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									                                                                                                                                                                                            UAE October PMI hits highest level in survey’s 15-month history
                                                                                                                                                                                                CAPITALS: Private sector business activity in the United
                                                                                                                                                                                            Arab Emirates (UAE) hit a 15-month high in October and

                                                                                                                                                                                            the outlook improved further with companies hiring new
                                                                                                                                                                                            staff, a purchasing managers’ survey showed on Wednesday.
                                                                                                                                                                                            The Hong Kong and Shanghai Banking Corporation (HSBC)
                                                                                                                                                                                            UAE Purchasing Managers’ Index (PMI), which measures the
                                                                                                                                                                                            performance of the member of the Organization of Petro-
                                                                                                                                                                                            leum Exporting Countries (OPEC) manufacturing and ser-
                                                                                                                                                                                            vices sectors, rose to 53.8 points in October; its highest level
                                                                                                                                                                                            since the series began, holding above the 50 point mark that
                                                                                                                                                                                            separates growth from contraction.                                                  See Page 13
THURSday, NOVEMbER 4, 2010

                                               m ar ket watc h                                                                                     OIL m a rk e tS                                                           cUrre NcIe S
                                                                                                                                                                 US Crude                      US Dollar          British Pound        Saudi Riyal          Qatari Riyal         Indian Rupee
                                                                                                                                                    $83.91                       $0.02
   KUWAIT          DUBAI             QATAR             OMAN            ABU DHABI         BAHRAIN            EGYPT            SAUDI                                                             Buy 0.2803           Buy 0.4521           Buy 0.0746          Buy 0.07723           Buy 0.006339
                                                                                                                                                                London Brent
                                                                                                                                                    $86.25                       $1.09         Sell 0.2807          Sell 0.4528           Sell 0.075         Sell 0.07682          Sell 0.006305
    0.2%            0.4%                                                   0.1%                                                0.5%                            Kuwait Crude                      Euro             Japanese Yen         UAE Dirham         Bahraini Dinar         Philippine Peso
    7119            1735              0.4%              0.3%               2762       NO CHANGE              0.9%              6344                 $81.38                       $1.47         Buy 0.3938          Buy 0.003468             Buy 0.07614           Buy 0.7418       Buy 0.006527
                                      7799              6500                             1460                6714                                                                              Sell 0.3945         Sell 0.003474            Sell 0.07654          Sell 0.7457      Sell 0.006587
                                                                                                                                                      Information Courtesy: KAMCO                                   Prices in Kuwaiti fils As of Nov. 3, 2010 COURTESY: KAMCO

Zain deal sealed by Jan. 15 max: Etisalat
                 Staff Writer & Agencies                                                                                                                                                                                          Etisalat has been keen to expand outside its home mar-

                     CAPITALS: United Arab Emirates (UAE) telecoms                                  British Airways announces launch of new ‘First’                                                                           ket as competition intensifies for the one-time monopoly.
                                                                                                                                                                                                                                  Zain, the Gulf Arab region’s third-biggest telecoms firm,
                 group Etisalat set terms for its plan to buy a stake in Ku-                                                                                                                                                  sold its African assets this year but still operates in high-
                 wait’s Zain on Wednesday, making any deal dependent on                                                                                                                                                       growth Middle Eastern markets such as Iraq and Lebanon,
                 the sale of Zain’s Saudi assets as it began scrutiny of the                                                                                                                                                  among others.
                 company’s books.
                     Etisalat, formally known as Emirates Telecommunica-                                                                                                                                                          ‘Deal is going according to bourse’s procedures’
                 tions Company and the Gulf’s Number two telecoms group,                                                                                                                                                           The Kuwait Stock Exchange (KSE) General Manager
                 said any deal was unlikely to close before the end of the first                                                                                                                                              Hamed Al-Saif stated that the possible selling of the major-
                 quarter (Q1) next year and could fail if definitive transac-                                                                                                                                                 ity share of Zain is going according to the regulations and
                 tion documents are not signed by Jan. 15, 2011.                                                                                                                                                              procedures of the bourse. He added that the deal is benefi-
                     “Matters are still at an early stage, and the information                                                                                                                                                cial to the national economy if it is completed, in addition
                 and data currently available to us are partial,” Etisalat’s                                                                                                                                                  to its positive effect on the bourse, since part of the deal’s
                 Chairman Mohammed Omran said as the company began                                                                                                                                                            liquidity will go to trading.
                 a due diligence process on Zain’s books.                                                                                                                                                                          Moreover, Kuwait Investment Company (KIC) revealed
                     In September, Etisalat offered 1.7 Kuwaiti dinars (6.06                                                                                                                                                  that Al-Khair National for Stocks and Real Estate Company
                 US dollars) a share for a 46 percent stake, pegging the deal                                                                                                                                                 has signed a deal with the UAE Communications Institution
                 at just under $12 billion. A major Zain shareholder, the                                                                                                                                                     to sell 46 percent of the Zain’s total stock. The company
                 Kharafi Group, has gathered a consortium to tender to the                                                                                                                                                    explained in its statement to the bourse, that the selling pro-
                 offer. “It is expected that our due diligence and other work                                                                                                                                                 cedures will be executed according to the rules and regula-
                 required to reach definitive agreements, if successful, would                                                                                                                                                tions followed by the bourse.
                 take a number of weeks and, if signed, the transaction is                                                                                                                                                         Sources mentioned that the National Investment Com-
                 unlikely to close before the end of first quarter of 2011,”                                                                                                                                                  pany (NIC) will contact Zain’s board to grant it access to its
                 Etisalat said in a statement.                                                                                                                                                                                files before the representatives of the potential acquirer, so
                     Etisalat’s chairman speaking on the timing of the deal,                                                                                                                                                  that he can view whatever financial data he wishes to view.
                 said in a statement, “The Gulf region enjoys a very strong                                                                                                                                                   It is expected that the files will be available next week after
                 and robust economy, built upon sound foundations. The re-                                                                                                                                                    the board grants access.
                 gion enjoys outstanding and effective partnerships between             Image showing the sample of the British Airways’ new First-class passenger cabin, which was displayed at the                               Meanwhile, the collection of stock required for the deal
                 the public and private sectors, a fact which mitigates invest-         British Embassy in Kuwait on Wednesday Nov. 3, 2010 during the launch event. Regional Commercial Man-                                 will commence during the coming 10 days, but the process
                 ment risks to a large extent. Therefore I do believe that the          ager for Middle East of British Airways, Paolo de Renziz, announced the launch of the airlines’ newest feature,                       might extend to after the Eid holidays. The Kuwait Invest-
                 timing is extremely apt, particularly with regards to opera-           called the “First Suite”, which is a fully-equipped passenger cabin that adds on luxury, privacy and style while                      ment Company is assured that the required amount of stock
                 tional and finance issues.” Earlier on Wednesday, Etisalat             maintaining its classic feel. The newest state-of-the-art cabins will be fitted on British Airways Boeing 777-                        will be available, in addition to the fact that the company
                 and Kharafi signed an exclusive agreement to begin the due             200, Boeing 747-400 and Boeing 777-300. (Al Watan)                                                                                    has additional alternatives on the level of minor sharehold-
                 diligence process, a Kharafi unit group said.                                                                                                                                                                ers through the possibility of opening the ceiling of partici-
                       BNP Paribas, an adviser to the Kharafi group, on                                                                                                                                                       pating in the deal from 300,000 stocks to a higher level ac-
                 Wednesday said Etisalat would pay cash for the stake.               tion. It also depends on the negotiation of the final docu-            organizational structure of Zain added sources.                   cording to the requirements of the stock owners.
                     Etisalat’s offer for 51 percent of Zain’s total issued shares   ments and procedures of the transaction, completion of all                 Etisalat already operates in Saudi through its affiliate           Furthermore, the talks regarding the financing of the
                 excluding treasury shares - which amounts to a 46-percent           examinations and audits in a satisfactory manner, attaining            Mobily. Saudi Zain has said it is in talks with unnamed in-       deal will be accelerated during the coming period, in ad-
                 stake - depends on Zain selling its investment in Zain Saudi        all necessary regulatory approvals and absence of any mate-            vestors on the stake. Qatar Telecommunications and Bahrain        dition to the talks between the Emirates Company and its
                 “in a timely fashion,” an approximately 25-percent posi-            rial and adversary changes to the operations or financial and          Telecommunications have been touted as potential buyers.          councilor the National Bank of Kuwait (NBK).

September CPI hits                                                                                                        Kuwait oil
                                                                                                                                                                                Al-Mal rises to highest in more
18-month high on food, housing                                                                                            up $1.76 to                                           than a year on stake sale offer
                                                                                                                          $80.26 per                                            KCIC posts KD 2.1                                         lion for the nine months, which ended on Sep-
                      CAPITALS: Kuwait inflation climbed to         as a start of a broader inflationary process                                                                                                                          tember 30, 2010 compared to KD 86.9 million
                 an 18-month high of 5.3 percent year-on-           similar to the one we had in 2007 and early                                                                 million profits in 9 months                               for the same period last year, the company said

                 year in September, mainly driven by soar-          2008,” said Daniel Kaye, senior economist                                                                                                                             in a statement posted on the Kuwait Stock Ex-
                 ing food and housing costs, the Gulf Arab          at the National Bank of Kuwait (NBK).                                                                                                                                 change (KSE) Web site.
                 country’s data showed on Tuesday.                       Food prices, which account for 18 per-                                                                      CAPITALS: Al-Mal Investment Company                      The total assets reached KD 87.2 million,
                      Inflation in the world’s fourth largest       cent of the Kuwaiti basket, soared by 2.6                                                                   surged to the highest level in more than a year           while total liabilities amounted to KD 1.67 mil-
                 oil exporter has risen over the past months        percent month-on-month (mom) in Sep-                      KUWAIT: Price of Kuwaiti crude oil                after the Kuwaiti firm said it received an offer to       lion for the nine months compared to KD 1.21
                 from a low of 1.6 percent in November              tember, after a 1.2 percent rise in August.           increased by 1.76 US dollars to $80.26                sell a 31.3 million Kuwaiti dinar (112 million US         million in the same period last year, it added.
                 2009 as the oil-reliant economy recovers           Prices usually rise during the holy month of          per barrel (pb) in trading on Tuesday                 dollar) stake in an energy company.
                 from last year’s sharp contraction.                Ramadan, which ended in mid-September,                compared to USD 78.50 pb of Monday’s                       The shares increased 4.4 percent to 144 Ku-                           UPAC Q3 profits
                      The September rate is the second high-        as families enjoy larger and more elaborate           transactions, the Kuwait Petroleum Cor-               waiti fils, the highest intraday level since Septem-          Meanwhile, Kuwait’s United Projects for Air
                 est in the Gulf after Saudi Arabia but is          evening meals after the daylight fasting.             poration (KPC) said on Wednesday.                     ber 2009, as of 10:37 a.m. in Kuwait. The shares          Services Company (UPAC) earned total profits of
                 still well below a record high of 11.6 per-             Transport costs, the third biggest com-              The increase in crude oil prices Tues-            have gained 73.5 percent this year.                       KD 3.1 million in the first nine months of this
                 cent seen in August 2008. Consumer price           ponent, were flat for the second month in a           day came as the US dollar rate decreased                   Al-Mal said it will decide on a possible sale        year against KD 3.164 million in the same period
                 growth stood at 4.4 percent in August. On          row. Unlike its fellow Gulf Arab oil produc-          versus other major currencies, and US                 this month and it may make a KD 20.5 million              last year.
                 the month, prices in the Organization of the       ers, Kuwait abandoned a dollar peg in favor           Federal Reserve System’s announcement                 gain from the sale. In other news, Kuwait China               The company’s total equities hit KD 31.41
                 Petroleum Exporting Countries (OPEC)               of a currency basket in 2007 to counter a             Wednesday increased US dollar rate.                   Investment Company (KCIC) posted KD 2.1 mil-              million until September 30 compared to KD 30.6
                 member jumped 1.1 percent following a              sharp spike in inflation.                                 Kuwait’s current oil prices are still             lion during the nine months that ended on Sept.           million in the same period last year, it said in a
                 0.4 percent rise in the previous month, data            A Reuters poll forecast average infla-           within the Organization of the Petroleum              30, 2010 with profitability of 2.7 fils compared to       release. Its assets totaled KD 42.6 million, while
                 from the Central Statistical Office showed.        tion in Kuwait at 4.2 percent for the full            Exporting Countries (OPEC) target, be-                gain of KD 21 million and 15 fils per share in the        total liabilities amounted to KD 8.57 million in
                      “As long as international commodities         year of 2010, up from 4.0 percent last year.          tween $70 and $80 pb. -KUNA                           same period last year.                                    the reported period ompared to KD 10.6 million
                 prices stay reasonably steady, I don’t see this    -Agencies                                                                                                        The total equity amounted to KD 85.5 mil-            in the same period last year. -Agencies

Blackberry Torch 9800 launches in Kuwait
                                             Equipped with touch screen,                            newly transformed multimedia experience it of-             sence of BlackBerry AppWorld, which is the of-
                                             QWERTY keyboard, pinch-zoom                            fers. Part of this experience, of course, is also the
                                                                                                    built-in YouTube App and BlackBerry Podcasts.
                                                                                                                                                               ficial application store for BlackBerry devices,
                                                                                                                                                               has loomed over the region, especially since
                                             but no AppWorld yet                                         During the launch press conference, which             competitors were quick to open their official
                                                                                                    was held in Al Corniche Club on Wednesday                  App stores to the region. When asked about the
                                                                                                    Nov. 3, 2010, Director of Product Management,              issue, Al-Mefleh responded by saying that this
                                             Dalal F. Al-Sharhan                                    RIM Middle East, Mohammed Al-Mefleh, said,                 matter is currently being negotiated with RIM
                                             Staff Writer                                           “The new BlackBerry Torch is our first combi-              and the region governments in order to acquire
                                                                                                    nation QWERTY and touch-screen smartphone,                 the necessary approvals to launch the applica-
                                                  KUWAIT:       Research-In-Motion       (RIM),     catering not only to our traditional enterprise            tion store.
                                             the manufacturer of BlackBerry, has officially         users but also to consumers who like the conve-                 During the question and answer session, a
                                             launched its new smartphone, the BlackBerry            nience of a touch screen.”                                 question was raised regarding the effects of the
                                             Torch 9800. The new device is the first of its kind         RIM provided several devices to journal-              AppWorld unavailability and government-RIM
                                             to be supported by the BlackBerry 6 operating          ists during the press conference to sample and             disputes regarding the ban of the device on the
                                             system, which features a swifter WebKit browser,       examine, where the trademark touch-sensitive               sales of BlackBerry in the region. Al-Mefleh
                                             RSS feed capabilities, and social networking sites     trackpad and touch-screen was featured, in addi-           responded by stating that the contrary has oc-
                                             and instant messaging applications, including Fa-      tion to a 35 key QWERTY and backlit slide-out              curred and that BlackBerry sales have soared
                                             cebook, Twitter, BlackBerry Messenger (BBM),           keyboard. The new Torch, which also supports               worldwide in the past quarter, selling over al-
                                             under one integrated access system amongst oth-        high-speed 3G networks around the world, lat-              most 12 million units, where RIM approached
                                             er perks. RIM’s new operating system also allows       est generation in Wi-Fi connectivity and built-in          almost 20 percent of the global Smartphone
                                             a universal search option, where the user can en-      GPS for location-based applications and geo-               market share. He, however, declined to com-
                                             ter a search and the smart phone will search in        tagging, was however heavier than its predeces-            ment about the events in the conflict between
                                             all locations in the device including all folders,     sors in terms of weight.                                   RIM and some governments.
                                             messages, contacts and even the Web.                        Al-Mefleh told the press during his presen-                Al-Mefleh concluded the press conference
                                                  One of the most exciting aspects of the new       tation that the new device is equipped with a              by summing up all the innovative options fea-
                                             BlackBerry Torch 9800 is that the Web browser is       combined eight gigabyte (GB) memory, and if                tured in the new Torch. “The BlackBerry 6
                                             now equipped with multi-tab capabilities, where        the user would like to increase its capacity, it is        user interface provides a range of multimedia
                                             the user can have more than one page open at a         also equipped with a microSD/SDHD memory                   and social networking tools to help users stay
                                             time, making it easier for the busy user to multi-     card slot which can bring the total storage mem-           in touch with their networks and keep up with
                                             task. Amongst the other fresh features that RIM        ory to 32 GB.                                              hectic lifestyles and work schedules. Let’s face
                                             has supplied the new Torch is an upgraded five-             One concern, however, that the media has              it - work and play increasingly overlap in to-
                                             megapixel camera with auto focus, image stabili-       brought up is the absence of the BlackBerry Ap-            day’s society. At RIM we recognize this and have      Mohammed Al-Mefleh, Director of Product Management, RIM
BlackBerry Torch 9800 is now available       zation, scene modes, video recording and pinch-        pWorld in the Gulf Cooperation Council (GCC)               come up with a great solution to both needs in        Middle East, during the press conference announcing the launch
in Kuwait.                                   zoom technology, which has added value to the          and Middle East and reason behind it. The ab-              the BlackBerry Torch,” he said.                       of RIM’s new device, the BlackBerry Torch 9800. (Al Watan)

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