Saudi consumer sentiment onupward trend

Updated 07 April 2013
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Saudi consumer sentiment onupward trend

Consumers in Saudi Arabia are extremely optimistic in their overall outlook, with a score of 95.2, according to the MasterCard Index of Consumer Confidence. The index measures consumers’ outlook for the coming six months by evaluating 5 different indicators.
“Consumers are optimistic about all indicators, with regular income (98.8) receiving the most positive score, followed by employment (97.6), economy (97.3), stock market (93.5) and quality of life (88.9), Kashif Sohail, MasterCard’s market manager, for Saudi Arabia, Bahrain and Pakistan, says.
The MasterCard Index of Consumer Confidence measures consumers’ outlook by assessing their optimism about regular income, employment prospects, the outlook for the economy, the stock market and quality of life, he explained.
The optimism for regular income and employment prospects could have been driven by the government’s recent initiatives to create more jobs for nationals. Consumers’ outlook for the economy is also very positive, with expected growth levels remaining higher than expectations for the global economy. High income levels are also likely to affect consumers’ sentiment on their quality of life, Sohail said.
The index findings indicated that the sentiment among consumers is very optimistic, with a score of 97.3 on their outlook for the economy.
This outlook could have been driven by a number of factors. Among these, a recent PricewaterhouseCoopers report that the Kingdom’s economy, which will treble to $ 3 trillion by 2050, is bound to positively impact consumer sentiment. According to The Economist Intelligence Unit, the market is expected to see 4.3 percent growth in 2013 while the International Monetary Fund (IMF) has forecasted 4.1 percent growth in Saudi Arabia this year.
The overall Saudi Arabia Consumer Confidence score is 95.2, as compared to 90.9 in the previous edition of the index released six months ago.
Compared to the previous edition of the survey, consumers in Saudi Arabia are more optimistic about all indicators.
 


Dubai Aerospace signs $480 million loan deal

Updated 2 min 7 sec ago
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Dubai Aerospace signs $480 million loan deal

DUBAI: Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft lessors, said on Monday it had signed a four-year loan deal for $480 million.
DAE, a government-controlled company set up in 2006, has become one of the world’s largest aircraft lessors after acquiring Dublin-based AWAS last year.
The acquisition tripled the Dubai aircraft leasing and maintenance company’s portfolio to about 400 aircraft worth more than $14 billion.
The $480 million loan, which includes both conventional and Islamic finance tranches, has a so-called “accordion facility” allowing it to be increased to up to $800 million.
With the loan, the company’s unsecured revolving credit facilities increase to between $1.125 billion and $1.445 billion, depending on final size of the latest deal, Firoz Tararpore, DAE’s chief executive, said in a statement.
“On a pro forma basis as of December 2017, if this facility is fully drawn and if the proceeds are used to pay down secured indebtedness, DAE’s percentage of unsecured debt would increase from 26 percent to a range of 31-34 percent.”
Last year, the company issued $2.3 billion in senior bonds split across three tranches last year, partly to finance the AWAS acquisition.
Tarapore said in an interview last week that DAE was in talks to buy a near-record total of 400 jetliners from Airbus and Boeing in an order that could be worth more than $40 billion at list prices.
Al Ahli Bank of Kuwait coordinated the latest loan deal and was also the lead arranger and joint bookrunner together with First Abu Dhabi Bank, while Noor Bank joined the deal as lead arranger.