Monday, 13 November 2023

#Dubai faces down airline rivals with $50 billion jet orders | Reuters

Dubai faces down airline rivals with $50 billion jet orders | Reuters


Dubai carriers threw down the gauntlet to emerging regional rivals with more than $50 billion of Boeing jet orders on Monday, as competition intensifies to secure dwindling supplies of long-haul jets and anticipate growth in international travel.

Government-owned Emirates and sister airline flyDubai secured 125 Boeing (BA.N) wide-body jets at the opening of the Dubai Airshow, but left Europe's Airbus (AIR.PA) waiting for an order for broadly similar A350 jets.

Orders included 55 of the 400-seat Boeing 777-9 and 35 of the smaller 777-8 in a boost for the over-arching programme known as 777X, which has been plagued by five years of delays.

Emirates also took five extra 787 Dreamliners while flyDubai ordered 30 of the same type in its first ever long-haul order.

"Together these orders represent significant investments that reflect Dubai's commitment to the future of aviation," said Emirates and flyDubai Chairman Sheikh Ahmed bin Saeed Al Maktoum.

Rockfire Pulls Out of Plan to Buy Emirates Gold on UK Sanctions - Bloomberg

Rockfire Pulls Out of Plan to Buy Emirates Gold on UK Sanctions - Bloomberg

London-listed Rockfire Resources Plc said it pulled out of an agreement to purchase Dubai precious metals refinery Emirates Gold as it couldn’t do so without breaching UK sanctions.

The mining explorer said it terminated the deal after seeking legal advice following Britain’s sanctioning of gold trader Paloma Precious DMCC due to dealings in Russian gold. The United Arab Emirates-based firm, which owns Emirates Gold, was part of a network that channeled $300 million of gold revenues to Russia, the UK said on Wednesday.

“Following the sanctions, Rockfire immediately sought legal advice from the company’s lawyers,” the firm said in a statement on Monday. “The conclusion of these discussions is that Rockfire is unable to complete the transaction without breaching the sanction.”

Emirates Gold DMCC was removed from the UAE’s accredited refinery list due to concerns that its owners were linked to alleged money launders Howard Baker and Simon Rudland. Baker, who the UK said was the key individual behind Paloma Precious, was also sanctioned by Britain.

Paloma was previously a shareholder in Rockfire, but sold its stake in September in an off-market transaction. Rockfire announced its proposed deal to buy Emirates Gold in September.

Gulf markets mixed on interest rate worries | Reuters

Gulf markets mixed on interest rate worries | Reuters


Stock markets in the Gulf put in a mixed performance on Monday as focus turned to this week's U.S. inflation data for more clues on whether global interest rates have peaked.

Economists polled by Reuters expect U.S. headline consumer price inflation to have slowed to 3.3% in October from 3.7% in September when the data is released on Tuesday, although the core inflation rate that strips out volatile components is not expected to change.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI) fell 0.4% with rental firm Lumi (4262.SE) down by 3.3% and Etihad Atheeb Telecommunication (7040.SE) 1.6% lower.

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.

Dubai's main share index (.DFMGI) rose 0.3%, with Mashreq Bank (MASB.DU) up 4.2%.

The Dubai bourse remains volatile and potentially exposed to the downside, said Daniel Takieddine, CEO MENA at BDSwiss.

"However, strong local fundamentals could help limit risks while the announced initial public offering of Dubai Taxi could drive up interest in the stock market and fuel a stronger rebound."

Dubai plans to offer 25% of shares in the taxi business through an initial public offering (IPO), the company said in a statement on Monday, the latest public share sale as part of a broader privatisation programme of state assets.

In Abu Dhabi, the index (.FTFADGI) eased 0.2%.

Crude oil prices - a catalyst for the Gulf's financial markets - eased as demand worries trumped supply concerns ahead of Chinese retail sales data later in the week that may darken an outlook already dimmed by declining industrial activity in the world's second largest economy.

The Qatari benchmark (.QSI) rose 0.3%, led by a 3.9% gain for Islamic lender Masraf Al Rayan (MARK.QA).

Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 0.2% higher, helped by a 12.4% jump in Telecom Egypt (ETEL.CA).

Egypt's annual core inflation slowed to 38.1% in October from 39.7% in September, data from the country's central bank showed on Sunday.

Gulf Nations Must Overhaul Everything to Meet Climate Goals - Bloomberg

Gulf Nations Must Overhaul Everything to Meet Climate Goals - Bloomberg


In Dubai, it’s normal to leave your air conditioning running at all times, even if you go away for weeks. Qatar has the largest air-conditioned outdoor jogging tracks in the world. Across the United Arab Emirates, water is so cheap that some people run the shower just to listen to it.

The monarchies that make up the Gulf Cooperation Council — Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain and Oman — built their cities on hot, arid lands, including the world's largest continuous sand desert. In summer months, temperatures top 50C (122F), contributing to some of the highest levels of per-capita energy use in the world: Qatar ranks first, Bahrain fourth, the UAE fifth and Saudi Arabia 14th. That footprint will grow as the population of GCC countries, including foreign workers, swells from 59 million today to an estimated 84 million by 2100.

The extra people are key to economic growth in a region that has long relied on state-owned oil for income. But to accommodate them while meeting stated climate goals, Gulf countries would have to make major adjustments. Governments and companies will need to dramatically increase renewable energy capacity, while winding down reliance on fossil fuels. Environments will have to be adapted for more people and more intense heat, without increasing emissions or leaving the poor behind. The average resident will have to acclimate to higher energy prices and, for the first time, lower consumption.

None of this needs to happen overnight: The UAE and Oman have committed to net-zero emissions by 2050, and Bahrain, Kuwait and Saudi Arabia by 2060. (Qatar has no net-zero goal.) But when Dubai kicks off the COP28 climate conference later this month, the yawning gap between Gulf countries’ stated goals and present reality is sure to come up.

“Dubai is a microcosm of the predicament we’re in globally, whereby the economy runs on extracting, burning and dumping,” says Glada Lahn, a senior research fellow at the UK think tank Chatham House. “It’s tremendously successful along one key measure — standards of living — yet extremely unsustainable. The social contract depends on continuous consumption.”

Emirates and flyDubai place #Dubai Airshow jet orders | Reuters

Emirates and flyDubai place Dubai Airshow jet orders | Reuters

A Boeing 777-9, a variant of the 777X, performs a flying display at the 54th International Paris Airshow
at Le Bourget Airport near Paris, France, June 20, 2023. REUTERS/Benoit Tessier/File photo

Dubai's Emirates placed an order for 90 more Boeing (BA.N) 777X jets at the opening of the Dubai Airshow on Monday, including both variants of the future long-haul jet.

The world's largest international carrier also added five more Boeing 787s to an existing order, saying the total package of new widebody jets was worth over $50 billion at list prices.

Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates airline, said the deal would power Dubai's growth plans and reflected its commitment to the future of aviation.

The 777X order includes 55 of the 400-seat 777-9 variant and 35 of the smaller 777-8, he told a news conference.

Sister airline flyDubai also weighed in at the start of the biennial event with an order for 30 Boeing 787-9 in its first order for wide-body jets.


What's Been Happening With the Iranian Stock Market - Bloomberg

What's Been Happening With the Iranian Stock Market - Bloomberg


Back in 2020, we spoke with Maciej Wojtal, a London-based fund manager who specializes in Iranian stocks. This market is one of the most unfamiliar in the world and most investors can't even look up where the country's shares are trading given ongoing sanctions. Of course, there's also constantly changing geopolitical risk, which has only picked up in light of the Israel-Hamas war. In this episode, we find out what's been going on with Iranian stocks in the midst of the recent upheaval and dig deeper into its overall economy after years of isolation from the Western world.

#Dubai Restarts Privatizations After a Year With Taxi IPO - Bloomberg

Dubai Restarts Privatizations After a Year With Taxi IPO - Bloomberg

Dubai kickstarted its privatization program after a one-year hiatus with the planned initial public offering of its taxi business, as share sales gather pace in the United Arab Emirates in the final weeks of 2023.

The Dubai government will sell a 25% stake in Dubai Taxi Co. in the domestic listing, amounting to 624.75 million shares, according to a statement on Monday. The price range will be announced on Nov. 21 and the subscription period will end on Nov. 29 for institutional investors and a day earlier for retail buyers. The shares are expected to start trading on Dec. 7.

The IPO could raise about $300 million, Bloomberg News has reported.

Dubai Taxi’s IPO will be the first share sale by the government in more than 12 months, after it raised $8.3 billion selling stakes in four state-owned companies in 2022, including the city’s main water and electricity utility. The IPOs are part of a plan unveiled about two years ago to list 10 state-owned companies in a bid to boost flagging trading volumes and catch up with IPO drives in Abu Dhabi and Riyadh.

Dubai paused the listings this year, contributing to a drop in the overall IPO volumes in the Middle East. Such transactions have raised $7.9 billion so far in 2023, a 54% drop year-on-year, data compiled by Bloomberg show.

Still, the region is holding up as a bright spot for listings despite the war between Israel and Hamas and a gloomy environment for IPOs globally due to fears over high interest rates. The Oct. 7 attack by Hamas on Israel put investors on edge and caused a sharp drop in regional stocks, although many have since pared those losses.

Dubai’s benchmark index is the best performer in the Gulf this year, rising almost 19% partly thanks to a jump in property shares.

Most Gulf markets subdued on falling oil, rising geopolitical tensions | Reuters

Most Gulf markets subdued on falling oil, rising geopolitical tensions | Reuters

Most major Gulf stock markets were subdued in early trade on Monday amid falling oil prices and mixed signals from the U.S. Federal Reserve, coupled with geopolitical tensions over the Israel-Hamas war.

Markets were wary of potential U.S. policy tightening after Fed Chair Jerome Powell said last week that it could raise interest rates again if progress on curbing inflation stalls.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI) eased 0.1%, hit by a 9.7% slide in Fawaz Abdulaziz AlHokair (4240.SE), on course to extend losses for a third session.

Last week, the Saudi-based apparel and accessories retailer posted a net loss after zakat and tax at 202.9 million riyals ($54.10 million) compared to a profit of 21.1 million riyals year ago.

Separately, 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.

Dubai's benchmark index (.DFMGI) added 0.2%, helped by a 0.7% gain in blue-chip developer Emaar Properties (EMAR.DU).

Two more major hospitals in Gaza closed to new patients on Sunday, with staff saying that the continued Israeli bombardment plus lack of fuel and medicine meant more babies and others could die.

In Abu Dhabi, the index (.FTFADGI) was flat.

Oil prices, a key catalyst for the Gulf's financial market, fell, as demand worries trumped supply concerns, amid slowing growth in the United States and China.

The Qatari benchmark (.QSI) edged 0.1% higher, with Qatar Islamic Bank (QISB.QA) gaining 1.1%.