Thursday, 29 September 2011
Brian Jeffrey, senior vice president of corporate treasury, told Arabic language daily al-Bayan, that the airline was considering the new bonds to finance aircraft purchases, given funding challenges faced by European banks.
Emirates, which issued a $1 billion bond in June, said diversifying funding options is always on the table.
"The new Qatar is Australia because final investment decisions (FIDs) have already been taken," Broggi said, referring to the five sanctioned projects and several more that are expected to reach FID in 2011-2012.
A moratorium on expansion in Qatar until 2015 is further expected to boost Australia's chances of taking the top spot.
The 16-year loans will pay an interest of between 100 basis points to 150 basis points over benchmark rates besides fees, said the bankers, who declined to be identified because the information is private. Qatar Petroleum sent out request for proposals for the loan to about 50 local and foreign banks and may complete signing documents over the next four to six weeks, the bankers said. One basis point is one hundredth of a percent.
The loans will be followed by a bond offering, with a total fund-raising of $5 billion planned, the bankers said.
Boston Consulting Group has issued a report arguing that, at its current rate of expansion, Emirates will become the world’s biggest wide-body carrier by 2015. Its regional competitors, Etihad of Abu Dhabi and Qatar Airways, won’t be far off the top 20. But BCG warns that turbulence will increase as they boost their long-haul operations in an increasingly competitive international market.
Dubai’s ‘Aerotropolis’ strategy – a city flourishing around the busy east-west air corridor it serves – has developed as fast as the city’s debt and real estate woes pulled the emirate back from its hubristic rise over the past decade.
|TASI (Saudi Stock Market)||6112.37||-0.26%|
|DFM (Dubai Financial Market)||1431.71||-0.47%|
|ADX (Abudhabi Securities Exchange)||2533.41||-0.05%|
|KSE (Kuwait Stock Exchange)||5833.1||-0.27%|
|BSE (Bahrain Stock Exchange)||1165.75||-1.48%|
|MSM (Muscat Securities Market)||5602.29||-0.17%|
|QE (Qatar Exchange)||8393.92||-0.34%|
|LSE (Beirut Stock Exchange)||1233.93||-0.28%|
|EGX 30 (Egypt Exchange)||4137.35||1.04%|
|ASE (Amman Stock Exchange)||1991.6||-0.87%|
|TUNINDEX (Tunisia Stock Exchange)||4664.2||-0.04%|
|CB (Casablanca Stock Exchange)||11338.7||0.03%|
|PSE (Palestine Securities Exchange)||488.2||1.10%|
The following shares were active in the Persian Gulf region. Stock symbols are in parentheses.
Mobile Telecommunications Co. (ZAIN KK) dropped the most since May 15, losing 3.1 percent to 940 fils. Kingdom Holding Co. and Bahrain Telecom Co. (BATELCO BI) abandoned plans to buy a 25 percent stake of the Kuwaiti phone company’s Saudi Arabian unit. Bahrain Telecom, or Batelco, rose 0.5 percent to 0.4 dinar in Manama trading.
"Currently, we can only act with a view to the short term, longer term forecasts cannot be maintained in view of the insecure situation in Europe and the United States," Qatar Holding chief executive Ahmad Mohamed Al-Sayed was quoted as saying in an interview.
"This situation dwarfs everything that the continent has seen in the past 50 years ... "It remains to be seen whether all the various states truly decide in favour of a common future."
The privately-held firm set up a banks' committee earlier this year to thrash out a debt deal after it announced talks with lenders to discuss the terms of its facilities.
“We are not restructuring, we are just rescheduling some existing debts,” Fatima Al Jaber told Arabian Business on the sidelines of the Leaders in Construction Summit in Dubai.
“All brokerage firms will not be allowed to carry out such trading. Brokerage firms are required to get a separate licence for collateral trading (or margin trading) from the CMA. They have to apply for it,” Abdullah bin Salem bin Abdullah al Salmi, executive vice-president of the Capital Market Authority (CMA) told Times of Oman.
Margin trading allows investors to borrow money from a broker to purchase stocks, using their investment as collateral.
Kingdom and Bahrain Telecom "concluded that the terms and conditions as set out in its non-binding offer could not be met to its satisfaction,’’ they said in separate statements today. “This follows a period of due diligence and discussions with Zain Group and other stakeholders.”
Kingdom and Bahrain Telecom, known as Batelco, had agreed in principle to pay $950 million in cash for the stake in Zain Saudi, controlled by Kuwait’s Zain Group. In addition, Zain Saudi would have paid $250 million of debt to Zain Group after the transfer of ownership, Zain Group said on March 16.
During a roundtable discussion hosted by the Dubai Chamber of Commerce and Industry, top businessmen in the UAE said that the high cost of hiring staff, paying wages and rents was a significant obstacle.
"Despite Dubai's appealing conditions and promising growth, the high operating costs of businesses is among the emirate's main challenges [and] should be monitored very closely," said Mohideen Bin Hindi, the chairman of the Dubai Retail Business Group.
States beset by revolutionary fervour are witnessing reduced consumption as their economies falter amid uncertainty – even if, in the longer term, political change could bring deeper, more exciting markets for global retailers.
The divergent fortunes are most apparent in the Middle East and north Africa’s two largest consumer markets, Egypt and Saudi Arabia.
Gulf rulers are sending the world an unequivocal message – their countries will remain an exception to the Arab awakening. As the winds of change blow through the Middle East and north Africa, Gulf states are behaving as if it’s business as usual, pursuing small, incremental political reforms that would be deemed irrelevant, if not insulting, in other parts of the region.
In Bahrain, where a Shia uprising was crushed this year, the authorities held a by-election last weekend to replace Shia members who had withdrawn from parliament in protest at the harsh security crackdown. They portrayed the exercise as a confirmation of the al-Khalifa family’s commitment to political reforms.
Next door in the United Arab Emirates another election was held, this one to a federal national council that has a purely advisory role and in which half the members are, in any case, appointed. The election was billed as a step forward because the number of citizens entitled to take part was significantly increased.
Bahrain has started to receive funds from the six-member Gulf Cooperation Council as it seeks to spend its way out of a slowdown caused by political unrest which is blighting its services-orientated economy.
Sheikh Mohammed bin Essa Al Khalifa, chief executive of the Economic Development Board, says “a significant portion of the GCC funds” have arrived in the past few weeks, referring to the first elements of a $1bn tranche expected this year.
“We are spending on infrastructure, a lot on housing. We are looking at private public partnerships. There are a number of initiatives in the pipeline aimed at encouraging economic growth through social improvement,” he says.
Options contracts grant investors the right to buy or sell at a fixed price within a defined period or on a predetermined date.
They are used to offset the risk of currency fluctuations. Investors can also make speculative bets using the contracts or explore arbitrage opportunities to benefit from different exchange rates.
Middle East retail, top retail locations, Abu Dhabi Mall, Seef Mall, Raya Mall, Landmark Doha | alifarabia
This downward trend was in sharp contrast to the growth seen in other emerging markets. Not surprisngly, some of the countries most affected by the Arab revolt saw the most severe declines. Bahrain’s retail rents fell 26.7% during the period, while Syria saw a 16.7% decline.
Meanwhile, UAE (3.0%) and Qatar (2.2%) registered more modest falls. Rental uplift was confined to Lebanon (5.2%) – where values in the top shopping areas of Beirut proved resilient to external factors.