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Friday, 9 July 2010

NASDAQ Dubai gets regulatory nod for trading via DFM platform

The Dubai Financial Services Authority (DFSA) has given final approval for trading of NASDAQ Dubai’s listed equities through the trading platform of Dubai Financial Market, beginning Sunday (July 11, 2010).

NASDAQ Dubai said the move is part of an outsourcing strategy to increase trading volumes on the bourse and strengthen Dubai’s role as a centre of capital market activity.

Clearing, settlement and custody functions for NASDAQ Dubai equities will also migrate to DFM’s systems.

MAC Sharaf Brokerage Suspended for Three Weeks in Dubai on Rule Violations - Bloomberg

MAC Sharaf Securities LLC, a Dubai- based brokerage, has been suspended from trading for three weeks after regulators said it breached market rules, according to a document obtained by Bloomberg News.

The brokerage lent clients funds to buy shares and charged them with late payment and administration fees, the letter dated June 21 from the Securities and Commodities Authority said, listing the act as a violation. The suspension started June 23 and will end July 13, according to the document. The letter mentions the names of some people who aren’t accused of wrongdoing.

A MAC Sharaf “representative” told the regulator he impersonated a client to trade shares of Emaar Properties PJSC with the agreement of the head of trading, the SCA said in the letter. Emaar has the biggest weighting on Dubai’s benchmark stock index.

Moody's downgrades Dubai's DIFC Investments, UAE Investment Companies, Banking & Investment - Maktoob Business

Ratings agency Moody's lowered its rating on Dubai's DIFC Investments and said the probability of default was higher due to lack of government support and concerns about Dubai's ongoing debt restructuring.

"DIFCI's downgrade reflects the group's highly leveraged financial profile, its expected heavy reliance on asset disposals in the coming 12-24 months ... and its continued negative free cash flow generation," said Niel Bisset, senior vice president at Moody's in London in a statement.

Moody's said the downgrade also reflected the "significant impairments" in DIFCI's real estate portfolio which contributed to its 2009 loss.

DIFC Courts judge strikes down ‘safe’ investment claim - The National Newspaper

A Dubai International Financial Centre (DIFC) Courts judge has struck down claims of misrepresentation and negligence brought by members of a wealthy Kuwaiti family against a subsidiary of Switzerland’s Bank Sarasin after they lost US$75 million (Dh275.4m) on investments allegedly sold as safe.

Justice Tan Sri Siti Norma Yaakob ruled on Wednesday that Rafed al Khorafi, along with his wife and mother, had not established a sufficient factual basis for the court to support those claims, although she allowed the family to proceed on its claims of breach of contract and breach of statutory duty.

The al Khorafis said in earlier filings they were given oral assurances by an employee of Bank Sarasin-Alpen, the subsidiary based in the DIFC, that the investments would “never lose money”. They sought triple damages of $225m from the courts when they did.

Bahrains records over 6% year-on-year real GDP growth over last decade - Business Intelligence Middle East - - News, analysis, reports

Bahrain enjoyed real GDP growth of 70% over the past decade according to a report out this week from the Kingdom's Economic Development Board (EDB). This represents a sustainable growth rate in real GDP of more than 6% year-on-year.

The EDB's first Annual Economic Review details Bahrain's economic performance over the past decade and forecasts continued, sustainable growth over the coming ten years. In addition to the 70% GDP growth, exports increased 116%, Bahraini employment rose by 39% and Bahraini wages increased 54%.

From 2005 to 2008, Bahrain also achieved the highest amount of foreign economic investment as a proportion of nominal GDP among the six nations of the Gulf Cooperation Council (GCC) at around 35%. Real GDP is forecast to continue to grow sustainably with a 4% expansion in 2010, rising to 7.2% in 2015.

Qataris to raise $3.5bn bond

A Qatari real estate company is seeking to raise a $3.5bn bond in the latest sign of the gas-rich emirate’s willingness to tap international markets.

Qatari Diar, the property arm of the emirate’s sovereign wealth fund, is expected to launch a roadshow in London as early as Friday.

The bond has received explicit government guarantees.