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Tuesday, 14 June 2011

Dubai aims to offer 5-yr put option on bond-sources | Reuters

Dubai's government, buoyed by returning investor sentiment and the falling cost of borrowing international capital, is trying to lure investors with a potential 10-year dollar bond with a five-year put option, banking sources said on Tuesday.

The bond structure, unusual in the region and crafted by Dubai's Department of Finance, is aimed at allowing bondholders to redeem their investment before maturity at full value, the sources said. In return, bondholders would settle for a lower yield .

"It's a very innovative method to tap into market now for Dubai," said a banking source familiar with the matter.

MSM 30 to be reconstituted: Times of Oman

The Muscat Securities Market (MSM) will reconstitute the basket of stocks in the main general index named ‘MSM-30’ by replacing relatively less active or less liquid shares with
active stocks.

The market authorities are presently working on the new sample stocks and the reconstituted index — the barometer of the market movement — will be introduced by next month.

It is generally believed that Nawras, which was listed only last year after its initial public offering, will be included this time for determining the index.

MENA stock markets close - June 14, 2011

ExchangeStatus IndexChange
TASI (Saudi Stock Market)
6568.51-0.24%
DFM (Dubai Financial Market)
1567.910.66%
ADX (Abudhabi Securities Exchange)
2711.540.07%
KSE (Kuwait Stock Exchange)
6330.40.20%
BSE (Bahrain Stock Exchange)
1350.920.36%
MSM (Muscat Securities Market)
6061.430.08%
QE (Qatar Exchange)
8311.20.31%
LSE (Beirut Stock Exchange)
1370.80.09%
EGX 30 (Egypt Exchange)
5613.451.14%
ASE (Amman Stock Exchange)
2156.08-0.08%
TUNINDEX (Tunisia Stock Exchange)
4204.580.79%
CB (Casablanca Stock Exchange)
11981.7-0.12%
PSE (Palestine Securities Exchange)
502.56-0.09%

Qatar at two-week high, further gains seen

Qatar's index closes at a two-week high as local buyers pick up stocks on valuations with further gains expected.

"I see the market well positioned for capital gains and if not, then enjoy the dividends – it is the best in the region," says a Doha-based trader on condition of anonymity.

The benchmark ends 0.3 percent higher at 8,311 points, its highest close since June 1.

Middle East Crude-Brent/Dubai jumps to 6-½ yr high | Reuters

Differentials in the Middle East crude market were under intense pressure on Tuesday from rising Saudi Arabian output, which sent the discount of Dubai crude to Brent to its widest level in 6-½ years.

The Brent/Dubai Exchange of Futures for Swaps (EFS) jumped 30 cents to $8 a barrel by 0830 GMT, Reuters data showed, after reaching $8.40 earlier on Tuesday. Some Asian traders said it may reach $9 in coming days.

The spread is the widest since December 2004, when a glut of heavy sour crude depressed the relative value of exports from producers such as Saudi Arabia, Kuwait, the United Arab Emirates, Iran, Iraq, Qatar, Venezuela and non-OPEC Mexico.

Qatar Airways IPO this autumn would be good news for Gulf stocks « ArabianMoney

Qatar Airways may bring forward its planned 2012 initial public offering to later this year, CEO Akbar Al Baker told reporters today. A successful IPO of this size would be good news for all the bombed-out Gulf stock markets.

The airline would use the proceeds of the IPO to help finance its ambitious expansion plans. Qatar Airways has been on a buying spree in recent years. The last order was in April for $1.3 billion to add five Boeing 777s to its 97-aircraft fleet.

Saudi Cabinet approves $13.6 billion loan to Saudi Electricity Co. for project financing - The Washington Post

Saudi Arabia’s Cabinet has approved a 51 billion riyal ($13.6 billion) interest free loan to the Saudi Electricity Co. to help it cover its projected fiscal deficit and complete projects through 2012.

Information and Culture Minister Abdel-Aziz Khoga said Monday the 25-year loan is aimed at helping the state-run company meet deadlines to boost power generation capacity in the energy rich kingdom.

Saudi Arabia plans to invest about $80 billion in its power generation sector in the next decade to cope with domestic demand that is increasing at about eight percent yearly.

Qatar Airways may go public this year

Qatar Airways, the country's flagship carrier, is considering an initial public offering (IPO) in 2011 and has appointed advisors for the purpose, its chief executive said on Tuesday.

"It could be this year. The more market share we gain, the timeline moves forward," Akbar Al Baker told reporters. He declined to name the advisors.

In December, the company indicated it was planning an IPO in early 2012 after three consecutive years of profit.

Overall Mena markets to remain tough in 2011: Deutsche | Alrroya

Deutsche Bank expects tough market conditions in the Middle East and North Africa (Mena) this year, a senior executive said on Tuesday.

Salman Al Khalifa, the bank's top executive in the UAE and head of markets, said Deutsche retained a positive outlook on the region's equities market.

"Even though political conditions have stabilised, lending conditions remain tight," he told reporters. "We expect Mena market conditions to remain tight and tougher.

Waterfront spat simmers | IOL.co.za

The threat of an urgent high court application to prevent the proceeds from the R9.7-billion sale of the Victoria & Alfred (V&A) Waterfront from being repatriated from South Africa by Emirati investment firm Dubai World has disappeared.

However, the multimillion-rand commercial dispute involving New York-based property company Devland Holdings and Swiss-based trust Bayliss, and Dubai World, listed property company Growthpoint and the Public Investment Corporation (PIC) has not yet been resolved and could still end up in court.

Neill Bernstein, the founder and president of Devland Holdings, confirmed last week that a letter of demand had been sent by Devland and Bayliss to former V&A Waterfront joint owner Dubai World for advisory, consulting and broking fees.

Abu Dhabi's Waha Capital inks $505 mln credit facility - Maktoob News

Investment firm Waha Capital inked a deal for a $505 million credit facility and is "actively looking" to deploy the capital, it said on Monday.

The three-year term and revolving facility was signed with eleven local and international banks. Waha said the funds would go towards new and existing investments.

The firm, which is involved in real estate and leasing for the oil and aviation sectors, did not give further details.

Abu Dhabi's Dolphin Energy picks banks for dollar bond - Maktoob News

Abu Dhabi's Dolphin Energy Limited, 51 percent owned by state fund Mubadala, has picked banks for investor meetings ahead of a potential dollar bond issue, arranging banks said on Monday.

A benchmark bond from the energy firm would not exceed $1.93 billion, a document from the lead managers, seen by Reuters, showed.

Benchmark is usually understood to be at least $500 million.

gulfnews : UAE interbank offered rates at seven-year low

Capital inflows into the UAE, boosted by unrest in Bahrain, brought interbank offered rates to a seven-year low yesterday as liquidity stayed high in the Gulf state's banking sector.

Bank deposits in the world's No 4 oil exporter rose in April to their highest level in at least two years. However, UAE banks are still hesitant to lend following Dubai's debt woes and weakness in the property sector.

"In the last quarter we have seen a substantial amount of liquidity returning to the region, from Gulf states into the UAE as well as international investors looking for carry," said Benoit Anne, head of emerging market strategy at Societe Generale in London.

Jail only makes things worse in debt defaults - The National

When an individual cannot pay his debts, throwing him into prison will not help. But that is what happens too often. The result is that people in serious financial trouble have an incentive to flee the country, leaving their debts behind. There must be a better way.

The Business section of The National today reports on an unforeseen consequence of the way people snapped up unbuilt flats at the peak of the market. Now their properties are ready and mortgages are taking effect, but real estate values have fallen so sharply that they have lost money. The result is genuine financial distress for individuals and families.

"Underwater" mortgages are a problem in some other countries, too, but in the UAE the issue is more serious because of the relatively transient population - many expatriates might find it easier to leave abruptly than to resolve their obligations.

London court is told Al Gosaibi is victim of 'master fraudster' - The National

A Saudi business group that collapsed under a US$9 billion (Dh33.05bn) tide of debt fell victim to the "brazen" activities of Maan al Sanea, London's High Court heard yesterday.

Mr Justice Flaux was also told Mr al Sanea covered up the group's "increasingly desperate" financial state while simultaneously "bleeding it dry".

Ahmad Hamad Al Gosaibi and Brothers are defending a $220 million lawsuit brought by five banks over claims that for decades it buried the "guilty secret" it was bust until it defaulted on its liabilities in 2009.

DP World a compelling investment opportunity - The National

DP World did not "pop" when listed on the London Stock Exchange (LSE) this month, but the company is still garnering plenty of market support.

Analysts have long cited the company's logistics business as a reliable profit-maker.

Coupled with its flotation on the LSE, which offers international investors exposure to the world's third-largest operator of container terminals, analysts say it presents a compelling investment.

Opec Gulf allies are all pumped up to go it alone on output - The National

Opec's gathering in Vienna last week ended in "one of the worst meetings we have ever had", according to the Saudi oil minister Ali al Naimi.

The lack of a resolution to raise oil production in the face of tightening markets was first received as bad news by consumers, prices rising US$2 in response.

Yet the real losers are those who said "No" - Algeria, Angola, Ecuador, Venezuela, Iran, Iraq and Libya.

Saudi oil capacity depleted: Goldman | Reuters

Saudi Arabia's cushion of spare oil capacity would shrink to almost nothing if the kingdom quickly ramps up to 10 million barrels per day (bpd), Goldman Sachs' global head of commodities research said on Monday.

Last week the kingdom said it would unilaterally produce as much oil as the market needed after the Organization of the Petroleum Exporting Countries failed to reach agreement as a whole on output policy.

Saudi newspaper al-Hayat reported Saudi Arabia would boost output to 10 million bpd in July, which Jeff Currie of Goldman Sachs said would leave only 500,000 bpd spare.

Investors pressure Vodafone Qatar - The National

Vodafone Qatar is under pressure as investors are pushing the operator to step up its game.

The company has yet to make a profit since entering the country's telecommunications market in 2009, breaking the Qatar Telecom (Qtel) monopoly.

At its annual meeting on Sunday, Vodafone Qatar announced it would not distribute dividends until 2013.

Rich Qatar needs to develop wealth management -BCG

Qatar's banking sector should develop its wealth management services to profit from the large number of high net-worth individuals in the wealthy Gulf state, Boston Consulting Group said on Monday.

Qatar has the third-highest density of millionaires in the world after Singapore and Switzerland, with 8.9 percent of households having $1 million or more in assets to manage, according to a study done by the company.

'There is a large opportunity for local banks to seize. But so far in Qatar, there hasn't been a bank that has got the business model right,' said Douglas Beal, managing director at Boston Consulting Group based in Dubai.

Gulf Times – Qatar debt market has huge growth prospects: QFCA

Fast growing Qatar has huge potential to develop its debt market and there is a need for developing other investment opportunities to support asset management industry, according to the Qatar Financial Center Authority (QFCA).

“World-wide debt market is three-four times more than the equity market and so there is a huge scope for debt market,” QFCA director for reinsurance Akshay Randeva said at a function to launch the 2010 annual review, which gave a “positive and upbeat” assessment of the financial services sector in the country. The Qatar Exchange (QE) had recently said the listing of bonds, starting with sovereign debts, could be expected soon.

Once the yield curve is created, corporate debts could find their place, Randeva said. However, QFC sources said they are awaiting the listing rules of bonds from both the Qatar Financial Market Authority and the QE.

FT.com - Oil: Differences in Opec magnified

Opec meeting
Above themselves: their images projected on an overhead screen, Iran’s Mohammad Aliabadi is flanked by Goni Musa of Nigeria (left) and Abdalla Salem el-Badri, Opec secretary-general, at this month’s Vienna ministerial meeting. Saudi Arabia is unlikely to heed the quota outcome there 

Until this month, Mohammad Aliabadi’s main task was to prepare Iranian athletes for the 2012 London Olympics. Then, on June 2, the head of his country’s National Olympic Committee was suddenly appointed oil minister. Within just five days, he was sweeping into Vienna in a black limousine with Austrian police escort to take the helm of the most highly charged Opec meeting in recent history.

The honour was his because Tehran holds the oil cartel’s presidency for the first time since 1975 – not, in other words, since the days of the shah. Just as notably, Mr Aliabadi, a former director of a brick company and “acting minister of agricultural jihad”, lacked any experience of oil policy.

Ahead of the meeting, the oil market had apparently convinced itself that the neophyte representative of one of the world’s most isolated regimes was about to announce the first upward revision of Opec’s production quotas for almost four years. What happened next raises crucial questions about the balance of power within Opec and its future credibility.



Oil rise, Dubai’s petrol retailers bleed | beyondbrics – FT.com

Fuel shortages in the oil-rich Gulf can only mean one thing: crisis.

Amid the political tumult of the Arab world, petrol shortages have accompanied acute moments of distress from Libya to Bahrain.

But the latest shortages in some emirates of the United Arab Emirates may stem from a different type of crisis: a longstanding economic imbalance rooted in intra-federal politics.