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Monday, 27 June 2011

WAM | DFM accredits Arab German International Broker for Margin Trading

Dubai Financial Market (DFM) today announced that Arab German International Broker (AGIB) has been accredited to carry out margin trading.

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.

MENA stock markets close - June 27, 2011

ExchangeStatus IndexChange
TASI (Saudi Stock Market)
6507.21-0.07%
DFM (Dubai Financial Market)
1525.610.29%
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)
8249.620.51%
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)
4300.080.06%
CB (Casablanca Stock Exchange)
11624.20.20%
PSE (Palestine Securities Exchange)
495.69-0.42%

Why did Egypt reject IMF/WB loans? - Blog - The Arabist

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?

Reuters reported:

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.

Dubai Shares Advance on Speculation Losses Related to MSCI Delay Overdone - Bloomberg

Dubai’s benchmark stock index rose, snapping a three-day drop, on speculation declines prompted by MSCI Inc. delaying a decision to promote the United Arab Emirates to emerging-market status were overdone.

Emaar Properties PJSC (EMAAR), developer of the world’s tallest skyscraper, advanced the most in almost a week and Arabtec Holding Co. (ARTC), the U.A.E.’s biggest construction company by market value, jumped 2.4 percent. The DFM General Index (DFMGI) gained 0.3 percent, the most since June 21, to 1,525.61 at the 2 p.m. close in Dubai. Excluding today, the measure lost 2.5 percent this month. TheBloomberg GCC 200 Index (BGCC200) of the region’s stocks fell less than 0.1 percent at 1:26 p.m. in Riyadh.

“After MSCI’s announcement, Dubai was hit hard and this is a technical rebound,” said Samer Darwiche, a financial analyst at Gulfmena Investments in Dubai. “Second-quarter results might be a short-term catalyst, but then there’s Ramadan.”

Dubai house prices rebound in 2011: Knight Frank - Emirates 24/7

House prices in Dubai have turned a corner and are up a little over 2 per cent in six months, according to the results of a latest global house price survey.
The quarterly survey conducted by global property consultancy Knight Frank shows that house prices in Dubai inched up 0.6 per cent in the first quarter of 2011, and prices are up 2.1 per cent in the six months ended March 31, 2011.
This is in sharp contrast to the falling numbers in the previous editions of the Knight Frank Global House Price Index, which was started in 2006 for investors and developers to monitor and compare the performance of mainstream residential markets across the world.

Sheikh Ahmed’s arrival may herald a consolidation of the Dubai banks « ArabianMoney

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.

Sheikh Ahmed

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.

Banking provisions

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.

KKR gets license to operate in Saudi Arabia | Reuters

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.

Abu Dhabi’s Royal Capital Builds “Cash Cushion” to Buy Bonds: Arab Credit - Bloomberg

Royal Capital Management Ltd., the best-performing major fixed-income fund in the Persian Gulf region, is building up “a cash cushion” to invest in upcoming bond issues.

“The pipeline is strong which will put some pressure on the bond market so we prefer to have some cash and profit from any opportunity,”said Ahmed Talhaoui, head of asset management at Abu Dhabi-based Royal Capital.

Bond issues from the Middle East and North Africa may beat last year’s $40 billion as borrowing requirements rise, according to Salman Al Khalifa, Deutsche Bank AG (DBK)’s regional head of markets. Dolphin Energy Ltd., the Abu Dhabi government- controlled venture transporting natural gas, hired banks to arrange investor meetings for a potential sale and Majid Al Futtaim Holding LLC, a shopping mall owner, is holding talks with investors for a planned sale.

Bahrain's ABC says no debt deal with Kuwait's ILIC - Maktoob News

Bahrain-based Arab Banking Corporation (ABC) said on Sunday that it did not reach an agreement with Kuwait's International Leasing and Investment Company (ILIC) to write off debt.

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.

Launch of Sharia facility in UAE set to boost Islamic investment - The National

Islamic banks are likely to boost their Dh15 billion (US$4bn) of investments in Central Bank certificates of deposit after the launch of a new Sharia-compliant repurchase facility, said a senior bank official.

The facility, which is aimed at developing liquidity management in the Islamic banking system, allows banks to borrow money in accordance with Sharia principles.

In exchange, the facility accepts the Central Bank's Islamic certificates of deposit as collateral.


Bankers see economic fallout from Arab Spring | A1SaudiArabia.com

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 Saudi Arabia to merge with SABB Securities | Reuters

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.