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Tuesday, 13 September 2011

Abu Dhabi Investment Authority in private equity push

The Abu Dhabi Investment Authority, among the world’s largest sovereign wealth funds, is ramping up its private equity activities after a relatively subdued period over the past two years, sources familiar with the fund’s plans said.

Staffing within ADIA’s private equity department will likely more than double from its current complement of around two dozen, sources said, although no specific allocation targets have been set.

“There are significant plans to increase private equity staffing, several industry executives have been approached in the last month,” said one source who was approached.

Nakheel running a tighter ship - The National

Nakheel has revamped its corporate governance and business practices after reporting a Dh76.6 billion (US$20.85bn) loss in 2009, according to a bond prospectus sent to investors.

While not specifically mentioning past problems, the company's filing acknowledges a wide range of issues addressed by management, offering an unusual glimpse at the inner workings of the developer behind some of Dubai's biggest projects, including Palm Jumeirah and The World.

The changes include limiting the ability of executives to make financial commitments of more than Dh10 million without the approval of the board of directors and a new public tender process for awarding construction contracts. Nakheel executives could not be reached for comment on details of the report.

Market for Nakheel's sukuk hit by uncertainty - The National

Deep concern about the health of Nakheel's business has slowed the development of a market for the Dubai property giant's Islamic bonds, traders say.

Nakheel issued a first tranche of the Islamic bonds, or sukuk, to unpaid contractors last month. They are a key part of the company's restructuring.

In a prospectus attached to the sukuk, Nakheel revealed that it wrote down the value of its property and project portfolio by almost Dh74 billion (US$20.14bn) in 2009 as its fortunes flagged. The company also said it changed tactics in response to the financial crisis, forging ahead with a selection of its projects and putting others on hold.

Abu Dhabi fund improves rate of return -

The Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, last year sharply improved its annualised rate of return measured over a 20-year period.

Adia said in its an annual review published on Tuesday that annualised rates of return increased to 7.6 per cent on the back of global economic growth, compared with 6.5 per cent in 2009, the first year the fund reported 20-year annualised rates of return.

Annualised rates of return over the 30-year period were little changed at 8.1 per cent in 2010 compared with 8.0 per cent the year earlier, the fund said.

MENA stock markets close - September 13, 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)

IEA Cuts Worldwide Oil Demand Forecasts for 2011, 2012 as Recovery Falters - Bloomberg

The International Energy Agency cut global oil demand forecasts for this year and next as the economic recovery falters.

The Paris-based adviser reduced its estimate for 2012 consumption by 400,000 barrels a day, and for 2011 by 200,000 a day. Worldwide demand will rise by 1.2 percent to 89.3 million barrels a day this year and by 1.6 percent to 90.7 million next year. The full resumption of Libyan exports following the ouster of Muammar Qaddafi will be “long and difficult,” it said.

“Global oil demand continues to expand at only a tepid pace,” the IEA said today in its monthly Oil Market Report. “There are certainly growing concerns about the health of the global economy.”

WAM | DFSA and NASDAQ Dubai announce Transfer of the Official List of Securities

The Dubai Financial Services Authority ("DFSA") and NASDAQ Dubai today announce that with effect from 1 October 2011 the responsibility for maintaining the Official List of Securities will be transferred from NASDAQ Dubai to the DFSA (the "Transfer").

The Transfer will result in the streamlining of the regulatory process for approving prospectuses and listing, for the benefit of issuers and investors. It is also in line with international best practice.

NASDAQ Dubai will continue to be exclusively responsible for the admittance to trading of securities on its market and its role as an Authorised Market Institution licensed to operate an exchange and clearing house remains unchanged.

Saudi Shares Advance on Bets Drop Overdone Given Earnings, Oil - Bloomberg

Saudi shares rose the most in almost a week on bets a drop prompted by investor concern over the European debt crisis is overdone given prospects for earnings growth and as crude oil gained for a second day.

Saudi Basic Industries Corp. (SABIC), the world’s biggest chemicals maker, advanced as much as 1.6 percent. Al Rajhi Bank (RJHI) increased for a second day this week. The Tadawul All Share Index (SASEIDX) rose 0.4 percent, the most since Sept. 7, to 6,062.61 at 2:38 p.m. in Riyadh, trimming a drop in the past month to 1.5 percent. The market has slumped 7.8 so far this quarter on investor worries that global economic growth may slow.

“Debt issues in Europe are not reflective of the fundamentals of the Saudi market although investors are reacting to events there; it’s purely sentiment,” said Asim Bukhtiar, a Riyadh-based equity analyst at Riyad Capital. “If you look at the fundamentals, structurally the market is still sound; earnings in the first half of 2011 were decent and we expect the second half to be even better.”

Nakheel still 7.6bn in debt after $20bn in write-offs « ArabianMoney

Dubai property developer Nakheel still owes $7.6 billion after its huge refinancing that included $21 billion in write-offs against profits in 2009, according to the prospectus issued for its Islamic bond for trade creditors.

The write-offs largely accounted for a $21 billion loss in 2009. Nakheel’s assets are now carried on its books at $21.8 billion compared with $42.5 billion, in line with the fall in Dubai property values since the crash three years ago.

UAE bolstered by Dubai’s growth, high oil price - Emirates 24/7

Resurging sectoral performance in Dubai along with massive public spending and higher oil prices and production will trigger growth in the UAE this year and enable it to withstand the present global turmoil, a key Saudi bank says.

The Saudi American Bank Group (Samba) said it believes the UAE’s economy, the largest in the Arab World after Saudi Arabia, remains structurally strong despite a slowdown in non-oil economic activity in the second quarter as a result of debt problems in the United States and the European Union.

“The structural strength of the UAE economy as a whole should allow it to weather the storms currently buffeting global markets as well as continuing concerns over political unrest in the broader Middle East and North Africa,” SAMBA said in its latest monthly bulletin.

ADIA 2010 Review - Prudent Global Growth (PDF)

Abu Dhabi wealth fund wary on global growth | Reuters

Rising government debt levels and inflationary pressures in emerging economies will cast a shadow on global economic growth, sovereign wealth fund Abu Dhabi Investment Authority (ADIA) said in its 2010 annual review.

The fund, whose assets range from Citigroup bonds to a stake in London's Gatwick Airport, expects economic growth to remain "hesitant" in the near-term but said it was confident equity returns will revert back to historical levels of 6-8 percent in a post-recovery phase.

"Looking forward, we anticipate global economic growth to remain hesitant in the near term as governments in major developed markets begin the sensitive task of cutting potentially burdensome debt levels without undermining growth," ADIA said in the report.

gulfnews : Opec slashes oil demand forecast

Opec sharply revised down its forecast for world oil demand for this year and expected consumption would remain weak in 2012, citing yesterday waning economic growth in key industrialised nations and a weak US driving season.

The 12-nation group that supplies about a third of the world's crude oil slashed its global oil demand forecast by 150,000 barrels per day for 2011 and by 40,000 barrels per day for 2012, saying "turbulence in world economic recovery has resulted in considerable uncertainty for demand growth next year."

It also lowered its estimate for crude produced by Opec nations by about 100,000 barrels per day in 2011.

Bickering in Iraq over oil revenue hurts country - The National

A long-running oil dispute between two centres of power in Iraq has reignited.

Exports from Iraqi Kurdistan, the semi-autonomous region in the country's north, have slowed from 160,000 to 50,000 barrels per day (bpd) over the past two weeks.

The Kurdish regional government said in a statement that the drop stemmed from difficulties with export infrastructure, while Abdul-Kareem Luaibi, the oil minister in Baghdad, said the decline would hurt the economy in Kurdistan and the rest of Iraq.

'No appetite to save the euro zone' - The National

Greece now has the world's lowest sovereign debt credit rating.

Hardly surprising then that Tim Fox, the chief economist at Emirates NBD, has warned that the likelihood of the debt-laden euro-zone nation defaulting is "quite high".

"At the end of the summer it looked like Greece had been saved," he says. "But the situation has got worse. It is no longer a question of an orderly default. It might get very messy. Nobody seems to have the appetite or the ambition to save the euro zone."

Gulf Times – Qatar seals its place in global LPG top league

Qatar’s liquefied petroleum gas (LPG) output will reach 11mn tonnes per year by 2012, making it one of the largest global exporters, Tasweeq CEO Saad al-Kuwari has said.

“The more we produce liquefied natural gas (LNG), the more LPG we get,” al-Kuwari told Gulf Times yesterday.

Asked whether Qatar’s LPG output would increase given that the country had achieved its targeted liquefied natural gas production capacity (of 77mn tpy), al-Kuwari said: “Maybe there will be a slight increase with local projects such as Barzan and AKG2 getting commissioned. But I can’t say how much more LPG we will produce with the start-up of the two local projects.”