2007
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Al Rajhi seeks Kuwait entry
Sheikh Salem Abdul Aziz Al Sabah, the Governor of Kuwait's Central Bank, has revealed Saudi Arabia's Al Rajhi Bank wants to open a branch in the country, reported Reuters citing the Al Hayat newspaper. Al Sabah said the lender was due to submit documents in order to show it meets the necessary requirements for operating in Kuwait. Al Sabah added no other Saudi bank had applied for a licence.
EFG-Hermes targets maize firm
An investment fund run by Egyptian lender EFG-Hermes is hoping to acquire around 31.6% of the National Company for Maize Products, in a deal worth $31.5m, reported Reuters. A price of 25 Egyptian pounds has been offered by the Horus III Fund and this is substantially higher than the last traded price of 9.6 Egyptian pounds. The National Bank of Development would sell most of the stake to EFG-Hermes.
Sabic offers bonus shares
The Saudi Basic Industries Corporation (Sabic) plans to offer its shareholders one free share for every five currently held, according to Bloomberg. The move will increase its number of shares from 2.5bn to 3bn and will raise its share capital to around $8bn. The firm will also pay a dividend of SR2, or $0.5, per share for H2 2007.
Bahrainis eye BBK stake
Investors from Bahrain are looking to acquire a sizeable holding in the Bank of Bahrain and Kuwait (BBK) from Kuwaiti owners for around 535 fils per share, reported Reuters citing Kuwait's Al Watan newspaper. The paper did not name the possible investors but said the Kuwaiti shareholders had shown no desire to sell their stake. Al Watan also suggested Kuwait's Zumorroda Investment wanted to hike its own holding to 35%.
NBK share sale oversubscribed
The National Bank of Kuwait (NBK) has revealed that its $1.5bn share sale, which ended on December 26, was 145% oversubscribed, reported Reuters. The NBK received subscriptions totalling $3.7bn from its existing shareholders. The 20% capital increase was sanctioned in September to help pay for its purchase of Egypt's Al Watany Bank alongside a 40% stake in Istanbul's Turkish Bank.
Arabian Cement ups capital
Saudi Arabia's Arabian Cement is to sell $133.6m worth of new shares to its shareholders as part of a 14.3% capital increase, reported Reuters. The firm commenced listing subscribers yesterday, Saturday, and it will continue to do so until January 7. Arabian Cement is selling 10m shares at a price of SR50 per share; the company has not said what it will do with the extra funds generated.
UAE banks $6.8bn profit
The combined profit of the UAE's banks is set to spike by 25% this year to $6.8bn, reported Gulf News citing the UAE Central Bank Governor Sultan bin Nasser Al Suwaidi. Local banks provided an aggregate profit of $5.3bn. Al Suwaidi said the deposits in the country's banks have now reached $183.8bn, up from $151.1bn in 2006.
DED issues 1,144 licences
Dubai's Department of Economic Development (DED) issued 1,144 new licences in November, with the majority, 936 licences, allocated to firms operating in the commercial sector. Meanwhile, 182 licences were handed over to companies in the professional sector. The DED issued 19 new licences to local branches of foreign firms from India, South Korea, Japan, the UK, Spain, Germany and China.
UAE reviews policy
The Governor of the UAE Central Bank Sultan bin Nasser Al Suwaidi has said foreign banks will enjoy more operational freedoms in 2008, reported Emirates Business 24/7. It is thought changes could involve upping the limit on the number of branches from the present eight, while more foreign banks may be given licenses next year. There are currently 48 banks in the UAE with 22 of them being local.
Egyptian bank seeks Gulf expansion
Egyptian investment bank Naeem Holding is seeking investment opportunities in Bahrain and Qatar as part of a regional expansion plan in 2008, reported Reuters. Basem el-Shawy, Naeem's director of investment relations, said detailed plans will be announced early in the year. Naeem Holding is also about to finalise an acquisition of up to 100% of Saudi investment bank Naeem Saudi Arabia. The firm said in November it was seeking to acquire only between 75 and 80% of Naeem Saudi Arabia for five times the Saudi company's expected net normalised earnings in 2008.
ADCB confirms RHB talks
The Abu Dhabi Commercial Bank (ADCB) has confirmed it is in negotiations to buy a 25% holding in Malaysian banking group RHB Capital, according to the local WAM news agency. The ADCB has sent a note to the Abu Dhabi Securities Market saying that a 'framework for strategic partnership' with the RHB will be established if the talks go well. Malaysia's Employees Provident Fund holds an 82.2% stake in the RHB.
Swiss regulator studies UBS
Switzerland's Federal Banking Commission is to investigate how the UBS bank accumulated writedowns of some $14bn due to the ongoing credit crisis, reported Reuters. The regulator will also seek to find out who was responsible for the mega losses. UBS sold a 9% stake to Singapore's government and a smaller stake to un-named Saudi Arabian investors earlier this month.
No subprime blues for UAE
Ratings agency Moody's is the latest organisation to say that the ongoing subprime mortgage crisis in the US will have little effect on the UAE's banking sector, reported Gulf News. Moody's said the country's banks have little exposure to the crisis although borrowing costs have lifted slightly. The agency did point to the fact that a number of debt issuances have been postponed until the situation improves.
Arab Bank, Dubai World loan
Jordan's Arab Bank Group has acted as the lead mandated arranger of a $5bn loan for Dubai World. The facility involved the participation of a consortium of regional and international banks. Dubai World will use the cash to fund its general commercial activities, including acquisitions and other global investments.
Hyundai Saudi petrochem deal
South Korea's Hyundai Engineering Company has secured a deal to construct a petrochemical plant in Saudi Arabia, reported Reuters. The deal is worth about $210m and Hyundai will undertake the work alongside another South Korean firm, the Hanwha Engineering and Construction Corporation. The facility will produce ethyleneamines when it is completed; no timeframe was provided.
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