Iran Has Its Eye on Russia-Sized Hole in the European Oil Market - Bloomberg

Iran Has Its Eye on Russia-Sized Hole in the European Oil Market - Bloomberg

Iran is aiming to fill the void left behind by Russia in the European oil market if the Middle Eastern country can secure a deal with world powers over its nuclear program.

The Islamic Republic’s state oil producer will try to win back customers in countries like Greece, Italy, Spain and Turkey in the event sanctions targeting its energy industry and economy are eased, according to people with knowledge of Iran’s strategy. At the end of the year, Europe will ban most of its member states from buying seaborne cargoes of Russian oil, creating uncertainty over supply.

Iran and Russia are both subject to aggressive economic sanctions levied by mainly western countries. European Union nations are set to cut most Russian crude starting Dec. 5 as punishment for that country’s war in Ukraine. The US has spearheaded ever-tightening sanctions over the past four years, trying to slow Iran’s nuclear program.

For Iran, the European focus could help it to cope with intensifying competition in its prized Asian market from an influx of discounted Russian cargoes.

Oil ends higher on U.S. response to Iran nuclear deal comments | Reuters

Oil ends higher on U.S. response to Iran nuclear deal comments | Reuters

Oil prices ended Wednesday higher after a volatile trading session on concerns that the United States will not consider additional concessions to Iran in its response to a draft agreement that would restore Tehran's nuclear deal - and potentially the OPEC member's crude exports.

Iran said it had received a response from the United States to the EU's "final" text for revival of Tehran's 2015 nuclear deal with major powers. read more

Brent crude settled up $1.00 to $100.22 while U.S. crude settled up $1.15 to $94.89 a barrel. Both benchmarks fell by more than $1 earlier in the session.

Oil was also supported after Saudi Arabia suggested this week that the Organization of the Petroleum Exporting Countries could consider cutting output, though bearish economic signals from central bankers and falling equities weighed.

Both crude oil benchmark contracts touched three-week highs earlier on Wednesday after the Saudi energy minister flagged the possibility of cutting production. read more

Most major Gulf bourses track energy prices higher | Reuters

Most major Gulf bourses track energy prices higher | Reuters

The Gulf region's most major stock markets closed higher on Wednesday as investors' risk appetite increased on rising oil prices.

Benchmark Brent oil climbed above $100 a barrel after Saudi Arabia suggested this week that OPEC could consider cutting output in response to poor liquidity in the crude futures market and fears about a global economic downturn. read more

Saudi Arabia's benchmark index (.TASI) added 0.2% with Saudi Aramco (2222.SE) trading 2% higher.

The kingdom's energy index (.TENI) gained 1.8% on Wednesday.

Abu Dhabi index (.FTFADGI) edged 0.2% lower, falling for an eighth session in nine as investors continued to book profits after the index hit an all-time high earlier this month.

Shares of International Holding Co (IHC.AD), the most valuable company on the Abu Dhabi bourse with a market capitalisation of around $170 billion, dropped 0.4%. The conglomerate has risen about 125% so far this year after it made 70 acquisitions at a total value of 10 billion dirhams ($2.72 billion) this year. read more

Dubai's main share index (.DFMGI) advanced 0.9% after its blue-chip stock Emaar Properties (EMAR.DU) jumped 3.3% to its biggest intraday gain in over a month.

The developer said on Tuesday its deal to sell Namshi will result in net profit of 628.7 million dirhams. The company earlier said it was selling fashion e-commerce venture Namshi to Noon, an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund. read more

The Qatari index (.QSI) rebounded 0.4%, snapping a three-day losing streak with petrochemical firms Industries Qatar (IQCD.QA) and Mesaieed Petrochemical (MPHC.QA) climbing 1.4% and 1.7%, respectively, on the back of rising gas prices.

The Qatari market returned to the positive side thanks to the higher natural gas prices, said Farah Mourad, senior market analyst of XTB MENA.

Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 0.3% lower extending losses for a second session.

The index, which is down more than 15% so far this year, has come under pressure because of a sharp slide in foreign portfolio investor holdings and rising costs of key commodity imports, especially since Russia's invasion of Ukraine.

Brent oil climbs above $100 a barrel on potential OPEC cuts | Reuters

Brent oil climbs above $100 a barrel on potential OPEC cuts | Reuters

Benchmark Brent oil climbed above $100 a barrel on Wednesday after Saudi Arabia suggested this week that OPEC could consider cutting output in response to poor liquidity in the crude futures market and fears about a global economic downturn.

Brent crude for October settlement traded up $1.07, or 1.1%, at $101.29 a barrel by 1158 GMT. U.S. crude was up 99 cents, or 1.1%, at $94.73.

Contracts for both crudes soared on Tuesday and touched three-week highs on Wednesday after Saudi Energy Minister Prince Abdulaziz bin Salman flagged the possibility of cutting production. read more

Sources at the Organization of the Petroleum Exporting Countries (OPEC) later told Reuters that any cuts by the producer group and its allies, known collectively as OPEC+, are likely to coincide with a return of Iranian oil to the market should Tehran secure a nuclear deal with world powers. read more

A U.S. official on Monday said that Iran had dropped some of its main demands in negotiations to resurrect a deal to rein in Tehran's nuclear programme. read more

Watch MAF HY22 Revenue AED 18 Billion - Bloomberg

Watch MAF HY22 Revenue AED 18 Billion - Bloomberg

Majid Al Futtaim is a leading operator of shopping malls across the Middle East, Africa, and Central Asia. The company's half year results showed a 15% increase in revenue to 18 billion dirhams. Meanwhile, there was a 73% sales increase in digital grocery retailing and a boost to hotels and other parts of its businesses driven by the 'Expo effect.' The CEO, Alain Bejjani, speaks with Manus Cranny in an exclusive interview on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

#SaudiArabia Nears Deal to Settle Billion-Dollar Metro Dispute - Bloomberg

Saudi Arabia Nears Deal to Settle Billion-Dollar Metro Dispute - Bloomberg

Saudi Arabia is set to pay contractors billions of dollars to resolve a dispute over the Riyadh metro, people familiar with the matter said, taking the long-delayed project one step closer to completion.

Two out of three consortia, which include Bechtel Group Inc. and Alstom SA, have already reached an agreement for the disputed payments, the people said, asking not to be identified as the information is private. The third group, which includes Italy’s Webuild SpA, is expected to sign a deal soon, they said.

Contractors working on the project were pursuing several billions of dollars in payments in total, with Bechtel asking for around $1 billion, Bloomberg has reported.

An agreement would mark a turning point in a dispute that has dragged on for years and hampered government efforts to upgrade the traffic-clogged Saudi capital. It would also help ease lingering concerns about the kingdom’s attitude toward contractor payments. 

#UAE health firm Burjeel plans #Saudi expansion as IPO nears | Reuters

UAE health firm Burjeel plans Saudi expansion as IPO nears | Reuters

United Arab Emirates healthcare provider Burjeel Holdings, established under VPS Healthcare, on Wednesday announced plans to expand into Saudi Arabia ahead of its initial public offering (IPO) later this year.

The company, which owns and operates hospitals and other healthcare facilities, will invest up to $1 billion in the kingdom by 2030 as part of a memorandum of understanding (MoU) signed with the Ministry of Investment that includes working with local institutions.

"It's a non-binding MoU but we are taking it seriously and I think the market is big. The potential is huge and we think that it is an achievable number," CEO Shamsheer Vayalil told Reuters by phone.

Burjeel is in talks to partner with public and private healthcare facilities, including hospitals, in Saudi Arabia, he said.

"Our deployment will be more towards capex and towards operating ... such assets and probably some refurbishment based on the condition of those assets that we are targeting right now."

#Qatar Investment Authority aims to invest $3 bln in Pakistan | Reuters

Qatar Investment Authority aims to invest $3 bln in Pakistan | Reuters

The Qatar Investment Authority aims to invest $3 billion in Pakistan, Qatar's Emiri Diwan said on Wednesday, lending support to the South Asian nation's cash-strapped economy.

Pakistan is in economic turmoil and faces a balance of payments crisis, with foreign reserves having dropped as low as $7.8 billion, barely enough for more than a month of imports. It is also contending with a widening current account deficit, depreciation of the rupee against the U.S. dollar and inflation that hit more than 24% in July.

"The Qatar Investment Authority announced its aspiration to invest $3 billion in various commercial and investment sectors in the Islamic Republic of Pakistan," the Emiri Diwan said, without giving details.

The announcement was made during a visit to Doha by Pakistan Prime Minister Shehbaz Sharif, who held official talks with Qatari Emir Sheikh Tamim bin Hamad al-Thani on Wednesday after a meeting with the QIA on Tuesday.

Top ten #UAE banks net income jumps 24.4% to $3.43bln

Top ten UAE banks net income jumps 24.4% to $3.43bln

The top ten UAE banks’ net income jumped 24.4% to AED12.6 billion ($3.43 billion) in the second quarter (Q2) driven by better asset quality, improved profitability and margins, said Alvarez & Marsal (A&M).

The country’s 10 largest listed banks are First Abu Dhabi Bank (FAB), Emirates NBD (ENBD), Abu Dhabi Commercial Bank (ADCB), Dubai Islamic Bank (DIB), Mashreq Bank (Mashreq), Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai (CBD), National Bank of Fujairah (NBF), National Bank of Ras Al-Khaimah (RAK) and Sharjah Islamic Bank (SIB).

Total interest income of the banks grew drastically by 19.5% QoQ (quarter-on-quarter) in Q2’22, boosted by higher interest income, said A&M, leading global professional services firm, in its latest United Arab Emirates Banking Pulse for Q2 2022.

#SaudiArabia’s Oil Exports Surged to a Fresh High in June - Bloomberg

Saudi Arabia’s Oil Exports Surged to a Fresh High in June - Bloomberg

Saudi Arabia’s oil exports reached $31 billion in June, the highest in at least six years, driven by a rally in prices and rising production.

Monthly crude exports topped more than $1 billion a day and jumped 94% year-on-year, the kingdom’s statistics office said on Wednesday. Second-quarter oil exports were more than $91 billion, or 80% of total exports. 

The world’s largest crude exporter started providing monthly oil-export data in 2016. 

 

Source: General Authority for Statistics

Oil averaging more than $100 a barrel this year has propelled Saudi Arabia’s economy to the fastest growing in the Group of 20, after it was hit hard by sinking crude prices in 2020. The kingdom’s budget surplus grew to 77.9 billion riyals ($21 billion) during the second quarter. 

The country’s top trading partner during June was China with exports reaching 21 billion riyals, followed by Japan, India, South Korea and the US. 

Total exports during the second quarter rose 85% compared with the same period in 2021 to nearly 430 billion riyals. 

Emirati conglomerate Majid Al Futtaim reports 18% rise in pre-tax earnings | Reuters

Emirati conglomerate Majid Al Futtaim reports 18% rise in pre-tax earnings | Reuters

Emirati retail conglomerate Majid Al Futtaim, which operates across the Middle East, Africa and Central Asia, reported on Wednesday an 18% rise in pre-tax earnings and said consumer spending habits were changing in response to high inflation.

Privately-held Majid Al Futtaim said earnings before interest, taxes, depreciation, and amortization in the first-half amounted to 1.9 billion dirhams ($517 million), up from 1.6 billion a year ago. Revenue rose 15% to 18 billion dirhams.

It did not disclose a net profit figure.

Chief Executive Alain Bejjani told Reuters by phone the results were helped by key markets the United Arab Emirates and Saudi Arabia where economic conditions are better than some of its other markets like Lebanon and Egypt.

Majid Al Futtaim owns shopping centres in five countries including UAE and Saudi Arabia and has over 450 franchised Carrefour stores in 16 countries.

Major Gulf bourses gain on rising oil prices | Reuters

Major Gulf bourses gain on rising oil prices | Reuters

Major stock markets in the Gulf rose in early trade on Wednesday, in response to a surge in oil prices in the previous session, with the Qatari index on track to end three sessions of losses.

Crude prices, a key catalyst for the Gulf's financial markets, jumped nearly 4% the previous day after the energy minister of Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), flagged the possibility the group would cut supply to balance a market he described as "schizophrenic". read more

Oil prices have dropped in recent weeks to around $95 per barrel from as high as $120 on fears of a Chinese economic slowdown and a recession in the West.

The benchmark index (.TASI) in the kingdom added 0.2%, led by a 0.8% increase in oil behemoth Saudi Aramco (2222.SE).

However, Saudi Arabian supermarket retailer BinDawood Holding (4161.SE) fell around 4% after it reported a fall in quarterly earnings.

Brent crude futures for October settlement were up 84 cents, or 0.83%, to $101.04 a barrel by 0820 GMT, after rising 3.9% on Tuesday.

Dubai's main share index (.DFMGI) gained 0.4%, bolstered by a 0.9% rise in blue-chip developer Emaar Properties (EMAR.DU).

Emaar Properties said on Tuesday Namshi deal will result in net profit of 628.7 million dirhams ($171.17 million).

On Saturday, Emaar said it is selling fashion e-commerce venture Namshi to Noon, an e-commerce company backed by Dubai billionaire Mohamed Alabbar and Saudi Arabian sovereign fund the Public Investment Fund (PIF). read more

Deal values Namshi at $335.2 million.

In Abu Dhabi, the index (.FTFADGI) added 0.1%, helped by a 0.1% gain in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD).

The Qatari index (.QSI) climbed 0.5%, with Qatar Islamic Bank (QISB.QA) putting on 0.8% and sharia-compliant lender Masraf Al Rayan (MARK.QA) trading 1.1% higher.

#Qatar Investment Authority in Celonis Funding Round at $13 Billion Valuation - Bloomberg

Qatar Investment Authority in Celonis Funding Round at $13 Billion Valuation - Bloomberg

Celonis, a software company based in Munich and New York, secured $1 billion in funding from backers including the Qatar Investment Authority to build out its business selling software that helps companies make their operations more efficient.

The company was valued at almost $13 billion as part of the round, which was sought amid rising demand for its data analysis products, Co-Chief Executive Officer Alex Rinke said in an interview. Worries about inflation and increasingly complex supply chains were driving new business, he said.

Sales doubled over the past year as shifts in the broader macro environment drive companies to improve their processes and find savings, Rinke said.

The company raised $1 billion a little over a year ago, in June 2021, at an $11 billion valuation.

Founded in 2011, Celonis is one of a number of companies developing “process mining” tools, which businesses use to discover inefficiencies in their operations that the human eye may not spot. For example, the technology can flag that a firm is double-paying an invoice due to a slight difference in spelling.

Rinke said some of the money raised could be used to acquire other businesses. Celonis completed its fourth acquisition in March, paying $100 million for a startup that expanded its services across Microsoft Corp. products.

The latest funding came as an extension of last year’s Series D investment round and included participation from Activant Capital, Neuberger Berman, Alta Park Capital and Commonfund, alongside existing backers.

In addition to the $400 million equity funding, Celonis also expanded its revolving credit facility to as much as $600 million led by KeyBanc Capital Markets, according to a statement.

Oil slips as fears of imminent OPEC+ output cut fade | Reuters

Oil slips as fears of imminent OPEC+ output cut fade | Reuters

Oil prices fell on Wednesday, taking a breather from a near 4% surge the previous day, on receding fears of an imminent output cut by the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+.

Global benchmark Brent crude futures fell 40 cents, or 0.4%, to $99.82 a barrel by 0337 GMT, after rising 3.9% on Tuesday.

The U.S. West Texas Intermediate crude futures contract was down 27 cents, or 0.29%, at $93.47 a barrel, having jumped 3.7% the previous day.

Both contracts soared on Tuesday after the energy minister of de facto OPEC leader Saudi Arabia flagged the possibility of supply cuts to balance a market it described as "schizophrenic", with the paper and physical markets becoming increasingly disconnected. read more

"While Abdulaziz bin Salman's comment may have achieved more than putting a floor under crude prices, we expect it to follow the law of diminishing returns, unless it is followed up by more signals or action from OPEC+ to restrain output," said Vandana Hari, founder of oil market analysis provider Vanda Insights.