BRICS Memmership Expansion Gets Interesting If Saudis Join, Jim O’Neill Says - Bloomberg
Adding countries to the BRICS bloc will matter economically if Saudi Arabia is one of them but otherwise it’s hard to see the point, said Jim O’Neill, a prominent economist and veteran of Goldman Sachs Group Inc.
Saudi Arabia joining would be a “pretty big deal,” he told Bloomberg Television on Monday, noting that the nation’s traditionally close links with the US and its role as the world’s largest swing oil producer would add heft to the club.
Expansion of BRICS membership is top of the agenda for the summit being hosted this week by South Africa in the commercial capital of Johannesburg.
Tuesday, 22 August 2023
Most Gulf markets track oil prices lower; Egypt jumps | Reuters
Most Gulf markets track oil prices lower; Egypt jumps | Reuters
Most stock markets in the Gulf ended lower on Tuesday on falling oil prices, while the approaching Jackson Hole Symposium also weighed on investor sentiment.
Oil prices - which fuels the Gulf economy - were little changed as investors remained downbeat on China's economic malaise hobbling demand from the world's top crude importer, limiting the impact of supply cuts.
Saudi Arabia's benchmark index (.TASI) dropped 0.3%, extending losses from the previous session, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 1%, while oil giant Saudi Aramco (2222.SE) was down 0.2%.
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
The Qatari benchmark (.QSI) gave up early gains to finish 0.1% lower, weighed down by a 1% fall in Commercial Bank (COMB.QA) and a 0.3% decrease in petrochemical maker Industries Qatar (IQCD.QA).
Dubai's main share index (.DFMGI) gained 0.4%, helped by a 1.4% gain in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The Dubai stock market remained stable with traders being cautious ahead of the Federal Reserve's event this week. Traders could monitor speeches from the Fed's governors for clues on monetary policy, said Ahmed Negm, Head of Market Research MENA at XS.com.
Oil and gas exporting countries in the Gulf tend to follow the Fed's rate move, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.
Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 1.7%, as most of the stocks on the index were in positive territory including tobacco monopoly Easter Company (EAST.CA), which jumped 8.5% after receiving several offers from foreign investors to buy up to 15.3% of the shares.
Egypt promised the International Monetary Fund it would roll back the state's involvement in the economy and allow private companies a much greater role as part of a $3 billion, 46-month financial support package signed in December.
Egypt's petroleum ministry on Tuesday announced a new oil discovery in the Geisum and Tawila West Concession in the Gulf of Suez.
Most stock markets in the Gulf ended lower on Tuesday on falling oil prices, while the approaching Jackson Hole Symposium also weighed on investor sentiment.
Oil prices - which fuels the Gulf economy - were little changed as investors remained downbeat on China's economic malaise hobbling demand from the world's top crude importer, limiting the impact of supply cuts.
Saudi Arabia's benchmark index (.TASI) dropped 0.3%, extending losses from the previous session, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 1%, while oil giant Saudi Aramco (2222.SE) was down 0.2%.
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
The Qatari benchmark (.QSI) gave up early gains to finish 0.1% lower, weighed down by a 1% fall in Commercial Bank (COMB.QA) and a 0.3% decrease in petrochemical maker Industries Qatar (IQCD.QA).
Dubai's main share index (.DFMGI) gained 0.4%, helped by a 1.4% gain in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The Dubai stock market remained stable with traders being cautious ahead of the Federal Reserve's event this week. Traders could monitor speeches from the Fed's governors for clues on monetary policy, said Ahmed Negm, Head of Market Research MENA at XS.com.
Oil and gas exporting countries in the Gulf tend to follow the Fed's rate move, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.
Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 1.7%, as most of the stocks on the index were in positive territory including tobacco monopoly Easter Company (EAST.CA), which jumped 8.5% after receiving several offers from foreign investors to buy up to 15.3% of the shares.
Egypt promised the International Monetary Fund it would roll back the state's involvement in the economy and allow private companies a much greater role as part of a $3 billion, 46-month financial support package signed in December.
Egypt's petroleum ministry on Tuesday announced a new oil discovery in the Geisum and Tawila West Concession in the Gulf of Suez.
Mubadala’s Oil Refinery Acelen See Bonds in Distressed Territory - Bloomberg
Mubadala’s Oil Refinery Acelen See Bonds in Distressed Territory - Bloomberg
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The new fuel policy implemented by state-run Petroleo Brasileiro SA is causing trouble for a Mubadala Capital-owned oil refinery, handing bondholders one of the worst returns in Latin America.
Mubadala’s Acelen, which operates the refinery in northeast Brazil, saw its notes fall into distressed territory at around 63 cents on the dollar, down 26 cents since February. The outlook for debt due in 2031 was cut to negative earlier this month by Moody’s Investors Service, which flagged growing risks to the firm’s cash generation.
The market’s increasing unease over the Mataripe refinery’s future says less about the company itself than it does about the fallout from Petrobras’ fuel policy. The government-controlled energy company has been selling gas and diesel in Brazil at a discount to international prices under President Luiz Inacio Lula da Silva, who began questioning why domestic prices were so high after taking office.
While the company raised fuel prices last week to reduce the gap with international levels, it has been selling fuels below international levels for much of this year.
Acelen says their refinery is at a disadvantage: On one hand, Petrobras, the dominant supplier in the country, is selling them crude at high prices. And on the other hand, they’re unable to compete with rival refineries that are putting out cheap gas and diesel to comply with the fuel policy. The allegations were made in a complaint to Brazil’s antitrust agency Cade in May.
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The new fuel policy implemented by state-run Petroleo Brasileiro SA is causing trouble for a Mubadala Capital-owned oil refinery, handing bondholders one of the worst returns in Latin America.
Mubadala’s Acelen, which operates the refinery in northeast Brazil, saw its notes fall into distressed territory at around 63 cents on the dollar, down 26 cents since February. The outlook for debt due in 2031 was cut to negative earlier this month by Moody’s Investors Service, which flagged growing risks to the firm’s cash generation.
The market’s increasing unease over the Mataripe refinery’s future says less about the company itself than it does about the fallout from Petrobras’ fuel policy. The government-controlled energy company has been selling gas and diesel in Brazil at a discount to international prices under President Luiz Inacio Lula da Silva, who began questioning why domestic prices were so high after taking office.
While the company raised fuel prices last week to reduce the gap with international levels, it has been selling fuels below international levels for much of this year.
Acelen says their refinery is at a disadvantage: On one hand, Petrobras, the dominant supplier in the country, is selling them crude at high prices. And on the other hand, they’re unable to compete with rival refineries that are putting out cheap gas and diesel to comply with the fuel policy. The allegations were made in a complaint to Brazil’s antitrust agency Cade in May.
#Dubai Real Estate: Dubai’s Property Boom Is Starting to Lure Chinese Buyers Back - Bloomberg
Dubai Real Estate: Dubai’s Property Boom Is Starting to Lure Chinese Buyers Back - Bloomberg
Chinese investors are gradually returning to Dubai’s real estate market, joining Russian and other international buyers who have already pushed property prices in the emirate to record levels.
At the city’s largest developer, Emaar Properties PJSC, buyers from the Asian nation doubled to 8% of the total during the first half of 2023 from 4% through 2022, according to a report by CI Capital, which cited an analyst call with the firm’s management. While those levels are still below the peak of 13% to 14%, Chinese demand could become a key factor in helping to shore up demand in the emirate’s property market.
Russians were the biggest buyers of Emaar developments during the first quarter and demand remains strong, according to the report’s author Sara Boutros. CI Capital estimates that Emaar sales are likely to reach 33 to 34 billion dirhams ($9.3 billion) this year, a 10% increase from 2022.
“Emaar’s nationality mix is important because the company acts as a proxy for the wider real estate market in Dubai,” she said, adding that the developer has the biggest market share with around 30% of all home sales ahead of construction.
Dubai’s property market has been booming, bucking the trend in many parts of the world, where home values have dropped amid surging interest rates and a darkening growth outlook. The recovery, which capped seven years of price declines, started after the pandemic and was fueled by an influx of newcomers — from crypto millionaires and bankers relocating from Asia to wealthy Russians seeking to shield assets.
Chinese investors are gradually returning to Dubai’s real estate market, joining Russian and other international buyers who have already pushed property prices in the emirate to record levels.
At the city’s largest developer, Emaar Properties PJSC, buyers from the Asian nation doubled to 8% of the total during the first half of 2023 from 4% through 2022, according to a report by CI Capital, which cited an analyst call with the firm’s management. While those levels are still below the peak of 13% to 14%, Chinese demand could become a key factor in helping to shore up demand in the emirate’s property market.
Russians were the biggest buyers of Emaar developments during the first quarter and demand remains strong, according to the report’s author Sara Boutros. CI Capital estimates that Emaar sales are likely to reach 33 to 34 billion dirhams ($9.3 billion) this year, a 10% increase from 2022.
“Emaar’s nationality mix is important because the company acts as a proxy for the wider real estate market in Dubai,” she said, adding that the developer has the biggest market share with around 30% of all home sales ahead of construction.
Dubai’s property market has been booming, bucking the trend in many parts of the world, where home values have dropped amid surging interest rates and a darkening growth outlook. The recovery, which capped seven years of price declines, started after the pandemic and was fueled by an influx of newcomers — from crypto millionaires and bankers relocating from Asia to wealthy Russians seeking to shield assets.
#UAE Central Bank's foreign assets up to $161.33bln in June
UAE Central Bank's foreign assets up to $161.33bln in June
The UAE's current account balances and deposits with banks abroad amounted to AED363.23 billion by the end of June, 2023, from AED361.78 in the previous month, according to the latest figures revealed today by the Central Bank of the United Arab Emirates (CBUAE).
Foreign securities are down to AED165.42 bn from AED171.03 during the same reference period, with other foreign assets up to AED63.46 bn against AED57.38 in May, According to the apex bank, total foreign assets increased to AED592.11 bn from AED590.19 in May.
It's noteworthy that the foreign assets exclude CBUAE's Reserve Tranche Position (RTP) and SDR Holdings with the IMF.
According to the bank's monetary & banking deployments report of June 2023, the monetary base grew by 0.1%, climbing from AED621.4 billion at the end of May 2023 to AED 622.2 billion at the end of June 2023. The main drivers of this expansion of the Monetary Base were increases in currency issued by 5.2% and in Reserve Account by 28.0%. However, banks & OFCs’ current accounts and overnight deposits of banks at CBUAE and monetary bills and islamic certificates of deposit decreased by 25.7% and 2.5%, respectively.
Gross banks’ assets, including bankers’ acceptances, rose by 0.1%, from AED3,868.9 billion at the end of May 2023 to AED 3,873.1 billion at the end of June 2023. Domestic Credit expanded because of 2.5%, 3.7% and 3.4% increases in credit to the Government Sector, Public Sector and non-banking financial institutions, correspondingly. Whereas, credit to the private sector declined by 0.6%.
Total bank deposits decreased by 1.0%, falling from AED2,405.9 billion at the end of May 2023 to AED2,382.1 billion at the end of June 2023. The fall in total bank deposits was due to reduction in non-resident deposits by 11.8%, overshadowing the increase in resident deposits by 0.2%. Resident deposits rose owing to increases in government sector deposits. Private sector deposits and non-banking financial institutions’ deposits by 2.5%, 0.4% and 18.1%, respectively. However, public sector deposits decreased by 8.3%.
The UAE's current account balances and deposits with banks abroad amounted to AED363.23 billion by the end of June, 2023, from AED361.78 in the previous month, according to the latest figures revealed today by the Central Bank of the United Arab Emirates (CBUAE).
Foreign securities are down to AED165.42 bn from AED171.03 during the same reference period, with other foreign assets up to AED63.46 bn against AED57.38 in May, According to the apex bank, total foreign assets increased to AED592.11 bn from AED590.19 in May.
It's noteworthy that the foreign assets exclude CBUAE's Reserve Tranche Position (RTP) and SDR Holdings with the IMF.
According to the bank's monetary & banking deployments report of June 2023, the monetary base grew by 0.1%, climbing from AED621.4 billion at the end of May 2023 to AED 622.2 billion at the end of June 2023. The main drivers of this expansion of the Monetary Base were increases in currency issued by 5.2% and in Reserve Account by 28.0%. However, banks & OFCs’ current accounts and overnight deposits of banks at CBUAE and monetary bills and islamic certificates of deposit decreased by 25.7% and 2.5%, respectively.
Gross banks’ assets, including bankers’ acceptances, rose by 0.1%, from AED3,868.9 billion at the end of May 2023 to AED 3,873.1 billion at the end of June 2023. Domestic Credit expanded because of 2.5%, 3.7% and 3.4% increases in credit to the Government Sector, Public Sector and non-banking financial institutions, correspondingly. Whereas, credit to the private sector declined by 0.6%.
Total bank deposits decreased by 1.0%, falling from AED2,405.9 billion at the end of May 2023 to AED2,382.1 billion at the end of June 2023. The fall in total bank deposits was due to reduction in non-resident deposits by 11.8%, overshadowing the increase in resident deposits by 0.2%. Resident deposits rose owing to increases in government sector deposits. Private sector deposits and non-banking financial institutions’ deposits by 2.5%, 0.4% and 18.1%, respectively. However, public sector deposits decreased by 8.3%.
ADES intends to offer 30% stake on #Saudi's Tadawul before 2023-end
ADES intends to offer 30% stake on Saudi's Tadawul before 2023-end
Advanced Energy Systems (ADES), partially owned by the Saudi Public Investment Fund (PIF), intends to offer 30% of its shares on the Saudi stock market Tadawul before the end of this year, sources have told Daily News Egypt.
The company planned for the offering in the first half of the year but it had to delay the move due to global conditions and their impacts on the market.
Last June, ADES obtained regulatory approval for its initial public offering in Riyadh, which may be one of the largest IPOs in the Kingdom this year.
The sources added that the offering has been postponed until market conditions stabilize, explaining that the company aims to use the proceeds of the offering to expand its operations in Saudi Arabia after moving its headquarters to Saudi Arabia last March.
Advanced Energy Systems (ADES), partially owned by the Saudi Public Investment Fund (PIF), intends to offer 30% of its shares on the Saudi stock market Tadawul before the end of this year, sources have told Daily News Egypt.
The company planned for the offering in the first half of the year but it had to delay the move due to global conditions and their impacts on the market.
Last June, ADES obtained regulatory approval for its initial public offering in Riyadh, which may be one of the largest IPOs in the Kingdom this year.
The sources added that the offering has been postponed until market conditions stabilize, explaining that the company aims to use the proceeds of the offering to expand its operations in Saudi Arabia after moving its headquarters to Saudi Arabia last March.
Major Gulf markets were mixed on falling oil prices | Reuters
Major Gulf markets were mixed on falling oil prices | Reuters
Major stock markets in the Gulf were mixed in early trade on Tuesday amid falling oil prices, with the Dubai index on course to snap three sessions of gains.
Prices of oil, a catalyst for the Gulf's financial markets, edged lower as the market waited to see if Iraqi exports through the Ceyhan oil terminal would resume, which could ease supply tightness caused by the OPEC+ cut, while a faltering Chinese economy weighed on demand outlook.
Iraq's oil minister Hayan Abdel-Ghani arrived in the Turkish capital Ankara to discuss several issues including the resumption of oil exports through the Ceyhan oil terminal, a source in the minister's office told Reuters on Monday.
Saudi Arabia's benchmark index (.TASI) dropped 0.3%, weighed down by a 0.6% fall in Al Rajhi Bank (1120.SE) and a 0.8% decrease in Dr Sulaiman Al-Habib Medical Services (4013.SE).
China's crude oil imports from top exporter Saudi Arabia are expected to remain depressed through the third quarter, analysts said, after its customs office reported inbound shipments from the kingdom fell to their lowest in 13 months in July.
Dubai's main share index (.DFMGI) eased 0.1%, hit by a 3.6% fall in toll operator Salik Co (SALIK.DU).
Separately, Dubai's main airport reported a 49% surge in passenger traffic in the first half of the year to 41.6 million, surpassing pre-pandemic levels, operator Dubai Airports said on Tuesday.
In Abu Dhabi, the index (.FTFADGI) added 0.2%.
The Qatari benchmark (.QSI) gained 0.4%, led by a 0.4% increase in Qatar Islamic Bank (QISB.QA).
Major stock markets in the Gulf were mixed in early trade on Tuesday amid falling oil prices, with the Dubai index on course to snap three sessions of gains.
Prices of oil, a catalyst for the Gulf's financial markets, edged lower as the market waited to see if Iraqi exports through the Ceyhan oil terminal would resume, which could ease supply tightness caused by the OPEC+ cut, while a faltering Chinese economy weighed on demand outlook.
Iraq's oil minister Hayan Abdel-Ghani arrived in the Turkish capital Ankara to discuss several issues including the resumption of oil exports through the Ceyhan oil terminal, a source in the minister's office told Reuters on Monday.
Saudi Arabia's benchmark index (.TASI) dropped 0.3%, weighed down by a 0.6% fall in Al Rajhi Bank (1120.SE) and a 0.8% decrease in Dr Sulaiman Al-Habib Medical Services (4013.SE).
China's crude oil imports from top exporter Saudi Arabia are expected to remain depressed through the third quarter, analysts said, after its customs office reported inbound shipments from the kingdom fell to their lowest in 13 months in July.
Dubai's main share index (.DFMGI) eased 0.1%, hit by a 3.6% fall in toll operator Salik Co (SALIK.DU).
Separately, Dubai's main airport reported a 49% surge in passenger traffic in the first half of the year to 41.6 million, surpassing pre-pandemic levels, operator Dubai Airports said on Tuesday.
In Abu Dhabi, the index (.FTFADGI) added 0.2%.
The Qatari benchmark (.QSI) gained 0.4%, led by a 0.4% increase in Qatar Islamic Bank (QISB.QA).
#AbuDhabi wealth fund puts $450 mln more into Australian private credit fund | Reuters
Abu Dhabi wealth fund puts $450 mln more into Australian private credit fund | Reuters
Abu Dhabi's sovereign wealth fund, one of the world's largest, will double its investment in an Australian real estate private credit vehicle, the fund's manager said on Tuesday, as traditional lenders grow wary about the sector.
Qualitas (QAL.AX) said an Abu Dhabi Investment Authority (ADIA)-owned vehicle will invest A$700 million ($449 million) into one of its Australian commercial real estate private credit fund.
The move doubles ADIA's investment to A$1.4 billion after a first round last August.
Australian-listed Qualitas invests in real estate private credit and equity and has A$7.5 billion under management, the vast majority run on behalf of institutional investors.
Co-founder Andrew Schwartz said in a statement Qualitas had A$2.3 billion ready to invest "as traditional financiers appear to continue to retreat, particularly in the residential and development sectors."
Abu Dhabi's sovereign wealth fund, one of the world's largest, will double its investment in an Australian real estate private credit vehicle, the fund's manager said on Tuesday, as traditional lenders grow wary about the sector.
Qualitas (QAL.AX) said an Abu Dhabi Investment Authority (ADIA)-owned vehicle will invest A$700 million ($449 million) into one of its Australian commercial real estate private credit fund.
The move doubles ADIA's investment to A$1.4 billion after a first round last August.
Australian-listed Qualitas invests in real estate private credit and equity and has A$7.5 billion under management, the vast majority run on behalf of institutional investors.
Co-founder Andrew Schwartz said in a statement Qualitas had A$2.3 billion ready to invest "as traditional financiers appear to continue to retreat, particularly in the residential and development sectors."
#Dubai International Airport sees 41.6 million passengers in first half of year, more than in 2019 - Bloomberg
Dubai International Airport sees 41.6 million passengers in first half of year, more than in 2019 - Bloomberg
Dubai International Airport, the world's busiest for international travel, announced Tuesday it served 41.6 million passengers in the first half of this year — exceeding figures for the same period in 2019 as travelers return to the air after the lockdowns of the coronavirus pandemic.
The airport, home to the long-haul carrier Emirates in skyscraper-studded Dubai, long has served as a barometer for the aviation industry worldwide. The new figures at the airport known as DXB reflect figures offered by the International Air Transport Association that traffic worldwide is at 94% of pre-COVID levels.
“Dubai International Airport has once again recorded for the ninth year running that it is the world’s busiest international airport with a very, very strong first half,” Paul Griffiths, the CEO of Dubai Airports, told The Associated Press. “The most important part of that is that we’ve reached 100% of our pre-pandemic numbers, the same numbers as recorded in the first half of 2019.”
The 41.6 million passengers is up some 50% from the 27.9 million recorded the same time last year, as airlines now have more planes and routes running again.
Passenger traffic this year largely has been driven by the airport’s standard travel destinations — India, Saudi Arabia, the United Kingdom and Pakistan. Russia has also been a major market as Dubai remains one of the few places still open to Russians amid Moscow’s war on Ukraine.
Dubai International Airport, the world's busiest for international travel, announced Tuesday it served 41.6 million passengers in the first half of this year — exceeding figures for the same period in 2019 as travelers return to the air after the lockdowns of the coronavirus pandemic.
The airport, home to the long-haul carrier Emirates in skyscraper-studded Dubai, long has served as a barometer for the aviation industry worldwide. The new figures at the airport known as DXB reflect figures offered by the International Air Transport Association that traffic worldwide is at 94% of pre-COVID levels.
“Dubai International Airport has once again recorded for the ninth year running that it is the world’s busiest international airport with a very, very strong first half,” Paul Griffiths, the CEO of Dubai Airports, told The Associated Press. “The most important part of that is that we’ve reached 100% of our pre-pandemic numbers, the same numbers as recorded in the first half of 2019.”
The 41.6 million passengers is up some 50% from the 27.9 million recorded the same time last year, as airlines now have more planes and routes running again.
Passenger traffic this year largely has been driven by the airport’s standard travel destinations — India, Saudi Arabia, the United Kingdom and Pakistan. Russia has also been a major market as Dubai remains one of the few places still open to Russians amid Moscow’s war on Ukraine.