KUWAIT CITY, 12 December 2005 — Saudi Arabia yesterday indicated the organization would keep its production quota at a meeting the next day but cast doubt on the need to renew an offer of spare capacity to the oil market. “Most probably there is no need to do anything to the ceiling or to the level of production,” said Minister of Petroleum and Mineral Resources Ali Al-Naimi as he arrived in Kuwait on the eve of the one-day meeting. The 11-nation of the organization of the Petroleum Exporting Countries has an official production quota of 28 million barrels per day (bpd). Asked about renewing the pledge to create two-million bpd in spare capacity for another three months, Naimi emphasized the current offer, which is due to expire in December, has not been used. “Is there a demand for it?” he asked reporters, without giving a direct answer to the question.
bmi to Launch New Service
RIYADH, 12 December 2005 — bmi is to launch a three times weekly service to Jeddah from London Heathrow starting on April 23, 2006. The introduction of a direct link from Heathrow to Jeddah follows the successful launch in September of a three times weekly service to Riyadh. It will be the only UK airline providing key direct links from Britain to both of the country’s administrative and commercial centers. The new destination will offer customers the airline’s full inflight service including an onboard chef for business class passengers.(Mohammed Rasooldeen)
AUB Buys 49% of Iraqi Bank
MANAMA, 12 December 2005 — Bahrain’s Ahli United Bank (AUB) said yesterday it had bought a 49 percent stake in privately owned Commercial Bank of Iraq for $34.1 million. AUB brushed aside concerns about security in Iraq, saying reconstruction after years of war and economic sanctions represented a major opportunity for the banking industry. “The economic potential for Iraq is tremendous. After years of economic isolation, the rebuilding of the country’s industry, infrastructure and oil sector will need considerable banking support,” AUB Chairman Fahad Al-Rajaan said in a statement. “We are positive that the current security and operating environment will improve substantially.” he said. (Reuters)
Bond Issue of Dubai Port Oversubscribed
DUBAI, 12 December 2005 — The $2.8 billion Islamic bond issue from Dubai’s ports corporation has attracted intense investor interest and is likely to be oversubscribed by at least 50-75 percent, a lead manager said yesterday. The bond’s issuer is the Ports, Customs and Free Zone Corporation (PCFC), holding company of Dubai Ports World, which is expanding aggressively overseas and last month made a $5.7 billion bid for UK ports operator P&O. The Islamic bond, or sukuk, is already the largest in history and the first ever convertible Islamic bond, offering holders 30 percent of the shares of government-owned PCFC’s companies if they go public in the next three years. (Reuters)
Tecom Buys 40% Stake in Axiom
DUBAI, 12 December 2005 — Tecom Investments, a unit of state-run Dubai Holding, has taken a 40-percent stake in leading regional mobile phone distributor Axiom Telecom, the official news agency WAM reported on Friday. Axiom Telecom, part of the private Dubai-based Al-Bannai Group, will retain its current management and operate independently, WAM quoted Tecom officials as saying. It did not give the value of the deal. In October, Tecom took a minority stake worth about $146 million in pan-European communications network operator Interoute. Axiom officials have said they expect revenues of up to 4 billion dirhams ($1.09 billion) in 2005, up from 2.5 billion last year. (Reuters)
Ithmaar Plans IPO in First Quarter
MANAMA, 12 December 2005 — Bahrain-based investment bank Ithmaar is planning an initial public offering in the first quarter of next year, having raised $50 million through a private placement, the company said in a statement. The company will list on the Bahrain Stock Exchange and is looking at another Gulf Arab stock market, the statement said without giving details. “The IPO would be launched in the first quarter of 2006 after obtaining relevant regulatory approvals,” it said. Shamil Bank is lead manager and financial adviser of the issue. The statement did not give the value of the IPO.(Reuters)
Jordan’s Trade Deficit Widens 48.2%
AMMAN, 12 December 2005 — Jordan’s trade deficit grew by 48.2 percent in the first 10 months of the year, to 3.599 billion dinars ($5.08 billion), from 2.429 billion dinars ($3.43 billion) in the same period of 2004, according to official statistics released yesterday. Economists attributed the expanding trade gap mainly to a 30.6 percent growth in the country’s imports, which the state-run Statistics Department put at 6.111 billion dinars ($8.63 billion) in the first 10 months of the year, compared with 4.678 billion dinars ($6.6 billion) in the same period of last year.(Abdul Jalil Mustafa)