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Thursday, 6 December 2012

Emirates to report double-digit profit growth |

Emirates, which is adding 15 new destinations to its growing network this year, could report a double-digit growth in profit when it closes the financial year in March next year, a senior official said here.
“We have reported a robust growth in net profit during the first half of the year, and we are confident of showing a double-digit growth when we close this year,” Thierry Antinori, Emirate’s Executive Vice-President for Passenger Sales Worldwide, said on the sidelines of a press conference at Lyon Airport following the launch of the airline’s flights.
“Due to the increased capacity this year, we are going to grow in revenues and profit. However, next year, we will have fewer aircraft joining us and we will add fewer destinations. “It will take us six months to make the Dubai-Lyon route profitable,” he said.

Dubai and Abu Dhabi shares decline marginally |

The Dubai Financial Market (DFM) index fell 0.07 per cent to close at 1609.63 on Thursday.
Among the gainers, Al Saladan Sudan rose 2.94 per cent to close at Dh1.75, followed by Air Arabia by 2.21 per cent to Dh0.741 and Aman by 2.02 per cent to Dh1.01.
Among the losers, GGICO fell 9.76 per cent to Dh0.342, followed by Shuaa by 3.53 per cent to Dh0.520 and Dubai Investment by 1.18 per cent to Dh0.840.

GIB raises 500m through bond issue |

Gulf International Bank (GIB), rated A (Fitch) / A3 (Moody’s) / BBB+ (S&P), announced Wednesday the successful completion of its senior unsecured $500 million 5-year debut issue under its $4 billion Euro Medium Term Note Program. The notes were issued at a spread of $5-year mid-swap plus 165 basis points with a coupon rate of 2.375 percent.
The highly successful Reg S transaction achieved one of the lowest coupons for a $5-year senior unsecured transaction by a bank in the MENA region, clearly reflecting investors’ high confidence in GIB’s financial strength and credit story.
Initial price guidance was communicated at 8:00 a.m. London time Tuesday (Dec. 4) to the market at a range of mid-swap +165-175 basis points, which resulted in strong momentum allowing GIB to execute intra-day and to price at the low end of the price guidance. The order book was 3.5 times oversubscribed and comprised around 90 investors.

MENA stock markets close - December 6, 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)

UPDATE 1-Qatar Telecom mandates banks for possible bond - leads | Reuters

Qatar Telecom (Qtel) has mandated six banks for a possible benchmark-sized dollar-denominated bond, lead arrangers said on Thursday, in what would be the majority state-owned operator's first bond sale since 2010.

Qtel picked Barclays Plc, HSBC Holdings, Mitsubishi UFJ Securities, Mizuho Securities, Morgan Stanley Inc and QNB Capital as lead arrangers and bookrunners for the deal.

Qtel has been raising stakes in its subsidiaries, taking advantage of the gas-rich Gulf state's healthy financial position at a time when other large telecom firms are shying away from deals. It increased its stake in Iraqi telco Asiacell and Kuwaiti affiliate Wataniya this year.

Dubai Stocks Trump Saudi as U.A.E. Relies Less on Oil, Saxo Says - Businessweek

United Arab Emirates shares are more attractive than those in Saudi Arabia because the nation is less vulnerable to oil price swings and Dubai’s real estate industry is starting to recover, Saxo Bank A/S said.

A 19 percent advance for Dubai’s DFM General Index makes it this year’s best performer in the six-nation Gulf Cooperation Council (BGCC200), beating 11 percent gain for Abu Dhabi’s measure and 4.9 percent for the Saudi Tadawul All Share Index. (SASEIDX) Shares in Dubai and Abu Dhabi trade at respective price to earnings ratios of 12 times and 9.2 times, below 14 times in Saudi Arabia.

“We are more positive on the U.A.E. as the country’s policy has been to focus on diversifying its income stream on tourism and the financial sector, meaning there’s less dependency on oil,” Peter Garnry, an equity strategist at Saxo Bank, said in an interview in Dubai yesterday. “Saudi Arabia on the other hand is exposed to increased vulnerability due to its dependency on oil.”

BREAKINGVIEWS-Barclays bet lives up to rich billing for Qatar - Yahoo! News Maktoob

A massive bet on Barclays is living up to its rich billing for Qatar.
The complex 3.4 billion pound investment in the UK bank has earned a 19 percent internal rate of return for the sovereign fund, according to a Breakingviews calculation. That's pretty good, factoring in the huge risk of propping up a universal bank at the height of the financial crisis. But it will grate for Barclays shareholders who resented the deal in the first place.
To re-cap, Barclays issued a happy meal of capital instruments to the Qatar Investment Authority and
wholly-owned subsidiary Qatar Holding in 2008. First came a placing of shares in the summer. In October, there followed a mandatory convertible, a high-yield bond and a slug of warrants.

STOCKS NEWS MIDEAST-Oman climbs to 3-wk high; Kuwait ends flat - Yahoo! News Maktoob

Oman's bourse rallies to a three-week high as financial stocks attract fresh buying, while Kuwait's bourse ends near-flat.
Muscat's index gains 0.6 percent to finish at 5,625 points, its highest close since Nov. 15.
Al Izz Islamic Bank jumps 4.8 percent, up for a third session after being listing on Monday.

Bahrain 'to post 2.9pc growth next year'

Bahrain should achieve economic growth of 2.4 per cent this year and that should rise to 2.9 per cent next year, said investment bank Merrill Lynch in its outlook for 2013.

That is against a rise of global growth from 3.1 per cent to 3.2 per cent next year but at a time when the bank is predicting a dip in US growth from 2.1 per cent to 1.5 per cent and a continued slight recession in the euro zone.

Bahrain and much of the region were positive because of the strength of oil and continuing diversification, Johannes Jooste, Merrill Lynch head of strategy for Europe, the Middle East and Africa, was quoted as saying in our sister publication, the Gulf Daily News.

‘A tale of two cities’ for UAE’s hotel sector -

Over half of the Gulf’s projected hotel pipeline is currently under construction in the UAE but while Dubai is likely to be able to maintain its occupancy levels, Abu Dhabi is expected to struggle amid oversaturation.
Around 57 percent of the GCC’s projected hotel pipeline is in the UAE with an estimated 38,318 rooms set to come online over the next three years, according to data compiled by STR Global and Christie + Co.
“It’s very much a tale of two cities…Dubai saw most of its growth in the pre-crisis years whereas Abu Dhabi saw its growth during the crisis years,” said Gavin Samson, managing director at Christie + Co MENA.