Posted on 03 December 2009 by Laxman | Email|Print
From WSJ: Unusual selling of Nakheel’s $3.5 billion Islamic bond in the lead-up to Dubai’s announcement last week that it would seek to restructure Nakheel’s owner, Dubai World, suggest some holders may have had an inkling they wouldn’t get repaid as expected in December, a data firm said Wednesday.
According to Data Explorers, a company that tracks how much of a company’s stock or bonds are out on loan, about 75% of institutions holding the sukuk sold their position between the end of August and the end of November……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From AFP: Dubai World’s plan to delay repaying a huge Islamic bond issue may damage the image of sharia finance, not due to inherent problems but rather because investors have ignored key questions, analysts say.
“In many ways, this has been an extraordinary crisis, but it is the first for the embryonic sukuk industry,” said Khalid Howladar of Moody’s Investors Service……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Thepeninsulaqatar.com: The open desert near Dubai’s Jebel Ali industrial area was supposed to be the site of Nakheel’s grandest vision - the Dubai Waterfront. Here, the property developer wanted to build a city twice the size of the Hong Kong island, with skyscrapers for 1.5m residents, all ringed by a 75km canal.
But Dubai and Nakheel’s financial crisis has stalled the project, perhaps permanently, making it another multi-billion dollar casualty of the emirate s crisis…………………………….Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Moneycontrol.com: As investors flee debt-laden Dubai, neighbouring Bahrain, Qatar and Saudi Arabia are likely to pick up much of its Islamic banking business, though the financial hub is expected to bounce back eventually.
While banks and builders from London to Singapore count their losses from Dubai’s troubles, there are also worries the crisis will hurt its status as a regional centre for sharia finance, which itself had a hand in the emirate’s meteoric rise……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Bi-me.com: Dubai World said Tuesday it wants to talk to holders of US$26 billion of its debt and may sell some of its assets around the world.
But Moody’s Investors Service said it is not convinced that selling some of Dubai World’s businesses will help solve the debt problem……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Tradearabia.com: Ratings agency Moody’s said on Tuesday it estimates the Dubai government and its related entities have debt of $100 billion — higher than the market estimate of around $80 billion.
Moody’s also said ports operator DP World and Jebel Ali Free Zone have approximately $10 billion in debt……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Globalarabnetwork.com: Moody’s Investors Service commented that Asian banks have relatively small exposures to Dubai and Dubai World companies, based on the rating agency’s preliminary survey of the banks it rates in the region.
Therefore, no rating actions have been taken on Asian banks as a result of the requested standstill on selected Dubai World debt payments……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Arabnews.com: Prince Alwaleed bin Talal, chairman of Kingdom Holding Company, said banks that loaned money to Dubai World can’t claim to be victims of the emirate’s debt crisis because they should have understood the risks.
“These banks are very mature banks, and they have to differentiate between a corporate loan and a sovereign loan,” Alwaleed said Tuesday in an interview on Bloomberg Television……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Businessweek.com: The ruler of Dubai hit out at international investors yesterday as his government’s impecunious investment vehicle revealed plans to restructure $26bn of its debts. Sheikh Mohammed al-Maktoum said: “They do not understand anything.”
The Gulf city-state’s problems began last week when the highly leveraged Dubai World requested a standstill agreement on a $3.5bn (£2.1bn) bond issued by its Nakheel real estate subsidiary which was due in mid-December……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Nationalreview.com: News of the financial meltdown of Dubai World — a quasi-sovereign global concern that owns 77 percent of the international port manager DP World and is the single largest real-estate developer in Dubai, which is known for its palm-tree-shaped luxury residential developments — has raced from the business pages to the headlines of the front pages in a matter of days.
Since the first reports on Thanksgiving, the Wall Street Journal and just about every other major media outlet are now reporting on the worldwide implications of this latest financial shockwave……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Business24-7.ae: Prudent measures taken by the UAE to protect its banking sector during the global financial crisis have won praise from the Arab Monetary Fund (AMF). The banks have been supported with a Dh120-billion package for ensuring liquidity and guaranteeing deposits.
An AMF study said the UAE is the Arab country that’s most open to foreign banks in the region and this has led to the development of the market……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Livemint.com: The threat of Dubai’s billion-dollar debt default is casting a shadow in Malaysia, the would-be global centre of the fast-growing Islamic finance industry. Islamic finance is designed to comply with Sharia law, forbidding interest on loans and investment in gambling, alcohol and other industries deemed unethical in Islam.
It substitutes profit-sharing for interest, though profit shares can be pre-set to mirror interest on conventional loans……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Saudigazette.com.sa: Profit at Bahraini banks will likely be affected by Dubai’s debt woes due to provisions booked on their exposure and hits on their investment portfolios, an analyst and a banking executive said on Tuesday.
Dubai said last week it would ask creditors of Dubai World and Nakheel to agreed to a standstill on billions of dollars of debt, shocking international investors and bankers……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Thestar.com.my: HSBC Amanah Malaysia Bhd, HSBC Kazakhstan and HSBC Bank Middle East Ltd signed a memorandum of understanding recently with the Development Bank of Kazakhstan (DBK) to boost investments in the central Asian nation.
“HSBC Amanah is pleased to have been chosen by the DBK to be its Islamic banking counterpart to work together to try to identify possible syariah-compliant financing opportunities,” it said, adding that some of the possible financing opportunities had been identified……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Euronews.net: Swiss banks could pay a price for the country’s decision to ban new mosque minarets, with calls for Muslims to empty their accounts in protest.
Withdrawals in response to Sunday’s referendum result backing the ban are expected by the Turkish Minister leading his country’s EU accession talks……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Tehrantimes.com: Turkish State Minister and Chief Negotiator for EU talks Egemen Bagis has urged Muslim nations to withdraw their money from Swiss banks.
Bagis’ comments came in response to a recently approved ban on the construction of new minarets in Switzerland……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Gulf-times.com: QNB Al Islami’s general manager Musadag El Melik made a presentation on ‘Islamic Banking Versus Conventional Banking and the Role of Shariah Auditor’ at a seminar hosted by the Institute of Internal Auditors.
“The foundation of Islamic banking operations is based on the Islamic faith and is restricted to the limits of Islamic Law or the Shariah in all of its actions and deeds……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Thepeninsulaqatar.com: A top executive of QNB Al Islami has stressed the importance of Islamic banking against conventional banking and the role of Shariah auditors during the Institute of Internal Auditors Seminar held recently at the Millennium Hotel.
Islamic Banking against Conventional Banking and the Role of Shariah Auditor was the topic of presentation given by Musadag El Melik, General Manager QNB Al Islami, at the IIA seminar held recently at the Millennium Hotel in Doha……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
From Dailytimes.com.pk: Pakistan-Kuwait Takaful’s recent rights offering to raise share capital by Rs 150 million has been allocated in full, Mr Imtiaz Bhatti, CEO said in a press statement.
Shareholders applied for 80 percent of the newly issued ordinary shares, ranked pari passu with the existing shares of the company in all respect……………………………Full Article: Source
Posted on 03 December 2009 by Laxman | Email|Print
A.M. Best Co. has removed from under review with negative implications and affirmed the financial strength rating of B++ (Good) and issuer credit rating of “bbb+” of Al Fajer Retakaful Insurance Company KSCC (Al Fajer Re) (Kuwait). The assigned outlook for both ratings is stable.
The ratings reflect the company’s strong risk-adjusted capitalisation and its improved corporate governance. Offsetting factors are the lower than expected business growth and profitability……………………………Full Press Release: Source
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