GCC business news of the day
Monday, 30 May 2016
In Russia, Energy Minister Alexander Novak said his country will not participate in OPEC meeting in Vienna, which will be held at the end of this week. Russia's statements come to hint that the meeting will not be conducive to reaching an agreement. According to an opinion poll conducted by Bloomberg this month, the vast majority of analysts do not expect an agreement by OPEC on freezing the production in Vienna meeting, especially that OPEC insists that any agreement on freezing must include producers from outside the organization. Russia joined discussions on freezing the production with OPEC in Doha last April, which collapsed after Iran's refusal to freeze its oil production. Oil prices knew last week a rise on both crude oils, which jumped over $50 a barrel for the first time in seven months. We stay with the oil as Kuwait allocated thirty four billion dinars, which is equivalent to $115 bn for spending on oil projects during the coming five years -- as quoted by Wafaa Zaabi, Managing Director Finance and Planning Kuwait Petroleum Corporation (KPC). Zaabi added that thirty billion dinars will be allocated for projects in Kuwait, pointing out that two thirds of the total amount will be spent on projects of exploration and production. On the other hand, Kuwait National Petroleum Company is conducting final negotiations to obtain loans at a value of six billion four hundred million dollars to finance the environmental fuel project from foreign financial institutions. We stay in Kuwait with the most prominent news as the talks on the UAE's Odptio Emirati group seizure of Kheir Group share in Kuwaiti Americana Company failed. The reasons are not yet clear for the failure of this deal, which was estimated at 3.5 billion dollars.