16 avril 2008 Par La Rando

UAE stocks gain marginally

Abu Dhabi: UAE’s markets advanced marginally on Tuesday, maintaining the tight range of less than one per cent and gaining only Dh4.5 billion in market capitalisation. The Emirates Securities general index advanced 0.55 per cent to 5,955.70, sustaining a one per cent level of losses since the beginning of the year, one of the best rates among emerging markets so far. The value of traded shares remained in the vicinity of Dh1 billion, a relatively low average, given the ongoing first quarter financial disclosures. In Dubai, the general index advanced 0.92 per cent, reflecting the recovery of most of the leading shares from the losses recorded earlier in the week. The real estate sector was responsible for most of the gains, with Emaar Properties, the country’s leading listed developer, advancing 1.36 per cent to Dh11.15, followed by Deyaar Development which gained 2.6 per cent to close at Dh2.38. Emirates Integrated Tele-communications (du) and Dubai Investments were also among the best performers, advancing by four and two per cent to Dh5.93 and Dh4.16 respectively. The general index of Abu Dhabi Securities Margin ended the session on positive ground as well, recovering by 0.22 per cent to 4,853.11, on account of the relatively strong gains recorded by etisalat, the country’s leading telecommunications services provider which stood 1.15 per cent higher by the close at Dh21.95. Nevertheless, the 0.72 per cent of losses recorded by the National Bank of Abu Dhabi diminished the total market gains, given that the real estate developers and energy companies reported a mixed performance. Aldar Properties remained unchanged at Dh10.80, while Sorouh Real Estate retreated 0.42 per cent to Dh9.45. Meanwhile, Abu Dhabi National Energy’s (Taqa) gains of 0.63, lifting the price up to Dh3.18, were offset by the losses of 0.97 per cent recorded by Dana Gas, which stood at Dh2.04 by the close. Gulf markets Elsewhere in the region, the Oman index closed higher for the fourth successive session, adding 0.02 per cent to 10,960.46 after hitting a record high of 11,011.29 during the day. Oman Cement and Bank Dhofar led the gains, rising 4.01 per cent and 1.36 per cent respectively. Saudi Arabia’s main index ended lower for the first time in seven trading days, led by declines in banking stocks. Bank fell 2.03 per cent and Al Jazira Bank dropped 3.14 per cent after its first-quarter profit declined 49 per cent on a dive in income from stock market activity. In Qatar, the main index rose 3.22 per cent to 11,013.02, its biggest one-day jump since February 4 after hitting a year high during trading. Industries Qatar surged 9.35 per cent after it posted record profit in the first quarter. – With inputs from Reuters

14 avril 2008 Par La Rando

Dubai plans dirham bonds to access Gulf debt markets

Dubai: The Dubai government will access the debt capital markets through a dirham-denominated issue under its recently established Dh15 billion medium-term note (MTN) programme. The objective of the issuance is to fund the local infrastructure needs of the government and simultaneously contribute to the development of the domestic bond market. Sami Al Gamzi, director general of the Dubai government’s finance department, said that Emirates NBD and Standard Chartered Bank are the arrangers of the MTN programme, and the joint lead managers and book-runners in respect of the inaugural issue under the programme. The roadshows for the transaction have been conducted in Dubai and Bahrain. The issue pricing and size will be determined through a book-building process, subject to market conditions. Application has been made to list the dirham bonds on the Dubai Financial Market. Source: WAM

11 avril 2008 Par La Rando

UAE forex reserves jump most in 18 years

Dubai: The UAE’s foreign exchange reserves surged 50 per cent to $75 billion in November, data showed yesterday, shedding new light on central bank concern that month about the dirham currency’s dollar peg. The data for November, the latest available, showed reserves growing at their fastest pace in at least 18 years, increasing inflation pressures that probably took the rate of price growth in the country into double digits last year. UAE Central Bank Governor Sultan Nasser Al Suwaidi said in November the state was under pressure to drop its peg to the declining dollar and might consider linking to a basket instead. However, on Wednesday, the government accepted a committee’s recommendation to keep the peg at the current rate. « The November [reserves] numbers do not bode well for the UAE’s inflation outlook, » said Caroline Grady, economist at Deutsche Bank in London. « Via the money multiplier, the sharp increase in the money base could well feed through into broad money and inflation. » Reserves jumped from $50.4 billion in October, the biggest rise since data going back to 1990, according to the data provided by a central bank treasury official who did not want to be identified. Inflation in the UAE rose to a 19-year high of 9.3 per cent in 2006 and probably accelerated to 10.9 per cent last year, according to National Bank of Abu Dhabi. Source: Reuters

8 avril 2008 Par La Rando

Burj Dubai is world’s tallest man-made structure

Dubai: Burj Dubai has surpassed the United States’ KVLY-TV mast in North Dakota to become the world’s tallest man-made structure. Burj Dubai is now 629 metres high while KVLY-TV, which held the record for the world’s tallest supported structure since 1963, has a height of 628.8 metres. Burj Dubai is already the world’s tallest building, and at 160 storeys, is taller than Taipei 101 (508 metres) in Taiwan and CN Tower (553.33 metres) in Canada. Burj Dubai is billed to meet all four criteria listed by the Council on Tall Buildings and Urban Habitat (CTBUH), which classifies the world’s tallest structures. CTBUH measures the height of buildings to the structural top, the highest occupied floor, the top of the roof and the tip of the spire, pinnacle, antenna, mast or flagpole. The KVLY-TV mast in Blanchard, North Dakota, is a television transmitting mast, which was completed in 1963. Source: Agencies

5 avril 2008 Par La Rando

Bahrain says Abu Dhabi race will not cut F1 boon

Dubai: A Formula One race in Abu Dhabi from 2009 won’t undercut the $548 million Bahrain generates from hosting a Grand Prix, the head of Bahrain’s Economic Development Board said. « We view this as a complement and not competition, » chief executive officer Shaikh Mohammed Bin Eisa Al Kalifa said. « It brings the eyes of the world to the region two times a year and therefore generates interest and exposure. » Abu Dhabi was added to Formula One’s 2009 calendar last year and, according to a recent report, Qatar wants to host a Grand Prix once it upgrades its Losail circuit. The economic benefit of the Bahrain race last year surged 46 per cent from 2006, Dubai-based Godo Research and Marketing said in a report last month. Source: Bloomberg

3 avril 2008 Par La Rando

UAE seeks to boost trade ties with Egypt

Cairo: Mohammad Hosni Mubarak, the Egyptian president, yesterday received Shaikh Mansour Bin Zayed Al Nahyan, Minister of Presidential Affairs. The meeting was attended from the Egyptian side by Rashid Mohammad Rashid, minister of trade and industry and from the UAE side, by Mohammad Bin Dha’en Al Hamili, Minister of Energy and Sultan Bin Saeed Al Mansouri, Minister of Economy. Shaikh Mansour conveyed to the Egyptian President greetings from President His Highness Shaikh Khalifa Bin Zayed Al Nahyan and his best wishes for the progress and prosperity of the Egyptian people. During the talks, Shaikh Mansour reiterated UAE’ s keenness in strengthening bilateral ties with Egypt, especially in the fields of economy, investment, tourism and culture. The two also discussed the bilateral relations between the UAE and Egypt and ways to enhance them. Shaikh Mansour also met Ahmad Nazif, the Prime Minister of Egypt. The two discussed bilateral relations and cooperation on the investment and trade levels, as well as encouraging the private sector to set up investment projects, in the interest of the two countries. Shaikh Mansour and the accompanying delegation arrived in Egypt yesterday morning and was received by Rashid Mohammad Rashid and the UAE’ s ambassador in Cairo. Source :WAM

31 mars 2008 Par La Rando

Dubai stocks suffer biggest one-day fall in two month

Dubai: Arabian Gulf shares fell on concern that a possible recession in the US will deter investments in the region and as investors await first-quarter results. Dubai’s main index dropped almost three per cent, posting its sharpest one-day decline in two months, to 5,248.88 led by Emaar Properties and Dubai Financial Market Co (DFM). Abu Dhabi’s main benchmark declined 1.34 per cent to 4,602.56. Saudi Arabia’s Index slid for a third day as shareholders boosted cash reserves to fund their subscription to Inmaa Bank’s 10.1 billion riyal initial public offering, the kingdom’s largest in five years. Sorouh Real Estate Co closed at its lowest in two months after founding members were cleared to sell their shares in the company. Dubai Investments PJSC declined for a fifth day as the company started a joint venture. Saudi Basic Industries Corp slid for a third day. Main losers Emaar and DFM shed 3.56 per cent and 6.64 per cent, respectively. In Abu Dhabi, Emirates Telecommunications Corp (etisalat) and Sorouh Real Estate lost 1.43 per cent and 5.46 per cent, respectively. « We are not seeing a lot of fresh capital being injected into the market, » said Blair Look, head of asset management at Al Mal Securities, in a telephone interview from Dubai. Dubai Financial Market PJSC said foreign investors bought Dh2.095 billion of shares last week, almost as much as the 2.007 billion they sold. Sorouh retreated 5.5 per cent to Dh8.14, its lowest close since January 31. Dubai Investments fell 3.7 per cent to Dh5, bringing the five-day slump to 11 per cent. Saudi Arabia’s Tadawul All Share Index retreated 1.3 per cent, bringing the three-day fall to 4.8 per cent. The Muscat Securities Market 30 Index retreated 0.9 per cent, falling for a seventh day. The Kuwait Stock Exchange Index lost less than 0.1 per cent. The Bahrain All Share Index added 0.5 per cent, snapping four days of declines, while Qatar’s Doha Securities Market Index was unchanged. Source: Bloomberg

27 mars 2008 Par La Rando

WCT gets bigger F1 contract from Abu Dhabi

Kuala Lumpur: Malaysia’s WCT Engineering said on Wednesday it has won an extra 800 million ringgit ($252 million) contract for its Formula 1 race-track project in Abu Dhabi, raising the total contract value to 2.1 billion ringgit. Executive director Loh Siew Choh said the project would now be completed in June 2009, six months later than originally scheduled, because of the additional work. « The client wanted us to do more things. We have [secured] an additional work worth 800 million ringgit, » he said at an investment conference. « The value is likely to increase. » « Right now, the project is on time, » Loh said. WCT, which specialises in building F1 tracks, had won the Abu Dhabi contract last July. The company has built F1 race tracks in Malaysia and Bahrain. Source: Reuters

27 mars 2008 Par La Rando

Gulf lenders plan Islamic bank and exchange

Dubai: Gulf banks and individual investors are planning to set up a $3 billion Islamic investment bank and an Islamic stock exchange in Bahrain by 2009, the chief executive of Al Baraka Banking Group said. « It will be the largest bank in the region for the issuance of sukuk and will create a secondary market for sukuk, » Adnan Yousuf said yesterday. The bank, which is aiming to be a global player, would also take projects from a conceptual stage to financing and eventually flotations, Yousuf said. Al Baraka is one of the lenders that is looking to invest in the new bank, which will have a paid-up capital of $3 billion and plans to start operations in 2009. The bank will have a targeted capital of $11 billion, Yousuf said. Other banks that have shown an interest include Saudi Investment Bank and Bahrain Islamic Bank. « We are in discussions with the central bank of Bahrain and regulators and hope to finalise the details by year-end, » he said. Advisors Ernst & Young has been appointed to advise on the bank’s establishment. The project is being promoted by the chairman of the General Council of Islamic Banks, Shaikh Saleh Abdullah Kamel, Yousuf said. Value of assets under management in Islamic institutions has been growing at over 20 per cent a year and reached $900 billion in 2007 and is set to hit $2 trillion by 2010, Ernst & Young said in February. Yousuf said Bahrain also planned to set up a secondary stock market in Bahrain complying with Islamic law to encourage regional investment. Source: Reuters

26 mars 2008 Par La Rando

Etisalat cash dividend at 35%

Dubai : The general assembly of Etisalat has approved a 35 per cent cash dividend of the nominal share value for the second half of 2007 to be distributed to shareholders. This brings the total cash dividend distributed in 2007 to 60 per cent of the nominal share value. In its meeting on Monday, the assembly also approved the distribution of a 20 per cent share dividend, with one share distributed for each five shares. On the demand by some assembly members to allow foreigners to acquire Etisalat shares, Sultan Bin Saeed Al Mansouri, Minister of Economy, who represented the government in the assembly meeting, said Etisalat submitted a request to review the government concession and setting a proper mechanism for it. Etisalat also requested to transform from an establishment into a company, and the request has been submitted to the concerned authorities to take the proper decision. The authorities will also discuss the issue of foreign ownership of Etisalat shares, Al Mansouri said. Mohammad Hassan Omran, Etisalat Chairman, said the establishment is committed to providing the latest technologies available and world-class services, and has invested more than Dh3.4 billion to enhance its infrastructure in 2007. In a statement following the meeting, Omran said Etisalat would seek to become to a company, which would enhance its financial performance. « The transformation into a company requires an Emiri decree, since Etisalat was set up by a special law, which must be amended to allow the switchover onto a public joint stock company, » Omran said. Source: WAM