Gulf oil-producing countries would resist efforts to cut production at the next meeting of «OPEC»

It is expected that Gulf oil-producing countries would resist calls to cut production at the meeting of «Organization of Petroleum Exporting Countries» (OPEC) next month, as these countries continue to maintain its market share at the top of its priorities, as analysts in the oil sector see.

The decision of the 12 Member States of the Organization at its meeting in November to not cut the production, lead to deterioration of prices by 60 percent, before returning to the recovery in recent weeks.

The Saudi economist Abdulwahab Abu-Dahesh said: « maintaining market share remains a top priority for the Gulf States. »

He said that what encourage these countries more to do so is «indicators that the strategy adopted in November succeeded, as it led to a reduction of the US shale oil production and the number of drilling areas».

In the face of the sharp decline in its revenues from the oil, some «OPEC» countries especially Iran and Venezuela called publicly to cut production to shore up prices.

A former member of the Supreme Petroleum Council in Kuwait Moses Marefy: «I do not think that any change will happen during the OPEC meeting».

He added that «the Gulf states will continue to defend its market share, and they have the right (...) they will not accept to cut production at its expense, unless an agreement was reached between the non-oil-producing countries.»

It is likely that the burden of any cut in the production of «OPEC» is located on the shoulders of the Gulf countries, namely Saudi Arabia, Kuwait, the UAE and Qatar, which increased its production by about 3.5 million barrels per day since 2011.

At the moment, these countries pumped 16.8 million barrels of oil per day; equivalent to 55 percent of the total production of «OPEC», as Saudi Arabia alone produces 10.3 million barrels per day.

The United States reduced its imports of heavy oil from Latin America and replacing it with Canadian sand oil.

Loughani said that «that pay exporters from Africa and Latin America to search for new markets in the east», adding that more than 3 million barrels per day of high quality crude oil are being pumped to these markets in the competition for the Gulf countries.

He stressed that it puts additional pressure on OPEC countries, especially the Petroleum Exporting Gulf states of, pay them to cooperate in order to maintain their market share and even ensure new importers to additional quantities in the future».

It is likely that «OPEC» countries will be convinced to continue its strategy after the relative recovery of oil prices and lower US production of shale oil.

US Department of Energy data showed decline in crude oil production from 112 thousand barrels to 9.26 million barrels in early May.

Delegate of Kuwait in «OPEC» Nawal Fezia told reporters last week that «prices improve, the growth of supplies from non-member countries in OPEC, especially from oil shale is lower than before and demand bottoms out ».

Oil prices witnessed over the past few weeks an improvement by nearly 40 percent, but it is still less than the average, which exceeded 100 $ per a barrel in June of last year.

Fezia confirmed that the surplus in production dropped from about two million barrels in last year to between one million and 1.2 million barrels now.

But «Commerzbank» warned in early May that «surplus production in the oil market will continue until OPEC cut its production».

"Qatari Al Diar" sell "Barwa City" to the Retirement and Pension Authority with 7.6 billion riyals

"Al Shrque Gate" knew that Qatari Diar has recently sold Barwa City to the Retirement and Pension Authority, and the Qatari Diar had bought Barwa City from Barwa group with worth estimated at 7.6 billion riyals to help to ease its debts, on the grounds that Qatari Diar is the strategic partner of Barwa, and that is during sale of assets as part of a program that was concluded between the two parties and was announced of its completion in the month of March 2015.

According to the information, the Qatari Diar, has sold Barwa City with the same price at which it bought the project from Barwa Real Estate Group.

It was within the assets agreed to be transferred in accordance with the program, Barwa Real Estate Company share in Barwa Bank, Barwa Commercial Avenue, Barwa Al Sadd project ", which has been excluded from the program later in the amendment in the Convention," Barwa City project, and some other assets of the company's investment portfolio.

 In implementation of this program, Barwa completed the process of selling the company's shares in Barwa Bank successfully, amounting to 37.34% of the bank's shares to Diar Company versus final price of 2.39 billion riyals, in addition to the sale and transfer of ownership of its shares in Barwa Real Estate Company on the date of June 8, 2014 in exchange for a final price of about 7.6 billion riyals, and its shares in Barwa Commercial Avenue Company, amounting to 95% of the company's shares on the date of July 14, 2014 in exchange for an initial price of about nine billion riyals, and that for the benefit of Cyrenaica real estate company which wholly owned subsidiary for Qatari Diar, where all those deals were in exchange for the payment of debt owed by Barwa Real Estate Company.

According to information of "Sharque Gate" that there are now talks between Qatari Diar and the retirement and pensions in order to sell Barwa Commercial Avenue which is worth up to about nine billion riyals.

The Barwa Commercial Avenue is considered one of the longest projects in the world, as it runs with the length of 8.5 kilometers, and consists of five different interconnected areas at the same time with each other which are Gera, Safwa, Wogood, Arkan and Sayer representing a wide range of custom residential and commercial spaces, With a well-developed infrastructure network and service facilities which are designed for the convenience of tenants and their interest. Project facilities include 640 retail stores and medical centers, places of entertainment, number of restaurants and cafes, 730 offices, 540 housing units, and 12 thousand vehicles parking.

Barwa Commercial Avenue provides 908 thousand square meters of high-end facilities, and a mix of modern shopping malls, galleries, offices and high quality residential units that meet the needs of local communities and international companies also.

"Geera" section includes large residential apartments consisting of 460 residential units of one-bedroom category and two and three, all equipped, furnished and are modern and sophistication in addition to an abundance of safe interior parks, also includes a custom variety of commercial activities such as fashion shops, restaurants and banks.

 The second section "Safwaa" includes different spaces for shops, this section also includes a range of shops dedicated to all kinds of home and office furniture, also it includes offices of up to 222 offices,

The third section "good" is considered a comprehensive shopping center of high quality and includes shops, restaurants, entertainment centers, serviced apartments, a business center and other, also features a strategic location to serve every business.

 While "Arkaan" is the fourth section, where spaces of shops vary and all of which are customized for different purposes to meet all the needs and requirements of customers such as: equipped kitchens, bathrooms, floors, ceramic and etc., As for the offices, they amount up to 144 offices.

The final section, "Sayer" includes range of shops serve a variety of activities such as automobiles, building materials and trade in general, in addition to a set of offices up to 324 offices.

Saudi investments flowing into Morocco despite the drop in oil prices

Gradually concerns that have been raised about the impact of falling oil prices on the size of the Gulf investments in Morocco began to dissipate, after the declaration of the United Arab Emirates to do a series of investments in the Kingdom, while economic studies office "Mergermarket LTD" confirms that the Saudi financial investment in Morocco will witness important increase during the next phase.

The financial and economic consulting office said that Saudi investments will be in form of capital investment in Moroccan companies not listed on the stock exchange, the technique of this investment is to use Saudi financial funds for companies in need to finance or suffer from shortages in liquidity through the purchase of its shares.

Office denied in his study of the status of Saudi investments that the decline in oil prices has no effect on Saudi financial investments in Morocco, , despite the fact that oil is the main source of wealth in Saudi Arabia, pointing out that Morocco is still considered one of the favorite destinations for foreign investment in North Africa and the Middle East.

Office assured that the Saudi financial investment in Morocco will know the way to rise during the current year, stressing that there are many financial investments will be undertaken by Saudi financial funds in Morocco, "which is now under study or under preparation," the office said, who pointed out that the Saudi investments of Finance will matter three Arab countries, including Morocco alongside Arab Emirates and Egypt.

One of what reinforces the expectations of Economic Studies is the Mohammed bin Bader Al Dosari Declaration, Saudi Moroccan Business Council Member and the CEO of Mashreq Development aboutthe Saudi desire that their investments in Morocco reach up to 38 billion dirhams by 2016.

The new projections come in order to reduce the severity of several warnings launched from the global economic studies on the negative impact of falling oil prices on the Gulf investments in the world that Morocco was interested in these studies for being one of the countries which receive the Gulf investments during the past year.

These studies were based on the expectations of the International Monetary Fund, which said that the decline in oil prices to below 60 $ for barrel will record a deficit in the budgets of the Gulf States by 60 billion $, which is the first of its kind since 17 years.

Morocco managed to attract more than 15 per cent of the investments made by the Gulf countries towards the outside, which make Morocco bets that the size of Gulf investments will reach to 1042 billion dirham by 2024

Saudi Arabia to restructure Aramco to be separated from the Ministry of Petroleum

In unexpected move, the Council of Economic Affairs and Development agreed in Saudi Arabia on Thursday on the view of Prince Mohammed bin Salman Crown Prince to restructure Aramco, in a move designed to give the company more independence.

Sources also revealed for "Elaf" that the visions of the Crown Prince Mohammed bin Salman include separating Aramco from the subordination of the Ministry of Petroleum and Mineral Resources, so that the company to be independent, also Economic Council forms a legal committee to work on the restructuring of the company.

Sources indicate that the restructuring decision includes the conversion of the company into a holding company, includes number of specialized companies in oil and gas industry, production, exploration, refining, marketing, and other joint international projects.

Saudi Aramco controls 261 billion barrels of oil and 234 trillion cubic feet, and employs sixty thousand employees and a budget of 40 billion per year, also Aramco company manages giant joint petroleum projects, such as petroleum refineries in Greece, the Philippines, South Korea and the United States, worth up to about nine billion Saudi riyals, also Aramco manages several local oil refineries and joint ventures Petroleum products and other huge gas projects inside the kingdom, such as petroleum refineries in Jeddah, Riyadh, Yanbu, Rabigh and Ras Tanura.

Aramco date as far back as 1933, when Saudi Arabia signed an agreement with Standard Oil of California Company (Socal previously and now Chevron), where the company got a concession to explore for oil in the eastern coast of the Kingdom.

The duration of the agreement was sixty years, and then the company passed at various stages of changes in ownership. In 1936, (Socal) company sold half of its share of the franchise to Texas Company (Texaco currently), and Socal was operating through a subsidiary company called Klafornean Arabian Standard Oil Company (Casoc), and in May 1939 m, it held other supplemental agreement, added to the original agreement six years, then in 1944, was renamed Klafornean Arabian Standard Oil Company, and changed to the Arab-American oil company Aramco.

In 1948, Aramco sold 30% of its stake to Standard Oil Company of New Jersey, now known as (Ascon), and 10% to Sokona Vacuum Company (now known as Mobil Oil).

In 1962, the Saudi government established the first national oil company in the country, and entrusted the task of project preparation and implementation for the development of the petroleum and petrochemical industries in the country. And it was named the General Organization for Petroleum and Minerals (Petromin).

In 1973, the Saudi government got a stake in Aramco amounted to 25%, and increased in 1974, to 60%.

In 1980, it was amicably agreed that Aramco become owned by Saudi Arabia's 100%, with retroactive effect from 1976, after eight years, specifically in 1988, the Royal Decree was issued to establish the Saudi Arabian Oil Company (Saudi Aramco), to take over the management of Aramco's assets, and in the same year (1988), the Saudi government agreed to establish the Arab Company for marketing and refining "Smark", to be a branch of the General Organization for Petroleum and Minerals (Petromin). The establishment of "Smark" was an interim step to assemble the refining and distribution sectors of petroleum products under one area, and that to achieve the highest return from them.

In June 1993 AD, a royal decree was issued to merge the refineries and distribution facilities of petroleum products and the rights of Petromin, in joint refinery in the Saudi Arabian Oil Company (Aramco), thus the Saudi Aramco become responsible for all oil industry facility in the kingdom.

Saudi Arabia's Stock Market declines despite the rise in oil prices with fears related to Yemen

 Saudi Arabia's Stock Market fell in early trade on Wednesday, despite the rise in oil prices after the Yemeni Houthis attacked city in the Kingdom for the first time.

The main index of the Saudi market fell 0.1 percent with drop of two leading shares: Saudi Basic Industries Corporation (SABIC) and Saudi Telecom 0.9 and 2.8 percent respectively.

Houthi fighters launched an attack with mortars and rockets on Saudi border city on Tuesday for the first time since the start of the military campaign led by the Kingdom against them in late March.

The attack came after a statement from Riyadh to ensure that Saudi Arabia was considering a cease-fire to allow humanitarian assistance and call from Yemeni President Abed Rabbo Mansour Hadi from his exile in Saudi Arabia for talks between the political factions in Yemen.

And Saudi Capital Market Authority announced this week to proceed with the imposition of strict rules on direct foreign investment in the stock market and perhaps that disappointed investors who had hoped to see the huge flows at the opening of the market before the first wave of foreign funds next month.

 Egypt Stock Exchange turned its ascending course in the opening minutes of transactions on Wednesday to decline amid selling processes by local individuals for profit-taking after a strong ascending during the previous two sessions.

The main index fell 0.44 percent to reach to 8789.2 points and the secondary index 0.11 percent to reach to 473.3 points.

The turnover values reached to 118.945 million pounds.

Arab and foreign transactions tended to purchase while the Egyptians transactions tended to sales and institutions accounted for 22 percent of transactions so far.

Orascom Telecom lost 2.1 percent, Palm Hills lost 1.4 percent, Talaat Moustafa Group lost0.5 percent, Global Telecom lost one percent whilecastle lost 1.3 percent.

«Statistics»: inflation rise in Kuwait at a rate of 3.33 percent in March

Central Statistical Office data showed high indices of consumer prices «inflation» in Kuwait at a rate of 3.33 percent in March compared to the same month of 2014 on an annual basis.

The department said in its monthly statistical analysis of indices of consumer prices for the month of March that the rate of inflation in Kuwait rose in March from the level recorded in February on a monthly basis by 0.74 percent.

It added that the monthly index of consumer prices last March saw a rise in the seven major collections affecting the movement of indices, a decrease in four and stabilization in one group which is communication.

It explained that it distributes materials, services and goods most consumed by individuals and families on 12 core groups according to the Classification of Individual Consumption according to the recommendations of the Statistical Office of the United Nations.

It reported that the index of the first major group «Food and Beverage» rose in last March with 1.72 percent compared with the same month of 2014 at the time of the group rose by 0.14 percent on a monthly basis compared to last February.

It showed that the six sub-groups within the group «Food and Beverage» its  standard prices rose on a monthly basis compared to last February, while three groups experienced a decrease in their prices and one group is stable.

It pointed to the rise in the index of consumer price for the second major group «cigarettes and tobacco» last March by 11.87 percent on an annual basis and this figure rose by about 0.13 percent on a monthly basis.

Management indicated that the index of third main group «clothing and footwear» fell by 0.31 percent on an annual basis and fell 0.08 percent on a monthly basis, while inflation rose in the fourth main group «home furnishings and maintenance equipment » by 3.95 percent on an annual basis and rose by 0.42 percent from the levels recorded in last February.

It reported that the inflation in main fifth group «Health» rose in March by 2.07 percent on an annual basis and the index rose for the sixth group «Transportation» by 0.81 percent on an annual basis.

It added that inflation in the seventh main group «Telecommunication» rose in last March on annual basis by 0.10 percent and settled on a monthly basis at a time when the inflation rate rose for the eighth major group «recreational and cultural» on an annual basis by 0.93 percent.

It pointed to the rise in inflation in the main ninth group «Education» on an annual basis by 5.23 percent also inflation rose in the main group of the tenth group «restaurants and hotels» on an annual basis by about 5.12 percent.

Statistical Department showed in its report that the index for the eleventh group «miscellaneous goods and services» rose on an annual basis by 2.59 percent, also rose on a monthly basis by 0.15 percent, while the last group «housing services» saw an annual increase of 6.35 percent.

The index of consumer prices is considered a  tool to measure the changing price levels generally between the two periods either monthly or yearly and is usually a key indicator to measure inflation or deflation, as the state can compare through it atmaking economic and business decisions and formulating monetary and fiscal policies.