IMF Says Gulf Economies Really Are Weaning Themselves Off Oil - Bloomberg
Governments in the energy-producing Gulf region have made progress toward diversifying their economies away from oil by opening up to private investment and breaking the taboo of collecting taxes, the head of the International Monetary Fund said.
“There is this impression that the only reason the Gulf countries are doing well is high oil and gas prices,” IMF Managing Director Kristalina Georgieva told a conference in Dubai on Monday. “This is not true.”
Governments that were once locked into a cycle of splurging during times of high oil prices have become more careful with spending. And Georgieva also pointed to a better environment for private investments and job creation through competition.
“They have been reforming relentlessly how they raise money and how they spend money,” she said, citing a reliance on collecting taxes in a region of absolute monarchies that have historically avoided them, and more attention to public spending on education and health.
Saudi Arabia, which saw its non-oil economy grow at the fastest pace in over a year at the end of 2022, has said it wants to use its oil windfall to accelerate projects that contribute to that shift.
Monday, 13 February 2023
Mideast Stocks: Major Gulf bourses end mixed ahead of U.S. inflation data
Mideast Stocks: Major Gulf bourses end mixed ahead of U.S. inflation data
Major Gulf stock markets closed mixed on Monday, ahead of crucial U.S. inflation data that could influence the Federal Reserve's stance on interest rate hikes.
Oil prices - a key catalyst for the Gulf's financial markets - slipped as investors focused on short-term demand concerns ahead of the inflation data. Brent crude futures fell $0.4, or 0.51%, to $85.95 a barrel by 1136 GMT.
Saudi Arabia's benchmark index advanced 1%, lifted by solid corporate earnings and reports of a strong pipeline of IPOs. The chairman of Saudi CMA said on Sunday that 23 companies are waiting to go public on the Tadawul Exchange, subject to market conditions amid what he called a very healthy pipeline of listings.
Luxury home builder Retal Urban Development gained 1.1%, while hospital operator Sulaiman Al Habib jumped 3.3%. Riyad Bank surged 6.1% after the lender reported a 17% jump in full-year profit to 7.02 billion riyals ($1.87 billion).
Gains in heavyweight real estate and consumer sector stocks helped Dubai's benchmark stock index extend gains to the ninth session in a row as the index settled 0.5% higher. Among gainers, low-cost carrier Air Arabia jumped 3.5% ahead of reporting full-year earnings later in the day.
The Dubai stock market could come under pressure if traders move to secure their gains after last week's increase, said Farah Mourad, senior market analyst at XTB MENA.
In Abu Dhabi, the benchmark stock index dropped 0.2% to snap a 10-session winning streak, weighed down by a 0.3% decrease in conglomerate International Holding Company. Investment firm Multiply Group tumbled 4.5%.
The Qatari stock index closed 0.5% lower, falling to a seven-month low. Petrochemical maker Industries Qatar declined 3.4% after it posted a 28% decrease in its fourth-quarter net profit on Friday.
Outside the Gulf, Egypt's blue-chip index fell 0.4%, as digital payment firm Fawry For Banking Technology And Electronic Payment slipped 2.4%.
Oil prices - a key catalyst for the Gulf's financial markets - slipped as investors focused on short-term demand concerns ahead of the inflation data. Brent crude futures fell $0.4, or 0.51%, to $85.95 a barrel by 1136 GMT.
Saudi Arabia's benchmark index advanced 1%, lifted by solid corporate earnings and reports of a strong pipeline of IPOs. The chairman of Saudi CMA said on Sunday that 23 companies are waiting to go public on the Tadawul Exchange, subject to market conditions amid what he called a very healthy pipeline of listings.
Luxury home builder Retal Urban Development gained 1.1%, while hospital operator Sulaiman Al Habib jumped 3.3%. Riyad Bank surged 6.1% after the lender reported a 17% jump in full-year profit to 7.02 billion riyals ($1.87 billion).
Gains in heavyweight real estate and consumer sector stocks helped Dubai's benchmark stock index extend gains to the ninth session in a row as the index settled 0.5% higher. Among gainers, low-cost carrier Air Arabia jumped 3.5% ahead of reporting full-year earnings later in the day.
The Dubai stock market could come under pressure if traders move to secure their gains after last week's increase, said Farah Mourad, senior market analyst at XTB MENA.
In Abu Dhabi, the benchmark stock index dropped 0.2% to snap a 10-session winning streak, weighed down by a 0.3% decrease in conglomerate International Holding Company. Investment firm Multiply Group tumbled 4.5%.
The Qatari stock index closed 0.5% lower, falling to a seven-month low. Petrochemical maker Industries Qatar declined 3.4% after it posted a 28% decrease in its fourth-quarter net profit on Friday.
Outside the Gulf, Egypt's blue-chip index fell 0.4%, as digital payment firm Fawry For Banking Technology And Electronic Payment slipped 2.4%.
Watch Alhussan: MOUs Signed with Egypt, #Qatar, Singapore Exchanges - Bloomberg video
Watch Alhussan: MOUs Signed with Egypt, Qatar, Singapore Exchanges - Bloomberg
Khalid Alhussan, Group CEO, Saudi Tadawul Group, discusses attracting issuers and investors to Saudi Arabia's stock exchange. He talks with Bloomberg TV Anchor Yousef Gamal El-Din from the Saudi Capital Market Forum in Riyadh. (Source: Bloomberg)
Khalid Alhussan, Group CEO, Saudi Tadawul Group, discusses attracting issuers and investors to Saudi Arabia's stock exchange. He talks with Bloomberg TV Anchor Yousef Gamal El-Din from the Saudi Capital Market Forum in Riyadh. (Source: Bloomberg)
Watch #Saudi Exchange CEO: Almost 100 IPOs this Year - Bloomberg video
Watch Saudi Exchange CEO: Almost 100 IPOs this Year - Bloomberg
Mohammed Al Rumaih, CEO, Saudi Exchange, discusses the appetite for new listings on the Saudi stock exchange. He talks with Bloomberg TV anchor Yousef Gamal El-Din from the Saudi Capital Market Forum in Riyadh. (Source: Bloomberg)
Mohammed Al Rumaih, CEO, Saudi Exchange, discusses the appetite for new listings on the Saudi stock exchange. He talks with Bloomberg TV anchor Yousef Gamal El-Din from the Saudi Capital Market Forum in Riyadh. (Source: Bloomberg)
World Bank and #AbuDhabi fund to invest $1.5 bln in emerging market energy transition | Reuters
World Bank and Abu Dhabi fund to invest $1.5 bln in emerging market energy transition | Reuters
The World Bank's International Finance Corporation (IFC) investment arm will on Monday sign an agreement with the Abu Dhabi Fund for Development on a joint $1.5 billion investment in emerging markets energy transition, the IFC head said Monday.
"I'm signing today with the Abu Dhabi Development Fund a platform for $1.5 billion where we are co-investing with them in emerging countries around energy transition," IFC Director General Makhtar Diop said at the World Government Summit without providing further detail.
The World Bank's International Finance Corporation (IFC) investment arm will on Monday sign an agreement with the Abu Dhabi Fund for Development on a joint $1.5 billion investment in emerging markets energy transition, the IFC head said Monday.
"I'm signing today with the Abu Dhabi Development Fund a platform for $1.5 billion where we are co-investing with them in emerging countries around energy transition," IFC Director General Makhtar Diop said at the World Government Summit without providing further detail.
#Dubai Aerospace posts $258mln full-year 2022 profit
Dubai Aerospace posts $258mln full-year 2022 profit
Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft lessors, reported a 72% increase in profit for the full year in 2022.
Profit before exceptional items for the year ended December 31, 2022 reached $258.6 million, from $150 million in the preceding year, according to a disclosure on Nasdaq Dubai on Monday.
However, total revenue for the period reached $1.137 billion, down by 8% from $1.238 billion in 2021.
Adjusted EBITDA for the full year reached more than $1.07 billion, also down from $1.156 billion in the previous year.
The aircraft lessor’s total value of assets rose to $12.7 billion at the end of 2022, from $12.6 billion in the same period in 2021.
Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft lessors, reported a 72% increase in profit for the full year in 2022.
Profit before exceptional items for the year ended December 31, 2022 reached $258.6 million, from $150 million in the preceding year, according to a disclosure on Nasdaq Dubai on Monday.
However, total revenue for the period reached $1.137 billion, down by 8% from $1.238 billion in 2021.
Adjusted EBITDA for the full year reached more than $1.07 billion, also down from $1.156 billion in the previous year.
The aircraft lessor’s total value of assets rose to $12.7 billion at the end of 2022, from $12.6 billion in the same period in 2021.
Exclusive: China's CNPC set to seal mega Qatari LNG deal - sources | Reuters
Exclusive: China's CNPC set to seal mega Qatari LNG deal - sources | Reuters
China National Petroleum Corp (CNPC) is close to finalising a deal to buy liquefied natural gas (LNG) from QatarEnergy over nearly 30 years from the Middle Eastern exporter's massive North Field expansion project, three people with knowledge of the matter said.
If sealed, this would be the second such deal between major LNG exporter Qatar and the world's no.2 LNG buyer, as Beijing looks to beef up gas supply and diversify its sources in a drive to replace coal and cut carbon emissions.
CNPC's talks follow a deal announced last November by China's Sinopec, in which QatarEnergy agreed to supply 4 million tonnes of LNG annually for 27 years, the longest duration LNG supply contract ever signed by Qatar.
"CNPC has agreed on the major terms with Qatar in a deal that will be very similar to Sinopec's," said a Beijing-based state-oil official who declined to be named as he is not authorised to speak to the media.
China National Petroleum Corp (CNPC) is close to finalising a deal to buy liquefied natural gas (LNG) from QatarEnergy over nearly 30 years from the Middle Eastern exporter's massive North Field expansion project, three people with knowledge of the matter said.
If sealed, this would be the second such deal between major LNG exporter Qatar and the world's no.2 LNG buyer, as Beijing looks to beef up gas supply and diversify its sources in a drive to replace coal and cut carbon emissions.
CNPC's talks follow a deal announced last November by China's Sinopec, in which QatarEnergy agreed to supply 4 million tonnes of LNG annually for 27 years, the longest duration LNG supply contract ever signed by Qatar.
"CNPC has agreed on the major terms with Qatar in a deal that will be very similar to Sinopec's," said a Beijing-based state-oil official who declined to be named as he is not authorised to speak to the media.
#AbuDhabi's ADNOC Drilling net profit rises 33% in 2022 | Reuters
Abu Dhabi's ADNOC Drilling net profit rises 33% in 2022 | Reuters
Abu Dhabi's ADNOC Drilling (ADNOCDRILL.AD) reported on Monday a rise of 33% in 2022 net profit, with revenue boosted by its onshore and oilfield services businesses.
Net profit for 2022 was $802 million, up from $604 million in the previous year. Revenue increased to $2.67 billion in 2022 from $2.27 billion in 2021.
In a regulatory filing, the company said its results were largely driven by new rigs entering its operational fleet, now consisting of 115 rigs.
Abu Dhabi's ADNOC Drilling (ADNOCDRILL.AD) reported on Monday a rise of 33% in 2022 net profit, with revenue boosted by its onshore and oilfield services businesses.
Net profit for 2022 was $802 million, up from $604 million in the previous year. Revenue increased to $2.67 billion in 2022 from $2.27 billion in 2021.
In a regulatory filing, the company said its results were largely driven by new rigs entering its operational fleet, now consisting of 115 rigs.
The Middle East Never Joined This Emerging-Market Stocks Rally - Bloomberg
The Middle East Never Joined This Emerging-Market Stocks Rally - Bloomberg
Stocks in the energy-rich Gulf have been left out of the latest rally in emerging markets, as falling oil prices, a weaker dollar and China’s reopening send investors hunting for deals elsewhere.
Gulf stocks diverged when their emerging-market peers began to take off in November, with the MSCI Emerging-Market Index rising 20% as of Monday. The MSCI GCC Countries Combined Index lost 10% over the same period.
That’s a stark reversal from the two preceding years, when the Gulf index soared nearly 50% as emerging markets slumped. Banks in Saudi Arabia, the region’s largest market, are among sectors lagging in 2023, weighing on the benchmark Tadawul All Share Index, where financial firms make up nearly 40% of the gauge.
Stocks in the energy-rich Gulf have been left out of the latest rally in emerging markets, as falling oil prices, a weaker dollar and China’s reopening send investors hunting for deals elsewhere.
Gulf stocks diverged when their emerging-market peers began to take off in November, with the MSCI Emerging-Market Index rising 20% as of Monday. The MSCI GCC Countries Combined Index lost 10% over the same period.
That’s a stark reversal from the two preceding years, when the Gulf index soared nearly 50% as emerging markets slumped. Banks in Saudi Arabia, the region’s largest market, are among sectors lagging in 2023, weighing on the benchmark Tadawul All Share Index, where financial firms make up nearly 40% of the gauge.
Most Gulf markets drop as oil prices fall | Reuters
Most Gulf markets drop as oil prices fall | Reuters
Most Gulf stock markets fell in early trade on Monday, in tandem with weaker oil prices and Asian peers as investors were cautious ahead release of crucial U.S. inflation data.
Oil, which fuels the region's growth, declined around 1% with Brent crude was down $85.66 a barrel by 0743 GMT.
The U.S. Federal Reserve has been raising interest rates to rein in inflation, leading to concerns that the move would slow economic activity and demand for oil.
In Abu Dhabi, the benchmark stock index (.FTFADGI) dropped 1.1%, dragged down by a 2.9% loss in Alpha Dhabi (ALPHADHABI.AD) and 1.9% fall in Al Dar Properties, while the largest lender by assets, First Abu Dhabi Bank slid 2.1%.
However, ADNOC Drilling (ADNOCDRILL.AD) jumped 2.1% after it reported a rise of 33% in 2022 net profit, with revenue boosted by its onshore and oilfield services businesses.
The Qatari Stock index (.QSI) fell 0.2%, weighed down by losses in industry and energy sectors with Industries Qatar losing 2.9% and Qatar Fuel shedding 1.5%.
Saudi Arabia's benchmark stock index (.TASI) opened on positive note trading 0.6% higher. The index supported by gains in most sectors with Dr. Sulaiman Al-Habib Medical jumping 2.8% and oil major Aramco rising 0.8%
Riyad Bank and Saudi Arabian Mining surged 4.1% and 2.8% after the both reported a 17% and 78.3% jump in full year profit respectively.
Dubai's benchmark stock index (.DFMGI) inched up 0.1%, helped by gains in financials and real estate sectors, with Dubai Islamic Bank gaining 0.5% and low cost flyer Air Arabia rising 1.7%.
United Arab Emirates- based cooling service provider Emirates Central Cooling Systems rose 0.7% in early trade after it reported about 7% increase in full year profit.
Most Gulf stock markets fell in early trade on Monday, in tandem with weaker oil prices and Asian peers as investors were cautious ahead release of crucial U.S. inflation data.
Oil, which fuels the region's growth, declined around 1% with Brent crude was down $85.66 a barrel by 0743 GMT.
The U.S. Federal Reserve has been raising interest rates to rein in inflation, leading to concerns that the move would slow economic activity and demand for oil.
In Abu Dhabi, the benchmark stock index (.FTFADGI) dropped 1.1%, dragged down by a 2.9% loss in Alpha Dhabi (ALPHADHABI.AD) and 1.9% fall in Al Dar Properties, while the largest lender by assets, First Abu Dhabi Bank slid 2.1%.
However, ADNOC Drilling (ADNOCDRILL.AD) jumped 2.1% after it reported a rise of 33% in 2022 net profit, with revenue boosted by its onshore and oilfield services businesses.
The Qatari Stock index (.QSI) fell 0.2%, weighed down by losses in industry and energy sectors with Industries Qatar losing 2.9% and Qatar Fuel shedding 1.5%.
Saudi Arabia's benchmark stock index (.TASI) opened on positive note trading 0.6% higher. The index supported by gains in most sectors with Dr. Sulaiman Al-Habib Medical jumping 2.8% and oil major Aramco rising 0.8%
Riyad Bank and Saudi Arabian Mining surged 4.1% and 2.8% after the both reported a 17% and 78.3% jump in full year profit respectively.
Dubai's benchmark stock index (.DFMGI) inched up 0.1%, helped by gains in financials and real estate sectors, with Dubai Islamic Bank gaining 0.5% and low cost flyer Air Arabia rising 1.7%.
United Arab Emirates- based cooling service provider Emirates Central Cooling Systems rose 0.7% in early trade after it reported about 7% increase in full year profit.