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Monday, 18 October 2010

Kuwait's Wataniya 9-month net drops 44.8 pct | Reuters

Kuwait's National Mobile Telecoms Co (Wataniya) (NMTC.KW) reported on Monday a net profit of 53.7 million dinars ($190.4 million) for the first nine months, versus 97.4 million dinars in the same period a year ago.

Third-quarter net profit stood at 17.9 million dinars compared to 18.5 million dinars in the same period in 2009, the company said in a statement"

Saudi Shares Advance Second Day as Earnings Beat Estimates; Sabic Gains - Bloomberg

Saudi Arabia’s stocks rose a second day, driven by gains in Saudi Basic Industries Corp. after the world’s biggest petrochemicals maker said third-quarter profit surged 46 percent, beating expectations.

Sabic advanced to the highest intraday level in a week after net income soared to 5.33 billion riyals ($1.4 billion). Etihad Etisalat Co., Saudi Arabia’s second-largest mobile-phone company known as Mobily, gained a third day after quarterly profit rose 41 percent. The Tadawul All Share Index rose 0.4 percent to 6,286.13, the highest level since Oct. 16, at 1:47 p.m. in Riyadh. The Bloomberg GCC 200 Index of Gulf region stocks rose 0.5 percent.

“Excellent results from Sabic and Mobily” are driving stocks higher, said Ahmed Talhaoui, Abu Dhabi-based head of investment at Royal Capital. The earnings are in “sharp contrast with the poor results from banks released a week ago.”

Nakheel bond may see price dip at start, says Arabtec

Developer Nakheel's proposed bond sale to trade creditors may see its price fall initially as smaller contractors could sell to shore up their cash position, a top executive at Dubai builder Arabtec said.

Nakheel plans to issue a AED6 billion (US$1.63 billion) Islamic bond as part of its debt repayment plan.

"My view is the smaller bondholders... will probably sell it as it will make a big difference to the cash flow and this will force the price probably initially to dip," Arabtec's Chief Financial Officer Ziad Makhzoumi said at the Reuters Middle East Investment Summit in Dubai on Monday.

Santander Brazil to Sell $2.7 Billion Convertible Bonds to Qatar Holding - Bloomberg

Banco Santander SA agreed to sell $2.7 billion of bonds convertible into stock of its Brazilian unit to Qatar Holding.

UAE bourse merger unlikely before 2011: Arabtec | Reuters

A potential merger between the United Arab Emirates' two main bourses is unlikely before 2011 but would be good for traded UAE companies, the chief financial officer of the region's largest listed builder said on Monday.

'I don't think you will see any progress before next year because the process takes time,' Ziad Makhzoumi, CFO at Arabtec (ARTC.DU) said at the Reuters Middle East Investment Summit in Dubai.

The Gulf Arab emirate has three bourses -- the Abu Dhabi Securities Exchange (ADX), Dubai Financial Market (DFM.DU) (DFM), and Nasdaq Dubai -- each fighting to draw liquidity. DFM and Nasdaq Dubai are merging some operations."

Abu Dhabi Islamic Plans Investor Meetings in Asia, Europe Before Bond Sale - Bloomberg

Abu Dhabi Islamic Bank PJSC, the United Arab Emirates’ second-biggest lender complying with Shariah principles, will start meeting overseas investors this week before a possible sale of Islamic bonds.

The bank will hold “non-equity” meetings in Asia, Europe and the Middle East from Oct. 20, the lender said in a statement to the Abu Dhabi bourse today. Abu Dhabi Islamic hired HSBC Holdings Plc, Standard Chartered Plc and Barclays Plc to help sell bonds, two bankers familiar with the plan said last week.

Bond sales from the Persian Gulf have picked up since Dubai World in September reached an agreement with 99 percent of its creditors to alter the terms on $24.9 billion of debt. Qatar Islamic Bank SAQ issued $750 million of five-year Islamic bonds on Sept. 30. The Dubai government last month raised $1.25 billion in its first bond sale since the Dubai World debt crisis.

Sukuk Entice Canada Issuing $2 Billion to Spread Funding: Islamic Finance - Bloomberg

The growing demand for securities that meet Islamic religious principles may lead Canadian governments and companies to start issuing Shariah bonds.

HSBC Bank Canada may offer $500 million and three government-related borrowers from one Canadian province may issue $1.5 billion of sukuk, Omar Kalair, chief executive officer of Toronto-based UM Financial, said in an Oct. 14 interview. A “handful” of Canadian companies may sell C$1 billion ($980 million) of Islamic debt by 2013, said Daud Vicary Abdullah, global Islamic finance leader at Deloitte Corporate Advisory Services Sdn. in Kuala Lumpur.

Egypt, Nigeria, the Philippines and Thailand have announced plans to sell their first sukuk in the past three months, partly to tap Persian Gulf oil wealth. The combined wealth of the Middle East’s more than 400,000 millionaires grew 5.1 percent in 2009 to $1.5 trillion, Cap Gemini SA and Bank of America Corp.’s Merrill Lynch unit said in June.

Sukuk Entice Canada Issuing $2 Billion to Spread Funding: Islamic Finance - Bloomberg

The growing demand for securities that meet Islamic religious principles may lead Canadian governments and companies to start issuing Shariah bonds.

HSBC Bank Canada may offer $500 million and three government-related borrowers from one Canadian province may issue $1.5 billion of sukuk, Omar Kalair, chief executive officer of Toronto-based UM Financial, said in an Oct. 14 interview. A “handful” of Canadian companies may sell C$1 billion ($980 million) of Islamic debt by 2013, said Daud Vicary Abdullah, global Islamic finance leader at Deloitte Corporate Advisory Services Sdn. in Kuala Lumpur.

Egypt, Nigeria, the Philippines and Thailand have announced plans to sell their first sukuk in the past three months, partly to tap Persian Gulf oil wealth. The combined wealth of the Middle East’s more than 400,000 millionaires grew 5.1 percent in 2009 to $1.5 trillion, Cap Gemini SA and Bank of America Corp.’s Merrill Lynch unit said in June.

Invest AD Plans to Complete $150 Million in Deals in Turkey, U.A.E., Egypt - Bloomberg

Invest AD, an Abu Dhabi government- owned money manager, is completing three transactions valued at about $150 million in Turkey, Egypt and the United Arab Emirates.

“The deals have a range of sectors - one is consumer goods, the other is light-to-medium manufacturing business,” the company’s head of private equity, Samir Assaad, said in Abu Dhabi today. Invest AD may close one deal by year end, he said.

Abu Dhabi’s government has pursued investments in real estate, tourism and infrastructure as it seeks to diversify away from an oil-based economy. The emirate’s non-oil businesses will contribute 50 percent of its gross domestic product by 2015, adding about $167 billion a year, as projected in its 22-year economic plan.

Dubai International Capital Seeks to Restructure Its Business by Year-End - Bloomberg

Dubai International Capital LLC, an investment company owned by Dubai’s ruler, plans to restructure its business by the end of the year, Chief Investment Officer David Smoot said.

“Our goal is to be out of the restructuring business by the end of the year and back into the growth phase,” Smoot told reporters in Abu Dhabi today.

Dubai’s state-owned companies are struggling to repay loans as the worst financial crisis since the 1930s froze credit markets and prevented them from raising new debt. Dubai World, one of the emirate’s three state-owned holding companies, announced last month that it had reached a deal with 99 percent of its creditors to alter the terms on $24.9 billion of loans.

Dubai Seeks $500 Million Loan Commitment in Return for Bond Sale, FT Says - Bloomberg

Dubai asked lenders seeking to manage its recent sovereign bond sale to offer the government a $500 million loan over three years at 300 basis points over the London interbank offered rate, the Financial Times reported, citing two senior bankers with knowledge of the matter.

One regional banker who was asked to participate described the process as “pay to play,” the FT said.

It’s not known whether mandated banks Deutsche Bank AG, HSBC Holdings Plc and Standard Chartered Plc, have given commitments to make additional loans to Dubai, the newspaper said.

NBAD looks Down Under to help prop up funds

National Bank of Abu Dhabi (NBAD) is considering raising funds in Australian or New Zealand dollars in a new bond sale.

NBAD said in a statement to the Abu Dhabi Securities Exchange yesterday that it would discuss issuing medium-term notes denominated in either Australian or New Zealand dollars at a board meeting this month. The bank refused to comment on the size or details of the proposed issuance.

Last week, the Australian dollar hit parity with the US dollar, which trades at a fixed rate with the UAE dirham, for the first time in 28 years.

Boeing defends regional airlines

Boeing, the world's largest aircraft maker, has come to the defence of Gulf airlines, saying European carriers have "overdramatised" the issue of export credits.

Western airlines have called for their governments to limit the amount of financing available to their rivals in the Middle East after a deep recession for the global airline industry.

"I think the whole US Ex-Im [Export-Import] Bank issue has been overdramatised by some of the carriers," Marty Bentrott, the regional vice president of sales at Boeing, said during a visit to Dubai yesterday.

King's Battle With Clerics Dictates Fate of Saudi's Oil Economy - Bloomberg

When Saudi King Abdullah appeared in a newspaper photo with 40 veiled women in April, he broke a taboo by mixing with the opposite sex in public.

Since then, the 86-year-old monarch has crimped the power of conservative Muslim clerics more than any of his five predecessors since the foundation of the kingdom in 1932. He prohibited unauthorized religious edicts, or fatwas, and shut some of the websites where they’re issued. In the past month, he backed supermarkets employing females for the first time.

“This is really a part of the struggle over who controls Saudi Arabia,” Robert Lacey, author of 2009 book ‘Inside the Kingdom,’ said in a telephone interview from the Saudi city of Jeddah. “Ten to 15 years ago, it would have been very difficult for a Saudi king to discipline the clergy.”

Gulf Keystone Raises $175 Million in Share Sale for Kurdistan Oil Drilling - Bloomberg

Gulf Keystone Petroleum Ltd. said it raised 109.24 million pounds through an oversubscribed placing of 78,028,000 new common shares.

The placing price was 140 pence per share, the company said in an e-mailed statement today.

Saudi Shares Gain Most in Month as Sabic Rises Before Earnings; Oman Slips - Bloomberg

Saudi Arabia’s shares rose the most in almost a month as investors bought shares of petrochemical companies in anticipation of better-than-expected earnings from Saudi Basic Industries Corp.

Sabic, the world’s biggest petrochemical maker, gained the most since July 10 before reporting a 46 percent increase in third-quarter earnings after markets closed. Astra Industrial Group, a company with interests in pharmaceutical, chemical and fertilizers, climbed 2.2 percent, after third-quarter profit rose. Yanbu National Petrochemicals Co. added 3.1 percent. The Tadawul All Share Index snapped four days of losses, rising 0.5 percent, the most since Sept. 20, to 6,260.55 at the 3:30 p.m. close in Riyadh. Most Middle East markets were little changed.

“Investors took advantage of the selloff, seeing recent pullbacks as overdone ahead of Sabic’s results,” said Amro Halwani, a trader at Shuaa Capital PSC in Saudi Arabia.

Nakheel restructuring: Why trade creditors should take note of recent announcements by Nakheel - bi-me.com

On 3 October 2010, Nakheel's chairman said that Nakheel has obtained consent from 85% of its trade creditors to the proposed restructure of its debts, along with a "good percentage" of its banks.

This news has significance for all trade creditors of Nakheel, whether or not they have already consented to the proposal sent to them by Nakheel in April 2010 (Nakheel Restructuring Proposal).

Set out below is a brief summary of the matters that creditors of Nakheel should be considering at this stage.

Mazaya falls on debut; Qatar Exchange slips - Gulf Times

Real estate development firm, Mazaya Qatar began trading on Qatar Exchange yesterday after floating a QR500mn initial public offering in January.

But the shares fell 4.5% and closed at QR9.55 against the opening price of QR10.

Mazaya is the 43rd company to be listed on the Qatar Exchange. It has been included under the ‘services sector’ category.