Saudi Aramco signs preliminary agreement for stake in Chinese refinery

Saudi Aramco has signed a memorandum of understanding to acquire a stake in a refinery in the eastern Chinese province of Zhejiang.

"We are exploring opportunities for new refining and petrochemicals facilities, making further investments in China," said Abdulaziz Al Judaimi, senior vice president, downstream at Saudi Aramco.

Saudi Aramco did not disclose the value of its stake in the Zhejiang Petrochemical’s new refinery project, however the holding is understood to be less than 15 per cent.

Saudi Aramco, the world's largest oil exporter has increasingly looked at refining and petrochemical investments in China, the world's biggest consumer of oil. The Saudi state company signed a long-term deal with Rongsheng, a petrochemical firm based in Zhejiang last month.

"This increase in customer base is due to our continuous focus and attention to the Chinese market,” said Mr Al Judaimi.

"We are also a major joint venture partner in a growing portfolio of refining and petrochemical assets in China,” he added.

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Sabic signs agreement for large petchems complex in China

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Last month, Sabic, the Middle East's largest chemicals company signed a preliminary agreement to develop a large-scale petrochemicals complex in the Chinese province of Fujian.

The company, which did not disclose the value of the deal at the time said it was part of its strategy to "seek more investment opportunities and strengthen its position in the Chinese market."

Sabic, which is currently in the process of being acquired by state-owned Saudi Aramco has looked to increase its market share in China, investing around $1.8 billion in the country, primarily in compounding facilities and joint ventures with local firms.

The moves by Saudi Aramco and Sabic come amid an increasing shift in the world’s top oil exporting country towards selling more higher-margin products in Asia. China, the world’s top importer of oil is said to account for nearly half of all growth in the petrochemicals industry, which generated $2.27 trillion in revenues in 2017 alone, according to the China Petroleum and Chemical Industry Federation.

In June, Saudi Aramco along with Abu Dhabi National Company signed an agreement to jointly invest in a $44bn refinery on the west coast of India, along with some state-backed domestic refiners.

Sun jukebox

Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)

This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.

Elvis Presley, Mystery Train (1955)

The B-side of Presley’s final single for Sun bops with a drummer-less groove.

Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)

Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.

Carl Perkins, Blue Suede Shoes (1956)

Within a month of Sun’s February release Elvis had his version out on RCA.

Roy Orbison, Ooby Dooby (1956)

An essential piece of irreverent juvenilia from Orbison.

Jerry Lee Lewis, Great Balls of Fire (1957)

Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.

SPECS

Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

'HIJRAH%3A%20IN%20THE%20FOOTSTEPS%20OF%20THE%20PROPHET'

%3Cp%3E%3Cstrong%3EEdited%20by%3A%3C%2Fstrong%3E%20Idries%20Trevathan%3Cbr%3E%3Cstrong%3EPages%3A%3C%2Fstrong%3E%20240%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Hirmer%20Publishers%3Cbr%3E%3Cstrong%3EAvailable%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A

Mane points for safe home colouring

Natural and grey hair takes colour differently than chemically treated hair
Taking hair from a dark to a light colour should involve a slow transition through warmer stages of colour
When choosing a colour (especially a lighter tone), allow for a natural lift of warmth
Most modern hair colours are technique-based, in that they require a confident hand and taught skills
If you decide to be brave and go for it, seek professional advice and use a semi-permanent colour

Two products to make at home

Toilet cleaner

1 cup baking soda

1 cup castile soap

10-20 drops of lemon essential oil (or another oil of your choice)

Method:

1. Mix the baking soda and castile soap until you get a nice consistency.

2. Add the essential oil to the mix.

Air Freshener

100ml water

5 drops of the essential oil of your choice (note: lavender is a nice one for this)

Method:

1. Add water and oil to spray bottle to store.

2. Shake well before use.

MATCH INFO

World Cup qualifier

Thailand 2 (Dangda 26', Panya 51')

UAE 1 (Mabkhout 45 2')

The specs: 2019 Mercedes-Benz C200 Coupe

Price, base: Dh201,153
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Nine-speed automatic
Power: 204hp @ 5,800rpm
Torque: 300Nm @ 1,600rpm
Fuel economy, combined: 6.7L / 100km

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

More Iraq election coverage:

• Voters face security threats and uncertainty

• First polls since ISIS defeat

• Iraq vice president says elections alone will not solve the country’s problems

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5