Kuwait's KIPIC in talks with potential partners on petrochemicals complex | Reuters
State-owned Kuwait Integrated Petroleum Industries Company (KIPIC) is in early talks with companies to partner on an integrated petrochemicals complex worth up to 3 billion dinars ($9.70 billion), its CEO said.
The company also aims to raise capacity at its Al-Zour refinery by 20-30% above the maximum 615,000 barrels per day it expects to reach this month, Walid Al-Badr told Reuters.
Initial discussions have begun with three potential partners, two from Asia and one from Europe, to build an integrated petrochemical complex alongside the Al-Zour plant, Al-Badr said.
"We are still in the initial stages. Memorandums of understanding have not been signed yet, but they expressed their interest and there were official meetings," Al-Badr said, without naming the firms.
The petrochemical complex, which aims to export to Europe and to boost Al-Zour's profitability, will use about 100,000 barrels per day (bpd) of fuel oil. If a deal is reached, it aims for the plant to go into operation by 2030.
Thursday 26 October 2023
Most Gulf markets retreat on Mideast woes, interest rate fears | Reuters
Most Gulf markets retreat on Mideast woes, interest rate fears | Reuters
Most stock markets in the Gulf ended lower on Thursday, as sentiment remained sour on concerns about widening conflict in the region, while fears that U.S. interest rates will stay high added to the angst.
Israel said its ground forces had pushed into Gaza overnight to attack Hamas targets as Israeli Prime Minister Benjamin Netanyahu said it was "preparing for a ground invasion" that could be one of several.
At least 7,028 Palestinians, including 2,913 children, have been killed in Israeli strikes since Oct. 7, the health ministry in Hamas-controlled Gaza said on Thursday.
Saudi Arabia's benchmark index (.TASI) closed 0.9% lower, with Saudi Arabian Mining Company (Ma'aden) (1211.SE) retreating 3.5%.
Ma'aden is working to extract lithium from sea water, its chief executive Robert Wilt said on Wednesday, as competition for the rare metal rages between the U.S. and China.
The Saudi index posted a weekly decline of 2.3%.
The Saudi bourse recorded a volatile week as traders reacted to geopolitical developments, company earnings, and the volatility in oil prices, said Daniel Takieddine, CEO MENA at BDSwiss.
"The main index could face risks of additional price corrections after its rebound during the last few days."
Dubai's main share index (.DFMGI) declined 1.5%, dragged down by a 3.3% fall in top lender Emirates NBD (ENBD.DU).
The bank reported a higher third-quarter net profit, but saw a decrease sequentially in earnings.
In Abu Dhabi, the index (.FTFADGI) lost 0.9%.
Oil prices - a catalyst for the Gulf's financial markets - fell after a rise in U.S. crude stockpiles and a climb in the dollar index.
The Qatari benchmark (.QSI) slid 1.7%, hitting its lowest in over three years, as most of its constituents were in negative territory.
Yields on longer-dated U.S. Treasury notes rose and the U.S. dollar strengthened to a one-week high, as underwhelming corporate results in the U.S. raised concerns over the economic strength of the world's largest economy.
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.6%.
Most stock markets in the Gulf ended lower on Thursday, as sentiment remained sour on concerns about widening conflict in the region, while fears that U.S. interest rates will stay high added to the angst.
Israel said its ground forces had pushed into Gaza overnight to attack Hamas targets as Israeli Prime Minister Benjamin Netanyahu said it was "preparing for a ground invasion" that could be one of several.
At least 7,028 Palestinians, including 2,913 children, have been killed in Israeli strikes since Oct. 7, the health ministry in Hamas-controlled Gaza said on Thursday.
Saudi Arabia's benchmark index (.TASI) closed 0.9% lower, with Saudi Arabian Mining Company (Ma'aden) (1211.SE) retreating 3.5%.
Ma'aden is working to extract lithium from sea water, its chief executive Robert Wilt said on Wednesday, as competition for the rare metal rages between the U.S. and China.
The Saudi index posted a weekly decline of 2.3%.
The Saudi bourse recorded a volatile week as traders reacted to geopolitical developments, company earnings, and the volatility in oil prices, said Daniel Takieddine, CEO MENA at BDSwiss.
"The main index could face risks of additional price corrections after its rebound during the last few days."
Dubai's main share index (.DFMGI) declined 1.5%, dragged down by a 3.3% fall in top lender Emirates NBD (ENBD.DU).
The bank reported a higher third-quarter net profit, but saw a decrease sequentially in earnings.
In Abu Dhabi, the index (.FTFADGI) lost 0.9%.
Oil prices - a catalyst for the Gulf's financial markets - fell after a rise in U.S. crude stockpiles and a climb in the dollar index.
The Qatari benchmark (.QSI) slid 1.7%, hitting its lowest in over three years, as most of its constituents were in negative territory.
Yields on longer-dated U.S. Treasury notes rose and the U.S. dollar strengthened to a one-week high, as underwhelming corporate results in the U.S. raised concerns over the economic strength of the world's largest economy.
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.6%.
#UAE’s IHC signals interest in Zambian copper mine
UAE’s IHC signals interest in Zambian copper mine
Abu Dhabi’s International Holding Company has expressed interest in taking over a key Zambian copper mine that is up for sale, according to four people familiar with the matter.
The approach by the United Arab Emirates’ largest listed company comes as South African miner Sibanye-Stillwater is vying to take on Mopani Copper Mines, a prized but struggling state-owned asset in Africa’s second-biggest producing country, these people added.
Mopani produces the metal used in power lines, electric cars and renewable power. Two Chinese groups, Zijin Mining and Norinco, a defence company, which were initially part of the auction process for the mine, have dropped out, three of the people said.
Zijin’s departure was due to delays on the Zambian side of the process, while Norinco has had sanctions imposed on it by the US government, one of the people added.
The sale of the mine also comes amid heightening geopolitical tensions between China and the US, which is stepping up its efforts to secure strategic minerals such as copper, cobalt and graphite. In particular, Washington is placing a growing emphasis on preventing Chinese companies from tying up important supply sources in Africa.
Europe Can See a World Flush with LNG From the US, #Qatar - Bloomberg
Europe Can See a World Flush with LNG From the US, Qatar - Bloomberg
For the second straight winter, Europe’s energy strategy is based largely on hopes for mild weather and reduced industrial demand, with gas prices still hovering at about 50 euros ($53) per megawatt-hour, more than double the average in the decade before Vladimir Putin’s invasion of Ukraine.
But it’s not too soon to begin imagining — and planning for — a less desperate future: instead of a world of scarcity, one of abundant liquefied natural gas supplies provided by the US and Qatar.
For that, however, things must go as exactly as planned. And after two years of rolling crisis, the wording “as planned” carries a lot of weight. There’s hope, but, for at least the next year and a half, it’s just that: hope.
“Starting in 2025, an unprecedented surge in new LNG projects is set to tip the balance of markets and concerns about natural gas supply,” the International Energy Agency said this week, echoing a view that’s gaining traction in the market. “A wave of new LNG export projects is set to remodel gas markets.” Fatih Birol, the head of the agency, went even further: “The gas market will move into the direction of buyer’s market.”
Unlike gas pipelines, which physically connect buyers and sellers, LNG export terminals super-cool gas into a liquid form, before loading it onto massive ships. Each terminal takes years to build and costs several billion dollars. At the other end of the chain, an LNG regasification terminal is needed before the commodity is shipped via domestic pipeline to the final customer.
LNG is critical to balance the European gas market since buying Russian gas via pipeline, which before the invasion of Ukraine accounted for more than a third of the continent’s imports, is out of the question. Other pipelines, from the likes of Norway and Algeria, are already maxed out. Anders Opedal, the boss of Norway’s Equinor ASA, put it succinctly at a recent energy conference: Everyone is trying to boost production, but, ultimately, “Europe will depend on LNG supply.”
For the second straight winter, Europe’s energy strategy is based largely on hopes for mild weather and reduced industrial demand, with gas prices still hovering at about 50 euros ($53) per megawatt-hour, more than double the average in the decade before Vladimir Putin’s invasion of Ukraine.
But it’s not too soon to begin imagining — and planning for — a less desperate future: instead of a world of scarcity, one of abundant liquefied natural gas supplies provided by the US and Qatar.
For that, however, things must go as exactly as planned. And after two years of rolling crisis, the wording “as planned” carries a lot of weight. There’s hope, but, for at least the next year and a half, it’s just that: hope.
“Starting in 2025, an unprecedented surge in new LNG projects is set to tip the balance of markets and concerns about natural gas supply,” the International Energy Agency said this week, echoing a view that’s gaining traction in the market. “A wave of new LNG export projects is set to remodel gas markets.” Fatih Birol, the head of the agency, went even further: “The gas market will move into the direction of buyer’s market.”
Unlike gas pipelines, which physically connect buyers and sellers, LNG export terminals super-cool gas into a liquid form, before loading it onto massive ships. Each terminal takes years to build and costs several billion dollars. At the other end of the chain, an LNG regasification terminal is needed before the commodity is shipped via domestic pipeline to the final customer.
LNG is critical to balance the European gas market since buying Russian gas via pipeline, which before the invasion of Ukraine accounted for more than a third of the continent’s imports, is out of the question. Other pipelines, from the likes of Norway and Algeria, are already maxed out. Anders Opedal, the boss of Norway’s Equinor ASA, put it succinctly at a recent energy conference: Everyone is trying to boost production, but, ultimately, “Europe will depend on LNG supply.”
Watch FII's Role in Transforming #Saudi Economy - Bloomberg video
Watch FII's Role in Transforming Saudi Economy - Bloomberg
Bernard Haykel, Princeton University Professor of Near Eastern Studies discusses FII, the "Davos in the desert" and Saudi Arabia's Vision 2030 plan. He speaks with David Westin on "Wall Street Week Daily." (Source: Bloomberg)
Bernard Haykel, Princeton University Professor of Near Eastern Studies discusses FII, the "Davos in the desert" and Saudi Arabia's Vision 2030 plan. He speaks with David Westin on "Wall Street Week Daily." (Source: Bloomberg)
#UAE’s Masdar Boosts Caspian Renewable Deals With Azeri Pact - Bloomberg
UAE’s Masdar Boosts Caspian Renewable Deals With Azeri Pact - Bloomberg
The United Arab Emirates is expanding renewable energy production in the Caspian and Central Asian regions as the country’s biggest clean-power producer moves ahead with plans to generate as much as 10 gigawatts of electricity from sources including solar and wind plants in Azerbaijan.
Masdar, owned by the Abu Dhabi government, signed agreements to build 1 GW of power capacity at two solar plants and one onshore wind project, the company said in a statement. The projects would be the first step in moving ahead with a broader plan signed in June 2022 to develop green energy in the country.
The company also inaugurated the 230 megawatt Garadagh Solar Park in Azerbaijan which will generate half a billion kilowatt-hours of electricity each year, enough to power more than 110,000 homes, Masdar said.
“This is the first large-scale, utility size solar PV project in Azerbaijan,” according to Maryam Al Mazrouei, Masdar’s senior manager for development in the region. The Garadagh project, Masdar’s first in the country, will supply power domestically in Azerbaijan over the next two decades, she said in an interview.
The state-run renewable energy producer has projects around the world, including plants and plans for facilities in the Caspian and Central Asia regions such as in Kazakhstan, Uzbekistan and Turkmenistan.
The United Arab Emirates is expanding renewable energy production in the Caspian and Central Asian regions as the country’s biggest clean-power producer moves ahead with plans to generate as much as 10 gigawatts of electricity from sources including solar and wind plants in Azerbaijan.
Masdar, owned by the Abu Dhabi government, signed agreements to build 1 GW of power capacity at two solar plants and one onshore wind project, the company said in a statement. The projects would be the first step in moving ahead with a broader plan signed in June 2022 to develop green energy in the country.
The company also inaugurated the 230 megawatt Garadagh Solar Park in Azerbaijan which will generate half a billion kilowatt-hours of electricity each year, enough to power more than 110,000 homes, Masdar said.
“This is the first large-scale, utility size solar PV project in Azerbaijan,” according to Maryam Al Mazrouei, Masdar’s senior manager for development in the region. The Garadagh project, Masdar’s first in the country, will supply power domestically in Azerbaijan over the next two decades, she said in an interview.
The state-run renewable energy producer has projects around the world, including plants and plans for facilities in the Caspian and Central Asia regions such as in Kazakhstan, Uzbekistan and Turkmenistan.
Podcast: Saudi Arabia’s ‘New Middle East’ Has a Problem: The Old One - Bloomberg
Podcast: Saudi Arabia’s ‘New Middle East’ Has a Problem: The Old One - Bloomberg
In the seven years that Saudi Arabia has hosted its flagship investment conference, dubbed “Davos in the Desert,” Prince Mohammed bin Salman has expended energy on lowering the geopolitical temperature in the region. He’s resolved disputes with Qatar, minimized tensions with Iran, rowed back on his invasion of Yemen—all to focus on his primary goal: economic growth and economic diversification.
His driving hope, explains Saudi bureau chief Matthew Martin, is that the more prosperous Saudi Arabia and the region become, the more likely political feuds that have long plagued the region will “melt into the distance.” But the war between Israel and Hamas, Martin says, has shown that deep fissures in the region remain, and that “this dream of putting prosperity ahead of political rights is a very difficult one to achieve.”
Martin joins this week’s episode of In the City and host Francine Lacqua, on location at the Future Investment Initiative in Riyadh, along with hosts David Merritt and Allegra Stratton in London. They discuss what’s happening at the event, especially among financial titans in attendance such as BlackRock’s Larry Fink, Bridgewater’s Ray Dalio and JPMorgan’s Jamie Dimon. They also analyze the struggle to get investment into Saudi’s diversification agenda, and whether normalization between Saudi Arabia and Israel is just paused—or off the table entirely.
In the seven years that Saudi Arabia has hosted its flagship investment conference, dubbed “Davos in the Desert,” Prince Mohammed bin Salman has expended energy on lowering the geopolitical temperature in the region. He’s resolved disputes with Qatar, minimized tensions with Iran, rowed back on his invasion of Yemen—all to focus on his primary goal: economic growth and economic diversification.
His driving hope, explains Saudi bureau chief Matthew Martin, is that the more prosperous Saudi Arabia and the region become, the more likely political feuds that have long plagued the region will “melt into the distance.” But the war between Israel and Hamas, Martin says, has shown that deep fissures in the region remain, and that “this dream of putting prosperity ahead of political rights is a very difficult one to achieve.”
Martin joins this week’s episode of In the City and host Francine Lacqua, on location at the Future Investment Initiative in Riyadh, along with hosts David Merritt and Allegra Stratton in London. They discuss what’s happening at the event, especially among financial titans in attendance such as BlackRock’s Larry Fink, Bridgewater’s Ray Dalio and JPMorgan’s Jamie Dimon. They also analyze the struggle to get investment into Saudi’s diversification agenda, and whether normalization between Saudi Arabia and Israel is just paused—or off the table entirely.
#Dubai's Emirates NBD third quarter profit rises 38% | Reuters
Dubai's Emirates NBD third quarter profit rises 38% | Reuters
Emirates NBD (ENBD.DU), Dubai's biggest lender by assets, said on Thursday its third-quarter net profit rose 38% year-on-year, partly due to loan growth and steady low-cost funding that allowed the bank to benefit from higher interest rates.
Profit for the quarter was 5.2 billion dirhams ($1.42 billion), roughly in line with analysts' median estimate of 5.18 billion dirhams, according to LSEG data.
The bank, majority owned by the government of Dubai, reported a 29% rise in net interest income to 7.8 billion dirhams, while non-funded income rose 49% to 3.6 billion dirhams.
At the end of September, total assets were up 16% year-on-year to 836 billion dirhams, gross loans were up 8% to 494 billion and deposits were 19% higher at 570 billion.
Its non-performing loans ratio dipped to 5.5% from 5.8% a year earlier. Impairment allowances dropped 54% "as credit quality improved, reflecting the group's prudent approach to credit provisions", it said in its statement.
Hesham Abdulla Al Qassim, vice chairman and managing director, said lending to small and medium businesses rose 34% in the United Arab Emirates, "supporting this important sector and bedrock of the economy".
Emirates NBD (ENBD.DU), Dubai's biggest lender by assets, said on Thursday its third-quarter net profit rose 38% year-on-year, partly due to loan growth and steady low-cost funding that allowed the bank to benefit from higher interest rates.
Profit for the quarter was 5.2 billion dirhams ($1.42 billion), roughly in line with analysts' median estimate of 5.18 billion dirhams, according to LSEG data.
The bank, majority owned by the government of Dubai, reported a 29% rise in net interest income to 7.8 billion dirhams, while non-funded income rose 49% to 3.6 billion dirhams.
At the end of September, total assets were up 16% year-on-year to 836 billion dirhams, gross loans were up 8% to 494 billion and deposits were 19% higher at 570 billion.
Its non-performing loans ratio dipped to 5.5% from 5.8% a year earlier. Impairment allowances dropped 54% "as credit quality improved, reflecting the group's prudent approach to credit provisions", it said in its statement.
Hesham Abdulla Al Qassim, vice chairman and managing director, said lending to small and medium businesses rose 34% in the United Arab Emirates, "supporting this important sector and bedrock of the economy".
Major Gulf markets fall on Mideast war, interest rate worries | Reuters
Major Gulf markets fall on Mideast war, interest rate worries | Reuters
Major Gulf stock markets fell in early trade on Thursday as the Middle East conflict continued to weigh on sentiment, while fears that U.S. interest rates will stay high added to the angst.
Israel bombarded the Gaza Strip as it prepared for a ground invasion it says is aimed at annihilating the Palestinian militant group Hamas as Russia warned the conflict could spread beyond the Middle East.
At least 6,546 Palestinians, including 2,704 children were killed, and 17,439 wounded in Israeli strikes since Oct. 7, the health ministry in Hamas-controlled Gaza said on Wednesday.
Saudi Arabia's benchmark index (.TASI) dropped 0.7%, hurt by a 0.5% fall in Saudi Aramco (2222.SE) and a 2.6% decline in Saudi Arabian Mining Co (Ma'aden) (1211.SE).
Ma'aden is working to extract lithium from seawater, CEO Robert Wilt said on Wednesday, as competition for the rare metal rages between the U.S. and China.
Meanwhile, Arabian Contracting Services (4071.SE) advanced more than 5% after signing a 10-year contract to establish, operate and maintain outdoor advertising billboards.
Dubai's main share index (.DFMGI) slid 1.1%, weighed down by a 3% decline in top lender Emirates NBD (ENBD.DU).
The bank reported a higher third-quarter net profit, but forecast a sequential decrease in earnings.
In Abu Dhabi, the index (.FTFADGI) lost 0.6%.
Yields on longer-dated U.S. Treasury notes rose and the U.S. dollar strengthened to a one-week high, as underwhelming corporate results in the U.S. raised concerns over the economic strength of the world's largest economy.
The Qatari benchmark (.QSI) fell 0.4%, with Qatar National Bank (QNBK.QA), the Gulf's biggest lender, losing 1.1%.
Mannai Corporation (MCCS.QA), which is not part of the index, fell as much as 7.6% after reporting a steep decline in nine-month net profit.
Major Gulf stock markets fell in early trade on Thursday as the Middle East conflict continued to weigh on sentiment, while fears that U.S. interest rates will stay high added to the angst.
Israel bombarded the Gaza Strip as it prepared for a ground invasion it says is aimed at annihilating the Palestinian militant group Hamas as Russia warned the conflict could spread beyond the Middle East.
At least 6,546 Palestinians, including 2,704 children were killed, and 17,439 wounded in Israeli strikes since Oct. 7, the health ministry in Hamas-controlled Gaza said on Wednesday.
Saudi Arabia's benchmark index (.TASI) dropped 0.7%, hurt by a 0.5% fall in Saudi Aramco (2222.SE) and a 2.6% decline in Saudi Arabian Mining Co (Ma'aden) (1211.SE).
Ma'aden is working to extract lithium from seawater, CEO Robert Wilt said on Wednesday, as competition for the rare metal rages between the U.S. and China.
Meanwhile, Arabian Contracting Services (4071.SE) advanced more than 5% after signing a 10-year contract to establish, operate and maintain outdoor advertising billboards.
Dubai's main share index (.DFMGI) slid 1.1%, weighed down by a 3% decline in top lender Emirates NBD (ENBD.DU).
The bank reported a higher third-quarter net profit, but forecast a sequential decrease in earnings.
In Abu Dhabi, the index (.FTFADGI) lost 0.6%.
Yields on longer-dated U.S. Treasury notes rose and the U.S. dollar strengthened to a one-week high, as underwhelming corporate results in the U.S. raised concerns over the economic strength of the world's largest economy.
The Qatari benchmark (.QSI) fell 0.4%, with Qatar National Bank (QNBK.QA), the Gulf's biggest lender, losing 1.1%.
Mannai Corporation (MCCS.QA), which is not part of the index, fell as much as 7.6% after reporting a steep decline in nine-month net profit.
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