Dubai's Emaar Quarterly Profit Misses Estimates as Costs Surge - Bloomberg Business:
"Emaar Properties PJSC, the builder of the world’s tallest tower in Dubai, reported an increase in third-quarter profit that missed analysts’ estimates after costs escalated and demand for real estate in its home market began to slow.
Net income rose 31 percent to 843 million dirhams ($230 million), or 12 fils a share, from 645 million dirhams, or 9 fils, a year earlier, the Dubai-based company said in a statement Sunday. The mean estimate of five analysts was for a profit of 1 billion dirhams, according to data compiled by Bloomberg.
Emaar, Dubai’s biggest developer by market value, still derives the majority of its property sales from its home market even after expanding in the Middle East region and India. Dubai’s property sales have slowed in recent months, with values falling at the fastest pace in the world earlier this year. A surge in revenue for Emaar was off set by a 61 percent increase in cost of sales, which the company didn’t explain in its statement."
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Sunday, 1 November 2015
National Bank of Abu Dhabi to Buy $900 Million RBS Indian Loans - Bloomberg Business
National Bank of Abu Dhabi to Buy $900 Million RBS Indian Loans - Bloomberg Business:
"National Bank of Abu Dhabi PJSC, the United Arab Emirates’ largest bank, signed an agreement with Royal Bank of Scotland Group Plc to buy about $900 million of offshore loans to Indian companies.
The deal should be completed progressively from the third quarter of 2015, subject to conditions, the bank, which is 70 percent owned by the oil-rich emirate, said in a statement posted on the Abu Dhabi stock exchange website Sunday.
Deutsche Bank AG acquired about $200 million of RBS’ Indian loan assets, people familiar with the matter said last month. The German lender also bought some Singapore and Indonesian assets from RBS, they said."
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"National Bank of Abu Dhabi PJSC, the United Arab Emirates’ largest bank, signed an agreement with Royal Bank of Scotland Group Plc to buy about $900 million of offshore loans to Indian companies.
The deal should be completed progressively from the third quarter of 2015, subject to conditions, the bank, which is 70 percent owned by the oil-rich emirate, said in a statement posted on the Abu Dhabi stock exchange website Sunday.
Deutsche Bank AG acquired about $200 million of RBS’ Indian loan assets, people familiar with the matter said last month. The German lender also bought some Singapore and Indonesian assets from RBS, they said."
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MIDEAST STOCKS-Major markets fall on Saudi debt downgrade | Reuters
MIDEAST STOCKS-Major markets fall on Saudi debt downgrade | Reuters:
"Major Middle Eastern stock markets
fell on Sunday after Standard & Poor's cut its rating of Saudi
Arabia's sovereign debt and maintained a negative outlook on it,
citing damage to state finances from low oil prices.
The downgrade will have almost no direct financial impact on
Saudi Arabia because the government and Saudi companies have
minimal foreign debt. The world's other two major rating
agencies, Moody's and Fitch, have higher ratings for the kingdom
than S&P.
But S&P's action fed into investor concern about the
long-term direction of Saudi finances in an era of cheap oil,
and about the fiscal tightening that Riyadh will probably have
to conduct next year to get its budget deficit under control."
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"Major Middle Eastern stock markets
fell on Sunday after Standard & Poor's cut its rating of Saudi
Arabia's sovereign debt and maintained a negative outlook on it,
citing damage to state finances from low oil prices.
The downgrade will have almost no direct financial impact on
Saudi Arabia because the government and Saudi companies have
minimal foreign debt. The world's other two major rating
agencies, Moody's and Fitch, have higher ratings for the kingdom
than S&P.
But S&P's action fed into investor concern about the
long-term direction of Saudi finances in an era of cheap oil,
and about the fiscal tightening that Riyadh will probably have
to conduct next year to get its budget deficit under control."
'via Blog this'
New Dubai property projects ‘at saturation point’ after ‘torrent’ of announcements | The National
New Dubai property projects ‘at saturation point’ after ‘torrent’ of announcements | The National:
"Sales prices for apartments and villas continued to decline in the third quarter of 2015 amid a “torrent” of newly announced projects, according to research firm Phidar Advisory.
The company said that the quantity of announced residential projects had reached “saturation point”, with the supply currently growing at an average rate of 3.9 per cent, outpacing demand, which currently sits at 3.7 per cent. Its five-year demand pipeline forecasts robust jobs growth of 5.8 per cent a year, as a result of new roles due to be created for both the development and servicing of Expo 2020-related projects.
If all of the launched and announced projects are built, supply would continue to outstrip demand, standing at 5.9-6.7 per cent growth per year. Yet Phidar Advisory estimates that actual supply growth will be around 2.8 per cent per year."
'via Blog this'
"Sales prices for apartments and villas continued to decline in the third quarter of 2015 amid a “torrent” of newly announced projects, according to research firm Phidar Advisory.
The company said that the quantity of announced residential projects had reached “saturation point”, with the supply currently growing at an average rate of 3.9 per cent, outpacing demand, which currently sits at 3.7 per cent. Its five-year demand pipeline forecasts robust jobs growth of 5.8 per cent a year, as a result of new roles due to be created for both the development and servicing of Expo 2020-related projects.
If all of the launched and announced projects are built, supply would continue to outstrip demand, standing at 5.9-6.7 per cent growth per year. Yet Phidar Advisory estimates that actual supply growth will be around 2.8 per cent per year."
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Low volumes may trigger massive shake-up in UAE stock broking industry | GulfNews.com
Low volumes may trigger massive shake-up in UAE stock broking industry | GulfNews.com:
"Continued low volumes on the bourses in the UAE may trigger a massive shake-up as brokerages become unprofitable, the chief executive of the country’s largest brokerage told Gulf News in an exclusive interview.
Volumes have fallen from a peak of more than Dh500 billion in 2014, when the index touched its historic peak of more than 5,000 levels to a paltry of Dh177 billion from January through September.
"
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"Continued low volumes on the bourses in the UAE may trigger a massive shake-up as brokerages become unprofitable, the chief executive of the country’s largest brokerage told Gulf News in an exclusive interview.
Volumes have fallen from a peak of more than Dh500 billion in 2014, when the index touched its historic peak of more than 5,000 levels to a paltry of Dh177 billion from January through September.
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Dubai Leads Drop in Most Middle East Stocks on Saudi Credit Cut - Bloomberg Business
Dubai Leads Drop in Most Middle East Stocks on Saudi Credit Cut - Bloomberg Business:
"Dubai’s stocks sank to the lowest level in more than two months, leading the drop in most Middle Eastern markets, on concern that Saudi Arabia’s rating cut could impact borrowing costs across the region.
The DFM General Index dropped 2.6 percent to 3,411.59 at 12:01 p.m. local time to the lowest level since Aug. 25. Saudi Arabia’s Tadawul All Share Index lost 0.4 percent after the credit rating for the Arab world’s biggest economy was cut by Standard & Poor’s, which cited an increase in the kingdom’s budget deficit after the slump in oil prices.
"The downgrade will have implications for banks and financial services sector across the region," said Muhammad Shabbir, the head of regional equities at Rasmala Investment Bank Ltd. in Dubai. "Banks’ credit ratings could come under pressure, not just for Dubai but for all across the Gulf Cooperation Council. This has implications for the costs of borrowing.""
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"Dubai’s stocks sank to the lowest level in more than two months, leading the drop in most Middle Eastern markets, on concern that Saudi Arabia’s rating cut could impact borrowing costs across the region.
The DFM General Index dropped 2.6 percent to 3,411.59 at 12:01 p.m. local time to the lowest level since Aug. 25. Saudi Arabia’s Tadawul All Share Index lost 0.4 percent after the credit rating for the Arab world’s biggest economy was cut by Standard & Poor’s, which cited an increase in the kingdom’s budget deficit after the slump in oil prices.
"The downgrade will have implications for banks and financial services sector across the region," said Muhammad Shabbir, the head of regional equities at Rasmala Investment Bank Ltd. in Dubai. "Banks’ credit ratings could come under pressure, not just for Dubai but for all across the Gulf Cooperation Council. This has implications for the costs of borrowing.""
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MIDEAST STOCKS-S&P downgrade of Saudi debt may dampen markets | Reuters
MIDEAST STOCKS-S&P downgrade of Saudi debt may dampen markets | Reuters:
"The decision of Standard & Poor's at the weekend to downgrade Saudi Arabia's sovereign debt while keeping a negative outlook on it may dampen Gulf stock markets on Sunday, preventing any substantial rallies.
S&P downgraded Saudi Arabia by only one notch and the other two major rating agencies, Moody's and Fitch, have higher ratings for the kingdom. The government and Saudi companies have minimal foreign debt, so the downgrade will not have any direct financial impact.
Nevertheless, S&P's action may feed into investor concern about the long-term direction of Saudi finances in an era of cheap oil, and about the fiscal tightening that Riyadh may have to conduct to get its budget deficit under control."
'via Blog this'
"The decision of Standard & Poor's at the weekend to downgrade Saudi Arabia's sovereign debt while keeping a negative outlook on it may dampen Gulf stock markets on Sunday, preventing any substantial rallies.
S&P downgraded Saudi Arabia by only one notch and the other two major rating agencies, Moody's and Fitch, have higher ratings for the kingdom. The government and Saudi companies have minimal foreign debt, so the downgrade will not have any direct financial impact.
Nevertheless, S&P's action may feed into investor concern about the long-term direction of Saudi finances in an era of cheap oil, and about the fiscal tightening that Riyadh may have to conduct to get its budget deficit under control."
'via Blog this'