Economic News

ECONOMIC NEWS Value Previous % GCC 04-Jan-2021 Closing Change Asian shares edged lower on Tuesday amid uncertainty about Senate runoffs in Georgia, which could have a big impact on incoming U.S. President Joe Biden’s ability to pursue MSM 3,695.16 3,679.34 0.43% his preferred economic policies. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.05%, pulling back from a record high. Australian stocks fell 0.26%. Chinese Dubai 2,579.00 2,506.39 2.90% shares erased early losses and rose 0.52%. In Hong Kong, China Mobile, China Unicom, Abu Dhabi 5,115.46 5,079.10 0.72% and China Telecom rallied by more than 6% after the New York Stock Exchange abandoned plans to delist the companies’ shares from its bourse. Japanese shares lost Saudi Arabia 8,667.66 8,612.82 0.64% 0.34% after a spokesman said the government will reach a decision on a state of emergency Bahrain 1,483.30 1,489.78 -0.44% for Tokyo and surrounding cities on Thursday to curb coronavirus infections. U.S. S&P 500 stock futures edged up 0.03%. Euro Stoxx 50 futures were down 0.39%. German DAX Qatar 10,477.12 10,437.50 0.38% futures fell 0.34%, and FTSE futures fell 0.26%. (Reuters) Kuwait 5,536.07 5,546.04 -0.18%

Oil prices edged down on Tuesday before deadlocked talks between major producers about Egypt 10,813.78 10,845.03 -0.29% potential changes in February output are set to continue later in the day while fuel demand 3,427.12 3,437.50 -0.30% concerns lingered amid new COVID-19 lockdowns. Brent crude futures for March fell 12 cents, or 0.2%, to $50.97 a barrel by 0437 GMT, while U.S. WTI crude for February was Value at $47.56 a barrel, down 6 cents, or 0.1%. Both contracts fell more than 1% on Monday Asia % Change after the OPEC+ failed to agree on changes to February’s oil output. Saudi Arabia argued 05-Jan-2021 against pumping more because of new lockdowns while Russia led calls for higher NIKKEI 27,141.57 -0.43% production, citing recovering demand. OPEC+ will resume the talks later on Tuesday. (Reuters) Hang Seng 27,388.96 -0.31% Shanghai 3,501.20 -0.05% Saudi Arabia will open its land, air and sea borders with Qatar on Monday, substantially Value easing a years-long diplomatic rift on the eve of a summit of regional leaders. The step USA % Change comes amid efforts to resolve the dispute that’s split Qatar from its neighbors since 2017 04-Jan-2021 and complicated U.S. strategy toward Iran under President Donald Trump. The new push Dow Jones Ind. 30,223.89 -1.25% to mend ties comes as Trump prepares to leave office with his successor, Joe Biden, vowing to renew diplomacy with Tehran. Tensions in the Gulf mounted on Monday as Iran seized S&P 500 Index 3,700.65 -1.48% a South Korea-flagged tanker hours before announcing it would ramp up its nuclear NASDAQ 12,698.45 -1.47% enrichment activities. (Bloomberg) Value EUROPE % Change 04-Jan-2021 Business activity in the Arab world’s two largest economies improved at the end of last year, with Saudi Arabia seeing its strongest expansion in 13 months. After 2020 setbacks FTSE 100 6,571.88 1.72% caused by the spread of Covid-19 and lower crude prices, non-oil private sector economies DAX 13,726.74 0.06% in the United Arab Emirates and neighboring Saudi Arabia still faced job losses as firms CAC 40 5,588.96 0.68% adjusted to the challenges of the global pandemic. Purchasing Managers’ Index surveys compiled by IHS Markit in December for the two Gulf nations rose above the threshold of Value 50 that separates growth from contraction. In Saudi Arabia, the gauge rose to the highest Currencies % Change since November 2019, driven by an increase in output and new business. The Saudi PMI 05-Jan-2021 expanded for a fourth straight month to 57 versus 54.7 in November. The UAE PMI rose USD-JPY 103.0200 0.11% to 51.2, the highest in 16 months, from 49.5 in November. (Bloomberg) USD-OMR 0.3850 0.00% Inflows to emerging-market exchange-traded funds picked up in the final stretch of last year as a market rally encouraged investors to enter 2021 betting on risk. U.S.-listed ETFs EUR-USD 1.2269 0.17% that invest across developing nations as well as those that target specific countries received GBP-USD 1.3589 0.13% 1.5 billion in the week ended Dec. 31, compared with gains of $1.02 billion in the prior week, according to data compiled by Bloomberg. This was the ninth straight week of inflows in a $17 billion streak. (Bloomberg) Value Commodities % Change 05-Jan-2021 OPEC+ talks were unexpectedly suspended on Monday after a majority of members, including Saudi Arabia, opposed Russia’s proposal for a February supply hike. Discussions Oil 47.57 -0.10% will resume on Tuesday, giving the group more time to resolve differences over how much Gold 1,944.20 -0.12% extra oil the market can take as the accelerating coronavirus pandemic threatens a wave of tighter lockdowns. The extension of talks casts doubt on the production increase of 500,000 Silver 27.42 0.19% barrels a day the market had been expecting for February. It also calls into question similar supply boosts traders had penciled in for March and April. Differences of opinion between Note: All the above data updated at 8:00 AM, Saudi Arabia and Russia, the two de-facto leaders of OPEC+, can make for tricky meetings. Muscat time (5:00am GMT) While Moscow appeared to be outnumbered on this occasion, the group typically requires a consensus among all members before concluding talks. Failure to reach a compromise is rare but can have damaging consequences, notably last year’s month-long price war. (Bloomberg)

This report has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. While all care has been taken to ensure that the facts stated herein are accurate and the estimates, opinions and expectations contained herein are fair and reasonable, neither United Securities LLC, nor any of its employees shall be, in any way, responsible for the contents. This shall not be construed as an offer to buy or sell the investments referred to in this report.

United Securities LLC, P.O. Box 2566, Postal Code – 112, Ruwi, Sultanate of Oman Tel: +968 24763300, Fax: +968 24788671, Website: http://www.usoman.com, Email: [email protected]

Oman Oman sold 74 million Rial of bills due Feb 3. Investors offered to buy 1.11 times the amount of securities sold. The bills were sold at a price of 99.951, have a yield of 0.638 percent and will settle on Jan 6. (Bloomberg)

Tethys Oil has announced that drilling operations of exploration well Thameen-1 on Block 49 onshore Oman has commenced. The well is planned to be drilled to a depth of about 4,000 metres below ground and drilling operations are expected to last about 45 days. Primary target is the Late Ordovician Hasirah Sandstone layer at a depth of 3,500 metres. A secondary target is the Mid-Ordovician Saih Nihayda Sandstone at a depth of 3,700 metres. In addition, the well will also investigate the shallower Gharif Sandstone. (Oman Observer)

UAE The UAE's telecom regulatory authority has designated an additional 500 MHz radio spectrum of 6 GHz band to Wi-Fi for indoor use at an EIRP of 250 mW under class authorisation. With this latest addition, the UAE has become the first country in the Mena region to release additional 500 MHz of radio spectrum frequency in the 6 GHz band to the total spectrum of approximately 11.5 GHz in 2.4, 5, 5.8 & 60 GHz bands already available for Wi-Fi. This will significantly boost the speed of indoor wireless networks in the UAE, helping to keep up with the increasing use of wireless services by individuals, companies and different business sectors for day-to-day activities, and to accommodate new applications which drive demand for faster speeds and greater reliability. Today, Wi-Fi is a critical investment that connects people to workplaces, businesses, education and healthcare. (Trade Arabia)

Saudi Arabia Official reserve assets of Saudi Arabia rose 38.8b riyals, or 2.3%, from the previous month to 1.71t riyals in November. Reserves down 8.6% from the same period last year. Gold unchanged Y/y at 1.62b riyals, foreign currency reserves up 4.1% M/m, down 13% Y/y to 574.9b riyals. (Bloomberg)

Income from foreign visitors to Saudi Arabia fell 97% to $168 million in the third quarter of 2020 compared with the same period last year. This is the fourth consecutive quarter of decrease. Revenue from tourism accounted for 13% of services exports, down from 70% a year earlier, and 0.4% of the country's total export of goods and services. In the same time, residents from Saudi Arabia spent $1.53 billion abroad, down 58% from last year. (Bloomberg)

Saudi Arabia’s current account surplus 2,321m dollars vs surplus 7,220m in same period year earlier. Balance of goods a surplus of 15,370m dollars vs surplus 27,337m. Balance of services a deficit of 8,458m dollars vs deficit 11,636m. Financial account surplus 1,544m dollars vs surplus 2,470m in same period year earlier. (Bloomberg)

Qatar Qatari Emir Sheikh Tamim Bin Hamad Al Thani will travel to Saudi Arabia on Tuesday for a summit of Gulf leaders, according to Doha-based Al- Jazeera TV network. Saudi Arabia will open its land, air and sea borders with Qatar on Monday evening, Kuwaiti Foreign Minister Sheikh Ahmad Nasser Al-Sabah said, dramatically easing a years-long diplomatic rift on the eve of the summit. (Bloomberg)

A resolution of the dispute between Qatar and its Gulf neighbors is expected to bolster prospects for the gas-rich nation’s non-oil economy over the medium term, according to Fitch Ratings. A resumption of travel links will eventually lift tourism inflows, and greater interest from regional buyers could support the real estate market, which has been in amulti-year downturn, the ratings agency said in a note. (Bloomberg)

Kuwait Kuwait Oil Co. discovered two oil fields and a northern extension to the Burgan deposit, state-run Kuwait News Agency reported, citing Oil Minister Mohammed Alfares. The Houma field was discovered in the northwest of the country; output estimated at 1,452 b/d of light crude. The second field, Qashaaniyah, was discovered in northern Kuwait, with commercial quantities of 1,819 b/d. Output from the Burgan extension seen averaging more than 2,000 b/d. (Bloomberg)

CORPORATE NEWS . Oman Phoenix Power Company announced its interim cash dividend of 1.4 bz per share to shareholders as of 21 January 2021. (MSM)

Al Madina Takaful announced its 2021 wakala fee of 20% of the gross contributions and Mudarib fee of 55% of the investment income. (MSM)

Bank Nizwa, Oman’s leading and most trusted Islamic bank, recently signed an agreement with Arab Open University to finance the construction of their new campus in Oman. The signing ceremony was held at the Bank Nizwa head office in Muscat. With education being a primary focus of the Oman Vision 2040, Bank Nizwa understands the importance of having a professionally skilled workforce to drive the economy and thereby attain prosperity. (Times of Oman)

UAE Shuaa Capital announced that its managed funds platform has invested in Anghami, the leading music streaming service in the Middle East and North Africa. The investment is part of Anghami's latest funding round and sees SHUAA’s managed funds and co-investors investing in the future growth of Anghami. (DFM)

United Securities LLC, P.O. Box 2566, Postal Code – 112, Ruwi, Sultanate of Oman Tel: +968 24763300, Fax: +968 24788671, Website: http://www.usoman.com, Email: [email protected]

Emirates NBD Bank has mandated Emirates NBD Capital, ICBC, ING, Mizuho Securities and Standard Chartered Bank as joint lead managers and bookrunners to arrange a global investor conference call on Jan. 5. A benchmark fixed rate USD Regulation S senior unsecured bond under ENBD’s U.S.$ 12.5b EMTN program will follow, subject to market conditions. (Bloomberg)

Saudi Arabia Abdul Mohsen Al Hokair Group for Tourism and Development announces the commercial opening of one of it’s Joint Venture Luxury Entertainment LLC its first two movie theatres in Kingdom of Saudi Arabia on 4th of January 2021 under Cinepolis brand name. (Tadawul)

The Board of Directors of SADAFCO have decided on Monday 04/01/2021 to declare the distribution of interim cash dividends of SAR 3 to the shareholders for the half year ended 30/09/2020. The eligibility of dividends shall be for the shareholders who own shares on closing on Wednesday 06/01/2021. (Tadawul)

Al Moammar Information Systems Company's Board of Directors approved the recommendation of MIS Dividends Policy for 2021,2022 and 2023. The policy is aimed at maintaining a minimum annual profit-sharing per share on 45%. Through this policy, the company aims to balance cash distributions with continuing to support and expand the company's capital base in line with the expected growth and expansion of the business. The dividend policy will be subject to amendments based on any fundamental changes in the company's strategy or any obligations to the financial entities that may arise in the future. (Tadawul)

Al Moammar Information Systems Co. announced the Board of Directors resolved to increase the capital by granting 1 bonus shares for every 4 shares by transferring from retained earnings and statuary reserve to share capital. (Tadawul)

Middle East Paper Co. announces of signing bank facility agreement with Bank Albilad the value of facilities SAR 340 million about 136 Million as medium term loan for 7 years & 204 million as short term loan for 2 years as a bridge loan. (Tadawul)

Sacoor Brothers, the international premium fashion label hailing from Portugal is celebrating the opening of its five stores across Saudi Arabia. Already well-established Online in KSA and with stores in the UAE, Kuwait, Bahrain and 18 other countries worldwide, the 5 new brick and mortar stores have opened their doors in Riyadh, Jeddah, and Khobar, offering fashion conscious males and females the chance to experience the unique Sacoor Brothers difference. The stores opened just in time for the holiday shopping season, featuring the AW20 R-Connect collection with the latest colors and prints and premium fabrics highlighted in the elegant Men and Women’s lines of polos, shorts, sport blazers, dresses, skirts shoes and more. (Trade Arabia)

Qatar Nakilat has taken delivery of a newbuild LNG carrier, “Global Star”, which will be commercially and technically managed in-house by Nakilat. Built by Daewoo Shipbuilding & Marine Engineering (DSME), this is the second out of the four LNG carrier newbuilds to be delivered to Global Shipping Co. Ltd., a joint venture of Nakilat (60%) and Maran Ventures Inc. (Maran Ventures) (40%). The first newbuild “Global Energy” was safely delivered in May 2020. The delivery of all four newbuild LNG carriers will bring Nakilat’s fleet to 74 vessels, which is just under 12% of the current global LNG fleet based on carrying capacity. (QE)

United Development Co. announces it has signed agreement for financing the project of developing Commercial Complex and annexure for Marina Service Centre in Giardino Village area at The Pearl Qatar. (QE)

Qatar General Insurance & Reinsurance Company discloses its registration of a Lawsuit Number 2 / 2021 “Plenary Commercial Court” against Al Sari Trading Company and its first owner (former Chairman of the Board of Directors of Qatar General Insurance and Reinsurance Company) and the second owner of Al Sari Trading Company before the Court of First Instance circuit number (10) in Al-Dafna. (QE)

GWC (authorized service contractor for UPS in Qatar) inaugurated its regional hub in the free zone located in Ras Bufontas. The opening ceremony was held on Thursday, December 31, 2020 under the patronage of H.E. Ahmad bin Mohammed Al Sayed, Minister of State and Chairman of QFZA and Sheikh Abdullah bin Fahad bin Jassim bin Jabor Al-Thani, Chairman of GWC. (QE)

Ooredoo Group and Ericsson have signed a five-year global frame agreement for the supply of 5G radio, core and transport products and solutions, as well as related implementation and integration services. The agreement covers all 10 of the Group’s operating companies in Qatar, Indonesia, Algeria, Iraq, Kuwait, Oman, Palestine, Tunisia, Myanmar and Maldives. The agreement covers Ericsson Radio System, including Mini-Link 6000 products that are capable of 10Gbps, Ericsson Cloud Core, Cloud Infrastructure and Ericsson Cloud Communication solutions. This will enable end-to-end 5G support to digitally transform and modernize Ooredoo’s existing mobile networks across its operating companies. (Trade Arabia)

United Securities LLC, P.O. Box 2566, Postal Code – 112, Ruwi, Sultanate of Oman Tel: +968 24763300, Fax: +968 24788671, Website: http://www.usoman.com, Email: [email protected]