Oil rises 2% on U.S. crude drawdown, weaker dollar | Reuters
Oil prices hit two-month highs on Wednesday on tight supply as crude inventories in the United States, the world's top consumer, fell to their lowest since 2018, and as the dollar weakened and worries eased about the Omicron coronavirus variant.
U.S. crude inventories fell 4.6 million barrels last week to 413.3 million barrels, their lowest since October 2018, the Energy Information Administration said. Analysts had forecast in a Reuters poll a 1.9 million-barrel drop. read more
"The crude draw was bigger than expected despite a material drop in refining activity," said Matt Smith, lead oil analyst for the Americas at Kpler, a data firm.
Brent crude futures settled up 95 cents, or 1.1%, at $84.67 a barrel. U.S. West Texas Intermediate (WTI) crude futures were up $1.42, or 1.8%, at $82.64.
Wednesday, 12 January 2022
#Saudi National Bank gets $750 million via debut 'sustainable' sukuk | Reuters
Saudi National Bank gets $750 million via debut 'sustainable' sukuk | Reuters
Saudi National Bank (1180.SE), the kingdom's largest lender that is 50.4% indirectly owned by the government, sold $750 million in debut "sustainable" sukuk on Wednesday after demand topped $3.2 billion, a bank document showed.
The five-year Islamic bonds launched at 85 basis points (bps) over U.S. Treasuries (UST), tightened from initial price guidance of around 110 bps over UST, the document from one of the banks on the deal showed.
Bankers have said the Gulf is expected to issue more debt aimed at environmentally-friendly uses, catalysed by governments pushing plans to meet ballooning demand from investors focused on environmental, social and governance (ESG) considerations. read more
Proceeds from SNB's debt sale will be used for projects eligible under its Sustainable Finance Framework, such as funding renewable energy-generating facilities, including loans to develop such projects, as well as loans related to tree-planting.
HSBC (HSBA.L) was the sole ESG structuring agent on SNB's sukuk sale and was joined on the deal by Citi (C.N), Emirates NBD Capital (ENBD.DU), Goldman Sachs (GS.N), Mizuho Securities (8411.T) and SNB Capital. read more
More supply of ESG-related debt is expected from the Gulf soon. Abu Dhabi solar energy firm Sweihan PV Power Company could begin a sale of amortising green bonds as soon as Thursday, a bank document showed on Wednesday, through which it aims to raise around $728 million. read more
Saudi National Bank (1180.SE), the kingdom's largest lender that is 50.4% indirectly owned by the government, sold $750 million in debut "sustainable" sukuk on Wednesday after demand topped $3.2 billion, a bank document showed.
The five-year Islamic bonds launched at 85 basis points (bps) over U.S. Treasuries (UST), tightened from initial price guidance of around 110 bps over UST, the document from one of the banks on the deal showed.
Bankers have said the Gulf is expected to issue more debt aimed at environmentally-friendly uses, catalysed by governments pushing plans to meet ballooning demand from investors focused on environmental, social and governance (ESG) considerations. read more
Proceeds from SNB's debt sale will be used for projects eligible under its Sustainable Finance Framework, such as funding renewable energy-generating facilities, including loans to develop such projects, as well as loans related to tree-planting.
HSBC (HSBA.L) was the sole ESG structuring agent on SNB's sukuk sale and was joined on the deal by Citi (C.N), Emirates NBD Capital (ENBD.DU), Goldman Sachs (GS.N), Mizuho Securities (8411.T) and SNB Capital. read more
More supply of ESG-related debt is expected from the Gulf soon. Abu Dhabi solar energy firm Sweihan PV Power Company could begin a sale of amortising green bonds as soon as Thursday, a bank document showed on Wednesday, through which it aims to raise around $728 million. read more
Jefferies Gives Mideast Market Another Try, Applies for #Dubai License - Bloomberg
Jefferies Gives Mideast Market Another Try, Applies for Dubai License - Bloomberg
Jefferies has applied for a license in Dubai and is recruiting bankers in the region in an effort to return to the Middle East after a multi-year hiatus, according to people familiar with the matter.
The New York-based investment bank has offered jobs to others in the industry after initiating the application process in the emirate’s financial center last year, said the people, who didn’t want to be named because the information isn’t public.
Spokespeople for Jefferies, the Dubai International Financial Centre freezone and the Dubai Financial Services Authority declined to comment.
Jefferies, which has been recruiting globally in an effort to win more business advising financial institutions, is making its latest attempt to establish a presence in the Gulf.
Jefferies has applied for a license in Dubai and is recruiting bankers in the region in an effort to return to the Middle East after a multi-year hiatus, according to people familiar with the matter.
The New York-based investment bank has offered jobs to others in the industry after initiating the application process in the emirate’s financial center last year, said the people, who didn’t want to be named because the information isn’t public.
Spokespeople for Jefferies, the Dubai International Financial Centre freezone and the Dubai Financial Services Authority declined to comment.
Jefferies, which has been recruiting globally in an effort to win more business advising financial institutions, is making its latest attempt to establish a presence in the Gulf.
#Saudi Aramco Moves Into Russia’s Backyard With Polish Oil Deal - Bloomberg
Saudi Aramco Moves Into Russia’s Backyard With Polish Oil Deal - Bloomberg
Saudi Aramco’s agreement to supply almost half of Poland’s oil will give the world’s biggest crude exporter a stronger foothold in a region that Russian producers have long dominated.
Aramco will buy 30% of a refinery on the Baltic coast, as well as a wholesale fuel unit. It also signed a long-term delivery deal with Polish refiner PKN Orlen SA.
The Saudi-government-owned oil giant will be ramping up oil sales in Russia’s energy backyard just as the two nations, who are joint leaders of the OPEC+ producer alliance, work to wind down nearly two years of production cuts they implemented with the onset of the pandemic.
“Our expanding global network of refineries and chemical joint ventures allows us to reach new markets with our products, and strategically place crude oil volumes across different geographies,” said Mohammed Al Qahtani, Aramco’s senior vice president for downstream.
Saudi Aramco’s agreement to supply almost half of Poland’s oil will give the world’s biggest crude exporter a stronger foothold in a region that Russian producers have long dominated.
Aramco will buy 30% of a refinery on the Baltic coast, as well as a wholesale fuel unit. It also signed a long-term delivery deal with Polish refiner PKN Orlen SA.
The Saudi-government-owned oil giant will be ramping up oil sales in Russia’s energy backyard just as the two nations, who are joint leaders of the OPEC+ producer alliance, work to wind down nearly two years of production cuts they implemented with the onset of the pandemic.
“Our expanding global network of refineries and chemical joint ventures allows us to reach new markets with our products, and strategically place crude oil volumes across different geographies,” said Mohammed Al Qahtani, Aramco’s senior vice president for downstream.
#SaudiArabia to build 8,000 km of railway, enact new investment law | Reuters
Saudi Arabia to build 8,000 km of railway, enact new investment law | Reuters
Saudi Arabia will build 8,000 km (4,971 miles)of railway across country and is also preparing a new investment law to address the needs of investors, its investment minister Khalid al-Falih said on Wednesday.
"New rail that will criss-cross the kingdom and add to the network we already have," Falih told a mining forum in Riyadh.
He also said his ministry was working on a new investment law that would address the needs of both domestic and international investors.
The law would be enacted this year, "hopefully sooner", Falih said, which would add to other regulatory and judicial reforms introduced by the kingdom.
Saudi Arabia will build 8,000 km (4,971 miles)of railway across country and is also preparing a new investment law to address the needs of investors, its investment minister Khalid al-Falih said on Wednesday.
"New rail that will criss-cross the kingdom and add to the network we already have," Falih told a mining forum in Riyadh.
He also said his ministry was working on a new investment law that would address the needs of both domestic and international investors.
The law would be enacted this year, "hopefully sooner", Falih said, which would add to other regulatory and judicial reforms introduced by the kingdom.
#Saudi Wealth Fund Plans to Invest $10 Billion in Stocks in 2022 - Bloomberg
Saudi Wealth Fund Plans to Invest $10 Billion in Stocks in 2022 - Bloomberg
Saudi Arabia’s sovereign wealth fund is planning to plow deeper into public markets this year by investing about $10 billion more into listed stocks, according to people familiar with the matter, as it pursues the goal of more than doubling its assets by 2025.
Chaired by Crown Prince Mohammed bin Salman, the Public Investment Fund is looking to buy global stocks based on a thematic strategy that focuses on areas including e-commerce and renewables, the people said, asking not to be identified as the information is private.
The spending on global stocks is in addition to the fund’s direct investments in international firms and its local deals, the people said. A spokesman for the PIF, as the fund is known, declined to comment.
The Saudi wealth fund has amassed around $500 billion in assets, taking an increasingly prominent role in global markets since receiving a $40 billion transfer from the kingdom’s reserves in early 2020 when the pandemic sent equities into a tailspin.
Saudi Arabia’s sovereign wealth fund is planning to plow deeper into public markets this year by investing about $10 billion more into listed stocks, according to people familiar with the matter, as it pursues the goal of more than doubling its assets by 2025.
Chaired by Crown Prince Mohammed bin Salman, the Public Investment Fund is looking to buy global stocks based on a thematic strategy that focuses on areas including e-commerce and renewables, the people said, asking not to be identified as the information is private.
The spending on global stocks is in addition to the fund’s direct investments in international firms and its local deals, the people said. A spokesman for the PIF, as the fund is known, declined to comment.
The Saudi wealth fund has amassed around $500 billion in assets, taking an increasingly prominent role in global markets since receiving a $40 billion transfer from the kingdom’s reserves in early 2020 when the pandemic sent equities into a tailspin.
Most Gulf bourses in black, tracking oil, global shares | Reuters
Most Gulf bourses in black, tracking oil, global shares | Reuters
Most stock markets in the Gulf ended higher on Wednesday, in line with oil prices and world stocks after U.S. Federal Reserve Chair Jerome Powell sounded less bullish on rates than expected in testimony to Congress.
Powell told a congressional hearing on his confirmation for a second term at the helm of the central bank that the economy could weather the COVID-19 surge and was ready for tighter monetary policy. read more
Saudi Arabia's benchmark index (.TASI) advanced 1%, reaching its highest since mid-2006, boosted by a 0.5% rise in Al Rajhi Bank (1120.SE), while Saudi Arabian Mining Company (Ma'aden) (1211.SE) leapt 2.7%.
Ma'aden is aiming for carbon neutrality by 2050, said Yasir al-Rumayyan, governor of Saudi Arabia's sovereign wealth fund, the Public Investment Fund. read more
Elsewhere, Saudi Aramco (2222.SE) concluded 1% higher, after Poland's largest refiner PKN Orlen (PKN.WA) said it will sell some of Lotos's (LTSP.WA) assets to companies including Aramco. read more
Separately, Saudi Arabia will build 14,000 km (8,700 miles) of railway across country and is also preparing a new investment law to address the needs of investors, its investment minister Khalid al-Falih said on Wednesday. read more
In Abu Dhabi, the index (.FTFADGI) added 0.5%, ending seven sessions of losses, with telecoms firm Etisalat (ETISALAT.AD).
Dubai's main share index (.DFMGI) reversed early losses to close flat.
Crude prices, a key catalyst for the Gulf's financial markets, hit two-month highs on tight supply and easing concerns about the potential hit to demand from the Omicron coronavirus variant.
The Qatari benchmark (.QSI) gained 0.9%, buoyed by a 2.5% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA) after it reported a 10% rise in annual net profit driven by loan growth. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 0.5% higher, with its top lender Commercial International Bank (COMI.CA) rising 1.5%.
Most stock markets in the Gulf ended higher on Wednesday, in line with oil prices and world stocks after U.S. Federal Reserve Chair Jerome Powell sounded less bullish on rates than expected in testimony to Congress.
Powell told a congressional hearing on his confirmation for a second term at the helm of the central bank that the economy could weather the COVID-19 surge and was ready for tighter monetary policy. read more
Saudi Arabia's benchmark index (.TASI) advanced 1%, reaching its highest since mid-2006, boosted by a 0.5% rise in Al Rajhi Bank (1120.SE), while Saudi Arabian Mining Company (Ma'aden) (1211.SE) leapt 2.7%.
Ma'aden is aiming for carbon neutrality by 2050, said Yasir al-Rumayyan, governor of Saudi Arabia's sovereign wealth fund, the Public Investment Fund. read more
Elsewhere, Saudi Aramco (2222.SE) concluded 1% higher, after Poland's largest refiner PKN Orlen (PKN.WA) said it will sell some of Lotos's (LTSP.WA) assets to companies including Aramco. read more
Separately, Saudi Arabia will build 14,000 km (8,700 miles) of railway across country and is also preparing a new investment law to address the needs of investors, its investment minister Khalid al-Falih said on Wednesday. read more
In Abu Dhabi, the index (.FTFADGI) added 0.5%, ending seven sessions of losses, with telecoms firm Etisalat (ETISALAT.AD).
Dubai's main share index (.DFMGI) reversed early losses to close flat.
Crude prices, a key catalyst for the Gulf's financial markets, hit two-month highs on tight supply and easing concerns about the potential hit to demand from the Omicron coronavirus variant.
The Qatari benchmark (.QSI) gained 0.9%, buoyed by a 2.5% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA) after it reported a 10% rise in annual net profit driven by loan growth. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 0.5% higher, with its top lender Commercial International Bank (COMI.CA) rising 1.5%.
#UAE should have multiple airlines to promote competition, says Sheikh Ahmed | Aviation – Gulf News
UAE should have multiple airlines to promote competition, says Sheikh Ahmed | Aviation – Gulf News
UAE should have multiple airlines operating from the country to promote healthy competition and cater to the needs of a growing population, said Sheikh Ahmed Al Maktoum, Chairman and CEO of Emirates airline.
Responding to a CNN query about a potential merger with Abu Dhabi’s Etihad Airways, Sheikh Ahmed pointed out that several countries around the world had more than one airline. “Competition is healthy and it’s good.”
UAE’s rapid growth in terms of population and its prominence as a regional business hub makes it important to have more than just one major airline. “We are not standing in one place – the population (and) the businesses are growing,” said Sheikh Ahmed. “Even during a pandemic, look what we have achieved – if we are talking about Emirates, we moved vaccine, cargo, and perishable goods, and that has been done because we have an airline that is strong and resilient.”
Emirates, which has been gradually rebuilding its network since Dubai opened up in July 2020, reported an 81 per cent surge in revenue for the first half of 2021. The airline cut its losses to Dh5.7 billion from Dh14.1 billion during the same period in 2020.
“We have been in the pandemic for two years and things are looking much better,” said Sheikh Ahmed. “First of all, we started with vaccination most of the population – over 22 million people.”
The airline chief said that over 90 per cent of Emirates’ staff had been vaccinated.
UAE should have multiple airlines operating from the country to promote healthy competition and cater to the needs of a growing population, said Sheikh Ahmed Al Maktoum, Chairman and CEO of Emirates airline.
Responding to a CNN query about a potential merger with Abu Dhabi’s Etihad Airways, Sheikh Ahmed pointed out that several countries around the world had more than one airline. “Competition is healthy and it’s good.”
UAE’s rapid growth in terms of population and its prominence as a regional business hub makes it important to have more than just one major airline. “We are not standing in one place – the population (and) the businesses are growing,” said Sheikh Ahmed. “Even during a pandemic, look what we have achieved – if we are talking about Emirates, we moved vaccine, cargo, and perishable goods, and that has been done because we have an airline that is strong and resilient.”
Emirates, which has been gradually rebuilding its network since Dubai opened up in July 2020, reported an 81 per cent surge in revenue for the first half of 2021. The airline cut its losses to Dh5.7 billion from Dh14.1 billion during the same period in 2020.
“We have been in the pandemic for two years and things are looking much better,” said Sheikh Ahmed. “First of all, we started with vaccination most of the population – over 22 million people.”
The airline chief said that over 90 per cent of Emirates’ staff had been vaccinated.
France says #UAE to join French-#Saudi fund to support Lebanon | Reuters
France says UAE to join French-Saudi fund to support Lebanon | Reuters
France's foreign minister said on Tuesday the United Arab Emirates would join a Saudi-French fund that aimed to provide support to the Lebanese people.
Riyadh and Paris agreed in early December to establish a common humanitarian mechanism to alleviate the suffering of the Lebanese as a first step to Saudi re-engaging with Lebanon after a diplomatic row between Beirut and the Gulf states. read more
"The visit by President (Emmanuel) Macron enabled the Gulf (Arab countries) to renew ties, which saw (the creation of) a joint Franco-Saudi fund to support the Lebanese, which will be helped tomorrow or the day after with a contribution from the United Arab Emirates," Jean-Yves Le Drian told a parliamentary hearing.
Le Drian gave no details on how the fund would work or how much was being pledged.
France's foreign minister said on Tuesday the United Arab Emirates would join a Saudi-French fund that aimed to provide support to the Lebanese people.
Riyadh and Paris agreed in early December to establish a common humanitarian mechanism to alleviate the suffering of the Lebanese as a first step to Saudi re-engaging with Lebanon after a diplomatic row between Beirut and the Gulf states. read more
"The visit by President (Emmanuel) Macron enabled the Gulf (Arab countries) to renew ties, which saw (the creation of) a joint Franco-Saudi fund to support the Lebanese, which will be helped tomorrow or the day after with a contribution from the United Arab Emirates," Jean-Yves Le Drian told a parliamentary hearing.
Le Drian gave no details on how the fund would work or how much was being pledged.
#Saudi National Bank debut 'sustainable' sukuk top $1.9 bln in orders | Reuters
Saudi National Bank debut 'sustainable' sukuk top $1.9 bln in orders | Reuters
Saudi National Bank (1180.SE), the kingdom's largest lender that is 50.4% indirectly owned by the government, has tightened price guidance for its debut "sustainable" sukuk after orders topped $1.9 billion, a bank document showed on Wednesday.
The U.S. dollar-denominated five-year Islamic bonds will price between 85 and 95 basis points (bps) over U.S. Treasuries, tightened from initial price guidance of around 110 bps over UST, the document from one of the banks on the deal showed.
The debt issue, proceeds from which will be used for environmental or social-focused purposes, will be of benchmark size, which generally means at least $500 million, and is expected to launch later on Wednesday. read more
Saudi National Bank (1180.SE), the kingdom's largest lender that is 50.4% indirectly owned by the government, has tightened price guidance for its debut "sustainable" sukuk after orders topped $1.9 billion, a bank document showed on Wednesday.
The U.S. dollar-denominated five-year Islamic bonds will price between 85 and 95 basis points (bps) over U.S. Treasuries, tightened from initial price guidance of around 110 bps over UST, the document from one of the banks on the deal showed.
The debt issue, proceeds from which will be used for environmental or social-focused purposes, will be of benchmark size, which generally means at least $500 million, and is expected to launch later on Wednesday. read more
Gas Prices to Stay High for Next Two Years, Centrica CEO Says - Bloomberg
Gas Prices to Stay High for Next Two Years, Centrica CEO Says - Bloomberg
Natural gas prices are likely to remain high for the next two years, with very few options to boost supplies quickly, according to the chief executive of Britain’s biggest energy supplier.
The U.K. market is exposed to global supply and demand forces, and having more domestic supply wouldn’t have brought prices down significantly, said Chris O’Shea, CEO of Centrica Plc, owner of British Gas. Wholesale prices tripled last year, and millions of British consumers now face a more than 50% increase to energy bills from April.
“There’s no reason to think that energy prices will come down any time soon,” he told BBC radio on Wednesday. “The market suggests that high gas prices will be here for the next 18 months to 2 years.”
Britain has become more dependent on gas imports from places like Norway, Europe and as far afield as the U.S. and Qatar. Domestic production has been in decline for years and in 2017, Centrica opted to shut its aging Rough site, the U.K.’s gas storage biggest storage facility -- a decision that has been questioned in the current crisis and a criticism O’Shea rejects.
Natural gas prices are likely to remain high for the next two years, with very few options to boost supplies quickly, according to the chief executive of Britain’s biggest energy supplier.
The U.K. market is exposed to global supply and demand forces, and having more domestic supply wouldn’t have brought prices down significantly, said Chris O’Shea, CEO of Centrica Plc, owner of British Gas. Wholesale prices tripled last year, and millions of British consumers now face a more than 50% increase to energy bills from April.
“There’s no reason to think that energy prices will come down any time soon,” he told BBC radio on Wednesday. “The market suggests that high gas prices will be here for the next 18 months to 2 years.”
Britain has become more dependent on gas imports from places like Norway, Europe and as far afield as the U.S. and Qatar. Domestic production has been in decline for years and in 2017, Centrica opted to shut its aging Rough site, the U.K.’s gas storage biggest storage facility -- a decision that has been questioned in the current crisis and a criticism O’Shea rejects.
#Qatar's economy grows by 2.6% in Q3 2021, lifted by non-hydrocarbon sector | Reuters
Qatar's economy grows by 2.6% in Q3 2021, lifted by non-hydrocarbon sector | Reuters
Qatar's economy grew 2.6% year-on-year in the third quarter of 2021, according to official estimates, driven mainly by the non-hydrocarbon sector.
On a quarterly basis, gross domestic product (GDP), based on constant prices grew by 4%, Qatar's statistical authority said Wednesday.
Mining and quarrying GDP decreased by 0.7% year-on-year in the third quarter, while non-mining and quarrying activities grew by 4.7% in the third quarter.
Accommodation and food service activities saw the biggest annual jump, growing 29.8%, reflecting the continued recovery of a sector hit badly by coronavirus-related restrictions in 2020.
Transportation and storage activities followed close behind, with a 29.7% growth, while manufacturing grew 6.1%.
Qatar, a major producer of liquified natural gas, posted a surplus of $247 million in the third quarter, the finance ministry said in November, which was lifted by higher energy prices.
Qatar's economy grew 2.6% year-on-year in the third quarter of 2021, according to official estimates, driven mainly by the non-hydrocarbon sector.
On a quarterly basis, gross domestic product (GDP), based on constant prices grew by 4%, Qatar's statistical authority said Wednesday.
Mining and quarrying GDP decreased by 0.7% year-on-year in the third quarter, while non-mining and quarrying activities grew by 4.7% in the third quarter.
Accommodation and food service activities saw the biggest annual jump, growing 29.8%, reflecting the continued recovery of a sector hit badly by coronavirus-related restrictions in 2020.
Transportation and storage activities followed close behind, with a 29.7% growth, while manufacturing grew 6.1%.
Qatar, a major producer of liquified natural gas, posted a surplus of $247 million in the third quarter, the finance ministry said in November, which was lifted by higher energy prices.
Oil prices shrug off Omicron slump, soar to 2-month highs | Reuters
Oil prices shrug off Omicron slump, soar to 2-month highs | Reuters
Oil prices hit two-month highs on Wednesday on tight supply and easing concerns about the potential hit to demand from the Omicron coronavirus variant.
Federal Reserve Chairman Jerome Powell said on Tuesday the economy of the United States, the world's biggest oil consumer, should weather the current COVID-19 surge with only "short-lived" impacts and was ready for the start of tighter monetary policy. read more
Brent crude futures were up 42 cents, or 0.5%, at $84.14 a barrel at 1211 GMT.
U.S. West Texas Intermediate (WTI) crude futures were up 60 cents, or 0.7%, to $81.82 a barrel. Both contracts are set for their sixth session of gains out of eight.
Oil prices hit two-month highs on Wednesday on tight supply and easing concerns about the potential hit to demand from the Omicron coronavirus variant.
Federal Reserve Chairman Jerome Powell said on Tuesday the economy of the United States, the world's biggest oil consumer, should weather the current COVID-19 surge with only "short-lived" impacts and was ready for the start of tighter monetary policy. read more
Brent crude futures were up 42 cents, or 0.5%, at $84.14 a barrel at 1211 GMT.
U.S. West Texas Intermediate (WTI) crude futures were up 60 cents, or 0.7%, to $81.82 a barrel. Both contracts are set for their sixth session of gains out of eight.
Goldman's Soussa: #Dubai Growth Lifted by Tourism - Bloomberg video
Goldman's Soussa: Dubai Growth Lifted by Tourism - Bloomberg
Farouk Soussa, VP, MENA Economics Research at Goldman Sachs discusses Dubai's PMI data as the Gulf Emirate has seen business growth boosted by tourism. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Lucid (LCID) to Build #Saudi Electric Car Factory by 2026, Chairman Says - Bloomberg
Lucid (LCID) to Build Saudi Electric Car Factory by 2026, Chairman Says - Bloomberg
Lucid Group Inc. intends to build an electric-vehicle factory in Saudi Arabia by 2025 or 2026 and is negotiating details with ministries in the kingdom.
“Now that we are successfully producing and selling cars in the U.S., our attention is turning to this factory here,” Lucid Chairman Andrew Liveris told Bloomberg Television on Wednesday at a mining conference in Riyadh. Specifics being worked out include ownership percentages for Lucid and partners on the project.
The maker of the $169,000 Air sedan has been in talks with Saudi Arabia’s sovereign wealth fund to build an EV plant potentially near the Red Sea city of Jeddah, people familiar with the matter said earlier this year. The $360 billion Public Investment Fund, which is already a shareholder in Lucid, will provide much of the money for the site at the King Abdullah Economic City, the people said, asking not be named because the discussions are private. The PIF and Lucid have also considered a possible site in Neom, a new city being developed in the northwest of Saudi Arabia.
Liveris, the former chairman and chief executive officer of Dow Chemical Co., said he’s taken delivery of one of Lucid’s cars in Florida. The Newark, California-based company’s goal for 2021 was to hand over 577 vehicles to customers -- 520 limited-release units of its debut Dream Edition, and the rest a lower-spec Grand Touring version.
Lucid Group Inc. intends to build an electric-vehicle factory in Saudi Arabia by 2025 or 2026 and is negotiating details with ministries in the kingdom.
“Now that we are successfully producing and selling cars in the U.S., our attention is turning to this factory here,” Lucid Chairman Andrew Liveris told Bloomberg Television on Wednesday at a mining conference in Riyadh. Specifics being worked out include ownership percentages for Lucid and partners on the project.
The maker of the $169,000 Air sedan has been in talks with Saudi Arabia’s sovereign wealth fund to build an EV plant potentially near the Red Sea city of Jeddah, people familiar with the matter said earlier this year. The $360 billion Public Investment Fund, which is already a shareholder in Lucid, will provide much of the money for the site at the King Abdullah Economic City, the people said, asking not be named because the discussions are private. The PIF and Lucid have also considered a possible site in Neom, a new city being developed in the northwest of Saudi Arabia.
Liveris, the former chairman and chief executive officer of Dow Chemical Co., said he’s taken delivery of one of Lucid’s cars in Florida. The Newark, California-based company’s goal for 2021 was to hand over 577 vehicles to customers -- 520 limited-release units of its debut Dream Edition, and the rest a lower-spec Grand Touring version.
Oil prices shrug off Omicron slump, soar to 2-month highs | Reuters
Oil prices shrug off Omicron slump, soar to 2-month highs | Reuters
Oil prices hit two-month highs on Wednesday on tight supply and easing concerns about the potential hit to demand from the Omicron coronavirus variant.
Federal Reserve Chairman Jerome Powell said on Tuesday the economy of the United States, the world's biggest oil consumer, should weather the current COVID-19 surge with only "short-lived" impacts and was ready for the start of tighter monetary policy. read more
Brent crude futures were up 34 cents, or 0.4%, at $84.06 a barrel at 0918 GMT.
U.S. West Texas Intermediate (WTI) crude futures were up 49 cents, or 0.6%, to $81.71 a barrel. Both contracts are set for their sixth session of gains out of eight.
Oil prices hit two-month highs on Wednesday on tight supply and easing concerns about the potential hit to demand from the Omicron coronavirus variant.
Federal Reserve Chairman Jerome Powell said on Tuesday the economy of the United States, the world's biggest oil consumer, should weather the current COVID-19 surge with only "short-lived" impacts and was ready for the start of tighter monetary policy. read more
Brent crude futures were up 34 cents, or 0.4%, at $84.06 a barrel at 0918 GMT.
U.S. West Texas Intermediate (WTI) crude futures were up 49 cents, or 0.6%, to $81.71 a barrel. Both contracts are set for their sixth session of gains out of eight.
MENA economies post strong recovery in H2 2021, to accelerate in 2022: World Bank | ZAWYA MENA Edition
MENA economies post strong recovery in H2 2021, to accelerate in 2022: World Bank | ZAWYA MENA Edition
Economic growth in the Middle East North Africa (MENA) strongly recovered in the second half of 2021 and is poised to step up in 2022, as disruptions caused by the COVID-19 pandemic and oil production cuts wane, the World Bank said.
Output in some economies is now back to pre-pandemic levels and the overall growth in the region will accelerate to 4.4 percent this year, higher than the estimated 3.1 percent in 2021, before moderating to 3.4 percent in 2023, the bank said in its Global Economic Prospects report.
The regional forecast is also in contrast to World Bank’s estimations for global growth, which is expected to decelerate sharply from 5.5 percent in 2021 to 4.1 percent in 2022 amid fresh threats from COVID-19 variants, and as pent-up demand and monetary support dissipate.
However, the World Bank, cautioned that the health outbreak remains a “major risk” for MENA economies, given that only less than two-fifths of the region’s population are fully vaccinated and the rapid spread of Omicron could still impact global demand and lead to lower oil prices.
Economic growth in the Middle East North Africa (MENA) strongly recovered in the second half of 2021 and is poised to step up in 2022, as disruptions caused by the COVID-19 pandemic and oil production cuts wane, the World Bank said.
Output in some economies is now back to pre-pandemic levels and the overall growth in the region will accelerate to 4.4 percent this year, higher than the estimated 3.1 percent in 2021, before moderating to 3.4 percent in 2023, the bank said in its Global Economic Prospects report.
The regional forecast is also in contrast to World Bank’s estimations for global growth, which is expected to decelerate sharply from 5.5 percent in 2021 to 4.1 percent in 2022 amid fresh threats from COVID-19 variants, and as pent-up demand and monetary support dissipate.
However, the World Bank, cautioned that the health outbreak remains a “major risk” for MENA economies, given that only less than two-fifths of the region’s population are fully vaccinated and the rapid spread of Omicron could still impact global demand and lead to lower oil prices.
#Saudi to introduce minerals reserve auction process, minister says | Reuters
Saudi to introduce minerals reserve auction process, minister says | Reuters
Saudi Arabia plans to introduce a system for auctions for new reserves of minerals as part of its new mining law, the industry minister said on Wednesday.
Most Gulf bourses gain in early trade | Reuters
Most Gulf bourses gain in early trade | Reuters
Most stock markets in the Gulf rose in early trade on Wednesday after U.S. Federal Reserve Chair Jerome Powell sounded less hawkish than expected in his testimony to Congress.
Saudi Arabia's benchmark index (.TASI) gained 0.4%, led by a 2.1% rise in Saudi Arabian Mining Company (Ma'aden) (1211.SE).
Ma'aden is aiming for carbon neutrality by 2050, said Yasir al-Rumayyan, governor of Saudi Arabia's sovereign wealth fund, the Public Investment Fund. read more
Crude prices, a key catalyst for the Gulf's financial markets, steadied after rising in the previous session on expectations that fuel demand will continue to strengthen as the U.S. central bank is likely to raise interest rates more slowly than expected.
Among other gainers, Saudi Aramco (2222.SE) added 0.3%.
The oil behemoth has notified at least five Asian buyers that it will supply full contractual volumes of crude oil in February, same as January, Reuters reported on Tuesday, citing sources with knowledge of the matter. read more
The Qatari index (.QSI) increased 0.5%, with Vodafone Qatar (VFQS.QA) advancing 1.8%, while Qatar National Bank (QNBK.QA) climbed 1.4%, after lender reported a 10% rise in annual net profit driven by loan growth. read more
Powell told a congressional hearing on his confirmation for a second term at the helm of the central bank that the economy could weather the COVID-19 surge and was ready for tighter monetary policy. read more
In Abu Dhabi, the index (.ADI) eased 0.3%, on course to extend losses for a seventh session. It was hit by a 0.9% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD).
Dana Gas (DANA.AD) rose 1% after the energy firm and its partner Crescent Petroleum achieved 50% gas production growth in Kurdistan Region of Iraq over past 3 years.
Dubai's main share index (.DFMGI) slipped 0.2%, weighed down by a 1.1% gain in Emirates NBD Bank (ENBD.DU).
Most stock markets in the Gulf rose in early trade on Wednesday after U.S. Federal Reserve Chair Jerome Powell sounded less hawkish than expected in his testimony to Congress.
Saudi Arabia's benchmark index (.TASI) gained 0.4%, led by a 2.1% rise in Saudi Arabian Mining Company (Ma'aden) (1211.SE).
Ma'aden is aiming for carbon neutrality by 2050, said Yasir al-Rumayyan, governor of Saudi Arabia's sovereign wealth fund, the Public Investment Fund. read more
Crude prices, a key catalyst for the Gulf's financial markets, steadied after rising in the previous session on expectations that fuel demand will continue to strengthen as the U.S. central bank is likely to raise interest rates more slowly than expected.
Among other gainers, Saudi Aramco (2222.SE) added 0.3%.
The oil behemoth has notified at least five Asian buyers that it will supply full contractual volumes of crude oil in February, same as January, Reuters reported on Tuesday, citing sources with knowledge of the matter. read more
The Qatari index (.QSI) increased 0.5%, with Vodafone Qatar (VFQS.QA) advancing 1.8%, while Qatar National Bank (QNBK.QA) climbed 1.4%, after lender reported a 10% rise in annual net profit driven by loan growth. read more
Powell told a congressional hearing on his confirmation for a second term at the helm of the central bank that the economy could weather the COVID-19 surge and was ready for tighter monetary policy. read more
In Abu Dhabi, the index (.ADI) eased 0.3%, on course to extend losses for a seventh session. It was hit by a 0.9% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD).
Dana Gas (DANA.AD) rose 1% after the energy firm and its partner Crescent Petroleum achieved 50% gas production growth in Kurdistan Region of Iraq over past 3 years.
Dubai's main share index (.DFMGI) slipped 0.2%, weighed down by a 1.1% gain in Emirates NBD Bank (ENBD.DU).
#AbuDhabi wealth fund bucks the trend to bet on #Turkey | Financial Times
Abu Dhabi wealth fund bucks the trend to bet on Turkey | Financial Times
The lira was in freefall and warnings of a deepening crisis in Turkey were growing when ADQ, an Abu Dhabi state investment vehicle, did what few other foreign investors have been willing to do: it pledged to pump billions into local businesses.
Now the fund is on the hunt for investments, from financial institutions to logistics and food, despite the economic turmoil. Mohammed Hassan al-Suwaidi, chief executive of ADQ, told the Financial Times that the lira’s weakness could provide opportunities, saying it was a “great time” to buy if you take “a long-term view”.
He added that the fund was already in “discussions with the Turkish sovereign fund [TWF] on a couple of opportunities,” including companies within TWF’s portfolio.
“They have some stranded assets that they can either bring you into, or you could develop a platform from, so we are looking at a few things with them,” Suwaidi said.
Oil Holds Biggest Gain This Year After Powell Sparks Broad Rally - Bloomberg
Oil Holds Biggest Gain This Year After Powell Sparks Broad Rally - Bloomberg
Oil steadied after its biggest one-day gain this year as investors embraced risk assets and industry estimates showed another draw in U.S. stockpiles.
West Texas Intermediate traded above $81 a barrel after rallying 3.8% on Tuesday. The industry-funded American Petroleum Institute reported that U.S. crude inventories sank by about 1 million barrels last week, according to people familiar with the figures. The snapshot also showed a drop in crude at the key storage hub in Cushing, although gasoline holdings jumped.
Crude’s rally on Tuesday to the highest close since Nov. 11 came alongside gains in raw materials and equities after Federal Reserve Chair Jerome Powell sought to reassure investors the central bank can rein in inflation without damaging the U.S. economy. If he succeeds, that would safeguard oil demand.
Oil has roared higher in the opening days of the new year as concerns about the pandemic, especially the impact of the omicron variant, have eased off. At the same time, stockpiles have extended declines, suggesting a tighter market, and several OPEC+ producers have seen interruptions to supply.
“There are a lot of supply factors and omicron fears are ebbing,” said Howie Lee, an economist at Oversea-Chinese Banking Corp. in Singapore. “The market will remain tight for a while. Wherever the market is right now has just started to reflect oil’s fair value and there is still more to run.”
Oil steadied after its biggest one-day gain this year as investors embraced risk assets and industry estimates showed another draw in U.S. stockpiles.
West Texas Intermediate traded above $81 a barrel after rallying 3.8% on Tuesday. The industry-funded American Petroleum Institute reported that U.S. crude inventories sank by about 1 million barrels last week, according to people familiar with the figures. The snapshot also showed a drop in crude at the key storage hub in Cushing, although gasoline holdings jumped.
Crude’s rally on Tuesday to the highest close since Nov. 11 came alongside gains in raw materials and equities after Federal Reserve Chair Jerome Powell sought to reassure investors the central bank can rein in inflation without damaging the U.S. economy. If he succeeds, that would safeguard oil demand.
Oil has roared higher in the opening days of the new year as concerns about the pandemic, especially the impact of the omicron variant, have eased off. At the same time, stockpiles have extended declines, suggesting a tighter market, and several OPEC+ producers have seen interruptions to supply.
“There are a lot of supply factors and omicron fears are ebbing,” said Howie Lee, an economist at Oversea-Chinese Banking Corp. in Singapore. “The market will remain tight for a while. Wherever the market is right now has just started to reflect oil’s fair value and there is still more to run.”
#Saudi Arabian Retailer United Electronics Eyes Egypt Expansion - Bloomberg
Saudi Arabian Retailer United Electronics Eyes Egypt Expansion - Bloomberg
Saudi retailer United Electronics is looking to grow its market share in Egypt to 10% over the next five years, according to its Chief Executive Officer.
“We have already finished the visibility study, with a very detailed milestone for the next five years,” CEO Mohammed Galal Fahmi said in an interview with Bloomberg TV. The firm expects its legal entity to be established by the end of the first quarter.
Extra, as the consumer electronics retailer is known, reported a 396.7 million riyal ($106 million) profit for 2021, meeting the average analyst estimate. “We are looking at double-digit growth in profitability in the next three years,” Fahmi said. “We are optimistic.”
The CEO said price increases and supply chain constraints should be temporary issues, with the market being supported in the second half of the year. Mobile phones and tablets are among the hardest products to obtain nowadays amid the backlog, he said.
Saudi retailer United Electronics is looking to grow its market share in Egypt to 10% over the next five years, according to its Chief Executive Officer.
“We have already finished the visibility study, with a very detailed milestone for the next five years,” CEO Mohammed Galal Fahmi said in an interview with Bloomberg TV. The firm expects its legal entity to be established by the end of the first quarter.
Extra, as the consumer electronics retailer is known, reported a 396.7 million riyal ($106 million) profit for 2021, meeting the average analyst estimate. “We are looking at double-digit growth in profitability in the next three years,” Fahmi said. “We are optimistic.”
The CEO said price increases and supply chain constraints should be temporary issues, with the market being supported in the second half of the year. Mobile phones and tablets are among the hardest products to obtain nowadays amid the backlog, he said.
Oil prices hold firm amid hopes for economic growth | Reuters
Oil prices hold firm amid hopes for economic growth | Reuters
Oil prices steadied on Wednesday, following steep gains in the previous session after the U.S. Federal Reserve chief signalled the central bank may raise rates more slowly than expected, which should help support oil demand.
Brent and U.S. crude oil are trading at their highest levels since the highly contagious COVID-19 Omicron emerged in late November, as it has not hit fuel demand the way previous variants did.
U.S. West Texas Intermediate (WTI) crude futures rose 20 cents, or 0.3%, to $81.42 a barrel at 0555 GMT, adding to a 3.8% jump in the previous session.
Brent crude futures were up 6 cents, or 0.07%, at $83.78 a barrel, after jumping 3.5% in the previous session.
Oil prices steadied on Wednesday, following steep gains in the previous session after the U.S. Federal Reserve chief signalled the central bank may raise rates more slowly than expected, which should help support oil demand.
Brent and U.S. crude oil are trading at their highest levels since the highly contagious COVID-19 Omicron emerged in late November, as it has not hit fuel demand the way previous variants did.
U.S. West Texas Intermediate (WTI) crude futures rose 20 cents, or 0.3%, to $81.42 a barrel at 0555 GMT, adding to a 3.8% jump in the previous session.
Brent crude futures were up 6 cents, or 0.07%, at $83.78 a barrel, after jumping 3.5% in the previous session.
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