#GCC and #MiddleEast Finance News: 4 Sept 2009

Friday 4 September 2009

UAE is able to ride over world financial crisis : Mohammed

Vice President and Prime Minister of the UAE and Ruler of Dubai H. H. Sheikh Mohammed bin Rashid Al Maktoum has called on CEOs and owners of companies operating in the UAE to look forward toward a future that promises action, confidence and firm will of change.

'' Both public and private sectors must shun the will of imposing the status quo policy and adhere to the will of change for the better. Public-private sector partnership is crucial to reach this goal, Sheikh Mohammed said as he welcomed yesterday at Zabeel Palace CEOs of Arab and foreign economic, financial and technological companies along with a group of prominent investors and businessmen.

They paid a courtesy call on the Vice President to extend best wishes for good health and happiness to him and more progress to the UAE on the occasion of Ramadan.

UAE's NBAD bank sells $850 mln 5-yr bonds

National Bank of Abu Dhabi NBAD.AD, the United Arab Emirates' second largest lender by assets, said on Friday it had sold $850 million five-year bonds, the first dollar international benchmark sale by a Gulf lender since 2007.

The bond was priced at 99.717 with a 4.5 percent semi-annual fixed coupon to yield 228 basis points over U.S. treasuries, the bank said in a statement.

The order book was oversubscribed 4.8 times with 284 orders and investor distribution was diversified with 71 percent of the paper placed outside the Middle East and North Africa region.

Research and Markets: An Essential Report on the the Booming Retail Sector in UAE (Cost of 85 page report Euro845)

Research and Markets
(http://www.researchandmarkets.com/research/639e0b/booming_retail_sec) has
announced the addition of the "Booming Retail Sector in UAE" report to their
offering.

Retail is one of the fastest growing industries in the United Arab Emirates
(UAE). In recent years, UAE has emerged as one of the leading countries in the
world providing the most conducive retail environment. In fact, UAE is the
fourth most attractive destination for retail after India, Russia and China,
thanks to its rapid economic growth, rising purchasing power, favorable policy
framework, and growing consumer spending.

Despite recession, the retail sector in the UAE continues to grow rapidly with
an expected CAGR of over 12% to be achieved during 2009-2013. Factors like
increasing household consumption and booming service industry (including
tourism, banking and trading sectors) will drive the future growth of the retail
sector. Also, the modern shopping malls anchoring state-of-the-art hypermarkets
and various shopping events like Dubai Shopping Festival make the country a more
lucrative destination for retail industry, says "Booming Retail Sector in UAE",
a market research report by RNCOS.

The per capita gross leasable area in UAE is growing at a blistering pace and
surpassed 1 Sq Meter in 2008. This has resulted in significant surge in the
country's retail space and uplifted the retail spending in the country. The
trend is forecasted to continue in future as well, helping UAE to emerge as one
of the dense retail markets in the world.

Realizing its potential as a promising retail outfit, a number of large
international retailers are heading to UAE. Sophisticated retail infrastructure
base and oil-based wealth have further attracted the foreign retailers towards
the country. This is not only boosting the retail environment in the country but
also generating immense employment opportunities for the country's population.

Our report "Booming Retail Sector in UAE" provides extensive research and
rational analysis on various aspects of the UAE retail industry and underlines
the key issues related to the industry. The conceptual treatment is provided for
all relevant industry segments to facilitate the deep and informative
understanding of the market. The research also studies the behavior of the UAE's
consumers with respect to their purchasing power, spending pattern, and
inclination towards domestic and foreign brands. The future growth areas
discussed in the report helps to analyze the emerging market segments for
players.

Key Topics Covered:

Analyst View

Macroeconomic View of Arab World

UAE - Economic Analysis and Driving Forces

* Real Estate
* Travel, Tourism and Transport
* Shopping Events
* Dubai Duty Free (DDF)
* Population
* Household Consumption
* Consumer Confidence

Market Performance

* Retail Sector Analysis
* Retail Formats

New Vistas

* Direct Sales
* Advertising Market
* Online Retailing
* RFID in Retail
* CCTV in Retail
* Credit Card Market

Industry Roadblocks

* Inflation
* Staffing
* Counterfeit Products
* Tourism-dependent Retail

Companies Mentioned:

* Carrefour
* EMKE Group
* Consumer Co-op UAE
* Spinneys Dubai LLC
* T Choithram & Sons LLC
* Al Azizia Panda United Inc.

For more information visit
http://www.researchandmarkets.com/research/639e0b/booming_retail_sec

Tadawul Monthly Investment Report - September 2009

Taqa buys four oil blocks from Shell, Exxon

The Abu Dhabi National Energy Co (Taqa) has bought four exploration blocks in Britain's North Sea from Royal Dutch Shell and Exxon Mobil, Taqa's UK subsidiary said in a statement Thursday.

Taqa has amassed over $2 billion (Dh7.34 billion) of North Sea assets in the last three years as part of an aggressive global expansion. The company, 75 per cent owned by the Abu Dhabi government, is an investment vehicle used to spend state oil revenues.

UK unit Taqa Bratani gave no value in the statement for the purchase of the blocks, which were near North Sea assets that Taqa had previously acquired for $631 million in 2008 from Shell and Exxon.

Thais to weed out farm investment

Gulf investors may be forced to reconsider plans to acquire agricultural land in Thailand following moves there that could curb foreign investment in the sector.

Thailand’s agriculture ministry is drafting legislation that would impose new zoning regulations to prevent farmland from being switched to new purposes, such as exporting to specific countries.

“We have finished drafting,” Nikorn Jamnong, an adviser to the agriculture minister, told Reuters. “The law should be endorsed by the house of representatives very soon, as the government has a very clear policy that farm businesses are not allowed to be owned by foreigners.”

Time to reflect on the trouble with Tripoli

As Libya celebrates the 40th anniversary of Colonel Muammer Qadafi’s coup after welcoming the Lockerbie bomber back home, some western leaders may be rethinking their commercial ties with the maverick Mediterranean state.

This week’s big party in Tripoli was attended by neither western heads of state nor the Libyan people, although it was ostensibly staged for the benefit of both.

World leaders snubbed invitations in irritation over the hero’s welcome accorded Abdelbasset al Megrahi, the former Libyan agent convicted of blowing the plane from the sky, after his release from prison in Scotland on compassionate grounds. Locals were kept away from the lavish parade and stageshow honouring Mr Qadafi because of security concerns.

Banks advised to protect capital

Banks should resist lowering their capital adequacy ratios after the relaxation of Central Bank rules because of continuing economic uncertainty, analysts say.

This week, the regulator told banks they could significantly lower their capital-adequacy ratios, or the capital they hold to back up their lending, in the government’s latest attempt to increase liquidity within the banking system and help stimulate lending.

“Those quotas should not be lowered right now in the middle of a weaker economy and as non-performing loans are still going up,” said Deepak Tolani, analyst at Al Mal Capital. Freeing up reserves may spur lending but it would be safer not do it at this time, Mr Tolani said.

News Corp considers price of Rotana stake

Rupert Murdoch’s News Corp is considering paying between US$250 million (Dh918.2m) and $350m for a 20 per cent stake in Prince Alwaleed bin Talal’s Rotana media empire, according to Variety magazine.

The US weekly reported that News Corp and Rotana were meeting in London about the deal, and had been in talks since the 2006 Cannes Film Festival.

Executives also met in Cairo this summer to conduct due diligence and try to reach a value on the stake News Corp planned to take in Rotana.

US bank must answer fraud charges

The financial services giant Morgan Stanley and two credit rating agencies have been told by a US court they must defend themselves against fraud charges brought by Abu Dhabi Commercial Bank (ADCB) over its ill-fated investments in subprime mortgages.

The ADCB alleged Morgan Stanley, Moody’s Investors Services and Standard & Poor’s masked the risks of an investment linked to subprime mortgages that eventually collapsed.

A US federal judge in New York rejected on Wednesday attempts by the three defendants to dismiss fraud claims brought by the ADCB and another plaintiff in the case, King County based in Washington state.

Giants eye Guggenheim bid

Three of the world’s biggest builders are planning to compete for the contract to build the Guggenheim Abu Dhabi Museum, as the emirate gears up to become a cultural centre of the Middle East.

Balfour Beatty of Britain, Murray and Roberts of South Africa and Leighton of Australia are considering bids to build the high-profile contract, which will be worth about US$750 million (Dh2.75 billion), senior officials said.

They may face competition from local rivals including Arabtec of Dubai and National Projects and Construction (NPC) of Abu Dhabi.

Oil groups face Libya ultimatum

Libya will require foreign companies to appoint Libyan chief executives to their joint ventures in a move that will be seen as further step in the creeping nationalisation of the country's oil industry.

A government directive instructs companies with foreign participation to appoint Libyan heads, a foreign oil executive and a western diplomat told the Financial Times. All foreign companies, including those which are involved in oil production, operate as joint ventures.

The move will raise concerns among foreign investors. "This is not good for the Libyan economy," said the western executive. "Companies which are here will stay, but if you are still deciding, you will think twice."