Gulf lenders expand while others retreat - FT.com

Gulf lenders expand while others retreat - FT.com:

"Banking marches to a different tune in the Arab world. While lenders from Europe and the US have spent the post-crisis years retreating to their home markets, Gulf banks have been blazing an expansionary trail across north Africa and Asia. And they show no signs of stopping, in spite of weak oil prices and ongoing political turmoil.
“The Gulf banks are generally well-capitalised, but in many cases operate in relatively small undiversified economies,” says Raj Madha, a Dubai-based research analyst at Deutsche Bank. “Consequently, particularly for the larger banks, they feel a need to explore beyond their borders.”
The banks are not shy about talking up their ambitions."



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Dubai prime office rents likely to stay flat as major new developments add to supply glut | The National

Dubai prime office rents likely to stay flat as major new developments add to supply glut | The National:

"An additional 1 million square metres of office space is soon to hit the Dubai market over the next 15 months as the economy shows signs of slowing.

According to the property broker Knight Frank, the amount of office space in the emirate is set to rise from 9.5 million sq metres to about 10.5 million sq metres by 2017 as three major new developments come on stream.

Prime office developments due for completion by this year include the remaining buildings in the first phase of Tecom’s 185,000 sq metres D3 development at the Design District, the 20,000 sq metres C1 office development at Dubai World Trade Centre, and Dubai Multi Commodities Centre’s (DMCC) 27,000 sq metres One JLT."



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Abu Dhabi’s Ipic to make interest payments on $3.5 bln 1MDB debt | GulfNews.com

Abu Dhabi’s Ipic to make interest payments on $3.5 bln 1MDB debt | GulfNews.com:

"Abu Dhabi’s International Petroleum Investment Co. (Ipic) said on Thursday it would make interest payments due in October and November on two bonds worth $1.75 billion each belonging to units of Malaysia’s state fund 1MDB.

Ipic also said that 1MDB and Malaysia’s finance ministry had promised to indemnify both it and its majority-owned unit Aabar Investments for any non-performance relating to a binding agreement signed in June, without elaborating.

Under that June deal, Abu Dhabi state-owned fund Ipic said it would provide a raft of support including assuming debt belonging to 1MDB and giving around $1 billion in cash to help the Malaysian fund settle other debts."



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Qatar's Wealth Fund Said Interested in Glencore Agriculture Sale - Bloomberg Business

Qatar's Wealth Fund Said Interested in Glencore Agriculture Sale - Bloomberg Business:

"The sovereign wealth fund of Qatar has joined investors expressing an interest in buying a minority stake in Glencore Plc’s agriculture business, according to three people familiar with the conversations.
The talks are preliminary and a sale would take as long as six months, said the same people, who asked not to be identified because the matter is confidential. Qatar Holding LLC, the direct investment arm of the Gulf state’s sovereign wealth fund, is already the largest investor in the Swiss-based commodities trader-cum-miner, with an 8.9 percent stake, people said earlier this week.
Others involved in preliminary talks with Glencore include the sovereign wealth fund of Singapore, Japanese trading house Mitsui & Co. and Canada Pension Plan Investment Board, the country’s largest pension manager."



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Sabic Reorganizes Corporate Structure to Adapt to Market Changes - Bloomberg Business

Sabic Reorganizes Corporate Structure to Adapt to Market Changes - Bloomberg Business:

"Saudi Basic Industries Corp. announced a restructuring to make itself more agile and cost-efficient, following a comprehensive review of the challenges facing the Middle East’s biggest petrochemicals company.
The new organizational structure should be in place by January 1, the company said in a statement Thursday. Sabic’s innovative plastics unit will be broken up and reallocated to other divisions, including chemicals and polymers and a new unit called specialties.
“The changes will enhance our global footprint to serve our customers locally while providing solutions globally,” Yousef Abdullah Al-Benyan, Acting Vice Chairman and chief executive officer of SABIC , said in the statement. “This reorganization will focus resources more intensively on the needs of each line.”"



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Dubai's Majid Al Futtaim CEO Says Weighing Bid for Dunia - Bloomberg Business

Dubai's Majid Al Futtaim CEO Says Weighing Bid for Dunia - Bloomberg Business:

"Majid Al Futtaim Holding LLC aims to double profit in five years and is weighing an offer to acquire Abu Dhabi consumer finance firm Dunia Finance LLC as part of the plan, according to Chief Executive Officer Alain Bejjani.
“Dunia is an opportunity that was presented to us, so we are looking at it,” Bejjani said in an interview in Dubai. The company has not yet decided whether to make a formal bid, he said. Dunia’s shareholders, including Mubadala Development Co. and a unit of Temasek Holdings Pte, hired Morgan Stanley to explore a sale, people with knowledge of the matter said in July.
Bejjani, 42, who became CEO in February after roles including chief corporate development and brand officer, said acquisitions could be part of MAF’s expansion. Buying privately owned Dunia would be a strategic fit for Majid Al Futtaim’s finance unit, which caters to customers at the group’s malls, he said."



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