International sanctions designed to stop Iran's disputed nuclear programme would only really bite if its other big Asian buyers follow India's lead and bow to U.S. pressure to cut the flow of oil money to Tehran.
The Islamic Republic will forego around $45 million a day or a total of $1.4 billion in August -- if it halts around 400,000 barrels per day (bpd) of crude exports to India -- where refiners have run up a $5 billion debt since India's central bank blocked payments to Iran after pressure from Washington.
With Iranian heavy crude selling for around $40 more a barrel than a year ago, Iran's 2 million bpd plus sales to other customers should make up for the Indian export dip -- especially as Iran is likely to store the oil and to sell it later.
Wednesday 27 July 2011
MENA stock markets close - July 27, 2011
| Exchange | Status | Index | Change | ||||
 | TASI (Saudi Stock Market) | 6445.17 | -0.49% | ||||
 | DFM (Dubai Financial Market) | 1507.48 | -0.28% | ||||
| ADX (Abudhabi Securities Exchange) | 2641.41 | -1.22% | ||||
 | KSE (Kuwait Stock Exchange) | 6065 | -0.40% | ||||
 | BSE (Bahrain Stock Exchange) | 1304.99 | 0.39% | ||||
 | MSM (Muscat Securities Market) | 5924.83 | -0.36% | ||||
 | QE (Qatar Exchange) | 8374.78 | -0.31% | ||||
 | LSE (Beirut Stock Exchange) | 1333.84 | -0.21% | ||||
 | EGX 30 (Egypt Exchange) | 5049.05 | -0.73% | ||||
 | ASE (Amman Stock Exchange) | 2094.34 | -0.26% | ||||
 | TUNINDEX (Tunisia Stock Exchange) | 4422.97 | -0.14% | ||||
 | CB (Casablanca Stock Exchange) | 11196.8 | -0.40% | ||||
 | PSE (Palestine Securities Exchange) | 497.96 | 0.25% | ||||
Clouds over lending in UAE begin to lift - FT.com
The lending environment in the United Arab Emirates has improved markedly since the beginning of the year, as the interest rate that banks charge each other to borrow has been brought down.
The gap between the UAE three-month interbank rate and the US three-month interbank rate has narrowed to about 124 basis points, the smallest since 2008, according to Bloomberg data. That shows liquidity is improving and banks are in a better shape to lend. This is welcome news for borrowers after the UAE suffered a severe credit crunch .
The interbank rate matters because banks commonly use it as a benchmark to price their deposit and lending rates.
The gap between the UAE three-month interbank rate and the US three-month interbank rate has narrowed to about 124 basis points, the smallest since 2008, according to Bloomberg data. That shows liquidity is improving and banks are in a better shape to lend. This is welcome news for borrowers after the UAE suffered a severe credit crunch .
The interbank rate matters because banks commonly use it as a benchmark to price their deposit and lending rates.
Commercial Bank of Qatar Q2 profit jumps 24.9 pct | Reuters
Commercial Bank of Qatar (CBQ) reported a 24.9 percent jump in second-quarter profit on Wednesday, beating analysts' forecasts on increased lending and customer deposits.
The Gulf state's third largest lender by market value had net profit of 509.6 million riyals ($139.9 million), according to Reuters calculations. That was up from 408 million riyals in the same period last year.
Analysts polled by Reuters forecast an average quarterly profit of 419.72 million riyals.
The Gulf state's third largest lender by market value had net profit of 509.6 million riyals ($139.9 million), according to Reuters calculations. That was up from 408 million riyals in the same period last year.
Analysts polled by Reuters forecast an average quarterly profit of 419.72 million riyals.
Abu Dhabi Shares Retreat Most Since March on Etisalat, Europe - Bloomberg
Abu Dhabi’s benchmark index fell the most in almost five months as Emirates Telecommunications Corp. declined amid concern its smaller rival is increasing market share and European stocks retreated.
Etisalat, as Emirates Telecommunications Corp. is known, dropped to the lowest level in almost two months. Construction- supplies maker Arkan Building Materials Co. (ARKAN) lost for the third time in four days. Abu Dhabi’s ADX General Index (ADSMI) fell 1.2 percent, the most since March 2, to 2,641.41 at the 2:00 p.m. close in the emirate. The measure has dropped 2.3 percent this month. The Bloomberg GCC 200 Index (BGCC200), which tracks the biggest 200 companies in the Persian Gulf region, declined 0.5 percent at 2:11 p.m. in Riyadh.
The shares of Etisalat have tumbled 6.8 percent since it said July 18 that second-quarter profit declined 15 percent, missing analysts’ estimates. The United Arab Emirates’ second phone company, Emirates Integrated Telecommunications Co. (DU), or Du, is forecast to report a 54 percent jump in second-quarter profit next month, according to the mean estimate of three analysts on Bloomberg. Du has fallen 0.3 percent since Etisalat’s earnings.
Etisalat, as Emirates Telecommunications Corp. is known, dropped to the lowest level in almost two months. Construction- supplies maker Arkan Building Materials Co. (ARKAN) lost for the third time in four days. Abu Dhabi’s ADX General Index (ADSMI) fell 1.2 percent, the most since March 2, to 2,641.41 at the 2:00 p.m. close in the emirate. The measure has dropped 2.3 percent this month. The Bloomberg GCC 200 Index (BGCC200), which tracks the biggest 200 companies in the Persian Gulf region, declined 0.5 percent at 2:11 p.m. in Riyadh.
The shares of Etisalat have tumbled 6.8 percent since it said July 18 that second-quarter profit declined 15 percent, missing analysts’ estimates. The United Arab Emirates’ second phone company, Emirates Integrated Telecommunications Co. (DU), or Du, is forecast to report a 54 percent jump in second-quarter profit next month, according to the mean estimate of three analysts on Bloomberg. Du has fallen 0.3 percent since Etisalat’s earnings.
DP World Plans New London Deepwater Port - Bloomberg
DP World Ltd. (DPW) is preparing to spend 1.5 billion pounds ($2.5 billion) on Britain’s first deepwater port in at least 20 years at a time when the economy has yet to recover from the last recession.
The world’s fourth-largest port operator is dredging about 106 million cubic feet to accommodate the world’s biggest ships at London Gateway, about 25 miles (40 kilometers) east of the capital. It’s designed to win clients by combining a harbor terminal with an onsite distribution center, luring wholesalers and retailers away from older ports such as Hutchison Whampoa Ltd. (13)’s Port of Felixstowe, about 50 miles northeast.
DP World is pinning the investment on Britain’s need for more modern facilities that will help companies save on transport costs at a time when U.K. economic growth is set to trail global expansion. If completed as planned, London Gateway would expand the U.K.’s capacity for ultra-large container ships and become Europe’s sixth biggest port, based on 2009 rankings.
The world’s fourth-largest port operator is dredging about 106 million cubic feet to accommodate the world’s biggest ships at London Gateway, about 25 miles (40 kilometers) east of the capital. It’s designed to win clients by combining a harbor terminal with an onsite distribution center, luring wholesalers and retailers away from older ports such as Hutchison Whampoa Ltd. (13)’s Port of Felixstowe, about 50 miles northeast.
DP World is pinning the investment on Britain’s need for more modern facilities that will help companies save on transport costs at a time when U.K. economic growth is set to trail global expansion. If completed as planned, London Gateway would expand the U.K.’s capacity for ultra-large container ships and become Europe’s sixth biggest port, based on 2009 rankings.
Reasons behind Abu Dhabi's growth - Maktoob News
Abu Dhabi's nominal gross domestic product jumped 15.9 percent in 2010, data showed on Tuesday, as the capital of the United Arab Emirates, which accounts for most of the country's oil wealth, rebounded from the global financial crisis supported by higher oil prices and growth in the non-oil sectors.
Nominal GDP of 620.2 billion dirhams ($168.9 billion) for 2010, was up from 546.5 billion in 2009 and 666.7 billion dirhams in 2008, according to data from the Statistics Centre Abu Dhabi.
It did not give real growth in GDP for Abu Dhabi.
Nominal GDP of 620.2 billion dirhams ($168.9 billion) for 2010, was up from 546.5 billion in 2009 and 666.7 billion dirhams in 2008, according to data from the Statistics Centre Abu Dhabi.
It did not give real growth in GDP for Abu Dhabi.
Sharjah decides to open up - looking at JVs for foreign investment - Emirates 24/7
Sharjah is open to idea of forming joint ventures (JVs) and creating public private partnerships (PPP) with investors in an effort to attract more foreign direct investment into the emirate, a senior government official has revealed.
“One of our mandates is to attract investors to Sharjah. We are attracting them to the sectors, which as per our studies, are going to offer a good return to them… it could be a joint venture, build, operate and transfer, or public private partnership model… we are open to all of it,” Marwan Jasem Al Sarkal, chief executive officer, Sharjah Investment and Development Authority (Shurooq), told Emirates 24|7.
“We want to make sure that the project is feasible from the financial point of view and will add value to the emirate. We are looking at projects, which are going to make a change in Sharjah’s economy and will provide jobs for Emiratis.”
“One of our mandates is to attract investors to Sharjah. We are attracting them to the sectors, which as per our studies, are going to offer a good return to them… it could be a joint venture, build, operate and transfer, or public private partnership model… we are open to all of it,” Marwan Jasem Al Sarkal, chief executive officer, Sharjah Investment and Development Authority (Shurooq), told Emirates 24|7.
“We want to make sure that the project is feasible from the financial point of view and will add value to the emirate. We are looking at projects, which are going to make a change in Sharjah’s economy and will provide jobs for Emiratis.”
gulfnews : US listing on DP World radar even as shares fall in London
DP World has not ruled out a US listing and continues to monitor the American equity markets very closely, the company's chief executive said Tuesday.
The Dubai-based ports operator, which reported throughput growth of 11 per cent year-on-year for the first six months of 2011, has seen its share price plunge 10 per cent since listing on the London Stock Exchange (LSE) on June 1.
However, Mohammad Sharaf said the company was assessing all the options available in terms of attracting more investors. 'When it is the right market at the right time, we will be there,' he said. 'We are not looked at fairly across our peers; we are the only global operator [listed] across two exchanges,' he added.
The Dubai-based ports operator, which reported throughput growth of 11 per cent year-on-year for the first six months of 2011, has seen its share price plunge 10 per cent since listing on the London Stock Exchange (LSE) on June 1.
However, Mohammad Sharaf said the company was assessing all the options available in terms of attracting more investors. 'When it is the right market at the right time, we will be there,' he said. 'We are not looked at fairly across our peers; we are the only global operator [listed] across two exchanges,' he added.
gulfnews : Mashreq reports 22% increase in net profits
Mashreq, one of UAE's largest private sector lenders, Tuesday reported a 22 per cent increase in its net profit for the first half of 2011 to Dh551.6 million compared to Dh453 million for the same period in 2010, on an operating income of Dh2.2 billion.
The bank reported a decline in provisions for loan losses by 29 per cent to Dh637 million. The efficiency ratio remained healthy at 42 per cent.
Mashreq's total assets slightly increased to Dh85 billion at the end of the first half compared to Dh84.8 billion as at December 31, 2010.
The bank reported a decline in provisions for loan losses by 29 per cent to Dh637 million. The efficiency ratio remained healthy at 42 per cent.
Mashreq's total assets slightly increased to Dh85 billion at the end of the first half compared to Dh84.8 billion as at December 31, 2010.
gulfnews : Abu Dhabi's GDP growth accelerates
Abu Dhabi's economy witnessed 15.9 per cent growth last year, according to a report published by the Statistics Centre Abu Dhabi (Scad) Tuesday.
The report, which is from the Statistical Yearbook of the Emirate of Abu Dhabi 2011, also said that a number of indicators show the capital's economy has overcome the repercussions of global financial downturn.
The emirate's economy posted record gains of Dh85 billion last year, which saw the GDP at current prices grow to Dh620.2 billion, up 15.9 per cent from Dh546.5 billion, it said.
The report, which is from the Statistical Yearbook of the Emirate of Abu Dhabi 2011, also said that a number of indicators show the capital's economy has overcome the repercussions of global financial downturn.
The emirate's economy posted record gains of Dh85 billion last year, which saw the GDP at current prices grow to Dh620.2 billion, up 15.9 per cent from Dh546.5 billion, it said.
Abraaj Capital says no longer exploring Citadel Capital deal - bi-me.com
In response to market speculation, Abraaj Capital confirmed today that following a review, it is no longer currently exploring a transaction with Citadel Capital, a private equity firm based in Cairo and listed on the Egyptian Exchange.
This does not preclude Abraaj Capital from exploring such a transaction in the future should performance, deal terms and/or circumstances change.
Abraaj Capital confirmed that it had been in exploratory discussions regarding a potential transaction with Citadel Capital senior management for the past two months.
This does not preclude Abraaj Capital from exploring such a transaction in the future should performance, deal terms and/or circumstances change.
Abraaj Capital confirmed that it had been in exploratory discussions regarding a potential transaction with Citadel Capital senior management for the past two months.
Saudis step in as Iranian oil dries up - Hindustan Times
Saudi Arabia has agreed to sell 3 million barrels of additional crude oil to India next month to make up for supply cut by Iran over unpaid bills, touching $7 billion. Saudi Aramco, the national oil firm of Saudi Arabia, will supply one million barrels each to Essar Oil, Bharat Petroleum and Hindustan Petroleum in August while Mangalore Refinery, too, is in talks to contract similar volumes, officials said on Tuesday.
Iran, which had towards the end of June warned of stopping exports to India unless dues are cleared, has not informed refiners of crude shipments for the month of August.
The additional supplies committed by Saudi Arabia is roughly one-third of what India imports from Iran, officials said, adding that more crude was being contracted from the UAE, Iraq and Kuwait as well as Latin America. Oil exports from Iran make up for about 12% of India’s oil needs.
Iran, which had towards the end of June warned of stopping exports to India unless dues are cleared, has not informed refiners of crude shipments for the month of August.
The additional supplies committed by Saudi Arabia is roughly one-third of what India imports from Iran, officials said, adding that more crude was being contracted from the UAE, Iraq and Kuwait as well as Latin America. Oil exports from Iran make up for about 12% of India’s oil needs.
Kuwait Bank Lending Subdued on Government Spending, Bad Loans: Arab Credit - Bloomberg
The pace of Kuwaiti bank lending is slowing this year as delays on government projects and loan defaults by local investment companies hamper demand for debt in OPEC’s fifth-biggest oil producer.
Loans to the private sector and banks’ investments in bonds in Kuwait grew 0.3 percent in the first six months of 2011, after a 1.9 percent increase in 2010, according to data on the website of the nation’s central bank. Lending grew faster in neighboring Saudi Arabia, the biggest Arab economy, and in the United Arab Emirates and Qatar, as the region recovers from the impact of the global credit crunch.
Lawmakers in the Persian Gulf nation have sought to question Prime Minister Sheikh Nasser Al-Mohammed Al-Sabeh over delays in the implementation of a 30.8 billion dinar ($113 billion), four-year plan approved in February last year aimed at modernizing and restructuring Kuwait’s oil-based economy. Some of the country’s nearly 100 investment companies defaulted amid the credit crisis after the value of their assets collapsed and frozen debt markets prevented them from raising new loans.
Loans to the private sector and banks’ investments in bonds in Kuwait grew 0.3 percent in the first six months of 2011, after a 1.9 percent increase in 2010, according to data on the website of the nation’s central bank. Lending grew faster in neighboring Saudi Arabia, the biggest Arab economy, and in the United Arab Emirates and Qatar, as the region recovers from the impact of the global credit crunch.
Lawmakers in the Persian Gulf nation have sought to question Prime Minister Sheikh Nasser Al-Mohammed Al-Sabeh over delays in the implementation of a 30.8 billion dinar ($113 billion), four-year plan approved in February last year aimed at modernizing and restructuring Kuwait’s oil-based economy. Some of the country’s nearly 100 investment companies defaulted amid the credit crisis after the value of their assets collapsed and frozen debt markets prevented them from raising new loans.
UAE money supply soars 12.2% in June
The UAE money supply aggregate M3, an indicator of future inflation rose 12.2 per cent on the corresponding month a year ago, latest data posted on Central Bank website showed on Tuesday.
But for the second consecutive month, M3 money supply dropped 0.7 per cent in June versus May, to record Dh1.06 trillion.
M2 money supply, which includes time and savings deposits, increased 12.5 percent from the previous year, the central bank said. M1 supply growth, the narrowest measure, climbed 13 percent. M3 money supply includes demand deposits and currency outside banks.
But for the second consecutive month, M3 money supply dropped 0.7 per cent in June versus May, to record Dh1.06 trillion.
M2 money supply, which includes time and savings deposits, increased 12.5 percent from the previous year, the central bank said. M1 supply growth, the narrowest measure, climbed 13 percent. M3 money supply includes demand deposits and currency outside banks.