Al Ain Municipality appoints Atkins
Posted by BI-ME , Author: BI-ME staff
Posted: Thu January 7, 2010 6:10 pm

INTERNATIONAL. International design and engineering consultancy, Atkins, has signed a major contract with Al Ain Municipality for establishing an Environment, Health and Safety (EHS) department for the Building and Construction Sector in Al Ain in the Emirate of Abu Dhabi, UAE.

The official signing ceremony took place yesterday (7 January 2010) in Al Ain and was attended by HE Dr Matar Al Nuaimi, General Manager of the Al Ain Municipality, and Dr. Abdullatif Merii, Atkins Director, Abu Dhabi

The establishment of the Building and Construction Sector EHS Department seeks to ensure effective EHS Management Systems (EHSMS) are implemented on construction sites within the eastern regions of the Emirate of Abu Dhabi, Al Ain by 2012.

The key objectives for this project include safer work places, healthy working environments, minimising pollution waste and delivering sustainable lifestyle and development.

Atkins’ scope on the project involves the recruitment and training of inspectors and other support staff according to training and Emiratization program set by the municipality, the establishment of an IT system for registration and reporting, and the development of an enforcement strategy under the supervision of the Municipality.

Atkins’ Project Director Dr Abdullatif Merii commended the Municipality for their holistic approach saying, “This is a landmark project for the Emirate of Abu Dhabi and the UAE.

Al Ain Municipality has taken the bold step to lead the way in assisting contractors and others to develop construction site management systems that will safeguard people and the environment – this new authority will quite simply save lives.” He also commended on the professionalism that the Municipality displayed through out all phases of the project from announcing the tender to the execution.

"The application of the EHSMS will raise the awareness of environmental aspects that stem from construction activities, ultimately improving man's situation within the environment without upsetting it,” he concludes.

This Sector department will have a direct link with Abu Dhabi Municipality (ADM) and the Western Region Municipality (WRM).

The joint initiative with Atkins is very much in line with the Municipality goal of encouraging the establishment of strategic partnerships between the public and private sectors to improve ‘efficiency and accountability towards progress’.

General Manager of Al Ain Municipality, HE Dr Matar Al Nuaimi commented “This phase of the project will ensure the full implementation of the system which adheres to the decision of HH Sheikh Mohammad bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces and Chairman of the Executive Board - no. (42) for the year 2009 on the system of environmental management and health and safety, which refers to the role of the Department of Municipal Affairs as the regulator for the Emirate. It also reflects the project as one of the most basic components of the political agenda of the Emirate of Abu Dhabi, it is also a top priority for the Environmental Agency’s strategy which was adopted by the Executive Board for the period from 2008-2012 AD.”

Research recently carried out by UAE University indicated that about two-thirds of occupational-injury admissions at AI Ain Hospital in 2008 involved accidents common to construction workers. Most of the injuries were caused by falls or falling objects both of which could be minimised through enforcement, education and precaution, experts said. Elias McGrath, the group administrator of BuildSafe UAE, said that although the government has passed laws to protect labourers, better enforcement was needed.

By the year 2020, it is anticipated that there will be an EHS culture that delivers these goals as a part of normal life in the Emirate of Abu Dhabi.


Engineer Rowda Al Saadi – Infrastructure & service coordination division manager "The fundamental goal of the environmental management system, is to ensure healthy and safe working conditions in the construction sector in Al Ain and the development of an effective administrative system for environmental, health and safety regulations and to help the sector entities in Al Ain to develop their own systems in this area, in cooperation with the municipality of the Emirate of Abu Dhabi and under the umbrella of the Department of Municipal Affairs.

Al Ain Municipality has completed the first stage of the project which includes the development of this system, which is the first in the Emirate, particularly in the construction sector as well as the development of the internal system of Al Ain Municipality, through:

• Analysis of gaps, for all the various environmental, health and safety aspects of the building and construction sector in the Emirate, and to determine the appropriate validity, effectiveness, efficiency, and the strengths and weaknesses of counter measures and to achieve the aspirations of the Abu Dhabi government, both in the short and long term, up until 2030.

• Study the requirements of the new legislative framework, and determine the additional legislative requirements.

• Development of the first unified system of environmental management and health and safety particularly in the building and construction sector in the Emirate, with the development of new practices which incorporate the best international practices.

• Explore the best global information systems which deal with environmental management, health and safety, and working at the sector level in order to ensure standardization of the system between municipalities.

• Providing a business portfolio to implement the system which includes: (1) breakdown of the organization, (2) cost-benefit analysis, (3) timetables for implementation, (4) key performance indicators for the implementation of the new system.”


News Link: http://www.bi-me.com/main.php?id=43262&t=1&c=35&cg=4&mset=1011

Salman City attracts $3.5bn in Bahrain
Posted by Arab News
Mahmood Rafique | Arab News
Thursday 7 January 2010






King Hamad bin Isa of Bahrain being briefed by the Minister of Industry and Commerce Hassan A. Fakhro on a model of Salman Industrial City in the presence of the crown prince, prime minister and ministers on Wednesday. (AN photo)

MANAMA: The inflow of investments within Salman Industrial City has already reached $3.5 billion and will reach over $7.6 billion after its various projects are completed, a senior government minister has claimed.

Minister of Industry and Commerce Hassan A. Fakhro, speaking at the opening of the Salman Industrial City, said on Wednesday that infrastructure and industrial development would also create an estimated 34,000 jobs.

The opening ceremony at Hidd industrial area was attended by Prime Minister Sheikh Khalifa bin Salman Al-Khalifa, Crown Prince Sheikh Salman bin Hamad Al-Khalifa, and about 1,000 guests.

The Salman Industrial City is an ambitious economic development project, which according to the minister will shape the future of Bahrain’s economy.

The industrial clusters include the Hidd Industrial Area, Bahrain Investment Wharf (BIW) and Bahrain International Investment Park (BIIP).

As part of the strategic Vision 2030 for economic development, Fakhro claimed such vital projects would complement the great strides already achieved by Bahrain.

He added the leadership’s presence at the opening ceremony was testament to the personal interest it has taken in all matters related to the development of the country. Fakhro said the industrial field has emerged as the main engine of growth of the economy.

“This project will build Bahrain’s economic future and link our country with the Gulf region through causeways and highways to other GCC (Gulf Cooperation Council) countries, and will hopefully meet the country’s needs and enhance our economy even further, so as to achieve our citizens’ hopes and aspirations at all levels.”

News Link: http://arabnews.com/?page=6&section=0&article=130830&d=7&m=1&y=2010

Modon awards SR600m water, sanitation project for Jeddah Second Industrial City
Posted by Saudi Gazette
Thursday, 07 January 2010

JEDDAH - Saudi Industrial Property Authority (Modon) has awarded a major project to Mowah Company for the construction of water, sanitation, industrial drainage, irrigation and wastewater treatment plant at a total capacity of 45,000 m³/day.

In a statement on Wednesday, Modon said theagreement was signed by Dr. Tawfig Bin Fawzan Alrabiah, director general of Modon.

The company said the project will help to preserve the environment by treating wastewater to be highly pure and reusable in the industry.

Mowah Company as one of the leading companies in the field of water services projects in the Kingdom.

The project is among a number of similar projects that were signed by Modon with a number of other local companies under BOT system, where Modon has succeeded in attracting the private sector to invest in the infrastructure projects and the operation of facilities and establishment of services.

The contract is one of the important projects in Jeddah 2nd Industrial City, where the development process began last year. The project includes establishment of wastewater treatment plant, another plant for the industrial wastewater, establishment of three (drinking, irrigation, and sanitation) water networks as well as pumping stations and a modern control system.

Alrabiah said “the company’s investment value in this project is SR600 million, while the expected time frame for the completion of the project is three years in its first phase. The project will cover the needs of factories in Jeddah 2nd Industrial City on an area of 8 million square meters and will provide different types of water, from which, the industries established in the city and the district cooling shall benefit, which will reflect positively on the factories for which lands are allocated.”

Eng. Sami Ben Fahd Al-Rayes, chairman of Mowah Company, said the project provides infrastructure services for the new factories which are expected to benefit from drinking water and industrial water supplies along with sewage disposal, providing water for irrigation, as well as providing water supply for the district cooling system of the city.

The major project facilities are:

• Network of drinking water on a total length of about 90 kilometers.
• Network of industrial wastewater on a total length of about 70 km.
• The network of irrigation water on a total length of about 80 km.
• Wastewater treatment plant for a total capacity of 45,000 m³/day.
• Drinking treatment plant for a total capacity 35,000 m³/day.
• Water pumping station for a total capacity of 35,000 m³/day.
• A pumping station for water at a capacity of 25,000 m³/day.
• Modern technology system by using SCADA systems for monitoring all the facilities mentioned above.

The project would also bring economic returns to the national economy and local development such as provision of new employment opportunities directly to about 360 people in the construction phase and 66 people in its operational phase, in addition to about 1,000 indirect jobs as an additional benefit to the Saudi market.

Moreover, the project will also contribute to relieve the burden on traffic caused by the movement of heavy trucks (water tanks) on Jeddah roads.

Besdies, the project will reduce or limit pollution and aggravation of sanitation problem of Jeddah City to be re-used in the industry which will help in rationalization of water use.

Modon currently oversees 18 existing industrial cities in various regions of the Kingdom (Riyadh 1 & 2, Jeddah 1 & 2, Dammam 1 & 2, Makkah, Qassim, Ahsa, Madinah, Assir, Al Jouf, Tabuk, Hail, Najran, Al-Kharj, Jazan, and Ar’ar). The investments in these cities exceeds SR200 billion and approximately 300,000 workers are employed in these cities. Meeting with the investors who applied to obtain industrial lands in Jeddah 2nd Industrial City is under process and lands and investment opportunities are still available in various fields. Investors wishing to invest in the industrial cities are advised to visit Modon website where they can invest in industrial, service, commercial, residential and/or medical sectors. - Saudi Gazette Staff


News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010010759361

The world's tallest tower, 'Burj Khalifa' is 828 metres high
Posted by BI-ME , Author: BI-ME staff
Posted: Tue January 5, 2010 11:31 am

UAE. The world's tallest tower, developed by Emaar Properties, was unveiled on Monday to a crowd of thousands and the world in a crescendo of fireworks, lasers and fountain displays.

The official height of the tower, unveiled as 'Burj Khalifa', was announced as 828 metres (2,716.5 ft).

A closely guarded secret, the official height of Burj Khalifa was flashed onto a giant screen before an estimated crowd of more than 400,000, as lasers and fireworks lit up the night sky.

Fireworks cascaded from the tower's spire to the base and lasers blazed out from all levels leaving the crowds awestruck.

The height was disclosed in arithmetic progression, with the numbers being flashed onto the screen, one after another. The tower's height breaks all existing world records for tall buildings.

Burj Khalifa is the tallest building in the world according to the three main criteria of the Council on Tall Buildings and Urban Habitat (CTBUH). The CTBUH ranks the world’s tallest buildings based on ‘Height to Architectural Top,’ ‘Height to Highest Occupied Floor’ and ‘Height to Tip.’

At 828 metres (2,716.5ft), Burj Khalifa is 320 metres taller than Taipei 101, which at 508 metres (1,667 ft) had held the record for the world’s tallest building measured to the architectural top since 2004, the year the project was announced.

Burj Khalifa achieved the distinction of being the world's tallest structure – surpassing the KVLY-TV mast (628.8 metres; 2,063 ft) in North Dakota, USA – 1,325 days after excavation work started in January 2004.

The tower also beats the 31-year-old record of CN Tower, which at 553.33 metres (1,815.5 ft) had been the world’s tallest free-standing structure on land since 1976.

Burj Khalifa employs a record-breaking 330,000 cubic metres of concrete, 39,000 metric tonnes of steel rebar and 142,000 square metres of glass; and it took 22 million man hours to build.

Other world records for Burj Khalifa include the highest occupied floor in the world, at over 550 metres (1,800 ft); the highest outdoor observation deck in the world – At the Top on Level 124; and the tallest service elevator, which travels to a height of 504 metres (1,654 ft).

Mohamed Alabbar, Chairman, Emaar Properties, said that with the unveiling of the final height of Burj Khalifa, the world now had a new reference point for high-rise developments.

“Burj Khalifa is an example of collaboration on a global scale, and the tremendous positive energy that can be generated when people from all over the world come together to work towards a common goal. Thousands of professionals and skilled workers from around the world worked on this once-in-a-lifetime project.”

“More than 60 of the world’s leading consultants including South Korea’s Samsung Corporation and New York-based Turner Construction International realised the design for Burj Khalifa of Chicago-based Skidmore, Owings and Merrill (SOM),” he said.

Burj Khalifa employed the latest advances in wind engineering, structural engineering, structural systems, construction materials and methods. All design considerations took into account the 12,000 people who will live and work in the tower.

The handover to residents of the various components of Burj Khalifa will begin in February.

With a total built-up area of about 6 million sq ft, Burj Khalifa features nearly 2 million sq ft of residential space and over 300,000 sq ft of prime office space, in addition to the area occupied by the keenly awaited Armani Hotel Dubai and the Armani Residences.

The tower also features modern lifestyle amenities including clubs, health and fitness facilities, gourmet restaurants and the 124th floor observation deck, 'At the Top.'

Burj Khalifa is the focal point of the 500-acre ‘mega-project’ by Emaar Properties, described as the new heart of Dubai.

News Link: http://www.bi-me.com/main.php?id=43192&t=1&c=34&cg=4&mset=1011-


Abo

Saudi economy to grow by 4.5% in 2010, says Goldman Sachs
Posted by BI-ME , Author: BI-ME staff
Posted: Tue January 5, 2010 9:40 pm


SAUDI ARABIA. The Saudi economy will expand 4.5% this year as increased public expenditure paves the way for sustained economic recovery, The National reported, citing a Goldman Sachs forecast.

Strong balance sheets in the banking and household sectors should also help to ensure that the kingdom outperforms most other GCC members, Goldman said in a research note.

“Saudi authorities currently have considerable fiscal resources at hand, which would enable them to support the economy and ensure that recovery is sustained through 2010,” said Ahmet Akarli, an economist at Goldman Sachs

The US bank expects a budget surplus for the current year of about SAR230 billion, with revenue at SAR860 billion and outlays at SAR630 billion.

Public expenditure could approach 35% of GDP this year, a smaller share than last year, but higher than the shares for the two years prior to that, Goldman said.

“Clearly, Saudi Arabia, alongside the GCC’s other hydrocarbon-heavy economy Qatar, is ideally positioned to benefit from the ongoing cyclical recovery in the global economy and outperform its peers in the Gulf region,” said Akarli.

The IMF has forecast growth of 4% in Saudi Arabia for this year.


News Link: http://www.bi-me.com/main.php?id=43216&t=1&c=34&cg=4&mset=1011

Arab fund for small projects receives $1.25b
Posted by Saudi Gazette
Wednesday, 06 January 2010

CAIRO - The Arab fund for supporting small and medium-sized development projects has now received $1.25 billion in contributions out of the targeted $2 billion, the Arab League said here Monday.

The fund was launched during the first Arab Economic and Social Development Summit held in Kuwait in January 2009.

The $1.25 billion sum has been contributed by several Arab countries to the fund which was suggested by the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Assistant Secretary General of the Arab League for Economic Affairs Mohammed Al-Tuwaijri said in news remarks.
Regulations and bylaws are underway for governing the process of extending loans to small and medium-sized development projects.

Several Arab countries, have presented 11 food projects to the fund for bankrolling, he added. – Kuna

News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010010659255

Abu Dhabi's World Future Energy Summit gains support of global business community
Posteb by BI-ME -| Author: BI-ME staff
Posted: Mon January 4, 2010 11:30 am

UAE. The World Future Energy Summit has gained the support of some of the world’s leading businesses, who are joining Masdar and Abu Dhabi in demonstrating their commitment to developing a sustainable future energy supply, as Abu Dhabi’s position as a global hub for renewable energy grows.

Hosted by Masdar, Abu Dhabi’s multi-billion dollar cooperative future energy initiative, the Summit has attracted sponsorship from Deutsche Bank Climate Change Advisors, the principal sponsor for the 2010 event. Emirates Aluminium is Associate sponsor and additional sponsors include BP Alternative Energy, Standard Chartered, Siemens, Schneider Electric, Exxon Mobil, ABB, Abu Dhabi Water and Electricity Authority, Oxy, Abu Dhabi Department of Municipality Affairs and Terna.

The World Future Energy Summit has rapidly become one of the globe’s foremost meetings in the world of renewable energy. The event represents a platform for the global alternative energy industry to further new initiatives, technologies and policies, and reinforces Abu Dhabi’s contribution to the global renewable energy industry.

For the third year running, Standard Chartered Bank will host the Standard Chartered Future Theatre showcase, bringing together worldwide renewable energy experts to discuss the most recent and significant innovations of the sector. Discussions linked to the energy economy, cross-border M&A or solar in the Middle East will be a part of the program.

BP will host the Carbon Theatre which will be led by Katrina Landis, Group Vice President of BP Alternative Energy. Theatre audiences will hear leading experts from BP and high level speakers from around the world discussing the critical issues of carbon capture and storage and how it can reduce global carbon emissions. Speakers at the Carbon Theatre include Paul Bryant, Director of HPAD, Ernie Moniz, Director of MIT Energy Initiative, Graeme Sweeney Executive Vice President of Shell for future fuels and CO2 and Jeff Chapman, Chief Executive of the Carbon Capture and Storage Association.

News Link: http://www.bi-me.com/main.php?id=43164&t=1&c=34&cg=4

Makkah to be made most advanced city in the world
Posted by Arab News
Galal Fakkar | Arab News
Tuesday 5 January 2010


JEDDAH: Makkah Gov. Prince Khaled Al-Faisal has emphasized the importance of making Makkah one of the most beautiful, clean, civilized and advanced cities in the world.

Launching the first competition for the beautification of Makkah at the Park Hyatt Hotel in Jeddah, he said the Saudi leadership was keen to make Makkah one of the most developed and beautiful cities in the world.

A number of artists, consuls general, businessmen, government officials and media persons attended the ceremony organized by the Makkah municipality.

“The development strategy for Makkah has been at the heart of the Kingdom’s Five-Year Development Plans,” the prince said. “If Makkah had not been here, this region would not have attained such an important cultural and political position in the world,” he added. He said all development proposals and initiatives for Makkah’s development came from the vicinity of the Holy Kaaba.

“We are honored to serve the House of God and we have a responsibility to develop Makkah and ensure that peace and security prevail there for the welfare of pilgrims who come from different parts of the world,” he said.

He commended the efforts of those, including artists and businessmen who have taken the initiative for the beautification of Makkah.

Makkah Mayor Osama Al-Bar said the preparation for the first Islamic competition for the beautification of Makkah had taken two years to make a plan, taking into account Makkah’s preeminent position in the Islamic world.

He said the municipality intended to ensure the participation of a large number of artists from Arab and Islamic countries in the competition, adding that it would be publicized in the international media.

Spelling out the main objectives of the competition, Al-Bar said it primarily aimed at the beautification of Makkah by converting its corners into museums of Islamic artwork.

“It also offers a good opportunity for Muslim artists around the world to display their skills and standards,” the mayor said.

He said the competition also aims at spreading art by depicting Makkah’s heritage in artworks. It will help to exchange the participants’ expertise.

Prizes worth $300,000 will be given to the winners, said artist Taha Sabban, a member of the contest’s preparatory committee. The art works will be displayed at 12 locations in the city.

News Link: http://arabnews.com/?page=1&section=0&article=130723&d=5&m=1&y=2010

AgraQuest Introduces New Soil Fungicide for Potatoes and Other Crops
Posted by AgraQuest

AgraQuest Introduces Valuable New Soil Fungicide for Early Season Disease Control in Potatoes and Other Crops

SERENADE® SOIL fungicide to provide growers with unique solution to improve profitability

Davis, Calif. (January 4, 2010) - AgraQuest Inc. announced today the launch of SERENADE SOIL, the first soil fungicide based on its patented active ingredient Bacillus subtilis strain QST 713. In 2010, SERENADE SOIL fungicide will be available in the U.S. for growers needing protection against profit-robbing soil diseases such as Rhizoctonia, Fusarium, Pythium and Phytophthora in potatoes, tomatoes and cucurbits.

Applied at planting, SERENADE SOIL quickly builds a disease protection zone around the seed. As the seedling grows, the beneficial bacteria in SERENADE SOIL continue to grow, attaching themselves to the roots of the plant, expanding the disease protection zone, resulting in higher-yielding fields and better quality fruits and vegetables.

“Proven over the past several years in numerous lab studies, field trials and large-scale grower demos, SERENADE SOIL delivers on our commitment to bring growers unique tools that deliver on AgraQuest’s promises: performance, flexibility and value,” said Ashish Malik, Senior Vice President of Global Marketing.

Three years of investigation have demonstrated that plants treated with SERENADE SOIL fungicide are stronger, healthier, and are shown to deliver average yield increases of two to four tons of potatoes per acre. The strong yield results delivered by SERENADE SOIL are based on the diverse and unique activities of B. subtilis strain QST 713 in the soil.

When SERENADE SOIL is applied at planting, the beneficial bacteria quickly attack soil diseases, while rapidly colonizing the seedling and root. Once colonized, the bacteria produce compounds that not only continue attacking soil diseases, but also trigger metabolic pathways to activate the plant’s natural defenses and modulate growth.

Products based on AgraQuest’s patented B. subtilis strain QST 713 have been protecting crops from foliar diseases for nearly a decade, since the first SERENADE products was introduced in the U.S. in 2000. Registrations have been obtained in more than 26 countries, including several countries in the the European Union, Latin America, Japan and Canada. SERENADE SOIL fungicide is the first product in the SERENADE line designed and tested for use in the soil. In April 2009, AgraQuest announced a license, supply and distribution agreement with BASF for SERENADE for agriculture applications outside of NAFTA.

“We such dramatic yield and quality effects because SERENADE SOIL brings som many distinct modes of action to the battle,” said Malik. ”And, as with other products in the family like SERENADE ASO and SERENADE MAX, growers who use SERENADE SOIL can count on its ease of use with 4-hour REIs, broad tank-mix compatibility, and exemption from residue tolerances.”

Investment in new products like SERENADE SOIL are part of the $130 million spent by AgraQuest on research and development designed to revolutionize the way we produce food globally.

About AgraQuest, Inc.

AgraQuest is a biotechnology company that focuses on discovering, developing, manufacturing and marketing highly effective pest management products for agricultural, institutional and home markets. As a leader in the emerging low chem sector, AgraQuest works to provide growers with solutions that offer best in class control while reducing the chemical load on the environment. The Agrochemical division of AgraQuest offers a global portfolio of products - recognized as safer to beneficials, workers, and the environment - that includes SERENADE®, SERENADE® Garden, RHAPSODY®, SONATA® and BALLAD® fungicides and BARITONE® and REQUIEM® insecticides. AgraQuest’s BioInnovations division provides the company an avenue to take biological and low-chemical technology created for the agricultural industry and discover innovative uses for it in related markets. The BioInnovations division identifies both appropriate market segments and opportunities for AgraQuest’s intellectual property, while seeking industry leaders in ancillary markets to partner in the commercialization and distribution process. AgraQuest has received several environmental awards including the Presidential Green Chemistry Award from the U.S. EPA for the discovery and commercialization of SERENADE. For more information visit www.agraquest.com

News Link: http://agraquest.com/news/2010/01/agraquest-introduces-new-soil-fungicide-for-potatoes-and-other-crops/

Jadwa Investment acquires equity stake in GUFC
Posted by Arab News
Monday 4 January 2010


JEDDAH: Jadwa Investment has completed its acquisition of a substantial equity stake in Gulf Union Foods Company (GUFC) through Jadwa Food and Beverage Opportunity Fund, according to a joint announcement from the two companies.

“The acquisition builds on our direct investment portfolio which contains Saudi Aramco’s Lubricating Oil Refining Company and capitalizes on our execution expertise. It’s also consistent with Jadwa Investment’s strategic objective of acquiring substantial equity stakes in promising companies,” said Ahmed Agil Al-Khateeb, MD and CEO of Jadwa.

“I am pleased that the shareholders overwhelmingly approved Jadwa’s proposal to acquire a substantial equity stake in GUFC. I would like to thank them for their support over the course of this transaction and now look forward to partnering with them to execute our strategic plan and continue to grow the business together. GUFC has a strong and talented management team that has helped growth of the business to become a dominant player in the Saudi food and beverage market. We are delighted to work with them in the next phase of the company’s growth and expand the business to become a regional food and beverage company. Our goal in the next phase of the company’s growth is to expand the business operationally so it becomes the market leader in the Saudi food and beverage market. Also, the company is pursuing an ambitious expansion plan that will help it better serve this active sector,” Al-Khateeb said.

“GUFC is pleased to be associated with a renowned financial group like Jadwa”, said Suleiman Saleh Al-Rushudi, chairman of GUFC. “Looking at the history of growth trend and its long-term vision, GUFC approved the deal with Jadwa, which is a reputed, reliable and a sound financial entity. GUFC strongly believes that this association will help materialize its long-term growth objectives. The technical and financial ability of Jadwa along with the manufacturing expertise of GUFC will further enhance and optimize our operations in various fields. GUFC considers this business association with Jadwa as an opportunity to benefit from each other’s expertise and diversify in other related businesses,” Al-Rushudi added.

GUFC is one of the leading juice and beverage manufacturing companies in the Kingdom. The company manufactures juices, nectars and flavored drinks, with its products sold in more than 20 countries across different regions, including Saudi Arabia, GCC (Gulf Cooperation Council), Levant, North Africa, Canada, UK, Indian Subcontinent and other countries. It currently has seven state of the art production lines, 550 dedicated staff and 120 sales trucks. It has a diversified product mix with recognized brands such as: Original, Maaza, Captain and Qobtan.

News Link: http://arabnews.com/?page=6&section=0&article=130663&d=4&m=1&y=2010

2010 will put Arab markets back on international radar
Posted by Zawya.com
Emirates Business 24-7, 04 January 2010

Arab markets will be able to leave behind issues related to over-leveraging and real estate and show strong performance in 2010. Markets will attract much stronger interest from global investors as compared to 2009, finance industry players told Emirates Business.

"The west has realised that the future is in the East, be it the Middle East or the BRIC (Brazil, Russia, India, China) countries. Global focus is shifting to this direction. The UAE is in a prime, easily accessible location, and its laws are straightforward," said Amani Choudhry, Managing Director, Mayfair Wealth Management.

Investor confidence will be more positive by the third quarter of 2010 and institutional investors are likely to be more aggressive in their approach. The year will also see organisations focusing more on managing their risks, analysts said.

"The main theme for 2010 will be the return to normalcy. We will leave behind the past two years' gloomy thinking and return to a rational assessment of investment opportunities," said Zin Bekkali, CEO, Silk Invest.

"Emerging market equities will be preferred and Asian, Arab and African markets are typically poised to do well. Emerging markets have not been impacted too much by the downturn and will continue profiting from their long-term convergence trend. Asian, Arab and African markets will do especially well. These three regions account today for around 46 per cent of world GDP (gross domestic product), though historically this was close to 80 per cent.

"Catalysts for good returns during 2010 in the three regions will differ. Arab markets should finally leave behind issues related to real estate and over-leverage. This should lead to a rally in both Arab equity and fixed income markets," he added.

In terms of asset categories, equities are likely to stay the preferred option, analysts opined. "We favour equities but are looking to start selling into a strong market in Q1 2010. As of Q2 2010, we should be underweight stocks and favour government bonds.

"We are not looking into gold as an option but it should perform better than commodities and real estate, which will suffer if the cycle goes into reverse. Within stocks, we would rotate into defensive sectors such as telecoms and consumer staples and underweight consumer cyclicals and financials, " said Rohit Walia, Executive Vice Chairman and CEO, Bank Sarasin-Alpen (ME) Limited and Alpen Capital (ME) Limited.

Industry analysts expect overcautious investors who have been holding on to cash, to increase their allocation to active fund managers and take some risks by the third quarter of the year.

The first two quarters are likely to see investors emphasizing on liquidity in their investments, analysts predicted. "At the moment most clients are pushing on liquidity and want easy access to money. Right now we are focusing on investments in gold, precious metals, foreign exchange," said Choudhry.

Analysts said confidence was returning gradually and would show positive results in 2010. "We look forward to an improved scenario," said Hedi Ben Mlouka, Managing Director of Duet Group. Higher confidence would lead to a better market environment for asset managers, observers felt.

"We expect investors to increase their allocation to active fund managers and risky asset classes. Many investors used passive indexing strategies to return to the market in 2009 and we believe these investors will allocate back to active fund managers in 2010," said Bekkali.

Analysts also expect institutional investors to be more aggressive in their decisions during 2010. "Many institutional investors have missed part of the recovery that global markets experienced and will be keen to invest more aggressively in 2010," said Bekkali.

Interest from global investors is expected to be more encouraging when compared to 2009 but a lot will depend on local investors activity, analysts said. "Low valuations are putting the region back on the radar screen of international investors. Foreign investors will however only start to become more active if local investors return to the market themselves.

"The good news is that foreign investors have become more realistic and understand better that there should be room for success and failure in these markets.

"Companies will continue with their expansion plans in the coming year. We are also planning moderate expansion and are looking at asset management business," Mlouka said.

"Tight credit markets suggest that regional businesses may turn to local equity markets for growth capital. Many family-owned businesses across the GCC put IPO plans on hold during the downturn. They now require capital and anecdotal evidence suggests that investors are ready to back strong local businesses at sensible valuations," said Oliver Schutzmann of Shuaa Capital.

Greater focus on risk management and increased regulation is expected in 2010. "Having learnt their lesson from the economic crisis, 2010 will see an increased focus on risk management," said Saad Maniar, Managing Partner, Horwath Mak.

"Earlier, risk management was just one of the functions, not a focus area. But this year, that will be a big change." Risk consultancy business, as a result, will grow in 2010.

"At Horwath Mak, we expect about 10 per cent growth, in line with industry growth of eight per cent to 10 per cent in the coming year. Also, the function of risk management will be seen moving to personnel in senior positions such as the CEO, Maniar said.

The financial sector can expect higher regulation as organisations and regulatory bodies pay more attention to strengthening fundamentals.

Raising capital and liquidity ratios is likely to be a major focus area. "Finance industry will face strong headwinds from regulatory bodies requiring them to raise capital and liquidity ratios," pointed out Walia.

Levels of Non Performing Loans (NPLs) have been rising and analysts expect these to peak in 2010 and impact bank balance sheets. Banks in the region though will be able to sail through, they said.

"Write-offs from the recession will continue to mount and will impair banks' ability to continue lending. However, low central bank interest rates will help them over this difficult period," said Walia.

By Q3, analysts expect a more positive scenario. Choudhry opined that government measures would play a significant role in boosting market sentiment. After weathering recent tough liquidity conditions, banks need more liquidity, she added.

By Shveta Phatak

© Emirates Business 24/7 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100104043032/2010%20will%20put%20Arab%20markets%20back%20on%20international%20radar

Saudi market cap rises by 29.31% to SR1.20 trillion
Posted by Arab News
Khalil Hanware | Arab News
Sunday 3 January 2010



JEDDAH: The Saudi stock market began the first day of trading in 2010 on a positive note on Saturday after a roller coaster 2009.

The Tadawul All-Share Index (TASI) closed 19.87 points or 0.32 percent higher at 6,141.63. The sector gains for the day ranged from 0.05 percent by the Real Estate Development sector to 1.74 percent by the Telecommunication & Information Technology sector where as the sector losses ranged from 0.11 percent by the Banks & Financial Services sector to 1.06 percent by the Industrial Investment sector. The market breadth remained positive with 57 advancers against 53 decliners giving an AD ratio of 1.08, the Jeddah-based Financial Transaction House (FTH) said in its daily market commentary.

The Petrochemical Industries index closed 0.84 percent higher at 5,441.94. Shares in Saudi Basic Industries Corp. (SABIC) increased by 0.30 percent to SR82.75 while shares in Rabigh Refining and Petrochemical Co. (Petro Rabigh) gained 0.56 percent to SR35.70. Saudi Kayan Petrochemical Co. shares surged 1.37 percent to SR18.45.

The only loser in the sector was Saudi International Petrochemical Co. Its shares closed on Saturday at SR23.80, down 0.21 percent.

In the Banks & Financial Services sector, shares in Riyad Bank, Bank Albilad, Alinma Bank, Arab National Bank and Bank AlJazira declined on Saturday.

Shares in Etihad Etisalat jumped 3.46 percent to close at SR44.90 on Saturday. Saudi Telecom Co. (STC) shares gained 0.45 percent to SR44.30.

The stock market turnover was over SR1.44 billion on Saturday.

At the end of 2009, TASI closed at 6,121.76 points compared to 4,802.99 points in the previous year. The index gained 1,318.77 points or 27.46 percent last year. The highest closing level for the index during the year was 6,568.47 points as on Oct. 24.

The total market capitalization in 2009 increased by 29.31 percent to SR1.20 trillion ($318.80 billion), according to Tadawul’s Annual Statistical Report 2009, released on its website on Saturday.

The total value of shares traded for the year 2009 reached SR1.26 trillion ($337.07 billion) compared to SR1.96 trillion ($523.45 billion) for the previous year, a drop of 35.61 percent.

The total number of shares traded in 2009 reached 57.34 billion compared to 60.82 billion shares traded during the previous year, decreasing by 5.73 percent.

The total number of transactions executed in 2009 fell by 30.07 percent to 36.46 million compared to 52.14 million trades in 2008, the report said.

The daily average value of shares traded during the year 2009 dropped by 35.35 percent to SR5.06 billion compared to SR7.82 billion in the previous year.

The daily average number of shares traded (adjusted) in 2009 was 229.35 million compared to 242.31 million shares for the previous year, decreasing by 5.35 percent.

The Tadawul report said petrochemical sector was the most active sector in term of volume of shares traded in 2009. The number of shares traded for the sector reached 10.98 billion that represent 19.15 percent of the total volume traded during the year, followed by the Banks & Financial Services sector with a volume of 8.90 billion shares or 15.52 percent of the total shares traded during the year and the Insurance sector with 5.58 billion shares traded or 9.74 percent of the total shares traded during the year 2009.

The petrochemical sector also led the market in term of value of shares traded in 2009 amounting to SR299.90 billion or 23.7 percent of the total value traded, followed by the Insurance sector at SR201.11 billion or 15.91 percent and the Banks & Financial Services sector at SR149.42 billion or 11.82 percent of the total value traded.

The Insurance sector was the most active sector in term of number of transactions with 8.58 million trades that represent 23.55 percent of the total transactions executed during the year, followed by the Petrochemical Industries sector with 5.93 million trades or 16.28 percent and the Agriculture & Food Industries sector with 3.47 million trades or 9.51 percent of the total transactions during 2009.

News Link: Arab News

Saudi, Japan JV taking care of Jeddah wastewater
Posted by Arab News
Shaheen Nazar | Arab News
Sunday 3 January 2010


JEDDAH: The wastewater treatment plant that was built last year near the Musk Lake in the east of Jeddah is operating smoothly, treating up to 15,000 cubic meters of water per day (m3/day).

The 60,000-m3/day-capacity plant has “the ability to dry up the lake in one year,” said Nizar Kammourie, chief executive officer of Suido Kiko Middle East, a joint venture between Saudi Brothers Commercial Company and Suido Kiko Kaisha of Japan.

In light of negative rumors about the lake following November’s floods, Kammourie’s statement lends weight to the Jeddah Municipality reassurances that the lake is safe.

Suido Kiko Middle East is working on two other projects in Jeddah that will be ready for operation this year. The first is Al-Khomrah wastewater treatment plant, which will receive industrial waste as well as domestic waste. The second project is a seawater desalination plant on the shores of the Red Sea in south Jeddah. The plant near the Musk Lake has been built under a contract with the Jeddah Municipality. It applies the most advanced sewage water treatment technology called MBR (membrane bio-reactor). This is said to be the largest facility of its kind in the entire Middle East. Kammourie said the Japanese technology is capable of treating sewage water to the point of making it “almost drinkable.”

On a visit to the plant, Kammourie displayed the treated water in a glass claiming it is consumable, adding that it requires one more stage of treatment called reverse osmosis (RO) if needed on a commercial basis. He said his company would increase its capacity gradually as and when the municipality wants them to do. So far, the plant is not taking sewage water from the lake and only concentrating on sewage brought from Jeddah everyday by trucks. “We have proposed to the municipality to link our plant with the Musk Lake. Given the opportunity, we have the ability to dry up the lake in one year,” he said.

The contract between Suido Kiko Middle East and the Jeddah Municipality is only for the daily supply of sewage water. Kammourie said his company has set strict parameters to accept truckloads. Among the parameters are PH, TDS, color and smell. This is to ensure that no industrial waste is mixed with domestic waste.

The company has trained Saudis to handle the sophisticated machines installed on the plant. The site also has Japanese experts, besides the usual work force from Asian countries. The treated water is collected in a pond and so the municipality has laid a pipeline to take the water to the eastern forest for irrigation.

Work on the other water treatment plant at Al-Khomrah in the south of Jeddah is in progress. According to Kammourie, it will be ready by July this year. It will have a capacity to treat 25,000 m3/day of industrial waste and 25,000 m3/day of domestic waste. The recycled water can be used for irrigation as well as agricultural purposes. Even the factories which would supply the wastewater themselves can use it. But it is for the municipality to decide what to do of this water. “If no one takes this water it can be disposed of in sea. It’s safe,” said Kammourie. But, he said, the ultimate decision about the use of recycled water lies with the National Water Company, an autonomous body formed by the Ministry of Water and Electricity. Launched in 2008, it is mandated to oversee water treatment and water supply in the Kingdom.

The desalination of seawater is another important area of water management in the Kingdom. This is the responsibility of the Saudi Water and Electricity Company (SWEC).

Suido Kiko Middle East is working on another ambitious project for the desalination of seawater in Jeddah. Known as South Jeddah Corniche (SOJECO), the plant is scheduled to be ready by the fourth quarter of 2010. It will supply water to the upcoming Jeddah Industrial City Phase II. It will also cater to the needs of Al-Khomrah area, which is 10 km from the plant. While the facility is being built by the Saudi-Japanese joint venture, it will be run by SAWACO, a private company involved in desalinating seawater and supplying to consumers in and around Jeddah. It is owned by Saudi Brothers, the local partner of Suido Kiko. SOJECO as well as the wastewater treatment plants in Al-Khomrah and east Jeddah are based on Japanese technology. “You can see very noticeable Japanese elements in all of our projects. We have a joint venture with them. But this apart, they have good engineering and they have good equipment. In MBR, Japan is the world leader. With regards to anything to do with membrane filtration, the Japanese are ahead. They have a distinctive advantage whether it is UF, MF, RO or MBR,” Kammourie said.

Besides Jeddah, Suido Kiko Middle East has its plants in Qatif and Ras Tanura while it is also working on projects in Najran and Taif. It is running a plant in the Asab oil field in Abu Dhabi as well.

The transfer of Japanese technology to Saudi Arabia is coordinated by Japan Water Desk, the Jeddah branch of Japan Water Cooperation Center for the Middle East (JCCME), a non-profit organization of Japan’s Ministry of Economy, Trade and Industry.

According to Kyoji Nakano, representative of Japan Water Desk, his organization assists Japanese companies in transferring their technologies to the Kingdom and encouraging Japanese companies to invest in the Kingdom in the field of desalination, wastewater treatment, recycle of treated water and other fields of business.

News Link: Arab News

Investors eyeing Q4 results of listed firms
Posted by Arab News
Abdul Jalil Mustafa | Arab News
Saturday 2 January 2010


JEDDAH/AMMAN: Saudi shares came under selling pressures last week amid expectations of retreating profits, particularly for the banking sector.

The Tadawul All-Share Index (TASI) shed nearly 2 percent last week, closing at 6,121.76 points, which represented a 27.5 percent rise since the beginning of 2009, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

The retreat was aggravated by statistics published last week by the Saudi Arabian Monetary Agency (SAMA), which predicted a 20 percent decline in banks' profits in November compared with those for October, the report said.

The BIG expected the Saudi market to be the scene for "narrow fluctuations" next week with investors eyeing the results of listed firms for the fourth quarter of 2009.

Last week, the Capital Market Authority (CMA) announced the final decisions of the Committee for the Settlement of Securities Disputes against investors. The CMA has imposed sanctions on five people for insider trading and stock price manipulation.

Jazan Development Co. was the top gainer last week as its shares surged over 3 percent to SR13.45. Shares in Mouwasat Medical Services Co. rose by 2.51 percent to SR61.25, National Agriculture Marketing Co. by 2.15 percent to SR42.80, Jarir Marketing Co. by 2.10 percent to SR133.75 and Fawaz Alhokair Co. by 1.65 percent to SR36.90.

The major losers last week were Al-Sagr Cooperation Co., down 15.08 percent, Anaam International Holding Group Co. (10.78 percent), Saudi Pharmaceutical Industr. & Medical Appliances Corp. (9.06 percent), Al-Rajhi Company for Cooperative Insurance (7.53 percent) and Allied Cooperative Insurance Group (7.30 percent).

Saudi Basic Industries Corp. (SABIC) shares dropped slightly to SR82.50 last week.

The value of Saudi traded shares increased to SR13.95 billion last week from SR12.57 billion in the previous week.

Arab stock markets are expected to focus attention early in the new year on the annual results of listed firms which are expected to start going out next week, financial analysts said Friday.

"Regional stocks are expected to move sideways in the coming period as investors are apparently concerned over the 2009 results," an Amman-based portfolio manager said.

"We believe that annual profits will represent the main moving factor for Arab markets in the coming couple of weeks," he said.

"However, developments on global markets, clues to world recovery and oil prices will continue to be key elements to reckon with," he added.

Jordanian shares were narrowly volatile last week with persistent lack of liquidity and weak foreign buying, analysts said.

The all-share price index of the Amman Stock Exchange closed week flat at 2,534 points, according to the ASE weekly report.

Kuwait's KSE all-share price index shed 0.7 percent last week, closing at 7,005 points.

The all-share index of the Dubai stock exchange went up by 2.6 percent last week to close at 1,804 points, while the Abu Dhabi bourse gained 2.8 percent to close week at 2,774 points.

The UAE stocks gained only 10 percent throughout 2009 retreating from a 50 percent rise in June. "It was the most volatile year in the country's stocks history," said Walid Khatib, head of trading at the Dubai-based Daman brokerage firm.

He expected UAE and other regional markets to be responsive to developments relating to the Dubai World debt rescheduling moves and other regional events in the coming weeks.

Egypt's AGX30 index, measuring performance of the market's 30 most active stocks, lost 2.7 percent last week to close at 6,209 points.

The GulfBase GCC Index fell 0.89 percent to 3,726.06 points last week. The value of GCC traded shares, however, surged by 10.57 percent to $5.79 billion and volume increased by 1.08 percent to 3.76 billion of shares.

News Link: Arab News

Egypt is largest and most authentic consumer society in Arab World

Posted by BI-ME eNewsletter
Source: BI-ME , Author: BI-ME staff

Posted: Wed December 30, 2009 11:26 am

EGYPT. With the sheer size of its population, Egypt has been recognised as the largest and a truly authentic consumer society in the Arab World, creating the kind of environment wherein competition thrives and consumers have a real choice.

The same competitive environment also serves as an ideal breeding ground for developing world-class brands, especially since the Egyptian market has thousands of brands that are only waiting to stand out, according to the brand expert BrandCentral.

Although it is already a highly self-sufficient economy, Egypt can further enhance its overall economic performance by helping local manufacturers and business organisations cultivate brand loyalty among the country's millions of consumers, which will help create powerful local brands that can compete internationally and reduce the Egyptians' reliance on international brands.

"Egypt has always been the focus of most industries as it is the largest, real consumer society in the Arabic speaking world. It is one of the oldest economies too.

The one thing that is still missing in Egypt is a culture of branding within the local business community. Brand loyalty is not yet well established in Egypt, which is why Egyptian consumers are loyal to very few local brands that enhance Egypt's image.

In reality, there are thousands of brands in the market that are waiting to shine," says Ibrahim Lahoud, Director of Strategy and Brand Communication, BrandCentral.

Egypt's consumer market is dependent largely on price or on various benefits being offered by certain products, which is, strictly speaking, not brand loyalty, BrandCentral explains.

In this system, clients can easily shift allegiance to a new brand if the competition offers a better price or a new product. Nonetheless, BrandCentral points out that it expects a gradual paradigm shift as Egyptian businesses are now increasingly appreciating the long-term, strategic value of branding.

"Based on our experience, there are several businesses that are pushing for reforms in their branding strategies. Somehow, the market is realising how important branding is, not just as a visual manifestation, but mostly as the expression of the business organisation's soul and philosophy, and as a powerful instrument to get closer to the consumer's heart," says Lahoud.

"BrandCentral's work with various local business organisations has achieved tremendously positive results. As a brand consultancy and design communication firm, our goal has always been to help local businesses create brands that are truly relevant, emotional, perennial and act as vehicles for values and attributes that their businesses stand for.

Furthermore, our clients appreciate the fact that we are an Arab company that identifies with and understands the Arab market. We are here because BrandCentral truly believes in the long-term potential of the Egyptian market," added Lahoud.

BrandCentral also pointed out that the value of branding becomes even more apparent in the aftermath of the global economic recession, as consumer spending trends now favour the more reliable, tested and proven brands that give greater value for money.

"Smart marketers know that in order to make money, they have to spend money. Where do they spend that money? The answer is branding.

If brands that are currently suffering from the depression had been thoroughly developed much earlier, they would have certainly enjoyed a huge competitive advantage during the economic squeeze.

The fact is that in bad times, nobody spends on trial and error; instead, we consumers spend on reliable, tested and proven brands. This illustrates why creating wonderful, memorable and visible brands must be a top priority for any business entity whether it is during a boom time or a downturn," concluded Lahoud.

News Link : BI-ME eNewsletter

Middle East IPO deal values in 2009 are one-sixth of 2008, says Ernst & Young

Source: BI-ME , Author: BI-ME staff

Posted: Tue December 29, 2009 1:56 pm

INTERNATIONAL. Reflecting the general state of the regional IPO market, the year-end IPO update by Ernst & Young states that total regional IPO deal values in all of 2009 came in at approximately one-sixth the value of all IPOs in 2008.

Middle Eastern markets raised US$2.06 billion from 15 IPOs until 25 November this year as compared to US$12.46 billion in all of 2008.

Fourth in the region dominated by the insurance sector
Of the four regional IPOs between October and November of 2009, three were Saudi Arabian insurance companies and one bank in Syria.

Syria’s Albaraka Bank was the biggest IPO raising US$37.23 million followed by Saudi Arabia’s Gulf General Cooperative Insurance Company (Al Khaleej Insurance) at US$21.3 million.

Al Alamiya Cooperative Insurance Company and Buruj Cooperative Insurance Company, both from Saudi Arabia, raised US$16 million and US$13.87 million, respectively.

According to Phil Gandier, Managing Partner, Transaction Advisory Services, Ernst & Young Middle East, “In 2009 IPO activity was concentrated in three countries; Qatar raised US$952.03 million, Saudi Arabia raised US$1.03 billion and Syria raised US$76.99 million in 2009.

There has been no IPO activity in any other country in the Middle East in 2009. It is difficult to foresee with any certainty when the IPO activity will pick up even though as many as 114 IPOs have been announced.”

Asia and South America drives growth
Globally, after stagnant markets in the first two quarters, IPO activity started to pick-up in the second half of 2009, principally driven by deals from Asia and South America.

These two regions have raised US$68.6 billion in listings so far in 2009 accounting for 72% of the total IPO value, according to the update.

The number of deals for the 11 months is dramatically down in 2009, with only 459 IPOs listing so far in 2009 (compared to 740 deals for the same time period in 2008).

However, from 1 January to 30 November 2009, the capital raised globally was US$94.9 billion, which is at parity with the amount raised in the 11 months of 2008 (US$94.6 billion).

Gregory K. Ericksen, Global Vice Chair Strategic Growth Markets for Ernst & Young says: “Emerging market activity has dominated IPO markets this year with Chinese companies the largest source of total funds raised globally.

Brazil’s stock market has seen a flurry of activity, notably in financial services. China and Brazil are clearly playing an integral role in leading the global economic recovery.”

Capital shifts accentuated by the recession
IPO activity in North America declined in value by nearly 38%, from US$26.6 billion in the 11 months in 2008 to US$16.6 billion with 66 IPO listed so far this year. European IPOs only accounted for 10% of total IPO deals and a modest US$5.0 billion in value.

This compares with 22% of total value of IPO deals last year, with 160 IPOs raising US$13.6 billion. However, we did see some significant activity in the US in the second half of 2009 and finally in Europe in fourth quarter with some high profile listings received well by the market.
IPOs by sectors and stock exchanges

The leading sectors by number of deals were industrials (77 IPOs); materials (68); and high technology (55). The following three sectors (out of 12) accounted for 50% of total capital raised: financials (US$21.7 billion), industrials (US$16.1 billion) and real estate (US$9.5 billion).

The top three IPOs by capital raised were Banco Santander Brazil SA, the largest IPO this year and the largest in Brazilian history, which raised US$7.5 billion, China State Construction Engineering Corp, which listed in Shanghai in July at US$7.3billion, Metallurgical Corp of China (US$5.2 billion on the Shanghai and Hong Kong stock exchanges). Of the top 10 IPOs, six are from emerging markets.

By funds raised, the top three exchanges for the year to date are the Hong Kong Stock Exchange, which accounted for 18.7% of capital raised (US$17.7 billion); New York Stock Exchange 17.9% (US$16.9 billion) and Shanghai Stock exchange for 17.0% (US$16.1 billion).

The top three exchanges by deal activity are the Shenzhen stock exchange (73 IPOs); Hong Kong Stock Exchange (47) and KOSDAQ stock exchange (46).

Ericksen concludes, “Dynamic companies from emerging markets continue to list on their local stock exchanges. The principal exchanges in China, India, Brazil and other emerging markets are now mature enough to source funding for the very largest companies seeking listings.”

News Link: The BI-ME eNewsletter

Saudi Arabia market for U.S. wheat
Posted by Western Farm Press
Dec 29, 2009 9:23 AM

U.S. Wheat Associates (USW) recently conducted a seminar in Riyadh, Saudi Arabia, to introduce U.S. wheat and the U.S. marketing system to the Saudi Arabian wheat buying organization, Grain Silos and Flour Mills Organization (GSFMO).

Conducted in cooperation with local USDA/Foreign Agricultural Service and State Department officials, the seminar was the first ever held exclusively with this new international wheat buyer, and was designed to build confidence in U.S. wheat crop quality, handling, and commercial reliability.

The Kingdom of Saudi Arabia has decided to end domestic wheat production by 2016 and may eventually need to import more than 2.5 million metric tons (91 million bushels) of wheat per year.

“Competition for this market is intense,” said Dick Prior, USW regional vice president, Cairo, Egypt.

“The Canadian Wheat Board monopoly is allowing select traders to offer comparable quality Canadian wheat at delivered prices well below what our exporters can offer so establishing the value of U.S. wheat with GSFMO is critical,” Prior said.

“As of Dec. 17, Saudi Arabia had purchased almost 60,000 metric tons (2.2 million bushels) of U.S. hard red winter wheat in marketing year 2009/10 (June-May).

Prior said the seminar was a full year in planning. With perseverance from the USW Cairo staff and strong personal support from GSFMO Director General Waleed Khureiji and U.S. Ambassador to Saudi Arabia James Smith, about 20 GSFMO staff and Saudi authorities met at the GSFMO offices in Riyadh in late November.

USW is the industry’s market development organization working in more than 100 countries on behalf of America's wheat producers. The activities of USW are made possible by producer check-off dollars managed by 19 state wheat commissions and through cost-share funding provided by USDA’s Foreign Agricultural Service.

For more information, visit www.uswheat.org

News Link: Western Farm Press

Egyptian agriculture: Incentives, obstacles

tfrasheed@goldengrass.com
http://www.saudiinfocus.com
Egypt has an abundance of fertile agricultural lands and plenty of irrigation waters (Nile River, streams, rain waters and underground waters). The weather is favorable for the natural growth of various plants and different kinds of agricultural products (farm and horticulture).

However, the dependence on manual cultivation and the failure of the government and private agricultural projects reveal some fundamental flaws and problems:

• Nonuse of pivotal sprays and nonexploitation of underground waters for irrigation of plants in case of shortage of rainfall and during dry season.

• Absence of full mechanization in cultivation, fertilization, insecticides, harvesting, peeling, cleaning and packing

• Lack of a plan for improvement of seeds and nonintroduction of improved varieties of seeds.

There are also pessimistic forecasts. A report issued by the US Agriculture Department revealed that Egypt will have a problem importing wheat in 2016, when Saudi Arabia will finally stop wheat cultivation and rely on imports for its wheat requirements.

In the meantime, an Egyptian government report says that “water security” is under threat due to the increase in population.

The 55.5 billion cubic meter quota for Egypt from Nile waters in addition to the implemented water projects at a cost of 35 billion pounds in the past years will not prevent shortage of irrigation water by 2030 if the increase in population continues at the current rate.

One of the best solutions will be to establish a large stock agricultural company owned by Saudi and Egyptian investors. This will not take place unless the existing ownership law is amended. According to this law, the government sells one acre for 50 Egyptian pounds on the condition that the investor builds huge projects and employs thousands of people. This will create many direct employment opportunities for farmers as well as qualified and experienced graduates of agriculture colleges, particularly those returning from Saudi Arabia.

The investment in large agricultural projects will also boost the Egyptian economy. It will create new sources of income while the improvement in living standards will revive the populated areas near the agricultural projects and encourage service suppliers to enter these areas. This will facilitate the centralization of government services.

The settlement of a large number of people near the agricultural projects will curb the influx of migrants into big cities. The financial returns of these projects will surely lessen the impact of any economic crisis.

It is well known that introduction of agricultural mechanization will mean abundant production exceeding the local needs and providing surplus for export. This will lessen pressure on foreign currency.

Egypt is in need of huge companies for the best exploitation of available agricultural lands. But unfortunately neither Egyptian citizens nor foreign investors have shown any enthusiasm toward the government initiative while the government itself has not made any promise to carry out huge projects in these areas.

In fact, the currently invested area represents only a small portion of the total fertile lands. In the meantime, there is food shortage and urgent need for wheat — the product Egypt imports in large quantities. This constitutes a burden on the foreign currency reserves. In addition to all these facts, the imported wheat is of inferior quality and — in some cases — not good for human consumption.

It is quite clear that given the availability of vast fertile agricultural lands, there is no justification for the continuous import of wheat and the pressure on foreign currency reserves. Therefore, it is necessary to make the best use of the qualified Egyptian cadres and resources in huge agricultural projects.

All obstacles to investment and land ownership should be removed if Egypt is to develop its agriculture. This task should not be assigned to the committees whose practices in the past have only discouraged local and international investors.

What happened to the Egyptian agriculture graduates’ agricultural lands is one of the tragedies attributed to these committees. These graduates were given barren lands at cheap prices. But once they reclaimed the lands by spending so much money on it, the committees asked them to pay new prices for the lands as if they were selling them reclaimed lands. The result is that the committees killed the graduates’ project and frightened the investors. This discouraged agricultural investments in Egypt.

— Turki Faisal Al Rasheed is a Saudi writer.

http://www.arabnews.com/?page=7&section=0&article=117515&d=25&m=12&y=2008

What ails Sudan’s agricultural sector

Turki Faisal Al-Rasheed Arab News

Saudi Arabia is in a better position to forge politico-economic partnerships with other countries with a view to achieving food security. The best partner in this respect is Sudan, known as the food basket of the Arab world. But foreigners are reluctant to invest in Sudan and the efforts made by the Sudanese government to overcome this reluctance have not met with much success. Under the deteriorating global situation, Arab countries that have agricultural potential, notably Sudan, have to bring in modern technologies and look for the best of encouraging agricultural investment and offering incentives to achieve this aim.

Why not? Sudan is blessed with fertile agricultural lands (more than 200 million acres). Only 20 percent of these lands are being utilized. Abundant irrigation facilities are also available (river waters including that of the Nile, rain waters and underground water). Furthermore, Sudan has a variety of weather (from 30 to 48 degrees centigrade), ranging from desert, and Mediterranean, savanna and Equatorial weather. There are different kinds of plantations and favorable environment for natural growth of various plants and agricultural products (farm and horticulture).

There are ample natural pastures and animal wealth while rainfall allows the growth of forests and woods. But despite the availability of suitable environment for growing various seeds, there are problems such as:

• Insufficient care given to seeds;

• No use of sprays and no exploitation of underground water for irrigation of plants in case of shortage of rainfall and during dry seasons.

• Lack of full mechanization in cultivation, harvesting, peeling, cleaning and packing; fertilizers and insecticides are applied in old ways.

• Lack of a plan for improving seeds and not using improved varieties of seeds.
• Sudan’s domestic problems have been internationalized, giving the impression of political instability in the country. This discourages investors.

• There is no clear ownership policy. The land ownership system is based on land lease, that is the right of benefiting from the land for a specific number of years. Therefore there is no incentive to attract huge projects.

• The agricultural lands lie adjacent to the oil excavation areas and it is quite possible that the government may suddenly discover that the land given to an investor is located over an oil well and may confiscate it and give the investor another land. This means wasting the efforts, time and money of the investors.

• Sudan is a country of shantytowns and people are settling in areas the government wants to award to investors. This means the investors will have to pay money for resettling the people living near the lands awarded to them.

• The investors are also obliged to provide water to these people from the wells drilled by them for agricultural projects.

• The proposed areas for investment lack the necessary infrastructural facilities, and this increases the investment costs, especially in transportation and energy.
• There are any number of administrative fees, especially in the states. This is apart from those imposed by the central government. Consequently, the investors are confused as to whom they should deal with.

To sum up:

Sudan is in need of huge companies to invest in the agricultural lands in an ideal way. As noted above, lands suitable for agriculture are more than 200 million acres with less than 20 percent under use.

In the past, Sudan used to export large quantities of peanuts and it has quit the overseas markets due to the above-mentioned factors.

Sudan imports two million tons of wheat, its staple food, annually. This can’t be justified when 160 million acres are available for cultivation.

The virgin land becomes barren when left uncultivated.

Huge agricultural investments will go a long way toward reducing unrest in Sudan. Investments in huge agricultural projects boost national income, reduce import bill (for agricultural products), provide a healthy, safe and permanent source of food, preserve the honor of the state and its people and protect the country against foreign intervention and economic pressures. All this means that senior Sudanese officials in charge of regulating agricultural investment system must reconsider the existing policies by eliminating their negative aspects and adding more incentives to attract national and foreign investors. The policies should be in accordance with the interests and ambitions of investors. Sudan should not allow a situation to continue where the virgin and fertile lands become barren while the government has to depend on imports to feed its hungry people.

— Turki Faisal Al-Rasheed is a Saudi writer.

Eradicating poverty: Role of agriculture

Turki Faisal Al-Rasheed Arab News

Poverty is a global phenomenon. In Scandinavian countries two percent of the population live below poverty line. In some African countries this is as high as 35 percent. Throughout the world more than 35,000 people die of poverty a day.

As for Saudi Arabia, King Abdullah’s visit to a number of poor districts of the Riyadh city in Ramadan 1423 represented an official recognition for the first time of the existence of poverty in the Kingdom. That tour had a positive outcome as it led to the establishment of a charitable fund to help the poor. It also gave rise to an anti-poverty strategy. Before that, there was hardly any talk of poverty in this country.

The relevant World Bank studies stress that agriculture is the key to developing rural areas and eradicating poverty. In fact, the development of rural areas is the best means to achieve a fair distribution of income among the people of the Kingdom. It is proved that agriculture has more effect on anti-poverty strategy than any other activity because it provides basic food to the people. Development of rural areas and small villages is vital as it creates more employment opportunities and thereby curbs exodus of people to the big cities and towns in search of jobs.

After practical experience extending to three decades in the field of agriculture, this writer joined a doctorate program to prepare a research on the role of agriculture in fighting poverty, developing rural areas and maintaining security in the Kingdom.

This was due to a firm conviction that agricultural reform and rural development encourage sustainable development. This ensures food security, eliminates acute poverty and hunger, helps spread primary education, boosts equality and social justice.

The government has to assume responsibility for agricultural reform as well as other efforts that assist in eradicating poverty in rural areas and contribute to preservation of lands, water and other natural resources for the sake of securing the needs of ordinary people such as owners of cattle, herdsmen and nomad population. These efforts may also result in preventing or discouraging migration from rural areas to towns and cities that has an adverse impact on security. Some 75 percent of the Kingdom’s population lives in towns and cities. So the influx of people from rural areas puts too much pressure on services in the cities and an increase in the rate of crime.

So we must start with a sound agricultural strategy taking into consideration the relative advantage of achieving sustainable agricultural development depending on renewable water resources. Farmers’ efforts must be directed to remote areas that cry for development.
It may be pertinent to mention here that in some studies conducted on wheat, scientists have discovered that genetically modified (GMO) wheat consumes 30 percent of the water needed by nongenetically modified wheat while producing the same or more quantity.

The government now extends subsidies for soybeans, Guinea corns, maize, corn and barley, but the subsidy must be limited to breeders of cattle, camels, sheep and cows, particularly those who live in rural areas. It is also a must to reach the poor rural areas. The areas which are badly in need of development housing are eight in number, namely Makkah which includes 12 locations belonging to Al-Qunfudah, Al-Laith, Khulais, Al-Jamoum and Al-Kamel provinces, Madinah with five locations in Yanbu and Tabuk which has six locations belonging to Umluj, Al-Wajh, Dhubaa, Al-Bidaa and Haql provinces. There are three locations in each of Al-Baha, Asir and Jizan.

In the Eastern region, there are four locations in Al-Ahsa and Al-Qateef considered as among the most in need of development housing, while in Qassim region, there are six locations. In addition there are shantytowns in the Northern borders, Hail and Al-Jouf.

In this context, the findings of a Saudi are instructive. According to this study, the working children in the Kingdom amounts to 1.54 percent of the total number of children. The Eastern region accounts for highest number of working children (2.3 percent), followed by Makkah, Madinah, Asir and Riyadh. The study found that there are two types of working children. In the first category are children who work in the farms of their families and are unpaid. The other group includes children who work so they can contribute to the their families income.

For the development programs to be successful, we must design programs suited for each region. Regions have separate needs and resources. International organizations such as FAO may help in achieving these objectives.

— Turki Faisal Al-Rasheed is a Saudi Writer.
He can be contacted at: tfrasheed@goldengrass.com

Bahrain to buy 'farms' in Saudi

THE Municipalities and Agriculture Ministry, in co-operation with the private sector, plans to buy about 300 million sqm of agricultural land in eastern parts of Saudi Arabia.

These will be rented out to Bahraini farmers on easy terms on condition they plant what the ministry wants, a report says.

The ministry will buy produce from them and sell it in the Bahraini market. Sources in the private sector said the deal may cost more than BD300 million and the ministry would provide water, electricity and seeds. They said the plan would help achieve food security for Bahrain in the long run.

The lands are not far from Bahrain and will provide at least 1,000 jobs for Bahrainis, it said.

http://www.gulf-daily-news.com/Story.asp?Article=207810&Sn=BNEW&IssueID=30322

We are told that your government provided $2.5 million to this training program in 2005 and 2006, which the US House of Representatives seeks to block in future. While the ban on such aid would not have even the slightest impact on a rich country like Saudi Arabia, what bothers me is the argument advanced in justifying such a ban

Saudi Businessman Blasts US Double Standard
Javid Hassan, Arab News

RIYADH, 8 July 2007 — Blasting the United States for its double standard in the Middle East policy, a Saudi businessman has said that while the country has a department of public diplomacy to try to undo the damage done to its image as a result of its wars in Afghanistan and Iraq, it persists in its pro-Israeli tilt along with a hostile attitude toward Muslims.

This is one of the points raised by Turki Faisal Al-Rasheed, chairman of Riyadh-based Golden Grass Inc., an agricultural company, in a letter sent to all US congressmen. A copy of the letter was also received by Arab News.

Al-Rasheed, who also runs two websites, wrote to the congressmen in the context of the recent House of Representatives vote prohibiting any aid to Saudi Arabia. The legislation calls for a blockage of any further financial assistance extended by the US government.

His letter to the congressmen comes at a time when US Undersecretary for Public Diplomacy Karen Hughes invited 24 women from Harvard University in the United States and Jeddah-based Dar Al-Hekma College who met in Jordan recently to take part in a “Habitat for Humanity” building project.

The joint effort, called the “Hekma-Harvard Women Build”, provided an opportunity for women from both cultures not only to help build two homes in the community of Ghor Al-Safi, but also to exchange ideas and experiences through this unique international project.

The two groups were linked initially through a teleconference by Hughes who visited Dar Al-Hekma College in 2005. Eager to find a way to link women in Saudi Arabia with their counterparts in the US, Hughes’ office contacted Harvard University, where the idea for the joint build was circulated to students at the John F. Kennedy School of Government. Habitat for Humanity became involved when Hughes’ office contacted Habitat for Humanity International in Washington, DC.

Such an initiative to enhance its public image in the Middle East, it is pointed out, is nullified by its blatantly pro-Israeli Middle East policy and its continued moves toward pre-emptive strikes against states deemed hostile to US interests. Iraq was one of the victims of such invasion waged on a false pretext.

In his letter, Al-Rasheed said: “We are told that your government provided $2.5 million to this training program in 2005 and 2006, which the US House of Representatives seeks to block in future. While the ban on such aid would not have even the slightest impact on a rich country like Saudi Arabia, what bothers me is the argument advanced in justifying such a ban.”

The letter has provoked strong comments, both for and against, from the congressmen.

Al-Rasheed said that “when we talk of religious intolerance, the US, unfortunately, projects a poor image of a country that has become increasingly intolerant of Islam and symbols identified with this faith.”

In this context, he quotes the Council on American-Islamic Relations (CAIR) “which has documented numerous cases of Muslims being harassed in the US, mosques damaged, women in veil being humiliated, and others discriminated against in schools and offices on grounds of their religious belief. No one ever hears of any gentleman wearing a skull cap being the subject of individual or media attention.”

Referring to the charge of religious intolerance, he said congressmen have to remember that Saudi Arabia is the home of the Islamic world’s two holiest mosques.

“Its position is similar to that of the Vatican, which is the seat of the Catholic world. I do not think that nuns in Rome or anywhere else in the world, including Muslim countries, would ever invite hostile attention for moving about with their faces covered. After all, such an appendage is part of their faith, which they must practice.”

http://www.arabnews.com/?page=4&section=0&article=93300&d=8&m=7&y=2007