UAE-based Dana Gas wins $607.5m in case against Iran’s state oil producer

UAE-based Dana Gas wins $607.5m in case against Iran’s state oil producer
The case involves a 25-year contract signed by NIOC and Crescent Petroleum in 2001 for Iran to supply 600 million cubic feet of gas by pipeline to Sharjah. (Supplied)
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Updated 28 September 2021

UAE-based Dana Gas wins $607.5m in case against Iran’s state oil producer

UAE-based Dana Gas wins $607.5m in case against Iran’s state oil producer
  • The Abu Dhabi-listed company will enter another round of arbitration with the National Iranian Oil Company (NIOC)

DUBAI: Dana Gas, an energy firm based in the UAE emirate of Sharjah, has been awarded $607.5 million in damages in its gas dispute case with Iran’s state-owned oil producer. 

The Abu Dhabi-listed company will enter another round of arbitration with the National Iranian Oil Company (NIOC), where the claim will be much larger, it said in a stock exchange filing.

The case involves a 25-year contract signed by NIOC and Crescent Petroleum in 2001 for Iran to supply 600 million cubic feet of gas by pipeline to Sharjah. 

NIOC failed to comply due to a dispute over contracted price, and the companies have been under international arbitration since then. 


Egypt's sovereign fund aims to increase its investment portfolio to $1.5bn

Egypt's sovereign fund aims to increase its investment portfolio to $1.5bn
Image: Shutterstock
Updated 11 sec ago

Egypt's sovereign fund aims to increase its investment portfolio to $1.5bn

Egypt's sovereign fund aims to increase its investment portfolio to $1.5bn
  • Egypt's sovereign fund signed an agreement with a winning US consortium to develop and rehabilitate the Tahrir Complex

Egypt's sovereign fund aims to increase its investment portfolio in 2022 to 23 billion Egyptian pounds ($1.5 billion) between managed, owned or liquid assets, its executive director has said. 

Ayman Soliman pledged to increase cooperation with various sovereign funds during the coming period, including those from the Gulf.

He stated that the green economy, infrastructure, logistics and tourism sectors are the most prominent sectors targeted by the fund for investment during the next year, with three-four new agreements planned to be signed to produce green hydrogen in Egypt. 

Egypt's sovereign fund signed an agreement with a winning US consortium to develop and rehabilitate the Tahrir Complex, with a total investment of more than 3.5 billion Egyptian pounds. 

“We aim to attract billions of dollars in projects in the next two years. We hope that the Tahrir Complex development project will be the beginning of many pioneering projects and future investments,” Soliman added.

Last month, the Egyptian president El-Sisi urged the fund to continue studying the state's under-utilised properties and assets, with maximising the return from them to ensure the sustainability of its investments. 


Economic rebound in GCC induces stable outlook for banks: Moody’s

Economic rebound in GCC induces stable outlook for banks: Moody’s
Updated 13 min 50 sec ago

Economic rebound in GCC induces stable outlook for banks: Moody’s

Economic rebound in GCC induces stable outlook for banks: Moody’s

An economic recovery and stronger oil prices prompted Moody’s to set a stable outlook for banks in the Gulf Cooperation Council region for the upcoming 12 to 18 months, the ratings agency said in a report.

“Economic growth in 2022 will reflect a gradual increase in hydrocarbon production and a strong recovery in other segments of the economy,” said Ashraf Madani, a vice president and senior analyst at Moody’s.

He added that quality of assets is set to stay healthy despite a marginal rise in non-performing loans.

As for next year, the firm indicated that regulatory measures and large projects, including stadiums for the World Cup and Saudi Arabia’s giga projects, will boost credit growth in the region and raise credit demand.

The US-based company added that liquid assets account for about 25-30 percent of total GCC banking assets and are predicted to stay this way to safeguard against any unforeseen crises.

Loan performance will likely deteriorate when payment holidays end, Moody’s pointed out. The UAE and Bahrain are two countries that will be most affected.

GCC governments still maintain a strong disposition to protect the banking sector due to their large sovereign wealth funds, the report added.

 

 


China’s exports and imports reach all-time highs

China’s exports and imports reach all-time highs
Image: Shutterstock
Updated 20 min ago

China’s exports and imports reach all-time highs

China’s exports and imports reach all-time highs
  • The country’s trade surplus hit $71.7 billion in November

Exports and imports in China grew annually by 22 and 32 percent in November when compared to a year earlier, reaching all-time records.

Exports went up to $326 billion while imports rose to $254 billion, Bloomberg reported, citing China's customs administration.

However, exports growth experienced a slowdown during the month, falling from October’s 27.1 percent to 22 percent. This was attributed to a thinning demand and a rise in costs.

In contrast, imports growth picked up pace significantly, rising to 32 percent as the East Asian country replenished its inventories of some commodities such as coal. This is compared to the lower 20 percent growth experienced in the previous month.

Coal imports in the country climbed to the highest level since the start of the year to supply its power system.

The country’s trade surplus hit $71.7 billion in November, down from October’s level of $84.5 billion.

While the country continues to notably recover from the pandemic, it still suffers from a number of problems, including power shortfalls and debt issues in the property sector.


Inflation in eurozone economies is transitory: IMF

Inflation in eurozone economies is transitory: IMF
Image: Shutterstock
Updated 07 December 2021

Inflation in eurozone economies is transitory: IMF

Inflation in eurozone economies is transitory: IMF
  • The reason the IMF gave this assessment is that the hikes in consumer prices didn’t turn into wage increases

Despite inflation hitting a record high last month in the euro area, the International Monetary Fund said that the rise in prices is transitory and not worrisome.

Annual inflation rate in the zone reached 4.9 percent in November, Reuters reported.

The reason the IMF gave this assessment is that the hikes in consumer prices didn’t turn into wage increases, also known as the second-round effect.

It pointed out that, meanwhile, monetary policy should remain loose.

The international lender also stated that governments in the euro area should continue backing their economies to overcome the adverse effects initiated by the pandemic. The organization added that fiscal consolidation is not urgent, but its plans should be readily available now.

“Policies should remain accommodative but become increasingly targeted, with a focus on mitigating potential rises in inequality and poverty,”the IMF said.

I took a quote from the source since it's reuters.


Bahrain aims to reduce government shares in listed companies

Bahrain aims to reduce government shares in listed companies
Updated 07 December 2021

Bahrain aims to reduce government shares in listed companies

Bahrain aims to reduce government shares in listed companies

JEDDAH: Bahrain aims to reduce government ownership in listed companies, the CEO of the Bahrain Bourse has said.

The country aims to list more governmental companies to encourage the private sector to follow the lead. 

At least two governmental firms are currently close to listing, including the Bahrain Airport Company,  Khalifa Al Khalifa added in an interview with Al Arabiya.

Bahrain Bourse has also reached an agreement with Abu Dhabi to facilitate direct trading between the two markets.

It is also implementing a four year strategy ending in 2026, to develop the financial market sector by listing more companies, including small and medium-size enterprises, Al Arabiya reported.