Mohammed bin Salman, strongman in the making:
"Mohammed bin Salman has been officially welcomed in London with all the trappings of a state visit. He has been treated to lunch with the Queen, and hosted at Chequers, the prime minister’s retreat. Saudi Arabia’s 32-year-old crown prince has yet to ascend to the throne, but the UK government’s message is unambiguous: this is a man to do business with. Yet there is a sense that, in its hunger for commercial opportunity outside Europe, Theresa May’s government is looking at future ties with the kingdom through the lens of the past. US president Donald Trump fell into the same trap, declaring $110bn in deals last year in Riyadh. Little of that has materialised to date. The days when Saudi Arabia could lavish billions buying weapons they did not need in return for security they do need are over. It is presumably for that reason that the young crown prince known as MbS has approached reforming the Saudi economy with an urgency uncharacteristic of his predecessors. The kingdom can no longer afford to buy public acquiescence with cradle-to-grave benefits. The population is growing and oil revenues are on the slide."
'via Blog this'
Friday 9 March 2018
Shale is back in charge as Opec chooses to watch and wait
Shale is back in charge as Opec chooses to watch and wait:
"Is Opec on the verge of making the same mistake all over again? The cartel managed to ignore the rise of the US shale industry at the start of this decade until its output growth eventually overwhelmed the oil market. That triggered one of the biggest price collapses in history as Opec fought fire with fire, opening the spigots to try and drown out its upstart competitor. But for the past 15 months Opec has returned to market management and supply cuts, in alliance with Russia, after the price collapse from $100 to $30 a barrel became too painful for its members to bear. The result has been stronger oil prices but also the rejuvenation of the shale industry."
'via Blog this'
"Is Opec on the verge of making the same mistake all over again? The cartel managed to ignore the rise of the US shale industry at the start of this decade until its output growth eventually overwhelmed the oil market. That triggered one of the biggest price collapses in history as Opec fought fire with fire, opening the spigots to try and drown out its upstart competitor. But for the past 15 months Opec has returned to market management and supply cuts, in alliance with Russia, after the price collapse from $100 to $30 a barrel became too painful for its members to bear. The result has been stronger oil prices but also the rejuvenation of the shale industry."
'via Blog this'
Oil cash set to boost Saudi Arabia’s sovereign wealth fund
Oil cash set to boost Saudi Arabia’s sovereign wealth fund:
"Saudi Arabia is set to use surplus oil revenues to bolster the financial firepower of its $230bn Public Investment Fund, the sovereign wealth fund driving crown prince Mohammed bin Salman’s economic modernisation efforts. Should oil prices exceed the level required to balance the Saudi budget, any extra revenues would be funnelled into the PIF, said Mohammed Al Tuwaijri, the kingdom’s minister of economy and planning. “Whenever oil is above our break-even point, this will all go to the PIF,” he said in an interview, without disclosing what the kingdom regards as the level at which the fiscal balance is zero. “So in that sense they will have a lot of funding hopefully.”"
'via Blog this'
"Saudi Arabia is set to use surplus oil revenues to bolster the financial firepower of its $230bn Public Investment Fund, the sovereign wealth fund driving crown prince Mohammed bin Salman’s economic modernisation efforts. Should oil prices exceed the level required to balance the Saudi budget, any extra revenues would be funnelled into the PIF, said Mohammed Al Tuwaijri, the kingdom’s minister of economy and planning. “Whenever oil is above our break-even point, this will all go to the PIF,” he said in an interview, without disclosing what the kingdom regards as the level at which the fiscal balance is zero. “So in that sense they will have a lot of funding hopefully.”"
'via Blog this'
Qatar's 2017 trade surplus jumps 49% to QR136.83bn
Qatar's 2017 trade surplus jumps 49% to QR136.83bn:
"Qatar's trade surplus expanded about 28% year-on-year to QR35.83bn in the fourth quarter (Q4) of 2017 as exports grew faster than imports, according to the official figures.
The country's trade surplus for the entire 2017 saw a 49% year-on-year growth to QR136.83bn as exports witnessed double-digit growth, while imports were on the decline, the Ministry of Development Planning and Statistics said.
During Q4, 2017, the country's exports grew 21% to QR68.47bn, mainly due to higher shipments of mineral fuels, lubricants and related materials and manufactured goods."
'via Blog this'
"Qatar's trade surplus expanded about 28% year-on-year to QR35.83bn in the fourth quarter (Q4) of 2017 as exports grew faster than imports, according to the official figures.
The country's trade surplus for the entire 2017 saw a 49% year-on-year growth to QR136.83bn as exports witnessed double-digit growth, while imports were on the decline, the Ministry of Development Planning and Statistics said.
During Q4, 2017, the country's exports grew 21% to QR68.47bn, mainly due to higher shipments of mineral fuels, lubricants and related materials and manufactured goods."
'via Blog this'
Dubai DGCX to start Shariah spot gold contract | ZAWYA MENA Edition
Dubai DGCX to start Shariah spot gold contract | ZAWYA MENA Edition:
"The Dubai Gold & Commodities Exchange (DGCX) said the first-ever Shariah compliant spot gold contract would go live on March 29.
INTL FCStone, a leading international financial services firm, will be the market maker for the product. The physically-backed Sharia-compliant gold contract is the first-of-its-kind and will mark DGCX's entry into the Islamic finance sector. The launch is strategically placed at a time when Sharia-compliant investments across the globe are worth an estimated $2 trillion, with gold constituting a sizable proportion of those investments, the exchange said in a statement.
Les Male, CEO of DGCX, said given INTL FCStone's expertise and capability in precious metals trading, it would bring much-needed liquidity to the marketplace and ensure a strong start to trading."
'via Blog this'
"The Dubai Gold & Commodities Exchange (DGCX) said the first-ever Shariah compliant spot gold contract would go live on March 29.
INTL FCStone, a leading international financial services firm, will be the market maker for the product. The physically-backed Sharia-compliant gold contract is the first-of-its-kind and will mark DGCX's entry into the Islamic finance sector. The launch is strategically placed at a time when Sharia-compliant investments across the globe are worth an estimated $2 trillion, with gold constituting a sizable proportion of those investments, the exchange said in a statement.
Les Male, CEO of DGCX, said given INTL FCStone's expertise and capability in precious metals trading, it would bring much-needed liquidity to the marketplace and ensure a strong start to trading."
'via Blog this'
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