Airbus poised for high-stakes legal clash with #Qatar Airways | Financial Times

Airbus poised for high-stakes legal clash with Qatar Airways | Financial Times

Airbus is preparing to go head-to-head with one of its largest customers in a legal battle that includes claims for hundreds of millions of dollars in damages and an allegation that one of its best-selling aircraft is defective. 

The case centres on claims by Qatar Airways that the paint on its fleet of Airbus A350 long-haul aircraft is flaking, resulting in the grounding of 21 planes. 

The European plane maker will state next week in its defence filing that the claims are groundless, and an attempt by the airline to gain compensation because of the impact of the pandemic on its operations, according to written arguments it presented in the High Court in London last month. 

Qatar, which operates 34 A350-900s and 19 A350-1000s, first complained in late 2020 after one of its aircraft was sent to Ireland to be painted in a livery for this November’s football World Cup in the Gulf state. Some abnormalities were found under the original paint when it was stripped off ahead of the application of the new colour scheme.

Oil retreats from 7-year high as Russia says withdraws some troops | Reuters

Oil retreats from 7-year high as Russia says withdraws some troops | Reuters

Oil tumbled over 3% on Tuesday, retreating from a seven-year high after Russia said some of its military units were returning to their bases after exercises near Ukraine, a move that appeared to de-escalate tension between Moscow and the West.

It was not clear how many units were being withdrawn, and by what distance, after a build-up of an estimated 130,000 Russian troops. An earlier Interfax report on the troop movements had prompted oil to extend losses. read more

"The situation is very fluid, but today is definitely a calmer day," said Robert Yawger, executive director of energy futures at Mizuho. "It's going to be a minute-to-minute, day-to-day type of thing."

Brent crude fell $3.2, or 3.3%, to settle at $93.28 a barrel. U.S. West Texas Intermediate (WTI) crude fell $3.39, or 3.6%, to end at $92.07 a barrel.

Both oil benchmarks hit their highest since September 2014 on Monday, with Brent touching $96.78 and WTI reaching $95.82. The price of Brent jumped 50% in 2021, while WTI soared around 60%, as a global recovery in demand from the COVID-19 pandemic strained supply.

#Saudi cabinet approves licensing third digital bank - central bank | Reuters

Saudi cabinet approves licensing third digital bank - central bank | Reuters

The Saudi cabinet has approved the licensing of a third digital bank, called D360 Bank, with a capital of 1.65 billion riyals ($440 million), the central bank said on Tuesday.

The kingdom's sovereign Public Investment Fund is part of the consortium of companies and investors launching the new lender, it said in a statement.

The two other digital banks, STC Bank and Saudi Digital Bank, were licensed last year.

The creation of digital banks in the kingdom is part of a financial development program contained in a massive reform programme known as Saudi Vision 2030.

Oil retreats from 7-year high as Russia says withdraws some troops | Reuters

Oil retreats from 7-year high as Russia says withdraws some troops | Reuters

Oil tumbled over 3% on Tuesday, retreating from a seven-year high after Russia said some of its military units were returning to their bases after exercises near Ukraine, a move that appeared to de-escalate tension between Moscow and the West.

It was not clear how many units were being withdrawn, and by what distance, after a build-up of an estimated 130,000 Russian troops. An earlier Interfax report on the troop movements had prompted oil to extend losses. read more

"We went from fearing that our worst fears would be realized to maybe there's a diplomatic offramp here after all. That brings a lot of relief in terms of keeping supplies on the market," said John Kilduff, partner at Again Capital in New York. "We can't afford to lose a single barrel these days."

Brent crude fell $3.35, or 3.5% to $93.13 a barrel by 1:12 p.m. EST (1812 GMT). U.S. West Texas Intermediate (WTI) crude traded $3.66, or 3.8%, lower to $91.80 a barrel.

Both oil benchmarks hit their highest since September 2014 on Monday, with Brent touching $96.78 and WTI reaching $95.82. The price of Brent jumped 50% in 2021, while WTI soared around 60%, as a global recovery in demand from the COVID-19 pandemic strained supply.

#SaudiArabia Isn't Wasting the Ukraine Crisis, Wielding Influence in Washington - Bloomberg

Saudi Arabia Isn't Wasting the Ukraine Crisis, Wielding Influence in Washington - Bloomberg

One should never let a crisis go to waste — and Saudi Arabia isn’t. The kingdom is using the Ukraine-Russia tension to re-establish itself not only in energy markets but global politics.

The Saudi royal family has weathered four difficult years. The assassination of Washington Post columnist Jamal Khashoggi in Istanbul in October 2018 badly tarnished the kingdom. The war in Yemen, where Riyadh is fighting Iranian-backed Houthi rebels, has dragged on, damaging its reputation as a regional hegemon. In 2020, oil prices plunged during the Covid pandemic, crushing the Saudi economy. Then Joe Biden arrived at the White House in early 2021 with a promise, made during the presidential election campaign, to turn the kingdom into a “pariah.”

But now the Saudis are back in business — just over a year since Biden took over from their staunch ally, Donald Trump. The revival has been going on for a while, but the crisis in Ukraine — and fears about the disruption of Russian energy flows — is accelerating it. According to the International Energy Agency, Riyadh controls 55% of the global crude oil production capacity that can be tapped in short order to cushion any stoppage. It’s a powerful tool in a world worried about rising oil prices and inflation.

With Brent crude approaching $100 a barrel and Saudi production on its way to the highest annual average, Riyadh is making more money than at any time since King Salman ascended to the throne in January 2015. On current trends, the kingdom will earn $375 billion pumping oil this year, the second-highest amount ever. It’s more than double the $145 billion it made in 2020.

Oil drops from 7-year high as Russia says some troops return to base | Reuters

Oil drops from 7-year high as Russia says some troops return to base | Reuters

Oil dropped more than 3% from a seven-year high on Tuesday after Russia said some of its military units were returning to their bases after exercises near Ukraine, a move that appeared to de-escalate tension between Moscow and the West.

It was not clear how many units were being withdrawn, and by what distance, after a build-up of an estimated 130,000 Russian troops. An earlier Interfax report on the troop movements had prompted oil to extend losses. read more

Brent crude was down $2.87, or 3%, at $93.61 by 1222 GMT. U.S. West Texas Intermediate (WTI) crude dropped $3.49, or 3.7%, to $91.97.

"There are no prizes for guessing the driving force behind this bout of volatility," said Stephen Brennock of oil broker PVM. "The Russia-Ukraine crisis has put the energy market on high alert for possible disruptions of Russian energy supplies."

#SaudiArabia’s Sovereign Fund PIF Backs New Digital Bank Called D360 - Bloomberg

Saudi Arabia’s Sovereign Fund PIF Backs New Digital Bank Called D360 - Bloomberg

Saudi Arabia’s sovereign wealth fund is a key investor in a new digital bank being established in the kingdom with a capital of 1.65 billion riyals ($440 million).

The Saudi cabinet approved a license for D360 bank on Tuesday, the central bank said in a statement. The digital bank is backed by a “consortium of individual and corporate investors” led by Derayah Financial Company, while the kingdom’s Public Investment Fund is “one of its key investors,” according to the statement.

Saudi Arabia recently licensed two other local digital banks as officials work to develop the financial sector under Crown Prince Mohammed bin Salman’s economic diversification plan.

Digital banks have taken off with the spread of finance technology in the Middle East, a region with high internet penetration and a young population. Saudi Arabia was a relatively slow adopter of digital banking and electronic payments, but that’s accelerated significantly since the pandemic pushed more businesses and consumers online.

The Public Investment Fund didn’t immediately respond to a request for comment.

Most Gulf bourses rise on signs of easing Russia-Ukraine tensions | Reuters

Most Gulf bourses rise on signs of easing Russia-Ukraine tensions | Reuters

Most stock markets in the Gulf ended higher on Tuesday, with the Saudi index leading gains, as investors took confidence from Russia saying that some of its troops were returning to their bases.

Russia said on Tuesday some of its military units were returning to their bases after exercises near Ukraine, days after warnings from the United States and Britain that Moscow might invade its neighbour at any time. read more

It was not clear how many units were being withdrawn and by what distance, after a build-up of an estimated 130,000 Russian troops to the north, east and south of Ukraine.

Oil prices fell down from the seven-year high hit on Monday.

Saudi Arabia's benchmark index (.TASI) advanced 1.2%, closing at its highest in more than 15 years, led by a 4% rise in Al Rajhi Bank (1120.SE).

On the other hand, Sahara International Petrochemical Company (2310.SE) dropped more than 2% after it said on Monday that its plants Al Waha And SAMAPCO would go on scheduled maintenance.

The Saudi stock market could continue recovering with oil prices staying at higher levels and initial public offerings continuing, said Daniel Takieddine, chief executive officer of MENA BDSwiss.

"The market could also benefit from stabilizing inflation levels while the economy remains strong."

Dubai's main share index (.DFMGI) gained 1%, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) rising 1.9% and budget airliner Air Arabia (AIRA.DU) jumping 6.9%.

The airline swung to a full-year profit and proposed a dividend.

Elsewhere, blue-chip developer Emaar Properties (EMAR.DU) added 1.2%, a day after saying it had recorded its highest ever property sales in 2021.

In Abu Dhabi, the index (.ADI) concluded 0.3% higher, hitting a record high.

According to Takieddine, the Abu Dhabi market could see further increases thanks to the dynamic IPO scene.

Fertilizer firm Fertiglobe (FERTIGLOBE.AD) climbed 3.7% after reporting a rise in fourth-quarter earnings.

The Qatari index (.QSI) firmed 0.2%, helped by a 2.5% rise in Mesaieed Petrochemical (MPHC.QA).

Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 1.4%, as most of the stocks on the index were in positive territory, including Commercial International Bank (COMI.CA), which was up 2.4%.

Tadawul All Share Index: #Saudi Stocks Extend Gains to Close at 2006 High - Bloomberg #Qatar

Tadawul All Share Index: Saudi Stocks Extend Gains to Close at 2006 High - Bloomberg

Saudi Arabia’s benchmark equity index closed at its highest level since July 2006, with gains fueled by elevated commodity prices and strong earnings.

The Tadawul All Share Index climbed 1.2% on Tuesday, with banking stocks leading gains. The gauge is the world’s eighth-best performing benchmark so far this year on a dollar-basis, rising almost 10%.

This year’s rally has been supported by a strong fourth-quarter earnings season, according to Jassim Al-Jubran, head of sell-side research at AlJazira Capital. “The market still has a good outlook for 2022” driven by the heavily weighted banking sector as interest rates rise, he said.

Soaring oil prices are supporting the macroeconomic outlook of most sectors in Saudi Arabia, Al-Jubran said.

Al Rajhi Bank, which reported earnings on Sunday, led Tuesday’s gains in the Tadawul, rising 4%. Saudi National Bank, Bank AlBilad and Riyad Bank were among other key leaders.

Qatar’s QE Index has been rallying at a similar pace to the Tadawul and is the sixth best-performing index globally this year. Qatari stocks are also getting a boost from expectations that the FIFA World Cup, which the country hosts later this year, will support earnings and the nation’s economy.

“We expect Qatar to see a catch-up rally this year as the market lagged in 2021 versus the rest of the Gulf Cooperation Council in terms of yearly gains,” said Junaid Ansari, head of investment strategy and research at Kamco Invest. The QE index is also relatively undervalued in terms of multiples.

Adnoc, Borealis Hiring Banks for IPO of Plastics Venture Borouge - Bloomberg

Adnoc, Borealis Hiring Banks for IPO of Plastics Venture Borouge - Bloomberg

The largest oil producer in the United Arab Emirates and its Austrian chemicals partner are lining up banks to help arrange a potential listing of their plastics venture Borouge within months, according to people familiar with the matter.

Abu Dhabi National Oil Co. and Borealis AG said on Tuesday they’re considering an initial public offering of a minority stake in the business. They hired First Abu Dhabi Bank PJSC and an international lender for the IPO, the people said, asking not to be identified discussing confidential information.

The companies will appoint more banks for a listing that could come as early as mid-year, though timing could shift, the people said.

Adnoc and Borealis are separately arranging $2.75 billion in financing from international banks to help fund a $6.2 billion expansion to add a fourth production line at Borouge’s facility in Abu Dhabi, according to people with knowledge of the transaction.

#UAE's Tabreed looks at expansion in Egypt, Gulf - CEO | Reuters

UAE's Tabreed looks at expansion in Egypt, Gulf - CEO | Reuters

Dubai-listed National Central Cooling Company PJSC (Tabreed) (TABR.DU) is considering an acquisition in Oman and expanding into Egyptian and other Gulf markets, its CEO Khalid Abdulla Al Marzooqi said in an interview with Al Arabiya TV on Tuesday.

Tabreed, which provides cooling systems to governments, commercial, residential and private organisations, is also looking at opportunities to expand in the United Arab Emirates, Marzooqi said.

The company is currently in exclusive talks to buy regional mall operater Majid Al Futtaim's cooling operations, two sources close to the matter told Reuters last week read more .

These regional expansion plans follow Tabreed's recent moves into Asian markets.

In December last year, Tabreed officially partnered with the World Bank Group's International Finance Corporation to expand its operations in India and establish a new holding company in Singapore.

#UAE sovereign wealth funds with combined assets of $1.4 trillion top GCC | Banking – Gulf News

UAE sovereign wealth funds with combined assets of $1.4 trillion top GCC | Banking – Gulf News

Leading UAE sovereign wealth funds (SWFS) together have emerged top in the region with $1.4 trillion in aggregate assets under their management.

Top five SWFs from the UAE, such as Abu Dhabi Investment Authority, Investment Corporation of Dubai (ICD), Mubadala Investment Company, Abu Dhabi Developmental Holding Company and Emirates Investment Authority (EIA) are ranked among top 20 in the top 100 list of the Sovereign Wealth Fund Institute.

While Adia is ranked fourth in the global ranking with an estimated assets of $697.86 billion, Dubai’s Investment Corporation of Dubai comes second with $301.6 billion worth assets under its management.

In the global ranking, Norway Government Pension Fund Global with $1.4 trillion assets topped the list with China Investment Corporation, Kuwait Investment Authority, Abu Dhabi Investment Authority, Hong Kong Monetary Authority Investment Portfolio ranking among the top five.

#AbuDhabi-listed Waha Capital's full-year profit jumps 69%

Abu Dhabi-listed Waha Capital's full-year profit jumps 69%

Waha Capital, which counts Mubadala Investment Company among its shareholders, reported a 69 per cent increase in annual profit in 2021, driven by "strong returns" from its emerging markets credit and equity funds businesses, the investment management company said.

Profit attributable to the owners of the company for the year ending December 31 jumped to Dh391 million ($106m), from Dh231m in 2020, the company said in a filing to Abu Dhabi Securities Exchange, where its shares are traded. Revenue from the sale of goods and services rose to Dh301.9m in 2021, from Dh301.5m in 2020.

"Waha Capital delivered a strong financial performance in 2021 despite volatile markets and a challenging macroeconomic environment," said Waleed Al Muhairi, chairman of the company.

"The company is now well-positioned to build on the success of the past year so that it can generate long-term, sustainable value for its shareholders."

Fertiglobe's profit surges amid higher demand for products

Fertiglobe's profit surges amid higher demand for products

Fertiglobe, the world’s largest seaborne exporter of urea and ammonia, reported an increase of more than eightfold in its fourth-quarter profit as revenue jumped on the back of higher demand for its products.

Net profit attributable to owners of the company for the three-month period to the end of December rose to $366.5 million, from $45.1m in the same period a year earlier, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue during the period more than doubled to $1.18 billion.

“Fertiglobe delivered a solid set of results in fourth-quarter of 2021, further underpinning our exciting growth potential,” said chief executive Ahmed El-Hoshy.

Air Arabia hedges about 50% of its fuel needs, CEO tells Al Arabiya | Reuters

Air Arabia hedges about 50% of its fuel needs, CEO tells Al Arabiya | Reuters

Middle East budget airline Air Arabia is hedging about half of its fuel needs, Chief Executive Adel Ali told Al Arabiya on Tuesday.

"We do not expect to raise the price of tickets unless the price of oil exceeds $100," he added.

Bahrain's Oil & Gas Holding hires banks to refinance $1.6 bln loan | Reuters

Bahrain's Oil & Gas Holding hires banks to refinance $1.6 bln loan | Reuters

Bahrain's Oil & Gas Holding Company has hired Gulf International Bank (GIB) and Mashreq (MASB.DU) to refinance an existing $1.6 billion murabaha facility, GIB said on Tuesday.

"The proposed transaction will have both Islamic and conventional tranches and will be sustainability linked," GIB told Reuters in response to a query.

Oil & Gas Holding and Mashreq did not immediately respond to requests for comment.

#Turkey's Erdogan touts investment potential on landmark #UAE visit | Reuters

Turkey's Erdogan touts investment potential on landmark UAE visit | Reuters

Turkish President Tayyip Erdogan touted his country's investment advantages to business people in the United Arab Emirates on Tuesday after a flurry of agreements between the two countries seeking to build economic bridges after years of animosity.

Erdogan, visiting for the first time since 2013, received a grand reception on Monday with UAE de facto ruler Abu Dhabi Crown Prince Mohammed bin Zayed al-Nahyan meeting him on arrival and the world's tallest tower, the Burj Khalifa, projecting Turkey's flag. read more

The move to rein in a bitter regional rivalry, rooted in differences on the role of political Islam in the region, comes after Ankara launched a charm offensive last year at a time of economic turmoil in Turkey and as the UAE turns towards soft power politics.

"Our mutual goal is to carry our bilateral relations to much higher levels in all areas," Erdogan told a business event. "Turkey provides very important advantages for investors looking for alternatives to Asia-centred production areas."

#UAE Digital Bank Zand Wins Backing From Franklin, Aditya Birla - Bloomberg

UAE Digital Bank Zand Wins Backing From Franklin, Aditya Birla - Bloomberg

Zand, a digital bank helmed by Dubai businessman Mohamed Alabbar, has won the backing of investors such as Franklin Templeton and Aditya Birla Group as it seeks to seize on opportunities thrown up by fintech.

The roster of investors also include Abu Dhabi’s Al Hail Holding, Al Sayyah & Sons Investments, Global Development Group, Yusuff Ali of Lulu Group, and Zand co-founder Olivier Crespin, according to a statement.

The launch of Zand, which will offer both retail and corporate banking, in the United Arab Emirates is “imminent,” according to the statement. It didn’t provide financial details of investments.

Digital banks have taken off with the spread of finance technology in Middle East, a region with high internet penetration and a largely young population. Zand will be competing other digital platforms including Wio, backed by Abu Dhabi wealth fund ADQ and the offshoots of traditional banks such as Dubai’s Emirates NBD.

The shareholders of Zand completed the acquisition of the majority of shares in Dubai Bank from Emirates NBD in December.

One of Archegos Stocks Is #Saudi Wealth Fund’s New Favorite Pick - Bloomberg

One of Archegos Stocks Is Saudi Wealth Fund’s New Favorite Pick - Bloomberg

Saudi Arabia’s sovereign wealth fund invested heavily in one of the stocks tied to the Archegos Capital Management blowup, while maintaining its biggest holdings of other U.S.-listed equities last quarter.

The Public Investment Fund owned $110.8 million in Farfetch Ltd. shares at the end of December, representing a 1% stake in the London-based luxury online retail platform after boosting its holding by nearly 1,000%, according to regulatory filings on Monday.

Farfetch’s stock was involved in a spree of block trades after Archegos failed to meet margin calls last March. Philippe Laffont’s investment firm Coatue Management was among firms that capitalized on the distressed remains of Bill Hwang’s hedge fund by taking a $148 million stake in Farfetch, which it exited in the second quarter last year.

Following the forced liquidation of positions linked to Archegos, Farfetch’s stock tumbled and is now down 74% from a record high reached a year ago. The shares are still trading above their lows reached in 2020. Analysts’ price targets forecast a 125% return potential for the stock over the next 12 months, according to data compiled by Bloomberg.

Most Gulf markets down; #Dubai gains on strong earnings | Reuters

Most Gulf markets down; Dubai gains on strong earnings | Reuters

Most Gulf bourses fell on Tuesday, mirroring sentiment across the globe, as investors contemplated the implications of a potentially imminent Russian invasion of Ukraine.

Oil prices eased as investors scooped up profits from the previous day's rally to seven-year highs, although lingering concerns that Russia might invade Ukraine and disrupt energy supplies limited losses.

Saudi Arabia's benchmark index (.TASI) fell 0.2% after posting its best day in nearly two months on Monday.

The kingdom's consumer price index rose 1.2% in January from a year earlier, fuelled by higher transport prices, government data showed on Tuesday.B8N2RV00N

Sahara International Petrochemical Company (2310.SE) shed over 1% after it said on Monday that its plants Al Waha And SAMAPCO would go on scheduled maintenance.

However, shares of advertising company Tihama (4070.SE) advanced more than 6%, rising for a third session.

On Thursday, Capital Market Authority approved Tihama's request to reduce its capital.

In Abu Dhabi, the index (.FTFADGI) was down 0.3%.

The Qatari index (.QSI) fell 0.4% with Qatar National Bank (QNBK.QA) down 1%, on course to extend losses from the previous session when it traded ex-dividend.

Bucking the trend, Dubai's main share index (.DFMGI) rose 0.4%, boosted by Air Arabia (AIRA.DU) which jumped over 10% in its biggest daily gain since April.

The airline posted a full-year profit and proposed a dividend.

Emaar Properties (EMAR.DU) said on Monday it had recorded its highest ever property sales in 2021. Shares were up nearly 1%.

Oil drops from 7-year high on report some Russian troops returning to base | Reuters

Oil drops from 7-year high on report some Russian troops returning to base | Reuters

Oil dropped from a seven-year high to around $94 a barrel on Tuesday, pressured by a report that some troops in Russia's military districts adjacent to Ukraine are returning to bases, a move that could de-escalate tension between Moscow and the West.

Russia's Interfax news agency cited the defence ministry as saying that while large-scale drills across the country continued, some units of the Southern and Western military districts have completed their exercises and started returning to base. read more

Brent crude fell $2.65, or 2.8%, to $93.83 by 1045 GMT. U.S. West Texas Intermediate (WTI) crude dropped $2.82, or 3%, to $92.64.

"There are no prizes for guessing the driving force behind this bout of volatility," said Stephen Brennock of oil broker PVM. "The Russia-Ukraine crisis has put the energy market on high alert for possible disruptions of Russian energy supplies."