GCC News Roundup – July 30, 2009
News & Views General
- Italy’s Finmeccanica and Libya’s sovereign wealth fund said they have agreed to cooperate on aerospace and other projects in the Middle East and Africa, tapping into a market worth as much as $20 billion. The deal is the latest tie-up between an Italian company and Libya, which has recently bought stakes in Italian companies like UniCredit and Eni and is now turning its focus to setting up joint ventures for projects in Libya and elsewhere.
- Kuwait plans to auction stakes in three transportation system projects valued at KD1.5 Bn in 2010.
- Bank Muscat has set aside $104 Mn worth of bad loans in the second quarter. This includes its exposure to Saudi Arabia’s ailing Saad and Algosaibi groups.
- Cement prices in Oman are expected to rise in the second half of 2009 as state projects worth $8 Bn have been awarded during the second quarter.
- Deutsche Bank AG and Commerzbank AG filed separate lawsuits worth $218.2 Mn against the subsidiaries of Saudi Arabia’s Algosaibi Group, over its alleged failures to meet the financial obligations.
- Kuwait plans to auction stakes in three transportation system projects worth up to KD1.5 billion ($5.23 billion) next year. The projects have been approved by the government to develop the country’s first railway and monorail systems. Each company formed, a 26 percent stake will be offered in an auction for local or international investors. The government will own a 24 percent stake, and the remaining 50 percent will be offered to Kuwaiti investors.
Real Estate and Private Equity
- Dubai based Essdar Group made a discounted bid for two bonds used to finance the troubled $15 Bn worth real estate project in Oman after the notes were downgraded.
