RIYADH, 3 April 2006 — The Saudi government has approved the construction of a SR14.086 billion ($3.76 billion) aluminum smelter with an annual capacity of 623,000 tons, the official Saudi Press Agency reported yesterday. The energy-intensive aluminum industry is a key part of efforts by some Gulf Arab countries to diversify economies that rely heavily on oil exports. The agency quoted a senior Trade and Industry Ministry official as saying the plant would also produce 200,000 tons of alumina. The plant, which will belong to state mining firm Maaden, will be located in the Ras Al-Zour industrial zone in eastern Saudi Arabia.
Saudi Stocks Hit 3-Week High
RIYADH, 3 April 2006 — Saudi shares jumped 3.5 percent yesterday to hit a three-week high, helped by a buying spree by mutual funds and big private portfolios. The Tadawul All-Share Index closed at 17,216.23 points, with a noticeable rise in turnover to SR21.4 billion ($5.7 billion), but still below its level before a sharp correction that began in late February. The index of the Arab world’s largest bourse had fallen 2.51 percent on Saturday after a strong three-day rally. Blue-chip stocks Saudi Telecom Co. (STC), Saudi Basic Industries Corp. (SABIC), Saudi Electricity Co., Savola Group and Al-Rajhi Bank accounted for more than 36 percent of total turnover. Advancers outnumbered decliners 72 to 7.
UAE Raises Rates in Line With US
DUBAI, 3 April 2006 — The central bank of the UAE said yesterday it had raised interest rates in line with last week’s move by the US Federal Reserve, although it did not say what the new rate was. At 2:00 p.m. local time (1000 GMT) the rate on the benchmark one-week UAE dirham Certificate of Deposit maturing on April 9 was 4.75 percent, up from the previous 4.50 percent. On March 28 the US Federal Reserve increased the benchmark Federal Funds rate to 4.75 percent.
Aldar to Start Selling Units
DUBAI, 3 April 2006 — Abu Dhabi-based Aldar Properties said yesterday it will start selling units in its $14.7 billion development in Abu Dhabi to local and foreign investors after a law amendment allowed foreign ownership.