GCC News Roundup – July 1, 2009
News & Views General
- The United Arab Emirates economy is expected to contract 2% in 2009, but a “mild recovery” is projected for 2010 – Morgan Stanley.
- Iraq faces regulatory, administrative and political barriers that will prevent it from major oil production expansion for at least five years and the rules governing oil deals reached in Iraq are not stable and that legislative red tape may hinder development – International Energy Agency. The statement was made in the backdrop of the country’s recent launch of its first major energy auction since the 2003-led invasion, aimed at ramping up the nation’s oil production.
- Qatari bank lending to the private sector rose 2.5 per cent in March from February – Central bank. Furthermore, the total domestic credit of Qatari commercial banks rose 1.3 per cent in March from February to QR207.89 billion ($57.12 billion) as money supply growth in the Gulf state slowed to 2 per cent according to the Central bank.
- Abu Dhabi based Al Hilal Bank entered into a partnership with Abu Dhabi Investment House to launch a $100 Mn Abu Dhabi real estate fund, Al Wataniya Development Fund.
- Emirates NBD issued 5-year debt securities worth AED4 Bn to Investment Corporation of Dubai, thereby boosting its Tier 1 capital adequacy ratio to over 11%.
- The Qatar Shipping Company entered into a contract with Bharat Petroleum Corporation for chartering the tanker, UMLMA, for 2 years with an option for further extension by one year.
- Bank Muscat completed the sale of its pending 0.5% stake in India’s HDFC Bank Ltd for a pre-tax profit of approximately RO21 Mn.
- Qatar National Bank – Syria announced an Initial Public Offering for 34% of its total equity.
- Emirates Industrial Bank announced that its private investors acquiesced to sell their 49% stake to the UAE government. The bank has been merged with Real Estate Bank to create the Emirates Development Bank.
- The UAE’s Federal National Council passed a law, which allows the government to guarantee debt instruments issued by local banks, to the president for approval.
- Tabuk Cement received an export license for 200,000 tons over the next 3 months.
- British Petroleum and China’s CNPC International Ltd became the first foreign firms to be awarded contracts in Iraq’s oil sector after a successful bid for the Rumaila oil field.
- Galfar Engineering & Contracting SAOG secured a RO15 Mn contract for the construction of a cardiac centre at Sultan Qaboos Hospital in Salalah.
Real Estate and Private Equity
- Bahrain’s municipal councilors approved the BD70 Mn, Souk Al Arabia Resort project, which is slated for completion in 2 years.
