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					                                                                                                                                                                                                                                    ARAB TIMES, TUESDAY, MAY 17, 2011
    BUSINESS                                                                                                                                                                                                                                                                       36

                                                                                                                                                                                                           S&P affirms GIB credit ratings

                                                                            Standard & Poor’s Ratings Services                look balances its opinion of GIB’s strong              The disconnection between GIB’s cred-         from its 98% owner, the Public Investment
                                                                            (S&P) has affirmed Gulf International             capitalization and shareholder support and         it rating and the Bahrain sovereign rating        Fund,” the agency assured.
                                                                            Bank’s (GIB) long-term and short-term             factors in S&P’s expectation that GIB will         is a rare exception to S&P’s standard rat-           GIB’s balance sheet is in hard curren-
    GIB Chairman Jammaz                                                     counterparty credit ratings at BBB+ and           likely maintain its asset quality and liquidity    ing policy and reveals GIB’s unique status        cies; therefore, it is not exposed to any
               Al-Suhaimi                                                   A-2 respectively. The Bank was also               metrics at their current adequate levels.          as a regional GCC-owned bank operating            foreign exchange controls, sharp curren-
                                                                            removed from CreditWatch Negative and                S&P explained in the statement that             at both a regional and international level.       cy movements, or any deposit freeze in
                                                                            assigned a Stable outlook.                        the credit rating reflects its view that GIB           “In addition, the affirmation takes into      Bahrain. The Bank’s ability to operate
                                                                               The rating agency said in a statement          is well insulated from sovereign and               account the Bank’s funding and liquidity          from its offices in London or Riyadh on
                                                                            that “the ratings on GIB reflect the Bank’s       country risks related to the Kingdom of            position, which has demonstrated resilience       short notice, and its strong business con-
                                                                            strong ownership structure, strong capital-       Bahrain. Consequently, GIB is rated                in Bahrain’s recent turbulent operating envi-     tinuity center, are other features that limit
                                                                            ization and efficiency, and improved liquid-      higher than the ‘BBB’ transfer and con-            ronment. We also believe GIB could bene-          Bahrain-related sovereign or country
                                                                            ity.” The agency added that the Stable out-       vertibility (T&C) assessment for Bahrain.          fit, if necessary, from extraordinary support     risks, according to S&P.

                                                                                              Banglalink in OT’s third-biggest unit by revenue

Sawiris to step down as Orascom Telecom chairman
CAIRO, May 16, (RTRS): Egyptian mobile          than $6 billion deal with Russian operator        Vimpelcom said on Monday it would             Banglalink, the subsidiary Abou Doma        Director in Mobinil, Egypt (from 2003).       completed the International Executive
operator Orascom Telecom’s CEO will take        Vimpelcom last month for his holding           also replace its chief executive, a move      ran, is Orascom’s third-biggest unit by rev-   He joined Mobinil in 1998 as a Market         Program (IEP) from INSEAD Business
over from Naguib Sawiris as executive           company Wind Telecom, including a              seen as attempting to smooth over friction    enue. It brought in about $457 million last    Development Manager and from 2000 till        School in Singapore and France.
chairman, the firm said on Monday, as the       majority stake in Orascom and all of           caused by the Sawiris deal between two of     year, up from about $351 million in 2009,      2003 Abou Doma held positions of Senior          In his new capacity as President and
billionaire moves to get more involved in       Italy’s Wind.                                  the company’s major shareholders.             and has over 19 million mobile subscribers.    Market Manager for Planning and               Chief Operating Officer of VimpelCom
his country’s changing politics.                   The cash-and-shares deal gave Sawiris          Bichara, who took part in anti-govern-        Orascom Telecom fully or partly owns        Development and Senior Manager for            Ltd. (“VimpelCom”), the company creat-
   Ahmed Abou Doma, the former head             30.6 percent of Vimpelcom.                     ment demonstrations during Egypt’s            operators in Algeria, Pakistan, North          Market Strategy and Analysis in Mobinil.      ed through the combination of
of Orascom’s Bangladeshi business, will            “Personally, I have decided to be more      uprising, will take over from Sawiris as      Korea and a variety of sub-Saharan             Before joining Mobinil he worked for IBM      VimpelCom Ltd. and WIND TELECOM
replace Khaled Bichara as chief execu-          focused on social and political work, aim-     Orascom’s executive chairman. He was          African countries as well as Mobinil,          and Datum IDS. Abou Doma acquired a           SPA., Khaled Bichara, will also be
tive officer, the firm said.                    ing to play a role in the transformation of    appointed CEO in November 2009, also          which it runs jointly with France Telecom.     Bachelor of Science in Electronics and        focused on executing VimpelCom syner-
   Egypt toppled its president in a popular     post-revolution Egypt into a civil democ-      replacing Sawiris at that time.                  A long time member of the OTH group,        Communication Engineering from Cairo          gy roadmap and achieving the targets for
uprising in February and the telecoms           racy,” Sawiris said in a statement.               Bichara’s replacement Abou Doma has        Abou Doma has been serving as the Chief        University in 1992. He has received the       technology procurement and commercial
tycoon has been a vocal supporter of the           “Yet I will continue to support the         also worked as the head of marketing at       Executive Officer in Banglalink since          “Telecom Business Planning Award” by          development, a key benefit resulting
country’s transition to democracy.              business as one of the largest sharehold-      Orascom’s Egyptian mobile venture             January 2009. Prior to this position, Abou     the international Telecommunication           from the merger to OTH and its minority
   He also saw the completion of a more         ers at the Vimpelcom level.”                   Mobinil , the firm said.                      Doma held the position of Marketing            Union (ITU) based in Switzerland. He also     shareholders.

Turkey’s soaring current account                                                                                                                                                              the    bottomline
shortfall ‘too much’ for c.bank
                                                                                                                                                                                 RIYADH, Saudi Arabia: Saudi Arabia’s                ing nearly 250 km of the capital’s total area
                                                                                                                                                                                 economy minister says the kingdom proj-             of 1,445 km. For this reason, it is divided
                                                                                                                                                                                 ects telecom investment will hit around 37          into 10 sub-districts, which are simply
                                                                                                                                                                                 billion riyals ($9.9 billion) in 2013.              numbered instead of named. It is known for
                                                                                                                                                                                    Khaled Al Gosaibi said Monday that               its well designed modern road system, and
                                                                                                                                                                                 investment in boosting and developing the           grid street system, which stands in contrast
                                                                                                                                                                                 sector had reached 22.3 billion riyals in           to the narrow winding streets of much of
                                                        Loan growth still at 35 pct y/y                                                                                          2009. He said that the oil rich kingdom             Old Cairo.
                                                                                                                                                                                 projects that investment to grow to 50 bil-            Nasr City is home to the new premises of
                                                                                                                                                                                 lion riyals in 2015.                                Al-Azhar University, the Cairo
ISTANBUL, May 16,                                                                                                                                                                   Al Gosaibi’s remarks came during the             International Conference Center, Cairo
(Agencies):      Turkey’s                                         Co eyes infrastructure-sharing deal with du                                                                    first day of a telecom conference and trade
                                                                                                                                                                                 show in the Saudi capital. (AP)
                                                                                                                                                                                                                                     International Stadium, and several govern-
                                                                                                                                                                                                                                     ment buildings.
record current account                                                                                                                                                                            ❑      ❑       ❑                      Among its major landmarks is the pyra-
deficit in March has not                                                                                                                                                                                                             mid-like Unknown Soldier Memorial hon-
only revived doubts about
the      central    bank’s
                                              Etisalat sees $817 mln yearly spending                                                                                             DAMMAM, Saudi Arabia: Saudi Arabia
                                                                                                                                                                                 need to invest 330 billion riyals ($88 bil-
                                                                                                                                                                                                                                     ouring the Egyptian and other Arab ser-
                                                                                                                                                                                                                                     vicemen killed in the October War of
                                                                                                                                                                                 lion) over the course of next 10 years as           1973.
unorthodox policies, it also                  ABU DHABI, May 16, (RTRS):                 work in the UAE for up to five years,”     and Obood said the issue has been            demand for electricity continues to grow 7-            The Memorial is opposite the grandstand
                                              UAE telecom operator Etisalat will         Nasser Bin Obood, acting chief             under discussion for a certain time.         8 percent annually, the kingdom’s water             at which President Sadat was assassinated,
shows the bank cannot                         spend up to 3 billion dirhams ($817        executive of Etisalat, told reporters         “It adds pressure. However, the           and electricity minister said.                      and is where Sadat himself is
tackle a problem of this                      million) annually for the next five        at a conference in Abu Dhabi.              issue is being looked at and we are             Abdullah al-Husayen told an industry             buried.(RTRS)
                                              years on UAE infrastructure, its              He said the company has suffi-          sure that the government and all
scale alone.                                  acting CEO said on Monday.                 cient cash reserves for these              the stakeholders will come up with
                                                                                                                                                                                 conference Saturday that the water and                              ❑      ❑      ❑
   Historically low interest rates                                                                                                                                               electricity sector would need investments of
                                                 The former monopoly, also               expansion plans and will not look at       a reasonable plan.”                          500 billion riyals over the next 10 years,          CAIRO: Egypt’s Sidi Kerir
and a ready supply of foreign cred-           known           as         Emirates        funding options.                              In March, Etisalat withdrew                                                                   Petrochemicals posted a 4 percent gain in
                                              Telecommunications Corp, said it              Obood said the company will look        plans to bid for Syria’s third               and that demand for water was growing by
it have fuelled a massive spending                                                                                                                                               more than 7 percent annually.                       first-quarter net profit to 223 million
boom in Turkey which has seen                 will spend on technology for 2G,           to sign an infrastructure-sharing          mobile licence, saying the terms                                                                 Egyptian pounds ($37.57 million), the stock
                                              3G and 4G networks as well as for          agreement with rival operator du by        did not offer sufficient value for              “It is expected that the maximum
imports grow at twice the pace of             IT systems and mobile towers.              the end of the year.                       shareholders, and it has scrapped            power load will reach 75,000 megawatts              exchange said on Monday.
exports and Turks splurge on cars,               “We will spend about two to three          Etisalat pays 50 percent of its earn-   a $12 billion takeover of Kuwait’s           in the next 10 years which means the                   Net profit in the same period last year
consumer durables and holidays as             billion dirhams annually on the net-       ings as royalties to the government        Zain.                                        need to invest around 330 billion riyals to         was 214 million Egyptian Pounds, it said.
never before.                                                                                                                                                                    boost generation capacity and transmis-             (RTRS)
   Although the government, seen                                                                                                                                                 sion and distribution networks,’” Husayen                           ❑      ❑      ❑
winning a third term in an election           When compared to some of the euro          gets.                                      Tim Ash said in a note.                      said.                                               CAIRO: Egyptian steel magnate Ahmed
on June 12, likes to trumpet its com-         zone’s periphery states Turkey’s fis-         While the budget performance                       Also:                                The figure for power investments was             Ezz, a top official in ousted president Hosni
parative restraint, it has not done           cal position seems enviable.               may well beat targets set out in the                                                    higher than an earlier 300 billion riyals           Mubarak’s party who is being investigated
                                                 Ankara targets a budget deficit of      mid-term economic plan the current         ANKARA: Turkey’s unemployment                given by officials as needed to boost capac-
nearly enough to consolidate its own                                                                                                rate fell to 11.5 percent in the three                                                           for graft, resigned as chairman of Ezz
spending, analysts say. Spending              2.8 percent of gross domestic prod-        account deficit will need to be                                                         ity to 80 gigawatts from 50 gigawatts, but          Dekheila Steel, the company said on
                                              uct this year, down from 3.6 percent       sharply upwardly revised, however.         months to March from 14.4 percent            appears to also include transmission and            Monday.
cuts to support central bank policy
are now crucial to get Turkey’s               last year, and sees its debt-to-GDP           It was initially projected at 5.4       in the same period last year, official       distribution costs.                                    Ezz, who quit the party during protests
                                                                                         percent of GDP this year, but already      data showed on Monday.                          “The private sector is expected to con-          that erupted on Jan. 25, has been detained
finances back on track.                       ratio easing to 40.6 percent in 2011                                                                                               tribute roughly 30 percent of it or the
   “The central bank should have              from 41.6 percent.                         stands at some 8 percent of GDP.              The number of jobless decreased                                                               since Feb. 17 pending trial on suspicion of
                                                                                                                                    by 600,000 people to reach 2.9 mil-          equivalent of 100 billion riyals,” Husayen          wasting public funds.
called in the government to help                 But analysts argue this could give         In the first quarter the deficit more                                                said.
straight away,” said Murat Ucer, an           a false sense of security as the           than doubled to $22.12 billion on the      lion on a 12-month comparison, the                                                                  He was charged with illegally taking con-
                                                                                                                                    statistics institute said on the basis of       Although sitting on the world’s biggest          trol of al-Dekheila Steel, which then sup-
analyst at Global Source research             improvement is due to a surge in rev-      year and the March shortfall of                                                         oil and fifth gas reserves, Saudi Arabia is
                                                                                         $9.766 billion was more than $2 bil-       a survey of some 42,353 people.                                                                  plied its parent company Ezz Steel with
consultancy, and a former central             enues which will slow as economic                                                                                                  struggling to keep pace with rapidly rising         steel at reduced prices, causing al-Dekheila
bank adviser.                                 growth is expected to ease next year.      lion above a previous record in               Youth unemployment also fell,             power demand, as petrodollars have fueled
                                                                                                                                    from 25.5 to 20.6 percent in the                                                                 heavy losses. A judicial source said Ezz
   “Part of the job of central bankers           “Given Turkey’s level of growth the     December 2010.                                                                          a region-wide economic boom as well as              was also charged with monopolising
is to scream at politicians. They are         government should be aiming for a             That suggests the central bank’s        same period, it said.                        rapid population growth. (AP)
                                                                                                                                       Most of the employed work force                                                               Egypt’s steel market.
trying to handle a situation which            balanced budget,” said Neil Shearing,      unorthodox policy introduced late                                                                        ❑      ❑       ❑                      Ezz has said in a letter sent to media
they are incapable of handling                analyst at Capital Economics.              last year to tame the current account      is male, with a percentage of 71.8                                                               from prison that charges against him are
alone,” he said.                                                                         deficit has faltered, although offi-       percent, it added.                           CAIRO: Egypt’s central bank said it will
                                                             Tighter                                                                                                             offer 10 billion Egyptian pounds ($1.68 bil-        unfounded and that a fair trial will prove
   The current account deficit, which                                                    cials protest it is starting to work.         Turkey’s economy has staged a                                                                 his innocence.
                                                 “Fiscal policy has to be tighter ...                                               spectacular recovery from the global         lion) in seven-day repurchase agreements in
soared to a monthly record of $9.766                                                        The bank lowered interest rates to                                                   the money market on Tuesday at a fixed                 Some analysts say Ezz’s resignation from
billion in March, is the key risk to          so far, it is just growth which has        deter flows of hot money, and has          crisis, growing 8.9 percent in 2010.                                                             Ezz Dekheila’s board of directors would
                                              improved the budget deficit,” he                                                         But unemployment remains a                rate of 9.25 percent.
Turkey’s otherwise robust economic                                                       raised required reserve ratios                                                             The central bank introduced the weekly           have limited effect on the business because
outlook, and may yet prevent the              said.                                      (RRRs) five times since November           major challenge for the government           seven-day repo agreements on March 22 to            he was not strongly involved in day-to-day
country achieving a long-awaited                 Economist Yarkin Cebeci at JP           to dampen credit growth, which             in a country where an overwhelm-             keep short-term interest rates under control        operations.
investment grade rating.                      Morgan said the government must aim        grew 34 percent in 2010.                   ingly young population swells the            after a popular uprising ousted President              But they also noted the resignation was
   Turkey’s economy grew 8.9 per-             for a budget deficit of at least 1-1.5        But while the RRR on one-month          workforce each year and a declining          Hosni Mubarak.                                      welcomed by investors, with shares in Ezz
                                              percent of GDP to maintain confi-          lira deposits has risen to 16 percent      farming sector drives unqualified               Last week it offered repos worth 7 billion       Steel rising 3 percent by 1226 GMT.
cent last year, one of the fastest                                                                                                                                                                                                   Egypt’s benchmark index was up 1.3 per-
growth rates in the world, and prob-          dence in the country’s financial health.   from 5.5 percent in November, loans        labourers to urban areas.                    pounds and accepted repos worth 4.879 bil-
                                                 Finance Minister Simsek told                                                          Turkey’s jobless rate is determined       lion pounds.                                        cent.
ably expanded 9 percent in the first                                                     in April were still up 36 percent                                                                                                              “It’s probably what the market wanted to
quarter on the year, according to             Reuters in an interview on Friday that     from a year earlier.                       through household surveys across the            Egypt’s central bank said it will accept
                                                                                                                                                                                 repurchase agreements in multiples of 1             hear,” said Beltone Financial analyst Omar
Finance Minister Mehmet Simsek.               Ankara can finance the shortfall, and         Interest rate cuts in December and      country that are then used to make a                                                             Taha. “But in terms of operations, it doesn’t
   However, the country’s huge                the deficit, excluding energy, is likely   January have also had little impact        nationwide three-month projection.           million Egyptian pounds ($168,500) in a
                                                                                                                                                                                 new system it is launching on Tuesday.              change much.”
dependence on portfolio flows to              to “slow down” in the second half.         on portfolio flows.                           Experts say the figures fail to                                                                  Ezz Steel, Egypt’s largest steel producer,
finance the deficit at a time of falter-         The government would do more if            “The policy of holding policy           reflect the overall picture because of          It said banks will be able to submit bids
                                                                                                                                                                                 for the repos from 8:00 a.m. (0600 GMT)             holds a 55 percent stake in Ezz Dekheila,
ing risk appetite makes it highly vul-        needed, he said, but sees no need to       rates low is supposed to cap money         widespread undeclared or hidden                                                                  which said on Monday its unaudited 2010
                                              now. After strong revenues and a                                                      unemployment, or the employment              to 11:00 a.m. (0900 GMT) on Tuesday.
nerable to external shocks, while fast                                                   flows, but the data for March sug-                                                         The central bank said on March 10 it was         net profit was unchanged from a year earli-
economic growth and credit expan-             successful tax debt restructuring          gest the policy is not working,”           of educated, qualified people in                                                                 er at 724 million Egyptian pounds ($122
                                                                                                                                                                                 introducing the weekly seven-day repo
sion have sparked overheating fears.          programme Ankara will review tar-          Royal Bank of Scotland economist           menial jobs.                                                                                     million).
                                                                                                                                                                                 agreements to keep short-term interest rates           The firm said in a brief statement to the
                                                                                                                                                                                 under control after the political and eco-          stock exchange that its revenue rose 21 per-
                                                                                                                                                                                 nomic turmoil of the last two months.               cent in the year to 9.86 billion pounds.
                                                                                                                                                                                    The repos would be offered at an interest           Ezz has been replaced by Farouk Ibrahim
                                                                                                                                                                                 rate of 9.25 percent, it said at the time.          as chairman of the board of directors of Ezz
                                                                                                                                                                                 (RTRS)                                              Dekheila. (RTRS)
                                                                                                                                                                                                  ❑      ❑       ❑                                   ❑      ❑      ❑
                                                                                                                                                                                 CAIRO: Egyptian property developer Nasr             CAIRO: Egypt’s Ezz Dekheila Steel, a unit
                                                                                                                                                                                 City Housing posted a 76 percent net profit         of Ezz Steel, said on Monday its unaudited
                                                                                                                                                                                 drop in its third-quarter, which runs to the        2010 net profit was unchanged from a year
                                                                                                                                                                                 end of March, to 6.3 million Egyptian               earlier at 724 million Egyptian pounds
                                                                                                                                                                                 pounds ($1.1 million), the firm said on             ($122 million).
                                                                                                                                                                                 Monday.                                                The firm said in a brief statement to
                                                                                                                                                                                    The formerly state-run company, now              the stock exchange that its revenues rose
                                                                                                                                                                                 about 30 percent-owned by investment                21 percent in the year to 9.86 billion
                                                                                                                                                                                 bank Beltone Financial’s private equity             pounds.
                                                                                                                                                                                 arm, posted net profit in the same period of           Ezz Steel, Egypt’s largest steel producer,
                                                                                                                                                                                 2010 of 25.8 million pounds.                        holds a 55 percent stake in Ezz Dekheila.
                                                                                                                                                                                    A popular uprising that unseated Egypt’s         Shares in Ezz Steel rose 2.8 percent by
                                                                                                                                                                                 president caused strikes and widespread             0915 GMT, while Egypt’s benchmark index
                                                                                                                                                                                 disruption to businesses during the period.         was up 0.3 percent. (RTRS)
                                                                                                                                                                                 As a result, the government has slashed its
                                                                                                                                                                                 forecast for economic growth in the 2010-                           ❑      ❑      ❑
                                                                                                                                                                                 11 fiscal year.                                     VIENNA: Austrian oil and gas giant OMV
                                                                                                                                                                                    Nasr City is located to the east of the          said Monday it plans to raise up to 900 mil-
                                                                                                                                                                                 Cairo Governorate and consists mostly of            lion euros ($1.3 billion) in fresh capital via
                                                                                                                                                                                 condominiums. It was established in the             a rights issue.
                                                                                                                                                                                 1960s as an extension to neighboring sub-              OMV said in a statement it planned to
                                                                                                                                                                                 urb of Heliopolis.                                  issue up to 27.273 million new shares at a
                                                                                                                                                                                    The establishment of the district was part       maximum price of 33 euros apiece.
                                                                                                                                                                                 of the Egyptian Government’s plan to mod-              The new shares would be offered at
                                                                                                                                                                                 ernise and expand Cairo following the               existing shareholders at a ratio of one for
                                                                                                                                                                                 Egyptian Revolution of 1952.                        every 11 shares currently held.
                                                                                                                                                                                    Gamal Abdel Nasser, the Egyptian                    The final issue price would be deter-
                                                                                                                                                                                 President at the time, was involved person-         mined at the end of the so-called book-
                                                                                                                                                                                 ally in the design process, and was the one         building period from May 19 until June 6,
                                                                                                                                                                                 who chose the name Nasr for the new dis-            with the new shares to be traded on the
                                                                                                                                                                                 trict.                                              Vienna stock exchange from June 8, the
                                                                                                                                                                                    It is the largest district in Cairo, occupy-     statement said. (AFP)