Economic News

ECONOMIC NEWS Value Previous % GCC 28-Feb-2021 Closing Change Stocks in Asia-Pacific traded higher on Monday, as data releases showed China’s manufacturing activity growth slowing in February. In Japan, the Nikkei 225 rose 2.18%, MSM 3,612.38 3,601.80 0.29% as the index attempted to recover from its nearly 4% plunge on Friday. The Topix index gained 1.64%. Mainland Chinese stocks were higher, as the Shanghai composite gained Dubai 2,551.54 2,527.48 0.95% 0.52% while the Shenzhen component jumped 1.605%. Hong Kong’s Hang Seng Abu Dhabi 5,663.62 5,627.99 0.63% index advanced 1.2%. Shares of CNOOC listed in the city, however, dropped more than 3%. That came after the New York Stock Exchange announced Friday that it will Saudi Arabia 9,144.99 9,194.92 -0.54% commence delisting proceedings against CNOOC following an update to an executive Bahrain 1,466.43 1,464.63 0.12% order signed by former U.S. President Donald Trump in November. Stocks in Australia edged higher as the S&P/ASX 200 gained 1.71%. MSCI’s broadest index of Asia-Pacific Qatar 10,145.99 10,120.67 0.25% shares outside Japan rose 1.03%. South Korea’s markets are closed on Monday for a Kuwait 5,649.16 5,656.84 -0.14% holiday. (CNBC) Egypt 11,525.02 11,617.91 -0.80% Oil prices rose more than $1 on Monday on optimism in the global economy thanks to 3,427.12 3,437.50 -0.30% progress in a huge U.S. stimulus package and on hopes for improving oil demand as vaccines are rolled out. Brent crude futures for May rose $1.07, or 1.7%, to $65.49 per Value barrel by 0042 GMT. The April contract expired on Friday. U.S. West Texas Intermediate Asia % Change (WTI) crude futures jumped $1.10, or 1.8%, to $62.60 a barrel. “Oil prices are recovering 01-Mar-2021 this morning in line with most risk assets on the back of the U.S. stimulus bill passing the NIKKEI 29,594.62 2.17% House and as central banks continue to sabre rattle to ward off market-implied financial tightening,” Stephen Innes, chief global markets strategist at Axi, wrote in a note on Hang Seng 29,374.99 1.36% Monday. (CNBC) Shanghai 3,528.67 0.56%

Value USA % Change Oman 26-Feb-2021 Oman’s government is transferring its stake in one of the Middle East’s largest oil blocks to a newly- established energy firm as the cash-strapped sultanate looks to use the asset to Dow Jones Ind. 30,932.37 -1.50% raise debt. State-controlled Energy Development Oman will hold the country’s 60% S&P 500 Index 3,811.15 -0.48% ownership of Block 6, according to a royal decree published on Sunday. The stake is being moved from another government company, Petroleum Development Oman. Read more: NASDAQ 13,192.35 0.56% Oman Starts New Energy Company as It Seeks to Leverage Oil Block Oman, which is Value EUROPE % Change struggling to finance a soaring budget deficit, aims to leverage its energy assets and EDO 26-Feb-2021 may issue around $3 billion of bonds in the first half of 2021, Bloomberg had previously FTSE 100 6,483.43 -2.53% reported. Block 6, off Oman’s coast, has a production capacity of 650,000 barrels a day. Royal Dutch Shell Plc holds 34%, while Total SE owns 4%. The government appointed DAX 13,786.29 -0.67% Haifa Al Khaifi as head of EDO last month. She joined from PDO and is also chairwoman CAC 40 5,703.22 -1.39% of the Saudi Arabian unit of State Street Corp., the Boston-based custodian and money

manager. (Bloomberg) Value Currencies % Change 01-Mar-2021

Pavel Mamai notched up his sixth lossless year in 2020 thanks to emerging-market debt. USD-JPY 106.5300 0.04% With that rally stumbling, he’s delving deeper into frontier markets in a bid to decouple from the global reflation trade. The London-based founder of hedge fund ProMeritum USD-OMR 0.3850 0.00% Investment Management LLP is buying the junk-rated Eurobonds of oil producers Oman EUR-USD 1.2082 0.06% and Angola, which have rebounded from a pounding after last year’s crude collapse. Helped by a big position in South African bonds, ProMeritum generated a 7.2% GBP-USD 1.3981 0.34% return last year, its sixth consecutive annual gain since its inception in 2015. Mamai, who oversees nearly $400 million in emerging-market debt, is joining the hunt for assets that are less sensitive to core rates as bonds sell off around the world on signs inflation is Value Commodities % Change returning. Oman is getting serious reining in spending after the oil price shock, while 01-Mar-2021 Angola is on track for budget surpluses and credit rating upgrades, he said. “Oman was in Oil 62.52 1.66% a difficult situation, but authorities decided to take measures to cut spending,” Mamai said “It’s no longer seen as a deteriorating story and soon it will start to be seen as an improving Gold 1,749.00 1.17% story.” (Bloomberg) Silver 26.87 1.75%

Note: All the above data updated at 8:00 AM, Muscat time (5:00am GMT)

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

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

Kuwait Kuwait supports the Saudi government’s rejection of a U.S. intelligence report on the killing of journalist Jamal Khashoggi, the Foreign Ministry said. Saudi Arabia, under the leadership of King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman, plays an important role regionally and internationally in its rejection of violence and extremism, the ministry said in a statement published by the Kuwait News Agency. Kuwait also rejects any remark that might affect Saudi Arabia’s sovereignty, it said. (Bloomberg)

Saudi Official reserve assets of Saudi Arabia fell 13.2b riyals, or 0.8%, from the previous month to 1.69t riyals in January, according to Saudi Arabian Monetary Agency figures. Reserves down 10% from the same period last year Gold unchanged Y/y at 1.62b riyals Foreign currency reserves down 2.4% M/m, 16% Y/y to 532.2b riyals Special Drawing Rights (SDR) unchanged M/m, up 0.8% Y/y to 31.5b riyals IMF reserve position unchanged M/m, up 46% Y/y to 13.7b riyals. (Bloomberg)

Saudi aviation authority has decided to let Boeing 737 Max jets resume operations in the kingdom, state-run SPA reported Foreign airlines that use this type of passenger jet can fly trips to and from Saudi Arabia’s airports, and/or cross the kingdom’s airspace, the statement said, according to SPA report. (Bloomberg)

Net foreign assets held by Saudi Arabia’s central bank fell by 0.8% in January, the most since September, according to the bank’s monthly report. That brought the kingdom’s net foreign assets to about $446 billion. (Bloomberg)

The Biden administration defended its decision not to sanction Saudi Arabia’s Crown Prince Mohammed bin Salman personally for his role in the death of Washington Post columnist Jamal Khashoggi, as the White House confirmed no more actions against the kingdom are imminent. “The United States has not historically sanctioned the leaders of countries where we have diplomatic relations or even some where we don’t have diplomatic relations,” White House Press Secretary Jen Psaki said on “Fox News Sunday.” “Behind the scenes there are a range of diplomatic conversations.” Despite President Joe Biden’s comment Friday in an interview with Univision that “we’re going to be announcing significant changes today and on Monday” -- and a similar statement at the White House on Saturday -- the administration said it isn’t planning steps beyond the limited sanctions already announced against some Saudi officials. (Bloomberg)

UAE Real estate companies’ profitability to “remain under pressure and leverage to be high,” S&P Global Ratings credit analyst Sapna Jagtiani said in a report. “Absent a substantial recovery in revenue, companies are likely to focus on cost optimization, proactively managing their liquidity, and preserving their cash flows” “Rated Dubai-based real estate companies still have good liquidity and access to funding, however, despite currently trying times” S&P expects GDP growth in Dubai to recover this year from the sharp recession of 2020 triggered by the pandemic and low oil prices “However, we think last year’s shock will continue to reverberate through the economy, and GDP (in dollar terms) will return to the 2019 level only in 2023, keeping the pressure on most sectors until then” Expects normalization of relations with Israel restoration of ties between Qatar and the four Arab countries to support tourism and real estate investments. (Bloomberg)

Abu Dhabi’s de facto ruler, Crown Prince Mohammed Bin Zayed, has cemented his control over the emirate’s state energy company by becoming chairman of a newly-established board of directors. The crown prince also appointed one of his sons, Khaled bin Mohamed bin Zayed, as chairman of a smaller six-member executive board at Abu Dhabi National Oil Co., according to tweets on Sunday from the emirate’s media office. Adnoc pumps almost all the oil and gas in the United Arab Emirates, the third-biggest crude producer in OPEC. “This formalizes the crown prince’s role as the head of Adnoc, which had been the case for several years,” said Robin Mills, founder and head of Dubai-based consultancy Qamar Energy. “It provides an important role for his son.” (Bloomberg)

CORPORATE NEWS . Qatar Ezdan Holding Group said it’s finalizing a bank facility to fully repay its $500 million sukuk maturing in May after S&P Global Ratings said the Qatari property developer faces the risk of a default or debt restructuring. “The company is currently in the final stage of finalizing a facility agreement with a major bank for repayment of sukuk 2021 fully,” it said in a statement on Friday. Ezdan said it plans to repay another $500 million sukuk maturing in April 2022 mainly through operating cash flows and bank balances. Bonds of Ezdan slumped Thursday after S&P cut the company’s ratings to CCC from B- with a negative outlook, citing it reflected narrowing liquidity and high debt balances that could lead to a distressed exchange, debt restructuring or default over the next 3-12 months. (Bloomberg)

UAE United Arab Emirates-based Amanat Holdings PJSC, which invests in health care and education, has acquired a local rehabilitation firm for an enterprise value of $232 million, underlining the robust demand for specialist medical services in the Gulf region. Amanat said it bought Cambridge Medical and Rehabilitation Center following a bidding process through a combination of cash and debt from TVM Capital Healthcare, a private equity firm focused on emerging markets. Cambridge Medical and Rehabilitation Center is a post-acute care and rehabilitation provider, with more than 250 beds across three facilities -- two in the UAE and one in Saudi Arabia. It reported revenue of $75.3 million and net income of $15.2 million for 2020. (Bloomberg)

Amanat Holdings acquires Cambridge Medical and Rehabilitation Center for an enterprise value of $232 million from private equity firm TVM Capital Healthcare. The transaction was funded through a combination of cash on hand and leverage The transaction marks Amanat’s first wholly owned investment in the healthcare sector in the UAE The transaction’s enterprise value implies a consolidated EV/FY20 Ebitda multiple of c. 10.5x The

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

UAE business valued at an EV/FY20 Ebitda multiple of 7.5x and the Saudi business at replacement cost Cambridge Medical and Rehabilitation Center FY2020 revenue at $75.3m, Ebitda $22m and net income $15.2m. (Bloomberg)

Saudi Herfy Food Services signs a non-binding MoU with EatRite Food Services for the franchise rights to open restaurants in Nigeria. Herfy plans to open 50 branches in Nigeria over 10 years, with an average five branches per year from 2021 MoU duration: 90 days. (Bloomberg)

Saudi Aramco asked banks to extend by a year a $10 billion loan it raised last May, Reuters reported, citing two people familiar with the matter. Aramco may try to reduce pricing by 10 to 15 bps Reuters said Aramco declined to comment. (Bloomberg)

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