India plans to raise refining capacity by 77% by 2030

India’s economic expansion is driving up fuel consumption, with increased energy access for commercial and retail consumers. (Reuters)
Updated 08 February 2018
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India plans to raise refining capacity by 77% by 2030

NEW DELHI: Refiners in India, the world’s third-biggest oil consumer and importer, have drawn up plans to raise their capacity by 77 percent to about 8.8 million barrels per day (bpd) by 2030 to meet the country’s rising fuel demand. India’s refining expansion plan will ensure the nation’s surplus production of diesel and petrol will last until 2035, according to a report by the Ministry of Petroleum and Natural Gas.

India is emerging as one of the key global drivers for refined fuels consumption as its economic expansion and rising industrial activity yields infrastructure improvements and increased energy access for commercial and retail consumers.
If current patterns of use continue, the country’s fuel demand could rise to as much as 335 million tons by 2030, and 472 million tons by 2040, from about 194 million tons last year, the oil ministry’s report said.
On the basis of expansion plans submitted by refiners to the government, petrol production will remain in surplus up to 2035, turning into a deficit in 2040, according to the report.
A spokesman for the oil ministry declined to discuss the report further when contacted by phone. Diesel will remain in surplus until about 2035, beyond which domestic demand will overtake supply, the report said. The report also forecast a growth of 5 percent or more each year in India’s petrol, diesel and jet fuel demand to 2030. The report recommended the refiners set up petrochemical projects and cut production of petcoke and fuel oil.


Nasdaq Dubai to launch Saudi Arabian futures later this year

Updated 20 May 2018
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Nasdaq Dubai to launch Saudi Arabian futures later this year

  • The move will allow global investors to trade shares in Saudi Arabian listed companies via contracts to buy or sell shares at a set price in the future
  • The Kingdom’s stock exchange, the Tadawul, has announced its intention to enable futures and other derivatives trading

DUBAI: Nasdaq Dubai, the UAE’s international stock exchange, is to launch futures trading in Saudi Arabian quoted companies before the end of this year, Arab News can reveal.
The move will allow global investors to trade shares in Saudi Arabian listed companies via contracts to buy or sell shares at a set price in the future, and is expected to add to the attraction of the Kingdom’s financial markets among international investors. 
It will be the first time Saudi stocks can be traded in derivative form.
Hamed Ali, chief executive of the Dubai-based exchange, said: “We are delighted to provide investors with an exciting new route to gain exposure to the Kingdom’s dynamic and rapidly expanding equity markets. What we’ve seen happen in Saudi Arabia is impressive reform, progression and change, and there is a lot of regional and international interest in the stock markets there. 
“This is good news for our two markets, and a good step in building a stronger bridge between them,” he added.
Ali has been involved in talks about the initiative for some time with relevant market players in the Kingdom. 
“The framework we have built for trading and clearing Saudi futures is based on intensive consultations with regional and international market participants, including brokers and potential 
investors.  Our futures will provide further 
impetus to invest in Saudi Arabian capital markets and help develop new links with market participants,” he added.
The Kingdom’s stock exchange, the Tadawul, has announced its intention to enable futures and other derivatives trading, but its plans are still thought to be some way from implementation. Earlier this month it announced the setting up of an independent clearing house, essential to pave the way for derivatives trades.
The launch of futures by Nasdaq Dubai comes at a busy time for markets in the Kingdom. The Tadawul’s headline TASI index is among the best performing in the world, having risen 11 percent so far this year. 
Index provider MSCI is widely expected to include KSA stocks in its widely tracked emerging markets index from next year, opening the bourse up to significant inflows from foreign investors. 
Such investors are also eagerly waiting for a raft of domestic privatizations that could further boost the markets later this year and beyond. 
The most eagerly anticipated is the initial public offering (IPO) of a minority stake in oil major Saudi Aramco, which could be the biggest IPO in history. Asked about the listing, Ali said: “We would definitely offer single stock futures in it.”
Nasdaq’s Saudi futures market will commence in the third quarter of the current year, offering contracts on some of the Kingdom’s biggest stocks by market capitalization and liquidity, including some of the Middle East’s largest businesses active in sectors such as petrochemicals, real estate, banking and transport.
The futures contracts will give investors new hedging tools to take long and short positions on the companies, at a time when international investor interest in the Kingdom’s stock market is increasing rapidly, Nasdaq believes.
The Nasdaq futures market currently operates with leading Gulf brokerages as members, and two active market makers on the UAE contracts.

 

More market participants are preparing to join as Nasdaq Dubai adds the KSA single stock futures and expands its 
derivatives platform in phases, to include futures based on stocks and indices of various exchanges in the Middle East and North Africa, as well as options, Nasdaq said. More brokers are expected to join the Nasdaq platform as the trade in Saudi futures takes off, including some from Saudi Arabia.
Nasdaq Dubai launched UAE futures trading in 2016 with single stock futures on seven UAE-listed companies. That number has since increased to 17 and last February the exchange added futures on Dubai Financial Market’s DFMGI share index, as well as the ADSMI index of Abu Dhabi Securities Exchange. Futures on MSCI’s UAE index will be added soon under a license agreement signed with MSCI.
“We are really pleased with the futures market performance. Volumes have been steady, but, of course, they just reflect the underlying performance of the market,” Ali said.
Futures and other derivative products are common instruments in Western and other financial markets, and are regarded as key mechanisms to enhance market 
liquidity, but have been slower to gain 
acceptance in the Middle East.  
The futures move by Nasdaq Dubai is a sign of increasing co-operation between the UAE and Saudi stock exchanges, as well as others in the Gulf Co-operation Council region.
Sarah Al-Suhaimi, chairperson of the Tadawul, said recently that she wanted to make the Tadawul the “dominant” exchange in the region, and that discussions had taken place between exchange policymakers and regulators with a view to enabling common listing rules and dual listings of regional companies.
“Can there be other things we can do 
together with Riyadh? Yes, of course, there are lots of things, but we need to agree a framework,” Ali said.
“We will be looking at more products in the future. This is just a starting point,” he added.

Decoder

Futures Contracts

Futures contracts allow investors to buy shares (or other assets) at an agreed price for delivery (and payment) at a later date. They are a common tool used to hedge risk, by limiting exposure to price fluctuations.