Consumer spending in UAE to reach Dh677b

With the economy recovering and the cost of living moving upward, consumers in the UAE are expected to spend more out of their pockets this year and in the next few years, industry analysts told Gulf News.

According to Euromonitor International , consumers are forecast to spend Dh677 billion this year, up 4.1 per cent in real terms over 2012.

An Hodgson, income and expenditure manager at Euromonitor International , said the fastest growth will come from the communications sector, with spending expected to hit 7.2 per cent year-on-year in real terms this year, while spending on housing will grow by 4.2 per cent.

Read more: http://www.zawya.com/story/Consumer_spending_in_UAE_to_reach_Dh677b-GN_03042013_040428/

Gulf RAK Oil sets up lubricant production plant at Maritime City

Gulf RAK Oil LLC, a state-of-the-art lubricant manufacturing plant and grease processing facility jointly set up by the government of Ras Al Khaimah and Gulf Oil International, the energy wing of Hinduja Group, was commissioned Wednesday by Sheikh Saud Bin Saqr Al Qasimi, Supreme Council Member of the UAE and Ruler of Ras Al Khaimah, in the presence of Sheikh Nahayan bin Mubarak Al Nahayan, Minister of Culture, Youth and Community Development, UAE.

The launch of Gulf RAK Oil was also attended by Gopichand P Hinduja, Co-Chairman, Hinduja Group of Companies, M. K. Lokesh, Ambassador of India to the UAE, and senior officials of the government of Ras Al Khaimah and the Hinduja Group.

Read more: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20130404159792

DSI secures SR376m worth of contracts in Riyadh, Abu Dhabi

Drake & Scull International PJSC (DSI), a regional market leader in the integrated design, engineering and construction disciplines of general contracting, mechanical, electrical and plumbing (MEP), water and power, rail and oil and gas, has recently been awarded contracts collectively worth SR376 million for the construction of three banking facilities including a major data center in the Kingdom of Saudi Arabia and a utility project in Abu Dhabi, UAE.

DSI has been awarded three separate contracts by Al Rajhi Bank with a combined value of SR293 million to construct the bank’s cash center, operations center and a major data center facility in Riyadh. The company has also secured an SR83 million contract for the construction of a government utility project in Abu Dhabi.

Read more: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20130404159807

Kingdom’s investment pace seen to slow down

Saudi Arabia’s investment in development projects will continue but at slower pace in the coming years, Saudi American Bank group (SAMBA) said in its monthly bulletin.

Capital spending this year will remain high as several projects which were delayed in 2012 will be implemented this year but growth in investments will be slow than in previous years.

“These projects should help to keep real nonoil growth in excess of five percent this year… nevertheless, it was notable that investment spending by the central government contracted in 2012. We do not believe that investment spending will be cut again in 2013, but we do think that much weaker growth in central government investment spending will be the pattern for the next few years,” it said.

Read more: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20130404159799

Saudi stock market, other GCC bourses ascend

Stocks markets in the GCC countries ended in positive note Wednesday, except Bahrain’s.

In Saudi Arabia, the index ticked up 0.08 percent to 7,178 points as investors hesitated to increase risk ahead of the weekend due to uncertainty on the global front.

“We’re still being driven by sentiment from Europe and the US and unless we see something positive coming out of there, it’s getting difficult to see a rally in the short-term,” said Muhammad Faisal Potrik, research analyst at Riyad Capital.

“Even with earnings season almost starting, we haven’t seen a major push in the market - the drag could be from the global news flow.”

Read more: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20130404159801

World’s largest airport spreads wings in Dubai – Passenger services to begin on Oct 27

Dubai’s new international airport, which started cargo operations in 2010, will open its long-delayed passenger terminal on Oct 27 with two budget airlines launching services there, airport authorities said yesterday.

European low-cost carrier Wizz Air and Saudi Arabia’s Nasair will begin passenger operations into Dubai World Central, Dubai Airports said in a statement. Dubai World Central is designed eventually to cater to 160 million passengers, which would make it the world’s largest airport on completion. It is supposed ultimately to replace the emirate’s current international airport, Dubai International – though this will not happen before next decade at the earliest.

Read more: http://news.kuwaittimes.net/2013/04/03/worlds-largest-airport-spreads-wings-in-dubai-passenger-services-to-begin-on-oct-27/

Qualitynet launches QBusiness

Qualitynet, Kuwait’s No 1 Total Solutions Provider has introduced the first-of-its-kind portal for corporate customers. The portal also known as QBusiness, will serve the needs of its corporate customers, providing them with an entry point for a range of information, tools and helpful links. Hassan Akbar, Sales Director – Corporate and Business Services, Qualitynet stated “QBusiness marks a step forward in our pursuit to providing differential services for the Business segment.

Read more: http://news.kuwaittimes.net/2013/04/03/qualitynet-launches-qbusiness/

Slashing expat workforce detrimental to economy

Manpower is the backbone and the most valuable asset and capital of a country’s economy and it must therefore be protected and nurtured, accordingly to a Kuwait-based economist. Speaking with the Kuwait Times, Dr Hajaj Bukhadoor, a Kuwaiti professor of economics, stated that Kuwait should take lessons from the principles of economics. “The value of manpower is the first lesson learnt by students of economics and business administration. Human resources are the backbone and the most valuable assets and capital of a company, which need to be protected and nurtured at the same time. The more manpower you’ve got, the more resources you can have,” he said.

However, he added, human resources should be of good quality so they would not burden the economy and could be a real asset to the country. Bukhadoor was speaking in reference to the recently announced statements about a possible reduction in the number of expats employed in Kuwait. Bukhadoor questioned the way in which the ministries of labour and interior were making efforts to fulfil their objective of reducing the number of expatriates in the country. Kuwait is home to more than two million foreigners, who make up twothirds of its total population. Earlier this month, the government said it was planning to halve the number of expatriates working in the country within 10 years. Previously, the government had announced its plans to cut down the number of expatriates by 100,000 annually. “They are about to implement the plan without proper coordination and explanation.

Read more: http://news.kuwaittimes.net/2013/04/03/slashing-expat-workforce-detrimental-to-economy/

Assembly overwhelmingly approves debt relief law – MPs nod to election commission decree despite criticism

The National Assembly yesterday overwhelmingly passed in the second and final reading of a debt relief law requiring the government to pay KD744 million to purchase bank loans taken by citizens before March 30, 2008. As many as 50 members, including the prime minister and 12 other cabinet ministers present, voted for the legislation that will become effective after His Highness the Amir signs it and is published in the official gazette. Four MPs opposed the law while three others abstained.

The law covers 47,444 Kuwaiti debtors who took loans from conventional banks and financial companies but contrary to the first reading, the law excludes clients of Islamic banks and companies. The law also excludes around 20,000 debtors who are covered by the so-called defaulters fund established in 2009 to help Kuwaiti debtors facing difficulty in repaying.

Read more: http://news.kuwaittimes.net/2013/04/03/assembly-overwhelmingly-approves-debt-relief-law-mps-nod-to-election-commission-decree-despite-criticism/

RasGas opens new state-of-the-art warehouse complex at Ras Laffan

RasGas has opened a new state-of-the-art warehouse at Ras Laffan.

The new warehouse provides support and services for all internal and external user departments of RasGas which include its onshore and offshore facilities.

RasGas chief executive officer Hamad Rashid al-Mohannadi said, “As a world-class energy supplier striving for excellence, we always ensure we remain top class in all departments, be it in production, storage or maintenance. To match with the most advanced technology used in our production facilities, we have made it a point to bring the most innovative techniques in the field of storage too.”

Read more: http://www.gulf-times.com/business/191/details/347845/rasgas-opens-new-state-of-the-art-warehouse-complex-at-ras-laffan

QE listed firms post slight fall in cumulative 2012 net profitability

Companies listed on the Qatar Exchange registered a marginal decline in their cumulative net profitability in 2012, dragged mainly by precipitous slippages in the realty sector, painting rather a pessimistic picture in an otherwise strong economy.

The bourse witnessed 10 of its listed companies (one less than in the previous year) report more than a billion riyals net profit in 2012.

The 41 total listed companies have reported more than 1% decline in their cumulative net profits against a stupendous 27% growth in the comparable period of 2011. The stock market, overall, had fallen 4.79% year-to-date (YTD) as on December 31, 2012.

Cumulative net profits stood at QR37.87bn in 2012 compared to QR38.43bn in the previous year period. Vodafone Qatar follows April-March format, while others follow January-December system.

Read more: http://www.gulf-times.com/business/191/details/347937/qe-listed-firms-post-slight-fall-in-cumulative-2012-net-profitability

It's “raining cash”, says Nakheel CEO

The new CEO of Nakheel has claimed that Dubai is “raining cash”, citing the huge demand in the emirate for hotel rooms.

In a speech to the CEO Clubs UAE on Wednesday, Sanjay Manchanda said the tourism sector’s growth seemed unstoppable as new hotel rooms failed to put downward pressure on occupancy levels and room rates.

“The average room rate has gone up to US$303. According to all analysts we’ve been going through, this is the highest in three years. So guys, this is just raining cash,” he claimed.

Read more: http://www.arabianbusiness.com/it-s-raining-cash-says-nakheel-ceo-496597.html

Alwaleed blames 'bad planning' for Saudi housing crisis

Saudi Arabia’s shortage of adequate housing for its growing population is a result of “bad planning” and the absence of legislation that regulates and paves the way for mortgage financing, Prince Alwaleed said.

“I think there were several reasons [for the housing crisis in the kingdom],” Alwaleed who is a nephew of King Abdullah of Saudi Arabia, said when asked by a group of hosts in an three-hour interview on his Rotana entertainment channel about his views on the housing shortage.

“The first was bad planning, let’s be honest…there was bad planning in the past,” he said.“However, King Abdullah and his leadership diagnosed the situation and tried to take quick and effective measures.

Read more: http://www.arabianbusiness.com/alwaleed-blames-bad-planning-for-saudi-housing-crisis-496546.html

L&T wins $257m Abu Dhabi airport contract

Larsen & Toubro (L&T) said on Wednesday it has won a AED943m ($257m) contract from Abu Dhabi Airports Company to work on the construction of the midfield terminal complex.

The Transportation Infrastructure Business of L&T Construction said in a statement that work on the project is part of the major expansion programme of Abu Dhabi International Airport.

Work is scheduled to start this month with a construction period of 28 months. The airport terminal complex is expected to be commissioned by 2017.

The complex consists of a midfield terminal building and related airside and landside work. The new terminal building will serve as the new gateway to Abu Dhabi.

Read more: http://www.arabianbusiness.com/l-t-wins-257m-abu-dhabi-airport-contract-496578.html

Qatar's Hassad buys stake in Indian rice firm

Hassad Food Co, the agricultural investment arm of Qatar’s sovereign wealth fund, has bought a majority stake in an Indian basmati rice company for more than $100m, it was reported on Wednesday.

Hindu Business Line said Hassad Food had bought the stake in Bush Foods Overseas Ltd which sells basmati rice under the ‘Neesa’ brand.

“This is a strategic partnership with Hassad Food which is part of Qatar’s sovereign fund,” Bush Foods Managing Director and CEO Virkaran Awasty was quoted as saying.

Read more: http://www.arabianbusiness.com/qatar-s-hassad-buys-stake-in-indian-rice-firm-496560.html

Bahrain's Batelco completes $570m overseas deal

Bahrain-based Batelco Group on Wednesday announced the finalisation of its acquisition of various companies from Cable & Wireless Communications (CWC), which comprise its Monaco and Islands Division.

Batelco's Group chief executive Sheikh Mohamed bin Isa Al Khalifa and CWC announced that all necessary regulatory approvals and conditions have now been satisfied and ownership of specific companies has now been transferred to Batelco.

Batelco has acquired the entire CWC interest in Dhiraagu (Maldives), Sure Channel Islands and Isle of Man and CWC operations in Falkland Islands, St Helena, Ascension and Diego Garcia.

Read more: http://www.arabianbusiness.com/bahrain-s-batelco-completes-570m-overseas-deal-496548.html

Nakheel sells out of retail space at new Dubai mall

Dubai developer Nakheel said on Wednesday that all retail space has now been leased out at its new Discovery Gardens mall which is due to open next year.

Construction of Nakheel's new 8,700 sq m community centre in Dubai's Discovery Gardens is on schedule, with all 6,000 sq m of available shop space now booked by retailers and restaurants.

More than 20 local and international brands have signed up for the mall, due to open in early 2014.

Among them is anchor store Geant, which will take up more than 40 percent of the complex, Nakheel said in a statement.

Read more: http://www.arabianbusiness.com/nakheel-sells-out-of-retail-space-at-new-dubai-mall-496552.html

MidEast airlines lead world on passenger growth

Middle East carriers saw year-on-year passenger demand expand by 10.6 percent in February, the strongest performance in the world, the International Air Transport Association (IATA) said on Wednesday.

Capacity expansion in the region was held to 9.7 percent with the result that load factor rose 0.7 percent to 77.7 percent, also the highest for any region.

Globally, IATA data showed that demand growth is accelerating on the back of stronger business confidence, particularly in emerging regions. Passenger demand rose 3.7 percent compared to February 2012.

Since October, IATA said passenger demand has been growing at an annualised rate of nine percent. This is almost double the growth trend over the first nine months of 2012.

Read more: http://www.arabianbusiness.com/mideast-airlines-lead-world-on-passenger-growth-496561.html

UAE's Mubadala said to sign $2bn loan refinancing

Abu Dhabi state investment fund Mubadala has signed a $2bn loan refinancing, two banking sources said on Wednesday.

The three-year revolving credit facility attracted a total of 19 international lenders, one of the sources said, and replaces a $2.5bn loan agreed in 2010.

Banks taking part in the transaction would be regarded by Mubadala as key relationship lenders, meaning they would be chosen for future fee-paying work, Kelly Thomson, Mubadala's head of structured finance, told a conference in Dubai in January.

Read more: http://www.arabianbusiness.com/uae-s-mubadala-said-sign-2bn-loan-refinancing-496569.html

Zain Saudi extends maturity on $600m facility

Telecom operator Zain Saudi has extended the maturity of a $600m facility until May 1, according to a statement on Saudi Arabia's bourse, the latest debt roll over by the loss-making firm.

This was due to be repaid on April 3, but Zain Saudi - an affiliate of Kuwait's Zain - has extended the junior debt with the agreement of a lending syndicate led by Arab National Bank, and now has about $3bn in loans maturing within the next four weeks.

The operator, which has yet to make a quarterly profit since launching services in 2008, last week extended a $2.4bn Islamic loan to April 30.

Read more: http://www.arabianbusiness.com/zain-saudi-extends-maturity-on-600m-facility-496575.html

Sedco Capital plans to increase Islamic funds

Jeddah-based investment firm Sedco Capital aims to expand its range of Islamic funds to more than 15 by year-end, a sign of improving financial market sentiment and changing investor attitudes in Saudi Arabia.

The plan adds momentum to the Gulf’s Islamic funds industry, which has been hurt by the global financial crisis but is now attracting regional firms such as Qatar’s QInvest, which aims to launch 30 funds.

Sedco Capital, a fully owned subsidiary of Sedco Holding, intends to raise assets under management on its Luxembourg fund platform to $1.6 billion by year-end from $1 billion now, said chief executive Hasan Aljabri.

Read more: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20130404159800

Saudi Binladin Group prices $347m Islamic bond

Saudi Binladin Group, one of the largest construction firms in the kingdom, has priced a 1.3 billion riyal ($346.7 million) Islamic bond, two sources said on Wednesday.

The deal is the latest in a string of local currency sukuks in the kingdom, highlighting the growing importance of debt capital markets as a funding stream for Saudi borrowers who have traditionally relied on bank finance.

The SBG issue, which has a 2.5-year lifespan, has a spread of 170 basis points over the three-month Saudi interbank offered rate (Saibor), the sources said, speaking on condition of anonymity as the information is not public.

Pricing came at the tight end of initial price guidance of 170-190 bps, one of the sources said, indicating that demand for the transaction was strong.

Read more: http://gulfbusiness.com/2013/04/saudi-binladin-group-prices-347m-islamic-bond/