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Monday, February 27, 2017 Jumada I 30, 1438 AH OUTSTANDING FEATS: Page 16 Al Khaliji GULF TIMES named Qatar’s ‘Fastest growing BUSINESS private bank’ QIIB-CIH JV bank named

‘Umnia’; capital raised to Sheikh Faisal: Vote of confidence. Ahlibank 600mn Moroccan dirhams completes he joint venture Islamic bank that has been set up by QIIB and Crédit immo- 5-year bond Tbilier et hotelier (CIH) in Morocco will be named ‘Umnia Bank’. It was announced following an ordinary and extraordinary general assembly of the new bank in Casa- issue raising blanca yesterday. It was also decided to increase Umnia’s capital to 600mn Moroccan dirhams. $500mn The meeting was presided over by QIIB chairman and managing director Sheikh Dr Khalid bin Thani bin Abdullah al-Thani. Ahlibank has completed a new $500mn Ahmed Rahhou, CEO, CIH Bank and Ab- fundraising under its $1.5bn EMTN programme in dulbasit Ahmad al-Shaibei, CEO, QIIB were the international debt capital markets. among those present. The 5-year bond carries a coupon rate of 3.5% Sheikh Dr Khalid said, “We are closer to and was significantly oversubscribed despite formally launching the activities of Umnia challenging financial markets and increased market Bank. We are very happy to reach this stage, supply. and are hopeful that our new venture will be This new bond issue has been assigned an ‘A2’ extremely successful.” credit rating with a stable outlook by Moody’s. He said the licence for the new JV bank Ahlibank chairman and managing director Sheikh had already been issued by the Central Bank Faisal bin AbdulAziz bin Jassem al-Thani said, “We of Morocco. are delighted to have successfully completed our “Ours was the fi rst licence to be issued in a second fundraising, which we see as a continued set of applications for the new Islamic bank international vote of confidence in both Qatar and in Morocco. Our application was very strong our bank, by a range of institutional investors in and so are our credentials. We now look to be the Middle East, Asia and Europe. More than 170 the best Islamic bank in Morocco,” Sheikh Dr leading institutions participated in the fundraising Khalid said. which was four times oversubscribed. We had great He said the Moroccan economy remained support from our joint lead manager/bookrunner “very good” and for this reason “it is a good banks namely Bank ABC, Barclays, HSBC, Mizuho, opportunity for us.” QNB Capital and Standard Chartered Bank.” “We are determined to contribute to the Ahlibank chief executive off icer Salah Murad said, Moroccan economy and with a professional Sheikh Dr Khalid, al-Shaibei and Rahhou among others during the ordinary and extraordinary general assembly of Umnia Bank in “The response to our fundraising after a highly team and approach we will do it,” Sheikh Dr Casablanca yesterday. successful roadshow in the Middle East, Asia and Khalid added. Europe has been overwhelming and we have met The joint venture in Morocco will be In an earlier interview with Gulf Times, al- provide us a gateway to this huge market in non-conventional banking. A lot of peo- our objective to diversify our funding base and among those pioneering Shariah-compliant Shaibei had said he expected Morocco to be and the kingdom has good relationship ple are now outside the system because they increase our visibility in these regions. Islamic banking in the kingdom. a “launch pad” for QIIB and its joint venture with the countries in North Africa,” he can’t do business with conventional banks “The healthy geographic split of investors resulted In 2015, QIIB had signed a joint venture bank in the kingdom. said. for religious reasons; they have a clear alter- in the Middle East taking a 34% share, Asia 33%, agreement with Morocco’s CIH Bank for the “We believe Morocco will be our gate- Al-Shaibei said with the entry of Islamic native now. This will add a lot of value to the Europe 31% and others 2%. We have further establishment of a bank in the kingdom. This way to North Africa. “There is a huge mar- banks, more channels would be opened in Moroccan economy”. improved the stability of our funding structure step followed a detailed feasibility study that ket waiting to be tapped in North Africa, Morocco. Al-Shaibei also emphasised that the new as well as positioning ourselves with both Basel was conducted by QIIB taking into consider- which is in need of Shariah-based, value- “There will be new channels for gov- JV bank in Morocco was not in competition III requirements and equipping our bank with the ation all factors such as the expected returns driven banking. In Morocco, people are ernment sukuk…even semi-government with conventional banks. “Purely, we have a necessary tools to achieve controlled growth.” on investment and other market factors. looking for Islamic banking. Morocco can projects will be able to tap this new market complementary role to play,” he said.

Qatar Airways Cargo receives ‘Global Cargo Airline of the Year’ award Milaha posts net profi t

Qatar Airways Cargo received the ‘Global Cargo Airline of the Year’ award at a grand gala held last week in Johan- nesburg, as part of Africa’s biennial air freight industry of QR711mn in 2016 trade exhibition and conference, “Air Cargo Africa,” that took place recently. The award is a significant recognition of Qatar Airways ilaha has reported a net profi t of Cargo’s success. The cargo carrier was voted the ‘Global QR711mn on operating revenue Cargo Airline of the Year’ award by STAT Times readers Mof QR2.55bn, translating into via online voting prior to the awards announcement. earnings-per-share of QR6.26 in 2016. Qatar Airways Cargo made the cut with the highest The company has recommended 35% reader votes among the top five nominees in this award cash dividend to be approved by share- category. holders at an annual general assembly On the achievement, Qatar Airways chief off icer (cargo) meeting to be held later. Ulrich Ogiermann said, “The ‘Three Rs’ approach – which “2016 was a profi table year for Milaha stands for rates, reliability and relationship – is at the very Nicholas Danton, Qatar Airways regional cargo despite the challenging business envi- heart of our business. We are thankful to our customers manager for Africa (left) receives the award and ronment. Our strong balance sheet and who place their trust in our brand and services. Having certificate from Glyn Hughes, IATA global head formidable asset portfolio will allow us started off with three freighters in 2003, we have come (cargo). to continue executing our long-term a long way to reach the No 3 position on IATA’s interna- growth strategy and expanding our pres- tional FTK (freight tonne kilometres) ranking today. This encourages customers to manage their bookings and ence in Qatar and beyond,” Sheikh Ali bin award goes out to each and every employee at Qatar businesses online with Qatar Airways Cargo. Jassim al-Thani, Milaha chairman said. Airways Cargo, who strives to ensure we live up to our The state-of-the-art hub at the Hamad International Milaha Maritime and Logistics’ net ‘customer first and service excellence’ motto.” Airport (HIA) in Doha that opened in 2014 has a capacity profi t was QR144mn in 2016 compared to Sheikh Ali and al-Mannai: Long-term growth strategy. “Congratulations to Qatar Airways Cargo on this well-de- to handle 1.4mn tonnes of cargo annually. The 292,000 QR264mn a year-ago, mainly as a result served win. This victory is testimony to the cargo carrier’s square metres cargo complex has separate areas for of lower revenue from its port services Milaha Off shore recorded a net loss of in 2016 against QR24mn in the previous continuous drive and emphasis on delivering the highest pharmaceuticals, perishables, dangerous goods, and unit, which was aff ected by a drop in stor- QR115mn in 2016 compared to a net profi t year because of a “signifi cantly” weaker levels of service within the air cargo industry,” said RK valuables; it also includes a 4,200 square metres live age and general/bulk cargo revenue, and of QR93mn for 2015, mainly due to one- market for commercial trucks and heavy Patra, chairman and founder of STAT Media Group. animal facility. rate pressure in container shipping unit, time impairments of QR161mn. equipment, which in turn was due to a Qatar Airways Cargo has invested substantially in The airline is currently planning the construction of a which still managed to grow its market Operationally, reduced exploration slowdown in new construction projects automating its systems and processes with the rollout second, even larger cargo terminal in Doha. The new share and volumes. and production spending by both in- in Qatar during 2016. of its Cargo Reservations, Operations, Accounting and 110,000 square metres double-decker facility has the Milaha Gas and Petrochem’s net profi t ternational and national oil companies “Despite the multiple macroeconomic Management Information System (CROAMIS) to enhance capacity to handle 3mn tonnes of cargo a year, increasing was QR415mn in 2016 against QR457mn contributed to a historically-depressed and sector-specifi c challenges we faced eff iciency in its end-to-end business processes. the combined annual capacity to 4.4mn tonnes. the previous year, mainly due to a slump market environment, its spokesman said. in 2016, operationally, we had an even The carrier also launched its first mobile app, QR Cargo, The new terminal plan underlines Qatar Airways Cargo’s in both tanker and gas carrier charter Milaha Capital’s net profi t for 2016 better year as we entered new markets, which is linked to CROAMIS, to provide ease and conven- commitment to continued growth and expansion for the rates. The decline was partially off set inched up 1% higher than the profi t re- enhanced and increased our service of- ience to its global customers, enabling instant access to future, positioning the cargo carrier into another league by the full-year impact of increasing its ported in 2015, with both its fi nancial in- ferings across several sectors, and added real-time data and updates for each logistic milestone through the enhancement of service quality already of- ownership in two liquefi ed natural gas vestments as well as its real estate arms new assets to our portfolio,” according achieved. The introduction of web-based online services fered at the existing state-of-the-art facility. carriers – Milaha Ras Laff an and Milaha holding steady in a volatile year. to Abdulrahman Essa al-Mannai, Milaha Qatar – from 40% to 100% in 2015. Milaha Trading’s net profi t was QR8mn president and chief executive. Gulf Times 2 Monday, February 27, 2017 BUSINESS These are all ways an Aramco IPO could impact markets

Share off ering to send wave make waves in markets from Tokyo to would crown it as the biggest listing have mentioned the possibility of listing be about 2.8% based on the Tadawul more than $200bn since August 2014 across assets from oil to forwards; Toronto. ever but also mean absorption of the in London, New York, Tokyo or Toronto. currently. The inclusion of the oil-giant to $528bn at the end of December, as kingdom’s state crude producer is Aramco’s “partial privatisation will bring whole deal on the local exchange would Stock indexes would lead to passive inflows of $6.6bn the kingdom used savings to shore up largest company in world much attention on Saudi Arabia,” said be near impossible. from MSCI trackers, and $2.5bn from public finances. Michael Bolliger, the Zurich-based head Throw in the shortage of foreign The largest IPO in history will have an FTSE investors, al-Hajj estimated. Raising $17.5bn in its debut sovereign Bloomberg of emerging-market asset allocation participation in the Tadawul – overseas impact even beyond where it’s listed, Oil prices bond sale helped cut the one-year Dubai at UBS Wealth Management, which investors account for about 4% of rippling through the benchmark stock forwards to the lowest level in 18 has clients worth $2.1tn. “As part of a ownership – and Saudi Arabia has little gauges tracked by investors globally. Saudi Arabia, the world’s largest oil months; expect the influx of Aramco broader privatisation programme of choice but to share the Aramco listing Saudi Arabia expects MSCI Emerging exporter, told Opec earlier this month cash to deter further bets against the The exact dollar value of Saudi state-owned companies, it reinforces with at least one international partner. Markets Index inclusion in the near that it cut crude production by the most fix. Aramco may be up for debate, but the the message that the kingdom’s Singapore, the biggest oil-trading future, the exchange’s chief executive in more than eight years. The key to Interbank lending listing of the world’s biggest company strategy is to develop a domestic centre in Asia, is so keen to host the off icer said on Sunday. Aramco’s IPO price – and the success of will be priceless for the kingdom’s capital market and gradually open it up listing that it is considering inviting Assuming a 5% float, Aramco alone its off ering – will be the value of crude. Aramco’s listing could also filter into markets. to international investors.” one of its state investment companies would account for about 2.4% of the Even with the global shift to cleaner the kingdom’s financial system. The The highly-anticipated share sale Here’s a look at how Aramco’s listing to become a cornerstone investor in gauge, according to estimates by fuels, oil is expected to continue three-month Saudi Interbank Off ered has become emblematic of Saudi may impact markets. the initial public off ering, according to Mohamad al-Hajj, a Dubai-based equity providing about a third of world energy Rate, used by lenders to price loans and Arabia’s push to transform its Stock markets people familiar with the matter. The strategist for the Middle East and for the next two decades. a key gauge of stress, climbed to the economy and open its doors to more country is also looking at cooperating North Africa at EFG-Hermes Holding. Currencies highest since the global financial crisis foreign capital. Whatever you think Saudi Arabia’s domestic stock with the Saudi government on future That would be enough to propel it into in October. of the valuations involved – be it exchange, known as the Tadawul, investments, they said. the top five companies by weighting Forward contracts for the Saudi Following the country’s bond sale – a the $2tn once suggested by Crown has a total market capitalisation of Aramco off icials have also received alongside Samsung Electronics Co and riyal have emerged as the place to record for an emerging-market nation Prince Mohammed bin Salman or the about $440bn, making it the largest pitches on a potential Hong Kong Alibaba Group Holding Ltd. bet against the country’s more than – it has been declining. Aramco’s share $400bn estimate said to have been in the Middle East. A sale of just 5% of listing, which could come with anchor Aramco’s listing would almost double three-decades old peg to the US dollar. sale is likely to flood the kingdom’s made by consultant Wood Mackenzie Aramco could raise more than $100bn, investments from deep-pocketed Saudi Arabia’s presence in the Foreign reserves held by the Saudi banks with liquidity, further depressing Ltd – the offering has the potential to according to some estimates. That Chinese funds. Executives at Aramco benchmark measure, which would Arabia Monetary Agency have dropped the measure known as Saibor. Gulf Times Monday, February 27, 2017 3 BUSINESS Mena sovereign borrowing set to ‘fall by 20% to $136bn’

By Santhosh V Perumal “We project that the 13 Mena net borrowing requirement of set to rise to 14% of total debt as in 2016), fuelled by Saudi Arabia’s Qatar, Bahrain, and Oman large- banking systems, a phenomenon Business Reporter sovereigns we rate will borrow $108bn, it said. of 2017-end, from 13% in 2016. large government borrowing re- ly focused on debt issuance rath- that is relatively new for the re- an equivalent of $136bn from Consequently, S&P projects “We expect that outstanding quirement. No Mena sovereigns er than asset drawdowns, while gion, it said. long-term commercial sources that the Mena sovereigns’ com- short-term commercial debt are in the ‘AAA’ category. Abu Dhabi, Kuwait, and Saudi Highlighting that Saudi Ara- he Middle East and North in 2017. This represents a 20% mercial debt stock would reach (debt with an original maturity S&P said the GCC sover- Arabia are likely to have more of bia issued $17.5bn in Eurobonds African (Mena) sovereign decline (of $34bn) in long-term $720bn by this year end, a 19% of less than one year) will reach eign gross commercial long- a split between issuing debt and in October 2016, to date the Tlong-term commercial commercial debt issuance,” S&P increase over 2016. Adding bi- $106bn at year-end 2017,” it said. term borrowing is expected liquidating part of their assets to largest bond sale by an emerg- borrowing is set to be lower by said in a report. lateral and multilateral debt, the For 2017, the commercial sov- to be $75bn this year, down fund their central government ing economy, S&P said it expects 20% to $136bn this year with the In 2017, $28bn (about 20%) total stock is expected to reach ereign debt stock under ‘AA’ cat- from $105bn in 2016, which defi cits,” it said. Saudi Arabia to remain the larg- Gulf Cooperation Council (GCC) of the regional sovereigns’ gross $821bn, a year-on-year increase egory (Abu Dhabi, Kuwait, and saw a sharp increase from 2015 Most GCC countries tapped est Mena borrower in 2017, with engaged in fi scal consolidation, borrowing would be used to re- of $135bn, or 20%. Qatar) is expected to be 16% of the ($43bn). the global debt markets in 2015 $37bn in gross commercial long- according to Standard & Poor’s fi nance maturing long-term The share of noncommercial total (8% in 2016), while that of ‘A’ “Some clarity has emerged re- and 2016 to diversify their fund- term borrowing, albeit at a slow- (S&P), a global credit rating debt, compared with $24bn in offi cial debt (bilateral and multi- (Ras Al Khaimah and Saudi Ara- garding the GCC governments’ ing sources and reduce liquid- er pace of debt issuance (-36%) agency. 2016, resulting in an estimated lateral) in total sovereign debt is bia) debt would rise to 17% (9% defi cit fi nancing strategies, with ity pressures in their domestic compared with 2016.

Evercore said to plan Dubai office amid Investors seen wary of returning Saudi Aramco IPO talks

Bloomberg despite raft of reforms in Egypt New York

AFP Evercore Partners, the invest- Cairo ment bank founded by Roger Altman, is planning to open an off ice in Dubai as it seeks new gypt is pursuing a raft of reforms business in the region, including to try to revive an economy weak- a role on Saudi Arabian Oil Co’s Eened by years of turmoil, but ana- initial public off ering, accord- lysts say that wooing foreign investors ing to people familiar with the will take time. matter. Since the 2011 uprising, the Arab Evercore is in discussions to world’s most populous nation has suf- become a financial adviser fered a slump in key tourism revenues, to the state-owned oil giant, slowing economic growth and invest- known as Aramco, after rival ment, double-digit infl ation and falling Moelis & Co was hired for the foreign currency reserves. listing, said the people, who In November the International Mon- asked not to be identified etary Fund approved a $12bn loan for because the talks are private. Egypt after the government commit- Altman’s firm is in talks with ted to reforms including fl oating the bankers from competitors to Egyptian pound, which subsequently staff the new Dubai office, plunged against the US dollar. which it plans to open this The authorities also pledged a new year, the people said. investment law with tax incentives, a Evercore will start with a “one-stop-shop” to simplify invest- small team based in the Dubai ment procedures and a new bankruptcy International Financial Centre law. where many of its competitors “Egypt’s economic recovery will are based, the people said. A come with a lag, until the government representative for Evercore follows through on reform policies with declined to comment on the of- a successful implementation,” said fice plans or the bank’s potential Hany Farahat, a senior economist at the role on the Aramco IPO. Aramco Egyptian investment bank CI Capital. declined to comment. The authorities have also introduced The investment bank is expand- a value-added tax and cut fuel subsi- ing globally and last year hired dies, moves the IMF said were required Goldman Sachs Group veteran to fi x government fi nances and boost John Weinberg, who has said investor confi dence. one of his top priorities is to “Everyone is expecting 2017 to be recruit new talent. A role on a diffi cult year,” said Walid Allam, the the Aramco IPO, potentially the chief fi nancial offi cer in Egypt for Swiss biggest listing ever, would be elevator manufacturer Schindler. “But a coup for the New York-based we expect that starting in 2018 there boutique, which is making a will be a bit of a revival,” he told AFP. push into the Middle East in “We are talking about a state, not a anticipation of a surge in deals company that would take a decision in the region, two of the people and profi t from it after a week or two.” said. Foreign direct investment in Egypt A tourist parasails over the sea in the Red Sea resort of Sharm el-Sheikh in this photo dated November 7, 2015. Egypt’s tourism sector is reeling from years of upheaval Evercore ranks 11th among has fallen from a peak of $13.2bn in and a series of militant attacks including the 2015 bombing of a Russian airliner carrying holidaymakers home from Sharm el-Sheikh. merger and acquisition advis- the fi scal year ending in June 2008, to ers for deals announced in the $6.8bn in the year ending in June 2016. Investors will need time to see the A key part of the government’s ef- to be resolved. “Investors have always clogged, slow courts, as well as secu- last 12 months, according to The tourism sector in particular is government’s commitment to reforms forts should be directed to improve the suff ered obstacles in procedures, cor- rity and political conditions,” he wrote data compiled by Bloomberg. reeling from years of upheaval and a if the business climate is overhauled, business climate and reduce bureauc- ruption, and bureaucracy. in an article for the Ahram Online news The company’s shares have series of militant attacks including the he said. racy for small and medium enterprises Reforming these issues will take website. rallied recently, gaining 27% 2015 bombing of a Russian airliner car- One of the challenges for Egypt is to and not just foreign investors, he said. some time,” she added. Despite the remaining challenges, in 2016 and about 17% this rying holidaymakers home from the diversify its sources of foreign curren- This would help boost local indus- The former chairman of the Gener- there are signs that investors are re- year. popular Red Sea resort of Sharm el- cy, said political economist Amr Adly, tries including agriculture and manu- al Authority for Investment, Ziad Ba- sponding positively to the reforms. Deputy Crown Prince Moham- Sheikh. nonresident scholar at the Carnegie facturing, he said. haa-Eldin, said that fixing “genuine In January, Egypt sold $4bn of med bin Salman, who is lead- Even before the tumultuous 2011 up- Middle East Center. Potential investors are keen to see barriers” to investment would have a dollar-denominated bonds on inter- ing the IPO as part of a plan to rising that ousted longtime president This is particularly important as the additional structural reforms before bigger impact than a new investment national markets, almost double its reduce the Saudi economy’s Hosni Mubarak, Egypt’s economy was main sources now – workers’ remit- committing to long-term investments, law. initial target.“Every time I attend a reliance on hydrocarbons, suff ering from decades of structural tances, crude oil exports, the Suez Ca- said Esraa Ahmed, an economist with These include “the state’s unclear discussion one can sense that offi cials has said the Aramco offering problems and delayed reforms, said nal and tourism – “proved to be very Mubasher. economic and social vision, its com- are aware of everything they should be could value the business at Ahmed Abdelnaby, a strategist at Mu- volatile and cannot be depended on,” She thinks that more than half of the petition with the private sector in all doing,” said an offi cial at a multina- more than $2tn. basher Financial Services. said Adly. problems facing investors still need fi elds, the spread of corruption, and tional company. QSE edges higher as selling pressure eases Gulf bourses move little, By Santhosh V Perumal Al Rayan Islamic Index shrank 0.13% to perceptibly to QR0.75mn against Business Reporter 4,181.17 points. QR3.36mn the previous trading day. The telecom sector saw its index soar Total trade volume fell 39% to 6.91mn 1.96%, followed by banks and financial shares, value by 34% to QR299.76mn and Buying support from domestic institutions services (0.63%), industrials (0.44%) and deals by 43% to 3,314. but new listings surge on and non-Qatari individual investors helped insurance (0.31%); whereas transport There was an 88% plunge in the transport Qatar Stock Exchange gain 12 points shrank 2.72%, consumer goods 1.06% and sector’s trade volume to 0.14 equities, yesterday. real estate fell 0.95%. 78% in value to QR8.62mn and 77% in The telecom, bank, industrials and Major gainers included Ooredoo, Qatari transactions to 117. insurance counters witnessed higher Investors Group, QNB, Qatar Insurance, The insurance sector’s trade volume Saudi secondary market than average demand to lift the Commercial Bank, Qatar Islamic Bank, plummeted 80% to 0.29mn stocks, value 20-stock Qatar Index 0.11% to 10,937.07 Masraf Al Rayan, Doha Bank Mazaya by 72% to QR20.55mn and deals by 50% points. Qatar, Dlala and Widam Food. to 203. Reuters They included retailer Abo 0.7%. Kuwait’s market was Weakened net selling pressure from local Nevertheless, losers were Industries The market witnessed a 62% shrinkage Dubai Moati Stationaries, restaurant closed for a national holiday. retail investors also helped the market, Qatar, Medicare Group, Barwa, Ezdan, in the consumer goods sector’s trade operator Raydan Cuisines and In Egypt, the index closed whose year-to-date gains were seen at Aamal Company, Milaha, Nakilat, Gulf volume to 0.59mm shares, 41% in value Al-Omran Industrial and Trad- 0.2% higher, coming well off its 4.79%. Warehousing and Vodafone. to QR46.64mn and 33% in transactions ulf stocks generally ing Co intra-day high. Islamic stocks however saw declines Domestic institutions turned net buyers to to 633. moved little in thin trade Dubai’s index rose 0.2% in the Palm Hills Development rose vis-à-vis gains in the other indices in the the tune of QR6.83mn compared with net The industrials sector’s trade volume Gyesterday but new listings lowest trading volume since De- 1.6% after local media said the market, where there was considerable sellers of QR31.37mn on February 23. tanked 41% to 0.79mn equities, value by surged on Saudi Arabia’s second- cember 21. company was obtaining a loan of weakening of buying interests of foreign Non-Qatari individual investors were also 25% to QR48.23mn and deals by 49% to ary market as that bourse, which DAMAC Properties, the de- 852mn Egyptian pounds ($54mn) institutions. net buyers to the extent of QR2.34mn 620. has less onerous listing require- veloper which earlier this month from the National Bank of Egypt Trade turnover and volumes were on against net sellers of QR4.31mn last The banks and financial services sector ments than the main Riyadh opened a Donald Trump-brand- and National Bank of Abu Dhabi; the decline in the bourse, where realty, Thursday. saw a 21% decline in trade volume to market, opened its doors for the ed golf course and residential the company subsequently said banking and telecom sectors together Local retail investors’ net profit-booking 1.74mn stocks, 7% in value to QR97.8mn first time. project in Dubai, added 1.4% to it was in talks with banks for accounted for about 74% of the total declined to QR26.68mn compared to and 34% in transactions to 920. The main Saudi index edged up 2.91 dirhams in unusually heavy such a loan but no agreement had volumes. QR44.22mn the previous trading day. The real estate’s trade volume shrank 8% 0.1%. trade. been signed. Market capitalisation rose QR81mn, or However, non-Qatari institutions’ net to 2.12mn shares; while value rose 13% to Real estate investment trusts, It rose above technical resist- But Arab Cotton Ginning 0.14%, to QR589.63bn as mid, micro and buying fell substantially to QR17.36mn QR63.06mn. Deals were down 20% to 675. which have been soaring since ance at the April 2016 peak of tumbled 8.0% as heavy prof- large cap equities gained 0.61%, 0.46% against QR76.87mn on February 23. However, the telecom sector reported a Al Jazira Maten REIT listed in 2.88 dirhams. it-taking in the stock contin- and 0.29% respectively, while small caps GCC (Gulf Cooperation Council) 1% rise in trade volume to 1.23mn equities mid-February, continued to rise The stock has surged from 2.17 ued, and Global Telecomn lost declined 1.26%. institutions’ net selling increased to but on a 60% fall in value to QR14.85mn in heavy trade; Al Jazira climbed dirhams at the time of the US 2.8%. The Total Return Index was up 0.11% to QR0.6mn compared to QR0.32mn last and 73% in transactions to 146. 9.8% and Riyad REIT gained 9.4%. presidential election in Novem- Elsewhere, Oman’s index fell 17,829.51 points and the All Share Index Thursday. In the debt market, there was no trading In the new Saudi Parallel Mar- ber. 0.3% to 5,834 points, while Bah- by 0.06% to 3,023.99 points, while the GCC retail investors’ net buying fell of treasury bills and government bonds. ket, all seven stocks jumped their Abu Dhabi’s index was 0.1% rain’s index edged up 0.1% to 20% daily limits. higher as First Gulf Bank gained 1,350 points. Gulf Times 4 Monday, February 27, 2017 BUSINESS

Old coal is king of DAX as investors look beyond writedowns

Bloomberg dividend to most shareholders brave new world where green priced in yet, Ahmed Farman, an of its shares this year. y com- Fund managers sold off utility Municipal shareholders that Dusseldorf for a second consecutive year energy gets most of the favours, analyst at Jeff eries International parison, Innogy gained 2.6% shares at the end of last year in own more than 20% of RWE are and another multibillion-euro RWE shifted its renewables, grid Ltd, said by phone from London. this year, while EON rose 7.5%. the aftermath of the presiden- “deeply disappointed” by the writedown on its conventional and retail arms into Innogy. The By contrast, Innogy and EON Enel, Europe’s biggest utility by tial election in the US to instead dividend suspension this year, WE AG, with some of its power plants, the Essen, Germa- proceeds of €2.64bn ($2.78bn) SE, which spun off its fossil-fuel market value which has bought focus on stocks more closely tied said Ernst Gerlach, a director at legacy coal plants dating ny-based company gained 12% was a welcome boost to its bal- business last year, have little ex- back its renewable subsidiary, to economic growth. European Verband der kommunalen RWE- Rback to the 1950s, is this this year. Reasons for the utility’s ance sheet - until last year sav- posure to the daily swings of en- dropped 5.4%. utilities had their worst month Aktionaere GmbH, which repre- year outperforming new green best start to the year since 2014 aged by a power-price rout last- ergy markets. Some investors may also have in November since August 2015. sents them. rivals that are supposed to be the can be found in October’s initial ing half a decade. RWE, which dates back to the preferred RWE over French utili- RWE was disproportionately They regard the 50 cents per future of the energy industry - as public off ering of Innogy SE as Benchmark power contracts 19th century, gets a majority ties as German stocks are con- impacted and is now seeing a common and preferred share well as every other company on well as a long-awaited recovery have gained more than 20% of its electricity from hard coal sidered a hedge by JPMorgan rebound, according to Thomas RWE is planning to pay share- Germany’s main stock index. in wholesale electricity prices. since September. The market and lignite. Lothar Lambertz, a Chase & Co against the political Deser, a fund manager at Union holders next year for 2017 as With investors brushing aside To save itself from an outdated has started to notice the recov- company spokesman, declined risks in the run-up to the French Investment in Frankfurt that “lower limit,” according to Ger- Wednesday’s news of a scrapped utility model operating in the ery, while it hasn’t been fully to comment on the performance presidential election. holds RWE shares. lach.

Shale firms drill away as Opec cuts push Bizarre trades pose menace oil near $55

Bloomberg New York

US oil producers extended the for Opec in its prized market biggest surge in drilling since 2012 as supply curbs from Bloomberg major exporting countries Singapore boost prices. Rigs targeting crude in the US rose this week by 5 to 602, pec pumped at will the past two according to Baker Hughes years to defend its turf against Inc data reported on Friday. Orivals. Its recent volte-face The industry has added 286 has left it contending with additional rigs since bottoming out in threats in the world’s biggest oil mar- May. The Eagle Ford led all ket. basins by adding four rigs, Crude that’s rarely or never-before reaching the highest in over seen coming to Asia is now sailing from a year, while the Permian all over the globe to the region, with increased by three. the door to the market seemingly held US producers are benefiting open by its traditional suppliers from from output cuts by the the Middle East. Would a South Korean Organization of Petroleum buyer like a taste of Russian Urals oil it Exporting Countries and hasn’t touched in a decade? Sure. What 11 other nations to rein in a about some West Canadian Select for global supply glut. Oil prices China and India? Yes, please. Brazilian have topped $50 a barrel Lula with some American shale to the since the group started trading hub of Singapore? Of course. implementing the deal this These and several other unusual year, and rose near $55 shipments signal the price the Organi- on Thursday. While other zation of Petroleum Exporting Coun- nations work to reduce tries is paying to reach its goal of erod- output, the rising rig count ing a glut that caused the worst price underscores how US drillers crash in a generation. While Goldman can’t rush back to work Sachs Group sees the group succeed- fast enough, according to ing in shrinking inventories, Opec’s James Williams, president of top members aren’t relaxing. As their WTRG Economics in London, output curbs have made Middle East Arkansas. crudes costlier and rival supply at- “We anticipate an increasing tractive, they are attempting to play rig count like we’re seeing defence by shielding their most prized today to continue through customers from the reductions. the first half of the year,” “Asian refi ners have the choice to buy said Williams. “I expect that crudes from North America, the North the growth in the coming Sea, the Caspian as well as North and months will be sustained but West Africa,” said Ehsan Ul-Haq, an at a much slower pace than analyst at KBC Advanced Technologies. we’ve been seeing to since “Refi ners will certainly look at arbitrage An anti-submarine patrol vessel from the Singapore navy patrols Singapore waters, as an oil-tanker sails on to an oil refining terminal (file). Crude that’s rarely or December.” economics but with all key benchmarks never-before seen coming to Asia is now sailing from all over the globe to the region, with the door to the market seemingly held open by its traditional suppliers from The boom in shale drilling showing a narrow spread with each the Middle East. has been led by West Texas other, there are numerous possibilities and New Mexico’s Permian to meet their requirements.” Paribas in London. “So there will be entials to replace barrels lost to Opec revenue of nations such as Saudi Arabia Still, some crudes have been boost- Basin and the Scoop and Saudi Arabia, the world’s biggest limits as to how much they will give up.” production restraint,” Tchilinguiri- and Kuwait. ed more than others. The premium of Stack plays in Oklahoma, crude exporter and Opec’s top produc- The latest strategy for defending an said. “They cannot be viewed as Opec and 11 other nations’ agree- Brent, the benchmark for more than which off er the highest er, agreed to supply buyers in Asia all their share of the Asian oil market isn’t regular feature of the market. Do not ment to trim output took eff ect on half the world’s oil, against Middle profits. the oil they asked for March. Iraq and without holes in the armour. With most forget, Asian customers place a high January 1, with an aim to reduce output East marker Dubai crude was at $1.58 a Billionaire real-estate Kuwait did too. This was after nations of the output cuts coming from Mid- value on the security of supply, and by about 1.8mn bpd during the fi rst six barrel last Thursday, after shrinking to mogul Sam Zell has joined such as Japan and South Korea were dle East producers, some buyers have the longer the voyage the more delay months of 2017. The group has achieved the smallest since September 2015 last Harold Hamm’s Continental largely spared from cuts in the previous been tempted to purchase rival supply risks in the timely arrival of barrels to a record 90% initial compliance with month. US West Texas Intermediate fell Resources Inc in a growing two months as well. The burden of out- they’ve shunned previously as Euro- the refi nery.” the accord, according to the Paris- below Dubai in December for the fi rst array of investors in the Stack put reductions is primarily being borne pean, African and American bench- During the previous Opec strategy of based International Energy Agency. time since at least May. formation. by other regions such as Europe and the marks have weakened against the Dubai boosting production, the fl ow of rival Speculation that the producers’ ac- “Opec’s moves on production cuts Concho Resources Inc plans Americas. marker. These include Canada’s Hiber- shipments to Asia was hindered be- tions will curb a glut has generally lifted will keep Brent-Dubai in a narrow to expand its drilling in the “So far, the market share lost in Asia nia as well as Southern Green Canyon cause Middle East crude costs weren’t oil prices worldwide, with Brent crude range in the short term and we will con- Permian’s Delaware Basin in by Opec Middle Eastern producers is from the US. high enough to make a large number of trading at an average of more than $55 tinue to see such bizarre trade fl ows,” 2017, a play that makes up still modest, but this is a key market for “Right now, these very-long haul buyers turn elsewhere. But that tactic a barrel this year. That compares with said Sri Paravaikkarasu, head of East of almost half of the company’s them,” said Harry Tchilinguirian, head arbitrages are opportunistic plays on also meant global oil prices were mired an average of $32.75 over the fi rst two Suez oil at industry consultant FGE in proved reserves. of commodity-markets strategy at BNP freight and benchmark crude diff er- in a downturn that was eating into the months of 2016. Singapore. Money talks louder than Trump for Iran in gas push

Country is ready to ship fuel The country may need as nomic sanctions in exchange for by a court. He also put Iran “on through first pipeline to Iraq; much as $100bn to develop its greater access to facilities Iran notice” after it performed a mis- Iran could export 5bn to 6bn gas business, but estimates vary may use to make nuclear weap- sile test on February 29, without cubic feet of gas a day widely. Majors from Royal Dutch ons. Growing populations and clarifying what that meant. Shell to Total agreed to assess oil economies in nearby countries, International politicking is Bloomberg or gas fi elds in Iran last year, but including Turkey and India, delivering a “temporary hiccup” Frankfurt/Frankfurt no deals have been signed yet. mean gas demand is also set to to investment, but Iran’s gas Total plans to sign a contract if rise. prize is big enough to motivate Iran respects an international But there’s also reason for people to overcome their dif- ran is hard at work gaining a nuclear treaty and if the US doubt. Competition from other ferences, Zamaninia said. The foothold in the global energy sticks to it, chief executive of- suppliers is intensifying, Euro- country has 56 gas fi elds with re- Imarket, and it’s not letting fi cer Patrick Pouyanne said last pean prices have dropped 25% serves of 33.7tn cubic meters, of US President Donald Trump’s Tuesday in an interview. Aus- in the past fi ve years and Iran which 40 are still undeveloped confrontational tone stop it from tria’s OMV AG has said Iran’s gas consumes almost as much as as a result of sanctions. trying. market is “a big opportunity.” it pumps. There’s an election Hamid Soorghali, an energy Political rhetoric is unlikely to “There are concerns and the around the corner and political analyst at Iran-focused consult- turn into tangible impediments international capital is scarce, challenges have forced the coun- ant Energy Pioneers Ltd in Lon- for Iran’s s ambition to join Rus- but our projects and our envi- try to delay some gas projects for don, said that is probably true, sia and Norway in the ranks of ronment are so attractive that we years. and the country remains attrac- major gas exporters, accord- don’t think we will face a great “Iran’s got just a huge amount tive to Russian and Chinese in- ing to Deputy Oil Minister Amir deal of diffi culty,” Zamaninia of potential but I don’t see any- vestors. Hossein Zamaninia. said in an interview at the recent thing major happening for some “Trump will not have an im- The nation has about $7tn CWC Iran LNG & Gas Summit in time,” said Christopher Haines, pact on this macro trend, but worth of gas reserves sitting Frankfurt. “We don’t think that head of oil and gas at BMI Re- rather can only aff ect the quality underground, based on Euro- the new administration in the search in London. “We need a of achieved goals,” he said by e- A gas flame is seen through a bus window in the South Pars gas field facilities in the southern Iranian port pean benchmark prices, and its US will pose a big problem in this lot more trust between operators mail. “Internal ambiguities and of Assaluyeh (file). The country may need as much as $100bn to develop its gas business, but estimates doors are open to those who will department, in the oil and gas and the government and confi - politicizations, such as over the vary widely. help it cash in on the fortune. business.” dence in the political environ- price of gas for exports, can have Zamaninia thinks those sorts of While Iran has the largest ment.” more eff ect.” East gas at consultant FGE. That proposed oil and gas projects, and months, Zamaninia said. Haines fi gures mean the business case commercial volumes of natu- Then there’s Trump. Through With additional technology, would make it the fi fth-largest half of that could come through of BMI Research agreed that for Iranian energy is too tempt- ral gas in the world, the country an executive order, the new US Iran could export as much as 6bn gas exporter in the world behind in a “few short months,” ac- timeline was possible. ing for the world to pass up, even is a smaller exporter than Bo- president banned Iranians from cubic feet (170mn cubic metres) Russia and Norway, Canada and cording to Zamaninia. The fi rst “Iran has huge potential to as its supreme leader Ayatollah livia. But that may soon change. entering the country for 90 days, of gas a day by 2030, mostly to Qatar, according to 2015 fi gures pipeline to Iraq is “ready” to ship export due to its resources,” said Ali Khamenei and Trump ex- Last year, US President Barack citing the threat of terrorism, Mideast countries, according to in the BP Statistical Review. natural gas and a second to Basra Adibi. “The question is only change barbs. Obama lifted a decade of eco- though that order was blocked Siamak Adibi, head of Middle Iran needs $70bn to develop is expected to start in two or three where the market is.” Gulf Times Monday, February 27, 2017 5 BUSINESS

US President Donald Trump (right) took off ice raging against the loss of American manufacturing jobs and wealth, pinning the blame on trade, and questioning the purpose of post-war institutions from Nato to the European Union, but IMF chief Christine Lagarde dismisses the idea that the IMF may find itself at cross-purposes with the new administration. Trump scorns IMF globalism, and now he gets to vote on it

Fund’s free-trade credo challenged by its find itself at cross-purposes with the new Still, some Trump aides have been critical. Greek bond yields have surged again, on devalue without consulting the Fund, and were biggest shareholder; IMF chief Lagarde administration. “We are an agent of financial David Malpass, the former Bear Stearns chief speculation the next loan instalment will be only supposed to borrow short-term to close says mission unchanged, serves US stability in any country where we operate,” she economist, is said to be the top candidate to withheld as the IMF and EU clash over terms. balance-of-payments gaps. interest said. “A leading power like the US has a vested head international aff airs at Trump’s Treasury, Trump’s position could be pivotal. “The British wanted an automatic source of interest in economic prosperity, stability and where he’d be a key liaison with the IMF. During There’s a case to be made that the US gets credit, the Americans a financial policeman,” Bloomberg peace.” Almost everyone likes those things; it’s the Asian crisis of the 1990s, Malpass scolded good value out of the Fund. Each dollar it wrote Keynes’s biographer Robert Skidelsky. The Washington how to get them that provokes arguments. On the Fund for driving borrowers into recession by commits only adds 2 cents to America’s budget, English economist was one of the 20th century’s that question, there are signs the US and the IMF requiring them to devalue and raise taxes. because defaults rarely happen, according sharpest thinkers, but it was the US Treasury are diverging. to the Congressional Budget Off ice. In return off icial who got his way. Christine Lagarde is racing through Uganda in a “We must protect our borders from the ravages for its contribution, which currently stands at The system turned out to have a flaw: It black SUV. It’s a bumpy road – not the only one of other countries making our products, stealing approximately $164bn, America has the biggest depended on the supply of US dollars backed by the IMF chief is likely to encounter in the age of our companies, and destroying our jobs,” Trump say on the Fund’s board. It can’t veto individual gold. That link came under pressure as America, President Donald Trump. said in an inaugural address far removed from loans, but when US interests are aligned with financing social programmes at home and war Since World War II, America has set the agenda the IMF worldview. “Protection will lead to great the EU’s – which they mostly were, before Trump in Vietnam, slipped into persistent deficit. In for the world economy. The International prosperity and strength.” – they tend to prevail. 1971, President Richard Nixon took the dollar off Monetary Fund has been one of its main tools. Then, consider where and why the IMF has Bordo says he’s not worried about the Fund the gold standard, ending phase one at the IMF. The Fund helped steady the finances of war- made its biggest loans lately. To Greece, with becoming redundant. “They’re always thinking Today there’s a patchwork of floating rates, pegs ravaged Europe, enthrone the dollar as the the goal of holding the EU together; Trump says of how they’re going to fit in,” he said. and currency unions like the euro. It’s not working international currency and shore up US allies he’d welcome its breakup. To Ukraine, helping The IMF has already survived one major to everyone’s satisfaction – notably Trump’s. His from Britain to Korea. Above all, it promoted prop up a fledgling anti-Russian regime; Trump mission-change. It’s known today as the lender team has called out several countries, from China to a Washington consensus based on the free wants to get along with Russia. of last resort to countries facing balance-of- Germany, for gaming the system. movement of capital and goods. You could call it More broadly, the Fund channels rich countries’ payments crises. But in its first three decades, Money courses around that system on a scale globalisation. cash to poorer ones, often requiring austerity The Fund channels rich countries’ the Fund managed the world’s currency order. that would have been unimaginable at Bretton And it could be going into reverse. Trump and export-oriented policies in return. Trump cash to poorer ones, oft en requiring That was the role assigned at Bretton Woods in Woods. Massive trade imbalances built up. The took off ice raging against the loss of American says he’ll stop using US resources to make austerity and export-oriented policies 1944, when the IMF and World Bank were set up. dollar remains central. The risks were laid bare manufacturing jobs and wealth, pinning the others rich, has no interest in imposing in return. Trump says he’ll stop using Forty-five nations attended the summit, but two in 2008, when a collapsed US housing bubble blame on trade, and questioning the purpose of American templates, and wants to import less US resources to make others rich, has men dominated it: John Maynard Keynes and led to world recession. post-war institutions from Nato to the European stuff anyway. no interest in imposing American America’s Harry Dexter White. From the back Since then, some financial leaders – among Union. He’s not the only Western leader winning “The extreme manifestation of Trumpism templates, and wants to import less of her car in Uganda, Lagarde calls them the them the governor of the People’s Bank of votes by trashing elites and their global projects. is diametrically opposed to the founding stuff anyway “founding fathers.” China, Zhou Xiaochuan, and his UK counterpart Meanwhile China, the world’s rising economic principles of the IMF,” said James Boughton, Their goal was to avoid a repeat of the 1930s, Mark Carney – have gently hinted that power, is building its own system for extending the IMF’s off icial historian for two decades until Republican lawmakers have long had when competitive devaluations and tariff wars something more like Keynes’s plan might be in influence through credit. 2012. The Fund is “going to have to play a very reservations. They balked when world leaders led to the collapse of world trade. Keynes order, to reduce the world’s dollar dependency. Where does that leave the IMF? delicate game.” agreed to double the IMF’s capital after the wanted the IMF to act as a central bank of Lagarde doesn’t see that happening on her Right where it’s always been, according to To be sure, it’s not clear how much of Trump’s financial crisis. The measure only got through central banks, denominating their accounts in watch. “It didn’t happen in 1944, when the Lagarde. “We need to stick to our knitting and campaign rhetoric will survive into government. Congress when the Treasury agreed to oppose a new global currency. It would let members world had destroyed itself,” she said. “I’m not a deliver on what was our mission,” she said in And the dealmaker-president might discover extra-large bailouts. devalue or borrow with relative ease. Both dreamer.” an interview en route to Uganda’s presidential that the Fund has its uses, said Benn Steil, the Like the one Greece got in 2012. “I could see creditors and debtors would pay interest She argues instead that what the IMF is doing palace last month. She attributes the slowdown author of “The Battle of Bretton Woods,” a this new administration being pretty heavy on their holdings, discouraging large trade today will remain useful tomorrow. Countries in world trade to economic weakness – “when history of the IMF’s founding conference. “I on the Fund on these issues,” said Michael surpluses as well as deficits. will always be getting in a financial mess. you have less growth, you tend to be a little bit could paint a scenario in which he eff ectively Bordo, director of the Center for Monetary and White’s plan was more creditor-friendly, Someone has to clean it up. Ukraine needed more protective of your turf” – and says both looks like a multilateralist, because he finds a Financial History at Rutgers University in New reflecting the US position as world lender. There money in 2015: without the IMF, “where would may prove temporary. way to do deals that are in America’s interests,” Jersey. would be no new currency: IMF members would the $17.5bn come from? Whose pocket would it Lagarde dismisses the idea that the IMF may Steil said. It may get to throw its weight around soon. tie their money to the dollar. They couldn’t be?”

Bloomberg QuickTake Financial contagion

By Mark Whitehouse then one of the largest US hedge funds. In the late 2000s, the subprime mortgage crisis tore through the global financial system, setting off When somebody sneezes, somebody a worldwide recession. Regulators else gets sick. The same goes for lack a financial early-warning system countries: When one nation’s financial to reliably tell them who stands to health suff ers, the malaise tends to suff er the biggest losses when a spread. That’s financial contagion, country or company runs into distress. and sometimes the epidemiology Such uncertainty alone can trigger makes sense. A market crash in one contagion as nervous investors react country aff ects banks in another. Debt to rumours and dump assets that troubles of one government lead they think might be aff ected. Even investors to focus on all governments unfounded fears can become self- with similarly unbalanced books. fulfilling when market routs trigger Sometimes, though, it’s hard to financial failures and panicked lenders understand why a small illness can starve companies of credit. suddenly become an epidemic on the The Background other side of the world, prompting investors to flee entire regions or asset Economists have identified various classes. Economists say there are ways conditions that make contagion more for countries to inoculate themselves, likely to occur. When, for example, but even the best policies off er no a country spends beyond its means guarantee of safety. and depends heavily on short-term The Situation foreign borrowing, it’s more likely to get punished at times when investors China’s economic slowdown has grow uneasy. Also, the financial system become the latest focus of investors’ becomes vulnerable when banks and fears. The country’s surprise other institutions make investments Graph, source: Bloomberg exchange-rate devaluation in mid- using a lot of borrowed money. That’s August triggered an extended rout because losses can quickly render level of US house prices in the mid- freezing of three mortgage investment suggested that there may be cases financial policy, according to Kristin in stocks and currencies around the such leveraged investors insolvent or 2000s. Part of the answer is herding funds at the French bank BNP Paribas where it makes sense to erect barriers Forbes, an authority on contagion world. Other recent worries included trigger added collateral demands from behaviour: When investors are piling in 2007, to shift the dominant emotion limiting investors’ ability to shift at the Massachusetts Institute of a potential Greek exit from the euro creditors, forcing them to raise cash in and pushing up prices, even bad from greed to fear. their money in or out of countries. Technology. This means policy makers area. Experience off ers good reason to by selling assets in other countries investments can off er good returns. The Argument Others say such measures can inhibit should try to make sure that their prepare for the worst. Financial crises or markets. What’s harder to grasp Money managers may have no choice desirable investment and do little to countries don’t binge on borrowed in Asia and Russia in the late 1990s is why investors sometimes react but to join in, lest their performance How best to battle contagion remains protect a country’s financial markets. money, and that their financial led to a global selloff and the demise suddenly to problems they could have fall behind their competitors’. It often a much-debated question. The Ultimately, the most reliable antidote institutions have ample capital to of Long-Term Capital Management, seen earlier — such as the extreme takes shocking news, such as the International Monetary Fund has is sound long-term economic and absorb losses. Gulf Times 6 Monday, February 27, 2017 BUSINESS

SAUDI ARABIA KUWAIT OMAN

Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume

Saudi Re For Cooperative Rei 8.30 -6.21 4,125,984 Boubyan Intl Industries Hold 25.00 0.00 496,551 Dhofar Beverages Co 0.26 0.00 - Solidarity Saudi Takaful Co 9.49 -1.15 1,025,581 Gulf Investment House Ksc 49.00 5.38 17,313,447 Construction Materials Ind 0.03 0.00 10,000 Amana Cooperative Insurance 19.42 2.97 1,186,275 Boubyan Bank K.S.C 430.00 4.88 7,343,257 Computer Stationery Inds 0.26 0.00 - Alabdullatif Industrial Inv 15.23 0.46 237,897 Ahli United Bank B.S.C 248.00 4.20 12,479,993 Bankmuscat Saog 0.48 0.41 305,000 Saudi Printing & Packaging C 17.99 -0.66 264,348 Osos Holding Group Co 190.00 1.06 102 Bank Sohar 0.16 -0.63 492,909 Sanad Cooperative Insurance 15.23 0.00 - Al-Eid Food Ksc 0.00 0.00 - Bank Nizwa 0.09 -1.10 2,817,430 Saudi Paper Manufacturing Co 10.31 -0.10 1,197,217 Qurain Petrochemical Industr 325.00 -1.52 853,474 Bank Dhofar Saog 0.26 0.00 - Alinma Bank 14.66 0.62 20,734,744 Advanced Technology Co 0.00 0.00 - Areej Vegetable Oils Saoc 4.05 0.00 - Almarai Co 68.50 0.37 88,217 Ekttitab Holding Co Sak 45.50 -1.09 980,558 Aloula Co 0.53 0.00 - Falcom Saudi Equity Etf 27.70 -0.36 243,278 Kout Food Group Ksc 0.00 0.00 - Al-Omaniya Financial Service 0.29 0.00 - QATAR United International Transpo 28.42 -0.94 489,099 Real Estate Trade Centers Co 43.00 0.00 3,787,542 Al-Hassan Engineering Co 0.06 0.00 31,000 Hsbc Amanah Saudi 20 Etf 27.70 0.00 2 Acico Industries Co Kscc 315.00 -3.08 523,430 Al-Fajar Al-Alamia Co 0.75 0.00 - Company Name Lt Price % Chg Volume Saudi International Petroche 17.94 0.00 976,911 Kipco Asset Management Co 88.00 -1.12 500 Al-Anwar Ceramic Tiles Co 0.17 -1.20 417,086 Falcom Petrochemical Etf 26.70 0.00 - National Petroleum Services 920.00 5.75 55,000 Al Suwadi Power 0.20 0.00 - Zad Holding Co 84.00 0.00 - Saudi United Cooperative Ins 26.76 0.00 210,902 Alimtiaz Investment Co Kscc 176.00 -5.38 4,689,528 Al Shurooq Inv Ser 1.04 0.00 - Widam Food Co 67.80 1.19 1,140 Bank Al-Jazira 13.71 2.62 2,002,431 Ras Al Khaimah White Cement 102.00 0.00 348,140 Al Sharqiya Invest Holding 0.13 -0.76 87,929 Vodafone Qatar 9.24 -0.32 1,198,024 Al Rajhi Bank 64.82 -0.23 1,278,974 Kuwait Reinsurance Co Ksc 186.00 0.00 6,025 Al Maha Petroleum Products M 1.57 0.00 1,500 United Development Co 21.70 -0.37 226,252 Samba Financial Group 21.50 -0.37 83,550 Kuwait & Gulf Link Transport 68.00 1.49 897,455 Al Maha Ceramics Co Saoc 0.48 -0.41 100,000 Salam International Investme 11.92 0.00 - United Electronics Co 27.65 3.40 119,705 Human Soft Holding Co Ksc 3,040.00 -0.65 3,857 Al Madina Takaful Co Saoc 0.10 2.02 1,416,700 Qatar & Oman Investment Co 10.59 3.02 58,648 Allied Cooperative Insurance 16.12 -1.23 359,004 Automated Systems Co Kscc 320.00 4.92 56,085 Al Madina Investment Co 0.07 0.00 960,116 Qatar Navigation 88.00 -4.45 70,700 Malath Cooperative & Reinsur 8.71 -2.57 660,922 Metal & Recycling Co 89.00 0.00 10,100 Al Kamil Power Co 0.31 0.00 - Qatar National Cement Co 94.80 0.85 11,037 Alinma Tokio Marine 18.80 1.95 489,482 Gulf Franchising Holding Co 61.00 8.93 267,021 Al Jazerah Services -Pfd 0.55 0.00 - Qatar National Bank 156.60 0.71 307,501 Arabian Shield Cooperative 64.17 2.33 811,938 Al-Enma’a Real Estate Co 47.50 1.06 522,800 Al Jazeera Steel Products Co 0.25 0.00 - Qatar Islamic Insurance 68.00 1.04 233,412 Savola 37.90 -0.18 75,602 National Mobile Telecommuni 1,200.00 -3.23 76,670 Al Jazeera Services 0.19 0.00 258,800 Qatar Industrial Manufactur 49.00 0.00 42,503 Wafrah For Industry And Deve 25.21 -0.79 367,324 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Izz Islamic Bank 0.07 0.00 - Qatar International Islamic 69.80 0.14 50,663 Fitaihi Holding Group 13.42 1.28 1,130,115 Housing Finance Co Sak 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatari Investors Group 65.40 9.92 470,099 Tourism Enterprise Co/ Shams 33.21 1.25 157,577 Al Salam Group Holding Co 60.00 0.00 2,064,493 Al Batinah Power 0.20 0.00 131,023 Qatar Islamic Bank 101.40 0.40 39,938 Sahara Petrochemical Co 15.65 -0.32 1,212,198 United Foodstuff Industries 0.00 0.00 - Al Batinah Hotels 1.13 0.00 - Qatar Gas Transport(Nakilat) 23.22 -1.82 51,009 Herfy Food Services Co 82.65 -0.42 84,307 Al Aman Investment Company 54.00 0.00 445,173 Al Batinah Dev & Inv 0.10 0.00 52,500 Qatar General Insurance & Re 42.00 -1.87 500 Mashaer Holdings Co Ksc 0.00 0.00 - Al Anwar Holdings Saog 0.19 0.00 536,913 Qatar German Co For Medical 9.80 -0.41 52,503 Manazel Holding 47.00 5.62 1,741,164 Ahli Bank 0.20 0.99 588,470 Qatar Fuel Qsc 159.60 -0.93 29,842 Mushrif Trading & Contractin 0.00 0.00 - Acwa Power Barka Saog 0.72 0.00 - Qatar First Bank 9.57 -0.21 163,208 KUWAIT Tijara And Real Estate Inves 63.00 -1.56 10,020 Abrasives Manufacturing Co S 0.05 0.00 - Qatar Electricity & Water Co 230.90 -0.04 27,533 Kuwait Building Materials 170.00 0.00 5,060 A’saff a Foods Saog 0.80 0.00 - Qatar Cinema & Film Distrib 27.00 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 600.00 -1.64 424,238 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Insurance Co 74.00 0.68 60,547 Commercial Real Estate Co 86.00 0.00 399,545 Ooredoo Qsc 111.90 2.38 34,634 Securities Group Co 99.00 0.00 50 Future Communications Co 0.00 0.00 - National Leasing 15.35 0.59 54,005 Sultan Center Food Products 77.00 -1.28 201,447 National International Co 76.00 0.00 2,961,023 Mazaya Qatar Real Estate Dev 14.55 0.28 135,092 Kuwait Foundry Co Sak 330.00 -2.94 115,510 Taameer Real Estate Invest C 35.00 -1.41 2,857,475 UAE Mesaieed Petrochemical Holdi 15.52 -0.06 89,776 Kuwait Financial Centre Sak 99.00 -6.60 9,021 Gulf Cement Co 89.00 -1.11 616,564 Al Meera Consumer Goods Co 182.90 0.22 3,046 Ajial Real Estate Entmt 182.00 0.00 21,164 Heavy Engineering And Ship B 220.00 -1.79 20,057 Company Name Lt Price % Chg Volume Medicare Group 79.00 -8.14 494,374 Gulf Glass Manuf Co -Kscc 325.00 0.00 1,000 Refrigeration Industries & S 300.00 0.00 1,040,798 Mannai Corporation Qsc 86.00 0.58 6,433 Kuwait Finance & Investment 49.00 2.08 500 National Real Estate Co 110.00 -1.79 1,960,911 Waha Capital Pjsc 2.23 0.90 832,003 Masraf Al Rayan 41.45 0.85 494,026 National Industries Co Ksc 216.00 -0.92 9,000 Al Safat Energy Holding Comp 54.00 -1.82 2,418,165 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 15.67 1.10 4,800 Kuwait Real Estate Holding C 45.50 0.00 25,000 Kuwait National Cinema Co 1,420.00 -1.39 1,000 United Arab Bank Pjsc 1.85 0.00 - Industries Qatar 120.00 -0.83 56,653 Securities House/The 55.00 1.85 1,226,328 Danah Alsafat Foodstuff Co 89.00 1.14 3,174,551 Union National Bank/Abu Dhab 4.49 1.13 13,000 Islamic Holding Group 60.00 -0.83 22,141 Boubyan Petrochemicals Co 580.00 -1.69 358,752 Independent Petroleum Group 420.00 0.00 11,036 Union Insurance Co 1.86 0.00 - Gulf Warehousing Company 56.50 -1.22 21,989 Al Ahli Bank Of Kuwait 305.00 1.67 639 Kuwait Real Estate Co Ksc 77.00 -1.28 4,270,200 Union Cement Co 1.18 0.00 4,074 Gulf International Services 29.70 0.00 - Ahli United Bank (Almutahed) 440.00 0.00 293,395 Salhia Real Estate Co Ksc 390.00 0.00 1,000 Umm Al Qaiwain Cement Indust 1.15 0.00 - Ezdan Holding Group 15.87 -0.50 601,236 National Bank Of Kuwait 740.00 1.37 1,008,274 Gulf Cable & Electrical Ind 560.00 -1.75 174,408 Sharjah Islamic Bank 1.60 1.27 377,345 Doha Insurance Co 18.10 0.00 144 Commercial Bank Of Kuwait 475.00 -4.04 8,799 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.85 0.00 - Doha Bank Qsc 38.75 0.13 222,430 Kuwait International Bank 248.00 1.64 3,657,895 Kuwait Finance House 620.00 1.64 2,132,128 Sharjah Group 1.50 0.00 - Dlala Holding 20.36 1.80 128,417 Gulf Bank 248.00 0.00 2,653,907 Gulf North Africa Holding Co 46.50 -2.11 850,400 Sharjah Cement & Indus Devel 1.02 0.00 - Commercial Bank Qsc 31.60 0.64 183,169 Al-Massaleh Real Estate Co 48.00 -4.00 24,102 Hilal Cement Co 170.00 0.00 1,500 Ras Al-Khaimah National Insu 4.10 0.00 - Barwa Real Estate Co 40.25 -2.54 1,155,003 Al Arabiya Real Estate Co 46.00 1.10 4,668,749 Osoul Investment Kscc 71.00 -1.39 10,000 Ras Al Khaimah White Cement 1.20 5.26 62,355 Al Khaleej Takaful Group 20.00 0.00 - Kuwait Remal Real Estate Co 71.00 0.00 5,681,619 Gulf Insurance Group Ksc 600.00 0.00 30,000 Ras Al Khaimah Ceramics 2.42 0.00 115,128 Aamal Co 15.14 -0.98 96,805 Alkout Industrial Projects C 700.00 0.00 1,177 Kuwait Food Co (Americana) 2,620.00 3.97 8,236 Ras Al Khaimah Cement Co Psc 0.90 5.88 905,630 A’ayan Real Estate Co Sak 76.00 2.70 435,000 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 2.80 0.00 - Investors Holding Group Co.K 30.00 -1.64 6,810,474 Aayan Leasing & Investment 51.00 3.03 32,160,950 Rak Properties 0.75 -1.32 3,658,719 Al-Mazaya Holding Co 132.00 0.00 1,230,500 Alrai Media Group Co Ksc 178.00 0.00 42,351 Ooredoo Qsc 100.00 -1.67 1,788 SAUDI ARABIA Al-Madar Finance & Invt Co 0.00 0.00 - National Investments Co 138.00 -1.43 345,740 Oman & Emirates Inv(Emir)50% 1.05 -9.48 1,443 Gulf Petroleum Investment 51.00 -3.77 6,704,208 Commercial Facilities Co 174.00 1.16 84,100 Nbad Oneshare Msci Uae Ucits 6.26 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 850.00 0.00 432,144 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - 0.55 - City Group 0.00 0.00 - Afaq Educational Services Co 156.00 0.00 1,906 National Marine Dredging Co 5.00 0.00 - United Wire Factories Compan 24.56 0.78 86,147 Inovest Co Bsc 108.00 -1.82 586,881 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.52 0.00 - Etihad Etisalat Co 21.82 -0.32 390,231 Kuwait Gypsum Manufacturing 95.00 0.00 6,645 Yiaco Medical Co. K.S.C.C 280.00 -3.45 38,600 National Corp Tourism & Hote 2.80 0.00 - Dar Al Arkan Real Estate Dev 6.01 0.33 38,687,012 Al-Deera Holding Co 40.00 -1.23 59,511 National Bank Of Umm Al Qaiw 3.00 0.00 - Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 0.00 0.00 - National Bank Of Ras Al-Khai 5.00 0.00 - Rabigh Refining And Petroche 13.15 0.77 2,556,872 Mena Real Estate Co 35.00 2.94 8,122,962 National Bank Of Fujairah 3.50 0.00 - Banque Saudi Fransi 24.60 -0.81 13,383 National Slaughter House 54.00 0.00 500 National Bank Of Abu Dhabi 10.55 0.48 991,630 Saudi Enaya Cooperative Insu 16.98 -0.35 292,301 Amar Finance & Leasing Co 51.00 2.00 29,000 OMAN Methaq Takaful Insurance 0.91 2.25 4,609,555 Manazel Real Estate Pjsc 0.62 0.00 12,389,335 Mediterranean & Gulf Insuran 25.08 -2.30 617,513 United Projects For Aviation 810.00 0.00 9,050 Company Name Lt Price % Chg Volume Saudi British Bank 22.00 0.92 96,537 National Consumer Holding Co 50.00 0.00 3,001 Invest Bank 2.07 0.00 - Mohammad Al Mojil Group Co 12.55 0.00 - Amwal International Investme 34.00 0.00 300,610 Voltamp Energy Saog 0.52 0.00 13,232 Intl Fish Farming Co Pjsc 1.97 -1.99 2,288,643 Red Sea International Co 26.99 0.41 59,519 Jeeran Holdings 73.00 7.35 2,039,850 United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.74 0.00 - Takween Advanced Industries 13.15 0.54 2,618,824 Equipment Holding Co K.S.C.C 62.00 -1.59 657,730 United Power Co Saog 3.40 0.00 - Gulf Pharmaceutical Ind Psc 2.11 0.00 - Sabb Takaful 29.37 0.58 317,317 Nafais Holding 200.00 0.00 1,245,224 United Finance Co 0.16 0.00 - Gulf Medical Projects 3.19 0.00 - Saudi Arabian Fertilizer Co 71.64 0.17 63,478 Safwan Trading & Contracting 410.00 0.00 200 Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 1.05 0.96 287 National Gypsum 13.89 0.73 299,217 Arkan Al Kuwait Real Estate 85.00 0.00 250,000 Takaful Oman 0.17 0.00 - Fujairah Cement Industries 1.10 0.00 - Saudi Ceramic Co 30.21 0.37 70,878 Gfh Financial Group Bsc 236.00 0.85 301,345 Taageer Finance 0.14 1.50 285,777 Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 36.80 -0.27 45,488 Energy House Holding Co Kscp 44.00 0.00 44,000 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 6.55 0.00 - Saudi Pharmaceutical Industr 37.50 0.05 41,824 Kuwait Slaughter House Co 190.00 0.00 100 Sohar Power Co 0.22 0.00 50 First Gulf Bank 13.80 0.73 757,606 Thimar 38.23 1.81 552,097 Kuwait Co For Process Plant 198.00 0.00 30,000 Sohar Poultry 0.21 0.00 - Finance House 1.74 -2.25 1 National Industrialization C 18.57 -1.49 2,307,664 Al Maidan Dental Clinic Co K 0.00 0.00 - Smn Power Holding Saog 0.70 0.00 - Eshraq Properties Co Pjsc 1.15 0.00 24,904,738 Saudi Transport And Investme 56.16 1.68 378,093 National Ranges Company 33.50 0.00 2,918,839 Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 18.60 -0.80 1,118,072 Saudi Electricity Co 23.93 0.76 799,192 Al-Themar Real International 94.00 0.00 200,105 Shell Oman Marketing 2.00 0.00 - Emirates Insurance Co. (Psc) 5.98 0.00 - Saudi Arabia Refineries Co 37.22 0.05 139,222 Al-Ahleia Insurance Co Sakp 500.00 0.00 5,000 Sharqiyah Desalination Co Sa 4.50 0.00 - Emirates Driving Company 8.50 5.33 2,223,000 Arriyadh Development Company 21.75 0.14 90,428 Wethaq Takaful Insurance Co 62.00 6.90 2,443,402 Sembcorp Salalah Power & Wat 0.25 0.00 25,000 Dana Gas 0.44 -2.22 17,559,499 Al-Baha Development & Invest 13.50 0.00 - Salbookh Trading Co Kscp 75.00 1.35 41,580 Salalah Port Services 0.63 0.00 - Commercial Bank Internationa 1.98 0.00 1,000 Saudi Research And Marketing 30.73 -1.06 190,838 Aqar Real Estate Investments 80.00 0.00 225,902 Salalah Mills Co 1.48 0.00 - Bank Of Sharjah 1.37 0.00 - Aldrees Petroleum And Transp 37.77 -1.02 129,882 Hayat Communications 83.00 6.41 419,351 Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.80 0.00 - Saudi Vitrified Clay Pipe Co 59.85 0.54 33,844 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Arkan Building Materials Co 0.80 1.27 419,674 Jarir Marketing Co 130.12 -0.35 27,951 Soor Fuel Marketing Co Ksc 128.00 3.23 269,949 Renaissance Services Saog 0.25 0.00 75,436 Alkhaleej Investment 1.15 0.00 - Arab National Bank 20.40 -0.83 97,418 Alargan International Real 198.00 0.00 30,650 Raysut Cement Co 1.48 0.00 5,000 Aldar Properties Pjsc 2.44 0.00 2,423,959 Yanbu National Petrochemical 56.20 -1.40 203,577 Burgan Co For Well Drilling 90.00 -5.26 104,000 Port Service Corporation 0.31 0.00 751,344 Al Wathba National Insurance 12.75 0.00 - Arabian Cement 39.00 -0.03 271,412 Kuwait Resorts Co Kscc 87.00 1.16 1,134,096 Phoenix Power Co Saoc 0.14 -0.69 63,309 Al Khazna Insurance Co 0.42 0.00 - Middle East Specialized Cabl 8.61 -1.60 2,294,406 Oula Fuel Marketing Co 128.00 1.59 317,776 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 19.05 0.21 111,377 Palms Agro Production Co 100.00 0.00 2,000 Ooredoo 0.57 -2.05 1,741,782 Al Dhafra Insurance Co. P.S. 3.95 -2.47 2,000 Al Sagr Co-Operative Insuran 42.45 1.95 1,200,339 Ikarus Petroleum Industries 33.00 0.00 5,366,944 Ominvest 0.53 -1.48 14,494 Al Buhaira National Insuranc 2.35 0.00 - Trade Union Cooperative Insu 19.16 -0.05 237,670 Mubarrad Transport Co 75.00 2.74 739,733 Oman United Insurance Co 0.40 0.00 141,920 Al Ain Ahlia Ins. Co. 55.00 0.00 - Arabia Insurance Cooperative 13.22 -1.12 1,268,664 Al Mowasat Health Care Co 300.00 20.00 15,447 Oman Textile Holding Co Saog 0.54 0.00 - Agthia Group Pjsc 6.47 2.54 54,138 Saudi Chemical Company 34.71 -0.26 113,008 Shuaiba Industrial Co 480.00 -5.88 247,186 Oman Telecommunications Co 1.40 -0.36 96,625 Abu Dhabi Ship Building Co 2.82 0.00 - Fawaz Abdulaziz Alhokair & C 31.33 0.13 103,424 Hits Telecom Holding 55.00 1.85 1,911,250 Oman Refreshment Co 2.16 0.00 - Abu Dhabi Natl Co For Buildi 0.54 0.00 - Bupa Arabia For Cooperative 129.61 -0.55 98,203 First Takaful Insurance Co 66.00 -4.35 1,703,150 Oman Packaging 0.30 0.00 - Abu Dhabi National Takaful C 4.50 0.00 - Wafa Insurance 18.84 1.73 1,347,892 Kuwaiti Syrian Holding Co 49.00 -1.01 1,957,297 Oman Orix Leasing Co. 0.14 0.00 - Abu Dhabi National Insurance 3.10 0.00 - Jabal Omar Development Co 65.99 -0.71 494,539 National Cleaning Company 56.00 1.82 1,000,100 Oman Oil Marketing Company 1.85 0.00 - Abu Dhabi National Hotels 3.00 0.00 - Saudi Basic Industries Corp 97.81 0.45 2,039,459 Eyas For High & Technical Ed 0.00 0.00 - Oman National Engineering An 0.16 0.00 - Abu Dhabi National Energy Co 0.47 -2.08 3,024,285 Saudi Kayan Petrochemical Co 8.40 0.00 2,085,914 United Real Estate Company 100.00 1.01 42,000 Oman Investment & Finance 0.22 0.46 410,034 Abu Dhabi Islamic Bank 3.90 1.04 113,996 Etihad Atheeb Telecommunicat 3.50 1.45 565,686 Agility 620.00 1.64 402,845 Oman Intl Marketing 0.52 0.00 - Co For Cooperative Insurance 117.24 -0.65 50,353 Kuwait & Middle East Fin Inv 36.00 -1.37 274,600 Oman Hotels & Tourism Co 0.40 0.00 - National Petrochemical Co 20.95 1.95 190,197 Fujairah Cement Industries 87.00 -1.14 50,500 Oman Foods International 0.00 0.00 - Gulf Union Cooperative Insur 12.80 -1.99 626,977 Livestock Transport & Tradng 226.00 0.89 329,575 Oman Flour Mills 0.82 0.00 14,500 BAHRAIN Gulf General Cooperative Ins 18.79 -0.21 357,190 International Resorts Co 38.50 -3.75 2,194,000 Oman Fisheries Co 0.15 1.33 1,578,168 Basic Chemical Industries 24.72 0.16 82,613 National Industries Grp Hold 150.00 1.35 699,238 Oman Fiber Optics 4.57 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co 0.27 Marine Services Co Ksc 0.00 Oman Europe Foods Industries 1.00 0.00 - 18.35 13,669 58.00 50,300 Zain Bahrain Bscc 0.10 0.00 455,209 Buruj Cooperative Insurance 4.07 Warba Insurance Co 0.00 Oman Education & Training In 0.13 0.00 - 31.44 1,042,806 106.00 82,814 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co 2.14 Kuwait United Poultry Co 0.00 Oman Chromite 3.64 0.00 - 139.18 19,066 180.00 35,652 United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co 0.50 First Dubai Real Estate Deve -1.41 Oman Chlorine 0.49 0.00 - 70.50 30,750 70.00 3,887,134 United Gulf Bank 0.36 0.00 5,000 Maadaniyah 0.25 Al Arabi Group Holding Co -2.38 Oman Ceramic Com 0.42 0.00 - 23.90 215,129 82.00 30,000 Trafco Group Bsc 0.23 0.00 16,322 Yamama Cement Co 0.41 Kuwait Hotels Sak 0.00 Oman Cement Co 0.49 0.00 616,750 19.58 188,276 246.00 12,000 Takaful International Co 0.00 0.00 - Jazan Development Co 1.93 Mobile Telecommunications Co 0.00 Oman Cables Industry 1.61 0.94 700,130 13.21 3,261,618 480.00 2,421,444 Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment 0.00 Al Safat Real Estate Co 0.00 Oman Agricultural Dev 0.00 0.00 - 30.00 52,255 0.00 - Seef Properties 0.25 8.70 15,000 Alujain Corporation (Alco) 0.33 Tamdeen Real Estate Co Ksc 0.00 Oman & Emirates Inv(Om)50% 0.15 -1.92 25,553 21.09 363,073 460.00 11,100 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme -0.66 Al Mudon Intl Real Estate Co -1.92 Natl Aluminium Products 0.18 0.00 - 12.04 2,419,329 51.00 10,262,462 National Hotels Co 0.00 0.00 - United Co-Operative Assuranc -0.32 Kuwait Cement Co Ksc 0.00 National Securities 0.10 0.00 - 15.38 154,449 495.00 27,299 National Bank Of Bahrain Bsc 0.76 0.00 10,315 Qassim Cement/The -1.50 Sharjah Cement & Indus Devel 0.00 National Real Estate Develop 5.00 0.00 - 59.25 38,767 87.00 5,000 Nass Corp Bsc 0.15 1.39 180,000 Saudi Advanced Industries 2.43 Kuwait Portland Cement Co 0.00 National Pharmaceutical 0.11 0.00 - 13.92 1,061,032 1,080.00 26,364 Khaleeji Commercial Bank 0.11 0.00 286,988 Kingdom Holding Co -0.18 Educational Holding Group 0.00 National Mineral Water 0.05 0.00 - 11.39 94,926 204.00 6,437 Ithmaar Holding Bsc 0.20 -2.50 500,000 Saudi Arabian Amiantit Co 0.00 Bahrain Kuwait Insurance 0.00 National Hospitality Institu 0.00 0.00 - 7.50 574,228 0.00 - Investcorp Bank -$Us 8.50 0.00 5,000 Al Jouf Agriculture Developm 0.30 Asiya Capital Investments Co -1.33 National Gas Co 0.53 0.00 2,000 33.80 54,075 37.00 20,698 Inovest Co Bsc 0.28 0.00 1,203,896 Saudi Industrial Development -3.00 Kuwait Investment Co 3.03 National Finance Co 0.16 0.00 500,000 12.28 2,614,007 102.00 25,253 Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 1.61 National Detergent Co Saog 0.70 0.00 - 69.75 - 315.00 825,547 Gulf Hotel Group B.S.C 0.62 0.00 70,000 Riyad Bank 0.37 Kuwait Projects Co Holdings 2.00 National Biscuit Industries 3.75 0.00 - 10.84 210,888 510.00 187,403 Gfh Financial Group Bsc 0.78 -0.64 168,000 The National Agriculture Dev 1.76 Al Madina For Finance And In -1.79 National Bank Of Oman Saog 0.25 -0.40 20,000 23.07 421,735 55.00 2,231,031 Esterad Investment Co B.S.C. 0.15 0.00 22,442 Halwani Bros Co 0.55 Kuwait Insurance Co -1.59 Muscat Thread Mills Co 0.09 0.00 - 58.75 37,233 310.00 2,729 Delmon Poultry Co 0.32 0.00 13,944 Arabian Pipes Co -0.64 Al Masaken Intl Real Estate 0.00 Muscat National Holding 1.77 0.00 - 16.99 157,372 75.00 3,000 Bmmi Bsc 0.82 0.61 50,000 Eastern Province Cement Co -0.03 Intl Financial Advisors -1.06 Muscat Gases Company Saog 0.58 0.00 - 30.79 38,850 46.50 4,901,521 Bmb Investment Bank 0.00 0.00 - Al Gassim Investment Holding 0.00 First Investment Co Kscc -1.82 Muscat Finance 0.14 -0.71 10,000 0.00 - 54.00 2,536,313 Bbk Bsc 0.38 0.00 201,000 Filing & Packing Materials M 0.60 Al Mal In 0.00 Majan Glass Company 0.19 0.00 - 35.25 90,339 vestment Company 25.50 2,346,358 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 -1.96 Majan College 0.51 0.00 - 5.75 - Bayan Investment Co Kscc 50.00 1,741,938 Banader Hotels Co 0.00 0.00 - Tihama Advertising & Public -2.29 0.00 Hsbc Bank Oman 0.13 0.00 - 24.34 548,974 Egypt Kuwait Holding Co Sae 186.00 5,000 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The 0.57 -3.85 Hotels Management Co Interna 1.25 0.00 - 14.08 53,380 Coast Investment Development 50.00 4,602,059 Bahrain Telecom Co 0.28 -0.71 30,000 Astra Industrial Group 0.55 0.00 Gulf Stone 0.12 0.00 - 16.56 47,701 Privatization Holding Compan 55.00 3,388,392 Bahrain Ship Repair & Engin 0.00 0.00 - Saudi Public Transport Co 0.56 0.00 Gulf Plastic Industries Co 0.00 0.00 - 16.04 1,376,523 Kuwait Medical Services Co 0.00 - Bahrain National Holding 0.42 0.00 24,442 Taiba Holding Co 0.52 -1.19 Gulf Mushroom Company 0.34 0.00 - 40.90 16,130 Injazzat Real State Company 83.00 159,000 Bahrain Kuwait Insurance 0.00 0.00 - Saudi Industrial Export Co 1.05 -7.69 Gulf Investments Services 0.12 -1.64 239,537 35.48 332,630 Kuwait Cable Vision Sak 30.00 109,587 Bahrain Islamic Bank 0.14 0.00 50,000 Saudi Real Estate Co -0.93 1.79 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - 22.40 806,735 Sanam Real Estate Co Kscc 57.00 200 Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co 1.86 3.23 Gulf International Chemicals 0.29 0.00 - 125.29 112,079 Ithmaar Holding Bsc 64.00 13,078,950 Bahrain Family Leisure Co 0.00 0.00 - National Shipping Co Of/The -0.79 -1.92 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - 36.50 914,117 Aviation Lease And Finance C 255.00 28,100 Bahrain Duty Free Complex 0.85 0.00 20,000 Methanol Chemicals Co -1.67 -1.16 Global Fin Investment 0.17 0.00 - 7.66 2,688,718 Arzan Financial Group For Fi 42.50 699,811 Bahrain Commercial Facilitie 0.72 0.00 50,000 Ace Arabia Cooperative Insur 1.89 1.35 Galfar Engineering&Contract 0.10 0.00 568,293 50.10 160,351 Ajwan Gulf Real Estate Co 75.00 100,010 Bahrain Cinema Co 1.30 0.00 5,000 Mobile Telecommunications Co 0.56 1.85 Galfar Engineering -Prefer 0.39 0.00 - 9.05 1,093,193 Kuwait Business Town Real Es 55.00 8,442,497 Bahrain Car Park Co 0.00 0.00 - Saudi Arabian Coop Ins Co 0.19 0.00 Financial Services Co. 0.17 0.00 - 21.30 232,807 Future Kid Entertainment And 124.00 105 Arab Insurance Group(Bsc)-$ 0.41 0.00 5,634 Axa Cooperative Insurance -0.56 -4.26 Financial Corp/The 0.10 0.00 - 19.39 382,757 Specialities Group Holding C 90.00 376,100 Arab Banking Corp Bsc-$Us 0.37 0.00 38,000 Alsorayai Group -0.25 -1.45 Dhofar University 1.49 0.00 - 11.82 467,983 Abyaar Real Eastate Developm 34.00 18,514,962 Aluminium Bahrain Bsc 0.28 1.43 801,500 Weqaya For Takaful Insurance 0.00 0.00 Dhofar Tourism 0.49 0.00 - 19.39 - Dar Al Thuraya Real Estate C 0.00 - Albaraka Banking Group 0.50 1.01 56,952 Bank Albilad 0.37 0.00 Dhofar Poultry 0.18 0.00 - 18.92 92,822 Al-Dar National Real Estate 0.00 - Al-Salam Bank 0.12 0.00 83,408 Al-Hassan G.I. Shaker Co 0.77 1.35 Dhofar Intl Development 0.36 0.00 - 15.70 516,510 Kgl Logistics Company Kscc 75.00 847,000 Al-Ahlia Insurance Co 0.00 0.00 - Wataniya Insurance Co 0.10 0.00 Dhofar Insurance 0.21 0.00 - 29.67 365,527 Combined Group Contracting 500.00 13,605 Ahli United Bank B.S.C 0.80 0.00 319,000 Abdullah Al Othaim Markets 101.98 -0.99 17,900 Zima Holding Co Ksc 65.00 1.56 532,603 Dhofar Fisheries & Food Indu 1.28 0.00 - Hail Cement 11.80 0.94 680,708 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.22 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times Monday, February 27, 2017 13 BUSINESS

Mining companies regain sparkle as commodity prices rebound

AFP more costly to produce polluting Sydney commodities in China. The November election of President Donald Trump, who Increased Chinese spending has touted massive infrastructure on housing and hopes of an spending, and the Indian govern- infrastructure bonanza in the US ment’s vow to fund the mod- and India are driving a recovery ernisation of roads, airports and in resources giants, analysts said, railways also boosted sentiment. with major miners raking in huge The world’s two biggest miners profits. — BHP Billiton and Rio Tinto — this A slowdown in the global month reported bumper profits economy, particularly in the for 2016 after plunging into the world’s top consumer China, and red the previous year and Brazil’s a supply glut hammered prices Vale also said Thursday it experi- in recent years, pushing many enced a strong earnings boost on firms to the brink of collapse and the back of record production. forcing others to slash jobs and Coal giant Anglo American An advertising board (left) showing a Chinese stone lion pictured near an entrance to the headquarters (right) of China Securities Regulatory Commission (CSRC), in Beijing. spending. joined the party Tuesday, power- China will allow more companies to list on its stock market to boost support for its economy, the nation’s top securities regulator said, dismissing concerns that more supplies But with Beijing rediscovering ing back into the black, while the of shares can depress the market. its appetite for key metals — and surge in coal prices has led to the the economy showing signs of reopening of mines by operators stabilising — optimism is return- including Swiss commodities ing, although there are lingering giant Glencore. worries the recovery might not US-listed coal miners such as last. “Most miners are going to be Alpha Natural Resources and making very good cash, and better Arch Coal are also returning after cash than they have been making a slew of bankruptcies. for years,” UBS commodities ana- Warrior Met Coal, which owns China will allow more lyst Daniel Morgan told AFP. bankrupt Walter Energy’s main “Their cost bases are lower and assets, is hiring workers while in many cases they are back to Peabody Energy has plans to rel- sustaining capex (capital expendi- ist sometime this year. ture) rather than growing capex. “That’s an interesting example So right now they’ll be minting of how things have gone full cash and improving their balance circle. We’ve come out at the IPOs to lure capital, sheets.” Iron ore, a key ingredient other end, these companies have in steelmaking, has been repre- been restructured and it’s a much sentative of the commodities stronger coal-price environment,” rollercoaster. Driscoll said. After hitting a peak near $200 “They...are likely to become a tonne in 2011, it tumbled some significant companies again.” 80% to below $40 in late 2015. Shareholders could benefit says market regulator Since then, it has rallied to from share buybacks as miners spike above $90 in February, become awash with cash, while Bloomberg “As investment value increases, confi - ity subsides. Over the past three months, his criticism of “fi nancial crocodiles” surprising analysts. mergers and acquisitions could Beijing dence of the entire society strengthens.” authorities opened the Shenzhen-Hong that “cruelly” infringe on the interest of Copper prices have also rallied, return. While quickening IPOs as the market Kong exchange link and said they’ll push small stock investors. In a public speech with a strike at BHP’s Escondida But companies would be wary recovers from its $5tn rout in the sum- ahead with a trial for more exchange- in December, he slammed unidentifi ed mine in Chile — the world’s big- of embarking on a spending hina will allow more companies mer of 2015, the regulator this month traded fund options and pledged to in- leveraged stock acquirers as “robbers,” gest copper pit — also providing spree that might backfire if to list on its stock market to boost also announced new curbs on additional crease the pace of initial public off erings. shortly before the nation’s insurance support. prices plunge again, with experts Csupport for its economy, the na- fundraising by listed companies. Stabil- More than 600 companies are seek- regulator announced penalties on two The main factors behind the questioning whether the current tion’s top securities regulator said, dis- ity, which was the highest expectation ing approval for fi rst-time share sales, insurers that had been among the most broad-based revival have been commodities rally is sustainable missing concerns that more supplies of among market participants last year, re- Fang said during a panel discussion last aggressive investors in the stock market. supply constraints and a shift and if prices will head south in shares can depress the market. mains a key objective this year although month at the World Economic Forum in “In the capital market, being a fi nan- in Chinese demand, said CLSA’s case supply starts to outstrip The capital market’s recovery from the CSRC would also aim to make new Davos, Switzerland. The CSRC approved cial mogul is only half a step away from head of resources research demand. a 2015 rout has been stronger than ex- progress and “new breakthroughs” in re- 280 IPO applications last year, when 248 being a fi nancial crocodile,” he said. Any Andrew Driscoll. Some commodities such as pected and is now ready for “appropri- forms, Liu said, without elaborating. companies completed such sales, Liu illegal behaviour in the market would Chinese authorities introduced coal already face a longer-term ately” larger supplies of initial public The government plans to “gradually said on Sunday without providing year- leave traces behind, which, “no mat- policies supporting the nation’s decline owing to competition off erings, China Securities Regulatory increase” foreign companies’ stakes in earlier comparisons. ter they’re historical or current,” will be crucial property market while also from cheap natural gas and a Commission Chairman Liu Shiyu said their local securities and futures joint The number of shares issued in private pursued by regulators, Liu said. increasing credit, helping drive push for cleaner energy. Sunday in Beijing, citing a “mainstream” ventures, Fang Xinghai, a vice chairman placements can’t be more than 20% of The China Insurance Regulatory infrastructure investment. But the key factor that could view. The regulator’s faster approval of of the CSRC, said at the same brief- a company’s total shares, the CSRC told Commission on Friday escalated its “Demand was persistently prove crucial is the US dollar, in IPOs last year had been “welcomed” by ing, without providing more details. reporters on Feb. 17. crackdown on “radical” investment be- better than what was expected, which commodities are priced. the market, he said, adding that the ef- Regulators will also allow more over- Non-fi nancial companies seeking a haviour, banning Yao Zhenhua, chair- led by those two sub-sectors, for With Trump’s big-spending, tax- fects from previous practices of slowing seas industrial companies into China’s share sale shouldn’t have a large balance man of Foresea Life Insurance Co, from much of the year,” Driscoll told cutting plan expected to ramp up or suspending share sales amid market commodities futures market to improve of longer-term fi nancial investments the industry for 10 years, one day before AFP. At the same time, supply inflation, the Federal Reserve will downturns have proven “not good.” pricing, he said. such as assets for trading or funds lent to announcing restrictions on stock invest- constraints emerged as the likely be forced to hike borrowing “The entry of new companies can in- Chinese regulators, who clamped others, the CSRC said, though it didn’t ments of Evergrande Life Insurance Co. central government enacted en- costs, fuelling demand for the crease market liquidity and can attract down on markets during the stock rout, provide more details. Both companies were involved in a tussle vironmental reforms that made it greenback. additional capital,” Liu told reporters. are slowly warming to reforms as volatil- At the briefi ng, Liu also stepped up of control for developer China Vanke Co.

TCL brings back physical keyboard Oil giant taps China’s vast geothermal reserves

in new BlackBerry AFP That goal includes a ten-fold Baoding, China increase in geothermal resources: AFP growing electrical output to 530 Barcelona megawatts by 2020 and tripling hinese state-run energy the fl oorspace of buildings heated giant Sinopec has drilled by geothermal energy. Chinese electronics company TCL unveiled on Saturday Chundreds of wells across Although it sounds like a big its first BlackBerry-licensed smartphone which brings the country without fi nding a sin- number, it would still be a drop in back the device’s signature physical keyboard as it seeks gle drop of oil. the bucket of overall Chinese elec- to revive the once mighty brand. But that was precisely the point: tricity production (5.638bn mega- The KEYone phone has a larger screen than previous instead of black gold, the almost watts in 2014) and very modest BlackBerry devices and a fast charging battery as TCL mile deep holes are providing clean compared to Iceland (close to 700 sets its sights on businesses and tries to rekindle Black- heat for local homes. MW) or the United States (3,930 Berry’s strong reputation for productivity and security. While two-thirds of China’s MW). TCL reached the brand-licensing deal in December af- electricity is generated by coal, al- Lin Boqiang, the director of the ter the Canadian company announced that it would halt most all of the homes in northern energy research centre at Xia- in-house production of smartphones, marking the end of Hebei province’s Xiong district men University, is sceptical of the an era for the once-dominant tech firm. — home to 400,000 people — are project. Under the agreement, BlackBerry will remain in heated by wells as deep as 1,500 “It’s clean, but compared to so- control of software and security on smartphones, while metres (5,000 feet). lar or wind, the cost of geothermal TCL will handle creating handsets powered by Google In a new apartment in the is incredibly high,” he told AFP, Android software. district, a 60-year-old retiree questioning whether the project Off icials from both firms unveiled the KEYone in Bar- watched his granddaughters hop could survive without state sup- celona in northeastern Spain ahead of the start today of about in bare feet, impervious to port. the four-day Mobile World Congress, the world’s largest the frost outside. “Its future is certainly not as as- annual phone expo. “This fl oor heating works like a sured as solar...The market for Si- BlackBerry worked closely with TCL to build security dream,” said Li Fuzeng. “And they China Petroleum & Chemical Corp (Sinopec) storage tanks seen in Hong Kong. The Chinese state-run energy nopec is still marginal.” into the new device, said Alex Thurber, the general man- say it’s clean energy.” giant has drilled hundreds of wells across the country without finding a single drop of oil. At Sinopec, Duan Qiaohong, ager of BlackBerry’s mobility solutions unit. The temperature inside his home who is responsible for the Com- “At BlackBerry we live and breathe security. was 28 degrees Celsius (82 degrees model for how it can tap this re- logical research offi cer at Sinopec. northern China. According to Si- munist Party committee involved Security has been engineered into the entire manufac- Fahrenheit) and a citrus tree in the source. — An Icelandic ally — Be- “In China, with the exception of nopec, Xiong has become China’s with the Sino-Icelandic joint turing process, throughout the hardware and of course corner showed no signs of winter. fore launching itself into the geo- Sichuan and Tibet, there are hardly fi rst “smokeless town” by elimi- venture, discussed the problem in the software,” he said. Chen Menghui, director of Si- thermal industry, Sinopec found any temperatures exceeding 150C, nating the coal-fi red heating sys- veiled terms. BlackBerry’s physical keyboard was one of the drivers nopec’s geothermal branch in He- an unusual partner in the Icelandic which forces us to concentrate on tems common throughout other “It is evidently a crucial ques- of the popularity of its earlier phones but it was dropped bei, said the process depends on a company Arctic Green Energy. heating systems,” he added. parts of the country. tion whether there is demand in once touch screens became popular. cycle of running water. Sinopec needed technical sup- Sinopec, which has suff ered in The moniker is not entirely ac- the market, that’s ultimately what The company in 2014 launched a “Classic” smartphone “These underground wells are port and Iceland is regarded as the recent years from the tumble in curate, though. decides in the end,” he told AFP. that brought back the keyboard but the device was pumped with water, which comes leader in extracting energy from oil prices and the slowdown of the Although the city has done The sector produces only “mea- discontinued in July. out at a temperature of around 70C the ground. Chinese economy, appears to be away with polluting furnaces, Li’s gre profi ts” and in the absence — In the new Blackberry phone the keyboard can be before fl owing into the heating In a joint venture beginning in investing further in renewable en- neighbourhood is still regularly for the time being — of national used for more than just typing. system,” he said. 2009, they invested 400mn yuan ergy, including solar and wind, as covered with a thick layer of pol- support, it still depends on subsi- The spacebar on the keyboard also doubles as a Though experts say there is im- ($58mn) into the Xiong project, well as geothermal. lution coming from surrounding dies from local authorities, he said. fingerprint sensor while individual letter keys can be mense potential in China’s subter- where they drilled almost 70 wells. The company has geothermal industrial districts. But “other big public groups programmed as shortcuts to open specific apps. ranean heat reserves, they remain The idea was to apply the tech- facilities in 16 Chinese provinces, Still, Sinopec aims to develop 20 have followed in Sinopec’s foot- The KEYone will go on sale around the globe in April at largely unexploited, accounting for nology that had already been test- allowing it to heat some 40mn such “smokeless cities” nation- steps” and increased competition a cost of €599 ($549). less than 0.5% of the Asian giant’s ed in the Nordic country to north- square metres of homes and fac- wide by 2020. could encourage the development “The new BlackBerry portfolio has a chance of suc- energy consumption. ern China. tories — and avoiding an estimated The company’s ambitions align of cheaper geothermal technolo- cess, because few companies now off er BlackBerry-style Sinopec’s geothermal projects “Iceland, on the mid-Atlantic three mn tonnes of CO2 emissions. with the ruling Communist Party’s gies, Duan said. design and features, and the productivity-focused smart- in China make up for more than ridge, has exceptional resources, One potential benefi t of the plan to signifi cantly reduce air pol- Either way, he added, the future phone segment is underserved,” said Ian Fogg, head of 40% of the total number of homes with temperatures exceeding 250C project could be a signifi cant re- lution in Chinese cities, in part by looks bright: “The geothermal in- mobile at research firm IHS. heated by geothermal energy in the — hot enough to supply power duction in local air pollution, a increasing the use of clean energy dustry corresponds perfectly with country, making them a potential plants,” said Wang Yanxin, a geo- problem that has plagued much of to replace carbon-based fuels. current clean energy priorities.” Gulf Times 14 Monday, February 27, 2017 BUSINESS

Huawei seeks to exploit Telecom deals are back as CEOs Samsung gap with new head for Barcelona gathering smartphone

Bloomberg ther deals, obstacles remain, the peo- Reuters Berlin ple said. They include valuation, geo- Barcelona graphical mismatches including in India, Africa and Latin America, and elecom executives from Voda- Malone’s supervoting stock in Liberty uawei is introducing a fone Group to Deutsche Telekom Global, one person said. mass-market version Tand Telefonica are headed to the Vodafone and Liberty declined to Hof its premium business industry’s annual get-together in Bar- comment. In January, Liberty Global’s phone, to take advantage of a celona this week with more on their Fries said the companies may look at gap created by the withdrawal of minds than the latest handsets. swapping assets, though the long- Samsung’s fl agship Galaxy Note Deals under consideration at the speculated tie-up between the compa- 7 after a crisis with its batteries highest levels could realign the indus- nies at a corporate level was “not on the catching fi re. try on a global scale, and executives like table.” Huawei has aggressively ex- Deutsche Telekom chief executive of- Not everyone is bullish on M&A panded its mid- to high-end fi cer Tim Hoettges and Vodafone’s Vit- prospects. There are more sellers phones and is going head to head torio Colao who are attending Mobile than buyers in the telecommunica- in Asia and Europe with Apple World Congress carry the weight of de- tions market, which may make it hard and Samsung in the premium cisions that will shape their companies for deals to get over the finish line, phone market. for years to come. Entner said. Moreover, political and Huawei’s new P10 line is ex- At the annual meeting known mainly regulatory uncertainty may compli- pected to be cheaper than the for gadget releases, Hoettges may run cate larger global deals, said Richard business-oriented Mate 9, with into SoftBank Group Corp founder Price, head of telecoms, media and new features including facial Masayoshi Son, who’s open to handing technology EMEA at Mitsubishi UFJ detection that can tell whether a control of US carrier Sprint Corp to the Financial Group. user is taking a selfi e or a picture Germans in a deal that would upend the One company that hit snags is Tele- with more people and select its US telecom market. fonica, whose sale of its UK unit O2 was camera mode accordingly. Vodafone’s Colao is working on a fi x blocked by regulators last year, and had Huawei, the world’s third- for an Indian operation that has lost to pull an IPO of its Telxius infrastruc- largest phone maker after Ap- billions, while navigating the next step ture unit before agreeing to sell a stake ple and Samsung, is seen by in a mobile-to-cable alliance with Lib- to KKR & Co this month. The Spanish industry analysts as having the erty Global – whose CEO Mike Fries company, which is trying to pay down best hope among rival Android will also attend. French consolidation debt, said this week that it could later smartphone makers of capitalis- may be taken up again later this year, seek an IPO of Telxius’s undersea cable ing on Samsung’s woes. and Spain’s Telefonica is still looking to Pedestrians walk past a Vodafone Group store on Oxford Street in London. Telecom executives from Vodafone to Deutsche unit or its tower division. Telefonica Richard Yu, chief executive of extract cash from its O2 unit in the UK. Telekom and Telefonica are headed to the industry’s annual get-together in Barcelona this week with more on their minds said it continues to weigh a stake sale or Huawei’s consumer business, “We expect healthy M&A activity than the latest handsets. IPO of O2. said last year he wanted to make in 2017,” said Joachim Sonne, who co- Deutsche Telekom’s Hoettges has Huawei the world’s No 2 phone heads the telecom, media and technol- against larger rivals from the US and to start after a US spectrum auction “Both companies have publicly stat- long advocated for consolidation in maker within two years even be- ogy investment banking unit in Europe, Asia. “What held back M&A in the US ends in April, the person said. Deutsche ed that there is an interest. If they came Europe, where about 100 landline and fore Samsung’s Note 7 meltdown. the Middle East and Africa at JPMorgan was the Obama administration,” said Telekom declined to comment. A Soft- up with something people wouldn’t wireless network providers operate. Huawei unveiled the P10 and Chase & Co. Roger Entner, an analyst at Recon Ana- Bank offi cial wasn’t immediately avail- be too surprised,’’ said Arun Agarwal, That would improve the industry’s cost larger P10 Plus at the annual After falling for two years, the value lytics. “The US still sets the tone when able to comment on its stance, which partner at London-based hedge fund structure as it competes on a growing Mobile World Congress in the of telecom-industry deals announced it comes to M&A, and a more lenient was reported earlier by Reuters. Altavista Investment Management, number of fronts with large overseas ri- Spanish city of Barcelona yes- globally in 2016 rose 34% to $266bn, administration will likely infl uence the At UK-based Vodafone, Colao has which owns stock in Liberty Global vals as well as Internet companies such terday. They feature dual Leica according to data compiled by Bloomb- rest of the world.” decisions to make on at least two and Vodafone. “Everyone wants to be as Google and Facebook. rear camera lenses, a 40% boost erg. Lower GDP growth is forcing the At the forefront of US speculation fronts. The company is in discussions more quad- play,” he said, referring to Christian Lesueur, head of telecom, in battery life and software auto- carriers to fi nd new ways to drive reve- is Deutsche Telekom’s T-Mobile US to merge its Indian unit with Idea Cel- internet, TV, wireless and fi xed phone media and technology for EMEA at UBS mation improvements. nue and earnings, Sonne said. Pressure unit, led by maverick CEO John Legere. lular, a deal that would create the coun- services. Group in London, points out that with While these features are simi- to consolidate is mounting as compa- When Sprint’s attempt to buy the as- try’s largest mobile-phone company Since sealing a joint venture in the many smaller, single-country deals lar to those found in the compa- nies have access to cash and attractive set was derailed in 2014, T-Mobile was and bolster a business Vodafone wrote Netherlands at year-end, Vodafone in Europe done, future activity will be ny’s top-of-line Mate 9 smart- fi nancing, he said, while fi nancial buy- behind in subscribers, sales and market down by more than $5bn last year. The and Liberty have been holding on-and- larger and more diffi cult to execute. phone, launched in November, ers display a growing appetite and ac- value. It’s now worth $52bn – 41% more partners may sell as much as 20% of the off discussions about more alliances or One answer would be to seek allianc- the new models are expected to tivist investors stir the pot. than Sprint – and has grown rapidly unit once the deal is completed, CNBC asset swaps, according to people famil- es with content companies, as AT&T is sell for as much as $100 less per In the US, where phone carriers have with products like free video streaming reported last week. iar with the situation. The likelihood attempting in its planned merger with device, if Huawei follows its tra- tried to merge with content players, and unlimited data plans for consumers Vodafone, the world’s second-larg- of such transactions or even a broader Time Warner. Such deals will likely be ditional pricing strategy. dealmaking may be aided by looser hooked on YouTube or Netfl ix. est wireless carrier, has also courted combination has increased with the looked upon favourably in Brussels, The company has yet to dis- regulation under President Donald SoftBank is open to all options, in- Liberty Global, John Malone’s Europe- potential solution in India and the re- Entner said. close the actual price of the P10 Trump. In Europe, authorities have cluding a partial or full sale of its 83% an cable-TV company. The two com- bound in Liberty’s shares, said the “If it’s a vertical merger, why deny line, which can also learn about suggested they’re willing to allow Sprint stake to T-Mobile, according to panies have complementary businesses people, who asked not to be named dis- it?” Entner said. “It’s a way for Europe users’ habits and automatically mergers that increase competition or a person familiar with the matter. Talks in major territories including the UK, cussing private matters. to create competitors that can stand up put the most frequently used better position the region’s companies with Deutsche Telekom are expected Ireland and Germany. While both sides are open to fur- to American companies.” apps in easy reach. Samsung withdrew the Gal- axy Note 7 last October after faulty batteries led some devices to catch fi re, leading to a loss Le Pen risk overdone for Lyxor as Amundi waits to buy more bonds of consumer trust, wiping out $5.3bn of operating profi t, and Bloomberg year yields to rise above lower-rated election risk. “The view is constructive “We have cut our position on France’s spreads on the notes should to tighten allowing Apple’s iPhone to over- London Ireland’s. The first round of voting but not immediately,” Jean Sayegh, government bonds to the benchmark if Le Pen loses, which is the central take it in sales. in April should bring clarity and, Paris-based head of fixed income level from overweight since Trump won scenario projected by the bank, potentially, opportunity, according to investments at Lyxor Asset said in a the US election because we expected strategists including Andrew Sheets For all the talk of turmoil in French the asset managers. February 22 phone interview. “We are similar political developments and and Phanikiran Naraparaju wrote in a Nokia sees growth bonds, some of the biggest investors are “We’ll be looking for some opportunity going to be adding but we haven’t higher yields to spread into France client note dated February 23. opportunities in waiting for an opportunity to buy more. closer to the first round to go long on started yet. The market could be and Italy,” said Eiichiro Miura, lead Societe Generale says investors are networks market Lyxor Asset Management says fears France, as at the end of the day we’re not overestimating the potential of change portfolio manager in Tokyo at Nissay “obsessed” with the risk of a Le Pen win. that this year’s presidential vote will negative on the country,” Isabelle Vic- especially in countries like France Asset Management, which oversees the Still, the French bank sees “little value Nokia sees demand for higher lead to a political upset that wrecks the Philippe, Paris-based fund manager, head where changes don’t happen very equivalent of $87bn. “It’s still too early in fighting market fears for now” and speed 4G network equipment euro bloc are overblown, and is looking of inflation and duration at Amundi, said quickly. Even if Le Pen wins the election, for dip-buying given the continued says the nation’s inflation-linked debt starting to recover this year, led to buy French debt once the market in February 21 phone interview. she won’t have the majority in the selloff and the French election ahead.” maturing July 2019 should perform well by Japan, the company’s chief settles. Amundi Asset Management is Amundi, which holds €1.9bn ($2bn) of parliament.” Still, many investors have a positive on most election outcomes, strategists executive Rajeev Suri said yester- keen to add to holdings when volatility French notes according to Bloomberg Vanguard, the world’s largest mutual-fund longer-term view on French bonds. including Ciaran O’Hagan wrote in a day as he announced a series of subsides, while Vanguard Group says data, is staying “neutral for the time company, is currently keeping a “cautious” “I will continue to hold a healthy note dated February 20. contracts with telecom operators. anti-euro candidate Marine Le Pen’s being,” said Vic-Philippe. approach and plans to reassess its allocation to French government “Our base-case scenario is that Marine Speaking at a news confer- prospects should fade at some point, Societe Generale’s Lyxor Asset, which position after the April vote, according to bonds and look to allocate tactically Le Pen continues to scare the market ence ahead of the Mobile World buoying bonds. says it holds €2.9bn of French bonds Nick Eisinger, a London-based strategist. as opportunity arises,” David Simner, but she won’t automatically be the next Congress in Barcelona, Suri also For now, the funds are avoiding fresh in the “non-passive” category, has The fund holds €4.4bn of French debt, London-based portfolio manager at president,” Vanguard’s Eisinger said in predicted a new wave of industry positions as French bonds bear the pared its exposure since the end of according to Bloomberg data. Fidelity International, said in e-mailed a February 20 phone interview. “The consolidation among telecom brunt of investor anxiety about a 2016 but says it may add to holdings The market may face more short- comments on Friday. “It is unlikely that more interesting time to think what you operators in the US and Indian political surprise similar to Donald between the April and May votes. In term volatility as election risks may Le Pen herself would follow through on are going to do with the French position markets in the course of 2017. Trump’s win and Brexit, with the latest the meantime, the fund sees German not be fully priced yet, said Eisinger. some of the more emotive rhetoric.” will be after round one. If people are “Noise about carrier M&A will polls showing rising support for Le bonds, especially five-year ones, and Asian investors, particularly those Morgan Stanley recommended last genuinely comfortable with Le Pen not heat up dramatically in United Pen. Concern about risks surrounding the debt of supranational agencies as from Japan, may be paring holdings in week that investors buy the nation’s getting in, then, maybe these bonds can States and India. The pent-up the election have caused French 10- appropriate investments to hedge the France heading into the vote, he added. notes heading into the vote as yield bounce back. The timing is tricky.” demand for action is there,” Suri said. Nokia and its rivals, Sweden’s Ericsson and China’s Huawei, have struggled lately as telecom operators’ demand for faster 4G mobile broadband equipment has peaked, and upgrades to next-generation 5G Over $100bn wasted to beat market, says Buff ett equipment are still years away. Nokia repeated that while it Bloomberg Buff ett, 86, has been making his once an outcast in the investment expected the global networks Seattle point for more than a decade, most vis- world as he eschewed riches to provide market to fall around 2% in 2017, ibly through his $1mn bet with Protege real value to American investors, Buf- it spotted growth opportuni- Partners. fett wrote. ties in markets such as North illionaire investor Warren Buf- The billionaire challenged the asset “In his early years, Jack was fre- America, India and Japan. fett devoted a substantial portion manager to pick a group of hedge funds quently mocked by the investment- “We believe that the (overall) Bof his annual letter to deepen his that it thought would beat an S&P 500 management industry,” Buff ett wrote. primary market in which we long-running critique of investment Index fund over 10 years. “Today, however, he has the satisfac- compete will be down again... fees. On Saturday, he gave an update: The tion of knowing that he helped millions but to be considerably better Over fi ve pages, he updated Berkshire bundle of hedge funds had compound of investors realise far better returns than last year,” Suri said, antici- Hathaway shareholders on a bet made annual returns of 2.2% in the nine years on their savings than they otherwise pating a slower rate of decline. almost a decade ago that a low-cost through 2016, compared with 7.1% for would have earned. He is a hero to them “Investments in 4G, particu- fund that passively tracked the S&P the index fund. The billionaire esti- and to me.” larly in advanced 4G technol- 500 Index would outperform a basket mated that about 60% of the gains that Buff ett’s remarks on indexing have ogy, will pick back up in some of hedge funds. He also laid anew into the hedge funds produced during that been jarring for many of his followers, key markets, such as Japan.” the rich for being suckered by Wall period were eaten up by management not least because he has spent a career Earlier this month, Nokia Street investment advice, which he es- fees. fi nding ways to generate market-beat- reported its profits for the final timated has wasted more than $100bn “That was their misbegotten reward ing returns at Omaha, Nebraska-based quarter of last year fell less than over the past ten years. for accomplishing something far short Berkshire. The billionaire threw a bone expected, helped by cost cuts “When trillions of dollars are man- of what their many hundreds of limited to that crowd in his letter, reiterating and the acquisition of Alcatel- aged by Wall Streeters charging high partners could have eff ortlessly – and his stance that it’s not impossible to Lucent. The Finnish company fees, it will usually be the managers with virtually no cost – achieved on beat the index. has reached a “landmark”, who reap outsized profi ts, not the cli- Buff ett: Flaying investment fees. their own,” he wrote. “There are, of course, some skilled 3-year deal with Telefonica to ents,” he wrote. “Both large and small Buff ett will almost certainly win the individuals who are highly likely to out- build networks in London, Suri investors should stick with low-cost of underperformance, hedge funds are dex funds have been on a tear. In 2016, wager when it ends on December 31. perform the S&P over long stretches,” said yesterday, adding that the index funds.” facing a revolt by endowments, pension passive strategies attracted $504.8bn in Proceeds will go to charity. he wrote. “In my lifetime, though, I’ve contract propels Nokia to over- While Buff ett was doubtful that the funds and other institutional investors new money, while active managers saw He also praised Jack Bogle, the identifi ed – early on – only ten or so come Ericsson as the leading wealthy would take his advice, his ar- that have decided they aren’t getting $340.1bn in redemptions, according to 87-year-old founder of Vanguard professionals that I expected would ac- network supplier in Britain. gument has gained steam. After years their money’s worth. Meanwhile, in- data from Morningstar. Group. The pioneer of indexing was complish this feat.” Gulf Times Monday, February 27, 2017 15 BUSINESS

Bundesbank official warns London banks Political, infl ation risks cloud against post-Brexit tricks eurozone economic growth

Reuters Reuters turn drives economies. Unemploy- London London ment during the fi nancial crisis ac- counts for some of the dive in retail sales seen on and off since 2008. UK-based banks that want to operate ver the years, eurozone eco- But joblessness, though improved, across the European Union after Brexit nomic growth has been a bit is still twice that of, say, the United must set up genuine operations, not Olike the Sirens in Homer’s States. ‘empty shells’ in EU countries, a Bundes- Odyssey: singing a song of promise, So if eurozone infl ation were to bank off icial said on Friday. only to end up pulling you onto the overshoot in the coming year, it may Andreas Dombret, the Bundes- rocks. well stifl e the very growth that en- bank board member responsible for Will it be diff erent this time? The gendered it. supervision, warned banks not to try strong growth registered in numer- Economists, however, also see a to trick regulators as they seek ways of ous data releases and surveys at the growth killer in the bloc’s politics. preserving their access to the EU after beginning of this year has surprised Many have long argued that the Britain leaves in two years’ time. many. eurozone cannot compete as a lead- “We will not accept any empty shells One eye-opening example was the ing economy without substantial or ‘letterbox companies’ where the busi- release of fl ash purchasing managers structural reform — particularly in ness eff ectively continues to be done indices for France, Germany and the the number two and three economies out of London,” he said at a London eurozone on February 21. after Germany. conference organised by zeb, a financial Of nine indexes, eight registered “It comes down to France and It- services consultancy. growth and six did so at a higher level aly stepping up a gear,” said Florian “I urge banks not to spend their than any economist polled by Reuters Hense, European economist at Beren- time inventing strategies to circum- had imagined. berg private bank. vent these requirements,” Dombret Not surprisingly, economists and But it is exactly in those two coun- said.”This includes seemingly creative policy-makers are now looking for tries where politics is threatening to solutions such as ‘fly-and-drive’ bank- fi rm proof that the eurozone’s appar- delay or derail the type of pro-growth ing, where bankers fly in daily from ent rebound this year is sustainable, structural reforms advocated by the London, or ‘dual hatting’, where transac- as well as noting a variety of poten- European Central Bank and many pri- tions are booked on the EU subsidiary tially destructive economic and po- vate sector economists. but in fact executed in London.” litical hazards ahead. In Italy, the chances of an elec- Under EU rules, banks licensed in There has not been, they say, a spe- tion this year have diminished, but one member state have ‘passporting’ cifi c infl exion point at which it can be the political turmoil surrounding rights to off er services across the entire said that the euro zone has recovered the resignation of prime minister bloc, but the chances of UK-based lend- and is off on a growth tear. Matteo Renzi is likely to set back ers retaining this access without shift- Rather it has been a slow simmer. major reforms until an election ing some operations from London are “The eurozone has been recovering takes place. “dim”, the German central banker said. steadily for three years now, helped It is France, however, that is seen They should not put great hope into by monetary policy stimulus, an end providing the biggest risk. the “equivalence” regime — agreeing to to fi scal austerity and a healthier fi - Two of the top three candidates are apply rules that are as strict as those in nancial sector,” said James McCann, viewed as economic reformists, but the EU — or a free trade agreement, he OECD economist at Standard Life In- they are up against Marine Le Pen, said. Even a transition period between vestments. the far-right National Front candi- Britain and the EU would be diff icult to “(It’s) a steady recovery which has date whose pledge to put France’s EU negotiate. been trundling on.” membership to a referendum could “For the financial industry, this means The numbers confi rm this. de-stabilise the region’s economy for that the current model of using London The European Commission notes years. as a gateway to Europe is likely to end.” that real GDP in the eurozone has Le Pen is not supposed to win, ac- Dombret said banks in London would grown for 15 consecutive quarters — a cording to polls. be deciding in the first half of this year sign of steady improvement. But neither was US President Don- whether to relocate some activities. But putting aside some of the lat- ald Trump or those in Britain wanting “I expect London to remain an est data, it has been steady rather than to leave the Europe Union. eminent global financial centre,” he spectacular. Greece’s debt problems will come “The risk of disappointment is that European Central Bank’s target on the “If a rising France joins a still strong added.”Nevertheless, I also expect a Economic growth is still running at back to bite the eurozone, there are higher headline infl ation decelerates back of monetary stimulus and eco- Germany at the core of Europe, the number of UK-based market partici- only around 1.6% annually, and most two main strands: infl ation and elec- real income growth and consump- nomic growth. economic and political outlook for the pants to move at least some business forecasters — from economists polled tions. tion,” said Paul Mortimer-Lee, glo- While far from hyper, such a level eurozone as a whole could improve units in order to hedge against all pos- by Reuters to the Commission itself, While the repetition of positive bal head of market economics at BNP has not been seen for four years, and considerably,” Berenberg economists sible outcomes of the negotiations.” reckon it will be about the same this January and February data in the Paribas. there has been a strong inverse path told clients. Financial firms are the biggest tax year. month ahead — for example, Ger- The preliminary reading of Febru- taken between infl ation and retail “(But) a President Le Pen would contributor of any sector to UK govern- So the question is whether the re- man industrial orders soaring again — ary eurozone infl ation, to be reported sales over the last fi ve years. spell the end of reform hopes for ment coff ers. cent data has turned this on its head. would fuel the eurozone takeoff story, on Wednesday, is expected to come In other words, rising prices can France and the EU for the next five Even before considering whether infl ation may hold the key. in at 2.0% year-on-year, rising to the hurt consumer spending, which in years.” Canada energy sector sidelined ECB can renew free loans to as Big Oil chases fatter profits

Reuters Hager cited capital costs and companies’ portfolios. Calgary, Alberta uncertain future prices as factors Day-to-day operating costs are banks if needed, says offi cial behind the wariness of sinking reasonably low and they produce funds into projects that take four for decades. Bloomberg Canada’s energy sector has fallen years to build. Two years ago, producer forecasts Frankfurt out of favour with international Shale plays need less investment, of 2026 oil sands production oil majors, who are scaling back produce cheaper oil and often totalled 6mn bpd, according to RS ambitions and walking away provide a fatter return within Energy research, up from 2.5mn he European Central from reserves in the ground months. bpd currently. Bank could consider re- there to focus on lower-cost and President Donald Trump is also Last year producers dropped Tnewing its off er of free higher-margin opportunities expected to loosen US regulations that 2026 forecast to 5mn bpd, long-term liquidity to lend- elsewhere. for oil and gas companies, while but RS Energy analysis suggests ers though it shouldn’t turn Billion-dollar bets on Canada’s the Canadian government has 3.5bn bpd is more realistic once it into a permanent measure, oil sands went sour last week for been planning a carbon tax. company finances are taken into a governing council member Exxon Mobil Corp and Conoco Statoil ASA sold its oil sands account. said. Phillips. project and leases to Calgary- The fate of growth in the oil sands Targeted longer-term refi - Between them, the two companies based Athabasca Oil Corp CNOOC- is primarily in the hands of the nancing operations (TLTROs) erased from their books nearly owned Nexen shut down its oil domestic Canadian producers like are “a very practical and very 5bn barrels of bitumen, the heavy, sands upgrader. Suncor Energy and MEG Energy, helpful instrument; I would viscous oil found under Alberta’s Royal Dutch Shell abandoned its which are still intent on developing be very fl exible regarding that boreal forest. 80,000 barrel per day Carmon their back-yard crude resource instrument in the future,” This has wiped about $250bn Creek project, taking a $2bn write- through improved technology Bank of Lithuania governor worth of oil from their reserves. down. and carefully planned small-scale Vitas Vasiliauskas said in a Conoco has put $2bn of Canadian “The oil sands are not as sexy expansions. Bloomberg interview in Viln- natural gas assets on the block. as they used to be,” said GMP Canadian reserve reporting rules, ius last week. “I still think that The companies joined the list of FirstEnergy analyst Martin which allow the use of price TLTROs are not an ordinary foreign players to take a hit in a King.”The focus is on the United forecasts from reserve evaluation monetary policy, that they re- Canadian energy patch where States — there are more immediate firms, help domestic oil sands main an emergency tool.” a two-year slump in global oil returns and lower drilling costs.” producers maintain a more The ECB is scheduled to prices has discouraged the In the days of $100 a barrel crude, positive outlook. off er the last of its long-term high investments needed to get and before the US shale revolution, The United States requires loans to banks next month, projects off the ground. the oil sands were a red-hot producers to report reserves raising the prospect that it While crude prices have recovered play for investors, off ering huge based on last year’s prices. might announce fresh opera- Vasiliauskas: Positive approach. to above $50 a barrel from a low of reserves, low decline rates and a Still, there are concerns even for tions to smooth its monetary $26 a year ago, that is not enough stable political climate. oil sands specialists. policy in a year of heightened minus 0.4% if the banks in- see right now - but if so, why ropean Union; US economic to make Canada’s oil sands Between 2005 and 2015 foreign These include low crude prices, political risk. crease credit provision. That not?” Vasiliauskas said at the policy under President Don- profitable. direct investment in Canada’s oil environmental opposition to The measure, while less means the ECB potentially Lithuanian central bank. Even ald Trump; and China’s debt Even some of Canada’s conventional industry more than doubled to building new pipelines and well-known than negative pays lenders to take its money. so, he stressed that “a healthy burden. energy plays are expensive at C$130bn ($99.19bn) from C$50bn, government carbon emissions interest rates and the €2.28tn The last allotment is sched- system in normal times should “It would be pretty pre- current crude prices. according to Statistics Canada data. caps. ($2.4tn) bond-buying pro- uled for March 23. The gov- be fi nanced by the markets.” mature,” he said. “We can see Canadian producer Husky Energy That slowed in 2015 as the crude Lack of pipeline capacity has in gramme, has been a key plank erning council, which has TLTROs could also provide some downside risks when we Inc, owned by Hong Kong billionaire price rout deepened. the past left crude bottlenecked of the institution’s stimulus said little on the programme a way to smooth the ECB’s look at the balance of risks.” Li Ka-shing, is weighing the sale of “You would assume it’s still in Alberta, but now that three eff orts to reinvigorate the eu- recently, next sets monetary exit from quantitative easing Euro-area infl ation acceler- some Eastern Canadian off shore slowing down based on lower major projects are finally moving ro-area economy. policy on March 9. when it decides to take that ated to 1.8% last month, near crude assets, people familiar with prices,” said economist Carlos forward there are doubts about Banks have borrowed about Vasiliauskas, 43, said the step. Policy makers are start- the ECB’s goal of just under the matter told Reuters. Murillo of the Conference Board of whether there will be enough €570bn so far in the TLTROs, TLTROs could be renewed ing to think about how they 2%. Vasiliauskas said that was The oil sands have caused energy Canada. RS Energy Group analyst volume to fill them. which provide them with li- if, for example, the credit might communicate such a largely due to energy costs companies the most pain. Devon Rob Bedin noted that Suncor Enbridge Inc CEO Al Monaco said quidity for as long as four outlook worsens. While the move without destabilising and he’s watching measures Energy Corp Chief Executive Energy’s Fort Hills, the last of the two pipelines should suff ice based years if they intend to use it ECB judged at its last meet- markets, while signalling that such as core infl ation, wages Off icer Dave Hager summed up oil sands mega-projects, needs US on the current supply outlook, and for loans to companies and ing that credit standards are they’re not yet ready to hold and services prices to assess the problem this month when crude prices around $100 a barrel the latest cuts in reserves may households. An initial eight broadly stabilising and de- any formal talks on the topic. whether the pickup will be discussing the Pike oil sands to break even, compared with $40- make it harder for projects like quarterly operations started mand is expanding, it also Vasiliauskas agreed that it’s sustained. project, which awaits a company $45 a barrel for shale plays in the TransCanada Corp’s Keystone XL in 2014 and another four were said those conditions are too soon to discuss tapering or “I see positive signals, I see decision later this year. Midland Basin, Texas. to find enough shippers. added in 2016 on more favour- significantly supported by changes to the central bank’s light in the tunnel, but I don’t “We like the project a lot, but...it’s While oil sands growth is expected “One pipeline is within (oil able terms. The latest pro- monetary stimulus. forward guidance. He cited see sustainability yet,” he said. a little bit lower return than our to slow dramatically, production is sands) projects already under gramme provides cash at the “If there would be a need risks including elections in “We avoided a defl ationary well-oriented programs here in not expected to drop. construction,” said University main refi nancing rate, cur- for it, why not? There could be the Netherlands, France and situation but we still have a the US,” Hager told analysts on an Projects there, once built, are of Alberta energy economist rently zero, and reduces that for example drastic changes Germany; the UK’s negotia- long way to go before reaching earnings call. viewed as a useful addition to Andrew Leach. to as low as the deposit rate of in lending - which we don’t tions over its exit from the Eu- our goal.” Monday, February 27, 2017 GULF TIMES BUSINESS Qatar producer price index surges 6.4% in December 2016

By Santhosh V Perumal received by the domestic producers from 2006, when the Qatari economy and natural gas and 0.4% in stone, sand chemical products and fibres. Paper and paper products’ prices Business Reporter for their output – saw 8.1% surge year- was much smaller than today and the and clay prices. The manufacturing sector PPI had were unchanged both month-on- on-year in December 2016 primarily range of products made domestically The manufacturing sector, which has seen 2.6% increase year-on-year month and year-on-year in December on strengthened prices of crude and much narrower. a weight of 26.8% in the PPI basket, in December 2016 on account of 2016. Ahead of oil producers output cut deal natural gas, other chemical products The PPI for mining, which carries the witnessed 2.1% rise in its index month- 18.5% expansion in the price of other The utilities group, which has a mere from January 1 this year, crude oil prices and fibres, refined petroleum products maximum weight of 72.7%, saw its on-month in December 2016 because chemical products and fibres, 17.2% 0.5% weightage in the PPI basket, strengthened, which had its reflection and rubber and plastics products, said group soar 8.6% month-on-month in of 7.3% increase in the price of basic in juices, 8.2% in refined petroleum saw its index gain 2.1% in December on the Qatar’s producer price index the figures released by the Ministry of December 2016 on the back of 8.7% metals, 3.2% in juices, 2.1% in refined products, 6.5% in rubber and plastics 2016 against that in November 2016 (PPI), which surged 6.4% month-on- Development Planning and Statistics increase in the price of crude petroleum petroleum products, 1.8% in dairy products, 3.2% in dairy products and mainly on 6% increase in the price of month in December 2016, mainly on (MDPS). and natural gas and 0.2% in stone, sand products, 0.8% in basic chemicals, 0.4% 2.8% in beverages. electricity, while there was 2.9% fall in higher prices for crude and natural gas MDPS had released a new PPI series in and clay. in beverages and 0.2% in grain mill and However, prices of basic chemicals, water prices. and basic metals, according to off icial late 2015. With a base of 2013, it draws The PPI for mining witnessed the other products. basic metals, cement and other non- However, the index had shrunk 4.2% data. on an updated sampling frame and new maximum expansion 11.4% year-on-year Nevertheless, there was 3.6% metallic products and grain mill and year-on-year in December 2016 as there Qatar’s PPI for the industrial sector – a weights. in December 2016 as there was an 11.4% shrinkage in the price of rubber and other products had fallen 8.5%, 3%, 1.1% was a 7.1% decline in the electricity price measure of the average selling prices The previous sampling frame dates jump in the price of crude petroleum plastics products and 0.6% in other and 0.7% respectively. and 0.3% in the price of water. ‘Non-oil investments, recovering oil prices to aid Qatar growth’

By Peter Alagos Business Reporter

ontinued investments in non- hydrocarbon sectors, alongside Al Khaliji’s latest achievement comes on the heels of the Crecovering oil prices, are expected bank’s 10th anniversary celebration to aid Qatar’s economic growth and dis- posable income, an offi cial of Alpen Cap- ital has said. Citing IMF fi gures, Alpen Capital In- vestment Bank (Qatar) managing direc- tor Sanjay Bhatia said Qatar’s GDP per Al Khaliji named capita is projected to expand at an an- nualised average rate of 6.3% between 2016 and 2021, which points towards the growth prospects of the country. Qatar’s ‘Fastest “Given the recent drop and fl uctua- tions in oil prices, the Qatar economy, like the other GCC economies, has been subdued. Over the last few weeks, oil growing private prices have been relatively stable, which has provided a positive impetus to the overall sentiments. We are now seeing an improvement in the market senti- bank’ for 2016 ments and expect to see a surge in over- all business activities. n recognition of its out- mination of the bank’s relentless “We remain cautiously optimistic on standing achievements and eff orts to continuously develop the medium-term growth; however, for Isolid performance, Al Kha- its off erings and services, with 2017, we expect the Qatar economy to re- lij Commercial Bank (Al Khaliji) the aim of providing its premium main subdued in the fi rst half and expect has been named Qatar’s ‘Fast- and private banking clients with the activity and the general market senti- est growing private bank’ for an exceptional customer experi- ments to improve thereafter,” Bhatia told 2016, by the London-based In- ence in the country and across Gulf Times. ternational Finance Magazine the region. Asked about other economic head- Bhatia: Cautiously optimistic on medium-term growth. (IFM). Al Khaliji’s latest achieve- winds in 2017 aside from lower oil rev- The prestigious IFM award ment comes on the heels of the enues last year, Bhatia said the fall in oil rentals for some of the businesses, but tion, which will also provide the much ket sentiment,” as well as curbed gov- adds yet another coveted title bank’s 10th anniversary cel- revenues aff ected the scheduled projects overall will marginally impact the eco- required impetus to future growth pros- ernment spending had aff ected Qatar’s to the slew of recognitions and ebration, which highlighted the across various sectors, adding that aus- nomic growth in 2017,” he said. pects. cross-regional M&A activities (inbound trophies that Al Khaliji acquired many milestones it has been terity measures undertaken by the Qatar Bhatia said changes in the govern- “Sectors such as healthcare and edu- and outbound). throughout the year, including able to cross over a decade of government to manage the situation also ment’s policies, especially to assist cation are expected to grow in Qatar on “We are, however, seeing a lot more recognition for ‘Best premium excellence, profi tability and saw a cutback in infrastructure spending industrial growth and infrastructure the back of government funding and M&A activity within Qatar…we expect bank service’, ‘Best private bank growth. and project delays. development, as well as promotion of increased private sector participation. to see a lot more on the M&A activity in service’ and the ‘Best private Also, it follows the market- “This has also led to tightening of li- businesses in non-hydrocarbon sectors Other factors such as rise in population Qatar along with consolidation across bank in Qatar’ award, by various leading status the bank has won quidity, and increased cost of funding “will defi nitely provide a boost to the and higher disposable incomes will con- select sectors. regional and international pub- through a series of initiatives including increase in the Qatar Central Qatar economy.” tribute to the growth of the economy,” he Qatar businesses are also seeking lications. that have made a tangible dif- Bank benchmark rates. We are seeing a “With the launch of special economic said. funding support from regional and in- The distinguished titles ference in the local and regional price correction in the real estate sector, zones such as Manateq, we see a growing Bhatia also noted that fl uctuations in ternational banks given liquidity and in- claimed by Al Khaliji are a cul- banking sector. which could have a positive impact on push towards private sector participa- oil prices and a “general subdued mar- creased pricing,” he added.

Goic to hold training Ooredoo’s enhanced Offi ce 365 service on green industries The Gulf Organisation addition manufacturing for Industrial Consulting the latest products (Goic) will organise based on green helps Qatar’s businesses go digital a training on ‘Green industry technologies Industries’ from April and success stories 25 to 27 in Doha under in the field of green oredoo has launched an Ooredoo Qatar chief operating the patronage of the industries. enhanced Offi ce 365 serv- offi cer Yousuf Abdulla al-Kubaisi Ministry of Municipality Goic said the training Oice designed specifi cally said: “Offi ce 365 is an important and Environment. is developed for the for small companies as part of the tool for companies in Qatar, as they Goic said the training is staff of ministries company’s ongoing eff orts to help can boost their business without part of its ‘Training and of energy and Qatar’s businesses go digital. the hassle of having to buy and in- Capacity Development’ industry in the GCC, Offi ce 365 is the “best-of- stall software. (TCD) programme’ organisations and breed” productivity suite by Mi- “A major part of our focus for for 2017 that includes authorities operating crosoft, which includes profes- 2017 is enabling Qatar’s business- a number of courses in the fields of energy, sional e-mail, storage, enterprise es to do business digitally, taking aimed at developing industry, environment video conferencing, and document their services to a global audience skills of industrial staff and industrial cities processing tools such as Word, Ex- and empowering their employees and helping them throughout the GCC, cel, and PowerPoint. and customers with self-service keep up with the latest and chambers of It provides a modular approach and self-care options. developments in this commerce, in addition for companies, so that they can The enhanced Offi ce 365 service sector. to representatives of build their own solution designed will provide a vital tool in this area, It also aims at the industrial private specifi cally to meet their daily as it off ers small businesses tools introducing strategies sector and industrial business needs. once reserved to big corporations, adopted by global companies. With the new Ooredoo Office at a fraction of the cost.” industries to limit Goic off ers a number 365 business packages, compa- This upgrade is one of a number pollution. It also sheds of training workshops nies can choose a host of optional of service revamps planned for light on clean industry to various sectors add-ons, making it easier for the company in 2017, as Ooredoo technologies that according to their them to upgrade and adapt their strives to be the ICT provider of reduce pollution and specific needs through solution. choice for businesses in Qatar. harmful eff ects to the the TCD. Depending on the requirement, Ooredoo has already seen great environment. The objective is to customers can opt for email ar- demand and momentum for the During the training, increase individual and chiving, Microsoft Offi ce suite, Offi ce 365 service, as companies in the participants will organisational skills in remote device management, in With the new Ooredoo Offi ce 365 business packages, companies can choose a host of optional Qatar embrace the go-digital solu- understand how to the industrial sector addition to 50GB of e-mail stor- add-ons, making it easier for them to upgrade and adapt their solution tion from Ooredoo. develop production of GCC countries and age per user, 1TB of ‘OneDrive’ For full details of all plans, pric- methods, factory Yemen. Interested storage, Sharepoint, Ransomware able on a monthly billing option, the offi ce with them wherever they and in real-time with colleagues. It ing, and off ers available for busi- operation procedures, parties can register via Protection and Email Migration with no yearly commitment. are, managing business commu- supports mobile productivity, mo- ness customers, visit an Ooredoo and how to reduce the www.goic.org.qa or Support. The service is particularly use- nications across multiple devices bile collaboration and mobile data Shop, call the business team on risk of industrial waste Facebook, Twitter, and The new Ooredoo Offi ce 365 ful for companies with a mobile and enabling employees to create protection, with a host of security 0800 8000, or go to www.ooredoo. on the environment, in LinkedIn. business packages are also avail- workforce, enabling them to take and edit documents on-the-go features. qa for more info.