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 As financial news quickly become outdated, we will now produce this newsletter fortnightly.

In this edition, we have coverage of the UAE pull-out from the GCC single currency making the much-discussed Gulf common currency even less likely. There is also discussion on the impact of that decision on the financial markets in the region. Also more optimistic news for regional banking as analysts see recovery on the horizon.

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

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:

Sharjah Isamic Bank wins the Sharjah Economic Excellence Award 2008

Mohammed Abdullah, CEO of Sharjah Islamic Bank, assured that winning the Sharjah Economic Excellence Award for the third time reflect quality performance, and the effective role played by the Bank in the financial sector in the Emirate of Sharjah, and this award will be added to the series of consecutive successes of SIB, which form a great incentive to continue and develop.

(27 May 2009) Read more�

Islamic finance sector �set to bounce back�

Islamic finance and banking have proved more resilient than conventional finance and both will bounce back, certainly by the beginning of next year. These issues were examined at the fifth World Islamic Funds and Capital Markets conference, under auspices of BMB, which is the Shari�a advisory partner.

(27 May 2009) Read more�

UAE �may use pullout as a negotiating tool�

The UAE’s decision to pull out of the GCC single currency plan is possibly just a negotiating tool by state. It may well return to the negotiating table in the future and come on board again, according to Deutsche Bank Group chief economist Professor Dr Norbert Walter.

(22 May 2009) Read more�

Kuwait sticks with FX union as UAE pulls out

Kuwait and other Gulf countries are still committed to the Gulf Arab monetary union plan, Kuwait�s finance minister told Reuters after the United Arab Emirates said it was withdrawing from the project. �There is no change in the stance of Kuwait.�

(21 May 2009) Read more�

Albaraka Unit Posts $19 mln Profit

Albaraka Turk Participation Bank, a subsidiary of Bahrain-based Albaraka Banking Group, posted a net profit of $18.82 million in the first quarter of the year, which was an increase of 13 per cent over the same period last year.

(20 May 2009) Read more�

UAE Pulls Out of GCC Single Currency

The UAE has announced that it will no longer be part of a region-wide monetary union, according to the official WAM news agency. ’The UAE has decided not to take part in the proposed monetary union agreement between the states of the Gulf Cooperation Council,’ the agency reported, citing a foreign ministry source.

(20 May 2009) Read more�

Kuwait Market Adds a Quarter per cent

Shares of Global Investment House (Global) jumped 9.62% at the Kuwait Stock Exchange (KSE) after announcing that that ’all ... GCC and Local equity mutual funds posted positive returns in April on the back of strong markets’ which reverses the negative trend that started in January.

(19 May 2009) Read more�

Al Jazira Bank gets ISO 9001 certification

Bank Al-Jazira (BAJ) has recorded a new achievement by obtaining the �ISO 9001� International Certificate of Quality in the areas of Trade Operations services and ATM services as the first fully Shari�ah compliant bank in the Kingdom of Saudi Arabia.

(18 May 2009) Read more�

BarCap Mideast head sees recovery signs emerging

Signs of a sustainable recovery are emerging globally, but it will take time for confidence to return to Gulf Arab economies and investors, Barclays Capital’s regional head said on Sunday.

Fergus McDonald, managing director and head of Barclays Capital’s investment banking division, Middle East and North Africa, said there were signs of a recovery in asset prices and credit spreads that pointed to a sustained recovery.

(17 May 2009) Read more�

Libya Looks at Taking Stake in Italy�s Enel

Libya’s Sovereign Wealth Fund may take a minority stake in Enel SpA as part of the Italian utility’s planned capital increase, according to Enel’s chief executive and Libya’s ambassador to Italy. In an interview, Enel CEO Fulvio Conti said the Libyan Investment Authority had recently expressed interest in taking a minority stake in the Italian utility.

The fund could either buy shares in the open market or subscribe to an �8 billion ($10.9 billion) capital increase that Enel is planning in order to cut its debt load.

(13 May 2009) Read more�

Events:

Nordic Infrastructure Forum � 19th & 20th October 2009 � Sheraton, Stockholm, Sweden

Issues which will be discussed: The role of the European Investment Bank, Financing options, The impact of the credit crisis, Risk, contractual and legal issues and others.

For more information, please click here

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MEC Studies

New Study on Sovereign Wealth Funds Available

Address

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Tel: 020 7591 4816
Fax: 020 7591 4801

e-mail : mec(at)meconsult.co.uk