Friday, 28 January 2011
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.
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 - bi-me.com
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.
The table below shows the market outlook based on each study.
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 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.
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.
For 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.