KUWAIT, 5 March 2007 — Kuwait’s central bank governor declined to comment on a review of the country’s exchange rate regime yesterday, amid intense market speculation that the Gulf oil exporter would change the dinar’s peg to the dollar. Asked whether Kuwait was planning to revalue the currency, Sheikh Salem Abdul-Aziz Al-Sabah told reporters: “There is no change so far. We are still pegged. Up to now there is no information on this issue.” Kuwait is the country markets see as most likely to revalue its currency after a meeting in Saudi Arabia next month at which regional central bank governors will review a system of fixed exchange rates designed to prepare for monetary union.

Bahrain, Saudi Firms Sell $409m Offices

Reuters

MANAMA — A Bahraini investment bank and a Saudi Islamic investment firm said yesterday they had sold a property in one of London’s most prestigious districts for $409 million. Bahrain-based International Investment Bank and Saudi Economic Development Company said in a statement they had originally bought the office block at 33 Grosvenor Place in London’s Belgravia, in central London and close to Buckingham Palace, for $280 million in 2005. The statement did not give the identity of the buyer.

Saudi Bourse Hits Year-High

Reuters

DUBAI — Saudi stocks hit a year-high during trading yesterday as investors piled into Al-Rajhi Banking & Investment Corp. after it approved a cash and share dividend plan. The Saudi index closed up 2.52 percent at 8,586.62 points, having hit an intra-day peak of 8,629.73 points, its highest level this year. Al-Rajhi, the largest Gulf Arab bank by market value, jumped 6.79 percent after its shareholders approved plans to give one free share for every one held by investors and a cash dividend of SR1 ($0.267) “The market looks promising in the longer term and it should keep its momentum. But should profit-taking happen with the big stocks, it would have a negative impact on the index,” said Hani Baothman, chief executive of Aayan Capital.

STC to Distribute SR5.75 Dividend

Reuters

RIYADH -— Saudi Telecommunications Co. (STC), the largest Arab telecom company by market value, said yesterday it would pay a dividend of SR5.75 ($1.53) for 2006, up 23.6 percent from 2005. The board proposed a SR1.5 dividend for the last quarter of 2006, subject to shareholder approval at an meeting on April 1.