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

UAE, Bahrain back Kingdom

MANAMA/RIYADH: Bahrain and the United Arab Emirates on Wednesday pledged their full support to the action taken by Saudi Arabia to secure its southern borders.

The backing from the two Gulf Cooperation Council (GCC) countries came following a meeting between UAE Foreign Minister Sheikh Abdullah bin Zayed Al-Nahyan and his Bahraini counterpart Sheikh Khaled bin Ahmed Al-Khalifa in Manama.

Meanwhile, Custodian of the Two Holy Mosques King Abdullah received a message from Yemeni President Ali Abdullah Saleh on Wednesday, the Saudi Press Agency said.

The agency said Yemeni Foreign Minister Abu Bakr Al-Qirbi handed over the message to King Abdullah during a meeting at the king’s Janadriya ranch. It did not say anything about the content of the message.

The news agency said the meeting was attended by Foreign Minister Prince Saud Al-Faisal, Intelligence Chief Prince Muqrin and Yemeni Ambassador to Riyadh Muhammad Ali Al-Ahwal.

The meeting took place a day after Saudi Arabia gave ultimatum to Yemeni infiltrators to leave the Kingdom’s territory within 24 hours or face death. “They have 24 hours to surrender, or we will destroy them,” said Prince Khaled bin Sultan, assistant minister of defense and aviation, on Tuesday.

Prince Khaled said 73 Saudi soldiers were killed, 470 wounded and 26 went missing since fighting broke out in November between Saudi forces and Yemeni infiltrators.

This is the first time the Kingdom has given a death toll for the fighting between Saudi forces and Yemeni intruders, which began more than a month and a half ago. On Nov. 3, rebels killed a Saudi border guard and occupied two villages inside Saudi territory.

Prince Khaled said Saudi forces would remain in the area until the last intruder is expelled. “What we are doing now is bringing things to normal. We have also made arrangements to prevent infiltration and other crimes,” the minister told reporters.

The annual GCC summit, which was held in Kuwait City last week, had reaffirmed its support to Saudi Arabia against any attempt to undermine its security and sovereignty.

“We are fully behind Saudi Arabia against the cross-border assaults launched by armed infiltrators against the Saudi territories,” the communiqué issued at the end of the summit said. They also extended full backing to the unity, security and stability of Yemen.

Kuwaiti Emir Sheikh Sabah Al-Ahmad Al-Sabah opened the summit on Dec. 14 voicing full support for Saudi Arabia in its fight against the infiltrators.

“We renew our strong condemnation of these aggressions (against Saudi Arabia) and declare full support for whatever actions Saudi Arabia takes to defend its territory,” the emir said.

Source : Arab News

Asry in $80 million key quay wall deal

MANAMA: As a major part of its expansion plan, Asry has awarded a design and build contract for the construction of a 1,380-metre quay wall to Bahrain-based Nass Contracting. The $80 million contract comprises the construction of a 1,200m quay wall, with a water depth of up to 12m, designed to receive 300,000 DWT vessels as well as a 180m berth for 40,000 DWT vessels.

The quay wall, which will have the first 400m delivered by end of next year, will be fully operational by the end of 2011. It will be equipped with all services, utilities and crainage required for providing efficient alongside repairs. The project, reviewed by consulting engineers, Haskoning UK, also includes the construction of all support facilities and infrastructure necessary to ensure a high level of reliability to Asry's valued customers. The support facilities and infrastructure are currently in the design phase and are planned for tendering in the second quarter of next year.

Source : Gulf Daily News

Bahrain's economy 'has survived global crisis'

MANAMA: Bahrain has succeeded in withstanding repercussions from the global economic meltdown.

"The financial situation remains stable and assuring thanks to our balanced economic policies," His Royal Highness Crown Prince Salman bin Hamad Al Khalifa said yesterday.

He was speaking as he chaired a meeting of the Economic Development Board's (EDB) executive committee. He also highlighted the importance of precautionary measures to protect Bahrain's solid financial standing.

"Contrary to most countries, the impact of the meltdown was less detrimental to this region," he said.

He expressed his confidence in the capacity of UAE officials to deal with the current crisis competently. He also highlighted the remarkable developments achieved by the UAE and other GCC countries.

Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa, Central Bank of Bahrain Governor Rasheed Al Maraj and EDB chief executive Shaikh Mohammed bin Essa Al Khalifa highlighted the impact of the crisis on the region.

They discussed precautionary measures to deal with potential repercussions. Initiatives to maintain oil and gas supplies and meet Bahrain's needs also came under the spotlight.

Oil Minister and National Oil and Gas Authority chairman Dr Abdulhussain Mirza gave an update on the industry and electricity sector. Upgrading the output of Bahrain Oil Field and intensifying explorations are part of initiatives ensuring Bahrain's energy security, he said.

Source : Gulf Daily News

World Bank unit to list sukuk in Dubai, Bahrain

By AFP

The International Finance Corp, a wing of the World Bank, said on Wednesday it would list its first Islamic bond in the Middle East.

The IFC Hilal Sukuk, a dollar-denominated $100 million issue with a five-year maturity, will be listed with the Nasdaq Dubai and Bahrain stock exchanges, the Washington-based corporation said.

Sukuk is similar to a bond in Western finance but complies with Islamic Shariah law, which forbids charging interest.
"The Sukuk is an innovative way for IFC to create opportunities for Islamic investors who want to make a positive social impact," said IFC chief executive Lars Thunell.

"It also supports the World Bank Groups goals to integrate the Arab world into the global economy and offer greater opportunities for its people," Thunell said.

The IFC is the first non-Islamic financial institution to issue a Sukuk for term funding in the six-nation Gulf Cooperation Council, which comprises Kuwait, Saudi Arabia, UAE, Qatar, Oman and Bahrain.

It is also the first Sukuk to be listed and cleared in the Gulf Cooperation Council market only, a statement from the corporation said.

The IFC Sukuk, which has been rated Aaa by global credit rating agency Moodys, could be listed on both the exchanges next week, a financial source told AFP.

The bond issue will help develop the regions nascent Sukuk market and encourage other sovereign and corporate issuers to engage with member countries of the Gulf Cooperation Council, the IFC said.

The IFC Sukuk is aimed at supporting a pipeline of Islamic finance projects in key sectors such as health, education and infrastructure.

A separate body will issue the IFC Sukuk and "warehouse" the underlying assets, the IFC said, adding that the syndicate includes HSBC Amanah, Dubai Islamic Bank, Kuwait Finance House Bahrain, and Liquidity Management House.

"We are grateful to the Shariah scholars, our partners at the Dubai and Bahrain exchanges, and the syndicate for guiding us through this complex process, and hope that the model will facilitate the process for other issuers to enter the Sukuk market," IFC Treasurer Nina Shapiro said.

The Sukuk global asset class has a market value of over 200 billion dollars.

IFC issued its first Islamic bond in 2004. That bond, denominated in the Malaysian Ringgit currency, was a 132 million dollars equivalent three-year "bullet" bond.

The IFC formed an Islamic finance working group last year to develop a more strategic approach to Islamic finance activities.

The working group and expansion of IFC field offices in the Middle East and North Africa region have contributed to a committed portfolio of over $190 million in loans and equity in the region, the IFC said.

The global Islamic finance industry has grown rapidly to an almost one trillion dollar industry, reports have said.

But it makes up less than one per cent of world capital, giving it a huge scope for growth.

Source : Arabian Business

UAE, Saudi among world's top website censors - project

by Neeraj Gangal

The UAE ranks high among countries that have blocked most websites, a recent report has revealed.

Internet users in the country reported the eleventh highest rate of blocked websites from among the countries in the world, according to the Herdict project.

Herdict is a project of the Berkman Center for Internet & Society at Harvard University. It seeks to gain insight into what users around the world are experiencing in terms of web accessibility. As on June 12, 11am UAE time, UAE users reported that 509 different webpages were flagged as “inaccessible”, the Herdict Web project statistics revealed.

China is the most reported country when it comes to website censorship, according to the report. From among the Gulf countries, Saudi Arabia ranked at No.4. and Bahrain at No.6 in the top 10 slots.

A noteworthy aspect of the report is that the Western countries were equally vigilant about restricting websites. Germany was ranked at No.2, US at No.3, France at No.7, Australia at No.8 and the UK at No.9.

According to the www.herdict.org website, Herdict is a portmanteau of 'herd' and 'verdict' and seeks to show the verdict of the users (the herd).
Speaking to the UAE’s The National newspaper, Jillian York, the social media manager for the project said that the websites that were found by UAE users to have been blocked ranged from pornography and dating websites to religious pages.

“But then, you also get some sites where you’ve got to wonder why they’re blocked – like Flickr.”

Top 10 countries that reported the most-restricted sites as on June 12, 11am, UAE time:

1. China (4,969)
2. Germany (6,972)
3. United States (5,162)
4. Saudi Arabia (2,364)
5. Iran (990)
6. Bahrain (1,004)
7. France (1,530)
8. Australia (911)
9. United Kingdom (1,237)
10. Philippines (909)

Iran minister plans fence-mending visit to Bahrain

TEHRAN: Iranian Interior Minister Sadeq Mahsouli will visit Bahrain today in a bid to defuse a row that has threatened relations between the two Gulf neighbors.

He will carry a message from President Mahmoud Ahmadinejad for King Hamad, state-run media said, amid Bahraini anger at reported comments by a senior Iranian official saying that the island state was once the 14th province of Iran.

“Meeting and talking to the Bahraini king and delivering a message from our president tops the agenda for Mahsouli’s trip to Bahrain,” the state IRNA news agency said.

It said the minister would also take part in a security conference in Manama.

The ISNA student news agency said Mahsouli would meet senior Bahraini officials in a bid “to elevate cooperation between the two countries.”

Bahrain protested after Ali Akbar Nateq Nouri, a prominent conservative member of Iran’s powerful Expediency Council, reportedly said the kingdom used to be Iran’s 14th province and had a representative in its Parliament.

Iran has since moved to defuse the spat, which has also threatened a major gas deal between the two nations, saying it respects Bahrain’s sovereignty.

Gulf states called on Iran on Sunday to condemn the remarks.

“That was a speech which caused misunderstanding and there were some misinterpretations,” Iran’s Foreign Ministry spokesman Hassan Qashqavi told a news conference, without elaborating.

Iran’s relations with Bahrain are “based on mutual respect,” Qashqavi said.

Manama has halted talks with Tehran over natural gas imports over the reported comments. Bahrain’s foreign minister also summoned the Iranian ambassador to protest the remarks earlier in February.

Qashqavi said the gas contract would be valuable for both Iran and Bahrain and both sides wanted to see it implemented.

He said Iran’s Foreign Minister Manouchehr Mottaki “insisted on the improvement of mutual relations” in talks with his Bahraini counterpart Sheikh Khaled bin Ahmed Al-Khalifa.

He did not say when they had held talks.

Source : Arab News

Iran says it respects sovereignty of Bahrain

TEHRAN: Iran yesterday moved to defuse a row with Bahrain, saying it respects the sovereignty of the neighboring Gulf kingdom, which has halted talks on a natural gas imports deal with Tehran.

“Our position on Bahrain is clear. We have repeatedly said that we respect the sovereignty and independence of all neighboring countries and the region, especially Bahrain,” Iranian Foreign Ministry spokesman Hassan Ghashghavi told Arabic language state television Al-Alam.

Bahrain has strongly protested recent comments of Ali Akber Nateq Noori, a prominent conservative leader and member of Iran’s expediency council — the top arbitration body — that the Gulf kingdom used to be Iran’s 14th governorate and had a representative in its Parliament.

“We do not have eyes on any country. This is a storm created by the media. Nateq Noori did not refer to Bahrain,” Ghashghavi said in his statement to Al-Alam. “In his speech in Mashhad he talked about the achievement of the Islamic revolution and compared them to the era of the hated monarchy. He did not talk at all of current global, regional and political issues.”

On Feb. 11, a day after Nateq Noori’s speech, Iran’s Khorasan newspaper quoted him as saying in his address that “under Mohammad Reza Pahlavi, this useless king, one of our provinces which has now become a country named Bahrain was taken away from us.

“At that time Bahrain was our 14th province and had a representative in Parliament.”

Bahrain’s Foreign Minister Sheikh Khalid bin Ahmed Al-Khalifa said the Iranian remark was an “infringement of sovereignty” and a “distortion of historical fact.” He spoke to reporters in Manama following meetings yesterday with visiting foreign ministers of Turkey and Russia.

“We will never accept distortion of historical facts about the history of the Kingdom of Bahrain,” Sheikh Khalid said. “We are hurt by ... Iranian statements,” he added. “These remarks must be silenced.”

The minister confirmed yesterday that negotiations over a gas import deal following the signing of an agreement during Iranian President Mahmoud Ahmadinejad’s visit in 2007 have stopped.

Russia and Turkey came out in support of Bahrain. Russia’s Foreign Minister Sergei Lavrov and his Turkish counterpart Ali Babacan both expressed their countries’ support for Manama in separate press conferences with Sheikh Khalid.

“It’s important to accept the international legitimacy and sovereignty of all countries and refrain from questioning and harming them,” Lavrov said when asked about his country’s stance on Iran’s recent claims.

An hour earlier, Babacan said Turkey fully supports Bahrain and would not accept any questioning of its sovereignty. “The sovereignty of Bahrain and its safety is not something to be questioned. It’s sovereignty must be respected,” he said.

Source : Arab News

India's Financial Tech to launch new boarse in Bahrain

MANAMA, Jan 22 (Reuters) - India's Financial Technologies Ltd (FITE.BO) will launch a new bourse in Bahrain that will provide a secondary market for Islamic bonds, a company executive said.

The new exchange, called Bahrain Financial Exchange, has been licensed by the Gulf state's central bank and plans to start operations in the first quarter of next year, Financial Technologies' director Arshad Khan told Reuters.

Unlike conventional bonds the Islamic bond market, or sukuk, lacks a strong secondary market and most buyers hold the asset to maturity.

"This will be an opportunity to establish a secondary market where the transfer of ownership can keep happening, from buyer to seller," Khan, a director for business development in the Middle East and North Africa, said in an interview late Thursday.

"When a sukuk comes onto the market (today), banks will try to absorb it in their own portfolio, or sell it to their customers", he said.

The exchange will provide a trading platform for both Islamic and conventional products in equities, derivatives, commodities and currencies.

A strong secondary sukuk market could attract other important institutional investors such as pension funds to the sukuk market, Khan said.

"In so far, sukuk has gone to big financial players or high-end individuals, it has not gone to the retail market," he said.

Sukuk volumes dropped dramatically in 2008, hit by the global liquidity crunch. Total sukuk issuance stood at $14.9 billion, down 56 percent from 2007, according to ratings agency Standard & Poors.

Khan said he still sees fundamental demand for sukuk despite the current financial crisis. He said sovereign sukuk issuers, in particular, would be a key driver in reviving the market.

Singapore on Monday announced its first sukuk programme with a volume of $134 million to promote the growth of Islamic finance in the South East Asian city-state.

Islamic banks cater to investors who want to avoid earning or paying interest.

"There's a lot of money being aggregated or collected in Bahrain, but because local investment (opportunities) don't exist, it goes out," he said.

The small island kingdom of Bahrain has established itself as a regional banking centre on the back of Saudi oil wealth that uses Bahraini banks to invest on international markets. (Reporting by Frederik Richter; Editing by Kazunori Takada) (For Reuters content on Islamic finance, click on ISLAMIC)

$90mn collected during TV Gaza fundraisers

By Andy Sambidge

TV fundraising campaigns in the UAE and Bahrain have raised a total of $90 million to help the Palestinian people in Gaza strip.

The nationwide fundraisers, aired through all TV and radio stations on Friday, saw $86 milllion raised in the UAE and $4 million in Bahrain, while solidarity marches also took place simultaneously in four of the emirates.

Sheikh Hamdan bin Zayed Al Nahyan, Deputy Prime Minister, Chairman of UAE Red Crescent Authority (RCA) and Head of the Office of Coordination of Foreign Aid, thanked UAE residents for their generosity, saying that the donations received had exceeded expectations, news agency WAM reported.
Sheikh Hamdan said the RCA, in association with the humanitarian relief and charity organisations in the UAE, would coordinate with international aid organisations to ensure the aid bought by donations would be distributed as soon as possible.

The rulers of Abu Dhabi and Dubai pledged to rebuild 1,200 homes in Gaza, while Sheikh Saif bin Zayed, the Minister of the Interior, pledged to rebuild 100 houses.

The NMC Hospital also gave 1.4 million dirhams of medical equipment as part of the fundraising initiative.

Sheikh Mansour bin Zayed, Minister of Presidential Affairs, also pledged to build an extension to al Shafaa Hospital in Gaza while the Western Region donated 150,000 dirhams and 110 grammes of gold.

In Bahrain, the main contributors were Bahrain National Committee for the Support of Palestinians in Gaza chairman Shaikh Nasser bin Hamad Al Khalifa and leading businessman YBA Kanoo, who donated 100,000 dinars ($265,000) each. BBK donated $300,000 while NBB, Batelco, Alba and Bapco contributed 100,000 dinars each.

Meanwhile, more than 10,000 men, woman and children turned out in four emirates to make sure the people of Palestine were not forgotten.

In Sharjah, an estimated 5,000 gathered along Khaled Lagoon draped in Palestinian flags and wearing traditional black and white scarves, or kaffiyeh.

In Abu Dhabi, about 4,000 demonstrated along the Corniche Road while in Dubai, supporters gathered in Greek Park, waving flags and placards.

Hundreds donned the kaffiyeh in Ras al Khaimah to demonstrate outside Manar Mall.

Source. ArabianBusiness.com

Best Islamic Investment Bank (Global Finance) : Unicorn Investment Bank

Founded in 2004 and headquartered in Bahrain, Unicorn Investment Bank (Unicorn) is an Islamic investment bank, with an international presence in the United States, Malaysia, the United Arab Emirates, Turkey and Pakistan. Unicorn seeks to deliver exceptional value to clients and shareholders through a focus on innovation, professionalism and integrity – the shared values that drive the Bank’s endeavour to be a leading global provider of Shari’ah-compliant investment banking products and services.

Unicorn’s integrated business model is built around six core business lines: Capital Markets, Private Equity, Corporate Finance, Asset Management, Strategic Mergers & Acquisitions and Treasury. The Bank leverages its resources and expertise across each of these business lines to provide clients with a broad range of investment solutions tailored to meet their specific requirements.

The Bank’s integrated product offering and financial structuring skills are coupled with an ability to distribute Unicorn products and services to a broad client base across the GCC region, and the Bank is now developing the capability to do so across the wider Middle East region, Turkey and Southeast Asia.

In every aspect of its business and through every level of the organisation, Unicorn is committed to upholding the highest standards of corporate governance and transparency. The Bank’s innovative products and transactions are fully compliant with Shari’ah principles and we believe that they are consistent with international financial best practice. The Unicorn Shari’ah Supervisory Board ensures that all investment policies, structures, products and financial services and activities that the Bank is involved in are in conformity with Shari’ah principles, while the Bank’s stringent corporate governance standards seek to ensure that the Bank, its directors and its employees follow high standards of ethical conduct and adhere to the principles of fairness, transparency, accountability and responsibility in all day-to-day operations.

Unicorn has achieved uninterrupted growth since its inception and has received widespread industry recognition for excellence and vision. The Bank intends to continue to build on its track record by delivering innovative and attractive investment products and services in a professional and transparent manner.