Boulder Steel To Withdraw Securities From NASDAQ Dubai

Australia's Boulder Steel Ltd. will withdraw its securities from secondary listing on the NASDAQ Dubai bourse, according to a statement on its Web site.

"The company has decided to withdraw its securities from NASDAQ Dubai because of low turnover on that exchange and the compliance costs of maintaining the listing," Boulder Steel Ltd. said in a statement.

The securities will be withdrawn in two months, according to the note posted late last week on the NASDAQ Dubai Web site.

CORRECT:Abraaj Talks To Buy Dubai DP World Stake Collapse - Bankers

Dubai-based private equity firm Abraaj Capital's five-month-old talks to buy a stake in Nasdaq Dubai-listed DP World may have collapsed after both firms failed to agree terms, bankers familiar with the deal said Monday.

"The deal isn't happening," one of the bankers working on the transaction told Zawya Dow Jones. "There were lots of obstacles that minimized the chances of success," he added without providing further details.

Another banker close to the talks said the deal was off because DP World, which is majority-owned by Dubai World, decided to pull out of the negotiations.

Gulf Stock Valuations “More Attractive,” Credit Suisse Says - Bloomberg.com

Gulf Stock Valuations “More Attractive,” Credit Suisse Says - Bloomberg.com

UAE's Etisalat bids for Millicom Sri Lanka

Emirates Telecommunications Corp ETEL.AD (Etisalat) said on Monday it had submitted a binding offer on Sept. 4 to buy a 100 percent share in Millicom, Sri Lanka.

The statement on Abu Dhabi's bourse website did not give further details and the United Arab Emirates company, which operates in 18 countries, was not immediately available for comment.

The offer for Millicom's Sri Lankan operations follows Etisalat's failed bid for a stake in Morocco's Meditel and underlines the firm's determination to expand into emerging markets beyond the Gulf Arab region, an analyst said.

Iran 'exports gas to UAE for 25 years'

A senior Iranian energy official has announced that Iran has signed a contract with a foreign company to export gas to the United Arab Emirates (UAE) for 25 years.

"According to the agreement, the foreign company is to develop an Iranian gas field in the Persian Gulf and export the natural gas to the UAE for 25 years," the Managing Director of the National Iranian Gas Export Company (NIGEC) Reza Kasaeizadeh said Sunday.

He noted that based on the agreement the total amount of gas produced will be three billion c/m.

MUST READ: THE GHOST FLEET OF THE RECESSION « Most Recent Stories « THE PRAGMATIC CAPITALIST

MUST READ: THE GHOST FLEET OF THE RECESSION « Most Recent Stories « THE PRAGMATIC CAPITALIST

Dubai Investment Fund Istithmar: Selected Deals Since 2004

Dubai investment fund Istithmar World targeted businesses in a $27 billion spending spree. Below are selected acquisitions, according to the Monitor-FEEM SWF transaction database, in millions of U.S. dollars.

Target Country Year Deal Size Kerzner International Ltd. Bahamas 2004 227.8 Yacht Haven Grande Caribbean 2005 - SpiceJet Ltd. India 2005 12.5 Al Burj Real Estate Ltd. UAE 2005 1,900 Serco Gulf UAE 2005 - One Trafalgar Square London UK 2005 273 Island Global Yachting US 2005 - International Hotel Invest Malta 2006 237 Victoria & Alfred Waterfront South Africa 2006 1105.8 Bumrungrad Hospital PCL Thailand 2006 27.7 Raimon Land PCL Thailand 2006 56.8 Atlantis, The Palm UAE 2006 1,500 Insure Direct LLC UAE 2006 - Adelphi UK 2006 594.1 Delancey UK 2006 406 easyHotel UK 2006 - Inchcape Shipping Services UK 2006 289.4 Standard Chartered Plc UK 2006 1,000 280 Park Ave, NY US 2006 1,200 450 Lexington Avenue US 2006 600 Hotel Washington LLC US 2006 150 Knickerbocker Hotel, NY US 2006 300 Loehmanns Holdings Inc US 2006 300 Mandarin Oriental New York US 2006 340 Perella Weinberg Partners US 2006 100 W Hotel Union Square, NY US 2006 285 Hans Energy Company Ltd. Hong Kong 2007 52.1 HM Rivergroup PLC Ireland 2007 100 Amburaya Resorts Thailand 2007 - Bangkok Hotel Thailand 2007 104 Cunard Line-QE2 Cruise Ship UK 2007 117.7 Marcol House UK 2007 69.4 Barneys New York Inc. US 2007 942.3 GLG Partners US 2007 - MGM Mirage US 2007 5,200 Time Warner US 2007 2,000 Cirque du Soleil Canada 2008 - ESPA International Ltd. UK 2008 - Grand Avenue project US 2008 75 Gulf Stream Asset Management US 2008 -

Dubai’s Trail of Dud Deals Shows Sovereign Wealth Gone Awry

Dubai investment firm Istithmar World may be the first sovereign wealth fund to liquidate after a $27 billion spending spree financed largely with borrowed money, people briefed on the matter said.

Unlike government-controlled funds in Kuwait and Abu Dhabi, flush with cash from oil production, or in China, backed by export earnings, Istithmar fueled purchases such as the takeover of Barneys New York by borrowing as much as 90 percent of the money, the people said. Istithmar’s parent, Dubai World, tapped Middle Eastern and European banks including Barclays Plc, Royal Bank of Scotland Group Plc and Deutsche Bank AG, leaving those three with combined debt holdings of at least $1.5 billion, the people said.

“Dubai sovereign wealth funds are leveraged like private equity funds,” said Rachel Ziemba, a senior analyst covering sovereign wealth funds at Roubini Global Economics, a New York- based economic research firm. “Istithmar belongs to a parent company with a significant amount of debt coming due.”

A Mideast Fund’s Failing Fortunes

Dubai’s once-heralded trophy assets now look more like lead weights. Istithmar World, one of the investment vehicles controlled by the emirate, has a portfolio that was estimated to be worth $9 billion last year. It includes a stash of big Western names, including Cirque du Soleil, Standard Chartered, GLG Partners, Perella Weinberg and Barneys New York. Now they could all be sold as part of a restructuring.

The fund picked up most of its assets at the height of the boom, but the portfolio itself is of mixed quality. Istithmar spent $825 million in 2007 to snap up Barneys, the retailer now on the cusp of bankruptcy. It holds 20 percent of the Canadian acrobatic performance group Cirque du Soleil and stakes of about 3 percent each in Standard Chartered, the global bank; a hedge fund, GLG; and the investment boutique Perella Weinberg. These are still valuable, even if they might be under water.

Istithmar claims to have generated a respectable average 10 percent annual return since its formation in 2003. The fund doesn’t disclose its debts. But even if the fund itself is sound, its parent, Dubai World, one of the emirate’s main holding companies, is certainly short of cash.

GFH plans stock sale to raise paid-up capital by $300m

Gulf Finance House, the Bahrain-based Islamic investment bank, said its shareholders approved a proposal to offer stock to existing shareholders to boost its paid-up capital from $315 million (Dh1.15 billion) to $615m.

The shareholders also approved raising $200m in equity-linked Islamic murabaha financing, according to a company statement on the Dubai bourse yesterday. The proposals come just weeks after the appointment of Ahmed Fahour as Chief Executive Officer and the recent unveiling of a planned strategic partnership between GFH and Macquarie Group.

They include approval for an increase in the bank's authorised share capital from $500m to $1.5bn and equity Murabaha financing of up to $200m, subject to regulatory approvals. Gulf Finance House Chairman Dr Esam Janahi said: "Despite challenges experienced throughout the global economy, we are eager to capitalise on the immediate opportunities created by the downturn. I'm delighted GFH shareholders have recognised the need to back the board as it takes crucial steps towards the ultimate goal of emerging as the world's leading Islamic investment bank."

Prior to the EGM, an ordinary general meeting approved the appointment of GFH's new CEO, Ahmed Fahour, to the board.END

Shuaa suggests a flight to quality this month

The Head of Research and Chief Economist at Shuaa Capital, Dr Mahdi Mattar, explaining the top picks of the firm said:"We have chosen to reduce our defensive exposure in favour of higher beta plays with solid fundamentals." Dubai-based financial services firm has replaced the "highly defensive" Mobily with Abu Dhabi Commercial Bank (ADCB).

"UAE listings remain favourable to us and especially the Abu Dhabi names," said Dr Mattar. "On that note we decided to replace the highly defensive Mobily with ADCB, whose stock, we believe, has been overly punished since the global downturn," he said.

"Lastly, we also decided to remove Dana Gas from our portfolio this month as we do not see any catalyst driving the stock in the short term. Finally, we revisit our exposure to DP World this month after noticing a more positive sentiment on the stock post its first-half results."

Concerns grow over Zain deal

Zain shares continued to trade heavily as concerns mount over the lack of information about the sale of a large stake in the Kuwaiti mobile operator in what would be the GCC’s largest foreign takeover.

Adding to the unease were remarks by the Kuwaiti opposition politician and former speaker of parliament, Ahmad al Saadun who, in a question to the finance minister, said the deal’s lack of transparency could “have negative implications on the Kuwaiti bourse and national economy”.

Zain shares finished trading yesterday at 1.28 Kuwaiti dinars (Dh16.42), down 18 per cent from the previous Sunday, when the company’s chief executive, Saad al Barrak, acknowledged that a stake in the company was in the process of being sold.

Foreigners may get full business ownership

International companies would be allowed to hold 100 per cent ownership of businesses they establish in the UAE under proposed changes to legislation aimed at boosting foreign investment.

Currently, foreigners must have a UAE national as a sponsor and are limited to a maximum 49 per cent ownership of businesses in the Emirates, except in free zones scattered about the country.

The new industry law would open the door for hi-tech firms offering large capital investments to set up operations here as the Government seeks to expand its industrial base and create new jobs.

Algosaibi steps down from Samba group

Samba Financial Group, one of Saudi Arabia's most prestigious lenders, has said that its chairman, Saud bin Abdul Aziz Algosaibi, has stepped down and is no longer a board member.

The bank gave no other details in a statement to the Saudi stock exchange on Saturday. At the end of 2008 the group was the second largest bank in Saudi Arabia, with total assets of SR178.9bn ($D47.6bn) having made SR4.45bn ($1.1bn) in net profits.

Mr Algosaibi and his family have become embroiled in a bitter and public row with Maan al-Sanea, a relative by marriage who owns the Saad Group, a conglomerate with finance and property operations.