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Sunday, 26 August 2012

ESCA plans next move following implementation of fund rules - MENA Fund Manager

The Emirates’ Securities and Commodities Authority (ESCA) is planning a series of new financial regulations, following the implementation of its new fund regime, Mena FM can reveal.

According to Dr. Ryan Lemand, senior economic advisor and acting head of risk management at ESCA, the regulation plans to draft a series of new rules covering market making, shortselling, securities lending and borrowing and liquidity providing.

Earlier this year, ESCA approved the final draft of its much-anticipated new fund regulations, following the transference of the UAE’s collective investment funds jurisdiction officially transferred to ESCA.

Qatar fund remains Xstrata buyer at current prices -sources | Reuters

Qatar Holding is targeting a "strategic minority" stake in Xstrata even if a merger with Glencore does not go through and the fund is a buyer of the mining giant at current prices, sources familiar with the matter said.

The investment arm of the tiny Gulf state's sovereign wealth fund has proved to be a stumbling block for commodities trader Glencore's proposed $30 billion takeover of Xstrata, demanding improved terms and threatening to vote against the tie-up.

The deal is on the brink of collapse after Glencore refused to raise its offer and missed an informal deadline last week.

Zain confirms talks on Vodafone Middle East roaming deal - Yahoo! News Maktoob

Kuwait-based telecoms operator Zain confirmed on Sunday it was close to sealing a deal with Vodafone that would allow the global telecoms group access to its Middle East networks.
"Zain Group is at an advanced stage in negotiations towards reaching a strategic partnership agreement with Vodafone," the company said in a statement.
"Vodafone has more than 40 partnerships of this nature worldwide whereby customers benefit from their global scale and the in-country operator's local expertise. This is a non-equity deal."

MIDEAST STOCKS-Dubai slips from 16-wk high; Gulf mkts mixed - Yahoo! News Maktoob

Dubai's bourse slipped off its 16-week high on Sunday as traders booked recent gains on technical cues, while other regional markets were mixed in lacklustre trade with many investors still away after Eid holidays.
In the United Arab Emirates, Dubai's index fell 0.9 percent to 1,573 points. Investors are booking gains in property stocks that have rallied after strong quarterly earnings signalled the start of a real estate market recovery in Dubai.
Bellwether Emaar Properties lost 1.7 percent, Deyaar Development dropped back 8.5 percent, after soaring 13 percent on Thursday because of a burst of buying in the last minute of trade, and contractor Arabtec shed 1.4 percent.

Emaar Drops Amid Speculation Rally May Be Overdone: Dubai Mover - Bloomberg

Emaar Properties PJSC (EMAAR) retreated the most in a month amid speculation this year’s rally in the developer of the world’s tallest skyscraper in Dubai may be overdone.
The shares dropped 1.7 percent, the most since July 23, to 3.39 dirhams at the close in Dubai, trimming this year’s gain to 32 percent. The benchmark DFM General Index climbed 16 percent this year. It fell 0.9 percent today.
The drop in Emaar’s shares today is “just a correction,” said Chahir Hosni, equity sales manager at EFG-Hermes Holding SAE in Dubai. “The stock has performed very well, seeing a rally from about 3 dirhams to about 3.5 dirhams. Investors may be thinking the rally will stop here.”

Kuwaiti firm alleges Carlyle sold fund without licence | Reuters

A Kuwaiti investment firm is alleging that private equity giant Carlyle Group LP sold it a fixed income fund in 2006 without the necessary licence, and is seeking approval for its lawsuit against the U.S. firm to be heard in Kuwait rather than the United States.

The case illustrates some of the potential legal pitfalls which U.S. and European private equity firms operating in the Gulf face. Over the last several years they have flocked to the region, attracting hundreds of millions of dollars of investment from the Gulf's wealthy sovereign funds and family-owned firms.

National Industries Group (NIG), a company controlled by one of Kuwait's biggest merchant families, invested $25 million in Carlyle Capital Corp (CCC), a fixed income fund launched by Carlyle in 2006. The fund, which raised over $1 billion, collapsed during the credit crisis in 2008 after defaulting on about $16.6 billion in debt.

STOCKS NEWS MIDEAST-Dubai slips from 16-wk high; property stocks drop - Yahoo! News Maktoob

Dubai's benchmark slips from Thursday's 16-week high as investors book recent gains, while other Gulf bourses are steady in lackluster trade.
Dubai's index sheds 0.26 percent to 1,583 points, trimming year-to-date gains to 17 percent.
"Intraday pivot point is seen at 1,583.4 points. If the market remains below it, we may see 1,579.4 support level whereas a break above the pivot may bring recovery until the resistance of 1,591.5 points," MENA Corp Securities says in a note.

Gulf Times – Record surplus seen for Qatar in 2012-13

An expected increase in revenue due to higher hydrocarbon prices will achieve another record fiscal surplus for Qatar, which QNB forecasts will rise to QR58bn in 2012-13.
This, QNB Group said, would be twice the level that is budgeted (QR28bn) and set a new record in absolute terms.
Revised figures for Qatar’s fiscal outturn in 2011/12 show that revenue, expenditure and surplus all reached record levels and QNB Group expects to see a similar pattern in 2012/13.

It's back to work for investors after much to digest - The National

Investors returning to the first full week of trading after the end of the Eid Al Fitr holiday have had a lot of market-moving developments to digest during the past few days.

On past performance, chances are good for a bounce in market values as trading activity returns to full swing, said Tariq Qaqish, the deputy head of asset management at Al Mal Capital.

"The historic trend is usually after Eid the market reacts positively as investors come back with fresh ideas."

High marks for regional sovereign wealth funds |

Sovereign wealth funds (SWFs) of the six-nation Gulf Cooperation Council (GCC) states are substantial enough on the one hand and have positive implications for regional and global economies on the other. In other words, benefits of these SWFs are not confined to GCC economies, as these investments in the form of deposits, own ownership of securities issued by authorities in the US and others as well as investments are all over the world.
By one account, combined value of various SWFs of GCC authorities surpassed US$1.7 trillion at the start of the year. Certainly, this is a staggering figure by virtue of being some $600 billion above the monetary value of gross domestic product (GDP) of GCC states put together.
The UAE in general and Abu Dhabi in particular is noted for amassing a substantial amount of assets through its SWF. According to the Sovereign Wealth Fund Institute, which tracks SWFs, Abu Dhabi Investment Authority (ADIA) is the richest of its kind in the world. Latest statistics and rankings released by the institute put ADIA’s assets at an exceptional $627 billion.

IEA may release oil reserves as soon as Sept |

World oil consumers are poised to tap into emergency oil inventories as soon as early September after the International Energy Agency (IEA) dropped its resistance to a US-led plan, a source and an oil journal said on Friday.
Just one week after its chief said there was no discussion of possible emergency action, the IEA is now thought to have agreed to the idea, the industry journal Petroleum Economist reported on Friday, citing unnamed sources. The release could be as large or larger than last year’s 60 million barrel injection.
Responding to the report, IEA Executive Director Maria van der Hoeven said the agency remained in close communication with members and stood “prepared to act as necessary in response to a physical disruption”, avoiding the question of whether active consideration of a reserve release was underway.