The Oryx: 02/16/13

Saturday, February 16, 2013

Bourse witnesses sluggish performance vis-à-vis Gulf neighbours

The Qatar Exchange, which has so far witnessed a spate of corporate results, occupied a place in the extreme bottom half among the seven Gulf bourses during the week.

While the 20-stock Qatar Index and Total Return Index rose 0.4% each, Dubai saw its bourse surge 1.85%, Kuwait (1.73%), Saudi Arabia (1.15%), Abu Dhabi (0.9%), Muscat (0.78%) and Bahrain (0.29%) in the week.

Qatar’s performance was also rather sluggish vis-à-vis other Gulf neighbours year-to-date (YTD) with the key index gaining 5.19% scale, whereas Dubai and Abu Dhabi were the first two best performers with their indices expanding 16.73% and 11.56% respectively. Kuwait reported 7.81% gains, Saudi Arabia (3.85%), Bahrain (2.41%) and Muscat (2.39%).

Strong buying, especially in consumer goods, transport, telecom and banking stocks, led the QE to maintain the bullish momentum during the review week that saw news reports on looming ‘currency war’ although the G7 countries — the US, Japan, Germany, Britain, France, Canada and Italy — jointly held that their fiscal and monetary policies would not target exchange rates.

Read more: http://www.gulf-times.com/business/191/details/342299/-bourse-witnesses-sluggish-performance-vis-%C3%A0-vis-gulf-neighbours

Savola Group hits 2-month high on earnings

The Tadawul All-Share Index closed half a percentage point higher Saturday to reach 7,087. Sabic rose to 2-week high at SR94. Food and beverages giant Savola Group added in line with market performance 0.50%, finishing at SR40.50. Earlier in the day, Savola said its net income for the year ended 31 Dec. 2012 amounted to SR1.4bn, increase of 16.7% compared to last year SR1.2bn.

Savola added that the increase in the net income was attributed mainly "to the outstanding performance of its operations of foods Sector and the continued growth of revenues, which reached SR27.4bn compared to SR25.2bn for the last year, increased market share in retail sector and capital gain of SR47m from sale of Emaar Economic City shares."

Saudi shares rise in early trade, led by banks

Saudi stocks rose in early trade on Saturday, led by banks, as the all-share index climbed 0.19 percent to 7075,79 points.

The heavyweight Al Rajhi Bank gained 0.37 percent.

Oil prices sank on Friday and Brent futures finished their first negative week since mid-January after an unexpected dip in US industrial production spurred concerns about lagging economic activity.

Kingdom Holding Co rises 4.48 percent after the international investment firm of Saudi billionaire Prince Alwaleed bin Talal said it and a consortium of investors have bought a SR1.5bn ($400m) stake in Chinese online retail firm 360buy Jingdong.

Oman forecast to see 63% hotel sector growth

Oman's hotel sector is set to grow by more than 60 percent if all 4,613 rooms in the country’s total active pipeline open, according to new data.

STR Global said the sultanate was poised to grow the most in the Middle East and Africa (63.9 percent), with five other countries in the region set to expand by more than 30 percent.

Its latest data for January showed the Middle East/Africa hotel development pipeline comprises 480 hotels totalling 118,023 rooms.

As well as Oman, STR Global said Saudi Arabia's hotel market is expected to grow by 53.2 percent with 27,783 rooms in its active pipeline.

63m poor benefit from ALJ poverty action lab

In fulfillment of their social responsibilities and inspired by the work of Professor Esther Duflo, winner of the Young French Economist Award 2005 and founder of a research center at the Economics Department at the Massachusetts Institute of Technology (MIT), Abdul Latif Jameel (ALJ) Company champions efforts around the globe that bring relief to the suffering of millions in the world.

Mohammed Abdul Latif Jameel, a Graduate of MIT, arranged a trip to Boston to meet Professor Duflo, essentially to learn more about her and what she was trying to achieve. His interest was raised as she declared that she wanted to seek effective solutions based on empirical research and data rather than just writing about global poverty. The words “poverty” and “action” being used together in the title of the Lab was the instrumental factor. Through rigorous analysis based on randomized trials, aid programs can in turn be evaluated, made more effective, more intelligent and less wasteful in order to really improve the lives of millions of poor people around the world.

Read more: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20130216153350

Qapco achieves 30pc Qatarisation of workforce, says vice-chairman

DOHA: Qatari nationals make up about 30 percent of the total workforce of Qatar Petrochemical Company (Qapco). And the number of nationals in the top management is as high as 80 percent, said a senior official of the company recently.

“Over 80 percent of employees in the top management of Qapco are Qataris. And as far as achieving the target of Qatarisation is concerned, we have witnessed a remarkable success. Currently about 30 percent of our total workforce consists of nationals, and we are confident of achieving the set target of 50 percent in the years to come,” said Dr Mohammed Yousef Al Mulla (pictured), Vice-Chairman and CEO of Qapco on the sidelines of the launch of Qapco Club in Mesaieed on Tuesday.

Under the Qatarisation policy, the overall target for the energy and industry sector is reaching and maintaining 50 percent or a greater number of Qataris in permanent jobs. However, there are public sector companies with less than five percent Qatari employees, far below the target, and continuing to woo the limited Qatari labour force to achieve it within the given time frame.

Demand-supply gap closing fast

After a lull of close to five years, there are hints that Qatar’s property market is looking up. The government’s announcement of multi-billion dollar development projects has cheered the market, but people fear that house rents may zoom to the 2005-2006 levels — a hike of 40 to 45 percent.

Asking price, a key indicator of the real estate market, has gone up by five to 10 percent in Doha and its suburbs. It is likely to shoot up further by the end of this year or by 2014, when Qatar’s flagship development projects are expected to kick in, leading to a heavy influx of foreign workers and their families.

“Initially, the biggest pressure is going to be on the mid-segment residential villas. Until last October, a two-bedroom flat in Doha was available for something around QR4,000. The rentals have now gone up to QR5,000 to QR5,500”, said the marketing executive of a local real estate company.

The growth rate of asking price in the residential sector has been going up since the second quarter of 2012. It has increased in all the residential categories except unfurnished villa units. The average rate of growth for furnished residential units has been higher than that for unfurnished units this quarter. For furnished residential units, the average rate of growth was 7.15 percent, and for unfurnished units the rate of growth was 3.39 percent, say market experts.

Real estate: Moving up

Qatar’s huge infrastructure commitments herald a rebound in its real estate sector. As major projects get under way, market forces are really bullish. However, with the demand-supply gap in the housing market fast closing, there are serious worries whether rentals will revert to the pre-Doha Asian Games levels, when the market saw an unprecedented spike of 40-50 percent.

60 billion dollar construction contracts in Qatar over two years

Qatar has now entered the next crucial stage in preparation for the 2022 World Cup, where a significant increase in the number of contracts in the active enterprise market is expected for the years 2013 and 2014.

During this stage consultants work intensively and contractors brace for the tenders in preparation. They impatiently await the announcement of granted contracts, which are likely to reach 25-30 Billion US Dollars a year, making Qatar the leading enterprise market with the fastest growth rates in the world. These developments are to be discussed extensively during the upcoming Qatar Projects’ Conference 2013, which will be held under the patronage of His Excellency Dr. Mohammed bin Saleh al-Sada, Minister of Energy and Industry as well as Chairman & Managing Director of Qatar Petroleum, who will also be giving a keynote at the event on February 18, 2013.

The conference will be held at Grand Hyatt Doha, supported by Qatar Petroleum, Qatar Chamber and the Public Works Authority, and will be characterized by an overview of the significant projects currently being developed, as well as projects to be granted, during a time where the country prepares for the biggest event it has known to date.

Significant rise in prices of fruits and vegetables

The latest data released by the Consumer Protection Department (CPD) at the Ministry of Business and Trade have shown a significant increase in the prices of fruits and vegetables in the central market over the past one year.

Prices of vegetables rose by 18 percent in January this year compared to December 2012 and the fruit prices increased by seven percent over this period, according to CPD’s monthly statistics. Vegetables became dearer by nine percent in January compared to December 2012, while prices of fruits remained stable during this period. Prices of fish increased by 10 percent compared to December last year but declined by 21 percent compared to January last year.

There was no noticeable increase in the prices of meat in January, compared to December. Comparative prices of meat in 2013 and 2012 have not been given. Vegetables that witnessed the highest price increase over the past one year were Saudi cucumber, Chinese ginger, Qatari cauliflower, Jordanian tomato, Qatari egg plant, Indian red onion, Koosa (Saudi and Qatari) and Chinese garlic.

First Miracle Garden project opens in Dubai

Dubailand, the Dubai Properties Group destination, has signed an agreement to develop the first Miracle Garden project in the city.

The Project Development Agreement has been inked with Akar Landscaping & Agriculture Company.

The new development, a 721 000 sq ft outdoor leisure facility which opened this week, includes special vertical and horizontal landscaping designs, each area has special design.

A second phase of the project is set to see new retail, restaurants, souvenir shops, plant nurseries and a multi-storey car park and work will start on site in the middle of the year.

UK royals set to boost ties with Qatar, Oman

The British Government has asked The Prince of Wales and his wife, The Duchess of Cornwall, to undertake official visits to Qatar, Oman and Jordan next month.

The tour from March 11-19 aims to help to strengthen the UK’s bilateral relations with key partners in the region, according to a statement on the official website of Prince Charles.

The visits will also aim to support UK economic interests by highlighting the growing commercial links between British companies and their counterparts in Jordan, Qatar and Oman, and by encouraging the development of an enterprise culture in the private sector in each country.

Abu Dhabi Group, property tycoon to build world's tallest building in Pakistan

Malik Riaz and UAE group to invest $45 billion in Pakistan.

UAE's Abu Dhabi Group and Pakistani real estate tycoon Malik Riaz on Friday signed a deal to invest $45 billion (Dh165.15 billion) in Pakistan including building the world's tallest building in Karachi.

Pakistan's news channel Geo reported today that $35 billion (Dh165.15 billion) will be pumped in Sindh province while the rest will be invested in Lahore and Islamabad.

Under the deal, Sports City, International City, Media City, Educational and Medical City will be built in Pakistan's financial capital. The news channel said that world's Seven Wonders will also be built as part of the project.

GAFTA a boon for inter-Arab trade

A shift in the economic growth model is nowhere more apparent than in the fast developing economies of 17-member Greater Arab Free Trade Area (GAFTA) with their renewed focus on regional trade and investment opportunities, said Khalil bin Abdullah al Khonji, Chairman, Oman Chamber of Commerce and Industry (OCCI).

“As one of the active members, the Sultanate is committed to strengthening its engagement with GAFTA countries,” Al Khonji told the Observer in an exclusive interview. He also urged the countries that form the GAFTA group to further deepen co-operation to cope with risks brought by global economic uncertainties.

GAFTA economic area, which is fully integrated now, is becoming one of the main growth drivers in regional markets. It is hard to overstate the growing strength and influence of the GAFTA region, which is benefitting from rising foreign investment, strong retail demand and expansionary government spending on major infrastructure projects.

Read more: http://www.gulfbase.com/news/gafta-a-boon-for-inter-arab-trade/229328

Saudi's Kingdom leads $399m China retail deal

Saudi-based Kingdom Holding Company said on Saturday it has led a consortium of investors to buy a SR1.5bn ($399m) stake in a Chinese online retail firm.

The investment firm, chaired by Saudi billionaire Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, led the acquisition of the stake in 360Buy Jingdong Inc, with Kingdom investing SR470m.

Prince Alwaleed said the deal solidified the strategic relationship between Saudi Arabia and China.

360buy Jingdong Mall is the biggest consumer electronics online retailer in China.

UAE, Austria to boost ties

UAE Foreign Trade Minister Shaikha Lubna Al Qasimi received Dr Michael Spindelegger, Vice-Chancellor and Federal Minister for European and International Affairs of the Republic of Austria, and his accompanying delegation,

where both sides discussed strengthening cooperation and economic and commercial relations between the UAE and Austria.

“Today, we see relations between the UAE and Austria strengthen and prosper, giving us, as officials from our two countries, a renewed incentive to expand the horizons of our economic partnership and increase joint investments that benefit the citizens of our countries,” she told the guests.

Shaikha Lubna also discussed investment cooperation and available investment opportunities for Austrian companies, calling on these to increase their presence and investments in the UAE in order to also be able to promote their products in neighbouring countries in Asia and Africa and benefit from the investment facilitations and strengths the UAE enjoys.

Global Conditions Delay Sale of Brazil's AUX

SAO PAULO--Unfavorable global conditions have led to a delay in the sale of a 49% stake in Brazil's AUX gold business, controlled by billionaire Eike Batista, to Qatar for $2 billion, according to a person with knowledge of the situation.

Negotiations for AUX, which mines gold in Colombia, started in the second half of 2012, after Mr. Batista gave up plans to take the company public, but talks stalled in December, the person said, adding that interest in a deal hasn't been abandoned.

"The willingness to go ahead still exists," the person said.

Talks were initially conducted between EBX and Qatar Mining Co. and then sent for final evaluation to Qatar Holding LLC, the investment house founded by the Qatar Investment Authority, which hasn't yet given its final word on the matter, according to the same person.

Emir H. H. Sheikh Hamad bin Khalifa Al Thani began a tour of South American countries this week, but he wasn't expected to meet with Mr. Batista, the person said.

Dutch firm wins $133m Dubai island deal

Dutch dredger Van Oord has won a EUR100m ($133m) contract to build an island off the Dubai coast for a new mixed-use development to include luxury homes and an elite boutique resort.

Meraas Development, a unit of Meraas Holding has contracted Van Oord to build Jumana Island which will lie 500 metres off the coast.

Work on the project has started and completion is scheduled for the end of 2013, Van Oord said in a statement.

According to the Meraas website, the island project will have direct access from Jumeirah Road and will be linked to the mainland via a 300m-long bridge.

Abu Dhabi 'free of horsemeat', says regulator

Abu Dhabi's retail market is free from any horsemeat, according to the emirate's food safety regulator, amid a growing scandal across Europe.

No horsemeat is present in any foods at any wholesalers or vendors in the emirate, said the Abu Dhabi Food Control Authority (ADFCA), the body responsible for food safety and agriculture in the emirate.

Mohammed Al Reyaysa, a spokesperson for ADFCA, said a comprehensive survey conducted upon receiving alerts from WHO's International Food Safety Authorities Network (INFOSAN) confirmed there are no meat products that violate the standards in the emirate.

ADFCA is aware of all updates, alerts and international developments relating to food safety monitoring and takes immediate measures to ensure no products that violate food safety standards, he said in comments published by news agency WAM.

Engaging Emiratis important to bolster UAE services sector

There is a strong need to engage and involve the local population into working in the services sector, according to Tiger Tyagarajan, chief executive officer and president of Genpact, a business process management services provider that opened office in Dubai, its first in the Middle East, in October 2011.

The comments by the CEO of Genpact — a $1.9 billion company that opened its first Middle East office in Dubai in October 2011 — assumes importance in light of the efforts made by the UAE Federal Government to increase the participation of local population in the service industry through its Emiratisation programme.

Although at a nascent stage, Genpact is already in talks with its sponsor, Dubai Outsource Zone, to identify and implement ways to boost the participation of the home-grown populace.

GCC invest $36b in port development

The GCC countries are allocating $36 billion to further develop their port infrastructure amid increasing foreign non-oil trade volumes.

Saudi Arabia is powering ahead with port infrastructure development with more than $750 million allocated to Dammam's King Abdul Aziz Port, which includes the launch of a second hi-tech container terminal in 2015 with capacity for 1.8 million TEUs per annum.

The Jizan Economic City project will also include port infrastructure plans while the northwestern port of Dhiba will get a new $46.4 million container terminal. Two additional terminals, valued at $38.4 million, are to be constructed at King Fahd Industrial Port in Jubail while Jeddah Islamic Port is forecasting an average increase of 10.9 percent through to 2016.

Read more: http://www.zawya.com/story/GCC_invest_USD36bn_in_port_development-ZAWYA20130216042854/

Etisalat in talks for $8bn Maroc deal loan

Abu Dhabi telco Etisalat is talking to banks about a syndicated loan of up to $8bn to finance a bid for Vivendi's 53 percent stake in Maroc Telecom, banking sources have said.

An $8bn acquisition loan would be the largest Gulf merger and acquisition loan in six years.

Etisalat has asked banks to bid for the roles of M&A and financing advisor, one banker said.

Vivendi is under pressure from shareholders to bolster its flagging share price and from rating agencies to reduce its debt, which stands at 15.7 billion euros.

Kuwait-linked bank inks US offices deal

Kuwait-owned Gatehouse Bank, a Shariah compliant investment bank based in London, has announced a deal to buy an office building in Salt Lake City, Utah.

Gatehouse, whose parent company is the Securities House in Kuwait, said in a statement that it has completed the acquisition of the 163,000 sq ft building which is expected to provide "stable and healthy yield".

The property is 100 percent leased to the General Services Administration (GSA) for a fixed term of 20 years. Gatehouse did not give a value for the property deal.

The GSA is the procurement agency for the US Federal government, and provides various government agencies with world-class sustainable facilities.

Medical tourism boosts UAE health care sector

Dubai: Local beaches and mega-sized malls have long been huge tourist attractions, but now the UAE’s hospitals and specialised clinics are drawing in visitors. And in sizable numbers too.

The UAE’s medical tourism market was worth $1.58 billion (Dh5.8 billion) last year, according to research from Euromonitor International. It is expected to grow a further 6.5 per cent this year to $1.69 billion.

The Dubai Health Authority estimates that the number of inbound medical tourists in Dubai were up 10-15 per cent last year. Tellingly, Dubai Healthcare City reckons the numbers to go up 7.2 per cent annually until 2015.

GCC economies stay insulated from MENA, global turbulence

The Gulf economies remain insulated from economic and political turbulence in the broader MENA region, and globally, Standard & Poor's Ratings Services said in its report titled "The Gulf Economies Are Going Strong, But Structural Issues Still Weigh On The Sovereign Ratings".

"We rate seven sovereigns in the Gulf Cooperation Council (GCC): Abu Dhabi, Bahrain, Kuwait, Oman, Qatar, Ras Al Khaimah, and Saudi Arabia. All have a stable ratings outlook," the report noted.

However, structural challenges continue to constrain sovereign ratings, despite the GCC's relative wealth, it added, forecasting a 4.6 percent GDP growth in 2013. "There are still particular shortcomings in the effectiveness and predictability of policymaking in the GCC,"

Standard & Poor's credit analyst Dima Jardaneh said. "Weaknesses include the quality of policy debate; the strength and depth of institutions; transparency of decision-making; data monitoring and reliability of information; legal frameworks and the rule of law; and succession risks."

Hilton inks deal for new DoubleTree in Dubai

Global hotel giant Hilton Worldwide has signed an agreement with Al Ain Hospitality Investments to operate a new DoubleTree by Hilton hotel in Dubai.

The new 110-suites DoubleTree by Hilton Dubai will be located in Jumeirah Beach Residence and is expected to open in late 2013.

The hotel is part of a larger dual-tower upscale development which also includes a residential complex.

Abdul Aziz Husain Ahmed, CEO of Al Ain Properties, said: "Our capabilities and experience as a property developer and hospitality investment company combines perfectly with Hilton Worldwide's expertise as hotel operators, and we're delighted to be working with them on such an exceptional property."

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