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Friday, July 9, 2021 Dhul-Qa’da 29, 1442 AH

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Mekdam Holding Al-Kuwari meets visiting US delegation all set to join QSE venture market

By Santhosh V Perumal sidiaries are Mekdam Technology, Me- The QEVM is aimed at small and me- Business Reporter kdam Technical Services and Mekdam dium sized family and private compa- Cams – generated revenues of QR168.7mn nies and provides them with an access to and Ebitda, or earnings before interest, capital market and enables them diversify he Qatar Stock Exchange (QSE) taxes, depreciation and amortisation, of their source of fi nancing, achieve the sus- yesterday said all the procedures QR26.8mn in 2020. tainability, growth and expansion. Thave been completed for the listing Mekdam Technology accounted for The companies eligible to join the of Mekdam Holding Group, which will be 55% of 2020 group revenue and 42% of QEVM should have an issued capital not the second entity to get listed on the ven- Ebitda; Mekdam Technical Services (28% below QR2mn, and number of sharehold- ture market or QEVM. and 24%) and Mekdam Cams (8% and ers not less than 20 who own no less than HE the Minister of Commerce and Industry and Acting Minister of Finance Ali bin Ahmed al-Kuwari met “Co-ordination is currently taking 28%). 10% of its capital upon the listing. yesterday with a high-level delegation from the American State of Indiana headed by its Governor Eric place between the QSE and the Qatar Fi- “The company benefi ts from strong The new market is the result of the stra- J Holcomb, who is currently visiting the country. During the meeting, they discussed ways of enhancing nancial Market Authority to determine partnerships with international solution tegic initiatives and eff orts made by the co-operation in the commercial, investment and industrial fields, as well as highlighting the opportunities the appropriate time for the market to list providers, good cash fl ow visibility, and QSE over the past years to develop Qatar’s available to increase trade exchange. Qatar and the US have close economic and trade relations that the shares of Mekdam Holding Group, as a relatively fl exible cost structure,” S&P capital market through continuous con- positively reflected on the volume of trade exchange between the two countries, which in 2020 all the necessary procedures for listing said. sultations with private and family-owned amounted to about $5.3bn, as the United States is the fifth trading partner of the State of Qatar. have been completed,” QSE chief execu- At a recently held webinar, al-Man- companies to identify their needs and of- tive Rashid bin Ali al-Mansoori said in a soori had said efforts are being made to fer them suitable solutions and incentives tweet. enhance the listings by raising aware- for listing in the market. The company, which was assigned ness of the advantages of becoming The Qatar Capital Market 2020 report, ‘gcBBB-’ Gulf regional rating by Stand- public. prepared by the Qatar Financial Center, ard & Poor’s in March this year, will be In January 2012, the bourse established had said the QEVM serves as a dedicated Oil prices fall again as Opec+ uncertainty weighs included in the market for small and me- a separate stand-alone QEVM, stipulat- stock exchange for SME listings, which, dium enterprises. Its listing comes after ing eased entry norms as well as lower despite possessing possibly shorter track Reuters cuts this year but three days of talks Al Faleh Educational Holding Company capital base and shareholders, but made records and higher risk profi les, allows London failed to resolve the dispute. got listed on the QEVM in April this year. mandatory liquidity provider and per- them to access funding through the eq- Russia was trying to mediate to help Mekdam Holding Group – whose sub- petual services of listing adviser. uity capital market. to strike a deal to raise oil output, Oil prices fell for a third day yester- Opec+ sources said on Wednesday. day amid uncertainty about supplies Concerns about the pandemic also after the collapse of Opec+ talks this weighed on prices. week raised the possibility that their Japan, the world’s fourth-largest oil deal to curb output could fall apart. user, is set to declare a state of emer- Brent crude oil futures were down gency for the Tokyo area and South 35 cents, or 0.4%, at $73.08 a barrel Drilling rigs operate at sunset in Korea reported its highest daily tally by 1355 GMT and US West Texas Midland, Texas (file). A fall in US of Covid-19 cases. Intermediate futures were down 51 oil production is expected to slow But prices found some support from cents, or 0.7%, at $71.69. this year, according to the EIA. a large drop in US inventories. Both contracts hit their lowest in Crude stockpiles in the world’s big- about three weeks earlier in the tion of the Petroleum Exporting gest oil consumer fell by 8mn barrels session. Countries and allies including Russia, for the week ended July 2, two But the Brent six-month spread a group known as Opec+. market sources said, citing American remains in backwardation with the Saudi Arabia refused demands from Petroleum Institute figures. front-month price higher than later the United Arab Emirates to raise the Government inventory data is due months. “This suggests that no amount it produced under terms of on Thursday, pushed back a day immediate flooding of the market a pact on cutting supplies that was after a US holiday Monday. is anticipated,” PVM analysts said in first agreed by Opec+ in 2020, when A fall in US oil production is expected a note. oil prices have plunged due to the to slow this year, with the Energy Brent prices have fallen as much Covid-19 pandemic. Information Administration (EIA) as $5 a barrel since Monday’s close The group is still holding back almost saying on Wednesday output would after the collapse of negotiations 6mn barrels per day (bpd) of output 11.10mn bpd in 2021, more than previ- The QEVM is aimed at small and medium sized family and private companies and provides them with an access to capital market on Monday between the Organiza- and had been expected reduce those ously forecast. Page 4 and enables them diversify their source of financing, achieve sustainability, growth and expansion. Islamic equities see demand despite dip in Qatar bourse

By Santhosh V Perumal estate and industrials sectors together consti- Major losers included Ooredoo, Gulf Inter- QR0.32mn the previous day. Foreign funds’ net plunge in trade volume to 1.89mn stocks, 56% Business Reporter tute more than 53% of the total trading volume. national Services, Qatar Cinema and Film, Al buying declined substantially to QR2.84mn in value to QR6.43mn and 23% in transac- Overall trade turnover and volumes were on Khaleej Takaful, Qatari German Medical Devic- compared to QR33.83mn on July 7. tions to 170. the decline in the bourse, where Arab funds es, Widam Food and Qatar Oman Investment; Gulf institutions’ net buying eased markedly The banks and fi nancial services sector saw he Qatar Stock Exchange yesterday saw were seen net profi t takers. even as Qatar Industrial Manufacturing, Ezdan, to QR6.99mn against QR11.27mn on Wednes- a 29% shrinkage in trade volume to 14.76mn marginal demand for the Islamic equities Arab individuals were seen net sellers in the Qatar Islamic Insurance, Medicare Group, Ma- day. shares but on 4% growth in value to QR88.23mn Teven as it settled in the negative. market, which saw a total of 31,285 exchange zaya Qatar and Al Meera were among the gain- However, domestic institutions’ net sell- and 10% in deals to 2,028. The Gulf and foreign institutions continued traded funds (Masraf Al Rayan-sponsored ers. ing fell signifi cantly to QR4.56mn compared to The consumer goods and services sector’s to be net buyers but with lesser intensity as the QATR and Doha bank-sponsored QETF) value QR31.45mn the previous day. trade volume tanked 26% to 19.47mn equities, 20-stock Qatar Index fell 23 points, or 0.21%, to at QR82,065 change hands across 14 deals; Local retail investors and domestic Qatari individuals’ net profi t booking value by 45% to QR29.88mn and transactions 10,842.99 points, having touched an intraday while in the debt market, there was no trading funds were seen lesser inclined into net weakened considerably to QR2.59mn against by 21% to 964. high of 10,883 points. of sovereign bonds and treasury bills. selling in the market, whose QR15.58mn on July 7. There was an 18% contraction in the indus- Local retail investors and domestic funds The Total Return Index shed 0.21% to year-to-date gains were at 3.9% Foreign individuals’ net selling shrank per- trials sector’s trade volume to 25.97mn stocks were seen lesser inclined into net selling in the 21,464.34 points and the All Share Index by ceptibly to QR0.56mn compared to QR1.52mn and 29% in value to QR52.48mn but on 21% in- market, whose year-to-date gains were at 3.9%. 0.21% to 3,432.18 points, while the Al Rayan Arab individuals turned net sellers to the tune on Wednesday. crease in deals to 1,775. The telecom and banking counters witnessed Islamic Index (Price) was up 0.04% to 2,481.04 of QR1.54mn against net buyers of QR3.15mn Total trade volume fell 17% to 99.36mn The telecom sector’s trade volume was down higher than average selling pressure in the points. on July 7. shares and value by 23% to QR258.03mn, while 7% to 4.19mn shares, value by 29% to QR13.7mn bourse, whose capitalisation saw QR27mn, or The telecom index shrank 1.07%, followed by Arab institutions were net sellers to the ex- transactions were up 3% to 7,575. and transactions by 7% to 820. 0.04%, dip to QR627.8bn, mainly owing to mi- banks and fi nancial services (0.25%), consumer tent of QR0.33mn compared with no major net The transport sector’s trade volume plum- However, the market witnessed an 88% crocap segments. goods and services (0.17%), insurance (0.15%), exposure on Wednesday. meted 68% to 5.95mn equities, value by 65% to surge in the real estate sector’s trade volume to More than 57% of the traded constituents industrials (0.1%) and transport (0.1%); while Gulf individuals turned net profi t takers to QR23.93mn and deals by 38% to 658. 27.14mn equities, more than doubling value to were in the red in the market, which saw the real realty gained 0.15%. the tune of QR0.26mn against net buyers of The insurance sector reported a 49% QR43.37mn on a 72% jump in deals to 1,160. Gulf Times 2 Friday, July 9, 2021 BUSINESS

QSE MARKET WATCH

Company Name Lt Price % Chg Volume

Zad Holding Co 15.68 0.00 70 Widam Food Co 4.46 -1.44 310,534 Vodafone Qatar 1.61 -0.37 2,968,506 United Development Co 1.49 -0.60 1,308,540 Salam International Investme 0.95 -0.73 13,901,543 Qatar & Oman Investment Co 0.97 -1.33 1,800,694 Qatar Navigation 7.51 0.13 1,047,685 Qatar National Cement Co 5.05 0.18 56,100 Qatar National Bank 17.90 -0.44 2,695,129 Qlm Life & Medical Insurance 4.90 0.00 160,560 Qatar Islamic Insurance Grou 8.13 1.60 45,318 Qatar Industrial Manufactur 2.89 3.21 41,734 Qatar International Islamic 9.34 -0.13 328,863 Qatari Investors Group 2.44 -0.49 1,221,408 Qatar Islamic Bank 17.25 -0.35 624,678 Qatar Gas Transport(Nakilat) 3.19 -0.28 4,769,161 Qatar General Insurance & Re 2.08 0.24 30,000 Qatar German Co For Medical 2.83 -2.01 2,298,641 Qatar Fuel Qsc 17.74 -0.22 160,014 Qatar First Bank 1.87 0.54 731,011 Qatar Electricity & Water Co 16.70 -0.30 142,025 Qatar Exchange Index Etf 10.65 0.52 651 Qatar Cinema & Film Distrib 3.70 -7.45 300 Al Rayan Qatar Etf 2.46 0.08 30,634 Qatar Insurance Co 2.47 -0.24 629,277 Qatar Aluminum Manufacturing 1.52 -0.07 3,937,354 Ooredoo Qpsc 7.27 -1.36 1,220,538 Alijarah Holding Company Qps 1.18 0.00 3,121,358 Mazaya Real Estate Developme 1.11 0.82 6,555,688 Mesaieed Petrochemical Holdi 1.89 0.00 2,973,102 Al Meera Consumer Goods Co 19.38 0.57 30,552 Medicare Group 8.90 0.86 99,319 Mannai Corporation Qsc 3.90 -0.33 142,932 Masraf Al Rayan 4.46 0.04 1,480,311 Al Khalij Commercial Bank 2.20 0.36 73,417 Industries Qatar 13.60 -0.15 1,142,911 Inma Holding Company 5.09 -0.80 239,216 Investment Holding Group 1.11 0.45 12,000,512 Gulf Warehousing Company 5.20 0.00 129,577 Gulf International Services 1.49 -1.20 3,684,053 Al Faleh Education Holding 1.69 1.99 32,345 Ezdan Holding Group 1.69 2.92 18,163,352 Doha Insurance Co 1.94 -0.77 400,062 Doha Bank Qpsc 2.78 -0.04 1,093,944 Dlala Holding 1.61 0.44 1,469,631 Pedestrians walk past the Exchange Square complex, which houses the Hong Kong Stock Exchange. Hang Seng Index closed 2.9% down at 27,153.13 points yesterday. Commercial Bank Psqc 5.42 -0.02 1,105,217 Barwa Real Estate Co 3.10 -0.42 1,110,609 Baladna 1.51 -0.20 2,522,140 Al Khaleej Takaful Group 4.63 -1.32 624,736 Aamal Co 0.98 0.31 772,217 Asian markets down Al Ahli Bank 3.80 0.00 - Institutional investors press banks to ditch coal

AFP projects by 2030 in countries London that belong to the Organisation over Fed signal, China for Economic Co-operation and Development (OECD), and More than 100 institutional by 2040 for the others. The investors have called on major investors hope that banks might banks to fight harder against announce before the COP26 global warming, in particular by takes place that they will no cutting funds to projects that longer finance new coal projects. tech crackdown involve coal. In addition, the letter calls on The deep-pocketed asset banks to work towards limiting AFP higher as both the S&P 500 and Nasdaq China’s crackdown on the country’s tech jing that it would increase support to managers warned that they increases in global warming to Hong Kong edged to records. giants. businesses, in part by expanding the li- might back resolutions at 1.5 degrees Celsius, a target that “It took some time, but the Fed has Tokyo’s Nikkei 225 closed 0.8% down quidity available to banks. banks’ shareholder meetings has prompted the International fi nally acknowledged rising infl ation- at 28,118.03 points, Hong Kong’s Hang The triumphant recovery from the that push management to do Energy Agency to recommend sian markets were broadly down ary forces,” Louis Navellier, chairman of Seng Index closed 2.9% down at 27,153.13 pandemic in the world’s second-largest more, or vote not to re-elect energy companies halt all yesterday after the Fed signalled Navellier & Associates, said in a note to points and Shanghai’s Composite closed economy had shown signs of slowing in company directors. further oil exploration. Aa possible inflation-induced investors on Wednesday. 0.8% down at 3,525.50 points. recent weeks, with manufacturing activ- In all, 115 investors with $4.2tn As for biodiversity, the investors policy change, while concerns lingered The strong overnight lead from Wall Beijing’s shock decision to remove ity edging down in June and factory gate in holdings, including Aviva want banks to set targets over China’s crackdown on tech giants. Street provided some boost in Asia, but ride-hailing app Didi from online plat- infl ation soaring. Investors, Fidelity and M&G, related to the issue by 2024. The Federal Reserve said on Wednes- Tokyo closed down Thursday as the forms on national security grounds China’s State Council said Wednesday wrote to 63 banks, including Any lack of progress “may be day that while rising prices were expect- Japanese government was set to impose sparked fears of a wider regulatory move following a meeting that it was prepared Standard Chartered, Deutsche taken into consideration within ed as the US economy recovered from a new virus state of emergency to fi ght a against fi rms once seen as untouchable. to “use monetary policy tools... Bank and JPMorgan Chase, investors’ 2022 AGM voting the pandemic, the infl ation jump was surge in infections. Authorities this week suggested they to enhance fi nancial support to the according to a statement action,” the letter warned in higher than expected. Sydney closed up, with investors ap- could revise rules for Chinese companies real economy, particularly to smaller released by the non- reference to annual general Offi cials said the US central bank parently not aff ected by news that the listed overseas – a move that would clip businesses.” governmental organisation meetings. “The message from needs to be ready to pull back on its mas- lockdown in Australia’s biggest city the wings of major fi rms such as Alibaba, The news prompted a rally on bonds, ShareAction on Wednesday. investors is clear: distant net sive support programme if this persists, could be extended. Tencent and Bytedance and potentially pushing China’s benchmark 10-year The investment groups called zero targets and warm words according to minutes from a June policy Seoul and Singapore closed down. limit their ability to attract foreign capi- bond yields to three % – their lowest for stronger measures to about the importance of meeting. Bourses in London, Paris and Frank- tal. level since August – as traders predicted safeguard the planet’s climate biodiversity are not enough,” But it gave no indication that a re- furt also fell on open as the European Yesterday saw a key measure of main- a fl ood of much-needed liquidity. and biodiversity, given the warned Jeanne Martin, versal was imminent – a stance con- Central Bank was set to announce the land shares traded in the fi nancial hub “This is an important dovish shift leverage that banks have via a campaign manager at sistent with commentary from Fed results of an 18-month policy review – a fall by up to 3%, as investors moved to and is likely to drive unwind of residual financing, ahead of the COP26 ShareAction. chair Jay Powell that did not jolt the review widely expected to see it redefi ne jettison shares of big-name Chinese policy normalisation fear and expecta- conference scheduled for “Investors want concrete action market. its infl ation target. fi rms. tions, and render some support to broad November in Glasgow, Scotland. now, and those banks which fail US markets appeared ready to set aside Hong Kong stocks were well down Investors were more upbeat despite risk assets,” Citigroup Inc strategists led The main measure would be to to respond can expect serious infl ation fears – at least for the time be- on closing, extending losses into a sev- closing down in mainland China, with by Gaurav Garg wrote in a note cited by halt financing for coal-related challenges at their next AGMs.” ing – with Wall Street fi nishing modestly enth day, on continued concerns about bonds rallying on indications from Bei- Bloomberg TV. US states allege Google ‘unlawfully’ preserves Play Store monopoly

Latest case aimed at forcing businesses, including advertising, maintain its monopoly in the Android makers to raise prices and consumers DiMuzio, executive director for the in revenue, the states said. Google more competition on Android; in-app purchases and smart home app distribution market,” the lawsuit to spend more, the states said. Coalition for App Fairness, which “immediately launched multiple co- states point to “enormous profit gadgets. stated. “Google Play is not fair play,” Utah represents companies including ordinated initiatives designed to block margins” for Play Store; case Google said on Wednesday the The states pointed to agreements Attorney General Sean Reyes Match Group Inc and Spotify the emergence of a competing Galaxy alleges Google intended to pay litigation was about boosting a already targeted in other lawsuits said in a statement.”It must stop Technology SA that oppose some of Store,” the lawsuit said. “Google Samsung not to compete; Google handful of major app developers that such as those Google has with mobile using its monopolistic power and the Play Store rules. viewed these projects as an integrated says case seeks to benefit big want preferential treatment rather carriers and smartphone makers to hyper-dominant market position to “Anti-competitive policies stifle approach to eliminating the threat developers than about helping small businesses promote its services. unlawfully leverage billions of added innovation, inhibit consumer freedom, of more developers following Epic’s or consumers. But they added fresh claims after dollars from smaller companies, inflate costs, and limit transparent lead.” Reuters It maintains that unlike Apple Inc with newly reviewing internal company competitors and consumers beyond communication between developers Last year, Epic itself sued Google and Washington its App Store on iPhones, Android documents. what should be paid.” and their customers,” DiMuzio said. Apple separately in federal court in supports competitors to the Play The states alleged that Google The states want the consumers to get The lawsuit said that while Google California over app store policies. Store. bought off developers so they would their money back. does enable consumers to avoid Proposed classes of developers and Thirty-seven US state and district “Android and Google Play provide not support competing app stores, They also called for civil penalties the Play Store, it displays “generally consumers have joined the cases. attorneys general sued Alphabet Inc’s openness and choice that other and that through numerous secret and a court-imposed monitor to misleading warnings and hurdles” to A judge’s decision in the Apple fight is Google on Wednesday, alleging that platforms simply don’t,” the company projects it intended to pay Samsung ensure Google eases the process discourage such activity. expected in the coming weeks, and a it bought off competitors and used said in a blog post. Electronics Co, whose rival app store for consumers, app developers Google does not break out Play Store’s hearing on Google’s eff ort to dismiss restrictive contracts to unlawfully The states, led by Utah, New York, posed the biggest threat, to stop and smartphone makers to use or financial performance but has said the case against it is scheduled for maintain a monopoly for its app store North Carolina and Tennessee, argue competing. promote alternatives to the Play Store the unit along with several others July 22. on Android phones. that Google has generated “enormous Samsung declined to comment. and the off icial payment system for together generated $21.7bn in revenue The lawsuits come amid growing The allegations about Google’s Play profit margins” from the Play Store by The plaintiff s, which include California 20 years. last year, or about 12% of overall sales. antitrust scrutiny of big tech Store stem from an investigation engaging in illegal tactics to preserve and the District of Columbia, also In addition, the states seek to stop Google’s worries about Samsung companies, but regulators suff ered involving nearly every US state monopolies in selling Android apps say Google has unlawfully mandated Google’s payments to Samsung and grew after the South Korean company an early blow last week when a that began in September 2019 and and in-app goods. that some apps use the company’s developers. worked with video game maker Epic judge dismissed a Federal Trade have already resulted in three other In the United States, Google Play payment tools and give Google as The states said on Wednesday they Games Inc to exclusively launch Commission lawsuit against Facebook lawsuits against the company. accounts for 90% of Android apps much as 30% of digital goods sales. have not ruled out taking similar “Fortnite” for Android devices in 2018, Inc. The ruling should not aff ect the The cases threaten to force major downloaded, according to the lawsuit. The “extravagant commission,” action against Apple over its App according to the lawsuit. Play Store case because it covers changes to how it generates billions “Google leverages its monopoly compared with the 3% other Store. Epic’s bypassing of the Play Store diff erent circumstances, the states of dollars in revenue across its power with Android to unlawfully marketplaces charge, has forced app The filing drew praise from Meghan cost Google some millions of dollars suing Google said. Gulf Times Friday, July 9, 2021 3 BUSINESS

IMF technical help in Oman will Saudi’s AHAB nears end unlikely result in aid package of years long debt dispute Reuters “This is clearly in the best inter- Bloomberg Last year, Oman transferred the govern- Dubai est of creditors, it delivers a much ment’s oil and gas expenditures to Energy higher return than a hostile liqui- Development Oman, a newly established dation and I am confi dent credi- firm entitled to raise financing independ- fter more than 12 years of tors will see that and will give a The International Monetary Fund’s techni- ently of the Energy Ministry. back and forth between successful vote, and I am hoping cal assistance for Oman doesn’t come with That move, along with this year’s rebound Athe Algosaibi family’s con- we’ll start distributions later this conditions and isn’t going to lead to any in crude oil prices, are behind the govern- glomerate AHAB and its creditors, year,” Charlton said. financial assistance, its mission chief to the ment’s rapid fiscal turnaround; Oman’s one of Saudi Arabia’s largest debt Creditors have been pursuing Gulf country said. budget deficit ballooned to over 19% of disputes is set to fi nally reach a AHAB and Saad Group, a Saudi “The medium-term fiscal plan is not a plan economic output last year as a double blow resolution. conglomerate owned by tycoon with the IMF, it is the authorities’ own plan,” of pandemic closures and low oil prices hit A debt restructuring proposal Maan al-Sanea, since they de- Daniel Kanda told Bloomberg in an inter- finances but is expected to narrow to 2.4% was submitted to the Dammam faulted on about $22bn in com- view late Wednesday. “It was pretty much of gross domestic product this year. commercial court this week after bined debt in 2009. completed by the time we got into the Oman’s central government balance is approval from a creditor com- The Algosaibis and Sanea – who picture, it’s not something that was jointly expected to move into surplus next year, mittee, Simon Charlton, chief re- married into the Algosaibi family developed.” depending on the course of oil prices, ac- structuring offi cer and acting chief – have been locked in a bitter dis- Struggling with the aftermath of lower oil cording to Kanda. The economy is projected executive of AHAB told Reuters pute over who was to blame for the prices and Covid-19, Oman has been seek- grow 2.5% this year, an upward revision from yesterday. 2009 collapse of the companies. ing ways to tame its budget shortfall and the 1.8% previously forecast, while non-oil The proposal would see credi- AHAB’s creditor committee in- diversify the economy as crude reserves growth, which the fund wants to help Oman tors receive 7.25bn riyals ($1.93bn) cludes local, regional, and inter- dwindle. As part of an ambitious economic The IMF said this week that the sultanate Oman’s reliance on international borrowing. accelerate, is set to reach 4% in 2026. in settlements, corresponding national banks. About one third of overhaul, it’s cut public spending, slashed had also asked for technical assistance to The government has sped up privatisa- “Wherever possible, each company will be to about 26% of total approved its debt has been traded for years government jobs and implemented a value- develop a program that would help it elimi- tion of government-owned assets to help assessed on whether it properly belongs in debt claims worth 27.5bn riyals by banks’ trading desks and hedge added tax. It also plans to introduce an nate its budget deficit over the medium reduce its expenditures and budget gap. the public sector or should be privatised,” ($7.33bn), he said. funds, Charlton said. income tax – unheard of in the oil-exporting term by diversifying the economy and It’s reportedly looking at options for state Kanda said. “Many of these companies will A bankruptcy judge is expected Of the 7.25bn riyals in settle- Gulf region – which Kanda said would be reducing the government’s reliance on hy- energy company OQ SAOC, including a ultimately find themselves partially or fully to indicate within 60 days a date ments, 5.2bn riyals will come from implemented in the second half of 2022. drocarbons. The plan is aimed at reducing potential initial public off ering. privatised.” for a creditor vote, and distribu- company assets and about 2bn riy- tions could follow soon. als from the owners. Friday, July 9, 2021 GULF TIMES BUSINESS Why the Opec+ crisis has sparked an oil price frenzy

By Grant Smith of the UAE and seat of most of its oil production, says the volumes to ensure the viability of a recently-launched of US President Joe Biden has reached out to the main quota is outdated and unfair. regional price benchmark, Murban. players and urged them to reconcile. Typically, disputes 2. What has the pandemic done to Opec+? 4. What does it mean for gasoline prices? at Opec+ are resolved with some creative accounting and A year after rescuing the global oil industry from the a diplomatic fudge that allows the opposing sides to save ravages of the pandemic, the Opec+ alliance has been In March 2020, Opec+ was plunged into a brutal price war US oil futures rallied to a six-year high of almost $77 a face. thrown again into disarray. The group of crude producers as group leaders Saudi Arabia and Russia clashed over barrel on July 6 before retreating again, as traders fear the 6. Is this the beginning of the end for the has split at its core, after a bitter feud flared up between whether the pandemic necessitated fresh production impasse may prevent Opec+ from filling a looming supply group? long-standing allies Saudi Arabia and the United Arab Emir- cuts. As lockdowns sent the oil market crashing, the group shortfall. With the holiday driving season under way in ates over how quotas should be calculated. Prices have reached a truce and agreed the biggest output curbs the northern hemisphere, global oil markets are forecast Opec’s obituary has been written numerous times over swung as their standoff threatens to deprive markets of the in history: roughly 10mn barrels a day, or 10% of world to tighten sharply in coming months. That could push the past few decades, only for the organisation to rise up supplies needed to feed the world’s economic recovery. If supplies. But while the pandemic provoked a fight in Opec+ gasoline prices – already above the sensitive threshold again. The Opec+ alliance it formed with non-members the deadlock remains unresolved, it could have profound last year as demand slumped, it’s now sparking another as of $3 a gallon in the US – even higher. Yet markets have had seemed irretrievably broken when the 2020 price war consequences for the balance of power in the Middle East consumption returns. remained volatile amid the Opec+ spat as traders weigh erupted, yet it too is still standing. While the UAE made and energy companies around the globe. 3. Why is Saudi Arabia’s ally objecting? another option: that the dispute could ultimately fracture veiled threats last year about quitting Opec, analysts widely 1. What is Opec+ fi ghting about? the coalition and usher in a new price war. expect this latest confrontation will be resolved in the Abu Dhabi believes the agreement that Opec+ hastily 5. How could the stalemate be resolved? coming weeks. But it could foreshadow future conflicts that The Organisation of the Petroleum Exporting Countries and struck in April 2020 has an unsustainable inequity. While eventually test the alliance to breaking point. The UAE’s its partners have been gradually restoring to the market the production baselines used to measure each country’s Opec+ delegates say that consultations are going on urge to deploy its new production capacity quickly may vast quantities of crude they halted when the coronavirus required cuts were updated for Saudi Arabia and Russia, behind the scenes to bridge the divide after talks failed reflect concern that time is running out for fossil fuels, as crushed fuel demand in 2020. Its plans to revive the barrels the other 21 nations were stuck with levels set in 2018. dramatically on July 5, but so far they’ve yet to yield results. the world transitions to low-carbon energy. If the switch to that remain off line have run into a snag: the UAE will only That’s an acute problem for the UAE, which has invested Ultimately, leaders in Riyadh and Abu Dhabi will need electric vehicles and renewable energy brings global oil approve Saudi proposals to phase in the restart to the end of billions of dollars in new production capacity and is keen to to try and find a compromise. That could be expedited demand to a plateau, Opec+ nations may decide to break 2022 if its individual target is recalculated. Abu Dhabi, capital make use of it. The country also needs to pump suff icient by pressure from key consumers: the administration from the alliance and pump all they can.

Norway’s Telenor quits Myanmar over coup

European Central Bank AFP economy, from mining to bank- Oslo ing, oil and tourism. NGOs have urged foreign com- panies to review their presence Norwegian telecoms group Tel- in Myanmar. enor said yesterday it is selling its M1 Group is a holding company subsidiary in Myanmar, where it founded by former Lebanese adds its clout to is one of the major operators, as prime minister Najib Azmi Mikati a result of the military coup there. and his brother. It holds a major While the agreement to sell stake in the MTN mobile opera- Telenor Myanmar to M1 Group tor that is a leader in Africa but for $105mn will ensure contin- which is also active in Asia. ued operations of its fixed and M1 is also on the blacklist estab- wireless networks, analysts lished by Burma Campaign UK, climate change battle expressed concern it might not which monitors the business ties bode well for freedom to use of international firms with the Reuters ECB itself and the national cen- social networks. Myanmar military. Frankfurt tral banks of the 19-member “The situation in Myanmar has According to a 2019 report euro area. over the past months become conducted by an international “My fi rst reading of how the increasingly challenging for independent fact-finding mis- he European Central Bank ECB wants to include climate Telenor for people security, sion presented the UN Human unveiled plans yesterday change considerations: reason- regulatory and compliance Rights Council on the economic Tto take greater account of able and measured. reasons,” Telenor chief executive interests of Myanmar’s military, climate change in its core policy It’s mostly about better in- Sigve Brekke was quoted as say- the M1 Group has a stake in decisions, the latest in a series of formation and disclosure as well ing in a statement announcing a company that rents mobile steps by the world’s biggest cen- as taking into account climate the divestment. phone towers to the MEC, an tral banks acknowledging their risks,” Guntram Wolff , econo- “We have evaluated all options army-owned firm that owns the role on the issue. mist and director at Brussels and believe a sale of the compa- Mytel mobile network. The move by Europe’s most based think tank Bruegel, wrote ny is the best possible solution Htwe Htwe Thein, a professor powerful fi nancial author- on Twitter. in this situation,” he said. of international business at ity came before the launch next Central banks diff er on how Telenor has had a commercial Curtin University in Australia, week of a package of new car- deeply they should be involved presence in Myanmar since 2014 expressed concern about the bon-cutting measures by the in broader climate change policy. and employs a workforce of impact of the sale on data se- European Union as it strives to While Japan’s central bank around 750 in the country. curity and privacy for Burmese lead the world in greening the remains reticent about buying Telenor was pushed deep into using social networks if the new economy. green bonds, it has announced the red in the first quarter after owner is more compliant with ECB president Christine La- it will provide funds to fi nancial it was forced to write down all authorities. garde, who has spoken passion- institutions that boost loans and of its assets in Myanmar, taking “End of story for the people of ately about the need for climate investment for activities aimed their value from 6.5bn kroner Myanmar who are hugely reliant action and shared stages with at combating climate change. ($769mn) to zero. on social media to send the green campaigners such as Dav- The People’s Bank of China But the operator was highly messages out, to promote their id Attenborough, has made it a has said it increased the share profitable, however, with Telenor cause,” she said in comments priority of her term to establish of green bonds in its foreign saying the subsidiary had paid e-mailed to AFP. the bank’s role in the fi eld. exchange reserve investments 3.2bn in dividends since 2017. The junta has at times com- Setting out interventions that while controlling investments in Myanmar has been rocked by pletely blocked Internet access will make it substantially more A view of the European Central Bank in Frankfurt. Setting out interventions that will make it substantially high-pollution assets. massive protests and a brutal or certain social networks being forward-leaning on climate than more forward-leaning on climate than the US Federal Reserve, the ECB said climate change would be Its green bond rules ban fund- military response since the Feb- used to organise opposition. the US Federal Reserve, the ECB a factor in policy related to the disclosure of financial information, risk assessment, collateral and its ing for coal-related projects. ruary coup that ousted civilian “At a broader level, the exit of said climate change would be corporate sector asset purchases. Bank of England chief Andrew leader Aung San Suu Kyi and her Telenor has proven it is not pos- a factor in policy related to the Bailey said his bank was explor- government. sible to continue doing business disclosure of fi nancial informa- in a statement. The EU has set climate change policy was to be nounced yesterday included: ing ways to green its monetary More than 880 civilians have in Myanmar under the military tion, risk assessment, collateral itself a target of cutting net led by elected governments and – development of new mod- policy portfolio after a disclo- been killed in a crackdown by without breaking their commit- and its corporate sector asset emissions by 55% by 2030 in an parliaments, she said the ECB els and analyses to monitor the sure report last year showed the State Administration Council ment to human rights policies,” purchases. eff ort to limit global warming had a duty to act because of the implications of climate change the carbon footprint of its asset – as the junta calls itself – and al- Thein added. “Looking ahead, the ECB will to well below 2 degrees Celsius risks to fi nancial stability posed and related policies – develop- holdings were consistent with a most 6,500 arrested, according She noted that companies that adjust the framework guiding above pre-industrial levels, as by climate change disruption ment of new indicators, covering rise of as much as 3.5-4 degrees to a local monitoring group. remain, like energy companies the allocation of corporate bond set out in the landmark 2015 and the huge upheavals that will green fi nancial instruments and by 2100. “Further deterioration of the Chevron and TotalEnergies, purchases to incorporate climate Paris Agreement. be needed to put the economy on the carbon footprint of fi nan- With Republican lawmakers situation and recent develop- face a dilemma as by remaining change criteria, in line with its “Other central banks are go- a sustainable footing. cial institutions, as well as their breathing down its neck, the US ments in Myanmar form the they fill the tax coff ers of the mandate,” it said. ing to be reading this and think- “It’s not just words,” she told a exposures to climate-related Fed is among the most reticent. basis for the decision to divest junta but their departure could “These will include the align- ing hard about how they can news conference.”It’s a commit- risks – a detailed plan from next While it has begun conduct- the company,” said Telenor. worsen the human rights situa- ment of issuers with, at a mini- show a similar commitment to ment of the entire (ECB) gov- year to require climate change- ing more research on the eco- The sale is subject to regulator tion further. mum, EU legislation imple- greening monetary policy,” said erning council,” she said of the related disclosures for eligibility nomic implications of climate approval by the authorities in Telenor shares were 0.3% higher menting the Paris agreement Paul Diggle, deputy chief econ- forum composed of the heads of as collateral and asset purchases. change, Fed chair Jerome Powell Myanmar. in afternoon trading in Oslo, through climate change-related omist of Aberdeen Standard In- the national central banks of the – climate stress tests in 2022 insists it is a matter for govern- The junta has vested interests lagging the overall market which metrics or commitments of the vestments. 19-member eurozone. of the balance sheet of the Eu- ment and not something that in swathes of the country’s was up 1.0%. issuers to such goals,” it added While Lagarde stressed that Other ECB decisions an- rosystem, which comprises the relates to monetary policy.

Goldman buys stake in specialist energy trader InCommodities

Bloomberg that automates the value chain of data analytics, deci- New York sion making algorithms, execution and settlement.” Danske Commodities A/S was the first specialist trading company that emerged from Aarhus, back Goldman Sachs Group Inc bought a minority stake in 2004. It was snapped up by Norwegian energy in Denmark’s InCommodities AS to tap into the firm’s major Equinor ASA in a €400mn ($T472mn) deal. specialist knowledge of short-term power and gas MFT Energy A/S, another trader that’s also expanded trading. to Istanbul, Athens and Singapore, is on track for an The deal, still subject to regulatory approval, is initial public off ering in 2023. expected to close in the next couple of months, said “We see it as something absolutely positive for our en- Jesper Severin Johanson, chief executive off icer of tire industry that a heavy player like Goldman Sachs is the Aarhus-based company founded four years ago. buying into InCommodities,” said Bo Palmgren, chief While the companies declined to provide financial operating off icer at MFT Energy. “It only strengthens details or the size of Goldman’s stake, Danish paper our own ambition for global growth and an IPO within Jyllands-Posten said the investment was worth just a few more years.” under 100mn Danish Kroner ($16mn). InCommodities was founded by Johanson, Emil Ger- InCommodities is one of the rapidly growing trading hardt, Jeppe Hojgaard and Christian Bach. They will all companies founded in Denmark’s second-largest remain at the company, Johanson said. It will remain city in the last decade that seeks to profit from how independent and there will be no day-to-day coopera- the renewable energy revolution has changed the tion with Goldman, which has also traded European energy markets. Through the firms’ relatively early power and gas from its London headquarter for many understanding of the importance of eff icient data years. crunching, the city has become Europe’s hub for Goldman “is joining as a strategic and active investor, short-term trading. and will be involved in the board of directors as well,” “As the installed capacity of weather dependent he said. renewables grows, electricity markets are becom- InCommodities will continue to focus on expanding ing increasingly complex,” said Ed Emerson, head of its technology and its trading in the electricity, natural global commodities trading at Goldman. gas and emissions markets, moving into new regions “Technology and big data play an important role in when there is scope for it, Johanson said. It’s currently managing associated risks. InCommodities has built active in Europe as well as North America, while Asia and invested heavily in an energy trading platform is becoming more interesting too, he said.