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Wednesday, 17 June 2009

Mubadala and GE Aviation sign multi-faceted aviation agreement, reinforce strategic partnership

General Electric (NYSE: GE) and Abu Dhabi’s Mubadala Development Company today signed an extensive agreement that expands GE’s global network of engine maintenance, repair and overhaul (MRO) providers in the Middle East and further advances Mubadala’s plans to build a global MRO network centered in Abu Dhabi.

The agreement finalizes one of the remaining components of the broader strategic partnership forged last year between Mubadala and GE, encompassing a broad range of initiatives including commercial finance, clean energy research & development, industry, corporate learning and aerospace.

GE Aviation and its affiliates will provide technical support and services to Mubadala’s affiliate MRO companies SR Technics and ADAT, including technical and corporate training support, comprehensive material support, and the granting of licenses to service certain GE engines.

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Abu Dhabi to manufacture its first full commercial aircraft in 2018

Piaggio Aero Industries s.p.a.Image via Wikipedia

Mubadala’s Aerospace Associate Director, Humaid Al Shemmari said that the company has adopted a long-term strategy with its partners in the aircraft industry to manufacture the first commercial aircraft in the emirate of Abu Dhabi within eight years from now.

Mubadala Development Company (Mubadala) is a catalyst for the economic diversification of the Emirate of Abu Dhabi. Mubadala sole shareholder is the Government of the Emirate of Abu Dhabi.

Speaking to the Emirates News Agency (WAM) closely on the heels of the signing of a multi-faceted aviation agreement with GE Aviation in the French capital, Al Shemmari alluded to Mubadala's investment in a number of world's prominent aerospace companies including Italian aerospace company Piaggio Aero Industries, in which Mubadala owns a 31pc share. This will enormously enhance the strategy of the emirate to embark on aircraft manufacturing, bringing out its first fully manufactured aircraft between 2016 and 2018; Al Shemmari pointed out.

He added that the company’s commercial strategy is built on the management of long-term, capital-intensive, investments that deliver not only strong financial returns but tangible social benefits for the people of Abu Dhabi. In doing so Mubadala is expanding the economic base of the Emirate and in turn significantly contributing to the growth and diversification of the Abu Dhabi economy.END

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Understanding the Saudi Market (Re-post)

Saudi Arabia is by far the largest economy in the middle east and currently holds about 24% of the world’s oil reserves. Backed by the strong demographic growth and the increase in domestic demand, real GDP growth had a 5 year CAGR of 4%. By default, this huge economy is reflected in the stock exchange (Tadawul) which is the largest stock market in the middle east, both in terms of market cap and value traded. Tadawul’s market cap is approximately USD230 billion and the average daily traded value is USD1.6 billion; retail investors dominate about 90% of the value traded. Tadawul’s market cap formulates about 38% of the MENA’s market cap.

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Roubini: Oil Will Crash (Re-post)

WASHINGTON - OCTOBER 30:  Nouriel Roubini, pro...Image by Getty Images via Daylife

Nouriel Roubini proclaimed that oil prices ran "too high, too soon" when they doubled in just three months.

The run up in oil in the past few months has been driven by a weakened dollar and a belief that recovery is just around the corner. The dollar has been gaining the past few days and the price of oil has slipped. Roubini sees deflation and pressure on the dollar in the next two years, which could lead to the price of oil sliding.

As for the economic recovery? Don't bet on it says Roubini. If it happens by year end it will be weak. There's even a chance for a double-dip recession, which means the whole thing comes crashing down once again and the predictions of $85 oil go out the window.

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Is this really the way to run commercial relationships?

Shuaa issues 250 mln shares to Dubai Banking
Jun 16, 2009 at 06:38

Then two hours later:

Dubai Banking rejects Shuaa shares
Jun 16, 2009 at 08:38

Absolutely farcical, even more so after the Emaar on/off relationship with Kingdom!

All this in the week Dubai announced "Brand Dubai"

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$17.2bn investments in Dubai airports to go on

Investments into the expansion of Dubai airports, earmarked at a total of $17.2 billion (Dh63.16bn), will continue as passenger volumes maintain growth at the world's sixth largest airport for international passenger traffic despite the global economic downturn, Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Emirates Group, confirmed on the second day of the week-long Paris Air Show at Le Bourget.

Dubai Airports has invested $7.2bn in expanding Dubai International with another $10bn allocated for the construction of Dubai World Central-Al Maktoum International Airport.

"These are challenging times for aviation. Passenger and cargo traffic has dropped dramatically in most parts of the world, leading to billions in industry losses," said Sheikh Ahmed, adding that Dubai has been a "beacon of hope" during these turbulent times.

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Plan to scrap mandatory business sponsorship

Establishing a new company in Dubai may no longer require a mandatory UAE sponsor if the government approves a recommendation to this effect, which is currently under study, said a top Dubai Chamber official.

Hamad Buamim, Director-General of Dubai Chamber, said the proposal has been with the Executive Council for the past three months. If approved, the new policy may be announced with the revised Company Law this year.

"This is in line with what the business community is expecting," he told Emirates Business. "It would support the business community in attracting more investment. The government is looking into this issue along with the Company Law that is under revision and is expected to be out in 2009."

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State of Qatar 'AA-/A-1+' Ratings Affirmed On Resilience Amid Global Turmoil; Outlook Stable

PARIS (Standard & Poor's) June 16, 2009--Standard & Poor's Ratings Services said today that it has affirmed its 'AA-/A-1+' long- and short-term foreign and local currency sovereign credit ratings on the State of Qatar. The outlook is stable.

"The ratings on Qatar are supported by the government's solid fiscal and external balance sheets, a prosperous economy with strong growth prospects, and prudent long-term policies," said Standard & Poor's credit analyst Veronique Paillat-Chayrigues. The ratings are constrained by still-nascent public institutions, limited transparency with respect to government assets, and geopolitical risks that face all sovereigns in the region.

"The stable outlook balances Qatar's strong financial position and prudent policies against high regional geopolitical risks and developing institutions," said Ms. Paillat-Chayrigues.

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Shuaa and Dubai Banking Group dispute rages

The gloves are off in a dispute between Shuaa Capital and Dubai Banking Group (DBG) - a unit of Dubai Holding - over a Dh1.5 billion convertible bond issued to Shuaa by DBG in 2007.

The bond was meant to be converted into 250 million shares on maturity, but the two companies have been quarrelling over whether the conversion into shares is mandatory or not.

Shuaa contends that it is and yesterday asked the Dubai Financial Market to register 250 million shares, which would make DBG a 32 per cent shareholder.

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Deyaar ex-CEO granted Dh4m bail

DeyaarImage via Wikipedia

The former CEO of Deyaar, detained on corruption charges since March 2008, can now walk out of his provisional detention cell if he posts Dh4 million as bail set by a judge on Tuesday.

Dubai Misdemeanour Court's Presiding Judge Rifaat Mahmoud Tulba granted conditional bail to Deyaar's ex-CEO, 43-year-old American Z.S., who will have to pay a financial bond and place his passport along with an Emirati sponsor's passport before he can be released from his cell.

Judge Tulba set an amount of Dh2 million as bail for Z.S. involving his prosecution before the Misdemeanours Court.

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Al Fahim is replaced as Hydra chief executive

BRENTWOOD, CA - MAY 31: Sulaiman Al Fahim atte...Image by Getty Images via Daylife

Sulaiman al Fahim, the property tycoon seeking to buy Britain’s Portsmouth Football Club, has been replaced as chief executive of Hydra Properties, a company official said yesterday.

Mr al Fahim will become a member of the company’s board of directors, said Ahmed Khalil, Hydra’s commercial director. Ali bin Sulayem of Hydra’s parent company, Royal Group, will replace him as chief executive.

“Dr Fahim did an amazing job of getting Hydra Properties to where it is in a few years,” he said. “Dr al Fahim has been promoted for all the good work he has done.”

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