Tres Vista Weekly Me 10 09 09

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Weekly MENA Newsletter by TresVista Financial Services (www.tresvista.com)

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Tres Vista Weekly Me 10 09 09

  1. 1. Issue No. 2.6 MENA WEEKLY NEWS Week of September 4, 2009 – September 10, 2009 MENA MARKETS … For additional MENA MARKETS information or requests Saudi Arabia Kuwait UAE Egypt Oman Jordan Commodity (USD) Currency (USD/) or to be added to the 5,713.0 7,723.5 2,040.2 624.0 6,546.5 2,641.8 Gold Spot 996.60 GBP 0.601 1.7% (0.8%) 6.2% 1.4% 2.0% 1.4% Silver Spot 16.67 EUR 0.686 distribution list, please LME 3 mth. Cu 6,294.00 SAR 3.750 visit our website … Morocco Bahrain Qatar Tunisia Lebanon Abu Dhabi LME 3 mth. Al 1,854.00 KWD 0.287 10,872.1 1,520.3 7,098.5 3,856.9 1,382.7 3,059.4 ICE Brent Crude 69.86 www.tresvista.com 0.9% 0.3% 0.7% 1.6% (0.5%) 5.9% MACRO ECONOMIC NEWS 1. Macro Economic Saudi Arabia News ▲ Expatriate workers and professional in Saudi Arabia have increased amount of remittance to their countries by 33.0% in 2008. 2. Government ▲ Saudi Arabia’s state-run pension fund spent SAR 1.3 billion to raise its stake in seven companies as it seeks to expand Regulations investments and benefit from a market rally. 3. Sector News 4. Company News UAE 5. Liquidity ▲ The UAE has improved business competitiveness significantly, moving up from 47th position to 33rd according to the latest Doing Business 2010 report by the World Bank. Market Buzz… ▼ From 2.5% at the start of August, Eibor plunged to 1.8% at the end of the month following an announcement by the Central Bank to establish a mechanism for inter-bank rates. Oman ▲ Oman is evaluating bids from five firms, including India's Larsen & Toubro, South Korea's Hanjin Heavy Industries, and Austria-based Strabag to build Ras Al Hadd airport. ▲ Annual inflation in Oman slowed for the eighth month in a row to 1.8% in July from 2.9% in June, the Ministry of National Economy said, led by a decline in food prices. Jordan ▲ Foreign currencies' reserves reached JOD 6.9 billion at the end of July compared to JOD 5.1 billion during the same period last year, according to the Central Bank of Jordan's figures. ▲ Jordan’s Minister of Finance Bassem Salem said that the kingdom will receive USD 300.0 million in soft loans from the World Bank in the fourth quarter of this year in a bid to address the increasing deficit in the state budget. ▼ Jordan's unemployment rate during the first eight months of the current year topped 13.0%. Bahrain ▲ Bahrain's government is one of the most financially efficient in the world and its economy is one of the most stable, according to the World Economic Forum. ▼ The International Monetary Fund said that Bahrain's economy is expected to grow 2.6% in 2009, compared to last year's forecast of 6.1% growth, as banking sector losses and sluggish oil output hit growth. Qatar ▲ Qatar’s economy has been ranked the most competitive in the Middle East and North Africa region. Abu Dhabi ▲ Government spending has risen by 21.0% to AED 42.2 billion this year. GOVERNMENT REGULATIONS UAE ▲ The UAE Ministry of Finance announced that it will establish a Public Debt Management Unit as the next step towards the implementation of the Public Debt Law. SECTOR NEWS Saudi Arabia ▲ Saudi Arabia's real estate sector would sustain a growth rate of 5.0-7.0% until 2012, backed by a rising housing demand, expanding business development projects and a growing hospitality sector. …Market capitalization of the eight GCC stock ▲ Saudi Arabia, imported more than USD 10.5 billion worth of cars and spare parts in 2008; while auto sales are expected to markets has gone up by further increase by 5.0% in 2009 to surpass the 545,000 units sold last year. USD 38.9 billion or ▲ The Saudi government has formally awarded the USD 720.0 million fourth construction package on the North-South minerals more than 6.0%, in the railway to a consortium led by a local company. past two months, Emirates Business Kuwait research reveals… ▼ Kuwaiti property sales fell 37.9% in the year to July. Sales fell to KWD 99.8 million from KWD 160.7 million in July 2008. TresVista Financial Services, Pvt. Ltd. © Page 1
  2. 2. Issue No. 2.6 MENA WEEKLY NEWS Week of September 4, 2009 – September 10, 2009 UAE …The Gulf Cooperation ▲ The UAE has committed around USD 26.0 billion in investments to new air and seaport infrastructure projects to reinforce Council's (GCC) power its role as a global trade and logistics centre. generation capacity is expected to grow by Oman 44.0% to surpass ▲ Oman's airline industry saw passenger numbers grow 8.5% to 2.5 million in the January-July period. 1,609.0 megawatt hours by 2013… - The total number of real estate deals signed during the first seven months of 2009 stood at 29,270 worth OMR 268.2 million. Jordan ▲ Kuwait topped the list of real estate investments in Jordan in the last eight months through investing in 967 projects. ▼ The total value of real estate deals in Jordan dropped 38.0% to USD 3.9 billion in the first eight months of 2009 compared to the corresponding period in 2008. Abu Dhabi ▼ Average prices of apartments in Abu Dhabi fell by up to 15.0% since May. COMPANY NEWS Saudi Arabia ▲ Saudi Industrial Services Company announced that its 60.0% owned subsidiary, Kindasa Water Services has signed a SAR 35.9 million contract for the construction of a pipeline in Khamra area (Jeddah). ▲ Zamil Industrial Investment Company’s subsidiary, Zamil Air Conditioners, has won a SAR 51.0 million contract from the Saudi Arabian Ministry of Education to manufacture and supply more than 25,500 room air conditioning units for the government schools. ▲ Saudi Arabia's market regulator said it has approved Almarai Co.'s request for a capital hike to SAR 1.2 billion from SAR 1.1 billion as well as its offer to acquire Saudi Hail Agricultural Development Co., or Hadco. ▲ STC has signed an agreement with Taiwan-based mobile phone manufacturer HTC Corporation to sell Android-powered phones in the Kingdom. ▲ Saudi Arabia's Al Jazeera Cement Co. has signed contracts with international companies for the importation, installation, and operation of clinker mills and three gravel crushers at a total investment of SAR 350.0 million. ▲ India's Crompton Greaves Ltd. announced that its Pauwels Trafo Belgium NV unit and Saudi Arabia's EIC Group have agreed to set up a Joint Venture for manufacturing medium-capacity power transformers. ▲ The Saudi Railway Company has awarded the Riyadh-Qassim portion of the north-south railway project to a Saudi-Chinese consortium worth SAR 2.7 billion. ▲ Arabtec Holding's board has approved plans to establish a subsidiary that will provide ready-mix concrete for the Saudi market. ▲ Saudi Electricity Company has awarded two contracts for transmission projects worth SAR 220.0 million in early September. ▲ A group of private Saudi Arabian investors will set up a SAR 2.0 billion firm, the new International Agriculture and Food Investment Co. which will invest in agriculture projects. ▲ SISCO announced that its 60.0% owned subsidiary, Kindasa Water Services, has signed a SAR 35.9 million contract for the construction of a pipeline in Khamra area. ▲ Saudi Electricity Co said its board agreed a day earlier to award SAR 7.6 billion worth of new power generation and transmission projects. ▼ Saudi Arabia’s Central Bank governor announced that the bank would not buy debts from the Algosaibi and Saad groups that defaulted after borrowing more than USD 15.0 billion. ▼ Capital Intelligence has lowered the financial strength rating of Saudi Hollandi from ‘A’ to ‘A-’ with a stable outlook. - Emaar Economic City, the firm tasked with developing the USD 27.0 billion King Abdullah Economic City on Saudi Arabia's Red Sea coast, said it canceled a SAR 1.4 billion contract with the contractor Saudi Binladin Group. - Ergil Group and Al-Joaib Holding have agreed to sign a Joint Venture agreement between Ergil Group and Engineering Services and Development Center, a subsidiary of Al-Joaib Holding in Saudi Arabia. Kuwait …As part of a regional ▲ The Central Bank of Kuwait (CBK) reported a hike in credit facilities by local banks to different sectors to KWD 24.4 billion initiative to step up war by end of July 2009, a hike of 0.5%. on drugs, the six-nation ▲ The Central Bank of Kuwait approved the 25.0% rights issue of Al Ahli Bank of Kuwait. Gulf Cooperation ▲ Logistics provider Agility said it won a multi-million-dollar contract to provide logistics services to RasGas Company, one Council, announced of Qatar’s liquefied natural gas producers. plans to set up a major center to combat drug ▲ The Kuwait Central Bank approved Aayan Leasing and Investment Company’s request to buy back a maximum of 10.0% trafficking… of its outstanding shares, for a six-month period ending March 18, 2010. ▲ A consortium of Indian telecom companies and a Malaysian investor will buy a 46.0% stake in Kuwaiti telecom Zain. TresVista Financial Services, Pvt. Ltd. © Page 2
  3. 3. Issue No. 2.6 MENA WEEKLY NEWS Week of September 4, 2009 – September 10, 2009 ▼ Moody's Investors Service has downgraded the bank financial strength rating (BFSR) of Commercial Bank of Kuwait to C‫ـ‬ …At a time when the from C and also downgraded Al‫ـ‬Ahli Bank of Kuwait to D+ from C-. real estate market in the GCC is not going UAE through a smooth phase, ▲ Air Arabia said it has signed a 40:60 joint venture with Egyptian travel and tour operator, Travco Group. A.T. Kearney, global ▲ Dubai Gascities, a joint venture between Dana Gas and Crescent Petroleum to roll out energy clusters across the Middle strategic consulting East, said it has reached an agreement with the Yemeni Government to possibly develop a 'gas city' in Yemen. firm, sees definite opportunities for GCC Egypt based and managed real estate investment trusts ▲ Remco for Touristic Villages Construction announced that its subsidiary, Remco for Real Estate Construction, has received an 8 (REITs) and similar year EGP 500.0 million loan from Banque Misr with a two year grace period. types of investment ▲ Misr Travel Company held an EGM and approved the voluntary delisting of the company's shares from the Egyptian Exchange. funds to attract billions ▲ Telecom Egypt signed a wholesale telecommunications services deal with Vodafone Egypt that could bring the company EGP in foreign direct 4.0 billion over the next three years. investment into the region's real estate ▲ Citadel Capital said it launched a microfinance company in Egypt with Egyptian Gulf Bank that will help provide low and markets… middle income groups with access to financing and financial services. Oman ▲ Turkish construction company Makyol has been awarded OMR 125.3 million contract to build a 126.0 km road in Oman. ▼ Oman’s commodity exports fell 26.3% during the first two month of 2009 compared to the same period in 2008. - The Oman Investment Fund said that it will invest about USD 125.0 million for a 50.0% stake in an Indian realty firm based in Mangalore. Jordan ▲ Arab Potash Company announced that it has recently signed a memorandum of understanding with the Indonesian Fertilizer producer Kaltim. The MoU calls for the supply of up to 150,000 metric tonnes of potash as the Kaltim plants come on stream in 2010 and 2011. ▲ Irbid’s cumulative exports dropped during the January-August period of this year by 19.3% to USD 256.0 million compared to USD 317.3 million during the same period last year. Bahrain ▲ Bahrain-based Islamic investment house Tharawat said it plans to raise USD 100.0 million by year-end for a Sukuk fund it recently launched to snatch up bargains on the secondary market. ▲ Bahrain Telecommunications Company announced that it is in the negotiation phase to acquire stakes in Middle East and North Africa region worth USD 1.5 billion. ▲ Gulf Finance House announced that it has received the approval of the Central Bank of Bahrain to increase its capital by USD 300.0 million to USD 500.0 million through a rights issue. Qatar ▲ Qatar Gas said that Train 5 of the Qatar gas 2 project has commenced producing liquefied natural gas (LNG), taking the overall LNG production of the firm to 25.0 million tons per annum (mtpa) by the end of this year. ▲ Qatari Diar Real Estate Investment Company said it has appointed Qatar Islamic Bank to lead arrange a five year QAR 3.5 billion Sharia'-compliant syndicated facility. - Ezdan Real Estate Company announced that it is undergoing a feasibility study to merge with the International Group of Housing Company. Abu Dhabi ▲ Aldar Properties' subsidiary Al Raha Gardens Property said it has formed a joint venture facilities management company with National Catering Company. LIQUIDITY Oman ▲ Oman’s M2 money supply growth accelerated to 12.6% in July from 8.2% the previous month. …Global Sukuk issuance has fallen from - Oman Central Bank has issued OMR 50.0 million three-year bonds on September 06, after receiving bids up to OMR 228.9 USD 11.1 billion during million. the first seven months of 2008 to USD 9.3 billion Abu Dhabi in the same period of - Abu Dhabi-based Tourism Development and Investment Company may raise USD 1.0 billion in an Islamic bond offer, 2009… according to two bankers with knowledge of the deal. TresVista Financial Services, Pvt. Ltd. © Page 3
  4. 4. Issue No. 2.6 MENA WEEKLY NEWS Week of September 4, 2009 – September 10, 2009 About Us: Headquartered in Mumbai, India, TresVista Financial Services Pvt. Ltd provides research, analytics, advisory, investor relations, and other customized services for asset managers, private equity funds, investment banks, operating companies, and other institutions. This document is provided for assistance only and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. This newsletter is provided for information purposes only. The information is believed to be reliable and is based on publicly available information, but TresVista does not warrant its completeness or accuracy. Opinions, estimates, and assumptions constitute our judgment as of the date hereof and are subject to change without notice. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Additional information is available upon request. 2009 TresVista Financial Services © TresVista Financial Services Premier House, Plot No.38, 2nd Floor, New Wing, Central Road, MIDC, Andheri (East), Mumbai 400 093. TresVista Financial Services, Pvt. Ltd. © Page 4

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