Tuesday, 30 November 2010
In Abu Dhabi Aldar Properties rose 1.4 per cent to Dh2.21 and Sorouh Real Estate gained 1.2 per cent to Dh1.63 on the day the company's chief operating officer said the developer had started an aggressive 'default avoidance' programme after seeing up to eight per cent of buyers on its Reem Islands project pull out of contracts. RAK Properties, which rose 2.2 per cent during intraday trading, closed flat at Dh0.45. However the Abu Dhabi Securities General Index closed marginally down at 0.05 per cent to 2,729.87 points.
The Dubai Financial Market (DFM) General Index dropped 0.3 per cent to 1,668.82 points as Emaar Properties slipped 0.8 per cent to Dh3.62, after rising 1.4 per cent earlier in the week as its chairman said the property sector will pick up.
“We are picking up gas exploration,” Ahmad Al-Sa’adi, vice president of gas operations at Saudi Aramco, said today at a conference in Doha, Qatar. “Any liquid fuel we are burning comes at the expense of our exports.”
Middle East oil producers like Saudi Arabia, Kuwait and the United Arab Emirates are largely dependent on gas found together with crude oil. Output of the fuel is crimped because the Organization of Petroleum Exporting Countries limits the amount of gas that can be extracted.
Damas’ six-months net profits stand at Dh4.25m compared with a net loss of Dh714.87m during the same period of 2009.
The company’s profits are largely on the basis of a reversal of impairment losses on equity accounted investments (based on settlement agreement entered with a related party), which boosted its bottom line by over Dh12m, compared with a net impairment provision of over Dh138m last year.
The deal is being touted as the first time a heavyweight Gulf-based investor has taken the leap to invest in Russia.
Verno was founded by Dimitri Kryukov and a senior team who all previously worked at Kazimir Partners. Before establishing Verno about a year ago, Kryukov and his Kazimir colleagues delivered annualized returns to investors of 30% from inception in 2002 to 2008.
“Shell is not an equity investor in the project” and serves instead as a project and technical adviser, Barry said at a conference in Dubai today. “Shell is also involved in sourcing the LNG.”
Dubai began discharging the LNG at 1:00 am today, he said.
The loan, priced at a margin of 1.75 per cent above the applicable reference rates, was fully subscribed by JP Morgan.
"This successful transaction is a testament to the market's confidence in Emirates NBD as a premier financial institution in the Middle East, with an established track record, solid fundamentals and excellent future prospects," Emirates NBD chief executive Rick Pudner said in a the statement.
"The issue of dealing with that will be important, as will other issues like the outlook for energy prices [and] global growth," said John Lipsky, the first deputy managing director of the IMF.
Mr Lipsky was speaking on the sidelines of the World Economic Forum Summit on the Global Agenda in Dubai yesterday.
The two UAE carriers are among 10 international airlines that have formed a group called Aviation Alliance, the primary goal of which is to end the "Home Country" rule, which was agreed to through the Organisation for Economic Co-operation and Development (OECD).
That rule prevents airlines based in the countries that produce Airbus and Boeing planes from receiving government-backed loans at attractive rates.
Qatar is only prepared to take part in the capital hike if it can invest in Areva's mining activities, Les Echos newspaper said. The Financial Times has also reported that Qatar is seeking guarantees over the value of Areva, for example by having an option to take shares in its uranium mining division.
Areva, which is almost 90 percent owned by the French state, is planning a capital increase which it hopes will raise up to 3 billion euros ($3.94 billion) to finance future development projects."
Dubai World, a debt-ridden offshoot of the emirate, is a 50-percent partner with MGM in CityCenter, as well as a major holder of MGM stock.
Last year, much to the embarrassment of Dubai leader Sheik Mohammed bin Rashid Al Maktoum (a major player in the U.S. thoroughbred racing industry), Dubai needed a $10 billion bailout from its oil-rich neighbor, Abu Dhabi. That triggered reports that Dubai World would be forced to sell some of its holdings to address its major debt problems.
"I believe that all the main sectors have registered varying proportions of growth (in 2010), except property and construction which saw a five percent drop," Sami al-Qamzi, director general of the Dubai department of economic development, told AFP.
Growth in the construction sector is based on supply and demand, thus "its recovery will take a longer time," added Qamzi, who was speaking on the sidelines of the Global Agenda Summit in Dubai.
Average yields on sukuk climbed 19 basis points, or 0.19 percentage point, in November to 5.04 percent, the highest level since September, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index. Yields had dropped 194 basis points from May 31 until the end of October. The extra yield investors demand to hold non-Islamic emerging market debt instead of U.S. Treasuries rose 16 basis points in the month to 261 yesterday, according to JPMorgan Chase & Co.’s EMBI+ Index.
“The sukuk market doesn’t work in isolation,” Scott Lim, chief executive officer at Kuala Lumpur-based MIDF Amanah Asset Management Bhd., who oversees the equivalent of $670 million of assets, said in an interview Nov. 26. “Europe is having too many structural problems and this is only the beginning. It is going to be challenging for the bond market.”
When it was announced that Dubai’s top three government officials were to provide an “economic update” at the weekend, it was telling that rumours quickly began to swirl. Investors braced for another big announcement from the emirate.
Some judged that the only reason for these officials to speak would be a statement on the emirate’s debts, estimated at $110bn by the International Monetary Fund.
The event harked back to a year ago on November 25, when the government asked to freeze debt payments on up to $25bn owed by Dubai World, a troubled conglomerate brought low by real estate speculation and leveraged foreign purchases.Some judged that the only reason for these officials to speak would be a statement on the emirate’s debts, estimated at $110bn by the International Monetary Fund.