Biden rebuffed as US relations with Saudi Arabia and UAE hit new low | US foreign policy | The Guardian
As Joe Biden moved to open US strategic oil reserves, his two biggest oil-producing allies have kept their tanks firmly shut. The UAE and Saudi Arabia continue to rebuff the US president as he attempts to counter soaring oil prices prompted by Russia’s invasion of Ukraine. And both countries have been unusually frank about their refusal to step in.
The five-week-old war is bringing tensions to a head in several parts of the world, but perhaps nowhere is a regional order more under strain than the Middle East, where two of America’s biggest allies are now seriously questioning the foundations of their relationship.
The Saudi and Emirati refusal to bail Biden out – or even to take his calls – has pushed relations between the Gulf states and Washington to an unprecedented low. The extraordinary flow of Russian wealth to Dubai, just as the US and Europe try to strangle Putin’s economy, has inflamed things further.
Add to that the still-sputtering talks between Washington and Tehran, which could see sanctions reprieves in return for Iran returning to the Obama-era nuclear deal, and there are clear signs of a faltering friendship – with the potential to rewrite the geopolitics of the region.
Sunday 3 April 2022
Oil Prices Don’t Fully Reflect Russian Supply Risks, Says Vitol - Bloomberg
Oil Prices Don’t Fully Reflect Russian Supply Risks, Says Vitol - Bloomberg
Oil prices have fallen to levels that don’t reflect the risk of disruptions to Russian exports or the ability of China to keep the coronavirus pandemic under control, according to the world’s biggest independent crude trader.
While Brent surged to almost $140 a barrel soon after Russia’s attack on Ukraine in late February, it sunk 13% last week to around $104. That was due to the U.S. announcing an unprecedented release of strategic reserves to tame fuel prices and virus cases rising in China.
Those developments overshadowed the potential for a drop in oil from Russia over the coming months. Traders, shippers, insurers and bankers are wary of taking on Russian barrels as Western governments isolate and sanction Moscow for its invasion.
“Oil feels cheaper than most would’ve predicted,” Mike Muller, Vitol Group’s head of Asia, said Sunday on a podcast produced by Dubai-based consultant and publisher Gulf Intelligence. “Oil prices could be higher given the risk of disruption of supplies from Russia. But people are still lost figuring out those numbers.”
Oil prices have fallen to levels that don’t reflect the risk of disruptions to Russian exports or the ability of China to keep the coronavirus pandemic under control, according to the world’s biggest independent crude trader.
While Brent surged to almost $140 a barrel soon after Russia’s attack on Ukraine in late February, it sunk 13% last week to around $104. That was due to the U.S. announcing an unprecedented release of strategic reserves to tame fuel prices and virus cases rising in China.
Those developments overshadowed the potential for a drop in oil from Russia over the coming months. Traders, shippers, insurers and bankers are wary of taking on Russian barrels as Western governments isolate and sanction Moscow for its invasion.
“Oil feels cheaper than most would’ve predicted,” Mike Muller, Vitol Group’s head of Asia, said Sunday on a podcast produced by Dubai-based consultant and publisher Gulf Intelligence. “Oil prices could be higher given the risk of disruption of supplies from Russia. But people are still lost figuring out those numbers.”
#UAE Developer FAM Holding Plans #AbuDhabi Second Market Listing - Bloomberg
UAE Developer FAM Holding Plans Abu Dhabi Second Market Listing - Bloomberg
FAM Holding, a United Arab Emirates-based property developer with a portfolio of $545 million, plans to list its shares on Abu Dhabi stock exchange’s second market, joining a steady stream of companies tapping the nation’s bourses.
The company has been converted into a private joint-stock firm with a capital base of 50 million dirhams ($14 million), according to a statement. FAM Holding said it expects to receive the final approval “shortly” from the Abu Dhabi Securities Exchange for the listing.
Stock market listings have picked up in the UAE and Saudi Arabia, in large part because of the jump in oil prices and strong demand from investors. Abu Dhabi and Dubai have been selling stakes in state-owned firms and encouraging private and family-owned businesses to list on the stock markets.
The second market in Abu Dhabi is a platform for private joint stock companies to list and so far about eight companies trade on it, including some controlled by International Holdings Co., the UAE’s biggest listed firm by market value.
FAM Holding mainly operates in the UAE sheikdom’s of Sharjah, Ajman and Ras Al Khaimah.
FAM Holding, a United Arab Emirates-based property developer with a portfolio of $545 million, plans to list its shares on Abu Dhabi stock exchange’s second market, joining a steady stream of companies tapping the nation’s bourses.
The company has been converted into a private joint-stock firm with a capital base of 50 million dirhams ($14 million), according to a statement. FAM Holding said it expects to receive the final approval “shortly” from the Abu Dhabi Securities Exchange for the listing.
Stock market listings have picked up in the UAE and Saudi Arabia, in large part because of the jump in oil prices and strong demand from investors. Abu Dhabi and Dubai have been selling stakes in state-owned firms and encouraging private and family-owned businesses to list on the stock markets.
The second market in Abu Dhabi is a platform for private joint stock companies to list and so far about eight companies trade on it, including some controlled by International Holdings Co., the UAE’s biggest listed firm by market value.
FAM Holding mainly operates in the UAE sheikdom’s of Sharjah, Ajman and Ras Al Khaimah.
#Oman Raises $4 Billion in Loan as S&P Raises Credit Rating - Bloomberg
Oman Raises $4 Billion in Loan as S&P Raises Credit Rating - Bloomberg
Oman raised $4 billion in financing from regional and international lenders last month, according to data compiled by Bloomberg.
The seven-year funding will be used for general sovereign financing and refinancing, and more than 20 banks participated in the facility, according to the data. Click here for details on the financing.
Oman has implemented a series of reforms to balance its budget and lower its debt, including the introduction of value-added tax last year. The sultanate’s finance ministry in January projected a budget deficit of $3.9 billion for this year, based on oil prices at $50 a barrel.
Oil’s surge on the back of Russia’s invasion of Ukraine has pushed crude above the break-even level for almost all the Middle East’s producers, raising the prospect of significant budget surpluses for even the weakest economies if prices remain high. Oman plans to use the windfall to trim its debt and boost spending on projects, its ruler said last month.
S&P Global Ratings on Friday raised Oman’s credit ratings by one notch to BB-, with a stable outlook. It cited higher oil prices, rising hydrocarbon production, and the government’s fiscal reform program that are improving Oman’s fiscal and external trajectory.
The rating agency said it expects the country’s net debt to reach 12% of gross domestic product in 2025 compared with an earlier forecast of above 30%.
Oman raised $4 billion in financing from regional and international lenders last month, according to data compiled by Bloomberg.
The seven-year funding will be used for general sovereign financing and refinancing, and more than 20 banks participated in the facility, according to the data. Click here for details on the financing.
Oman has implemented a series of reforms to balance its budget and lower its debt, including the introduction of value-added tax last year. The sultanate’s finance ministry in January projected a budget deficit of $3.9 billion for this year, based on oil prices at $50 a barrel.
Oil’s surge on the back of Russia’s invasion of Ukraine has pushed crude above the break-even level for almost all the Middle East’s producers, raising the prospect of significant budget surpluses for even the weakest economies if prices remain high. Oman plans to use the windfall to trim its debt and boost spending on projects, its ruler said last month.
S&P Global Ratings on Friday raised Oman’s credit ratings by one notch to BB-, with a stable outlook. It cited higher oil prices, rising hydrocarbon production, and the government’s fiscal reform program that are improving Oman’s fiscal and external trajectory.
The rating agency said it expects the country’s net debt to reach 12% of gross domestic product in 2025 compared with an earlier forecast of above 30%.
DEWA announces increase in number of IPO shares offered to retail investors
DEWA announces increase in number of IPO shares offered to retail investors
Dubai Electricity and Water Authority (DEWA) today announced that, following approval from the UAE Securities and Commodities Authority (SCA), it had exercised its right to increase the number of shares offered in the First Tranche (Retail Tranche) of its Initial Public Offering (IPO).
Following significant demand and oversubscription from retail investors, the Government of Dubai - as the selling shareholder - decided to increase the size of the Retail Tranche from 260 million shares to 760 million shares.
This means the number of shares offered in the DEWA IPO has increased from 8.5 billion ordinary shares to 9 billion ordinary shares, which would result in a free float of 18 percent of DEWA's share capital, with the Government of Dubai continuing to own 82 percent of DEWA's share capital.
Based on the previously announced price range of AED2.25 to AED2.48 per share, the Retail Tranche will now be between AED1.71 billion and AED1.88 billion (US$ 465.62 - US$ 513.22 million).
Including investors that participated in the Third Tranche (DEWA Eligible Employees), retail investors will represent 9.2 percent of the total upsized deal.
The subscription period for the DEWA IPO remains unchanged and will close on 2nd April 2022, for UAE retail investors and on 5th April 2022 for qualified domestic and international institutional investors.
DEWA is expected to be listed on the Dubai Financial Market (DFM) on or around 12th April 2022.
Dubai Electricity and Water Authority (DEWA) today announced that, following approval from the UAE Securities and Commodities Authority (SCA), it had exercised its right to increase the number of shares offered in the First Tranche (Retail Tranche) of its Initial Public Offering (IPO).
Following significant demand and oversubscription from retail investors, the Government of Dubai - as the selling shareholder - decided to increase the size of the Retail Tranche from 260 million shares to 760 million shares.
This means the number of shares offered in the DEWA IPO has increased from 8.5 billion ordinary shares to 9 billion ordinary shares, which would result in a free float of 18 percent of DEWA's share capital, with the Government of Dubai continuing to own 82 percent of DEWA's share capital.
Based on the previously announced price range of AED2.25 to AED2.48 per share, the Retail Tranche will now be between AED1.71 billion and AED1.88 billion (US$ 465.62 - US$ 513.22 million).
Including investors that participated in the Third Tranche (DEWA Eligible Employees), retail investors will represent 9.2 percent of the total upsized deal.
The subscription period for the DEWA IPO remains unchanged and will close on 2nd April 2022, for UAE retail investors and on 5th April 2022 for qualified domestic and international institutional investors.
DEWA is expected to be listed on the Dubai Financial Market (DFM) on or around 12th April 2022.
#UAE banks’ Q1-2022 results will reinforce recent asset gains and profitability | Banking – Gulf News
UAE banks’ Q1-2022 results will reinforce recent asset gains and profitability | Banking – Gulf News
UAE banks could report strong profit growth in the first quarter of 2022 with a continued improvement in margins, asset quality and gains in operational efficiencies.
The strong recovery in the operating conditions in the UAE economy will be reflected in bank earnings, matched by lower loan loss provisions and improving loan yields despite sluggish loan growth.
The top 10 UAE banks accounting for nearly 80 per cent of banking assets in the country had reported an aggregate net income of Dh37.8 billion in 2021, 48.6 per cent higher year-on-year, mainly driven by higher operating income (+5.2 per cent) along with lower impairments (-30.1 per cent).
While the impact of declining operating costs and loan loss provisions is expected to directly reflect on net profits of banks in the upcoming results, the decision by the UAE Central Bank to continue some elements of its Targeted Economic Support Programme (TESS) will likely support loan growth.
UAE banks could report strong profit growth in the first quarter of 2022 with a continued improvement in margins, asset quality and gains in operational efficiencies.
The strong recovery in the operating conditions in the UAE economy will be reflected in bank earnings, matched by lower loan loss provisions and improving loan yields despite sluggish loan growth.
The top 10 UAE banks accounting for nearly 80 per cent of banking assets in the country had reported an aggregate net income of Dh37.8 billion in 2021, 48.6 per cent higher year-on-year, mainly driven by higher operating income (+5.2 per cent) along with lower impairments (-30.1 per cent).
While the impact of declining operating costs and loan loss provisions is expected to directly reflect on net profits of banks in the upcoming results, the decision by the UAE Central Bank to continue some elements of its Targeted Economic Support Programme (TESS) will likely support loan growth.
