OPEC+ sticks to oil policy, repeats could pause Oct hike | Reuters

OPEC+ sticks to oil policy, repeats could pause Oct hike | Reuters

A meeting of top OPEC+ ministers has kept oil output policy unchanged including a plan to start unwinding one layer of output cuts from October, and repeated that the hike could be paused or reversed if needed.

Several ministers from the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+ as the group is known, held an online joint ministerial monitoring committee meeting (JMMC) on Thursday.

OPEC+ is currently cutting output by a total of 5.86 million barrels per day, or about 5.7% of global demand, in a series of steps agreed since 2022 to bolster the market amid uncertainty over global demand and rising supply outside the group.

In a statement after Thursday's meeting, OPEC+ said the members making the most recent layer of cuts - a 2.2 million bpd voluntary cut until September - reiterated that its gradual phase-out could be paused or reversed, depending on market conditions.

Oil prices have fallen from a 2024 high above $92 a barrel in April to below $81, pressured by concern about the strength of demand but finding support this week from increasing tensions in the Middle East.

Gulf stocks mixed on Middle East tensions, US rate-cut outlook | Reuters

Gulf stocks mixed on Middle East tensions, US rate-cut outlook | Reuters

Stock markets in the Gulf ended mixed on Thursday amid tensions in the Middle East following the killing of Hamas leader Ismail Haniyeh in Iran, while expectations of rate cuts in the United States boosted investor sentiment.

Haniyeh's death came less than 24 hours after the most senior military commander of Lebanon-based Hezbollah was killed in an Israeli strike in Beirut. The killings fuelled concern that the 10-month-old war in Gaza between Israel and Hamas could turn into a wider Middle East conflict.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.5%, hit by a 1.5% fall in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.

The country's real gross domestic product (GDP) shrank 0.4% year-on-year in the second quarter, preliminary data by the government's statistical authority showed on Wednesday, driven by a 8.5% decline in oil activities which has limited overall growth for several quarters.

Petrochemical maker Saudi Basic Industries Corp (2010.SE), opens new tab finished 0.8% higher, after the company reported an 85% surge in second-quarter profit.

Dubai's main share index (.DFMGI), opens new tab gained 0.3%, led by a 1.1% rise in banking group Emirates NBD (ENBD.DU), opens new tab.

In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.3%.

The U.S. Federal Reserve held interest rates steady overnight but opened the door to a cut in September.

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

The Qatari benchmark (.QSI), opens new tab closed 0.2% lower.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab eased 0.1%, with Talaat Mostafa Holding (TMGH.CA), opens new tab losing 1.3%.

Cairo travellers faced price rises of as much as 30% for tickets on the city's metro on Thursday after the public transport operator hiked charges in response to a fuel price hike last week.

#AbuDhabi Investor Backs AI Firm Founded by #Saudi MIT Graduates - Bloomberg

Abu Dhabi Investor Backs AI Firm Founded by Saudi MIT Graduates - Bloomberg

Abu Dhabi-based investment firm Shorooq Partners led a $20 million financing round for Intelmatix, an artificial intelligence startup founded by Saudi graduates of the Massachusetts Institute of Technology.

Shorooq teamed up with other public and private institutions including Saudi Venture Capital Company, Saudi Technology Ventures and Olayan Financing Company in what it described as the largest Series A investment for an AI firm in the Middle East and North Africa. The funds will be used to develop the firm’s product offering and geographical expansion, according to a statement.

Seeking to diversify their oil-dependent economies, Saudi Arabia and the United Arab Emirates are investing tens of billions of dollars into advanced technologies including artificial intelligence.

“Our investment in AI is driven by our commitment to unlock deep tech and AI’s contribution to the Saudi economy,” said Nabeel Koshak, chief executive officer and board member at SVC, one of Intelmatix’s investors.

The company was founded in Boston, home of the MIT, but now has operations in Riyadh and London too. It has developed a platform that helps businesses gain access to AI solutions “without worrying about the AI skills shortage or the considerable investment of build versus buy,” Intelmatix Co-Founder and CEO Anas Alfaris said.

Shorooq is among the Middle East’s most active technology investors, having previously committed funds to agri-tech and fintech firms. It’s backed by several sovereign wealth funds including Abu Dhabi’s Mubadala Investment Co. and ADQ, as well as the Korean Venture Investment Corp.

Top #Saudi Chemical Firm Beats Profit Estimate in Sign of Rebound - Bloomberg

Top Saudi Chemical Firm Beats Profit Estimate in Sign of Rebound - Bloomberg

Saudi Arabia’s biggest chemical company beat analysts’ profit estimates in the second-quarter, an early sign the industry may be recovering after a challenging downturn.

Saudi Basic Industries Corp., also known as Sabic, posted 2.18 billion riyals ($581 million) in profit. That’s an 85% increase as the company said margins for some products improved.

The results will provide some relief for an industry that’s struggled with demand concerns in recent quarters. Global behemoth BASF SE reported lower second-quarter earnings while specialty-chemicals maker Lanxess AG flagged improvements but cautioned that it doesn’t see a broader market recovery yet. Sabic had itself earlier this year warned about “considerable uncertainty.”

Sabic’s shares have dropped about 6% this year. Still, they trade at a premium to global peer such as BASF and Dow Inc. because of access to cheaper feedstock, according to Bloomberg Intelligence analyst Salih Yilmaz. Saudi Aramco, the world’s biggest oil exporter that’s scheduled to announce its own second-quarter earnings on Aug. 6, owns a majority of Sabic.

The market is likely under-appreciating the scope for a recovery in petrochemicals pricing and spreads this year, Yilmaz said. He expects Sabic’s revenues to surpass $40 billion in 2024, with supply-demand fundamentals strengthening in the second half and further in 2025.

Other analysts have a weaker outlook. Citigroup Inc. said it remains more cautious than the market, warning some investors are too optimistic on near-term earnings for chemicals. Hopes of a return to normal conditions over the next 12 months are “unrealistic,” Citi analysts led by Oliver Connor said in a note on July 9.

#UAE-based G42 working with US to meet AI standards amid China concerns | Reuters

UAE-based G42 working with US to meet AI standards amid China concerns | Reuters

UAE-based artificial intelligence company G42 is actively working with U.S. partners and the Emirati government to comply with AI development and deployment standards, amid concerns about its ties to China.

A spokesperson for the company told Reuters on Thursday that the firm will work with partners "to comply with the highest global standards" in AI, the first remarks from G42 since the UAE scuttled meetings, opens new tab between it and U.S. Congressional staffers in July.

Lawmakers in the United States raised concerns G42 could transfer powerful U.S. AI technology to China, after Microsoft (MSFT.O), opens new tab invested $1.5 billion in the company, according to a congressional spokesperson.

Abu Dhabi sovereign wealth fund Mubadala, the country's ruling family and U.S. private equity firm Silver Lake hold stakes in G42, the chairman of which, Sheikh Tahnoon bin Zayed Al Nahyan, is the UAE national security adviser and a brother to the president.

“It is entirely understandable and appropriate for the U.S. government to be interested in how critical technology, such as Artificial Intelligence, evolves and is applied," the G42 spokesperson said.

Major Gulf markets mixed amid Middle East tensions, Fed outlook | Reuters

Major Gulf markets mixed amid Middle East tensions, Fed outlook | Reuters

Major stock markets in the Gulf were mixed in early trade on Thursday amid tensions in the Middle East following the killing of Hamas leader Ismail Haniyeh in Iran, while expectations of rate cuts in the United States lifted investor sentiment.

Haniyeh's death came less than 24 hours after the most senior military commander of Lebanon-based Hezbollah was killed in an Israeli strike in Beirut. The killings fuelled concern that the 10-month-old war in Gaza between Israel and Hamas was turning into a wider Middle East conflict.

Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab down 0.2%.

The kingdom's real gross domestic product (GDP) shrank 0.4% year-on-year in the second quarter, preliminary data by the government's statistical authority showed on Wednesday, driven by a 8.5% decline in oil activities which has limited overall growth for several quarters.

However, the Saudi share index's losses were limited by a 3% jump in petrochemical maker Saudi Basic Industries Corp (2010.SE), opens new tab after the company reported an 85% surge in second-quarter profit.

Dubai's main share index (.DFMGI), opens new tab gained 0.4%, with blue-chip property developer Emaar Properties (EMAR.DU), opens new tab rising 1.5% and sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab gaining 1.7%.

In Abu Dhabi, the main share index (.FTFADGI), opens new tab added 0.4%.

The U.S. Federal Reserve held interest rates steady overnight but opened the door to a cut in September.

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

The Qatari benchmark (.QSI), opens new tab fell 0.3%, hit by a 1.1% drop in petrochemical firm Industries Qatar (IQCD.QA), opens new tab.