Monday, 27 June 2011
AGIB is the first DFM brokerage firm to accomplish this significant step. The exchange is currently processing similar applications from other brokerage firms in collaboration with the UAE Securities and Commodities Authority (SCA).
The SCA earlier issued a licence to AGIB to practise margin trading. Margin trading allows brokerage companies to fund a percentage of the market value of securities traded, secured as collateral by the same securities or any other collateral as required by the SCA's licence.
|TASI (Saudi Stock Market)||6507.21||-0.07%|
|DFM (Dubai Financial Market)||1525.61||0.29%|
|ADX (Abudhabi Securities Exchange)||2704.47||-0.51%|
|KSE (Kuwait Stock Exchange)||6253.5||-0.11%|
|BSE (Bahrain Stock Exchange)||1330.03||-0.58%|
|MSM (Muscat Securities Market)||5953.7||-0.93%|
|QE (Qatar Exchange)||8249.62||0.51%|
|LSE (Beirut Stock Exchange)||1346.97||-0.05%|
|EGX 30 (Egypt Exchange)||5375.73||-1.15%|
|ASE (Amman Stock Exchange)||2104.43||-0.43%|
|TUNINDEX (Tunisia Stock Exchange)||4300.08||0.06%|
|CB (Casablanca Stock Exchange)||11624.2||0.20%|
|PSE (Palestine Securities Exchange)||495.69||-0.42%|
It's a question whose answer escapes me. Egypt is facing an economic crisis in the year ahead, even if there are some signs of recovery from the dire months immediately during and after the revolution, and has a long-running fiscal deficit problem that's only getting worse. Why is it not taking money that comes fairly cheaply (in the sense of low interest rates and not many strings attached) and that it could use for some stimulus spending to accelerate the recovery?
Egypt will not borrow from the World Bank and International Monetary Fund after revising its budget and cutting the forecast deficit, even though a loan had been agreed, Finance Minister Samir Radwan said Saturday.
The 2011/12 deficit in the first draft budget was forecast at 11 percent of gross domestic product, but was revised to 8.6 percent because of a national dialogue and the ruling army council's concerns about debt levels, the minister told Reuters.
After a real estate crash it is usual for some kind of banking crisis to follow and then a consolidation of the banks. Emirates International, now merged with the National Bank of Dubai, was formed after a similar episode in the early 1980s.
It is therefore perhaps suprising that Dubai has not seen more consolidation in its banking sector in the wake of the worst real estate collapse in a generation almost three years ago this autumn and the subsequent credit crunch.
Could the arrival of Sheikh Ahmed bin Saeed Al Maktoum as the chairman of Emirates NBD this week herald just such a change? Certainly the retirement of the chairman of 28 years probably means something, and Sheikh Ahmed is a man whose time is very precious.
Sheikh Ahmed has emerged from the Dubai financial crisis as the most important person in the emirate after the ruler himself. His cool guidance of the $24.9 billion Dubai World debt restructuring has left him the emirate’s key problem solver, as well as the chairman of Emirates Airline and many other top government posts.
So he would hardly be taking up such an important role for the fun of it. Indeed, the sudden nationalization of Dubai Bank last month, owned by Dubai Holding and Emaar (click here), demonstrated that the Dubai banking sector can still spring some nasty surprises.
That said the central bank has been vigorous and comprehensive in its demands for write-offs by the UAE banks in the wake of the global financial crisis, and stands squarely behind them, with a full state guarantee of all deposits, for example.
However, it always makes good sense after a credit crunch for banks to be consolidated and recapitalized. It is a part of the healing process for bank balance sheets. Overheads can also be rationalized to cut costs.
In truth, this is an important part of the business cycle and recovery from a recession, even if it can involve some pain for the banks concerned and their staff. Shareholders too may have to take short term pain for long term gain.
Private equity giant KKR & Co LP has received a license from Saudi market regulator Capital Markets Authority (CMA) to conduct business in the oil-rich country, a bourse filing showed.
"The CMA Board of Commissioners issued a resolution today...authorizing KKR Saudi Limited Company to conduct arranging," a statement from the regulator on Sunday said.
The statement did not provide any more details.
Last week, Kuwaiti newspaper al-Seyassah citied a source saying that ABC had agreed to write off 90 percent of the $120 million in debts owed to it by ILIC.
"ABC acts as agent for a syndicate of banks that provided loans to ILIC totalling $120 million. The exposure of ABC to ILIC is only a small proportion of this amount. No agreement has been reached with ILIC to write off any of the debt," said the bank in a statement to the bourse.
Arab bankers painted a sobering picture of the economic results of political upheaval in their region at a conference in Rome, saying tourism has plunged and capital flight is on the rise.
Capital flight is running into the hundreds of millions of dollars (euros) per week and budget stability is under pressure as governments are forced to increase subsidies and salaries to keep social stability, they said.
But participants at the International Arab Banking Summit held this past week said they were hopeful in the long-term as long as the regions leaders move quickly to enact economic reforms that will help small businesses, boost trade and create jobs.
HSBC Holdings Plc , Europe's biggest bank, will merge its Saudi Arabian wholesale and investment banking business with Saudi British Bank's SABB Securities, it said on Monday.
SABB would own 51 percent of the new entitity, to be known as HSBCSaudi Arabia, but HSBC would retain full management control, HSBC said in a statement posted on the Hong Kong stock exchange.
The merger was subject to regulatory approval and was expected to complete by the end of this year, HSBC added.