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Friday, 23 April 2010

Dubai World lenders need not book provisions-paper

United Arab Emirates' central bank said in a circular to local lenders that they do not have to book provisions at the moment for loans to Dubai World [DBWLD.UL], Arabic daily Al Khaleej reported on Friday.

"Banks are not required at the moment to make provisions for loans given to Dubai World," the paper said, adding it will provide banks with direction on how to deal with their debts to Dubai World.

The domestic banking sector has been grappling with the fallout of the global economic crisis and a local property market downturn, as well as the restructuring of Dubai's flagship conglomerate Dubai World.

On March 25, Dubai World unveiled a long-anticipated restructuring proposal, mainly linked to its property units, including Nakheel [NAKHD.UL], to pay roughly $26 billion it owed to creditors.END

Mubadala lines up $2.5bn in loans

Mubadala Development, the Abu Dhabi Government’s strategic investment arm, has lined up US$2.5 billion (Dh9.18bn) in financing as it builds on an increasingly diverse range of funding sources and relies less on government support.

The three-year facility announced yesterday adds to billions of dollars in financing Mubadala secured last year and early this year from banks and investors.

The company established a global medium-term note programme worth about $1.85bn in April last year, and added a euro commercial paper (EPC) programme this February that allows it to borrow money in multiple currencies over short periods from banks around the globe.

Power passes through bloodline

Libya's political system has no formal mechanism for choosing a leader, leaving the door open for improvisation, including the possible hereditary succession by Colonel Muammer Gaddafi's son, Saif al-Islam, writes Heba Saleh .

But "socialist revolutionary" Libya with its quirky system is not the only Arab "republic" where the ancient notion that power naturally transfers from father to son is alive and well. The wider Arab world has several de facto "hereditary republics".

Those Arab states that are not formally monarchies are generally ruled by presidents for life, who lead authoritarian regimes that deliberately prevent the emergence of new generations of politicians.

Emaar Profit More Than Triples on Malls, Hotels


Emaar Properties PJSC, which opened the world’s tallest skyscraper this year in Dubai, said first- quarter profit more than tripled, helped by its shopping mall and hotel units.

Net income rose to 760 million dirhams ($207 million) from 237 million dirhams a year earlier, the developer said in a stock exchange statement today. That exceeded the 336 million- dirham average of six analyst estimates compiled by Bloomberg.

Emaar is focusing on markets such as North Africa and South Asia after property prices in its home market of Dubai slumped by more than 50 percent. Emaar MGF Land Ltd., the company’s Indian joint venture, revived plans to sell 38.5 billion rupees ($870 million) of shares in India in the next three months, Shravan Gupta, Emaar’s executive vice chairman, said on April 8.

RAIL TRAFFIC RECOVERY CONTINUES

The AAR is reporting a continuing surge in rail traffic as signs of recovery become more and more apparent.  U.S. railroads originated 296,599 carloads for the week ending April 17th.  This was 16.1% higher year over year and down 11.6% from 2008.  This was the highest level since December of 2008.  Intermodal traffic totaled 209,903, up 14.6% year over year and down 6.3% versus 2008.
rails3 RAIL TRAFFIC RECOVERY CONTINUES
The AAR reports the breadth of the traffic was quite strong:
“Eighteen of 19 carload commodity groups were up from last year, led by a 177.5 percent jump in loadings of metallic ores. Other notable increases included 68.8 percent for metals, 49 percent for motor vehicles and equipment, 46.4 percent for nonmetallic minerals and 34.5 percent for primary forest products. Grain was up 12.2 percent, and coal gained 9.6 percent. The only commodity registering a decline was pulp, paper and allied products, off 6.7 percent.”
Source: AAR