Kuwait outlook raised to 'stable'

August 5, 2010--Moody's Investors Service said it has raised Kuwait's sovereign ratings outlook to stable after the country's parliament approved "long-awaited" economic legislation. "Since the formation of a new government" last year, "a number of important pieces of economic legislation have been passed,"

Tristan Cooper, Moody's head analyst for Middle East sovereigns, said in a statement. Moody's previously had a negative outlook on the OPEC oil producer.

Source: AME Info

DGCX July Trading Volumes Increase 37% to 156,242

156,242 contracts traded in July, valued at US $828 million, an increase of 37% on last year
Currency futures rise 311% year-on-year to reach 82,750 contracts in July
Year-to-date volumes stand at 1,090,645 contracts, up 46% on last year
July 5, 2010--Volumes on the Dubai Gold & Commodities Exchange (DGCX) recorded a 37% year-on-year increase in July, with 156,242 contracts traded, valued at US $828 million. Volumes were driven by the Exchange’s currency portfolio, and in particular the Indian Rupee futures contract, which accounted for 82,750 and 23,514 contracts respectively in July, a rise of 311% and 307% on a year ago.

Total year-to-date volumes in 2010 rose 46% compared with the previous year to reach 1.09 million contracts as at July end. Meanwhile, year-to-date average daily volumes increased 49% to 7,419 contracts.

The DGCX Indian Rupee futures contract saw its second straight record month in July with 23,514 contracts recorded; almost double the volume in June. Euro/Dollar and Sterling/Dollar rose 761% and 8% respectively year-on-year, with 44,830 and 9,487 contracts achieved. Particularly noteworthy was the performance of the recently introduced currency contracts, Swiss Franc, Canadian dollar and Australian dollar, all of which approximately doubled in volume from June. Gold and WTI crude oil futures fell 16% and 39 % in July compared to a year ago with trading volumes of 54,139 and 17,987 contracts.

Eric Hasham, Chief Executive Officer, DGCX, said, “The growth in July volumes is consistent with the sustained expansion in trading activity that DGCX has seen over the course of this year. Our new currency contracts, introduced in response to rising demand for FX products, have further enhanced the momentum. Over the rest of the year, DGCX will continue to work towards expanding trading opportunities in the growing asset classes of commodity and currency derivatives.”

Source: Dubai Gold & Commodities Exchange (DGCX)

Dubai Mercantile Exchange Achieves New Records In Open Interest And Physical Delivery

August 4, 2010- The Dubai Mercantile Exchange (DME) announced today that two new trading records were set in July 2010 as the exchange entered its fourth year of operations.

Total open interest in its flagship DME Oman Crude Oil Futures Contract (DME Oman) during July 2010 reached a new record of 20,160 contracts. Open interest is the total number of outstanding futures contracts held by market participants and is regarded as a leading performance indicator in the industry. Open interest in DME Oman has increased steadily in 2010, the latest figure exceeding the previous total open interest record of 19,867 contracts set in February 2010.

The DME also announced that the number of DME Oman contracts going to physical delivery has reached an all-time high, with a record 15.1 million barrels due for physical delivery in September 2010, surpassing the previous high of 14.1 million barrels set for delivery in August 2010.

DME Oman is the largest physically delivered crude oil futures contract in the world with an average of 12 million barrels per month delivered through the exchange in 2010. Since its launch in June 2007, more than 324 million barrels of Oman crude have been delivered through the DME.

The DME has reported a 130% increase in liquidity since 2008, averaging 2,930 lots per day since the start of 2010, equivalent to approximately 3 million barrels of oil traded daily.

Making the announcement, Thomas Leaver, Chief Executive Officer of the DME, commented: “Today’s announcement provides further compelling evidence of the market’s growing confidence in the DME Oman contract as a transparent and effective mechanism for pricing Middle East sour crude oil. These two new records clearly demonstrate the strengths of DME Oman, which is rooted firmly in the fundamentals of supply and demand.”

Source: Dubai Mercantile Exchange (DME)

Bahrain's financial services sector grows 4% in Q1 2010

August 4, 2010--Bahrain's financial services (FS) sector grew by 4% in the first quarter of 2010 - representing six% year-on-year growth - according to a report by the Kingdom's Central Informatics Organisation (CIO).

The Bulletin of Quarterly National Accounts also reports that the Kingdom's insurance industry grew 5% in the first three months of 2010 - or 15% year-on-year.

Source: AME Info

Islamic finance regulator to change scholar rules

August 3, 2010--Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) is set to overhaul rules governing Islamic finance scholars whose role and potential conflicts of interest have come under increased scrutiny, Reuters has reported.

The industry body plans to devise new standards to regulate shareholdings of Shari'ah scholars in financial institutions and advisory services provided by companies owned by scholars. AAOIFI also said it has approved two new accounting standards on financial reporting and investments in sukuk, or Islamic bonds.

Source: AME Info

Women in the Middle East controlled 22% or $0.7 trillion of the region's total assets under management AUM in 2009

August 2, 2010--Oil rich Saudi Arabia has a veritable treasure trove of human and financial capital in the form of its women, who control a large portion of the country's wealth and are sitting pretty on pure cash alone totalling a staggering $11.9bn. However, their true maximum potential lies untapped owing to rigid religious, social and political constraints over the years.

Saudi women could become a major growth driver for the country's diversification policy with the considerable wealth lying idle with them being channelled into the country's money supply, the Cayman Islands-based asset management firm Al Masah Capital said in its latest report: 'The Saudi Woman - A catalyst for change' which was released yesterday.