Dubai’s default risk dropped five times more than the Middle East average this month as a series of debt repayment agreements showed government-related companies are benefiting from an economic recovery.
The cost of insuring the emirate’s debt for five years retreated 43 basis points in June to 352 on June 19, according to data provider CMA. That compares with an eight basis-point decline in average credit default swaps in the Middle East to 322, while contracts for the Group of 10 nations fell 13 basis points in the period to 152, data compiled by Bloomberg show.
Jebel Ali Free Zone FZE, a business park operator in Dubai under state-run Dubai World, and DIFC Investments LLC are among companies that have refinanced debt. Investors regard these deals as evidence that Dubai, which avoided a default in 2009, is living up to pledges that its companies would repay debt without state help as economic growth accelerates, pushing bond yields to record lows.
Sunday 24 June 2012
MENA stock markets close - June 24, 2012
| Exchange | Status | Index | Change | ||||
 | TASI (Saudi Stock Market) | 6745.36 | -0.43% | ||||
 | DFM (Dubai Financial Market) | 1460.74 | -0.66% | ||||
| ADX (Abudhabi Securities Exchange) | 2480.84 | -1.11% | ||||
 | KSE (Kuwait Stock Exchange) | 5833.98 | -1.15% | ||||
 | BSE (Bahrain Stock Exchange) | 1124.09 | -0.36% | ||||
 | MSM (Muscat Securities Market) | 5655.99 | -0.17% | ||||
 | QE (Qatar Exchange) | 8229.8 | -0.29% | ||||
 | LSE (Beirut Stock Exchange) | 1147.06 | 0.17% | ||||
 | EGX 30 (Egypt Exchange) | 4166.32 | 3.34% | ||||
 | ASE (Amman Stock Exchange) | 1881.17 | -0.03% | ||||
 | TUNINDEX (Tunisia Stock Exchange) | 5019.52 | 0.06% | ||||
 | CB (Casablanca Stock Exchange) | 10034.7 | -0.44% | ||||
 | PSE (Palestine Securities Exchange) | 444.92 | -0.06% | ||||
Exclusive: Lessons for Islamic Finance Expansion – Emirates Airline | alifarabia
Islamic finance has reached it natural market share in certain markets according a recent A.T. Kearney report, hence, an early ‘amber colored flag alert’ on the need for international expansion.
Islamic finance needs to find an example of a model company, ideally from the Muslim world, which has become a global player based upon customer service, unique selling proposition, innovation, demand, and a charismatic leader.
Should it also look to the west, and examine the likes of Google, Apple, Coca Cola or Pepsi, ExxonMobil, etc.? Does it look at the management style of former GE Chairman Jack Welsh or the vision of the late Steve Jobs?
Islamic finance needs to find an example of a model company, ideally from the Muslim world, which has become a global player based upon customer service, unique selling proposition, innovation, demand, and a charismatic leader.
Should it also look to the west, and examine the likes of Google, Apple, Coca Cola or Pepsi, ExxonMobil, etc.? Does it look at the management style of former GE Chairman Jack Welsh or the vision of the late Steve Jobs?
Dear Dubai Real Estate—Get Real. | Kippreport.com
June 24, 2012 3:55 by Priyanka Pradhan
A new survey by Friends Provident International has revealed that real estate is re-emerging in Dubai and investors are returning to the ailing sector. However, other news of debt-ridden Dubai developer, Nakheel, draining swimming pools over a service fee dispute with owners in the esteemed Palm Villas property, throws a wet blanket over the survey’s sunny disposition.
This new survey is part of the steady stream of reports and insights that speak of Dubai’s real estate resurrection. Last week, the Oxford Business Group (OBG) also claimed that the Dubai’s residential sector has “posted solid growth over the past few months.” The recent merger between the two real estate heavyweights, Aldar and Sorouh might also have injected some confidence in industry watchers, as has the report showing profits posted by Nakheel in Q1 of 2012.
A new survey by Friends Provident International has revealed that real estate is re-emerging in Dubai and investors are returning to the ailing sector. However, other news of debt-ridden Dubai developer, Nakheel, draining swimming pools over a service fee dispute with owners in the esteemed Palm Villas property, throws a wet blanket over the survey’s sunny disposition.
This new survey is part of the steady stream of reports and insights that speak of Dubai’s real estate resurrection. Last week, the Oxford Business Group (OBG) also claimed that the Dubai’s residential sector has “posted solid growth over the past few months.” The recent merger between the two real estate heavyweights, Aldar and Sorouh might also have injected some confidence in industry watchers, as has the report showing profits posted by Nakheel in Q1 of 2012.
Taqa Drops Most in 17 Months After Oil Falls: Abu Dhabi Mover - Bloomberg
Abu Dhabi National Energy Co. (TAQA), the state-controlled power and oil producer known as Taqa, fell the most in 17 months after crude oil extended its drop last week.
The shares plunged 6.3 percent, the biggest slump since January 2011, to 1.20 dirhams at the 2 p.m. close in the emirate. The benchmark ADX General Index (ADSMI) fell 1.1 percent. Oil prices retreated 5.1 percent last week to $79.76 a barrel in New York, extending this year’s losses to 19 percent.
“The continued fall in oil prices will squeeze Taqa’s profit margin late in the second quarter,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities.
The shares plunged 6.3 percent, the biggest slump since January 2011, to 1.20 dirhams at the 2 p.m. close in the emirate. The benchmark ADX General Index (ADSMI) fell 1.1 percent. Oil prices retreated 5.1 percent last week to $79.76 a barrel in New York, extending this year’s losses to 19 percent.
“The continued fall in oil prices will squeeze Taqa’s profit margin late in the second quarter,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities.
Qatar seeks 5-bln-USD quota to invest in China's capital market - Xinhua | English.news.cn
Qatari investment authorities are applying for the status of Qualified Foreign Institutional Investor (QFII) in China and aim for an investment quota of 5 billion U.S. dollars, according to a senior Qatari official.
Mohammed Bin Saleh Al-Sada, minister of energy and industry of Qatar, said during his trip in Beijing that by applying for the QFII status, Qatar plans to invest part of its revenues generated from transferring gas to China in Chinese shares and IPOs.
Liquified natural gas transported from Qatar to China amounts to 5 million tonnes annually.
Mohammed Bin Saleh Al-Sada, minister of energy and industry of Qatar, said during his trip in Beijing that by applying for the QFII status, Qatar plans to invest part of its revenues generated from transferring gas to China in Chinese shares and IPOs.
Liquified natural gas transported from Qatar to China amounts to 5 million tonnes annually.
Dubai 60 kilometers jet fuel pipeline gets USD 100 million injec
The construction of 60 kilometers jet fuel pipeline in Dubai has received a boost following the securing of USD 100 million loan by Emirates National Oil Company.
According to a statement released by the company, the pipeline will be the second such line to be built from the new bulk liquid petroleum terminal in the Jebel Ali Free Zone to Dubai International Airport and its associated storage tank farm with 141,000 cubic meter of capacity.
Horizon Terminals Limited which is the wholly owned subsidiary of Emirates National Oil Company focused on terminalling operations signed the 10 year Islamic term financing facility with Standard Chartered Bank, Emirates NBD and Noor Islamic Bank.
According to a statement released by the company, the pipeline will be the second such line to be built from the new bulk liquid petroleum terminal in the Jebel Ali Free Zone to Dubai International Airport and its associated storage tank farm with 141,000 cubic meter of capacity.
Horizon Terminals Limited which is the wholly owned subsidiary of Emirates National Oil Company focused on terminalling operations signed the 10 year Islamic term financing facility with Standard Chartered Bank, Emirates NBD and Noor Islamic Bank.
Dubai's Daman sells 22.7 percent stake, says near to IPO | Reuters
Daman Investments, the Dubai-based investment management company, sold a 22.7 percent stake through a private placement which values the firm at 440 million dirhams ($119.8 million) and said it eventually plans to offer shares to the public.
Daman, which is active in asset management, raised 100 million dirhams from the sale, by offering 588,235 new shares at 170 dirhams each, the company said in a statement Sunday. No details were given on who bought into the offering.
The sale was part of the firm's strategy to broaden its shareholder base before an eventual initial public offering in the United Arab Emirates.
Daman, which is active in asset management, raised 100 million dirhams from the sale, by offering 588,235 new shares at 170 dirhams each, the company said in a statement Sunday. No details were given on who bought into the offering.
The sale was part of the firm's strategy to broaden its shareholder base before an eventual initial public offering in the United Arab Emirates.
Abu Dhabi Shares Lead Middle East Lower on Syria Concern, Egypt - Bloomberg
Abu Dhabi shares fell the most since March, leading a Middle East drop, on concern regional political unrest may escalate amid tensions between Turkey and Syria. Egypt shares rose before presidential election results.
Abu Dhabi National Energy Co. (TAQA), the state-controlled power and oil producer known as Taqa, tumbled the most in more than a year. Emirates Telecommunications Corp. (ETISALAT), the biggest telephone company in the United Arab Emirates, fell for the first time in more than a week. The benchmark ADX General Index (ADSMI) retreated 1.1 percent, the most since March 7, to 2,480.84 at the close in the emirate. The Bloomberg GCC 200 Index (BGCC200) fell 0.5 percent at 1:12 p.m. in Riyadh while Egypt’s EGX 30 index rose 1.4 percent after tumbling 8.8 percent last week.
“All markets across the region are soft on very light activity,” said Julian Bruce, the Dubai-based director of institutional sales trading at EFG-Hermes Holding SAE. “An air of enhanced caution pervades as we await political developments in both Europe and the region.”
Abu Dhabi National Energy Co. (TAQA), the state-controlled power and oil producer known as Taqa, tumbled the most in more than a year. Emirates Telecommunications Corp. (ETISALAT), the biggest telephone company in the United Arab Emirates, fell for the first time in more than a week. The benchmark ADX General Index (ADSMI) retreated 1.1 percent, the most since March 7, to 2,480.84 at the close in the emirate. The Bloomberg GCC 200 Index (BGCC200) fell 0.5 percent at 1:12 p.m. in Riyadh while Egypt’s EGX 30 index rose 1.4 percent after tumbling 8.8 percent last week.
“All markets across the region are soft on very light activity,” said Julian Bruce, the Dubai-based director of institutional sales trading at EFG-Hermes Holding SAE. “An air of enhanced caution pervades as we await political developments in both Europe and the region.”
Tokio Marine affiliate soars in Saudi bourse debut | Reuters
Shares in an affiliate of Japanese insurance giant Tokio Marine & Nichido Fire Insurance Co (8766.T) soared as they listed on the Saudi Arabian stock market on Sunday, showing strong demand for fresh equity among Saudi investors despite the global market slump.
Alinma Tokio Marine 8312.SE traded as high as 100 riyals, a tenfold increase from its initial public offer price of 10 riyals. It was at 76 riyals after an hour of trading, with 5.5 million shares having changed hands in hectic trade.
Many Saudi stocks more than double on listing, because IPO shares are traditionally sold at cheap valuations by international standards. The government encourages IPOs as a way of distributing corporate wealth to its citizens.
Alinma Tokio Marine 8312.SE traded as high as 100 riyals, a tenfold increase from its initial public offer price of 10 riyals. It was at 76 riyals after an hour of trading, with 5.5 million shares having changed hands in hectic trade.
Many Saudi stocks more than double on listing, because IPO shares are traditionally sold at cheap valuations by international standards. The government encourages IPOs as a way of distributing corporate wealth to its citizens.
Procedures to employ 11000 women begins | A1SaudiArabia.com
The Civil Service Ministry has begun procedures this week to employ as many as 11,000 Saudi women in administrative posts at the Ministry of Education.
This was in line with a royal decree issued by Custodian of the Two Holy Mosques King Abdullah last year to create administrative jobs for 11,000 women graduates in the educational sector, the ministry said in a statement.
The ministry will announce on Wednesday the names of women graduates who have submitted online applications for various posts. The ministry would then scrutinize the personal data of the applicants and verify their original documents and certificates on June 30, the Saudi Press Agency reported.
This was in line with a royal decree issued by Custodian of the Two Holy Mosques King Abdullah last year to create administrative jobs for 11,000 women graduates in the educational sector, the ministry said in a statement.
The ministry will announce on Wednesday the names of women graduates who have submitted online applications for various posts. The ministry would then scrutinize the personal data of the applicants and verify their original documents and certificates on June 30, the Saudi Press Agency reported.
Qatar National Bank Hires Banks for $1.5 Billion Loan - Bloomberg
Qatar National Bank SAQ (QNBK), the Persian Gulf country’s largest lender, said it hired five banks to help raise $1.5 billion three-year loan to finance its operations.
The Doha-based lender hired HSBC Bank Middle East Ltd., Deutsche Bank AG, Standard Chartered Plc, JPMorgan Chase & Co., and Bank of Tokyo-Mitsubishi UFJ Ltd., it said in a statement to the Qatari stock market today.
The Doha-based lender hired HSBC Bank Middle East Ltd., Deutsche Bank AG, Standard Chartered Plc, JPMorgan Chase & Co., and Bank of Tokyo-Mitsubishi UFJ Ltd., it said in a statement to the Qatari stock market today.
gulfnews : Investor misery in India getting worse
With the rupee plunging to record lows the misery for investors in India is just piling. This is particularly so for foreign portfolio investments whose value has been dented by 23.5 per cent depreciation in the Indian currency against the US dollar over the past 11 months.
What is worrying is the market perception that the rupee is yet to see a bottom. Foreign investors, the main driver of the domestic stock market, will not pump in money unless the rupee stabilises and they are assured the government is taking measures to revive growth.
“The volatile rupee is the new joker in the pack,” said equity salesman Kevin D’Souza. “Although the rupee’s fall makes buying shares cheaper for foreign investors, no one wants to be caught by another slide in the rupee.”
What is worrying is the market perception that the rupee is yet to see a bottom. Foreign investors, the main driver of the domestic stock market, will not pump in money unless the rupee stabilises and they are assured the government is taking measures to revive growth.
“The volatile rupee is the new joker in the pack,” said equity salesman Kevin D’Souza. “Although the rupee’s fall makes buying shares cheaper for foreign investors, no one wants to be caught by another slide in the rupee.”
gulfnews : Rediscovering the rationale for creating an economy based on trade and tourism
It used to be said among analysts that the Gulf spent too much time in the comfort zone of its reliable energy resources to commit properly to developing other forms of economic growth. Only the pressure of low oil prices spurred those efforts, as an apparent necessity. And when oil prices picked up, the incentive for structural change went missing again.
However, non-oil industrialisation has made ground, and in the distinct case of Dubai the prior rationale for creating an economy based on trade and tourism, and commerce generally, has been rediscovered.
Across the region, a set of buzzwords -- liberalisation, deregulation, governance, integration -- have become commonplace, linked by the idea of conforming with international expectations, with the motivation of attracting overseas interest, expertise and finance.
However, non-oil industrialisation has made ground, and in the distinct case of Dubai the prior rationale for creating an economy based on trade and tourism, and commerce generally, has been rediscovered.
Across the region, a set of buzzwords -- liberalisation, deregulation, governance, integration -- have become commonplace, linked by the idea of conforming with international expectations, with the motivation of attracting overseas interest, expertise and finance.
Oil alert as long, hot summer sets in - The National
Oil markets are expected to be at the forefront of investors' minds during the week ahead after the price of crude dropped to the lowest levels in two years last week.
Brent crude futures, which fell US$7 during the week to settle at $90.62 on Friday, dipped as low as $88.99 per barrel on Thursday.
The European benchmark has fallen by as much as $39.11 per barrel since prices peaked in February.
Brent crude futures, which fell US$7 during the week to settle at $90.62 on Friday, dipped as low as $88.99 per barrel on Thursday.
The European benchmark has fallen by as much as $39.11 per barrel since prices peaked in February.
Saudi Arabia seeks Red Sea energy resources - The National
Saudi Arabia's status in the world of oil is almost mythical.
The Opec heavyweight recently overtook Russia as the biggest producer of crude and its oil wells have made the kingdom a household name across the globe.
Yet Saudis residing on the west coast are strangely unfamiliar with the mass of wells, rigs and processing facilities that crowd the country's oil areas.
The Opec heavyweight recently overtook Russia as the biggest producer of crude and its oil wells have made the kingdom a household name across the globe.
Yet Saudis residing on the west coast are strangely unfamiliar with the mass of wells, rigs and processing facilities that crowd the country's oil areas.
Qatar adds US embassy site to Paris property splurge - Yahoo! News Maktoob
Qatar has bought a property in Paris housing a section of the US embassy, Le Parisien daily said Saturday, a day after an investor from the gas-rich emirate snapped up four luxury hotels in France.
"The emirate has just bought the Neo building with 23,000 square metres at 14 boulevard Haussmann in the centre of Paris for 300 million euros ($367 million)," reported the paper.
As well as a section of the US embassy, the exclusive address also houses the offices of right-leaning national newspaper Le Figaro.
"The emirate has just bought the Neo building with 23,000 square metres at 14 boulevard Haussmann in the centre of Paris for 300 million euros ($367 million)," reported the paper.
As well as a section of the US embassy, the exclusive address also houses the offices of right-leaning national newspaper Le Figaro.
Easier trade can create 2 million jobs in Arab world - The National
At least two million jobs could be created across the Arab world if export barriers are lifted to help stimulate stagnant regional trade, says the head of a major global trade organisation.
At the moment, most Arab countries trade far more with Europe, the United States and Asian countries than they do with each other. Only 11 per cent of Arab non-oil exports are within the region, one of the lowest rates of intra-regional trade in the world, says a report by the International Trade Centre (ITC).
"Arab states have taken away tariff barriers and put in non-tariff barriers instead. Most of them are significant and quite discriminatory in the way they are constructed," said Patricia Francis, the executive director of the ITC, a joint agency of the World Trade Organisation and the United Nations.
At the moment, most Arab countries trade far more with Europe, the United States and Asian countries than they do with each other. Only 11 per cent of Arab non-oil exports are within the region, one of the lowest rates of intra-regional trade in the world, says a report by the International Trade Centre (ITC).
"Arab states have taken away tariff barriers and put in non-tariff barriers instead. Most of them are significant and quite discriminatory in the way they are constructed," said Patricia Francis, the executive director of the ITC, a joint agency of the World Trade Organisation and the United Nations.