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Wednesday, 12 May 2010

Dubai Shares Gain as Nakheel Says It Has Funds to Pay Bond

Dubai stocks rose for the second time this week after Nakheel PJSC said it received money from the emirate’s support fund to pay its Islamic bond maturing tomorrow.

Emaar Properties PJSC, a developer that helped kick-start Dubai’s property boom, climbed for the first time since May 10 and Arabtec Holding PJSC advanced for the second time this week, pushing the DFM Real Estate Index 1.1 percent higher. The DFM General Index rose 0.5 percent to 1,715.48. Nakheel’s floating- rate 3.6 billion dirhams ($980 million) Islamic bond due May 13 yesterday closed at 98.67 fils on the dirham. Abu Dhabi National Energy Co. gained to a two-week high after releasing earnings.

Nakheel, the unit of Dubai World that is restructuring $10.5 billion of debt, said yesterday the Dubai Financial Support Fund provided money for the full payment of the sukuk. The developer and Dubai World are renegotiating terms on $24.8 billion of liabilities after the global credit crisis led to a slump in property prices and made it harder to refinance debt.

Mobily of Saudi Arabia Is Rasmala’s ‘Top Pick’ in MENA Telcos

Etihad Etisalat Co., Saudi Arabia’s second-largest mobile-phone company known as Mobily, is Rasmala Investments’ “top pick” as the United Arab Emirates-based company initiates coverage of the Middle East and North African telecommunications industry.

“We like Mobily for its data-centric strategy and the continued strengthening of its brand name as the leading mobile broadband player in the Saudi market,” analyst Shrouk Diab wrote in a note to investors. He rated Mobily a “buy” with a price estimate of 75.36 riyals.

Rasmala initiated nine telecommunications companies, six with a “buy,” two with a “hold” and one with a “sell” recommendation. “The Middle East has one of the fastest-growing economies,” the report said. “More than 60% of the region’s population is below 30 years, further supporting its attractive demographics.”END

Qatari Diar Said to Plan Government-Backed Global Bond Issue

Qatari Diar Real Estate Investment Co. may raise about $1.5 billion by selling global bonds backed by Qatar, the world’s biggest exporter of liquefied natural gas, a person familiar with the sale plan said.

The developer may offer 10-year conventional bonds and 5- year Islamic securities, said the person who declined to be identified as details of the transaction haven’t been finalized. HSBC Holdings Plc and Barclays Capital are among banks expected to manage the sale, which could be completed during the next three months, according to the person.

Qatari Diar, chaired by Qatar Prime Minister Sheikh Hamad Bin Jasim Bin Jaber Al-Thani and a unit of the country’s sovereign wealth fund, has invested $60 billion in projects in more than 18 countries. The company owns a stake in a project to build the Shard in London, which will be Western Europe’s largest skyscraper. Qatari Diar has about $3.96 billion in loans maturing in 2011, Bloomberg data showed.

DP World’s India Container Port to Challenge Colombo

DP World Ltd. said as much as $1 billion may be invested in the first Indian port able to handle the largest container ships as the company tries to challenge Colombo’s grip on India’s maritime trade with Europe and China.

“What we are trying to do is compete in the regional and international market,” Anil Singh, the company’s India head, said in an interview in Mumbai yesterday. “It will change the logistic pattern of the country.”

The new terminal at Vallarpadam in Kochi, south India, which is due to open in August, will be able to handle the 13,000-container capacity ships commonly used on Asia-to-Europe routes. Presently, these long-haul vessels are unable to stop in India, which forces the nation’s importers and exporters to spend an extra $150 million a year ferrying goods to and from Colombo, Singapore or Dubai, Singh said.

Emirates flies high | beyondbrics |

Far away from the Icelandic volcano there is an airline that is making money. Lots of money. Emirates, the Dubai government-owned airline, today reported a four-fold increase in profits in the year to March to $964m and predicted predicted double digit growth for the current year.

While cost-cutting contributed to the result, the performance was supported by solid growth in passenger numbers, up 21 per cent to 27.5m , and in cargo volumes, up 12 per cent to 1.6m tons . The Dubai economy may have contracted last year but the airline, unlike many international rivals, did not.

Last year, Sheikh Ahmed bin Saeed Al Maktoum, the chairman, did not hold a press conference, after profits collapsed 80 per cent to $267m. But this year he seemed more than happy to host a meeting with reporters at the airline’s imposing offices near Dubai airport.

BRIEF-Dubai's Emirates Group annual profit $1.1 bln | Reuters

* Dubai's Emirates Group says full year profit for 2009-2010 $1.1 bln

* Emirates Airline [EMIRA.UL] says net profit $964 mln

* Dubai's Emirates Group to take delivery of 7 additional A380s in 2010-2011, 1 Boeing (BA.N) (BA.N) 777

* Emirates Group says full year revenue for 2009-2010 $12.4 bln

Nakheel Gets Dubai Support to Pay $980 Million Bond

Nakheel PJSC, the unit of Dubai World that is restructuring $10.5 billion of debt, said the Dubai Financial Support Fund provided money for the full payment of its Islamic bond maturing May 13.

Nakheel’s floating-rate 3.6 billion dirhams ($980 million) Islamic bond, or sukuk, rose 1.5 percent to 98.5 fils to the dirham after the announcement, according to Mashreq Capital DIFC Ltd. The notes have climbed about 50 percent since Dubai World on March 25 proposed to renegotiate terms of its debt. Nakheel’s statement was posted on Nasdaq Dubai’s website today.

The company and parent Dubai World are renegotiating terms on a combined $24.8 billion of liabilities after the global credit crisis led to a 50 percent slump in property prices and a seizure of global credit markets hampered Dubai-owned companies from borrowing to pay debt. Dubai’s government in March pledged to give $8 billion to Nakheel to help it pay contractors and suppliers and complete projects.

Confirmed: Twitter Video App TwitVid Received Funding Round From DFJ & Maktoob Founders - ArabCrunch

According to a credible source Twitter application twitvid has scored a new round of funding from a number of high profile Arab and American angel investors, as well as Silicon Valley based venture capital firm Draper Fisher Jurvetson (DJF).

DFJ, which has invested in startups such as Hotmail (now part of Microsoft) participated in the round that closed some time in January this year.

25 year sold Jordanian entrepreneur Mohammad Al Adham, cofounder of TwitVid, confirmed to ArabCrunch the funding news but declined to make public any numbers.

UAE Ruler Brokered Deals For Dueling Russian Tycoons -Vedomosti

The leader of the United Arab Emirates may have earned as much as $260 million in fees for brokering deals between two Russian businessmen now battling in a London court, daily Vedomosti reports Wednesday.

Details of the transactions involving Sheikh Khalifa bin Zayed al Nahayan, who serves as both UAE president and emir of Abu Dhabi, emerged from documents filed with Britain's High Court, the newspaper says.

Boris Berezovsky, once one of Russia's rich and politically connected " oligarchs" but now living in self-exile in the U.K., has sued Roman Abramovich over claims that the billionaire threatened and intimidated him into selling shares of oil company Sibneft. Abramovich, who denies Berezovsky's accusations, sold Sibneft to state-run OAO Gazprom (GAZP.RS) for $13 billion in 2005.

CITY FOCUS: Wealthy Qatar in aggressive spending spree | Mail Online

There is a certain irony in the oil-rich Gulf state of Qatar snapping up Britain's most famous department store.

Back in 1916 the Arab emirate was a poor British protectorate. It was a convenient staging post for buccaneers en route to colonial interests in India.

But after hitting the big time with oil and discovering the world's third-largest gas reserves, the tables have turned.

Confusion over size of sovereign wealth funds | beyondbrics |

As the world’s mightiest sovereign wealth funds wrapped up only their second annual meeting under the auspices of the International Forum of Sovereign Wealth Funds in Sydney, confusion remained over how much capital these funds actually control.

The IFSWF’s precursor body unhelpfully estimated their combined size at anywhere between $2,000bn to $3,000bn. But research groups and think-tanks have more recently said the number was closer to $3,600bn to $3,800bn.

Currency swings, shifts in investment portfolio value, and investment returns will influence size at any given point. But the pleas from SWFs to be greeted openly no matter where they invest would be helped if more was known about the quantity of capital they control.

Syrians' shopping sprees bring Turkish delight

Every Friday, tour buses pull up outside the Sanko Park shopping mall in Gaziantep, an industrial city near Turkey's southern border with Syria.

Its marble atria lack the warmth of the bazaars in the city's old centre, where women bargain over mounds of dark red chilli paste and garlands of dried vegetables. But these visitors are not looking for atmosphere.

They are Syrians coming from Aleppo - just a few hours drive over the border - to snap up electronic goods and shop in fashion chains, from Mango to Marks & Spencer, that are unavailable at home. They now make up about one in 20 of the mall's monthly 850,000 customers, spending an average of $120 a head and prompting the mall to open an office that will refund VAT on the spot.