GCC News Roundup – June 30, 2009
§ The Saudi economy is forecast to shrink 1.2 per cent this year, despite a stronger market for oil and expanded government investment – Riyadh-based Samba Bank.
§ Egypt expects to spend 323.9 billion Egyptian pounds ($57.6 billion) and receive 225 billion pounds in revenue in the fiscal year starting July 1 – Finance Ministry.
§ BankMuscat announced that it has received approval from the Capital Market Authority for the setting up of a subsidiary in Saudi, Muscat Securities House Company. The firm would provide principal, underwriting services, fund management, advisory as well as act as a custodian.
§ MENA Infrastructure Fund, the infrastructure equity fund sponsored by HSBC, Waha Capital and Dubai International Capital has acquired 32.8% of United Power Company SAOG (UPC) for $26.5 Mn.
§ Ericsson and Etisalat entered into a MoU for the setting up of a joint committee to cooperate on common business objectives to gain from synergies in their operations.
§ Al Mazaya Holding Co. announced that it would not purchase a further 33% stake in First Dubai Real Estate Development Co.
§ Emirates NBD is close to securing a AED3.5 Bn ($953 Mn) government cash injection that will allow the UAE’s largest lender to meet new capital adequacy targets set by the Central Bank late last year.
§ Saudi Arabia-based Sabb Takaful has received Saudi Capital Market Authority’s approval for a SAR300 Mn rights issue.
§ Saudi Aramco and Dow Chemical announced the seeking of bids for the construction of a petrochemical complex in Saudi, scheduled to commence operations in 2015.
Real Estate and Private Equity
§ The Ras Al-Khaimah Investment Authority (Rakia), the body overseeing the emirate’s growth, has created a property regulator to safeguard investors and ensure construction funds are not misused. Rakia Real Estate Regulatory Authority (Rera) will oversee the implementation of the escrow account and also monitor the progress of construction by sending inspectors to project sites to make sure contracts are adhered to.
§ Private equity fund, Delta Partners Mena Telecom Fund, announced plans to invest in Dubai-based Vox Spectrum Limited to further consolidate Vox Spectrum’s existing operations as well as expand its presence in Middle East and India.
