GCC News Roundup – June 29, 2009
News & Views General
* The United Arab Emirates plans to guarantee bank bond sales to intensify efforts to shore up the financial system after pledging AED120 Bn to boost liquidity in the economy.
* Switzerland-based BSI bank’s Bahrain branch is considering joint ventures with Gulf partners as well as acquisitions, as part of its strategy to expand in the region over the next three years.
* EMKE Group, one of the largest retail chains in the Gulf region, has finalized its plans to expand its customer reach across Abu Dhabi by investing AED1.5 Bn in the next 18-months.
* Emirates Islamic Bank approved a rights issue of 1.1 Bn shares at a total value of AED1.1 Bn.
* Abu Dhabi Basic Industries Corporation and Bahrain based Midal Cables entered into a joint venture agreement to establish a $100 Mn worth aluminum rod and conductor plant in Abu Dhabi.
* The Capital Market Authority approved rights issues worth $360 Mn for Sahara Petrochemicals Co and SABB Takaful in the midst of tight credit markets.
* Aramex signed cargo services agreement with Air Arabia for securing access of Air Arabia’s cargo facility in express shipments.
* Saudi Electricity signed a contract with power supplier Aggreko to offer 100 Mw of short-term power. The deal is expected to last for a minimum duration of 3 months.
* Russell Investments in partnership with Saudi based investment services group, Jadwa announced the launch of 10 Islamic compliant indexes representing Sharia compliant companies from across the world.
* Dubai Banking Group (DBG) and Shuaa Capital resolved the bond dispute
issue between them with DBG acquiring a 48.4% stake in Shuaa Capital for a price of AED2.91 per share.
* National Air Services availed a 7-year $650 Mn loan from the Arab Banking Corporation backed by a guarantee from the Export-Import Bank of the United States for financing its purchase of aircrafts from US-based Hawker Beechcraft Corp.
* Abu Dhabi based Tourism Development & Investment Co. issued a 5-year $1 Bn bond maturing in July 2014 and received subscription to the tune of $6 Bn.
* India based jewellery retailer, Malabar Gold, announced an investment of AED300 Mn for its expansion plans in the UAE.
Real Estate and Private Equity
* Emaar-IGO, a venture between Emaar Syria and IGO, has completed 50% construction of the Damascus Stock Exchange building.
* Manara Development finalised the masterplan for its $1 Bn worth Bahrain water front project. The project covering 2 Mn sq mts. of waterfront land comprises of coastal villas, waterview apartments, retail, entertainment, tourism and office amenity.
* Kuwait based Abyaar Real Estate Development Company secured a 5 year KD18 Mn loan backed by real estate collaterals from the Bank of Kuwait and the Middle East for funding its projects.
* Emaar Properties is considering a merger with Dubai Holding-owned Dubai Properties, Sama Dubai and Tatweer.
* Al Habtoor Leighton Group announced that it would be postponing its IPO by a year due to the ongoing financial crisis.
* BBK subsidiary, Capinnova investment, announced an investment of $50 Mn in a commercial mall project in Bahrain scheduled for completion in 2010.
