Business 13

SUNDAY 18 JULY 2021 Ireland determined to push for 12.5% corporate tax rate I‘m making the case for 12.5 percent. It has been a key feature of our economic policy now for decades, and I’m so committed to it, that I decided that I could not enter into the agreement.

Paschal Donohoe Finance Minister of Ireland Business | 15 QSE 10,696.30 -79.67 (-0.74%) FTSE 100 7,008.09 −3.93 (0.056%) DOW 34,719.68 −267.34 (0.76%) BRENT $73.28 (-0.20)

Qatar realty sector shows signs of recovery Nakilat best avenue THE PENINSULA — at 56 percent, up 10 percent Domestic tourism has YoY. There was also a recovery for investors in Hotel occupancy and Average primarily led occupancy of in the ADR as hotels witnessed Daily Rates (ADRs) have hospitality properties with an increase of 26 percent com- improved in during the average occupancy during pared to the same period last Qatar’s LNG growth second quarter compared to year. same quarter in 2020 due to the the first two months of The average capital value 2021 was estimated at 56 DEEPAK JOHN boost from growing domestic of a residential unit stood at THE PENINSULA given the long-term nature of tourism, according to the percent, up 10 percent QR7,238 per sq m (QR672 per its charters, it added. second quarter 2021 review YoY. There was also a sq ft). More specifically, apart- Nakilat is the best avenue for According to the report, issued by leading regional recovery in the ADR as ments were QR10,350 per sq m equity investors to participate QGTS’ fleet continues to provide consulting firm ValuStrat. The (QR960 per sq ft) and villas in the long-term growth in the company with stable, con- real estate report noted a surge hotels witnessed an were QR5,689 per sq m (QR529 Qatar’s Liquefied Natural Gas tractually sustainable cash flow in transactions volume and increase of 26 percent per sq ft). Seven locations (Al (LNG) sector, said the QNB that allow for a healthy residual value compared to 2020 and compared to the same Wakrah, Ali, Umm Financial Services (QNBFS) income stream for equity 2019 (pre-COVID). Rents of period last year. Softer quarterly declines Salal Muhammad, , Al report, yesterday. investors after providing the warehouses also expanded were recorded for prices and Dafna, Old Airport and “We remain bullish on debt service. Moreover, the during the quarter. rents of villas. Qatar’s ValuStrat Muaither) experienced a mar- Nakilat and consider it as the 40-year life of QGTS’ vessels Pawel Banach (pictured) Price Index (VPI) a valuation- ginal change of less than 0.5 best avenue for equity investors versus maximum debt life of 25 – ValuStrat’s General percent over two years based index, that tracks the percent since the previous to participate in the long-term years (last debt maturing 2033), Manager, Qatar commented (pre-COVID-19)”. change in capital values for a quarter. The highest quarterly growth expected in Qatar’s LNG continues to create refinancing “At the beginning of the “Moreover, there was an representative fixed basket of depreciation of 4.7 percent in sector. Since we upgraded the opportunities to increase fleet second quarter of 2021, improvement in the per- properties, showed an overall capital values was observed in stock to an outperform on size. “Thus, we think further restrictions were re-imposed formance of hotel, villa, and 5.9 percent annual fall in capital the Ain Khaled cluster. November 10, 2020, Qatar Gas deals in LNG ships and floating limiting mobility amid rising warehouse markets. This is evi- values for the residential sector, Housing stock totalled Transport Company Ltd (QGTS) storage regasification unit’s COVID-19 cases. Operating dence of improved buyer con- with a marginal quarterly 306,515 units with the addition share price has appreciated by (FSRU) are likely,” added the capacities of commercial fidence stemming from several decline of just 1.1 percent. of 1,800 units during the second 17 percent, significantly beating report. outlets were reduced and factors: increasing competi- As of April 2021, 65 hotels quarter of 2021. Projects the QE Index’s increase of 6 In the near-term, addition dine-in at F&B outlets was tiveness of properties, the intro- were designated for travellers handed over during the quarter percent as Nakilat was re- of four LNG vessels (one added banned. However, the con- duction of policies facilitating for quarantine upon return to were situated in Lusail (Fox included in the MSCI EM Index,” in early January followed by straints did not hinder the foreign investment, normali- Qatar. Domestic tourism has Hills, Erkhyah and Marina Dis- noted the report. one each in second half of 2021 recovery of the real estate sation of relations with GCC primarily led occupancy of hos- trict), The Pearl (Al Mutahidah Irrespective of the volatility and in early 2022) via Global market in Qatar. The volume countries, and positive rein- pitality properties with average towers and Abraj Bay Tower 2), of the LNG shipping market, Shipping, should help earnings of transactions surged 46 forcements from holding of occupancy during the first two Al Dafna, Luqta, Umm Ghu- Nakilat’s business should growth in 2021 and 2022, it percent over one year and 34 World Cup in 2022,” he added. months of 2021 was estimated wailina and New Doha. `P14 remain relatively unaffected said. `P14 14 BUSINESS SUNDAY 18 JULY 2021 Bond markets pointing to slowdown of US economic recovery

THE PENINSULA — DOHA QNB ECONOMIC diminishing. This process accel- US Treasury yield spread probably driven by pandemic- COMMENTARY erated after the most recent Fed related supply constraints for The Great Pandemic Reflation Open Market Committee (10-year versus 2-year note, %, per year) goods. (2020-21), a stimulus-induced (FOMC) meeting in June. Then, A flattening yield curve recovery that brought the US 2021, bond yields pointed to policymakers communicated (short rates up and long rates economy back to life from the continuous tailwinds for the US both their willingness to start down) suggests that inflation is depths of a sharp downturn, will economy. The benchmark discussing a reduction in quan- only a short-term worry. In fact, likely go down in history as one spread between 10-year and titative stimulus and projections 10-year bond implied inflation of the most dramatic macroeco- 2-year Treasuries widened, for two policy rate hikes in expectations (breakeven nomic events on record. After producing a healthy steepening 2023, coming from zero hikes inflation rate) have gone down the US nominal GDP collapsed of the yield curve. This was a projected in March 2021. substantially by 25 basis points by more than 33 percent annu- positive sign for the economic In our view, bond markets last month to stand at a con- alized in Q2 2020, it rebounded expansion as lower yields at the are sending two messages about tained 2.3 percent, significantly strongly, printing annualized short-end of the curve implied the US economy. below the current consumer nominal growth rates of 38 monetary stimulus and higher First, bonds are predicting price inflation of 5 percent for percent, 6 percent and 11 yields at the longer-end of the that US growth has probably May 2021. Hence, bond markets percent in the three following curve implied stronger growth already peaked in Q2 2021, after believe inflation is going to quarters to Q1 this year. or inflation expectations. several quarters of hyper- moderate moving forward. In the process, US markets Moreover, the price ratio strong activity. In other words, All in all, bond markets are enjoyed extraordinary rallies, between high-yield corporate bond markets are pointing to a sending a strong contrarian with equity indices staging bonds and US Treasury bonds significant slowdown of the US message to investors and strong performances and increased, suggesting elevated economic recovery, with economists, challenging the cyclical commodities paring risk appetite from bond nominal growth rates set to dominant narrative of con- previous losses or even making investors or a “risk-on” envi- return to a more normal tinued strong growth and new highs. ronment for months. ballpark of around 4 percent unanchored inflationary pres- Importantly, macro-sen- After March 2021, however, per year. This insight from bond supply, personal income and investors in recent months. sures in the US. It is also indi- sitive bond markets confirmed bond markets started to act dif- markets seems to be supported retail sales growth. This is also Second, the bond market is cating that the Fed should be the positive backdrop. In fact, ferently, with the yield curve by a plethora of other data, consistent with a more risk discounting current inflationary cautious not to withdraw from August 2020 to March flattening and risk appetite including weakening money averse stance from bond pressures as merely temporary, stimulus too early. Qatar realty sector shows signs of recovery Nakilat best avenue for investors Turkish Airlines in Qatar’s LNG growth adds extra flights FROM PAGE 13 the last 12 months when com- centres was approximately 1.93 FROM PAGE 13 The median residential asking pared to villas, as quarterly falls million sq m GLA. Msheireb Gal- for Eid Al Adha rent fell 5.1 percent over the past in median rent were easing,” said leria officially opened comprising The report highlighted, in terms of catalysts, we 12 months and 1.1 percent since Anum Hasan, Market Research Monoprix as an anchor and at continue to believe expansion of Qatar’s LNG output ANADOUL — ANKARA the first quarter of 2021. Quoted Manager for ValuStrat. least 30 pop-up stores. Leniency from 77 MTPA TO 126 MTPA is a significant driver. median rents for apartments fell Office stock was estimated at in restrictions and promotions Currently our model does not assume any fleet Turkish Airlines, the country’s flag 1.2 percent (Quarter-on-Quarter) 5.6 million sq m GLA with com- offered at malls has been growth and we will incorporate such expansion once carrier, has added additional flights QoQ, while for villas asking rents pletion of 76,000 sq m GLA observed driving footfall during more details become available. to meet domestic demand for the slightly reduced by 0.5 percent during Q2 2021. The citywide the quarter. However, regional/ “We note every vessel (@100 percent) adds Muslim holiday of Eid Al Adha, or the QoQ. Despite a continued influx median asking rent for a typical community malls and unor- roughly 1 percent to QGTS’ target price and we Feast of the Sacrifice, which falls next of supply in The Pearl and Lusail, office in the city stood at QR76 ganised retail spaces recuperated should hear more about carrier selection by end week. these areas experienced a rela- per sq m, declining 2.6 percent at a slower rate compared to of 2022. We foresee significant upward revision Turkish Airlines announced in a tively softer annual decline in compared to Q1 2021 and 7.6 super-regional malls. The median to our estimates and price target once we statement that it will add 427 domestic rents due to faster absorption percent over a year. Take-up of monthly asking rent for shopping factor in this expansion,” the report flights starting Friday through July 25. compared to secondary office space has been estimated centres shrunk 2.3 percent com- added. Amid rising interest in holidays locations. to be slow compared to the influx pared to the first quarter of 2021. Nakilat’s successful fleet expansion bears strong with the normalization process “The bulk of the supply is of supply, with oversupply esti- However, overall street retail testament the company’s continued commitment from the pandemic, the company coming in the form of apartments, mated to exceed 2 million sq m rents fell 1.8 percent QoQ. towards maintaining its leadership in energy trans- said the additional flights will while we see comparatively mar- GLA. Mwani Qatar reported a surge portation, while remaining fully compliant with all depart from the country’s most ginal increases in the number of Due to restrictions on inbound of 22 percent YoY in Twenty-Foot health and safety guidelines. popular airports – Istanbul, Tur- villas. This might partially explain tourism, international arrivals Equivalent Units (TEUs) during H1 Additionally, the Nakilat group continued to key’s largest city by population, the a new trend we have experienced totalled 76,130 visitors during the 2021 in three ports: Hamad, strengthen its value proposition, with its ship capital Ankara, and the north- since beginning of the pandemic first five months of 2021, less by Ruwais and Doha. Overall, repair, offshore fabrication, towage, and other western provinces of Bursa and last year, where declines in villa 86 percent compared to the same average asking rents for dry/ maritime services remaining full operational and Kocaeli – to 30 airports around the rents were less compared to period in 2020. ambient warehouses was QR43 contributing towards the company’s vision to be country. apartments. Moreover, the There was no addition of per sqm, increased 5 percent a global leader and provider of choice for energy Turkish Airlines currently operates average quarterly drops for organised retail space during Q2 compared to Q1 2021 and 1 transportation and maritime services, as well as flights to 254 destinations in 100 apartment rentals widened over 2021. The stock of shopping percent over one year. Qatar’s 2030 vision. countries. SUNDAY 18 JULY 2021 BUSINESS 15 Kazan Summit to gather Russian, Ireland determined Islamic world economy professionals to push for 12.5% ANADOLU — ANKARA The Kazan Summit 2021 Commenting on the event, subjects of partnership finance, corporate tax rate aims to strengthen trade Taliya Minullina, head of the halal industry, youth An international economic and economic, scientific- Tatarstan Investment Devel- diplomacy, medicine, sports, BLOOMBERG summit to pursue ways for opment Agency, said the creative industries, devel- enhancing ties between Russia technical, social, and summit revises and expands its opment of the export, business, Ireland’s finance minister reit- and the Islamic world will be cultural ties between agenda every year. and investments. The exhi- erated his commitment to held in Kazan, the capital of Russia and OIC member “The interaction with the bition of “Russia Halal Expo” retaining the nation’s long Russia’s republic of Tatarstan, Islamic world is a promising and the Machine Building held corporate 12.5 percent on July 28-30. countries. investment direction for the Cluster Forum will be held on tax rate, amid reports the The Kazan Summit 2021 Russian Federation,” Minullina the sidelines of the summit. government may accept an aims to strengthen trade and stressed. Being a business In addition, the OIC coun- increase as part of a interna- economic, scientific-technical, development in Russia. platform for networking and tries Young Entrepreneurs tional agreement brokered by social, and cultural ties between The 12th edition of Russia- presenting economic oppor- Forum and the Young Dip- the Organization for Economic Russia and the Organization of Islamic world: KazanSummit tunities and investment lomats Forum, the “Sbertalk” Co-operation and Devel- Islamic Cooperation (OIC) 2021 will gather representatives potential of Russia, the summit event for the improvement of opment. member countries. of international organizations, will be chaired by Tatarstan’s Islamic financial instruments Ireland has not signed up The three-day event, of public authorities, financial President Rustam under the sponsorship of to a plan for a minimum tax economic policy now for which Anadolu Agency is the institutions, embassies, parlia- Minnikhanov. Sberbank, and a fashion show rate of at least 15 percent decades, and I’m so com- global communication partner, mentarians, investors and busi- The event, of which called Modest Fashion will be backed by 130 countries for mitted to it, that I decided that also targets to promote the nessmen, top managers of keynote is “conscious con- held on the sideline of the corporations along with rules I could not enter into the Islamic financial institutions’ Russian and foreign companies. sumption,” will discuss the gathering. to share the spoils from mul- agreement.” tinational firms like Facebook Donohoe will launch a Inc. and Alphabet Inc.’s public consultation next week Google. The government may on the agreement “as cur- US retail sales rise in June against expectation give up its long held 12.5 rently drafted” to “brief our percent tax rate and sign up business community stake- ANADOLU — ANKARA percent decline on a monthly level. Despite the strong figures, rising to the OECD plan in October, holders in Ireland, regarding The annual increase was 18 percent, inflation has become a problem in American the Irish Examiner newspaper what is there at the moment US retail sales increased in June despite the compared to June 2020. “Clothing and economy. reported on Wednesday. and how things could change,” expectation of a decline, according to clothing accessories stores were up 47.1 Consumer prices rose 0.9 percent in “I‘m making the case for he said. The fact that he has figures released by the Census Bureau. percent from June 2020, while food services June on a monthly basis and soared 12.5 percent,” Paschal not signed the agreement yet Retail sales came in at $621.3 billion, up and drinking places were up 40percent 5.4percent on an annual basis. Producer Donohoe (pictured) told RTE is “evidence of our com- 0.6 percent from the revised level of from last year,” the agency said in a prices were up 1 percent and 7.3 percent, Radio on Thursday. “It has mitment to standing by where $617.9bn in May. Analysts expected a 0.4 statement. respectively. been a key feature of our we are,” he added. EU exports Turkey: Over 9,500 new and imports rise in May businesses start in June ANADOLU — ANKARA ANADOLU — ANKARA Some 1,226 companies went out of business last EU exports and imports both A total of 9,560 new month, up 120 percent rose sharply on a yearly basis companies were established in May, by 32.8 percent and in Turkey in June, up 113.4 from the previous 33.7 percent respectively, percent on a monthly basis, month, according to data official figures showed . the country’s top trade body released by the Turkish The 27-member bloc’s said. exports totaled €172.3bn Some 1,226 companies Union of Chambers and ($203.5bn), while imports went out of business last Commodity Exchanges amounted to €164.4bn, said month, up 120 percent from the statistical authority the previous month, according (TOBB). Eurostat. The union’s trade to data released by the Turkish balance posted a surplus of Union of Chambers and Com- retail trade, construction and €7.9bn. modity Exchanges (TOBB). manufacturing. A view of the July 15 Martyrs Bridge, formerly known as the Bosporus Bridge, and surrounding buildings Intra-EU trade also soared It said 85.8 percent of the In June, 1,293 companies and skyscrapers, in Istanbul, Turkey. 41.6 percent to €276.9bn in the new firms were limited com- with foreign partners were month compared to May 2020, panies and 12.9 percent were established. and 6.7 percent in the Aegean data. annual rise. one of the heights of the coro- joint-stock companies. A majority of the new com- province of Izmir. A total of 54,669 new com- In this period, 5,433 com- navirus pandemic. The top three fields of panies, 39.7 percent, opened During the month, 120 panies were set up in Turkey panies were liquidated, a 5.5 During the first five operation among new com- in Istanbul, followed by 9.4 cooperatives were also over the first six months of this percent decrease compared to months of this year, the EU’s panies were wholesale and percent in the capital Ankara, launched, according to the year, marking a 24.9 percent the first six months of 2020. exports rose 12 percent to reach €860.2bn, while imports climbed 11 percent to reach €791.1bn. Ambani’s Reliance to buy 67% of Just Dial for $767m China was the bloc’s main trade partner this January- BLOOMBERG to the company’s last closing price of than $30bn by selling stakes in its digital everything from catering to dance May, with €92.5bn in imports Rs1,072.70 per share, data compiled by and retail units last year, has been classes and electronics repair shops. Just from the union and €174.6bn Reliance Industries Ltd. will buy a Bloomberg show. Further, Reliance aggressively acquiring local firms to Dial’s shares have rallied 65 percent this in exports. controlling stake in local search engine Retail will acquire 13.1 million shares take on rivals such as Amazon.com Inc. year. Country-to-country trade and e-commerce marketplace, Just Dial from Mani at a price of Rs1,020 and will and Walmart-owned Flipkart in a bid It offers services in more than 250 balances indicated that the EU Ltd., for as much as Rs57.2bn ($767m) as also make an open offer to investors at to dominate India’s booming e-com- Indian cities and claims to have a had incurred the largest deficit Mukesh Ambani’s conglomerate looks Rs1,022.25 a share, according to merce sector. database of 30.4 million listings as of with China – €82.1bn – and to bolster its digital offerings. exchange filings. Reliance group acquired a majority March 31, according to its website. It pro- the highest surplus with the US India’s most valuable company plans “The investment in Just Dial under- holding in Urban Ladder, an online fur- vides information across platforms that – €66.9bn – over the same to acquire 66.95 percent stake in Just Dial lines our commitment to new commerce niture seller, in November following include a website, mobile apps, texts and period. through its arm, Reliance Retail Ventures by further boosting the digital ecosystem stake purchases in Zivame, a lingerie phone. Turkey was the union’s Ltd. It will use a combination of prefer- for millions of our partner merchants, maker, and Netmeds, a digital pharmacy. As Reliance’s telecom firm gears up sixth-largest trade partner ential allotment, a secondary purchase micro, small and medium enterprises,” Established in 1996 — two years to sell its much-awaited budget smart- during the five-month period, from founder V S S Mani and an open Isha Ambani, director at Reliance Retail, before Google was incorporated — Just phone, co-developed with Alphabet with €32.2bn in imports from offer for up to 26 percent. The first two said in a statement. Dial began by offering users a simple Inc.’s Google, apps such as Just Dial will the union and €30.6bn in will cost Rs35bn and the open offer as The latest transaction gives the phone search service where users called come in handy to lure buyers. Many of exports. much as Rs22.2bn. retail-to-refining conglomerate a to locate the nearest hairdresser, these apps are expected to be pre-loaded On the eurozone side, Just Dial’s board Friday approved the foothold in the gig economy and adds handyman to install a TV or florist to into this affordable 4G device that will extra-EA exports jumped 31.9 preferential issue of 21.2 million shares to its bouquet of digital offerings, which deliver a bouquet. debut in India on September 10. Mani percent to €188.2bn in May, at Rs1,022.25 each to Reliance Retail for includes online retail, music, video The Mumbai-based search service will continue to be the managing director while the trade surplus was aggregate Rs21.6bn in cash. The purchase streaming, gaming and financial and marketplace now offers local infor- and chief executive of the company after €7.5bn. price represents a 4.7 percent discount services. Reliance, which raised more mation and buying options for the transaction. Asian LNG prices rise as summer demand heats up: Al Attiyah Foundation

THE PENINSULA — DOHA growth in the United States, financial incentives to reduce China and India. emissions for heating buildings. Oil prices were little changed However, the rise in coro- Both the UK NBP and Dutch TTF on Friday and ended the week navirus cases related to the prices were slightly down on the lower, sapped in volatile trade highly contagious Delta variant week but were still sitting at by expectations of growing could trigger new lockdowns record seasonal highs. Recent supplies just when a rise in that would likely reduce recent price volatility in Europe is coronavirus cases could lead to bullish oil demand forecasts. In expected to continue next week lockdown restrictions and the United States, Los Angeles with gas markets watching depressed demand. On Friday, County will reimpose its mask closely the August capacity Brent futures rose 0.2 percent, mandate this weekend while auction scheduled on 19 July. to settle at $73.59 a barrel, while increase, gaining just two rigs Britain reported its highest US natural gas futures rose US West Texas Intermediate last week to 380 active units, number of new COVID-19 cases almost 2 percent on Friday as (WTI) crude also rose 0.2 according to energy services in more than six months on soaring global gas prices boost percent, to settle at $71.81. firm Baker Hughes. Friday. exports. That US price increase Earlier in the volatile session, Saudi Arabia and the UAE Spot prices for liquefied came despite forecasts for less both benchmarks were down finally reached a compromise natural gas (LNG) in Asia rose hot weather in the US and lower over $1 a barrel. earlier last week, paving the last week as high temperatures air conditioning demand over Despite the small gains on way for OPEC+ producers to drove up demand for the fuel the next two weeks than previ- Friday, Brent fell almost 3 finalise a deal to increase pro- used in power generation for expected to stay above the his- assessed by S&P Global Platts, ously expected. For the week, percent for the week, marking duction. OPEC+ had earlier cooling. The average LNG price torical average over the next traded as high as $14.31/MMBtu the front-month was flat after a decline for the third week in failed to agree after the UAE for September delivery into two weeks, weather data from this month, the highest seasonal sliding a little under 1 percent a row for the first time since sought a higher baseline for Northeast Asia was estimated Refinitiv Eikon showed, which level in more than seven years. during the week. April 2020. WTI fell almost 4 measuring its output cuts. OPEC at around $13.30 per million will continue to support gas In Europe, gas storage However, with European percent last week, which would justified the planned supply British thermal units (mmBtu), demand for cooling. Despite the inventories are below normal and Asian gas trading above $12 be its biggest weekly percentage increase, announcing on 55 cents higher than the pre- increase in the weekly com- levels and carbon prices were per mmBtu, analysts expect decline since March. Subse- Thursday that it expected world vious week. parison, some buyers in Asia elevated, underscoring the buyers around the world will quently, even with oil prices oil demand to increase next Temperatures in Beijing, curbed the LNG surge by short-term global demand for keep purchasing all the LNG the mostly rising over the last year to around levels seen Seoul, Shanghai and Tokyo, rejecting higher prices. JKM, an the less-polluting carbon fuel. US can produce, which in turn several months, the US oil rig before the pandemic, about 100 some of the world’s top LNG additional benchmark price for Europe also recently proposed will keep internal natural gas count continued its slow million bpd, led by demand consuming countries, are spot LNG in Northeast Asia climate policy plans that include prices bullish.