Dubai completes funding for Dubai Metro’s Route 2020 extension project

The Roads and Transport Authority said that tunneling on the Route 2020 Project is progressing at a steady pace with more than 50 percent of the excavation work already completed. (Roads and Transport Authority)
Updated 22 March 2018
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Dubai completes funding for Dubai Metro’s Route 2020 extension project

DUBAI: The government has completed the 9 billion-dirham financing exercise to complete the construction of the Dubai Metro’s Route 2020 extension project, the emirate’s Department of Finance said on Thursday.
The transaction consists of a 17-year billion dirham loan guaranteed by the French export credit agency Bpifrance Assurance Export and the Spanish export credit agency Compañía Española de Seguros de Crédito a la Exportación, with 14-year amortizations to start in 2020, and a 10-year conventional facility of 4 billion dirhams, with payments over six years to start in 2022.
The five-stage Route 2020 project, which will cost 10.6 billion dirhams, will extend the existing Dubai Metro Red Line to the Expo 2020 site and will have seven stations in between.
“The encouraging response received for this financing, illustrates the strong confidence of international banks in Dubai’s economy … we have been able to achieve long-term financing at competitive rates while at the same time allowing us to manage our budget proactively and in a fiscally responsible manner,” Abdulrahman Saleh Al Saleh, DoF director general, said in a statement.
Banco Santander, First Abu Dhabi Bank, HSBC Middle East Limited, Intesa Sanpaolo and Standard Chartered Bank acted as mandated lead arrangers and the facility providers for the financing.
The contract for the design and build for the project was awarded by Dubai’s Road and Transport Authority to a consortium of Alstom Transport, Acciona Infraestructuras and Gulermak.


Oil rises after US Navy destroys Iranian drone

Updated 19 July 2019
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Oil rises after US Navy destroys Iranian drone

  • The International Energy Agency is revising its 2019 global oil demand growth forecast to 1.1 million barrels per day
  • Speculators have exited options positions that could have provided exposure to higher prices in the next several years

TOKYO: Oil prices rose more than 1 percent on Friday after the US Navy destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows, again raising tensions in the Middle East.
Brent crude futures were up 82 cents, or 1.3 percent, at $62.75 by 0100 GMT. They closed down 2.7 percent on Thursday, falling for a fourth day.
West Texas Intermediate crude futures firmed 61 cents, or 1.1 percent, at 55.91. They fell 2.6 percent in the previous session.
The United States said on Thursday that a US Navy ship had “destroyed” an Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel, but Iran said it had no information about losing a drone.
The move comes after Britain pledged to defend its shipping interests in the region, while US Central Command chief General Kenneth McKenzie said the United States would work “aggressively” to enable free passage after recent attacks on oil tankers in the Gulf.
Still, the longer-term outlook for oil has grown increasingly bearish.
The International Energy Agency (IEA) is reducing its 2019 oil demand forecast due to a slowing global economy amid a US-China trade spat, its executive director said on Thursday.
The IEA is revising its 2019 global oil demand growth forecast to 1.1 million barrels per day (bpd) and may cut it again if the global economy and especially China shows further weakness, Fatih Birol said.
“China is experiencing its slowest economic growth in the last three decades, so are some of the advanced economies ... if the global economy performs even poorer than we assume, then we may even look at our numbers once again in the next months to come,” Birol told Reuters in an interview.
Last year, the IEA predicted that 2019 oil demand would grow by 1.5 million bpd but had already cut the growth forecast to 1.2 million bpd in June this year.
Speculators have exited options positions that could have provided exposure to higher prices in the next several years, market participants said on Thursday.
US offshore oil and gas production has continued to return to service since Hurricane Barry passed through the Gulf of Mexico last week, triggering platform evacuations and output cuts.
Royal Dutch Shell, a top Gulf producer, said Wednesday it had resumed about 80 percent of its average daily production in the region.