Middle East Business News Roundup: August 8-12, 2005

Strategic Insights -

HSBC has been named the best sub-custodian bank in the Middle East for 2005 by Global Finance magazine. The Saudi prince Alwaleed bin Talal has sold 41% of his investment in Canary Wharf, London's second financial district, and has retained 41m shares worth $101.8m. Almarai, a Saudi dairy producer, is to become a joint stock company with a total capital of $200m, while EFG-Hermes, an Egyptian investment bank, has reported a profit of $15.9m for H1 2005, an 1800% increase from the same period in 2004.

Key Takeaways:

  • HSBC has been named the best sub-custodian bank in the Middle East for 2005 by Global Finance magazine, with award criteria including customer relations, quality of service, competitive pricing, and knowledge of local regulations and practices.
  • Prince Alwaleed bin Talal has sold 41% of his investment in Canary Wharf, retaining 41m shares worth $101.8m, following the purchase of the estate by Morgan Stanley in May 2004.
  • Almarai, a Saudi dairy producer, is to become a joint stock company with a total capital of $200m, divided into 15m shares with a nominal price of SR50 each.
  • EFG-Hermes, an Egyptian investment bank, has reported a profit of $15.9m for H1 2005, representing an 1800% increase from the same period in 2004, with the bank having worked on several deals in recent months, including acting as book runners and IPO managers for the Sidi Kerir Petrochemicals IPO in June.
  • Three Qatari insurance companies are discussing a $1.6bn merger to help them compete with foreign firms entering the local market.
  • The Port of Salalah in Oman has awarded a $262m contract to a JV between Consolidated Contracting and Hani Archirodon for the construction of two berths and a 2.85km breakwater.
  • Abu Dhabi's non-oil trade grew 16.74% to $5.73bn in the first half of 2005, with a 75.15% growth in re-exports to $724m, imports up 11.42% to $4.59bn and exports 10.81% higher at $411m.
  • The UAE economy is projected to grow 6.2% to $92.7bn in 2005 on record high oil prices, but this is less than the 12.7% economic growth figure forecast by the government in July.
  • The UAE has asked the International Monetary Fund to help it develop a value added tax system, with the IMF also calling upon the UAE to introduce a property tax and extend corporate tax across all sectors.
  • Saudi Arabia may conclude a bilateral accord with the US by September, which would smooth the path for its entry into the World Trade Organisation.

Statistics:

  • HSBC named best sub-custodian bank in the Middle East for 2005 by Global Finance magazine.
  • Prince Alwaleed bin Talal sells 41% of his investment in Canary Wharf, retaining 41m shares worth $101.8m.
  • Almarai to become a joint stock company with a total capital of $200m.
  • EFG-Hermes reports a profit of $15.9m for H1 2005, an 1800% increase from the same period in 2004.
  • Three Qatari insurance companies discuss a $1.6bn merger.
  • The Port of Salalah in Oman awards a $262m contract to a JV between Consolidated Contracting and Hani Archirodon.
  • Abu Dhabi's non-oil trade grows 16.74% to $5.73bn in the first half of 2005.
  • UAE economy projected to grow 6.2% to $92.7bn in 2005 on record high oil prices.
  • UAE asks International Monetary Fund to help develop a value added tax system.

Sources:

  • Global Finance magazine
  • Bloomberg
  • Arab News
  • Reuters
  • The Daily Star
  • The Gulf News
  • ITW
  • Reuters
  • Reuters