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Friday, 28 January 2011

2010 DS100 Summary: Companies Absorb Financial Crisis Shock

DS100 Top 100 Companies of the OIC
The 7th Annual DS100 continues to benchmark the corporate environment of the 57 OIC (Organization of Islamic Conference) member countries.
The 2010 DS100 ranking, which is based on end-of-year (EOY) 2009 revenue data of the top 100 Companies of the OIC member countries, fully shows the impact of the 2008/09 financial crisis. As expected, EOY 2009 revenues were down for all sectors represented on the DS100 compared to EOY 2008. The silver lining has been that sectors such as finance, consumer goods, and utilities absorbed the shocks, still showing single digit growth, although down from double digits growth experienced in the previous year.
With USD 1.12 trillion in total revenues, the 2010 DS100 list of companies recorded a 26.47% overall decline in annual revenue over the previous reporting period. Conversely, 44 companies on the list grew in revenue, with 19 showing double digit growth.

Top 100 Companies of the Muslim World [Infographic] Analysis next post.

UAE cbank: banks must book quarterly provisions from 2011 - Maktoob News

Banks in the United Arab Emirates, hurt by exposure to debt-laden Dubai World, must book provisions on a quarterly basis starting this year, according to a circular from the Central Bank, which is pushing for transparency in the country's banking system.

The UAE Central Bank issued a clarification and guidance manual to banks dated Jan 27 advising them to follow guidelines issued last November. The new rules are in line with the Basel Committee on Banking Supervision standards.

"Banks had issues in interpreting the November circular. The latest one is a detailed clarification," a senior banker said.

Aldar on the Edge (Not Any More) — Abu Dhabi Stock Analysis — GCC Market Analytics

At the beginning of the week I noted how the stock price of Aldar Properties was teetering on the edge, at the 2 dihram level.

Well, it's not any more. The 2 dihram level offered no support and stock fell to a new lifetime low of 1.81 by Thursday's close. Aldar finished down 11% for the week and is now down 20% since the start of the year (and an eye watering 86% from its 2008 all time high).

Revolt in Tunisia adds to economic risks and fiscal pressures for MENA sovereigns, says S&P -

Some Middle Eastern and North African (MENA) sovereigns could be more susceptible than others to contagion from the current revolt in the Republic of Tunisia (foreign currency ratings BBB/Watch Neg/A-3, local currency BBB+/Watch Neg/A-2 ), says Standard & Poor's Ratings Services today in a report.

Many of the economic and political factors that contributed to the protests leading to the resignation of Tunisia's president Zine El Abidine Ben Ali in mid-January 2011 can be found to different degrees and varying combinations in
other sovereigns in the region, says the report "Tunisia's Jasmine Revolution Is Adding To Political And Fiscal Risks In The MENA Region".

"Although we don't expect a wave of regional political instability, we see Egypt, Algeria, and Jordan, and to a lesser degree Morocco as most vulnerable in this respect," said Standard & Poor's credit analyst Kai Stukenbrock.

Weekly Market Analysis (Week 5) — Weekly Index Review — GCC Market Analytics

The weekly market analysis pages have been updated for trading week 5 (January 29th - February 3rd). Use the links below to view the individual market analysis pages:

The table below shows the market outlook based on each study.
Visit the links above to view the full analysis reports for all GCC markets.

gulfnews : National Bank of Fujairah net profit surges 64%

National Bank of Fujairah (NBF)reported a 63.85 per cent jump net profits to Dh170.9 million last year, compared to Dh 104.3 million in 2009, the company said in a statement.

The bank's operating income grew by 12.2 per cent and operating costs were reduced by 7.9 per cent while cost to income ratio improved from 44.5 per cent to 36.6 per cent.

The provision for loan losses was Dh205.0 million for the year compared to Dh214.3 million for 2009. The Bank continues to be prudent and proactive in providing for potential loan losses in view of ongoing uncertain market conditions.

Emivest asks for more time - The National

A Dubai aerospace company with facilities in the US is seeking to dispose of its assets and has asked American courts to extend its bankruptcy protection until the middle of summer.

Emivest Aerospace, which makes the SJ30 light jet, filed for bankruptcy protection in October with the US district court in Delaware and has been looking to sell its assets before a deadline set by the courts for next month.

But last week lawyers for the company asked for an extension until mid-May to file a formal bankruptcy reorganisation plan, and until mid-July for creditors to accept the plan. / Capital Markets - Emaar seeks to ease debt with $500m bond

Dubai-based Emaar Properties has issued a $500m bond as it seeks to raise funds to settle debts and fund projects outside the emirate.

The region’s largest developer, builder of the world’s tallest tower, issued the five-and-a-half-year Islamic bond as part of a broader $2bn programme, paying a profit (equivalent interest) rate of 8.5 per cent.

The sukuk will list on the London Stock Exchange. Last year, Emaar sold a convertible bond worth $500m. The government-backed developer appointed HSBC, Standard Chartered and Royal Bank of Scotland to arrange the deal, which took in roadshows across the Middle East, Europe and Asia.

Frontier markets: a rerun of history? | beyondbrics –

Bangladeshis going to marketFor investors looking beyond today’s emerging markets to tomorrow’s, UBS has some advice. Don’t. Today’s top EMs – China, India and the rest – offer better investment prospects for the next decade than anything wild and whacky.

But if you are irresistibly drawn to the edge, choose carefully. Some frontier markets offer better chances than others. The UBS picks are the Gulf states – plus Bangladesh, Croatia, Vietnam, Lebanon, Kazakhstan, Slovenia, Kenya, Pakistan, Argentina and Nigeria.

This is not a small list, of course, but as UBS points out, frontier markets are inherently riskier than more developed economies and investors are wise to put their pennies into baskets of states.