#Dubai owner of P&O Ferries hails management’s ‘amazing job’ over sackings | Financial Times

Dubai owner of P&O Ferries hails management’s ‘amazing job’ over sackings | Financial Times

The head of the Dubai-based group that owns P&O Ferries has insisted it is too late to reverse the decision to sack 800 sailors, as he praised its management for doing an “amazing job” in restructuring the UK company. 

Speaking to the Financial Times on the sidelines of the World Economic Forum in Davos this week, Sultan Ahmed bin Sulayem, the chair and chief executive of DP World, expressed irritation at the way the UK government turned on P&O after the company announced in March that it would dismiss 800 workers without consultation. 

Sulayem said the decision was taken by the P&O board without input from its Dubai parent, and the move could not be reversed. 

“We said many times, [the UK government] can’t do anything now because [the P&O decision] is in the past,” he said, stressing the company’s defence that its two available options were to switch to a cheaper workforce or cease operating.

European, Middle Eastern & African Stocks - Bloomberg #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #Kuwait #Israel #SaudiArabia #Qatar close

Moody’s affirms #Kuwait ‘A1’ rating

Moody’s affirms Kuwait ‘A1’ rating

Moody’s Investors Service (“Moody’s”) affirmed the Government of Kuwait’s long-term local and foreign currency issuer ratings at A1. The outlook remains stable.

The decision to affirm the ratings is underpinned by Moody’s assessment that Kuwait’s balance sheet and fiscal buffers will remain strong for the foreseeable future, which preserve macroeconomic and external stability and anchor the credit profile. Balanced against this key credit strength is the persistently challenging political environment that limits the prospects for reforms that would reduce the vulnerability of the economy and government finances to long-term carbon transition risks.

The stable outlook reflects balanced risks to the ratings. Effective implementation of measures to reduce the government’s exposure to oil revenue and diversify the economy, which Moody’s does not currently factor into its baseline assumptions for at least the next two years, may raise the resilience of Kuwait’s credit profile to oil price fluctuations. By contrast, accelerating global momentum towards carbon transition that lowers the demand for and price of oil, in the absence of reforms including the passage of legislation to expand the government’s financing options, may reintroduce liquidity risks and weigh on the credit profile longer term. Kuwait’s local and foreign currency country ceilings remain unchanged at Aa2.

The narrower-than-average two-notch gap between the local currency ceiling and the sovereign rating reflects the country’s stable balance of payments through episodes of oil price volatility, against the economy’s exposure to a key revenue source and a challenging domestic political environment that constrains reform and diversification prospects. The zero-notch gap between the foreign currency ceiling and local currency ceiling reflects very low transfer and convertibility risks, given the country’s very large net external creditor position that includes ample foreign exchange reserves held by the central bank.

Borrowers in #UAE, Gulf face painful back-to-back rate hikes | Banking – Gulf News

Borrowers in UAE, Gulf face painful back-to-back rate hikes | Banking – Gulf News

UAE borrowers will face another sharp rise in interest rates from June as the US Federal Reserve prepares for a 50 basis point hike. This could be repeated in July as well.

The Fed’s May meeting minutes showed officials are resolved to raising interest rates aggressively to curb inflation despite fears the US may suffer a recession. The minutes show officials willing to lift Fed funds rate by 50 bps in June and July after May’s 50 bps hike.

“We expect Fed will raise (rates) to 2.75-3 per cent by early next year,” said Mansoor Mohiuddin, Chief Economist at Bank of Singapore. “We think it is too soon for Fed to shift from 50 bps to 25 bps hikes.”

The UAE and other GCC countries are likely to follow the Fed’s tightening cycle to maintain exchange rate stability due to the currencies’ peg to the dollar.

#Qatar's Commercial Bank keen to issue green bonds, CEO says | Reuters

Qatar's Commercial Bank keen to issue green bonds, CEO says | Reuters

The Commercial Bank of Qatar (CBQ) is keen to issue green bonds if it can ensure the money is used for projects that comply fully with green credentials, Chief Executive Officer Joseph Abraham told a conference in Doha on Sunday.

“There's a huge pool of investor funds which are available, and I think if you are a credible institution with a credible track record and proper governance around it, automatically your bond will be effective," Abraham said.

Qatar's regulators and the stock market are keen on environmental, social and governance (ESG) matters, and the bank's own management and board are keen to improve CBQ's ESG credentials, he added.

Kipco Sees Qurain Deal This Year as S&P Puts It on CreditWatch - Bloomberg

Kipco Sees Qurain Deal This Year as S&P Puts It on CreditWatch - Bloomberg

Kuwait Projects Co. said it expects to complete a takeover of Qurain Petrochemical Industries Co. this year, after S&P Global Ratings said it would struggle to improve its financial position if the deal fell through.

“In parallel with the management’s efforts to secure the necessary funding to meet our obligations and maintain our financial standing, we continue to work towards successfully closing the merger with QPIC,” said Eman Al Awadhi, group senior vice president for corporate communications & investor relations at Kuwait Projects.

“With the due diligence process well underway, the merger is progressing according to the set timeline and we are confident that it will be completed before year-end,” she said in a statement.

Kuwait Projects, also known as Kipco, and Qurain Petrochemical in March signed an agreement to assess a potential combination that would create a firm with a combined market value of about $2.7 billion. Kipco is an investment firm focusing on the Middle East and North Africa.

#Qatar central bank governor expects GDP growth of 3.5% in 2022 | Reuters

Qatar central bank governor expects GDP growth of 3.5% in 2022 | Reuters

Qatar's gross domestic product (GDP) should grow 3.5% in 2022, Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al-Thani told a conference on Sunday in Doha.

The energy-rich Gulf emirate plans to start licensing financial technology companies soon, he added.

Fitch Ratings in April forecast Qatar's GDP would grow 3.2% in 2022, from 1.6% in 2021, reflecting increased output from the soccer World Cup that the country is hosting in November and December and the post-pandemic recovery.

#AbuDhabi state holding firm ADQ to allocate $10 billion for investments with Egypt, Jordan | Reuters

Abu Dhabi state holding firm ADQ to allocate $10 billion for investments with Egypt, Jordan | Reuters

Abu Dhabi state holding firm ADQ will allocate $10 billion in investment for projects with Egypt and Jordan, the United Arab Emirates' state news agency WAM reported on Sunday, citing the Industry and Advanced Technology Minister Sultan Al Jaber.

ADQ has become the leading vehicle for outbound investments from Abu Dhabi, managing about $110 billion in assets, according to Global SWF. It acquired a 45% stake in commodities trader Louis Dreyfus Co (LDC)in 2021.

#Qatar Exports Surge as Demand for Gas Climbs on Ukraine War - Bloomberg

Qatar Exports Surge as Demand for Gas Climbs on Ukraine War - Bloomberg

Qatar’s exports soared in April as the world’s top liquefied natural gas exporter benefits from a surge in demand after Russia’s war in Ukraine.

Total exports amounted to 43.5 billion riyals ($11.9 billion) compared with 21 billion riyals year ago, according to a statement. That resulted in a trade surplus of 34.2 billion riyals in the month.

Europe is racing to find alternatives to gas from Russia -- the continent’s biggest supplier -- after the country’s invasion of Ukraine. Imports of liquefied natural gas from Qatar and the US, the world’s largest exporters, are a key part of that solution.

Several senior European Union officials -- including the bloc’s top diplomat, Josep Borrell, and Germany’s Economic Minister Robert Habeck -- have traveled to Qatar in the past months to discuss gas supplies.

China was the top destination of Qatar’s exports in April with close to 6.6 billion riyals, followed by India and Japan.

European, Middle Eastern & African Stocks - Bloomberg #Kuwait #Israel #SaudiArabia #Qatar mid-session

European, Middle Eastern & African Stocks - Bloomberg #Kuwait #Israel #SaudiArabia #Qatar mid-session