Qatar

Qatar Airways is reviewing plans for its own domestic Indian airline due to “confusing” foreign ownership rules and could work with a partner in India or take a stake in IndiGo instead, its chief executive said on Tuesday. The state-owned Gulf carrier has long coveted the Indian aviation market, which is the fastest growing in the world, and in 2017 said it would set up a domestic airline, a year after India eased foreign investment rules for the sector, Reuters reported.
Read more
Credit Suisse Group AG plans to buy back about 5.9 billion francs ($6 billion) of debt issued after the financial crisis to the Qatar Investment Authority and Saudi Arabia’s Olayan family to cut funding costs, Bloomberg News reported. The bank will redeem the contingent convertible bonds -- which automatically become equity when reserves fall below pre-set levels -- on Oct. 23, the first opportunity to do so, according to a statement from the bank on Tuesday.
Read more
President Recep Tayyip Erdogan has found a benefactor to help pull Turkey from the brink of a financial crisis as Qatar promised to invest $15 billion in the country, Bloomberg News reported. The lira extended gains to 6 percent after Qatar’s Emir Sheikh Tamim Bin Hamad Bin Al Thani made the pledge after a 3-1/2-hour meeting with Erdogan in Ankara on Wednesday. It follows a string of urgent steps Erdogan has taken to protect its economy from an escalating feud with U.S. counterpart Donald Trump over an American pastor held in Turkey.
Read more
Qatari phone carrier Ooredoo QSC decided to bid for the insolvent owner of Turkey’s biggest telecommunications company to rival an offer from Saudi Telecom Co., three people with knowledge of the matter said. Ooredoo will seek to acquire Ojer Telekomunikasyon AS, or Otas, a special purpose vehicle that owns 55 percent of Turk Telekomunikasyon AS, said the people, who asked not to be identified because the matter is private, Bloomberg News reported. The Saudi proposal remains on the table, they said.
Read more
Qatar is telling its banks to tap international investors to raise financing, instead of mainly relying on government funding, as the impact of the ongoing Saudi-led boycott puts pressure on liquidity, the Irish Times reported. The central bank is holding regular meetings with lenders to gauge how the standoff is affecting liquidity, and is encouraging banks to borrow internationally through bonds and loans to avoid further depletion of foreign reserves and credit-rating downgrades, said sources who asked not to be identified because the matter was private.
Read more
Solarworld, a former stock market darling that became one of the biggest casualties of Germany’s ill-fated solar boom, has been resurrected from insolvency with the help of investors from Qatar, the Financial Times reported. The company has agreed to sell its key assets — including its two manufacturing plants in Germany — for about €100m to a Qatari-German joint venture set up by Frank Asbeck, the founder of Solarworld, and Qatar Solar Technologies. The new company, Solarworld Industries, was formally unveiled in Berlin on Thursday.
Read more
Frank Asbeck, founder and former CEO of SolarWorld, has teamed up with Qatar to buy two of the insolvent panel maker's factories, sources familiar with the matter said. Qatar was a shareholder in SolarWorld with a stake of 29 percent before its collapse, while Asbeck held 21 percent, Reuters reported. The plants, located in the German states of Saxony and Thuringia, will be taken over by a new investment vehicle called SolarWorld Industries GmbH, which counts Asbeck and the Qatar Foundation as its owners, the sources told Reuters on Tuesday.
Read more
Investors in Qatari stocks, bonds and currency forwards were saddled with losses since the country was thrust into the epicenter of an unprecedented spat with its neighbors. The country’s stock market shrank by about $11 billion in value on Tuesday, the most since 2010, after Middle Eastern countries including Saudi Arabia and the United Arab Emirates cut ties with the Gulf nation, Bloomberg News reported. The country’s most liquid bonds tumbled last week as its sovereign rating was cut and bets against its currency surged.
Read more

Qatari Bonds: Sand in the Mechanism

The warmth Qatar inspires in the west as a highly-rated borrower turns out to be a local phenomenon. In the Gulf its ambitions to be a regional arbiter have made it deeply unpopular. A diplomatic rift with four of the emirate’s closest Arab neighbours threatens the future of both roles, the Financial Times reported. Saudi Arabia, Egypt, the United Arab Emirates and Bahrain have severed air, land and sea ties, accusing Qatar of supporting Islamist militants.
Read more