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Gulf News
Dubai: Gulf
finance ministers will address a number of key issues including the
Gulf Cooperation Council (GCC) Customs Union and the GCC Rail project
in their meeting in Abu Dhabi on Saturday. The UAE will host the 91st
GCC Financial and Economic Committee meeting, which will be headed by
Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister
of Finance. Among others, the meeting will address the GCC countries'
participation at the World Trade Organisation (WTO), issues pertaining
to cooperation with the European Union (EU) and other countries and
financial institutions. Obaid Humaid Al Tayer, Minister of State for
Financial Affairs, indicated that the meeting allows the council to
convey a comprehensive picture of various financial and economic issues
and joint projects to GCC leaders. Al Tayer said that the meeting
supported the GCC in its efforts to position itself as a strong
economic bloc. "The 91st GCC Financial and Economic Committee
meeting acts as a link between the GCC Supreme Council and its
financial and economic committees. The meeting will focus on all the
recommendations made by these committees and on the directives
resulting from the 36th meeting of the GCC Committee for
Undersecretaries of Ministries of Finance and Economy. It will also
shed light on the progress of joint GCC projects," Al Tayer added.
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Khaleej Times
ABU DHABI -
The United Arab Emirates will start Emirates Development Bank (EDB)
with Dh10 billion ($2.7 billion) of capital to help promote economic
growth in the country. Obaid Humaid Al Tayer, Minister of State for
Financial Affairs, announced the issuance of Federal Law No.7 regarding
the establishment of EDB, on Wednesday. The bank will support the
UAE’s development initiatives, including industrial and real estate
projects, and will facilitate real estate loan applications, the
Finance Ministry said. It will also provide financial services for
small and medium-sized businesses and offer advice and feasibility
studies. “This move falls in line with the vision of the UAE government
to support the nation’s economic development and to guarantee coverage
of all its short and long-term development requirements,” Al Tayer
said. He said that the bank will boost economic diversification and
development built on innovation, and will provide citizens with
suitable housing. Other priority areas will include boosting farm
output, promoting local handicrafts and support public sector housing
projects, the minister elaborated. The minister said: “It will act as a
main pillar for the UAE’s economy, especially with issues pertaining to
citizens.”
AME Info
The
National Bank of Ras Al-Khaimah (P.S.C.) (Rakbank) has reported a net
profit of Dhs906.5m for the nine months ended 30th September 2011,
reflecting a 24.2% growth compared to same period of 2010."We are
pleased with Rakbank's strong financial results which reflect growth in
the Banks' customer base across major business segments," says
Graham Honeybill, Chief Executive Officer of Rakbank. "As we
continue to place great focus on customer service and follow our sound
business strategy, we are confident that we will continue to achieve
positive results."
Capital
Adequacy The Bank's capital adequacy ratio as per Basel I at end of the
quarter was 17.8% composed entirely of Tier 1 capital against a current
minimum of 12% of Tier 1 capital prescribed by the Central Bank of
the UAE. If we consider Ministry of finance loan which
qualifies as tier 2 capital then the overall capital adequacy ratio
stood at 21.2%.
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UAE’s dollar millionaire population to swell 35%
Khaleej Times
The UAE’s
dollar-millionaire population will swell 35 per cent in five years to
reach 54,000 after shrinking to a low of 41,324 in 2011. DUBAI — The
UAE’s dollar-millionaire population will swell 35 per cent in five years
to reach 54,000 after shrinking to a low of 41,324 in 2011 as the growing
rich in emerging nations propelled global wealth to $231 trillion in 2011
from $195 trillion in 2010, Swiss banking giant Credit Suisse said on
Wednesday. In the Arab world, Egypt will see the biggest spurt in
millionaire population, up 197 per cent to reach 92,000 from the current
31,000 while Saudi Arabia and Kuwait will each record 45 per cent growth
in high net worth population to 64,000 and 45,000 respectively, according
to the latest Global Wealth Report released by Credit Suisse. In five
years, the biggest surge in dollar millionaires will be in South Africa,
up 242 per cent to reach 243,000, followed by Egypt at 197 per cent to
92,000. Brazil, India, China and Singapore will also witness fast growth
rates in millionaire population over the next five years. The population
of UAE millionaires reached a peak of 66,000 in 2008 and fell drastically
amid the global meltdown due to a decline in the market capitalisation of
firms listed on the stock markets, coupled with the falling values of
property in the country, according to Merrill Lynch Global Wealth
Management and Capgemini.
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Arabian Business
Two years
after the Dubai debt crisis erupted, contributing to a wave of loan
restructurings across the Gulf, those restructurings may be entering a
more difficult phase as banks become reluctant to extend maturities
further. Government-related and private companies in the region have so
far avoided defaults by agreeing with creditors to push out maturities -
a process labelled "extend and pretend" by some cynical
bankers. This method has helped banks avoid billions of dollars in
writedowns and companies to avoid the shame of defaulting. But some banks
may now be reaching the limits of their willingness to accept this
strategy. Instead, they may demand that debtors make payments while the
banks write down part of the debt, or resort to more radical strategies
such as debt-for-equity swaps. "In recent months, we have started to
see the end of the first phase of restructurings where refinancings were
largely based on extending and pretending," said David Stark,
managing director for restructuring advisory services at consultants
Deloitte, which has advised on debt restructurings in Dubai. "We are
beginning to see situations where the hoped-for market recovery has not
materialised and, as a consequence, more radical restructuring may be
required."
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The National
The momentum of the "Arab
Spring" has been mesmerising, yet the future is uncertain. The
Middle East and North Africa (Mena) lags behind other emerging markets in
ease of doing business and in competitiveness, and it is undeniable that
social change must go hand in hand with economic reform. The Arab world
must embrace a reliable path to economic growth. Nurturing an
entrepreneurial culture is crucial. According to the Doing Business 2011
report by the World Bank and International Finance Corporation, Mena
still lags behind East Asia and the Asia-Pacific and Eastern Europe and
Central Asia in terms of the most business-friendly environments. The
World Economic Forum's Global Competitiveness Index reveals that much of
the Arab world is held back by institutions that do not allow for talent mobility
and lack high-quality professional management. Without an economic and
social environment supportive of entrepreneurship, efficiency suffers,
talent is wasted, education is undervalued, competitiveness is hobbled
and growth is imperilled. The Arab world must lay the educational
foundations to produce the next generation of entrepreneurs, and
challenge barriers to entrepreneurial activity. Both are essential for
ensuring sustainable growth within a highly competitive global economy
and to guarantee that the youths driving change in the Arab Spring can
look forward to a future that includes being gainfully employed.
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