Finance
Japan, UAE stock markets sign cooperation pact
Tokyo Stock Exchange Group Inc. said it has signed a memorandum of understanding on mutual cooperation with the Abu Dhabi Securities Market, the first such agreement with a Middle Eastern market with the aim of fostering cross-border investment. Under the terms of the MOU, the two exchanges will study the possibility of developing financial products to be listed on each other's markets.
Arab stocks recover after US rate cut
Arab stock indexes recovered after some of their sharpest falls ever as the U.S. interest rate cut made it cheaper for companies to borrow in several countries that peg their currencies to the dollar. Dubai led the pack, up 10.5 percent, followed by Abu Dhabi and Egypt. All Gulf states, bar Qatar and Oman, cut interest rates after the U.S. Federal Reserve slashed its benchmark rate by 0.75 of a percentage point on January 22.
Sharia-law lender to target UK
Dubai’s Noor Islamic Bank - which has just recently opened - plans to create the world's largest Sharia-compliant lender within five years through acquisitions that will see it target the UK. Noor, which is 25 percent owned by the government of Dubai and 25 percent by the emirate's ruler, plans to spend between US$500m (£250m) and US$1 billion on individual acquisitions in Europe, Asia and North Africa.
Gulf IPO’s to raise US$10 billion through 2010
Gulf Arab companies are expected to raise about US$10 billion in 83 initial public offerings over the next three years, Abu Dhabi-based investment bank Gulf Capital said. The Gulf IPO market is recovering from a stock market crash in 2006 when four of the seven bourses in the world's biggest oil-exporting region lost more than 35 percent of their value.
News Analysis: Islamic bond market set to boom
The global market in Islamic investment bonds, ‘sukuks’, is set to boom. Management consultant McKinsey & Company estimates that the worldwide Islamic finance market was worth US$500 billion at the end of 2006. The sukuk market accounted for around US$70 billion, having tripled in value over the last four years.
Interview: The Middle East aims for a regional capital market
Azmat Taufique is managing director and co-head of Gulf growth capital at Investcorp. In an exclusive interview with Noozz managing editor Tony Glover, he explains why he believes the creation of a regional capital market across the Middle East is both necessary and inevitable.
Kuwait eyes US investments after subprime
Kuwait is eyeing investments in the United States in the wake of the subprime credit crisis, particularly in financial services, said the Gulf state's investment authority. The subprime crisis in the United States hit a range of banks, mortgage lenders, bond insurers and home builders. With oil prices rising nearly five-fold since 2002, Gulf Arab state investment funds are looking to spend some of the windfall on global assets.
Brokerage firms arrive en masse into the Kingdom's US$2.4 billion market in 2008
On January 1st 2008, 79 securities' investment companies – including 52 specialised brokerage firms – launched their operations in the Saudi stock market – after separating their activities from banks. This follows a government decision to release brokerage companies from control of banks, which has been the norm since the Saudi stock market was established 22 years ago. Brokerage houses will now be competing with banks for the same customers.
OMX says board recommends Borse Dubai offer
OMX said its board had unanimously recommended a takeover bid by Borse Dubai, which had teamed up with U.S. firm Nasdaq to purchase the Nordic and Baltic exchange owner.
Global M&A's to hit US$5 trillion in 2008, Dubai leads
The value of merger and acquisition deals in all economic sectors in world markets is set to total US$5 trillion in 2008, anticipates a report released by Bonyan International Investment Group. The report explained that in light of 2007's results, global investors will continue to pump more funds into feasibility studies on possible M&A deals - reversing the dominant trend in recent years – on the background of the sliding US dollar and the growing benefits of M&A impact on economies of scale. It also focused on Dubai as a "lead player on the global scene in relation to M&A's, after turning heads from all around the world to the major deals sealed by the emirate in the realty, communications, transport, securities and banking sectors."
Two Saudi IPO’s to raise more than US$4.6 billion
Two major initial public offerings (IPO’s) valued at US$4.67 billion will be launched soon in Saudi Arabia, the Saudi Capital Market Authority announced. Saudi Mobile Telephone Co, operated by Kuwaiti telecom giant Zain, will offer 700m shares valued at SR7 billion (US$1.87 billion) and representing 50 percent of its total shares.
Future Bank to open branch in southern Iran
Bahrain-based Future Bank's first branch will be inaugurated on Kish Island, southern Iran, in the near future, said the managing director of the Kish Free Zone Organization (KFZO). Majid Shayesteh added that Future Bank, a joint Iranian-Bahraini initiative, was formed by two Iranian banks, Melli and Saderat, and the Bahrain-based Ahli United Bank.
News Analysis: Iraqi bonds yield over 15 pct
Underpinned by oil production, trading in Iraqi bonds is increasing. But while bond yields of over 15 pct may attract some investors, such high returns sound alarm bells in the ears of others. Iraqi bonds first issued two years ago have a face value of US$2.7 billion and, according to JPMorgan Chase, have returned 15.2 pct over the past six months. The bonds are long-term and due in 2028. The Dutch branch of ING Investment Management is among the holders of this emerging-market debt together with American firm Franklin Templeton Investment. The present number of bond holders is unknown and ranges from banks to large international funds.
