0.2%, following a 3.2% gain in the previous session.
Sunday 26 June 2022
#SaudiArabia Injects Over $10 Billion in Liquidity-Starved Banks - Bloomberg
Saudi Arabia Injects Over $10 Billion in Liquidity-Starved Banks - Bloomberg
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The Saudi Central Bank placed about 50 billion riyals ($13 billion) as time deposits with commercial lenders, according to people familiar with the matter, seeking to ease the worst liquidity crunch in over a decade.
The intervention started just before the US Federal Reserve’s interest-rate hike this month, and consisted of money provided to banks at a discount to the three-month Saudi Interbank Offered Rate, or Saibor, used as a benchmark to price loans, the people said, asking not to be identified as the information is private.
The central bank, also known as SAMA, didn’t immediately respond to a request for comment.
Liquidity conditions as measured by Saibor are the tightest since late 2008, when the price of crude collapsed below $40 a barrel. The extent of the funding stress among Saudi banks has little precedent outside periods when oil prices were crashing or global crises like the credit crunch of 2008-2009.
This year, by contrast, Saudi Arabia is on track to run its first budget surplus in about a decade after seeing revenues soar on the back of a rally in oil prices above $100 and rising production.
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The Saudi Central Bank placed about 50 billion riyals ($13 billion) as time deposits with commercial lenders, according to people familiar with the matter, seeking to ease the worst liquidity crunch in over a decade.
The intervention started just before the US Federal Reserve’s interest-rate hike this month, and consisted of money provided to banks at a discount to the three-month Saudi Interbank Offered Rate, or Saibor, used as a benchmark to price loans, the people said, asking not to be identified as the information is private.
The central bank, also known as SAMA, didn’t immediately respond to a request for comment.
Liquidity conditions as measured by Saibor are the tightest since late 2008, when the price of crude collapsed below $40 a barrel. The extent of the funding stress among Saudi banks has little precedent outside periods when oil prices were crashing or global crises like the credit crunch of 2008-2009.
This year, by contrast, Saudi Arabia is on track to run its first budget surplus in about a decade after seeing revenues soar on the back of a rally in oil prices above $100 and rising production.
#Saudi bourse to launch single stock futures on July 4 | Reuters
Saudi bourse to launch single stock futures on July 4 | Reuters
The Saudi stock exchange Tadawul plans to launch single stock futures on July 4, which will enable local and international investors to hedge and manage portfolio risks more effectively.
Tadawul said in a statement on Sunday that the underlying stocks for single stock futures have been selected from the largest and most liquid publicly listed companies.
Saudi authorities have introduced a raft of reforms to attract overseas share buyers and issuers as part of efforts to lure foreign capital and diversify the oil-dependent economy.
The Saudi stock exchange Tadawul plans to launch single stock futures on July 4, which will enable local and international investors to hedge and manage portfolio risks more effectively.
Tadawul said in a statement on Sunday that the underlying stocks for single stock futures have been selected from the largest and most liquid publicly listed companies.
Saudi authorities have introduced a raft of reforms to attract overseas share buyers and issuers as part of efforts to lure foreign capital and diversify the oil-dependent economy.
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