Dubai-Based Blue Carbon Signs MOU With Zimbabwe on Carbon Credits From Landmass - Bloomberg
Blue Carbon, a Dubai-based company, signed a memorandum of understanding with Zimbabwe to generate carbon credits from about a fifth of the African country’s 150,000 square-mile landmass.
The planned deal, which Blue Carbon Chairman Sheikh Ahmed Dalmook Al Maktoum said may bring $1.5 billion of climate finance into the country, was announced on Friday in Harare, Zimbabwe’s capital.
The deal, based on forest protection and rehabilitation, is the latest foray into Africa by Blue Carbon. The company is already working to produce the offsets from 10% of Liberia’s land.
Saturday 30 September 2023
Oil Posts Strongest Quarter in More Than a Year Amid OPEC Cuts - Bloomberg
Oil Posts Strongest Quarter in More Than a Year Amid OPEC Cuts - Bloomberg
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Oil posted its largest quarterly rally since the initial jolt from the war in Ukraine as lower Russian fuel exports threaten to further tighten a market wrestling with OPEC+ production cuts.
Industry data released Friday show Moscow is planning almost no diesel exports next month in order to reduce domestic prices. The move sent European diesel futures rallying back above the psychologically key level of $1,000 a ton.
US benchmark crude futures cemented their biggest quarterly gain since the period ended in March 2022 on Saudi-led OPEC+ supply cuts and critically low stockpiles at the Cushing hub in the US. On Friday, West Texas Intermediate reversed its earlier gains and slipped to settle below $91, largely tracking the path of US equities.
Many of this week’s most significant oil-market moves have come away from headline prices. Key timespreads have exploded higher amid fears about the availability of US supplies. Meanwhile, gasoline’s premium over crude in the US has plunged in a potential sign that higher crude prices are starting to impinge on margins.
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Oil posted its largest quarterly rally since the initial jolt from the war in Ukraine as lower Russian fuel exports threaten to further tighten a market wrestling with OPEC+ production cuts.
Industry data released Friday show Moscow is planning almost no diesel exports next month in order to reduce domestic prices. The move sent European diesel futures rallying back above the psychologically key level of $1,000 a ton.
US benchmark crude futures cemented their biggest quarterly gain since the period ended in March 2022 on Saudi-led OPEC+ supply cuts and critically low stockpiles at the Cushing hub in the US. On Friday, West Texas Intermediate reversed its earlier gains and slipped to settle below $91, largely tracking the path of US equities.
Many of this week’s most significant oil-market moves have come away from headline prices. Key timespreads have exploded higher amid fears about the availability of US supplies. Meanwhile, gasoline’s premium over crude in the US has plunged in a potential sign that higher crude prices are starting to impinge on margins.
S&P upgrades #Oman to 'BB+' on firmer macroeconomic fundamentals | Reuters
S&P upgrades Oman to 'BB+' on firmer macroeconomic fundamentals | Reuters
S&P Global Ratings on Friday upgraded Oman's credit ratings, stating favourable oil sector dynamics coupled with higher non-hydrocarbon sector output to sustain real economic growth over 2023-2026.
S&P raised its long-term foreign and local currency sovereign credit ratings on Oman to "BB+" from "BB". It also upgraded its transfer and convertibility assessment to "BBB-" for the country.
Oman, a relatively small oil producer, is more sensitive than its hydrocarbon-rich Gulf neighbours to oil price swings.
"The upgrade reflects the improved resilience of the Omani economy to external shocks on the back of continued supportive oil sector prospects along with sovereign balance sheet deleveraging and broader structural reforms," S&P said in a statement.
The ratings agency now expects the country's GDP growth to average about 2% over 2023-2026 after a year of slowdown due to voluntary oil production cuts.
S&P Global Ratings on Friday upgraded Oman's credit ratings, stating favourable oil sector dynamics coupled with higher non-hydrocarbon sector output to sustain real economic growth over 2023-2026.
S&P raised its long-term foreign and local currency sovereign credit ratings on Oman to "BB+" from "BB". It also upgraded its transfer and convertibility assessment to "BBB-" for the country.
Oman, a relatively small oil producer, is more sensitive than its hydrocarbon-rich Gulf neighbours to oil price swings.
"The upgrade reflects the improved resilience of the Omani economy to external shocks on the back of continued supportive oil sector prospects along with sovereign balance sheet deleveraging and broader structural reforms," S&P said in a statement.
The ratings agency now expects the country's GDP growth to average about 2% over 2023-2026 after a year of slowdown due to voluntary oil production cuts.
Thursday 28 September 2023
#SaudiArabia Targets 70 Million International Tourists a Year - Bloomberg
Saudi Arabia Targets 70 Million International Tourists a Year - Bloomberg
Saudi Arabia has set itself the target of attracting 70 million international tourists a year by 2030, as it looks to accelerate an $800 billion plan to become a travel hotspot and one of the world’s most visited countries.
The kingdom has raised its goal from the previous one of 50 million visitors, Tourism Minister Ahmed Al Khateeb said in an interview. This year’s figure will end up being between 25 and 30 million, he said.
It’s “a very reasonable target” for the end of the decade given the sheer investment underway to create more resorts and a new airline to bring people to the country, he said.
Saudi Arabia, which until 2019 was largely closed off to tourists except Muslim pilgrims, is spending huge sums building hotels and resorts along the Red Sea coast. It’s also developing historical sites including the Al Ula desert region and Diriyah, the ancestral home of the Saudi ruling family.
The push for more holidaymakers is part of Crown Prince Mohammed bin Salman’s ambition to diversify the oil-dependent, $1.1 trillion economy. The de facto ruler wants tourism to account for 10% of gross domestic product by 2030, helping earn foreign currency from sources other than petroleum exports.
Saudi Arabia has set itself the target of attracting 70 million international tourists a year by 2030, as it looks to accelerate an $800 billion plan to become a travel hotspot and one of the world’s most visited countries.
The kingdom has raised its goal from the previous one of 50 million visitors, Tourism Minister Ahmed Al Khateeb said in an interview. This year’s figure will end up being between 25 and 30 million, he said.
It’s “a very reasonable target” for the end of the decade given the sheer investment underway to create more resorts and a new airline to bring people to the country, he said.
Saudi Arabia, which until 2019 was largely closed off to tourists except Muslim pilgrims, is spending huge sums building hotels and resorts along the Red Sea coast. It’s also developing historical sites including the Al Ula desert region and Diriyah, the ancestral home of the Saudi ruling family.
The push for more holidaymakers is part of Crown Prince Mohammed bin Salman’s ambition to diversify the oil-dependent, $1.1 trillion economy. The de facto ruler wants tourism to account for 10% of gross domestic product by 2030, helping earn foreign currency from sources other than petroleum exports.
#AbuDhabi group IHC sells out of two Adani companies | Financial Times
Abu Dhabi group IHC sells out of two Adani companies | Financial Times
Abu Dhabi conglomerate International Holding Company is to sell its stake in two of Indian tycoon Gautam Adani’s companies, in a blow to the business empire battling allegations of accounting fraud.
IHC announced in April 2022 that it was investing about $500mn each in renewables arm Adani Green Energy and power company Adani Transmission, and a further $1bn in the group’s flagship Adani Enterprises.
At the time, IHC’s chief executive Syed Basar Shueb described the decision to back Adani as a “long-term investment in India”, while Adani Green’s executive director Sagar Adani hailed it as “a start of a wider relationship between [t]he Adani Group and IHC”.
But the conglomerate, which is chaired by Sheikh Tahnoon bin Zayed al-Nahyan, one of the United Arab Emirates’ most powerful men, said on Thursday that it had found a buyer for its Adani Green and Transmission stakes.
The decision to exit the companies cuts IHC’s exposure to Adani’s companies by 50 per cent just 18 months after making the investments.
IHC said the Adani disposals were part of its “overall portfolio rebalancing strategy”, and that it was completing regulatory paperwork to complete the transaction with the unnamed buyer. The filing made no reference to its stake in Adani Enterprises.
Gulf shares dip on expectations for firm interest rates | Reuters
Gulf shares dip on expectations for firm interest rates | Reuters
Most Gulf equity markets dipped on Thursday, with investor confidence still fragile after the Federal Reserve's hawkish tone last week stoked expectations that U.S. rates will stay higher for longer, though Dubai edged up.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions, as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark stock index (.TASI) retreated 0.2% following its biggest gain in nearly four months on Wednesday, dragged down by financial and materials stocks.
Al Rajhi Bank (1120.SE), Saudi Arabia's second-largest lender by assets, fell 1.2% and SABIC Agri-Nutrients (2020.SE) gave up 2.2%.
Oil behemoth and index heavyweight Saudi Aramco (2222.SE) was up 0.4%, however.
Aramco said on Thursday it had agreed to acquire a strategic minority stake in liquefied natural gas company MidOcean Energy for $500 million, with an option to increase the size of the shareholding.
The Qatari benchmark stock index (.QSI) extended the previous session's loss to finish 0.1% lower, with financial and industrial stocks acting as a major drag on the index.
Qatar National Bank (QNBK.QA), the Gulf's biggest lender, dropped 1.5%, and Qatar Navigation (QNNC.QA) lost more than 1.8%.
In Abu Dhabi, the benchmark index (.FTFADGI) was down 0.3% in its fourth negative day, led by a 2% slide in Abu Dhabi National Energy (TAQA.AD) and a 1.6% decline in Alpha Dhabi Holding (ALPHADHABI.AD).
Dubai's main share index (.DFMGI) however rose 0.5%, boosted by solid gains in property and industrial stocks.
Blue-chip developer Emaar Properties (EMAR.DU) climbed 4.4% and district cooling provider Emirates Central Cooling Systems Corporation (EMPOWER.DU) rose 3.8%.
Stock markets in Oman, Kuwait and Egypt are closed for a public holiday.
Most Gulf equity markets dipped on Thursday, with investor confidence still fragile after the Federal Reserve's hawkish tone last week stoked expectations that U.S. rates will stay higher for longer, though Dubai edged up.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions, as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark stock index (.TASI) retreated 0.2% following its biggest gain in nearly four months on Wednesday, dragged down by financial and materials stocks.
Al Rajhi Bank (1120.SE), Saudi Arabia's second-largest lender by assets, fell 1.2% and SABIC Agri-Nutrients (2020.SE) gave up 2.2%.
Oil behemoth and index heavyweight Saudi Aramco (2222.SE) was up 0.4%, however.
Aramco said on Thursday it had agreed to acquire a strategic minority stake in liquefied natural gas company MidOcean Energy for $500 million, with an option to increase the size of the shareholding.
The Qatari benchmark stock index (.QSI) extended the previous session's loss to finish 0.1% lower, with financial and industrial stocks acting as a major drag on the index.
Qatar National Bank (QNBK.QA), the Gulf's biggest lender, dropped 1.5%, and Qatar Navigation (QNNC.QA) lost more than 1.8%.
In Abu Dhabi, the benchmark index (.FTFADGI) was down 0.3% in its fourth negative day, led by a 2% slide in Abu Dhabi National Energy (TAQA.AD) and a 1.6% decline in Alpha Dhabi Holding (ALPHADHABI.AD).
Dubai's main share index (.DFMGI) however rose 0.5%, boosted by solid gains in property and industrial stocks.
Blue-chip developer Emaar Properties (EMAR.DU) climbed 4.4% and district cooling provider Emirates Central Cooling Systems Corporation (EMPOWER.DU) rose 3.8%.
Stock markets in Oman, Kuwait and Egypt are closed for a public holiday.
#Dubai’s Emaar in Talks to Build Housing Projects in #SaudiArabia - Bloomberg
Dubai’s Emaar in Talks to Build Housing Projects in Saudi Arabia - Bloomberg
Emaar Properties PJSC, the Dubai-based builder of the world’s tallest tower, is exploring opportunities to develop housing communities in neighboring Saudi Arabia where an oil-fueled construction boom is underway.
The developer is in talks with the kingdom’s housing ministry to build large mixed-use developments, according to Emaar founder Mohamed Alabbar. Emaar could start working on a 4,000-unit housing project if they reach an agreement, he said.
“We’re in serious discussions with the ministry of housing on working together,” Alabbar said in an interview in Abu Dhabi. “We’re quite active” and “we have stuff we’re looking at.”
Saudi Arabia is drawing the attention of international developers and builders amid a state-push to boost homeownership in the kingdom. Construction contracts worth $250 billion have been awarded in the country since 2016 as the oil producer seeks to transform itself into a top tourism destination and end its reliance on revenue from hydrocarbons.
Emaar Properties PJSC, the Dubai-based builder of the world’s tallest tower, is exploring opportunities to develop housing communities in neighboring Saudi Arabia where an oil-fueled construction boom is underway.
The developer is in talks with the kingdom’s housing ministry to build large mixed-use developments, according to Emaar founder Mohamed Alabbar. Emaar could start working on a 4,000-unit housing project if they reach an agreement, he said.
“We’re in serious discussions with the ministry of housing on working together,” Alabbar said in an interview in Abu Dhabi. “We’re quite active” and “we have stuff we’re looking at.”
Saudi Arabia is drawing the attention of international developers and builders amid a state-push to boost homeownership in the kingdom. Construction contracts worth $250 billion have been awarded in the country since 2016 as the oil producer seeks to transform itself into a top tourism destination and end its reliance on revenue from hydrocarbons.
#Saudi Aramco to buy stake in EIG's MidOcean Energy to tap into LNG | Reuters
Saudi Aramco to buy stake in EIG's MidOcean Energy to tap into LNG | Reuters
Saudi Arabia's oil group Aramco (2222.SE) said on Thursday it had agreed to acquire a strategic minority stake in liquefied natural gas company MidOcean Energy for $500 million, with an option to increase the size of the shareholding.
MidOcean is owned and managed by U.S. investment firm EIG Partners, which led a consortium to buy a 49% stake in Aramco's oil pipelines business in 2021, a deal that raised $12.4 billion for Aramco.
"This is an important step in Aramco's strategy to become a leading global LNG player," Aramco Upstream President Nasir K. al-Naimi said in a statement, which did not disclose the size of the stake.
"MidOcean Energy is well-equipped to capitalise on rising LNG demand, and this strategic partnership reflects our willingness to work with leading international players," he added.
MidOcean is in the process of buying interests in four LNG projects in Australia as part of its growth strategy to create a global LNG business, the statement said.
Saudi Arabia's oil group Aramco (2222.SE) said on Thursday it had agreed to acquire a strategic minority stake in liquefied natural gas company MidOcean Energy for $500 million, with an option to increase the size of the shareholding.
MidOcean is owned and managed by U.S. investment firm EIG Partners, which led a consortium to buy a 49% stake in Aramco's oil pipelines business in 2021, a deal that raised $12.4 billion for Aramco.
"This is an important step in Aramco's strategy to become a leading global LNG player," Aramco Upstream President Nasir K. al-Naimi said in a statement, which did not disclose the size of the stake.
"MidOcean Energy is well-equipped to capitalise on rising LNG demand, and this strategic partnership reflects our willingness to work with leading international players," he added.
MidOcean is in the process of buying interests in four LNG projects in Australia as part of its growth strategy to create a global LNG business, the statement said.
Lucid opens first international EV factory in #SaudiArabia
Lucid opens first international EV factory in Saudi Arabia
Electric-vehicle maker Lucid Group said on Wednesday it had opened its first international manufacturing plant in Saudi Arabia's Jeddah city, under a deal designed to further the Middle Eastern country's electrification push.
Lucid announced plans for the Jeddah factory last year and said the kingdom had signed an agreement to buy up to 100,000 vehicles from the company over 10 years.
Saudi's sovereign wealth fund, Lucid's largest shareholder, has been tasked with driving the kingdom's ambitious plan to reduce reliance on oil revenue as it ventures into an EV industry dominated by countries like China and the United States.
In 2022, the kingdom launched its first EV brand Ceer and announced $6 billion in investments for a steel plate mill complex and an EV battery metals plant.
Electric-vehicle maker Lucid Group said on Wednesday it had opened its first international manufacturing plant in Saudi Arabia's Jeddah city, under a deal designed to further the Middle Eastern country's electrification push.
Lucid announced plans for the Jeddah factory last year and said the kingdom had signed an agreement to buy up to 100,000 vehicles from the company over 10 years.
Saudi's sovereign wealth fund, Lucid's largest shareholder, has been tasked with driving the kingdom's ambitious plan to reduce reliance on oil revenue as it ventures into an EV industry dominated by countries like China and the United States.
In 2022, the kingdom launched its first EV brand Ceer and announced $6 billion in investments for a steel plate mill complex and an EV battery metals plant.
Unemployment among #Saudi s falls to 8.3% in Q2 | Reuters
Unemployment among Saudis falls to 8.3% in Q2 | Reuters
Joblessness among citizens in Saudi Arabia declined to 8.3% in the second quarter, down from 8.5% in the previous quarter and 9.7% in the same period a year ago, official data published on Thursday showed.
The overall rate of unemployment - which includes foreign nationals - stood at 4.9% in Q2, down from 5.8% in the prior year period, data from General Authority for Statistics showed.
Foreign nationals comprise just over 40% of the kingdom's total population according to the latest census, the majority of whom need an employment contract to live there.
The unemployment rate for female citizens - who have seen certain freedoms expanded under the crown prince - fell to 15.7%, from 19.3% a year ago, although the jobless rate among males remained almost the same from last year and stood at 4.6% in Q2.
Joblessness among citizens in Saudi Arabia declined to 8.3% in the second quarter, down from 8.5% in the previous quarter and 9.7% in the same period a year ago, official data published on Thursday showed.
The overall rate of unemployment - which includes foreign nationals - stood at 4.9% in Q2, down from 5.8% in the prior year period, data from General Authority for Statistics showed.
Foreign nationals comprise just over 40% of the kingdom's total population according to the latest census, the majority of whom need an employment contract to live there.
The unemployment rate for female citizens - who have seen certain freedoms expanded under the crown prince - fell to 15.7%, from 19.3% a year ago, although the jobless rate among males remained almost the same from last year and stood at 4.6% in Q2.
Allianz to sell 51% stake in Allianz #Saudi Fransi to ADNIC | Reuters
Allianz to sell 51% stake in Allianz Saudi Fransi to ADNIC | Reuters
German insurer Allianz (ALVG.DE) said on Thursday that it has entered into a binding agreement to sell its 51% stake in Allianz Saudi Fransi (8040.SE) (AzSF) in Saudi Arabia to ADNIC (ADNIC.AD), as the Munich-based group looks to streamline its primary insurance operations in the Middle East.
Subject to regulatory approvals, the transaction is expected to be completed in a few months, the German company said.
Employees and customers of AzSF will not be affected by the transaction, the company added.
German insurer Allianz (ALVG.DE) said on Thursday that it has entered into a binding agreement to sell its 51% stake in Allianz Saudi Fransi (8040.SE) (AzSF) in Saudi Arabia to ADNIC (ADNIC.AD), as the Munich-based group looks to streamline its primary insurance operations in the Middle East.
Subject to regulatory approvals, the transaction is expected to be completed in a few months, the German company said.
Employees and customers of AzSF will not be affected by the transaction, the company added.
Gulf shares up in early trade on stronger oil prices | Reuters
Gulf shares up in early trade on stronger oil prices | Reuters
Stock markets in the Gulf advanced in early trade on Thursday, as oil prices jumped amid tight global supplies and a drop in crude stocks in the United States.
Oil prices - a catalyst for Gulf's financial markets - scaled one-year highs on Thursday, with a big drop in U.S. crude stocks stoking concern that fuel demand is outstripping production.
Brent crude was up 0.88% to $97.45 a barrel at 0750 GMT.
Saudi Arabia's benchmark stock index (.TASI) was up 0.5%, helped by gains in almost all sectors, with Riyad Bank (1010.SE) rising 1.6% and Saudi Aramco (2222.SE) adding 0.7%.
China's privately controlled Jiangsu Eastern Shenghong Co Ltd (000301.SZ) said on Wednesday it had struck a preliminary deal with Saudi Aramco for the Middle Eastern oil major to become a minority stakeholder in its refining and petrochemical unit.
Dubai's benchmark stock index (.DFMGI) rose 0.2% in early trade, with Emaar Properties (EMAR.DU) climbing 3.4% and Emaar Development (EMAARDEV.DU) surging 2.5%.
The emirate's largest lender Emirates NBD (ENBD.DU) gained 0.6%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) advanced 0.2%, aided by a 2% surge in Abu Dhabi Islamic Bank (ADIB.AD) and a 1.2% gain in Aldar Properties (ALDAR.AD).
The UAE's largest lender, First Abu Dhabi Bank (FAB.AD), added 0.4%.
In Qatar, the benchmark index (.QSI) rose 0.4%, with almost all sectors in the green.
Industries Qatar (IQCD.QA) and Ooredoo (ORDS.QA) climbed 1.1% and 1.6% respectively.
Stock markets in Oman, Kuwait and Egypt are closed for a public holiday.
Stock markets in the Gulf advanced in early trade on Thursday, as oil prices jumped amid tight global supplies and a drop in crude stocks in the United States.
Oil prices - a catalyst for Gulf's financial markets - scaled one-year highs on Thursday, with a big drop in U.S. crude stocks stoking concern that fuel demand is outstripping production.
Brent crude was up 0.88% to $97.45 a barrel at 0750 GMT.
Saudi Arabia's benchmark stock index (.TASI) was up 0.5%, helped by gains in almost all sectors, with Riyad Bank (1010.SE) rising 1.6% and Saudi Aramco (2222.SE) adding 0.7%.
China's privately controlled Jiangsu Eastern Shenghong Co Ltd (000301.SZ) said on Wednesday it had struck a preliminary deal with Saudi Aramco for the Middle Eastern oil major to become a minority stakeholder in its refining and petrochemical unit.
Dubai's benchmark stock index (.DFMGI) rose 0.2% in early trade, with Emaar Properties (EMAR.DU) climbing 3.4% and Emaar Development (EMAARDEV.DU) surging 2.5%.
The emirate's largest lender Emirates NBD (ENBD.DU) gained 0.6%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) advanced 0.2%, aided by a 2% surge in Abu Dhabi Islamic Bank (ADIB.AD) and a 1.2% gain in Aldar Properties (ALDAR.AD).
The UAE's largest lender, First Abu Dhabi Bank (FAB.AD), added 0.4%.
In Qatar, the benchmark index (.QSI) rose 0.4%, with almost all sectors in the green.
Industries Qatar (IQCD.QA) and Ooredoo (ORDS.QA) climbed 1.1% and 1.6% respectively.
Stock markets in Oman, Kuwait and Egypt are closed for a public holiday.
Wednesday 27 September 2023
Middle East shares weakened by rate worries; oil boosts Saudi | Reuters
Middle East shares weakened by rate worries; oil boosts Saudi | Reuters
Most major stock markets in the Gulf extended losses on Wednesday as concerns over interest rate hikes checked investor enthusiasm, although higher oil prices gave the Saudi Arabian bourse its biggest boost in nearly four months.
The Fed last week held its policy rate steady in a range of 5.25%-5.50%, but most policymakers signalled one more interest-rate hike by the end of the year would likely be appropriate.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.
Oil prices - a catalyst for Gulf's financial markets - rose by more than $1 on Wednesday, with Brent crude futures broaching $95, up $1.14 to $95.10 a barrel by 1112 GMT.
The Qatari benchmark stock index (.QSI) fell 0.6%, with financial and industrial stocks were among the top losers on the index. Qatar Islamic Bank (QISB.QA) dropped more than 1.4%, while chemical makers Industries Qatar (IQCD.QA) was down 1.3%.
Among other banking stocks, heavyweight Commercial Bank (COMB.QA) and Qatar National Bank (QNBK.QA), the Gulf's biggest lender, fell 2% and 0.3%, respectively.
Dubai's main share index (.DFMGI) slipped 0.7%, as losses in finance and utilities stocks were capped by gains in industrial sectors.
Emirates NBD Bank (ENBD.DU), Dubai's largest lender, and blue-chip developer Emaar Properties (EMAR.DU) fell 1.7% and 2.3%, respectively, but Gulf Navigation Holding (GNAV.DU) was up 3.4%.
In Abu Dhabi, the benchmark index (.FTFADGI), finished in the red, led by a 0.1% decrease in First Abu Dhabi Bank (FAB.AD), the United Arab Emirates' biggest lender, and a 2.5% dive in developer Aldar Properties (ALDAR.AD).
Saudi Arabia's benchmark stock index (.TASI) rose 1.4%, its biggest gain since early June, boosted by gains in almost all the sectors with financial and energy stocks leading the boost.
Al Rajhi Bank (1120.SE), Saudi Arabia's second largest lender by assets, increased by 1.6% and index heavyweight and oil behemoth Saudi Aramco (2222.SE) hiked 1.8%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), fell 0.9%, after hitting all time high in its previous sessions, with 22 of the 30 constituent stocks slipping into negative territory.
Commercial International Bank COMI.CA and Fawry Banking FWRY.CA gained 2.1% and 5.2% respectively.
Abu Qir fertilizers and Chemical Industries Co (ABUK.CA) and electronic payments provider Fawry (FWRY.CA), declined by 3.6% and 4.1%, respectively.
Most major stock markets in the Gulf extended losses on Wednesday as concerns over interest rate hikes checked investor enthusiasm, although higher oil prices gave the Saudi Arabian bourse its biggest boost in nearly four months.
The Fed last week held its policy rate steady in a range of 5.25%-5.50%, but most policymakers signalled one more interest-rate hike by the end of the year would likely be appropriate.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.
Oil prices - a catalyst for Gulf's financial markets - rose by more than $1 on Wednesday, with Brent crude futures broaching $95, up $1.14 to $95.10 a barrel by 1112 GMT.
The Qatari benchmark stock index (.QSI) fell 0.6%, with financial and industrial stocks were among the top losers on the index. Qatar Islamic Bank (QISB.QA) dropped more than 1.4%, while chemical makers Industries Qatar (IQCD.QA) was down 1.3%.
Among other banking stocks, heavyweight Commercial Bank (COMB.QA) and Qatar National Bank (QNBK.QA), the Gulf's biggest lender, fell 2% and 0.3%, respectively.
Dubai's main share index (.DFMGI) slipped 0.7%, as losses in finance and utilities stocks were capped by gains in industrial sectors.
Emirates NBD Bank (ENBD.DU), Dubai's largest lender, and blue-chip developer Emaar Properties (EMAR.DU) fell 1.7% and 2.3%, respectively, but Gulf Navigation Holding (GNAV.DU) was up 3.4%.
In Abu Dhabi, the benchmark index (.FTFADGI), finished in the red, led by a 0.1% decrease in First Abu Dhabi Bank (FAB.AD), the United Arab Emirates' biggest lender, and a 2.5% dive in developer Aldar Properties (ALDAR.AD).
Saudi Arabia's benchmark stock index (.TASI) rose 1.4%, its biggest gain since early June, boosted by gains in almost all the sectors with financial and energy stocks leading the boost.
Al Rajhi Bank (1120.SE), Saudi Arabia's second largest lender by assets, increased by 1.6% and index heavyweight and oil behemoth Saudi Aramco (2222.SE) hiked 1.8%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), fell 0.9%, after hitting all time high in its previous sessions, with 22 of the 30 constituent stocks slipping into negative territory.
Commercial International Bank COMI.CA and Fawry Banking FWRY.CA gained 2.1% and 5.2% respectively.
Abu Qir fertilizers and Chemical Industries Co (ABUK.CA) and electronic payments provider Fawry (FWRY.CA), declined by 3.6% and 4.1%, respectively.
#UAE economy to expand 4% in 2024 on non-oil sector growth, S&P says
UAE economy to expand 4% in 2024 on non-oil sector growth, S&P says
The UAE's economy is expected to expand by 4 per cent in 2024 and 3 per cent this year, driven by strong growth in its non-oil sector, according to a new report.
The rising number of tourist arrivals, supportive government initiatives and increasing tech advancements are expected to spur the country's economic expansion, S&P analysts said.
Key contributors to the country's economic growth in 2024 include wholesale trade, industry, real estate, construction, financial services and tourism, as well as oil and gas, Trevor Cullinan, sovereign ratings analyst at S&P, told state news agency Wam.
The government's economic and social measures implemented over the last two years “are strategically designed to set the stage for sustained, long-term economic expansion”, S&P said.
“The country's ability to host major international events is expected to play a pivotal role in achieving the UAE's ambitious goal of attracting 40 million visitors by 2030, accompanied by plans to expand the number of hotel rooms to 250,000 during the same period.”
The economic growth forecast is in line with projections from the UAE Central Bank, which expects the country's economy to expand by 3.3 per cent this year.
The UAE's economy is expected to expand by 4 per cent in 2024 and 3 per cent this year, driven by strong growth in its non-oil sector, according to a new report.
The rising number of tourist arrivals, supportive government initiatives and increasing tech advancements are expected to spur the country's economic expansion, S&P analysts said.
Key contributors to the country's economic growth in 2024 include wholesale trade, industry, real estate, construction, financial services and tourism, as well as oil and gas, Trevor Cullinan, sovereign ratings analyst at S&P, told state news agency Wam.
The government's economic and social measures implemented over the last two years “are strategically designed to set the stage for sustained, long-term economic expansion”, S&P said.
“The country's ability to host major international events is expected to play a pivotal role in achieving the UAE's ambitious goal of attracting 40 million visitors by 2030, accompanied by plans to expand the number of hotel rooms to 250,000 during the same period.”
The economic growth forecast is in line with projections from the UAE Central Bank, which expects the country's economy to expand by 3.3 per cent this year.
#Dubai Repays $5.5 Billion of Crisis-Era Loans to Cut Debt Load - Bloomberg #AbuDhabi #UAE
Dubai Repays $5.5 Billion of Crisis-Era Loans to Cut Debt Load - Bloomberg
Dubai said it began repaying a $20 billion bailout loan from Abu Dhabi and the country’s central bank, as part of an effort to reduce its debt burden almost 15 years after the sheikhdom teetered on the brink of default.
Taking advantage of an economic recovery, the emirate lowered its total debt to 25% of gross domestic product with payments that include 20 billion dirhams ($5.5 billion) to Abu Dhabi and the central bank. Dubai shelled out a combined 28.5 billion dirhams within a year and a half, its media office said Tuesday on social media site X, citing its debt management office.
It didn’t give details as to what liabilities were still included in its calculations, and the media office wasn’t able to comment when approached separately by Bloomberg. Dubai isn’t rated by any of the three major credit assessors.
S&P Global Ratings earlier estimated Dubai’s direct government debt at 244 billion dirhams, equivalent to around half the emirate’s economic output. Its broader debt climbs to 100% of GDP when including money owed by state-related entities, according to S&P.
Dubai said it began repaying a $20 billion bailout loan from Abu Dhabi and the country’s central bank, as part of an effort to reduce its debt burden almost 15 years after the sheikhdom teetered on the brink of default.
Taking advantage of an economic recovery, the emirate lowered its total debt to 25% of gross domestic product with payments that include 20 billion dirhams ($5.5 billion) to Abu Dhabi and the central bank. Dubai shelled out a combined 28.5 billion dirhams within a year and a half, its media office said Tuesday on social media site X, citing its debt management office.
It didn’t give details as to what liabilities were still included in its calculations, and the media office wasn’t able to comment when approached separately by Bloomberg. Dubai isn’t rated by any of the three major credit assessors.
S&P Global Ratings earlier estimated Dubai’s direct government debt at 244 billion dirhams, equivalent to around half the emirate’s economic output. Its broader debt climbs to 100% of GDP when including money owed by state-related entities, according to S&P.
#Dubai cuts public debt by $7.8bln to 25% of GDP
Dubai cuts public debt by $7.8bln to 25% of GDP
Dubai has reduced its public debt by AED29 billion ($7.8 billion) as it managed to settle some of its loans amid strong economic recovery.
The reduction consequently brings down the emirate’s debt burden as a share of its gross domestic product (GDP) to 25%, the Dubai Media Office said on social media, citing the Public Debt Management Office of the Department of Finance.
The decline is achieved across all debt classes in the government’s debt portfolio, including a full redemption of Sukuk certificates worth AED3.3 billion.
It also includes the repayment of bilateral and syndicated facilities amounting to AED5.2 billion and a partial settlement of AED20 billion from the financing extended by the Abu Dhabi government and UAE Central Bank.
Dubai has reduced its public debt by AED29 billion ($7.8 billion) as it managed to settle some of its loans amid strong economic recovery.
The reduction consequently brings down the emirate’s debt burden as a share of its gross domestic product (GDP) to 25%, the Dubai Media Office said on social media, citing the Public Debt Management Office of the Department of Finance.
The decline is achieved across all debt classes in the government’s debt portfolio, including a full redemption of Sukuk certificates worth AED3.3 billion.
It also includes the repayment of bilateral and syndicated facilities amounting to AED5.2 billion and a partial settlement of AED20 billion from the financing extended by the Abu Dhabi government and UAE Central Bank.
#Oman's OQ Gas Networks says IPO oversubscribed multiple times
Oman's OQ Gas Networks says IPO oversubscribed multiple times
Oman's OQ Gas Networks SOAG (OQGN), which is floating up to 49% of its shares, said on Wednesday that the portion of the offer reserved for institutional investors, representing 40% of the IPO size, has been covered multiple times at the maximum price of 0.140 Omani rials ($36) on the first day of the book building process.
At the top of the price range the IPO is set to raise $771 million from the sale of 2 billion shares, making the offering bigger than Oman Telecommunications' $748 million stake sale in 2005.
The book-building period runs until October 9 for institutional investors, while the retail offer for 9% is expected to close on October 5. The final price is due to be announced on October 12 with shares set to start trading on October 24.
OQGN, which is Oman's gas transporter, supplies natural gas to power plants, free zones, industrial clusters, LNG complexes and other customers.
Oman's OQ Gas Networks SOAG (OQGN), which is floating up to 49% of its shares, said on Wednesday that the portion of the offer reserved for institutional investors, representing 40% of the IPO size, has been covered multiple times at the maximum price of 0.140 Omani rials ($36) on the first day of the book building process.
At the top of the price range the IPO is set to raise $771 million from the sale of 2 billion shares, making the offering bigger than Oman Telecommunications' $748 million stake sale in 2005.
The book-building period runs until October 9 for institutional investors, while the retail offer for 9% is expected to close on October 5. The final price is due to be announced on October 12 with shares set to start trading on October 24.
OQGN, which is Oman's gas transporter, supplies natural gas to power plants, free zones, industrial clusters, LNG complexes and other customers.
Most Gulf shares drop in early trade, #Saudi gains | Reuters
Most Gulf shares drop in early trade, Saudi gains | Reuters
Most stock markets in the Gulf were down in early trade on Wednesday as worries over higher interest rates by the U.S. Federal Reserve continued to dent investor sentiment.
The Fed last week held its policy rate steady in a range of 5.25%-5.50%, but most policymakers signaled they believe one more interest-rate hike by the end of the year will likely be appropriate.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.
Dubai's benchmark stock index (.DFMGI) was down 0.5% in early trade with Emaar Properties (EMAR.DU) dropping 1% and Emirates Central Cooling Systems (EMPOWER.DU) sliding 1.1%.
The emirate's largest lender Emirates NBD <ENBD.DU slipped 0.6%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) fell 0.2%, weighed down by a 0.2% loss in conglomerate International Holding Company (IHC.AD) and 1.5% drop in Aldar Properties (ALDAR.AD).
The UAE's largest lender First Abu Dhabi Bank (FAB.AD) and Abu Dhabi Commercial Bank (ADCB.AD) shed 0.4% and 0.8%, respectively.
In Qatar, the benchmark (.QSI) edged down 0.2% with Qatar Navigation (QNNC.QA) falling 2.6% and Ooredoo QPSC (ORDS.QA) dropping 1%.
Among the losers, Qatar Islamic Bank (QISB.QA) and Commercial Bank (COMB.QA) slipped 0.3% and 0.5%, respectively.
Saudi Arabia's benchmark stock index (.TASI) was up 0.3%, helped by gains in most sectors with Sahara International Petrochemical Co (2310.SE) surging 2.5% and Al Rajhi Bank (1120.SE) gaining 0.6%.
Most stock markets in the Gulf were down in early trade on Wednesday as worries over higher interest rates by the U.S. Federal Reserve continued to dent investor sentiment.
The Fed last week held its policy rate steady in a range of 5.25%-5.50%, but most policymakers signaled they believe one more interest-rate hike by the end of the year will likely be appropriate.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.
Dubai's benchmark stock index (.DFMGI) was down 0.5% in early trade with Emaar Properties (EMAR.DU) dropping 1% and Emirates Central Cooling Systems (EMPOWER.DU) sliding 1.1%.
The emirate's largest lender Emirates NBD <ENBD.DU slipped 0.6%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) fell 0.2%, weighed down by a 0.2% loss in conglomerate International Holding Company (IHC.AD) and 1.5% drop in Aldar Properties (ALDAR.AD).
The UAE's largest lender First Abu Dhabi Bank (FAB.AD) and Abu Dhabi Commercial Bank (ADCB.AD) shed 0.4% and 0.8%, respectively.
In Qatar, the benchmark (.QSI) edged down 0.2% with Qatar Navigation (QNNC.QA) falling 2.6% and Ooredoo QPSC (ORDS.QA) dropping 1%.
Among the losers, Qatar Islamic Bank (QISB.QA) and Commercial Bank (COMB.QA) slipped 0.3% and 0.5%, respectively.
Saudi Arabia's benchmark stock index (.TASI) was up 0.3%, helped by gains in most sectors with Sahara International Petrochemical Co (2310.SE) surging 2.5% and Al Rajhi Bank (1120.SE) gaining 0.6%.
Tuesday 26 September 2023
Spain Weighs Placing Conditions on #Saudi’s Telefonica Stake Bid - Bloomberg
Spain Weighs Placing Conditions on Saudi’s Telefonica Stake Bid - Bloomberg
The Spanish government is considering imposing conditions on Saudi Telecom Co.’s acquisition of a 9.9% stake in Telefonica SA similar to those placed on previous deals, such as limits on asset sales and dividend payments, according to a person familiar with the matter.
The provisions may include some of those applied in 2021 to the purchase of 23% of Naturgy Energy Group SA by Australian fund IFM Global Infrastructure, said the person, who asked not to be identified discussing confidential information.
Those conditions included backing for certain corporate policies, such as investment in projects deemed important for the nation, maintaining the legal registry and headquarters of Naturgy in Spain, a cautious dividend policy and an investment-grade leverage ratio. The buyer was also required to refrain from backing sales of critical assets or supporting any proposal to take the company private.
A final decision about the Telefonica stake has not been made and the government could decide to apply different conditions, the person added.
The Spanish government is considering imposing conditions on Saudi Telecom Co.’s acquisition of a 9.9% stake in Telefonica SA similar to those placed on previous deals, such as limits on asset sales and dividend payments, according to a person familiar with the matter.
The provisions may include some of those applied in 2021 to the purchase of 23% of Naturgy Energy Group SA by Australian fund IFM Global Infrastructure, said the person, who asked not to be identified discussing confidential information.
Those conditions included backing for certain corporate policies, such as investment in projects deemed important for the nation, maintaining the legal registry and headquarters of Naturgy in Spain, a cautious dividend policy and an investment-grade leverage ratio. The buyer was also required to refrain from backing sales of critical assets or supporting any proposal to take the company private.
A final decision about the Telefonica stake has not been made and the government could decide to apply different conditions, the person added.
Mideast Oil Gets Tighter as Refineries in #Oman, #Bahrain Expand - Bloomberg
Mideast Oil Gets Tighter as Refineries in Oman, Bahrain Expand - Bloomberg
Oil supplies from the Persian Gulf are set to tighten further as Oman and Bahrain expand refining capacity, consuming more regional crude to produce fuels like diesel for export.
The new Duqm refinery, a joint venture between Oman and Kuwait, has begun exporting the first cargoes of refined products, according to people familiar with the matter. Traders expect the 230,000 barrel-a-day facility to be running at full capacity by the start of next year.
Bahrain is also expanding its Sitra refinery, boosting the 87-year-old crude processing plant’s capacity to about 400,000 barrels a day from 267,000 a day now. The project will modernize units capable of producing jet fuel and diesel that meet European specifications, according to people with knowledge of that plant’s operations. The expansion is set to be complete by the end of 2024, they said.
The operators of both facilities didn’t immediately respond to requests for comments.
Oil supplies from the Persian Gulf are set to tighten further as Oman and Bahrain expand refining capacity, consuming more regional crude to produce fuels like diesel for export.
The new Duqm refinery, a joint venture between Oman and Kuwait, has begun exporting the first cargoes of refined products, according to people familiar with the matter. Traders expect the 230,000 barrel-a-day facility to be running at full capacity by the start of next year.
Bahrain is also expanding its Sitra refinery, boosting the 87-year-old crude processing plant’s capacity to about 400,000 barrels a day from 267,000 a day now. The project will modernize units capable of producing jet fuel and diesel that meet European specifications, according to people with knowledge of that plant’s operations. The expansion is set to be complete by the end of 2024, they said.
The operators of both facilities didn’t immediately respond to requests for comments.
Gulf shares mixed amid Fed rate hike woes, weak oil | Reuters
Gulf shares mixed amid Fed rate hike woes, weak oil | Reuters
Major stock markets in the Gulf closed mixed on Tuesday, following declines in oil prices and global peers after top central banks hinted interest rates are likely to stay elevated for longer sapped investors' risk appetite.
Oil prices — a key catalyst for Gulf's financial markets — fell on Tuesday as a stronger U.S. dollar compounded concerns that demand for fuel will be held back by major central banks holding interest rates higher for longer.
Brent crude futures fell $1.16, or 1.24%, at $92.13 a barrel at 0844 GMT.
Dubai's main share index (.DFMGI) fell 0.7%, dragged by losses in almost all the sectors with property and banking shares leading the decline.
Blue-chip developer Emaar Properties (EMAR.DU) dropped 2.4% while Dubai Islamic Bank (DISB.DU) and Emirate's largest lender Emirates NBD (ENBD.DU) shares were down 1.5% and 1.1%, respectively.
In Abu Dhabi, the benchmark index (.FTFADGI) slipped 0.2%, led by a 0.3% slide in conglomerate International Holding Company (IHC.AD) and a 1.4% slump in Alpha Dhabi Holding (ALPHADHABI.AD).
Saudi Arabia's benchmark stock index (.TASI) rose 0.4%, after third consecutive negative day, with Al Rajhi Bank (1120.SE), Saudi Arabia's second-largest lender by assets, increasing 1.4% and index heavyweight and oil major Saudi Aramco (2222.SE) gaining 0.9%.
The Qatari benchmark stock index (.QSI) gained 0.6%, after two consecutive sessions of decline, mostly led by solid gains in financial stocks. Shares in Qatar National Bank (QNBK.QA), the Gulf's biggest lender, and Qatar Islamic Bank (QISB.QA) were up 2.4% and 1.8% respectively.
Meanwhile, an aggressive rate hike by U.S. Federal Reserve may pose a challenge for the Gulf economy as most Gulf Cooperation Council countries (GCC) have their currencies pegged to the U.S. dollar and generally follow Fed policy moves, exposing them to direct impacts from any monetary tightening.
Outside the Gulf, Egypt's blue-chip index (.EGX30), edged up 0.2%, extending gains to a third consecutive session, helped by a 6.4% surge in Misr Fertilizer Production (MFPC.CA) and a 0.7% lift in Commercial International Bank (CIB) (COMI.CA), the country's biggest private bank.
Major stock markets in the Gulf closed mixed on Tuesday, following declines in oil prices and global peers after top central banks hinted interest rates are likely to stay elevated for longer sapped investors' risk appetite.
Oil prices — a key catalyst for Gulf's financial markets — fell on Tuesday as a stronger U.S. dollar compounded concerns that demand for fuel will be held back by major central banks holding interest rates higher for longer.
Brent crude futures fell $1.16, or 1.24%, at $92.13 a barrel at 0844 GMT.
Dubai's main share index (.DFMGI) fell 0.7%, dragged by losses in almost all the sectors with property and banking shares leading the decline.
Blue-chip developer Emaar Properties (EMAR.DU) dropped 2.4% while Dubai Islamic Bank (DISB.DU) and Emirate's largest lender Emirates NBD (ENBD.DU) shares were down 1.5% and 1.1%, respectively.
In Abu Dhabi, the benchmark index (.FTFADGI) slipped 0.2%, led by a 0.3% slide in conglomerate International Holding Company (IHC.AD) and a 1.4% slump in Alpha Dhabi Holding (ALPHADHABI.AD).
Saudi Arabia's benchmark stock index (.TASI) rose 0.4%, after third consecutive negative day, with Al Rajhi Bank (1120.SE), Saudi Arabia's second-largest lender by assets, increasing 1.4% and index heavyweight and oil major Saudi Aramco (2222.SE) gaining 0.9%.
The Qatari benchmark stock index (.QSI) gained 0.6%, after two consecutive sessions of decline, mostly led by solid gains in financial stocks. Shares in Qatar National Bank (QNBK.QA), the Gulf's biggest lender, and Qatar Islamic Bank (QISB.QA) were up 2.4% and 1.8% respectively.
Meanwhile, an aggressive rate hike by U.S. Federal Reserve may pose a challenge for the Gulf economy as most Gulf Cooperation Council countries (GCC) have their currencies pegged to the U.S. dollar and generally follow Fed policy moves, exposing them to direct impacts from any monetary tightening.
Outside the Gulf, Egypt's blue-chip index (.EGX30), edged up 0.2%, extending gains to a third consecutive session, helped by a 6.4% surge in Misr Fertilizer Production (MFPC.CA) and a 0.7% lift in Commercial International Bank (CIB) (COMI.CA), the country's biggest private bank.
Major Gulf bourses drop in early trade on weaker oil prices | Reuters
Major Gulf bourses drop in early trade on weaker oil prices | Reuters
Major Stock markets in the Gulf fell in early trade on Tuesday, tracking declines in oil prices, with the U.S. Federal Reserve's hawkish tone weighing on investor sentiment.
Oil prices - a key catalyst for the Gulf's financial markets - declined, with Brent crude down 1.2% at $92.16 a barrel by 0850 GMT.
Dubai's benchmark stock index (.DFMGI) was down 0.7%, dragged by a 1.6% fall in Emaar Properties (EMAR.DU) and 0.8% loss in Dubai Electricity and Water Authority (DEWAA.DU).
The emirate's largest lender Emirates NBD (ENBD.DU) and Dubai Islamic Bank (DISB.DU) slipped 1.1% and 0.8%, respectively.
Abu Dhabi's benchmark stock index (.FTFADGI) fell 0.4%, weighed by a 0.4% loss in International Holding Company (IHC.AD) and 1.2% drop in Alpha Dhabi Holding (ALPHADHABI.AD).
Saudi Arabia's benchmark stock index (.TASI) was down 0.3% with Dr Sulaiman Al Habib Medical Services (4013.SE) losing 1.1% and Saudi Awwal Bank(1060.SE) sliding 1.9%.
Among the losers, oil major Saudi Aramco (2222.SE) shed 0.8% and Riyad Bank (1010.SE) lost 1.1%.
In Qatar, the benchmark (.QSI) was little changed, with losses in finance and utilities sectors capping gains in industry and energy sectors.
Industries Qatar (IQCD.QA) and Qatar Navigation (QNNC.QA) added 0.6% and 1.2% respectively, while Gulf's largest lender Qatar National Bank (QNBK.QA) slipped 0.4% and Doha Bank (DOBK.QA) dropped 1.4%.
The U.S. Federal Reserve's hawkish tone last week drove a message to markets that the interest rates will stay elevated for longer.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions, as most regional currencies are pegged to the U.S. dollar.
Major Stock markets in the Gulf fell in early trade on Tuesday, tracking declines in oil prices, with the U.S. Federal Reserve's hawkish tone weighing on investor sentiment.
Oil prices - a key catalyst for the Gulf's financial markets - declined, with Brent crude down 1.2% at $92.16 a barrel by 0850 GMT.
Dubai's benchmark stock index (.DFMGI) was down 0.7%, dragged by a 1.6% fall in Emaar Properties (EMAR.DU) and 0.8% loss in Dubai Electricity and Water Authority (DEWAA.DU).
The emirate's largest lender Emirates NBD (ENBD.DU) and Dubai Islamic Bank (DISB.DU) slipped 1.1% and 0.8%, respectively.
Abu Dhabi's benchmark stock index (.FTFADGI) fell 0.4%, weighed by a 0.4% loss in International Holding Company (IHC.AD) and 1.2% drop in Alpha Dhabi Holding (ALPHADHABI.AD).
Saudi Arabia's benchmark stock index (.TASI) was down 0.3% with Dr Sulaiman Al Habib Medical Services (4013.SE) losing 1.1% and Saudi Awwal Bank(1060.SE) sliding 1.9%.
Among the losers, oil major Saudi Aramco (2222.SE) shed 0.8% and Riyad Bank (1010.SE) lost 1.1%.
In Qatar, the benchmark (.QSI) was little changed, with losses in finance and utilities sectors capping gains in industry and energy sectors.
Industries Qatar (IQCD.QA) and Qatar Navigation (QNNC.QA) added 0.6% and 1.2% respectively, while Gulf's largest lender Qatar National Bank (QNBK.QA) slipped 0.4% and Doha Bank (DOBK.QA) dropped 1.4%.
The U.S. Federal Reserve's hawkish tone last week drove a message to markets that the interest rates will stay elevated for longer.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions, as most regional currencies are pegged to the U.S. dollar.
#SaudiArabia Takes a Step Closer to Achieving Nuclear Power - Bloomberg
Saudi Arabia Takes a Step Closer to Achieving Nuclear Power - Bloomberg
Saudi Arabia took a key step toward advancing its nascent nuclear power program, telling international inspectors they’ll have wider access to facilities in order to account for atomic materials.
The Gulf Arab power is implementing broader monitoring guidelines with the International Atomic Energy Agency and rescinding an outdated set of rules that have hindered its nuclear program, Energy Minister Prince Abdulaziz Bin Salman Al Saud said Monday in Vienna.
“The kingdom is committed through its policy on atomic energy to the highest standards on transparency and reliability,” Prince Abdulaziz said in prepared remarks at the IAEA’s annual general conference.
The move means that Saudi Arabia will be able to access supplies of fissile material and begin operating its first reactor, a small research unit built with the assistance of Argentina. The change will also support the Gulf Arab nation’s first tender for nuclear power plants.
Saudi Arabia took a key step toward advancing its nascent nuclear power program, telling international inspectors they’ll have wider access to facilities in order to account for atomic materials.
The Gulf Arab power is implementing broader monitoring guidelines with the International Atomic Energy Agency and rescinding an outdated set of rules that have hindered its nuclear program, Energy Minister Prince Abdulaziz Bin Salman Al Saud said Monday in Vienna.
“The kingdom is committed through its policy on atomic energy to the highest standards on transparency and reliability,” Prince Abdulaziz said in prepared remarks at the IAEA’s annual general conference.
The move means that Saudi Arabia will be able to access supplies of fissile material and begin operating its first reactor, a small research unit built with the assistance of Argentina. The change will also support the Gulf Arab nation’s first tender for nuclear power plants.
#Saudi investment firm Osool & Bakheet to proceed with IPO
Saudi investment firm Osool & Bakheet to proceed with IPO
Saudi Arabia’s Osool & Bakheet Investment Company (OBIC) will proceed with its IPO and list its shares on Nomu, the parallel market of the Saudi Stock Exchange (Tadawul).
The company will offer 1.6 million ordinary shares, representing 25% stake. The total offered shares will represent 18.5% of the capital after the IPO and planned capital increase, according to a bourse filing on Monday.
The share offering will run from October 15 to October 19. Pricing for the IPO will be announced prior to October 15.
The company, which deals with investment fund and discretionary portfolio management, has a paid-up capital of 60 million riyals ($16 million), according to its website.
Last June, OBIC received approvals from Tadawul and the Capital Market Authority to proceed with the share offering and listing.
Saudi Arabia’s Osool & Bakheet Investment Company (OBIC) will proceed with its IPO and list its shares on Nomu, the parallel market of the Saudi Stock Exchange (Tadawul).
The company will offer 1.6 million ordinary shares, representing 25% stake. The total offered shares will represent 18.5% of the capital after the IPO and planned capital increase, according to a bourse filing on Monday.
The share offering will run from October 15 to October 19. Pricing for the IPO will be announced prior to October 15.
The company, which deals with investment fund and discretionary portfolio management, has a paid-up capital of 60 million riyals ($16 million), according to its website.
Last June, OBIC received approvals from Tadawul and the Capital Market Authority to proceed with the share offering and listing.
Monday 25 September 2023
Valentino Chairman Gives Gloomy Outlook for Luxury Sector - Bloomberg
Valentino Chairman Gives Gloomy Outlook for Luxury Sector - Bloomberg
The luxury industry’s troubles are mounting, with US department stores struggling and China failing to live up to expectations as a growth motor in the post-pandemic world.
That’s dashing hopes of another resilient year for the sector, which in 2022 defied gloomy headlines to grow by as much as 20% in some locations, according to Rachid Mohamed Rachid, chairman of fashion house Valentino.
“We came into 2023 with a prediction that luxury will probably grow 10%,” Rachid said in an interview with Bloomberg TV. “We have seen very strong signs that it will be much worse.”
Bain in June estimated that the personal luxury goods market, which includes handbags and ready-to-wear, would grow between 5% to 12% this year, depending on the pace of the recovery in China, where severe lockdowns for much of last year hurt demand.
The luxury industry’s troubles are mounting, with US department stores struggling and China failing to live up to expectations as a growth motor in the post-pandemic world.
That’s dashing hopes of another resilient year for the sector, which in 2022 defied gloomy headlines to grow by as much as 20% in some locations, according to Rachid Mohamed Rachid, chairman of fashion house Valentino.
“We came into 2023 with a prediction that luxury will probably grow 10%,” Rachid said in an interview with Bloomberg TV. “We have seen very strong signs that it will be much worse.”
Bain in June estimated that the personal luxury goods market, which includes handbags and ready-to-wear, would grow between 5% to 12% this year, depending on the pace of the recovery in China, where severe lockdowns for much of last year hurt demand.
China EV Maker Nio Considering Raising $3 Billion From Investors - Bloomberg
China EV Maker Nio Considering Raising $3 Billion From Investors - Bloomberg
Nio Inc. is considering raising around $3 billion from investors, according to people familiar with the matter, as questions swirl around the Chinese electric-car maker’s health amid mounting losses.
Shanghai-based Nio has approached investors from the Middle East, the people said, asking not to be identified discussing matters that are private. The fundraising could happen as soon as next year, one of the people said.
Nio said in a statement that it “currently has no reportable capital raising activity,” aside from the $1 billion convertible notes offering the company announced completing earlier Monday. In June, Nio raised around $738 million from a share sale to Abu Dhabi’s CYVN Holdings LLC.
Nio’s American depositary receipts fell as much as 7% shortly after the start of US trading and were down 2.7% as of 9:55 a.m. in New York.
Nio Inc. is considering raising around $3 billion from investors, according to people familiar with the matter, as questions swirl around the Chinese electric-car maker’s health amid mounting losses.
Shanghai-based Nio has approached investors from the Middle East, the people said, asking not to be identified discussing matters that are private. The fundraising could happen as soon as next year, one of the people said.
Nio said in a statement that it “currently has no reportable capital raising activity,” aside from the $1 billion convertible notes offering the company announced completing earlier Monday. In June, Nio raised around $738 million from a share sale to Abu Dhabi’s CYVN Holdings LLC.
Nio’s American depositary receipts fell as much as 7% shortly after the start of US trading and were down 2.7% as of 9:55 a.m. in New York.
#Saudi Cargo Firm SAL’s $678 Million IPO Sells Out in Hours - Bloomberg
Saudi Cargo Firm SAL’s $678 Million IPO Sells Out in Hours - Bloomberg
Cargo firm SAL Saudi Logistics Services Co. received orders for all shares in its Riyadh initial public offering hours after books opened on the deal, showing ongoing investor demand for listings in the kingdom.
Saudi Arabia’s biggest airline and another shareholder on Monday said they were seeking to raise as much as 2.54 billion riyals ($678 million) from the IPO. Order books were covered across the price range within a few hours, according to people with knowledge of the matter who asked not to be identified because the matter is private.
A representative for SAL declined to comment.
The deal is the latest indicator of robust sentiment in what is usually the Persian Gulf’s biggest and busiest listings market after a slow first half. A drop in Saudi Arabia’s stock market from the second half of last year through to March on weaker oil prices helped put a brake on listing activity, with offerings only picking up again at the start of the summer.
Earlier on Monday, Lumi Rental Co. surged by the 30% limit on trading debut. And oil driller ADES Holding Co., backed by the kingdom’s sovereign wealth fund, last week drew $76.5 billion in orders for its $1.2 billion IPO — the country’s largest this year.
Cargo firm SAL Saudi Logistics Services Co. received orders for all shares in its Riyadh initial public offering hours after books opened on the deal, showing ongoing investor demand for listings in the kingdom.
Saudi Arabia’s biggest airline and another shareholder on Monday said they were seeking to raise as much as 2.54 billion riyals ($678 million) from the IPO. Order books were covered across the price range within a few hours, according to people with knowledge of the matter who asked not to be identified because the matter is private.
A representative for SAL declined to comment.
The deal is the latest indicator of robust sentiment in what is usually the Persian Gulf’s biggest and busiest listings market after a slow first half. A drop in Saudi Arabia’s stock market from the second half of last year through to March on weaker oil prices helped put a brake on listing activity, with offerings only picking up again at the start of the summer.
Earlier on Monday, Lumi Rental Co. surged by the 30% limit on trading debut. And oil driller ADES Holding Co., backed by the kingdom’s sovereign wealth fund, last week drew $76.5 billion in orders for its $1.2 billion IPO — the country’s largest this year.
Major Gulf indexes subdued as rate outlook rattles investors | Reuters
Major Gulf indexes subdued as rate outlook rattles investors | Reuters
Most major stock markets in the Gulf ended lower on Monday, alongside subdued global equities, as investor confidence remained fragile after central banks reinforced the message that interest rates would stay higher for longer than expected.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark stock index (.TASI) fell 0.7%, in its third negative day in a row, following declines in almost all the sectors with banking and healthcare shares leading the losses. Shares in Al Rajhi Bank (1120.SE), Saudi Arabia's second-largest lender by assets, were down 1.9% and Dr Sulaiman Al-Habib Medical Services stock (4013.SE) dropped 1.7%.
However, auto rental firm Lumi (4262.SE) surged nearly 30% above its listing price in its debut trade on Monday.
In Abu Dhabi, the benchmark index (.FTFADGI) slipped 0.1%, with Abu Dhabi National Energy Company (TAQA.AD) contributing the most to the index's decline, falling more than 1%, while conglomerate International Holding Company (IHC.AD) was down 0.5%.
The Dubai stock market started the week with volatile trading after last week’s surge, as traders moved to secure their gains, said George Khoury, Global Head of Research at CFI.
Dubai's main share index (.DFMGI), however, gained 0.3%, boosted mainly by property and financial stocks.
Blue-chip developer Emaar Properties (EMAR.DU) climbed over 1% and Emirates NBD Bank (ENBD.DU), Dubai's largest lender, rose 1.4%.
The Qatari benchmark stock index (.QSI) extended the decline from the previous session, falling 0.2% and dragged lower mostly by industrial and financial stocks. Industries Qatar (IQCD.QA) fell 1.5% and Qatar Islamic Bank (QISB.QA) gave up 0.6%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), rose 0.5%, extending gains to a second consecutive session, as electrical firm El Sewedy Electric Co (SWDY.CA) jumped 5.4% and Ezz Steel (ESRS.CA), the largest steel company in Egypt, surged 5.8%.
Most major stock markets in the Gulf ended lower on Monday, alongside subdued global equities, as investor confidence remained fragile after central banks reinforced the message that interest rates would stay higher for longer than expected.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark stock index (.TASI) fell 0.7%, in its third negative day in a row, following declines in almost all the sectors with banking and healthcare shares leading the losses. Shares in Al Rajhi Bank (1120.SE), Saudi Arabia's second-largest lender by assets, were down 1.9% and Dr Sulaiman Al-Habib Medical Services stock (4013.SE) dropped 1.7%.
However, auto rental firm Lumi (4262.SE) surged nearly 30% above its listing price in its debut trade on Monday.
In Abu Dhabi, the benchmark index (.FTFADGI) slipped 0.1%, with Abu Dhabi National Energy Company (TAQA.AD) contributing the most to the index's decline, falling more than 1%, while conglomerate International Holding Company (IHC.AD) was down 0.5%.
The Dubai stock market started the week with volatile trading after last week’s surge, as traders moved to secure their gains, said George Khoury, Global Head of Research at CFI.
Dubai's main share index (.DFMGI), however, gained 0.3%, boosted mainly by property and financial stocks.
Blue-chip developer Emaar Properties (EMAR.DU) climbed over 1% and Emirates NBD Bank (ENBD.DU), Dubai's largest lender, rose 1.4%.
The Qatari benchmark stock index (.QSI) extended the decline from the previous session, falling 0.2% and dragged lower mostly by industrial and financial stocks. Industries Qatar (IQCD.QA) fell 1.5% and Qatar Islamic Bank (QISB.QA) gave up 0.6%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), rose 0.5%, extending gains to a second consecutive session, as electrical firm El Sewedy Electric Co (SWDY.CA) jumped 5.4% and Ezz Steel (ESRS.CA), the largest steel company in Egypt, surged 5.8%.
#UAE's Alpha Dhabi to buy majority stake in water project developer Metito | Reuters
UAE's Alpha Dhabi to buy majority stake in water project developer Metito | Reuters
United Arab Emirates-based conglomerate Alpha Dhabi (ALPHADHABI.AD) said on Monday it plans to acquire a majority stake in the United Arab Emirates-based water and wastewater project developer Metito Holdings.
Pending regulatory approvals, Alpha Dhabi said it plans to acquire the stake from Metito's selling shareholders Mitsubishi Corporation, Mitsubishi Heavy Industries, and Gulf Capital.
Alpha Dhabi did not disclose the size of the stake it would take in Metito, which has around 20 offices and 4,500 employees across the world. Alpha Dhabi also did not disclose the value of the transaction or how the transaction would be funded.
The Ghandour family, Metito’s founding shareholders, will retain their leadership roles, Alpha Dhabi said in the statement on Monday.
Alpha Dhabi is linked to Sheikh Tahnoun bin Zayed Al Nahyan, the UAE's national security adviser and a brother of the country's president Sheikh Mohammed bin Zayed Al Nahyan. Sheikh Tahnoun owns the Royal Group, which has a 74% stake in the parent of Alpha Dhabi, the International Holding Company (IHC).
United Arab Emirates-based conglomerate Alpha Dhabi (ALPHADHABI.AD) said on Monday it plans to acquire a majority stake in the United Arab Emirates-based water and wastewater project developer Metito Holdings.
Pending regulatory approvals, Alpha Dhabi said it plans to acquire the stake from Metito's selling shareholders Mitsubishi Corporation, Mitsubishi Heavy Industries, and Gulf Capital.
Alpha Dhabi did not disclose the size of the stake it would take in Metito, which has around 20 offices and 4,500 employees across the world. Alpha Dhabi also did not disclose the value of the transaction or how the transaction would be funded.
The Ghandour family, Metito’s founding shareholders, will retain their leadership roles, Alpha Dhabi said in the statement on Monday.
Alpha Dhabi is linked to Sheikh Tahnoun bin Zayed Al Nahyan, the UAE's national security adviser and a brother of the country's president Sheikh Mohammed bin Zayed Al Nahyan. Sheikh Tahnoun owns the Royal Group, which has a 74% stake in the parent of Alpha Dhabi, the International Holding Company (IHC).
#SaudiArabia's SAL Saudi Logistics could raise $678 mln from IPO | Reuters
Saudi Arabia's SAL Saudi Logistics could raise $678 mln from IPO | Reuters
Saudi Arabian cargo business SAL Saudi Logistics Services Co could raise as much as 2.54 billion riyals ($678 million) from its initial public offering (IPO) after the company disclosed an indicative price range on Monday.
SAL Saudi Logistics is 70% owned by Saudi Arabian Airlines Corporation (Saudia) and 30% by Tarabot Air Cargo Services. Saudia and Tarabot are jointly offering a 30% stake in SAL Logistics, comprising 24 million ordinary shares.
The price range was set at 98 riyals ($26.13) to 106 riyals per share, SAL Saudi Logistics said.
The offering is expected to total between 2.35 billion riyals and 2.54 billion riyals, implying a market capitalisation of between 7.84 billion riyals and 8.48 billion riyals.
The book-building process began on Monday, the company said. A final price for the shares will be determined at the end of the book-building period, set for Oct. 1.
Saudi Arabian cargo business SAL Saudi Logistics Services Co could raise as much as 2.54 billion riyals ($678 million) from its initial public offering (IPO) after the company disclosed an indicative price range on Monday.
SAL Saudi Logistics is 70% owned by Saudi Arabian Airlines Corporation (Saudia) and 30% by Tarabot Air Cargo Services. Saudia and Tarabot are jointly offering a 30% stake in SAL Logistics, comprising 24 million ordinary shares.
The price range was set at 98 riyals ($26.13) to 106 riyals per share, SAL Saudi Logistics said.
The offering is expected to total between 2.35 billion riyals and 2.54 billion riyals, implying a market capitalisation of between 7.84 billion riyals and 8.48 billion riyals.
The book-building process began on Monday, the company said. A final price for the shares will be determined at the end of the book-building period, set for Oct. 1.
Most Gulf bourses rise in early trade on stronger oil prices | Reuters
Most Gulf bourses rise in early trade on stronger oil prices | Reuters
Most stock markets in the Gulf rose in early trade on Monday, tracking oil prices higher, amid a tighter supply outlook after Moscow issued a temporary ban on fuel exports.
Oil prices - a key catalyst for the Gulf's financial markets - rose 0.7%, with Brent crude trading at $93.96 a barrel by 0646 GMT.
Last week, Moscow temporarily banned gasoline and diesel exports to most countries in order to stabilise the domestic market.
Dubai's benchmark stock index (.DFMGI) was up 0.3% in early trade, lifted by gains in most sectors, with Emaar Properties (EMAR.DU) surging 1.3% and Mashreqbank (MASB.DU) climbing 3.2%.
Saudi Arabia's benchmark stock index (.TASI) gained 0.2% with Saudi Awwal Bank (1060.SE) jumping 1.9% and Saudi Arabian Mining(1211.SE) surging 3.4%.
Among the gainers, newly listed auto rental company Lumi Rental (4262.SE) rose as much as 30% above its listing price in early trade.
Lumi's shares increased as high as 85.8 riyals ($22.87) after opening at 72.6 riyals. Its IPO price of 66 riyals was at the top of its indicative range.
In Qatar, the benchmark (.QSI) rose 0.1%, with Qatar Aluminum Manufacturing (QAMC.QA) adding 1.6% and the Gulf's largest lender Qatar National Bank (QNBK.QA) gaining 0.3%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) was down 0.2%, dragged by a 0.2% loss in conglomerate International Holding Company(IHC.AD) and a 1.6% drop in Burjeel Holding (BURJEEL.AD).
Most stock markets in the Gulf rose in early trade on Monday, tracking oil prices higher, amid a tighter supply outlook after Moscow issued a temporary ban on fuel exports.
Oil prices - a key catalyst for the Gulf's financial markets - rose 0.7%, with Brent crude trading at $93.96 a barrel by 0646 GMT.
Last week, Moscow temporarily banned gasoline and diesel exports to most countries in order to stabilise the domestic market.
Dubai's benchmark stock index (.DFMGI) was up 0.3% in early trade, lifted by gains in most sectors, with Emaar Properties (EMAR.DU) surging 1.3% and Mashreqbank (MASB.DU) climbing 3.2%.
Saudi Arabia's benchmark stock index (.TASI) gained 0.2% with Saudi Awwal Bank (1060.SE) jumping 1.9% and Saudi Arabian Mining(1211.SE) surging 3.4%.
Among the gainers, newly listed auto rental company Lumi Rental (4262.SE) rose as much as 30% above its listing price in early trade.
Lumi's shares increased as high as 85.8 riyals ($22.87) after opening at 72.6 riyals. Its IPO price of 66 riyals was at the top of its indicative range.
In Qatar, the benchmark (.QSI) rose 0.1%, with Qatar Aluminum Manufacturing (QAMC.QA) adding 1.6% and the Gulf's largest lender Qatar National Bank (QNBK.QA) gaining 0.3%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) was down 0.2%, dragged by a 0.2% loss in conglomerate International Holding Company(IHC.AD) and a 1.6% drop in Burjeel Holding (BURJEEL.AD).
Sunday 24 September 2023
Gold Outlook: Are Prices Set to Rise or Drop? - Bloomberg
Gold Outlook: Are Prices Set to Rise or Drop? - Bloomberg
What determines the price of gold? For much of the past decade the answer was easy: the price of money. The lower rates fell, the higher gold climbed, and vice versa.
Gold is the quintessential “anti-dollar” — a place to turn for those who distrust fiat currency — so it seemed natural that prices would rise in a world of low real interest rates and cheap dollars. Or when rates went up, gold, which pays no yield, naturally became less attractive, sending prices tumbling.
Well, not anymore.
As inflation-adjusted rates soared this year to the highest since the financial crisis, bullion has barely blinked. Real yields — measured by the 10-year Treasury inflation-protected securities, or TIPS, — jumped again on Thursday to the highest since 2009, while spot gold nudged down a mere 0.5% the same day. The last time real rates were this high, gold was about half the price.
What determines the price of gold? For much of the past decade the answer was easy: the price of money. The lower rates fell, the higher gold climbed, and vice versa.
Gold is the quintessential “anti-dollar” — a place to turn for those who distrust fiat currency — so it seemed natural that prices would rise in a world of low real interest rates and cheap dollars. Or when rates went up, gold, which pays no yield, naturally became less attractive, sending prices tumbling.
Well, not anymore.
As inflation-adjusted rates soared this year to the highest since the financial crisis, bullion has barely blinked. Real yields — measured by the 10-year Treasury inflation-protected securities, or TIPS, — jumped again on Thursday to the highest since 2009, while spot gold nudged down a mere 0.5% the same day. The last time real rates were this high, gold was about half the price.
Gulf stocks mixed amid rate hike woes; Egypt outperforms | Reuters
Gulf stocks mixed amid rate hike woes; Egypt outperforms | Reuters
Most stock markets in the Middle East put in a mixed performance on Sunday following the Federal Reserve's signal of one more rate hike this year, while Egypt's main equity index hit a record high on strong gains in fertilizer and chemical shares.
The six-member Gulf Cooperation Council's monetary policy is usually guided by Fed policy as five of them have their currencies pegged to the dollar, while Kuwait's dinar is linked to a basket of currencies believed to be dominated by the greenback.
The Qatari benchmark stock index (.QSI) fell 0.3%, dragged down by almost all the sectors with financials leading the declines.
Qatar National Bank (QNBK.QA), the Gulf's biggest lender, was down 0.7% while heavyweight Commercial Bank (COMB.QA) dropped 1.3%.
Kuwait's premier market index (.BKP) fell 1.6%, its 7th consecutive session of losses, as most of its constituents were in negative territory.
Outside the Gulf, Egypt's blue-chip index (.EGX30), closed up 0.6%, hitting an all-time high. It was boosted by a more than 7% jump to a five-month peak in Abu Qir fertilizers and Chemical Industries Co (ABUK.CA), and a 4.7% rise in Misr Fertilizer Production (MFPC.CA).
Stock markets in Saudi Arabia are closed for the kingdom’s national day holiday while the UAE bourse is closed over the weekend as last year it shifted to a new Monday to Friday working week to better align with global markets.
Most stock markets in the Middle East put in a mixed performance on Sunday following the Federal Reserve's signal of one more rate hike this year, while Egypt's main equity index hit a record high on strong gains in fertilizer and chemical shares.
The six-member Gulf Cooperation Council's monetary policy is usually guided by Fed policy as five of them have their currencies pegged to the dollar, while Kuwait's dinar is linked to a basket of currencies believed to be dominated by the greenback.
The Qatari benchmark stock index (.QSI) fell 0.3%, dragged down by almost all the sectors with financials leading the declines.
Qatar National Bank (QNBK.QA), the Gulf's biggest lender, was down 0.7% while heavyweight Commercial Bank (COMB.QA) dropped 1.3%.
Kuwait's premier market index (.BKP) fell 1.6%, its 7th consecutive session of losses, as most of its constituents were in negative territory.
Outside the Gulf, Egypt's blue-chip index (.EGX30), closed up 0.6%, hitting an all-time high. It was boosted by a more than 7% jump to a five-month peak in Abu Qir fertilizers and Chemical Industries Co (ABUK.CA), and a 4.7% rise in Misr Fertilizer Production (MFPC.CA).
Stock markets in Saudi Arabia are closed for the kingdom’s national day holiday while the UAE bourse is closed over the weekend as last year it shifted to a new Monday to Friday working week to better align with global markets.
Supermarket franchisee Spinneys #Dubai plans IPO in 2024
Supermarket franchisee Spinneys Dubai plans IPO in 2024
Spinneys Dubai LLC, the franchisee of the supermarket chain in the United Arab Emirates and Oman, is planning an initial public offering of the business in the second quarter of 2024, three sources with direct knowledge of the matter said.
Albwardy Investment, the franchise's 100% owner, hired Rothschild & Co to advise on the planned IPO, the sources said, requesting anonymity as the plans are not public.
It invited banks this week to pitch for roles in the offering, expected to be up to 30% of the company, the sources added.
Spinneys, Albwardy and Rothschild did not immediately respond to Reuters' requests for comment.
The potential IPO of Spinneys Dubai, planned on the Dubai Financial Market, would add to the small but growing regional food retail sector.
Americana Restaurants, the Middle East and North Africa franchisee of fast food restaurants KFC and Pizza Hut, as well as a seller of frozen foods, debuted in a dual listing in Abu Dhabi and Riyadh in December.
Lulu Group, a hypermarket and mall operator, expects its IPO in the first half of 2024, its chairman said earlier this month, adding that it hired Moelis & Co to advise it, confirming an October 2022 Reuters report.
Spinneys Dubai LLC, the franchisee of the supermarket chain in the United Arab Emirates and Oman, is planning an initial public offering of the business in the second quarter of 2024, three sources with direct knowledge of the matter said.
Albwardy Investment, the franchise's 100% owner, hired Rothschild & Co to advise on the planned IPO, the sources said, requesting anonymity as the plans are not public.
It invited banks this week to pitch for roles in the offering, expected to be up to 30% of the company, the sources added.
Spinneys, Albwardy and Rothschild did not immediately respond to Reuters' requests for comment.
The potential IPO of Spinneys Dubai, planned on the Dubai Financial Market, would add to the small but growing regional food retail sector.
Americana Restaurants, the Middle East and North Africa franchisee of fast food restaurants KFC and Pizza Hut, as well as a seller of frozen foods, debuted in a dual listing in Abu Dhabi and Riyadh in December.
Lulu Group, a hypermarket and mall operator, expects its IPO in the first half of 2024, its chairman said earlier this month, adding that it hired Moelis & Co to advise it, confirming an October 2022 Reuters report.
Lucid Motors Manufacturing Unit in KAEC wins operating licence #SaudiArabia
Lucid Motors Manufacturing Unit in KAEC wins operating licence
Saudi Arabia’s Economic Cities and Special Zones Authority (ECZA) has given Lucid an operating licence for its manufacturing unit established at King Abdullah Economic City (KAEC). The permit was handed over at a ceremony organised at the ECZA office in KAEC.
The commencement of operations at the production unit of Lucid, a pioneering US-based e-vehicle company that utilises innovative and sustainable technologies to design and produce luxury cars, in Saudi Arabia marks a major milestone in the nation's efforts to transform itself into a global e-vehicle manufacturer, a Saudi Press Agency report said.
The state-of-the-art facility spans an area of over 1.35 million sq m, occupying about 31% of the total area of the KAEC SEZ’s auto hub, a designated area allocated for the automotive industry.
Saudi Arabia’s Economic Cities and Special Zones Authority (ECZA) has given Lucid an operating licence for its manufacturing unit established at King Abdullah Economic City (KAEC). The permit was handed over at a ceremony organised at the ECZA office in KAEC.
The commencement of operations at the production unit of Lucid, a pioneering US-based e-vehicle company that utilises innovative and sustainable technologies to design and produce luxury cars, in Saudi Arabia marks a major milestone in the nation's efforts to transform itself into a global e-vehicle manufacturer, a Saudi Press Agency report said.
The state-of-the-art facility spans an area of over 1.35 million sq m, occupying about 31% of the total area of the KAEC SEZ’s auto hub, a designated area allocated for the automotive industry.
Saturday 23 September 2023
Latin American Bank Turns to Asia, Middle East for Fresh Capital - Bloomberg
Latin American Bank Turns to Asia, Middle East for Fresh Capital - Bloomberg
Corporacion Andina de Fomento, a Latin American development bank that will lend over $14 billion this year, is seeking to add new members from Europe, the Middle East and Asian countries to finance new projects in the region.
The Caracas-based bank known as CAF, one of Latin America’s largest lenders, is in conversations with several countries including Saudi Arabia, Qatar, India and Korea to join its existing 21 members, President Sergio Diaz-Granados said. The new shareholders could get a stake of as much as 15% of the bank and two seats on its board but CAF will continue to be controlled by Latin American nations, he said.
“We are in this process of seeking partners that contribute to the bank without the bank losing its essence,” Diaz-Granados told reporters in Mexico City on Friday. “The idea is to double the size of the bank by 2030, and you can do that basically with capitalization by the countries.”
The process of expanding the bank to new members will take time, with CAF more immediately focused on adding some Caribbean nations to reach between 27 and 28 members. Spain and Portugal are currently the only two members that aren’t from the region.
Corporacion Andina de Fomento, a Latin American development bank that will lend over $14 billion this year, is seeking to add new members from Europe, the Middle East and Asian countries to finance new projects in the region.
The Caracas-based bank known as CAF, one of Latin America’s largest lenders, is in conversations with several countries including Saudi Arabia, Qatar, India and Korea to join its existing 21 members, President Sergio Diaz-Granados said. The new shareholders could get a stake of as much as 15% of the bank and two seats on its board but CAF will continue to be controlled by Latin American nations, he said.
“We are in this process of seeking partners that contribute to the bank without the bank losing its essence,” Diaz-Granados told reporters in Mexico City on Friday. “The idea is to double the size of the bank by 2030, and you can do that basically with capitalization by the countries.”
The process of expanding the bank to new members will take time, with CAF more immediately focused on adding some Caribbean nations to reach between 27 and 28 members. Spain and Portugal are currently the only two members that aren’t from the region.
Blue Owl Plans to Open #AbuDhabi Office to Strengthen Ties With Mubadala - Bloomberg
Blue Owl Plans to Open Abu Dhabi Office to Strengthen Ties With Mubadala - Bloomberg
Private credit lender Blue Owl Capital Inc. is working to open an office and hire a team in Abu Dhabi focused on capital raising, a move to help strengthen its relationship with wealth fund Mubadala Investment Co., according to a person with knowledge of the matter.
The office has become a priority for Blue Owl as it expands its presence in the Middle East, said the person, who asked not to be identified as the details are private. The private credit lender recently secured a $1 billion investment commitment from the Abu Dhabi wealth fund.
Representatives for Blue Owl and Mubadala declined to comment.
Blue Owl, which has about $150 billion under management, is one of the largest players in the private credit market. Some of its recent deals include a $2.65 billion debt package to support Francisco Partners and TPG Inc.’s acquisition of New Relic Inc. as well as a $2.7 billion financing to help fund BradyIFS’s acquisition of Envoy Solutions.
Blue Owl has also been formalizing plans to open an office and hire a team in nearby Dubai to tap into growing demand from Middle Eastern wealth funds in alternative assets. The firm plans to invest directly in the region once the new offices are established, the person said.
The Middle East offices will add to the nearly dozen locations around the globe where the firm already has a presence including Hong Kong, London, Singapore and Tokyo.
Private credit lender Blue Owl Capital Inc. is working to open an office and hire a team in Abu Dhabi focused on capital raising, a move to help strengthen its relationship with wealth fund Mubadala Investment Co., according to a person with knowledge of the matter.
The office has become a priority for Blue Owl as it expands its presence in the Middle East, said the person, who asked not to be identified as the details are private. The private credit lender recently secured a $1 billion investment commitment from the Abu Dhabi wealth fund.
Representatives for Blue Owl and Mubadala declined to comment.
Blue Owl, which has about $150 billion under management, is one of the largest players in the private credit market. Some of its recent deals include a $2.65 billion debt package to support Francisco Partners and TPG Inc.’s acquisition of New Relic Inc. as well as a $2.7 billion financing to help fund BradyIFS’s acquisition of Envoy Solutions.
Blue Owl has also been formalizing plans to open an office and hire a team in nearby Dubai to tap into growing demand from Middle Eastern wealth funds in alternative assets. The firm plans to invest directly in the region once the new offices are established, the person said.
The Middle East offices will add to the nearly dozen locations around the globe where the firm already has a presence including Hong Kong, London, Singapore and Tokyo.
Friday 22 September 2023
#Dubai declines on profit-taking, #AbuDhabi marginally up | Reuters
Dubai declines on profit-taking, Abu Dhabi marginally up | Reuters
The Dubai index closed lower on Friday as investors moved to take profit from the previous session, while Abu Dhabi index ended marginally higher.
Dubai's main index (.DFMGI) retreated 0.3% after hitting an eight-year high on Thursday, dragged by blue-chip developer Emaar Properties (EMAR.DU) and Islamic lender MashreqBank (MASB.DU), which fell 2.9% and 6.1%, respectively.
However, the index posted its highest weekly gains in over two months, settling 3.1% higher, according to LSEG data.
Dubai's stock market witnessed a strong performance this week thanks to the positive sentiment and strong gains in banking and real estate, said George Pavel, General Manager at Capex.com Middle East.
Meanwhile, the Abu Dhabi benchmark index (.FTFADGI) edged 0.04% higher, supported by a 2.8% climb in state-run utility firm Abu Dhabi National Energy Company (TAQA.AD).
Among the winners, Mubadala-backed satellite firm Al Yah Satellite Communications (YAHSAT.AD) jumped 1.9% after the firm secured $5.1 billion satellite capacity and managed services mandate from the UAE government.
Crude prices, a key component of Gulf's economy, rose 1% on Friday, snapping three sessions of loss as Russia's ban on gasoline and diesel export to fight domestic shortages deepened supply concerns.
Brent crude was up 1% or $0.91 to $94.23 a barrel by 1120 GMT.
The Dubai index closed lower on Friday as investors moved to take profit from the previous session, while Abu Dhabi index ended marginally higher.
Dubai's main index (.DFMGI) retreated 0.3% after hitting an eight-year high on Thursday, dragged by blue-chip developer Emaar Properties (EMAR.DU) and Islamic lender MashreqBank (MASB.DU), which fell 2.9% and 6.1%, respectively.
However, the index posted its highest weekly gains in over two months, settling 3.1% higher, according to LSEG data.
Dubai's stock market witnessed a strong performance this week thanks to the positive sentiment and strong gains in banking and real estate, said George Pavel, General Manager at Capex.com Middle East.
Meanwhile, the Abu Dhabi benchmark index (.FTFADGI) edged 0.04% higher, supported by a 2.8% climb in state-run utility firm Abu Dhabi National Energy Company (TAQA.AD).
Among the winners, Mubadala-backed satellite firm Al Yah Satellite Communications (YAHSAT.AD) jumped 1.9% after the firm secured $5.1 billion satellite capacity and managed services mandate from the UAE government.
Crude prices, a key component of Gulf's economy, rose 1% on Friday, snapping three sessions of loss as Russia's ban on gasoline and diesel export to fight domestic shortages deepened supply concerns.
Brent crude was up 1% or $0.91 to $94.23 a barrel by 1120 GMT.
#UAE Energy Producer Masdar to Borrow Up to $1 Billion With Second Green Bond - Bloomberg
UAE Energy Producer Masdar to Borrow Up to $1 Billion With Second Green Bond - Bloomberg
Masdar, a major operator of solar power plants in the United Arab Emirates, is planning to raise as much as $1 billion through its second offering of green bonds, after borrowing $750 million earlier this year.
The company will likely issue more green bonds in the next six to nine months, potentially in the US, Chief Financial Officer Niall Hannigan said in an interview on Wednesday in New York. The prospective issuance is part of its plan to raise at least $3 billion to fund clean energy projects, he added.
“$750 million to $1 billion is probably where we’re looking,” said Hannigan. “We think that fits about right but that will be something that we will assess at that time.”
Ultimately, the size of future deals will depend on the pipeline of projects that it needs to fund and how much it can afford to borrow given its credit rating, Hannigan said. The company is rated A2 by Moody’s Investors Service and A+ by Fitch Ratings Inc.
Masdar, a major operator of solar power plants in the United Arab Emirates, is planning to raise as much as $1 billion through its second offering of green bonds, after borrowing $750 million earlier this year.
The company will likely issue more green bonds in the next six to nine months, potentially in the US, Chief Financial Officer Niall Hannigan said in an interview on Wednesday in New York. The prospective issuance is part of its plan to raise at least $3 billion to fund clean energy projects, he added.
“$750 million to $1 billion is probably where we’re looking,” said Hannigan. “We think that fits about right but that will be something that we will assess at that time.”
Ultimately, the size of future deals will depend on the pipeline of projects that it needs to fund and how much it can afford to borrow given its credit rating, Hannigan said. The company is rated A2 by Moody’s Investors Service and A+ by Fitch Ratings Inc.
#Saudi s Make a Splash at World Petroleum Congress Oil Event in Calgary - Bloomberg
Saudis Make a Splash at World Petroleum Congress Oil Event in Calgary - Bloomberg
Saudi Show of Strength
After missing the previous congress in Houston in 2021 as Covid scrambled countless travel plans, the Saudis were back this year, and in a big way. Energy Minister Prince Abdulaziz bin Salman was the star of the opening session on Monday. He said OPEC is targeting market stability and not higher prices, and sounded a note of caution on Chinese demand. Crude futures duly slipped back on his comments, but that only underlined the strength of Saudi influence on the oil market right now. Saudi Aramco boss Amin Nasser followed with a withering assessment of the idea of peak oil consumption.
The country’s sizable delegation was unmissable in the exhibition halls. Monday ended with a lavish roundtable dinner hosted by the Saudis and with guests including Alberta Premier Danielle Smith, investors, analysts, and officials from BP Plc and other companies.
After missing the previous congress in Houston in 2021 as Covid scrambled countless travel plans, the Saudis were back this year, and in a big way. Energy Minister Prince Abdulaziz bin Salman was the star of the opening session on Monday. He said OPEC is targeting market stability and not higher prices, and sounded a note of caution on Chinese demand. Crude futures duly slipped back on his comments, but that only underlined the strength of Saudi influence on the oil market right now. Saudi Aramco boss Amin Nasser followed with a withering assessment of the idea of peak oil consumption.
The country’s sizable delegation was unmissable in the exhibition halls. Monday ended with a lavish roundtable dinner hosted by the Saudis and with guests including Alberta Premier Danielle Smith, investors, analysts, and officials from BP Plc and other companies.
Thursday 21 September 2023
Russia’s War in Ukraine: #UAE Considers Trade Licenses for Sanctioned Tech - Bloomberg
Russia’s War in Ukraine: UAE Considers Trade Licenses for Sanctioned Tech - Bloomberg
The United Arab Emirates is considering introducing export licenses for a list of items including chips and other components that are sanctioned by the US and European Union and used by Russia’s military in Ukraine, according to people familiar with the matter.
If implemented as envisaged, the system could see permits withheld for dual-use goods destined for the battlefield, potentially hurting the Kremlin’s ability to feed its war machine. The people, who spoke on condition of anonymity to discuss private matters, cautioned that the Persian Gulf nation has yet to make a final decision.
Asked about the plan, a UAE official said the country takes its responsibilities as a business hub seriously: “The UAE has a legal export control framework in place and is continuously monitoring the export of dual-use products.”
Russia has so far been able to get around some of the trade restrictions imposed on it by the US, UK and Europe by routing banned goods via third countries such as the UAE, Turkey and some Central Asian nations that have not introduced sanctions themselves.
Already a global logistics and trade hub, the UAE has seen a surge in imports of technology such as semi-conductors and advanced electronics from Europe and the US over the past 18 months. Many of these items have been found in Russian weapons in Ukraine or are needed by Moscow to produce them.
Western officials have ramped up demands in recent months that the UAE stops acting as a gateway for Russia to get around the restrictions. Earlier this month, sanctions envoys from the US, UK and EU visited the UAE to raise their concerns, including that Dubai remains a key transshipment point for components supporting Moscow’s war effort, some of the people said.
The United Arab Emirates is considering introducing export licenses for a list of items including chips and other components that are sanctioned by the US and European Union and used by Russia’s military in Ukraine, according to people familiar with the matter.
If implemented as envisaged, the system could see permits withheld for dual-use goods destined for the battlefield, potentially hurting the Kremlin’s ability to feed its war machine. The people, who spoke on condition of anonymity to discuss private matters, cautioned that the Persian Gulf nation has yet to make a final decision.
Asked about the plan, a UAE official said the country takes its responsibilities as a business hub seriously: “The UAE has a legal export control framework in place and is continuously monitoring the export of dual-use products.”
Russia has so far been able to get around some of the trade restrictions imposed on it by the US, UK and Europe by routing banned goods via third countries such as the UAE, Turkey and some Central Asian nations that have not introduced sanctions themselves.
Already a global logistics and trade hub, the UAE has seen a surge in imports of technology such as semi-conductors and advanced electronics from Europe and the US over the past 18 months. Many of these items have been found in Russian weapons in Ukraine or are needed by Moscow to produce them.
Western officials have ramped up demands in recent months that the UAE stops acting as a gateway for Russia to get around the restrictions. Earlier this month, sanctions envoys from the US, UK and EU visited the UAE to raise their concerns, including that Dubai remains a key transshipment point for components supporting Moscow’s war effort, some of the people said.
Most Gulf markets gain despite hawkish Fed | Reuters
Most Gulf markets gain despite hawkish Fed | Reuters
Most stock markets in the Gulf ended higher on Thursday despite the U.S. Federal Reserve stiffening its hawkish monetary policy stance, although the Saudi index extended losses from the previous session.
The Fed held interest rates steady on Wednesday and projected an increase by year-end, saying monetary policy is likely to be significantly tighter through 2024 than previously thought.
The six-member Gulf Cooperation Council's monetary policy is usually guided by the Fed's decision as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI) advanced 1%, buoyed by a 6.4% rise in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) added 0.2%.
Higher interest rates are typically negative for economic growth, but the United Arab Emirates due to solid demographics, strategic location, diversification and thriving tourism is better positioned to absorb rate hikes than other major economies, said Vijay Valecha, chief investment officer, Century Financial.
The Qatari benchmark (.QSI) gained 0.3%, with petrochemical maker Industries Qatar (IQCD.QA) rising 0.9% and Qatar Navigation (QNNC.QA) closing 3.3% higher.
Saudi Arabia's benchmark index (.TASI) declined 1%, dragged down by a 1.5% fall in Al Rajhi Bank (1120.SE) and a 0.5% decrease in oil giant Saudi Aramco (2222.SE).
Oil prices - a key catalyst for the Gulf's financial markets - fell after posting the largest decline in a month in the previous session, as the Fed rate hike expectations offset the impact of drawdowns in U.S. crude stockpiles.
Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 1.4%, hitting its highest, as most of its constituents were in the positive territory including Commercial International Bank (COMI.CA), which was up 1.4%.
Most stock markets in the Gulf ended higher on Thursday despite the U.S. Federal Reserve stiffening its hawkish monetary policy stance, although the Saudi index extended losses from the previous session.
The Fed held interest rates steady on Wednesday and projected an increase by year-end, saying monetary policy is likely to be significantly tighter through 2024 than previously thought.
The six-member Gulf Cooperation Council's monetary policy is usually guided by the Fed's decision as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI) advanced 1%, buoyed by a 6.4% rise in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) added 0.2%.
Higher interest rates are typically negative for economic growth, but the United Arab Emirates due to solid demographics, strategic location, diversification and thriving tourism is better positioned to absorb rate hikes than other major economies, said Vijay Valecha, chief investment officer, Century Financial.
The Qatari benchmark (.QSI) gained 0.3%, with petrochemical maker Industries Qatar (IQCD.QA) rising 0.9% and Qatar Navigation (QNNC.QA) closing 3.3% higher.
Saudi Arabia's benchmark index (.TASI) declined 1%, dragged down by a 1.5% fall in Al Rajhi Bank (1120.SE) and a 0.5% decrease in oil giant Saudi Aramco (2222.SE).
Oil prices - a key catalyst for the Gulf's financial markets - fell after posting the largest decline in a month in the previous session, as the Fed rate hike expectations offset the impact of drawdowns in U.S. crude stockpiles.
Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 1.4%, hitting its highest, as most of its constituents were in the positive territory including Commercial International Bank (COMI.CA), which was up 1.4%.
A Slump in #SaudiArabia’s Oil Revenue Has Probably Ended: Chart - Bloomberg
A Slump in Saudi Arabia’s Oil Revenue Has Probably Ended: Chart - Bloomberg
Saudi Arabia’s revenues from oil exports dropped to $18.7 billion in July as the kingdom enacted supply cuts of 1 million barrels per day. While that’s the lowest figure since September 2021, there will probably be a significant improvement for August and this month, if not longer. Those cuts, which the kingdom’s likely to prolong until at least the end of 2023, have pushed up prices, with Brent crude now above $90 a barrel.
Saudi Arabia’s revenues from oil exports dropped to $18.7 billion in July as the kingdom enacted supply cuts of 1 million barrels per day. While that’s the lowest figure since September 2021, there will probably be a significant improvement for August and this month, if not longer. Those cuts, which the kingdom’s likely to prolong until at least the end of 2023, have pushed up prices, with Brent crude now above $90 a barrel.
#Dubai Real Estate: Buyers Queue Up for $5 Million Homes in Palm Jebel Ali - Bloomberg
Dubai Real Estate: Buyers Queue Up for $5 Million Homes in Palm Jebel Ali - Bloomberg
Hundreds of buyers scrambled to snap up luxury homes on the largest of Dubai’s palm-shaped islands where villas are going for 10 times the price of when the project was launched — but never built — two decades ago.
Brokers and investors queued in 100° Fahrenheit (38° Celsius) heat from 6 a.m. on Wednesday outside Nakheel PJSC’s sales center where the government-backed developer is selling hundreds of five-to-seven bedroom villas on the undeveloped Palm Jebel Ali — about 50 kilometers from downtown Dubai. Homes start at 18.7 million dirhams ($5.1 million), while the cheapest plots of land are selling for about 40 million dirhams.
Armed with check-books, brokers — many representing buyers from Russia and India — pleaded with staff to let them into Nakheel’s heavily-guarded offices at the base of the city’s first and most famous man-made island, Palm Jumeirah. One employee handed out water and paper towels to the crowd.
Dubai is reviving the Palm Jebel Ali project years after it was halted as the emirate seeks to cash in on an influx of newcomers, which ended a seven-year property slump and pushed prices to record levels. The luxury end of the market, in particular, has seen a spectacular reversal with the city soaring to the top spot of global rankings in the second quarter for transactions of homes valued at $10 million or above, according to real estate consultancy Knight Frank.
Hundreds of buyers scrambled to snap up luxury homes on the largest of Dubai’s palm-shaped islands where villas are going for 10 times the price of when the project was launched — but never built — two decades ago.
Brokers and investors queued in 100° Fahrenheit (38° Celsius) heat from 6 a.m. on Wednesday outside Nakheel PJSC’s sales center where the government-backed developer is selling hundreds of five-to-seven bedroom villas on the undeveloped Palm Jebel Ali — about 50 kilometers from downtown Dubai. Homes start at 18.7 million dirhams ($5.1 million), while the cheapest plots of land are selling for about 40 million dirhams.
Armed with check-books, brokers — many representing buyers from Russia and India — pleaded with staff to let them into Nakheel’s heavily-guarded offices at the base of the city’s first and most famous man-made island, Palm Jumeirah. One employee handed out water and paper towels to the crowd.
Dubai is reviving the Palm Jebel Ali project years after it was halted as the emirate seeks to cash in on an influx of newcomers, which ended a seven-year property slump and pushed prices to record levels. The luxury end of the market, in particular, has seen a spectacular reversal with the city soaring to the top spot of global rankings in the second quarter for transactions of homes valued at $10 million or above, according to real estate consultancy Knight Frank.
#Qatar, #UAE, Other Gulf Central Banks Hold Interest Rates Unchanged Like Fed - Bloomberg
Qatar, UAE, Other Gulf Central Banks Hold Interest Rates Unchanged Like Fed - Bloomberg
Central banks in the Gulf including Qatar and the United Arab Emirates followed the Federal Reserve’s decision to keep interest rates unchanged in order to protect their currencies’ peg against the US dollar.
The majority of central banks in the GCC mimic the Fed’s rate moves due to the greenback-pegging policy, with Kuwait the only exception in the six-member economic bloc as its dinar is linked to a basket of currencies.
Qatar said it would keep its repo rate unchanged 6%, its lending rate at 6.25% and its deposit rate at 5.75%
The UAE maintained its base rate applicable to the overnight deposit facility at 5.40%.
Central banks in the Gulf including Qatar and the United Arab Emirates followed the Federal Reserve’s decision to keep interest rates unchanged in order to protect their currencies’ peg against the US dollar.
The majority of central banks in the GCC mimic the Fed’s rate moves due to the greenback-pegging policy, with Kuwait the only exception in the six-member economic bloc as its dinar is linked to a basket of currencies.
Qatar said it would keep its repo rate unchanged 6%, its lending rate at 6.25% and its deposit rate at 5.75%
The UAE maintained its base rate applicable to the overnight deposit facility at 5.40%.
#UAE'S Fujairah Aug marine fuel sales hit eight-month highs | Reuters
UAE'S Fujairah Aug marine fuel sales hit eight-month highs | Reuters
Marine fuel sales at the UAE's Fujairah, the world's third-largest bunker hub, scaled eight-month highs in August, although volumes remained lower from a year-ago period, data showed.
Bunker sales at Fujairah provide a gauge of shipping market sentiment in the Middle East.
August bunker sales, excluding lubricants, were at 677,503 cubic metres, or about 671,000 metric tons, up 2.7% month-on-month but down 6.3% from the same month last year, according to the Fujairah Oil Industry Zone (FOIZ) data, which is published by S&P Global Commodity Insights.
The uptick in August was driven by a climb in high-sulphur bunker sales, which rose 12.7% month-on-month to 196,343 cubic meters, or about 195,000 metric tons.
Marine fuel sales at the UAE's Fujairah, the world's third-largest bunker hub, scaled eight-month highs in August, although volumes remained lower from a year-ago period, data showed.
Bunker sales at Fujairah provide a gauge of shipping market sentiment in the Middle East.
August bunker sales, excluding lubricants, were at 677,503 cubic metres, or about 671,000 metric tons, up 2.7% month-on-month but down 6.3% from the same month last year, according to the Fujairah Oil Industry Zone (FOIZ) data, which is published by S&P Global Commodity Insights.
The uptick in August was driven by a climb in high-sulphur bunker sales, which rose 12.7% month-on-month to 196,343 cubic meters, or about 195,000 metric tons.
Gulf stocks trade mixed on hawkish Fed stance | Reuters
Gulf stocks trade mixed on hawkish Fed stance | Reuters
Major stock markets in the Gulf were mixed in early trade on Thursday after the U.S. Federal Reserve signalled that interest rates could stay higher for longer.
The U.S. central bank held interest rates steady on Wednesday and projected an increase by year-end, saying monetary policy is likely to be significantly tighter through 2024 than previously thought.
The six-member Gulf Cooperation Council's monetary policy is usually guided by the Fed's decision as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) dropped 0.6%, on course to extend losses from the previous session, hit by a 1.2% fall in Saudi National Bank (1180.SE), the country's biggest lender.
Among other losers, oil giant Saudi Aramco (2222.SE) retreated 0.6%.
Separately, Saudi oil and gas driller ADES Holding said on Wednesday it has set the final price for its initial public offering (IPO), implying a valuation of 15.242 billion riyals ($4.06 billion) for the Saudi sovereign wealth fund-backed firm.
Dubai's main share index (.DFMGI) gained 0.5%, led by a 4.5% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 0.9% increase in Sharia-compliant lender Dubai Islamic Bank (DISB.DU).
In Abu Dhabi, the index (.FTFADGI) eased 0.1%
Oil prices - a key catalyst for the Gulf's financial markets - fell in early Asian trade after posting the largest fall in a month in the previous session, as U.S. rate hike expectations offset the impact of drawdowns in U.S. crude stockpiles.
The Qatari benchmark (.QSI) gained 0.1%, with petrochemical maker Industries Qatar (IQCD.QA) adding 0.5%.
Major stock markets in the Gulf were mixed in early trade on Thursday after the U.S. Federal Reserve signalled that interest rates could stay higher for longer.
The U.S. central bank held interest rates steady on Wednesday and projected an increase by year-end, saying monetary policy is likely to be significantly tighter through 2024 than previously thought.
The six-member Gulf Cooperation Council's monetary policy is usually guided by the Fed's decision as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) dropped 0.6%, on course to extend losses from the previous session, hit by a 1.2% fall in Saudi National Bank (1180.SE), the country's biggest lender.
Among other losers, oil giant Saudi Aramco (2222.SE) retreated 0.6%.
Separately, Saudi oil and gas driller ADES Holding said on Wednesday it has set the final price for its initial public offering (IPO), implying a valuation of 15.242 billion riyals ($4.06 billion) for the Saudi sovereign wealth fund-backed firm.
Dubai's main share index (.DFMGI) gained 0.5%, led by a 4.5% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 0.9% increase in Sharia-compliant lender Dubai Islamic Bank (DISB.DU).
In Abu Dhabi, the index (.FTFADGI) eased 0.1%
Oil prices - a key catalyst for the Gulf's financial markets - fell in early Asian trade after posting the largest fall in a month in the previous session, as U.S. rate hike expectations offset the impact of drawdowns in U.S. crude stockpiles.
The Qatari benchmark (.QSI) gained 0.1%, with petrochemical maker Industries Qatar (IQCD.QA) adding 0.5%.
Wednesday 20 September 2023
Mideast Stocks: Most Gulf markets in red ahead of Fed's decision
Mideast Stocks: Most Gulf markets in red ahead of Fed's decision
Most stock markets in the Gulf ended lower on Wednesday ahead of the U.S. Federal Reserve's interest rate decision, although the Dubai index bucked the trend to close higher. Investors are awaiting a raft of central bank interest rate decisions this week to assess the outlook for economic growth and fuel demand.
The U.S. central bank is widely expected to keep interest rates on hold, but the focus will be on its projected policy path. The six-member Gulf Cooperation Council's monetary policy is usually guided by the Fed's decision as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index eased 0.1%, with Dr Sulaiman Al Habib Medical Services dropping 1.8%. Separately, Saudi oil and gas driller ADES Holding said it had set the final price for its initial public offering (IPO), implying a valuation of 15.242 billion riyals ($4.06 billion) for the Saudi sovereign wealth fund-backed firm.
In Qatar, the index fell 0.2%, hit by a 0.7% drop in Qatar Islamic Bank. Oil prices, which fuel the Gulf's economy, fell ahead of the Federal Reserve's interest rate decision, with investors uncertain when peak rates will be hit and how much of an impact it will have on energy demand.
The Abu Dhabi index finished flat.
Dubai's main share index, however, advanced 1.6%, extending gains for a third session, with blue-chip developer Emaar Properties jumping 5.2%.
Outside the Gulf, Egypt's blue-chip index declined 0.8%, snapping a five-day winning streak, weighed down by a 1% fall in Commercial International Bank.
Most stock markets in the Gulf ended lower on Wednesday ahead of the U.S. Federal Reserve's interest rate decision, although the Dubai index bucked the trend to close higher. Investors are awaiting a raft of central bank interest rate decisions this week to assess the outlook for economic growth and fuel demand.
The U.S. central bank is widely expected to keep interest rates on hold, but the focus will be on its projected policy path. The six-member Gulf Cooperation Council's monetary policy is usually guided by the Fed's decision as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index eased 0.1%, with Dr Sulaiman Al Habib Medical Services dropping 1.8%. Separately, Saudi oil and gas driller ADES Holding said it had set the final price for its initial public offering (IPO), implying a valuation of 15.242 billion riyals ($4.06 billion) for the Saudi sovereign wealth fund-backed firm.
In Qatar, the index fell 0.2%, hit by a 0.7% drop in Qatar Islamic Bank. Oil prices, which fuel the Gulf's economy, fell ahead of the Federal Reserve's interest rate decision, with investors uncertain when peak rates will be hit and how much of an impact it will have on energy demand.
The Abu Dhabi index finished flat.
Dubai's main share index, however, advanced 1.6%, extending gains for a third session, with blue-chip developer Emaar Properties jumping 5.2%.
Outside the Gulf, Egypt's blue-chip index declined 0.8%, snapping a five-day winning streak, weighed down by a 1% fall in Commercial International Bank.
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