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Sunday, 11 November 2012

Business - UAE resilience impressive: IMF

The UAE economy is showing impressive resilience with Dubai recording a steady improvement from a negative to two per cent growth in 2011 and a projected 3.4 per cent growth in 2012 and even a higher growth rate in 2013, the International Monetary Fund, or IMF, said on Sunday.
“The UAE as a whole is responding comfortably to improved non-oil and oil sector growth. However, the medium term challenge for the county is to further build on the good performance to strengthen its resilience, including in relation to GREs,” Masood Ahmed, director of the IMF’s Middle East and Central Asia Department, told Khaleej Times.
The GCC growth remains  robust, but is expected to slow from 7.5 per cent in 2011 to 5.5 per cent in 2012 and to 3.73 per cent in 2013, mostly due to a tapering off of oil production, Ahmed said while releasing IMF’s latest Middle East, North Africa and Pakistan (Menap) Outlook report.

Kuwait urged to pay $2.16bn Dow fine | Kuwait Times

Dow Chemical is contacting law firms in several cities worldwide including New York in order to decide how best to deal with a situation that could arise if Kuwait fails to pay a $2.16 billion penalty as a result of canceling a deal with the government four years ago, a local newspaper reported yesterday.

Legal sources quoted by Al-Qabas indicated in the meantime that the American company could “lay their hands” on Kuwaiti foreign assets if the Gulf state fails to pay the fine in cash. Minister of Oil Hani Hussain is expected to make a statement in the near future about this case and its fallout, said the sources who spoke on the condition of anonymity.

450 UAE citizens benefit from defaulters agreement |

The UAE Central Bank has taken a number of measures to help citizens solve their financial burdens, signing Memoranda of Understanding with four banks to take the number of financial institutions and companies joining the government’s initiative to settle citizens’ cheque defaulting issues to 17.
Abdullah Al Hamiz, Central Bank of the UAE assistant governor for banking supervision, told Gulf News that Sharjah Islamic Bank, HSBC, Noor Islamic Bank and the Arab Bank for Investment and Foreign Trade were the latest to join the list.
“Banks should shoulder a social responsibility and should contribute to the community by alleviating the suffering of those defaulted clients,” said Al Hamiz.

Saudi Arabia allows rights trade on stock market | Reuters

Saudi Arabia's Capital Market Authority is allowing subscription rights for share offers to be listed and traded on the Saudi stock market, as it modernizes the market in preparation to permit the entry of foreign investors.

"This framework aims to add further protection and flexibility to those investors that do not have the intention to subscribe to their entitlements," the regulator said in a statement announcing the initiative on Sunday.

Abdulhamid abu Dahesh, a Saudi financial advisor, said the new framework was similar to those in developed European stock markets, and was a step towards trading practices in advanced financial systems.

MIDEAST STOCKS-Saudi falls for 2nd day; Kuwait hits fresh 3-wk high - Yahoo! News Maktoob

Saudi Arabia's bourse declined for a second session on Sunday as investors booked gains in petrochemical stocks, while Kuwait's bourse closed at a fresh three-week high on hopes of economic and political improvement.
Shares in Saudi's National Petrochemical Co dropped 9.9 percent after the firm said it shut down its Saudi
Polymer project temporarily due to technical issues.
Investors booked profits in other petrochemical firms too, with heavyweight Saudi Basic Industries losing 0.6
percent and Advanced Petrochemicals dropping 1 percent.

UPDATE 1-Al Baraka Banking Group Q3 net profit rises 12 pct - Yahoo! News Maktoob

Bahrain-based Islamic lender Al Baraka Banking Group posted a 12 percent rise in third-quarter net profit, the bank said on Sunday, boosted by increased lending activity.
The bank, which has operations across the Middle East, Asia and Africa, made a net profit of $63 million for the third quarter, compared with $56 million in the same period of 2011, it said in a statement.
Net profit attributable to equity holders rose to $36 million for the third quarter, compared with $33 million in the
same period last year.

BP CEO hopeful on taking part in UAE oil bidding | Reuters

Oil major BP Plc (BP.L), shut out of pre-qualification bidding to develop Abu Dhabi's largest onshore oil fields, is hopeful it can be included in the process and is waiting to hear soon on the issue, Chief Executive Bob Dudley said on Sunday.

"I'm positive about it ... I'm optimistic that cooperation will go on for a long time," Dudley said on the sidelines of an oil and gas event in the UAE capital, adding that he hopes to hear about the concessions "in the next week or so".

Industry sources had told Reuters in August that BP, which holds a 9.5 percent stake in the ADCO concession that is coming up for renewal in 2014, would not be allowed to participate in the pre-qualification process due to the United Arab Emirates' irritation over UK policies.

Standard Chartered in the UAE |

Standard Chartered has been in the UAE for more than 53 years since 1958. The UAE is one of Standard Chartered’s top five markets globally in terms of revenue (more than $1 billion — Dh3.67 billion). The bank has about 2,300 staff in the UAE representing 72 nationalities with 42 per cent comprising UAE nationals. Among the international banks, it has the largest network of branches in the UAE with 11 branches, four Electronic Banking Units and more than 130 ATMs.
In the Dubai International Financial Centre, the bank runs the largest trading floor in the Middle East, with more than 200 specialists on the floor to serve clients in regional and global financial markets.
As part of its expanding presence in the region, the bank has committed $140 million to construct a new regional head office in the region. The new head office will have eight floors, spanning 125,000 sq ft. Around 1,100 employees will be centralised in one office. The building is expected to be ready in early 2013.

MENA stock markets close - November 11, 2012

 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)

Bahrain's GIB picks banks for dollar bond - sources | Reuters

Gulf International Bank , a Bahrain-headquartered lender, has mandated banks to arrange a dollar-denominated bond, planned before the end of the month, four sources familiar with the matter said on Sunday.

GIB, majority-owned by the Saudi Arabia government, has picks itself, as well as J.P. Morgan Chase Inc, National Bank of Abu Dhabi, Barclays Plc, Standard Chartered Plc and Societe Generale to arrange the deal, the sources said on condition of anonymity.

The bank updated a prospectus for its $4 billion bond programme in September in which it said proceeds from any potential debt issue would be used for general corporate purposes.

Bahrain's Gulf Finance House Q3 net profit drops | Reuters

Bahrain-based investment firm Gulf Finance House (GFH) said on Sunday its third-quarter net profit nearly halved from a year earlier.

The sharia-compliant investment house, heavily impacted by the global debt crisis, said in a statement that its third-quarter net profit dropped to $1.8 million from $3.4 million a year earlier.

Profit for the first nine months of 2012 rose to $7.5 million, up from $4.1 million a year ago.

STOCKS NEWS MIDEAST-Kuwait hits 3-wk high; UAE, Qatar drop - Yahoo! News Maktoob

Kuwait's bourse closes at a fresh three-week high, recovering early-session losses as buying in bluechip stocks supports, while UAE markets end lower.
Kuwait Finance House and Ahli United Bank each advance 1.3 percent and developer Mabanee Co jumps 5.1 percent.
Analysts say increased trading in Kuwait's heavyweight stocks is the result of buying by stake-linked funds to support a market that fell to an eight-year low on Nov. 4.

ADNOC wants to keep current UAE oil concession structure - Yahoo! News Maktoob

Abu Dhabi National Oil Co (ADNOC) is willing to keep the current structure of its oil and gas concessions in the United Arab Emirates unchanged, and will present its recommendation to the Supreme Petroleum Council of
Abu Dhabi by early next year at the latest, ADNOC'S director-general said on Sunday.
"It is our recomendation to have the same format. but this will be submitted to the SPC and they can decide if they want to change," Abdulla Nasser Al Suwaidi told reporters on the sidelines of an oil and gas conference.
The UAE's concession system allows oil and gas producers to acquire equity in hydrocarbon resources from the OPEC member country. The first concession renewal is coming up in 2014.

Arab Spring economies to recover slowly in 2013-IMF Asharq Alawsat

Most economies hit by the Arab Spring uprisings will recover slowly next year, grappling with high inflation and rising unemployment due to poor global conditions, the International Monetary Fund predicted in a report on Sunday.
In its twice-yearly outlook for the Middle East and North Africa, the global lender said a partial return of political stability could permit somewhat faster growth in the combined output of Egypt, Jordan, Morocco, Libya, Tunisia and Yemen during 2013.

But weak demand in Europe and other regions will weigh on the Arab Spring states, it said. In many of those countries, exports are shrinking and have not yet bottomed out, it added.

STOCKS NEWS MIDEAST-Saudi index slips further from 6-wk high - Yahoo! News Maktoob

Saudi Arabia's bourse heads for a second straight decline from Wednesday's six-week high as petrochemical stocks weigh on the index.
Shares in National Petrochemical Co drops 4.4 percent after the firm said it shut down its Saudi Polymer
project temporarily due to technical issues.
The firm expects the plant's units to resume operations in about four weeks, and will book impact from the closure in its fourth-quarter financials, according to a bourse statement.

Dubai Index Drops as U.S. Fiscal Cliff Pressures Global Stocks - Businessweek

Dubai’s shares fell, leading declines in the Persian Gulf, after concern over U.S. budget cuts and a delay in the European Union’s bailout of Greece spurred drops in global shares.

Emirates Integrated Telecommunications Co (DU), the United Arab Emirates phone services company known as Du, and construction company Arabtec Holding Co. fell for a second time in three days. The benchmark DFM General Index (DFMGI) dropped 0.3 percent to 1,612.92 points at 12:31 p.m. in the emirate. The Bloomberg GCC 200 Index (BGCC200) of regional stocks lost 0.2 percent and Qatar’s QE Index decreased 0.3 percent.

The Stoxx 600 Index dropped 1.7 percent last week and the MSCI Emerging Markets Index (MXEF) lost 1.4 percent on concern the U.S. will slip back into recession if lawmakers fail to reach a budget compromise on the so-called fiscal cliff, which refers to about $607 billion of tax increases and federal spending cuts set to kick in automatically in January. Euro-area finance ministers may not make a decision on unlocking funds for Greece until late November, a European Union official said last week.

UAE GDP growth seen at 3.5-4 pct in 2012 - Econ min | Reuters

The United Arab Emirates' economy is expected to grow between 3.5 percent to 4 percent in 2012, the country's economy minister said on Sunday.

"Our forecast, and I always been very cautious when it comes to these figures because we have the fourth-quarter still unfolding, is 3.5 percent this year or between 3.5 and 4 percent," said Sultan bin Saeed al-Mansouri, speaking ahead of world economic forum discussions in Dubai.

"That means good growth at a time when numerous economies are suffering across the world," Mansouri said.

Abu Dhabi's oil ambitions hit by rigs shortage - The National

A shortage of drilling rigs threatens to hold back Abu Dhabi's ambitious plans to expand oil production.

Operating companies and foreign partners in exploration projects privately complain of difficulty in securing rigs to develop resources in the emirate.

At the same time, the order books of local rig builders are swelling with demand. Lamprell and Petrofac, two fabricators with UAE shipyards, had a combined order backlog of US$10.9 billion (Dh40.03bn) by midyear, up from just under $9bn in 2010.

Fire sale of 14 Palm Jumeirah villas to test the resilence of the Dubai prime real estate market « ArabianMoney

The fire sale of a total of 14 Palm Jumeirah villas financed by the Kabul Bank, eight immediately through an auction organized by the Dubai Land Department will test the strength of the recovery in Dubai prime villa market that Knight Frank recently ranked second only to Jakarta for price performance in the past six months.

The dumping of property for whatever price it will fetch generally undermines the value of neighboring real estate, unless the market is particularly strong. That does not appear to be the case on the Palm Jumeirah because the villas now for auction were originally placed with estate agents who only managed to sell three of them for AED22.5 million, AED30.8 million and AED10.7 million, according to The National today.

UPDATE 1-Dubai's Shuaa Capital Q3 loss narrows - Yahoo! News Maktoob

Investment bank Shuaa Capital, which has been shedding jobs to cut costs, posted a narrower quarterly loss on Sunday helped by lower provisions and a sharp drop in investment-related losses.
Shuaa, which has had three chief executives in the past year, had a third-quarter loss of 13.9 million dirhams ($3.78 million), compared with a loss of 156.2 million dirhams for the year-ago period, it said in a bourse statement.
One of the Arab world's largest investment banks and once a symbol of the sector's potential in the region, Shuaa is among a group of regional investment firms struggling to stay afloat after excessive debt and declining portfolios led to losses.

Gulf Times – Investment opportunities in Qatar for GCC citizens

Qatar’s economy is undergoing an unparalleled development and expansion phase while other economies continue to be battered by economic crises.  As a result, the states that comprise the Gulf Co-operation Council (GCC) will likely have an increased appetite for investment in Qatar. 
Accordingly, Qatari investment in fellow GCC states will continue to increase, stimulated by greater GCC integration and exemplified by major infrastructure projects such as the GCC rail network. 
The purpose of this article is to briefly summarise some legal avenues by which GCC citizens may invest in Qatar, such as: (i) corporates, (ii) real estate, (iii) shares in companies traded on the Qatar Exchange, and (iv) the Qatar Financial Centre (QFC).  "

'via Blog this'

Saudi Arabia Exports 2.25 Billion Barrels Of Oil Worth SR 921 Billion Eurasia Review

Saudi Arabia exported nearly 2.25 billion barrels of crude oil in the past 10 months of the current year valued at SR 921 billion.

According to economic expert Fahad bin Jumaa, local consumption stood at 784 million barrels or 26 percent of the total production in the said period.

He predicted that Saudi oil exports in the forth quarter of the current year will hit 650 million barrels and yield SR 256 billion. However, oil production is set to drop to 9.8 million bpd with the recent decline of Nimex and OPEC basket prices to $ 96 and $ 106 respectively, he said.