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The Sultanate of Oman and Republic of Bulgaria are set to sign a Memorandum of Understanding (MoU) to strengthen their bilateral energy relations within the next two months. This agreement was reached during a meeting on August 23, 2024, between Eng Salim al Aufi, Oman’s Minister of Energy and Minerals and Vladimir Malinov, Bulgaria’s Minister of Energy in the capital city, Sofia.

According to a statement issued by Bulgaria’s Ministry of Energy, the MoU aims to boost cooperation in areas such as oil and gas, hydrogen, renewable energy production and storage, with the possibility of Oman investing in Bulgaria.

Malinov emphasised the importance of securing and diversifying energy supplies as a vital aspect of Bulgaria’s national security. “Guaranteeing security and diversification of energy supply is an integral part of Bulgaria’s national security. In this respect, one of the main goals facing our country is securing supplies of liquefied natural gas in the long term,” he stated.

He highlighted the need for long-term liquefied natural gas (LNG) supplies, mentioning that Bulgaria will soon begin commercial operations at the LNG terminal near Alexandroupolis, Greece. Al Aufi and Malinov discussed the prospect of Oman supplying LNG to Bulgaria to meet the demands of the upcoming winter season.

Oman expressed interest in Bulgaria’s expertise in operating pumped storage hydro plants for renewable energy storage. Additionally, both countries explored potential collaboration in hydrogen energy, with Bulgaria positioning itself as a gateway for hydrogen producers and traders in Europe. “Bulgaria can be a gateway for producers and traders of hydrogen that can be realised in Europe,” Malinov noted.

He also mentioned a collaborative project with Greece to build a hydrogen interconnector, which has EU recognition as a Project of Common Interest, with Romania showing interest in joining. “We have already developed, together with Greece, a project to build an interconnector for hydrogen, which has also been granted the status of a Project of Common Interest to the EU. Romania is interested in joining the project as well,” Malinov added.

The topics discussed will be formalised in the forthcoming memorandum, laying the foundation for enhanced bilateral relations between Oman and Bulgaria.

Source:https://omanpetroleumandenergyshow.com/News/oman-and-bulgaria-to-enhance-energy-cooperation

The Ministry of Housing and Urban Planning today signed 31 usufruct contracts in Dhofar Governorate for investment on a total area of 2.3 billion square metres, to the tune of more than OMR22 million.

The contracts provide for the establishment of investment projects in agricultural, industrial, medical and commercial sectors.

Twenty-five of the contracts deal with investment in agricultural and food security sectors at a value of more than OMR19.5 million. They include a contract to establish headquarter buildings for Oman Agricultural Society in the Wilayat of Thamrait, a logistics centre and service facilities.

Four of the contracts provide for investment in industrial, medical, residential and commercial sectors to the tune of more than OMR3 million.

The contracts were signed by Eng. Hamad Ali Al Nazwani, Undersecretary of the Ministry of Housing and Urban Planning for Housing, and representatives of the companies and establishments undertaking the projects. The ceremony was also attended by representatives of Oman Investment Authority (OIA), the Ministry of Agriculture, Fisheries and Water Resources, and the Najd Agricultural Area Development Office.

The Ministry of Housing and Urban Planning is making efforts to activate the usufruct programme, considered an effective means to support the local economy, enhance investment and stimulate economic growth. The initiatives include the generation of employment opportunities for Omanis and the establishment of projects that contribute to self-sufficiency in some vital sectors.

Source:https://timesofoman.com/article/149128-land-lease-contracts-worth-omr22mn-signed-for-investments-in-dhofar-governorate-1

Qatar Insurance Company (“QIC Group”, “QIC”), the leading insurer in Qatar and the Middle East and North Africa (MENA) region, has reported a net profit of QR360m for the first half of 2024, rising 11% from QR325m over the same period in 2023. Following a meeting of the Board of Directors dated 14 August 2024, which was presided over by Sheikh Hamad bin Faisal bin Thani Jasim Al Thani, Chairman of QIC Group, the Board approved the financial results.

Sheikh Hamad bin Faisal Al Thani, Chairman of QIC Group, stated: “QIC’s excellent H1 financial results reflect the strong momentum the company has built in the first six months of 2024. The Group is focused primarily on growing its presence in domestic and regional markets – an approach which has been bolstered by continued investment in its already best-in-class digital services.”

Salem Al Mannai, Chief Executive Officer of QIC Group, said: “In a very promising set of results for H1 2024, the backbone of QIC’s robust financial performance continues to be the company’s exceptional operational efficiency, supplemented by a deliberate shift towards increasing the proportion of premiums generated in the MENA region. This is reflected in the fact that the domestic and MENA GWP increased by 44% year-on-year to QR2.7bn. As we move into the second half of the year, QIC is proactively pursuing further opportunities to create process efficiencies and foster automation, while continuing to prioritise growth in its profitable business lines in Qatar and the Middle East.”

Mannai added: “The strategic restructuring of our UK motor business is in line with QIC Group’s strategy to streamline loss-making and low margin businesses and to bring the international operations of the Group back to profitability. This restructuring positions the Group for greater stability and profitability with controlled exposure to UK Motor as a reinsurer instead of direct insurer. As part of this decision, QIC Group will continue to own the Gibraltar-based subsidiaries, West Bay Insurance Plc and Markerstudy Insurance Co. Ltd. By successfully completing this restructuring, the Group is confident that it will have a well balanced portfolio between its MENA and international business. We are pleased with the outcome, and we look forward to further implementing our strategy, which has, so far, brought us significant success and improved consistent profitability.”

The Group posted Insurance Service Results of QR339m in H1 2024, compared to QR236m in H1 2023. QIC has shown considerable resilience to navigate the aforementioned global challenges, reporting an investment income of QR465m for H1 2024, compared to QR501m for the same period last year. The return on investment stood at 5%. As of the end of H1 2024, the composition of QIC’s investment portfolio continues to remain stable and consistent with the previous year.

Sustainability continues to be a key focus for QIC, as the first insurer in the Middle East to sign United Nations Environment Programme-Finance Initiative’s Principles for Sustainable Insurance (UNEP-FI PSI) last year.

Source:https://thepeninsulaqatar.com/article/15/08/2024/qic-group-reports-net-profits-of-qr360m-in-h1-2024

Gulf International Services (“GIS” or “the Group”; QE ticker: GISS), yesterday reported a net profit of QR356m for the six-month period ended 30 June 2024, representing an incline of 27% compared to H1 2023. The drilling segment has made significant progress in strengthening its financial stability through strategic initiatives focused on enhancing profitability and optimizing operations for greater efficiency. The recent restructuring of the loan with a longer tenor and competitive rate, along with the acquisition of the three jack-up rigs, positions GDI as the largest Qatari drilling service provider.

Regarding updates on the overall fleet and contract status, the company secured a four-year contract extension for certain onshore rigs that were set to expire this year. However, another onshore rig completed its contract during Q2 2024 and is currently off-contract. One of the lift boats was awarded a new three-year contract at the end of the first quarter of this year, with an improved day rate compared to its previous day rates, which will positively impact the company’s revenue.

GDI currently holds the majority market share in the Qatari offshore market, with a total of 12 operating rigs. The company will continue pursuing various strategies to expand its market share and drive sustained growth.

During the first half of 2024, GHC experienced an increase in demand for helicopters supporting offshore oil and gas services in both domestic and international markets. The segment continued to experience enhanced business performance, attributed to increased flying hours within both domestic and international operations. In line with its fleet upgrade strategy and as previously announced, GHC signed an aircraft acquisition contract with a reputable supplier to supply five helicopters, with an option to add an additional five aircrafts. The first four helicopters are expected to be delivered in the second half of this year.

Al-Koot, a leader in Qatar’s medical insurance sector, demonstrated strong performance in the first half of 2024 by successfully renewing major contracts and in its general line of business, Al-Koot maintains its leadership in the local energy insurance market, offering the largest capacity for mega-energy risk in Qatar while also covering non-energy risk.

Throughout the year, Al-Koot renewed major clients and its international portfolio by acquiring new clients in the first half of 2024. Additionally, Al Koot launched its motor business in Q2 2024, with ongoing efforts to capture market share and grow this segment. Al-Koot consistently upholds its strong financial strength and issuer credit rating of ‘A-’ with stable outlook from S&P ratings.

For the six-month period ended 30 June 2024, the Group reported a revenue of QR2.1bn, an increase of 9% compared to the same period of last year. This growth was driven by improved revenue in all segments except catering, leading to enhanced Group revenue.

GIS will host an IR earnings call with investors to discuss its financial results, business outlook and other matters on Tuesday, 20th August 2024, at 1:30 p.m. Doha time. The IR presentation accompanying the conference call will be posted on the ‘financial information’ page within the GIS website Investor Relations section.

Source:https://thepeninsulaqatar.com/article/15/08/2024/gis-reports-net-profit-of-qr356m-in-h1-2024

The volume of real estate trading in sales contracts at the Department of Real Estate Registration at the Ministry of Justice during the period from Aug. 04 to 08, reached QR217,052,596, while the total sales contracts for residential units in the Real Estate Bulletin during the same period reached QR17,662,685.

The weekly bulletin issued by the Department shows that the list of real estate properties traded for sale included vacant lands, houses, residential buildings, a residential-commercial building, shops, and residential units.

Sales were concentrated in the municipalities of Al Rayyan, Doha, Umm Salal, Al Daayen, Al Shamal, Al Wakrah, Al Khor and Al Dakhira, and the areas of The Pearl Island and Lusail 69.

The volume of real estate trading in sales contracts registered in the Real Estate Registration Department at the Ministry of Justice during the period from July 28 to Aug. 01 exceeded QR 131 million.

Source:https://thepeninsulaqatar.com/article/15/08/2024/real-estate-trading-volume-exceeds-qr234-million-in-week

Qatar’s financial sectors will continue to witness significant net profits in the coming quarters due to increasing interest rates. A report by Fitch Solutions indicated that huge net interest margins have continued to support the bank’s profitability this year.

The net profits of Qatar National Bank surged by 7 percent y-o-y to QR8.2bn during the first half of 2024, whereas QIIB registered a growth of 6.5 percent to QR655m during the same period as compared to H1 2023. Moody’s assigned “A2” Ratings to QIIB with a stable outlook.

Market experts highlight that increased lending rates and revving credit growth will persist to strengthen the banks’ income. Nevertheless, pressure on net profits is expected to emerge next year, due to cuts to policy rates commencing from September 2024, and higher funding costs, due to increased reliance on domestic funding, and a lower loans-to-deposit ratio.

The report said: “Higher for longer interest rates will bode well for the banks’ profitability. However, this could put pressure on banks with elevated exposure to the struggling real estate sector, leading to a tickup in non-performing loans.”

Meanwhile, non-performing loans inched up from 3.7 percent in 2022 to 3.9 percent during the past year. Additionally, banks have adequate provisions for such exposures.

In terms of its asset quality, the country’s banking industry NPL ratio surged from 2.2 percent in 2019 to 3.9 percent in 2023, primarily due to the end of pandemic-related support and the struggling realty market.

On the other hand, banks across the country remain well-capitalised, with the capital adequacy ratio (CAR) growing from 18.6 percent in 2019 to 19.2 percent in 2023.

In the funding structure, the financial institutes are largely dependent on global funding.

“While the share of foreign funding has declined from a recent high of 40 percent in October 2021 to 34 percent in December 2023, this proportion remains high, especially compared to peers, exposing the banks to vulnerabilities,” it said.

Researchers stressed that new regulations to disincentivise support on non-resident deposits for financing are expected to reduce the exposure to foreign funding.

However, on the liquidity side, the loan-to-deposit ratio has been constantly rising over the years, reaching 127.1 percent in December 2023.

Albeit the lending opportunities are maximised, the market experts elucidate that “It is above the prudential limit of 100 percent and underlines possible vulnerabilities to liquidity risks if banks do not have sufficient funds to cover withdrawals.”

“The QCB has attempted to address this issue by modifying the loan-to-deposit ratio calculation to include banks’ borrowing with different maturities in 2022, but the ratio has continued to increase. That said, we believe that these risks will be offset by the sovereigns’ substantial foreign assets,” it added.

Additionally, the Qatar Investment Authority (QIA) has acquired $475bn in assets under management, equivalent to 200 percent of GDP and 25 percent of bank assets.

Source:https://thepeninsulaqatar.com/article/16/08/2024/soaring-interest-rates-to-bolster-financial-sector

Es’hailSat, the Qatar Satellite Company, visited Algeria TV during the past week to discuss areas for potential collaboration on broadcasting of TV channels in the country with Es’hailSat’s premier satellite services.

Es’hailSat provides satellite, broadcast, teleport and managed services from Doha, Qatar and powers this relationship with more than 12 years of experience in catering to governments, broadcasters, telecommunication companies, enterprises, and mobility applications across the Middle East and North Africa.

“Es’hailSat is delighted to collaborate with Algeria TV to support various broadcasting initiatives via our satellite infrastructure.” said Ali Ahmed Al-Kuwari, President and CEO, Es’hailSat.

“We believe that the experience in providing satellite services to the premier broadcasters, governments and enterprises across Middle East and North Africa aligns Es’hailSat perfectly Algeria TV approach of continuous improvement of the broacasting and information technology sectors of
Algeria.”

Source:https://thepeninsulaqatar.com/article/16/08/2024/eshailsat-algeria-tv-discuss-joint-initiatives-in-satellite-services

The Qatar Stock Exchange (QSE) index ended the current week’s trading with an increase of 0.72 percent, gaining 72.460 points to its balance, thus rising to 10,1251 points, supported by the telecommunications sector, which achieved weekly gains of 3.590 percent growth, and the banking and financial services sector, which increased by 1.520 percent.

In this context, financial analyst Youssef Bouhlaiqa told Qatar News Agency (QNA) that the QSE index would maintain its performance and continue to rise in the coming period, benefiting from the results achieved by the listed Qatari companies.

Bouhlaiqa said that the figures revealed by the QSE regarding the companies’ results would increase the attraction of investors and enhance the market’s liquidity in the coming period.

He pointed out that the QSE index rose by 0.7 percent in the past five days, while it fell by 0.7 percent in the past 30 days, but it is 10.5 percent higher than its lowest level on May 30, 2024.

Figures issued by the QSE showed a 5.5 percent increase in the profits of listed Qatari companies during the first half of 2024, reaching QR25.72bn, compared to nearly QR24.386bn in the same period of 2023.

The banking and financial services sector recorded net profits in the first half of 2024 of QR14.9bn, or around 58 percent of the total profits of listed companies, followed by the industrial sector with total profits of QR4.645bn, then the communications sector with QR2.164bn.

The services and consumer goods sector achieved the largest gains in the first half of 2024, with its net profits growing by 22.7 percent, while the net profits of the real estate sector declined by 12.32 percent.

Source:https://thepeninsulaqatar.com/article/16/08/2024/expected-rise-in-qse-index-performance-supported-by-companies-results