Wednesday, 21 September 2011
With forecasts that the dollar will become weaker still, many in the Middle East argue that the time has come to adjust the dollar pegs or do away with them altogether.
Five of the six members of the Gulf Co-operation Council – Saudi Arabia, the United Arab Emirates, Qatar, Oman and Bahrain – maintain currency pegs to the greenback. Only Kuwait pegs its dinar to a basket of currencies but that basket is believed to be heavily weighted towards the dollar.
|TASI (Saudi Stock Market)||6142.26||-0.03%|
|DFM (Dubai Financial Market)||1472.65||0.45%|
|ADX (Abudhabi Securities Exchange)||2557.99||0.04%|
|KSE (Kuwait Stock Exchange)||5955.9||-0.35%|
|BSE (Bahrain Stock Exchange)||1256.56||0.00%|
|MSM (Muscat Securities Market)||5741.74||0.09%|
|QE (Qatar Exchange)||8497.4||0.62%|
|LSE (Beirut Stock Exchange)||1244.33||0.10%|
|EGX 30 (Egypt Exchange)||4433.19||-0.68%|
|ASE (Amman Stock Exchange)||2034.85||0.48%|
|TUNINDEX (Tunisia Stock Exchange)||4616.09||0.52%|
|CB (Casablanca Stock Exchange)||11456.6||-0.20%|
|PSE (Palestine Securities Exchange)||481.02||0.10%|
Aldar Properties PJSC (ALDAR), Abu Dhabi’s biggest real-estate company, jumped 2.5 percent. Abu Dhabi Islamic Bank (ADIB) rose the most in two weeks. The ADX General Index (ADSMI) increased less than 0.1 percent, rising for the first time since Sept. 6, to 2,557.99 at the 2 p.m. close in the emirate. The index is down 5 percent in the past two months. Dubai’s DFM General Index (DFMGI) rose 0.5 percent today, trimming losses in the period to 3.3 percent.
“The correction we saw in global markets already provides attractive valuations for many stocks,” said Ahmed Talhaoui, head of asset management at Abu Dhabi-based Royal Capital PJSC. “In order to attract investors to the Middle East and North Africa region, we need more time.”
In a report this week, Ernst and Young said M&A deal volumes rose 36 per cent in the first half of 2011 year on year while values were up 8 per cent. Saudi Arabia and the United Arab Emirates were the most active markets.
A survey last month by Zawya, a data provider, found that M&A deals in the Middle East and North Africa increased 33 per cent in the first half compared with the same period last year. The total value of such deals in the first half rose 30 per cent to $21.2bn from $16.3bn in the first six months of last year.
"DP World Limited has been advised that Port & Free Zone World FZE has refinanced its outstanding $850m debt facility secured in part against certain of its shares in DP World," the statement said.
Sources told Reuters on Tuesday that the five-year loan had been signed by 15 banks and was almost evenly split between conventional and sharia-compliant tranches.
Global Investment House KSCC (GLOBAL) dropped 6 percent, the most in a month, to 39.5 fils. National Bank of Umm Al Qaiwain (NBQ) said a Dubai court will look into its appeal in a dispute with the Kuwait-based investment bank. National Bank shares didn’t trade today.
Masraf Al Rayan (MARK) rallied to the highest in more than five years, gaining 0.9 percent to 24.98 riyals. Qatar’s second-largest Shariah-compliant lender had the outlook on its A3 long-term issuer rating changed to positive from stable at Moody’s Investors Service.
ICBC aims to rival HSBC and Stanchart in the Middle East but China has its own problems « ArabianMoney
Normally any bank tilting its lance at HSBC and Standard Chartered Bank in the Middle East could be dismissed with a knowing smile. But not when that bank is one of the largest in the world with $1.9 trillion in assets and the booming Chinese economy behind it.
Step forward the Industrial and Commercial Bank of Bank which first established itself in the region in the midst of the global financial crisis of 2008. The state-owned bank has branches in Abu Dhabi and Doha and a subsidiary in Dubai and is applying for a license to develop a retail network in the UAE.
And what is Pegas’s maiden foreign adventure is also – wait for it again – Egypt’s first foreign direct investment since the January revolution.
The initial investment of €55m-60m is linked to a key business deal – a long-term sale agreement with a local customer who will buy what the new plant produces.
The Islamic bond, or sukuk, is part of Nakheel's $16 billion debt restructuring deal which repays trade creditors 40 percent in cash and 60 percent via the bond.
The two assets that back the sukuk are a strip of waterfront land and a still partially submerged crescent that will form part of a man-made island shaped like a palm at Jebel Ali, on Dubai's outskirts.
The listed companies reported a net profit of 8.9 billion riyals in the second quarter of 2011 compared to 7.3 billion riyals in the same period last year, an increase of 21.6 per cent. However, on a quarter on quarter basis, net profit of Qatari stocks declined marginally by 1 per cent in the second quarter of 2011, compared to the first quarter.
During the previous periods, several Qatari companies reported exceptional non-recurring income, couple of mergers forming bigger entities, as well as the delisting of three companies.
But they can take comfort from the fact that the Fund was far less gloomy about the region than other corners of the world economy – and generally more positive about growth than other forecasters.
The fund highlighted the impact of political unrest on the region – and the dangers inherent in the oil-rich Gulf states’ policies of boosting public spending to get out of political trouble.
But the most critical part of the nation's rebuilding effort for now is reviving oil production, said the head of Opec, who is also a former Libyan oil minister.
"Concentrate on your first priority," Abdalla El Badri, the Opec secretary general, said yesterday in Dubai, stipulating that he was offering an opinion rather than advice.