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Dubai Mercantile Exchange Celebrates Third Anniversary
June 1, 2010--The Dubai Mercantile Exchange Limited (DME) marked its third anniversary today with the announcement that average daily trading of its flagship DME Oman Crude Oil Futures Contract (DME Oman) has increased by 130% since 2008, averaging 2,955 lots since the start of 2010, equivalent to around 3 million barrels of oil traded daily.
Marking the announcement, Chairman of the DME, Ahmad Sharaf said:
"Over the course of the past year, the DME has enjoyed sustained liquidity growth driven by the robust link to supply and demand fundamentals. We have experienced record levels of physical delivery and ever growing acceptance from producers and consumers of the fair value and transparency that DME Oman brings to the market. We take this opportunity to thank our shareholders and stakeholders for their support and look forward to continued growth in 2010".
DME Oman continues to demonstrate a strong link to the underlying Oman crude physical market and is the largest physically delivered crude oil futures contract in the world. The total number of DME Oman contracts traded since the Exchange launched in 2007 has exceeded 1,374,000 - equivalent to more than 1.3 billion barrels of oil.
Dubai Gold And Commodities Exchange Weekly Views-May 30, 2010
May 30, 2010--Commodities Overview
Commodities prices received a boost late last week amid a respite in investor concerns over financial markets and economic conditions. Euro zone sovereign debt problems remain, but the level of investor anxiety seen in previous weeks eased a bit. Relatively low commodities prices compared to previous weeks also attracted investor buying along with increased purchases from industrial users.
It should not be expected that commodities prices rise in a linear fashion going forward, however. Just as investor sentiment turned less pessimistic last week, helping to reverse rapidly declining equity values around the world, it could just as easily reverse course. Governments seem to be addressing problematic issues in a quick fashion, but longer term structural problems remain. Europe’s governmental financial troubles have been the focus over the past couple of months, and are likely to keep investor sentiment on edge. Economic conditions meanwhile are likely to remain shaky, but be positive overall. Gold and silver should benefit, especially in the near-term, as investors will be reluctant to substantially reduce their safe haven assets in the current environment.
Currencies Overview
Currency markets may begin to consolidate on a temporary basis in broad ranges this week. A resurgence in financial market volatility and investor fears, however, could quickly be sparked, pushing investors back toward safe haven currencies. Confidence in the euro remains lackluster, but the level of investor selling of the currency has eased. While the euro zone may be inclined to have a weaker currency so as to be more competitive in the global market place, it does not necessarily want to see the euro being devalued at such a rapid, strong pace. Investor sentiment toward the euro is likely to remain weak and the currency should be expected to face further selling pressure, but the decline could be extended over the next several months as opposed to what has been seen in May. As of 28 May the euro had fallen 7.7% month-to-date against the U.S. dollar, a much stronger decline than in previous months. A great deal of focus remains on European sovereign debt problems and on the steps that are being taken to address the financial ills that several euro zone member nations face.
Kuwait approves public shareholding firms
May 27, 2010--Kuwaiti legislators have approved plans to set up public shareholding firms to build electrical power and water desalination plants, as part of a privatisation drive in the country, Reuters has reported.
According to the new law, a 26% stake will be offered in an auction for each company formed. The government will own a 24% stake, and the remaining 50% will be offered to Kuwaiti investors.
Saudi investors look to bonds
May 27, 2010--Fahad al-Saif, director of investment banking at HSBC Saudi Arabia has said that investors in the kingdom are being drawn towards bonds due to volatile equity markets and low interest rates on deposits, Reuters has reported.
"Investors have only two asset classes - equities and deposits in banks. Equities are now volatile and interest rates are low, so they are increasingly turning to bonds, bringing debt allocation into their portfolios," he said.
Dubai Financial Market pays two thirds of Nasdaq Dubai acquisition
May 27, 2010--Dubai Financial Market has paid two thirds of its acquisition of Nasdaq Dubai and has transferred 80 million of its shares to Nasdaq OMX Group, Bloomberg has reported.
The remaining third will be paid to Borse Dubai concurrently with the completion of the consolidation between Dubai Financial Market and Nasdaq Dubai in due course, DFM said in a statement.
Dubai's economy to shrink in 2010, says IMF
May 25, 2010--The International Monetary Fund's director for Middle East and Central Asia said today that Dubai's economy will shrink about 0.5% this year, which would be the second straight year of contraction for the emirate, Bloomberg has reported.
Abu Dhabi, the largest emirate in the UAE, will grow 3.7% in 2010, Masood Ahmed told reporters in Dubai today.
DFM drops 4.64%
May 25, 2010--The Dubai Financial Market tumbled 4.64% today to 1,570, as only two stocks rose and 27 fell. Market heavyweight Emaar Properties dropped 7.82%, while fellow market leader Arabtec lost 7.11%.
International Financial Advisor had the day's biggest loss, falling by 10.00%.
Bahrain Financial Exchange Launch the Exchange Business Handbook
May 25, 2010--Bahrain Financial Exchange (BFX), the first multi-asset exchange in
the Middle East and North Africa (MENA) region, launched its official handbook leading up to
launch of the exchange later this year. The handbook, which aims to raise the market’s
knowledge and awareness of the financial exchange business, was launched at a media event
held today at the BFX offices located at the Bahrain Financial Harbor.
The event was patronized by Mr. Abdul Rahman Al Baker, Executive Director of the Central
Bank of Bahrain. Mr. Arshad Khan, Managing Director and Chief Executive Officer of the BFX,
introduced the media to the handbook. Entitled “The Exchange Business: An insight”, this guide
has been designed to provide a better understanding of financial exchange operations and
infrastructure. The publication represents a leading initiative by the BFX to facilitate market
understanding and development, and educate the emerging professionals working in the
financial sector.
Download the handbook-http://www.bfx.bh/downloads.html
Global Islamic fund assets level at $52bn in 2009, says Ernst and Young
May 24, 2010-The 4th annual Ernst and Young Islamic Funds and Investment Report (IFIR 2010) released today at the World Islamic Funds and Capital Markets Conference states that global Islamic fund assets stagnated at $52.3bn in 2009, remaining at almost the same level as the $51.4bn posted in 2008.
In contrast, the global conventional mutual fund assets under management (AuM) exhibited signs of recovery from their lows of $19 trillion in 2008, reaching $22 trillion in 2009.
Islamic Finance Set to be a $ 2 Trillion Industry Globally Within Five Years
May 24, 2010--Islamic Finance is all set to be a $ 2 trillion industry in the next half a decade according to Rushdi Siddiqui, Global Head of Islamic Finance, Thomson Reuters.
Speaking at a panel discussion at the MENASA Forum titled ‘The Challenges Ahead for Islamic Finance’, Siddiqui said: “It took the Islamic Finance industry 40 years to become a $ 1 trillion industry. It will take another two to five years to become a $ 2 trillion industry.”
However, there are many challenges that need to be overcome for the industry to realise its potential. Panellists said the lack of standardisation in the industry, the lack of consensus among Shari’ah scholars, the a poor “connectivity” between Islamic Finance institutions across the world, and the global shortage of experienced Islamic Finance professionals are some of the challenges facing the industry.
Apart from Siddiqui, panelists who participated in the discussion included Mutlaq H. Al-Morished, Executive Vice President of Corporate Finance, SABIC; and Harris Irfan, Head of Islamic Finance, Barclays Capital and Barclays Wealth. The session was moderated by Afaq Khan, CEO, Standard Chartered Saadiq.
Talking about the lack of standardisation and diversity of Sharia’h interpretation in the industry, Harris Irfan said it was becoming less of a challenge with the increasing convergence of standards. “I am 100 % convinced that we are seeing the convergence of opinion in Islamic Finance across countries, scholars and schools of thought.”
Earlier, introducing the discussion, Afaq Khan said that as with any fast growing industry, Islamic Finance also faces many challenges as the industry and its stakeholders try to keep pace with developments in human capital, access to Shariah guidance from scholars, changes in regulations aimed at allowing Islamic Finance to grow side by side with conventional finance and risk management both for Islamic Finance institutions and Islamic customers.
