Oil falls over 5% on Russia-Ukraine talk hopes, China lockdowns | Reuters

Oil falls over 5% on Russia-Ukraine talk hopes, China lockdowns | Reuters

Oil prices fell more than 5% on Monday to the lowest in nearly two weeks amid hopes for progress toward a diplomatic end to Russia's invasion of Ukraine - a development that would boost global supplies - while a pandemic-linked travel ban in China cast doubt on demand.

Brent futures fell $5.77, or 5.1%, to settle at $106.90 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $6.32, or 5.8%, to settle at $103.01.

That was the lowest close for WTI since Feb. 28 and the lowest for Brent since March 1. Both benchmarks have surged since Russia's Feb. 24 invasion of Ukraine and are up roughly 36% so far this year.

"Oil prices are reflecting a bearish sentiment drawn from expectations of positive developments in the latest round of Russia-Ukraine negotiations," said Kaushal Ramesh, an analyst at energy research provider Rystad Energy.

#SaudiArabia launches new strategy for National Development Fund | Reuters

Saudi Arabia launches new strategy for National Development Fund | Reuters

Saudi Arabia's crown prince on Monday launched a new strategy for its National Development Fund that will see it inject more than 570 billion riyals ($151.94 billion) into the economy by 2030, state news agency SPA reported.

Under the new strategy the fund will also help the kingdom triple non-oil gross domestic product (GDP) to 605 billion riyals in the same period, the official news agency added.

Basel al-Haroun appointed as #Kuwait c.bank governor | Reuters

Basel al-Haroun appointed as Kuwait c.bank governor | Reuters

Kuwait has appointed Basel Ahmed Salem al-Haroun as its central bank governor starting from April 1, the government said in a statement on Monday.

The new governor's period of office is five years. His appointment comes after current central bank head Muhammad Yousef al-Hashel asked for his term not to be renewed.

Supply Chain Latest: #UAE Is Opening Its Doors to More Trade - Bloomberg

Supply Chain Latest: UAE Is Opening Its Doors to More Trade - Bloomberg

Since 2016, it’s been politically popular for many governments to turn economic policy inward and throw up protectionist barriers to trade. Russia’s war in Ukraine is only expected to accelerate this rewiring of globalization.

Other countries have been on a perhaps surprisingly different path, like the one taken recently by the United Arab Emirates. The oil-rich Gulf nation has been on a mission to lure billions of dollars worth of foreign investments and open itself up to more lanes for trade.

Last year, the UAE announced its intention to deepen its ties with fast-growing economies to reposition itself — already a big player in international commerce as the home of logistics giant DP World and Emirates SkyCargo — as a global destination for business and finance.

Facing growing competition from neighboring Saudi Arabia, the UAE has most recently signed a deal with India to cut duties on almost 90% of goods traded between the two countries, a step expected to enhance trade relationships and double non-oil trade to at least $100 billion over five years.

Rich Exiles Put #Dubai in Spotlight - Bloomberg

Rich Exiles Put Dubai in Spotlight - Bloomberg

Dubai’s position as the financial capital of the Middle East is drawing scrutiny as the U.S. and Europe ratchet up pressure on Russia following Moscow’s invasion of Ukraine.

While the United Arab Emirates has long been an investment destination for wealthy Russians, it’s becoming more appealing as other countries sever relations with Moscow.

Their previously favored locales, including the U.K., Switzerland and the Cayman Islands, have sanctioned Russian banks, seized mansions and impounded super-yachts.​

The flow of Russian money into the UAE through cash transfers and crypto wallets picked up as tension between Russia and Ukraine escalated, people with direct knowledge of the matter said.

Officials in the UAE must now grapple with a dilemma. They can join the global effort to clamp down on Russian assets at the expense of losing out on money flows that have helped underpin the economy. Or they can try to maintain the confidentiality that traditional havens could no longer sustain, and risk upsetting traditional allies such as the U.S.

#Kuwait’s Kipco Aims to Complete Qurain Chemical Deal This Year - Bloomberg

Kuwait’s Kipco Aims to Complete Qurain Chemical Deal This Year - Bloomberg

Kuwait Projects Co. said it hopes to complete a takeover of Qurain Petrochemical Industries Co. -- a company with a $1.3 billion market valuation -- by the end of this year.

“Once completed, there’s going to be a bigger plan,” said Joe Kawkabani, chief investment officer of Kuwait Projects, known as Kipco. The tie up will be “super complementary.”

Kipco is an investment firm focusing on the Middle East and North Africa.

The proposed deal follows a surge in the price of chemicals and other petroleum products used to make everything from plastics to paint. Demand has jumped in the past year as major economies recovered from the coronavirus pandemic. Russia’s attack on Ukraine led to energy and chemical prices climbing even more.

“We’ll look at the assets and decide what’s core” once the merger is completed, Kawkabani said. “We’ll be looking at selling and recycling, and looking for new investment, to create a more profitable entity.”

The two companies signed a memorandum of understanding about a combination, a process subject to various approvals. A steering committee will be formed in the coming days, according to Kawkabani, after which the due diligence process will start.

Gulf bourses in red, #Saudi slips for fourth straight session | Reuters

Gulf bourses in red, Saudi slips for fourth straight session | Reuters

Markets in the Middle East ended lower on Monday, with Saudi's main index (.TASI) trading lower for the fourth straight session amid weak oil prices.

Oil prices fell by around $5 a barrel on Monday as investors pinned hopes on diplomatic efforts by Ukraine and Russia to end their conflict, while a surge in COVID-19 cases in China spooked the markets.

Energy-heavy Saudi Arabia's benchmark share index (.TASI) fell 0.9%, with oil giant Saudi Aramco (2222.SE) down 1.6%.

In Abu Dhabi, the index (.FTFADGI) lost 1%, hit by a 1.9% decline in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).

Dubai's main share index (.DFMGI) fell 1.4%, hardest-hit in the region, pressured by financials. Amlak Finance (AMLK.DU) dropped nearly 10%, while Emirates NBD Bank (ENBD.DU) slipped 3.7%.

"While the fundamentals remain potent, the (Middle East) region's markets could see additional price corrections as investors move to secure their gains due to the uncertainties around the development of the global economy," said Wael Makarem, senior market strategist at Exness.

"Investors' attention is shifting towards this week's Federal Reserve meeting which could alter markets' direction and forecasts," Makarem added.

The U.S. Federal Reserve is widely expected to raise interest rates by a quarter of a percentage point at a two-day event later this week.

The Qatari benchmark (.QSI) inched 0.1% lower.

Outside the Gulf, Egypt's blue-chip index (.EGX30) ended nearly 0.6% lower, with top lender Commercial International Bank Egypt (COMI.CA) losing 0.7%.

"The Egyptian stock market continued to record price corrections as risk aversion grows among investors," says Makarem, adding that the country could feel a hit, if commodities remain high due the ongoing conflict in Europe.

Oil falls $5 on Russia-Ukraine talk hopes, China lockdowns | Reuters

Oil falls $5 on Russia-Ukraine talk hopes, China lockdowns | Reuters

Oil prices fell by around $5 a barrel on Monday as investors pinned hopes on diplomatic efforts by Ukraine and Russia to end their conflict, while a surge in COVID-19 cases in China spooked the markets.

Brent was down by $4.62, or 4.1%, at $108.05 a barrel at 1152 GMT, and U.S. West Texas Intermediate (WTI) crude fell $5.45, or 5%, to $103.88 a barrel.

Both contracts have surged since Russia's Feb. 24 invasion of Ukraine and are up roughly 40% for the year to date.

Ukrainian and Russian negotiators are set to talk again on Monday via video link. Negotiators had given their most upbeat assessments after weekend negotiations, suggesting there could be positive results within days. read more

"Beside new talks between Ukraine and Russia, I guess new lockdowns in China are the reason for a negative start of the week for crude oil," said UBS analyst Giovanni Staunovo.

Oil falls on Russia/Ukraine talks and new lockdowns in China | Reuters

Oil falls on Russia/Ukraine talks and new lockdowns in China | Reuters

Oil prices fell by around $5 a barrel on Monday as investors pinned hopes on diplomatic efforts by Ukraine and Russia to end their conflict, while a surge in COVID-19 cases in China spooked the markets.

Brent was down by $4.67, or 4.1%, at $108.00 a barrel at 1000 GMT, and U.S. West Texas Intermediate (WTI) crude fell $5.71, or 5.2%, to $103.62 a barrel.

Both contracts have surged since Russia's Feb. 24 invasion of Ukraine and are up roughly 40% for the year to date.

Ukrainian and Russian negotiators are set to talk again on Monday via video link. Negotiators had given their most upbeat assessments after weekend negotiations, suggesting there could be positive results within days. read more

"Beside new talks between Ukraine and Russia, I guess new lockdowns in China are the reason for a negative start of the week for crude oil," said UBS analyst Giovanni Staunovo.

#Saudi miner Amak's IPO attracts $1.07bln from retail investors

Saudi miner Amak's IPO attracts $1.07bln from retail investors

Saudi-based miner Amak has collected SR4 billion ($1.07 billion) from selling shares to retail buyers amid an IPO boom in the Kingdom.

With an offer price of SR63 and almost six million shares offered, the retail portion that lasted three days was 10.6 times oversubscribed, according to a bourse filing.

The company hasn’t disclosed when it will start trading on the bourse.

The shares sale comes at a time when the Kingdom is revamping its mining sector to attract more private investors. In addition, more Saudi companies are going public this year with the Saudi stock exchange, Tadawul Group, expecting a listing of around 50 companies.

Prior to the retail offering, the Najran-based firm saw strong demand from institutional investors as it attracted SR91.8 billion worth of orders.

Amak, formally known as Al Masane Al Kobra Mining Co., mines for copper, zinc, gold, and other metals.

UK's Johnson urges #SaudiArabia to raise oil output, minister says | Reuters

UK's Johnson urges Saudi Arabia to raise oil output, minister says | Reuters

British Prime Minister Boris Johnson is trying to persuade Saudi Arabia to increase its oil output, a senior minister said on Monday, following reports that Johnson would travel to the OPEC heavyweight this week.

Saudi Arabia and the UAE have so far snubbed U.S. pleas to use their spare output capacity to tame rampant crude prices which threaten a global recession after Russia's invasion of Ukraine.

Saudi ties with the West are strained over a range of rights issues including the Yemen war and the killing of Saudi journalist Jamal Khashoggi in the Saudi consulate in Istanbul in 2018.

The Times newspaper said that Johnson would travel to Saudi Arabia this week to try to persuade it to increase output, citing sources that said he had built good ties with the country's leadership.

#Saudi Real Estate Refinance Co delays debut dollar sukuk due to market volatility | Reuters

Saudi Real Estate Refinance Co delays debut dollar sukuk due to market volatility | Reuters

The Saudi Real Estate Refinance Company (SRC), the equivalent of U.S. mortgage finance business Fannie Mae, will delay plans for debut dollar-denominated Islamic bonds to the second quarter, its chief executive said.

SRC's CEO Fabrice Susini had said in November he expected the deal in the first quarter if market conditions allowed.

Debt markets already jittery over impending interest rate hikes have all but ground to a halt following Russia's invasion of Ukraine. Several Gulf issuers that have already mandated banks for deals are waiting for a window of stability, bankers have said.

SRC expects to launch two international and two domestic debt sales this year.

The domestic issues combined are expected to raise 3 billion to 6 billion riyals ($800 million-$1.6 billion) and the international sales are likely to raise $1 billion or possibly more in total, Susini said in an interview with Reuters.

#Saudi Pharma Retail Chain Al-Dawaa Surges in Trading Debut - Bloomberg

Saudi Pharma Retail Chain Al-Dawaa Surges in Trading Debut - Bloomberg

Al-Dawaa Medical Services, one of Saudi Arabia’s largest pharmaceutical retailers, jumped on its trading debut in Riyadh after a $500 million initial public offering.

The shares surged as much as 18% to 86.1 riyals. The company had sold shares at 73 riyals, pricing it at the top end of a range after attracting more than $25 billion in bids ahead of its retail offering.

Riyadh has been the hottest market in the Gulf for IPOs over the past two years amid pent up demand from retail and institutional investors. Saudi Arabian companies raised almost $9.3 billion from share offerings last year and the benchmark Tadawul All Share Index is among the best-performing gauges in the world this year.

Al-Dawaa operates a network of pharmacies with over 800 outlets across 130 cities in Saudi Arabia. It posted a revenue of about 5 billion riyals ($1.3 billion) and profit of 246 million riyals in 2020 compared with 4 billion riyals and 233 million riyals year ago, respectively.

Markets fall as weak oil prices dent investor appetite | Reuters

Markets fall as weak oil prices dent investor appetite | Reuters

Middle Eastern stock markets fell on Monday, with Saudi's main share index (.TASI) trading lower for a fourth straight session, as weak oil prices dampened risk sentiment for the region.

Oil prices shed as much as $4 a barrel, extending losses from last week, as diplomatic efforts to end the war in Ukraine were stepped up and markets braced for U.S. rate hikes.

Brent crude futures were last down by $3.05 or 2.7% at $109.62 a barrel at 0351 GMT.

Most share markets firmed and oil prices slid on hopes for progress in Russian-Ukraine peace talks, while bond markets braced for a rate increase in the United States and UK this week.

Ukrainian and Russian negotiators are set to talk again on Monday via video link after both sides cited progress. read more

Energy-heavy Saudi Arabia's benchmark share index (.TASI) fell 0.4%, with oil giant Saudi Aramco (2222.SE) down nearly 1%.

Shares of Aramco have risen more than 10% so far this year as crude prices soared for days after Moscow invaded its neighbour. Russia's invasion, which Moscow calls a "special operation," has roiled energy markets globally.

Iran has suspended talks with regional rival Saudi Arabia, a website affiliated to Iran's top security body reported on Sunday, without giving a reason for the decision that comes as a fifth round of negotiations was due to start this week. read more

Dubai's main share index (.DFMGI) fell 0.4%, pressured by a 2% slump in top lender Emirates NBD (ENBD.DU) and a 0.8% drop in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

In Abu Dhabi, the index (.FTFADGI) was down 0.4%, hit by a 1.3% decline in the country's largest lender First Abu Dhabi Bank (FAB.AD).

The Qatari index (.QSI) eased 0.2%, with Barwa Real Estate Co (BRES.QA) sliding about 6%.

Oil falls on talks to end Ukraine war and ahead of Fed meeting | Reuters

Oil falls on talks to end Ukraine war and ahead of Fed meeting | Reuters

Oil prices shed as much as $4 a barrel on Monday, extending last week's decline as diplomatic efforts to end the war in Ukraine geared up and markets braced for higher U.S. interest rates.

Brent crude futures were last down by $3.81 or 3.4% at $108.86 a barrel at 0741 GMT on Monday.

U.S. West Texas Intermediate (WTI) crude futures eased $3.85 or 3.5% to $105.48 a barrel.

Both contracts have surged since Russia's Feb. 24 invasion of Ukraine and are up roughly 40% for the year to date.