As a battle for market share rages in the oil industry, Libya is struggling to stand its ground. According to Mustafa Sanallah, chairman of Libya’s National Oil Corporation (NOC), more than half of the 432,000 barrels per day (bpd) is being exported. Libya may double crude output to 800,000 bpd by next month amid mediations to reopen oil and gas pipelines feeding export terminals. Sanallah said he is optimistic that the Es Sider and Ras Lanuf oil ports will open in four to five weeks. The two export terminal have a “good quantity” of crude in storage, Sanalla said. Should they reopen, NOC would only release them to the world market “gradually” so as not to drive the price of its crude lower, he said. Sanallah added that Libya aims to boost oil production to 1 million bpd by the end of the year, however analysts are not so optimistic. [Financial Times, Bloomberg, 6/16/2015]
No rush as foreigners gain Saudi stock access
On Monday, when Saudi Arabia allowed foreign investors direct access to its stock market, investors bought shares in less than 5 percent of equities. By the end of the trading day on Monday, qualified foreign investors held seven out of 170 stocks directly, owning less than a tenth of a percentage point of each company. Saudi International Petrochemical Co. was the biggest winner after Qualified Foreign Intermediaries (QFI) bought 0.02 percent of the stock. However, analysts say there has been no rush to acquire QFI status and that many global investors have decided to “wait and see.” [Bloomberg, 6/17/2015]
Egypt to adopt law regulating Suez Canal investment this week
Egyptian President Abdel Fattah al-Sisi will decide legislation organizing and governing investment in the Suez Canal zone this week, said Hani Sarie Eldin, head of Sarie Eldin & Partners’ advisory law firm. Sarie Eldin said the Law of Economic Zones of a Special Nature, which will organize investments in the zone, will exempt projects that direct their production to exports from customs. It will also affect other projects’ exemptions from tax on sales. Sarie Eldin explained that the law will convert the Suez Canal Axis into an economic zone with a single-window system that has the authority to grant investors licenses. Investment projects in the Suez Canal area will be subject to an income tax of approximately 22.5 percent. [DNE, 6/16/2015]
Oil slump to cost GCC states $240 billion in assets
Countries in the Gulf Cooperation Council (GCC), including the UAE and Saudi Arabia, stand to lose $240 billion in hard-earned assets in 2015 if oil prices will remain at low levels for the rest of the year. GCC governments have been urged to find other sources of revenue amid low oil prices, cut subsidies and budgets, and curtail government spending to avoid job losses, project cancellations, low bank liquidity, and other economic challenges. Alp Eke, director and senior economist at the National Bank of Abu Dhabi’s (NBAD), said the biggest loss will be incurred by Saudi Arabia, estimated to be around $160 billion, while the UAE will lose around $55 billion. [Gulf News, 6/16/2015]
Also of interest
Gulf markets slip in line with oil; Egypt stocks up after China deal | Reuters
Opening of Saudi exchange to foreign investment off to slow start | The National
Turkey to benefit from strong ties to Tadawul | Saudi Gazette
Kuwait’s IPG buys jet fuel from state-owned firm in rare move | Reuters
Egypt to increase cash subsidy programs in new budget | Ahram Online
Egypt, France 2014 trade exchange valued at $2.6 million | DNE
Egypt’s non-oil exports fall by 20 percent in first 5 months of 2015 | Egypt Independent
Arabian Cement launches social startup program in Suez | Cairo Post
Tunisia trade minister says inflation rate is convenient | African Manager
Morocco’s central bank keeps interest rate flat at 2.5 percent | Reuters