Fitch affirms Oman's credit rating at BB+, with stable outlook
Fitch issued its credit rating report on the Sultanate of Oman, in which it affirmed the credit rating at “BB+” with a stable outlook. This was due to the decline in public debt as a percentage of GDP and the positive impact of the measures on public finances.
Fitch expects the Sultanate of Oman to achieve a fiscal surplus of 2.2 per cent of GDP in 2024 and 0.9 per cent in 2025, assuming that the average oil price reaches about US$80 per barrel in 2024 and about US$70 per barrel in 2025. The agency expects the oil price break-even point in the Sultanate of Oman to reach 65-70 US dollars per barrel.
The agency said that it expects public debt as a percentage of GDP to decrease from 36.5 per cent at the end of 2023 to 32.4 per cent in 2024, and 31.9 per cent in 2025, indicating that the Sultanate of Oman will continue to repay some debts before their due date, benefiting from additional revenues resulting from high oil prices. The agency expects the government to repay about US$2.9 billion of its foreign debt in the first half of 2024.
The agency indicated that it expects GDP to grow from 1.3 per cent. f the non-oil sector by 2.7 per in 2023 to 1.8 per cent in 2024. This growth is attributed to increased domestic consumption, foreign investment growth, and tourism sector improvement. The agency expects the non-oil sector to grow to 2.8 per cent in 2025.
Fitch explained in its report that the Sultanate of Oman's credit rating may rise if financial control measures continue, public debt declines as a percentage of gross domestic product, and non-oil revenues grow.
Sunday, 26 May 2024
Emirates NBD, JP Morgan Chase working on planned Alec IPO
Emirates NBD, JP Morgan Chase working on planned Alec IPO
Investment Corporation of Dubai (ICD) has picked top banks including Emirates NBD Capital and JPMorgan Chase & Company to work on the planned initial public offering of its key unit - Alec Engineering and Contracting reported Bloomberg, citing people familiar with the matter.
Moelis & Co. is also advising state-backed ICD on the share sale that could take place as early as in the second half of this year, the people said, asking not to be identified as the information isn’t public.
Details including size and timing are still under discussion and could change, they stated.
A major construction company with related businesses operating in the GCC and a presence in Africa, Alec has consistently evolved and grown over the last 20 years to become a trusted partner for the execution of complex and iconic construction projects.
Investment Corporation of Dubai (ICD) has picked top banks including Emirates NBD Capital and JPMorgan Chase & Company to work on the planned initial public offering of its key unit - Alec Engineering and Contracting reported Bloomberg, citing people familiar with the matter.
Moelis & Co. is also advising state-backed ICD on the share sale that could take place as early as in the second half of this year, the people said, asking not to be identified as the information isn’t public.
Details including size and timing are still under discussion and could change, they stated.
A major construction company with related businesses operating in the GCC and a presence in Africa, Alec has consistently evolved and grown over the last 20 years to become a trusted partner for the execution of complex and iconic construction projects.
#Qatar index hits 7-month low as Gulf bourses dip; Egypt gains | Reuters
Qatar index hits 7-month low as Gulf bourses dip; Egypt gains | Reuters
Major stock markets in the Gulf fell on Sunday, led by the Qatar index amid receding expectations for U.S. interest rate cuts following resilient economic data and hawkish comments from the Fed's last policy meeting.
The Qatari benchmark index (.QSI), opens new tab was down for a third day, falling 1.7% to 9,396, its lowest level in nearly seven months, with all constituents posting losses.
Industries Qatar (IQCD.QA), opens new tab dropped 1.3% and Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, slipped 2.2%.
Saudi Arabia's benchmark index (.TASI), opens new tab declined 1.2% to close at 11,851, its lowest in about four months with almost all sectors in the red.
Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, slipped 1.4% and Saudi Aramco (2222.SE), opens new tab lost 1.7%. Saudi Arabia, the oil major's owner, is planning a multi-billion-dollar share sale in Aramco as soon as June.
However, ADES Holding (2382.SE), opens new tab gained 1.8% after the oil and gas driller was awarded a 2.42 billion riyals ($645 million) contract by Kuwait Oil Co.
Robust economic data from the U.S. on Thursday showed an acceleration in business activity in May, and hawkish U.S. Federal Reserve minutes released on Wednesday led traders to dial back their bets on rate cuts this year.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 1.2%, aided by gains in most sectors with Eastern Company (EAST.CA), opens new tab climbing 2.9% and Madinet Masr (MASR.CA), opens new tab rising 4.3%.
The developer posted a 286% surge in its first-quarter net profit.
Meanwhile, Egypt's central bank kept its overnight interest rates steady on Thursday, saying that while economic growth had slowed, rising non-food inflation had offset a steady decline in food inflation.
Major stock markets in the Gulf fell on Sunday, led by the Qatar index amid receding expectations for U.S. interest rate cuts following resilient economic data and hawkish comments from the Fed's last policy meeting.
The Qatari benchmark index (.QSI), opens new tab was down for a third day, falling 1.7% to 9,396, its lowest level in nearly seven months, with all constituents posting losses.
Industries Qatar (IQCD.QA), opens new tab dropped 1.3% and Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, slipped 2.2%.
Saudi Arabia's benchmark index (.TASI), opens new tab declined 1.2% to close at 11,851, its lowest in about four months with almost all sectors in the red.
Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, slipped 1.4% and Saudi Aramco (2222.SE), opens new tab lost 1.7%. Saudi Arabia, the oil major's owner, is planning a multi-billion-dollar share sale in Aramco as soon as June.
However, ADES Holding (2382.SE), opens new tab gained 1.8% after the oil and gas driller was awarded a 2.42 billion riyals ($645 million) contract by Kuwait Oil Co.
Robust economic data from the U.S. on Thursday showed an acceleration in business activity in May, and hawkish U.S. Federal Reserve minutes released on Wednesday led traders to dial back their bets on rate cuts this year.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 1.2%, aided by gains in most sectors with Eastern Company (EAST.CA), opens new tab climbing 2.9% and Madinet Masr (MASR.CA), opens new tab rising 4.3%.
The developer posted a 286% surge in its first-quarter net profit.
Meanwhile, Egypt's central bank kept its overnight interest rates steady on Thursday, saying that while economic growth had slowed, rising non-food inflation had offset a steady decline in food inflation.
#UAE Set to Hit Oil Capacity Target Year Earlier Than It Forecast - Bloomberg
UAE Set to Hit Oil Capacity Target Year Earlier Than It Forecast - Bloomberg
The United Arab Emirates is on course to achieve its full oil capacity target more than a year earlier than expected.
Abu Dhabi National Oil Co. is likely to reach its 5 million barrel-a-day goal by the end of next year or early 2026, ahead of the 2027 goal the company had set, according to people with knowledge of the operations. The higher capacity will be a potential source of tension as the Organization of Petroleum Exporting Countries and its allies deliberates new production quotas later this year.
OPEC and its partners have been restricting output for years to shore up the market and raise prices. The UAE — which said this month that it had raised capacity from last year’s level — has been eager to use some of its spare volumes. The country has occasionally clashed with OPEC’s de-facto leader Saudi Arabia on the issue, risking a split among the group three years ago, before a compromise was found.
Abu Dhabi is currently producing at about two-thirds of its capability. Its economy is arguably among the most diversified in the Gulf and it faces less pressure to keep oil prices high, though crude remains key to the emirate. OPEC+ is scheduled to review members’ existing capacity levels later this year, and use that to set output baseline levels — the starting point from which cuts are calculated — for 2025.
The United Arab Emirates is on course to achieve its full oil capacity target more than a year earlier than expected.
Abu Dhabi National Oil Co. is likely to reach its 5 million barrel-a-day goal by the end of next year or early 2026, ahead of the 2027 goal the company had set, according to people with knowledge of the operations. The higher capacity will be a potential source of tension as the Organization of Petroleum Exporting Countries and its allies deliberates new production quotas later this year.
OPEC and its partners have been restricting output for years to shore up the market and raise prices. The UAE — which said this month that it had raised capacity from last year’s level — has been eager to use some of its spare volumes. The country has occasionally clashed with OPEC’s de-facto leader Saudi Arabia on the issue, risking a split among the group three years ago, before a compromise was found.
Abu Dhabi is currently producing at about two-thirds of its capability. Its economy is arguably among the most diversified in the Gulf and it faces less pressure to keep oil prices high, though crude remains key to the emirate. OPEC+ is scheduled to review members’ existing capacity levels later this year, and use that to set output baseline levels — the starting point from which cuts are calculated — for 2025.
#Qatar Energy Signs 15-Year Urea Supply Deal With Koch Fertilizer - Bloomberg
QatarEnergy Signs 15-Year Urea Supply Deal With Koch Fertilizer - Bloomberg
QatarEnergy signed a long-term urea supply deal with Koch Fertilizer LLC, a US-based fertilizer producer and supplier.
The 15-year agreement, starting in July 2024, is for the supply of as much as 0.74 million tons of urea per annum to Koch Fertilizer, QatarEnergy said in an emailed statement on Sunday. Under this agreement, urea of Qatari origin will be supplied into the agricultural sectors of the US and other international markets.
QatarEnergy signed a long-term urea supply deal with Koch Fertilizer LLC, a US-based fertilizer producer and supplier.
The 15-year agreement, starting in July 2024, is for the supply of as much as 0.74 million tons of urea per annum to Koch Fertilizer, QatarEnergy said in an emailed statement on Sunday. Under this agreement, urea of Qatari origin will be supplied into the agricultural sectors of the US and other international markets.