Saudi National Bank Chair Resigns After Credit Suisse Remark
Key takeaways:
- Al Khudairy resigned due to personal reasons. His comments triggered a slump in Credit Suisse's stock and bonds, prompting the Swiss government to step in and arrange its takeover.
- Middle Eastern investors have become more cautious of making fresh investments in global banks after emerging as some of the hardest hit in the Credit Suisse turmoil.
Counter arguments:
- Al Khudairy sought to calm the market after his comments, saying that the panic surrounding Credit Suisse's share slide was "completely unwarranted".
- UBS Group AG agreed to buy Credit Suisse in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets.
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UBS Seeks Mideast Dealmaking Revival With Credit Suisse Takeover
Key takeaways:
- UBS is looking to leverage its private banking relationships with wealthy royals and family-owned businesses to win deals. UBS is looking to cherry pick top dealmakers from Credit Suisse’s investment bank.
- The Middle East has become a key destination of capital globally with its cash-rich sovereign wealth funds deploying money at a record pace.
Counter arguments:
- It is not clear if UBS's plans will result in an agreement. Middle Eastern investors are becoming more cautious of making fresh investments in global banks after emerging as some of the hardest hit in the Credit Suisse crisis.
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Credit Suisse Losses Make Gulf Investors Wary of Bank Deals
Key Takeaways
- Middle Eastern investors are becoming more cautious of investing in global banks after being hard hit by the Credit Suisse crisis.
- The crisis is accelerating a pivot toward other sectors such as healthcare and technology.
- The reputational damage from any soured deals and potential financial losses linked to their investments are causing regional investors to be more cautious.
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StanChart Sells Jordan Unit to Arab Jordan Investment Bank
Key Takeaways
- Standard Chartered is selling its business in Jordan to Arab Jordan Investment Bank to simplify its operations and focus on higher growth markets.
- All Jordan-based employees and clients will be transferred to AJIB as part of the deal.
- The sale has already been approved by the Central Bank of Jordan, but no terms were disclosed.
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Saudi Aramco Deepens China Push With $3.6 Billion Refinery Deal
Key Takeaways
- Saudi Aramco is expanding its presence in China's energy sector by acquiring 10% of Rongsheng Petrochemical Co. for $3.6 billion and committing to sell 480,000 barrels of crude oil per day to Rongsheng's refinery over 20 years.
- This is Aramco's biggest-ever foreign acquisition and part of its strategy to convert 4 million barrels of crude into petrochemicals by the end of the decade.
- Aramco's recent deals in China are aimed at securing its position as a dominant crude supplier to China amid competition from Russia.
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Saudi Arabia’s Humiliation Is Iran’s Big Prize
Key takeaways:
- The agreement between Iran and Saudi Arabia was superintended by China, demonstrating its growing diplomatic clout.
- Iran has the most to gain from the deal, as it has been successful in its decades-long policy of intimidation against its regional rival.
- Saudi Arabia has little to offer Iran in terms of diplomatic benefits, and may have to offer compensation in kind to placate the Iranians.
Counter arguments:
- China made little contribution to the negotiations, but by putting its imprimatur on the deal Beijing has the onerous responsibility of keeping the signatories from going for each other’s throat.
- The US has little to lose and the Saudis have not foreclosed on the Abraham Accords.
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India, UAE Mull Options to Curb FX Rate Risks on Rupee Trade
Key Takeaways
- India is exploring ways to hedge exchange rate risks in its proposed rupee-based trade with the UAE.
- India aims to internationalize the rupee to reduce dollar demand and insulate its economy from global shocks.
- The RBI's plan to settle international trade in the local currency will allow importers to make payments in rupees and exporters to be paid from the designated special account.
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