Economy

Gulf countries launch common market

The six-nation Gulf Cooperation Council announced the formation of a common market earlier this month similar to the one launched by Europe over 50 years ago.

Starting at the beginning of 2008, citizens from Bahrain, Kuwait, Oman, Saudi Arabia, Qatar and the United Arab Emirates will have equal rights to carry out business in any GCC country and equal residency rights.

Finance

Qatar to be LSE's biggest investor

A deal that will make Qatar the largest shareholder in the London Stock Exchange moved closer to completion as talks advanced with Dubai, the bourse's biggest investor.

Under a deal being hammered out between the sovereign wealth funds of the rival emirates, Dubai has agreed to trade about 5 per cent of its holding in the LSE in exchange for Qatar's 9.98 per cent stake in OMX, the Nordic exchange group Dubai is taking over.

Energy

Russia's Gazprom launches US$6 billion investment funds in Arab region

Russian giant Gazprom unveiled plans to launch two investment funds in a number of Arab countries totalling US$6 billion in capital, and drawing contributions from Saudi and GCC-based investors.
 
The funds will be managed by Gazprombank, which is a member of Gazprom Group and the third biggest bank in Russia.

Industry

Dow, Kuwait Petroleum to form plastics venture

Dow Chemical Co and a unit of Kuwait Petroleum Corp said they will form a plastics joint venture to link the Middle East company's vast energy supplies with Dow's industry-leading market reach. KPC's Petrochemical Industries Co will pay Dow US$9.5 billion to contribute five of the U.S. company's businesses worth about US$19 billion to the 50-50 joint venture.

Telecoms & ITC

News Analysis: Zain takes control of Iraq mobile market

Major changes are transforming Iraq's mobile phone industry. With Orascom giving up its licence and investments in the space of a few months, Kuwait's Zain now controls 75% of the market.  At the beginning of December, Kuwait's biggest telephony operator Zain paid US$1.2 billion for Iraqna, the Iraqi operation of its main Middle Eastern rival Orascom.

Construction & Real Estate

Outsourced facilities management sector in GCC to cross AED 36.7 billion by 2012

The multitude of modern skyscrapers, manmade islands and mega-projects that dominate the GCC skyline have resulted in an unprecedented growth in the region's construction sector. This flurry of construction activities in turn has spawned the need for top-end benchmarks to ensure the sustainability of these buildings thereby creating huge demand for the Facilities Management (FM) industry. "The Total Facilities Management industry in the Middle East is set to grow and become a very lucrative market," said Chris Fountain, event director of UK's CMPi, organisers of Working Buildings Middle East.

Transport

Dubai-based NRI gets nod for regional airline

A Dubai-based NRI has become the first to get a licence for operating a low-cost regional airline in India.

The carrier, Star Aviation, will begin operations with a fleet of four ATRs by mid-2008 in south India. While this has become the first airline to be allowed under the recen regional airline policy, applications of at least four other aspirants are also under consideration at the aviation ministry.

Utilities

Ministry of electricity delegation to sign US$940m electrical station deal with China

A high-level delegation from Iraq's ministry of electricity is heading to Beijing to sign a contract with China to build the coal-powered Zubaydiyya Electrical Station in Wasit governorate. The contract is worth US$940m. 

The station will bring online an additional 1,300 megawatts to Iraq's national electrical network over the next three years.

Defence & Security

Pentagon plans up to US$10.4 billion in Gulf arms sales

The Bush administration announced plans to sell advanced anti-missile systems to the United Arab Emirates and Kuwait with a potential combined value of nearly US$10.4 billion.

The deals would be the biggest yet in a U.S. drive to bolster Gulf Arab states, including Saudi Arabia, as a counterweight to Iran, Syria, al Qaeda and Hezbollah. The Pentagon told Congress the United Arab Emirates had asked about buying 288 Patriot Advanced Capability PAC-3 missiles and related gear worth up to US$9 billion.