Khaleej Times
ABU DHABI —
The UAE Central Bank has directed banks and financial institutions to
submit details of all the remittances made to and from Iran in August, a
step aimed at measuring the impact of latest UN Security Council imposed
economic sanctions. The central bank, in circular
no 4703/2010 issued on September 4, has asked banks and financial
institutions to provide detailed information on all money transfers to
Iran exceeding Dh200,000 by today. It
also warned of regulatory measures in case of failure to submitting the
required information before the deadline. Central bank Governor Sultan bin Nasser Al Suwaidi, who signed the
circular, said that the objective of this exercise is, “to contribute to
studies being conducted to better understand the economic impact of the
UN Security Council sanctions against Iran.” The central bank intend to run this exercise
for just few months, the first such month will be August 2010. The central bank directed the financial
institutions to submit the money transfer’s details on a form, along with
the names of sender and to whom transaction.
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The National
The
Central Bank is studying the effects of sanctions against Iran on local banks
and exchange houses after the UN this summer imposed additional economic
curbs on the country for pursuing a suspected nuclear weapons programme.
The regulator sent a memo to commercial banks and exchanges on Saturday
asking them to report money transfers to Iran last month. The data
collection is expected to continue for several months as the bank tries
to grasp how sanctions are affecting financial flows to Iran, one of the
UAE’s biggest trading partners and a major source of investment in UAE
property and financial assets. “There are the US laws and the UN and also
EU laws, so what we are doing is explaining to the banks what the
regulations are in other jurisdictions that might affect their
businesses,” said Saif al Shamsi, the senior executive director of the
Central Bank’s treasury department.
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Financial Times
The US is turning up the heat on
United Arab Emirates banks and companies as it seeks to impose more
comprehensive sanctions against Iran, bankers say. Stuart Levey,
under-secretary for terrorism and financial intelligence at the US
Treasury, met UAE financiers last month during a trip to the Middle East
to brief them on strategies to comply with tougher United Nations
sanctions. Mr Levey’s trip followed the imposition of new US measures
that aim to isolate the Tehran regime further and limit its ability to
import dual-use items for its nuclear programme. The
extra-territorial sanctions target the supply of petroleum products to
the Islamic republic. Under these, transgressors may be denied access to
the US financial system, a sanction strong enough to persuade most
international banks and companies to comply. Dubai has become a much more
difficult place to do business with Iran, as credit lines from banks have
dried up. But the US is keeping up the pressure. “Iran will attempt to
seek out new channels to access the international financial system for
illicit purposes,” Mr Levey warned.
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Emirates 24|7
Global and regional investors’ confidence in Dubai as a destination
for foreign direct investments (FDI) and as the FDI hub for the wider
Middle East and North African (MENA) region has grown, according to
preliminary results of a survey. Conducted by the Foreign Investment
Office (FIO), an agency of the Department of Economic Development (DED),
the survey reveals that more than 70 per cent of global and regional
investors have investments in Dubai or plan to invest within the next
three years. The survey was conducted among more than 1,000 global and
regional investors. The preliminary findings identified that 54 per cent
of the participants already have a presence in Dubai and an additional 16
per cent of global and regional investors plan to enter Dubai in the next
three years. Most of these global companies look to Dubai as an essential
part of their total value chain to access the attractive markets of the
Mena region, maintaining their most vital and strategic activities in
Dubai.
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Emirates 24|7
Strong crude prices have allied with massive public
spending to put the economic of Gulf oil producers back on track after
they were jolted by the global fiscal crisis but recovery remains
fragile, a key Saudi investment firm said on Sunday. Although the private
sector in the six-nation Gulf Cooperation Council (GCC) has generally
remained sluggish in the absence of normal bank lending, investor’s
confidence is gradually returning and several indicators point to
regional recovery, said NCB Capital, an affiliate of National Commercial
Bank. “The improvement in the macroeconomic environment in the region has
been above all driven by a combination of an oil price recovery and
active government involvement. By contrast, the private sector has
remained fairly sluggish,” NCBC said in its weekly report sent to
Emirates 24/7. “Now, however, indications appear to be fairly
consistently multiplying that a turnaround may be on its way. A tentative
turnaround is underway. The growing number of surveys of business and
consumer confidence in the GCC region fairly consistently paints a
picture of gradual improvement in the mood….however, the improvement is
far from uniform across the region and remains clearly fragile in the
face of external and internal discontinuities.
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Gulf News
Islamic
finance, which prohibits charging interest, is set to double in size in
five years, but the $1 trillion industry must diversify and regulate to
realise its full potential, analysts say. Diversification into new
territories is also necessary to reduce the risk of exposure and utilise
their full potential, they add. Islamic law not only forbids charging or
paying interest, but also bans speculation and investment in sectors
deemed haram (prohibited), such as pornography, gambling, arms, alcohol
and pork products. Perhaps the most popular product is Murabaha, which is
used to finance a variety of consumer purchases from cars to houses.
Sukuk is the equivalent of bonds used to raise funds for large-scale
investments. Under a product called Musharaka, which means partnership,
the bank provides the funds to enable the customer to buy an asset, with
the two parties agreeing a profit or equity sharing ratio for that asset.
Losses are shared on a similar basis. The broader principle of Islamic
finance is based on sharing risk as well as profit.
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Bloomberg
Dubai
Holding Commercial Operations Group LLC, a real estate and hospitality
group owned by the emirate’s ruler, will seek an extension on a $555 million
revolving credit line until Nov. 30, three bankers with knowledge of the
decision said. All lenders to Dubai Holding Commercial agreed to
extend the facility, said the bankers, who declined to be identified
because the details haven’t been made public. The accord probably will be
disclosed to Nasdaq Dubai tomorrow, they said. Dubai Holding Commercial
in July received a two-month extension on the loan at the “commercial
terms,” the company said then. Dubai Holding Commercial is set to
make an announcement tomorrow about the loan, a spokeswoman said, asking
not to be named because of company policy. She declined to comment on
whether the facility would be paid off or extended again. Dubai
Holding LLC, Dubai Holding Commercial’s parent, and its units owe banks
$12 billion and have begun talks to roll over some loans, a person with
knowledge of the matter said on May 10. Dubai International Capital LLC,
an investment unit of Dubai Holding with a $1.25 billion loan due in
June, sought a three-month extension on some of its payments on May 27.
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