Category: Banking & Finance

|By Arabian Post Staff| While market speculation about a possible de-pegging or devaluation of the dollar by GCC countries is going forward, a number of disincentives to such a move are continuing to force a status quo, at least in the short to medium term.Analysts note that a more flexible foreign exchange regime could allow the GCC to adjust to real shocks better, the gains in terms of room for conduct of independent monetary policy are curbed by existing institutional

|By Arabain Post Staff| Bank Sarasin-Alpen Middle East Limited, defending the region’s biggest financial mis-selling case has lost the first appeals against the record judgement of $70 million penalty awarded by the Court of the Dubai International Financial Centre (DIFC).Bank Sarasin and its DIFC subsidiary Sarasin-Alpin had filed an appeal against the liability finding which led to record damages being awarded against them. The liability appeal was heard by the DIFC Court of Appeal in September 2015 with the judgement

|By Arabian Post Staff| Citibank has clarified that the 'technical glitch' that caused transmission of SMS messages to credit card customers about certain mysterious credit card transactions that they did not initiate has been resolved and there  has been no data breach or compromising of personal information. The problem affected only a limited number of customers, the bank said further.Citibank credit card customers were on Friday surprised to receive SMS messages about an alleged transaction purportedly for airline booking faked on India’s

|By Arabian Post Staff|Bank Sarasin-Alpen (ME) Limited, the former Middle East affiliate of co-defendant Swiss Private Bank J. Safra Sarasin, has failed to deposit $35 million in damages by the deadline of February 1, 2016 as per the order of the DIFC Court, the aggrieved party announced.The case relates to one of the biggest financial mis-selling cases in the GCC region. The defendant bank apparently failed to deposit the fine in view of the appeal pending against the DIFC verdict.In

|By Arabian Post Staff| Dubai-headquartered private equity investment group Abraaj announced another investment in India to buy a majority stake in Quality CARE India Ltd, which runs CARE Hospitals from global PE firm Advent International.CARE, which operates a multi-specialty chain of 16 hospitals across nine cities, plans to expand in "underpenetrated" regions of India, as well as enter other markets where Abraaj operates, the Dubai firm said in a statement.Abraaj tied up with India's Aditya Birla Group in October to

|By Arabian Post Staff| The UAE insurance industry has recently started to show signs of impact due to lower oil price and the challenging economic environment. The shifting regulatory landscape, increased competitiveness and light regulatory enforcement were some of the key topics of discussion at the recent Business Breakfast organized by EY, attended by key insurers and market players in the UAE insurance industry.“The UAE insurance industry is going through some serious challenges. New regulations for the insurance sector were

India’s rupee fell the most since November on speculation demand for riskier assets will be hurt as tensions in the Middle East intensify and poor Chinese economic data adds to concern over global growth.Emerging-market stocks and currencies dropped Monday as manufacturing in China weakened for a fifth straight month, the longest such streak since 2009. Saudi Arabia cut ties with Iran and expelled the Islamic Republic’s diplomats, a day after its embassy in Tehran was attacked to protest the Saudis’ execution

|By Arabian Post Staff| The World Gold Council is exploring the creation of a Shariah Standard on Gold, which will provide guidance from the Shariah perspective on the usage of gold in financial and investment transactions for Islamic financial institutions and participants.The Standard also aims to increase transparency and harmonisation regarding the use of gold in various market practices. A draft of the Standard has been prepared for the Council by Amanie Advisors, a DIFC-based consultancy and training agency specializing

Saudi Arabia’s stock exchange, the Arab world’s largest, aims to sell shares in an initial public offering in 2018.The Saudi Stock Exchange - Tadawul seeks to offer shares after completing a "readiness exercise and obtaining the necessary approvals," according to a statement on its website on Thursday. One of the world’s biggest petrochemicals manufacturers, Saudi Basic Industries Corp., trades on the Tadawul All Share Index. The gauge closed 0.1 percent up on Thursday.This year was the worst for Saudi stocks since 2008,

|By Arabian Post Staff| National Central Cooling Company (Tabreed) announced the signing of a AED 192.5 million long term limited recourse project finance facility with Emirates NBD for the district cooling plant it is developing for Dubai Parks and Resorts.Tabreed’s district cooling plant for Dubai Parks and Resorts is now nearing completion and will be commissioned in time for the park’s opening.Jasim Husain Thabet, Tabreed’s Chief Executive Officer, said the company’s approach to financing new projects is to utilise long

|By Arabian Post Staff| The Courts of the Dubai International Financial Centre (DIFC) have, once again, ruled in favour of the Al Khorafi family to the tune of $70 million plus costs and interest.This comes after the Court of First Instance published its judgment in November 2015, where the first and second defendants, Bank Sarasin-Alpen (ME) and Bank J.Safra Sarasin Ltd respectively, were ordered to pay the mentioned sum to the claimants.In a ruling with broad consequences for the international

|By Arabian Post Staff| IFC, a member of the World Bank Group, and the IFC Asset Management Company are investing $27 million in Souq, the largest e-commerce platform in the Middle East and North Africa. The investment will support the company's growth, boost e-commerce in the region, and help create jobs and drive innovation.The investment will help Souq diversify its offerings and enhance its logistics and payment infrastructure, helping the company reach more customers and support local suppliers. The expansion

|By TAP Staff| Standard Chartered  cut 11 sales and trading jobs in Dubai, including four managing director roles, it was reported.According to Bloomberg, the exits include those of Vikrant Bhansali, regional head of institutional sales; Farhan Aziz, head of credit solutions and Jillian Correa, regional head of flow.Standard Chartered has “acted to reduce management layers at a global level, and as a result, will have up to 25 percent fewer senior staff,” the bank said in e-mailed response to questions.

Japan's Bank of Tokyo-Mitsubishi UFJ (BTMU) has launched its Islamic finance business in Dubai, to focus on sharia-compliant loan syndications with later plans to offer project financing, a bank official said.Large Asian lenders from China to Japan are increasingly interested in Islamic finance as a way to tap large pools of liquidity in southeast Asia and the Gulf.In July, BTMU received approval from the Dubai Financial Services Authority to operate an Islamic window, which it plans to use as a

|By TAP Staff| Union National Bank reported third-quarter profit that missed analyst estimates as impairment charges rose and fee and trading income declined.Net income fell 12 percent to 480.6 million dirhams ($131 million), the Abu Dhabi-based bank said in a statement to the stock exchange on Sunday. Impairment charges jumped 57 percent to 199.8 million dirhams. Fee and commission income dropped 16 percent and the lender had a loss from currency and derivatives trading in the quarter versus a profit

Indonesia is drawing interest from Middle Eastern banks seeking to tap the world’s biggest pool of Shariah-compliant investors as some Islamic lenders wind down or close operations in Malaysia and Singapore.Emirates NBD PJSC wants to invest at least $300 million in a new Shariah lender or acquire a stake in an existing one, Dhani Gunawan Idat at Indonesia’s financial regulator said in a phone interview. That’s a vote of confidence for Southeast Asia’s largest economy, which is also bidding to

Gulf Related will borrow 2.3 billion dirhams ($626 million) from Abu Dhabi Commercial Bank to finance the construction of a shopping mall that will house the first Macy’s store outside the U.S.Gulf Related, a venture between Abu Dhabi’s Gulf Capital and New York-based Related Cos., announced the plan in a statement Monday. The 400-store mall, scheduled to open in 2018, is in Abu Dhabi’s new business district at Al Maryah Island, where Gulf Related built the Galleria luxury-shopping center.“There’s a

Janet Yellen may have unwittingly helped the Indian dollar-loan market rebound from a three-year low.Less than a week after the Federal Reserve Chair delayed raising U.S. interest rates, billionaire Mukesh Ambani’s Reliance Industries Ltd. hired 16 banks for a $1.5 billion loan and Rural Electrification Corp. also approached lenders. That takes the pipeline of local dollar-denominated loans planned, mandated or in syndication to more than $5 billion, as average margins loiter at less than 1 percent above the London interbank

|By TAP Staff| FGB claims to be the first bank in the UAE to offer a one-stop financing solution to start-ups. The bank’s new ‘Startup Proposition’ offers new businesses a range of financial solutions, from business current accounts and business credit cards, to start-up loans, overdrafts and trade/working capital facilities, with no collaterals required.The start-up package is designed to support new businesses in the initial stages of their business venture. New businesses can access a no minimum balance current account

|By TAP Staff| Abu Dhabi Islamic Bank (ADIB) has successfully raised AED 504 million in the first tradable rights issue for a bank in the UAE. The rights issue, which forms part of the comprehensive capital plan to support ADIB’s strong growth trajectory, was nearly 3 times oversubscribed with AED 1.46 billion in subscriptions received.Following the close of the subscription period on 10  September 2015, all 168 million shares were fully subscribed. The rights, which were traded on the Abu

The regulator of Dubai's financial free zone said on Wednesday it had fined Arqaam Capital $50,000 after investigating the Dubai-based investment bank over compliance with anti-money laundering rules.The investigation followed a periodic risk assessment by authorities that identified deficiencies in Arqaam's systems and controls to prevent money laundering, the Dubai Financial Services Authority said in a statement.The DFSA said its agreement with Arqaam did not mention any specific contraventions of rules, and that the investment bank cooperated fully at an

|By TAP Staff| The chief executive of Al Hilal Bank Mohamed Jamil Berro has resigned citing personal reasons. Berro was withe the bank for the past  seven years. According to a bank statement, Sarie Asaad Arar has been appointed acting group chief executive.Arar, with 25 years of banking experience, currently holds the position of chief business officer at Al Hilal Bank.In January this year, Reuters reported Berro was leaving the bank due to personal reasons, but the news

Japan's Bank of Tokyo-Mitsubishi said it had obtained permission from the Dubai Financial Services Authority to operate a so-called Islamic window, underlining growing Japanese interest in sharia-compliant banking.Islamic windows allow conventional banks to conduct Islamic finance by segregating assets from conventional interest-bearing funds. Industry sources said it was the first time that a bank from Japan was operating an Islamic window in the Middle East.BTMU decided to take the step after Japan's Financial Services Agency changed its supervisory guidelines, the

Saudi Arabia's sovereign wealth fund is to invest up to $10 billion in Russia over the next five years, in a move signalling a thawing in relations between the two countries.Saudi Arabia's Public Investment Fund (PIF), the country's sovereign wealth investment vehicle, agreed on Monday to invest $10 billion over the next five years approximately in the Russia Direct Investment Fund (RDIF), a government-run investment fund.Speaking to CNBC on Tuesday, RDIF's Chief Executive Kirill Dmitriev said that he thought the