Monday 10 August 2009
U.A.E Scraps Minimum Investment Requirements for LLCs
The United Arab Emirates scrapped a law that required limited liability companies to invest at least 150,000 dirhams ($40,800) as start-up capital in a bid to boost growth in the second-biggest Arab economy.
Partners in limited liability companies “will determine sufficient capital requirements” for setting up their companies, state-run WAM news agency reported, citing a decree issued by President Sheikh Khalifa bin Zayed Al Nahyan. The change will help reduce the cost of setting up new businesses, it said.
The move reflects the government’s aim of boosting investment and will improve competitiveness of the U.A.E. economy, as investors won’t need to produce bank certificates for minimum capital requirement, WAM said. “The small and medium business sector will be a great beneficiary from this” amendment, it added.
The U.A.E. economy will probably contract this year after growing by 7.4 percent last year, Central Bank Governor Sultan Bin Nasser al-Suwaidi said July 15. The government has taken several steps to help the economy since the onset of the global credit crisis, including cutting interest rates and making 120 billion dirhams ($32.6 billion) available to banks in a bid to boost lending.END
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Partners in limited liability companies “will determine sufficient capital requirements” for setting up their companies, state-run WAM news agency reported, citing a decree issued by President Sheikh Khalifa bin Zayed Al Nahyan. The change will help reduce the cost of setting up new businesses, it said.
The move reflects the government’s aim of boosting investment and will improve competitiveness of the U.A.E. economy, as investors won’t need to produce bank certificates for minimum capital requirement, WAM said. “The small and medium business sector will be a great beneficiary from this” amendment, it added.
The U.A.E. economy will probably contract this year after growing by 7.4 percent last year, Central Bank Governor Sultan Bin Nasser al-Suwaidi said July 15. The government has taken several steps to help the economy since the onset of the global credit crisis, including cutting interest rates and making 120 billion dirhams ($32.6 billion) available to banks in a bid to boost lending.END
Dubai golds sales plunge 45 pct so far in '09
Dubai gold jewellery sales have plummeted 45 percent so far in 2009 as the industry experiences its worst year in recent memory, traders have told Maktoob Business.
Traders said sales have been hit by a triple whammy of high gold prices, falling tourist numbers and rock-bottom consumer confidence caused by the global economic downturn.
“This is the worst time for gold I’ve seen in the eight years I’ve been here,” said a sales manager at one store in Dubai’s famous Gold Souq, a popular shopping destination for the thousands of tourists lured by the tax-free jewellery.
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Traders said sales have been hit by a triple whammy of high gold prices, falling tourist numbers and rock-bottom consumer confidence caused by the global economic downturn.
“This is the worst time for gold I’ve seen in the eight years I’ve been here,” said a sales manager at one store in Dubai’s famous Gold Souq, a popular shopping destination for the thousands of tourists lured by the tax-free jewellery.
Qatar rents headed for crash
Housing rents in Doha are heading for a crash due to an expected oversupply, Qatari newspaper the Peninsula reported on Monday.
There are already 15,000 apartments ready for leasing but landlords are unable to find tenants, the daily reported, citing Nasser Mohamed al-Mansoory, chief executive of property investment group Qatar Oman Investment Co.
The Peninsula said Qatar’s population has dropped to 1.6 million from 1.9 million due to job losses in the economic downturn.
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There are already 15,000 apartments ready for leasing but landlords are unable to find tenants, the daily reported, citing Nasser Mohamed al-Mansoory, chief executive of property investment group Qatar Oman Investment Co.
The Peninsula said Qatar’s population has dropped to 1.6 million from 1.9 million due to job losses in the economic downturn.
UAE's Aabar to make cars in Algeria
Aabar, which is controlled by the Abu Dhabi government, and MAN Ferrostaal will set up a network of vehicle and engine manufacturing plants across Algeria, with assembly expected to start in 2010.
"The products which have been identified for potential manufacturing include Sprinter, Unimog, G-Type and other four wheel drive vehicles and engines," the company said in an e-mailed statement on Monday.
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Hydra suffers 20% property investor default
About one in five investors in Hydra Properties, an Abu Dhabi-based developer, is behind with their payments, the company said on Sunday.
Developers across the country have been reporting higher default rates in the wake of the property downturn. Some buyers are having trouble affording their purchases, while others simply want out of their obligations because prices have dropped precipitously and sales are slow.
“It looks like they are having problems with financing,” Matar al Shamisi, the deputy commercial director of the company, said of the buyers in default.
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Developers across the country have been reporting higher default rates in the wake of the property downturn. Some buyers are having trouble affording their purchases, while others simply want out of their obligations because prices have dropped precipitously and sales are slow.
“It looks like they are having problems with financing,” Matar al Shamisi, the deputy commercial director of the company, said of the buyers in default.
IFA is ‘very happy’ with latest year even as latest earnings fall 17.6%
Kuwait’s IFA Hotels and Resorts (IFAHR) cited “a challenging year” as the reason for a 17.6 per cent fall in earnings.
The hotel and tourism resort developer, which has formed partnerships with companies such as Kingdom Hotel Investments (KHI) and Nakheel on projects, saw net profits fall to 30.8 million Kuwait dinars (Dh394.4m) for the financial year that ended on June 30, down from 37.4m dinars the previous year.
The latest period “was no doubt a challenging year for many companies around the world”, said Ibrahim al Therban, the chairman of IFAHR.
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The hotel and tourism resort developer, which has formed partnerships with companies such as Kingdom Hotel Investments (KHI) and Nakheel on projects, saw net profits fall to 30.8 million Kuwait dinars (Dh394.4m) for the financial year that ended on June 30, down from 37.4m dinars the previous year.
The latest period “was no doubt a challenging year for many companies around the world”, said Ibrahim al Therban, the chairman of IFAHR.
Court extends Kuwaiti’s assets freeze
A US court has extended a temporary freeze on the assets of a Kuwaiti businessman who was found dead two weeks ago after being accused of planting false stories about takeovers of US companies.
A US district court judge in New York has granted a revised asset freeze against Hazem Khalid al Braikan, who was found dead in an apparent suicide at his home in Kuwait last month.
Mr al Braikan died just days after the US Securities and Exchange Commission (SEC) filed the stock-promotion suit against him but the case is continuing despite his death.
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A US district court judge in New York has granted a revised asset freeze against Hazem Khalid al Braikan, who was found dead in an apparent suicide at his home in Kuwait last month.
Mr al Braikan died just days after the US Securities and Exchange Commission (SEC) filed the stock-promotion suit against him but the case is continuing despite his death.
EFG Hermes revises upward Gulf macro economic forecasts
Gulf economies are expected to continue their expansion as a recovery in the price of oil boosts revenue, says EFG-Hermes.
“The strengthening in the oil price will be extremely positive for the hydrocarbon-dependent GCC countries, which will see high oil revenues,” the bank said in a research report released Sunday. “We have revised upward our GCC macro forecasts in line with the changes in our oil price forecasts.”
Saudi Arabia’s fiscal surplus will amount to about 0.6% of its gross domestic product this year compared with an earlier deficit forecast of 4.8%, EFG-Hermes said. Kuwait, Qatar and the United Arab Emirates are all expected to post fiscal surpluses with crude prices averaging US$50 a barrel this year.
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“The strengthening in the oil price will be extremely positive for the hydrocarbon-dependent GCC countries, which will see high oil revenues,” the bank said in a research report released Sunday. “We have revised upward our GCC macro forecasts in line with the changes in our oil price forecasts.”
Saudi Arabia’s fiscal surplus will amount to about 0.6% of its gross domestic product this year compared with an earlier deficit forecast of 4.8%, EFG-Hermes said. Kuwait, Qatar and the United Arab Emirates are all expected to post fiscal surpluses with crude prices averaging US$50 a barrel this year.
Patchi chocolatiers plan float
Patchi, the family-owned Lebanese chocolate chain, is planning stock listings in Dubai and London to help fund its global expansion, which could include a line of cafés in addition to its chocolate shops.
The group, which is wholly owned by Nizar Choucair, its founder and chairman, has hired financial advisers for a primary listing in Dubai and a secondary listing in London. Up to 49 per cent of the company would be floated.
A listing had been delayed by the recession, said Mazin Obeidi, executive general manager of Patchi.
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The group, which is wholly owned by Nizar Choucair, its founder and chairman, has hired financial advisers for a primary listing in Dubai and a secondary listing in London. Up to 49 per cent of the company would be floated.
A listing had been delayed by the recession, said Mazin Obeidi, executive general manager of Patchi.
Saudi's Kingdom Holding investment value up
Saudi's Kingdom Holding Co (KHC), run by the billionaire Prince Alwaleed bin Talal, said Sunday the value of its available-for-sale investments increased 8.7 percent to 4.89 billion Saudi riyals ($1.3 billion) at the end of July from a month earlier as markets globally strengthened.
Unrealized losses decreased to 16.6 billion riyals at the end of July from 17 billion riyals at the end of June, Kingdom said in a statement on the Saudi bourse website.
The conglomerate's net profit plunged 82.8 percent to 92.1 million riyals in the second quarter compared with a year earlier.
Kingdom said the decline was due to lower dividend payments on its investments and a drop in operating profits from the hotels it owns and manages.
Kingdom Holding shares closed Sunday down 1 percent at 4.60 riyals.END
Unrealized losses decreased to 16.6 billion riyals at the end of July from 17 billion riyals at the end of June, Kingdom said in a statement on the Saudi bourse website.
The conglomerate's net profit plunged 82.8 percent to 92.1 million riyals in the second quarter compared with a year earlier.
Kingdom said the decline was due to lower dividend payments on its investments and a drop in operating profits from the hotels it owns and manages.
Kingdom Holding shares closed Sunday down 1 percent at 4.60 riyals.END