Dubai-based Emirates Islamic Bank (EIB) yesterday said its third quarter profits jumped 207 per cent to Dh443 million against Dh144m for the same period last year. The Islamic bank said its income in the third quarter grew to Dh1.17 billion from Dh654m, registering a growth of 79 per cent. At the end of September, total assets increased 80 per cent to Dh25.28bn compared to Dh14bn at the third quarter of last year. Customers’ deposits grew by 81 per cent to Dh21.81bn, compared to Dh12bn in the third quarter last year. Shareholders’ equity reached Dh1.67bn at the end of the period, with an increase of 39 per cent compared to the third quarter of 2007 when it was Dh1.2bn. Meanwhile, earnings per share has risen to Dh0.47. Ibrahim Fayez Al Shamsi, CEO of Emirates Islamic Bank, said: « These results reflect the continuous success of strategic planning and robust execution of our business plans. » « We continue to set benchmarks on all fronts. One reflection of this reality is that EIB is still highest profit distribution on customers’ investment and saving accounts for almost three consecutive years despite the adverse developments in the global financial markets. « I firmly believe we will achieve a record breaking end of year results, Insha Allah. » The bank continued to launch innovative products and services. Among Emirates Islamic Bank’s key initiatives was the launch of Skywards credit card, chip-based credit cards, enhanced SME solutions, new technology implementation, payment windows, and launch of several new branches in the quarter. business24-7.ae
Dubai-based Danube Building Materials plans to invest Dh40 million in Bahrain’s steel market, the company has announced. Danube officials said the investment is part of the company’s plans to target the booming construction market in Bahrain. The GCC steel trade is expected to cross $200 billion (Dh735bn) in 2010, according to latest studies, as a result of the ever-growing construction sector across the GCC countries. The ‘Middle East Steel 2008 Report’ from Meed reported projects worth $2trn are planned or under way in the Gulf, with less than one quarter awarded. Rizwan Sajan, Chairman, Danube Building Materials, said: « Bahrain continues to be one of the key markets for steel in the Middle East, given its burgeoning steel imports to feed its huge consumption, and we believe the presence of a dedicated steel facility in the country will give us a definite advantage in supplying this market with our very high-quality products. « Through this investment, we expect to facilitate a steady supply of steel products to be used in the construction of current and future projects in the country, as well as in the region. » The steel market in Bahrain, which has been predominantly catered to by Saudi Arabia-based mills and Qasco-Qatar, has opened up recently. « As we intend our Bahrain steel manufacturing facility to be the premier source of steel and its products in the country, we are also investing considerably in product development and effective marketing plans. We are currently eyeing around Dh120m in annual revenues from our steel operations in Bahrain, » said Sajan. business24-7.ae
Dubai Investments, which owns stakes in more than 40 companies has maintained its earnings growth with net profit for the first nine months surging to record levels. Net profit for the year to September increased Dh1.67 billion from Dh1.07bn for the same period last year, an increase of 56 per cent. Total income for the period increased to Dh4.10bn from Dh2.59bn for the same period last year, an increase of 58 per cent. The net profit for the third quarter of 2008 increased to Dh635m from Dh268m for the third quarter of 2007, an increase of 137 per cent. The total income for the quarter increased to Dh1.44bn from Dh812m, an increase of 77 per cent. Total shareholders’ equity at September 30 was Dh7.38bn, representing a growth of 66 per cent over equity of Dh4.44m at September 30, 2007. This was achieved due to significant growth in net profit and increase in share capital on rights issue. The return on average equity achieved for the period was 27 per cent. « Our exceptional performance even during these difficult times of financial uncertainty reflects our ability to deliver results exceeding expectations on a sustainable basis, » said Khalid bin Kalban, Managing Director and CEO of Dubai Investments. Staff Writer business24-7.ae
Dubai World is eyeing once-in-a-lifetime bargains across the globe stemming from the financial crisis and remained bullish on its home market. Chairman Sultan Ahmed bin Sulayem said yesterday Dubai World, whose businesses range from shipping to real estate, saw opportunities that his firm « could never take advantage of again ». « Today there are things in the market worth a fraction of what they should be worth, » he said without specifying what sectors the firm was looking at. Gulf investors, including sovereign wealth funds, have indicated a willingness to buy into foreign assets, whose valuations have dropped drastically in the second half of the year, although many have said they would wait until the market bottoms. Sulayem, whose firm owns the world’s fourth-largest port operator DP World and is a stakeholder in MGM Miragek, said he expected the global financial crisis to bypass the Gulf. « So will the crisis be here in two years? No way, » he said, adding that Gulf economies were less affected than other regions by the turmoil. Dubai World is the holding company of Nakheel and Limitless, which in September dropped plans to buy British property firm Minerva. Nakheel said earlier this month that it had no need for external financing until 2010, but may scale back its huge land reclamation projects to curb costs and protect profits. « None of the projects we are building or have sold have been cancelled, » Sulayem said at a monthly bankers’ meeting. Sulayem reiterated the company had no problems financing projects Staff Writer business24-7.ae
This may come as a surprise to some, but the multi-billion dollar halal industry is not just about food. There are many consumer goods from cosmetics to healthcare products that all fall under the banner. While the customs behind halal meat are well known, the production of other products is less obvious. For example, some types of gelatine – found in many cosmetics and medicines – cannot be used by Muslims. And with the global Muslim population expected to rise to two billion by 2025, demand for halal products is set to soar. The global halal market is currently estimated to be worth $580 billion (Dh2.13 trillion) and is set to grow by seven per cent a year, according to Asia Inc. The halal food market alone is worth $30 million (Dh110bn) to the top five food producers, of which Nestle is the biggest with annual sales in excess of $3bn (Dh11bn). A spokesperson for the US-based company says: « The Middle East market is growing every year and as such it is becoming more important to us. We are also getting non-Muslim clients too as the halal principle continues to give confidence to consumers. » As a result of the growing industry, the second annual Halal World Expo (HWE) will be taking place in the UAE. Spread over three days from November 11 to 13 at the Abu Dhabi National Exhibition Centre, the HWE, which is being organised by IIR, will bring producers from around the world together to showcase their products as well as provide a venue to discuss such issues as standardisation of the industry. Exhibition Director Christine Weaver says: « It will give national industry leaders the chance to work together with professionals from Malaysia, South Africa, Brunei, Saudi Arabia and Indonesia, which have halal compliance systems in place. « It is often taken for granted that processed food and products available in supermarkets of an Islamic country like the UAE are fully halal compliant unless stated as being for ‘non Muslim’ consumption or use. » There will be a number of producers from Saudi Arabia and Brazil, the latter of which is one of the world’s biggest exporters of meat. The UAE, on the other hand, is the second largest importer behind Saudi Arabia and channels Dh550m worth of merchandise throughout the region every year. Local company Al Semman Farm will be selling its fresh and frozen quail eggs at the HWE and is using the event as a springboard for future growth. A company spokesperson says: « The expo gives us the opportunity to show our products and proves there is global focus to a growing demand for halal products worldwide. « With the dense concentration of Muslim consumers in the Middle East, there is huge potential for the halal industry to produce and distribute high quality, regulation certified products throughout the region. » But it is not just local companies that are keen to pass the message of halal to the rest of the world. Midamar Corporation is travelling from the United States to sell its meat products, with an emphasis on attracting restaurants and hotels. Its Director, Jalel Aossey, says it is an important event to help them convince people in this region that despite their products coming from North America, they are no less authentic than if they were produced locally. « It is a known fact that importers and consumers in the GCC region have significant doubt as to the true integrity of US-imported goods really being halal. But the Middle East market is our most strategically important region of the world, » he says. Is halal better then non-halal? For certain. « Halal is not only for our food but encompasses all aspects of our daily life and when one chooses to follow a halal lifestyle the world as they say is yours. » Weaver agrees: « Halal is a healthy option because the animals should be naturally reared, so it’s not just about how they are killed, but what they are fed too. » There is standardisation of the industry in some parts of the world, including Thailand, but Weaver believes there needs to be more awareness of halal products. « There is always the opportunity to educate. As we are surrounded by it in this part of the world we are unconsciously aware but in Europe that’s not always the case. « But as the Muslim population increases, so too will awareness of the halal industry, » she says. Although less widespread, the halal cosmetics industry is worth an estimated Dh2.06bn worldwide, and Weaver says young Muslim women are becoming more conscious of the cosmetics they use. Muslims also need to be careful with medicines as some pills are coated in gelatine made from pork products, while some cough mixtures contain alcohol. This also applies to perfumes, as many Western-made ones are made using alcohol. In light of this, some international brands have introduced halal products including toothpaste by Colgate-Palmolive and mascara and eye shadows by Australian firm Almaas. Meanwhile, a new section to this year’s HWE is the Islamic finance pavilion, which is an ever-growing market. « We have introduced the finance section because of demand not just in the Middle East but also elsewhere, » says Weaver. According to recent data, Shariah compliant banking is growing by 35 per cent a year, while Islamic finance products are valued in excess of $400bn a year, with Dow Jones launching an Islamic Market Family Index in 1999. « The Middle East market is important and products need to appeal to it as companies want business from here, » adds Weaver. Aimee Greaves business24-7.ae
Environmentally-minded residents who separate their rubbish and shop with reusable bags in their home countries may be disappointed when they move to the UAE. A co-ordinated, Emirates-wide program to collect and recycle separated domestic waste appears a distant ideal, while a lack of awareness may be thwarting many existing, well-intentioned recycling schemes. However, there are many schemes in place if you know where to look. Recycling bins are dotted across Dubai, and a municipal program allows residents to recycle their computers. An organisation called EnviroFone collected nearly 65,000 mobile phones last year and the Emirates Environment Group runs annual can collection drives. There are also office paper recycling schemes in several of the more populous emirates. Supermarkets are starting to provide separate bins for plastic bottles, paper, and cans, and service station operator Emarat recently installed ‘reverse vending machines’ which reward recyclers with raffle coupons at some of its outlets. But is enough effort put into recycling in the UAE or are existing programs fragmented and poorly-promoted? Do enough residents care anyway? business24-7.ae
Qatar downplayed the impact of the global credit crisis on its investment plans, saying in media reports that it would continue to boost investments at home and would not pull out of depressed global holdings. Qatar, the world’s biggest exporter of liquefied natural gas, has been investing windfall oil revenues in infrastructure and industry and snapping up stakes in international companies. Qatar Investment Authority (QIA), the country’s sovereign wealth fund, is among investors from which Credit Suisse Group was raising 10 billion Swiss francs (Dh31.7bn) – or about 12 per cent of its outstanding equity. Qatar is also set to boost its investment in British bank Barclays as part of a £2bn (Dh11.3bn) rescue package. Qatar’s prime minister downplayed the extent of damage from declining overseas stock markets on its economy and QIA, the Al Sharq newspaper reported. « We are looking at a long-term strategy in investment and not a limited or temporary strategy, » Sheikh Hamad bin Jassim Al Thani said. The global market turmoil has also battered Gulf Arab bourses, until recently largely seen as shielded from global declines, denting confidence and prompting Gulf governments to intervene. With the recent slide in oil prices, worries mounted that the financial crisis could cause a slowdown in the region’s economic growth. Oil has slumped more than 50 per cent since hitting an all-time high of $147 per barrel. Earlier this month, Qatar launched a $5.3bn plan to buy 10 per cent to 20 per cent of banks’ listed capital on the Doha bourse to mitigate the impact of the global financial crisis and boost investor morale. Sheikh Hamad said the Gulf state would push ahead with investment plans despite global economic turmoil and urged stock market investors to remain calm. « Qatar will not stop or slow down its various projects due to the global crisis, » Sheikh Hamad said, according to The Peninsula. Sheikh Hamad’s comments came as the country’s largest company by market value, Industries Qatar, halted steel exports due to a 45 per cent increase in local demand fuelled by an « unprecedented » construction boom. « The increased demand on the local market reflects the strength of the national economy and the dynamism of the construction sector, » Qatar Steel said yesterday. Qatar’s economy expanded at a great pace in the second quarter spurred by high energy prices, while the construction sector grew 19.8 per cent. The economy is set to grow 11.6 per cent in real terms this year, the fastest pace in the oil-exporting region, according to a Reuters poll in July. Sheikh Hamad said the stock market drop was « unjustified ». « All the listed companies have achieved huge profits which even exceeded those of last year… The downturn is due to psychological factors only, » he said. Reuters
Two Gulf Co-operation Council member states – Kuwait and Bahrain – yesterday said annual inflation eased as food and beverage prices dropped from the year earlier. Annual inflation in Kuwait eased slightly to 11.1 per cent in July from 11.35 per cent in June, official data showed yesterday. All Items Consumer Price Index advanced to 131.1 points on July 31 compared with 118 points a year earlier, government data obtained by Reuters showed. Kuwait is the only Gulf state that does not peg its dinar currency to the dollar. Bahrain’s annual inflation slowed in September to 3.2 per cent from 3.3 per cent, as food and beverage prices dropped from a year earlier. Prices gained one per cent in the month, the government-run Central Informatics Organisation said in a monthly statistical report on its website. Food, beverage and tobacco prices declined seven per cent compared with a year earlier, the agency said. Bahraini inflation averaged about one per cent for the past decade, central bank Governor Rasheed Al Maraj said. Inflation has exceeded 10 per cent in five of the six GCC states, including Qatar, Saudi Arabia and UAE, Kuwait and Oman as oil-fuelled economic growth created shortages of housing and services. Agencies
General Sheikh Mohammed bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, received at his Al Bateen palace yesterday Colombian Minister of Trade, Industry and Tourism, Luis Guigermo Plata Paez. Sheikh Mohammed stres-sed the importance of exchange visits by officials of the two friendly countries for first-hand information about economic development and to boost co-operation for mutual interest. Paez briefed on economic development regarding the open economy and reform policies adopted by Colombia. He conveyed his government’s desire to attract UAE investment. Agencies
A high-level Bush administration official says the battered US economy is open to more investment by Middle Eastern government-owned funds and other wealthy investors. Speaking to officials and reporters at the Dubai International Financial Centre during a five-country Gulf tour, Deputy US Treasury Secretary Robert Kimmitt says he is meeting with sovereign wealth funds, companies and other financial institutions in the region. The aim, he said Tuesday, is to emphasise “we’re open to investment”. Kimmitt said many potential investors he has met in the region have been looking at possible deals in the US over the past month. AP
