Finance
QIA wealth fund is eyeing second largest UK bank
The Qatari government is contemplating making an investment in Royal Bank of Scotland (RBS), Britain’s second-largest bank, which would be the latest foray by a foreign government entity into struggling western banking stocks.
The Qatar Investment Authority (QIA) is considering RBS as the home for part of a US$15bn (GBP 7.6bn) pool of cash that it is planning to invest in European and US banks. The QIA has not yet bought RBS shares and it is understood that no talks have been held between them.
INTERVIEW - Morgan Stanley sees success for Egypt’s first ETF
Morgan Stanley expects Egypt’s first ever exchange traded fund (ETF) for big cap equities to attract foreign institutional investors looking for safer havens in the global credit crisis as well as local investors.
“ETFs make it easier for foreigners, especially retailers, to invest in markets of which they don’t have enough detailed knowledge,” Deborah Fuhr, a Morgan Stanley managing director stated.
News Analysis: Islamic bond market begins to boom
Islamic bonds or ‘sukuks’ are rapidly evolving from being niche investment products aimed at strict Muslim investors into global financial products underpinning real estate investment and even government budgets.
News that Britain could soon become the first Western nation to issue government bonds compliant with Sharia law, the rules that govern Islamic finance, coincides with a booming Middle Eastern market in Islamic financial products. This supports recent predictions from Standard & Poor’s that the sukuk market will be worth US$170 billion by 2010 with the overall Islamic financing market worth US$4 trillion.
Standard Chartered invites UAE funds to buy stake
Standard Chartered Bank will welcome UAE sovereign wealth funds (SWFs) interested in having a share, the bank’s top official said in Abu Dhabi. “Were it not for SWFs, American and other banks would have had more serious problems, but these funds moved with speed and confidentiality to rescue a number of banks with capital, playing a very important role in the financial services industry,” E. Mervyn Davies, Standard Chartered chairman, said.
The invitation does not reflect any losses incurred by SCB in relation to the US sub prime mortgage crisis, but rather confidence in the UAE’s SWFs reliability and long-term investment objectives.
Arab sovereign wealth funds: Angels for good?
Given the noise surrounding the alleged “evils” of sovereign wealth funds (SWF), it may be almost scandalous to suggest that Arab SWF investments can strive to be a “force for good” in the world.
But there appears to be a unique opportunity, especially for Gulf SWFs, to spread a more positive image of the region. While it is naive to say that Gulf investors should invest in western companies purely for altruistic reasons, or not be opportunistic when a good prospect arises, they must strive to generate goodwill, not just good returns.
GCC markets to see 120 IPOs in 2008, half of them in Saudi Arabia
A seasoned international expert anticipated GCC markets to attract nearly 120 initial share public offerings in 2008, almost half of them in Saudi Arabia and the remainder shared by member-states’ markets.
Fouad Alaeddin, Managing Partner of Ernst & Young Middle East, expects family companies to spearhead the forthcoming IPO boom.
Credit Agricole and Banque Saudi Fransi form new JV
Credit Agricole Asset Management has announced the formation of Caam Saudi Fransi, an asset management joint venture with Banque Saudi Fransi. Held 60% by Banque Saudi Fransi and 40% by Credit Agricole Asset Management, the joint venture has been approved by local regulators.
Inflation to drive GCC gov’ts to issue sovereign sukuk
A Moody’s report anticipated a number of GCC member states’ governments to consider issuing sovereign sukuk during 2008 to face-up to soaring inflation levels exacerbated by currency pegs to the US dollar.
Global growth in sukuk issuances is expected to sustain pace at between 30 and 35 percent per annum.
AXA chair praises sovereign funds’ long-term view
The outgoing chairman of French insurer AXA was quoted praising the long-term vision of some sovereign wealth funds. AXA Chairman Claude Bebear in an interview with Le Figaro newspaper released ahead of publication said “nothing had changed” since he wrote a 2003 book about short-term investors entitled, “They Will Kill Capitalism.” He said however that there was now “lots of capital to go looking for from investors who have a real sense for the long term.” “I am thinking of certain sovereign wealth funds, such as those of Singapore and Abu Dhabi,” he said.
Saudi purchase of Turkish bank approved
Turkey’s banking watchdog has approved the sale of privately owned Turkish Islamic lender Turkiye Finans to Saudi Arabia’s National Commercial Bank, a BDDK official stated.
Last July, National Commercial Bank, the Gulf’s largest lender by assets, agreed to pay $1.08 billion for 60 percent of Turkiye Finans.
FTSE Group to launch series of indices in Gulf
The FTSE Group (FTSE), a global index company, plans to launch a series of regional indices including both general and Sharia indices, Imogen Dillon Hatcher, managing director, Europe, Middle East and Africa, said in Dubai.
FTSE and Yasaar Research (Yasaar) earlier this month launched the FTSE Sharia Global Equity Index Series, with the launch of 96 new Sharia-compliant indices, including the FTSE Sharia Developed Index Series, the FTSE Sharia Emerging Index Series; the FTSE Sharia All-World Index Series; and FTSE Sharia Multinationals 150 Index.