January 18, 2009, original published Wall Street Journal
Dubai Tennis Championship 2009 - A cosmopolitan city, unless you're Jewish
Praise Dubai. The Arab city-state, once fabled for its real-estate extravaganzas (and now for its extravagant debts), claims to be so concerned for the personal security of an Israeli tennis player that it is refusing her a visa to play in a championship tournament. Maybe next time the emirate will generously extend this security guarantee to all Israeli citizens.
Oh, wait:
Dubai already forbids Israeli passport holders from setting foot on its soil. Which gives the lie to the emirate's excuse for excluding Israel's Shahar Pe'er, currently ranked 45 in the world, from competing in next week's Barclay's Dubai Tennis Championships. In another twist, the tournament's director added that Ms. Pe'er's presence on the court might have "antagonized our fans." We used to feel that way about John McEnroe, but that didn't stop us from watching.
Happily, the Lords of Tennis seem to be having none of it. Larry Scott, chief executive of the World Tennis Association, plans to weigh sanctions against Dubai, including excluding it altogether from its tournament calendar. And Ken Solomon of the American Tennis Channel has decided not to televise the games. "Sports are about merit, absent of background, class, race, creed, color or religion," he told the New York Times. "This is an easy decision to come by, based on what is right and wrong."
Just so. Meantime, Dubai may wish to reconsider not only Ms. Pe'er's visa, but its attitude generally toward Israel. A city-state that fancies itself a global mecca for commerce, sport and recreation ought to be able to handle a few Jews in its cosmopolitan midst
Showing posts with label Dubai international. Show all posts
Showing posts with label Dubai international. Show all posts
Wednesday, 18 February 2009
Tuesday, 3 February 2009
U.A.E. Shares Drop on Morgan Stanley Report
Feb. 3 (Bloomberg) --
United Arab Emirates shares declined, sending Dubai’s index to its lowest in 4 1/2 years, after Morgan Stanley said property prices “fell off a cliff” as banks cut lending and speculators withdrew from the market because of the global economic crisis.
Emaar Properties PJSC, the country’s biggest real-estate company, dropped to its lowest in almost five years, Sorouh Real Estate PJSC slid for a fourth day and Aldar Properties PJSC closed at a record low. Property prices in Dubai have slumped 25 percent from the market’s peak in September, while Abu Dhabi prices have declined 20 percent, Morgan Stanley said in a report received yesterday. National Bank of Abu Dhabi PJSC fell after reporting a 34 percent drop in quarterly profit.
The Dubai Financial Market General Index retreated 1.3 percent to 1,454.33, its lowest close since June 2004. The Abu Dhabi Securities Exchange General Index lost 2.2 percent, bringing the four-day retreat to 5.1 percent.
“There was a lot of borrowing to finance real-estate developments and infrastructure projects,” said Eric Swats, head of asset management at Rasmala Investments, which has $1.2 billion under management. “That combined with a drop of revenue for the governments through the decline in oil prices is having a knock-on effect which is making it worse than it is in other parts of the world.” Real-Estate Prices
Crude oil for March traded at $40.08 a barrel in after-hours electronic trading on the New York Mercantile Exchange. Prices are down 55 percent in the past 12 months. Oil and gas contributed 37 percent to the U.A.E.’s gross domestic product in 2006, according to data compiled by Bloomberg.
Moody’s Investors Service placed six government-owned companies in Dubai, including Emaar and DP World Ltd., under review for possible rating downgrades as the economy slows.
Emaar dropped 5.9 percent to 1.77 dirhams, its lowest since May 2004. The developer will be most affected by the drop in property prices because two of its projects, Burj Dubai and Old Town, have “taken the biggest hit since the peak,” the Morgan Stanley report said.
Sorouh, Abu Dhabi’s largest developer by market value, lost 7.8 percent, dropping to a February 2007 low of 2.37 dirhams, and Aldar, the emirate’s No. 2, retreated 6.9 percent to 2.17 dirhams, the lowest close on record.
Earnings Drop
Abu Dhabi’s housing shortage hasn’t helped sustain prices as speculators exited the market and financing became scares, Morgan Stanley said. Banks including HSBC Holdings Plc and Lloyds TSB Group Plc clamped down on mortgages in the last quarter.
National Bank of Abu Dhabi slid 5.5 percent to 7.6 dirhams, bringing the three-day decline to 12 percent. The U.A.E.’s second- biggest bank by assets said fourth-quarter profit fell to 492 million dirhams ($134 million) as it boosted provisions for possible loan defaults and said it expects a “difficult” 2009.
DP World, the world’s fourth-biggest port operator, lost 4.2 percent to 23 cents, its lowest close since listing in 2007.
Kuwait’s benchmark index advanced after the cabinet approved the “principles” of a stimulus package to bolster the country’s financial institutions.
The Kuwait Stock Exchange Index increased 1.9 percent to 6,957.7, its biggest gain since Dec. 23. The Kuwait Banking Index rose 2.2 percent, bringing the advance in February to 3 percent.
Kuwait’s Climb
“The talk of the bailout plan is driving the market,” said Ali Taqi, director of asset management at AT Capital Management Ltd. in Dubai. “But its scope and terms will determine the actual impact it may have on troubled investment companies.”
The cabinet “asked its economic team to present the bill in its final form in light of the remarks and the amendments that were discussed,” a government statement said. No other details were provided and the statement did not say what the amendments were.
Boubyan Bank KSC added 6.8 percent to 395 fils. The Kuwaiti Islamic lender announced the resignation of its board, effective once a new board has been selected. Global Investment House KSCC, Kuwait’s biggest investment bank by assets, climbed 8.2 percent, the most since December 2006, to 106 fils. Gulf Finance House EC, Bahrain’s biggest Islamic investment bank by market value, jumped 7.4 percent to 290 fils.
Saudi Arabia’s Tadawul All Share Index added 1.3 percent, ending two days of declines. Oman’s Muscat Securities Market 30 Index lost 2 percent and Qatar’s Doha Securities Market Index decreased 1.1 percent. The Bahrain All Share Index slipped 0.7 percent.
To contact the reporter on this story: Zainab Fattah in Dubai on zfattah@bloomberg.net Last Updated: February 3, 2009 09:10 EST
United Arab Emirates shares declined, sending Dubai’s index to its lowest in 4 1/2 years, after Morgan Stanley said property prices “fell off a cliff” as banks cut lending and speculators withdrew from the market because of the global economic crisis.
Emaar Properties PJSC, the country’s biggest real-estate company, dropped to its lowest in almost five years, Sorouh Real Estate PJSC slid for a fourth day and Aldar Properties PJSC closed at a record low. Property prices in Dubai have slumped 25 percent from the market’s peak in September, while Abu Dhabi prices have declined 20 percent, Morgan Stanley said in a report received yesterday. National Bank of Abu Dhabi PJSC fell after reporting a 34 percent drop in quarterly profit.
The Dubai Financial Market General Index retreated 1.3 percent to 1,454.33, its lowest close since June 2004. The Abu Dhabi Securities Exchange General Index lost 2.2 percent, bringing the four-day retreat to 5.1 percent.
“There was a lot of borrowing to finance real-estate developments and infrastructure projects,” said Eric Swats, head of asset management at Rasmala Investments, which has $1.2 billion under management. “That combined with a drop of revenue for the governments through the decline in oil prices is having a knock-on effect which is making it worse than it is in other parts of the world.” Real-Estate Prices
Crude oil for March traded at $40.08 a barrel in after-hours electronic trading on the New York Mercantile Exchange. Prices are down 55 percent in the past 12 months. Oil and gas contributed 37 percent to the U.A.E.’s gross domestic product in 2006, according to data compiled by Bloomberg.
Moody’s Investors Service placed six government-owned companies in Dubai, including Emaar and DP World Ltd., under review for possible rating downgrades as the economy slows.
Emaar dropped 5.9 percent to 1.77 dirhams, its lowest since May 2004. The developer will be most affected by the drop in property prices because two of its projects, Burj Dubai and Old Town, have “taken the biggest hit since the peak,” the Morgan Stanley report said.
Sorouh, Abu Dhabi’s largest developer by market value, lost 7.8 percent, dropping to a February 2007 low of 2.37 dirhams, and Aldar, the emirate’s No. 2, retreated 6.9 percent to 2.17 dirhams, the lowest close on record.
Earnings Drop
Abu Dhabi’s housing shortage hasn’t helped sustain prices as speculators exited the market and financing became scares, Morgan Stanley said. Banks including HSBC Holdings Plc and Lloyds TSB Group Plc clamped down on mortgages in the last quarter.
National Bank of Abu Dhabi slid 5.5 percent to 7.6 dirhams, bringing the three-day decline to 12 percent. The U.A.E.’s second- biggest bank by assets said fourth-quarter profit fell to 492 million dirhams ($134 million) as it boosted provisions for possible loan defaults and said it expects a “difficult” 2009.
DP World, the world’s fourth-biggest port operator, lost 4.2 percent to 23 cents, its lowest close since listing in 2007.
Kuwait’s benchmark index advanced after the cabinet approved the “principles” of a stimulus package to bolster the country’s financial institutions.
The Kuwait Stock Exchange Index increased 1.9 percent to 6,957.7, its biggest gain since Dec. 23. The Kuwait Banking Index rose 2.2 percent, bringing the advance in February to 3 percent.
Kuwait’s Climb
“The talk of the bailout plan is driving the market,” said Ali Taqi, director of asset management at AT Capital Management Ltd. in Dubai. “But its scope and terms will determine the actual impact it may have on troubled investment companies.”
The cabinet “asked its economic team to present the bill in its final form in light of the remarks and the amendments that were discussed,” a government statement said. No other details were provided and the statement did not say what the amendments were.
Boubyan Bank KSC added 6.8 percent to 395 fils. The Kuwaiti Islamic lender announced the resignation of its board, effective once a new board has been selected. Global Investment House KSCC, Kuwait’s biggest investment bank by assets, climbed 8.2 percent, the most since December 2006, to 106 fils. Gulf Finance House EC, Bahrain’s biggest Islamic investment bank by market value, jumped 7.4 percent to 290 fils.
Saudi Arabia’s Tadawul All Share Index added 1.3 percent, ending two days of declines. Oman’s Muscat Securities Market 30 Index lost 2 percent and Qatar’s Doha Securities Market Index decreased 1.1 percent. The Bahrain All Share Index slipped 0.7 percent.
To contact the reporter on this story: Zainab Fattah in Dubai on zfattah@bloomberg.net Last Updated: February 3, 2009 09:10 EST
Tuesday, 16 December 2008
Different views from the past about Malika Karoum
http://groups.google.com/group/alt.crime/browse_thread/thread/d98943ef0e915c08
International intelligence services are chasing a 32 year old Moroccan born Dutch former spy agent, who was stationed in Dubai, and became a key figure in drug-money laundering.
Dutch weekly Revu uncovered the story this week in a six page article.
Although trained in the Netherlands, Malika Karoum worked for international intelligence services and was stationed in Dubai late 2006 in particular to uncover drug (money) trafficking networks.
Instead, she masterminded a drug-money laundering operation herself of over 100 million euros, intelligence sources told Revu. Her money-laundering venture was nothing short of extraordinary in terms of its scope and audacity, experts say.
Often flirtatious, Malika managed to seduce many drugs dealers, who abandoned their traditional money laundering contacts in droves. She managed to secure deals with Dutch and Russian drugs dealers, as wel as Damac Properties and London Islamic Bank. She often physically smuggled the money herself to Credit Suisse in Lugano.
She probably overstepped her boundaries because of her own troubled past. Her father was a drugsdealer and was in jail for over 15 years. She was also kidnapped as part of Turkish criminal feuds in Amsterdam.
It was her very success that led to her downfall. Disagreements over payments sparked a series of threats from drugsdealers. Alarmed by a Dutch private eye, Omniyat fired her in March, although the company told Revu she left to "pursue a career abroad".
Malika also had connections with Dutch company Palm Invest, whose officials were arrested in January on suspicion of fraudulently selling bonds on Palm Jumeirah, and Dutch real estate broker AA Properties.
Because there is no extradition treaty between the Netherlands and UAE, Dubai remains a safe haven for Malika.
Experts believe she is a modern Mata Hari, the Dutch exotic dancer and prostitute who became a double agent during World War 1, when she worked for both French and German spymasters.
http://yersinia-crime.blogspot.com/2008/11/malika-karoum-not-fired.html
November 2008
Malika K. not fired
Malika's lawyer Han Jahae informed TV program RTL Boulevard today that his client is currently suspended from her job but that she is not fired.
In itself this is not an uncommon occurrence taht a company suspends an employee that is the focus of unwanted attention, guilty or not. When push comes to shove, companies are about the bottom line and profit and they cannot afford to draw unwanted attention, especially in the real estate sector when the accusation is money laundering.
Therefore private-dick Jaques Smits alegations that Malika is fired after the intelligence service in Dubai 'presented convincing evidence' to her employer is again utter bogus.
The intelligence service doing that would be kinda odd. If there is convincing proof that Malika is guilty of anything, she would have been arrested. The intelligence service or the police would not have gone to her employer with such evidence.
In that same TV program, crime reporter John van de Heuvel confirmed again that in the Netherlands there is no criminal investigation against Malika Karoum.
November 2008
Malika K. - Arrest warrent out for ex-husband
http://yersinia-crime.blogspot.com/2008/11/arrest-warrent-out-for-ex-husband-of.html
There is a warrant out for the arrest of Mohammed Boulnouar. Several customers of his travelagency have filed charges of fraud against him when they found out that the money they had saved up and paid to Boulnouar for the hadj to Mekka had vanished and that they would not travel.
Boulnouar claims that he was the victim of a robbery on Friday 31 Okt when he wanted to deliver about 300.000 Euro's in cash and several hundred passports to Royal Jordanian Airways. Supposedly, the robbers, who were not seen by any one but Boulnouar had told him they were sent by 'Malika'.
Malika Karoum is Boulnouars ex-wife who is engaged in a fierce custody battle with Mohammed Boulnouar that has led Boulnouar and self proclaimed kid-hunter Jacques Smit to spread serious but unsubstantiated rumours about her.
Boulnouars customers do not believe that he was robbed. Oddly enough some of them were told by another employee of the travelagency that if they paid another 1500 euro's they would be able to travel. Odd of course if the pasports are also stolen.
Boulnouar is in hiding since last monday November 3. His partner in the travelagency however says that he is not in hiding but too shocked to talk to anyone.
The money was not insured. The insurance was only valid during transport with a backup car following the transport but it has never come to that.
International intelligence services are chasing a 32 year old Moroccan born Dutch former spy agent, who was stationed in Dubai, and became a key figure in drug-money laundering.
Dutch weekly Revu uncovered the story this week in a six page article.
Although trained in the Netherlands, Malika Karoum worked for international intelligence services and was stationed in Dubai late 2006 in particular to uncover drug (money) trafficking networks.
Instead, she masterminded a drug-money laundering operation herself of over 100 million euros, intelligence sources told Revu. Her money-laundering venture was nothing short of extraordinary in terms of its scope and audacity, experts say.
Often flirtatious, Malika managed to seduce many drugs dealers, who abandoned their traditional money laundering contacts in droves. She managed to secure deals with Dutch and Russian drugs dealers, as wel as Damac Properties and London Islamic Bank. She often physically smuggled the money herself to Credit Suisse in Lugano.
She probably overstepped her boundaries because of her own troubled past. Her father was a drugsdealer and was in jail for over 15 years. She was also kidnapped as part of Turkish criminal feuds in Amsterdam.
It was her very success that led to her downfall. Disagreements over payments sparked a series of threats from drugsdealers. Alarmed by a Dutch private eye, Omniyat fired her in March, although the company told Revu she left to "pursue a career abroad".
Malika also had connections with Dutch company Palm Invest, whose officials were arrested in January on suspicion of fraudulently selling bonds on Palm Jumeirah, and Dutch real estate broker AA Properties.
Because there is no extradition treaty between the Netherlands and UAE, Dubai remains a safe haven for Malika.
Experts believe she is a modern Mata Hari, the Dutch exotic dancer and prostitute who became a double agent during World War 1, when she worked for both French and German spymasters.
http://yersinia-crime.blogspot.com/2008/11/malika-karoum-not-fired.html
November 2008
Malika K. not fired
Malika's lawyer Han Jahae informed TV program RTL Boulevard today that his client is currently suspended from her job but that she is not fired.
In itself this is not an uncommon occurrence taht a company suspends an employee that is the focus of unwanted attention, guilty or not. When push comes to shove, companies are about the bottom line and profit and they cannot afford to draw unwanted attention, especially in the real estate sector when the accusation is money laundering.
Therefore private-dick Jaques Smits alegations that Malika is fired after the intelligence service in Dubai 'presented convincing evidence' to her employer is again utter bogus.
The intelligence service doing that would be kinda odd. If there is convincing proof that Malika is guilty of anything, she would have been arrested. The intelligence service or the police would not have gone to her employer with such evidence.
In that same TV program, crime reporter John van de Heuvel confirmed again that in the Netherlands there is no criminal investigation against Malika Karoum.
November 2008
Malika K. - Arrest warrent out for ex-husband
http://yersinia-crime.blogspot.com/2008/11/arrest-warrent-out-for-ex-husband-of.html
There is a warrant out for the arrest of Mohammed Boulnouar. Several customers of his travelagency have filed charges of fraud against him when they found out that the money they had saved up and paid to Boulnouar for the hadj to Mekka had vanished and that they would not travel.
Boulnouar claims that he was the victim of a robbery on Friday 31 Okt when he wanted to deliver about 300.000 Euro's in cash and several hundred passports to Royal Jordanian Airways. Supposedly, the robbers, who were not seen by any one but Boulnouar had told him they were sent by 'Malika'.
Malika Karoum is Boulnouars ex-wife who is engaged in a fierce custody battle with Mohammed Boulnouar that has led Boulnouar and self proclaimed kid-hunter Jacques Smit to spread serious but unsubstantiated rumours about her.
Boulnouars customers do not believe that he was robbed. Oddly enough some of them were told by another employee of the travelagency that if they paid another 1500 euro's they would be able to travel. Odd of course if the pasports are also stolen.
Boulnouar is in hiding since last monday November 3. His partner in the travelagency however says that he is not in hiding but too shocked to talk to anyone.
The money was not insured. The insurance was only valid during transport with a backup car following the transport but it has never come to that.
Wednesday, 12 November 2008
Speculators take $57 billion in hot money out of UAE
Speculators take $57 billion in hot money out of UAE
Global currency speculators withdrew nearly $57 billion (Dh209bn) in hot money from the UAE banks at the end of summer, but such funds have been offset by massive government cash injections, a key Saudi bank said yesterday.
Besides cash facilities by the Central BankCentral Bank and federal authorities, soaring government deposits with local banks would allow them to maintain a relatively strong lending ability, the Saudi American Bank (Samba) said.Samba in its recent economic bulletin said: "The blanket support to banks from the government should bolster confidence in the UAE financial sector, and there are signs of an easing in liquidity conditions.
These government actions will help alleviate banks' constraints and support domestic credit growth, albeit at a substantially slower rate than the 40 per cent year on year recorded through June."In particular, the placement of large government deposits with national banks would help offset the recent withdrawal of large amounts of hot money which had flowed in betting on a revaluation of the exchange rate... no official statistics are available on such flows, but foreigners are estimated to have held $57bn in deposits in June," it said."Government deposits with banks would also help them manage in the case of difficulties in securing funds from wholesale credit markets."
Central BankCentral Bank Governor Sultan bin Nasser Al Suwaidi, confirmed recently that most of the "hot money" had exited the country as speculation about an appreciation of the dirham against the US dollar largely abated.Speculation had mounted in previous months that the UAE and its GCC partners would revalue their currencies following a sharp decline in dollar's value.Such expectations had led to a sharp increase in foreign cash flow into GCC banks.
By Nadim Kawach
© Emirates Business 24/7 2008
Global currency speculators withdrew nearly $57 billion (Dh209bn) in hot money from the UAE banks at the end of summer, but such funds have been offset by massive government cash injections, a key Saudi bank said yesterday.
Besides cash facilities by the Central BankCentral Bank and federal authorities, soaring government deposits with local banks would allow them to maintain a relatively strong lending ability, the Saudi American Bank (Samba) said.Samba in its recent economic bulletin said: "The blanket support to banks from the government should bolster confidence in the UAE financial sector, and there are signs of an easing in liquidity conditions.
These government actions will help alleviate banks' constraints and support domestic credit growth, albeit at a substantially slower rate than the 40 per cent year on year recorded through June."In particular, the placement of large government deposits with national banks would help offset the recent withdrawal of large amounts of hot money which had flowed in betting on a revaluation of the exchange rate... no official statistics are available on such flows, but foreigners are estimated to have held $57bn in deposits in June," it said."Government deposits with banks would also help them manage in the case of difficulties in securing funds from wholesale credit markets."
Central BankCentral Bank Governor Sultan bin Nasser Al Suwaidi, confirmed recently that most of the "hot money" had exited the country as speculation about an appreciation of the dirham against the US dollar largely abated.Speculation had mounted in previous months that the UAE and its GCC partners would revalue their currencies following a sharp decline in dollar's value.Such expectations had led to a sharp increase in foreign cash flow into GCC banks.
By Nadim Kawach
© Emirates Business 24/7 2008
Monday, 10 November 2008
Tuesday, 14 October 2008
Khaleej Times Online - Shaikh Mohammed orders transfer of Dhs70 bn to the Ministry of Finance
Khaleej Times Online - Shaikh Mohammed orders transfer of Dhs70 bn to the Ministry of Finance
14 October 2008
Dubai -
The Vice President and Prime Minister of UAE and Ruler of Dubai His Highness Shaikh Mohammed bin Rashid Al Maktoum, has ordered the transfer of Dhs70 billion to the Ministry of Finance so that it can inject liquidity into the national banking sector.
The move followed the instructions of President His Highness Shaikh Khalifa bin Zayed Al Nahyan. The order means that Dhs120 billion (US$32.7 billion) has been provided for the banking sector over the last month. On Sheikh Mohammed's instructions, the Ministry of Finance and the UAE Central Bank have been assigned the task of injecting the liquidity into the banking sector.
Shaikh Mohammed ordered the setting up of a suitably qualified committee composed of the officials of ministries of Finance and Economy and the Central Bank to follow up these instructions, as well as to handle the relevant the Cabinet procedures.
The step further indicates the country's leadership to provide all required guarantees to support the banking sector in the UAE and to protect it from the global financial crisis. It also reflects the quick response of the UAE government in term of providing whatever could guarantee stability for the financial and banking sector in the country.
On Sept. 22nd, the Central Bank allocated Dhs50 billion (US$13.6 billion) as facilities for the banks operating in the country so that they could use them if required, as part of the economic measures taken by the UAE to support the banks to avoid the current global financial crisis.
14 October 2008
Dubai -
The Vice President and Prime Minister of UAE and Ruler of Dubai His Highness Shaikh Mohammed bin Rashid Al Maktoum, has ordered the transfer of Dhs70 billion to the Ministry of Finance so that it can inject liquidity into the national banking sector.
The move followed the instructions of President His Highness Shaikh Khalifa bin Zayed Al Nahyan. The order means that Dhs120 billion (US$32.7 billion) has been provided for the banking sector over the last month. On Sheikh Mohammed's instructions, the Ministry of Finance and the UAE Central Bank have been assigned the task of injecting the liquidity into the banking sector.
Shaikh Mohammed ordered the setting up of a suitably qualified committee composed of the officials of ministries of Finance and Economy and the Central Bank to follow up these instructions, as well as to handle the relevant the Cabinet procedures.
The step further indicates the country's leadership to provide all required guarantees to support the banking sector in the UAE and to protect it from the global financial crisis. It also reflects the quick response of the UAE government in term of providing whatever could guarantee stability for the financial and banking sector in the country.
On Sept. 22nd, the Central Bank allocated Dhs50 billion (US$13.6 billion) as facilities for the banks operating in the country so that they could use them if required, as part of the economic measures taken by the UAE to support the banks to avoid the current global financial crisis.
Sunday, 12 October 2008
UAE guarantees banks and deposits - The National Newspaper
UAE guarantees banks and deposits - The National Newspaper: "UAE guarantees banks and deposits"
Bill Spindle
Last Updated: October 12. 2008 2:19PM UAE / GMT The Government moved aggressively to underpin the country’s banking system, guaranteeing all banks and deposits as part of a sweeping financial package.
The decision, released by the government news agency WAM, was accompanied by a statement from Sheikh Khalifa bin Zayed, President of the UAE and Ruler of Abu Dhabi, saying that the economy is strong and the local financial sector is efficient.
The move comes amid unprecedented turmoil in the global financial system. Heads of the developed economies of the world, along with the International Monetary Fund, are meeting in Washington, DC to come up with measures to stem the haemorrhaging in markets.
Local banks have steered clear of many of the problems plaguing lenders elsewhere. But the impact of the global financial crisis has hit here in recent weeks as money has rushed out of the country’s banks and financial markets amid the larger crisis. That has sent equity markets plunging and constrained bank lending as deposits have shrunk and borrowing from abroad has become markedly more expensive or impossible for many banks.
Last week, countries around the world started a round of historic, but piecemeal, attempts to protect their financial sectors and economies as panic spread. Several countries, including Ireland, Germany, the UK and Japan, have moved to protect all consumer deposits or raised the limits on deposit protection. Meanwhile, pressure has grown for big economies, including the US, to begin nationalizing banks, as Iceland did last week.
Many banks in the UAE are already owned in part by the government, so many investors and depositors had long assumed the government would stand behind them. But the announcement was the first explicit moves the government has taken to do so.
bspindle@thenational.ae
Bill Spindle
Last Updated: October 12. 2008 2:19PM UAE / GMT The Government moved aggressively to underpin the country’s banking system, guaranteeing all banks and deposits as part of a sweeping financial package.
The decision, released by the government news agency WAM, was accompanied by a statement from Sheikh Khalifa bin Zayed, President of the UAE and Ruler of Abu Dhabi, saying that the economy is strong and the local financial sector is efficient.
The move comes amid unprecedented turmoil in the global financial system. Heads of the developed economies of the world, along with the International Monetary Fund, are meeting in Washington, DC to come up with measures to stem the haemorrhaging in markets.
Local banks have steered clear of many of the problems plaguing lenders elsewhere. But the impact of the global financial crisis has hit here in recent weeks as money has rushed out of the country’s banks and financial markets amid the larger crisis. That has sent equity markets plunging and constrained bank lending as deposits have shrunk and borrowing from abroad has become markedly more expensive or impossible for many banks.
Last week, countries around the world started a round of historic, but piecemeal, attempts to protect their financial sectors and economies as panic spread. Several countries, including Ireland, Germany, the UK and Japan, have moved to protect all consumer deposits or raised the limits on deposit protection. Meanwhile, pressure has grown for big economies, including the US, to begin nationalizing banks, as Iceland did last week.
Many banks in the UAE are already owned in part by the government, so many investors and depositors had long assumed the government would stand behind them. But the announcement was the first explicit moves the government has taken to do so.
bspindle@thenational.ae
Saturday, 11 October 2008
UAE central bank chief in US for crisis talks - Banking & Finance - ArabianBusiness.com
UAE central bank chief in US for crisis talks - Banking & Finance - ArabianBusiness.com
The Central Bank of the UAE announced on Saturday that Governor Sultan Nasser al-Suweidi was in Washington to discuss the global liquidity crisis at meetings with world leaders.
Suweidi will attend meetings of the International Monetary Fund and World Bank to mainly discuss the liquidity crunch and financial markets turmoil, especially in industrialised nations, the bank said in a statement.
Suweidi said national and foreign banks are in a "strong financial position" and that the majority of their assets are in the UAE, according to the statement.
The Central Bank of the UAE announced on Saturday that Governor Sultan Nasser al-Suweidi was in Washington to discuss the global liquidity crisis at meetings with world leaders.
Suweidi will attend meetings of the International Monetary Fund and World Bank to mainly discuss the liquidity crunch and financial markets turmoil, especially in industrialised nations, the bank said in a statement.
Suweidi said national and foreign banks are in a "strong financial position" and that the majority of their assets are in the UAE, according to the statement.
Thursday, 9 October 2008
Dubai property on red alert
Dubai property on red alert: "Dubai property on red alert"
The Dubai government likes to use the annual Cityscape real estate exhibition to build confidence in the emirate and build interest in its property market. Massive schemes are announced and ever-more ambitious plans are hatched.
But this year's exhibition has come amid falling local stock markets - Saudi Arabia fell 10 per cent on Monday - and growing concerns that the international financial crisis will bring about a correction to what is widely viewed as a frothy market.
True to form, NakheelNakheel, which is owned by the government of Dubai, at the weekend launched a Dh140bn ($38bn) project to build the world's tallest tower and inland harbour. On Monday another government company, Meraas Development, said it would redevelop a swath of the city over 12 years in a Dh350bn project to be called Jumeira Gardens. The intention is that this scheme too should include another of the world's tallest towers and reclaimed islands off the coast.
"Dubai has always reinvented itself and maintained growth," Sina al Kazim, chief executive of Meraas, said.
Whereas in years gone by retail investors have tried to gain access to what is supposed to be a business to business event, this year the organisers had no trouble in keeping the public out.
One locally-based real estate broker admitted that there was "a good deal of nervousness" among exhibitors as to whether Dubai's growth story of the past six years was coming to an end.
Dubai is the most exposed of the local economies because its local real estate market is supported by foreign investment and because, as an emirate, it has little in the way of natural resources. A home-grown credit squeeze caused by excess lending and insufficient deposit taking has added to the disquiet.
On Monday, as the real estate announcements came, property stocks led falls in the UAE's two main stock markets. EmaarEmaar, Dubai's main developer, fell 10.7 per cent, while TamweelTamweel, a mortgage lender that is to be merged with AmlakAmlak, was down 10.5 per cent. In Abu Dhabi, AldarAldar, the emirate's leading developer, fell more than 9 per cent.
One banker described the situation as "belated panic".
Credit default spreads on Dubai debt, especially real estate linked borrowing, have ballooned as institutions bet that the pace of growth in the property market will not be maintained.
But Dubai developers sought to assuage concerns.
Mr Kazim said he had a positive reaction in initial talks with local institutions about funding his development, which has caused controversy as it is forcing out local families and expatriate labourers from villas in Satwa and Jumeirah, some of the most established parts of the fast changing city.
Dubai Properties, a developer owned by Sheikh Mohammed bin Rashid Al Maktoum, the Dubai ruler, also said publicly that its credit lines were secure. Jade al Khalil, marketing manager, said he believed confidence in the Dubai market could be sustained.
TamweelTamweel, the troubled Islamic mortgage lender that has been at the centre of corruption investigations, which have done so much to harm Dubai's reputation, said that it was joining other lenders in raising the deposit that investors must put down in order to secure financing.
Analysts said that the government linked property developers are fundamentally sound and will be backed by state funds if they get into trouble. They added that UAE authorities could intervene if they felt the market was in danger of crashing.
Some economists predicted a controlled slowing down rather than a sharp correction, which would be healthy given the steep increase in prices this year, as well as speculative trading.
"I don't think it's going to jeopardise or derail the economy," Marios Maratheftis, head of research at Standard Chartered, said.
"I think we could have a couple of years of slow growth, a couple of years of underperforming markets as well, but I don't think it will derail what will happen here in the future," he said. "Having a mild correction will probably be beneficial for the economy and if the market is going to price in some risk in the decision making, especially in real estate, that will be beneficial."
Others, however, were anticipating a sharper correction and greater consolidation in the real estatesector.
"I think that some kind of sharp correction has to happen because of the way prices have gone up and the fact that global credit conditions are very tight. The big issue is how fast the recovery comes," said another banker, who asked not to be named. "The stock markets are a barometer of the real estate market - it's telling you investors are very concerned right now."
He said that there would have to be consolidation because "some of the more aggressive developers don't have the cash flow to build what they have sold".
Another banker said real estate companies in the UAE have been seeking advice from banks about potential merger and acquisitions.
By Simeon Kerr in Dubai and Andrew England in Abu Dhabi
© Copyright The Financial Times Ltd 2008. Privacy policy.
The Dubai government likes to use the annual Cityscape real estate exhibition to build confidence in the emirate and build interest in its property market. Massive schemes are announced and ever-more ambitious plans are hatched.
But this year's exhibition has come amid falling local stock markets - Saudi Arabia fell 10 per cent on Monday - and growing concerns that the international financial crisis will bring about a correction to what is widely viewed as a frothy market.
True to form, NakheelNakheel, which is owned by the government of Dubai, at the weekend launched a Dh140bn ($38bn) project to build the world's tallest tower and inland harbour. On Monday another government company, Meraas Development, said it would redevelop a swath of the city over 12 years in a Dh350bn project to be called Jumeira Gardens. The intention is that this scheme too should include another of the world's tallest towers and reclaimed islands off the coast.
"Dubai has always reinvented itself and maintained growth," Sina al Kazim, chief executive of Meraas, said.
Whereas in years gone by retail investors have tried to gain access to what is supposed to be a business to business event, this year the organisers had no trouble in keeping the public out.
One locally-based real estate broker admitted that there was "a good deal of nervousness" among exhibitors as to whether Dubai's growth story of the past six years was coming to an end.
Dubai is the most exposed of the local economies because its local real estate market is supported by foreign investment and because, as an emirate, it has little in the way of natural resources. A home-grown credit squeeze caused by excess lending and insufficient deposit taking has added to the disquiet.
On Monday, as the real estate announcements came, property stocks led falls in the UAE's two main stock markets. EmaarEmaar, Dubai's main developer, fell 10.7 per cent, while TamweelTamweel, a mortgage lender that is to be merged with AmlakAmlak, was down 10.5 per cent. In Abu Dhabi, AldarAldar, the emirate's leading developer, fell more than 9 per cent.
One banker described the situation as "belated panic".
Credit default spreads on Dubai debt, especially real estate linked borrowing, have ballooned as institutions bet that the pace of growth in the property market will not be maintained.
But Dubai developers sought to assuage concerns.
Mr Kazim said he had a positive reaction in initial talks with local institutions about funding his development, which has caused controversy as it is forcing out local families and expatriate labourers from villas in Satwa and Jumeirah, some of the most established parts of the fast changing city.
Dubai Properties, a developer owned by Sheikh Mohammed bin Rashid Al Maktoum, the Dubai ruler, also said publicly that its credit lines were secure. Jade al Khalil, marketing manager, said he believed confidence in the Dubai market could be sustained.
TamweelTamweel, the troubled Islamic mortgage lender that has been at the centre of corruption investigations, which have done so much to harm Dubai's reputation, said that it was joining other lenders in raising the deposit that investors must put down in order to secure financing.
Analysts said that the government linked property developers are fundamentally sound and will be backed by state funds if they get into trouble. They added that UAE authorities could intervene if they felt the market was in danger of crashing.
Some economists predicted a controlled slowing down rather than a sharp correction, which would be healthy given the steep increase in prices this year, as well as speculative trading.
"I don't think it's going to jeopardise or derail the economy," Marios Maratheftis, head of research at Standard Chartered, said.
"I think we could have a couple of years of slow growth, a couple of years of underperforming markets as well, but I don't think it will derail what will happen here in the future," he said. "Having a mild correction will probably be beneficial for the economy and if the market is going to price in some risk in the decision making, especially in real estate, that will be beneficial."
Others, however, were anticipating a sharper correction and greater consolidation in the real estatesector.
"I think that some kind of sharp correction has to happen because of the way prices have gone up and the fact that global credit conditions are very tight. The big issue is how fast the recovery comes," said another banker, who asked not to be named. "The stock markets are a barometer of the real estate market - it's telling you investors are very concerned right now."
He said that there would have to be consolidation because "some of the more aggressive developers don't have the cash flow to build what they have sold".
Another banker said real estate companies in the UAE have been seeking advice from banks about potential merger and acquisitions.
By Simeon Kerr in Dubai and Andrew England in Abu Dhabi
© Copyright The Financial Times Ltd 2008. Privacy policy.
Wednesday, 8 October 2008
UAE commercial property market slowdown - Real Estate - ArabianBusiness.com
UAE commercial property market slowdown - Real Estate - ArabianBusiness.com
Wednesday, 08 October 2008
Commercial real estate markets in Dubai and Abu Dhabi witnessed a slight slowdown during the third quarter, with trading in August and September relatively flat, realtor Better Homes said in a report on Wednesday.
Better Homes put the lack of activity in the markets down to a seasonal slowdown and the Dubai government’s ongoing corruption probe, which it said had “tainted a negative picture on the real estate market”.
Better Homes said sales had also been affected by a new mortgage law that had made it harder to obtain finance and restrictions on immediate resale of properties by certain developers, which was “starting to push the speculative investors out of the market”, it said.
Demand for office space in Dubai outpaced Abu Dhabi during the quarter - especially in areas such as Meydan, Jumeirah Lake Towers and Dubai Waterfront - but Dubai was starting to show signs of distress among short-term investors, Better Homes said.
It pointed to an example of a commercial building in Nakheel’s Dubai Waterfront development being sold for a negative premium and warned of these sales were likely “as global markets squeeze liquidity and local banks reign in access to debt finance”.
In Abu Dhabi, Better Homes said the sharp increase in office rates during the second quarter post Cityscape Abu Dhabi did not continue into Q3 and prices were mainly flat for the quarter.
It said demand had shifted from Al Reem Island to Al Raha Beach, where premiums offer more upside potential.
Wednesday, 08 October 2008
Commercial real estate markets in Dubai and Abu Dhabi witnessed a slight slowdown during the third quarter, with trading in August and September relatively flat, realtor Better Homes said in a report on Wednesday.
Better Homes put the lack of activity in the markets down to a seasonal slowdown and the Dubai government’s ongoing corruption probe, which it said had “tainted a negative picture on the real estate market”.
Better Homes said sales had also been affected by a new mortgage law that had made it harder to obtain finance and restrictions on immediate resale of properties by certain developers, which was “starting to push the speculative investors out of the market”, it said.
Demand for office space in Dubai outpaced Abu Dhabi during the quarter - especially in areas such as Meydan, Jumeirah Lake Towers and Dubai Waterfront - but Dubai was starting to show signs of distress among short-term investors, Better Homes said.
It pointed to an example of a commercial building in Nakheel’s Dubai Waterfront development being sold for a negative premium and warned of these sales were likely “as global markets squeeze liquidity and local banks reign in access to debt finance”.
In Abu Dhabi, Better Homes said the sharp increase in office rates during the second quarter post Cityscape Abu Dhabi did not continue into Q3 and prices were mainly flat for the quarter.
It said demand had shifted from Al Reem Island to Al Raha Beach, where premiums offer more upside potential.
Monday, 6 October 2008
Gulf bourses tumble on global concerns - Financial Markets - ArabianBusiness.com
Gulf bourses tumble on global concerns - Financial Markets - ArabianBusiness.com
Dubai Sunday, 5th october 2008
Gulf Arab bourses fell on Sunday as investors rushed to sell stocks after a $700 billion US rescue plan failed to ease qualms over global financial turmoil.
Many foreign investors also fled stock markets in the world's top oil exporting region as global worries over the health of the world economy escalated."Retail investors are panicking because of what is happening in global markets. The rescue plan failed to comfort investors as they believe it will take a couple of months for its effects to be felt," said Adel Nasr, broker at United Securities brokerage.
Real estate stocks led the drop in the United Arab Emirates, with Emaar Properties posting its sharpest one-day decline in at least two years and Aldar Properties and Sorouh Real Estate both falling more than 9 percent.
News of a proposed merger between Dubai-based Islamic mortgage lenders Tamweel and Amlak Finance pushed the shares of the rival firms lower as investors awaited more clarity on the move. "One view is the merger [talks] between Tamweel and Amlak is negative becuase it is not clear why they are doing it now, especially when we have mortgage problems globally and there is a liquidity problem in the UAE and banking sector," said Sherif Abdelkhalek, institutions accounts manager at Beltone Financial.Banks led Kuwait's and Qatar's benchmark to their biggest single-day drop in three weeks."
The $700 billion move has resolved the issue only for the short term and for the US.
It has done nothing for the rest of the world," said Mohamed Yasin, managing director of Shuaa Securities."
The problem we're facing today is not an equity problem but a liquidity problem across the banking system around the world and the Gulf Arab region is part of that... the money pumped into the system is not enough.
"Saudi Arabia's market was closed for a holiday.
Dubai Sunday, 5th october 2008
Gulf Arab bourses fell on Sunday as investors rushed to sell stocks after a $700 billion US rescue plan failed to ease qualms over global financial turmoil.
Many foreign investors also fled stock markets in the world's top oil exporting region as global worries over the health of the world economy escalated."Retail investors are panicking because of what is happening in global markets. The rescue plan failed to comfort investors as they believe it will take a couple of months for its effects to be felt," said Adel Nasr, broker at United Securities brokerage.
Real estate stocks led the drop in the United Arab Emirates, with Emaar Properties posting its sharpest one-day decline in at least two years and Aldar Properties and Sorouh Real Estate both falling more than 9 percent.
News of a proposed merger between Dubai-based Islamic mortgage lenders Tamweel and Amlak Finance pushed the shares of the rival firms lower as investors awaited more clarity on the move. "One view is the merger [talks] between Tamweel and Amlak is negative becuase it is not clear why they are doing it now, especially when we have mortgage problems globally and there is a liquidity problem in the UAE and banking sector," said Sherif Abdelkhalek, institutions accounts manager at Beltone Financial.Banks led Kuwait's and Qatar's benchmark to their biggest single-day drop in three weeks."
The $700 billion move has resolved the issue only for the short term and for the US.
It has done nothing for the rest of the world," said Mohamed Yasin, managing director of Shuaa Securities."
The problem we're facing today is not an equity problem but a liquidity problem across the banking system around the world and the Gulf Arab region is part of that... the money pumped into the system is not enough.
"Saudi Arabia's market was closed for a holiday.
Friday, 12 September 2008
Gulfnews: Pentagon notifies Congress of $7b defence deal with UAE - Sent Using Google Toolbar
Gulfnews: Pentagon notifies Congress of $7b defence deal with UAE
Gulf News Report
|
Dubai: The US Defence Department has proposed the sale of an advanced US missile defence system valued at up to $7 billion (about Dh25.7 billion) to the UAE, the Pentagon said in a statement released on Thursday. Gulf News has learnt that the deal has been under discussion between the UAE and the United States for the past several years and has nothing to do with recent developments in the region. The Pentagon's Missile Defence Agency said in a proposal letter sent on Monday to Congressional committees that it wants to sell the Terminal High Altitude Area Defence system, also known as THAAD, to the UAE, according to Reuters. The missile shield, built by Lockheed Martin Corp with a system radar from Raytheon Co, is designed to shoot down incoming missiles in their final stage as they fall toward targets. |
It is part of a planned US missile defence shield in a network that includes a variety of ground-based, ship-based and airborne missiles and tools.
Under the proposal, UAE would buy equipment that includes three THAAD fire units, 147 missiles, nine launchers and four radar sets. Gulf News has also learnt that the deal will be under review for 28 days.
Sunday, 7 September 2008
Gulf property market: a never ending boom? - The National Newspaper - Sent Using Google Toolbar
Gulf property market: a never ending boom? - The National Newspaper
The sub-prime mortgage market crash was the first salvo in a global jitter concerning the health of the property market. Economies that had registered record property price rises are now reporting successive monthly falls, adding to general unease and uncertainty.
In the UK, where more prudent mortgage lending practices were supposed to be in operation, the news on the property front is grim. Over the past six months, UK house prices have dropped at an annual rate of 11.4 per cent, and over the past three months at an alarming 16.1 per cent. The spectre of the crash in the early 1990s looms and even Alistair Darling, the chancellor of the exchequer, has forecast a 30 per cent fall in house prices before things get better.
What has gone wrong? Are markets in different geographic locations and going through different economic cycles, immune from real estate price tremors in other parts of the world? The key is a perception on whether a particular real estate market has reached a critical asset price "bubble". Bubbles burst at some stage, but it is the exact point of the impact that is uncertain, as well as the consequent speed of a fall in prices.
In the Gulf, there is no sign yet that real estate prices have fallen, but there are also signs that the massive infrastructure and housing construction boom is beginning to face supply bottlenecks. With steel and cement prices rocketing, some projects are being quietly delayed, while others in the drawing stage are being shelved. While each of the Gulf countries has its own real estate market cycle, a reversal in the fortune of one Gulf market might have a knock-on effect on others.
There is some merit for a pause in any upward march in real estate prices. In the western economies, a gentle collapse in the housing market bubble can be socially beneficial. When prices were rising sharply, it was the younger and generally poorer people in society who were left out of the property ownership ladder, while older and richer people, who already owned houses, became better off. In the Gulf, a similar phenomenon was beginning to emerge but, unlike the West, it was based on resource allocation to different real estate projects.
Younger Gulf nationals wishing to buy their first homes were suddenly being outbid by rising prices, as construction resources were channelled to more lucrative penthouses, second homes or cost-plus government infrastructure projects.
In the West, the housing market began to feel some strain when the ratio of earnings to house prices deteriorated. In the final analysis, it is the share of a household's income that is taken up paying off the mortgages – even at low interest rates – and the ability of young first-time buyers to get such mortgages, that determines purchasing-power ability. When house prices are rising more than 30 per cent a year, this makes buying a home out of reach to many. What saves some markets is the infusion of liquidity from external sources. London property, for example, was boosted by different waves of buying from Americans, Arabs, Asians and east Europeans.
Similarly in the Gulf, one cannot talk about a homogeneous market. For whom are the different real estate projects being built? Construction in some Gulf states is trying to attract buyers from other Gulf states which have either more purchasing power or a shortage of supply. As such, if economic circumstances change in these countries, or their own construction sector starts to generate enough supply, then these states will be left with a massive over capacity and the beginning of a price-bubble burst.
Demographics is a key factor regarding which Gulf property market will flourish and which will ease off. For countries such as Saudi Arabia and Oman, with larger and a younger growing population, there is a genuine need for affordable first-time homes, rather than luxury second homes or penthouses. For such countries, natural demand exists and it is up to imaginative and cost-conscious construction companies to meet this viable long-term demand. Other Gulf countries with smaller population bases seem to construct real estate projects and then create demand after the fact through slick marketing and an appeal to different "lifestyles".
There is a limit to this type of demand creation, though. At some stage supply will outpace demand and prices will ease unless a new round of external investors and "new" demand is generated to take up the slack of "older" demand.
Again, for some Gulf countries, the marketing of a lifestyle, with free sunshine all year round thrown in, has tapped non-Gulf expatriates, ranging from movie stars to football players, but the supply of these VIPs is limited, unlike the less glamorous but larger home-grown population demand of other Gulf countries. Should expatriates also begin to feel the chill of economic recession back home, and declining property values, then prospects of a second home in the Gulf becomes less attractive.
Economic globalisation has a price.
The Gulf is helped by government-led infrastructure projects, with Saudi Arabia taking the lion's share in the form of various economic mega cities. Such initiatives will take up the slack from private sector projects, and reduce the effects of a slowdown.
In the long run, even such mega projects are at the mercy of oil price fortunes and government budget surpluses. Should such factors coalesce – foreign purchases slowing, high commodity prices, high inflation and a higher cost of borrowing – then the Gulf property boom will start to ease back.
Dr. Mohamed Ramady is a former banker and Visiting Associate Professor, Finance and Economics Dept. at King Fahd University of Petroleum and Minerals, Saudi Arabia.
Rera and Emcredit to profile realty buyers - Sent Using Google Toolbar
Rera and Emcredit to profile realty buyers original published emiratesBusiness 24-7
A new financial product to share information about individual real estate buyers with sellers in the country's property market is being developed by the Real Estate Regulatory Agency (Rera) and the UAE's credit bureau Emcredit.
Under the system, called "Property Profile Solution", the credit history and credit worthiness of buyers will be available to real estate and property companies to enable them to make sounder financial decisions about how and whom to sell. Emcredit will gather information about a buyer from his/her home country and will be in touch with other credit bureaus worldwide for this purpose.
The information thus gathered will be restricted and not available in the public domain, said Zaid Kamhawi, Chief Business Officer of Emcredit. "We are still waiting for a federal law to be passed regarding this matter. We hope it will be passed by the end of this year. Right now it is under review," he said.
According to Emcredit, the Property Profile Solution will be provided to the real estate market through real estate agencies, mortgage providers, conveyors, evaluators and other realty industry players. "The solution will be based on Rera's inputs which will include access to information, such as who owns a particular property, thus getting to the bottom of the information of individual property owners in Dubai," Kamhawi said.
Rera became a member of Emcredit in April. "Rera will make sure the right information is shared. Some of that information will be important, such as a buyer's details, but this will not be for everyone," said Mohammed Sultan Al Thani, Assistant Director-General of the Dubai Land Department.
Emcredit will ensure a balance between protecting the privacy of the individual and facilitating the flow of information. "When a lender enquires about a borrower, we will make sure we get the consent of the borrower before delivering the report," said Kamhawi.
Emcredit is targeting the first quarter of 2009 to release the Property Profile Solution into the real estate market.
Saturday, 6 September 2008
Western realty investors turning away from Gulf - Sent Using Google Toolbar
Western realty investors turning away from Gulf
Western investors have cooled on Gulf property markets, leaving the scene for local billionaires at least until global credit conditions ease – or markets in the region become more open and predictable.
In Dubai, Abu Dhabi and Kuwait, it is domestic investors who are again calling the shots in real estate, now that debt-starved British and United States property buyers have refocused on other areas they see as cheaper and more competitive.
"Given current economic conditions, US and British institutions are taking a lot of convincing to splash out in the Gulf," said Fadi Moussalli, a director in Jones Lang LaSalle's Dubai-based International Capital Group.
"There is less enthusiasm for Gulf property because foreigners are busy dealing with crises elsewhere," Moussalli said.
Before the credit crunch, Western property buyers were making good progress in opening up fledgling Gulf property markets. But the balance of power has shifted back to local businessmen and their wealth.
Citing data from emerging markets researcher Reidin, Jones Lang LaSalle said less than a fifth of real estate purchases in Dubai in 2008 so far were made by European or US investors.
"A lot of people are [still] looking in the Middle East but it tends to be dominated by local capital," said Charles Graham, a principal at property fund manager Europa Capital. "There is a lot of it [local investment cash] and the return requirements are for the most part less demanding than our own," Graham said, adding he was not tempted yet to break away from Europa's core markets to gain a foothold in the Gulf.
Capital constraints and worries at home are not the only issues driving western investors away from the Gulf. Some believe prices in hotspots like Dubai are close to peaking after years of sky-high growth, while others feel precious capital can earn higher yields closer to home.
House prices in Dubai, which have surged almost 80 per cent since the start of 2007, were likely to fall 15 per cent after a 2009 peak as massive increase in supply overwhelms demand, a Reuters poll showed.
Others are concerned that a clutch of measures to combat property price inflation, such as rental caps, trading restrictions and proposals for a property capital gains tax have made Gulf property investment risky.
Tuesday, 19 August 2008
Having an invested interest - Banking & Finance - ArabianBusiness.com
Having an invested interest - Banking & Finance - ArabianBusiness.com:
"Jones Lang LaSalle Hotels chief executive Arthur de Haast looks at the region's hotel investment opportunities and explains why greater transparency is essential for the sector to progress.
Who is investing in the Middle East hotel sector at the moment, and where?
The main players are from within the region, and within the region the UAE remains a significant source of capital, so not only are they investing significantly within the UAE but also right across the region - they are the major players. We don't see much change in that in the hotel sector for the foreseeable future."
I think at the moment it's very much a developer's market, so it's the developers who are investing to develop the product.
Now some of those developers are going to reach a point over the next 12 to 24 months where they're going to think, ‘I've done my development, I want to sell out now and move onto my next project rather than be a long-term holder', although there will obviously also be developers who will hold assets for quite some time.
But at the moment one of the challenges regarding the investment market here is that there's actually very little investment market product; there's lots of development activity but very little investment product - i.e. completed hotels - on the market that investors could buy.
So in a sense it's hard to know where the market's going, because without the availability of investment opportunities it's hard to know who is going to be a future investor.
But looking as we do at the global market and the trends in the market, I expect it will continue to be dominated by the region, so if investment product does come up for sale I think it will still be acquired by Gulf investors or North African investors.
I think the ripple will go out over time - I think the next wave of investment is likely to be drawn from markets such as Turkey, Russia, the CIS, and the Indian subcontinent.
So do I see a lot of US investment coming in here?
No, not in the near future.
Do I see Australians investing here? No, not in the near future.
I think that the market will have to develop and evolve further, so the first wave of investment is likely to be from countries that are relatively close.How do you see Africa's investment situation progressing?
I don't see Africa being a major player in terms of outbound investment; I think you're already seeing quite a presence in the market here from South Africa, from an operational perspective: you've got Southern Sun, Protea and so on operating here.
So from an operational perspective they're definitely active - from an investment perspective, not so.There's not a lot of capital in the sub-Saharan African continent that's likely to [come into the Middle East]; they've got a lot of opportunities in their own market, so I think they'll focus more on that for the time being.
North Africa I think is a little different; you've got some different dynamics there.
Libya for example, has a strongly oil-based economy and therefore has investment capital available and indeed has been an investor in hotels in the past.
So there are pockets of investment activity in the Northern African market.But no, there won't be any major surge of investment from them in the near future, not in the way we're seeing coming out of the Gulf.
What future impact will the US ‘credit crunch' have on regional investment in hotels in the Middle East?
I don't think it's going to have an impact on the pace of development and the level of investment going into new developments in the region; most of that is being funded within the region, those investors are not dependent on a high-leverage model.
I think a much bigger challenge for the region is the cost inflation, particularly with things like steel and construction materials, and the issue of labour, which is a challenge for both the hospitality and the construction industry.
I think that another area the region could suffer from is if there is a significant slow-down in demand.
Although a high proportion of demand is from the region, this is still a market that is heavily dependent on the inbound traveller, particularly from Europe.
And if there is a significant slow-down from the UK, Germany and so on, that could impact the demand side.
"Jones Lang LaSalle Hotels chief executive Arthur de Haast looks at the region's hotel investment opportunities and explains why greater transparency is essential for the sector to progress.
Who is investing in the Middle East hotel sector at the moment, and where?
The main players are from within the region, and within the region the UAE remains a significant source of capital, so not only are they investing significantly within the UAE but also right across the region - they are the major players. We don't see much change in that in the hotel sector for the foreseeable future."
I think at the moment it's very much a developer's market, so it's the developers who are investing to develop the product.
Now some of those developers are going to reach a point over the next 12 to 24 months where they're going to think, ‘I've done my development, I want to sell out now and move onto my next project rather than be a long-term holder', although there will obviously also be developers who will hold assets for quite some time.
But at the moment one of the challenges regarding the investment market here is that there's actually very little investment market product; there's lots of development activity but very little investment product - i.e. completed hotels - on the market that investors could buy.
So in a sense it's hard to know where the market's going, because without the availability of investment opportunities it's hard to know who is going to be a future investor.
But looking as we do at the global market and the trends in the market, I expect it will continue to be dominated by the region, so if investment product does come up for sale I think it will still be acquired by Gulf investors or North African investors.
I think the ripple will go out over time - I think the next wave of investment is likely to be drawn from markets such as Turkey, Russia, the CIS, and the Indian subcontinent.
So do I see a lot of US investment coming in here?
No, not in the near future.
Do I see Australians investing here? No, not in the near future.
I think that the market will have to develop and evolve further, so the first wave of investment is likely to be from countries that are relatively close.How do you see Africa's investment situation progressing?
I don't see Africa being a major player in terms of outbound investment; I think you're already seeing quite a presence in the market here from South Africa, from an operational perspective: you've got Southern Sun, Protea and so on operating here.
So from an operational perspective they're definitely active - from an investment perspective, not so.There's not a lot of capital in the sub-Saharan African continent that's likely to [come into the Middle East]; they've got a lot of opportunities in their own market, so I think they'll focus more on that for the time being.
North Africa I think is a little different; you've got some different dynamics there.
Libya for example, has a strongly oil-based economy and therefore has investment capital available and indeed has been an investor in hotels in the past.
So there are pockets of investment activity in the Northern African market.But no, there won't be any major surge of investment from them in the near future, not in the way we're seeing coming out of the Gulf.
What future impact will the US ‘credit crunch' have on regional investment in hotels in the Middle East?
I don't think it's going to have an impact on the pace of development and the level of investment going into new developments in the region; most of that is being funded within the region, those investors are not dependent on a high-leverage model.
I think a much bigger challenge for the region is the cost inflation, particularly with things like steel and construction materials, and the issue of labour, which is a challenge for both the hospitality and the construction industry.
I think that another area the region could suffer from is if there is a significant slow-down in demand.
Although a high proportion of demand is from the region, this is still a market that is heavily dependent on the inbound traveller, particularly from Europe.
And if there is a significant slow-down from the UK, Germany and so on, that could impact the demand side.
Thursday, 14 August 2008
Property firm's fury over gloomy Dubai report - Real Estate - ArabianBusiness.com - Sent Using Google Toolbar
Property firm's fury over gloomy Dubai report - Real Estate - ArabianBusiness.com
Dubai-based Union Properties says it is seeking ways to take action against Morgan Stanley, claiming a recent report had a negative impact on its share price.
Morgan Stanley published a report predicting property prices in Dubai could drop by 10 percent by 2010 as an oversupply of housing floods the market.
The investment bank assigned Union Properties, the developer behind plans for F1-theme parks, a base case price of 5.7 dirhams per share.
Morgan Stanley published a report predicting property prices in Dubai could drop by 10 percent by 2010 as an oversupply of housing floods the market.
The investment bank assigned Union Properties, the developer behind plans for F1-theme parks, a base case price of 5.7 dirhams per share.
Since the report's release, the company's share prices have fallen from 5.68 dirhams to 4.89 dirhams on the Dubai Financial Market.
"We're not sure what action we can take as there are no laws against analysts. But we've notified the regulator and we'll see what they decide," Zaid Ghoul, chief financial officer of the firm told Gulf News on Wednesday.
He said Union Properties met with Morgan Stanley in February but nothing was discussed regarding a future report.
Ghoul dismissed the report's claims that housing prices would drop 10 percent as it was not sector-specific.
"The report neglected areas such as affordability and mortgage penetration," Ghoul said.
He also said the report was too general in its analysis and failed to differentiate between the different sectors of the real estate market.
Dubai property prices 'to fall 10% by 2010'
Research claims sharp correction in market is likely as supply of real estate increases.
"We're not sure what action we can take as there are no laws against analysts. But we've notified the regulator and we'll see what they decide," Zaid Ghoul, chief financial officer of the firm told Gulf News on Wednesday.
He said Union Properties met with Morgan Stanley in February but nothing was discussed regarding a future report.
Ghoul dismissed the report's claims that housing prices would drop 10 percent as it was not sector-specific.
"The report neglected areas such as affordability and mortgage penetration," Ghoul said.
He also said the report was too general in its analysis and failed to differentiate between the different sectors of the real estate market.
Dubai property prices 'to fall 10% by 2010'
Research claims sharp correction in market is likely as supply of real estate increases.
Saturday, 9 August 2008
Dubai property watchdog launches Chohan probe - Real Estate - ArabianBusiness.com
Dubai property watchdog launches Chohan probe - Real Estate - ArabianBusiness.com: "Dubai’s real estate watchdog is investigating the Dubai operations of a disqualified UK property director whose firm collapsed, owing creditors around $137m.
Balinder Chohan was founder and sole shareholder of UK Land Investments Limited (UKLI) until it went into administration in April. Now he is CEO of a Dubai-registered company called UK Capital Investments Group (UKCIG), which according to its website offers land and property investment opportunities in the UK and Dubai.
“We are looking at UKCIG’s activities in selling plots in the UK, because we have been approached by investors in Dubai wanting to know how solid their UK investments are,” Marwan Bin Ghalita, CEO of the Real Estate Regulatory Authority, told Arabian Business on Wednesday."
“We are looking at [Chohan’s] activities and… we must be sure that he has approval and the right licences and everything,” he added.Bin Ghalita stressed that RERA currently had no concerns over any UKCIG developments in the UAE itself.Chohan was disqualified in April 2008 for four years for his “unfitness to act as company director”, according to Companies House records.
The ban followed a three-year investigation by the Financial Standards Authority.Investors in the UK bought small plots of farmland from UKLI in the expectation that it would attain planning permission for housing and increase in value as a result. However, none of the land ever gained planning permission, and the FSA charged that UKLI operated as “an illegal collective investment scheme” and denied “investors protection for their money”.
On its website, Dubai-based UKCIG lists itself as an affiliate of UKLI and says that it has “a substantial land bank under management in the wealthy south east of the UK”.The website adds: “The land has been identified by personnel with in-depth planning expertise as having a strong probability of being rezoned from agricultural to developmental use… The UK’s tight planning controls result in a substantial uplift in value when land achieves allocation.”Before it went into administration, UKLI records indicate that approximately 5,000 plots of land were sold to investors, spread over several locations.On Tuesday Arabian Business reported that Chohan had loaned himself almost $1.9 million from UKLI company funds before it went into administration, according to official documents.
The revelation is contained in correspondence obtained by Arabian Business from the former auditors of London-based UK Land Investments Limited, now in administration.In January 2007, UK-based auditors Moore Stephens resigned after expressing concerns about $17.6 million worth of loans made to sister companies and subsidiaries in the UK and abroad – and named Balinder, or ‘Bally’ Chohan as the personal recipient of an “unlawful” $1.872 million loan from UKLI.“The company had loaned 553,002 pounds ($1.1 million) to Bally Chohan. As he was then a director of the company, the loan was unlawful,” the auditor said in a formal letter explaining its decision. “
By September the loan had risen to £957,732 ($1.9 million).”“There could be claims of up to 70 million pounds ($137 million),” Fiona Watson of administrators Deloitte told Arabian Business on Tuesday. “However, we have yet to agree the status of the investors and we are in the very early stages of the administration process.”
Balinder Chohan was founder and sole shareholder of UK Land Investments Limited (UKLI) until it went into administration in April. Now he is CEO of a Dubai-registered company called UK Capital Investments Group (UKCIG), which according to its website offers land and property investment opportunities in the UK and Dubai.
“We are looking at UKCIG’s activities in selling plots in the UK, because we have been approached by investors in Dubai wanting to know how solid their UK investments are,” Marwan Bin Ghalita, CEO of the Real Estate Regulatory Authority, told Arabian Business on Wednesday."
“We are looking at [Chohan’s] activities and… we must be sure that he has approval and the right licences and everything,” he added.Bin Ghalita stressed that RERA currently had no concerns over any UKCIG developments in the UAE itself.Chohan was disqualified in April 2008 for four years for his “unfitness to act as company director”, according to Companies House records.
The ban followed a three-year investigation by the Financial Standards Authority.Investors in the UK bought small plots of farmland from UKLI in the expectation that it would attain planning permission for housing and increase in value as a result. However, none of the land ever gained planning permission, and the FSA charged that UKLI operated as “an illegal collective investment scheme” and denied “investors protection for their money”.
On its website, Dubai-based UKCIG lists itself as an affiliate of UKLI and says that it has “a substantial land bank under management in the wealthy south east of the UK”.The website adds: “The land has been identified by personnel with in-depth planning expertise as having a strong probability of being rezoned from agricultural to developmental use… The UK’s tight planning controls result in a substantial uplift in value when land achieves allocation.”Before it went into administration, UKLI records indicate that approximately 5,000 plots of land were sold to investors, spread over several locations.On Tuesday Arabian Business reported that Chohan had loaned himself almost $1.9 million from UKLI company funds before it went into administration, according to official documents.
The revelation is contained in correspondence obtained by Arabian Business from the former auditors of London-based UK Land Investments Limited, now in administration.In January 2007, UK-based auditors Moore Stephens resigned after expressing concerns about $17.6 million worth of loans made to sister companies and subsidiaries in the UK and abroad – and named Balinder, or ‘Bally’ Chohan as the personal recipient of an “unlawful” $1.872 million loan from UKLI.“The company had loaned 553,002 pounds ($1.1 million) to Bally Chohan. As he was then a director of the company, the loan was unlawful,” the auditor said in a formal letter explaining its decision. “
By September the loan had risen to £957,732 ($1.9 million).”“There could be claims of up to 70 million pounds ($137 million),” Fiona Watson of administrators Deloitte told Arabian Business on Tuesday. “However, we have yet to agree the status of the investors and we are in the very early stages of the administration process.”
Monday, 4 August 2008
Dirham undervalued 25%, says Big Mac survey
Dirham undervalued 25%, says Big Mac survey:
"The UAE dirham, like other Gulf currencies, is undervalued against the US dollar by nearly 25 per cent, says the Big Mac Index survey, conducted by the Economist magazine.
The new data, based on the price of Big Mac burger in various countries, showed the decline of the US dollar versus major currencies, which again strengthens the case for dirham devaluation.
The annual survey found the UAE dirham to be 24 per cent undervalued with respect to the dollar when buying a Big Mac in the country, while the Saudi Arabian riyal was undervalued by 25 per cent. Both the UAE and Saudi currency are directly pegged to the dollar. The Egyptian pound was undervalued to the extent of 31 per cent.
The Big Mac Index is based on the theory of purchasing-power parity (PPP), which says that exchange rates should move to make the price of a basket of goods the same in each country. According to the survey, only a handful of currencies are close to their Big Mac PPP. The British pound, Swedish krona, Swiss franc and Canadian dollar are trading above burger benchmark."
"The UAE dirham, like other Gulf currencies, is undervalued against the US dollar by nearly 25 per cent, says the Big Mac Index survey, conducted by the Economist magazine.
The new data, based on the price of Big Mac burger in various countries, showed the decline of the US dollar versus major currencies, which again strengthens the case for dirham devaluation.
The annual survey found the UAE dirham to be 24 per cent undervalued with respect to the dollar when buying a Big Mac in the country, while the Saudi Arabian riyal was undervalued by 25 per cent. Both the UAE and Saudi currency are directly pegged to the dollar. The Egyptian pound was undervalued to the extent of 31 per cent.
The Big Mac Index is based on the theory of purchasing-power parity (PPP), which says that exchange rates should move to make the price of a basket of goods the same in each country. According to the survey, only a handful of currencies are close to their Big Mac PPP. The British pound, Swedish krona, Swiss franc and Canadian dollar are trading above burger benchmark."
Sunday, 3 August 2008
'Allow foreign ownership'
UAE national companies need to tear down barriers for foreign owernship to attract more international capital into the local market, the CEO of Abu Dhabi Securities Exchange (ADX) said yesterday.
Tom Healy said the rapid growth in the domestic economy was already luring foreign investors into the UAE bourses and expected the inflow to increase in the future.He also said plans to introduce derivatives to ADX were nearly completed and trading in such tools would begin next year.
In an interview with Emirates Business, Healy ruled out a collapse in the UAE stocks despite sharp fluctuations over the past two months, adding such turbulence "is nothing compared to what is happening in global markets"."
If the law on foreign ownership is changed, then we will see a lot of companies coming to this market.
We are trying to attract more foreign investors, who are also tempted by the rapid economic growth and high return here," he said."But the only problem is the restrictions imposed on foreign ownership, mainly by the national companies in the country. So we would like to see these restrictions lifted or reduced so that foreign firms and individuals can increase their investment further and take advantage of the growing opportunities here ... my expectations in the long turn are that foreign investors will continue to grow."
Asked about plans to introduce derivatives to ADX, he said they are part of an ongoing programme to develop the bourse and expected the project to materialise next year."
There is no organised derivatives market in the Gulf. We are trying to introduce this type of investment to ADX. The legal framework is there and the authorities have an open mind about this plan. Such things usually take time but we are working on them and let's hope they will materialise sometime next year," he said.
Healy expected ADX to perform better this year, citing a nine per cent growth in the index in the first half and a large increase in foreign dealing to nearly 24 per cent. He said recent turbulence in the UAE bourses was normal in a stock market.
"There might be some turbulence over the past two month but it is nothing compared to what is happening internationally," he said."
As for a collapse in the local market, I don't think there will be a collapse in ADX…a collapse could happen to an individual company having problems or with poor outlook and this is not the case here. Again, I say a collapse will not happen here."
Tom Healy said the rapid growth in the domestic economy was already luring foreign investors into the UAE bourses and expected the inflow to increase in the future.He also said plans to introduce derivatives to ADX were nearly completed and trading in such tools would begin next year.
In an interview with Emirates Business, Healy ruled out a collapse in the UAE stocks despite sharp fluctuations over the past two months, adding such turbulence "is nothing compared to what is happening in global markets"."
If the law on foreign ownership is changed, then we will see a lot of companies coming to this market.
We are trying to attract more foreign investors, who are also tempted by the rapid economic growth and high return here," he said."But the only problem is the restrictions imposed on foreign ownership, mainly by the national companies in the country. So we would like to see these restrictions lifted or reduced so that foreign firms and individuals can increase their investment further and take advantage of the growing opportunities here ... my expectations in the long turn are that foreign investors will continue to grow."
Asked about plans to introduce derivatives to ADX, he said they are part of an ongoing programme to develop the bourse and expected the project to materialise next year."
There is no organised derivatives market in the Gulf. We are trying to introduce this type of investment to ADX. The legal framework is there and the authorities have an open mind about this plan. Such things usually take time but we are working on them and let's hope they will materialise sometime next year," he said.
Healy expected ADX to perform better this year, citing a nine per cent growth in the index in the first half and a large increase in foreign dealing to nearly 24 per cent. He said recent turbulence in the UAE bourses was normal in a stock market.
"There might be some turbulence over the past two month but it is nothing compared to what is happening internationally," he said."
As for a collapse in the local market, I don't think there will be a collapse in ADX…a collapse could happen to an individual company having problems or with poor outlook and this is not the case here. Again, I say a collapse will not happen here."
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