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Saturday, 5 January 2013

Qatar sukuk market is set to expand

The  sukuk issuances in Qatar will expand in the years ahead and there would be more demand from China and South-east Asian countries.
The estimated $130bn investment plans put forth by the government by 2016 have created a great demand for project finance ahead. Issuing sukuk will likely be one way the Qatari authorities, along with government-linked and government-owned companies, to raise funds, the Oxford Business Group’s (OBG) 2012 report noted.
Qatar is expecting a large number of subscribers beyond the Islamic world. “These days, they are from the West, China and Southeast Asia. Sukuks are a nice, neat, safe, high-yielding product that give diversity to any  portfolio,” the OBG report quoted Farah Ahmed Hersi, the Executive Manager of Economics and treasury at Masraf Al Rayan, as saying.
Qatar sukuk market is set to expand

Morocco to reform subsidies - The National

Morocco has signalled it is prepared to meet IMF demands to reform its expensive system of subsidies for food and energy.

The country needs only to reach a political consensus on the issue, a statement by the general affairs and governance minister Mohamed Najib Boulif said.

"Technically, the reform of the subsidies system is quite ready," Mr Boulif said. "Once talks are concluded and the political decision is taken, it will be launched."
Morocco to reform subsidies - The National

Dubai's Al Habtoor tackles succession issue - The National

"I will remain chairman... I will never stand down," says Khalaf al Habtoor, chairman of the Al Habtoor Group.
Satish Kumar / The National

Al Habtoor Group, the Dubai-based hotels-to-automobiles conglomerate, is to put in place a family trust arrangement aimed at smoothing succession at the 40-year-old company.

Khalaf Al Habtoor, the chairman and founder of the group, told The National that the trust scheme was currently being considered, on the advice of the international accounting group PwC and the Dubai law firm Habib Al Mulla.

Last month, the company surprised UAE markets when it postponed plans for a US$1.6 billion (Dh5.87bn) initial public offering for shares in the group on a number of global stock exchanges.
Dubai's Al Habtoor tackles succession issue - The National

UAE Central Bank to discuss mortgage cap - The National

In a development that investors will be watching closely, lenders will today be meeting with the Central Bank to discuss its plan to cap mortgage loans.

Last week, a circular was released to banks that restricted borrowing for expatriates to 60 per cent for the first property and 50 per cent for subsequent properties. Emiratis will be able to borrow up to 70 per cent for the first home and 60 per cent for any after.

The regulations have received mixed reviews.
UAE Central Bank to discuss mortgage cap - The National

Gulf states counting even more on oil price - The National

Big increases in public spending are pushing up break-even oil prices
for some Gulf states. Istockphoto

Big increases in GCC public spending this year are pushing up break-even oil prices for some states and raising concerns about the sustainability of government largesse.

In recent days, Oman and Saudi Arabia have unveiled spending plans for this year that rely on higher oil prices than last year in order to balance their budgets.

Oman's finance minister, Darwish Al Balushi, was quoted by Reuters as telling a news conference last week that the country required oil prices of US$104 per barrel this year to break even on a spending plan of 12.9 billion rials (Dh123.21bn). He did not give last year's break-even price but Deutsche Bank analysts estimate it was $91.60 per barrel.
Gulf states counting even more on oil price - The National

Iran opens first gas storage facility | GulfNews.com

Iranian state TV says the country has inaugurated its first natural gas storage facility.
The Saturday report says President Mahmoud Ahmadinejad opened the facility at Sarajeh outside the central Iranian holy city of Qom. It said that the site can now store 1.5 billion cubic metersbut will increase the capacity to 3.3 billion cubic meters in a second phase of development.
The broadcast says some 7.3 million cubic meters of gas have already been stored there.
Iran is under Western oil and gas sanctions over its refusal to halt uranium enrichment. The US and its allies accuse Iran of seeking to develop nuclear weapons, a charge Tehran denies.End

Exceptional Saudi fiscal systems | GulfNews.com

Saudi Arabia is noted for recording substantial budgetary surpluses. The surplus in the current fiscal year surpassed $100 billion level, a record not just for the kingdom exceptional by global standards.
Continuing a traditional practice, the budget for 2013 is conservative on both spending and income. However, if 2012 and 2011 could serve as guides, final figures would be notably different from the projected ones.
To be sure, projected revenues and expenditures for fiscal year 2013 are lower than those of 2012. For 2013, revenues and expenditures are projected at $221 billion and expenditures at $219 billion, thereby leaving shortage of $8 billion.
Exceptional Saudi fiscal systems | GulfNews.com

Gulf businesswomen need to be in the public eye | GulfNews.com

The wealth of women in the Gulf region is often compared with “Swiss bank accounts”.
Their fortunes are shrouded in secrecy. The actual size of their fortunes is not known. Yet, their wealth is big enough to draw the attention of investors and influential enough to be included in the forecasts of economic analysts.
In the absence of specific figures of the size of wealth owned by women in the Gulf, estimates put their capital at nearly $400 billion (Dh1.47 trillion).
Gulf businesswomen need to be in the public eye | GulfNews.com

Egypt's Mursi to meet IMF aide on $4.8 billion loan request: newspaper | Reuters

A senior official in the International Monetary Fund (IMF) will meet Egyptian President and other top officials on Monday to discuss Cairo's request for a $4.8 billion loan, a major state-run Egyptian newspaper reported on Saturday.

The IMF loan is seen as crucial to easing Egypt's budget deficit and an economic slump caused by the turmoil that followed the popular uprising that ousted autocratic president Hosni Mubarak in February 2011.

"Egyptian President Mohamed Mursi will receive on the day after tomorrow Masood Ahmed, the IMF director for the Middle East and Central Asia... and it is expected that the meeting will include talks about the IMF's loan to Egypt," the Akhbar Al-Youm daily reported.
Egypt's Mursi to meet IMF aide on $4.8 billion loan request: newspaper | Reuters

Turkey Seeks Partnership With Qatar to Build Third LNG Terminal - Bloomberg

Turkey is seeking investment from Qatar to build the country’s third liquid natural-gas terminal, which may be located close to the country’s borders with Greece and Bulgaria, Turkish Energy Minister Taner Yildiz said.
“It will help meet the needs of Greece and Bulgaria and reduce shipments through the straits” of the Bosporus and the Dardanelles, Yildiz told reporters today while flying to Algeria. The terminal would handle at least 5 billion to 6 billion cubic meters, he said.
Qatar, the world’s biggest LNG producer, may carry out a feasibility study for the project and private Turkish companies will probably be involved in its development, according to the minister.
Turkey Seeks Partnership With Qatar to Build Third LNG Terminal - Bloomberg

Dubai's DEWA sets $3.76bn budget for 2013 - Banking & Finance - ArabianBusiness.com

Dubai's state utility said on Saturday that its budget for 2013 has been marginally increased compared to last year.
Dubai Electricity and Water Authority (DEWA) said its budget was estimated at AED13.835bn ($3.76bn), up AED235m on 2012.
Saeed Mohammed Al Tayer, managing director and CEO of DEWA, said AED12.508bn would make up the utility's operating budget while AED1.206bn would be available to invest in capital projects and purchases.
Dubai's DEWA sets $3.76bn budget for 2013 - Banking & Finance - ArabianBusiness.com

Saudi Stock Market close - January 5, 2013

General Index
Intraday  3 month  

* market data delayed by 20 min.
 Daily Statistics
 Date05/01/2013
 General Index7010
 Change (%)1.00%
 Change69.69
 T. Volume256777348
 T. Companies 158
   Advanced112
   Declined32
   Unchanged8
   UnTraded6

Saudi Stock Market

Abu Dhabi : Etihad-Jet Airways Deal Likely in Next 12 days

Abu Dhabi-based Etihad Airways might announce an India investment within the next 10 to 12 days, according Indian media reports.

The Gulf carrier is expected to pick up 24 per cent stake in Jet Airways for about Rs16 billion to Rs18 billion, a government official told the Financial Express, adding the deal can be sealed in the next 10-12 days.

Quoting a ministry source, The Economic Times reported: "James Hogan, Etihad's CEO and the person who is widely believed to be driving the negotiations, is on leave till January 4 and things would move once he is back in action.”

The source added: "A deal is possible within next 10 days, there are a number of agreements to be signed as part of it.”
Abu Dhabi : Etihad-Jet Airways Deal Likely in Next 12 days

Why the UAE Central Bank’s credit squeeze will ultimately have the reverse of the intended effect on house prices « ArabianMoney

All across the world emerging market central banks periodically try to dampen surging house prices. But these actions only delay the inevitable and by eliminating boom-and-bust cycles actually pave the way to higher and not lower real estate prices.

Take Hong Kong. It has the most highly priced residential real estate in the world and yet home loan-to-value limits of 50 per cent have been in place many times over the past few decades. People still pay a fortune to live in a shoe box.
Why the UAE Central Bank’s credit squeeze will ultimately have the reverse of the intended effect on house prices « ArabianMoney

Saudi Gazette - Saudi Arabia seen to remain self-sufficient in natural gas

Saudi Arabia continued its role as the world’s leading producer, maintaining historically high production of near 10mn b/d in support of the global oil market.

However, decreased global demand forecast and rising supply should ease the tightness in oil supply, allowing Saudi Arabia’s production to hold steady at 11.6mn b/d in 2013, and rise to 12.6mn b/d by 2021, BMI’s “Saudi Arabia Oil and Gas Report Q1 2013” report said Friday.

The report said the Kingdom’s crude oil production would rise to an average for the year of 10.1mn b/d, with natural gas liquids (NGL) and processing gains bringing total liquids production to 11.7 million b/d for the year. Total liquids supply by the end of the forecast period is set to rise to 12.5 million b/d by 2021.
Saudi Gazette - Saudi Arabia seen to remain self-sufficient in natural gas