Saudi Arabia Crude Oil Exports Plummet as OPEC Giant Slashes Production - Bloomberg
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Saudi Arabia’s crude exports fell sharply in August as the kingdom leads an effort by the OPEC+ alliance to curb production and bolster oil prices.
Observed flows from the kingdom slumped to about 5.6 million barrels a day, the lowest since March 2021, data compiled by Bloomberg show. That compares with a revised 6.3 million barrels a day in July. Shipments to most major destinations, including China and the US, plummeted to multiyear lows.
The Organization of Petroleum Exporting Countries and allies including Russia are restricting supply in order to buttress the market, particularly amid signs of lackluster demand in major oil consumer China. Since July, Saudi Arabia has pledged to implement a unilateral production cut of 1 million barrels a day on top of existing curbs.
Saudi officials didn’t immediately respond to a request for comment on August’s oil exports. Friday is the start of the weekend in the country. The figures compiled by Bloomberg, which are preliminary, are broadly in line with those from analytics firms Vortexa Ltd. and Kpler.
Saudi Aramco considers selling $50 billion in shares - WSJ | Reuters
Saudi Aramco (2222.SE) is considering selling a stake worth as much as $50 billion through a secondary share offering on the Riyadh bourse after consultations with advisers, the Wall Street Journal reported on Friday.
The sale could happen before the end of the year, the report said, adding that Aramco has been "sounding out" potential investors, such as other multinational oil companies and sovereign-wealth funds, about participating in the deal.
The Kingdom has decided to host any new Aramco offering on the Riyadh exchange to avoid legal risks associated with an international listing, the report said, citing Saudi officials and other people familiar with the plan.
Saudi Aramco did not immediately respond to a Reuters' request for comment.
Saudi Arabia is the world's biggest oil company, with a market value of $2.25 trillion. Its shares have risen 19.6% this year.
UAE shares mixed ahead of US jobs data; oil extends gains | Reuters
Stock markets in the United Arab Emirates were mixed on Friday, with Dubai's benchmark index rising ahead of U.S. jobs data as investors expect the figures will sway the Federal Reserve to pause rate hikes, while Abu Dhabi fell.
Economists polled by Reuters expect 170,000 more workers on non-farm payrolls in August as a flurry of recent employment-related data has suggested the labour market is starting to slow. The data is due later in the day.
Most Gulf Cooperation Council countries (GCC), including the UAE, have their currencies pegged to the dollar and generally follow the Fed's policy moves.
Dubai's benchmark index (.DFMGI) settled 0.2% higher, helped by gains in financial and utilities stocks, while Abu Dhabi's benchmark index (.FTFADGI) retreated 0.2%.
Oil prices , the key contributor to Gulf economy, also extended gains to a fourth session, boosted by expectations of tightening supplies.
UAE's top lender Emirates NBD Bank (ENBD.DU) jumped 2.1% and Dubai Electricity and Water Authority (DEWAA.DU) added 1.2%, propping up the Dubai index.
Meanwhile, International Holding Company (IHC.AD) and IHC-owned investment firm Alpha Dhabi Holding (ALPHADHABI.AD) were the key drags on the Abu Dhabi index, declining 0.5% and 0.8%, respectively.
However, Abu Dhabi's largest developer Aldar Properties (ALDAR.AD) rose 1.2% after its Egyptian unit Sixth Of October Development And Investment (SODIC) (OCDI.CA) announced plans for expansion with two Nobu-branded hotels, restaurants, and residences.
Saudi Arabia, UAE Are Shifting Investment Strategy: Meet the New Rising Stars - Bloomberg
Oil-rich Gulf monarchies are channeling more international deals via state-backed firms instead of the region’s sovereign wealth funds, as they seek to diversify their economies and win more global heft.
Alongside billions of dollars of sovereign investments, state-run companies in the United Arab Emirates and Saudi Arabia — many of which are also backed by the wealth funds — have been involved in at least $50 billion in deals this year across sectors from telecommunications to renewables and gaming.
Although the global investment spree by sovereign funds is likely to continue, more of the strategic deals are expected to be done via the region’s largest corporates such as Abu Dhabi’s clean-energy producer Masdar, Emirates Telecommunications Group and Saudi Arabian Mining Co.
This week, Pure Health — majority owned by Abu Dhabi’s ADQ — bought one of the UK’s largest independent hospital operators in a $1.2 billion deal. AviLease, a jet lessor owned by Saudi Arabia’s Public Investment Fund, agreed to buy Standard Chartered Plc’s aviation finance business for $3.6 billion.
The shift in dealmaking highlights how Gulf states are seeking to fulfill their outsized international ambitions, while creating top global companies amid limited expansion opportunities at home. Such efforts dovetail with wider plans to attract investment and technology, as well as build new industries and manufacturing capabilities. The strategy emulates the example of countries such as South Korea, where companies like Samsung Electronics Co Ltd. have become household names.
Brazil Burger King brand owner's shareholders reject poison pill in win for Mubadala | Reuters
Zamp (ZAMP3.SA), the owner of the Burger King brand in Brazil, said on Tuesday its shareholders rejected a proposal to include a poison pill in its internal bylaws, a win for Abu Dhabi state investor Mubadala which is building a large stake in the firm.
The proposal that would implement a poison pill in addition to limit the voting power of a single shareholder to 15% was rejected 57.5% of the votes, Zamp said.
The outcome is a key win for Mubadala, who raised its stake in the firm to 20.4% shortly after the proposal was unveiled in July, becoming Zamp's largest shareholder.
Last year, the Abu Dhabi sovereign investor had already tried to take over Zamp, but withdrew a tender offer it had launched saying it failed to confirm whether the deal would imply the termination of the firm's franchise and trademark licensing agreements.
At the time, Mubadala had 4.95% of the company and it offered 8.31 reals per share to buy a controlling stake. Zamp's shares rose 1.65% on Thursday to 5.55 reals.
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