|TASI (Saudi Stock Market)||6039.32||0.51%|
|DFM (Dubai Financial Market)||1460.96||1.15%|
|ADX (Abudhabi Securities Exchange)||2602.5||0.96%|
|KSE (Kuwait Stock Exchange)||5900.8||0.32%|
|BSE (Bahrain Stock Exchange)||1272.29||0.55%|
|MSM (Muscat Securities Market)||5471.18||-0.62%|
|QE (Qatar Exchange)||8127.54||0.70%|
|LSE (Beirut Stock Exchange)||1306.24||-0.34%|
|EGX 30 (Egypt Exchange)||4661.66||4.10%|
|ASE (Amman Stock Exchange)||2023.37||0.40%|
|TUNINDEX (Tunisia Stock Exchange)||4395.77||1.41%|
|CB (Casablanca Stock Exchange)||10908.5||1.15%|
|PSE (Palestine Securities Exchange)||489.92||-0.08%
Wednesday, 10 August 2011
The five-year loan has conventional and Islamic portions and pays a margin of 350 basis points, or 3.5 percentage points, over benchmark rates, one of the bankers said. The payment rises to about 375 basis points after including fees, he said. The loans are backed by shares of DP World, the world’s fourth- biggest port operator, the bankers said.
HSBC Holdings Plc (HSBA), Standard Chartered Plc (STAN), Deutsche Bank AG (DBK) and Citigroup Inc. (C) are managing the conventional loan, two of the three bankers said. Dubai Islamic Bank PJSC, the United Arab Emirates’ biggest bank complying with Shariah-compliant banking rules, is managing the Islamic portion, they said.
The cost of insuring Qatar against default rose only 8.5 basis points in the week to Tuesday while Abu Dhabi rose 9.6 basis points. This is compared to Markit’s CEEMEA sovereign index, which covers a wider emerging markets universe and that rose 45.6 basis points, according to data displayed on Bloomberg. Dubai’s CDS rose 49.6 basis points.
Qatar, the world’s fastest growing economy, is rated AA by Standard & Poor’s, one notch below the US, while Abu Dhabi, holder of 7 per cent of the world’s proved oil reserves, is also rated AA. S&P downgraded the US one notch to AA+ last Friday, sending global equity markets tumbling.
The cuts, which brought the main overnight deposit rate to 0.75 percent from 1 percent, followed an April policy measure aimed at stimulating banking activities and boosting lending to the private sector.
The overnight lending facility and the repo rate were both cut to 4.5 percent from 5 percent previously, the central bank website showed on Wednesday. (www.qcb.gov.qa)
'We already have full lender support to extend this loan until December 2016 and are currently in the documentation process', a Dubai Holding spokeswoman said in an email to Reuters.
The loan includes an $840 million conventional tranche and a $300m sharia-compliant tranche and was originally due to mature next week, Thomson Reuters data showed.
However, on the other side of the Arab world, one Dubai-based entrepreneur discerns opportunity and hope in the unrest that is gripping the region.
“We are contrarians in a lot of ways. For us there is great opportunity in the fact that social media is increasingly being used by our youth,” says Rabea Ataya, chairman and chief executive of Bayt.com, a job-hunting website."
Ali Rashid Lootah also said Deutsche Bank would manage the process, which will take place over two to three months in the remarks to Arabic language daily al-Khaleej.
The developer, which ran a parallel $10.9 billion restructuring process to parent Dubai World, has offered trade creditors repayment of 40 percent cash and the remaining 60 percent in the form of an Islamic bond, or sukuk.
Daily supply from the 11 Organization of Petroleum Exporting Countries members bound by quotas rose to 27.37 million barrels a day in July from 27.22 million in June, the Paris-based IEA said today in its monthly oil market report.
“Output has regained levels close to those seen before the Libyan crisis, although OPEC spare capacity now stands at only 3.3 million barrels per day,” the IEA said. Production by the 12-member group is still below what the market demands, even as Saudi Arabia ramps up output to the highest level since 1981.
Aggressive development drilling this year at the company’s Cheleken block in the Caspian Sea spurred a 25% boost in oil output to 58,000 barrels per day compared with the same period last year.
MDM Bank, Russia's second largest private lender, is holding talks with some Asian and Arabic sovereign investment funds, including Abu Dhabi Investment Authority and Investment Corporation of Dubai.
MDM, whose shareholders include businessman Sergey Popov with a 56.3 percent stake and Igor Kim with 11 percent, may offer up to a blocking stake of 25 percent to the potential investor, according to Kommersant.
The bank merged with URSA merged with Siberian-based Ursa in December 2008.
TAQA, which on Tuesday said its Dutch Bergermeer field will not be ready for use as planned in 2014, posted a net profit of 435 million dirhams ($ 118.5 million) in the three months to June 30, compared with a net profit of 171 million dirhams in the same period last year.
Analysts forecast an average net profit of 249 million dirhams, according to a Reuters poll.
The debt crises in Europe and the US — which led to Standard & Poor's downgrading the credit rating of the world's largest economy — cannot be resolved by increasingly expensive sovereign bailouts. The only real answer is for the debt of those countries to be restructured in an orderly manner — with financial institutions and other creditors taking the pain associated with the irresponsible loans they made during the boom years.
While the restructuring may result in losses for some institutions, an orderly default will avoid the wholesale destabilisation of the international financial system. And, while the outcome may be further economic slowdown and even another recession in some cases — not things easily contemplated — countries are more likely than not going to emerge on the other side with cleaner and stronger financial and economic systems.
Politicians, who are too scared and irresponsible to take the necessary hard decisions, must realise that they cannot buy their way out of this economic and financial crises.
The faltering economies of the US and Europe have also changed the geopolitical rules, dimming the prospect for western military intervention in global trouble spots and hastening the end of existing expeditionary deployments in Iraq, Afghanistan and Libya.
The scale and social consequences of the emerging crisis became visible this week as share prices plunged, while the streets of one of the world's great financial capitals burnt. Sure, the events in London were triggered by police shooting a young black man, but the scale of the outrage - and its character, in the form of leaderless mobs of looters with no political demands - reflected the alienation of a whole generation of inner city youth, who have no stake in the system and nothing to lose by breaking its rules. (The rioters also showed the power of mobile phones and social networking in the hands of a self-conscious insurrection.)
Historically, the UAE and most Gulf economies have anchored their domestic currencies to the US dollar. But new uncertainties surrounding the dollar lead many to ask if the UAE should either a) repeg the dirham to a basket of world currencies or b) float the dirham and pursue other monetary objectives.
Let's consider the alternatives.
A Dutch council this week ordered Taqa to halt the €800 million (Dh4.18 billion) project after environmentalists and residents voiced concerns the plan to pump gas into a former natural gas chamber north of Amsterdam could destabilise an area that has felt earth tremors in recent years.
Taqa's shares on the Abu Dhabi Securities Exchange General Index slipped more than 3 per cent yesterday to close at Dh1.17 after reports of the suspension emerged.
Yields on US Treasury bonds recovered during trading yesterday after tumbling to near record lows in recent days. But recent low yields mean holders receive smaller returns on their investment.
Continuing deadlock in resolving the country's budget deficit problems could have a further impact on bonds, say economists.
The group is split between price hawks and doves, but the recent 20 per cent drop in prices and a weaker demand outlook have already prompted some countries to express concern.
Yesterday, Opec lowered its estimate for crude oil consumption by 150,000 barrels per day (bpd) as Brent crude, the European benchmark, dipped below US$100 for the first time in eight months.
Futures gained for the first time in three days after the Fed said in a statement yesterday it will keep interest rates near zero until mid-2013 and use other tools “as appropriate.” Crude inventories fell the most since June, according to the industry-funded American Petroleum Institute. An Energy Department report today may show stockpiles rose a third week.
“The Fed’s announcement to keep the interest rate low reversed the appetite for risk asset classes,” said Serene Lim, a commodity strategist at Australia & New Zealand Banking Group Ltd. in Singapore, who predicts crude in New York will average $100 a barrel in the third quarter. “The other key factor is the surprise drop in U.S. crude inventories. That’s boosted some of the oil sentiment.”
Another factor contributing to the volatility is mounting concern about the spread of the debt problems in the euro zone. Specifically, Italy and Spain were forced to pay much higher rates to borrow through financial markets owing to weak economic growth, continuing budgetary stresses and political uncertainty. The Jadwa report said new framework established by EU institutions to deal with the debt problems in Greece, Ireland and Portugal in late-July would be overwhelmed if it were extended to cover Italy and Spain given the far greater size of these countries' debts (total financing needs for Italy and Spain over the final five months of 2011 are around 245 billion euros ($350 billion), greater than the value of Greek debt maturing over the next six years before it was restructured).