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Thursday, 12 August 2010

FT.com - QIA ties up with Israeli conglomerate to create fund

The Qatar Investment Authority and the Olayan Group of Saudi Arabia have joined forces with a prominent Israeli conglomerate to create an emerging markets fund.

Credit Suisse, the Swiss bank, said on Thursday that it was launching a $1bn fund specialising in emerging market credit opportunities “with a small group of key shareholders”.

According to reports in Israel those shareholders are Olayan Group of Saudi Arabia, a manufacturing, services and investment conglomerate, the QIA, and IDB of Israel, a conglomerate controlled by Nochi Dankner, Israel’s most powerful businessman."

Dubai developer Deyaar posts $66.2 mln loss

Dubai's second-largest property developer by market value Deyaar on Thursday said it swung to a net loss in the second quarter.

The developer made a net loss of 243 million dirhams ($66.16 million) in the three months to June 30 compared with 76.4 million dirhams in the same period last year, according a company statement on the bourse website.

Deyaar had made a first quarter net loss of 100 million dirhams on the back of significant provisions.

The developer, which rivals Emaar Properties and Union Properties dismissed its chief executive in April as part of a restructuring plan and appointed Saeed al-Qatami as acting chief.

Saudi Stocks: Best & Worst Year-to-Date Performers



Dubai Shares Decline to Lowest in a Month on Global Economic Concern, Oil - Bloomberg

Dubai shares fell to the lowest in more than a month, leading a decline in Gulf markets as global stocks tumbled on concern the economic recovery is faltering. Crude oil declined for a third day.

Dubai Islamic Bank PJSC, the Islamic bank scheduled to report earnings today, dropped to the lowest this year. Dubai Investments PJSC, the owner of stakes in more than 40 companies, lost 3 percent. The DFM General Index decreased 1.1 percent to 1,466.89 at 10:56 a.m. in Dubai, the lowest intraday level since July 5. The index has lost 3.4 percent this week. The Bloomberg GCC 200 Index of Gulf stocks slipped 0.1 percent.

“Focus is on the weakness in international markets and weaker commodities, primarily oil,” said Ali Khan, head of cash-equity trading at Dubai-based Arqaam Capital Ltd.

DIFC Shariah Debt Two-Month Rally `Gone Too Far' in Dubai: Islamic Finance - Bloomberg

The two-month rally in DIFC Investments LLC’s Islamic bonds is ending on concern the Dubai state-controlled developer will struggle to meet payments on more than $3 billion of debt.

The notes that comply with Shariah law dropped for a third day yesterday to 79.15 cents on the dollar after surging almost 10 percent since the end of May, according to data compiled by Bloomberg. The securities need to fall at least 4 percent to 76 cents or below before they are attractive to buy, according to Zafar Nazim, a JPMorgan Chase & Co. analyst in London.

DIFC Investments, the owner of assets in the Dubai International Financial Centre, a tax-free zone, had its credit rating cut one level by Moody’s Investors Service on July 8 and its outlook reduced to negative this week by Standard & Poor’s, which cited about $3.1 billion of debt and “uncertainties” over the company’s plans to sell $1 billion of assets.

UAE Stocks: Year-to-Date Performance



Dubai Government ‘may have to convert DIFC Investments loan’ - The National Newspaper

The Government of Dubai may have to convert its US$1 billion (Dh3.67bn) loan to Dubai International Financial Centre (DIFC) Investments into shares, the US investment bank JPMorgan says.

DIFC Investments, which owns the infrastructure and property of the DIFC, has more than $3bn in liabilities.

It is in the process of putting together a restructuring and disposals plan to reduce this debt.

The Jashanmals on Keeping Business in -- and out of -- the Family - Arabic Knowledge@Wharton

On a pleasant winter evening last year, several dozen men and women gathered at the Indian embassy in Abu Dhabi, the capital of United Arab Emirates, to celebrate the 90th anniversary of a family business that has grown from a one-stop shop in Basra to a wholesale and retail venture that spans the Middle East.

Founded by the late Rao Sahib Jashanmal -- who came from India and launched his general store selling household goods, men's clothing, stationery, books and newspapers in Iraq in 1919 -- the Jashanmal Group is now run by the fourth generation.

The group, which is a big name in retail and wholesale business in consumer goods in the region, is steeped in history beginning when the British controlled most parts of an underdeveloped Arabian Gulf, and there were more sand dunes than people. It was also a time when camels and bandits roamed freely and oil, which later brought immense riches to the land, had not yet been discovered.

Gulf bourses suffer setback - Arab News

Saudi Arabia's index made its largest decline since late June on Wednesday and further losses are forecast as the Kingdom's bourse tracks stuttering world markets and oil.

Most Middle East bourses fell on similar sentiment, with trade slack on the first day of the Muslim month of Ramadan.

Saudi Basic Industries Corp. (SABIC) fell 1.7 percent, weighing on the index, which dropped 1.2 percent. The Tadawul All-Share Index (TASI) closed 1.21 percent down at 6,187.97 points. The sector activity for the day was negatively biased with all sectors closing with losses ranging from 0.04 percent by the Retail sector to 1.97 percent by the Insurance sector. The overall market breadth for the day also remained heavily negative with only 6 advancers against 129 decliners giving it an AD ratio of 0.046, the Financial Transaction House (FTH) said in its daily market commentary.