SHUAA Capital reports strong growth with net profit up 53% for fiscal 2007

SHUAA Capital, the region's leading financial services institution, Saturday announced record results for the financial year ended 31 March 2008, as net profit rose by 53 per cent to AED400.5 million.

The excellent outcome to the year with record results was driven by all business lines performing well in upbeat markets.

The Board of Directors of SHUAA Capital has proposed a cash dividend of 45 per cent of the nominal value of shares (AED0.45 per share) which is subject to approval at the upcoming Annual General Meeting.

Year end operating income increased by 83.3 per cent to AED710.8 million (2006/7: AED387.7 million), an increase of AED323.0 million and net profit rose by 53 per cent to AED400.5 million (2006/7: AED261.8 million), an increase of AED138.7 million year on year.

Majid Saif Al Ghurair, chairman of SHUAA Capital said: "Our year end results clearly demonstrate that we are delivering on our promise to shareholders. More importantly, we have achieved both scale and momentum across our regional business. We are especially proud that in IPOs our investment banking division ranked number 1 in the UAE, number 2 in the GCC, and number 18 globally during fiscal 2007." Iyad Duwaji, CEO of SHUAA Capital commented: "The excellent outcome to this year was driven by marked progress over all the markets and client segments we serve. Each of our six business divisions maintains leadership positions in their field and we have built greater presence across the region. We have further strengthened our financial resources during the year with the issuance of $456 million of convertible bonds, and are extremely well placed to further capitalize on the tremendous opportunities that GCC markets offer. We are increasingly attracting the attention of both regional and global institutional investors." SHUAA's results were driven by a solid performance during all four quarters. During the first quarter, SHUAA produced operating income of AED144.9 million and net profit of AED74.5 million. In the second quarter, operating income was AED89.7 million and net profit was AED54.0 million. The third quarter was exceptional for SHUAA Capital as it generated operating income of AED368.5 million and net profit of AED213.0 million. The third quarter was driven primarily by contributions of asset management performance fees, equity capital market activity, record brokerage trading volumes, as well as a divestment in our private equity division and healthy returns on our principal investments portfolio, seeing the highest quarterly return in the company's near thirty year history. The fourth quarter resulted in operating income of AED107.7 million and net profit of AED58.9 million while markets were more challenging.

During the year, client's funds under management increased 117.3% to AED14.23 billion (2006/7: AED6.55 billion) helped by the strong international investor appetite for our regional products and services, primarily asset management, brokerage and private equity.

"SHUAA's stated aim is to be the premier financial services institution in the GCC region that specializes in managing the growing inflow of capital to our markets. We have pioneered the idea of the GCC as an asset class and as a destination of capital since 1998, and we remain passionate about it. Our vision has been endorsed already and we are closer than ever to being recognized as an integral part of the BRIC growth story. Duwaji concluded.

He added that "We will also remain at the vanguard of regional integration of the GCC into the global capital markets universe and SHUAA's share is in fact a great proxy on this growth story".

The operating income of the Corporate division declined 72.5% to AED55.1 million (2006: AED200.5 million), representing 7.8% of group operating income. Due to the significant increase in bonus provisions based on the excellent performance for the year, the division recorded a net loss of AED104.8 million compared to a net profit of AED18.5 million last year when the division sold two of its corporate investments.
/WAM/

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Al Futtaim Group raises $500m for property fund

Dubai-based Al-Futtaim Group said it raised $500 million from investors for a fund to develop real estate projects in the Middle East and North Africa, including Egypt.

Al-Futtaim Capital, a unit of family owned Al-Futtaim Group, attracted investors from Asia and the Gulf, including sovereign wealth funds, the unit's managing director Marwan Shehadeh told reporters in Dubai on Monday, declining to identify co-investors.

Some of the funds will go towards the $9 billion Festival City - a residential and commercial project - Al-Futtaim is developing in Cairo, Shehadeh said.

The group is also in advanced talks to develop projects in Doha and Abu Dhabi, and at an early stage for opportunities in Saudi Arabia, Tripoli and Casablanca, Shehadeh said declining to give a timeframe.

'The markets we targeted are in their infancy it is the right time and not the end of the cycle,' Shehadeh said.

In Dubai, Al-Futtaim - with businesses from autos to financial services - is building a 1,300 acre (526 hectare) Festival City development, with shops, offices, apartments and hotels, at a cost of $12 billion.

A third of the fund, for which Al-Futtaim may seek another $200 million, complies with an Islamic ban on interest.

'We have seen increased interest from US and Europe and may increase the fund to $700 million by year-end,' Shehadeh said.
/Reuters/

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To Court or Shun the Wealth of Nations

Sovereign wealth funds have emerged in recent months as the world’s power brokers. They have used their tremendous wealth to make big cross-border investments and prop up some of Wall Street’s best-known firms.

The New York Times recently published insightful article:

"A PROMINENT American financier, weary from weeks on the money trail that leads through Abu Dhabi, Riyadh, Doha and Dubai, called in recently with these impressions from the road: “They are scratching their heads, they don’t want to be underappreciated or made a fool of,” he said of the executives managing more than $1 trillion in sovereign and central bank funds.

“They invest in these financial institutions, lose their shirts and then they are criticized in Congress.” They are really upset, he said.

And get this, he added: “If you are a Saudi, you have to get your visa signed off by Homeland Security. I mean, why would you want to bail out a bank — you couldn’t even come to the closing dinner.”

The relationship between client and banker is perhaps the most delicate of Wall Street’s minuets, so this executive asked to remain anonymous.

But his concerns are shared by more and more Wall Street executives who criticize the increased scrutiny imposed on sovereign funds, which invest the wealth of their governments. The scrutiny ranges from calls for increased transparency to Congressional inquiries into their tax status, and runs the risk of driving away the world’s largest pool of capital just when the United States economy needs it most.

“Why are we attacking sovereign funds when the core problem is hedge fund transparency,” said Laurence D. Fink, the chief executive of BlackRock, which manages $1 trillion in assets, and who has sovereign funds among his largest clients. “No one questioned them when they bought the billions of dollars of our bonds. I mean, they are financing our deficit. What this scrutiny will do is force them to invest elsewhere.”

As always with Wall Street, there is much self-interest going on here. For decades, sovereign funds, which now top $2 trillion in assets and are expected to surpass $12 trillion by 2015, have been major clients of financial firms. According to a recent survey, half of that $2 trillion is externally managed.

Besides paying fees, funds have become something of a lender of last resort for banks traumatized by the credit crunch. The Abu Dhabi Investment Authority, managing an estimated $600 billion to $800 billion, has paid $7.6 billion for a 4.9 percent stake in Citigroup.

The Kuwait Investment Authority, the oldest of all the sovereign funds, which manages about $250 billion, has invested $5 billion in Citigroup and Merrill Lynch, while Morgan Stanley and Blackstone have received cash infusions from the China Investment Corporation.

All told, according to Dealogic, a financial services research firm, sovereign funds invested $48 billion in deals in 2007 and $16 billion so far this year.

Still, there may be something to Wall Street’s lament.

With the balance sheets of many investment banks exposed to toxic, illiquid mortgage-linked securities, and with the collapse of Bear Stearns so fresh, no one is discounting the possibility of more visits by chief executives to distant capitals. The disclosure on Tuesday that UBS will seek new funds of about $15 billion underscores this view.

The question is whether the funds, especially those in the Middle East, where capital is accumulating the fastest and where sensitivities surrounding disclosure have been most acute, will be as eager to invest the second time around.

Citic Securities, an investment bank with ties to the Chinese government, provided a vivid reminder of the perils of buying stakes in Wall Street banks before the depths of their problems are known. Citic committed to invest $1 billion in Bear Stearns, but luckily never closed the deal.

What sovereign funds will do is a question that looms all the larger, given that the United States economy is weak and growth remains relatively vibrant in economies like those of China, India, Brazil and Turkey.

“There is a concern in the financial community that there have been signals of hostility to sovereign wealth investors,” said Todd M. Malan, the president of the Organization for International Investment, a lobbying group representing corporations investing in the United States. “That has the potential to be negative for the U.S. economy at a moment that we need foreign investment.”

There have been recent signs of an accommodation addressing concerns in Washington that the funds need to disclose more. For their part, the funds want to preserve their tradition of not showing too much of their investment hand. Abu Dhabi and Singapore reached an agreement with the Treasury in which their funds would invest using commercial, not political, criteria and the United States would not impose restrictions on such investments.

While the accord stated the obvious — the two funds are recognized as the most professional of the sovereign funds — it was hailed by lawmakers. Still, rumblings persist that Congressional inquiry may continue.

Earlier this month, the two ranking members of the Senate Finance Committee sent a letter to the Joint Committee on Taxation, a nonpartisan group in Congress that monitors tax policy, asking that it examine how these entities are taxed so as to help “understand the role of tax policy in the sovereign wealth fund puzzle.”

Currently, there is no tax imposed on passive income accruing to foreign governments from investments in the United States. But any hint that sovereign funds may have their tax status questioned would be one more reason for them to take their business elsewhere.

“These inquiries are broadly healthy,” said Douglas Rediker, a former investment banker who studies sovereign funds for the New America Foundation. “But we should be doing our fair share to see that we get investment rather than pushing it away.”

The suspicion surrounding these funds has mainly focused on the Middle East — a holdover, perhaps, from the failure of the proposed sale of six United States seaports to DP World of Dubai.

Saudi Arabia, the United Arab Emirates and Kuwait are by nature cautious, sensitive to maintaining the broad contours of their long strategic relationship with the United States. Even so, some comments by the executives of the funds betray frustration.

“Sovereign wealth funds have been found guilty before being proven innocent,” said Muhammad al-Jasser, the vice governor of the Saudi Monetary Agency, earlier this year. The agency oversees $300 billion in government funds and has yet to make a publicly disclosed investment in a troubled American financial institution.

“There is a lot of worry about sovereign wealth funds, but all of them are assumptions,” said Bader al-Saad, who heads the Kuwait Investment Authority, at the World Economic Forum in Switzerland in February.

So far, there is no sign of a buyers’ strike. And the region’s continued support of a policy that links Middle East currencies to the sinking dollar suggests a willingness to help United States financial policy.

But, as in all complicated relationships, there are limits.

“Since 9/11, Middle Eastern investors feel very frustrated in how they have been treated in the U.S.,” said Shibley Telhami, a professor of Middle Eastern studies at the University of Maryland. “The question is if the lingering bitterness from the port deal is going to outweigh the stretched hand of needy institutions. So far, it has not.”

/By Landon Thomas Jr., The New York Times/

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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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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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Zabeel Investment launches investment subsidiary

Zabeel Investments announced Sunday the launch of a wholly owned investment subsidiary, Zabeel Capital, which has been formed to focus on growing the company's global investment portfolio, across a multitude of sectors, both regionally and internationally.

This announcement follows the recent establishment of Zabeel Properties, the dedicated property development company for Zabeel Investments.

HE Mohammed Ali Al Hashimi, Executive Chairman of Zabeel Investments, highlighted that this strategic move was a result of the company's rapid growth and the many opportunities available for investors from the GCC region.

He commented: 'Over the last two years we have partnered with a number of leading strategic players on investment opportunities both regionally and internationally. The growth and success we have had to date underlines the need for a focused and dedicated entity that will be responsible for taking our investment portfolio forward.' 'Dubai has become synonymous with investment, particularly from an international perspective and Zabeel Capital will play its part as a respected and recognized investor in order to enhance this reputation.' Zabeel Capital will be based at the Dubai International Financial Centre, and Jbran Rahal, Zabeel Investments Chief Financial Officer has been appointed as Managing Director (MD) of Zabeel Capital.

'Zabeel Capital's launch comes at a time when the global spotlight is on the financial industry in the region and we are perfectly positioned to take advantage of the myriad of opportunities available. I am confident that under Jbran's leadership, Zabeel Capital will function with the same energy, vision and drive that has become the trademark of Zabeel Investments,' said Mr. Al Hashimi.

Speaking about the formation of the entity, Mr. Rahal said: 'We have a clear and transparent roadmap for Zabeel Capital that has its foundations in a distinct perspective and dynamic approach to investment. We will continue to embark on partnerships that fit within our company strategy and to evolve in to a full-service investment house- with a steadfast focus on global best practice.' 'We will concentrate on creating new systems, processes and procedures, in line with international best practices and working towards sustainable profitability,' he concluded. WAM

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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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SHUAA Capital concludes international investor conference in Dubai

SHUAA Capital’s Investor Conference in Dubai concluded successfully with more than 400 one-on-one meetings between institutional investors and Chairmen, CEOs, CFOs and senior management from 31 of the leading companies in the region that presented their business strategy, financial performance and outlook.

This included 20 companies from the United Arab Emirates, five from Saudi Arabia, as well as companies from Kuwait, Bahrain, Oman and Jordan.

Mr. Kerim Mitri, Deputy CEO of SHUAA Capital said: “The GCC of today, and the years to come, offers exciting new opportunities for far-sighted investors. An investment now in the region is an investment in the future. SHUAA Capital facilitates access to capital for companies and investment opportunities for international investors.”

He continued: “The SHUAA Capital conference was a great success. The strong participation of institutional investors and fund managers confirms that SHUAA Capital plays a leading role in shaping the landscape of the GCC investment community.”

Geoff Symonds, Founder of GLS Capital Management, a Hedge Fund with offices in New York, London and Sydney, said: “The SHUAA Capital conference provided institutional investors with an ideal platform to view the projects and growth strategies of blue-chip companies across the region. With international investor interest in the region now at an all-time high, this investor conference will further enhance the region’s global standing as an ideal destination for capital.”

Georges Schorderet, Chief Financial Officer of Al Marai, commented: “The conference proved to be a unique opportunity for interaction between listed companies and major institutional investors. The conference is a practical and efficient tool to target institutional investors and attract international funds to invest in GCC markets in general, and our stock in particular. We believe that this initiative reflects Al Marai’s vision to attract investors and bring increased stability to the local markets.” Source

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Gulf PE industry to see rationalisation

The large number of private equity firms operating in the Gulf, and the relatively small funds they manage, is unlikely to be sustainable in the long term.
This was said by Christofe Mahieu, managing director and co-head of Gulf Growth Capital, the fifth business line of Investcorp, the Bahrain-based international investment bank. Its first fund, the Gulf Opportunity Fund 1, will be a $1 billion fund and, at the time of its first closing in July last year, stood at $750 million.

"Honestly, I think there are too many private equity companies here, says Mahieu, speaking to Khaleej Times. "There are 415 to 420 private equity firms in the US; here you have about 140. The US economy is 15 to 20 times bigger than the Gulf economy so by nature you need a rationalisation of the industry," he says.

"Over time we will see a reduction in the number of players, but the players that remain will manage bigger and bigger funds," he adds. The average size of a private equity fund in the Gulf, at between $200 and 250 million, is relatively small, especially compared with the US where it is between $1 billion and $1.3 billion, says Mahieu.

The large number of private equity firms operating in the region means the industry is very competitive, and those with the strongest relationships are more likely to succeed. Europe and the US is a very auction-driven market, while in Asia and the Middle East the market is much more proprietary and confidential, Mathieu explains. "This means if you don't have a network of relationships it is very difficult to get a deal flow," he says.

Of Investcorp, he says that about 80 per cent of its transactions are proprietary, "so we're not facing that intense competition. If we just had to rely on the bankers or be in very competitive auctions like the US then it would be pretty tough, because prices would likely go very high."

Despite the need for industry rationalisation — which could be in about five or six years, suggests Mahieu — there are "tremendous opportunities in the Middle East," for those private equity firms offering a value proposition. This means bringing value-added, whether in the form of knowledge, technology or leadership development. He says: "Private equity in the US and Europe has shown tremendous value both for companies they are supporting and for investors," and it will be the same in the Middle East.

Unlike Europe, however, where companies are looking for finance, in the Middle East it is all about value added. "It is not only about financing growth. If companies only wanted finance they could go and get it because there is so much liquidity in the region. It is about value added, to make businesses more competitive and diversified," says Mathieu.

Specifically, he is referring to small to medium sized (SMEs) firms, many of which are family-owned, and are the primary target of Gulf Growth Capital. "We shape a common agenda over (an average period) of five to seven years," he says.

"These SMEs are the backbone of the economy," he continues. "What the Gulf needs is to diversify and grow the private sector very fast," and these companies, which operate in such fields as engineering, accounting, financial services and consumer finance, are crucial to achieving that.

Many of these businesses are family-owned, with revenues in the range of $100 million to $200 million, whose owners aspire to turn them into $1 billion plus operations, explains Mahieu. "To make this leap is a very different ballgame. They have to become more robust and institutionalise the whole business."

He also says that a private equity proposition "is about convincing international players that want to come to the region, or local players, that we can bring operational value, organisational value and strategic value to their business".

Investcorp has about 40 bankers in the region who have reviewed 130 possible deals for its Growth Opportunity Fund I over the past five or six months. It is "zooming in on four or five of them," says Mahieu, but hasn't closed anything yet. It will be doing so shortly. Source

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Ithmar to launch third fund with $1bn

Ithmar Capital, a GCC-focussed private equity specialist, will launch its Fund III with a portfolio size of $1 billion (Dh3.67bn) by the fourth quarter of this year, a top executive at the firm said. The fund, when launched, will double the size of its Fund II, which the group aims to close between the second and third quarters.

Last week Ithmar closed the third deal from its Fund II portfolio with an undisclosed investment in Dewan Architects and Engineers, a UAE-based construction and consulting firm.

“We are targeting to close another three or four deals in the first three quarters of this year, which will exhaust the entire investment size of Fund II,” said Faisal Belhoul, Founder and Managing Partner of Ithmar Capital.

Belhoul said the firm is targeting a net internal rate of return, or IRR – the rate at which a certain amount of capital today would have to be invested in order to grow to a specific value at a time in the future – of 25 per cent for its investors. “But the current dynamics of the market should allow investors to exceed that target. An IRR of 30 to 50 per cent is a realistic target,” Belhoul said.

Post-investment, Ithmar expects Dewan to achieve a compounded annual growth rate (CAGR) – the year-over-year growth rate applied to an investment or a company’s activities over a multiple-year period – of 40 to 50 per cent. “We expect two to three times multiple of our investment over a three year period.”

Following the investment, Ithmar will be part of Dewan’s board, but will not exercise management control in the company, Belhoul said. “The partnership in Dewan has happened because we recognise the company to be well managed.”

Belhoul said the Dewan deal was part of the investment firm’s growth capital strategy, wherein the firm buys a significant minority stake in a company through its investments.

In September last year, Ithmar successfully completed the acquisition of the entire new share issue of Kuwait’s Mushrif Trading and Contracting Company (MTCC), at a cost of approximately $97 million (Dh356m). Source

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Al Barakah Investments enters real estate market

Marking its entry into UAE's high demand-driven real estate mid-segment, the real estate group, Al Barakah, has consolidated its plans to develop commercial and residential projects, worth over AED 3bn within the next three years, said a press release.

The unveiling of Dhs1.3bn Sanali Towers in Downtown Dubailand marks its first initiative as part of a series of strategically planned developments envisaged to establish Al Barakah amongst the most trusted real estate groups in the region. Having recently announced the development of a 30-storey tower in Ajman, the group will be announcing its first project in Dubai as a developer in February 2008.

Hailing the establishment of regulatory laws in Dubai, Imran Khan, CEO, Al Barakah Group, said: 'Under the inspiring leadership of His Highness Sheikh Mohammad Bin Rashid Al Maktoum, the Vice-President and Prime Minister of the UAE and Ruler of Dubai, the Government of Dubai has set the standards and the guidelines for the regional real estate industry. The regulatory laws will further galvanise the realty boom in the region, as these laws provide a level playing field to developers committed to quality and timely delivery while providing buyers maximum security for their investment through trust accounts. Due to a higher level of investor confidence resulting from these laws, we are already seeing increased sales activity for projects with established trust accounts and we foresee greater inflow of investments from around the world, particularly from institutional investors.' Al Barakah will focus on establishing long-term associations with property investors and buyers through transparent dealings to make them fully aware of the various aspects of property ownership. With hundreds of sales affiliates spread across 30 countries, the company's sales channel facilitates property investors' re-sale options with clearly defined exit strategies, enabling attractive profits from re-sale at the best time that suits the investor.

The company has acquired several plots of land in Downtown Jebel Ali, Dubailand and Ajman, with built-up area in excess of three million sq. ft.

Al Barakah intends to capitalize on the wide gap between the demand and supply in the lower and mid-segments which is expected to continue for at least the next five to seven years and this widening gap makes these segments very attractive for buyers.

Al Barakah Investments also unveiled the Dhs1.3bn Sanali Towers, comprising three 30-storey towers, with over one million sq. ft. of office and retail space - facing prestigious developments of Al Barari and Living Legends - located in Majan-Mizin. Developed by a well-reputed Indian developer, Sanali Holdings, the project has been bought by Al Barakah Investments and will be marketed by Inside Track Real Estate Brokers LLC. The construction will commence shortly and be completed by December 2009.

Each of the towers, will comprise retail spaces on the ground and mezzanine floors plus 28 floors of office spaces with health club facilities on the 29th floor. The modern offices with state-of-the-art facilities will have a spacious four-tier underground car park. (WAM)

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Emirates Trading Agency's credit facility rated 'BBB-'

Standard & Poor's Ratings Services said yesterday that it assigned its 'BBB-' long-term rating to the $300 million unsecured credit facility of Emirates Trading Agency LLC, a fully owned subsidiary of Dubai-based industrial conglomerate ETA Group (BBB-/Stable/--). ETA Group is the combination of ETA-Ascon group of companies and ETA-Star group of companies.

The original borrowers under the facility are Emirates Trading Agency, Associated Construction and Investments Co. LLC (Ascon), and ETA Star Holdings Ltd. Jebel Ali. The loans under the facility will be guaranteed by material subsidiaries and affiliates of the borrowers, corresponding to at least 75 per cent of total EBITDA of ETA group. The facility has been rated at the same level as the corporate credit rating on ETA, reflecting the upstream guarantees and the implicit support factored into ETA's rating from its 52 per cent owner, the Al Ghurair family. Source

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Family-run businesses interested in learning from PE firms

There has been a growing interest among family-run businesses in the Middle East on the expertise of private equity firms, which according to estimates could raise and invest Dh183.62 billion ($50 billion) over the next few years.

Business intelligence provider MEED stated this yesterday saying that the region, whose surpluses are growing over Dh367.24 billion ($100 billion) a year, has suffered from a lack of investment opportunities mainly because of the reluctance of family-run businesses to sell private equity.

"This attitude is starting to shift however, with businesses increasingly considering the expertise that private equity firms can provide," said MEED, which is set to hold its first conference on private equity next month.

The statement said that MEED Private Equity Conference 2008 would be held on January 15-16. "The conference will explore the [development] in the regional private equity industry and its prospects for the year ahead through a series of insightful presentations, case study sessions and interactive workshops," it added. Edmund O'Sullivan, chairman of MEED Events, said the six-member Gulf Cooperation Council bloc is now one of the main sources of private equity for the world economy but its role is poorly understood. "Private equity has never been so topical or contentious," he stressed. "People are wondering why private equity is superior to public equity both for the firms and investors. The MEED conference will address this issue head-on in world-class presentation from leading private equity practitioners."

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Forsa forum to 'empower' more women

A forum sponsored by women's investment fund Forsa is set to give women in the UAE insight into the types of careers expected to be in demand in the near future, it was announced today.The move comes after a recent survey revealed that 99% of Emirati women want to pursue a career after completing high school. And 65% said they would like to begin working immediately after their studies. The ‘Meet the Career Guru' forum sponsored by Forsa - which means ‘opportunity' in Arabic - will feature workshops and interviews with iconic achievers from a diverse range of industry sectors, in an attempt to empower women to take on a full range of professional options available to them.

"Forsa is committed to developing women's role in society by providing opportunities that are designed to foster the next generation of leaders in the home, in the workplace and in society," said Shamsa Noor Ali Rashid, CEO of Forsa."Through establishing strong partnerships with complementary organisations, Forsa is supporting Emirati women in their pursuit of a broad range of career options and nurturing management expertise and leadership skills," she added. The forum will show visitors what careers will be in demand, what forms the basis of the demand, professional qualifications required and predicted salary ranges. Ali Rashid also said that the event reflects Forsa's philosophy of encouraging women to be "active and contributing members of society from a diverse range of sectors."The exclusive investment company - ‘created by women for women' - was launched in January with the aim to help women to enhance their role in the nation's development.The even is being held during the Gulf Education and Training Exhibition (GETEX) - the largest education fair in the Middle East & Asia - at the Dubai International Exhibition Centre from April 11-14. Source

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Global Equity Fund Opens New Office in Dubai

Global Equity Fund (GEF), Inc., an international real estate development and advisory company today announced plans to open up new offices in Emirates Towers on Sheikh Zayed Road to further maximize the company's growing global operations.
By establishing an office in Dubai, Global Equity Fund is making a strong commitment to attracting investors worldwide and expanding its international business operations, particularly in regions such as Australia and Central America.
The opening of offices in Dubai will strengthen Global Equity Fund's capabilities in sourcing and delivering the very best opportunities for worldwide investor base. As the center of trade, commerce and tourism, Dubai will serve as an ideal and unique location to develop and source property developments in prime locations such as Europe and Australia.
This news release contains forward-looking statements regarding GEF's business strategies and future plans of operations. Forward-looking statements involve known and unknown risk and uncertainties. The company's risks and uncertainties include intense price competition; economic, political and regulatory uncertainties; the need to raise additional capital for growth and expansion; and its reliance on the Internet as a means for promoting its business. The forward-looking statements contained in this news release speak only as of the date hereof, and GEF disclaims any obligation to provide public updates, revisions, or amendments to any forward-looking statements made herein to reflect changes in GEF's expectations or future events.

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Tamweel application for Islamic banking license

The UAE Central Bank's decision to reject Amlak Finance's application for an Islamic banking license comes as a major blow to the entity.This does not bode well for its competitor Tamweel, which has also sought a similar license.The two entities account for 55 per cent of the UAE mortgage market, but that may soon change, especially if Tamweel's application is also turned down. The rejections, however, will present new opportunities for banks in the UAE in the mortgage sector - an area that remains a fertile ground for growth.

The Chief Executive of Amlak Finance Sunday called a decision by the U.A.E. central bank to reject its Islamic banking license application "unjust and extremely disappointing," but didn't reveal what it plans to do instead.

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Female finances on the up

Nicola Horlick is CEO of Bramdiva, a wealth management service offered exclusively for wealthy women. Bramdiva is about to launch services in the Middle East, starting in Dubai in 2007. One of the greatest opportunities I see in the wealth management global market is in the Middle East where the growth in female wealth is gaining attention.

"I first noticed this trend at the beginning of 2006 since when I have been working to develop various alliances in key territories including Saudi Arabia, Dubai, Abu Dhabi and Bahrain. I hope to extend Bramdiva [the women's wealth management company based in London] further still in time into Kuwait, Oman and Qatar.A handful of important developments have emerged since the Gulf region drew my attention. In Bahrain, the Abu Dhabi Investment House has launched Masrafy to target high net worth women in the Gulf region. In January this year, Dubai World launched Forsa, a fund aimed at providing investment opportunities for women and educational and financial support for female entrepreneurs. The fund, which hopes to raise AED 1 billion, has the enthusiastic support of Sultan Ahmed bin Sulayem, Chairman of Dubai World.But, we would be wrong to assume this is a very recent phenomenon. The entrepreneurial Sheikha Hanadi bint Nasser bin Khaled Al Thani recognised the opportunity nine years ago when in 1998 she established the Qatar Ladies Investment Company. That has since developed into a powerful and award-winning financial institution under a new name, Amwal. "Continue to the full story from Source.

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Bramdiva to tap $1.5bn investment fund

Nicola Horlick - dubbed the ‘superwoman' of the UK's fund management world - is to set up a wealth management service aimed exclusively at the region's most well-off women.The service, called ‘Bramdiva', is set to launch in Dubai this year, and - upon its expansion across the GCC - aims to attract up to $1.5bn in regional wealth within the next four years. Like Dubai World's recently-launched 'Forsa' investment fund, Bramdiva aims to take a slice of the estimated $38bn that women in the Gulf have ready to invest.
Information on a Dubai-based partner for Bramdiva was not forthcoming but Horlick is believed to have met with officials of the National Bank of Dubai during a visit to the UAE late last year.
Bramdiva will offer advice on investment opportunities, as well as a number of other services appropriate to the country of operation. For instance, in the UK - where Bramdiva was established in November 2005 - the company offers bespoke advice on divorce cases. However, the extent of services offered will depend very much on demand and local sensitivities.
In Saudi Arabia - where Bramdiva is set to launch after Dubai - the service could focus solely on investment advice.
The news comes just a month after the announcement that Dubai World is to launch an ‘exclusive' $270m fund that will only be open to female investors.‘Forsa' - which will form partnerships with Dubai World companies including DP World, Istithmar and Limitless - will also help encourage female entrepreneurs. Source

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Investment firm for women launched by Dubai World

Forsa, an investment fund for women investors and entrepreneurs, was launched by Dubai World on Monday. Forsa is a company created by women for women, with a vision based on the three central tenets of attracting female investors, partnering with female entrepreneurs and developing woman business leaders.
Forsa will focus on women with investment capacity to build a AED 1 billion fund guided by an investment management team to deliver superior results. The company has already obtained a commitment of AED 100 million towards its goal. Forsa will also create a series of funds focused on a variety of sectors including real estate, retail, education, health and technology, and is expected to generate exclusive investment opportunities through its size and partnerships with other Dubai World companies.
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