#SaudiArabia’s Public Investment Fund assigned debut credit ratings | Financial Times

Saudi Arabia’s Public Investment Fund assigned debut credit ratings | Financial Times

Saudi Arabia’s Public Investment Fund has been assigned debut ratings by agencies Fitch and Moody’s as the government-owned $500bn sovereign fund prepares to extend credit facilities and raise public debt to fund its massive spending and investment commitments at home and abroad. 

Fitch Ratings issued PIF with a long-term default rating of A, with a stable outlook. Moody’s gave an A1 long-term rating baseline credit assessment. Both agencies issued their ratings based on the creditworthiness of the government of Saudi Arabia, which owns PIF and is very likely to support the sovereign wealth fund, if needed. 

The ratings are a precursor to the fund potentially launching “green bonds” and extending $15bn in bank facilities as the PIF seeks to raise more debt, alongside tapping the kingdom’s oil revenues, to fund Crown Prince Mohammed bin Salman’s ambitious domestic development plans that aim to plan for a future beyond oil. 

“PIF has evolved into becoming one of the kingdom’s main vehicles to grow the kingdom’s non-oil economy and reduce its reliance on the hydrocarbon sector,” Moody’s said. PIF had been mandated to expand its assets, unlock new sectors for the country, bring in cutting edge technology and build partnerships at home and abroad, it added.

Oil settles down off 7-yr highs; U.S.-Iran talks eyed | Reuters

Oil settles down off 7-yr highs; U.S.-Iran talks eyed | Reuters

Oil prices settled lower on Monday on faint signs of progress in nuclear talks between the United States and Iran, which could lead to the removal of U.S. sanctions on Iranian oil sales.

Last week, crude prices rallied for the seventh week on ongoing worries about supply disruptions fueled by frigid U.S. weather and ongoing political turmoil among major world producers.

If U.S. sanctions are lifted, Iran could quickly export millions of barrels of crude and help to drive down red-hot oil prices.

Brent crude settled down 58 cents, or 0.6%, at $92.69. It session high of $94 was the highest since October 2014.

U.S. West Texas Intermediate crude fell 99 cents, or 1.3%, to settle at $91.32 after touching $92.73.

ADIB's net income jumps 51% on lower impairments amid economic recovery

ADIB's net income jumps 51% on lower impairments amid economic recovery

Abu Dhabi Islamic Bank, the biggest sharia-compliant lender in the emirate, reported a 51 per cent surge in the fourth-quarter net income as provisions for loan losses fell and revenue rose amid the continued economic recovery.

Net profit for the three-month period to the end of December climbed to Dh728 million ($198.4m) from a year earlier, ADIB said in statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.

Quarterly revenue rose 3 per cent to Dh1.47 billion, from Dh1.43bn reported for the last quarter of 2020. Provisions for bad loans dropped 44 per cent to Dh203m.

“All indicators are positive,” Mohamed Abdel Bary, ADIB group chief financial officer, told The National. “Everything is pointing in the right direction and the economy is opening up, which is good news for us.”

EXCLUSIVE #AbuDhabi Ports secures investment from conglomerate IHC ahead of listing | Reuters

EXCLUSIVE Abu Dhabi Ports secures investment from conglomerate IHC ahead of listing | Reuters

Abu Dhabi conglomerate IHC has taken a 7.4% stake in Abu Dhabi Ports Group ahead of the latter's listing on the stock market on Tuesday, an IHC spokesman told Reuters.

IHC, through its subsidiary company Al Seer Marine, bought 375 million shares in AD Ports worth 1.2 billion dirhams ($326.74 million) in total, the spokesman said. That would value AD Ports at 16.3 billion dirhams, according to Reuters calculations.

AD Ports, which is owned by sovereign wealth fund ADQ, said earlier on Monday that it had raised 4 billion dirhams in proceeds from its primary issuance and would list its shares on the Abu Dhabi Securities Exchange (ADX) on Tuesday. read more

AD Ports, which operates ports, logistics and industrial zones, said the funds raised would be used to grow organically and via acquisitions, as the company plans to expand both locally and internationally.

#UAE Corporate Tax Will Help Support Smaller Emirates, S&P Says - Bloomberg

UAE Corporate Tax Will Help Support Smaller Emirates, S&P Says - Bloomberg

A new tax on corporate profits will help the United Arab Emirates diversify away from oil and support the smaller sheikhdoms that make up the Gulf nation, S&P Global Ratings said.

If the federal government uses tax receipts for UAE-wide capital investment, that would indirectly support economic activity in individual emirates, S&P said in a report on Monday. “The broadening of the government’s revenue base should support smaller emirates’ economies,” said Trevor Cullinan, credit analyst at S&P, “however, the full impact is unclear because it is not yet known how the tax will be distributed.”

The tax could pressure banks, corporates, and insurers, “but this will be manageable and not significantly affect their creditworthiness,” he said.

The UAE plans to levy a 9% corporate tax from June 2023. Dubai Islamic Bank, one of the city’s biggest lenders, expects the country to remain competitive after the tax comes into effect.

Last week, Fitch Ratings said the tax could have “uneven credit implications” on companies. The company predicted increased attraction in the UAE’s freezones, areas that operate under special rules and will remain exempt from the new tax.

Dubai, the UAE’s business capital and one of its seven sheikhdoms, is home to the country’s largest number of free zones, which include the airport and an international financial center.

Oil Drops After Scorching Rally as Markets Eye Iran Nuclear Deal - Bloomberg

Oil Drops After Scorching Rally as Markets Eye Iran Nuclear Deal - Bloomberg

Oil dropped to trade near $90 a barrel, taking a breather from a rally that’s propelled crude to its highest since 2014.

Futures in New York fell as much as 1.7% on Monday after seven weekly gains in which oil’s gained 22%. Diplomats are set to return to Vienna Tuesday to resume Iran nuclear negotiations, which are viewed as a path to restore the nation’s sanctioned oil to global markets. On Friday, the U.S. signed several waivers related to Iran’s civilian nuclear activities to ease diplomatic efforts.

The potential for eventual Iranian barrels as well as crude being overbought from last week’s rally is prompting the market to take a “pause to refresh,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. Crude futures “had a really good run at a time when the broader economy is not performing that way.”

Meanwhile, Marathon Petroleum Corp.’s 593,000 barrel-a-day Galveston Bay refinery in Texas was shut after cold weather, and may take several weeks to run normally. Oil product markets surged after the news before paring gains, with heating oil margins climbing to their strongest since April 2020.

Moody's assigns first time A1 rating to #SaudiArabia's PIF | ZAWYA MENA Edition

Moody's assigns first time A1 rating to Saudi Arabia's PIF | ZAWYA MENA Edition

Moody's Investors Service on Monday assigned an A1 long term issuer rating (Global Scale Rating (GSR)) and a1 Baseline Credit Assessment (BCA) to Public Investment Fund (PIF), the kingdom's sovereign wealth fund.

The agency also assigned an Aaa.sa long term issuer national scale rating (NSR) for PIF. The outlook on all ratings is stable.

This is the first time Moody's has assigned a rating to PIF.

The rating reflects its standalone creditworthiness as expressed, combined with a 'very high' level of interdependence between the kingdom and PIF and a 'very high' likelihood of extraordinary support being provided to PIF from the kingdom if ever required.

The ratings consider factors such as total assets of 1.24 trillion riyals ($330 billion), based on standalone financials and 2.06 trillion riyals ($549 billion), based on consolidated financials, and underpinned by a steady dividend income stream and a high-quality investment portfolio.

Oil falls on positive signals from U.S.-Iran talks | Reuters

Oil falls on positive signals from U.S.-Iran talks | Reuters

Oil prices fell on Monday as concerns over tight supply were offset by signs of progress in nuclear talks between the United States and Iran, which could lead to the removal of U.S. sanctions on Iranian oil sales.

Brent crude was down 61 cents, or 0.7%, at $92.66 by 1445 GMT, having earlier touched its highest since October 2014 at $94.

U.S. West Texas Intermediate crude fell $1.11, or 1.2%, to $91.20 after touching $92.73.

U.S. President Joe Biden's administration on Friday restored sanctions waivers to Iran to allow international nuclear cooperation projects as talks on the 2015 international nuclear deal enter the final stretch.

#Saudi Wealth Fund PIF Edges Closer to Green Bond With Moody’s Rating - Bloomberg

Saudi Wealth Fund PIF Edges Closer to Green Bond With Moody’s Rating - Bloomberg

Saudi Arabia’s sovereign wealth fund has received the fifth-highest credit rating from Moody’s Investors Service ahead of its plans to tap the international bond market for the first time.

The A1 rating for the $500 billion Public Investment Fund, which matches the agency’s sovereign rating on Saudi Arabia, “reflects its standalone creditworthiness” as well as its “very high level of interdependence” with the government and likelihood that the state would provide it with support if needed, Moody’s said in a statement on Monday.

While the fund has “indirect” exposure to environmental and social risks, its “portfolio is quite diversified and many of the sectors where PIF invests have low exposure to environmental and social risks,” Moody’s said.

The first-time rating is a further indication that the wealth fund is closing in on plans to sell its debut green bond as it looks to increase the role that environmental, social and governance principles play in its investments. Governor Yasir Al-Rumayyan said in September that the PIF was working on plans to issue a so-called green bond.

#Qatar Weighs Refinancing $10 Billion Debt Due Next Year - Bloomberg

Qatar Weighs Refinancing $10 Billion Debt Due Next Year - Bloomberg

Qatar’s government has approached international banks to explore refinancing more than $10 billion in debt that comes due next year, according to three people familiar with the matter.

Officials at the Ministry of Finance are in early talks with international banks for a potential syndicated loan or bond sale, the people said, asking not to be named because they’re not authorized to speak publicly.

No final decision has been made, the people said. The government may decide to refinance part of the debt or even shelve the plan since the country has financial flexibility, they said.

A spokesperson for Qatar’s Ministry of Finance said the government didn’t have immediate plans to refinance debt. The ministry “is always in talks with banks to assess market conditions for possible debt issuance as part of our normal liability and fiscal management exercise,” the spokesperson added.

Oil falls on positive signals from U.S.-Iran talks | Reuters

Oil falls on positive signals from U.S.-Iran talks | Reuters

Oil prices fell on Monday as signs of a progress in the U.S.-Iran nuclear talks that could lead to removal of U.S. sanctions on Iranian oil sales offset concerns about the tight supplies.

Brent crude was down 31 cents, or 0.3%, at $92.96 by 1153 GMT, after earlier touching $94.00, its highest level since October 2014.

U.S. West Texas Intermediate crude fell 78 cents, or 0.8%, to $91.53 a barrel. It had risen to $92.73 earlier in the session.

U.S. President Joe Biden's administration on Friday restored sanctions waivers to Iran to allow international nuclear cooperation projects, as the talks on the 2015 international nuclear deal enter the final stretch.

Middle East markets mixed, Egypt sheds over 1% | Reuters

Middle East markets mixed, Egypt sheds over 1% | Reuters

Middle Eastern stock markets were mixed on Monday, as oil prices dipped, with Egypt's blue-chip index (.EGX30) tumbling more than 1% to mark its steepest fall in nearly three weeks.

Oil prices fell as signs of a progress in the U.S.-Iran nuclear talks that could lead to removal of U.S. sanctions on Iranian oil sales offset concerns about the tight supplies.

Outside the Gulf, Egypt's blue-chip index fell 1.2%, marking its biggest fall since Jan 19.

Saudi Arabia's benchmark index (.TASI) closed 0.4% higher, boosted by material and energy stocks.

Dubai's main share index (.DFMGI) ended up 0.6%, driven by index heavyweight Emirates NBD Bank (ENBD.DU) and Dubai Investments PJSC (DINV.DU).

Shares of Dubai Islamic Bank (DISB.DU) gained 0.5% after a document showed the United Arab Emirates' largest Islamic lender has hired banks to arrange a sale of five-year U.S. dollar-denominated sukuk.

In Abu Dhabi, the index (.FTFADGI) was flat.

The Qatari index (.QSI) ended 0.04% lower, after rising for the five straight sessions, as losses in energy stocks offset gains in utilities.

Watch Al Rayan's Khan: Higher Rates to Help Gulf Banks - Bloomberg video

Watch Al Rayan's Khan: Higher Rates to Help Gulf Banks - Bloomberg

Akber Khan, Senior Director, Asset Management at Al Rayan Investment discusses his outlook on the oil market as Aramco raises oil prices for customers in Asia, the U.S. and Europe. He also discusses potential rate hikes and gives his investment strategy for Qatari assets. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

Oil Falls Near $92 With Stellar Rally Taking a Breather - Bloomberg

Oil Falls Near $92 With Stellar Rally Taking a Breather - Bloomberg

PRICES
Brent for April settlement slipped 0.8% to $92.50 a barrel at 10:04 a.m. in London West Texas Intermediate for March delivery fell 1.3% to $91.16 a barrel.

#UAE Property Market Sizzles Amid Covid Backdrop - Bloomberg video

Watch UAE Property Market Sizzles Amid Covid Backdrop - Bloomberg

According to research by the CBRE, the UAE real estate sector had a positive turnaround in 2021 despite Covid-induced uncertainty that impacted the global property market. Taimur Khan, Head of Research for the MENA region at CBRE discusses what drove the upturn and gives his outlook for the rest of the year. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

#Saudi Riyad Bank to issue dollar denominated Tier 1 capital sukuk | ZAWYA MENA Edition

Saudi Riyad Bank to issue dollar denominated Tier 1 capital sukuk | ZAWYA MENA Edition

Saudi Arabia's Riyad Bank plans to issue US dollar denominated Tier 1 capital sukuk to support its capital base and meet financial and strategic needs.

In a statement to the Saudi Tadawul stock exchange on Sunday, the bank said amount and terms of offer of the sukuk will be determined subject to the market conditions.

The offer is expected to be through a special purpose vehicle and by way of an offer to eligible investors in the Kingdom of Saudi Arabia and internationally.

Riyad Bank has mandated HSBC, Riyad Capital and Standard Chartered Bank as joint lead managers and bookrunners to do a series of investor meetings.

#Dubai Islamic Bank hires banks for five-year sukuk sale - document | Reuters

Dubai Islamic Bank hires banks for five-year sukuk sale - document | Reuters

Dubai Islamic Bank (DISB.DU), the United Arab Emirates' largest Islamic lender, has hired banks to arrange a sale of five-year U.S. dollar-denominated sukuk, a document showed on Monday.

Bank ABC (ABCB.BH), Dubai Islamic Bank, Emirates NBD Capital (ENBD.DU), First Abu Dhabi Bank (FAB.AD), KFH Capital (KFH.KW), HSBC (HSBA.L), Sharjah Islamic Bank (SIB.AD), Standard Chartered (STAN.L) and The Islamic Corporation for the Development of the Private Sector will arrange investor calls starting on Monday, the document from one of the banks showed.

An benchmark issuance, typically at least $500 million, of senior unsecured sukuk will follow, subject to market conditions, the document said.

DP World posts 9.4% rise in 2021 container volumes | Reuters

DP World posts 9.4% rise in 2021 container volumes | Reuters

Ports giant DP World on Monday reported a 9.4% rise in 2021 container volumes, though growth rates moderated in the fourth quarter which the Dubai state company said was expected due to the impact of COVID-19, inflation and supply chain issues.

DP World said it handled 77.9 million shipping containers across its portfolio with its Asia Pacific & India, and Americas & Australia regions both recording double digit growth.

Chairman Sultan Ahmed bin Sulayem said there had been an encouraging start to 2022 and that DP World expected the portfolio to "continue to deliver growth".

But he also said the pandemic, ongoing global supply chain disruptions, rising inflation and geopolitical uncertainty "could continue to hinder the global economic recovery."

AD Ports Raises $1 Billion in Share Sale; Trading Debut Tuesday - Bloomberg

AD Ports Raises $1 Billion in Share Sale; Trading Debut Tuesday - Bloomberg

Abu Dhabi Ports Group, controlled by sovereign wealth fund ADQ, raised 4 billion dirhams ($1.1 billion) from a share sale and plans to list on the emirate’s stock market on Tuesday.

The proceeds will be used to finance growth, allowing Abu Dhabi Ports to “accelerate local and international expansion plans,” according to a statement. The company offered 1.25 billion shares at 3.20 dirhams ($0.87) each, people familiar with the matter said last month.

Abu Dhabi, the wealthiest of the United Arab Emirates’ seven sheikhdoms, has been at the center of a push to revive IPOs. The city’s exchange -- also owned by ADQ -- is offering sweeteners that include flexibility on the minimum stake size required for share sales and promises to reduce or forgo listing fees.

AD Ports, established in 2006, contributes about 14% of Abu Dhabi’s non-oil economic growth, according to the firm’s website. The company has recently become more active in capital markets, selling a debut bond of $1 billion in April and signaling plans to issue more debt to support investment.

Most Middle East markets flat in trade as oil prices swing | Reuters

Most Middle East markets flat in trade as oil prices swing | Reuters

Middle Eastern stock markets were mixed in trade on Monday, with Dubai's main share index (.DFMGI) up more than 0.5%, as oil prices fluctuated.

Oil prices bounced around on Monday in see-saw trading, with some investors taking profits after signs of progress in the U.S.-Iran nuclear talks, while others kept bullish sentiment bolstered by rising consumption amid ongoing supply constraints.

Saudi Arabia's benchmark index (.TASI) edged up 0.07%, boosted by materials and consumer staples.

Dubai's main share index (.DFMGI) was up 0.56%. Index heavyweight Emirates NBD Bank (ENBD.DU) and Dubai Investments PJSC (ENBD.DU) drove gains.

Shares of Dubai Islamic Bank (DISB.DU) were up marginally after a document showed the United Arab Emirates' largest Islamic lender has hired banks to arrange a sale of five-year U.S. dollar-denominated sukuk. read more

In Abu Dhabi, the index (.FTFADGI) was down 0.2%, after having risen marginally in the previous session.

Meanwhile, the Qatari index (.QSI) also dipped slightly to trade nearly flat. Losses in financial stocks offset the gains in industrials.

Oil fluctuates as market focuses on tight supply, U.S.-Iran talks | Reuters

Oil fluctuates as market focuses on tight supply, U.S.-Iran talks | Reuters

Oil prices bounced around on Monday in see-saw trading, with some investors taking profits after signs of progress in the U.S.-Iran nuclear talks while others kept bullish sentiment bolstered by rising consumption amid ongoing supply constraints.

Brent crude was down 2 cents at $93.25 a barrel as of 0758 GMT, after earlier touching its highest price since Oct. 3, 2014, of $94.00. It slid to as low as $92.47 in an early trade.

U.S. West Texas Intermediate crude fell 47 cents, or 0.5%, to $91.84 a barrel, having dived to as low as $91.35 earlier in the session and risen to as high as $92.73.

Both benchmarks rose more than $2 on Friday, extending their rally into a seventh week on ongoing worries about supply disruptions fuelled by political turmoil among major world producers.