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Wednesday, 29 June 2011

UAE, Qatar likely to emerge bullish - The National

Nadi Bargouti, the head of asset management at Shuaa Capital for almost two years after a stint with Samba Capital in Saudi Arabia, ran the Mena region's best-performing fund last year.

The UAE and Qatar have just had their upgrade to emerging markets status delayed by MSCI. Why the delay, in your view? Do you think they will make the upgrade in six months' time?

The delay, in our view, was due to the need to allow sufficient time for investors to assess Qatar's and the UAE's recent market enhancements and to the foreign ownership limit (FOL) issue in Qatar to be resolved.

Failure of Etisalat's $12bn Zain bid hits forecasts: Plugged in

Nomura has lowered its price targets for regional telecoms firms Etisalat and Zain, following the breakdown in the UAE company's $12 billion bid for the Kuwaiti operator.

The firm reduced its share-price target for Etisalat to Dh12.1 from Dh13.6. "[The] failure to cement Zain bid, increasing domestic pressures domestically and problems in India all weigh on [the] investment case," it said.

It also reduced its price target for Zain to 1.04 Kuwaiti dinars from 1.22. It attributed this to a special dividend paid by the company, adding that the business is "self sustaining but [its] strategic direction [is] unclear."

Opec split threatens increase in Saudi oil production - Telegraph

The International Energy Agency's (IEA) attempts to bring down the oil price have sparked a war of words with Opec, the 12-country cartel that produces 40pc of the world's crude ouput.

Opec is also divided between groups of members such as Saudi Arabia and Kuwait which would be happy with lower prices, and others such as Iran and Venezuela, which do not want to raise production and dampen prices.

Yesterday, Brent crude increased by $2.20 (£1.38) to $108.19, amid concerns about tensions in the oil market and a falling dollar.

Dubai bourse catches cold from chill in world markets - The National

Dubai's market dipped yesterday to its lowest point in more than three months as investors tracked uncertainty over the global economic recovery.

Global markets have remained on edge ahead of votes in the Greek parliament this week on additional austerity measures to resolve the country's debt crisis.

The Dubai Financial Market General Index fell 1.2 per cent to 1,507.61 points, its lowest since March 21, as fund managers and traders sold bellwether stocks.

Abu Dhabi bonds sale delayed over Greek crisis - The National

Dolphin Energy has delayed plans to sell bonds because of market volatility caused by the debt crisis in Greece.

The Abu Dhabi energy producer was expected to announce the pricing after hiring banks to hold investor meetings last week.

But the firm has decided to wait until after the resolution of Greece's latest austerity measures, when pricing is expected to improve, according to a person familiar with the matter. - Harsh blow to Jordanian economy

The political turmoil sweeping the Arab world has dealt a harsh blow to the Jordanian economy, deepening the kingdom’s budget crisis and forcing the country to rely increas-ingly on financial support from the US and the Gulf.

Jordan’s resource-starved economy has been under pressure since the start of the year, pounded by the twin forces of regional instability and the sharp rise in commodity prices. The government hopes to limit this year’s budget deficit to 5.5 per cent of GDP, but warns that it will need more foreign aid to reach that target.

“Today, with the Arab spring, we in Jordan do have a crisis, but it is an economic crisis not a political crisis,” said Jafar Hassan, minister for planning and international co-operation. Jordan, he added, was in talks with G8 countries as well as Arab states to provide further grants to cover the funding gaps.

Turkey: How Long Before the Boom Turns to Bust? |

Amid global worries over a Greek default, growing investor skittishness about emerging markets is a worrisome development for Turkey.

A comparative star in the sluggish global financial scene, Turkey in 2010 posted a Gross Domestic Product growth rate of 8.9 percent; growth this year is estimated at 5.5 percent, according to a recent expectations survey carried out by the Central Bank. By comparison, the European Union faces a projected 2011 growth rate of 1.8 percent.

Despite the sheen of economic health generated by the growth projections, Turkey is grappling with substantial economic challenges, especially unemployment. According to Turkstat, Turkey’s government statistics agency, unemployment decreased to 10.8 percent in March, down 2.9 percent from the same period in 2010. A recent report from the left-leaning Confederation of Progressive Trade Unions, however, argues that the real unemployment rate is much higher, 17.68 percent.