Russian Steel Tycoon Joins Business Elite Opening in Abu Dhabi, Dubai Revives Palm Island Project After 14 Years Amid Rebound, Turkish Markets Hope Simsek Can Revive ‘Rational’ Policies.
Saudi Shoulders Burden to Support Oil Market With Extra Cuts
Key Takeaways
Saudi Arabia will make an extra 1 million barrel-a-day oil supply cut in July to stabilize the market.
The additional cuts came at the cost of ceding ground to Russia and the UAE, who made no commitment to cut output deeper.
The OPEC+ group pledged to maintain their existing cuts until the end of 2024, but the near-term crude prices will largely depend on a “test of wills” between stability-seeking Saudi Arabia and bearish paper traders.
Dubai’s Luxury Real Estate Sales Drive Global Rebound
Key Takeaways
Dubai’s luxury real estate market is driving a rebound in sales, accounting for 17% of global luxury sales and surpassing other major cities like Hong Kong and New York.
The global luxury real estate market picked up in the first quarter of 2021 after slowing activity due to higher interest rates and geopolitical risks.
Despite an 11% increase in sales volume, the value of properties purchased slipped 4% to $7.2 billion, with Knight Frank estimating that luxury purchases will total up to $27 billion this year, down from $33 billion in 2020.
Dubai Revives Palm Island Project After 14 Years Amid Rebound
Key Takeaways
Dubai’s ruler approved a new development plan for the Palm Jebel Ali, reviving a project that was halted in 2008.
The project’s revival comes amid a rebound in Dubai’s property market, which has benefitted from an influx of newcomers, but highlights the plight of hundreds of investors left in limbo.
Despite the messy fallout of canceled real estate projects, demand for luxury properties in Dubai is driving a global rebound in the luxury real estate market.
Turkish Markets Hope Simsek Can Revive ‘Rational’ Policies
Key Takeaways
Turkish investors are optimistic about the country’s economic future with the return of former Wall Street banker Mehmet Simsek as Treasury and Finance Minister.
Simsek has signaled a move towards more conventional economic policies, which is expected to boost the market and ease investor concerns.
While Simsek’s appointment is seen as a positive step, doubts remain over Erdogan’s influence on the economy and the need for adjustments to Turkey’s external imbalances and credit expansion.
Aramco Taps Turkish Firms for $50 Billion Building Spree
Key Takeaways
Saudi Aramco has met with Turkish contractors to discuss potential projects worth $50 billion in investment for infrastructure construction, refinery, pipeline, and management buildings in the Gulf kingdom.
This collaboration highlights the improving trade ties between the two countries after they resolved the diplomatic spat over the killing of Jamal Khashoggi.
The partnership is a lifeline for Turkish contractors who have faced a decline in government-backed investment projects and lost business due to the war between Russia and Ukraine.
Lucid Raising $3 Billion With More Money From Saudi Owners
Key Takeaways
Lucid Group Inc. is raising around $3 billion in a common stock offering, with the majority coming from Saudi Arabia’s Public Investment Fund, after a more than 60% stock slump in the last year.
The Saudi bet on Lucid includes plans to build an EV factory in the country, as the kingdom aims to become a hub for automakers and diversify its economy away from oil.
Lucid has been struggling recently with heavy costs, production challenges, and competition in the EV market, and the additional funds may help solve financial flexibility issues in the near term, but the company may need additional support in 2024.
Russian Steel Tycoon Joins Business Elite Opening in Abu Dhabi
Key Takeaways
Russian steel tycoon Vladimir Lisin has established two SPVs in Abu Dhabi, adding to the four entities he set up earlier this year.
Abu Dhabi has become a magnet for the world’s financial elite, drawn by low taxes, international connectivity, and a comfortable lifestyle.
The emirate plans to expand ADGM tenfold to become one of the world’s largest financial districts.
Qatari LNG Shipments to Europe Drop in 2023 as Gas Prices Slump
Key Takeaways
Qatar is sending less of its LNG to Europe due to slumping prices.
Less than 18% of Qatar’s LNG output has sailed to Europe so far this year, down from 25% in 2022.
European gas prices have tumbled to less than €25 ($27) a megawatt hour, making it less attractive as an LNG destination.
Qatar Airways Plans for Future Without First Class on Long-Haul
Key Takeaways
Qatar Airways is phasing out first class on its next-generation long-haul aircraft, with CEO Akbar Al Baker stating that the investment in the most luxurious seats doesn’t justify the returns given that the airline’s business-class offering provides similar perks.
The move runs counter to an industry trend that has seen other airlines doubling down on their high-end offerings, but Al Baker believes the future lies in business class, which Qatar has branded as its “Q-suite” product.
Qatar Airways is about 15 planes short of the 25 it expected to take delivery of this year, with shortages of parts and snowballing backlogs in the production line hitting plane deliveries, and it doesn’t expect its own delivery delays to be resolved before the end of next year.