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/ / 2018, May 2018, Newsletters

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CRIF GULF WEEKLY INSIGHTS


Country Risk Update – Bahrain
Risk Indicator – DB5b
Risk Level – High
Ratings Trend – Stable

Dun & Bradstreet upgrades its rating outlook for Bahrain due to the discovery of huge oil and gas deposits which could be economically transformative. A giant oil and gas find off the west coast offers the promise of vast wealth if it proves commercially viable to extract.
Saudi Arabia’s strong support for Bahrain provides a backstop to the economy in the event of a crisis, such as reserves depletion.

Market Overview

Virgin Mobile Middle East And Africa Closes $30 Million Pre-IPO Exchangeable Sukuk
Regional mobile virtual network operator Virgin Mobile Middle East and Africa says it has closed a $30 million pre-IPO exchangeable sukuk, which the company plans to use to fund growth and expansion.Investment management firms Franklin Templeton Investments Middle East and Sancta Capital Group acted as anchor investors in the transaction, while Arqaam Capital acted as the lead arranger and book runner. In the event of an IPO, the sukuk certificates will transfer into an exchangeable sukuk, maturing 2 years from the IPO date.​Headquartered in Dubai, Virgin Mobile Middle East and Africa is part of the Virgin group of companies and has had a presence in the region since 2007. The company has two consumer brands, Virgin Mobile and FRiENDi Mobile, and operates in the U.A.E., Saudi Arabia, South Africa, Oman and Malaysia. As a mobile virtual network operator (or MVNO), it does not own network infrastructure, instead leasing capacity from traditional operators and then reselling services to customers. ​

Oman Inks Energy Deals With Shell, Total And Occidental Petroleum Corporation
Oman’s Ministry of Oil & Gas has signed deals with several oil and gas companies including Shell, Total and Occidental Petroleum Corporation to develop the energy sector in the country.Signed by the Minister of Oil & Gas Mohammed Bin Hamad Al Rumhi with Shell Gas & Power Developments B.V. (Shell) and Total, the first MOU will cover proposed energy development projects in Oman. The agreement covers upstream gas exploration and development, gas-to-liquids (GTL), liquified natural gas (LNG) and renewable energies.​Under the agreement, Shell is to operate an upstream project with Total and Oman Oil Company (OOC) as partners. It will also operate a GTL project with OOC as a partner.Total and Shell as operators will develop several natural gas discoveries located in the Greater Barik area on onshore Block 6, with respective shares of 25% and 75%, as per the agreement between both companies and before possible State back-in, with the objective of an initial gas production of around 500 MMcfd and a potential to reach 1 bcf/d at a later stage.Shell has a 30% share in Oman LNG LLC, 49% ownership of Shell Oman Marketing Company SAOG, and 34% of Petroleum Development Oman.

Dana Gas Strikes Deal With Creditors On $700 Million Sukuk Restructuring
The U.A.E-based firm Dana Gas announced today that it has reached an agreement with creditors to restructure $700 million Sukuk, ending long drawn out legal disputes in multiple courts in the U.A.E and British Virgin Islands and England. The company said last June that the issued Mudarabah Sukuk is unlawful within the U.A.E law and Sahri’a principles due to many issues including that Sukuk guarantees a fixed rate of return to certificate holders and it makes the company responsible for any loss of capital. So the company said that it is very important to comply with the laws through restructuring the Sukuk.​Dana Gas said in a statement today that it has reached agreements with the Ad-Hoc committee of Sukuk holders on terms and conditions of an offer for the restructuring and refinancing of its Sukuk Al-Mudarabah with two options. The first one is to give the shareholders who are wishing to exit their principal, an opportunity to tender their claims at 90.5¢ per $1 of the face value of their holdings, which includes an early participation fee of 2.5¢ (if elections are received within 7 days from the date of launch of the Tender Offer).

ADNOC To Invest $45 Billion In Downstream
The Abu Dhabi National Oil Company (ADNOC) revealed plans to invest $45 billion alongside partners, over the next five years to become a major global downstream player, enabling it to further stretch the value of every barrel it produces.As part of its investment strategy, ADNOC will create the world’s largest integrated refining and petrochemicals complex in Ruwais and undertake a highly targeted overseas investments to secure greater market access. These investments are expected to add more than 15,000 jobs by 2025 and contribute an additional 1% to GDP per year. Following the dip in oil prices, ADNOC has undertaken a significant group transformation program over the last two years. The company has improved its operational efficiency, enhanced performance and realigned the management of its portfolio of assets and capital to create a new and expanded partnership and investment model.

Emirates Group’s Revenues Up By 67% While Profits Grow
Emirates Group announced that its revenues rose by 67% in the last financial year ended March 31 as it netted around $27.2 billion. The group’s profits touched $1.1 billion, up 8% over last year’s results. The Dubai-headquartered firm said that the group collectively invested $ 2.5 billion in purchasing new aircraft and equipment, in acquiring companies, modern facilities, the latest technologies, and to carry out staff initiatives. Emirates –the main subsidiary of the group- reported a profit of $762 million, 124% higher than the previous year while revenues fell by 9% to $ 25.2 billion. Emirates’ total passenger and cargo capacity crossed the 61 billion mark at the end of 2017-18. The airline carried a record 58.5 million passenger, up 4% from the last year. The Dubai carrier, which is the world’s largest operator of the Boeing 777 and A380, received 17 new aircraft bringing its total fleet count to 268 at the end of March.

Commodity Tracker

Business Events this Week In UAE

Run The Track – 18 May
@ Dubai Autodrome
18 May 2018
 
Business Updates


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CRIF GULF DWC LLC · 48 BURJ GATE, DOWNTOWN BURJ AREA, SHEIKH ZAYED ROAD · Dubai · United Arab Emirates