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Sunday, 11 January 2015

UPDATE 2-MIDEAST STOCKS-Most mkts edge up but Industries Qatar drags down Doha | Reuters

UPDATE 2-MIDEAST STOCKS-Most mkts edge up but Industries Qatar drags down Doha | Reuters:

"Shares in major petrochemical producer Industries Qatar tumbled on Sunday and dragged down the Doha bourse after the company announced a dividend cut, but most Gulf markets edged up.

Industries Qatar fell its daily 10 percent limit and was the main drag on Qatar's index, which dropped 2.3 percent.

The company said late on Thursday that its board had recommended a 2014 dividend of 7 riyals per share, down from 11 riyals paid for 2013 and below analysts' average forecast of 11.13 riyals."

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240 million Massar shares up for subscription in Abu Dhabi IPO | The National

240 million Massar shares up for subscription in Abu Dhabi IPO | The National:

"The Massar IPO on the Abu Dhabi Securities Exchange opens for subscription by investors from Sunday, the company has confirmed.

About 240 million shares will be sold at Dh2.40 each, valuing the 40 per cent stake at Dh576 million. Emirati retail investors will be eligible to subscribe to one-fifth of the total on offer, with the balance reserved for national investing institutions.

The subscription period will last for 2 weeks and will close on Sunday, January 25, Massar said."

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Investing in new realities: GCC challenges |

Investing in new realities: GCC challenges |

"During a financial crisis or in times of uncertainty, it is possible to miss the big picture. Years of strong oil prices have enabled GCC governments and their respective economies to increase their spending and build reserves. Saudi Arabia, the largest economy in the region, serves as a proxy to study. Contextually, it may be relevant to compare three time periods to appreciate the bigger picture: 1998, 2008 and 2014. According to the Institute of International Finance and the World Bank, during the last 15 years, the region witnessed three inflection points where it has braced the lowest oil price (1998), suffered collateral damage inflicted by the global financial crisis (2008) and experienced steep oil price decline (2014).

As compared to 1998, the GCC region today is well poised to weather any storm given the large surpluses that it has built during this period. Saudi Arabia’s foreign reserves, at about $800 billion, are nearly 17 times greater than they were in 1998. The period marked an increase in the overall economy, in terms of Gross Domestic Product (GDP) and the attendant increase in stock market capitalisation and liquidity. During this period, the population also increased. Growth in GDP outpaced population growth and this has resulted in higher growth per capita.

It is also insightful to focus on spending for Saudi Arabia. From a modest $50 billion (Dh183.6 billion) in 1998, overall spending has increased fivefold to $260 billion; current expenditure increased by a factor of 4, while capital expenditure increased by a factor of 16. These expenditure increases most likely explain the lower fiscal balance today compared to earlier inflection periods. During this period, the stock market soared from an index level of 1400 to 7900, though in the interim it had reached 20,000. Measured in GDP terms, the market cap/GDP ratio is still a modest 55%, providing room for significant market cap expansion."

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India’s Sage Capital targets $1b fund in GCC, Africa |

India’s Sage Capital targets $1b fund in GCC, Africa |

"India based Private equity firm, Sage Capital said it is currently working with reputed institutional investors from across the world to launch a $1 billion fund which will seek to invest in sectors such as health care and real estate, among others, in GCC, Africa and India.

Manish Kanchan, founder of Sage Capital told Gulf News that the fund is targeted to be rolled out in the second half of this year and at around the same time, Sage will also establish a presence in the Middle East market.

“We are evaluating several interesting opportunities across the region. The consumer theme resonates very strongly in all our target markets. Some of the sectors which we see as promising are health care, nutraceuticals, education and real estate,” said Kanchan."

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Property firm DAMAC to list on Dubai bourse on Monday | Reuters

Property firm DAMAC to list on Dubai bourse on Monday | Reuters:

"Dubai's DAMAC will list on the Dubai Financial Market (DFM) on Monday, a bourse spokesman said, after the developer offered holders of its London-listed global depository receipts (GDRs) shares in its holding company instead.

DAMAC in December received approval from the United Arab Emirates' Securities and Commodities Authority to list on the DFM, according to a filing to the London Stock Exchange.

The developer offered 23.08 shares in its holding company for each GDR held in Damac Real Estate Development Co (DRED) in an offer that closed last Friday."

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