Finance

Kuwait sells Citi stake

Oil-rich Kuwait has banked a £670 million profit after selling its stake in troubled US bank Citigroup. The sheikhdom bought a 5 per cent slice of Citi at the start of last year, helping to shore up its creaking balance sheet. But as the Wall Street giant prepares pay to pay back its US$45 billion (£27 billion) US taxpayer loan, Kuwait has decided to cash in on its investment. The Kuwait Investment Authority also invested £1.2 billion in Merrill Lynch last year at a time when struggling Western banks, such as Barclays, tapped Middle Eastern investors for cash.

Arab stocks end volatile 2009; investors eye annual results

Arab stock markets closed the last week of 2009 on a lower note as investors awaited the release of annual corporate results, expected to start coming out the week of January 4th, financial analysts said. "Regional stocks are expected to move sideways in the coming period as investors are apparently concerned over the 2009 results," an Amman-based portfolio manager said. "We believe that annual profits will represent the main moving factor for Arab markets in the coming couple of weeks," he said. "However, developments on global markets, clues to world recovery and oil prices will continue to be key elements to reckon with," he added. Saudi shares came under selling pressures in the last week of December amid expectations of retreating profits, particularly for the banking sector. The Tadawul All Share Index (TASI) of the Arab world's largest bourse shed 2 per cent that week, closing at 6,121.76 points. That is still a 27.5-per cent rise compared to levels at the beginning of 2009, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

Qatari Doha Bank not exposed to Dubai World

Doha Bank said in a filing to the Qatari bourse that it had no credit facilities or direct investments in debt-ridden conglomerate Dubai World or its subsidiary Nakheel, or any other subsidiary of Dubai World. On November 25, Dubai's government asked creditors for a standstill agreement on Dubai World's US$59 billion (EUR 40.32 billion) debt. On December 14, Abu Dhabi stepped in to help Dubai with a US$10 billion injection, of which US$4.1 billion was allocated to Dubai World to pay immediate obligations. The bailout was the least expected of all options Dubai had after requesting the standstill. Doha Bank offers a range of commercial and Islamic banking solutions for individuals and corporations through Personal and Corporate divisions. The bank operates through a network of 32 branches across Qatar, including four Islamic branches; overseas branches in the United States, the United Arab Emirates and Kuwait; and representative offices in Singapore, Turkey, China, Korea and Japan.

Moody's downgrades two Bahraini banks' supported ratings, stress level modest

Moody's Investors Service has downgraded the supported ratings of two Bahraini banks - National Bank of Bahrain BSC's (NBB) long-term local currency deposit rating was downgraded by one notch to A2, while BBK BSC's local and foreign currency deposit ratings were similarly downgraded by one notch to A3/Prime-2 and its senior and subordinated debt ratings to A3 and Baa1, respectively. All ratings now have a 'stable' outlook. These downgrades follow Moody's downward reassessment of the Bahraini government's ability to provide systemic support to the domestic banking sector, but were not driven by any reassessment of their standalone financial strength.

National Bank of Pakistan to set foot in Saudi Arabia

State-owned National Bank of Pakistan is considering expansion in Saudi Arabia early next year, sources said. NBP has obtained permission by the Saudi authorities to set up a branch in the country in 2010. The move will help the Pakistani bank boost the volume of worker remittances channeled officially from the kingdom. In addition, the Bank's presence in the country will help it attract investors from Saudi Arabia into Pakistan.

Qatar's QNB considering emerging market opportunities

Qatar National Bank, the Gulf state's largest lender, said it is considering expansion in emerging markets, but downplayed a recent report about a specific opportunity in an Indonesian bank. "Please note that QNB is considering all the emerging markets within its plan for expansion and diversification sources of income," the bank said in a bourse statement. "With reference to news dated December 8, 2009 in some local newspapers regarding QNB is examining to purchase a majority stake in an Indonesian Bank, please note that this news is not issued by the QNB, and currently there is no serious negotiations in this regard." An Indonesian government envoy to the Middle East said that several investors from the region were considering opportunities in the country.

Trade Bank of Iraq joins Thomson Reuters global foreign exchange trading system

Thomson Reuters announced in early December that the Trade Bank of Iraq (TBI) will become the first bank in the country to connect to the international foreign exchange and money market community using the Thomson Reuters Dealing trading service. By joining the professional international foreign exchange community through Thomson Reuters Dealing, TBI will for the first time be able to access liquidity and counterparties across global money markets electronically. Until now, TBI has been managing its foreign exchange (FX) and funding needs by telephone. TBI traders will also use Reuters 3000 Xtra, a high-performance desktop system that delivers real-time data and analysis tools for financial professionals. The dealing code for the bank will be TBIB.