Oil surges to multi-year highs as Russian supply shortfall looms | Reuters
Oil surged on Friday, ending the week at multi-year highs as Russia's invasion of Ukraine intensified and oil buyers shunned barrels from the world's second-largest exporter of crude.
Crude prices posted their largest weekly gains since the middle of 2020, with the Brent benchmark up 21% and U.S. crude gaining 26%. The most commonly traded oil futures closed at levels not seen since 2013 and 2008, respectively.
Oil surged throughout the week as the United States and allies heaped sanctions on Russia that, while not aimed at Russian oil and gas sales, nonetheless squeezed its industry, and threatens a growing supply crunch in coming months.
Brent futures rose $7.65, or 6.9%, to settle at $118.11 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $8.01, or 7.4%, to end at $115.68.
That was the highest close for Brent since February 2013 and for WTI since September 2008. During the week, Brent rose to its highest intraday since May 2012 and WTI its highest since September 2008.
Friday 4 March 2022
#UAE Poised for Global Watchdog FATF’s ‘Gray List’ Over Dirty Money - Bloomberg
UAE Poised for Global Watchdog FATF’s ‘Gray List’ Over Dirty Money - Bloomberg
The United Arab Emirates is set for inclusion on a global watchdog’s “gray list” after some of its members indicated that the Gulf nation hadn’t made enough progress in tackling illicit financial flows, according to people familiar with the matter.
At least three members of the Paris-based Financial Action Task Force have expressed the view that the UAE hasn’t done enough to exit the review process and therefore will likely get put on the group’s list of countries subject to more oversight, said the people, who requested anonymity as the matter is private.
The organization is currently holding its plenary, where members are discussing the UAE government’s efforts to combat dirty money, and a decision is expected to be announced as early as Friday.
To avoid the designation, a significant majority of the FATF’s 39 members must vote that a country has made sufficient progress since the evaluation period began. Just a few votes to the contrary can result in a jurisdiction getting added to the list of nations under increased monitoring, the people said.
A gray-list classification isn’t as punitive as the group’s highest-risk “black list,” and it suggests that UAE officials are taking steps to address the country’s current deficiencies, the people said.
Still, the decision is potentially the most significant step to be taken by the FATF in its three-decade history, given the UAE’s position as a regional financial center. FATF, set up by the Group of Seven major economies, has some two dozen nations -- including Turkey, Zimbabwe and Albania -- on its gray list, with Iran and North Korea on the black list.
The UAE government said it will release an official response once the decision is out. A spokesperson for FATF said its internal deliberations are confidential.
For the UAE, being gray-listed would be a setback at a time when it faces greater competition from neighboring Saudi Arabia, which is growing its financial markets and taking steps to lure more investment.
In practical terms, a gray-listing would force Wall Street banks, which use Dubai as their regional headquarters, to dedicate additional resources to compliance in order to avoid future penalties from international regulators. The decision could also have an impact on Abu Dhabi, the nation’s capital and home to sovereign wealth funds with more than $1 trillion of assets.
A report by the International Monetary Fund last year found that gray-listed countries experienced “a large and statistically significant reduction in capital inflows.”
The potential fallout in the UAE could be difficult to quantify, though, as financial firms may already approach the country as a higher-risk area, Katherine Bauer, a former Treasury Department official who led the U.S. delegation to FATF’s regional partner in the Middle East and North Africa, told Bloomberg in January.
Significant Steps
Since warnings by the FATF in 2020 as part of the group’s mutual-evaluation report, the UAE government has stepped up efforts to better align with global standards on anti-money laundering and countering terrorist financing.
Emirati officials set up an Executive Office led by Hamid Al Zaabi to combat illicit flows, working in partnership with other FATF members. Al Zaabi has said previously that the UAE is fully committed to upholding the integrity of the international financial system.
The country has introduced courts focused on financial crimes, established new beneficial ownership rules and even announced a 9% corporate tax starting in 2023. The central bank recently imposed penalties on some lenders for breaching anti-money laundering regulations and regulated new rules on hawalas, charities often alleged to enable terrorism-related money flows.
The UAE collected over $1 billion in anti-money laundering and terrorist financing penalties last year, state-run WAM news agency reported Thursday. “Several major legal amendments were recently adopted, including the anti-money laundering law that includes wider powers related to confiscations, as well as controlling virtual assets,” WAM reported, citing Al Zaabi.
The FATF’s mutual-evaluation report published in April 2020 also highlighted how the UAE has taken significant steps to tackle terrorist financing, yet requests for information on money laundering often got met with delays. Since then, the illicit flows into the country have attracted greater scrutiny.
As the evaluation period proceeded, it became clear that the UAE faced a challenging hurdle to avoid a gray-listing, the people said. Yet ongoing progress toward combating illicit financial flows could allow the Gulf state to get off the list in a shorter span than other jurisdictions, they added.
The United Arab Emirates is set for inclusion on a global watchdog’s “gray list” after some of its members indicated that the Gulf nation hadn’t made enough progress in tackling illicit financial flows, according to people familiar with the matter.
At least three members of the Paris-based Financial Action Task Force have expressed the view that the UAE hasn’t done enough to exit the review process and therefore will likely get put on the group’s list of countries subject to more oversight, said the people, who requested anonymity as the matter is private.
The organization is currently holding its plenary, where members are discussing the UAE government’s efforts to combat dirty money, and a decision is expected to be announced as early as Friday.
To avoid the designation, a significant majority of the FATF’s 39 members must vote that a country has made sufficient progress since the evaluation period began. Just a few votes to the contrary can result in a jurisdiction getting added to the list of nations under increased monitoring, the people said.
A gray-list classification isn’t as punitive as the group’s highest-risk “black list,” and it suggests that UAE officials are taking steps to address the country’s current deficiencies, the people said.
Still, the decision is potentially the most significant step to be taken by the FATF in its three-decade history, given the UAE’s position as a regional financial center. FATF, set up by the Group of Seven major economies, has some two dozen nations -- including Turkey, Zimbabwe and Albania -- on its gray list, with Iran and North Korea on the black list.
The UAE government said it will release an official response once the decision is out. A spokesperson for FATF said its internal deliberations are confidential.
For the UAE, being gray-listed would be a setback at a time when it faces greater competition from neighboring Saudi Arabia, which is growing its financial markets and taking steps to lure more investment.
In practical terms, a gray-listing would force Wall Street banks, which use Dubai as their regional headquarters, to dedicate additional resources to compliance in order to avoid future penalties from international regulators. The decision could also have an impact on Abu Dhabi, the nation’s capital and home to sovereign wealth funds with more than $1 trillion of assets.
A report by the International Monetary Fund last year found that gray-listed countries experienced “a large and statistically significant reduction in capital inflows.”
The potential fallout in the UAE could be difficult to quantify, though, as financial firms may already approach the country as a higher-risk area, Katherine Bauer, a former Treasury Department official who led the U.S. delegation to FATF’s regional partner in the Middle East and North Africa, told Bloomberg in January.
Significant Steps
Since warnings by the FATF in 2020 as part of the group’s mutual-evaluation report, the UAE government has stepped up efforts to better align with global standards on anti-money laundering and countering terrorist financing.
Emirati officials set up an Executive Office led by Hamid Al Zaabi to combat illicit flows, working in partnership with other FATF members. Al Zaabi has said previously that the UAE is fully committed to upholding the integrity of the international financial system.
The country has introduced courts focused on financial crimes, established new beneficial ownership rules and even announced a 9% corporate tax starting in 2023. The central bank recently imposed penalties on some lenders for breaching anti-money laundering regulations and regulated new rules on hawalas, charities often alleged to enable terrorism-related money flows.
The UAE collected over $1 billion in anti-money laundering and terrorist financing penalties last year, state-run WAM news agency reported Thursday. “Several major legal amendments were recently adopted, including the anti-money laundering law that includes wider powers related to confiscations, as well as controlling virtual assets,” WAM reported, citing Al Zaabi.
The FATF’s mutual-evaluation report published in April 2020 also highlighted how the UAE has taken significant steps to tackle terrorist financing, yet requests for information on money laundering often got met with delays. Since then, the illicit flows into the country have attracted greater scrutiny.
As the evaluation period proceeded, it became clear that the UAE faced a challenging hurdle to avoid a gray-listing, the people said. Yet ongoing progress toward combating illicit financial flows could allow the Gulf state to get off the list in a shorter span than other jurisdictions, they added.
#UAE Bukhatir group to revive a $5 bln real estate project in Tunisia- sources | Reuters
UAE Bukhatir group to revive a $5 bln real estate project in Tunisia- sources | Reuters
UAE-based Bukhatir Group will revive a $5 billion real estate project in Tunis, Tunisian sources told Reuters on Friday, the first big project in the North African country since a 2011 revolution.
Sources said the group will officially launch the Tunis Sports City project next week after it was halted following the revolution that toppled former President Zine El Abidine Ben Ali.
The project include sports academies, a golf course, hotels and apartments covering 275 hectares in the north of Tunis. It is expected intially to provide about 10,000 jobs in the country, where unemployment is more than 18%.
Tunisian government officials were not immediately available for comment. Bukhatir could not immediately be reached for comment.
UAE-based Bukhatir Group will revive a $5 billion real estate project in Tunis, Tunisian sources told Reuters on Friday, the first big project in the North African country since a 2011 revolution.
Sources said the group will officially launch the Tunis Sports City project next week after it was halted following the revolution that toppled former President Zine El Abidine Ben Ali.
The project include sports academies, a golf course, hotels and apartments covering 275 hectares in the north of Tunis. It is expected intially to provide about 10,000 jobs in the country, where unemployment is more than 18%.
Tunisian government officials were not immediately available for comment. Bukhatir could not immediately be reached for comment.
Oil rises above $113 as Ukraine conflict offsets Iran supply hope | Reuters
Oil rises above $113 as Ukraine conflict offsets Iran supply hope | Reuters
Oil rose above $113 a barrel on Friday in a volatile session as fears over disruption to Russian oil exports in the face of Western sanctions offset the prospect of more Iranian supplies in the event of a nuclear deal with Tehran.
Signs of an escalation in the Russia-Ukraine conflict, with reports of a fire at a Ukrainian nuclear power plant, spooked markets before authorities said the fire in a building identified as a training centre had been extinguished. read more
Brent crude rose as high as $114.23 a barrel and by 1300 GMT was up $3.28, or 3%, at $113.74. U.S. West Texas Intermediate (WTI) added $3.19, or 3%, to $110.86 after touching a high of $112.84.
"Russia's invasion of Ukraine means that fears over supply will remain front and centre," said Stephen Brennock of oil broker PVM, though he added that there is "a new sense of urgency" to revive the Iranian nuclear deal.
Oil rose above $113 a barrel on Friday in a volatile session as fears over disruption to Russian oil exports in the face of Western sanctions offset the prospect of more Iranian supplies in the event of a nuclear deal with Tehran.
Signs of an escalation in the Russia-Ukraine conflict, with reports of a fire at a Ukrainian nuclear power plant, spooked markets before authorities said the fire in a building identified as a training centre had been extinguished. read more
Brent crude rose as high as $114.23 a barrel and by 1300 GMT was up $3.28, or 3%, at $113.74. U.S. West Texas Intermediate (WTI) added $3.19, or 3%, to $110.86 after touching a high of $112.84.
"Russia's invasion of Ukraine means that fears over supply will remain front and centre," said Stephen Brennock of oil broker PVM, though he added that there is "a new sense of urgency" to revive the Iranian nuclear deal.
#UAE markets fall; #AbuDhabi has strongest week in more than a year | Reuters
UAE markets fall; Abu Dhabi has strongest week in more than a year | Reuters
UAE stock markets fell on Friday in tandem with global markets as escalating tensions in the Russia-Ukraine conflict undermined confidence and ended a run of gains spurred by high oil and commodity prices.
Russian forces in Ukraine seized Europe's biggest nuclear power station where a fire, that had spooked financial markets, was extinguished on Friday. read more
Global stocks extended their losses for the week as investors piled into government bonds and gold for cover while Asian shares hit 16-month lows.
Oil prices rose as high as $114.23 a barrel on Friday as fears over disruption to Russian oil exports in the face of Western sanctions offset the prospect of more Iranian supplies in the event of a nuclear deal with Tehran.
"The Dubai stock market opened to the downside as investors secure their gains after a week of sharp increases," said Wael Makarem, Senior Market Strategist – MENA at Exness.
In Dubai, the main share index (.DFMGI) fell 0.9%, breaking a five-day run of gains.
Financials and communications services were among the big fallers.
The index marked its strongest week in over two months with its gain of 4.1%.
Abu Dhabi's index (.FTFADGI) dropped 0.6%, its first fall in six sessions.
The index rose 6.1% for the week, its biggest weekly gain since Jan 2021.
Emirates NBD Bank (ENBD.DU) fell 2.9% after trading ex-dividend.
UAE stock markets fell on Friday in tandem with global markets as escalating tensions in the Russia-Ukraine conflict undermined confidence and ended a run of gains spurred by high oil and commodity prices.
Russian forces in Ukraine seized Europe's biggest nuclear power station where a fire, that had spooked financial markets, was extinguished on Friday. read more
Global stocks extended their losses for the week as investors piled into government bonds and gold for cover while Asian shares hit 16-month lows.
Oil prices rose as high as $114.23 a barrel on Friday as fears over disruption to Russian oil exports in the face of Western sanctions offset the prospect of more Iranian supplies in the event of a nuclear deal with Tehran.
"The Dubai stock market opened to the downside as investors secure their gains after a week of sharp increases," said Wael Makarem, Senior Market Strategist – MENA at Exness.
In Dubai, the main share index (.DFMGI) fell 0.9%, breaking a five-day run of gains.
Financials and communications services were among the big fallers.
The index marked its strongest week in over two months with its gain of 4.1%.
Abu Dhabi's index (.FTFADGI) dropped 0.6%, its first fall in six sessions.
The index rose 6.1% for the week, its biggest weekly gain since Jan 2021.
Emirates NBD Bank (ENBD.DU) fell 2.9% after trading ex-dividend.
#AbuDhabi wealth fund cuts jobs in effort to save $272 mln in costs | Reuters
Abu Dhabi wealth fund cuts jobs in effort to save $272 mln in costs | Reuters
Abu Dhabi Investment Authority, one of the world's largest sovereign wealth funds, has cut dozens of jobs over the past year as part of a one billion dirham ($272.29 million) cost saving program, two sources told Reuters.
The cost savings will help Abu Dhabi's sovereign wealth fund, which manages $700 billion in assets, divert money into new projects such as quantitative research and development.
ADIA, which manages capital on behalf of the oil rich Abu Dhabi government, has focused on trimming its bloated management team, cutting expensive, long-tenured staff who have worked there for decades, said the sources, declining to be identified as the matter is not public.
The fund had a cost-saving target of around one billion dirhams which has been communicated internally to management, said the sources.
A spokesperson for ADIA said the fund "continuously evaluates its operations to ensure its capabilities, structures and processes are aligned with long term objectives, and enable ADIA to evolve with the investment environment.”
The changes are aimed at making ADIA, which was set up in 1976 to invest the emirate's petro-dollar surpluses, more nimble and efficient, sources say.
Abu Dhabi Investment Authority, one of the world's largest sovereign wealth funds, has cut dozens of jobs over the past year as part of a one billion dirham ($272.29 million) cost saving program, two sources told Reuters.
The cost savings will help Abu Dhabi's sovereign wealth fund, which manages $700 billion in assets, divert money into new projects such as quantitative research and development.
ADIA, which manages capital on behalf of the oil rich Abu Dhabi government, has focused on trimming its bloated management team, cutting expensive, long-tenured staff who have worked there for decades, said the sources, declining to be identified as the matter is not public.
The fund had a cost-saving target of around one billion dirhams which has been communicated internally to management, said the sources.
A spokesperson for ADIA said the fund "continuously evaluates its operations to ensure its capabilities, structures and processes are aligned with long term objectives, and enable ADIA to evolve with the investment environment.”
The changes are aimed at making ADIA, which was set up in 1976 to invest the emirate's petro-dollar surpluses, more nimble and efficient, sources say.
Oil rebounds on escalating Ukraine conflict | Reuters
Oil rebounds on escalating Ukraine conflict | Reuters
Oil prices rebounded on Friday as fears of Western sanctions that could disrupt Russian oil exports outweighed the possibility of more Iranian supplies while reports of a nuclear plant fire in Ukraine spooked financial markets.
Global stocks fell and oil prices rose on signs of an escalation in the Russia-Ukraine conflict after reports of a fire at a Ukrainian nuclear power plant after an attack by Russian troops.
Fears of a potential nuclear disaster at the Zaporizhzhia plant, Europe's largest, had spread alarm across world capitals before authorities said the fire in a building identified as a training centre had been extinguished. read more
Brent crude futures for May rose as high as $114.23 a barrel and by 0755 GMT were up 73 cents, or 0.7%, at $111.19.
U.S. West Texas Intermediate for April rose $1.21, or 1.1%, to $108.88 after touching a high of $112.84 earlier in the session.
Oil prices rebounded on Friday as fears of Western sanctions that could disrupt Russian oil exports outweighed the possibility of more Iranian supplies while reports of a nuclear plant fire in Ukraine spooked financial markets.
Global stocks fell and oil prices rose on signs of an escalation in the Russia-Ukraine conflict after reports of a fire at a Ukrainian nuclear power plant after an attack by Russian troops.
Fears of a potential nuclear disaster at the Zaporizhzhia plant, Europe's largest, had spread alarm across world capitals before authorities said the fire in a building identified as a training centre had been extinguished. read more
Brent crude futures for May rose as high as $114.23 a barrel and by 0755 GMT were up 73 cents, or 0.7%, at $111.19.
U.S. West Texas Intermediate for April rose $1.21, or 1.1%, to $108.88 after touching a high of $112.84 earlier in the session.