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

1. Issue No. 2.5
MENA WEEKLY NEWS
Week of August 28, 2009 – September 3, 2009
MENA MARKETS
… For additional MENA MARKETS
information or requests Saudi Arabia Kuwait UAE Egypt Oman Jordan Commodity (USD) Currency (USD/)
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MACRO ECONOMIC NEWS
1. Macro Economic Saudi Arabia
News ▼ The global data provider MSCI will pull Saudi stocks from its indexes after refusing to comply with a deadline set by the Saudi
2. Government bourse to resolve a month-long spat, which might concern some foreign investors.
Regulations - Saudi Arabia cut the official selling prices for all grades of crude oil exported to the U.S. in October, according to state-run oil
3. Sector News company Saudi Aramco.
4. Company News
5. Liquidity Kuwait
▼ Kuwait’s crude oil exports to Japan plunged 40.9% in July 2009 compared to July 2008, to a 13-month low of 5.1 million
barrels.
Market Buzz…
UAE
▼ The Institute of International Finance projected a real economic slowdown of 1.2% in UAE in 2009, followed by a 3.4%
growth in 2010. The slowdown in UAE in 2009 would be fully due to contraction in the hydrocarbon real GDP which is set to
decline by 7.0% during the year.
- The UAE's non-oil trade reached AED 310.0 billion in the first half of 2009, of which imports accounted for AED 213.0 billion.
Oman
▲ Omani GDP reached OMR 23.0 billion in 2008 as compared to OMR 16.0 billion, or a 43.8% growth rate, the Kuwait-based
Global Investment House said in a detailed analytical report on the Sultanate. On a CAGR basis, the Omani GDP scored a record
growth rate of 22.7% over the period 2003-08.
- Omani inflation slowed to a four year low of 1.8% in July 09, the economy ministry said. The inflation rate fell from 2.9% in
June 2009.
Jordan
▲ Jordan Tax Authorities said that actual revenues during the first eight months of 2009 reached USD 2.5 billion, up 8.7% from
the same period in 2008.
- The Jordanian government is involved in the final stage of negotiations with Estonian firm Eesti Energia for a USD 7.0 billion
project envisaging the production of 35,000 barrels of crude per day from oil shale.
Morocco
▼ Foreign investments and private loans decreased by 36.1% at the end of July 2009 to settle at MAD 14.2 million. The direct
foreign investments represented 84.7% of the overall amount.
Qatar
▲ Opec oil producers will agree next week to maintain its official output target unchanged to keep prices stable around USD
70.0 and to help the world economy to stay on a recovery path.
- Qatar’s total population rose 7.0% to 1.6 million in August, according to the Qatar Statistical Authority (QSA).
Lebanon
▲ Despite the global economic turmoil, Lebanon’s external trade activity managed to grow in the first seven months of 2009.
Aggregate imports and exports totaled USD 11,303.0 million in the first seven months of 2009, up by 2.6% from the same
period of last year. Imports amounted to USD 9,300.0 million, up by 3.8% from the same period of last year.
▼ Lebanon finance ministry projected an 11.6% increase in budget deficit for 2009 to LBP 4.9 trillion (USD 3.3 billion).
GOVERNMENT REGULATIONS
Jordan
- The Central Bank of Jordan (CBJ) issued regulations that stated any individual or corporate body that wishes to acquire an
influential interest in any Jordanian bank must obtain the CBJ approval. Accordingly, any individual or group who wishes to
acquire at least 10.0% of the capital of a bank or increase his/her stake by the same ratio or more, must submit an application to
…The Gulf States are the CBJ in this regard, and obtain its approval prior to the purchase.
expected to collectively
SECTOR NEWS
spend around USD 70.0 UAE
billion in energy
projects this year to ▼ The UAE Central Bank asked lenders operating in the country to achieve a Tier 1 capital adequacy ratio of 7.0% by
meet growing September 30 and 8.0% by June 30 next year. The banks also need to achieve an overall capital adequacy ratio, including Tier
demand… 1 and Tier 2, of 11.0% by September 30 and 12.0% by June 30 next year, according to a Central Bank circular.
TresVista Financial Services, Pvt. Ltd. ©
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2. Issue No. 2.5
MENA WEEKLY NEWS
Week of August 28, 2009 – September 3, 2009
Morocco
…Markaz, ▼ The tourism receipts dropped by 11.5% at the end of July 2009 compared to the same period of 2008.
recommended in its
latest released research Lebanon
note that the current ▲ Figures released by the Directorate of Real Estate indicate that property sales transactions reached 7,683 operations during
structure of real estate July, up by 24.1% relative to June 2009. The year-to-date variation in property sales transactions is still in the negative
financing should be territory in the first seven months of the year, reaching -3.3%, with property sales transactions totaling 41,513 during the said
amended, commenting month.
on the pitfalls and
suggesting alternatives. COMPANY NEWS
The report said that real Saudi Arabia
estate constitutes a ▲ China's Epure International has signed a letter of intent to build a USD 82.4 million wastewater treatment plant for Saudi
noteworthy percentage Arabia's Power & Water Utility Company for Jubail & Yanbu (Marafiq).
of the balance sheets of ▲ Egypt plans to sell its Development and Agricultural Credit Bank to Saudi's Rajhi Investment Group, said a senior
GCC corporate with government official.
6.5%, and also as an - State-run Saudi Aramco said that a planned joint venture with Dow Chemical would have an annual production capacity of 8.0
investment asset class million tonnes of petrochemical products.
with 4.0% of total - Saudi Aramco may award two contracts this month to help implement gas projects to meet soaring demand for gas in the
invested wealth, and is Kingdom. The projects, the Manifa gas development program and the Shaybah natural gas liquids program, are estimated to cost
too important to be left around USD 6.9 billion.
to fend its financing
needs on its own… Kuwait
▼ Kuwait Projects Company Holding (KIPCO), has been downgraded by Moody's Investors Service. The ratings agency has
changed its outlook to on the company to negative from stable, reflecting deterioration in the credit quality of some of its core
subsidiaries. However, it has affirmed the Baa1 long term and Prime-2 short term issuer ratings of KIPCO.
Egypt
- Delta Rasmala S ecurities announced that Yassin Group for Importing and Exporting has acquired a 26.0% stake (0.520
million shares) in the company at a price of EGP 66.60 per share.
- Talaat Moustafa Group Holding will sell 0.500 million of its treasury shares.
- Al Arafa for Investments and Consultancies will sell 10.000 million of its treasury shares.
Oman
- Bahrain's Mashael Group will build a 30,000 barrels per day (bpd) bitumen refinery in Oman that is planned to be completed in
2012. The agreement has been signed by Mashael and the government to build the refinery at a cost of USD 200.0 million in the
Sohar Industrial Port Company (SIPC) area.
Jordan
▲ Arab Bank slashed lending interest rate on housing loans by 0.5% to 8.25% effective September 1, 2009.
Bahrain
▲ Unicorn Capital Saudi Arabia has received approval from Saudi Arabia's Capital Market Authority (CMA) to provide the
Saudi market with an integrated and comprehensive range of Islamic investment products and services in the kingdom.
▲ Ahli United Bank has received the Central Bank of Bahrain's approval to enter a joint venture with Legal and General
Group (United Kingdom) to establish two equally-owned conventional and Islamic insurance companies that will provide
their services through the bank's branches.
- Albaraka Banking Group’s subsidiary Al-Baraka Bank-Syria will offer 35.0% (3.5 million shares) of its shares through an
initial public offering starting October 4, 2009, at a price of USD 10.85 per share (SYP 500.00 per share).
Qatar
- The Managing Director of Qatar Entertainment City (QEC) said that the company has awarded an USD 27.2 million tender to
HBK Contracting for the completion of QEC's phase II infrastructure within 18 months.
- Qatar Petroleum (QP) has signed an Exploration and Production Sharing Agreement for Qatar Offshore Block 'BC' (Pre-
Khuff) with CNOOC Middle East (Qatar) Ltd, a subsidiary of China Offshore Oil Corporation (CNOOC), for a 25-year period.
- Doha-based investment bank QInvest and Fortis Bank Nederland said they plan to launch the first USD 200 million Shariah-
compliant marine fund to invest in the shipping industry.
- The listing committee announced that the EFG-Hermes Holding’s 5.150 million treasury stocks were terminated effective
August 27, 2009.
LIQUIDITY
Kuwait
▼ The Central Bank of Kuwait said that money supply growth dropped to 18.9% in July from 21.6% a month earlier. M3, which
is the broadest measure of money circulating in the economy, grew to USD 85.9 billion on July 31 while Quasi money, which
includes savings and time deposits in the Kuwaiti currency in addition to foreign currency deposits, grew 24.1%.
- Kuwaiti Islamic lender Boubyan Bank said it plans to raise its capital to USD 609.0 million as it seeks to expand in Kuwait,
after it received the central bank’s approval for the move. Boubyan's board has recommended increasing its capital by 50.0% at
250.00 Kuwaiti fils per share including premium, the bank said on Tuesday in a statement.
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3. Issue No. 2.5
MENA WEEKLY NEWS
Week of August 28, 2009 – September 3, 2009
UAE
▲ The UAE Central Bank slashed the interest rate on liquidity support facilities to banks to 1.5% from 2.5%.
▲ National Bank of Abu Dhabi raised more than USD 4.0 billion in orders for the bank's Euro Medium Term Note program, at
190 bps over the five-year dollar mid-swap.
- Emirates NBD plans to raise USD 2.0 billion in capital by taking advantage of a new federal law that guarantees bonds issued
by local banks. The bank plans to issue a 3-5 year bond under a Euro medium-term note (EMTN) program as soon as the
government formalizes its bond guarantee scheme.
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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
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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
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information is available upon request. 2009 TresVista Financial Services ©
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