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Thursday, 4 August 2011

Sukuk market 'will need three years to turn'

Noor Islamic Bank does not expect the Islamic bond market to turn around for another three years, given the financial and political uncertainty in the region, its chief executive said.

'What you see in the sukuk market right now is not growing but I think it is shrinking a little bit in comparison to years before,' Hussain Al Qemzi told Reuters in an interview. 'I see three years before we see an upward trend in sukuk. We will see a stronger comeback afterwards.'

Issuance of Islamic bonds, or sukuk, all but dried up as the global financial crisis and then regional political upheaval sapped interest in the market.

MENA stock markets close - August 4, 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)

Qatar central bank plans to sell US$1 billion T-bills -

Qatar plans to sell 4 billion riyals of treasury bills August 8 as part of a plan to build a yield curve and control liquidity, the central bank governor said.

The T-bills will mature in three months, Abdullah bin Saud Al-Thani told Bloomberg in a telephone interview today. The securities will be split equally between Islamic and non-Islamic, he said.

Qatar has issued 10 billion riyals of T-bills of different maturities on a monthly basis this year, the governor said.

Abu Dhabi's Aldar returns to profit on sale of completed units, land -

Aldar Properties PJSC, Abu Dhabi's leading property development investment and management company, today announced financial results for the six month period ended 30th June 2011, showing a continued growth in recurring revenues and ongoing progress on development projects.

 Net Profit for H1 2011 of AED 316.4m (H1 2010: Net loss of AED 789.5m)
 Net Profit for Q2 2011 of AED 127.3m (Q2 2010: Net loss of AED 475.3m)
 Revenue for the period of AED 1,560.4m (H1 2010: AED 427.0m)
 Recognition of revenue from sale of completed units at Al Gurm, Al Bandar and Al Raha Gardens
 Continued increase in recurring revenue from investment portfolio and operational businesses to AED 728.3m (H1 2010: AED 354.6m)
 Net assets up 9.5 per cent from 31 December 2010
 Handover of first phase of Al Zeina residential development at Al Raha Beach began
 Continued delivery across portfolio – IKEA Yas Island, Al Raha Gardens Plaza (community retail), Sheikha Salama Mosque, Motor World phase 1.

Abu Dhabi Stocks Rise Most Since June on Bank Earnings, U.S.

United Arab Emirates shares rose, sending Abu Dhabi's index up the most since June, as earnings at the country's banks improved.

National Bank of Abu Dhabi PJSC, which last month posted second-quarter profit that beat expectations, jumped the most since June after it had its price estimate raised 9 percent at Goldman Sachs Group Inc. First Gulf Bank PJSC gained 0.6 percent. Abu Dhabi's ADX General Index advanced 0.8 percent, the most since June 15, to 2,670.79 at the 2 p.m. close in the emirate. The measure increased 1.6 percent this week. The DFM General Index climbed 0.9 percent.

'So far there are solid results from banks,' said Fadi Al Said, a Dubai-based senior investment manager at ING Investment Management, which oversees about $518 billion worldwide. 'In the second half of Ramadan, things might get busier.'

Middle East Oil Gains After Saudi Raises Extra Light Crude Price - Bloomberg

Middle East crude oil for sale to Asia climbed against its benchmark as Saudi Arabia raised the price of its light oil, increasing demand for alternative grades.

Murban, produced by Abu Dhabi National Oil Co., for loading in October rose 9 cents to a premium of 1 cent a barrel to its official selling price, according to data compiled by Bloomberg News. Qatar Land increased 9 cents to a discount of 18 cents a barrel, Bloomberg data showed.

Saudi Arabian Oil Co., the world’s biggest crude exporter, raised the price of its Extra Light grade for September by 10 cents to a premium of $3.05 a barrel to the average of benchmarks Oman and Dubai. The company cut its Light, Medium and Heavy types.

Abu Dhabi Islamic Bank gets approval to operate in Qatar | Reuters

Abu Dhabi Islamic Bank has received approval from the Qatar regulator to open an Islamic branch in the wealthy Gulf Arab state, six months after a central bank verdict asked conventional lenders to stop operating Islamic branches in the country.

'We have received authorisation from the government,' a spokeswoman for ADIB said on Thursday, adding that Qatar is a market of interest for the Islamic lender.

The Qatar Financial Centre Regulatory Authority (QFCRA) said in a statement that the authorisation will allow the bank to carry on regulated activities in relation to deposit taking, providing and arranging financing facilities and managing investments.

Libyan war presents opportunity for Iraqi oil sector - The National

The conflict in Libya that has blocked ports and pipelines could be a boon for Iraq.

As the civil war in the North African nation approaches the six-month mark, Iraq is enjoying increased security and is pursuing a target to pump as much oil a day as Saudi Arabia.

'There will be people who were tied up on projects in Libya who will be looking for another place to invest,' says Erin Miller Rankin, a construction and project lawyer in Dubai at Freshfields Bruckhaus Deringer. 'Iraq is going to boom.'

Dubai Risk Drops to Two-Month Low on Rebound Bets: Arab Credit

Dubai's credit risk dropped to the lowest in almost two months as bond repayments and profitability at companies boost confidence in the emirate's economic rebound.

The cost to insure Dubai's debt against default dropped to 317 basis points Aug. 1, the lowest since June 7, according to credit default swap prices from data provider CMA. They were at 325 basis points yesterday, still down more than 50 percent from the 655 reached in November 2009 after state-owned Dubai World announced plans to restructure about $25 billion in debt.

The emirate, which received $20 billion in aid from Abu Dhabi in 2009, has benefited from stable government in contrast to the political upheaval sweeping the Middle East. Economic growth in Dubai may accelerate to about 2.8 percent, the International Monetary Fund forecasts in a report published in May. That comes after growth of 2.4 percent in 2010 and a contraction in 2009, according to government statistics.