#Qatar pledges to invest £10bn in UK over next five years | Financial Times

Qatar pledges to invest £10bn in UK over next five years | Financial Times

Qatar has pledged to invest £10bn in the UK, including the technology, healthcare, infrastructure and clean energy sectors, as British government steps up its efforts to woo sovereign wealth fund investment from oil-rich Gulf states. 

Sheikh Mohammed bin Abdulrahman Al-Thani, the Gulf state’s foreign minister, told the Financial Times that the funds would be channelled through the Qatar Investment Authority over the next five years. 

“We hope this will bring a big deal of opportunities to the UK and Qatar in the near future,” said Sheikh Mohammed, who is chair of the QIA, which has an estimated $450bn under management. 

“Especially in the areas of technology, fintech, sustainability, there’s great potential with zero-net happening,” he added, referring to the UK’s plans to cut the UK’s net carbon emissions to zero by 2050.

#Saudi targets reserves not falling below set GDP level -finance minister | Reuters

Saudi targets reserves not falling below set GDP level -finance minister | Reuters

Saudi Arabia's policy on fiscal sustainability would ensure that reserves do not fall below a certain percentage level of the country's gross domestic product, its finance minister said.

The world's biggest crude exporter, whose economy is estimated at $1 trillion, said in its budget for 2022 that the Fiscal Sustainability Programme aims to de-couple the economy from oil price fluctuations, realising several economic benefits for the non-oil economy and the private sector.

"We are at a final stages of designing our fiscal sustainability policy," Minister of Finance Mohammed al-Jadaan told Reuters on the sidelines of the World Economic Forum.

"According to that policy, our reserves shall not fall below a certain percentage level of GDP. That figure would be in the double digits," he added.

Jadaan said excess money can go towards the Public Investment Fund (PIF), Saudi Arabia's $600 billion sovereign wealth fund, and the National Development Fund (NDF).

Oil near flat after choppy trade; U.S. says export ban not ruled out | Reuters

Oil near flat after choppy trade; U.S. says export ban not ruled out | Reuters

Oil prices were near flat on Tuesday after choppy trade as tight supply worries offset concerns over a possible recession and China's COVID-19 curbs.

Brent crude rose 14 cents to settle at $113.56 a barrel. U.S. West Texas Intermediate (WTI) crude fell 52 cents to settle at $109.77 a barrel.

Oil has surged this year with Brent hitting $139 in March, the highest since 2008, after Russia's invasion of Ukraine exacerbated supply concerns.

Prices fell on Tuesday after U.S. Energy Secretary Jennifer Granholm said U.S. President Joe Biden had not ruled out using export restrictions to ease soaring domestic fuel prices.

"Initially the assumption is that is going to reduce the prices for products in the United States," said Phil Flynn, an analyst at Price Futures Group.

Business of Luxury lessons: the rise of the Middle East and hope for sustainability | Financial Times

Business of Luxury lessons: the rise of the Middle East and hope for sustainability | Financial Times

“The new Hong Kong is Dubai. And next will be Saudi Arabia,” Gildo Zegna, chief executive of Italian luxury group Zegna, observed to FT editor Roula Khalaf on stage at last week’s Financial Times Business of Luxury Summit. 

Zegna, which listed on the NYSE combining with a US special purpose acquisition company in December, and owns both the Zegna brand and Thom Browne, is one of several luxury companies seeing a flurry of spending in the region thanks to rising oil prices, strong economic growth and a return to shopping locally. For example at Richemont, sales in the Middle East and Africa for the year ending March 31 increased 53 per cent from the previous year to €1.4bn; meaning the region has surpassed Japan as the group’s fourth-largest market. 

Though only a small part of luxury brands’ overall revenues, the region is one of the “glimmers of hope” in an otherwise extremely challenging economic environment, said Neil Shearing, chief economist at Capital Economics, speaking on a panel moderated by the FT’s chief economics commentator Martin Wolf. “It is the only place you can point to that they are doing better than before.” 

The Gulf Cooperation Council countries, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, are set to see a 6.1 per cent increase in gross domestic product in 2022, according to the Mitsubishi UFJ Financial Group.

#Qatar Investment Authority cannot exit Russian market | Reuters

Qatar Investment Authority cannot exit Russian market | Reuters

The Qatar Investment Authority cannot exit the Russian market and is waiting to assess its position there because of the Ukraine crisis, one of the sovereign wealth fund's chief investment officers said on Tuesday.

Moscow placed restrictions on foreign investors trading Russian assets in March, saying it wanted to ensure decisions to exit were considered and not driven by political pressure, after Russia sent troops into Ukraine. read more

"We can't do much in Russia...We have to really assess where to stand on those opportunities there. I think it is a very difficult position for us, being an investor with one name,” said Ahmed Ali Al-Hammadi, QIA’s chief investment officer for Europe, Russia and Turkey said in a panel discussion at the World Economic Forum.

QIA owns a 19% stake in Russian state-backed oil giant Rosneft, which Al-Hammadi said is the fund's only holding "of significance" in Russia.

#SaudiArabia Says It’s Done All It Can For the Global Oil Market - Bloomberg

Saudi Arabia Says It’s Done All It Can For the Global Oil Market - Bloomberg

Saudi Arabia’s foreign minister said there’s nothing more the kingdom can do to tame oil markets, implying that the world’s biggest crude exporter has no plan to accelerate its gradual production increases.

“There is enough energy in the market,” said Prince Faisal bin Farhan, speaking on a panel at the World Economic Forum in Davos, Switzerland. “We have to be sure that while we transition to a renewable future, there is enough energy in the market. The kingdom has done what it can.”

Prince Faisal was responding to a question about what the US, which has put pressure on the Saudis and other members of OPEC+ to pump faster, could offer Riyadh in return for more crude. His comments reiterated those of Saudi Energy Minister Abdulaziz bin Salman, who said in an interview this month that a refining crunch was to blame for soaring fuel prices.

“It’s much more complex than just bringing barrels to the market,” Prince Faisal said. “Our assessment is that actually oil supply right now is relatively in balance.”

Oil prices have soared almost 70% in the past year to almost $115 a barrel, first as demand rebounded from the coronavirus pandemic and then after Russia invaded Ukraine.

Etihad CEO Says India Sales Higher, Optimistic on China Rebound - Bloomberg

Etihad CEO Says India Sales Higher, Optimistic on China Rebound - Bloomberg

Etihad Airways said bookings for its India flights are edging higher as the south Asian nation loosens coronavirus curbs, adding to a surge in demand led by the Gulf carrier’s destinations in Europe and North America.

Sales in China are also expected to jump once the latest lockdowns ease, Chief Executive Officer Tony Douglas said Tuesday in an interview at the Global Aerospace Summit in Abu Dhabi, where Etihad is based.

“Everything that gets introduced gets very full very quickly,” he said of the Indian market. “When China comes back online and other parts of the Far East, I will have a go at confidently predicting, they’ll go off like a fire hydrant.”

Etihad’s aircraft are flying 77% full across the network, around 2 percentage points higher than the occupancy level in May 2019, before the pandemic struck. Flights to cities including London, Paris, New York and Geneva are “basically full,” according to Douglas, who said last month that the termination of travel restrictions had lifted sales 800% over 72 hours in some markets.

Most Gulf bourses in red on growth worries; #Saudi gains | Reuters

Most Gulf bourses in red on growth worries; Saudi gains | Reuters

Most Gulf stock markets ended lower on Tuesday, tracking a retreat in global peers on fears of slowing economic growth, with only the Saudi index bucking the trend.

In Abu Dhabi, the index (.FTFADGI) dropped 2.5%, falling the most in the region, dragged down by a 3% slide in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD).

Separately, Abu Dhabi-headquartered petrochemicals firm Borouge said on Monday it secured seven cornerstone investors, including India's wealthy Adani family, for its $2 billion initial public offering. read more

Gulf oil producers are following in the footsteps of Abu Dhabi with plans to raise tens of billions of dollars through sales of stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors. read more

Saudi Arabia's benchmark index (.TASI) gained 0.5%, ending three sessions of losses, helped by a 1.7% rise in oil behemoth Saudi Aramco (2222.SE).

The Saudi stock market inched higher after month-long price corrections as investors returned to buying, said Farah Mourad, senior market analyst of XTB MENA.

"The market is benefiting from the positive economic forecasts for the country and could see traders snap up buying opportunities."

Dubai's main share index (.DFMGI) retreated 1.5%, hit by a 3.2% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 1.5% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

The Qatari index (.QSI) fell 0.4%, with the Gulf's largest lender Qatar National Bank (QNBK.QA) losing 1%.

Shares in the region lost ground in recent weeks amid anxiety about fast-rising inflation that will drive a sharp increase in interest rates and put global economic growth at risk.

Outside the Gulf, Egypt's blue-chip index (.EGX30) was down 1%, weighed down by a 3.5% decline in Fawry for Banking Technology and Electronic Payment (FWRY.CA)

According to Mourad, an atmosphere of caution remained and the market could see some increases if international investors return to buy the dip.

Raja Al Gurg succeeds her father at helm of Easa Saleh Al Gurg Group

Raja Al Gurg succeeds her father at helm of Easa Saleh Al Gurg Group

UAE businesswoman Raja Al Gurg has been appointed the new chairwoman of Easa Saleh Al Gurg Group, the Dubai-based multidivisional conglomerate. She will also retain her position as group managing director.

Ms Al Gurg's sisters also take on new responsibilities.

Muna Al Gurg becomes vice-chairwoman, along with her role as director of retail, while Maryam Al Gurg will assume the role of director at ESAG and member of the board of directors, the company said in a statement on Tuesday.

The appointment, which is in line with the group’s pre-approved succession planning charter following the death of founder Easa Al Gurg in March, ensures a smooth business transition and continuation of ESAG’s legacy built and shaped by the late chairman, the company said.

#Saudi Utility Marafiq Hires HSBC, Riyad Capital for $1.2 Billion IPO - Bloomberg

Saudi Utility Marafiq Hires HSBC, Riyad Capital for $1.2 Billion IPO - Bloomberg

Saudi Arabia’s Power and Water Utility Co. for Jubail and Yanbu hired HSBC Holdings Plc and Riyad Capital to manage its initial public offering, according to people familiar with the matter, as the kingdom’s ambitious privatization program gathers pace.

The company is seeking to raise as much as $1.2 billion by selling a 30% stake in the second half of the year, the people said, asking not to be identified because the information is private. Its shareholders include the Public Investment Fund, Saudi Arabian Oil Co. and Saudi Basic Industries Corp.

The utility, known as Marafiq, first floated the idea of an IPO in 2017 and hired GIB Capital to advise on the potential listing and power-plant acquisitions. The most recent attempt comes as the kingdom offloads stakes in state assets, including Saudi Aramco, to diversify its oil-dominated economy. The government has also sold stakes in the stock exchange and flour mills.

Representatives for Marafiq, HSBC and Riyad Capital didn’t immediately respond to requests for comment.

Marafiq is the main power provider for the industrial cities of Jubail and Yanbu, according to its website. It supplies energy for oil and petrochemical facilities owned by companies including Aramco and Sabic.

Oil rises as tight supply counters economy fears and China curbs | Reuters

Oil rises as tight supply counters economy fears and China curbs | Reuters

Oil rose on Tuesday, recovering earlier losses, as tight global supply and an expected pick-up in fuel demand during the U.S. summer driving season balanced concerns over a possible recession and China's COVID-19 curbs.

In a step that analysts say will further tighten the market, the European Union is moving closer to agreeing a ban on Russian oil imports. Such an embargo is likely to be agreed "within days", Germany's economy minister said on Monday. read more

Another source of support is U.S. gasoline demand. U.S. Memorial Day weekend travel is expected to be the busiest in two years as more drivers hit the road and shake off coronavirus lockdowns despite high pump prices. read more

"The oil market remains caught between fears of recession and the consequences of the zero-COVID policy in China on the one hand, and tight supply, especially of oil products," Commerzbank analyst Carsten Fritsch said in a report.

Brent crude rose 44 cents, or 0.4%, to $113.86 a barrel by 1110 GMT. U.S. West Texas Intermediate (WTI) crude added 36 cents, or 0.3%, to $110.65.

BP Moves Ahead on Clean Hydrogen Projects with #UAE Energy Firms Adnoc, Masdar - Bloomberg

BP Moves Ahead on Clean Hydrogen Projects with UAE Energy Firms Adnoc, Masdar - Bloomberg

BP Plc is moving ahead with a plan to develop a clean hydrogen project with two of the UAE’s biggest energy firms as oil producers seek to develop alternative fuels that will help limit the emissions contributing to climate change.

Abu Dhabi National Oil Co. and BP are starting the design phase for a project planned at Teeside in the UK and will also study developing a similar facility in the United Arab Emirates, according to a statement. It would be Adnoc’s first investment in the UK, according to the statement from the Abu Dhabi government media office.

BP will also be looking at working with Masdar, Abu Dhabi’s renewable energy developer, on another potential green hydrogen project at Teeside.

Most Gulf bourses decline amid wider selloff; #Saudi gains | Reuters

Most Gulf bourses decline amid wider selloff; Saudi gains | Reuters

Most stock markets in the Gulf fell on Tuesday, tracking a pullback in global peers on fears of slowing economic growth, although the Saudi index bucked the trend to trade higher.

Asian and European equities were sharply lower and futures pointed to a weaker open for Wall Street after an earnings warning from Snap Inc dampened the positive sentiment of the last few trading days.

In Abu Dhabi, the index (.FTFADGI) dropped 1.2%, hit by a 1.3% fall in United Arab Emirates-based telecoms company e& (ETISALAT.AD).

Separately, Abu Dhabi-headquartered petrochemicals firm Borouge said on Monday it secured seven cornerstone investors, including India's wealthy Adani family for its $2 billion initial public offering. read more

Gulf oil producers are following in the footsteps of Abu Dhabi with plans to raise tens of billions of dollars through sales of stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors. read more

Dubai's main share index (.DFMGI) retreated 1.6%, dragged down by a 2.9% fall in sharia-compliant lender Dubai Islamic Bank (DISB.DU) and a 2.5% decrease in blue-chip developer Emaar Properties (EMAR.DU).

The Qatari index (.QSI) eased 0.3%, with petrochemical maker Industries Qatar (IQCD.QA) losing 0.5% and Qatar Islamic Bank (QISB.QA) dropping 0.4%.

Oil prices were caught between worries over a possible global downturn and the prospect of higher fuel demand from the U.S. summer driving season and Shanghai's plans to reopen after a two-month coronavirus lockdown.

Bucking the trend, Saudi Arabia's benchmark index (.TASI) gained 0.6%, on track to end three sessions of losses, thanks to a 0.7% increase in Al Rajhi Bank (1120.SE).

Oil drops on recession fears and China COVID curbs | Reuters

Oil drops on recession fears and China COVID curbs | Reuters

Oil fell by almost $1 on Tuesday as concerns over a possible recession and China's COVID-19 curbs outweighed tight global supply and expectations of a pick-up in fuel demand with the U.S. summer driving season.

Investment banks including UBS and Goldman Sachs have cut their 2022 China growth outlooks. The head of the International Monetary Fund, meanwhile, said she does not expect a recession for major economies but cannot rule it out.

"Downgraded China GDP growth forecasts and increasing worries about wider virus restrictions in Beijing have pushed oil prices lower," said Jeffrey Halley, analyst at brokerage OANDA.

Brent crude fell 56 cents, or 0.5%, to $112.86 a barrel by 0815 GMT. U.S. West Texas Intermediate (WTI) crude dropped 72 cents, or 0.7%, to $109.57.

"Global economic growth is precipitously declining under the collective impact of rising interest rates, Chinese COVID flare-ups and the European war," said Tamas Varga of oil broker PVM.