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Thursday, 13 December 2012

Sukuk Perceptions and Forecast Study 2013.pdf - Google Drive

Sukuk Perceptions and Forecast Study 2013.pdf - Google Drive:


Business - Pentair to boost investment in Sharjah, eyes $1b revenue

Diversified global industrial conglomerate Pentair, which recently completed the $400 million takeover of Sharjah-based KEF Holdings’ manufacturing facility, is set for further investment in the emirate to boost its turnover from $400 million to $1 billion in five years.
Randall Hogan, chairman and chief executive officer of Pentair, said the world leader in water and fluid solutions would invest $50 million over the next three years in setting up production facilities for engineered valves and pumps to complement its existing hi-tech plant for manufacturing industrial valves in Sharjah.
In March this year, Pentair started the process of combining its operations with Tyco International’s  flow control business in a deal worth about $4.53 billion to create Pentair Ltd —  a global leader in water and fluid solutions, valves and controls, equipment protection and thermal management products. Consequently, KEF Holdings, in which Tyco took 75 per cent stake in 2011 for $300 million, came under its fold. In October this year, Pentair acquired the remaining 25 per cent for $100 million to complete the takeover.

RLPC-TAQA signs $2.5 bn syndicated loan | Reuters

Abu Dhabi National Energy Company (TAQA) has signed a $2.5 billion syndicated loan after launching the deal at $2 billion in October, the 10 arranging banks said in a statement on Thursday.

The deal is a boost for international banks hungering for business after Middle Eastern syndicated loan volumes plunged to an eight-year low of $35 billion this year as many regional borrowers turned to cash-rich local lenders, according to Thomson Reuters LPC data.

The 10 initial mandated lead arrangers and bookrunners - Bank of America, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, HSBC, National Bank of Abu Dhabi, Royal Bank of Scotland, Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation - committed $200 million each in October.

Saudi investor ties up with Russian farmer to sell grain | Reuters

A Saudi Arabian investment company has set up a joint venture with SAHO, a Siberian grain producer, to ship Russian wheat and barley to the Middle East and North Africa, the two companies said on Thursday.

The deal is a rare one between Russia and Saudi Arabia, which consumes about 15 million tonnes of grain per year. It was agreed by Metropol, a Russian domestic investment bank, as part of a debt restructuring of SAHO. The bank has an option to buy SAHO in the future.

Russia, with abundant farmland and fresh water, is seen as a natural target for Saudi investments aimed at food security, but rivalry on oil and gas, a 2010 ban on Russian grain exports and, more recently, disagreements over Syria have stymied investment flows.

BBC News - Dreamliner faults attacked by Qatar Airways chief

The head of Qatar Airways has criticised Boeing over several manufacturing faults that have resulted in the grounding of one of its three 787 Dreamliner aircraft.

Qatar's grounded 787 has electrical problems similar to those in a United flight that was recently forced to have an emergency landing.

Chief executive Akbar Al Baker said he was "disappointed" by the situation.

Kingfisher / Etihad: a brave investment | beyondbrics

If Vijay Mallya pulls this off it will be a moment of magic and/or poor judgement.

Etihad Airways, the Gulf carrier, is on the cusp of buying a stake in the debt-encumbered Kingfisher Airlines – the airline that has been grounded since October.

On Thursday, Kingfisher set a 3 per cent cap on foreign institutional investment. Alongside the 49 per cent limit on foreign ownership by Indian law, this creates room for a foreign investor to take the other 46 per cent. Foreign institutional investors currently hold 2.46 per cent of the company and Kingfisher said in a statement that the cap was put in place:

Saudi Arabia begins aluminium production - Ahram Online

Saudi Arabia on Thursday began aluminium production at its first smelter built through a joint venture between the Saudi Arabian Mining Company (Ma'aden) and US giant Alcoa, a statement said.
"Today we see the first aluminium produced in Saudi Arabia, and the launch of a new industry," Ma'aden President and CEO Khalid al-Mudaifer said at the inauguration of production in Ras al-Khair in Eastern Province.
The Ma'aden Aluminium joint venture is 74.9 percent-owned by the Saudi group, with the rest held by Alcoa.

Dubai dhows still key for trade - Videos from CNN.com

TEXT-S&P summary: Saudi Telecom Co. - Yahoo! News Maktoob

Our business risk profile assessment is underpinned by STC's leading market position in the liberalized Saudi telecom market, with a difficult-to-replicate national network, implicit state support, high operating profitability margins in its domestic market, and strong underlying cash flows. These strengths are only partly offset by STC's increasing exposure to country risk, associated with its expansion into emerging markets, as well as the potential for increasing competition in its home market.
Our financial risk profile assessment reflects STC's solid credit metrics, its conservative financial policy, and limited recourse to debt of its foreign investments. Somewhat offsetting these strengths are the historically high
level of dividend payout ratios, as well as the risk of merger and acquisition activity abroad, which could adversely affect credit quality.

FACTBOX-Credit ratings moves in Middle East, N.Africa - Yahoo! News Maktoob

Fitch cut Tunisia's rating to BB+ from BBB- late on Wednesday and kept the outlook at negative, citing an economic and political transition that was longer and more difficult than anticipated.
Middle East and North African countries have suffered a number of ratings downgrades following political unrest which started in 2011.
Below is a list of long-term foreign currency ratings and outlooks for countries in the region.

MENA stock markets close - December 13, 2012

 ExchangeStatus IndexChange  
 
 TASI (Saudi Stock Market)
 
6769.960.10%  
 
 DFM (Dubai Financial Market)
 
1584.52-0.18%  
 
 ADX (Abudhabi Securities Exchange)
 
2612.170.33%  
 
 KSE (Kuwait Stock Exchange)
 
5930.28-0.03%  
 
 BSE (Bahrain Stock Exchange)
 
1046.26-0.03%  
 
 MSM (Muscat Securities Market)
 
5647.29-0.03%  
 
 QE (Qatar Exchange)
 
8331.14-0.18%  
 
 LSE (Beirut Stock Exchange)
 
1141.830.49%  
 
 EGX 30 (Egypt Exchange)
 
5162.940.09%  
 
 ASE (Amman Stock Exchange)
 
1915.680.14%  
 
 TUNINDEX (Tunisia Stock Exchange)
 
4607.09-0.30%  
 
 CB (Casablanca Stock Exchange)
 
9669.96-0.33%  
 
 PSE (Palestine Securities Exchange)
 
459.20.28%  


Video: Egypt risk | beyondbrics

2012 has been a year of power struggles in Egypt. Markets have been volatile in sympathy with the political turmoil and, with arguments raging over a new constitution, a $4.8bn IMF loan is on hold. Raza Agha, chief economist for Middle East and Africa at VTB Capital, explains to Rob Minto the risks of extended political uncertainty in Egypt.

UPDATE 1-Top Qatar bank QNB eyes Turkish buys after SocGen deal | Reuters

Qatar National Bank, which is buying Societe Generale's Egypt arm for $2 billion, is looking at taking a majority stake in one of Turkey's top ten lenders, its chief financial officer said on Thursday.

QNB, which bid to buy Turkish lender Denizbank but lost out to Russia's Sberbank earlier this year, prefers to pursue an acquisitive path in Turkey as part of its regional expansion, Chief Financial Officer Ramzi Mari said on a conference call.

"I don't see us applying for a licence in Turkey. We are looking at a majority stake in a top ten Turkish bank as a means to add value," Mari said. He did not give further details.

STOCKS NEWS MIDEAST-UAE mkts mixed; Etisalat recovers - Yahoo! News Maktoob

UAE markets end mixed and the country's two telecom operators remain actively traded stocks after the
government set new royalty fees earlier this week.
Shares in Abu Dhabi's Etisalat rise 3.1 percent, recovering from Wednesday's six-month low.
The stock plunged after the government on Monday said Etisalat would now pay royalties, or taxes, on revenue as well as profit. The government also said it would steadily increase royalty fees for du over the next few years.

Oil at $60 or $120 Doesn’t Prevent U.S. Supplanting Saudis - Bloomberg

Whether crude costs $60 a barrel or twice that amount, the U.S. is almost free of depending on imported energy and positioned to supplant Saudi Arabia as the world’s No. 1 producer of oil.
Even if U.S. benchmark West Texas Intermediate oil drops 30 percent from the current $86 a barrel, oil companies will boost production as new technologies allow them to extract crude from shale formations, said Ed Morse, the global head of commodities research at Citigroup Inc. The nation, which was last self- sufficient when Harry S. Truman was president in 1952, met 83 percent of its energy needs in the first eight months of this year, according to the Energy Department in Washington.

Taqa Seeks to Remove Abu Dhabi From Rating Equation: Arab Credit - Bloomberg

Abu Dhabi National Energy Co., a utility whose bonds would be rated junk without government backing, wants to reduce its debt burden within five years so its investment-grade status is justified by operations alone.
“Our aim over the medium term is to pay down our debt so that we can take ourselves to a stand-alone investment-grade credit rating,” Chief Financial Officer Stephen Kersley said in an interview at his Abu Dhabi office on Dec. 10. “At the moment we’re an investment-grade credit, but on the back of government support. We want to get our underlying metrics to investment grade.”
Without backing from its 75 percent owner Abu Dhabi, Taqa would be regarded as junk, according to Standard & Poor’s and Moody’s Investors Service. Instead, the utility is ranked A at S&P, the sixth-highest investment grade. Taqa, which last month bought stakes in North Sea oil fields from BP Plc (BP/), shaved 2.25 percentage points off its 10-year borrowing costs at a $1.25 billion bond sale this month, compared with a similar 2011 sale.

Qatar Fund, Canary Wharf Plan $1.6 Billion London Project - Bloomberg

Canary Wharf Group Plc and Qatar’s sovereign-wealth fund plan to build as many as 790 homes at the site of Royal Dutch Shell Plc (RDSA)’s London headquarters to gain from surging prices and rising rents in the U.K. capital.
Canary Wharf, which controls the financial district of the same name, and a unit of the fund will spend more than 1 billion pounds ($1.6 billion), including land purchased last year, to develop eight buildings on the south bank of the River Thames. Six of the buildings, including a 37-story tower, will be residential properties, John Pagano, Canary Wharf’s managing director of development, said in an interview.
“Our aim is to enhance an area in need of a renaissance,” Mohammed bin Ali Al Hedfa, chief executive officer of Qatari Diar Real Estate Investment Co., said in a statement today. “We are confident that our proposed development will put a reinvigorated South Bank at its rightful place at the capital’s heart.

STOCKS NEWS MIDEAST-Drake & Scull helps lift Dubai; Etisalat recovers - Yahoo! News Maktoob

Dubai-listed Drake and Scull helps lift the emirate's bourse after the firm's joint venture won a new contract in Saudi Arabia valued at 2.7 billion riyals ($719.96 million).
Shares in DSI rise 1.6 percent. The contractor and engineering firm, along with Arabian Construction co will build the third phase of the Jabal Omar development in Mecca. Other property-related stocks also gain. Emaar Properties and builder Arabtec climb 0.5 and 0.4 percent respectively.
Dubai's benchmark advances 0.5 percent to 1,595 points, down 1 percent so far in December.

Regional commerce undergoes fast change - FT.com

Western banks under increasing pressure at home are cutting back their Arab world operations, part of a dramatic reshaping of the regional financial landscape that is creating opportunities for local banks and for companies from Asia and elsewhere.
Oil money flooding into the Gulf petro-states has left many government and private institutions rich in capital, but they – and their overseas rivals – must contend with the extraordinary political forces that have swept the region over the past two years. The volatility has already created troubles for companies in areas such as private equity, which are struggling at times to sell boom-time pre-Arab Spring investments for a profit.