Arab Financial Newsletter

Supporting Arab Financial Markets

15 May 2009

Dear Reader, 

Welcome to the latest Arab Financial Newsletter, which provides a summary of key news related to the Arab Financial World. As financial news quickly become outdated, we will now produce this newsletter fortnightly.

Thanks to its strong energy revenues the Gulf is bouncing back from the global financial downturn. Gulf stock markets are showing big increases and countries such as Qatar and Kuwait are reporting strong economies. In a move that will be significant in the long-term, the Gulf countries have agreed in principle to a Gulf Central Bank being based in Riyadh.

For the most recent updates on our activities please access our website: http://www.arabfinancialforum.org/. Please let us know if you have any particular news items that you would like to have printed in the next newsletter. I hope you enjoy this newsletter.

All the best,

Maya Rusinowicz

Editor - projects@meconsult.co.uk

Arab Financial Forum

http://www.arabfinancialforum.org

Upcoming Events:

2nd International Trade and Infrastructure Investment Conference (TITIIC) – Tshwane Events Centre, 27-29th May 2009, South Africa

For more details, please visit http://www.titiic.co.za

Recent Launch of the SWF Study:

AFF launched its latest study on the implications of the growth of Sovereign Wealth Funds at the Bahraini Embassy. The study contributes to the OECD-MENA financial reform programme. Copies are being sent to decision-makers in the public and private sectors. If you would like to receive an electronic version of the study, which is available to interested parties free of charge, please contact AFF on projects@meconsult.co.uk

Articles:

Financial crisis to be probed

Gulf Finance House chairman Esam Janahi will co-chair the World Economic Forum (WEF) which opens at the Dead Sea, Jordan, today.

During the three-day event he will underline the challenges posed by the global financial crisis and draw on his experience in identifying the circumstances that led to the downturn and the essential decisions that must be taken to ensure a return to prosperity.

(15 May 2009) Read more…

Qatari top banker affirms Qatari economy solid

Governor of Qatar Central Bank Sheikh Abdullah bin Saud Al-Thani said the Qatari economy was solid amidst the global financial crisis. Al-Thani, speaking at the opening of Qatar’s International Forum, said the Qatari economy was growing despite the meltdown. He said the gross domestic product (GDP) grew by 44 percent in 2008.

(13 May 2009)   Read more…

Spring in the step of Gulf equity markets

Spring has been good to the Gulf’s equity markets. Over the past three months, all bourses have risen by at least double digits, and all but Kuwait, Bahrain and Qatar have now returned to a positive year-to-date performance.

 Global markets have also rallied, but fund managers in the region say there have been many local catalysts to spur renewed optimism. Oil prices have recovered somewhat, they say, governments are continuing to apply economic remedies, and first-quarter earnings have largely been heartening.

(13 May 2009) Read more…

Kuwait budget likely to see surplus in 2009/10

In its latest economic brief on the oil market and budget developments, NBK expects another budget surplus for FY09/10.  After fluctuating at around $40 per barrel (pb) in the first three months of 2009, the price of Kuwait Export Crude (KEC) rose to above $55 pb mark on May 7th, its highest since early November.

To some extent, the rise seemed driven by the continued implementation of cuts in crude output announced by the OPEC cartel since last September, as the organization seeks to compensate for the steep decline in global oil demand.

(12 May 2009)   Read more…

Tunisia receives 250 million dollar loan from World Bank to boost economic competitiveness

Following the agreement by The World Bank’s (WB) Board of executive directors on April 3, 2009, the WB granted Tunisia a 250 million dollar loan to help boost the integration and competitiveness of the Tunisian economy.

 The loan is a major component of the new World Bank/Tunisia country partnership strategy that focuses on promoting the Tunisian economy’s integration in the market, as well as fostering job creation.

(12 May 2009) Read more…

Riyadh to host Gulf Central Bank

Gulf Countries moved a step closer to monetary union with a decision to base a planned future central bank in the Saudi capital Riyadh.

The six-member Gulf Co-operation Council decided at an informal summit in Saudi Arabia on 5 May that Riyadh would host a joint monetary council that will evolve into the Gulf central bank. The group also announced that it has pulled back from the target of creating a common currency by 2010.

(9 May 2009)     Read more…

Deutsche, HSBC and Caylon to manage Bahrain sukuk

Bahrain’s central bank has announced the appointment of Deutsche Bank, HSBC and Calyon as the lead managers for its sovereign Islamic bonds, just before the planned $500m five-year sukuk sale on May 27th.

(7 May 2009)     Read more…

Economists reject claims that Lebanon avoided financial crisis

It is inappropriate to think that Lebanon is not affected by the global financial crisis, considering that mounting public debt will complicate matters even further, said economist Marwan Iskandar. "We cannot get rid of the public debt in Lebanon without introducing the necessary reforms in governmental institutions such as reforms

in railway services, which employ 900 persons without really having railways in Lebanon," he said. 

(5 May 2009) Read more…

Saxo aims to double GCC profit

Danish online currency, derivative and equity trading provider Saxo Bank will inaugurate an office in the Dubai International Financial Centre this week to service Middle East clients. The group expects to double its profits from the region over the next three years.

(4 May 2009)     Read more…