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Kuwait may exhaust all oil savings by 2017 at current spend rate
May 17, 2012--The International Monetary Fund (IMF) has said Kuwait will have exhausted its entire oil savings by 2017 if it keeps on spending money at the current rate and would not be able to save oil receipts into its future generations fund, Reuters has reported.
In addition to having to diversify its economy and improve its infrastructure and climate for investment, the Gulf country would also have to cut the fiscal deficit excluding oil and debt servicing by at least KD7bn ($25bn) by 2017 to ensure long-term fiscal sustainability. "The need of fiscal consolidation is larger and more urgent in a scenario of lower oil prices," the IMF added.
Iraqi bourse reflects recovery struggle
May 16, 2012--At the Baghdad headquarters of the Iraq stock exchange, Taha Abdulsalam broke off suddenly from the conversation and grabbed the walkie-talkie by his desk to call security.
Disturbed by the sound of loud chatter from the ground several floors below his open upstairs office window, he wanted – and received – reassurance that everything was fine.
Tadawul market ends (almost) even
May 16, 2012--Like the Dubai market, the Tadawul All-Share Index failed to sustain yesterday's rebound and slipped 0.06% to close at 7,099.9 points Wednesday, which marks the last trading day of the week in Riyadh.
Petrochemical leader Sabic continued to shed value, closing off half a percentage point at SR95.75. Two of the top gainers were insurers. Allianz Saudi Fransi Cooperative Insurance Company advanced the most (up 5.53%). Over the week, the Tadawul bourse lost 1.62%. The gauge's year-to-date gain shrank to 10.93%, down from 22.10% during the first quarter.
Etisalat shares stand firm, while Abu Dhabi market slips
May 16, 2012--The ADX Index fell by a quarter percentage point Wednesday, finishing at a four-month low at 2,467.21 points amid a global sell-off on the Eurozone's debt crisis.
Etisalat ended flat at Dhs8.73. Aldar Properties dived three percent. Abu Dhabi National Energy Company, known as Taqa, gained against the trend (up 1.69%). Around 53m stocks were traded, valued at Dhs65.5m.
Kuwaiti investors dump bank shares on contagion fears from Europe
May 16, 2012--The KSE Market Index plummeted 3.63% to 6,437.72 points. Markets were shaken worldwide as more traders pushed the panic button and sold shares in anticipation of a Greece's financial collapse.
Financials in particualr dragged the measure down, as the country's largest National Bank of Kuwait or NBK fell 1.85%. Ahli Bank of Kuwait dived 3.3% to KD0.570. Investors Holding Group posted the largest gain (up 13.20%). Oil prices hit a 7-month low Wednesday, weighing on the sentiment in Kuwait, because the northern Gulf state's federal budget relies by 95% on oil revenues.
FTSE NASDAQ Dubai UAE 20 Index dives two percent
May 16, 2012--Shares of global maritime port operator Dubai Ports (DP) dropped by 4.90% Wednesday, closing at $10.46, as global bourses were rocked once again by ongoing fears that Greece might be forced to leave the Eurozone.
News that bank customers withdrew Eur700m or $898m form their account fueled speculations of a bank run in Hellas might be imminent. In addtion, DP World has asked rating agency Standard and Poor's to withdraw its rating. The last S&P rating on DP World was 'BB/B' with outlook stable. DP World claimed that its peers were rated in a different way by S&P, thefore the agency's was of judging DPW were inappropriate. Due to an ongoing sell-off at local markets DFM and ADX in Dubai and Abu Dhabi, the FTSE NASDAQ Dubai UAE 20 Index closed off 2.03% at at 1573.00. This gauge measure the performance of the 20 liquid stocks listed on DFM, the Abu Dhabi Securities Exchange and NASDAQ Dubai. "It has been designed as a hedging and investment mechanism for GCC and international investors," the NASDAQ Dubai said.
Grexit-fears spoil Dubai market rebound
May 16, 2012--The DFM General index failed to sustain its tiny recovery from yesterday, closing 1.36% lower at 1,466.08 Wednesday.
Very negative input from Asian and European markets on Greece's possible farewell to the Eurozone weighed on the gauge. In addition, Asian investors dumped the Euro and fled into the greenback, pushing the U. S. dollar's external value up to a five-month high. Dubai Investment Company and Union Properties were the only advancing shares out of 27 traded stocks. Emaar fell 1.70%, while the DFM, the only Arab bourse being listed, dived four percent. Earlier in the day, the DFM said that its UAE listed companies recorded 100% compliance in disclosing their Q1 – 2012 financial results within the deadline of 45 days from the end of the period. Trading remained dull Wednesday, as 78m shares worth Dhs90.8m changed hands.
Egypt forecasts 4-4.5% growth in 2012/2013
May 16, 2012--Egypt's international cooperation minister Faiza Abul Naga has said the interim government expects 4% to 4.5% growth in the economy for the fiscal year that starts on July 1, Reuters has reported.
"The government aims to increase the growth rate to 4% to 4.5%, which is a bold rate given the current circumstances, by making larger investments," Abul Naga told reporters. Last March, a survey of 11 economists forecast year-on-year gross domestic product (GDP) will grow by 1.6% in the financial year starting on July 1, 2012, but will rise to 4% the following year.
UAE's first sukuk restructuring forecast
May 16, 2012--Bond traders are betting that the United Arab Emirates may soon see the country's first public restructuring of an Islamic bond.
The yield on the $920m sukuk from Dana Gas, the Sharjah-based energy company, has soared this week as the price sunk, highlighting investors’ concern over Dana’s ability to repay the debt.
Tapping oil reserves 5 years away in Lebanon
May 15, 2012--Lebanon's water and energy minister, Gebran Bassil has said tapping oil reserves is around five years away, despite the progress made over the last two years,
The Daily Star has reported. The country's gas reserves are located in deep waters, he said, urging the government to expedite legal and administrative processes leading to their excavation.
