MIDEAST STOCKS-UAE, Qatar and Egypt markets retreat | Markets | Reuters:
"Bourses in the United Arab Emirates, Qatar and Egypt pulled back on Wednesday as investors booked profits after solid gains and a strong earnings season.
Dubai's benchmark fell 1.3 percent after rising in the four previous sessions, as most real estate stocks retreated while trading volume slightly increased compared with Tuesday.
Emaar Properties slid 0.5 percent, Deyaar Development shed 3.0 percent and Union Properties fell 4.0 percent, even after reporting an eightfold jump in first-quarter profit.
All three stocks have made gains in the high double digits or even triple digits this year.
"
'via Blog this'
Wednesday 7 May 2014
Investment Corporation of Dubai reveals first financial results - FT.com
Investment Corporation of Dubai reveals first financial results - FT.com:
"Dubai’s state holding company has for the first time revealed financial results, as the Gulf emirate seeks to tempt investors back to its reviving economy.
The Investment Corporation of Dubai (ICD), owner of many of Dubai’s corporate jewels, such as the Emirates airline, the airport duty-free business and Emaar, a property developer, unveiled the detailed numbers as part of a move to raise about $750m in its first Islamic bond issue.
The prospectus accompanying the sale revealed that revenues at ICD, a barometer of Dubai’s economic health, rose 18 per cent to $24.8bn in the second half of 2013, driven by increased airline passengers."
'via Blog this'
"Dubai’s state holding company has for the first time revealed financial results, as the Gulf emirate seeks to tempt investors back to its reviving economy.
The Investment Corporation of Dubai (ICD), owner of many of Dubai’s corporate jewels, such as the Emirates airline, the airport duty-free business and Emaar, a property developer, unveiled the detailed numbers as part of a move to raise about $750m in its first Islamic bond issue.
The prospectus accompanying the sale revealed that revenues at ICD, a barometer of Dubai’s economic health, rose 18 per cent to $24.8bn in the second half of 2013, driven by increased airline passengers."
'via Blog this'
EconoMonitor : EconoMonitor » Great Graphic: Emerging Market Bond Issuance
EconoMonitor : EconoMonitor » Great Graphic: Emerging Market Bond Issuance:
"
Sovereigns and corporates are taking advantage of the still accommodative global monetary conditions to secure funding. ThisGreat Graphic, tweeted by Emerging Equity, from IIF data shows emerging market economies bond issuance over the past year.
It is remarkable that the bulk of the bond issuance over the past year from emerging markets comes from Asia. We suspect the bulk of this is from the private sector.
In discussions about potential bubbles, emerging market corporates is increasingly cited as a risk. Past crises have been proceeded by an accumulation of foreign currency debt."
'via Blog this'
"
It is remarkable that the bulk of the bond issuance over the past year from emerging markets comes from Asia. We suspect the bulk of this is from the private sector.
In discussions about potential bubbles, emerging market corporates is increasingly cited as a risk. Past crises have been proceeded by an accumulation of foreign currency debt."
'via Blog this'
HSBC sees US$40 billion Gulf bond sales this year after slow start - bi-me.com
HSBC sees US$40 billion Gulf bond sales this year after slow start - Business Intelligence Middle East - bi-me.com - News, analysis, reports:
"HSBC Holdings Plc (HSBA), the biggest manager of bond sales in the six-nation Gulf Cooperation Council, expects debt issues in the region to raise as much as $40 billion in 2014, almost matching last year’s total.
Sales will start to catch up with 2013 volumes in the next two months, Mustafa Aziz Ata, head of Middle East and North Africa debt capital markets at the London-based bank, said in an interview in Dubai yesterday. Volume dropped 35 percent to $11.4 billion in 2014 compared with the same period a year ago.
“The market is going to pick up fairly quickly,” Aziz Ata said. “By mid-year we are going to be at the same levels, slightly lower” than last year, with between $35 billion and $40 billion by the end of 2014. Government-related companies and banks will lead sales, including some new issuers, he said."
'via Blog this'
"HSBC Holdings Plc (HSBA), the biggest manager of bond sales in the six-nation Gulf Cooperation Council, expects debt issues in the region to raise as much as $40 billion in 2014, almost matching last year’s total.
Sales will start to catch up with 2013 volumes in the next two months, Mustafa Aziz Ata, head of Middle East and North Africa debt capital markets at the London-based bank, said in an interview in Dubai yesterday. Volume dropped 35 percent to $11.4 billion in 2014 compared with the same period a year ago.
“The market is going to pick up fairly quickly,” Aziz Ata said. “By mid-year we are going to be at the same levels, slightly lower” than last year, with between $35 billion and $40 billion by the end of 2014. Government-related companies and banks will lead sales, including some new issuers, he said."
'via Blog this'
Saudi Tadawul to Hire Banks for IPO of Biggest Arab Bourse - Bloomberg
Saudi Tadawul to Hire Banks for IPO of Biggest Arab Bourse - Bloomberg:
"Saudi Arabia’s stock exchange plans to sell shares in an initial public offering as the Arab world’s largest bourse seeks to gradually open up to foreigners and boost institutional investment.
Tadawul, as the gauge is known, will hire advisers soon for the share sale, Chief Executive Officer Adel Al Ghamdi said at a conference in Riyadh today. That would make it the second market in the Gulf Cooperation Council to go public after Dubai’s.
“The Saudi stock exchange is going through tremendous transition at this stage,” Al Ghamdi said. “We are going public, that is our aspiration.”"
'via Blog this'
"Saudi Arabia’s stock exchange plans to sell shares in an initial public offering as the Arab world’s largest bourse seeks to gradually open up to foreigners and boost institutional investment.
Tadawul, as the gauge is known, will hire advisers soon for the share sale, Chief Executive Officer Adel Al Ghamdi said at a conference in Riyadh today. That would make it the second market in the Gulf Cooperation Council to go public after Dubai’s.
“The Saudi stock exchange is going through tremendous transition at this stage,” Al Ghamdi said. “We are going public, that is our aspiration.”"
'via Blog this'
Guest post: SWFs have progressed on the road from Santiago but governance is still an issue – beyondbrics - Blogs - FT.com
Guest post: SWFs have progressed on the road from Santiago but governance is still an issue – beyondbrics - Blogs - FT.com:
"By Eric Parrado of the Banking and Financial Institutions Regulation Authority of Chile
For centuries, pilgrims have made the journey to Santiago de Compostela to seek redemption. When, in 2008, sovereign wealth funds met in another Santiago, Santiago de Chile, it was not to seek forgiveness – for they had committed no sins. They came together to adopt the Santiago Principles, covering issues of importance for SWFs including the setting of clear objectives, better coordination with macroeconomic policies, good corporate governance and transparent investment and risk management frameworks.
"
'via Blog this'
"By Eric Parrado of the Banking and Financial Institutions Regulation Authority of Chile
For centuries, pilgrims have made the journey to Santiago de Compostela to seek redemption. When, in 2008, sovereign wealth funds met in another Santiago, Santiago de Chile, it was not to seek forgiveness – for they had committed no sins. They came together to adopt the Santiago Principles, covering issues of importance for SWFs including the setting of clear objectives, better coordination with macroeconomic policies, good corporate governance and transparent investment and risk management frameworks.
"
'via Blog this'
Algosaibi Creditors Voice Frustration in Long Running Saudi Dispute - Middle East Real Time - WSJ
Algosaibi Creditors Voice Frustration in Long Running Saudi Dispute - Middle East Real Time - WSJ:
"Ahmad Hamad Algosaibi and Brothers, a Saudi family-owned conglomerate that defaulted on its debts near the beginning of the financial crisis in 2009, met with creditors in Dubai on Wednesday to propose a new settlement: a cash payment of about 20 cents for every dollar of debt, plus recoveries it makes through lawsuits against Maan al Sanea, a Saudi businessman the Algosaibis claim caused the defaults through an alleged $10 billion fraud.
The affair is one of the major unresolved financial disputes that rocked the Arab Gulf during the financial crisis. Saddled with bad debts, regional banks responded by stopping the practice of name lending, or lending to companies based on reclusive but wealthy families’ reputations rather than full analyses of their financial health.
Under the restructuring proposal, Algosaibi is offering an upfront payment that equals 10% of creditors’ claims as “a sign of good faith” with an additional 10% payout after five years. Depending on the amount the firm recovers through various lawsuits against Al Sanea and two banks, Algosaibi could pay out another 30 cents to the dollar."
'via Blog this'
"Ahmad Hamad Algosaibi and Brothers, a Saudi family-owned conglomerate that defaulted on its debts near the beginning of the financial crisis in 2009, met with creditors in Dubai on Wednesday to propose a new settlement: a cash payment of about 20 cents for every dollar of debt, plus recoveries it makes through lawsuits against Maan al Sanea, a Saudi businessman the Algosaibis claim caused the defaults through an alleged $10 billion fraud.
The affair is one of the major unresolved financial disputes that rocked the Arab Gulf during the financial crisis. Saddled with bad debts, regional banks responded by stopping the practice of name lending, or lending to companies based on reclusive but wealthy families’ reputations rather than full analyses of their financial health.
Under the restructuring proposal, Algosaibi is offering an upfront payment that equals 10% of creditors’ claims as “a sign of good faith” with an additional 10% payout after five years. Depending on the amount the firm recovers through various lawsuits against Al Sanea and two banks, Algosaibi could pay out another 30 cents to the dollar."
'via Blog this'
Saudi Arabia’s Algosaibi Offers New Deal on $5.9 Billion of Debt - Bloomberg
Saudi Arabia’s Algosaibi Offers New Deal on $5.9 Billion of Debt - Bloomberg:
"Ahmad Hamad Algosaibi & Brothers Co. is offering to guarantee banks at least a 20 percent payment on $5.9 billion of debt as it seeks to end a dispute with creditors after the Middle East’s largest default.
The Saudi Arabian company will pay 10 cents on the dollar using cash from a share portfolio if creditors agree to the offer and an additional 10 cents in five years, according to a presentation made by chief restructuring officer Simon Charlton at a meeting today in Dubai. Depending on asset recovery and litigation it will also pay up to an additional 30 cents, with gains above that level shared between the company and creditors.
Algosaibi and billionaire Maan al-Sanea’s Saad Group defaulted on at least $15.7 billion in 2009 as the global economic crisis froze credit markets and asset prices slumped. The two family holding companies, related by marital ties, have been locked in legal disputes ever since. Today’s offer is less favorable than one rejected by lenders in December 2009."
'via Blog this'
"Ahmad Hamad Algosaibi & Brothers Co. is offering to guarantee banks at least a 20 percent payment on $5.9 billion of debt as it seeks to end a dispute with creditors after the Middle East’s largest default.
The Saudi Arabian company will pay 10 cents on the dollar using cash from a share portfolio if creditors agree to the offer and an additional 10 cents in five years, according to a presentation made by chief restructuring officer Simon Charlton at a meeting today in Dubai. Depending on asset recovery and litigation it will also pay up to an additional 30 cents, with gains above that level shared between the company and creditors.
Algosaibi and billionaire Maan al-Sanea’s Saad Group defaulted on at least $15.7 billion in 2009 as the global economic crisis froze credit markets and asset prices slumped. The two family holding companies, related by marital ties, have been locked in legal disputes ever since. Today’s offer is less favorable than one rejected by lenders in December 2009."
'via Blog this'
Ukraine receives first tranche under new IMF's Stand-By Arrangement, says NBU #EuroMaidan
Ukraine receives first tranche under new IMF's Stand-By Arrangement, says NBU:
"Ukraine has received SDR 2.058 billion (around $3.19 billion) under a two-year Stand-By Arrangement approved by the International Monetary Fund (IMF) in late April to support the economic program of Ukrainian authorities on the restoration of the macroeconomic stability and economic growth, the press service of the National Bank of Ukraine (NBU) has reported.
"All funds of the first tranche arrived to Ukraine on Tuesday in the volume planned, and this confirmed that international financial institutions cooperate with Ukraine," the central bank said.
As reported, around $2 billion from the first tranche will be sent to finance the deficit of the national budget, while the rest of the funds will be sent to the country's international reserves."
'via Blog this'
"Ukraine has received SDR 2.058 billion (around $3.19 billion) under a two-year Stand-By Arrangement approved by the International Monetary Fund (IMF) in late April to support the economic program of Ukrainian authorities on the restoration of the macroeconomic stability and economic growth, the press service of the National Bank of Ukraine (NBU) has reported.
"All funds of the first tranche arrived to Ukraine on Tuesday in the volume planned, and this confirmed that international financial institutions cooperate with Ukraine," the central bank said.
As reported, around $2 billion from the first tranche will be sent to finance the deficit of the national budget, while the rest of the funds will be sent to the country's international reserves."
'via Blog this'
UAE launched Eu 7B project in Greece | GulfNews.com
UAE launched Eu 7B project in Greece | GulfNews.com:
"Shaikh Abdullah Bin Zayed Al Nahyan, UAE Foreign Minister, announced the launch of a major investment project in Greece at a total cost of €7 billion (Dh35.67 billion).
The joint venture project involves the development of the old airport in Athens in several phases. Once completed, the project is expected to offer more than 50,000 jobs.
The Abu Dhabi Investment Council, meanwhile, has announced that it is bidding to buy the prestigious resort of Esther Palace. It also signed a framework agreement on exploration of avenues of investment opportunities in the field of energy."
'via Blog this'
"Shaikh Abdullah Bin Zayed Al Nahyan, UAE Foreign Minister, announced the launch of a major investment project in Greece at a total cost of €7 billion (Dh35.67 billion).
The joint venture project involves the development of the old airport in Athens in several phases. Once completed, the project is expected to offer more than 50,000 jobs.
The Abu Dhabi Investment Council, meanwhile, has announced that it is bidding to buy the prestigious resort of Esther Palace. It also signed a framework agreement on exploration of avenues of investment opportunities in the field of energy."
'via Blog this'
Dubai says to repay 2015 debt on time, more firms to pay early | Reuters
Dubai says to repay 2015 debt on time, more firms to pay early | Reuters:
"Dubai will not have any issues in repaying all its debt maturing in 2015, and more state-linked firms are likely to repay obligations ahead of schedule, a top government official said on Tuesday.
"We will have no issues in repaying debt coming up next year," said Sheikh Ahmed bin Saeed al-Maktoum, a close advisor and uncle to Dubai's ruler.
Sheikh Ahmed, a key figure in the emirate's recovery from its 2009 debt crisis, was speaking to Reuters on the sidelines of a Dubai travel industry conference. He heads Dubai's supreme fiscal committee.
"We saw some companies paid before time already. I think you might see some more like this in the year to come.""
'via Blog this'
"Dubai will not have any issues in repaying all its debt maturing in 2015, and more state-linked firms are likely to repay obligations ahead of schedule, a top government official said on Tuesday.
"We will have no issues in repaying debt coming up next year," said Sheikh Ahmed bin Saeed al-Maktoum, a close advisor and uncle to Dubai's ruler.
Sheikh Ahmed, a key figure in the emirate's recovery from its 2009 debt crisis, was speaking to Reuters on the sidelines of a Dubai travel industry conference. He heads Dubai's supreme fiscal committee.
"We saw some companies paid before time already. I think you might see some more like this in the year to come.""
'via Blog this'
Mashreq’s $43 million dispute with ING finally comes to an end | The National
Mashreq’s $43 million dispute with ING finally comes to an end | The National:
"Mashreq’s dispute with ING Group in the New York courts over a multimillion dollar soured investment has come to an end, with each party agreeing to bear its own costs and legal fees.
The Dubai-based bank initiated legal action against ING in April 2013 over a US$43 million loss linked to investments in derivative securities, claiming fraud, breach of contract and breach of fiduciary duty by the Dutch asset manager.
Now the case has formally come to a close, according to a short document filed in the New York courts on Monday."
'via Blog this'
"Mashreq’s dispute with ING Group in the New York courts over a multimillion dollar soured investment has come to an end, with each party agreeing to bear its own costs and legal fees.
The Dubai-based bank initiated legal action against ING in April 2013 over a US$43 million loss linked to investments in derivative securities, claiming fraud, breach of contract and breach of fiduciary duty by the Dutch asset manager.
Now the case has formally come to a close, according to a short document filed in the New York courts on Monday."
'via Blog this'
Pearls of wisdom from Arif Naqvi of Abraaj Group | The National
Pearls of wisdom from Arif Naqvi of Abraaj Group | The National:
"
Once you are seated on the comfy sofas in the office of Arif Naqvi in the Dubai International Financial Centre, there are plenty of things to talk about.
Mr Naqvi is the founder and chief executive of Abraaj Group, the biggest private equity firm in the Middle East with some US$8 billion of assets under management, so that makes him a player and an opinion former in virtually all the big issues of the region.
He is not reluctant to give a forthright view on big global issues.
He is a regular attendee of the World Economic Forum’s Davos gathering, where big ideas are knocked around by big thinkers."
'via Blog this'
"
Mr Naqvi is the founder and chief executive of Abraaj Group, the biggest private equity firm in the Middle East with some US$8 billion of assets under management, so that makes him a player and an opinion former in virtually all the big issues of the region.
He is not reluctant to give a forthright view on big global issues.
He is a regular attendee of the World Economic Forum’s Davos gathering, where big ideas are knocked around by big thinkers."
'via Blog this'
GCC investors in Russia wary as tensions and economy worsen | The National
GCC investors in Russia wary as tensions and economy worsen | The National:
"GCC investors in Russia are likely to tread cautiously amid a thorny mix of geopolitical tensions and a worsening economy.
Russia has generated pledges to invest billions of dollars in the past two years from investors from the bloc. Most recently, the Russian Direct Investment Fund (RDIF), set up by the president Vladimir Putin three years ago, signed a cooperation deal with the Bahraini sovereign wealth fund Mumtalakat Holding last week to pursue potential joint investment opportunities.
Such deals have appeared more risky as Russia’s economy has begun to spiral down and as tensions with neighbouring Ukraine escalate."
'via Blog this'
"GCC investors in Russia are likely to tread cautiously amid a thorny mix of geopolitical tensions and a worsening economy.
Russia has generated pledges to invest billions of dollars in the past two years from investors from the bloc. Most recently, the Russian Direct Investment Fund (RDIF), set up by the president Vladimir Putin three years ago, signed a cooperation deal with the Bahraini sovereign wealth fund Mumtalakat Holding last week to pursue potential joint investment opportunities.
Such deals have appeared more risky as Russia’s economy has begun to spiral down and as tensions with neighbouring Ukraine escalate."
'via Blog this'
Iran tests foreign interest with oil fair | GulfNews.com
Iran tests foreign interest with oil fair | GulfNews.com:
"Iran’s annual oil and gas fair opened in Tehran on Tuesday, with 600 foreign companies seeking to position themselves for a return to large-scale operations if international sanctions are lifted.
With some of the world’s biggest oil and gas reserves, the industry is the cornerstone of Iran’s economy, but it was heavily hit by an American and European embargo on the energy and banking sectors in 2012.
Major energy firms have since left or been stifled from doing business because of economic sanctions imposed as punishment for the country’s disputed nuclear programme."
'via Blog this'
"Iran’s annual oil and gas fair opened in Tehran on Tuesday, with 600 foreign companies seeking to position themselves for a return to large-scale operations if international sanctions are lifted.
With some of the world’s biggest oil and gas reserves, the industry is the cornerstone of Iran’s economy, but it was heavily hit by an American and European embargo on the energy and banking sectors in 2012.
Major energy firms have since left or been stifled from doing business because of economic sanctions imposed as punishment for the country’s disputed nuclear programme."
'via Blog this'
Investment Corporation of Dubai Plans Bond Sale | GulfNews.com
Investment Corporation of Dubai Plans Bond Sale | GulfNews.com:
"Investment Corporation of Dubai, which holds some of the emirate’s main assets, is planning to tap the debt market just weeks after its government received strong demand for a $750 million Islamic bond sale.
Dubai is looking to take advantage of lower yields and increased appetite for its paper as it benefits from a strong rebound after the global financial crisis, raised cash late last month to help finance its fiscal debt, pay for infrastructure projects and to refinance more expensive obligations.
ICD has mandated several banks to arrange fixed-income investor meetings in Asia, the Middle East and Europe starting this week, according to a document from one of the lead managers, and may issue a US dollar bond depending on market conditions. Citi, Dubai Islamic Bank, Emirates NBD Capital, HSBC and Standard Chartered Bank are arranging the meetings for ICD."
'via Blog this'
"Investment Corporation of Dubai, which holds some of the emirate’s main assets, is planning to tap the debt market just weeks after its government received strong demand for a $750 million Islamic bond sale.
Dubai is looking to take advantage of lower yields and increased appetite for its paper as it benefits from a strong rebound after the global financial crisis, raised cash late last month to help finance its fiscal debt, pay for infrastructure projects and to refinance more expensive obligations.
ICD has mandated several banks to arrange fixed-income investor meetings in Asia, the Middle East and Europe starting this week, according to a document from one of the lead managers, and may issue a US dollar bond depending on market conditions. Citi, Dubai Islamic Bank, Emirates NBD Capital, HSBC and Standard Chartered Bank are arranging the meetings for ICD."
'via Blog this'
Putin Eyes Ukrainian Arms Prize as Troops Build Up Along Border - Bloomberg #EuroMaidan
Putin Eyes Ukrainian Arms Prize as Troops Build Up Along Border - Bloomberg:
"As Russian President Vladimir Putin positions his army along the border with Ukraine, his eyes are trained on more than former Soviet territory.
The parts of Ukraine where separatists and loyalists face off in ever-more violent clashes are home to the most valuable assets of the nation’s defense industry. More than 50 factories form an arms cluster that caters to Russia based on a trade accord from two decades ago, churning out air cargo transporters, helicopter engines and other hardware.
“Taking Ukraine’s eastern and southern regions would be hugely beneficial for Russia from a military and economic point of view,” said Mikhail Barabanov, the editor-in-chief of the Moscow Defense Brief magazine. “Russia will have control of the very important and valuable defense companies and plants.”"
'via Blog this'
"As Russian President Vladimir Putin positions his army along the border with Ukraine, his eyes are trained on more than former Soviet territory.
The parts of Ukraine where separatists and loyalists face off in ever-more violent clashes are home to the most valuable assets of the nation’s defense industry. More than 50 factories form an arms cluster that caters to Russia based on a trade accord from two decades ago, churning out air cargo transporters, helicopter engines and other hardware.
“Taking Ukraine’s eastern and southern regions would be hugely beneficial for Russia from a military and economic point of view,” said Mikhail Barabanov, the editor-in-chief of the Moscow Defense Brief magazine. “Russia will have control of the very important and valuable defense companies and plants.”"
'via Blog this'
Hryvnia Weakens as Ukraine Death Toll Mounts; Stocks Rebound - Bloomberg #EuroMaidan
Hryvnia Weakens as Ukraine Death Toll Mounts; Stocks Rebound - Bloomberg:
"The hryvnia fell for a second day as the death toll from violence in eastern Ukraine mounted and Russia demanded the nation postpone elections. Stocks reversed losses in Kiev.
The hryvnia weakened 1.4 percent to 11.80 per dollar by 6:30 p.m. in the capital. That takes a slump this year to 30 percent, the steepest among global currencies tracked by Bloomberg. The Ukrainian Equities Index (UX) rose 1.4 percent after earlier sinking 1.6 percent and government bonds climbed as Russian Foreign Minister Sergey Lavrov called for talks to quell the crisis.
Four Ukrainian servicemen died yesterday in fighting that may have killed about 30 rebels, acting Interior Minister Arsen Avakov said on his Facebook account. The nation should delay a presidential vote scheduled for May 25, Lavrov also said today. Pro-Russia separatists are planning to hold a referendum in the Donetsk region on May 11."
'via Blog this'
"The hryvnia fell for a second day as the death toll from violence in eastern Ukraine mounted and Russia demanded the nation postpone elections. Stocks reversed losses in Kiev.
The hryvnia weakened 1.4 percent to 11.80 per dollar by 6:30 p.m. in the capital. That takes a slump this year to 30 percent, the steepest among global currencies tracked by Bloomberg. The Ukrainian Equities Index (UX) rose 1.4 percent after earlier sinking 1.6 percent and government bonds climbed as Russian Foreign Minister Sergey Lavrov called for talks to quell the crisis.
Four Ukrainian servicemen died yesterday in fighting that may have killed about 30 rebels, acting Interior Minister Arsen Avakov said on his Facebook account. The nation should delay a presidential vote scheduled for May 25, Lavrov also said today. Pro-Russia separatists are planning to hold a referendum in the Donetsk region on May 11."
'via Blog this'