Oil prices rally before Algiers talks

Algeria’s Energy Minister Noureddine Boutarfa
Updated 26 September 2016
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Oil prices rally before Algiers talks

LONDON: Oil prices jumped around 3.0 percent in value Monday as the dollar weakened before a meeting of crude producing nations in Algeria to discuss a stubborn supply glut.
Against a backdrop of depressed prices despite Monday’s rally, members of the Organization of the Petroleum Exporting Countries are meeting this week with key non-OPEC producer Russia on the sidelines of the International Energy Forum in Algiers.
Pre-forum talks last week between Saudi Arabia and Iran resulted in neither willing to commit to trimming overproduction, sending prices plunging more than 3.0 percent on Friday.
Around 1615 GMT on Monday, Brent North Sea crude for delivery in November was up $1.47 at $47.36 a barrel.
US benchmark West Texas Intermediate for November rallied $1.37 to $45.85 compared with Friday’s close.
Oil prices have been hammered by a lingering supply glut since late 2014, sending them to near 13-year lows below $30 in January.
While the market has recovered, crude futures are still weak, the head of Gulf giant Saudi Aramco said on Monday, warning that market volatility could persist in the near future.
“While the oil market has recovered from its most severe period, it’s still weak,” Saudi Aramco CEO Amin Nasser said at an energy conference in Dubai.
Algeria’s energy minister on Sunday said “the best solution” in Algiers would be for an agreement on maintaining current output levels.


Abu Dhabi aims to lure start-ups with investment in new technology hub

Updated 24 March 2019
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Abu Dhabi aims to lure start-ups with investment in new technology hub

  • The initiative will help Abu Dhabi reduce reliance on oil
  • Mubadala hopes to attract Chinese and Indian companies

ABU DHABI: Abu Dhabi will commit up to $272 million to support technology start-ups, it said on Sunday, in a dedicated hub as part of efforts to diversify its economy.

US tech giant Microsoft will be a strategic partner, providing technology and cloud services to the businesses that join the hub as the capital of the United Arab Emirates continues its push to reduce reliance on oil revenue.
Abu Dhabi derives about 50 percent of its real gross domestic product and about 90 percent of central government revenue from the hydrocarbon sector, according to ratings agency S&P.
The emirate launched a $13.6 billion stimulus fund, Ghadan 21, in September last year to accelerate economic growth. Ghadan means tomorrow in Arabic. The new initiative, named Hub 71, is linked to Ghadan will also involve the launch of a $136 million fund to invest in start-ups, said Ibrahim Ajami, head of Mubadala Ventures, the technology arm of Mubadala Investment Co.
The goal is to have 100 companies over the next three to five years, Ajami said. “The market opportunities in this region are immense,” he added.
Mubadala, with assets of $225 billion and a big investor in tech companies, will act as the driver of the hub, located in the emirate’s financial district.
Softbank will be active in the hub and support the expansion of companies in which it has invested, Ajami said, adding that Mubadala is also aiming to attract Chinese and Indian companies, among others.
Mubadala which has committed $15 billion to the Softbank Vision Fund, plans to launch a $400 million fund to invest in leading European technology companies.
Incentives mapped out by the government include housing, office space and health insurance as part of the $272 million commitment, Ajami said.
Abu Dhabi will also announce a new research and development initiative on Monday linked to the Ghadan 21 plan, according to an invitation sent to journalists.