National Bonds registers record sales of Dh1b

National Bonds, the Shariah-compliant national savings scheme of the UAE, yesterday announced it has achieved record-breaking sales in the first five months of 2008. The company's sale of bonds touched Dh1 billion at the end of May 2008, an increase of 150 per cent compared to Dh409 million for the same period in 2007.

Growth from the beginning of the year shows an increase in customer numbers by 21 per cent and total volumes by 58 per cent. Mohammed Qasim Al Ali, CEO of National Bonds Corporation, said that the surge in sales was driven by the company's strategy to increase awareness of the value of savings among all UAE residents. "The simplicity of investing in our bonds has made us a household name in the UAE. The savings habit is getting ingrained deeper in the UAE society as demonstrated by the growth of 150 per cent in the number of bond sales in 2008 compared to the same period in 2007." Al Ali added that the company's stellar performance in 2007 has greatly strengthened investor confidence: "Earlier this year, we disbursed an annual profit of 6.03 per cent, which is higher than that of any other comparable savings product in the market.

The key value proposition is that our bonds are priced as low as Dh10 and can be purchased from over 300 locations in the UAE. Today, our 420,000 bondholders come from all walks of life, which is testament of our efforts in making National Bonds everyone's favourite place to save. "We have invested in several key initiatives to enhance customer experience with National Bonds. Among them is an automation system that once implemented will immediately provide customers bond certificates at the time of purchase. This will accelerate their enrollment for the next draw. National Bonds is also looking at other convenient tools by offering customers alternate channels to purchase bonds from the comfort of their home or office. "

/Khaleej Times/

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DEWA increases Islamic bond sale 16% to $871 million

Dubai Electricity & Water Authority, the Gulf emirate's state-run utility known as Dewa, increased its first sale of Islamic bonds in United Arab Emirates dirhams by 16 percent on investor demand for the securities.

Dewa raised its sale of five-year floating-rate Ijarah sukuk to 3.2 billion dirhams ($871 million) from 2.75 billion dirhams, data compiled by Bloomberg show. The notes pay 1.25 percentage points more than the quarterly Emirates interbank offered rate, which was last at 1.8813 percent, the data show.

Dewa hired Barclays Capital, Citigroup Inc., Dubai Islamic Bank PJSC and Emirates NBD PJSC to help it raise the sukuk, a banker familiar with the sale said May 21.

Muslim Shariah law forbids interest payments, so Ijarah sukuk are based on a leasing contract and pay a profit distribution to investors rather than interest.

/Bloomberg/

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Al-Salam Bank (Sudan) to list its shares in the Dubai Financial Market start June

Al-Salam Bank- Sudan declared that it will list its shares in the Dubai Financial Market, and they will be put into circulation on Thursday, June 5th 2008, after the bank received the approval of the Emirates Securities and Commodities Authority for the inclusion of its shares in the Emirati financial markets.

Al Salam Bank�s shares will be listed in the said market during a great ceremony to be held in the Dubai Financial Market, in the presence of the members of the board of directors and the director general of Al-Salam Bank, Issa Kazem Chairman of the Dubai Financial Market, in addition to many members of the Executive Administration of Al-Salam Bank and the Dubai Financial Market.

Hussein Mohammed Al-Meeza, Vice Chairman declared: "The listing of the shares of Al-Salam Bank- Sudan, in the Dubai Financial Market, with the scope of the bank�s strategy aiming at enhancing its position and its strength among the Arab financials, and consolidating its regional and international presence, as the bank�s directors seek to facilitate the circulation process for the shareholders in the UAE and the other states of the region, but also to grant them the freedom of selection for circulation in many financial markets, according to their priorities and interests." Al Meeza added: "Al-Salam Bank- Sudan is one among the most important banks in Sudanese market, and it recently made huge steps, as its headquarter was moved to the capital Downtown (Khartoum). Accordingly, a comprehensive study was prepared in order to open many branches for the bank during the current year in many locations in Sudan. Furthermore, many automatic banking machines will be commissioned in key places in the Sudanese capital and other main cities." He explained: "Al-Salam Bank (Sudan) will keep on offering the best bank services which will keep pace with the economic developments in Sudan, so that it contributes to enhance the pillars of the Sudanese economic growth." Al-Salam Bank (Sudan) is considered among the most important banks, with respect to the capital in the Khartoum market of financial papers, and among the most eminent banks operating in the Sudanese market, throughout its innovative and excellent bank services. The bank constitution came as a fruit of an Emirati- Gulf- Sudanese cooperation; as its operations started up on May 25th 2006, with a capital of 100 million dollars.

The results of the bank for the year 2007 show record results, despite its recent presence in the Sudanese bank market, as the bank managed to achieve the aimed balance between the investment returns and the investment risks and it contributed to achieve high growth rates against the minimum possible of risks. Within the scope of the evaluation of the bank performance, it managed to achieve brilliant results in the central Sudanese bank, for the preventive control for the last quarter of the year 2007, according to CAEL indicators, since it obtained a strong classification, which is regarded as one of the greatest achievements of the bank.

The big bank investments during the year 2007 resulted in good returns, achieving a profit of 30 Million Dollars against 25 million during the year 2006, including the share of depositors from profits which reached 7.4 Million Dollars against 7 Million for the year 2006. In addition, it achieved a net profit for shareholders, which reached 12.3 dollars after the deduction of zakat and taxes. As for the property rights, they reached 149 Million Dollars with a growth rate of 8% for the year 2006.

The ordinary general assembly, held in Khartoum on 23/3/2008, declared the distribution of the monetary profits among shareholders, at a rate of 10%.

/WAM/

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"Dar Takaful" shares available for acquisition

Founders of "Dar Takaful", a public joint stock company, announced that shares of the company will be available for acquisition starting the 1st of July 2008. With a total of Dh100 Millions distributed over 100 Million shares, and a nominal value of one Emirati Dirham per share, the company will offer 55 Million shares for public acquisition, representing (55%) of the total capital for a nominal value of Dh1 per share. In addition to 3.5 fils per share as issuance expenses.

This announcement regarding "Takaful House", comes inline with the continuous success achieved by "Mawarid Finance", which attained a net profit of Dh95.1 Millions in a period less than 1 year from its launch. "Mawarid Finance" is considered one of the major investors of "Takaful House".

The chairman of the "Takaful House" founders committee, Mohammed Musabah Al Neaimi clarified that company shares are available for companies and individuals (Nationals '&' GCC Citizens), and the companies registered in the UAE owned by nationals.

Al Neaimi reviewed the conditions of shares acquisition, and clarified that the minimum limit for subscription was set at 25000 shares for each form, with multiples of 1000 shares. He also stated that the 1st of this coming July will witness the meeting of the first founding general assembly.

The Chairman of the founders committee further pointed out the key differences between Conventional insurance and Islamic insurance ( Takaful ), which comes in compliance with the teachings of Islamic Sharea, and has always been received well by clients seeking alternative for the conventional insurance. To do away with prohibited "Riba" associated with interest schemes. Takaful insurance is a kind of mutual collaboration and cooperation between clients, who are partners in liability.

In addition to the above, Takaful insurance is distinguished from other schemes, which consider insurance amount surplus as profit for the company in case of no accidents or damage. However, in Takaful, this surplus is distributed on clients insured at the company as determined by the "Fatwa and Sharea Monitor Authority".

Al Neaimi anticipated a rise in the shares of Takaful companies in the UAE insurance market, due to the success of the Islamic banking scheme, and the series of success achieved by Takaful scheme insurance companies. in addition to the client's awareness about the difference between commercial and Takaful insurance. Clients are keen to avoid suspicious dealings associated with "Riba", hence, they targeted the Takaful market, which scored an income of around $6 Billion in 2006.

He further pointed that the UAE provides a suitable environment to become an international capital for Islamic dealings and Takaful activities, as proved. Therefore, we can say that "Takaful House" came to exist in the right time and place. Al Neaimi also pointed that four Takaful companies are operating in the country currently, with total installments of Dh832 Millions collected by the four companies, what represents 11% of the total size of the market. Based on figures, this sector of the market is witnessing a great deal of growth, knowing that the concept of Takaful was introduced to markets recently.

The chairman of the "Takaful House" founders committee, Mohammed Musabah Al Neaimi, said that according to studies and reports, the country had 48 insurance companies by the end of 2006 (24 local and 24 foreign). National insurance companies set a new record of Dh4.6 billion until June 2007, according to the last half financial results of all national insurance companies Listed in the local. Results also indicate an increase in the total net profits of up to Dh1,114 billion compared with profits of up to Dh541 million during the same period of last year, thereby realizing the growth rate of 112%, which is a positive indicator that confirms companies have moved beyond the plight of fluctuations in the stock market and securities in 2006.

Al Neaimi reviewed the activities to be conducted by the company in the areas of Takaful insurance and reinsurance based on the Islamic concept of Takaful, including cars, property, against fire, ships and shipping, work risks, personal accidents, engineering, construction, various accidents, civil liability, health and family, consultancy regarding Takaful insurance and reinsurance.

He announced that after closing the shares acquisition, " Takaful House" would request to the securities and commodities authority, as well as the Dubai Financial Market to include its shares in the later. He assured that the offering the shares came in accordance with the terms and conditions applicable to the securities and commodities authority in the UAE, adding that shares has not been registered with any other regulatory body in another country.
/WAM/

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Dewa sets Islamic bond price guidance

Dubai Electricity and Water Authority (Dewa) has set initial price guidance for its Islamic bond at between 100 basis points to 125 basis points over six-month Emirates Interbank Offered Rate, two bankers said.

The state-owned utility is returning to the market after postponing the sale of dollar-denominated bonds in November.

The bankers, who attended a Dewa roadshow, declined to be identified. The utility's latest sale is priced in dirhams. The five-year sale of the floating rate Islamic bonds (sukuk), is managed by Barclays Capital, Citigroup, Dubai Islamic Bank and Emirates Bank International.
/Reuters/

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Dewa to sell $1 billion of bonds

Dubai Electricity & Water Authority is selling $1 billion of bonds backed by customer bills as it seeks to increase power capacity, ratings company Fitch Ratings said.

Dewa's floating-rate notes due 2036 are part of a $4 billion borrowing program and are ranked AA-, Fitch's fourth-highest grade, the ratings company said in a statement on Tuesday.

Another rating company, Standard & Poor's puts the securities one level lower at A+, it said on Wednesday.

The bonds are issued through Cayman Islands-based Thor Asset Purchase Ltd., the two ratings companies said, without specifying whether the sale has closed.

Nasser Abbas, the utility's treasury manager, was not available for comment when Bloomberg News called his Dubai office. /Gulf News/

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Will leisure real estate gain from the new timeshare laws?

The leisure real estate sector in the Middle East region stands to gain through the establishment of local timeshare regulations, according to Steve Holmes, chairman and CEO of US-based Wyndham Worldwide, parent company of Group RCI, the world leader in timeshare exchange. Holmes’ comments were made at the Global Travel and Tourism Summit in Dubai.

He said, “We are pleased that this new timeshare law is now in place as we know that this is an essential step to establishing the timeshare industry in this new market. These protections will serve the interest of both developers and consumers alike while fostering a healthy growth environment. With this law in place, the vacation ownership industry should make a significant economic contribution to the market.”

As interest in timeshare grows, it is expected that Middle East residents will spend estimated by major players $1.2 billion a year for shared-ownership properties until 2020, with top markets including Saudi Arabia, Kuwait, Iran Egypt and the UAE.

Necessary approvals

The law requires developers or real estate companies willing to enter the market to apply for a timeshare license directly from the Real Estate Regulation Authority (RERA) with detailed plans of the project, company profile, background and pay a fee prior to marketing their developments. Upon approval, they can begin sales and marketing.

The authority requires commercial licensing of timeshare developers, sales agents, market companies and other engaged in offering timeshare in Dubai. A deposit of Dh1 million is expected as a precondition for obtaining such license.

What we say?

In Europe the trend emerged in the early 90ties.
The timeshare ownership proved it self as a vehicle that was great for lifestyle and regular usage but wholly ineffective for investment as owners faced :

• low liquidity of assets,
• high depreciation,
• restrictions on resale
• and no actual real estate ownership.

Now a days, hardly any one in the European Union knows what timeshare law means, let alone the size of investments.

Perhaps in Dubai the timeshare model will be reinvented and innovated in order to become feasible for investors.

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Dubai's Istithmar buys into U.S. asset manager

Dubai government investment agency Istithmar World Capital said on Monday it would buy a majority stake in a U.S. asset management firm as it expands outside of the world's biggest oil-exporting region.

Istithmar did not disclose financial details of the deal to buy into North Carolina-based Gulf Stream Asset Management, which it said manages about $3.8 billion in corporate credit portfolios.

The United Arab Emirates fund said in a statement the acquisition would allow Istithmar to expand into the credit investment sector, diversifying its focus beyond private and alternative equity investing.

Istithmar bought a stake in Standard Chartered Plc and acquired fashion retailer Barneys New York Inc last year. (Reuters)

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Tabreed indicates pricing on Islamic bonds

Dubai-listed National Central Cooling Co TABR.DU (Tabreed) has given price guidance of between 6.5 percent and 7.5 percent for its sale of convertible Islamic bonds, an arranger said on Sunday.

The fixed annual rate is for Islamic bonds, or sukuk, worth 1.5 billion dirhams ($408.5 million), arranger Morgan Stanley said in a statement.

Tabreed, which builds cooling and air conditioning systems, said in February it planned to sell convertible Islamic bonds to help refinance existing debt and expansion.

The firm has appointed Morgan Stanley, Standard Chartered and National Bank of Abu Dhabi as lead managers for the sale.

Sukuk comply with Islam's ban on interest, and are typically based on physical assets which pay a dividend or rent to bondholders.
(Reuters)

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Gulf Arabs put brakes on buying spree

Gulf Arab exporters awash with cash from record oil income have put the brakes on foreign asset buys as the global credit crisis promises more bargains later and the political spotlight falls on how they invest.

Economists say the battle against domestic inflation in the world's top oil-exporting region is capping spending at home, leaving sovereign funds that invest much of the surplus oil revenue struggling to find a profitable home for their money.

"They are doing a little bit of hoarding right now while they take stock of the situation," said John Sfakianakis, chief economist at SABB Bank, HSBC's Saudi affiliate.

"For two years they were on a buying spree. But there is an anticipation by sovereign wealth funds that financial assets will depreciate further as credit turmoil spreads in the West."

Acquisitions outside of the region by Gulf Arab buyers more than tripled to $89.13 billion in 2007 compared with the year earlier, according to London-based research firm Dealogic.

But buys slowed to $19.8 billion in the first quarter, down over 30 percent from the fourth quarter despite some big-ticket deals that helped shore up Wall Street financial institutions.

Growing sovereign fund acquisitions have raised concern among U.S. lawmakers about foreign influence and control over assets and questions as to whether investments are politically motivated. This may have made Gulf funds more cautious.

Aside from political scrutiny, funds have also taken some pain from their investments and are treading carefully until they get a better idea of whether the credit crisis has hit its nadir.

Citigroup and Merrill Lynch shares have lost about 20 percent each since Kuwait's sovereign fund and Saudi billionaire Prince Alwaleed bin Talal agreed in January to invest at least $5 billion in the U.S. banks.

"After initial forays, they've gotten their fingers burnt quite badly," said Ala'a al-Yousuf, chief economist in London at Gulf Finance House. "It showed that the worst was not over and they were a bit too hasty in buying into these institutions."

The massive transfer of wealth into the region from higher oil revenues has already unleashed startling economic growth among the Gulf's core OPEC members. Gulf country economies doubled in size from 2002 to 2006.

With crude prices reaching a record $117 a barrel, Gulf oil and gas revenues look set to come in at a new record this year, touching $435 billion versus about $380 billion last year, according to SABB estimates.

The price of U.S. oil futures has averaged $99.60 a barrel to date in 2008, up from $72.36 last year.

But government spending at home has not risen at the same pace as revenues in the Gulf as officials look to avoid swamping their economies, where they are already battling decades-high inflation. Currency pegs to the dollar have forced central banks to cut interest rates in line with the U.S. Federal Reserve even as they struggle to contain rising prices.

Migrant workers in the United Arab Emirates and Bahrain have rioted over the erosion of wages due to the declining dollar and inflation.

Saudi Arabia, the world's largest oil exporter, should see oil revenues grow to around $235 billion this year, up nearly 12 percent from about $210 billion last year, SABB data showed.

Despite the bonanza, spending in the kingdom -- contending with inflation at a 27-year high -- has been prudent, said Brad Bourland, chief economist at Saudi-based Jadwa Investment.

"Saudi government spending has risen about 15 percent per year, which is much less sharply than oil revenues have risen," Bourland said. "I don't see many examples of spending inappropriately, it's well-targeted, mostly on social needs in health and education, and infrastructure."

ASSESSING RISK

With Gulf investment funds commanding around $1.5 trillion of foreign assets, according to Bourland's estimates, Gulf investors are struggling for other places to park surplus cash.

Many petrodollars are typically recycled into U.S. treasuries, particularly by the region's central banks.

"With their currencies pegged to the dollar, central banks would tend to put money into the lowest-risk asset that currency is pegged to and that is treasuries," said Bourland.

But for more risk-hungry Gulf investors, interest rate cuts have made treasuries less attractive. Better investments would be euro-denominated bonds and, if they can stomach the risk, assets in emerging markets such as China, analysts said.

Middle East oil exporters were net sellers of long-term treasuries in six of the eight months since June 2007 for which the U.S. Treasury provides details. Cash still flowed into the U.S., but went into equities.

The same exporters' direct holdings of long- and short-term U.S. Treasury debt stood at just under $111 billion in June 2007. That was up about 22 percent on the year.

Gulf acquisitions in Asia are on the rise, with the top-10 deals in states including Singapore and Malaysia at $2.35 billion in the first quarter, Dealogic data showed.

"There is going to be a greater concentration on Asia," Sfakianakis said. "But they will probably go slow because Asia has not really decoupled from the West."

The U.S. Energy Information Administration estimates that the 13 members of the Organization of the Petroleum Exporting Countries will earn $980 billion in 2008, up from $676 billion in 2007. Below are nominal net oil export revenues in billions of dollars for 2007 and 2006. The EIA has not given individual country details for 2008.

2008 2007 2006

Algeria 50.4 44.6

Angola 43.8 31.3

Ecuador 7.8 7.4

Indonesia -4.2 -3.1

Iran 58.0 54.1

Iraq 37.8 31.8

Kuwait 54.9 50.6

Libya 40.6 35.6

Nigeria 55.5 52.1

Qatar 26.3 24.4

Saudi Arabia 194.0 182.8

UAE 63.0 57.5

Venezuela 47.7 43.4

TOTAL $980 675.5 612.5

(Reuters)

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Nakheel hires banks for $1b sukuk sale

Nakheel PJSC hired a group of three banks to help it sell about $1 billion of Islamic bonds.

Dubai Islamic Bank PJSC, Emirates NBD PJSC and JPMorgan Chase & Co. will organise the two-year floating-rate Ijarah sukuk, Chief Financial Officer Kar Tung Quek said in an interview yesterday.

To achieve our plans for this year we calculate we need about $5 billion. We typically fund our business from property sales and borrowing, and the sukuk will be part of that,” Quek said.

Banks will be able to buy the sukuk in UAE dirhams or US dollars, Quek said. Nakheel and its bankers will start promotional meetings with potential investors in the Gulf from April 20 before moving to London, he said. (Bloomberg)

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Damas plans $272mn IPO

Dubai jewellery group Damas plans to sell shares to the public before the end of the year and is talks on merging with or acquiring a regional jewellery chain, its managing director was quoted as saying on Monday.

Family-controlled Damas was in advanced talks with another company and should complete the merger or acquisition after an initial public offering to raise funds for expansion, Tawhid Abdullah said, according to UAE daily Emirates Business 24/7.

"The plan is that Damas will become a listed company by year-end, following an initial public offering (IPO) and the merger will happen after the public issue," Abdullah said.

Damas could raise 1 billion dirhams ($272.3 million), the paper said, without citing anyone.

The firm plans to spend more than $750 million to double the number of stores it operates from 430 in the UAE and other countries - including Egypt, Turkey, Pakistan, Bangladesh, India and China - in the next three years, the paper said. (Reuters)

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Nakheel to develop Fontainebleau Miami Beach resort

Nakheel, one of the world's largest and most innovative real estate developers, today announced akheel, one of the world's largest and most innovative real estate developers, today announced that it has invested $375m with Fontainebleau Resorts, LLC, a privately-held Las Vegas based resort developer, in exchange for a 50% interest in the Company's iconic Fontainebleau Miami Beach resort.
Nakheel Hotels, a business unit of Nakheel, will re-create the legendary Fontainebleau Miami Beach in partnership with Fontainebleau Resorts, with a spectacular $500m renovation. The project is expected to open in the last quarter of 2008.

On 7 hectares of oceanfront, the Fontainebleau historically has been regarded as the crown jewel of Miami Beach resorts. The 'new' resort will include more than 1,500 luxury guest rooms and suites, a 40,000 square foot European-style spa, multiple marquee restaurants, a signature nightclub and ultra-lounge, lush poolscape and approximately 200,000 square feet of meeting, convention and ballroom facilities.

Joe Sita, Nakheel Hotels CEO, said: 'This transaction provides Nakheel with a premier entrance into the Miami resort market, via the world renowned Fontainebleau. Jeff Soffer and Fontainbleau Resorts have a tremendous record of developing some of the most exciting tourist and residential projects in the U.S., and the Fontainebleau fits perfectly into Nakheel's strategy of investing in the best assets in the most important markets worldwide. We are always seeking to diversify our portfolio and add to our existing investments in North America, Asia and Europe. Miami, as one of the Unites States' major gateways, has been a key target, which we are pleased to have now gained.'

Jeffrey Soffer, Fontainebleau Resorts' Executive Chairman and majority equityholder, said: "We are extremely pleased to have a world-class organization such as Nakheel, as our partner in our flagship property. Nakheel is one of the most innovative property developers redefining how tourism and resorts can be developed. This strategic alliance with Nakheel Hotels is the beginning of a larger relationship that will lead to many exciting growth opportunities around the world and advance our goal of creating a new standard within the hospitality industry.'

Nakheel Hotels was launched in November 2007 as the new name for Istithmar Hotels after Dubai World consolidated its hotel business under one banner to create a fully integrated hotel investment company. The hotels business was originally formed in April 2006 as the hotel investment and asset management business of Istithmar and has, in less than 2 years, accumulated a global hotel property portfolio. The enterprise value of investments to date is in excess of $3bn. (AME Info)

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Tamweel approved Dh5.1b sukuk issue

Tamweel's Extraordinary General Meeting (EGM) held pn Monday approved the issuance of Dh5.1 billion ($1.39 billion) in sukuk.
The amount includes Dh1.1 billion of convertible sukuk and Dh4 billion of non-convertible sukuk, which includes Dh1.83 billion of non-convertible sukuk.

This funding will be used to support the expansion of its business in the UAE and to fund its ongoing international expansion. In February, Tamweel received its mortgage finance licence from the Egyptian Mortgage Finance Authority. The company expects to begin operations in the country during the second quarter of this year.

Expansion

Tamweel has already signed a joint venture agreement with Al Oula Development Company in Saudi Arabia, where the company expects to open a subsidiary later this year. By 2011, Tamweel anticipates international operations contributing 30 per cent of total revenues.

During the EGM, the shareholders also approved the amendment of Tamweel's articles of association to permit the company to be structured as a holding company, and its activities to be operated by several operating companies within its overall ownership.

Tamweel shall obtain the required approvals for this conversion from all relevant regulatory authorities, and will then commence the restructuring process.

"During this period of unprecedented expansion, this new equity structure will support our ongoing organic growth," said Shaikh Khaled Bin Zayed Bin Saqr Al Nahyan, chairman of Tamweel. Source

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Shariah-compliant gold shares to be listed on Dubai bourse

The Dubai Multi Commodities Centre (DMCC) and World Gold Council (WGC) have formed a new company to launch exchange-traded gold securities in Dubai to offer a Sharia-compliant investment choice.

The dollar-denominated Dubai Gold Shares will be traded on the Dubai International Financial Exchange (DIFX) after the companies receive approval from the Dubai Financial Services Authority.

The shares will be fully backed by physical gold and allow investors to gain exposure to gold bullion.

WGC, an industry body funded by the world's leading gold mining companies, said Dubai Gold Shares will be part of its portfolio of exchange-traded gold (ETG) products.

Officials of both WGC and DMCC did not disclose their share in the Dubai Gold Investments joint venture.

The physical gold bars backing the product will be of Dubai and London Good Delivery Standard, and held in the vaults of the custodian, DMCC, and sub-custodian, HSBC. Source

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Emirates NBD Group launches Emirates Islamic Global Property Fund (the 'Fund')

Emirates NBD Group, announced today the launch of the Emirates Islamic Global Property Fund (the 'Fund'), an open-ended daily dealing investment fund that will provide investors with access to real physical property globally in a manner compliant with Islamic Shari'a.

The Fund will be available to investors in the UAE as well as through the priority banking channels of Emirates NBD.

The Fund is the seventh Shari'a compliant fund to be launched through Emirates Funds Limited* and seeks to generate a high and rising income stream and capital growth through indirect investment in global properties and property related securities.

Jamal Bin Ghalaita, Head of Consumer Banking and Wealth Management at Emirates NBD said: "We are very delighted by this launch. Our commitment to building an exceptional fund range continues and we look forward to delivering exposure to a new asset class for all our clients. We have successfully managed the Emirates Fund range and believe this will be an appropriate addition to a number of clients' portfolios as investors in the GCC region and beyond recognize the diversification benefits that, until now, had been restricted to a very few." The Fund, which will be managed by Emirates Investment Services Ltd ('EIS'), the asset management arm of Emirates NBD group and a company licensed and regulated by the Dubai Financial Services Authority, uses an Islamic certificate that derives its returns based on the profit from a reference index linked to the value of physical commercial property and real estate globally.

All return streams from these assets will be generated in a manner compliant with Islamic Shari'a and the Fund will only utilize Shari'a compliant assets within its asset mix.

EIS has partnered with New Star Asset Management to structure this product as the manager of the reference fund to which returns of the Fund will initially be linked.

Roger Dossett, Chief Executive of Property Fund Management at New Star commented: "The international property market is a market with great potential. We are delighted to be working with Emirates NBD Group and we look forward to continuing and strengthening this relationship." Deon Vernooy, EIS Senior Executive Officer, said: "The Fund is believed to be a 'first' in terms of its offering daily liquidity and Shari'a compliant exposure to direct property assets, while focusing on European and Asian direct commercial property. It follows on the heels of the successful Emirates Real Estate Fund, the first Islamic fund run by EIS, which has delivered annualized returns of approximately 16% since its launch in June 2005 with no losing months." The Fund will interest investors looking for income and some long term capital growth with a risk exposure similar to that associated with property investments.

The Fund is an ideal vehicle for investors looking for exposure to property investments in a manner compliant with Islamic Shari'a.

The Fund is the seventh Shari'a compliant fund to be launched by Emirates NBD since the company set up its Shari'a compliant range in mid-2005.

In less than three years, this range now boasts one of the widest and most comprehensive Islamic fund ranges anywhere. Domiciled in Jersey, Emirates Funds Limited has circa $800m under management and EIS has a further $200m in Islamic discretionary accounts.

EIS's track record has been outstanding with all Islamic funds outperforming their index or relevant peer group.

Product innovation continues to be a key theme and EIS was one of the first managers to launch a Shari'a compliant alternative strategies fund, the Emirates Islamic Alternative Strategies Fund last year.

Key Fund details are as follows: - Name: Emirates Islamic Global Property Fund - Shari'a Board: Fatwa and Shari'a supervisory board of Emirates Investment Services Ltd - Structure: Jersey-registered open-ended Shari'a compliant limited liability investment company - Manager: Emirates Fund Managers (Jersey) Limited - Delegate Investment Manager: Emirates Investment Services Ltd, regulated by the Dubai Financial Services Authority (the 'DFSA') - Liquidity: Daily, with no lock-in period - Bid/offer spread: 3% (maximum 5% as per scheme documents) - Share classes (AMC): Institutional (I - 1.25%); Sophisticated Investor (R - 1.50%) - Exit fee: Zero - EIS has been appointed the Delegate Investment Manager to the Fund by Emirates Fund Managers (Jersey) Limited and Emirates Bank International PJSC.

Due to marketing restrictions imposed upon it by the DFSA, EIS is not permitted to market the Fund from the DIFC. The fund will be sold by third party distributors in the UAE and globally. WAM

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Zabeel Investments eyes US hotels on lower price

Dubai-based Zabeel Investments, an investor in Sony and planemaker EADS, said on Wednesday it will probably buy hotel properties in the United States to benefit from a fall in asset prices.

"We are looking at the opportunities in the United States, in hotels," Zabeel Executive Chairman Mohammed al-Hashimi told Reuters by telephone from Dubai. "It's not a question of if; we have the intention."

Zabeel, which in February bought a Las Vegas-based nightclub and restaurant developer, will look for properties in the biggest cities in the United States, Hashimi said, without being more specific.

Zabeel is owned by one of the sons of the ruler of Dubai, the Financial Times reported last April, who has since been appointed heir. Zabeel has invested with the ruler's own Dubai International Capital, which manages assets worth about $13 billion. (Reuters)

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Tamweel AGM approved 21.8 per cent cash dividend

The financial results for Tamweel PJSC for the year ending December 31, 2007, were approved at the company's Annual General Meeting, which was held today.

During the Annual General Meeting, the assembly approved the distribution of a cash dividend of 21.8 per cent of the company's share capital, amounting to AED 218 million.

The shareholders registered in the company share register on April 10, 2008 are entitled for the cash dividends therefore the last trading date to be entitled for the dividends is April 8, 2008. The assembly also reviewed and discussed the Director's report and the report of the Fatwa and Sharia Supervisory Board.

Sheikh Khaled bin Zayed bin Saqer Al-Nehayan, Chairman of Tamweel, said: "The year 2007 was a significant one for Tamweel that saw the company receive high corporate ratings from Moody's (A3) and Fitch (A), signifying the high confidence and stable outlook of the company. The company has also been recognised for its US$210 million asset-backed securitization issue, and awarded Superbrand status as well as the Best Islamic Mortgage Product. This has been an extraordinary year for Tamweel, and we are very pleased to share that success with our shareholders.

Tamweel's board and management are confident of the company's continued solid earnings, and hence the generous dividend approved at the AGM." This allocation follows the company's vision of continuously sharing its wealth with its valued shareholders and follows last year's 20 per cent cash dividend distribution.

Wassim Saifi, Chief Executive Officer of Tamweel, said: "Tamweel continues to build on its success and consistently enhance shareholder value. The dividend approved today confirms Tamweel an attractive value stock, providing high dividend yields. Tamweel is also clearly positioned well for the future as evidenced by the triple-digit growth for three consecutive years. We are focusing on providing both superior value for our shareholders and long-term corporate growth." He continued: "Our focus on innovative products, exceptional customer service and diversified funding sources has strengthened our leadership position in the real estate finance industry in the UAE. We are grateful to our shareholders for their faith in the vision and management of Tamweel. As we look ahead to the coming year, the company is eager to replicate its success here in Saudi Arabia and Egypt."

The company's net profit during 2007 touched AED 451 million, an increase of 195 per cent compared to AED 153 million during 2006. Earnings per share rose from AED 0.2 to AED 0.451.

Islamic financing and investing assets in 2007 rose to AED 5.217 billion compared to AED 2.584 billion the previous year, an increase of 102 per cent. This excludes the recently securitized book of AED 771 million that has been taken off balance sheet. Income from Islamic financing and investing assets in 2007 surged to AED 311.5 million, registering growth of 100 per cent compared to AED 156 million in 2006. WAM

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Omniyat Holdings launches Omniyat Investment Management

Omniyat Holdings, the multi-billion dirham Dubai-based real estate conglomerate, has established a new company, Omniyat Investment Management (OIM), at the Dubai International Financial Centre (DIFC), with plans to manage deals worth over Dh2 billion in 2008.

The new company, which is licensed by the Dubai Financial Services Authority, aims to be the pre-eminent funds and asset management company operating in the DIFC. It is the first company of its type affiliated to a freehold property developer, in this case Omniyat Properties.

Mehdi Amjad, President and CEO, Omniyat Holdings, said, “With OIM, we are taking another step towards realizing our vision of being active in the entire real estate value chain. OIM will be 100% focused on real estate and will benefit from the synergies created by Omniyat Properties”. He is also the Chairman and Licensed Director of OIM.

The Dubai-based Omniyat Investment Management is part of Omniyat Holdings’ drive to be active in the entire real estate value chain, including being an owner, investor, developer and asset manager. The new company has been authorized by the DFSA to arrange investment deals, advice on financial products or credit and manage assets. Source

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Dubai, Brigdepoint plan $1.4 bln Euromedic bid

Dubai International Capital (DIC) and private-equity firm Bridgepoint plan to bid jointly for healthcare group Euromedic International for about 700 million pounds ($1.4 billion), the London Times said on Sunday.

DIC, an investment agency owned by the ruler of Dubai, and Bridgepoint hired UBS AG (UBSN.VX: Quote, Profile, Research) to advise on an approach for the European firm, which is owned by private-equity house Warburg Pincus, the newspaper reported, without citing anyone.
A sale of Euromedic, which makes diagnostic equipment, would be one of the biggest private-equity deals this year, at a time when the credit crunch has dented mergers and acquisitions volumes, The Times said.

DIC and Bridgepoint already have a relationship in the healthcare sector after Bridgepoint sold Britain-based Alliance Medical to DIC for 600 million pounds last year. Bridgepoint reinvested some of the proceeds into Alliance in return for a 17 percent stake, the Times said.

The two partners are looking at a three-way merger involving Euromedic, Alliance Medical and Gambro, which Bridgepoint bought last year, the newspaper said.

Euromedic is a provider of both diagnostic and dialysis equipment to the central and eastern European markets, as well as Britain. Alliance Medical is a mainly western European business in the diagnostics field, while Gambro, which serves western and northern European markets, specializes in dialysis care services.

Putting the three together would create a pan-European healthcare giant in the manufacture of diagnostics and dialysis technology and services, The Times said.

Jehad Saleh, a spokeswoman for DIC, could not immediately be reached for comment when Reuters called on Sunday.(Reuters)

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