OPEC Cuts Global Oil Demand Growth Forecasts for Third Consecutive Month - Bloomberg

OPEC Cuts Global Oil Demand Growth Forecasts for Third Consecutive Month - Bloomberg

OPEC trimmed its forecasts for oil demand growth this year and next for a third consecutive month as the group belatedly recognizes a slowdown in global fuel use.

Global oil consumption will increase by 1.9 million barrels a day — roughly 2% — in 2024, or 106,000 barrels a day less than previously forecast, the Organization of Petroleum Exporting Countries said in its monthly report. The revision was “largely due to actual data received combined with slightly lower expectations” for some regions, it said.

With the three successive downgrades, OPEC is starting to retreat from the strongly bullish projections it has held throughout this year. Even after the reductions, its demand estimates remain an outlier — above Wall Street banks and trading houses, and at the top end of the range expected by Saudi Arabia’s oil company, Aramco. It’s roughly double the rate seen the International Energy Agency.

The actions of OPEC members themselves suggest a lack of confidence in the outlook of its Vienna-based secretariat, delaying their plans to restore halted crude production even as the cartel’s forecasts point to a major supply deficit.

Gulf markets end mixed on regional conflict, ahead of earnings | Reuters

Gulf markets end mixed on regional conflict, ahead of earnings | Reuters

Stock markets in the Gulf ended mixed on Monday ahead of third-quarter earnings and with the region still on high alert for Israel to retaliate against Iran for an Oct. 1 barrage of missiles launched in response to Israeli actions in Lebanon.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.9%, ACWA Power Co (2082.SE), opens new tab declined 7.4% and Al Taiseer Group (4143.SE), opens new tab fell 0.6%.

In Qatar, the index (.QSI), opens new tab lost 0.2%, hit by a 0.6% fall in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.

Oil prices - a key factor for the Gulf's financial markets - declined over 2%, wiping out all of last week's gains, as China's stimulus plans failed to inspire investor confidence and the country's oil imports fell for the fifth month, stoking concern about fuel demand.

The markets were also depressed by worries that the possibility of an Israeli response to Iran's Oct. 1 missile attack could disrupt oil production, though the U.S. has cautioned Israel against targeting Iranian energy infrastructure.

Lower prices and disruptions to crude exports impact fiscal balances in countries reliant on oil income.

Dubai's main share index (.DFMGI), opens new tab gained 0.3%, with top lender Emirates NBD (ENBD.DU), opens new tab rising 2.3%.

The Abu Dhabi index (.FTFADGI), opens new tab finished 0.5% higher.

The Dubai stock market continued its rebound, maintaining a healthy bullish trend, which could be further supported by solid earnings if the results are confirmed, said George Pavel General Manager at Capex.com.

According to Pavel, regional geopolitical tensions were less impactful on UAE markets, although they did not avoid the risks entirely.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.1%, ending three sessions of losses, led by a 1% rise in Commercial International Bank (COMI.CA), opens new tab.

Emirates Blasts Boeing for Delays, Plans ‘Serious Conversations’ - Bloomberg #Dubai #UAE

Emirates Blasts Boeing for Delays, Plans ‘Serious Conversations’ - Bloomberg

Emirates, the world’s largest international airline and a major buyer of Boeing Co. widebody aircraft, said it will have “serious conversations” with the US planemaker in coming months following an announcement that the 777X model will be delayed yet again.

“Emirates has had to make significant and highly expensive amendments to our fleet programmes as a result of Boeing’s multiple contractual shortfalls,” President Tim Clark said in a statement, adding that given Boeing’s current situation “I fail to see how Boeing can make any meaningful forecasts of delivery dates.”

The tersely worded statement highlights the growing frustration among airline customers who have waited for years to get the aircraft they’ve ordered, only to see promised deadlines slip again. Boeing said late on Friday that first delivery of its largest widebody model will be delayed to 2026, more than five years after the giant plane was originally set to reach customers.

Aircraft delays and a shortfall in deliveries have become a broader issue across the industry that’s also afflicting Airbus SE. As a result, airlines are being forced to fly older aircraft for longer, often retrofitting them with new interiors and other upgrades at considerable expense.

Emirates has built its fleet around two main models: the Boeing 777 and the Airbus A380 double-decker. With Boeing’s next-generation model of that plane delayed and Airbus ending production of the A380, Clark has been forced to extend the existing jets’ lifespan by putting them through an extensive and expensive retrofit program.

Clark already said in July at the Farnborough Airshow that he didn’t predict the 777X to enter commercial service before 2026. Boeing was forced to suspend some flight tests on the plane a few weeks ago after discovering cracks in the so-called thrust link connecting the hulking engines to the wing.

#Saudi PIF-Backed Firm Plans Trade Zone to Boost China Ties - Bloomberg

Saudi PIF-Backed Firm Plans Trade Zone to Boost China Ties - Bloomberg

EWPartners, an investment firm backed by Saudi Arabia’s sovereign wealth fund, is planning to develop a so-called special economic zone inside the country to boost Chinese trade with the oil-rich kingdom.

The KSA-Sino Logistics Zone will be developed at Saudi Arabia’s new King Salman International Airport, Cliff Chau, managing partner at Riyadh-based EWPartners, said in an interview. It will aim to bring in Chinese firms involved in logistics, light manufacturing and reexports into Saudi Arabia to serve the wider Middle East, Africa and Europe, he said.

The firm is currently in talks with potential investors including both Asian and Middle East sovereign wealth funds to finance around $2 billion for the initial development costs, said Chau, a former executive at China Investment Corp. The full cost of developing the 4 square kilometer zone, which is scheduled to launch by the end of next year, is still being determined, he said.

“The slowdown in Chinese growth means more upcoming and mature Chinese companies are looking at Saudi Arabia for growth,” Chau said. “We have received so many calls from businesses in mainland China that want to get up and running in Saudi Arabia.”

Saudi Arabia has been looking to boost its trade ties with China, the biggest buyer of its oil exports, as it looks to diversify its economy and geopolitical alliances. At the same time, China has been looking to increase its influence in the Middle East amid a growing rivalry with the US.

Middle East investors have deployed a record amount into China so far this year, Bloomberg reported in September, while Chinese businesses have increasingly been looking to invest into the Middle East or establish new operations in the region. Earlier this year China Investment Corp backed a $1 billion fund established by Investcorp Holdings to invest in companies across the Persian Gulf and China.

EWPartners was established in 2017 to help bring Chinese firms into Saudi Arabia. It’s already invested with Alibaba Group’s cloud computing unit to establish a partnership with Saudi Telecom Co. called Saudi Cloud Computing Co. It’s currently raising a new $1 billion fund to invest in technology and energy ventures.


“We think the golden investment period for this region is still to come,” he said. “On the ground here the temperature is red hot for businesses from mainland China.”

New #AbuDhabi asset manager Lunate reveals deals streak #UAE

New Abu Dhabi asset manager Lunate reveals deals streak

New Abu Dhabi asset manager Lunate has invested in 25 deals so far this year, buying stakes in companies from private equity firm CVC to India’s National Stock Exchange. 

Managing partner Khalifa al-Suwaidi told the Financial Times that the firm, which officially launched in January, had already invested $5bn this year and hopes to deploy $8-10bn a year, making it an attractive potential client for money managers looking to raise funds. 

The dealmaking comes as oil-rich Abu Dhabi seeks to attract foreign hedge funds and asset managers to set up in its financial centre, advertising itself as the “Capital of Capital”. 

Lunate manages assets for Abu Dhabi sovereign investor ADQ and others, and is owned by its three managing partners and Chimera Investment. Chimera is part of the sprawling business empire of Sheikh Tahnoon bin Zayed al-Nahyan, the United Arab Emirates’ national security adviser and chair of ADQ. 

Abu Dhabi has several sovereign investment funds, including ADIA, Mubadala and AI-focused MGX. But Suwaidi said the emirate was keen to support an independently managed “local champion”. Lunate has also been awarded a UAE licence to manage employee savings schemes, and has launched several passive funds. 

Some in the industry, however, question the extent of Lunate’s independence.

Etihad aims to persuade more long-haul passengers to fly via #AbuDhabi #UAE

Etihad aims to persuade more long-haul passengers to fly via Abu Dhabi

Etihad Airways is hoping to take advantage of congestion at Dubai airport to win new business for its Abu Dhabi home base, in the fiercely competitive market for long-haul flights routed through the Gulf. 

The airline wants to more than triple passenger numbers to 30mn by 2030, up from 13mn last year, by attracting more people to break their long-haul flights with a stopover in Abu Dhabi. 

Etihad, which is owned by Abu Dhabi’s sovereign wealth fund, mainly competes on long-haul flights with Emirates, Qatar Airways and Turkish Airlines. All four are expanding, though Etihad remains the smallest. Saudi Arabia is also planning to launch an airline next year. 

Etihad’s chief executive Antonoaldo Neves told the Financial Times that there was plenty of room and demand for Abu Dhabi to expand its aviation industry. 

“From an airline perspective, Dubai is really congested right now. There is not a lot of capacity left in Dubai, and . . . the UAE now has Abu Dhabi to grow,” he said. Dubai International airport, which is an hour’s drive from Abu Dhabi, handled 87mn passengers in 2023. Executives at its biggest airline Emirates said it could soon run out of space there. A new airport capable of handling up to 230mn people a year is being built but will not be open for years. 

Since he was appointed in 2022, Neves has steered away from direct competition with Emirates and Qatar Airways on “ultra-long-haul” flights that link cities like New York and Sydney via one stop in the Gulf. 

“That’s not my fight . . . other airlines like Emirates do it very well,” he said.