Russia forecasts stable oil output to 2025, to set up stockpiles 

Updated 14 sec ago

Arab News

May 01, 2023 15:00

RIYADH: Stock markets across the Gulf Cooperation Council raised $3.5 billion through 12 initial public offerings during the first quarter of 2023, with the UAE responsible for 91 percent of the total amount.

Abu Dhabi Securities Exchange recorded an increase of 192 percent in value compared to the same quarter of the previous year as it raised $3.2 billion from just three offerings, according to a report issued by the Kuwait Financial Center, also known as Markaz. 

Some $3 billion came through the IPOs of ADNOC Gas and Presight AI, while Dubai-listed Al Ansari Financial Services raised $200 million.

The report showed that following a flurry of IPOs in 2022, the Gulf region witnessed a 25 percent slump in the first quarter of the current year compared to the same period last year, when $4.6 billion was raised through 13 offerings.

Muscat Securities Market in Oman saw an IPO totaling $244 million, representing 7 percent of the total GCC IPO proceeds raised in the first quarter of 2023.   ⁠⁠⁠⁠⁠⁠⁠    ⁠⁠⁠⁠⁠⁠⁠

Furthermore, eight IPOs were held at the Saudi Stock Exchange, also known as Tadawul, generating $72 million, or 2 percent of the total IPO proceeds in the Gulf region.    

However, Tadawul received 100 applications until mid-February 2023, and 23 firms obtained final approval for listing.

This includes Saudi Arabia’s First Mills Co., which plans to float 16.65 million shares, or 30 percent of its share capital, in an IPO that could value the company at as much as $1 billion.

Al-Mawarid Manpower Co. intends to offer 4.5 million shares, or 30 percent of its capital, on Tadawul in May.

Meanwhile, Lumi Rental Co. obtained approval from the Capital Market Authority to offer and list 16.5 million shares, or 30 percent of its share capital, on the Saudi exchange.

The Markaz report added that the UAE is also expecting 11 IPOs in 2023, with ADNOC planning to float its marine and logistics subsidiary in the coming months.

Oman’s OQ Gas Network is also preparing for a public share sale that could take place in June. and could raise more than $500 million, the report stated.

Updated 18 min 46 sec ago

REUTERS 

May 01, 2023 14:44

DUBAI: Qatar Airways could expand its number of destinations to 190 from 177 currently under plans for rapid growth, but its ability to do so depends on the delivery of additional aircraft, the Gulf carrier’s CEO said on Monday.  

“It all depends (on) when we receive further aircraft deliveries. It might turn out to be 190 (destinations),” Qatar Airways CEO Akbar Al-Baker told reporters at a press conference during the Arabian Travel Market conference in Dubai. 

The airline expects plane makers Boeing and Airbus to begin delivering soon, he said. Previously he said delivery delays had prompted the airline to make conservative growth plans. 

Airbus in March reinstated an order for 73 aircraft from Qatar Airways which it had revoked during a major legal dispute over damage to the surface of grounded A350s. 

The airline and plane maker settled the dispute in February, and Al-Baker expects to begin receiving the aircraft in the “not too distant future.” 

Qatar Airways is also experiencing delayed delivery of Boeing 787 and 777X planes, Al-Baker added. He said the 787 delays had been caused by “unnecessary” concerns raised by the US Federal Aviation Administration. 

Boeing in February temporarily halted delivery of new 787 aircraft to conduct additional analysis of a fuselage component amid the FAA’s concerns. 

Al-Baker said he looked forward to cooperating with Riyadh Air, Saudi Arabia’s newly announced national airline, which aims to compete head-to-head with regional carriers like Qatar Airways. 

“There is a lot of business around for everybody… We will cooperate with them and support them,” he said, without specifying how. 

Updated 44 min 8 sec ago

Arab News

May 01, 2023 14:27

RIYADH: Oil fell on Monday as concerns over the economic impact of the US Federal Reserve potentially raising interest rates and weaker Chinese manufacturing data outweighed support from new supply cuts taking effect this month by the Organization of Petroleum Exporting Countries and its allies, known as OPEC+. 

The Fed, which meets from May 2 to 3, is expected to increase interest rates by another 25 basis points, Reuters reported.  

Brent crude fell $1.55, or 1.93 percent, to $78.78 a barrel at 12:00 p.m. Saudi time, while US West Texas Intermediate crude lost $1.56, or 2.03 percent, to trade at $75.22. 

Qatar Airways ‘fighting’ with oil companies for low-cost sustainable fuel 

The CEO of Qatar Airways said on Monday that the airline is “fighting with oil companies” to produce sustainable aviation fuel in order to bring prices down. 

“We are fighting with oil companies to create the economies of scale to produce SAF in big volumes to bring the price down,” Akbar Al-Baker said at a press conference, adding that the airline would like to use it, or at least blend SAF with aviation fuel. 

Natural gas pumping resumes from Libya’s Brega to Al-Khums 

Libya’s National Oil Corp. will resume pumping natural gas from Brega to the Libyan city of Al-Khums at a capacity of 100 million cubic feet per day after a 12-year halt, a company statement said on Monday. 

Eni sees no major energy price upsets in 2023: CEO 

The CEO of Italian oil and gas company Eni, Claudio Descalzi, said he does not expect any “big shocks” on the energy markets this year. 

“European gas storages are full and, although the global economy has restarted, demand is not at its highest because China has not yet resumed full operations,” Descalzi said in an interview with La Stampa newspaper. 

“Above all, in these months we have managed to diversify supplies, eliminating dependencies that are dangerous for the stability of supplies and prices,” he added. 

He said imports of Russian gas had fallen to almost zero, thanks to supplies of liquefied natural gas from the US and new contracts with a number of African countries. 

(With input from Reuters)

Updated 01 May 2023

Arab News

May 01, 2023 13:40

RIYADH: Saudi Arabia’s industrial and mining sectors are set to benefit from potential ties with Switzerland amid a ministerial visit to the European country.

During his trip, Saudi Minister of Industry and Mineral Rescources Bandar Alkhorayef aims to review investment opportunities in the sectors for which he is responsible, the Saudi Press Agency reported on Monday.

The minister is also reportedly planning to open new channels of communication for investors from both countries.

Alkhorayef is scheduled to participate in the World Economic Forum, meet government officials, and visit several Swiss companies during his stay..

The ministerial visit will help the Kingdom diversify its economic base by opening its doors to investors from all over the world.

In 2021, the volume of the Kingdom’s non-oil exports to Switzerland amounted to more than SR3.42 billion ($911.82 million), while the volume of imports was recorded at SR7.99 billion.

Saudi Arabia’s key exports included precious metals, jewelry, building materials, and re-exports of cars.

Imports to the Kingdom from Switzerland included medicines, heavy machinery, electronics, and food products.

In January, the 13th meeting of the Saudi-Swiss Joint Economic Committee and the Saudi-Swiss Executive Investment Forum was held in Zurich.  

It examined bilateral economic ties and discussed issues related to the technology, tourism, energy, and health sectors.  

Participants emphasized the significance of broadening the scope of cooperation between Saudi Arabia and Switzerland by capitalizing on opportunities in areas of mutual interest.

The forum saw the signing of an agreement to launch a global company to operate and manage hotels in the Kingdom, as well as a deal to establish a joint venture in precious metals, and four memorandums of understanding in tourism, hospitality, and health.

Updated 01 May 2023

Reuters   

May 01, 2023 11:20

RIYADH: US regulators said on Monday that First Republic Bank has been seized and a deal agreed to sell the bank to JPMorgan Chase & Co, in what is the third major US institution to fail in two months. 

The Wall Street major bank will take most of First Republic’s assets and all the deposits, including uninsured ones, the regulators said in a statement. 

JPMorgan was one of several interested buyers including PNC Financial Services Group, and Citizens Financial Group Inc, which submitted final bids on Sunday in an auction being run by US regulators, sources familiar with the matter said over the weekend. 

The California Department of Financial Protection and Innovation announced early on Monday it had taken possession of First Republic and that the Federal Deposit Insurance Corp. would act as its receiver. 

The FDIC estimated in a statement that the cost to the Deposit Insurance Fund would be about $13 billion. The final cost will be determined when the FDIC terminates the receivership. 

First Republic had total assets of $229.1 billion as of April 13 and $103.9 billion worth of deposits, the FDIC statement said. 

“Our government invited us and others to step up, and we did,” said Jamie Dimon, chairman and CEO of JPMorgan Chase. “Our financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund.” 

The rescue comes less than two months after Silicon Valley Bank and Signature Bank failed amid a deposit flight from US lenders, forcing the Federal Reserve to step in with emergency measures to stabilize markets. Those failures came after crypto-focused Silvergate voluntarily liquidated. 

The failed bank’s 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, according to the statement.