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Sunday, 16 March 2014

Goldman Puts 2014 Capital Flight at $130Bln | The Moscow Times

Goldman Puts 2014 Capital Flight at $130Bln | The Moscow Times:

"LONDON — Capital flight from Russia has risen sharply since the start of this year to $45 billion and $50 billion, Goldman said, predicting full-year outflows could be as much as $130 billion, or double 2013 levels.

Goldman said its calculations show capital outflows have jumped 60 percent from year-ago levels as the economy slows and the threat of Western sanctions bites. It also slashed its forecast for Russian economic growth this year to 1 percent.

Western powers are considering imposing sanctions on Moscow in response to its military intervention in neighboring Ukraine, especially if the Crimea region votes this weekend in a referendum to secede from Ukraine and join Russia.

"The Achilles heel of the Russian economy remains the flow abroad of Russian capital following any shock. We would also think that any sanctions or even the threat of sanctions will be ultimately targeted at these flows," Goldman analysts Clemens Grafe and Andrew Matheny said in a note late last week."

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MIDEAST STOCKS-Emaar boosts Dubai but Ukraine hurts rest of region | Reuters

MIDEAST STOCKS-Emaar boosts Dubai but Ukraine hurts rest of region | Reuters:

"* Emaar jumps after hiking dividend, announcing mall IPO plan

* But stock pulls back below major technical resistance

* Dubai's turnover remains moderate

* Ukraine prompts Gulf retail investors to take profits

* Omantel slips after results of first phase of share offer

By Olzhas Auyezov

DUBAI, March 16 (Reuters) - Positive news from Emaar Properties boosted Dubai's bourse on Sunday but the Ukrainian crisis pushed down almost all other stock markets in the Middle East. 

Emaar announced plans to sell up to 25 percent of its shopping mall in a public offer expected to raise 8 to 9 billion dirhams ($2.18-$2.45 billion), with proceeds to be "primarily distributed as dividend" to Emaar shareholders. It also hiked its 2013 dividend to the highest since 2007.

The company's shares closed 5.1 percent higher at 9.10 dirhams; Emirates NBD, another Dubai flagship stock, jumped 5.8 percent although trading was very thin. Dubai's main index climbed 2.0 percent.

Emaar's plan, which chairman Mohammed Alabbar said he wanted to carry out "within months", was not unexpected, but it got good reviews from analysts."

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Dubai considers rule change to lure more domiciled funds « ASHARQ AL-AWSAT

Dubai considers rule change to lure more domiciled funds « ASHARQ AL-AWSAT:

"Reuters—Dubai is considering regulatory reforms to persuade more funds to base themselves in its financial center, though industry experts believe that other parts of its investment environment may also need to change for the emirate to compete globally.

The proposed rules would create a new class of funds in the Dubai International Financial Center (DIFC) in an effort to attract asset managers, such as hedge funds and private equity funds, serving the richest and most risk-tolerant investors.

The DIFC has boomed since it was set up as a financial free zone in 2004, becoming the Middle East’s top banking hub. The number of registered firms operating in the DIFC jumped 14 percent to 1,039 last year, but it has not come close to competing with the likes of Luxembourg, Dublin and the Cayman Islands as a top domicile for funds.

Only nine funds have been domiciled in the DIFC since its current funds regime was introduced in 2010, compared with hundreds established in the leading centers, industry sources said. The DIFC declined to comment."

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UAE, Abu Dhabi roll over $20 billion of Dubai's debt | Reuters

UAE, Abu Dhabi roll over $20 billion of Dubai's debt | Reuters:

"(Reuters) - Abu Dhabi and the central bank of the United Arab Emirates have agreed to refinance $20 billion of debt that was extended to the Dubai government as emergency aid during its financial crisis and comes due this year, the state news agency said on Sunday.

The debt is being rolled over for five years at a 1 percent annual interest rate, WAM said in an official statement.

The roll-over covers a $10 billion, five-year loan which was offered to Dubai by the Abu Dhabi government through two state-owned banks, and $10 billion of five-year bonds which Dubai issued to the UAE central bank.

The agreement, which had been expected by financial markets, will enable Dubai to continue spending heavily to develop itself as a regional center for finance, trade and tourism."

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SICO funds post strong record in 2013 | Economy | Saudi Gazette

SICO funds post strong record in 2013 | Economy | Saudi Gazette:

"Bahrian-based regional investment bank, Securities & Investment Company (SICO), released Friday year-end 2013 performance results for its award-winning family of regional funds. During the year, all SICO's Bahrain Bourse-listed funds continued to perform robustly in contrast to peers and respective GCC benchmark indices.

The bank's flagship Khaleej Equity Fund (KEF), which invests in GCC-listed equities, achieved a return of 28.4  percent for 2013, compared to an appreciation of 25  percent of the S&P GCC Composite Index - outperforming its benchmark for the eighth consecutive year. Since the fund's inception in March 2004, the fund has generated a return of 178.1  percent compared to a 61.1 percent return of the benchmark. It is the only fund in the GCC to be awarded both a 'Gold' fund grading and a '5-year Long-term' grading by Standard & Poor's Capital IQ."

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Expanding Emirates Airline could outgrow Dubai hub | The National

Expanding Emirates Airline could outgrow Dubai hub | The National:

"Emirates Airline says that it is expanding so rapidly that it may outgrow its hub at Dubai International Airport.

“Dubai International, as it stands, won’t be able to accommodate all of our aircraft,” the Emirates president Tim Clark said in Boston last week after the carrier launched its latest route to the UnitedUSStates.

Emirates is in the process of aggressively expanding its fleet. Over the past two years, the company has taken on 45 new aircraft, many of which are large Airbus A380 planes. This year it expects to take delivery of another 22. "

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New York replaces London as world’s leading global financial centre, report says | The National

New York replaces London as world’s leading global financial centre, report says | The National:

"New York has knocked London from its position as the world’s leading global financial centre after seven years, according to the Global Financial Centres Index compiled by the London-based consultancy Z/Yen.

London slipped from the top of the global rankings, scoring 784 against 786 for New York, because a series of own goals had tarnished its reputation, the report said.

“London sees the largest fall in the top 50 centres,” said Mark Yeandle, the report author and associate director of Z/Yen, in a statement on the group’s website.

“This seems to be based on a number of factors including ... uncertainty over Europe, the perception that London might be becoming less welcoming to foreigners and perceived levels of market manipulation.”"

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RAK Ceramics Profit Rises as Company Hires Barclays for Strategy - Bloomberg

RAK Ceramics Profit Rises as Company Hires Barclays for Strategy - Bloomberg:

"RAK Ceramics, (RAKCEC) the world’s largest maker of ceramic tiles, posted the biggest jump in full-year profit since 2009 on production efficiencies at its factories.

Net income rose 21 percent to 272 million dirhams ($74 million) from 224 million dirhams in 2012, the Ras al Khaimah, United Arab Emirates-based company said in an e-mailed press release. Total revenue rose 11 percent to 3.52 billion dirhams.

“We had improvements in efficiencies in our plants worldwide, and together with rising prices, we saw an increase of profits across our operations,” Chief Executive Officer Abdallah Massaad said in a phone interview yesterday. “The board is proposing a 25 percent cash dividend for 2013.”

The company said last week it hired Barclays Plc and BNP Paribas SA to explore “a range of strategic alternatives and transactions” after Bloomberg reported earlier this month that the banks are advising Ras Al Khaimah’s ruling family on the sale of a 25 percent to 50 percent stake. Massaad said the company hasn’t been informed of any “transfer of ownership.”"

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Emaar Soars Most in 6 Months on Unit IPO, Dividend: Dubai Mover - Bloomberg

Emaar Soars Most in 6 Months on Unit IPO, Dividend: Dubai Mover - Bloomberg:

"Emaar Properties PJSC (EMAAR) jumped the most since September as the developer of the world’s tallest skyscraper plans a $2.45 billion share sale of its shopping malls to reward stockholders.

The shares surged as much as 6.8 percent, the most since Sept. 10, to 9.25 dirhams, before trading at 9.07 dirhams as of 11:38 a.m. in Dubai. The estimated 8 billion dirhams ($2.2 billion) to 9 billion dirhams generated from the secondary public offering will primarily be distributed to shareholders as dividend, Emaar said, without giving a time frame for the sale.

The developer last month got an investment grade rating for the first time in four years at Standard & Poor’s as Dubai’s property market rebounded amid an economic recovery. That and an upgrade of the United Arab Emirates to emerging-market status from frontier in June by MSCI Inc. has helped Dubai’s benchmark stock index more than double in the past 12 months."

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