Finance

Shuaa ends bond row with Dubai Banking, shares soar

Dubai Banking Group (DBG) and Shuaa Capital settled a long-running bond dispute by DBG taking a 48.4 percent stake in the investment bank, Shuaa said, sending shares up 15 percent. The deal, which follows months of negotiations and a lawsuit threat by DBG, will give DBG 515 million shares in Shuaa, more than twice the amount agreed in an initial draft dating back to 2007 and making DBG the bank's biggest shareholder, Shuaa said.

Doha Insurance Co. Q.S.C. Ratings Raised To 'BBB+' On Improved Competitive Position; Outlook Remains Stable

Qatar-based insurer Doha Insurance Co. Q.S.C. has strong capitalization, good and improved competitive position, and good operating performance. The stable outlook reflects our expectation that Doha will continue to develop its competitive position and operating performance while gradually increasing and diversifying its risk exposure.

Qatar launches new insurance industry system

Developed and wholly owned by the Qatar Financial Center Authority (QFC) and based in Doha, Qatarlyst has been established to support Qatar's aim to become the region's leading insurance and reinsurance hub. Qatarlyst claims to be the only industry-scale system of its kind to cover the entire transaction process including quotation, placement of risks, negotiation and binding cover, notification and adjustment of claims and the recording of accounting information.

Bahrain's first REIT enters the market

The Central Bank of Bahrain said it has approved the registration of the first Real Estate Investment Trust (REIT) under Bahrain's Financial Trusts Law. The Inovest Real Estate Investment Trust (IREIT) has been authorised and approved by the Central Bank of Bahrain as an Expert Collective Investment Undertaking established as a unit trust and with Two Seas Trust as trustee. It intends to list the IREIT on the Bahrain Stock Exchange. Inovest will begin marketing the REIT immediately.

Despite recession, Saudi banks continue to amass foreign assets

Well positioned to weather the global recession, Saudi banks have continued to accumulate foreign assets in recent months. The banks' foreign assets reached 168.4 billion riyals in April, marking the biggest increase over the past five years. This figure represents a 15.3 per cent increase compared with the same period last year, when foreign assets stood at 146 billion riyals. This information was contained in the latest report released by the central bank, the Saudi Arabian Monetary Agency.

Oman tempts foreign companies with tax cuts

The new corporate income tax law is now more favorable to foreign corporations by fixing the corporate income tax rate to 12 per cent, for all businesses including branches and permanent establishments of foreign companies said Nauman Ahmed, partner in charge for Tax Advisory Services in Deloitte Middle East. The new law, which was gazetted in June will also introduce an annual 90 day threshold in aggregate for any given taxable year before a foreign company conducting business in Oman is deemed to create a taxable presence.

Qatar to float its $1bn stock exchange Doha market to receive latest technology and support from its new American investors

The Doha Securities Market, one of the Gulf's biggest stock market, valued at about $1bn (£600m), is looking to float within the next two to three years. DSM, which will change its name to Qatar Exchange, will seek a primary listing in Doha as well as dual-listings in New York and Paris. A spokesman for Qatar Investment Authority, the sovereign fund that owns the exchange through Qatar Holding, confirmed on Friday night that a flotation is being considered but would give no details. Qatar Holding's other big investments include those in Barclays, Credit Suisse and J Sainsbury while the QIA has a big stake in the London Stock Exchange.

UAE bonds to allow govt to tap local market

The United Arab Emirates' plan to issue sovereign bonds would allow the state to tap the local market and include securities with maturities of up to 15 years, the central bank chief said in remarks published on Wednesday.

Swiss bank BSI SA (Generali) to start operations from BFH in August k

Founded in 1873, BSI AG is among the top 10 Swiss private banks and the oldest bank in the Swiss canton of Ticino. The Generali Group, one of the world's largest insurance companies, became the sole shareholder of BSI SA in 1998. BSI SA will occupy part of the 14 th floor in the West Tower of BFH's Financial Centre.

BankMuscat to divest remaining stake in HDFC Bank

Oman-based BankMuscat aims to sell its remaining stake in India-based HDFC Bank within the next 30 days, the bank said in a statement to the Oman bourse. BankMuscat's board of directors confirms its intention to dispose of its remaining 0.5% holding in HDFC Bank. Subject to market conditions and other disposal criteria, the bank expects the sale process to conclude soon.

Abu Dhabi IPOs Set to Increase as 40 Firms Consider Listings

"We are told by bankers that there's something in the order of 40 that are committed to going public," said Tom Healy, chief executive officer of the Abu Dhabi Securities Exchange, which has 66 stocks listed. "The timing is something we can't predict because you have to have an improvement in the market and not just a temporary improvement," he said in a Bloomberg Television interview. Share sales have ground to a halt as the global credit crisis drove oil down more than $100 a barrel from its July record and caused the ADX General Index to plunge 47 per cent in 2008.

Kuwait's Global Investment to raise capital

Kuwait's Global Investment House, which defaulted on its debt due to the global financial crisis, said on Monday it plans to raise its capital by 114 percent through a new shares issuance..

Kuwaiti investment bank reports first ever loss

Kuwait's largest investment bank, which has been struggling with debt, says it has reported its first ever annual loss. Global Investment House said its overall net loss for 2008 was 257.6 million dinars ($888.3 million) compared to a profit of 91.4 million dinars in 2007.

The Bank of New York Mellon appointed principal paying agent and issuing agent by QTel

The Bank of New York Mellon, a global leader in asset management and securities servicing has been appointed Principal Paying Agent and Issuing Agent for Qtel International Finance Limited's ("QIFL") $5 bn GMTN Programme unconditionally and irrevocably guaranteed by Qtel. This is the inaugural debt issuance for QIFL with net proceeds of the sale of the Notes offered used for general corporate purposes, including refinancing existing indebtedness.

LSE welcomes year's first sukuk

The London Stock Exchange (LSE) welcomed the first sukuk to be listed in Europe this year, a $750 million sukuk issued by CBB International Sukuk Company (No.2) (SPC) on behalf of the Government of Bahrain. The sukuk highlights London's standing as a key global venue for Islamic finance, said a LSE statement. The London Stock Exchange's sukuk market is the largest of any exchange in Europe. This new listing brings the total number of sukuk admitted to the Exchange's markets to 19 and the total money raised through sukuk issuance to $11 billion.

Dubai's Islamic financial institutions meet the Australian regulator

Dubai Export Development Corporation, headed by its Chief Executive Officer, Engineer Saed Al Awadi, is currently leading the first Islamic Financial Services Mission to Australia accompanied by senior industry representatives from Dubai.

VTB Capital to move into Islamic finance

VTB Capital, which is described in a press release as "the second largest Russian financial institution", has launched its operations in the Gulf and wider MENA region with the opening of its office in Dubai.

Noor Islamic Bank partners with UAE Exchange

Customers of Noor Islamic Bank cards will now be able to make their monthly payments at any of the 77 branches of UAE Exchange located across the country. The service comes in addition to the other five easy payment options that include cash and cheque deposit machines, standing instructions, phone banking for Noor account holders, direct mail, and the bank's 16 locations in the UAE.

Bahrain raises Sukuk value to $750m

The pattern is almost predictable. Sovereign and quasi-sovereign Sukuk issuances that have come on the market in the last few months have attracted so much investor attention that the size of the offerings has had to be increased. This, despite the tightening of the pricing compared with conventional bonds by the same sovereign issuer and the recovery of yields and spreads.

Gold securities trading, the Islamic way

More proof that the ingenuity of those who invent financial products for a living knows no bounds comes in the form of the Middle East's first sharia-compliant gold exchange-traded commodity (ETC) - Dubai Gold Securities, a joint initiative from the World Gold Council and the Dubai Multi Commodities Centre. Dubai Gold Securities (DGS) began trading on Nasdaq Dubai in spring this year. Each share in the ETC is 100% backed by physical gold held by an independent custodian, and each represents an initial interest of one-tenth of a fine troy ounce of the spot price of the allocated gold bullion.