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Sunday, 25 April 2010

Dubai Shares Rise to Highest in Week on Emaar Profit, Oil Jump

Dubai’s benchmark index climbed to the highest in a week after Emaar Properties PJSC, the measure’s biggest company by weighting, said quarterly profit more than tripled and oil rose above $85 a barrel.

Emaar, the builder of the world’s tallest skyscraper, rose to the highest since April 15. Dubai Islamic Bank PJSC, the United Arab Emirates’ largest Islamic lender, advanced the most in two weeks. The DFM General Index increased 0.8 percent to 1,769.34, the highest since April 18.

“Emaar’s earnings beat expectations and the stock is looking very cheap and attractive,” said Haissam Arabi, chief executive officer of Gulfmena Alternative Investments in Dubai. “Global markets and commodities are performing well, helping push up the Saudi market yesterday and Dubai’s index today.”

UAE banks to take Dubai World hit in Q2

United Arab Emirates banks are likely to face the brunt of the Dubai World restructuring impact in the second quarter after the central bank told lenders they are not required to book provisions until there is more clarity.

In a circular dated April 22, the central bank told local banks they "are not required to provision their related exposure to Dubai World".

It said it would "provide further guidance to banks concerning the treatment of Dubai World debt in their books".

'Big money' avoiding Gulf distressed property

Institutional investors are avoiding Gulf distressed properties as few buildings are under one owner and the property landscape lacks sound legal infrastructure and transparency, experts say.

“Certainly there are opportunities here but your do not find a typical distressed asset because you do not find properties controlled by one or two or three owners,” Jurgen Herre, head of Middle East and North Africa for real estate firm Hines, said at Abu Dhabi Cityscape.

Hines last October announced a plan to collect $1 billion from regional funds and investors to create a distressed asset fund focusing on the UAE.

Kotak Securities establishes subsidiary in Dubai International Financial Centre

Kotak Mahindra Financial Services Limited, a part of the Kotak Mahindra Group, one of India’s leading financial conglomerates, today, formally announced the launch of its DIFC operations, reaffirming the Group’s commitment to expanding its Middle East operations.

Kotak Mahindra Financial Services has been incorporated in DIFC as a 100% subsidiary of Kotak Securities Limited, which has been consistently named the “Best Brokerage Firm” in India by Asiamoney since 2006.

The licence awarded by the Dubai Financial Services Authority (DFSA) enables Kotak Mahindra Financial Services to arrange credit or deals in investment; advise on financial products and credit; and arrange custody from its DIFC-based office.

Dubai to prop up shaky UK ventures

A SOVEREIGN wealth fund in cash-strapped Dubai could be forced to plough more than £100m of fresh capital into one of its UK investments.

Dubai International Capital (DIC), an investment vehicle controlled by the ruler of the emirate, Sheikh Mohammed Bin Rashid al-Maktoum, has been asked by a consortium of banks to slash the borrowings of Alliance Medical, the medical technology company it bought for £600m in 2007.

DIC has seen an ambitious foray into European private equity quickly turn sour. It was one of the private equity firms hit hardest by the credit crunch and has had to inject fresh capital into many of its investments, which have struggled because of large debts.