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Thursday, 27 October 2011

Profits give ADCB a big lift - The National

Abu Dhabi Commercial Bank (ADCB) rose the most in almost three weeks yesterday after quarterly profit nearly doubled, beating analyst expectations.

ADCB, the country's third-largest bank by assets, jumped 3.2 per cent to Dh2.88.

Net income almost doubled to Dh607.6 million in the third quarter, compared with Dh318m in the same period last year. Abu Dhabi Islamic Bank, the country's second-biggest Sharia-compliant lender, gained for a second day, up 0.6 per cent to Dh3.21, after profits rose.

Losses widen at DFM Company - The National

Dubai Financial Market Company (DFMC), the only Gulf stock market to sell shares to the public, said third-quarter losses tripled as trading volumes reached historic lows.

Losses widened to Dh9.28 million (US$2.5m), compared with a loss of Dh2.95m in the same period a year ago.

"The constant drop in trading values overshadowed the company's revenue," a company statement said.

Giant UAE rail project moves out of sidings - The National

Etihad Rail has awarded a Dh3.3 billion (US$898 million) construction contract for the first phase of the country's railway project, opening the way for energy and industrial centres to be connected.

A consortium made up of Italy's Saipem and Tecnimont and the UAE's Dodsal Engineering and Construction were awarded a contract for civil and track works for the first phase of the network, which is to link Habshan and Ruwais in the Western Region by 2013. It is then to connect Shah and Habshan by 2014.

"This milestone contract truly marks the start of the realisation of a national railway network on the ground and beyond the planning stages," said Richard Bowker, the chief executive of Etihad Rail, the master developer and operator of the project.

Emirates NBD Placed on Negative Watch at Fitch on Loan Losses - Businessweek

Emirates NBD PJSC, the United Arab Emirates’ biggest bank, was placed on watch at Fitch Ratings for a possible downgrade on concerns about a rise in bad loans due to a weak property market and the global economy.

Even though Emirates NBD’s impaired loans ratio of 12.9 percent at the end of September was within the bank’s guidance of 13 percent to 14 percent, Fitch “has increasing concerns that retail, private-sector corporate and Islamic lending is deteriorating faster than previously anticipated,” the ratings company said in an e-mailed statement today. Emirates NBD said Oct. 24, while announcing its quarterly results, it expects its impaired loan ratio to peak at 15 percent to 16 percent in 2013.

Fitch said it will decide on a ratings cut over the next six months after the bank publishes its annual results, which may spark a downgrade of one or two levels. Emirates NBD’s ratings are backed by the “extremely high probability of support from the Dubai government and the U.A.E. authorities, given the bank’s systemic importance,” the statement said.

Emaar’s Bond Yields Inverted on Demand for Sukuk: Arab Credit - Bloomberg

Yields on Dubai developer Emaar Properties PJSC (EMAAR) longer-maturity bonds dropped below its shorter- dated securities in September as investors preferred Islamic bonds, which are in shorter supply.

Emaar’s Islamic bond, or sukuk, due 2016 yielded at 7.99 percent yesterday, while its convertible bond due 2015 was available at 8.58 percent, according to data compiled by Bloomberg. Yields on bonds of utility Dubai Electricity & Water Authority have also inverted since August, with its 2016 security trading at a yield of 5.23 percent yesterday and its 2015 bond at 5.74 percent. Yields on bonds with shorter maturities are usually lower than on similar longer-dated paper.

“The Emaar 16s are rated while the 15s are not, which immediately excludes a lot of managers from owning the 15s,” Usman Ahmed, the head of fixed income at Emirates NBD Asset Management Ltd. said by phone on Oct. 25. “Then the 16s are sukuk and the 15s are convertibles. There’s a great deal of demand for sukuk assets, but not enough supply.”

Qatar joins Mexico with oil hedge -

Qatar, a member of the Opec oil cartel, has joined Mexico in taking out an insurance policy against falling oil prices next year, hedging some of its oil for 2012 as both nations adopt a cautious view about the global economy.

Mexico hedges oil prices every year, but bankers said that Qatar has taken out insurance only rarely over the last two decades. The programme by Mexico is the world’s largest single hedge in commodities markets by value and one of only a few implemented by a sovereign entity, rather than a company.

The hedge by Qatar comes after Middle East countries have raised public spending sharply to quell public discontent on the back of the Arab Spring. Economists say that Gulf nations would need much higher oil prices to balance their budgets.

Where Are The Islamic Angel Investors? | alifarabia

Malaysia has raised the profile of Islamic finance, Takaful and Halal industry, and, now, she must do the same to venture capital (VC). VC is an important emerging asset class that should contribute to government’s objective of building a knowledge based economy by 2020.

There were several important takeaways from the recently concluded International Venture Capital Symposium 2011. One of the most important sparks to establish a VC infrastructure in debt based and biased Muslim countries is the role of angel investors.

The angels are between ‘friends, family and fool’ (FFF) seed money and established VC money. Although its expensive money, due to high failure rate and 5-7 year lock up period, these stage two companies will not receive financing/funds from banks, Islamic or conventional, which typically lend to old economy companies whose business they understand.