RIYADH, 6 February 2006 — Bank Aljazira said yesterday its net profit reached a record SR874.4 million ($233.2 million) in 2005, up 366 percent from the previous year. Total operating income rose 120 percent to SR1.32 billion, the bank said in a statement on the bourse website. The bank said its performance was due to the economic boom in the Kingdom on the back of rising oil receipts, increased lending and improved living standards. Shareholders’ equity rose 74 percent to SR2.67 billion, assets rose 32 percent to SR14.2 billion, deposits rose 33 percent to SR10.8 billion and loans increased also 33 percent to SR6.9 billion.
Riyad Bank Launches Gulf Investment Fund
RIYADH, 6 February 2006 — Riyad Bank has launched an investment fund for shares in booming Gulf Arab stock markets, it said yesterday. The Riyad Gulf Fund opened to subscribers on Feb. 4 at a cost of SR10 per unit with a minimum subscription of SR10,000 ($2,666), it said in a statement on the bourse’s website. The fund includes companies in the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman. “The fund suits particularly investors in the Saudi stock market either those who invest through Saudi investment funds or through direct trading in the market,” it said.
L&T Eyes Projects in Saudi Arabia, Kuwait
DUBAI, 6 February 2006 — Larsen & Toubro Ltd., India’s largest engineering and construction company, expects soon to win a petrochemical project in Saudi Arabia worth more than $100 million and is in talks for a joint venture in Kuwait. K. Venkataramanan, the firm’s president for operations, told Reuters late on Saturday the firm is seeking yearly growth of 25 to 30 percent to gain orders worth $1.6 billion within the next four years in the booming Gulf Arab markets. “Today we do about $550 million per year in the Gulf,” he said. “The plan we have made strategically is to reach $1.6 billion by 2009-2010.” “It’s a market where we have very good experience,” Venkataramanan said.(Will Rasmussen)
MTC Bids for Egypt’s 3rd Mobile License
KUWAIT, 6 February 2006 — Kuwait’s Mobile Telecommunications Co. (MTC) confirmed yesterday it was bidding for Egypt’s third mobile phone license. “We look forward to having an opportunity to support Egypt’s burgeoning telecommunications infrastructure and growing economy,” Managing Director Saad Al-Barrak said in a statement that noted MTC “is bidding for the third GSM license in Egypt.” Egypt said in late January it would start a bidding process within two weeks for the third licence, which will be for both second generation (2G) and 3G mobile services. The new network is expected to start operating by the end of 2006 or early 2007. (Haitham Haddadin)
Shuaa Capital’s Net Profit Declines
DUBAI, 6 February 2006 — UAE investment company Shuaa Capital posted its second consecutive decline in quarterly net profit yesterday, although earnings in the nine months to December grew more than 106 percent. Shuaa reported a nine-month net profit of 305.7 million dirhams ($83.23 million). December quarter earnings came in at 70.2 million dirhams, down 34 percent from the three months to September. Analysts said Shuaa’s performance may have been affected by a downturn in UAE stock markets late last year.
Kuwait Stock Index Crosses 12,000 Points
KUWAIT, 6 February 2006 — Kuwait’s shares index closed above 12,000 points for the first time yesterday as strong corporate earnings boosted already buoyant investor sentiment. The index of the second largest Arab bourse KWSE gained 1.10 percent to end at 12,054 on the first session of a trading week cut short by holiday. (Haitham Haddadin)
