Posted on 30 November 2009 by Laxman | Email|Print
From Aawsat.com: When the global financial crisis first struck markets and international financial institutions, it caused massive Tsunami waves that flooded financial ports all over the world in bankruptcy, leaving no country untouched.
The world began to look around it and was surprised to discover that only a few small islands in this financial ocean had managed to survive this devastating Tsunami…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Glgroup.com: The Middle Eastern countries and Islam do not believe in interest -money is not an asset and cannot have a cost (interest). It can only be traded in relation to some commodity. The present crisis has shown that if a cost is not attributed to money then the result is a crisis.
In this analysis I look at the effects of the Dubai debt crisis in relation to accounting rules…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Thejakartaglobe.com: Defaults on Islamic bonds and the debt delay requested by Dubai World will transform the market, as investors demand more transparency and subject new issues to forensic due diligence.
Investors in state-run Dubai World’s main real estate developer, Nakheel, were stunned following the announcement the company and its parent would delay by at least six months repayment on billions of dollars in debt…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Thenational.ae: Dubai World could still meet the December 14 deadline on the US$4 billion (Dh14.69bn) payment of a sukuk from Nakheel under one option being considered by advisers to the conglomerate.
Repayment on schedule is one of four alternatives being considered by Dubai World, which announced on Wednesday it would seek a freeze on billions of dollars in debt repayments to bondholders and creditors……………………………Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Islamonline.net: As the world is still recovering from an economic meltdown, an unfolding debt crisis in the flashy lifestyle-Gulf state of Dubai is sending shockwaves around the world, putting the booming Islamic finance to a test.
“A Default by Dubai will put the world of Islamic finance to the test at a time when hard questions are being asked by bankers and lawyers about the protection afforded by financial instruments based on Shari`ah law,” commented The Australian on Saturday, November 28…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Istockanalyst.com: Shariah compliant bonds skirt the Islamic dictum that no interest is to be received from loaning money by linking bonds to an underlying asset, say, real estate, that throws off income. This arms-length strategy is designed to permit Islamic investors to receive money on their investment that is not technically interest.
Recently, as pointed out in the Financial Times, there has been growing concern about whether these bonds, called sukuks, are the conservative investment vehicles they were made out to be…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Guardian: Dubai’s story of hotels and hubris in the desert sands is well rehearsed, but where will the narrative end?
A relatively happy conclusion would be for the damage to be localised and containable, for Abu Dhabi or the International Monetary Fund to step in as backer, and for world markets to regain a measure of calm. An unhappy denouement hardly bears thinking about…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Theaustralian.com.au: Analysts fear that Nakheel - which is part of Dubai World - could crumble like a sandcastle into the Persian Gulf and, if that happens, Dubai World and perhaps Dubai itself could follow.
“Dubai World is the Middle East’s Lehman Brothers,” said one local banker on the weekend…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Business-standard.com: Amid a pall of gloom over millions of families across India– dependent on regular remittances from the Middle East– after Dubai World’s repayment crisis, businessmen and analysts on the ground find the world was over-reacting and worries perhaps unfounded.
“It may have been headline material but it was 48 hours too late,” says a Dubai World official on condition of anonymity. According to him, for all practical purposes this was debt payment delay and not a default as it is being made out to be…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Arabnews.com: Abu Dhabi, wealthy capital of the United Arab Emirates, will “pick and choose” how to assist debt-laden neighbor Dubai, a senior official said on Saturday, after fears of a Dubai default sent global markets reeling.
“We will look at Dubai’s commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts,” the official in the government of the emirate of Abu Dhabi told Reuters by phone…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Tradearabia.com: Moody’s Investor Service said that ratings on banks in the UAE were already on review, and that no immediate downgrades are expected in light of Dubai’s debt crisis.
The banks with significant exposure to the city-state’s crisis were already on review or carried a negative outlook on their deposit ratings, Moody’s said…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Ameinfo.com: Fitch Ratings has affirmed the Islamic Development Bank’s (IDB) Long-term Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook, and affirmed its Short-term IDR at ‘F1+’.
The ratings are based on the strong support from the bank’s 56 member countries, its excellent asset quality and substantial capital base…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Globalarabnetwork.com: Fitch Ratings has today downgraded the Long-term Issuer Default Ratings (IDRs) of Dubai Bank (to ‘BBB-’ from ‘BBB+’), Tamweel PJSC (to ‘BB’ from ‘BBB’) and TAIB Bank (to ‘BB’ from ‘BBB-’). The Outlooks on Dubai Bank and TAIB Bank are Negative.
Tamweel remains on Rating Watch Evolving…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Albawaba.com: The operating environment for Gulf-based investment banks continues to be unsupportive, weighing substantially on earnings and prompting revisions of business models.
We are lowering our counterparty credit ratings on GFH to ‘BB+/B’ from ‘BBB-/A-3′…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Reuters: The United Arab Emirates’ central bank set up a facility on Sunday to support liquidity in the banking system Dubai’s government sought to delay debt payments from two of its flagship firms, sending global markets lower.
Dubai rocked the financial world on November 25 when it said it would ask creditors of Dubai World, the conglomerate behind its rapid expansion, and Nakheel, builder of its palm-shaped islands, to agree to a standstill on billions of dollars of debt as a first step to restructuring…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Muslims.net: Islamic banks are thriving in Lebanon after proving efficiency in facing the ramifications of the global financial crisis.
Banks that are based on Islamic teachings of Shareia, though newly established, they covered a wide-range of customers and were licensed by the Central Bank of Lebanon (BDL), Director General of the Islamic bank Al-Baraka Mutasim Mihmisani told KUNA…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Gulf-daily-news.com: Iran said yesterday that it has privatised $63 billion worth of government equity in state-owned firms, meeting half of the target currently set as part of its privatisation drive.
Gholam Reza Heydari Kord Zanganeh, head of the state-run Privatisation Organisation, said the divestment cut the government’s part of the gross domestic produce to around 45 per cent from 60pc before the programme…………………………..Full Article: Source
Posted on 30 November 2009 by Laxman | Email|Print
The current Financial Crisis offers tremendous opportunities to Technology Suppliers who are prepared to re-architect their solution offering.
I have put my thoughts together in a paper that was published last hear. You can read the paper………………………….Full Paper: Source
Posted on 30 November 2009 by Laxman | Email|Print
From Iqna.ir: Islamic finance has a potential role in contributing not only to global financial stability but also towards more balanced global growth.
While Islamic finance by its very nature and its direct link to economic activity contributes to this process, the recognition of the new financial challenges ahead require further steps to be taken to strengthen its resilience and robustness, Central Bank of Malaysia governor Dr Zeiti Akhtar Aziz told a high-level conference on financial stability in Kuala Lumpur…………………………..Full Article: Source
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