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Thursday, 29 April 2010

Saudi Arabia’s warning oil exports warning | FT Energy Source | FT.com

Saudi Arabia’s warning oil exports warning | FT Energy Source | FT.com

Dubai Holding Commercial Delays 2009 Results by Two Weeks

Dubai Holding Commercial Operations Group LLC, the investment company owned by Dubai’s ruler, will delay reporting its 2009 financial results by two weeks to May 16 as it completes consolidation of businesses.

The company has “extensively realigned its operating businesses, undertaken a conservative revaluation of its real estate portfolio, and has conducted a thorough impairment testing exercise across all its projects,” Dubai Holding Commercial said in a statement to Nasdaq Dubai today.END

Dubai Shares Rise Most in 3 Weeks on Dubai World Debt Reports

Dubai’s benchmark index climbed the most in almost three weeks on reports that state-owned Dubai World’s talks with creditors to restructure terms of $24.8 billion of debt are progressing.

Drake & Scull International climbed the most in almost a month after HSBC Holdings Plc rated shares of the Dubai-based construction company “overweight.” Emaar Properties PJSC, the builder of the world’s tallest skyscraper, rose the most in almost three weeks. The DFM General Index increased 1.5 percent, the most since April 11, to 1,739.88 after earlier losing as much as 0.5 percent. The benchmark is down 0.9 percent this week.

“The market is focusing on the fact that Dubai World continues to make progress with talks,” said Ali Khan, head of cash-equity trading at Dubai-based Arqaam Capital Ltd. “The market is taking the media reports well because it needs progress and a conclusion, so that these matters can be priced in and then we move on.”

Dubai World Said to Offer Extra 1% Interest in Restructuring

Dubai World offered to pay creditors an additional 1 percent interest upon the maturity of rolled-over loans that are part of a $14.2 billion debt restructuring, a banker familiar with the plan said.

The 1 percent rate would be on top of the 1 percent offered over the loans’ life, said the banker, who declined to be identified because the negotiations are ongoing and private. Banks are asking for different rates on dirham and dollar loans rather than the uniform 1 percent, he said.

A spokesmen for Dubai World and a spokeswoman for Dubai’s Department of Finance declined to comment. The Abu Dhabi-based The National newspaper reported the rate earlier today.

No managerial posts for chairmen of listed firms

The chairman of a listed public shareholding company cannot hold a managerial or/and a managing director post in the company, as per a new corporate governance code coming into effect from tomorrow.

The code also stipulates that one-third of a listed company's administrative board should have independent members. An ex-employee of a company cannot become a board member until two years have lapsed since the resignation.

One of the most important basics of corporate governance is to separate the ownership of a company and its executive administration, said Rami Al Nosoor, financial consultant, Emirates Securities and Commodities Authority (Esca), explaining the terms of the code.

Egypt rebuilds on firm foundations

The Egyptian stock exchange index has risen 20.6 per cent this year. While still short of the peaks it reached in early 2008, the rise comes on top of a robust rally in 2009 and means that the Cairo exchange is one of the best performers in the Middle East and North Africa this year.

“What we thought of as a dead cat bounce in March last year has slowly but surely turned into a decent recovery from the bottom,” says Wael Ziada, head of Egypt research at EFG-Hermes, a regional investment bank.

At the beginning of the year, EFG-Hermes forecast 25 per cent growth in its benchmark HFI index but Mr Ziada says that, with most of this already achieved, he expects the bourse to beat the forecast by “maybe” 5 to 10 per cent.

Dubai’s salvage operation

Eighteen months after Dubai’s property bubble burst, investors who came late to the party are fighting to win compensation for the millions of dollars they ploughed into dream homes which they hoped would generate untold riches.

Hundreds of cases are snaking their way through the complicated and expensive legal system as investors seek compensation for unbuilt properties. For its part, the government is implementing laws to deal with the sums invested in buildings which have been started but not finished.

For some investors, a solution of sorts is at hand. The authorities are moving towards restructuring about $25bn of debts held by Dubai World, a troubled government-owned conglomerate. The plan, if agreed, will clarify the future for thousands of customers of Nakheel, a Dubai World subsidiary.

Citigroup’s Return to Saudi Arabia May Need More Than Alwaleed

Citigroup Inc. is aiming to open for business in Saudi Arabia six years after selling its stake in a bank there. Returning might not be as easy as departing.

Since leaving the country in 2004, the company has said it would like to regain a foothold. Saudi officials, though, are protecting banks from new competition, according to Jean- Francois Seznec, visiting associate professor at Georgetown University’s Center for Contemporary Arab Studies.

“They’re not as in love with U.S. banks as they used to be,” Seznec said by telephone from Riyadh, the Saudi capital. “The competitive environment is really key to this. Citibank was very successful here in the past.”

Dubai Gets JPMorgan, BofA Loan Refinancing to Keep Almatis Unit

Dubai International Capital LLC got a boost in its efforts to keep its Almatis alumina-making unit, with backing for a $685 million debt refinancing that would repay senior lenders including Oaktree Capital Management LLC.

Dubai International is challenging a plan by Oaktree, the biggest of Almatis’s senior lenders, to seize control of Almatis after the German unit violated loan terms last year.

JPMorgan Chase & Co. and Bank of America Merrill Lynch are preparing final term sheets and underwritten commitments for $350 million of senior secured notes and a $50 million revolving credit, Dubai International said in a letter yesterday to the company’s senior lenders.