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Wednesday, 25 May 2011

DP World owner mulls $850 mln refinancing | Reuters

Port & Free Zone World (P&FZ), the direct owner of global ports operator DP World (DPW.DI) is considering refinancing options for an $850 million financing facility, the prospectus for DP World's London listing showed.

Shares in DP World, the third largest ports operator in the world and one of the more profitable units of debt-laden Dubai World [DBWLD.UL], will begin trading on the London Stock Exchange on June 1, the company said on Wednesday. [ID:nLDE74O16A]

State-owned conglomerate Dubai World is the parent company of P&FZ, which owns 80.5 percent of DP World and has two representatives on the latter's board of directors, the prospectus, published May 25, said.

Govt spending to drive loan growth at Kuwait banks: Goldman - Arab News

Government spending is likely to drive loan growth in Kuwait, but valuations already seem to reflect the strong outlook, said Goldman Sachs, starting coverage of four Kuwaiti banks.

Kuwaiti banks have outperformed GCC peers over the last year due to positive sentiment on the implementation of the development spending plan, Goldman said.

Media reports suggest that half of the project — a four-year, 30 billion-dinar plan aimed at diversifying the crude-reliant economy and increasing the role of the private sector — will be financed by banks, Goldman said.

DP World outlook revised to positive on improved financial profile after share sale and Dubai World restructuring -

Standard & Poor's Rating Services said today that it has revised its outlook on Dubai-based port operator DP World Ltd. (DPW) to positive from stable.

We also affirmed our 'BB' long-term corporate credit and senior unsecured debt ratings, and our 'B' short-term corporate credit rating on DPW.

The recovery rating on the senior unsecured debt is unchanged at '3', indicating our expectation of meaningful (50%-70%) recovery in the event of a payment default.

MENA stock markets close - May 25, 2011

ExchangeStatus IndexChange
TASI (Saudi Stock Market)
DFM (Dubai Financial Market)
ADX (Abudhabi Securities Exchange)
KSE (Kuwait Stock Exchange)
BSE (Bahrain Stock Exchange)
MSM (Muscat Securities Market)
QE (Qatar Exchange)
LSE (Beirut Stock Exchange)
EGX 30 (Egypt Exchange)
ASE (Amman Stock Exchange)
TUNINDEX (Tunisia Stock Exchange)
CB (Casablanca Stock Exchange)
PSE (Palestine Securities Exchange)

No change to Nakheel sukuk rate - Emirates 24/7

Nakheel properties has no plans to change a 10 per cent profit rate on its Dh4.8 billion sukuk (Islamic bonds) which it intends to issue towards the end of June, a newspaper said on Wednesday.

The Arabic language daily Al Khaleej quoted an unnamed responsible source in Nakheel as saying market reports about an imminent change in the profit rate were incorrect.

“These news are baseless…Nakheel is committed to all its promises to settle claims by creditors through sukuk issue with a profit rate of 10 per cent over a period of five years to be paid every six months,” the source told the paper.

DP World to list shares on London exchange June 1 | Reuters

Shares in DP World (DPW.DI), the third largest ports operator in the world, will begin trading on the London Stock Exchange on June 1, a company statement said on Wednesday, as the firm seeks to boost liquidity.

DP World - considered one of the more profitable units of debt-laden Dubai World [DBWLD.UL] - said in April that it planned for a one-for-20 share consolidation to put its share price more on a par with global companies. [ID:nLDE73503M]

"It is anticipated that, subject to the approval of the UK Listing Authority, the first day of trading will be Wednesday 1 June 2011," the statement said. At the time of writing, a copy of the prospectus had not yet been published.

Emirates seeks to give up assets on bond default - Maktoob News

Dubai flagship carrier Emirates' groundbreaking attempt to allow investors in its planned dollar bond to seize assets if it cannot repay could be undermined by conflicting laws in the country.

Emirates, which is wholly owned by the Dubai government's investment arm, has exempted investors from a decree that blocks the seizure of its assets in a default, according to its bond prospectus.

The move, unusual for Dubai government-linked firms, may have been aimed at easing investors' concerns about Dubai, whose 2009 debt crisis brought the emirate to its knees.

Saudi's Atheeb blames rival for losses, shares halted - Maktoob News

Saudi Arabia's Atheeb Telecom on Wednesday said unfair competition was to blame for mounting losses that led to its shares being suspended on the kingdom's bourse.

The fixed line provider, which is 15 percent-owned by Bahrain Telecommunications Co , now has accumulated losses of 95 percent of its capital, according to a statement on the Saudi bourse website. Saudi market rules call for a suspension if losses exceed 75 percent.

"The company incurred in the recent period large losses of capital as a result of uncompetitive behaviour and practices from the controlling operator," Atheeb chairman Prince Abdul-Aziz Ahmed bin Abdul-Aziz said in a statement to Reuters.

Dubai Shares Drop a Fifth Day, Led by Emaar, on Europe Debt Crisis Concern - Bloomberg

Dubai’s shares retreated for a fifth day, led by Dubai Islamic Bank PJSC (DIB), as emerging-market stocks slumped amid concern Europe’s sovereign debt crisis will spread and slow the global economic recovery. Oil declined.

Dubai Islamic, the United Arab Emirates’ biggest bank complying with Shariah rules, dropped 1.9 percent and Emaar Properties PJSC (EMAAR), builder of the world’s tallest skyscraper, declined a third day this week. The DFM General Index (DFMGI) lost 1 percent to 1,528.57 at 11:19 a.m. in Dubai, the longest losing streak since January. The Bloomberg GCC 200 Index (BGCC200) slipped 0.2 percent and the MSCI Asia Pacific Index slid 0.6 percent.

“The euro macro theme is predominant at the moment, influencing risk appetite,” said Anastasios Dalgiannakis, a Dubai-based trader at Mubasher Financial Services.

Standard Chartered Affiliate, OCBC Said to Bid for Bank Muamalat Indonesia - Bloomberg

A Standard Chartered Plc (STAN) affiliate, Qatar Islamic Bank SAQ and Oversea-Chinese Banking Corp. are among bidders for a controlling stake in PT Bank Muamalat Indonesia, the country’s oldest Islamic bank, people with knowledge of the matter said.

Shareholders of privately held Bank Muamalat plan to sell more than 50 percent of the lender in a deal that may value it at as much as $600 million, one of the people said, declining to be identified because the talks are private. Second-round bids are due in mid-June, the people said. PT Bank Permata, an Indonesian lender 45 percent owned by Standard Chartered, is bidding for the stake, one person said.

“It makes sense to address this segment in a big and proper way,” Sanjay Jain, a Singapore-based analyst at Credit Suisse Group AG, said of Islamic banking. “If you’re a player in southeast Asia, you’ve got to be in this segment.”

AL WATAN DAILY - Investment sector loses KD 138 million in 2010, down from KD 415 million in 2009

Investment sector loses KD 138 million in 2010, down from KD 415 million in 2009
Wednesday,25 May 2011

S&P keeps Abu Dhabi outlook; no UAE rating yet - Maktoob News

Abu Dhabi's credit outlook is stable despite regional unrest, rating agency Standard & Poor's said on Tuesday, adding it had not been mandated by the United Arab Emirates to assign a rating to the Gulf Arab state.

Abu Dhabi, which accounts for more than 60 percent of annual gross domestic product of the UAE, the world's third largest oil exporter, is rated AA by S&P and rival Fitch Ratings.

"It's a stable outlook right now," Moritz Kraemer, head of sovereign credit ratings for Europe at Standard & Poor's told Reuters in an interview. "We think that the risks are fairly balanced, so neither an upgrade nor a downgrade is imminent."

LSE woos more Qatari firms to list

The London Stock Exchange (LSE) is all set to list one more Qatari company and might woo more publicly-traded entities from the region, especially with Arab Spring changing the dynamic in the Middle East and North Africa (MENA) region.

Two key LSE officials who were here yesterday said they hoped to list yet another Qatari public shareholding company, hopefully within this year, but refused to divulge details.

The new listing will take the total number of Qatari firms represented on the LSE to four. As for the GCC, the LSE hopes to rope in at least four firms from here for listing this year.

Foreign assets to jump to $186bn by '12 - Zawya

The value of foreign assets in Qatar is expected to jump up to $186bn in 2012 from $133bn in 2010, and the economic growth rate would remain on top in the world at 18 percent this year as compared to last year, 18.5 percent, Washington based 'Institute of International Finance' (IIF) said in a study.

Real GDP growth of Qatar was 8.5 percent in 2010 and the growth of hydrocarbon sector was recorded at 27.9 percent and non-hydrocarbon sector at 9.2 percent. The expected real GDP growth is expected 8 percent due to the huge production of Liquefied Natural Gas (LNG).

IIF expects that Qatar's real GDP growth during next two year will be six percent in 2012 and four percent in 2013, said the report posted on Arabic website.

UAE stocks not discounting oil at $130 next year « ArabianMoney

UAE stockmarkets are heading into the summer doldrums with a vengeance and are now almost back to the levels of last summer. Even the promise of oil at $130 as soon as next year from the top forecasters at Goldman Sachs could not raise prices yesterday.

That is a bit too far out for the average local investor whose buy-an-hold strategy seldom gets past lunchtime. Besides they are all having a bad run of luck.

» How the UAE Economic Is Recovering (In Six Helpful IMF Charts) alifarabia

The UAE economy started to recover in 2010, though more modestly than in neighboring GCC countries. Benefiting from higher oil prices and strong demand from traditional trading partners in Asia, real GDP grew by an estimated 3.2 percent in 2010.

Nevertheless, because of the real estate overhang and continued uncertainties about the solvency of GREs, growth remained below the regional average of 5 percent. The 12-month consumer price (CPI) inflation rate was subdued at 1.7 percent in December 2010, up from -0.3 percent at end-2009.

Click to see how the UAE economic recovery is progressing.

» How the UAE Economy Imploded – Explained In 6 IMF Charts alifarabia

The global financial crisis brought an end to a decade of high growth.

The U.A.E. has had remarkable achievements over the last decade with its open and outward orientation, which led to a diversified and steadily growing economy. The decline in oil prices, the post-Lehman shut down of international capital markets, and the price correction in the property market in Dubai have put significant strains on the economy.

The UAE authorities supported the banking sector through liquidity injection, recapitalization, and deposit guarantees, and the Emirate of Abu Dhabi provided financial support to the Emirate of Dubai. Nevertheless, the combination of substantial short-term borrowing of the highly-leveraged GREs in Dubai, the price correction in the real estate market, and maturity mismatches forced Dubai World (DW), a major Dubai GRE, to seek a debt standstill. Real GDP is estimated to have contracted by 3¼ percent in 2009.

gulfnews : Mashreq to finance $11b

Mashreq Bank is looking to finance $11 billion worth of infrastructure, energy, transportation projects this year in the Gulf Coopeation Council (GCC) countries, compared to about $10 billion (Dh36.7 billion) in 2010, Karim Mahmoud, Co-Head of the bank's corporate investment banking group.

Speaking to reporters on the sidelines of the Meed-organised Arabian World Construction Summit, Mahmoud said Mashreq Bank is also looking to finance projects of service companies and companies working in hospitality, health care and retail industries. "We are well-positioned in these segments," said Mahmoud.

He said in 2009 the bank financed $7.5 billion worth of projects and in 2010, $5 billion worth of projects in Abu Dhabi and other parts of the GCC last year.

United Arab Bank set to go against the grain with expansion - The National

United Arab Bank (UAB) plans to boost both its Abu Dhabi branch network and the number of its Emirati customers.

UAB's optimism contrasts with the action of larger rivals that are scaling down operations in the UAE. HSBC, Barclays Bank and Shuaa Capital have all reduced staff numbers in the Emirates in the past month.

The bank, based in Sharjah, will open four branches this year, taking its total to 17 across the UAE. Three will be in Abu Dhabi, with the fourth in Dubai.

Rasmala shuts retail brokerage - The National

Rasmala Holdings has shut its retail brokerage in an effort to reduce costs, it said yesterday.

Rasmala will instead focus on institutional equity sales amid dwindling demand for buying and selling shares among the general public.

"The retail operation was always a secondary part of our business. We found it too much of an operational headache to maintain, combined with higher costs and added risk," said Ali al Shihabi, the chairman of Rasmala Investment Bank.

Egypt Yields Signal Higher Cost for $1 Billion Bond Sale as Economy Rocked - Bloomberg

Egypt, struggling to raise funds at local government debt auctions, is turning to international markets for the first time since a popular revolt in February ended the three-decade rule of President Hosni Mubarak.

Egypt’s 10-year dollar bonds, sold in April 2010 at a yield of 5.75 percent, fell, pushing up the rate 2 basis points to 5.94 percent. The yield climbed five basis points yesterday after Finance Minister Samir Radwan said he plans to “quickly” raise $1 billion through foreign notes backed by a U.S. “sovereign guarantee.” He cited the need to diversify financing sources as the government sold 51 percent of the amount offered at a local auction and the average yield on 252- day bills rose to 12.869 percent, the highest since November 2008.

The government will probably pay more to borrow overseas than in 2010, said Win Thin, the head of emerging-market strategy at Brown Brothers Harriman & Co. The budget deficit may grow to the widest in more than a decade in 2012 after Mubarak’s fall led tourists to flee and agencies to cut the country’s credit ratings, according to the Ministry of Finance.

Saudi Economic Survey: Kingdom Must Invest $88 Billion in Power | Arabianomics

Saudi Arabia needs to invest SR 330 billion over the next 10 years as demand for electricity continues to grow 7-8 per cent annually, the Kingdom’s Minister of Water and Electricity has said.

Abdullah Al-Husayen told an industry conference held recently that the water and power sector would need investments of SR 500 billion in the next 10 years, and that demand for water was growing by more than 7 per cent annually.

‘It is expected that the maximum power load will reach 75,000 megawatts in the next 10 years which means the need to invest around SR 330 billion to boost generation capacity and transmission and distribution networks,’ Al Husayen said.

Saudi poised for large fiscal surplus - Emirates 24/7

A sharp increase in oil prices and output will allow Saudi Arabia to record large fiscal surplus despite an expected surge in spending because of benefits announced by King Abdullah over the past weeks, according to a western financial institute.

The Washington-based Institute for International Finance (IIF) also said it had revised up its earlier forecast for Saudi Arabia’s GDP growth from 3.5 to 5.3 per cent because of the projected sharp rise in spending.

Citing Saudi private estimates, it put the total value of social benefit packages at around SR467 billion, equivalent to 27 per cent of 2010 GDP.