UAE’s ADNOC Gas share price jumps 20% in the first minutes of its debut on ADX  

UAE’s ADNOC Gas share price jumps 20% in the first minutes of its debut on ADX  
The company’s initial public offering was priced at 2.37 dirhams ($0.65) and rose to 2.84 dirhams, bringing the company’s market value to 217.9 billion dirhams, according to ADX data.  (Supplied)
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Updated 13 March 2023

UAE’s ADNOC Gas share price jumps 20% in the first minutes of its debut on ADX  

UAE’s ADNOC Gas share price jumps 20% in the first minutes of its debut on ADX  

RIYADH: The share price of ADNOC Gas, a subsidiary of Abu Dhabi National Oil Co., surged more than 20 percent in its first debut minutes on the Abu Dhabi Securities Exchange market.  

The company’s initial public offering was priced at 2.37 dirhams ($0.65) and rose to 2.84 dirhams, bringing the company’s market value to 217.9 billion dirhams, according to ADX data.  

ADNOC Gas offered 3.84 billion shares in its listing, representing 5 percent of the company’s total shares, and raised $2.5 billion through its offering.  

The company took the position of largest IPO on the Abu Dhabi Stock Exchange surpassing Borouge, another ADNOC subsidiary.  

“As ADNOC Gas moves into life as a listed company, we remain focused on our clear growth strategy, underpinned by upstream capacity expansion, which will allow us to process and deliver increased volumes to customers, further enhancement of our product mix and ensuring we deliver for our growing number of international customers as demand for gas continues to increase,” said Ahmed Alebri, acting chief executive of ADNOC Gas.  

ADNOC Gas has access to 95 percent of the UAE's natural gas reserves, estimated to be the seventh largest globally. It also supplies more than 60 percent of the UAE's gas needs.  

The company taps into 10 billion cubic feet per day of gas-processing capacity while operating eight gas-processing sites and a pipeline network of more than 3,250 kilometers.  

The company expects to pay dividends of more than $1.62 billion in the fourth quarter of 2023 in respect of the first half of this fiscal year which ends in December. It expects to pay a further dividend of more than $1.62 billion in the second quarter of 2024 in respect of the second half of this year.  

ADNOC Gas marks ADNOC’s fifth company to go public while the parent company continues to own 90 percent of its subsidiary.  


Saudi Arabia, Egypt sign MoU to bolster bilateral trade

Saudi Arabia, Egypt sign MoU to bolster bilateral trade
Updated 17 sec ago

Saudi Arabia, Egypt sign MoU to bolster bilateral trade

Saudi Arabia, Egypt sign MoU to bolster bilateral trade

RIYADH: Bilateral trade between Saudi Arabia and Egypt is set to grow after an agreement was reached to enhance economic cooperation — with a key focus on developing the non-oil export sector.

A memorandum of understanding has been signed by the Saudi Export Development Authority and Egypt’s Export Development Authority, the Saudi Press Agency reported.

The agreement falls within the framework of the two countries’ commitment to bolster economic and trade cooperation while developing non-oil export sectors to further diversify sources of income.

The MoU was signed on the sidelines of the official visit of Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef to Egypt.

Abdulrahman Al-Thukair, CEO of the Saudi Export Development Authority, and Egypt’s Minister of Plenipotentiary Trade Yahya Al-Wathiq Billah inked the agreement.

Under the new MoU, the countries will collaborate across broad areas including the exchange of experiences and knowledge in the field of developing exports as well as cooperation around relevant research and studies, Al-Thukair explained.

In addition to this, the two countries will also provide technical support and consultations in the fields of export and international marketing, the CEO said.

The Kingdom and Egypt will work together closely in the organization of joint events, as well as seminars, to enhance communication and exchange of experiences between companies and exporters in the two countries, he added.

Furthermore, the MoU reflects the commitment of the two parties to strengthen bilateral cooperation and joint action in order to achieve the goals of development and sustainability in the field of exports.

Through this MoU, the Saudi authority aims to expand the scope of local producers and exporters in line with the Vision 2030 goal of raising the proportion of exports to no less than 50 percent of the Kingdom’s non-oil gross domestic product.

 


Saudi-British business delegations meet to bolster intra-regional trade

Saudi-British business delegations meet to bolster intra-regional trade
Updated 18 min 58 sec ago

Saudi-British business delegations meet to bolster intra-regional trade

Saudi-British business delegations meet to bolster intra-regional trade

RIYADH: Intra-regional trade between Saudi Arabia and the UK is set to receive a boost as top ministers from both countries held talks in London to strengthen economic ties. 

As part of the third meeting of the Saudi-British Strategic Partnership Council, the Kingdom’s Commerce Minister, Majid bin Abdullah Al-Qasabi, and the UK’s Investment Minister, Dominic Johnson, discussed ways to further encourage English firms to expand their businesses in the Middle East’s largest economy. 

This comes as trade exchange between Saudi Arabia and the UK stood at SR80.7 billion ($21.5 billion) in 2022, reflecting a 68 percent surge when compared to 2021. 

While the total value of UK exports to Saudi Arabia stood at SR56.9 billion in 2022, the total value of imports from the Kingdom amounted to SR23.8 billion. 

The two ministers also discussed ways to promote and finance emerging companies in promising fields based on research and innovation while reviewing the British experience in developing entrepreneurship.  

Led by Al-Qasabi, the Saudi delegation includes Deputy Minister of Commerce and CEO of the National Competitiveness Center Iman Al-Mutairi as well as 45 officials from 22 private and non-profit government agencies. 

The delegation will participate in important meetings with the British government and business officials to bolster economic cooperation between the two nations. 

The agenda of the visit also entails meetings between the minister and top British business leaders including the CEO of Rolls-Royce, Tufan Erginbilgic, besides several other engagements with officials from the British Accreditation Authority.  

The Saudi delegation will also participate in a dialogue with members of the Asian House, which is a think tank interested in promoting trade exchange between Asia, the Middle East and Europe. 

Some of the other members who are part of the Saudi delegation include representatives from the ministries of trade, energy, investment, education, culture, tourism, and municipal and rural affairs and housing.

The Saudi Central Bank, the Public Investment Fund, the General Authority for Foreign Trade, the National Center for Competitiveness, and the Center Saudi Economic Business are also represented during the visit.  

Established in 2008, the Saudi-British Strategic Partnership Council aims to reinforce relations between the Kingdom and the UK. 

It also seeks to commit to a deeper and more strategic partnership to enhance the mutual interests of both countries. 


Gold slips as firm dollar counters bets for Fed pause

Gold slips as firm dollar counters bets for Fed pause
Updated 05 June 2023

Gold slips as firm dollar counters bets for Fed pause

Gold slips as firm dollar counters bets for Fed pause

BENGALURU: Gold slipped on Monday as the dollar firmed after strong US payrolls data last week, offsetting some of the support for zero-yield bullion from bets that the Federal Reserve may pause rate hikes in June, according to Reuters.

Spot gold was down 0.2 percent to $1,944.59 per ounce by 12:46 p.m. Saudi time, close to its lowest level since May 30. US gold futures shed 0.6 percent to $1,958.60.

“Gold bulls’ shoulders slumped after yet another red-hot headline nonfarm payroll print fueled a rebound in the dollar,” said Han Tan, chief market analyst at Exinity.

“For the immediate term, spot gold is testing its 100-day moving average for support.”

Gold dropped more than 1 percent on Friday after data showed the US economy added 339,000 jobs last month, above estimates of 190,000.

On Monday, the dollar index was up 0.2 percent, making greenback-priced bullion less affordable for overseas buyers. 

Benchmark US yields meanwhile were near a one-week high.

But providing a floor for bullion prices, the chances of the Fed holding interest rates at their current level at its June 13-14 meeting were pegged at 79.4 percent, according to the CME FedWatch Tool.

Non-interest-bearing bullion tends to become less attractive in a high-interest rate environment.

“To see higher gold prices, we need to see the Fed getting more dovish, which likely requires weaker economic data,” said UBS analyst Giovanni Staunovo.

Global shares rose as investors bet on a rate-hike pause and after Saudi Arabia pledged the biggest reduction in its oil output in years.

Silver fell 0.4 percent to $23.50 per ounce, platinum rose 0.6 percent to $1,009, and palladium gained 0.3 percent to $1,424.15.

Amid prospects for an economic slowdown in Europe and the US, an extended period of softening industrial demand could remove some support for silver prices from factors such as growth in solar cell production, Heraeus said in a note.


Saudi Arabia to build commercial project worth $1bn in Baghdad

Saudi Arabia to build commercial project worth $1bn in Baghdad
Updated 05 June 2023

Saudi Arabia to build commercial project worth $1bn in Baghdad

Saudi Arabia to build commercial project worth $1bn in Baghdad

RIYADH: Saudi Arabia has signed a contract with Iraq to establish a commercial project worth $1 billion in Baghdad, bolstering the economic ties between the two nations, reported the Iraqi News Agency. 

Abdulaziz Al-Shammari, the Saudi ambassador to Iraq, revealed that the Kingdom inked a contract with Iraq to develop a massive commercial project near Baghdad International Airport, according to the INA. 

Dubbed Baghdad Avenue, the project is expected to become the largest shopping mall in Iraq, encompassing coffee shops, restaurants and commercial offices. Additionally, it will house 4,000 apartments and 2,500 villas. 

“Baghdad Avenue will be a distinguished project and a surprise to all Iraqis. It is the largest mall in Iraq and will include cafes and restaurants with large areas and commercial offices for major Iraqi companies,” Al-Shammari said.
“Iraqi and Saudi relations are witnessing a wonderful stage,” he added. 

Al-Shammari highlighted the recent visit of the King Salman Medical Center’s team to Baghdad, stating that the knowledge exchange between Iraqi and Saudi doctors epitomizes the strong relations between the two countries. 

“Today, we started reaping its real fruits through the visit of the King Salman Medical Center team to Baghdad, which is the first specialized and practical visit through which we witness the exchange of experiences between the best-skilled doctors in the Kingdom, as well as the best Iraqi doctors, to exchange experiences in fields and subspecialties, which is the first fruit,” he said. 

Al-Shammari also noted that both countries would soon host meetings featuring economic and cultural discussions. He stated: “The subsequent phase will witness significant momentum in activities occurring between the two nations.” 

In March, Saudi Public Investment Fund created a new company to invest in various industries across Iraq, with a capital of $3 billion. 

The Saudi-Iraqi Investment Co. will invest in infrastructure, mining, agriculture, real estate development and financial services, CEO Muteb Al-Shathri said during the Saudi-Iraqi Coordination Council held in the Kingdom. 


Oil Updates — crude prices up on Saudi Arabia’s production cut decision

Oil Updates — crude prices up on Saudi Arabia’s production cut decision
Updated 05 June 2023

Oil Updates — crude prices up on Saudi Arabia’s production cut decision

Oil Updates — crude prices up on Saudi Arabia’s production cut decision

RIYADH: Oil prices were up nearly $1 a barrel on Monday after Saudi Arabia pledged to cut production by another 1 million barrels per day from July. 

Brent crude futures were at $77.07 a barrel, up 94 cents, or 1.23 percent, at 9:05 a.m. Saudi time, while US West Texas Intermediate crude climbed 96 cents or 1.34 percent to $72.70 a barrel. 

The contracts extended gains of over 2 percent on Friday after the Saudi energy ministry said the Kingdom’s output would drop to 9 million barrels per day in July from around 10 million bpd in May. The cut is Saudi Arabia’s biggest in years. 

The voluntary cut pledged by Saudi on Sunday is on top of a broader deal by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to limit supply into 2024 as the group seeks to boost flagging oil prices. 

OPEC+ pumps around 40 percent of the world’s crude and has cuts of 3.66 million bpd in place, amounting to 3.6 percent of global demand. 

Russia fully enforces its oil output cuts, Novak says 

Russian Deputy Prime Minister Alexander Novak told Rossiya-24 TV channel on Sunday following a meeting of the OPEC+ group that Russia is fulfilling its oil output cut obligations. 

“The result of the discussions was the extension of the deal until the end of 2024,” Novak said. 

Separately, Novak’s office said that Russia would tweak its crude oil production level to 9.828 million bpd from Jan. 1, and considering earlier announced additional voluntary reduction of 500,000 bpd, its output target will stand at around 9.3 million bpd. 

Novak also said the market is more or less balanced, and demand is rising. However, the group would monitor interest rate decisions by global central banks, including the US Federal Reserve, for clues on the economy that could influence fuel consumption. 

“That’s the indicator (interest rate decisions), which is having an impact on investments, on demand for oil and oil products,” he said. 

Novak also said that OPEC+ could adjust its decisions if necessary. 

He said the data from secondary sources related to the OPEC+ voluntary cuts starting from May would emerge in the middle of this month. 

(With input from Reuters)