Aranca Blog

GCC markets posted gains with Qatar and the UAE advancing the highest this week by 3.7% and 4%, respectively. Banking stocks reported steady gains across markets and markets in Saudi Arabia, Oman and Kuwait also displayed modest gains of less than 0.5%, while Bahraini markets posted 1.14% gain.

UAE: Value buying emerged in the UAE markets and indices recovered from the previous week’s downtrend. DFM and ADSM indices gained 4% and 3%, respectively, this week. Buying interest was witnessed across sectors with banking, real estate and telecom advancing 3–7% this week. The notable gainers include Shuaa Capital (16%) and Emaar (7%). Telecom major Etisalat added just 1% this week after reporting weak numbers. However, rival Du gained 7% as investors expected Etisalat’s poor numbers to translate into market share gains for Du. Abu Dhabi Shipping (-11%) and Dubai Insurance (-10%) were the major losers during the week.

Saudi Arabia: TASI commenced the week on a downtrend, but easing inflation numbers helped markets regain their lost ground and close marginally higher at 6282, an increase of 0.4%. The petrochemicals index remained flat, while cement and construction indices advanced 0.5–1% this week. SAMBA gained 4% this week, while SABIC advanced less than 1%. Kingdom Holdings saw profit booking this week and was down 3%. Other notable losers this week were Riyadh Bank (-1%), SAFCO (-2%) and Kayan (-1%).

Kuwait: Kuwaiti markets traded marginally higher (0.43%) this week to close at 7065 points, led by the banking sector. Investments and real estate ended on a somewhat flat note. The government’s investment plans and anticipated signs of a recovery in construction demand enabled the cement index to post steady gains this week; Ras Al Kaimah and Um Al-Quwain Cements were up 14% and 13%, respectively. Among heavyweights, NBK gained 7% this week, while Kuwait Finance House advanced 3.8%. Notable losers were Zain (-2%) and Gulf Investment House (-2.7%).

Oman: The Omani market posted a moderate 0.30% gain this week and closed at 6530 points. Banking stocks extended their gains with Oman International Bank (OIBB) and Bank Muscat (BKMB) advancing 5.7% and 4.9%, respectively. Ahli-Bank and National Bank of Oman (NBOB) also posted weekly gains of 2% each. Among heavyweights, Rasyut Cement and Omantel pulled back from last week’s losses and advanced 2.3% and 1%, respectively.

Qatar: Doha Securities Market recovered from the downtrend in previous two weeks and advanced 3.7% to close above the 6800 level, driven by strong gains in banking and industrial indices. Among heavyweights, Industries Qatar (5%), Qatar National Bank (6.7%) and QIB (5.3%) were the highest gainers. Notable losers were Ezdan Real Estate (-7%) and Qatar Shipping (-5.3%).

Bahrain: The Bahrain Stock Exchange advanced 1.14% this week to 1489 points with the banking sector index rising 4.6%. Among heavyweights, Al Ahli United (6%), Bahrain Islamic Bank (5.3%) and BBK (4.9%) advanced this week. Arab Banking Corp (-10%) and Inovest (-3.5%) were the notable losers.

To read complete commentary, please download the file.

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ARANCA is a leading provider of customized end-to-end investment research, business and IP research and IRC 409A valuation services to global clients. To know more about us and our services, click here.

February 5th, 2010 | Tags: ADSM, Bahrain, DFM, Emaar, Etisalat, Kuwait, Qatar, Saudi Arabia, Shuaa Capital, TASI | Category: GCC Weekly | Leave a comment

All GCC markets, except Oman, ended the week on a negative note. UAE market continued to witness selling pressure, while Saudi market pulled back from last week’s corporate earnings-led rally. Oman appeared to be bucking the GCC trend on the back of robust earnings results through the week; MSM index closed 1.67% higher. Kuwait and Bahrain markets ended marginally lower.

UAE: The UAE market extended last week’s losses; DFM and ADSM indices dropped 3.2% and 0.3%, respectively. Concerns over the outlook of the construction sector and weak money supply data continued to plague investor appetite for real estate stocks that declined 6% and 8% on DFM and ADSM, respectively. Major losers for the week were Aldar (-8.5%), Sorouh (-2.9%) and Arkaan Building Materials (-8.7%). 

Saudi Arabia: Investors exercised caution and profit booking took the Saudi market down 2.03% at 6253 levels. Petrochemicals counters continued to trade amid selling pressure and the sectoral index dropped 3.43% this week. Majors SABIC and Kayan lost all of previous week’s gains to close 3% lower. Other notable losers this week were Saudi Cables (-9%), SIIG (-6%) and Samba (-5%). Amongst the notable gainers were Kingdom (+7.8%) and Yamama Cement (+3.7%).

Kuwait: The Kuwaiti market closed marginally lower (-0.35%) this week at 7035 levels. The index, however, ended on a positive note in the last trading session. Investments and Real estate indices shed 2% and 1.5%, respectively, while Services index closed 1% higher. Among heavyweights, Telecom giant Zain dropped 8.8% this week. NBK (-3.6%) and CBK (-2.1%), too, were among the major losers. Top gainers for the week were United Industries (+28%), NCCI (+19%), Aref Energy (+16%) and Qurain Petrochemicals (+9%).

Oman: The Omani market bucked the GCC trend. Supported by corporate earnings results, the MSM market gained 1.67% this week to close above the 6500 levels. BKMB reported weak numbers; however, bonus issue and dividend kept the investor interest intact, thereby helping the stock gain 7.8%. Among heavyweights, Omantel extended last week’s losses, while bullish sentiment continued to persist at the Bank Dhofar counter that rose another 7% this week.

Qatar: Doha Securities Market extended the losses and closed at 6592, down 2.7%. Despite positive news flows pertaining to investment plans, investors sold off on concerns over ailing corporate earnings. Among heavyweights, Industries Qatar (down 6%) and Ezden Real Estate (down 5%) were the biggest losers. United Development and Masraf Al Rayan were amongst the most traded counters and stocks were down 19% and 6%, respectively.

Bahrain: The Bahrain Stock Exchange closed marginally lower (-0.35%) at 1472. Amongst heavy weights, AlBaraka gained 5%. Banking counters exhibited mixed trends with AL Ahli United gaining 1%, while NBB shedding 2.5% this week.

To read complete commentary, please download the file.

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ARANCA is a leading provider of customized end-to-end investment research, business and IP research and IRC 409A valuation services to global clients. To know more about us and our services, click here.

January 29th, 2010 | Tags: Bank Dhofar, DFM and ADSM, Doha Securities, Telecom giant Zain | Category: GCC Weekly | Leave a comment

GCC markets ended the week on a mixed note. The UAE market witnessed selling pressure owing to renewed concerns over the debt level of Dubai World. The Saudi market edged higher due to strong corporate earnings results, while markets in Qatar and Oman closed lower. The Kuwaiti government’s investment plans were viewed positively—the KSE gained 1.08% this week.

UAE: The UAE market continued to witness selling pressure due to concerns related to the debt level of Dubai World; despite Nakheel making coupon payments, investors remained risk averse, thereby leading to a fall of 3.2% and 2.6%, respectively, on DFM and ADSM. Action was once again centered on the banking and real estate sectors, which declined 4% and 5%, respectively. Major losers during the week were Emaar (-6.5%), Sorouh (-8.4%) and Shua Capital (-7.3%).  

Saudi Arabia: The Saudi market gained 1.9% this week led by corporate earnings results of banking and petrochemicals companies; the respective sector indices rose 5% and 4%. Kingdom Holdings, which reported a turnaround to profitability, Riyad Bank and Saudi Hollandi were among the top gainers, increasing by 18%, 12% and 8%, respectively. Despite posting a 59% fall in full year profitability, petrochemical major, SABIC gained 2% this week, reflecting better-than-expected Q4 numbers. Saudi Steel Pipes (-6%), Bank Al Bilad (-5.5%) and Sahara Petrochemicals (-5%) were among the major losers.

Kuwait: The Kuwaiti market gained 1.08% this week and closed above the 7000 level. Real estate and industrial indices gained 2% and 3.5%, respectively, while banking and insurance indices ended flat. The government’s proposed investment plan worth $120 Bn was viewed positively by investors and stocks such as United Industries (+26%) and Abyaar Real Estate (+21%) surged during the week. Among heavyweights, Zain (-1%), Kuwait Finance House (-1.8%) and CBK (-1%) were the highest losers.

Oman: The Omani market continued to witness selling pressure during the week, ending 2.17% down to 6405 points. Unlike the previous week’s good corporate numbers, Omani companies reported a mixed set of earnings results this week. Al Jazeera Steel Products incurred a net loss for the year and the stock dipped 11%. NBOB reported a weak set of numbers, which led to a decline of 2.4% in the stock. Among heavyweights, Oman Telecommunications Co (Omantel)’s stock fell 4.7% on rumors of a stake sale, while Bank Dhofar extended its previous week’s gain by another 6.2% this week on back of strong results.

Qatar: Doha Securities Market continued with its losing trend and reported a decline of 1.2% to close at 6772 points. Among heavyweights, Doha Bank and Qatar Telecom were the highest gainers, rising 6.5% and 4.2%, respectively. Real estate witnessed selling pressure this week; Qatar Real Estate and Barwa Real Estate closed at 6.8% and 5.7%, respectively.

Bahrain: The Bahrain Stock Exchange closed marginally higher (+0.4%) and closed the week at 1477 points. Gulf Finance House and Al Ahli United Bank were the star performers, gaining 9.8% and 8.3%, respectively. AlBarka (-11%), Esteraad (-7%) and Ithmaar Bank (-4.5%) were among the major losers.

To read complete commentary, please download the file.

________________________________________________________________________

ARANCA is a leading provider of customized end-to-end investment research, business and IP research and IRC 409A valuation services to global clients. To know more about us and our services, click here.

January 22nd, 2010 | Tags: Bank Al Bilad, Dubai World, Emaar, Sahara Petrochemicals, Saudi Steel Pipes, Shua Capital, Sorouh | Category: GCC Weekly | Leave a comment

GCC markets ended the week on a negative note, with Dubai (down 7%) cracking the most. All markets, except Bahrain, failed to extend last week’s gains. Investors in the region looked to the corporate earnings season for cues; mixed results were reported in Saudi Arabia.

UAE: UAE markets saw heavy profit booking, ending the two-week winning streak. Action was once gain centered around the banking and real estate counters. DFM and ADSM ended with weekly losses of 7% and 2.5%, respectively. The real estate sector index witnessed double digit losses during the week, with majors such as Emaar and Aldar plunging 13% and 12%, respectively. Banking stocks, too, witnessed selling pressure during the week; NBAD dropped 13%.

Saudi Arabia: The Saudi market made a good start to the week; however, selling pressure through mid-week led to a flat close on the index. Mixed corporate earnings rendered the market directionless. While Bank Saudi Fransi reported a 12% fall in net profit, Riyadh Bank delivered strong growth of 15% in its latest quarterly results. Among the major losers were SABB (-7%) and NAMA Chemicals (-3%). Kingdom Holdings (up 17%) emerged as a top gainer in the week.

Kuwait: Kuwait Stock Exchange, too, started the week well, but profit booking through mid-week pushed the index marginally lower to close below 7000 levels. Banking and Insurance indices were down 3% each. Among the heavy-weights, losers included NBK (-1.8%), Kuwait Finance House (-5.3%) and Global Investment House (-5%).

Oman: Despite strong macroeconomic data, Muscat Securities Market failed to extend its two-week rally due to profit booking. MSM closed flattish at 6527 levels. Strong earnings results helped banking majors Bank Sohar and Bank Dhofar gain 5% and 2.7%, respectively. Ahli Bank (+9%) was the major gainer in the financials space. NBOB closed flat, while Bank Muscat witnessed a 5% fall in the week.

Qatar: The Doha Securities markets lost ground this week, erasing last week’s gains to close down 2.6% at 6855. Insurance sector was once again a drag to the market with the sectoral index closing down 6.8%. QNB’s strong earnings results failed to excite the markets and closed flat for the week. Banking heavy-weights, CBQ and Doha Bank were down 5% and 4%, respectively. Barwa Real Estate (down 10%) was the biggest loser in Qatar this week.

Bahrain: The Bahrain Stock Exchange extended last week’s gains and closed the week at 1471 levels, up 1.38%. Strong rally in commercial banks drove the markets higher; Al Ahli Bank rose 9% and Ithmaar Bank added 2.3%.

To read complete commentary, please download the file.

________________________________________________________________________

ARANCA is a leading provider of customized end-to-end investment research, business and IP research and IRC 409A valuation services to global clients. To know more about us and our services, click here.

January 15th, 2010 | Tags: ADSM, DFM, GCC< Markets, Global Investment House, Kuwait Finance House, Muscat Securities Market, NAMA Chemicals, NBAD, Riyadh Bank | Category: GCC Weekly | Leave a comment

GCC markets ended the first trading week of the year on a positive note. All markets, except Bahrain, ended the week with 1–3% gains. Oman (up 3%) and Saudi Arabia (up 2.3%) gained the most.

UAE: UAE markets extended last week’s gains, with DFM and ADSM adding 1.9% and 1.2%, respectively, in the week. News of DP World meeting its debt obligation, coupled with the opening of the world’s tallest tower, Burj Khalifa, lifted investor sentiment. The real estate sector surged 6% in the week. Broad-based bullish trends were visible with participation across Consumer, Transportation and Telecom counters. Notable gainers during the week were Sorouh (+11.7%), Emmar (+4.92%), Aldar (+6.7%) and Aramex (+4.45%).

Saudi Arabia: The Saudi market recovered from last week’s downtrend to close 2.27% higher this week. Petrochemical and Telecom sectors saw heavy buying interest in Saudi Arabia. Rising crude prices triggered optimism in petrochemical counter and market heavy-weights SABIC (+5.45%), Kayan (+3.57%) and Yansab (+6.58%) edged higher in the week. Board level changes in Samba drove shares up 4.45%, while approval of capital structure changes in Kingdom Holding was viewed positive by investors, helping the stock surge 9.57%.

Kuwait: Kuwait Stock Exchange closed marginally positive at 7011. The losses in trade in early days of the week were more than offset by strong rally in the last three trading sessions. Banking and Food counters saw buying interest with the sectoral indices gaining 1.28% and 1.9%, respectively. Positive news on real estate sector sales was offset by weakness in money supply trends in Kuwait. Among the major gainers included CBK (+3.2%), Kuwait Finance House (+3.63%) and Gulf Finance House (+7.6%).

Oman: Muscat Securities Market continued its bullish trend and emerged as the highest weekly gainer within the GCC markets. Favorable macro headwinds of rising money supply, trade surplus, new tax consideration and additional investment plans announced by authorities helped the market gain 3.23% in the week. The rally was widespread with banking and financial services leading the pack. Major gainers in the financials space included BKMB (+9.9%), NBOB (+4.1%) and ONIC (+11.7%).

Qatar: The Doha Securities markets recovered last week’s losses and rose 1.12% during the week to close above 7000 levels. Insurance and Banking space showed strength with the sectoral indices gaining 4.98% and 1.56%, respectively. Heavy-weights, QNB and CBQ gained 1.8% and 1.9%, respectively. Doha Bank ended 2.3% higher.

Bahrain: The Bahrain Stock Exchange closed marginally lower at 1450, beginning the year on a negative note. Investments and banking sector ended in the red, with Ithmaar Bank (down 10.5%) witnessing profit booking to end its two-week winning streak. Market heavy-weights, AUB and NBB rose 1.1% and 1.7%, respectively. AlBaraka Banking closed down 5.6% in the week.

To read complete commentary, please download the file.

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ARANCA is a leading provider of customized end-to-end investment research, business and IP research and IRC 409A valuation services to global clients. To know more about us and our services, click here.

January 8th, 2010 | Tags: Aldar, Aramex, CBK, Emmar, GCC< Markets, Gulf Finance House, Kuwait Finance House, Muscat Securities Market, Sorouh | Category: GCC Weekly | Leave a comment

Though twin blows of GRS expiry and the turmoil in global financial markets point to an uncertain future for IRPs, diversifying revenue streams and catering to buy-side demand would be key to IRPs’ future prospects 

London: January 6 2010: Aranca, a leading global provider of on-demand custom investment and business research services, has recently released the findings from its global survey on the impact of Global Research Settlement (GRS) expiry on Independent Research Providers (IRPs). Enforced in 2003, the $1.4 billion worth GRS expired on July 31, 2009 leaving scores of IRPs with no regulatory safety net to push independent research. Coming in the midst of a global financial crisis and recession, the GRS expiry has raised the stakes for IRPs in terms of survival.

Through an extensive online survey hosted on the Aranca website, Aranca sought to find out the views of leading IRPs on the road ahead for the industry. Titled “The Road Ahead: Life after the Global Research Settlement Expiry,” the survey tried to find answers for some key questions including: 

-       How will the GRS expiry alter the IRP industry landscape?

-       What are the key challenges faced by the IRP industry post GRS expiry?

-       Which are the potential services or segments that would help the IRP industry sustain and diversify service offerings?

-       Will the Chinese Walls survive in the post GRS era?

-       What is the road ahead for the IRP industry?

Even after five years of GRS regime, there are a few who think that GRS has been largely successful in creating and maintaining Chinese walls between investment arms and research departments, while several others believe that the GRS has been an complete disappointment. Several IRPs braced themselves to face the impact of GRS expiry by putting in place measures for developing alternative revenue sources, dealing with changing industry dynamics and building their capabilities.

Madhusudan Rajagopalan, Director, Aranca India Operations said, “While we knew that the IRP landscape is set to alter post GRS expiry, what surprised us were the diversity of opinions on emerging business models and IRP industry’s efforts to gather new skills and remain firm in the face of adversity.”

Among the key findings of the Aranca IRP Survey 2009, are:

-       The GRS expiry will continue to hurt the IRPs in the short term, as the industry will experience pressure on revenues.

-       Highly fragmented IRP industry is ripe for consolidation, and global financial market uncertainties may hasten that process

-       Clients will demand independent research solutions that are not limited to the standard confines of valuations and research notes, but are innovative and exclusive

-       IRPs that stay ahead on capabilities, are open to new strategies of building and augmenting product basket, exploring newer avenues for both revenue generation as well as cost-savings, will thrive.
 

Note for Editors: If you require charts, executive summary or wish to receive full copy of the report, please write to info@aranca.com. 

 
About Aranca:
Aranca is a global provider of end-to-end customized investment and business research, valuation services and intellectual property research services. With a unique blend of market knowledge, research expertise and flexible engagement models, Aranca provides cost-effective, world-class research services customized to client’s specifications. Established in London in 2003, Aranca has emerged as a trusted research partner for a variety of global clients. Aranca’s financial research offerings include equity research, financial modeling and valuation, technical analysis, forensic accounting, market summaries and thematic research notes. Our research solutions are backed by robust information technology infrastructure, world-class processes, experienced analysts with cross-disciplinary expertise and in-depth knowledge of several industry sectors. For more information, please visit www.aranca.com

 
For more information, contact:
Srinivas Macha
VP, Corporate Communications, Aranca
+91.22.4044 9902
srinivas.macha@aranca.com

January 6th, 2010 | Tags: Global Research Settlement, GRS expiry, Independent Research Providers, IRP | Category: News@Aranca | Leave a comment

GCC markets witnessed mixed trends in the last trading week of the year 2009. While UAE, Oman and Bahrain markets ended on a positive note, those in Qatar, Saudi Arabia and Kuwait closed 1-2% lower in the week ended December 31, 2009.

UAE: UAE markets recovered after last week’s downtrend. The DFM and ADX gained 2.5% and 1.7%, respectively. The upturn in the week was led by banking and insurance sectors along with telecom. Emirates Insurance was the top gainer this week (+20%), while Du posted a healthy 5% gain in the week.

Saudi Arabia: The Saudi market shed last week’s modest gains to close 1.96% lower this week as concerns over rising inflation impacted the markets. Almost all sectoral indices closed in the red; financial services (down 3%) and industrial sector (down 4%) were the major losers. Notable losers in Saudi Arabia were Samba (down 4.3%) in banking, DaL Arkaran (down 5.4%) in real estate, and Petro Rabigh (down 4.5%), Yansab and Kayan (down 1.5% each) in the petrochemicals space.

Kuwait: Kuwait Stock Exchange witnessed marginal loss of 0.7% to close the week at 7000, but saw mixed trends across sectors. While banking and investment sectors closed in the red, insurance sector posted a healthy 6% gain during the week. Majors such as NBK and Gulf Bank extended their gains, while CBK shed 4% on back of a C Rating by Moody’s. Telecom major Zain extended last week’s gains to add another 3% during the week. Prominent among the losers included Kuwait Finance House (-7%), Al-Ahlia Holding (-18%) and Aref Investment Group (-18%).

Oman: Muscat Securities Market bucked last week’s trend and emerged as the most bullish GCC market this week. The market posted a weekly gain of 3.27% to close at 6369. The rally was widespread, with banking and financial services leading the pack. Major Banks—BKMB, NBOB, OIBB—posted notable 2-3% gains in the week.

Qatar: The Doha Securities markets lost 1.2% during the week to close below 7000 levels at 6959. The decline was led by weakness in the banking and financial services space. QIA’s stake purchase plans in banking sector were closely watched by investors. Heavy-weights QNB and QIB lost 4% and 3%, respectively, this week. Doha Bank and CBQ ended almost flat in the week. Real estate major Ezdan was the biggest loser in Doha market, posting a weekly loss of 5%. 

Bahrain: The Bahrain Stock Exchange closed at 1458, ending the year on a marginal positive note. Investments and banking sector ended in the green, while weakness persisted in the insurance space. Ithmaar bank continued to show strength, extending gains by another 14% and emerged as the biggest gainer of the week. Market heavy-weight AUB posted a 4% gain this week.

To read complete commentary, please download the file.

________________________________________________________________________

ARANCA is a leading provider of customized end-to-end investment research, business and IP research and IRC 409A valuation services to global clients. To know more about us and our services, click here.

December 31st, 2009 | Tags: BKMB, DFM and ADX, Emirates Insurance, NBOB, OIBB | Category: GCC Weekly | Leave a comment

News & Views General

• Topaz Energy and Marine, a wholly owned subsidiary of Oman’s Renaissance Services, divested its offshore support vessel TEAM Siam to Thailand’s Mermaid Offshore Services Ltd for $29.5 Mn.
• Bahrain Flour Mills Company received about BD10 Mn as a government subsidy in 2009, due to the rise in the global wheat prices. The company is expected to receive a subsidy of BD14 Mn in 2010.
• UAE awarded a $20.4 Bn contract to the Korean-led consortium to build four nuclear power plants. The contract includes construction, commissioning and fuel loads for four 1,400 MW reactors.
• ABB bagged an order worth $21 Mn from Saudi based SOLB South Steel Company to design, supply, and install a 132-kv substation in Jazan Economic City.
• Qatar Petroleum hiked its 2010 budget oil price to $55 per barrel from $45 in 2009, citing revival in oil prices. The increase will come into effect from January 2010
• Saudi Arabia’s real GDP is expected to rise by 4.1% in 2010, due to the rise in the domestic demand- EFG Hermes.
• Orascom Telecom is considering paying 20% of $596.6 Mn claim by Algeria for back taxes and penalties.
• French nuclear energy giant Areva’s Transmission and Distribution (T&D) division won a 200 Mn euro order from Dubai Electricity and Water Authority for supply of 11 high voltage gas-insulated substations.
•  Saudi Hollandi Bank has raised SR725 Mn from the sale of its second sukuk.
• Saudi Kayan Petrochemical Company signed a preliminary agreement with South Korea’s Daelim Industrial Company to build a petrochemical plant in Jubail.
• Saudi government has allocated SR61 Bn to boost the Kingdom’s healthcare system through key projects including construction of new hospitals in the 2010 budget.
• Saudi Aramco has invited firms to bid for the contract to build its SR1.5 Bn King Abdulaziz Centre for Knowledge and Culture in the Eastern Province.
• Oil & Natural Gas Corporation Limited awarded Abu Dhabi based National Petroleum Construction Company an EPC contract worth $162 Mn for RS-12 Well Platform Project at offshore Mumbai High Field.

Real Estate and Private Equity

• Kuwait Finance House signed $242 Mn worth direct residential real estate investment deal in Chicago. The project which involves 40 floors and more than 80 flats is scheduled for completion by the end of 2011.
• Abyaar Real Estate Development signed an agreement with ‘Better Life’, to supply its project ‘Acacia Villas’ with kitchen equipment.
• Drake & Scull International Board of Directors approved the acquisition of Drake & Scull International for Electrical Contracting, owned by Drake & Scull Group and Kuwait Holding Company.
• Convrgnt Value Engineering LLC has signed multi-million Dirham agreement with Jashanmal Group to build its new Headquarters at Al Barsha.

December 28th, 2009 | Tags: Abyaar Real Estate, Drake & Scull International, French nuclear energy, Orascom Telecom, Qatar Petroleum, Saudi Kayan Petrochemical Company | Category: GCC News | Leave a comment

News & Views General

• Gulf Finance House bought back $9 Mn worth of sukuk in the fourth quarter of the year.
• US-based Ripplewood Holdings sold the remaining 4.7% stake in Egypt based Commercial International Bank.
• Abu Dhabi government announced the establishment of the Emirates Nuclear Energy Corporation, which will award AED151 Bn worth of contract to one of consortia from South Korea, France, US and Japan.
• Gulf Finance House’s chief executive Ahmed Fahour has resigned. Group deputy chief executive Ted Pretty has been named the acting CEO.
• Arab Banking Corporation, a leading banking group based in Bahrain, plans to increase its paid up capital from $2 Bn to $3.11 Bn by way of a priority rights offering to existing shareholders.
• Zain Saudi Arabia reached a break-even point in November as subscribers of the kingdom’s third mobile operator hit 6 Mn.
• Khalijia Invest, a specialist in corporate finance and asset management plans to start operations across Saudi Arabia in compliance with Shariah guidelines after it got approval from the Kingdom’s Capital Market Authority.
• UAE Ministry of Economy signed a MOU with Tanmia, the National Human Resource Development and Employment Authority, to strengthen national creativity and innovation in SME sector.
• Zamil Group signed a memorandum of understanding with Royal Vopak of the Netherlands to develop a joint venture for the Middle East and North Africa region. The joint venture is aiming to build liquid and liquefied natural gas terminal facilities across the Mena region.
• Standard & Poor has revised its Banking Industry Country Risk Assessment (BICRA) of the State of Kuwait (AA-/Stable/A-1+) to Group 5 from Group 4 on increased economic risk pressurizing Kuwait’s banking industry.
• Kuwait’s EQUATE Petrochemical Company officially announced the commencement of operations of Kuwait Paraxylene Production Company’s USD2.0 Bn complex to produce Paraxylene and Benzene.
• Moody’s Investors Service has downgraded the Class A, B, C and D notes issued by UAE CMBS Vehicle No. 1 Limited.
• Dubai’s state-owned conglomerate Dubai World will present a standstill offer to banks in early January 2010 as the company aims to restructure $22 Bn of debt.
• Fitch Ratings has withdrawn Hamriyah Free Zone Authority’s (HFZA) Long-term foreign currency Issuer Default Rating (IDR) of ‘BBB-’ and Short-term IDR of ‘F3.
• UAE-based Gulf Marine Maintenance and Offshore Service Company (GMMOS), provider of marine services to offshore oil & gas industry, has acquired five offshore support vessels (OSV) financed through a $100 Mn term loan facility.
• Scotiabank, one of North America’s leading financial institutions, has received a license from the Dubai Financial Services Authority (DFSA) to operate within the financial district.

Real Estate and Private Equity

• Real estate transactions in Kuwait rose 32% in Nov 2009 due to increase in purchasing opportunities.
• Deyaar denied merger talks and announced to explore growth opportunities in the United Arab Emirates and other markets.

December 24th, 2009 | Category: GCC News | Leave a comment