Singapore, Dubai sign financial regulation deal

Singapore's central bank has signed an agreement with Dubai's financial regulator to boost cooperation in supervising banking, insurance and capital markets. The deal will help the two authorities swap information, said Singapore's central bank, which signed a similar agreement with Qatar's financial regulator a week earlier. Singapore and Dubai are vying to be major centres for financial services. Sovereign wealth funds and state-backed firms in the two cities have in the past competed with each other to buy assets.

US$663m IPO set

Ithmaar Bank chairman Khalid Janahi shook his fist at fear when he announced the launch of what could be Bahrain's biggest ever initial public offering (IPO) in the face of the growing global market turmoil. Naseej, the holistic real estate to construction firm which Ithmaar helped to found in June this year, is pushing ahead with a BD250 million (US$663 million) share offering next month, with the full support of Prime Minister Shaikh Khalifa bin Salman Al Khalifa and the Cabinet.

China's industrial bank opens first subsidiary bank in Middle East

The Industrial and Commercial Bank of China (ICBC), the world's largest bank by market capitalisation, opened its first Middle East subsidiary bank in Dubai, the commercial and financial hub of the United Arab Emirates (UAE). The opening of ICBC Middle East, the first wholly-owned Chinese subsidiary bank in the region, marks a major step by the ICBC towards expanding overseas financial services and promoting its internationalisation strategy.

Bahrain and Abu Dhabi bourses plan to list funds

The Bahrain and Abu Dhabi bourses plan to list the region's first exchange traded funds (ETFs) despite a slump in global markets. ETFs are investment vehicles that hold assets such as stocks or bonds and trade at almost the same price as the net value of its underlying assets over the course of the trading day. The Abu Dhabi Securities Exchange (ADX) plans to list at least two local and two foreign ETFs early next year while Manama's securities market is aiming to launch ETFs in the first half.

Future of Islamic finance seems bright

The disparities between regulatory ideals and financial realities are coming home to roost in the US. But in the Gulf there are still areas for financial optimism - albeit more measured in tone. Islamic finance is one such area. The disparities between regulatory ideals and financial realities are coming home to roost in the US. But in the Gulf there are still areas for financial optimism - albeit more measured in tone. Islamic finance is one such area. As a whole the industry continues to grow, but demand for its once rising star, the sukuk, is waning.

Banque Misr starts investing in stock market

Banque Misr and the National Bank of Egypt have allocated funds estimated at E£100 to E£200 million to purchase securities from the stock market at present. Mohammad Ozalb, deputy chairman of Banque Misr, said that purchases would be diversified in all sectors and industries and would not target specific group of shares. He also said that share prices have fallen to such levels that would encourage banks to intervene as long-term investors and to increase and hold stock portfolios until sound profits are achieved.

Irbil bourse could overshadow ISX

Soon to be opened Irbil Stock Exchange in Iraqi Kurdistan risks overshadowing its sibling in Baghdad, the Iraq Stock Exchange, that opened in 2004. The Vice-President of the Kurdistan Center for Administrative Development, Sherwan Anwar Mustafa, said that the Irbil bourse will be officially formed over the next few days as a partnership company and will include banks and other businesses among its members. The board of directors, which was elected in early October, will be ratified and the company’s balance will be deposited. A meeting of the Board of Directors will then be convened to draw up the regulations and restrictions for firms wishing to list on the bourse, in co-ordination with the Iraq Securities Commission (ISC), an independent public commission that oversees the activities of licensed securities markets.

JPMorgan buys stake in Dubai Mercantile Exchange

Dubai's fledgling oil exchange is getting another big-name investor with the addition of US banking giant JPMorgan Chase. The company, which recently acquired fallen investment house Bear Sterns and U.S. bank Washington Mutual, joins Goldman Sachs, Morgan Stanley, a subsidiary of Royal Dutch Shell and three energy trading firms as minority shareholders of the exchange.

Qatar buys 20 per cent of local banks to ease liquidity

Amid the global financial crisis Qatar Investment Authority announced earlier this month that it is buying between 10 and 20 per cent of the capital of Qatar's native banks listed on the stock market. The decision came to enhance confidence in the Qatari stock market. The announcement came at a meeting attended by the Prime Minister of Qatar, Sheikh Hamad bin Jassem al-Thani, representatives of the banks listed on the Doha Securities Market and the Deputy Governor of the Central Bank.

Chinese company lists on DIFX

China Security and Surveillance Technology, a provider of security solutions in China, said its shares commenced trading on the Dubai International Financial Exchange (DIFX). The ordinary shares will trade in US dollars under the ticker symbol ""CSR"". ""Another milestone in our corporate history has been achieved and we are delighted to have been accepted by the DIFX as the first of what we believe will be many Chinese companies to list on this market,"" the company's Chairman and Chief Executive Officer Guoshen Tu said in a statement.