UAE President Okays Board of ADNOC Global Investment Arm

FILE PHOTO: General view of the ADNOC headquarters is seen in Abu Dhabi, United Arab Emirates, December 23, 2018. REUTERS/Hamad I Mohammed//File Photo
FILE PHOTO: General view of the ADNOC headquarters is seen in Abu Dhabi, United Arab Emirates, December 23, 2018. REUTERS/Hamad I Mohammed//File Photo
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UAE President Okays Board of ADNOC Global Investment Arm

FILE PHOTO: General view of the ADNOC headquarters is seen in Abu Dhabi, United Arab Emirates, December 23, 2018. REUTERS/Hamad I Mohammed//File Photo
FILE PHOTO: General view of the ADNOC headquarters is seen in Abu Dhabi, United Arab Emirates, December 23, 2018. REUTERS/Hamad I Mohammed//File Photo

United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan approved a board of directors for XRG, state oil giant ADNOC's new international investment arm, including Blackstone's Jon Gray and former BP boss Bernard Looney, ADNOC said on Thursday.

Abu Dhabi National Oil Company announced last month it was setting up XRG, saying it was worth over $80 billion and would focus on lower-carbon energy, including gas, and chemicals.

Sultan Al Jaber, ADNOC's chief executive, was appointed XRG's executive chairman.

Along with Gray and Looney, the board also included Egyptian

Nassef Sawiris, UAE Investment Minister and CEO of Abu Dhabi sovereign wealth fund ADQ Mohamed Hassan Alsuwaidi, Chairman of the UAE president's office for strategic affairs Ahmed Mubarak Al Mazrouei, and Jasem Al Zaabi, chairman of Abu Dhabi Department of Finance and telecoms conglomerate e&.

ADNOC has done a string of deals in gas, LNG and chemicals, which it considers pillars for its future growth alongside renewables. UAE state-owned renewables firm Masdar, in which ADNOC has a 24% stake, has also made several acquisitions.

ADNOC struck a deal in October to buy German chemicals maker Covestro for $16.3 billion, including debt. Covestro last month said its management and supervisory boards supported the takeover offer, which will be one of the largest foreign acquisitions by a Gulf state and ADNOC's largest.



China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)
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China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)

Chinese lawmakers are deliberating a draft of the country's first basic law specifically focused on the development of the private sector, the country’s Xinhua news agency reported.

“The law will be conducive to creating a law-based environment that is favorable to the growth of all economic sectors, including the private sector,” said Justice Minister He Rong, while explaining the draft on Saturday during the ongoing session of the Standing Committee of the National People's Congress, the national legislature.

The draft private sector promotion law covers areas such as fair competition, investment and financing environments, scientific and technological innovation, regulatory guidance, service support, rights and interests protection and legal liabilities.

The draft has incorporated suggestions solicited from representatives of the private sector, experts, scholars and the general public, the minister said.

China left its benchmark lending rates unchanged as expected at the monthly fixing on Friday.

Persistent deflationary pressure and tepid credit demand call for more stimulus to aid the broad economy, but narrowing interest margin on the back of fast falling yields and a weakening yuan limit the scope for immediate monetary easing.

The one-year loan prime rate (LPR) was kept at 3.10%, while the five-year LPR was unchanged at 3.60%.

In a Reuters poll of 27 market participants conducted this week, all respondents expected both rates to stay unchanged.

Morgan Stanley said in a note that the 2025 budget deficit and mix are more positive than expected and suggest Beijing is willing to set a high growth target and record fiscal budget to boost market confidence, but further policy details are unlikely before March.

Last Friday, data released by the country's central bank said total assets of China's financial institutions had risen to 489.15 trillion yuan (about $68.03 trillion) by the end of third quarter this year.

The figure represented a year-on-year increase of 8%, said the People's Bank of China.

Of the total, the assets of the banking sector reached 439.52 trillion yuan, up 7.3% year on year, while the assets of securities institutions rose 8.7% year on year to 14.64 trillion yuan.

The insurance sector's assets jumped 18.3% year on year to 35 trillion yuan, the data showed.

The liabilities of the financial institutions totaled 446.51 trillion yuan, up 8% year on year, according to the central bank.

Separately, data released by the National Energy Administration on Thursday showed that China's electricity consumption, a key barometer of economic activity, rose by 7.1% year on year in the first 11months of the year.

During the period, power consumption of the country's primary industries increased by 6.8% year on year, while that of its secondary and tertiary sectors rose by 5.3% and 10.4%, respectively.

Residential power usage saw strong growth of 11.6% during this period, the administration said.

In November alone, power usage climbed 2.8% from one year earlier, according to the data.