The MENA Newsletter gives you a quick but incisive look at the events taking place in the business world in the Middle East. It is classified into sections such as Macro economic news, Government regulations, and Liquidity events amongst others. We aim to give you a broad overview of the factors influencing the MENA markets and an understanding of the newsworthy events across countries, sectors and companies in the region. Your feedback is appreciated as we are always looking for ways to improve our Newsletter and enhance your experience. You can write to us at newsletter@tresvista.com

1. Issue No. 2.15
MENA WEEKLY NEWS
Week of November 6, 2009 – November 12, 2009
MENA MARKETS
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MACRO ECONOMIC NEWS
1. Macro Economic Saudi Arabia
News ▲ Saudi Arabia has announced that it will provide USD 380.0 million loan to Pakistan, according to an agreement between
2. Government Pakistan's Economic Affairs Division and a Saudi Fund.
Regulations
3. Sector News ▲ Saudi Arabia’s economy is to grow by 4.0% in 2010, while it is projected to register a contraction of 0.9% in 2009. According
4. Company News to National Commercial Bank, Non-oil GDP growth is projected at 3.3% in 2009 and is expected to improve marginally to
5. Liquidity 4.2% in 2010.
▲ The value of ongoing and planned projects in Saudi Arabia is estimated at USD 586.0 billion, representing around 128.0% of
its GDP.
Market Buzz… ▼ Saudi Arabia could face inflationary pressures during Q4 2009, mostly due to seasonal factors according to the Saudi Arabian
Monetary Agency (SAMA). The inflation grew by 4.4% in September 2009, up from 4.1% seen in August 2009, which was
lowest rate in more than two years, due to a decline in home rents.
- Saudi private sector investments in the U.S. last year reached USD 426.7 billion, according to the chairman of the Jeddah
Chamber of Commerce and Industry (JCCI).
Kuwait
▲ Kuwait recorded a budget surplus of USD 17.5 billion as of September 2009 due to higher than forecasted oil revenue. The
total revenues stood at USD 28.9 billion at the end of September 2009. Oil revenues stood at USD 27.1 billion and spending
amounted to USD 11.3 billion.
UAE
▲ UAE's economy will grow 1.5% in 2009 and rebound further in 2010 according to the Dubai International Financial Centre
(DIFC).
▲ GDP is expected to post a growth rate of 6.1% in Q3 2009, against 5.4% in Q2 2009 according to High Planning Commission
(HCP). This is due to a slight pickup in foreign demand and a similar upturn in non-agricultural activities.
▲ Abu Dhabi is targeting FDI of 23.0% of GDP by 2030 by attracting more foreign direct investment (FDI) and lift non-oil
exports to boost their contribution to the emirate's GDP. FDI currently accounts for 14.0% of the GDP.
- Net treasury debt increased by 15.1% to USD 21.8 billion in September 2009.
Egypt
- The Central Bank of Egypt said annual inflation rose to 6.5% in October 2009 from 6.3% in September 2009.
Oman
▼ Oman's revenues declined by 27.0% in the first eight months of the year to USD 11.0 billion compared with USD 15.0 billion
in the same period last year, mainly due to a decline in oil earnings. Oman's total expenditure through the eight-month period
was USD 11.2 billion, leaving a USD 130.0 million deficit in budget, compared to a surplus of over USD 3.9 billion a year
earlier.
- Oman's annual inflation fell to 1.3% in September 2009.
Jordan
▲ Income and sales tax revenue rose to USD 3.0 billion for 10 months ended October 2009 compared with USD 2.7 billion
during the same period in 2008. Revenues in October 2009 amounted to USD 255.9 million compared with USD 214.6 million
in October 2008.
Bahrain
▼ Bahrain's domestic public debt increased by USD 437.6 million in Q3 2009 to reach USD 3.1 billion.
Qatar
…Global issuance of
▼ Qatar’s economy declined by 29.7% in June 2009 compared to June 2008 mainly due to the falling hydrocarbon prices.
Islamic bonds, or
Sukuk, has risen 40.0% GOVERNMENT REGULATIONS
in the first 10 months of UAE
the year, helped by - According to the new corporate governance regulations to come into effect in May 2010, company board members will be
sovereign issues that prohibited from engaging in significant financial dealings with firms in which they have a controlling interest. The new rules
will provide benchmark define a significant financial transaction as that which exceeds 5.0% of the paid capital of the company served by the board
pricing to companies member, or AED 5.0 million (USD 1.4 million), whichever is less.
still hesitant to launch...
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2. Issue No. 2.15
MENA WEEKLY NEWS
Week of November 6, 2009 – November 12, 2009
SECTOR NEWS
…UAE consumers Saudi Arabia
remain the most ▲ The Government will shortly finalize plans to build the largest ever gas plant in Saudi Arabia to supply utilities and some
optimistic in the Middle industries. The new gas plant is expected to process more than 1.8 billion cubic feet per day (cfpd) of gas.
East and Asia Pacific
region, posting 102 Kuwait
index points higher than ▲ Total real estate investments shot up to USD 531.1 million in Q3 2009.
the global average of ▼ Kuwait ends naphtha deals with Japan buyers for a period of 1 year leaving end users in Japan with no term supply for the first
86, according to the time. Mitsubishi Chemical Corp., Mitsui Chemicals Inc., Idemitsu Kosan Co., and Maruzen Petrochemical Co. ‫ ــ‬along
latest Nielsen Consumer with traders Marubeni and Petro Diamond held a total of at least 575,000.0 tons of full range naphtha for the period.
Confidence Index,
which measures ▼ Kuwait's bourse house has warned it would suspend the trading of 25 companies if they fail to publish their third quarter
consumer sentiments results by November 16, 2009. Commercial Bank of Kuwait, Burgan Bank, and Aref Investment Group are among the
worldwide… firms whose stocks are facing a possible suspension.
UAE
▲ The travel and tourism industry is expected to directly contribute 5.4%, or USD 12.9 billion, to the UAE's GDP in 2009,
according to the World Travel and Tourism Council (WTTC).
▲ Abu Dhabi Terminals (ADT) handled in excess of 436,000.0 containers for the ten months ended October 2009, an increase of
42.0% compared to same period in 2008.
▲ The UAE civil building construction market has 1,845 ongoing projects worth USD 657.0 billion according to research firm
Proleads.
▼ About 17,000 new companies have been registered during the period of January-July 2009, against 17,345 in the same period
last year which representing a decline of 1.0%.
▼ Mergers and acquisitions (M&A) activity involving UAE firms declined by 29.0% to USD 14.8 billion for ten months ended
October 2009 compared to the same period in 2008.
Oman
▲ Oman’s oil and gas production rose by 10.1% to 158.3 million barrels during the first eight months of 2009. The total
production of crude oil and condensates rose by 6.5% to 194.9 million barrels by the end of August 2009.
Jordan
▲ Jordanian investments in the banking sector as of October 2009 amounted to USD 6.8 billion representing 42.2% of total
investments. At USD 8.2 billion, Arab investments in the sector accounted for 51.4% while foreign investors had a 6.0% stake
with USD 1.0 billion.
▲ Jordanian investments in the insurance sector amounted to USD 477.6 million for a 75.0% equity while Arabs held USD 112.3
million for a 17.6 % stake and foreign investors possessed USD 45.5 million or 7.3%.
▲ The contribution of Jordanian investors in the industrial sector reached USD 4.0 billion representing 48.3% of total
investments, Arab investors held USD 1.7 billion accounting for 21.8% and foreign investor possessed USD 2.4 billion for
29.7%.
COMPANY NEWS
Saudi Arabia
▲ Rabigh Refining and Petrochemical Company announced that it will launch the USD 10.0 billion refinery and chemicals
complex at Rabigh on the Red Sea, which will add 2.4 million tons of petrochemicals to the company's annual production
capacity.
▲ The Islamic Development Bank (IDB) has decided to double the growth of its operation plan from 15.0% to 30.0% for the
period 2009-11.
▲ Al Oula Mawarid, a subsidiary of Al Oula Real Estate Development Co., plans an industrial real estate project in the
Kingdom's eastern region. The project, which will cost more than USD 133.3 million, will involve the construction of an
industrial city on an area of 1.3 million sq. m.
▲ Almarai Company will invest USD 533.3 million to expand the business of Hail Agricultural Development Company
(Hadco), a company it acquired recently.
▲ Saudi Aramco plans to raise its daily gas supplies by 30.0% within 5 years to 8.0 billion cubic feet, its CEO said.
▲ Saudi Aramco is expected to bring online a new 90,000.0 barrels per day clean diesel unit at its joint-venture refinery with
Royal Dutch Shell by December 2010.
▲ Lulu Hypermarket, the retail arm of UAE based Lulu Group, will open its first hypermarket in Saudi Arabia at King Fahd
Street, Alkhobar and is worth USD 37.3 million.
▲ Saudi Electricity Company announced that it plans to invest USD 10.1 billion in projects during the next 3 years to boost
electricity production in the Kingdom.
▲ Saudi Telecom announced that its 25.0% stake in Maxis Communications Bhd will drop to 17.5% as a result of Maxis’s IPO.
▲ Ibn Hayyan Plastic Products Company (TAYF), an affiliate of Saudi Basic Industries Corporation (SABIC) and Albemarle
Corporation, has signed an agreement to form a 50-50 joint venture, Saudi Organometallic Chemicals Company (SOCC), to
build a world-scale organometallics production facility in Jubail.
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3. Issue No. 2.15
MENA WEEKLY NEWS
Week of November 6, 2009 – November 12, 2009
▲ Turkey-based TAV Airports Holding signed a 50-50 joint venture agreement with Saudi Arabia-based Al Rajhi Holding
…Gulf Arab economies Group to maintain and manage various airports on a BOT (Build-Operate-Transfer) basis.
will grow 5.2% by 2010 ▲ The board of directors of Al Jazeira Services decided to acquire 57.0% stake in Al Amana Building Materials Co.
according to DIFC…
- Saudi Aramco has awarded a five-year integrated turnkey drilling contract to Halliburton Corporation to develop wells in
the world's largest oil field, South Ghawar
- U.S. based Raytheon has been awarded a USD 59.2 million deal to manufacture and install 21 civil aviation radar
surveillance systems for Saudi Arabia's General Authority of Civil Aviation.
- Saudi Electricity awards Riyadh transmission deal worth USD 64.0 million to a consortium of KEC and Al-Sharif Group.
- Saudi Electricity Company has awarded a USD 120.0 million project to ABB for power generation at the first women
university in the Kingdom.
Kuwait
▲ Wataniya Palestine Mobile will invest USD 700.0 million over a period of 10 years to develop and manage the network.
▲ The Combined Group Contracting Company announced that it has submitted the lowest bid in a 2-year USD 97.6 million
tender offer from the Ministry of Public Works to build and maintain intersections on the main road.
▼ Zain expects the global financial crisis and currency market turmoil to cut USD 1.0 billion from its forecast revenue of USD 9.0
billion, its chief executive said. Zain also held talks to buy Syriatel, the top mobile company in Syria, but the plans have been
put on hold.
UAE
▲ Emirates Aluminum (Emal’s) USD 5.7 billion project will begin production in December 2009.
▲ Etisalat plans to spend USD 1.4 billion to boost its fibre optic coverage. The company plans to boost its fibre optics coverage to
90.0% from the current 60.0% by 2011.
▲ Emirates Airlines will increase its purchase of Airbus A380 aircraft beyond the 58 super-jumbos it has booked so far.
▲ National Marine Dredging Co. (NMDC) has won USD 0.6 billion contract by Zakum Development Co. to create 4 artificial
islands offshore Abu Dhabi Island.
- Shuaa plans to sell its shareholdings in a number of associates, according to a company document. Shuaa has appointed
Bain & Company to help formulate future strategy.
Egypt
▲ Aquatech has been awarded a USD 36.0 million contract to design and supply a seawater desalination system for the Abu Qir
Thermal Power Plant in Egypt.
▲ Palm Hills Development said that the company has formed a joint venture with contractor Hassan Allam Sons to develop
238,560.0 sq. m of land. The venture's first project will be Park View, a 97,661.0 sq. m residential development in New Cairo.
▲ Pioneers Holding Company, an Egyptian brokerage company and local investment bank Beltone Financial Holding announced
that their boards approved plans to merge by issuing 100.0 million shares through a share swap. The Pioneers Holding
Company will have a 17.0% stake in the new merged entity and will create a company with assets worth USD 5.4 billion under
management.
Oman
▲ Sembcorp Utilities has been selected by the government to develop, finance, own, and operate the estimated USD 1.0 billion
Independent Water and Power Project (IWPP) planned at Taqah.
▲ Bank Muscat has signed a Financial Advisory mandate agreement with Oswal Group Global to act as the exclusive financial
Adviser for its USD 350.0 million caustic soda project in Salalah.
▼ Bank Muscat might write down a significant portion of its USD 61.0 million stake in Pakistan’s Silkbank in Q4 2009.
Silkbank (35.0% holding) is planning for a rights issue but the Bank may not participate.
- Salalah power project to complete financing on November 14, 2009 out of which Standard Chartered will be underwriting
round USD 400.0 million of the USD 1.0 billion project.
Bahrain
▲ Instrata Capital has joined a leading consortium of investors in the Al Dur Independent Water and Power Project, with an
investment of USD 26.4 million.
▲ Investcorp has been appointed to manage two US hedge fund mandates worth a combined USD 310.0 million
▼ Gulf Finance House announced that it has signed an agreement to sell a 10.0% stake out of its 15.0% stake in QInvest to
Qatar Islamic Bank at a total price of USD 50.0 million and incurred USD 7.0 million in losses.
Qatar
▲ Qatar National Bank announced the launch of QNB Banque Privée (Suisse), a full private banking subsidiary of the QNB
Group based in Geneva, Switzerland.
▲ Qatar Petroleum International signed an agreement with Shell Eastern Petroleum, under which it will buy stakes in two
Shell Chemicals joint ventures in Singapore to be completed by December 2009.
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4. Issue No. 2.15
MENA WEEKLY NEWS
Week of November 6, 2009 – November 12, 2009
LIQUIDITY
Saudi Arabia
- Saudi Arabia's Capital Market Authority (CMA) said Sunday it has approved Zamil Industrial Investment Co.'s plan to
raise its capital by USD 40.0 million.
Kuwait
- Kuwait International Bank (KIB) increased its capital by 45.0% by issuing new shares. The shares will be issued at a
nominal price of 100.00 fils with a premium of 70.00 fils each.
- Investment Dar is close to a deal to restructure about USD 3.5 billion of debt. The company defaulted on USD 100.0 million
Sukuk issue and a nine-member committee was set up to facilitate debt restructuring with creditors.
- Kuwait's Commercial Real Estate Co. (Al Tijaria) secured USD 221.0 million 5.0 year credit facility from Commercial Bank
of Kuwait to repay Shariah-compliant loans.
- Kuwait’s money supply growth (M2) grew by 15.7% to USD 87.1 billion in October 2009 compared to September 2009. M1
rose 6.3% in October 2009 to USD 17.3 billion compared to October 2008.
- Banks' total claims on the private sector, which also include their local investments, grew by 7.1% in the year to October 2009
to USD 94.8 billion.
UAE
- Abu Dhabi National Energy Co. (TAQA) is looking to rise up to USD 716.8 million in a Canadian bond offering in Q1 2010 to
refinance a credit facility, and will continue to focus on consolidating its portfolio and control costs
- The money supply growth rate stood weakened at 6.1% in September 2009, compared to 12.3% in September 2008 and 6.4%
in August 2009. The growth rate in commercial banks loans decreased to 13.1% in September 2009 compared to September
2008 and 26.0% in September 2007.
- Abu Dhabi National Hotels will complete an USD 408.0 million fundraising deal before the end of November. National Bank
of Abu Dhabi (NBAD) is acting as lead arranger on the deal and will also be a lender, along with other local banks, United
National Bank (UNB) and Abu Dhabi Commercial Bank (ADCB).
Egypt
- Sixth of October for Development and Investment Company (SODIC) said it will increase its capital by EGP 550.0 million
(USD 101.4 million) by launching a rights issue to shareholders at EGP 70.00 per share (USD 12.9 per share).
- GB Auto will issue EGP 15.0 million non-convertible bonds with a par value of EGP 100.00 each (USD 18.40 each).
Bahrain
- Gulf Finance House is in talks to launch a convertible Murabaha financing valued at USD 100.0 million.
- Gulf International Bank has raised USD 533.0 million through a three times oversubscribed bond issue which was launched
in Saudi Arabia. The bond was priced at 127.5 basis points over Saudi interbank offered rate.
- Gulf Finance House announced that it has received the approval of the Central Bank of Bahrain to increase its capital by USD
300.0 million to USD 500.0 million through a rights issue.
- Al Salam Bank shareholders gave its board the go-ahead to enter the market to raise money through the issue of Sukuk.
Qatar
- The Commercial Bank of Qatar announced that it will begin a global roadshow in the United States to test the market for a
potential bond sale worth at least USD 500.0 million.
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