Qatar Airways to announce another annual loss this year

Qatar Airways to announce another annual loss this year, CEO stated

The state-owned airline has quickly expanded to new destinations since it lost access to 18 Middle East cities in 2017 due to a diplomatic breach between Qatar and some other Arab states.

By ReutersTFM Watch

(Reuters): Qatar Airways will announce a second consecutive yearly loss this year, its chief executive stated on Wednesday, accusing higher fuel costs and unfavourable currency exchange rates.

The airline has rapidly expanded to new destinations since it lost access to 18 Middle East cities in 2017 due to a diplomatic breach between Qatar and some other Arab states.

“We reported a loss last year and we will announce another loss this year but it doesn’t mean that Qatar Airways is not going to expand or invest,” Akbar al-Baker said to reporters at the ITB travel fair in Berlin.

“We have a very strong balance sheet, regardless if we are temporarily making losses because of our additional operating costs, and the increasing fuel price and the loss of foreign exchange.”

Qatar Airways lost access to cities in Saudi Arabia, the United Arab Emirates, Egypt and Bahrain in June 2017, when these four countries cut ties with Qatar after condemning it of supporting terrorism. Qatar denies the charges.

The airline has also been barred from their skies, meaning its flights to the west and south of the Gulf have to fly longer routes around the four countries, growing its fuel costs.

The Airways reported a $69 million loss last year, which it accusing on the higher operating costs caused by the diplomatic disagreements.

In 2017, Baker was stated that the airline’s owners might have to put in additional capital if the issues continued over the long term.

Still, on Wednesday he said he did not expect to seek a capital injection in the predictable future.

Qatar Airways declared seven new destinations on Wednesday, including Malta and Somalia’s capital Mogadishu and said it would announce a further seven in the second half of current year.

It will continue to operate its fleet of 10 Airbus A380 aircraft for the “predictable future,” Baker said. Airbus announced last month it would end A380 production in 2021.

Source: Reuters

– TFM Watch

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Egypt’s EFG Hermes is recommending on $500 million merger and acquisition agreement in Saudi Arabia

Egypt’s EFG Hermes is recommending on $500 million merger and acquisition agreement in Saudi Arabia

Highlights

  • Saudi Arabia has made captivating bigger foreign investment a key part of its economic Vision 2030 strategies.
  • EFG Hermes is one of the banks advising on the possible $1 billion listing of Fawaz Alhokair Group’s Arabian Centers Company.
  • EFG Hermes is working at a possible final quarter $300 million IPO, Fahmi said.
– TFM Watch

EFG-Hermes-eyes-acquisition-in-Nigeria-Kenya-brokerage-licence.jpg

Egypt’s EFG Hermes is taking a shot at a $500 million merger deal in Saudi Arabia and assumes more deals should come out of the kingdom in current year, particularly from the private section, its head of investment banking said to Reuters.

Saudi Arabia has made captivating bigger foreign investment a key part of its economic Vision 2030 strategies as it attempts to enhance the economy far from its dependence on oil. The kingdom’s looming consideration in the FTSE Russell developing markets this month is assuming billions of dollars of foreign capital flows.

“Saudi I think will be remarkably occupied,” Mohammed Fahmi stated, on the sidelines of the bank’s investment gathering in Dubai which is occurring this week. “I’m seeing a lot of RFPs (request for proposals) originating from Saudi for IPOs. Private sector organizations hoping to go public, which I believe is a valuable thing.” The bank is additionally advising on an initial public offerings (IPO) in Saudi Arabia, Fahmi stated, however would not give any more details.

EFG Hermes is one of the banks advising on the possible $1 billion listing of Fawaz Alhokair Group’s Arabian Centers Company expected in the second quarter, Reuters has posted, however EFG has declined to comment on its job.

Another official at EFG Hermes told Reuters in December that the investment bank was working on bigger M&A delas in health sector in Saudi Arabia.

Additionally, Fahmi said there were discussions in progress in the automotive, banking and facilities management segments in the kingdom and in the United Arab Emirates.

In Egypt, EFG Hermes is working at a possible final quarter $300 million IPO, Fahmi said.

Another IPO for state-possessed Alexandria Container and Cargo Handling may happen when the second quarter of this current year, Mohamed Ebeid, co-CEO of EFG Hermes Investment Bank told Reuters. EFG Hermes is managing deal along with Citigroup.

Egypt this week revitalized its privatization program, which has lain dormant for more than a decade, with the clearance of a 4.5 percent stake in tobacco monopoly Eastern Company, which EFG advised on.

EFG Hermes is additionally taking a shot at various IPOs with privately owned businesses in Egypt, Ebeid stated, for the most part on the industrial side.

($1 = 17.5000 Egyptian pounds)

Source: Reuters

– TFM Watch

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Saudi prince foresees ‘good things’ with India and agrees on need to increase pressure on countries supporting terror

Modi-Salman.jpg
Saudi Crown Prince Mohammed bin Salman attends a meeting with Prime Minister Narendra Modi at Hyderabad House in New Delhi on February 20, 2019.  | Photo Credit: REUTERS

Saudi prince foresees ‘good things’ with India on visit overshadowed by Kashmir

Reporting by Sanjeev Miglani; Editing by Nick Macfie

NEW DELHI (Reuters) – India rolled out the red carpet for Saudi Arabia’s Crown Prince Mohammed bin Salman on Wednesday at a time when it is trying to build diplomatic support against Pakistan following a militant attack in the disputed region of Kashmir.

The crown prince this week was given a lavish welcome in Pakistan where the two sides signed memoranda of understanding valued at about $20 billion to help prop up Pakistan’s economy.

But the Kashmir attack threatens to overshadow the India trip as New Delhi seeks to drum up support against Pakistan. India will forcefully raise the issue of cross-border terrorism during the talks with the Saudi delegation later in the day, officials said.

Pakistan says it only gives diplomatic support to the Kashmiri people in their struggle for self-determination.

The crown prince hailed the relationship with India, a top consumer of Saudi crude oil, after a ceremonial welcome at the imposing red sandstone presidential palace.

“Today we want to be sure that this relation is maintained and improved for the sake of both countries. With the leadership of the president and the PM, I am sure we can create good things for Saudi Arabia and India,” he said in brief remarks before heading into talks with Indian leaders.

The prince is also expected to visit China during a tour that will be his first through the region since the storm over the murder of Jamal Khashoggi, a Washington Post columnist, at the Saudi consulate in Istanbul in October.

While the killing of Khashoggi, a known critic of the crown prince, has strained Saudi Arabia’s ties with the West and battered the prince’s image abroad, both India and Pakistan had expected a scaling up of investments during his trip.

Indian Prime Minister Narendra Modi, who broke with government protocol to welcome the crown prince at the airport on Tuesday, has vowed a strong response to the bombing of a security convoy in Kashmir in which 40 paramilitary police were killed in an attack claimed by a Pakistan-based militant group.

Pakistan has said it would retaliate if attacked.

India, Saudi Arabia agree on need to increase pressure on countries supporting terror: Modi

The Hindu News

Supporters of terrorism and safe havens should face all possible pressure from the international community, said Prime Minister Narendra Modi on Wednesday, welcoming Saudi Crown Prince Mohammed Bin Salman Abdulaziz Al Saud to India.

Mr. Salman arrived in New Delhi on February 19 night, a day after concluding his high-profile tour of Pakistan and going back to Riyadh. In a special gesture, Mr. Modi received Mr. Salman at the airport.

“In Pulwama, we saw an instance of heinous terrorism and according to us terrorists and supporters of terrorism should face all out pressure from the international community,” said Prime Minister Modi talking about the attack against CRPF personnel, at a press conference that he addressed along with with the Saudi Crown Prince.

In his press statement, Mr. Salman said his country would cooperate with India in tackling terrorism, including intelligence sharing.

Mr. Salman said that ties with India was in the blood of the Saudi people and that his country will invest around $100 billion in India. “We have common goals in the energy, and agriculture and we will diversify this spirit to other sectors. We have also diversified to petrochemical sector in India. Since 2016 we have invested $44 billion in India,” he said.

The visit is the first from the Saudi dignitary who is known for bringing in a different vision to the oil rich economy which is a crucial energy supplier to India. Prime Minister Modi described Saudi Arabia as one of the most valuable strategic partners of India

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