JEDDAH, 23 January 2006 — The Saudi Capital Market Authority (CMA) has approved the request of Saudi Automotive Services Co. (SASCO) to increase its capital from SR300 million ($80 million) to SR450 million ($120 million). The company is going to increase its capital by issuing a free share for its shareholders for every two outstanding shares. CMA required the company to issue the new shares through transferring the capital difference of SR150 million from its net profits into its shareholder’s equity account. The number of the company shares, thus, will increase from 6 million to 9 million shares.
CMA Investigates Ashargiyah Agriculture
RIYADH, 23 January 2006 — The Saudi Capital Market Authority (CMA) has opened an investigation to determine whether Ashargiyah Agriculture Development Company has violated any of its regulations. The issue at hand is the statements made by the company’s chairman of the board in Al-Eqtisadiyah newspaper on Jan. 5, 2006 about the company’s intentions in the coming period to approach the relevant authorities about raising its capital and merging with other companies. Two days after that, the company posted a note on Tadawul website that in reference to the newspaper article and based on inquiries by the CMA, the chairman assures that there were no discussions about raising the company’s capital whether at its board or with other institutions and that currently there are no mergers with other companies. CMA noticed the contradiction in statements and the continued rise in the company’s stock price despite the note. Based on regulations for protecting investors and ensuring transparency and monitoring announcements and information about the financial market, CMA has called for an investigation.
Contracts Worth SR44.13bn Approved
RIYADH, 23 January 2006 — The Ministry of Finance had approved during the previous year around 3,176 contracts for a total of SR44.13 billion. In a statement on its website, the ministry detailed those contracts which are distributed as 201 contracts for running contracts that include pharmaceuticals, rations and fuel for SR1.86 billion and 1,143 contracts for operations and maintenance for SR13.63 billion. Other contracts were for construction projects that include roads, schools, hospitals and sewage.
UAE Insurance Firm Plans to Enter Kingdom
DUBAI, 23 January 2006 — Arab Islamic Insurance Company (Salamah) of the United Arab Emirates is studying establishing a re-insurance company in Saudi Arabia with a capital of SR1 billion, reported Al-Eqtisadiyah newspaper. This step comes after Salamah received approval from Saudi Arabian Monetary Agency (SAMA) to establish an Islamic insurance company with a SR100 million capital.
New CEO Takes Over at NCB
JEDDAH, 23 January 2006 — Abdulkareem Abu AlNasr has been promoted as chief executive officer of the National Commercial Bank (NCB). He was general manager of the bank before. The appointment, which is effective from Jan. 1, follows the approval of the NCB’s board of administration, according to Abdullah Bahamdan, director of the NCB’s board of administration. AlNasr expressed his appreciation to the board directors and members for their continued support and trust.
Saudi Arabia
to Build 90 Dams
Reuters
RIYADH — Saudi Arabia will build 90 new water dams in 2006 at a total cost of SR1.16 billion ($309.3 million), mainly to feed its rapidly diminishing underground aquifers, crucial for the agricultural sector. The project will raise the total capacity of water dams in the desert country to 2.0 billion cubic meters (70.63 billion cu ft), the Water and Electricity Ministry said in a statement. Official statistics show Saudi Arabia has 223 dams with a total capacity of 836 million cubic meters.
NBD Lists $750m Bond on DIFX
DUBAI, 23 January 2006 — The National Bank of Dubai (NBD), rated as the UAE’s second-biggest bank in terms of assets, listed its recently launched $750 million bond on the Dubai International Financial Exchange (DIFX) on Wednesday. The floating rate note will be the 11th security and the first debt instrument to list on DIFX, the new exchange in the city’s financial free zone, since it opened in September. The note matures in December 2010 and carries a coupon rate 0.35 percent over a three-month dollar London inter-bank offered rate (LIBOR).
Shaikha Lubna Stresses Importance of PDIC
ABU DHABI, 23 January 2006 — The “Palestinian Development and Investment Conference” (PDIC) that will be held next April in the cities of Gaza and Bethlehem, will be a milestone for investment in Palestine, Shaikha Lubna Al-Qassimi, UAE minister of economy and planning said yesterday. Shaikha Lubna made her comments during the forum titled “A Look Up on the Palestinian Development and Investment Conference” organized by the Palestinian Business Council, held in Emirates Palace, Abu Dhabi.