Islamic liquidity body to create key tools-bankers

Lack of liquidity instruments challenge to industry

* Islamic finance industry still developing capital market

* Central banks plan Islamic bond issues

By Frederik Richter

MANAMA, Nov 24 (Reuters) - A new Islamic liquidity management company backed by central banks will provide sound tools to the industry to manage cash, of which regulators will force banks to set aside more post-crisis, bankers said.

The Islamic Financial Services Board (IFSB), an association of regulators in Muslim countries, said in October it would set up the International Islamic Liquidity Management Corporation (ILM) to issue short-term instruments compliant with Islamic law.

The ILM may issue highly rated Islamic bonds, or sukuk, that will be backed by central bank assets as early as next year to help Islamic banks manage their liquidity and create a liquid cross-border market for Islamic instruments. [ID:nLDE6AM15Z]

While the ILM is still hammering out the details, Islamic bankers say it greatly improves the industry's prospects that have been clouded by the lack of liquidity management tools.

"(We need a) readily manageable liquidity platform in the capital markets space and with the Basel III liquidity regulations coming we have to pay even more attention to these issues," said Richard Thomas, chief executive of UK-based Gatehouse Bank.

Bahrain and Malaysia have the only central banks that regularly issue sukuk and bankers said the ILM could be a vehicle for other central banks that have hesitated issuing sukuk on their own due to political reasons.

"If you want to issue sukuk as a central bank and you have the political willingness of doing so you can do it, like Bahrain has been doing it for many years," said Lilian Le Falher, executive manager at Kuwait Finance House Bahrain.

"Maybe having a proxy like the ILM will help (more central banks to follow)," he said.

NO ALTERNATIVES

Currently, Islamic banks are often forced to place the reserve liquidity they need to maintain under central bank requirements with international conventional banks through another Islamic money market tool, commodity murabaha, as there are not enough highly rated sukuk issues they could use instead.

But most Islamic scholars say commodity murabaha is a mere paper trail replicating conventional money market instruments and only grudgingly accept its use as there is no alternative.

"There is a desire within the industry to rely less on commodity murabaha and to have different tools to be able to do liquidity management," said Simon Eedle, head of Islamic banking at Credit Agricole CIB (CAGR.PA).

Islamic bankers face the dilemma that scholars call for their instruments to be underpinned by real assets, but central banks often do not qualify these as being sufficiently risk-free to be used in short-term liquidity management instruments.

The initiative by the ILM could be a way out, but bankers caution the costs of truly backing the sukuk issues with assets could make that more costly. "The main problem we have in Islamic liquidity management is that in a low short-term profit rate environment, it makes it very difficult to do any products based on real assets as the cost of doing so will make the product commercially not viable", said Le Falher. Learn more Islamic Bonds: Your Guide to Structuring, Issuing and Investing in Sukuk (See all Investing Books)

Source : Reuters.com

German firms angry over Berlin's support for EU sanctions on Iran

Berlin, July 29, - German companies have reportedly vented their anger over Berlin's support for European Union sanctions on Iran, according to Thursday's edition of the business daily Handelsblatt.

Germany's business community is especially disappointed that the center-right government of Chancellor Angela Merkel had backed the EU's punitive measures against Iran which go beyond the UN sanctions.
Foreign Minister Guido Westerwelle who leads the pro-business Free Democratic Party (FDP), had informed the heads of German companies that Berlin would support the disputed EU sanctions.
Germany's controversial sanction policy against Tehran has repeatedly sparked tensions with German business leaders who are very eager to continue their lucrative trade with Iran.
Merkel's Iran sanction strategy has been met with fierce resistance by German companies, feeling abandoned by their government in their efforts not to succumb to US and Zionist political pressure.
German firms are outraged over the fact that even legal business deals with Iran which are not subject to UN sanctions, are being torpedoed by Merkel as well the US and the powerful pro-Israel lobby.
That notwithstanding, German companies remain unfazed by Merkel's policy of discouraging business relations with Iran.
German companies are especially affected by the tightening of the embargo since Iran was the most important export market for Germany in the Middle East and North Africa prior to lauching UN sanctions against Tehran.
Although German firms are determined to maintain their strong business ties with Iran, many Asian and European companies have already replaced them in the Iranian market.
More than 40,000 German jobs are indirectly affected by German-Iranian trade, according to business insiders. Learn more Iran-Europe Relations: Challenges and Opportunities (Durham Modern Middle East and Islamic World Series)

Source : IRNA

Malaysia seeks reforms

KUALA LUMPUR: Malaysian Sharia finance experts, backed by the central bank, are studying possible conflicts between civil and Islamic law amid a raft of high-profile legal disputes which have dampened the industry's appeal.

Legal wrangles have taken centre stage in Islamic finance in the last year as difficult economic conditions triggered defaults and exposed gaps in legal systems, some of which struggled to deal with Sharia banking disputes for the first time.

Where sukuk holders rank in priority of payment when default occurs and the competence of civil courts to adjudicate on Islamic banking disputes are some issues that have come to the fore in the $1 trillion industry.

Lawyers, bankers and Sharia scholars in Malaysia, which has the world's largest sukuk market, are looking into civil law provisions which may conflict with the Sharia and impede the use of Islamic finance.

"We are producing Islamic products in conventional surroundings. The other laws that are applicable - land law, contract law, all other laws - are conventional laws," Abdul Hamid Mohamad, a former Malaysian chief judge who is heading the expert body, said on the sidelines of a law conference.

"So the question arises whether the implementation of Islamic banking is Islamic."

Any conflicts could be addressed with an amendment of the legislation, he said adding that the group would seek the industry's views.

Islamic banking matters in Malaysia are heard in civil law courts, with one judge dedicated to hearing these disputes.

The $130 billion sukuk market has been a source of financing for issuers from Bahrain to Japan but its reputation has suffered in recent years.

The near-default in December of the dollar-denominated sukuk from Dubai property developer Nakheel shattered perceptions that Islamic financing instruments were a safer alternative.

Source : Gulf Daily News

New reforms urged to support Saudi businesswomen

by Neeraj Gangal

A new study on women’s businesses in Saudi Arabia has presented eight recommendations to give Saudi women the same opportunities as women entrepreneurs in other Arab nations, according to a report.

zoom

The Arab News daily said on Friday that the study ‘Businesswomen in Saudi Arabia: Characteristics, Challenges, and Aspirations in a Regional Context’, examines the business-enabling environment for women entrepreneurship in Saudi Arabia and highlights the personal characteristics and business profiles of women business owners.

According to the Saudi-based daily, the report compares Saudi women entrepreneurs with their counterparts in five Arab countries: Jordan, Bahrain, the UAE, Lebanon and Tunisia.

The report is intended to strengthen “the understanding of the business and regulatory environment for Saudi businesswomen, to contextualise the situation of Saudi women entrepreneurs through comparison between them and other female entrepreneurs in the region and to identify and address the business challenges these women face in order to create a more supportive environment,” Arab News said.

The study made eight specific recommendations to Saudi policymakers to improve the situation of businesswomen:

The report urged policymakers to establish a Ministry of Women’s Affairs to monitor the implementation of related royal decrees and to devise a national strategy for women’s transition into the economy.

It suggested the appointment of female Shoura members to ensure that the interests of Saudi businesswomen and women in general are represented.

It called on to eliminate the requirement for women to appoint a male manager in businesses that serve both sexes.

The report also asked for ease in restrictions on mobility for women, in terms of public transportation, driving and international travel.

It suggested the creation of registration categories for the types of businesses that are in demand by businesswomen, such as beauty salons and day-care centres, and identify the process for creating new registration categories in the future.

The report called on to commission further research on how to increase the effectiveness of businesswomen’s access to government services by improving female sections as well as the main centres in government agencies rather than a direct channel for them to receive government services.

It urged policymakers to launch a nationwide public campaign to promote women’s economic participation and support the implementation of existing Royal Decrees.

The report also suggested that Saudi policymakers ease hiring practices for businesswomen in areas that require international female expertise or that are unable to be met by Saudi female labour. This includes studying the possibility of granting work permits to non-Saudi women residing in Saudi Arabia on non-work visas.

The 68-page report was co-authored by Noura Alturki and Rebekah Braswell and published by the Monitor Group and Al-Sayedah Khadijah Bint Khuwailad Businesswomen’s Center of the Jeddah Chamber of Commerce and Industry.

This was done with the support of the Centre of Arab Women for Training and Research (CAWTAR) and the International Finance Corporation (IFC), Arab News said.

“This focus comes at a time when we are witnessing a rapid and increased investment in our country’s human resources and economic development,” said Princess Adelah Bint Abdullah, president, Al Sayedah Khadijah bint Khuwailad Businesswomen’s Center.

“Fundamental to this investment has been the inclusion of regulations that encourage greater involvement of women in our work force. The impact of this support can be seen through the growth, productivity and innovation of Saudi Arabia’s women-owned businesses. My wish is that this report will highlight the progress and determination of these businesswomen and serve as a foundation for researchers interested in the socioeconomic development of our beloved country.”

Source : Arabian Business

Islamic Finance Moves Toward Common Standards

Regulation should help provide a basis for the industry's expansion.

Islamic finance is one of the fastest growing segments of international financial markets. Currently, total sharia-compliant assets amount to an estimated $1.125 trillion to 1.275 trillion, with an annual growth rate of 15-20%. The global credit crunch has not left it unscathed, and recent capital market growth has been hampered by conflicting interpretations of the sharia compliance of specific wholesale product structures (sukuk). Nevertheless, the outlook for the sector is positive.

AAOIFI. Efforts to standardize Islamic financial products should enhance the sector's prospects. The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) plays an important role in this regard:

--Originally subscribed by an alliance of domestic and international Islamic banks as well as the Islamic Development Bank, industry-sponsored AAOIFI has since extended its membership categories to include authorities that regulate and supervise Islamic financial institutions.

--It also offers observer member status to conventional financial institutions that operate Islamic 'windows' (special facilities offered by conventional banks to provide services to Muslims who wish to engage in Islamic banking).

Standards. AAOIFI’s Sharia Standards 2010 contains 41 standards, including 11 new stipulations pertaining to gharar (uncertainty) in financial transactions, arbitration, zakat (alms giving) and online financial transactions among others. Additionally, its Accounting, Auditing and Governance Standards 2010 contains 40 standards covering the areas of accounting, auditing, ethics and the governance of Islamic financial institutions.

National adoption. These standards are primarily targeted at individual Islamic financial institutions, but they have also been adopted at a national level:
--The AAOIFI's standards have been made mandatory for Islamic financial institutions in Bahrain, Dubai International Financial Centre, Jordan, Sudan, Syria and Qatar.

--Last month the State Bank of Pakistan announced that it had begun selectively to implement AAOIFI Sharia Standards and has advised Islamic banks to prepare for the phasing in of further standards in the near future.

--In other countries, including Indonesia, Lebanon, Malaysia, Saudi Arabia and the United Arab Emirates, AAOIFI standards have been incorporated into national guidelines and are adhered to by AAOIFI member institutions.
Standardization issues. The lack of standardization of Islamic financial products has been a major barrier to the cross-border sale of Islamic financial products. The AAOIFI and its sister standard-setting organization, the Kuala Lumpur-based Islamic Financial Services Board (IFSB)--primarily tasked with developing capital adequacy rules for Islamic financial institutions--have become key players in the construction of the emerging international framework that governs Islamic finance. The AAOIFI has over 200 members from 45 countries while the IFSB has 193 members operating in 39 jurisdictions.

More intrusive regulation. So far the compliance of member institutions with the standards can neither be enforced nor fully monitored, unless they are mandated at country level and then enforced by domestic regulators. Last month, the AAOIFI announced a timetable for taking a more intrusive approach to regulating Islamic financial products, including plans to create a watchdog committee--composed of sharia scholars and market practitioners--by the second half of 2010. However, increasingly different trajectories of Islamic banking and Islamic capital market development could in turn affect the further standardization of Islamic financial products.
Challenges. There are two major challenges to the further growth prospects and pace of development of the industry. Both could benefit from enhanced standardization and the AAOIFI's work more generally:

--Interpretation of Islamic law. Given the absence of a highest religious authority in majority Sunni Islam, assessing the Sharia quality of Islamic financial products depends on a number of representatives from different legal schools with sometimes widely varying interpretations.

--Scarcity of qualified sharia scholars. To address the shortage of scholars well versed in both sharia and finance, a number of programs have sprung up that offer degrees in Islamic finance.

Outlook.Overall, the outlook for Islamic finance remains positive. Recent efforts to develop common standards for Islamic financial institutions should help to provide a sound basis for the expansion of the industry.

Source: Forbes

Ahmadinejad: Iran emerging as new global power

President Mahmoud Ahmadinejad said on Sunday that the Islamic Republic of Iran is now emerging as a new power which has left vital impacts on global developments.
President Ahmadinejad made the remarks in a meeting with the new Iranian Ambassador to Bolivia Alireza Ghezili.

Iran attaches importance to expansion of ties and cooperation with Bolivia, he said and called for expansion of political, economic and cultural ties with the country.

There are amicable ties between the two countries in various fields which are expected to be bolstered, he said.

The new Iranian ambassador to Bolivia should try to help upgrade current level of cooperation between the two countries given Iran’s status among world countries, said the Iranian president.

The status of Iranian ambassadors to other countries is outstanding as Iran has been recognized as a new power having crucial impacts on global developments, he said.

Source : IRNA

's SABIC gets $1bn credit from Alinma Bank

by Souhail Karam

Saudi based Alinma Bank said it would grant a $1 billion credit facility to Saudi Basic Industries Corp (SABIC), plugging a financing gap at the world's biggest petrochemicals group.

In a statement confirming a report by Al Hayat online news service on Tuesday, Alinma said: "The facility will fund some of SABIC's petrochemical projects as part of its strategic plans to enhance financing performance, boost competitiveness and help it achieve (its) expansion and growth strategy."

It did not disclose the terms of the facilities, saying only they complied with Islamic law.

Alinma was set up by royal decree in 2006. Government owned pension funds are its biggest shareholders with a 30 percent stake while Saudi citizens hold the remaining 70 percent.

SABIC Chief Executive Mohamed al Mady declined to comment while Chief Financial Officer Mutlaq al Morished could not immediately be reached for comment. Alinma said Morished signed the agreement on behalf of SABIC.

SABIC's financial arm SABIC Capital delayed last month a benchmark dollar bond issue due to jitters that hit global credit markets over fiscal problems in some euro zone countries.

It was not immediately clear if there was a link between the Alinma deal announced on Tuesday and the delay in SABIC Capital's delayed bond issue.

Ratings agency Moody's assigned the planned bond an A+ rating and said it understood it would be used to refinance or repay debt at SABIC Innovative Plastics Holding, the renamed GE Plastics.

SABIC Capital was established in 2008 to look after the financing and tax operations of SABIC's investments in Europe and the United States after the acquisition of DSM Petrochemicals and GE Plastics.

Between July 2006 and May 2008, state controlled SABIC raised 16 billion riyals ($4.27 billion) from three Islamic bond issues. It raised $533.2 million in December 2009 from a private bond placement.

A typical benchmark bond issue is for a minimum $500 million. SABIC said that it has to repay $1.47 billion in long term loans in 2010 and $3 billion in 2011.

Source : Reuters

Islamic Finance Moves Toward Common Standards

By Oxford Analytica,

Regulation should help provide a basis for the industry's expansion.

Islamic finance is one of the fastest growing segments of international financial markets. Currently, total sharia-compliant assets amount to an estimated $1.125 trillion to 1.275 trillion, with an annual growth rate of 15-20%. The global credit crunch has not left it unscathed, and recent capital market growth has been hampered by conflicting interpretations of the sharia compliance of specific wholesale product structures (sukuk). Nevertheless, the outlook for the sector is positive.

AAOIFI. Efforts to standardize Islamic financial products should enhance the sector's prospects. The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) plays an important role in this regard:

--Originally subscribed by an alliance of domestic and international Islamic banks as well as the Islamic Development Bank, industry-sponsored AAOIFI has since extended its membership categories to include authorities that regulate and supervise Islamic financial institutions.

--It also offers observer member status to conventional financial institutions that operate Islamic 'windows' (special facilities offered by conventional banks to provide services to Muslims who wish to engage in Islamic banking).

Standards. AAOIFI’s Sharia Standards 2010 contains 41 standards, including 11 new stipulations pertaining to gharar (uncertainty) in financial transactions, arbitration, zakat (alms giving) and online financial transactions among others. Additionally, its Accounting, Auditing and Governance Standards 2010 contains 40 standards covering the areas of accounting, auditing, ethics and the governance of Islamic financial institutions.

National adoption. These standards are primarily targeted at individual Islamic financial institutions, but they have also been adopted at a national level:

--The AAOIFI's standards have been made mandatory for Islamic financial institutions in Bahrain, Dubai International Financial Centre, Jordan, Sudan, Syria and Qatar.

--Last month the State Bank of Pakistan announced that it had begun selectively to implement AAOIFI Sharia Standards and has advised Islamic banks to prepare for the phasing in of further standards in the near future.

--In other countries, including Indonesia, Lebanon, Malaysia, Saudi Arabia and the United Arab Emirates, AAOIFI standards have been incorporated into national guidelines and are adhered to by AAOIFI member institutions.

Standardization issues. The lack of standardization of Islamic financial products has been a major barrier to the cross-border sale of Islamic financial products. The AAOIFI and its sister standard-setting organization, the Kuala Lumpur-based Islamic Financial Services Board (IFSB)--primarily tasked with developing capital adequacy rules for Islamic financial institutions--have become key players in the construction of the emerging international framework that governs Islamic finance. The AAOIFI has over 200 members from 45 countries while the IFSB has 193 members operating in 39 jurisdictions.

More intrusive regulation. So far the compliance of member institutions with the standards can neither be enforced nor fully monitored, unless they are mandated at country level and then enforced by domestic regulators. Last month, the AAOIFI announced a timetable for taking a more intrusive approach to regulating Islamic financial products, including plans to create a watchdog committee--composed of sharia scholars and market practitioners--by the second half of 2010. However, increasingly different trajectories of Islamic banking and Islamic capital market development could in turn affect the further standardization of Islamic financial products.

Challenges. There are two major challenges to the further growth prospects and pace of development of the industry. Both could benefit from enhanced standardization and the AAOIFI's work more generally:

--Interpretation of Islamic law. Given the absence of a highest religious authority in majority Sunni Islam, assessing the Sharia quality of Islamic financial products depends on a number of representatives from different legal schools with sometimes widely varying interpretations.

--Scarcity of qualified sharia scholars. To address the shortage of scholars well versed in both sharia and finance, a number of programs have sprung up that offer degrees in Islamic finance.

Outlook.Overall, the outlook for Islamic finance remains positive. Recent efforts to develop common standards for Islamic financial institutions should help to provide a sound basis for the expansion of the industry. Learn more Understanding Islamic Finance (The Wiley Finance Series)

Source : Forbes.com

REDUCE VIOLENCE AGAINST WOMEN

Is there or no relevance to cases of violence and sexual abuse of dozens of women in Purbalingga recently, to fill the new Hijra year event then the Central Executive 'Aisyiyah hold seminars with the theme "Violence against Women and the efforts of Birds." This seminar not only attended by family 'Aisyiyah, but also by representatives of women's organizations and several individual participants.

The seminar would indeed very useful for all who attended and heard directly and did not immediately recall a case of violence against women in Indonesia, the longer it is not less but more precisely. Even the recent cases of violence against women has developed into a complex, not only regarding the number of cases will but also concerning the variation of the case itself. Is actual and concrete examples of violence and sexual harassment in Purbalingga involving dozens of people either perpetrators or victims.

Violence against women with a single perpetrator and victim of a double is very common, so did the actors double and a single victim. However, if violence against women with multiple perpetrators and victims are relatively rare. Especially if both perpetrator and victim each totaling tens o-war at a time. And in our country that really happen in reality, not just intuitive.

In the United States (U.S.), French, Italian, and in other developed countries also found cases of violence against women is still always just happen. In the U.S. there is even a "maniac" who could kill dozens of dating and then the woman at the same time. Even in France today there are many women who allegedly suffered a violent treatment of the opposite sex. Learn more Women

Source : Ki Supriyoko, jounal.amikom.ac.id

UAE money supply growth slows to 2.1% at April end

Money supply in the UAE grew 2.1 percent year on year at the end of April, down from a 3.3 percent rise in the previous month, central bank data showed on Wednesday.

M3, the broadest measure of money circulating in the economy and an indicator of future inflation, grew only 1.4 percent in February in the slowest pace since at least 2001 as banks grappled with Dubai's debt restructuring.

It rose to $256.2 billion at the end of April, from $254.5 billion at the end of March, the data showed.
Money circulating in the second largest Arab economy and the world's third largest oil producer had more than doubled in the two years to the end of 2008.

Bank credit grew 2.4 percent year on year to $278.2 billion in April, but edged down marginally from $278.24 billion in March, the data showed.

Provisioning levels for non performing loans rose 4.7 percent month on month to $9.8 billion to reach their highest level since at least December 2008, up from a 2.4 percent rise in March. Learn more United Arab Emirates Court of Cassation Judgements (Arab and Islamic Laws Series, 17)


Source : Reuters

23rd Int’l Kharazmi Festival starts

Tehran, Feb 7, IRNA – The 23rd International Kharazmi (Khwarizmi) Festival kicked off in Tehran Sunday morning.
First Vice-President Mohammad-Reza Rahimi and Minister of Science, Research and Technology Kamran Daneshjou are participating in the one-day event.

Researchers and scholars from various world countries as well as Iranian scientists are also taking part in the international festival.

The festival is held every year to introduce and honor achievements of Iranian and foreign researchers and academicians.

The international bodies including D8, ECO, ECI, COMSTECH, COMSATS, FAO, IFIA, IOR-ARC RCSTT, UNIDO, UNESCO, WIPO, WAIRTO, TWAS and ISESCO are to award winners of Kharazmi festival.

Source : IRNA

Abbas awaits US clarification on talks proposal

CAIRO: Palestinian President Mahmoud Abbas said Saturday he had asked the United States to clarify its offer to mediate indirect peace talks with Israel before he would announce any decision to resume the negotiations.

“Yesterday I met with an American delegation and we held an Egyptian, Jordanian and Palestinian trilateral meeting,” Abbas said after talks with Egyptian President Hosni Mubarak in Cairo.

“We asked the Americans some questions and they will come back to us ... then we will announce our position,” he said.

An Israeli Cabinet minister, echoing comments made by Prime Minister Benjamin Netanyahu, said this week that Israel and the Palestinians would begin “proximity talks,” with a US mediator shuttling between negotiating teams, to restart negotiations that broke down at the start of a war in Gaza in December 2008.

Netanyahu told a conference Wednesday that he had reason to believe the talks could resume in a matter of weeks, though he gave no details.

Palestinian officials did not confirm those remarks, but pointed out that US Middle East envoy George Mitchell had made more than a dozen visits to the region to try to revive the long-stalled peace talks.

Abbas has said he will only return to negotiations if Israel completely stops settlement-building in the occupied West Bank. He has rejected a limited, 10-month construction freeze ordered by Israel in November as insufficient. Israel has said it will continue to build homes for Jews in and around East Jerusalem, territory it captured in a 1967 war and annexed as part of its capital in a move not recognized internationally.

Palestinians want the city as the capital of a future state.

Also hindering progress in peace talks is a divide in the Palestinian territories, with Abbas’ mandate limited to the West Bank since his Fatah faction was ousted from the Gaza Strip by Hamas in a 2007 civil war.

Abbas said in Cairo there was no connection between resuming talks with Israel and reconciling the internal Palestinian divide. “Everything is moving on and we do not prefer one issue over another,” he said.

Egypt, a US ally which in 1979 became the first Arab state to sign a peace deal with Israel, has acted as a mediator in the Arab-Israeli conflict and has been trying to broker a unity deal between the rival Palestinian factions.

The groups last met in July in Cairo, and Egypt has since increased pressure on Hamas by building an underground barrier along its border with Gaza to block tunnels that bring Palestinians weapons and commercial goods denied them by an Israeli-led blockade.

Source : Agencies

BP Migas: Country`s oil production recorded at 946,048 bpd

Jakarta - The country`s oil and condensate production since early this year is recorded at 946,048 barrels per day (bpd), which is lower than the state budget target at 965,000 bpd, an oil official said.

"But this month (Feb) the average oil and condensate production is a bit higher at 952,096 bpd," Head of the Upstream Oil and Gas Regulating Agency (BP Migas) R Priyono said here on Friday.

He said that especially on Friday the oil production reached 950,266 bpd, including 142,458 bpd of condensate.

The BP Migas chief said that there were a number of technical reasons which caused production not to reach the target.

"If there is no technical problem the production would reach 977,000 bpd," Priyono said.
The technical reasons included the stoppage of the Kangean production of 2,500 bpd and maintenance work in the Area Central, CNOOC, which delayed production.

The production of the Banyuurip, Cepu, in the meantime, was only 6,800 bpd because the PT Tri Wahan Universal (TWU) refinery plant and PT Pertamina had asked reduction in supply.

Besides, ConocoPhillips also experienced a production reduction by 2,000 bpd due to pipeline network replacement work in the Suban filed.

For gas production, Priyono said that on February 4, 2010, it reached 8,603 million metric standard cubic feet per day (MMSCFD). So, the average production in February is 8,589 MMSCFD and for 2010 it is expected to reach 8,666 MMSCFD.
Source : ANTARA News

Iran, Syria, a model for economic cooperation in region

Tehran, Jan 9, - Iran's Minister of Housing and Urban Development Ali Nikzad said on Saturday that Iran and Syria must become a model in terms of economic cooperation in the region.
He made the remarks in the 8th follow-up committee on economic cooperation between Iran and Syria.

Close cooperation among countries in the region will lessen the influence of the US and foil the plots hatched by the Zionist regime, he said.

Tehran and Damascus should spare no efforts to bolster economic cooperation among Iran, Syria, Iraq and Turkey which will be vital for formation of a regional alliance, he said.

Volume of trade on engineering and technical services between Iran and Syria has hit dlrs 1.6 billion which is remarkable, he said.

Draft agreements prepared by Iran and Syria’s Expert committees are to be indorsed by the Iranian minister of housing and urbane development with the Syrian economy and commerce minister on Monday.

Source : IRNA

Bahrain's GFH takes $300m Dubai project provision

By Gavin Davids

Gulf Finance House, the Middle East Islamic investment bank, said on Wednesday it had taken a provision of $300 million over its exposure to a Dubai development project.

The $300 million noncash charge against its propriety Dubailand position comes in the wake of the fallout from the global financial crisis and the recent upheavals in the Dubai markets. The bank said that the move would reduce the liabilities on its balance sheet by $290 million, with no implications for its clients.

GFH added that it had no remaining material exposure to Dubai.
Esam Janahi, chairman, GFH, said: “Market conditions over the last year have been extremely difficult and recent developments have further highlighted the need for a prudent and transparent approach. As a consequence, the board has decided to take the necessary steps to deal with the situation appropriately.”

The bank has recently begun comprehensive market research to establish investor sentiment following the global economic downturn. Like a number of Bahrain based investment houses, GFH has posted losses since the end of the regional property boom last year.

The results of this research has seen the bank design a new business model based on the products and services demanded by the contemporary investment community in a difficult economic environment.

Ted Petty, acting CEO, GFH added: “All our work over the past few months has been focused on shoring up our balance sheet and revising the business model to more efficiently serve the needs of the investment community and we've been very successful in this.”

He added that not only was the bank confident of meeting its liabilities, it also had the ability to engage in attractive investment opportunities as it renewed its revenue generation for 2010.

The Islamic lender raised $500 million in fresh financing this year through a rights issue and two convertible murabhas, an Islamic financing tool, to repair its balance sheet after posting four consecutive quarterly losses.
Source : Arabian Business

Garuda to go public in first quarter

Banda Aceh - State Enterprises Minister Mustafa Abubakar said here on Saturday PT Garuda Indonesia would go public in the first quarter this year.

"Let us pray it will be warmly welcomed by investors so that the target of shares to be sold will be met," he said at the launching of an environment program held by the state-owned airline company in cooperation with International Leuser Foundation (YLI) in Aceh.

He said PT Garuda would sell 25 percent of its shares to the public to raise Rp2.5 trillion to strengthen its capital.

Mustafa expressed his appreciation to the company that had been able to achieve a four-star ranking or one grade lower for the company to get the world`s highest ranking.

"We hope PT Garuda which is under the supervision of the office of the state enterprise minister will be able to achieve the five-star status so that the public listing program will be smooth," he said at the event which was also attended by Garuda president director Emirsyah Satar and Aceh governor Irwandi Yusuf.

PT Garuda Indonesia is optimistic the initial public offering could be realized in the first semester this year.

"Right now preparations are already being done including selecting the underwriters," he said.Emirsyah meanwhile said the IPO plan was part of the company`s restructuring program to improve its performance.

The proceeds from the IPO are expected to reach US$300 million and will be used to finance additional fleets, refurbishment as well as improving services," he said.

He said the result of the IPO would be dependable upon market conditions. "We will adapt it to the domestic capital market conditions," he said.

Emirsyah said until 2014 the number of the company`s fleets would be increased to 116 units from currently 67 units. The increase in the number of fleets will be followed by a hike in routes to serve and flight frequencies to reach 3,000 flights per week from currently around 1,700 flights.
Source : Antara News