4 novembre 2008 Par La Rando

UAE oil output 2.3 mln bpd after cut

The United Arab Emirates is pumping around 2.3 million barrels per day (bpd) of oil, down from 2.5 million, after cutting output in line with an OPEC decision and shutting some wells for maintenance, a state oil company official said. « Now we’re producing around 2.3 million bpd, » Abu Dhabi National Oil Company (ADNOC) deputy chief executive Abdulla Al-Suweidi told reporters at an energy conference in Abu Dhabi on Tuesday. « Before Opec, we were producing around 2.5 million. Production is also reduced due to maintenance. » Around 150,000 bpd of oil output was off-line for scheduled work at offshore fields, he said, adding that it would come back by the end of November. The world’s fifth-largest oil exporter planned to cut oil output by 150,000 to 200,000 barrels a day for 40 days in October and November for maintenance, an ADNOC official had told Reuters earlier this year. The Opec member pumped around 2.5 million bpd in October, a Reuters survey showed. [nL3648048] On Monday, UAE Oil Minister Mohammed al-Hamli said the country had kept its pledge to cut oil supplies in line with its Opec commitments, and had started reducing production along with other OPEC members. The country would cut by 134,000 bpd, in line with the group’s decision on October 24. The UAE’s current oil production capacity stood at 2.8 million bpd, Suweidi said. The country would take another 10 years to boost its oil capacity to 3.5 million bpd, Suweidi said. It had previously targeted 3.5 million bpd by 2012. Suweidi gave no reason for the delay but said that most of the 3.5 million bpd production capacity would be on-line by 2015. « We are going ahead with projects as planned, but whenever we can wait we will wait (because of high costs). Our plans are not affected by changes in the oil price. » ADNOC was pumping around 5 to 6 billion cubic feet per day of natural gas, he said. A new project to boost production by one billion cubic feet per day would be completed in 2013 to 2014, he said. The plan is known as the Integrated Gas Development Project. The Organization of the Petroleum Exporting Countries agreed at an emergency meeting last month to cut output by 1.5 million bpd, or about 5 per cent, starting from November, to stop a plunge in oil prices that have more than halved since July and lost 32 per cent in October alone. ADNOC notified term customers last week it would cut its contracted volumes for its main export grades by 5 to 15 per cent in December, and cut its Upper Zakum crude by 5 per cent starting from November. Reuters

3 novembre 2008 Par La Rando

UAE sees good investment opportunity in US

The UAE is eager to boost investment in the United States and sees good opportunities as the global financial crisis has cut the price of many companies, Foreign Trade Minister Sheikha Lubna bint Khalid Al Qasimi said in an interview. « A lot of these are great companies. There is nothing wrong with these companies… They have good returns, » Lubna said. « There would be no better time than now to actually take stock of some great investment opportunities and acquisitions of companies at a fraction of what they were worth months back, » she said. « Sometimes, people look at these like they are hard times. But for some people it’s an opportunity. » She was echoing comments that Sultan Ahmed bin Sulayem, Chairman of the Dubai Government-owned investor Dubai World, made on Thursday. « Today there are things in the market worth a fraction of what they should be worth, » Sulayem said. Dubai World’s assets include Dubai Ports World, which was at the centre of a political firestorm two years ago when US lawmakers discovered the Arab company had acquired US port operations as part of its purchase of British company P&O. To calm the furore, DPW sold the port assets to American International Group, the insurance giant which went to the brink of collapse this year and is now nearly 80 per cent US Government owned. The US Federal Reserve stepped in last month to rescue the insurer with an $85 billion (Dh312bn) credit facility and subsequently provided an additional $37.8 bn. « So, who now actually owns the port operations in New York, New Jersey, Philadelphia, Baltimore, New Orleans and Miami? Send me an email when you know, » she said with a smile. The UAE has no hard feelings over the controversy, which at least « made us famous », she said. « For us, it was a business deal that went wrong because of the political climate at the time, » she said. Agencies

3 novembre 2008 Par La Rando

Dubai apartments selling for 20% more

Sales prices of apartments in Dubai rose 20 per cent as rentals registered a marginal jump of four per cent in the third quarter of 2008 compared to the previous quarter, according to a report. Unit prices in Discovery Gardens registered a growth of 39 per cent, while International City rose 31 per cent due to limited new supply and good development progress being made. Both developments benefited from considerably low launch prices, which made the units affordable and attractive to investors and owner-occupiers, Asteco, a Dubai-based property management company, said in a third-quarter report on Dubai property market. Apartment prices in Business Bay and Dubailand increased by 29 per cent with Uptown MotorCity nearing completion in the latter master development. Speaking to Emirates Business, Asteco Managing Director Andrew Chambers said there is still demand for residential properties in Dubai but investors are taking a more cautious approach. “The supply and demand gap still exits in the emirate, however, buyers are taking their own time in making decisions,” he said. Meanwhile, overall apartment rental rates rose by four per cent compared to the last quarter. International City and Jumeirah Lake Towers recorded increases of 13 and 11 per cent respectively, due to their affordability level. “Generally, rental rates are stabilising as more supply enters the market, especially at the high-end sector. However, there is still room for growth in the low- to medium-segment because of high demand, little availability and limited supply in the short-medium term,” the report said. Sale prices of villas also rose by 24 per cent over the last quarter. Although the demand-supply gap narrowed over the last couple of years, Asteco said there was high preference for villas and townhouses. Villa prices in Downtown Burj Dubai registered an increase of 61 per cent. Prices in The Palm Jumeirah, The Palm Jebel Ali and Emirates Hills jumped 42, 39 and 35 per cent respectively, as they attracted interest high net-worth individuals who are immune to the current global financial situation. The Meadows witnessed an increase of 38 per cent as a result of little movement of tenants, no additional supply and villas being traded as a finished product, consequently commanding a higher premium. However, villa rental rates continued to rise but at a slower rate of 11 per cent, compared to the previous quarter. The villa rental market has begun to stabilise as more people opt to buy villas or townhouses due to high rents. Additional units are being handed over in The Palm Jumeirah, Al Barsha and Arabian Ranches. The highest increase was reported in Downtown Burj Dubai with 25 per cent. This is attributed to limited supply of villas in the area. Office rental rates increase Office rental rates rose 10 per cent quarter-on-quarter as Deira reported a 40-per cent growth due to its proximity to the Dubai metro, high demand from banks and little availability. Several banks, which have recently rented office space in Deira, are confident the area will continue to boom due to RTA’s plans to provide better connectivity for future metro users, consequently solving traffic congestion and parking issues, Asteco said. Rents in Dubai Investment Park, a development predominantly attracting back office operations, have increased by 11 per cent due to recent handovers of office space and comparatively affordable rates. While there is still a shortage of office space, rents are expected to reach equilibrium by 2009/2010 as more supply enters the market. Sales prices in office market rose 17 per cent over the previous quarter due to several projects nearing completion or in the process of being handed over. Dubai Silicon Oasis and Downtown Jebel Ali lead with a 33-per cent growth over the last three months. In general, office sales prices in Dubai range from Dh1,100 to Dh8,000 per sqft and average at Dh2,500. Parag Deulgaonkar business24-7.ae

1 novembre 2008 Par La Rando

DSI becomes a member of Build Safe Dubai

Drake & Scull International (DSI), a service provider of mechanical, electrical and plumbing contracting and civil contracting in the UAE, became the latest company to join Build Safe Dubai (BSD) as part of its ongoing commitment to maintaining the highest standards of health, safety and welfare. BSD is a not-for-profit organisation with members in the construction industry who share a common cause with regard to workers’ welfare and safety. Earlier this month, DSI also joined the Emirates Green Building Council (EGBC) – a not-for-profit organisation with the goal of advancing green building principles for protecting environment and ensuring sustainability in the Emirates. BSD aims to promote an agreed minimum of health and safety standards for the benefit of all workers in the construction industry in Dubai and the UAE. It seeks to communicate best practices and the importance of construction safety to all project stakeholders. Khaldoun Rachid Tabari, Vice-Chairman and CEO of DSI, said: « Since the inception of DSI in the UAE in 1966, implementing the highest standards of health, safety and welfare has always been an important management responsibility that is on a par with production and profitability. This commitment enabled us to complete more than 27 million man-hours on our on-going projects without one serious injury or fatality. » Among DSI’s projects are the construction and maintenance of the district cooling plant and network at Jumeirah Beach Residence, the Dubai Festival City, Saudi Iron and Steel Company – Hadeed, and more around the GCC. The company has experienced strong growth in recent years. In fact, in 2007 revenues increased by 16.7 per cent from the previous year and the company saw an increase of 38.1 per cent in gross profits compared to the previous year. Year-on-year growth in net profits, excluding the minority share, is 37.6 per cent. business24-7.ae

1 novembre 2008 Par La Rando

Kuwait Bank will buy equity in Gulf Bank

Kuwait Government agreed to buy an equity stake in Gulf Bank, the country’s second-largest lender by assets, after the bank announced unspecified losses from derivative trading last week, Kuwait news agency Kuna reported, citing Finance Minister Mustafa Al Shimali. The government, which already guaranteed customers’ deposits with the bank, will « contribute to the bank’s capital » if shareholders don’t fully provide necessary cover, the public sector news agency quoted Al Shimali as saying late yesterday. The measure is aimed at supporting the financial position of the bank and maintain its credit rating, Al Shimali said. Gulf Bank is considering a capital increase or even a merger to shore up its business. The central bank has appointed a treasury supervisor for Kuwait’s fifth-largest bank by market value and guaranteed deposits, as the global financial turmoil spilled over into the oil exporting region. Gulf Bank, which has posted two straight quarterly profit declines, also said Chairman Bassam Al Ghanim has resigned and been replaced by his brother Kutayba Al Ghanim. The new chairman declined to say how much the bank had lost from the euro derivatives deals, but told reporters it had stopped all such dealings. « The bank plans to continue [business] as normal… we have more liquidity than we need… to cover everybody without the central bank’s guarantees, » he said. He said Gulf Bank, which is active only in Kuwait, might increase its capital or seek support from its major shareholders. Ghanim said Gulf Bank might even consider a merger. « I am willing to look at every offer and every possibility that would make the banking system stronger in Kuwait, » Ghanim said, adding that there were no current talks. Asked whether a merger with local market leader National Bank of Kuwait (NBK) was possible, he said: « If NBK wants to merge with us, that’s news to me. But it’s good news. I would not reject that. » Banks across the Gulf have been hit by the global credit crunch, hampering their ability to finance multi-billion-dollar infrastructure and industry projects launched during the oil-fuelled economic boom. Gulf Bank said board member Abdul-Kareem Al Saeed had also resigned. Kuwait’s parliament yesterday voted in favour of a law guaranteeing bank deposits in all local and foreign banks operating in the emirate. Lawmakers voted 50 to seven in favour of the law, which will guarantee the approximately 23 billion dinars (Dh315.6bn) of deposits, said Mohammed Al Saqer, a member of Kuwait’s elected assembly. Agencies

31 octobre 2008 Par La Rando

The beauty of Ras Al Khaimah tourism drive

Ras Al Khaimah is promoting itself as an authentic and nature-oriented destination among German-speaking tourists and has found a novel route to do so by offering to host a Miss Germany 2009 Camp from January 28 to February 7. The finals will be held in Germany on February 14. « Our main focus is to raise the profile of Ras Al Khaimah as a destination within the UAE across German and German-speaking markets and by doing this we anticipate the numbers of visitors will rise, » said Hilary McCormack, manager of RAK Tourism. « German tourists love nature and the Arabian culture and Ras Al Khaimah has a lot to offer. » McCormack said 40 per cent of RAK’s visitors came from German-speaking areas. There were 65,000 tourists in 2007 and she expects a consecutive 20 per cent growth rate in their number for 2008 and 2009. « Having Miss Germany here, who has visited Ras Al Khaimah and the UAE before, will give a boost to the already emerging tourism market that the emirate can offer, » said McCormack. « RAK Investment Authority (Rakia) and RAK Tourism learnt that Miss Germany Corporation were looking for a destination in the UAE that had something new like the Hamra Fort, » said McCormack. She said German-speaking companies are finding promising business opportunities in Ras Al Khaimah. There are 20 registered German companies that operate in in the emirate mainly in manufacturing, paints and boat interior design. More will be expected, » said Serge H Guillaume, Rakia Executive Director. Rakia also expects to attract companies from European countries such as Spain and Italy. « Such activities promote tourism, but this also gives opportunity for expanding business and industries, » said Guillaume. « The person who represents the Miss Germany Corporation had been to Ras Al Khaimah a number of times. He knew the emirate and sold the idea to his colleagues in Germany and communications started between us and them. » Ralf Klemmer, director of Miss Germany Corporation, said they were excited and eager as « we are to enjoy the hospitality, warmth and the natural authentic beauty » of Ras Al Khaimah. « I came several times to RAK and realised this place has much authentic and natural potential and opportunities in promoting business and tourism, » said Ingo Dubinski, General Manager of Berlin-based Crown Production Company. The beauty camp in Ras Al Khaimah will have 23 participants that include Miss Germany 2008 Kim Voigt and 22 finalists that Miss Germany Corporation selects by organising 250 events across the country. « Beside the current Miss Germany, the other 22 ladies are selected from 16 districts, five regions and two companies’ winners, » said Ines Kuba, Miss Germany 1992. Beside the 23 ladies, the camp will have 37 staff of doctors, security and major TV stations to cover the camp for German media. The Miss Germany Camp takes place in a different country as a preparation for the competition in Germany. It was done in Egypt, Spain, but this time in Ras Al Khaimah in the UAE where German-speaking people will get to know about this place in the media specially it has nature, sun with authenticity, » added Kuba. « This is not my first time to RAK and the last time I was here was in August, » said Miss Germany 2008 Kim-Valerie Voigt. « We will be doing the whole camp in RAK prior to the finals. The event will be circulated in the German media where people from my country will get to know this place better. » The UAE is the second Arab country Voigt visits after Egypt. Voigt, who is from the northern German city of Hanover, spent six months in a school in the state of Indiana in the US. She kept the door open for possibilities to work one day in the UAE, « but I have to finish my university studies, then I may study something in business management. I do not know yet. Let’s see, » she added. Rami Eljundi business24-7.ae

31 octobre 2008 Par La Rando

Emirates Islamic Bank’s quarterly profits jump 207%

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

31 octobre 2008 Par La Rando

Danube to invest Dh40m in Bahrain

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

31 octobre 2008 Par La Rando

Dubai Investments net profit rises 56%

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

31 octobre 2008 Par La Rando

Dubai World eyes up bargains

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