Tuesday, 7 December 2010
Dubai, which has around 50,000 rooms, may struggle to maintain occupancy and rates as a further 30,000 rooms are likely to be added, said Alex Kyriakidis, the New York-based consulting company’s global managing director of Tourism, Hospitality & Leisure.
The sheikhdom has spent billions of dollars to transform itself into an international tourist destination. It built the sail-shaped Burj Al Arab hotel and opened a 160-room hotel designed by Giorgio Armani in the Burj Khalifa, the world’s tallest tower. Horserace complex Meydan and Dubai Mall are also among the attractions that have been built.
'Hearing talk of Qataris bidding 450 pence (per share) for Sainsbury,' said one trader.
Sainsbury and Qatar Holding, which owns about 26 percent of Britain's third-biggest supermarket group following a failed takeover attempt in 2007, said they never comment on rumor and speculation.
"You will see a lot of cancellations (in 2011) for projects that have no benefit for Dubai or for the investor," Marwan bin Ghalaita, chief exeutive of the Real Estate Regulatory Authority (RERA), told Arabian Business.
Ghalaita said RERA had cancelled 115 projects that existed only as architects' drawings since the financial downturn, but "less than ten" projects upon which construction had started.
This post focuses on relative strength. The table below ranks each Qatar stock by the relative strength of its price action over three time periods: 20, 50 and 100 days.
For each stock there are three colour spectrums corresponding to each time period. When the black diamond is at the green end of the spectrum this indicates that the current price of the stock is towards the upper end of its trading range over a particular time period. When the black diamond is at the red end of the spectrum this indicates that the stock is towards the lower end of its trading range.
As you would expect from a market that has performed so strongly over the past six months there are a number of stocks that are displaying very strong relative strength over the all three time periods (the highest ranked stocks in the table below).
That said, there are also a number of stocks that are displaying quite week relative strength. So, even in a hot market such as Qatar there are still leaders and laggards.
In the next post I'll take a quick look at what stocks have performed best on a absolute basis, i.e. which Qatar stocks have risen the most so far this year.
The current employment recession (red line) stands out in both its severity and duration. The number of jobs lost (about -6% from the peak employment rate at the lowest point) is greater than any post WWII employment decline. And if that wasn't bad enough the current employment recession has already lasted longer than all but one other post WWII employment decline (and is on track to be longer than that one as well).
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The point here is that the current employment situation in the US and, for that matter, the wider economic situation doesn't conform to a typical post WWII slowdown. Beware of analysis and economic predictions that assumes we are.
Several have opened full offices in the Gulf even as big US and European investment banks, which swamped the region with bankers in the years preceding the financial crisis, struggle to find enough work.
Dubai World , the largest and most troubled of the emirate’s conglomerates, has been advised by Rothschild while the government has been advised by Moelis & Company, a firm set up by Ken Moelis, a former UBS veteran, in 2007.
The full payment to the bondholders means that the bank has met most of its Dh3.017 billion debt obligations maturing this year.
Following the announcement of the third quarter results, Rick Pudner, chief executive of Emirates NBD told reporters that the bank's debt maturity profile is well within its funding capacity.
Etisalat and Zain have units in the kingdom and compete for market share.
'The question that remains is what happens to Zain Saudi if this deal goes through,' said Farouk Miah, an analyst at NCB Capital in Riyadh.
I refer, of course, to one of the Middle East's longest-running and most convoluted business disputes, the confrontation between the al Gosaibi family of Saudi Arabia and their erstwhile favourite son-in-law, Maan al Sanea.
It is becoming a saga worthy of a Tolstoyan treatment, with sub-plots and minor characters appearing briefly, flickering for a few weeks and then falling back within the main drama. It certainly requires one of those lists of dramatis personae the Russian novelist went in for, with a cast running into the hundreds. War and Peace, except there is no sign of peace on the horizon.
It reflects the economic performance of Saudi Arabian nonoil producing private sector companies and firms through the monitoring of a number of variables, including output, new orders, exports, input prices, output prices, quantity of purchases, stocks and employment.
The headline index climbed to 62.2 in November — its highest level to date — up from 59.9 in October. The reading signaled another sharp improvement in the health of Saudi Arabia's nonoil private sector economy.
“We expect all Qatari banks to benefit from stronger economic activity and higher credit demand over the next 12 years,” Moody’s analyst Elena Panayiotou said in a report e- mailed today. The spending will create long-term business growth opportunities for the banks and “enhance franchise development in their domestic market,” she said.
The country plans to spend $4 billion on the stadium construction and refurbishment program. A new 200,000-population city called Lusail, north of the capital, is scheduled to be built over the next decade and will feature the stadium that hosts the World Cup final. Qatar expects to construct a rail and metro network, costing more than $25 billion, in Doha and extending to cities outside the capital.
Doubts linger over whether Qatar will be able to handle an influx of about 400,000 fans, plus the 32 competing teams and a huge media presence.
To ease concerns about a lack of infrastructure, Qatar is looking to spend some $100 billion over the next five years, according to some estimates.
'While there were sufficient orders to fully cover the IPO book at the price range, primarily due to demand from high quality international investors in Europe and the U.S., there were widespread concerns about market conditions and liquidity,' a company statement said.
'The board has therefore decided to withdraw the offer at this juncture to protect current and future shareholders of Axiom,' it said, adding that plans to list on NASDAQ Dubai were also cancelled.
But, with a lengthy and complicated drug licensing process and foreign ownership restrictions, overseas companies are forced to form partnerships with local drugmakers to guarantee that their products are legal and marketed, experts say.
For example Merck, the pharmaceutical company now known as MSD outside the US and Canada, signed a five-year licence agreement in October with Spimaco, a leading Saudi pharmaceuticals company, to commercialise and manufacture its products.
Like everyone else, sovereign wealth funds are turning their eyes - and their considerable capital - to emerging markets. Today brought news that a consortium of funds is investing$1.8bn in fresh capital into BTG Pactual, the independent Brazilian investment bank.
The deal “a sign of a new financial order”, according to Pactual chief Andre Esteves, and is the funds’ first big move into Brazil in particular and Latin America in general. The FT’s Patrick Jenkins and Jonathan Wheatley report:
The investment – by nine funds, including Singapore’s GIC, China’s CIC and the Abu Dhabi Investment Council – marks the biggest ever sovereign wealth fund commitment in Brazil and underlines the shift in the funds’ focus away from western economies and towards emerging markets.
In that one short sentence Sheikh Mohammed succinctly caught the mood after Fifa, football’s global governing body, shocked many by awarding his nation the right to host the 2022 World Cup.
The celebrations went on through the weekend as cables of congratulations arrived in Doha from across the globe.