Looming Emirates 777X deal to kickstart Dubai Airshow, sources say | Reuters
Middle East carriers look set to order tens of billions of dollars of long-haul jets at the opening of the Dubai Airshow on Monday, as Emirates renews confidence in the delayed Boeing 777X while facing new competition from rivals like Turkish Airlines.
Hosts Emirates and low-cost cousin flyDubai are expected to stamp their mark early on the world's second-largest aerospace event, industry sources said, despite concerns about a drop in the economically key travel sector due to Mideast tensions.
That includes a new order for several dozen Boeing 777X jets, they said, in a boost for the programme amid ongoing uncertainty over the schedule for the world's largest twin-engined jet, currently expected in 2025 after a five-year delay.
People familiar with the flagship programme have said the risks are weighted toward further delays as Boeing first gauges the impact of tighter certification rules on other projects. Boeing said on Friday there was no change to its schedule.
Sunday, 12 November 2023
Gulf bourses mixed as China pessimism offsets higher oil prices | Reuters
Gulf bourses mixed as China pessimism offsets higher oil prices | Reuters
Gulf stock markets put in a mixed performance on Sunday as higher oil prices were offset by worries of faltering demand from China, the world's top crude importer.
Oil prices - a major driver of Gulf financial markets - rose about 2% on Friday as Iraq voiced support for OPEC+ oil cuts ahead of a meeting of the group on Nov. 26. Brent futures settled at $81.43 a barrel.
The Qatari index (.QSI) snapped a three-session losing streak on Sunday with a 0.3% gain. Masraf Al Rayan (MARK.QA) and Qatar Fuel (QFLS.QA) each rose 1.4%.
Saudi Arabia's benchmark index (.TASI) extended losses to a fourth consecutive session, easing 0.1%, with Fawaz Abdulaziz Alhokair Co (4240.SE) falling 9.9% in its steepest drop in more than 13 months.
The retailer reported a third-quarter net loss of 202.9 million riyals ($54.1 million) compared to a net profit of 21.1 million riyals a year earlier.
Saudi Telecom (7010.SE) fell 1.3% and Maharah for Human Resources (1831.SE) was down 8.6%.
Data from China on Thursday showed policymakers struggling to control disinflation, casting doubt over the chances of a broad-based economic recovery in the world's biggest commodity consumer.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 1.7%, with Commercial International Bank (COMI.CA) down 2.5% and Misr Fertilizer (MFPC.CA) losing 4.6%.
However, Credit Agricole Egypt (CIEB.CA) gained 3.7% as the lender reported a 121% jump in third quarter consolidated net profit.
Gulf stock markets put in a mixed performance on Sunday as higher oil prices were offset by worries of faltering demand from China, the world's top crude importer.
Oil prices - a major driver of Gulf financial markets - rose about 2% on Friday as Iraq voiced support for OPEC+ oil cuts ahead of a meeting of the group on Nov. 26. Brent futures settled at $81.43 a barrel.
The Qatari index (.QSI) snapped a three-session losing streak on Sunday with a 0.3% gain. Masraf Al Rayan (MARK.QA) and Qatar Fuel (QFLS.QA) each rose 1.4%.
Saudi Arabia's benchmark index (.TASI) extended losses to a fourth consecutive session, easing 0.1%, with Fawaz Abdulaziz Alhokair Co (4240.SE) falling 9.9% in its steepest drop in more than 13 months.
The retailer reported a third-quarter net loss of 202.9 million riyals ($54.1 million) compared to a net profit of 21.1 million riyals a year earlier.
Saudi Telecom (7010.SE) fell 1.3% and Maharah for Human Resources (1831.SE) was down 8.6%.
Data from China on Thursday showed policymakers struggling to control disinflation, casting doubt over the chances of a broad-based economic recovery in the world's biggest commodity consumer.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 1.7%, with Commercial International Bank (COMI.CA) down 2.5% and Misr Fertilizer (MFPC.CA) losing 4.6%.
However, Credit Agricole Egypt (CIEB.CA) gained 3.7% as the lender reported a 121% jump in third quarter consolidated net profit.
ICE Futures Europe Data to Give Oil Traders Glimpse Into Mideast Market - Bloomberg
ICE Futures Europe Data to Give Oil Traders Glimpse Into Mideast Market - Bloomberg
ICE will begin including positioning data from traders for three Dubai oil related contracts, including the spread between global physical benchmark Dated Brent versus Dubai crude, starting Friday. Historical data for 2023 also is being made available.
Until now there was little transparency on how traders used related futures contracts in Middle Eastern physical markets. ICE’s commitment of traders report will now break down positioning in Dubai contracts by trader types, such as money managers and commercial players, and show which way they are betting on prices to move.
Dubai crude is the main benchmark for traders in Asia who buy cargoes from the Middle East. Its trading volumes and open interest have surged this year as supply curbs by Saudi Arabia and Russia have restricted availability of oil that’s similar in quality to Dubai.
ICE will begin including positioning data from traders for three Dubai oil related contracts, including the spread between global physical benchmark Dated Brent versus Dubai crude, starting Friday. Historical data for 2023 also is being made available.
Until now there was little transparency on how traders used related futures contracts in Middle Eastern physical markets. ICE’s commitment of traders report will now break down positioning in Dubai contracts by trader types, such as money managers and commercial players, and show which way they are betting on prices to move.
Dubai crude is the main benchmark for traders in Asia who buy cargoes from the Middle East. Its trading volumes and open interest have surged this year as supply curbs by Saudi Arabia and Russia have restricted availability of oil that’s similar in quality to Dubai.
#Saudi s Find a Bottomless EV Money Pit in Lucid $LCID - Bloomberg
Saudis Find a Bottomless EV Money Pit in Lucid $LCID - Bloomberg
Saudi Arabia appeared to have found a winner when US luxury electric vehicle manufacturer Lucid Group Inc. went public in 2021 — a clean tech investment that would diversify and substantially add to the kingdom’s oil riches. Two years later, Lucid has instead delivered a grim lesson in automotive capital intensity, scale economies and the difficulty of building car brands from scratch.
The Public Investment Fund’s 60% Lucid stake was valued at more than $55 billion in the months after the EV manufacturer completed a US SPAC listing.
Lucid’s optimistic sales forecasts and vertically integrated strategy (it develops core technologies itself) helped persuade giddy retail investors it would become the next Tesla Inc. But the excitement didn’t last: The Saudis’ holding is now worth just $5.4 billion.
Coincidently, that’s the same amount the PIF has invested in Lucid since 2018. While it hasn’t yet lost money, the nearly $800 billion sovereign wealth fund can’t be satisfied. Lucid is miles away from becoming cash-flow positive, meaning Riyadh will have to keep propping it up with equity and loans.
Saudi Arabia appeared to have found a winner when US luxury electric vehicle manufacturer Lucid Group Inc. went public in 2021 — a clean tech investment that would diversify and substantially add to the kingdom’s oil riches. Two years later, Lucid has instead delivered a grim lesson in automotive capital intensity, scale economies and the difficulty of building car brands from scratch.
The Public Investment Fund’s 60% Lucid stake was valued at more than $55 billion in the months after the EV manufacturer completed a US SPAC listing.
Lucid’s optimistic sales forecasts and vertically integrated strategy (it develops core technologies itself) helped persuade giddy retail investors it would become the next Tesla Inc. But the excitement didn’t last: The Saudis’ holding is now worth just $5.4 billion.
Coincidently, that’s the same amount the PIF has invested in Lucid since 2018. While it hasn’t yet lost money, the nearly $800 billion sovereign wealth fund can’t be satisfied. Lucid is miles away from becoming cash-flow positive, meaning Riyadh will have to keep propping it up with equity and loans.
Nigeria Seees ‘Immediate’ Investments Worth Billions from #Saudi - Bloomberg
Nigeria Seees ‘Immediate’ Investments Worth Billions from Saudi - Bloomberg
Nigeria says it sees “immediate” multi-billion-dollar investment flows from Saudi Arabia after it signed an agreement with the kingdom to establish a business council that could see the middle eastern nation funding several sectors of the West African country, including agriculture, oil and gas, energy, telecommunications and technologies.
The two nations agreed to reestablish a Nigeria-Saudi Arabia Business Council initially proposed in 2019 by Crown Prince Mohammed bin Salman bin Abdulaziz that was esisted by the government of former President Muhammadu Buhari.
“We expect to see significant investment flow immediately,” Abubakar Atiku Bagudu, Nigeria’s minister of budget and economic planning said in an interview in Riyadh after a business round-table between the officials of Saudi and Nigeria.
Through the council, the kingdom plans to replicates several of investments made in India, Indonesia, and Pakistan in Nigeria that could be worth several billion dollars, the minister said without giving exact figures of the expected inflows. Several companies, including the Saudi Agricultural and Livestock Investment Co, have made commitments to close several deals in Nigeria by end of the year, according to Bagudu. Nigeria’s minister of agriculture met with his Saudi counterpart and Salic executives.
“They told us that they are in the process of making additional investment decisions in Nigeria, which they hope to close before the end of the year,” the minister said.
Nigeria says it sees “immediate” multi-billion-dollar investment flows from Saudi Arabia after it signed an agreement with the kingdom to establish a business council that could see the middle eastern nation funding several sectors of the West African country, including agriculture, oil and gas, energy, telecommunications and technologies.
The two nations agreed to reestablish a Nigeria-Saudi Arabia Business Council initially proposed in 2019 by Crown Prince Mohammed bin Salman bin Abdulaziz that was esisted by the government of former President Muhammadu Buhari.
“We expect to see significant investment flow immediately,” Abubakar Atiku Bagudu, Nigeria’s minister of budget and economic planning said in an interview in Riyadh after a business round-table between the officials of Saudi and Nigeria.
Through the council, the kingdom plans to replicates several of investments made in India, Indonesia, and Pakistan in Nigeria that could be worth several billion dollars, the minister said without giving exact figures of the expected inflows. Several companies, including the Saudi Agricultural and Livestock Investment Co, have made commitments to close several deals in Nigeria by end of the year, according to Bagudu. Nigeria’s minister of agriculture met with his Saudi counterpart and Salic executives.
“They told us that they are in the process of making additional investment decisions in Nigeria, which they hope to close before the end of the year,” the minister said.
Investors pull record sums from #Saudi in Middle East fund flight | Reuters
Investors pull record sums from Saudi in Middle East fund flight | Reuters
Foreign investors pulled a record amount of money from U.S. equity funds tracking Saudi Arabia in October as the Middle East's worst violence in decades shook the region's business-friendly narrative.
The iShares MSCI Saudi Arabia ETF saw record net outflows in October of more than $200 million, LSEG data shows, cutting 20% from what it held at the beginning of the month.
Exchange traded funds (ETFs) providing exposure to stocks in Qatar, the UAE and Israel also suffered outflows, with investors worried about instability, and flows have been muted this month.
"Capital flight can be quite indiscriminate," said Torbjorn Soltvedt, principal analyst for the Middle East and North Africa with Verisk Maplecroft.
"It's not necessarily 100% based on the fundamentals for each country. And so obviously, right now, there's a perception that risks are increasing throughout the region. And we're seeing a negative impact as a result of that," he added.
The iShares MSCI Qatar ETF (QAT.O) lost $7.7 million in funds in October, while the iShares MSCI UAE ETF (UAE.O) suffered outflows of $2.75 million.
Foreign investors pulled a record amount of money from U.S. equity funds tracking Saudi Arabia in October as the Middle East's worst violence in decades shook the region's business-friendly narrative.
The iShares MSCI Saudi Arabia ETF saw record net outflows in October of more than $200 million, LSEG data shows, cutting 20% from what it held at the beginning of the month.
Exchange traded funds (ETFs) providing exposure to stocks in Qatar, the UAE and Israel also suffered outflows, with investors worried about instability, and flows have been muted this month.
"Capital flight can be quite indiscriminate," said Torbjorn Soltvedt, principal analyst for the Middle East and North Africa with Verisk Maplecroft.
"It's not necessarily 100% based on the fundamentals for each country. And so obviously, right now, there's a perception that risks are increasing throughout the region. And we're seeing a negative impact as a result of that," he added.
The iShares MSCI Qatar ETF (QAT.O) lost $7.7 million in funds in October, while the iShares MSCI UAE ETF (UAE.O) suffered outflows of $2.75 million.