Middle East M&A 2009 volume drops 39%, value rises 13%
Posted by BusinessIntelligence Middle East
Source: BI-ME , Author: BI-ME staff
Posted: Wed January 20, 2010 11:49 am


INTERNATIONAL. There has been a slight increase in annual deal value of Middle East M&A despite a decline in volume, according to the latest mergermarket Middle Eastern M&A Round‑up.

After a quiet kick-off in 2009, M&A activity picked up sharply in the second half of the year, with an overall value of US$17.9 billion, 13% higher than in 2008.

Despite a strong finish in the last quarter of 2009 with 40 deals, a 100% increase on the 20 deals recorded in first quarter, the overall count for the year was down to 107 announced deals from 176 in 2008, a drop of 39%.

Foreign M&A investment reached its lowest point since 2005, with outbound M&A activity valued at US$17.3 billion on 57 transactions, down 57% compared to 2008.

Inbound activity followed the same downward trend, with 35 announced deals, down from 64 in 2008, a decline of 45%. At US$2.7 billion, deal values were also in sharp decline, 60% compared to 2008.

Morgan Stanley and Shearman & Sterling top league tables

Morgan Stanley, ranked 12th by both value and volume in 2008, topped the 2009 rankings having advised on nine deals with a total value of US$10 billion.

The US firm was well ahead of Deutsche Bank (US$6.6 billion) and Bank of America Merrill Lynch (US$5.8 billion). UBS, the most active firm in 2008 in the region, fell to sixth in the volume rankings.

Shearman & Sterling topped the legal advisory tables, by both value and volume, with ten transactions valued at US$14.3 billion, including five of the top 10 deals for 2009.

The New York based firm had ranked third by both value and volume in 2008. Allen & Overy, its UK based competitor which held top spot in 2008, ranked fourth by value and second in the volume table.

Outlook for 2010

The global economic turmoil in 2009 did not escape the Middle East region. RBS added the UAE and Bahrain to a group of developing economies considered most at risk of a debt crisis - especially after the announcement of the US$22 billion debt by state-owned conglomerate Dubai World.

However, the situation in the region is expected to stabilize after the US$25 billion financial support provided by the Abu Dhabi government, the UAE central bank and two Abu-Dhabi based banks.

The public markets were the venue for many of the Gulf region’s most significant announced transactions in 2009 – including the acquisition of a 50% stake in Iran Telecom for US$7.8 billion.

But many deals have been slow to come to fruition. Barwa’s merger with QREIC was revealed in mid-January 2009, but it was not until January 2010 that the initial terms of the deal were announced.

Some transactions have also lapsed over time. The acquisition of Dragon Oil for US$1.1billion was cancelled last December, while the biggest expected deal in 2009, the proposed sale of a 46% stake in Kuwait-listed telecom Zain for a record US$13.7 billion, has faltered as the consortium of sellers appear to have jumped the gun and announced the transaction before the details had been finalised.

These lapsed transactions represent a good prospective M&A stream for the Middle East. Indeed, the targets are still on the market and will attract the interest of potential bidders in the coming year.


News Link: http://www.bi-me.com/main.php?id=43590&t=1&c=34&cg=4&mset=1011

UK firms warned 'worst still to come'
Posted by BusinessIntelligence Middle East
Source: BI-ME and UKPA , Author: BI-ME staff
Posted: Mon January 18, 2010 9:52 pm


INTERNATIONAL. More than 140,000 UK companies fell into financial trouble in the final three months of 2009 as experts have warned the worst is yet to come for recession-hit firms.

The latest "Red Flag Alert" report from insolvency firm Begbies Traynor showed a 6% hike in the number of firms that experienced financial distress between the third and fourth quarters of last year.

In an encouraging sign, the number of companies with either significant or critical problems in the fourth quarter fell 14% on a year earlier, marking the report's first year-on-year decline since the recession began.

But Begbies cautioned of a significant relapse in the third quarter of 2010 as companies face the most "dangerous phase" of a recession - the recovery.

The withdrawal of Government support measures, coupled with a lack of preparation and finance for the upswing in business will hit firms, according to the group.

Ric Traynor, executive chairman of Begbies Traynor, said: "Experience of the last four recessions tells us that unemployment levels and corporate and personal insolvencies have lagged behind technical recession by one to two years.

"With tax and interest rates certain to rise, as well as increasing pressure on consumer spending, there is every reason to suggest that the insolvency peaks of this recession remain some way off."

The group's report also found evidence that firms were failing faster than in previous recessions, with firms more willing to wave the white flag and companies also seeing a steeper collapse.

Monday's findings revealed that the British Government's soon-to-end car scrappage scheme failed to prevent a 26% surge in car firms falling into "critical" financial condition quarter-on-quarter, with the number also up by a fifth on 2008, according to the study.

However, there was a marked improvement in the battered retail sector after the peak of its woes in 2008, when high profile names such as Woolworths and Zavvi went bust.



News Link: http://www.bi-me.com/main.php?id=43532&t=1&c=35&cg=4&mset=1011

Global recovery seems stronger but still fragile, says IMF
Posted by BusinessIntelligence Middle East
Source: BI-ME and IMF , Author: BI-ME staff
Posted: Sun January 17, 2010

INTERNATIONAL. The global economy is recovering significantly faster than previously expected, but growth is still dependent in most advanced economies on government stimulus measures and remains fragile, the Managing Director of the International Monetary Fund, Dominique Strauss-Kahn, said.

While emerging market economies—especially in Asia—were leading the recovery, most advanced economies were still sluggish, with private demand weak and joblessness continuing to rise, he told reporters.

“We are not out of the woods until the private sector has recovered,” Strauss-Kahn said at a January 14 news conference in Washington that he started by conveying deep sympathies to the people of Haiti following the severe earthquake. The Managing Director announced the Fund would provide $100 million to Haiti very rapidly in emergency help and would coordinate with other agencies to come up with a larger assistance package in due course.

Multi-speed recovery

On the global economy, Strauss-Kahn said he expected to see countries around the world recovering at different speeds in the various regions. He urged governments not to relax stimulus measures too early in the mistaken belief that a strong recovery had taken hold, and suggested that they could shift stimulus measures toward projects that would create additional jobs.

The IMF is scheduled to release its update on the global outlook on January 26.

Breaking down what had happened during the past two years of crisis and looking ahead to 2010, he said this year must be a year of transformation, to complete the reshaping of the global financial and regulatory system.

• 2008 was a year of humility: “our confidence in markets, institutions, and the status quo turned out to be complacency; we learned how fallible, fragile, and interconnected we are.”

• 2009 was a year of unity: “the world pulled together to respond to a profound economic—and potentially human—calamity, and redeemed the promise of international cooperation.”

• 2010 must be a year of transformation—“we must complete the global project to address the failings in regulation, economic policy, and governance that lay behind the crisis.”

Regulation and financial sector supervision needed to be not just stronger but smarter. The aim was not to impose additional layers of regulation.

There was a risk, he said that momentum for reforming the financial sector could be lost and policymakers should not forget the roots of the crisis. He welcomed a proposal by U.S. President Barack Obama that major U.S. financial firms pay a fee to help the government recover losses from the financial crisis, saying this showed that the world’s biggest economy was prepared to follow up although the crisis was receding.

At the request of the Group of Twenty (G-20) industrialized and emerging market economies, the IMF is scheduled to provide an assessment by April of options for how governments can get the financial sector to contribute to the costs of the crisis. Strauss-Kahn said society must move away from a system where banks can “privatize gains but socialize losses.”

The IMF’s priorities

Strauss-Kahn outlined four priorities for the Fund in 2010, and also said the institution was looking into proposals for how to finance climate change measures. “We will provide ideas in the near future,” he said.

In the coming year, the IMF would focus on delivering the economic regeneration that will drive growth in this new decade. The four priorities comprised:

• A sustainable recovery of output and employment must be the highest priority. The Fund will provide the kind of real-time analysis needed to see this project through, guarding against too early—or too late—reversal of stimulus measures.

• The IMF will continue efforts to provide the kind of financing needed to tackle modern crises and try to improve its toolkit of financing packages to help member countries to keep recovery programs on track.

• The IMF will try to keep the spotlight on the need to modernize financial sector regulation and put in place mechanisms to identify and tackle the hidden risks to country economies. The upcoming reform of the Fund’s mandate is a historic opportunity to do the same at the global level, with more focus on systemic—not just country—level risks, especially in the financial sector, and financing facilities that provide the kind of insurance needed to avoid excessive and costly reserve accumulation.

• The IMF will continue to improve its governance structure, with the Managing Director saying that the Fund would meet an end-year deadline to deliver a fair redistribution of Fund quotas, and to pursue other governance reforms.

Adjustments in the Fund’s mandate were needed to take account of modern-day crises that were far broader than traditional balance of payments crises, and to broaden its scope to take into account the need to ensure that any financial instability does not spillover into social tensions and become a danger to world peace.

Asia Conference in Korea

The Managing Director, who is visiting Tokyo and Hong Kong January 19-21, also announced that Korea and the IMF are planning to jointly host a high-level international conference on Asia in Seoul during July 12-13, 2010.

The conference will bring together leading policymakers from Asia and around the world to examine the region’s economic dynamism and evolving role in international policymaking. It will also provide the IMF an important opportunity to deepen its engagement with Asia.

News Link: http://www.bi-me.com/main.php?id=43488&t=1&c=35&cg=4&mset=1011

UK 'faces decade of economic pain,' says Ernst & Young ITEM Club report
Posted by BusinessIntelligence Middle East
Source: BI-ME and UKPA , Author: BI-ME staff
Posted: Sun January 17, 2010 10:41 pm


INTERNATIONAL. A leading economic forecaster is set to warn that the UK faces a decade of pain after a massive debt binge, it has emerged.

The Ernst & Young ITEM Club report, which bases its forecasts on official Treasury models, predicts that growth will struggle to reach 1% in a "challenging year".

Chief economic adviser Peter Spencer said: "We are no longer in a position to borrow - the massive debts that we racked up in the last decade now need to be repaid."

Official figures due later this month should confirm a pull out of recession in the final three months of 2009 but ITEM put this down to emergency measures such as the 'cash-for-bangers' scrappage scheme.

"Once the effects of these temporary stimuli have worn off, it is difficult to see where the growth is going to come from in the short-term," Mr Spencer added.

ITEM said the country had to boost exports over the long-term to avoid the risk of economic stagnation.

"It is vital the UK rejuvenates its overseas investment model and starts selling into countries such as China, where we have an exceptionally low market share compared to our leading competitors."

Interest rates have been at a record low of 0.5% since March last year and the forecaster expects them to remain at this level until "well into 2010".

ITEM added that it "remained concerned" over the UK's dire public finances, with net borrowing set to soar to a record £178 billion this year due to the impact of recession.

The forecaster said official forecasts were based on "very optimistic" assumptions for tax revenues and growth, while the Chancellor had also failed to set out "credible" plans for fiscal consolidation.

News Link: http://www.bi-me.com/main.php?id=43499&t=1&c=35&cg=4&mset=1011

Al-Mal investments bids for US$1.2 billion Philippines airport project
Posted by BusinessIntelligence Middle East
Source: BI-ME , Author: BI-ME staff
Posted: Sun January 17, 2010 2:52 pm


KUWAIT. Kuwait's Al-Mal Investment Co, said it has bid for a tender to develop an airport in the Philippines, valued at about US$1.2 billion.

"The firm notifies that it has bid for a tender to develop Clark airport with a cost close to US$1.2 billion," Al-Mal said in a statement on the Kuwaiti bourse website on Sunday.

Al-Mal has offered to develop three passenger terminals at the Diosdado Macapagal International Airport (DMIA) according to local Philippines media reports.

Al-Mal has committed to develop DMIA Terminal 2 at a total investment of US$100 million representing Phase I of the terminal I to be finished in two years. The terminal I will have a total floor area of 35,000 square meters and seven million passengers capacity per year, The Manilla Bulletin reported, citing Nestor Mangio, chairman of the Clark Airport International Corp. (CIAPC) which operates the DMIA.

Under the offer, Al-Mal will form a Joint Venture Company with CIAC on a 70/30 sharing in which CIAC to get 30% of the joint venture for contributing the leasehold rights over the land site. CIAC will not contribute cash or issue a government guarantee, according to the Manilla Bulletin.

Under the proposed airport development, DMIA runways will be further improved to accommodate bigger aircraft, hotels and commercial buildings as well as other aviation facilities will be constructed.

Al-Mal, which is controlled by the family-owned conglomerate Kharafi Group, said it was still in negotiations with the concerned authorities in the Philippines.


News Link: http://www.bi-me.com/main.php?id=43485&t=1&c=34&cg=4&mset=1011

Mövenpick boosts Saudi presence.
Posted by 4Hoteliers.com
Monday, 18th January 2010
Source : Mövenpick Hotels & Resorts

The Swiss hotel group announces the opening of its newest property in Saudi Arabia Mövenpick Hotel & Residence Hajar Tower Makkah.

A part of the prestigious Abraj Al Bait complex the Mövenpick Hotel & Residence Hajar Tower Makkah is superbly located directly on the Haram Court facing the King Abdul Aziz Gate.

Set on 41 floors, the hotel's 1204 spacious rooms and apartments are a showcase of quality accommodation. The Italian style interior design combined with the integration of modern technology together with a state-of-the-art business centre will appeal to pilgrims and business travellers.

With its ability to cater to large numbers the hotel boasts five versatile dining options. The Al Naseem is the hotel’s main dining restaurant offering a wide selection of international and local dining options while the spacious Al Firdaous restaurant seating 500 guests is ideal for large groups at any time of the day. Operating during the high season Hajar Restaurant is also an all day dining option serving up Arabic and international favourites such as grills, salads and seafood.

Strategically located in the lobby of the hotel the Al Diwan Tea Lounge is the best spot to enjoy a selection of teas and freshly brewed coffee as well as light snacks. Subtly placed seating for 200 guests and easy access make this the place to relax and watch the world go by. The Al Naim Lounge is the hotel’s second lounge and offers all day snacks and Mövenpick ice cream.

The tower’s first six floors comprise a commercial complex hosting 600 boutique stores offering the most renowned international and local designer brands.

“The holy city of Makkah is the most important destination for Muslims around the world and with over 4.5 million visitors during the Hajj and Umrah season we are confident that this new hotel will be a welcome addition to the city” said Omar Boujlid general manager Mövenpick Hotel & Residence Hajar Tower Makkah.


News Link: http://www.4hoteliers.com/4hots_nshw.php?mwi=6845

Minister: No need for more farming areas
Posted by Saudi Gazette
By Abdul Latif Al-Wuhaimid
Sunday, 17 January 2010


AL-AHSA – There was no need for more land to be set aside for farming because the Kingdom currently uses only one million of an estimated four million hectares available, said Dr. Fahd Bin Abdul Rahman Balghunaim, the Minister of Agriculture.

He added that it was also necessary to place a halt on land being used for agriculture, because of a lack of water.

“We are facing a water crisis which requires conformity to government’s programs, plans and projects,” he said.

Balghunaim said the state has managed to achieve agricultural sustainability in Al-Ahsa by carrying out a number of important projects. This includes the project for converting the irrigation system to a closed pipe system, building plants for treating water, and setting up programs for the purchase of dates, among other guidance programs.

The minister praised farmers in Al-Ahsa on Saturday, who have been honored for their work. He said their initiatives were in line with the ministry’s plans, programs and projects.

The priority of the ministry is to continue developing the agricultural sector, safeguard water resources and to lay down programs and policies that would achieve the ideal exploitation of available resources, he said. – Okaz/SG


News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010011760429

Middle East stocks end week mixed, UAE leads losses
Posted by BusinessIntelligence Middle East
Source: BI-ME and dpa , Author: BI-ME staff
Posted: Sat January 16, 2010 9:03 pm


INTERNATIONAL. Arab stock markets put in a mixed performance this week as investors awaited the disclosure of more annual corporate results, financial analysts said Friday.

Gulf stock exchanges retreated, partly as a result of a decline in oil prices, they said.

'I believe Arab stocks are coming under pressure from investors' negative perception of annual results and falling oil prices,' an Amman-based portfolio manager told the German Press Agency dpa.

'We think that regional markets will continue in the coming weeks to suffer from the psychological impact of developments at global bourses and predictions of the world recovery,' he said.

Saudi shares were volatile, reflecting investors' expectations of annual profits and global upturn reports. The Saudi stock exchange's Tadawul All Share Index (TASI) closed week almost unchanged at 6,262.83 points.

TASI is currently 2.3% higher than the start of the year, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

'We expect TASI to maintain its stability during next week as investors await the financial results of blue chips, particularly SABIC and Al Rajhi,' the report said.

Jordanian shares also fluctuated within a narrow range as a result of profit-taking. The Amman Stock Exchange gained 1.3% to end the week at 2,598, according to the ASE weekly report.

The market received support from blue chips, particularly the Jordan Petroleum Refinery, the Jordan Phosphates Mining Co. and the Arab Potash Co.

Kuwait's KSE all-share price index shed 0.4%, closing at 6,986 compared with last week's close at 7,012.

United Arab Emirates shares were the week's main losers, reportedly due to a sell-off on the part of foreign investors who were apparently concerned over the outcome of talks for rescheduling Dubai World debt, analysts said.

The benchmarks of the Dubai and Abu Dhabi stock exchanges plunged 7.1% and 2.5%, to close respectively at 1,707 and 2,707.

Qatar's DSM measure gained 0.3% on Thursday to 6,854.59 points.

Egypt's AGX30 index, measuring the performance of the market's 30 most active stocks, gained 3.8% during the week to close at 6,681.

The Beirut Stock Exchange (LSE) closed Friday at 1,585.02 points, up 0.54% on the day.


News Link: http://www.bi-me.com/main.php?id=43454&t=1&c=34&cg=4&mset=1011

Dubai 2010 budget attempts to balance growth with economic welfare




Posted by BusinessIntelligence Middle East
Source: BI-ME , Author: BI-ME staff
Posted: Sat January 16, 2010 2:53 pm


UAE. A Dubai Chamber of Commerce & Industry analysis of the Dubai Government's 2010 budget indicates that the budget attempts to balance growth with economic welfare and reflects the Emirate's determination to push ahead with fiscal spending amid a challenging 2009.

The Dubai government has approved the budget for 2010 in line with its commitment to pursue a progressive fiscal programme aimed at supporting all sectors of the economy facing challenges on the back of the global economic slowdown.

HE Eng Hamad Buamim, Director General, Dubai Chamber, maintained that in essence, the budget represents a balance between the necessity to support and stimulate economic activity on the one hand and commitment to sound financial rules and principles of public funds management on the other.

"This sound and prudent balance will send a strong message to the business community about the seriousness of the government to push ahead with a rational budget in 2010 and ensure that the economy is on a long-standing stable growth trajectory. The budget is more likely to boost investor confidence on the back of the Government's handling of the adverse situation and in providing a timely stimulus to the overall economy of the Emirate which is looking forward to a better trading year."


Key features of the budget for 2010 are the continuation to work in the development and completion of the emirate's infrastructure projects, fostering advancements in public and social services as well as improving overall security measures.

According to the budget, it is estimated that government revenues will reach Dhs29.4bn whilst government spending will reach Dhs35.4bn. This therefore represents a deficit of Dhs6bn (equivalent to 2% of GDP).

In terms of the operating budget, the government has suggested that it will operate a surplus on its current budget (revenue minus current expenditure) which will reach Dhs1.9bn in 2010 (though the government has not provided a breakdown of how it will accomplish this surplus). Achieving this surplus is one of the fruits of increasing efficiency of government spending without unbalancing the overall objectives of fiscal policy. It is only when investment expenditures are added onto current expenditures that the deficit is created. This can be, in fact, positive for the overall economy as these investment expenditures will in-turn stimulate key sectors going forward in the long-term.

Key Points of the 2010 Dubai Budget
• The estimated spending on the economic sector, infrastructure and transportation (which includes the RTA, Airport Foundation, Dubai Air Wing, municipality and tourism is Dhs17.45bn.
• The estimated allocation on the social sector and public services that includes health services, education, social development and Islamic affairs is Dhs8.10bn.
• The estimated expenditure to the security and justice sector that comprises police, nationality and residence, the courts and public prosecution is Dhs6.98bn.
• The estimated spending on support, transferring and government excellence sectors is Dhs2.80bn.
• The estimates allocation of government investment expenditure is Dhs10.7bn for the development of infrastructure projects in accordance with set plans.
Source: Dubai Chamber based on data from the Department of Finance

It is clear that the sectoral distribution of government spending reflects the balanced strategy of the Dubai government which focuses on achieving high rates of economic growth and upgrading the welfare of the community. It takes into account the need to continue developing the emirate's infrastructure, to support the emirate's economy as well as adhering recommendations of the Dubai Supreme Fiscal Policy Committee.


News Link: http://www.bi-me.com/main.php?id=43452&t=1&c=34&cg=4&mset=1011

NT 'could be Saudi Arabia of biofuel'
Posted by NTNEWS.COM.AU
DANIEL BOURCHIER
January 17th, 2010


THE Territory could become the world's leading biofuel energy producer, according to a European energy company.

But an NT environmental expert said biofuel is a "half-way house" and there is a greater need to be looking towards more sustainable sources of energy.

Norwegian company ENEnergy has reportedly identified land in the Territory, Western Australia, and Queensland as sites to intensely cultivate the plant Arundo donax to produce large volumes of ethanol.

ENEnergy spokesman Hans Olav Bjorenak told the ABC each plantation would be larger than 100,000 hectares.

He said 20,000ha alone could produce enough energy to power a city the size of Canberra for a year.

"We think that the Top End of Australia effectively can become the Saudi Arabia of the renewable oil world," he said.

Mr Bjorenak says the ethanol would be exported to Europe and Asia, but the company could also sell locally.

Environment Centre co-ordinator Stuart Blanch said there were some serious concerns about the growing of Arundo donax, which is a known weed.

"The big issues are land clearing, water use, and herbicides and pesticides," he said.

"I'm talking to people in the government, and I don't think there have been any serious discussions.

"There's too high a risk in planting weeds in the Territory.

"We already have too many of them and the giant reed is like a big brother of gamba grass.

"It grows very tall, to 6m, it grows 10cm a day.

"It's very flammable during the dry season and it also likes wet feet.

"It could be the wetter cousin of gamba grass, invading rivers and floodplains."

Mr Bjorenak said pastoral permit applications are now before various governments.


News Link: http://www.ntnews.com.au/article/2010/01/17/116281_ntnews.html

Saudi economic growth likely to accelerate to 3.9% in 2010
Posted by ArabNews
John Sfakianakis
Saturday 16 January 2010


Saudi Arabia’s economic recovery this year will most likely follow a gradual, steady track. Economic growth should accelerate following a stagnant and difficult year, inflation will remain at manageable but historically high levels and expansion of the private sector is set to take a turn for the better along with credit expansion at Saudi banks. The government, through a stimulatory public spending program, will continue to lead the pick up in the economy as Saudi oil averages around $74 a barrel and low levels of government debt bolster the Kingdom’s fiscal position. A higher oil price environment will enable Saudi Arabia to experience comfortable budget and current account surpluses.

While many key elements are in place to support a recovery in the Middle East’s largest economy, Banque Saudi Fransi (BSF) reducing slightly its 2010 economic growth forecast for the Kingdom to 3.9 percent from 4 percent based on our view that improvements in business activity will be gradual and cautious. The government’s commitment to counter-cyclical fiscal expansion remains solid.

Banks are likely to loosen up on their reluctance toward lending to the public and private sectors, one barrier that choked the private sector during 2009. Last year, claims on both sectors by banks contracted by almost 5 percent, following growth of 30 percent during 2008. This year, banks will have little choice than to lend more as they emerge from a period of challenging revenues and an unfavorable low interest rate environment.

It was not only banks that stifled nonoil private sector growth in 2009; private Saudi companies themselves shelved many projects as international credit became more scarce, and businesses deleveraged and restructured. Assessing the private sector’s appetite to expand is as important as examining banks’ willingness to lend.

The Saudi government last month revised lower its real GDP growth figure for 2007 to 2 percent (from 3.3 percent) and 2008 to 4.3 percent (from 4.45 percent).

Real economic growth in Saudi Arabia has not surpassed 5 percent since 2005. Expansion of the private sector — which was growing by more than 5 percent per year between 2004-2007 — is also down to levels that are not strong enough to support the amount of job creation Saudi Arabia needs in order to cater to a population that accounts for two-thirds of the Gulf total, and is growing around 2 percent per year. The private sector expanded 2.5 percent in 2009 and the bank anticipates growth to rise to 3.7 percent in 2010.

A measured turnaround

The Saudi economy registered better-than-expected growth of 0.15 percent in 2009, while nominal GDP, subject to oil price fluctuations, contracted around 21 percent, according to government estimates. A smaller-than-anticipated decline in oil sector output of 6.4 percent enabled GDP to grow last year as most major world economies fell into recession. The bank had expected a 9.1 percent contraction in the oil sector, which underestimated Saudi Aramco’s investments in oil sector expansion.

The private sector’s investment appetite subsided and overall domestic demand declined, contributing to low nonoil private sector performance. The private sector expanded 2.5 percent down sharply from 4.7 percent a year earlier. International and local credit was scant and prompted many businesses to postpone and cancel projects as they opted to hoard cash.

BSF is cautiously optimistic that 2010 will witness an improvement in the private sector’s performance. The downside risks BSF foresees are linked to both the willingness of banks to provide credit and on the private sector’s willingness to undertake investments. BSF anticipates private sector GDP will expand at 3.7 percent this year, accounting for more than 47 percent of GDP at constant prices. With oil prices standing around $80 a barrel and key global economies beginning to return to growth, Saudi Arabia, a seminal oil and petrochemical products exporter, is likely to benefit from the improvement in global economic conditions. The bank foresees real growth for the Saudi economy of 3.9 percent this year, including a 4.1 percent rise in real oil GDP activity (accounting for 28 percent of total GDP). GDP growth should rise to 4.8 percent in 2011, the fastest pace in six years, once banking sector and business momentum is back in full swing.

BSF expects the government sector to grow by 4.1 percent in 2010, accelerating slightly from its 4 percent growth level last year, as the state continues to take the lead in the economic recovery. Government sector growth above 4 percent has happened only three times in the last 20 years — 2005, 1997 and 1992.

In the 2010 budget, this expansionary stance culminated in a 13.7 percent rise in projected state expenditures to a record level of SR540 billion. The largest budget in Saudi history is designed to encourage private sector businesses to loosen their purse strings and urge banks, awash with liquidity, to jumpstart lending following a slow 2009.

According to government budget projections, which BSF estimates are based on an average oil price of $44 per barrel for Saudi crude, the state’s fiscal deficit will widen to SR70 billion in 2010 after a smaller-than-expected shortfall of SR45 billion in 2009.

Below is a breakdown of some of the key trends the bank expects in nonoil economic sectors this year:

Finance

Finance sector GDP growth rates continued their declining trend in 2008-2009 as both bank profit and asset growth registered weak performance. The growth rate dropped to 2.8 percent in 2008 and 1.8 percent in 2009. Last year, in particular, bank lending to the private sector slowed to a crawl. Despite being awash with liquidity, bank claims on the private sector rose only 2 percent, down from 27 percent expansion a year earlier. Total domestic credit growth (including lending to public entities) fell about 5.4 percent last year.

As risk appetite among banks cautiously returns this year, the bank expects the finance, insurance and real estate sector will grow 3.8 percent in 2010, more than double its rate of growth last year.

BSF does not expect any change to SAMA’s (Saudi Arabian Monetary Agency’s) exchange rate policy in 2010.

Construction

Saudi Arabia’s construction sector grew 3.9 percent in real terms in 2009 — faster than growth of 2.2 percent registered a year earlier. This is partly a reflection of the knock-on affect of government infrastructure spending. In bank’s view, a lot of work remains to address growing demand for housing which BSF estimates, given prevailing conditions, at 255,000 residential units per year for the next five years. The kingdom’s real estate sector is still suffering from a shortage of housing units, a fact that has shielded it from the sharp price corrections experienced in neighboring countries, particularly the United Arab Emirates. The demand for new housing will continue, steered by the indigenous population.

Manufacturing

In 2009, manufacturing sector GDP growth slowed sharply to 1.7 percent from almost 6 percent in 2008. This decline in output is understandable given the general deceleration in the domestic economy, in addition to a slowdown in demand for goods, particularly petrochemical products, globally. The value of petrochemical and plastics exports from Saudi Arabia, for instance, fell 21.5 percent between January and September of 2009, according to preliminary data of the Central Department of Statistics (CDSI). The bank anticipate the manufacturing sector’s output will rise to 4.1 percent in 2010 as petrochemical output increases on the back of higher oil prices and new production volumes reach fruition.

Wholesale trade

Wholesale and retail trade is likely to witness GDP growth rates of 3.6 percent this year, compared with 1.97 percent in 2009, according to BSF estimates. Saudi Arabia’s exports are highly dependent on the price of and demand for oil. Oil exports accounted for 85 percent of a total estimated $153 billion in 2009. Nonoil exports, primarily petrochemicals and derived products, have performed well over the past few years in line with global demand and the Kingdom’s competitive advantage. However nonoil exports were not isolated from the global economic downturn, falling about 16 percent in 2009.

Letters of credit against the import of items such as food, automobiles and machinery are likely to track the performance of private sector expansion and private consumption. The bank expects imports, which fell 21 percent to $80.3 billion in 2009, to climb to $94.7 billion in 2010.

BSF anticipates that Saudi Arabia’s current account surplus will rise to SR98.7 billion this year, or 6.2 percent of GDP, compared with SR76.7 billion last year on the back of higher oil income.

Electricity

The electricity, gas and water sector grew 3.4 percent in 2009, down from an expansion at constant prices of 6.7 percent a year earlier, and we expect this sector to grow by a solid 4.3 percent this year. As demand for utilities rises in the coming years, greater government and private funds will be allocated to efforts to improve output and address growing demand. In 2008, electricity generation grew 5.7 percent, and domestic demand for utilities is growing by 8% per year.

Transport

BSF expects the transport and communications sector to grow 4.8 percent this year, having been the fastest-growing sector last year, at 6 percent. The Saudi telecoms sector has expanded quickly with the introduction of two mobile phone operators to compete with the incumbent Saudi Telecom Co. in recent years. Zain Saudi Arabia, the Kingdom’s third mobile phone operator, reached 6 million subscribers in November, and total Saudi mobile phone subscriptions exceeded 41 million at the end of the third quarter.

Agriculture

Agriculture GDP is likely to grow 0.5 percent in 2010 according to our estimates, up from growth of 0.2 percent last year. While the rate appears low at first glance, it is in line with the state’s policy of moving away from agricultural production toward importing key commodities, including wheat. Saudi Arabia is giving up a 30-year program to grow its own wheat as part of a government strategy to change its water usage habits by phasing out water-intensive crop production.

Inflation

After soaring to a record 9.9 percent in 2008, inflationary pressures subsided in 2009 due to slower domestic demand, lower global commodity prices, a retreat in food prices and a decline in domestic rents. The circumstances created deflationary trends in some Gulf countries, particularly Qatar, although we do not foresee a substantial decline in inflation in Saudi Arabia this year. BSF expects Saudi annual inflation to average 4.3 percent this year, compared with 5.1 percent in 2009.

(To be concluded)

(John Sfakianakis is group general manager and chief economist at Banque Saudi Fransi, Riyadh)


News Link: http://arabnews.com/?page=6&section=0&article=131272&d=16&m=1&y=2010

Global recession knocks start-ups
Posted by BBC News
Wednesday, 13 January 2010


The US saw a big fall in the number of new start ups

The number of new businesses being set up around the world has declined in the face of the global recession, a report has found.

New start-ups were down 10% last year in 20 of the world's richest nations, said the latest edition of the annual Global Entrepreneurship Monitor (GEM).

It found that the decline was the most severe in the US, where it fell 24%. By contrast, the UK only saw a 6% dip.

The United Arab Emirates saw the most start-up activity in 2009, up 38%.

'Greater difficulty'

Now in its 11th year, the 2009 GEM report was based on a study of 54 countries, and more than 180,00 interviews.

The study was established by London Business School and Babson College in the US.

"Throughout the world, would-be entrepreneurs reported greater difficulty in obtaining financial backing for their start-up activities, especially from informal investors - families, friends, and strangers," said Professor Bill Bygrave of Babson College, one of the founders of GEM.

He said this pool of money had declined from $400bn (£247bn) to $350bn, a 12.5% drop across the 33 countries that taken part in both the 2008 and the 2009 GEM surveys.

And it was not necessarily in developing countries that start ups found it difficult to secure financing in 2009.

Among wealthier nations a quarter of new entrepreneurs feel the prospects for their businesses are now more positive in 2010 than a year earlier.

'Engine'

"Clearly, the slowdown has led to changes in the environment for entrepreneurs with investors holding back financing and consumers buying less," said Kristie Seawright, executive director of GEM.

"What is needed is for entrepreneurs to feel comfortable venturing out again, because they are the real engine for creating new jobs.

"Unfortunately, there is not a silver bullet for entrepreneurs. Each country needs to develop the right formula to encourage business start-ups."

When comparing estimates on pre-recession results of 2006-2007 with 2008-2009, individuals starting new businesses dropped 24% in the US, 17% in Denmark, 12% in Spain and Belgium, 9% in Germany and Norway, 7% in Italy and 6% in the UK.

There was no change in France, Iceland, Japan, Netherlands, and Slovenia.


News Link: http://news.bbc.co.uk/2/hi/business/8455361.stm

Saudi industries eye European expansion
Posted by Saudi Gazette
Wednesday, 13 January 2010


JEDDAH - Saudi manufacturers intend to increase their exports to Europe amid growing demand for high quality Saudi products across the European Union (EU) market.

The trend would help maintain the Kingdom’s status as one of EU’s top 15 international trading partners.

In particular, the Kingdom is monitoring Europe’s construction industry, the region’s biggest sectoral employer and one of its major sources of gross capital.

Eu’s construction sector is forecast to achieve market stability this year and open up various opportunities in related-businesses such as flooring and carpeting.

As this developed, Al-Sorayai Trading and Industrial Group, one of the largest floor coverings manufacturer in the world and one of Saudi Arabia’s top 100 companies, plans to leverage its high production capacities of 85 million square meters a year to respond to the increasing global demand.

The floor coverings manufacturer will take part in Domotex Hannover in Germany, the world’s leading trade fair for carpets and floor coverings, aiming to increase its European exports in 2010 in response to the region’s strong demand for its high-quality carpets. The exhibition is being held from Jan.16- 19, 2010.

Prior to the full worldwide impact of the economic crisis towards late 2008, the global market value of the flooring and carpets trade was set to climb by 2.5 percent annually and reach $150 billion by 2012.

Positive 2010 forecasts such as the UN World Tourism Organization’s prediction of a 1 to 3 percent growth in international tourism and the McGraw-Hill Construction Outlook 2010 Report’s expectation of increased construction activity are expected to boost demand for flooring materials and coverings. Europe is a particularly profitable target market due to the huge volume of its planned and ongoing construction activities.

“Europe has been a lucrative market for us, even amidst the downturn. We intend to further expand our presence in the region, specifically by interacting with current and potential customers through high-profile industry events. During the past years we have been attending Domotex Hannover to get a pulse of the international floorings trade. This year is of great significance because there are high expectations for at least moderate recovery across sectors that are linked to our line of business. We are highly prepared to meet demand should a strong market upswing occur,” said Saleh Nasser Al-Sorayai, managing director, Al-Sorayai Trading and Industrial Group.

Al-Sorayai, the first carpet manufacturing company in the Middle East to obtain ISO 9001-2000 certification, occupies an area of almost 90,000 sq m dedicated solely to manufacturing activities. The company’s Jeddah Industrial Yarn Factory produces its own polypropylene and nylon yarn, the main raw materials for carpet making. Al-Sorayai has grown almost 20 times in production capacity over the past years due to annual production expansions and currently exports its products to 65 countries around the world.

Domotex will feature the products and services of 1,400 exhibitors from around 60 countries in 13 halls. The four-day trade fair will feature “contractworld,” Europe’s biggest forum for architects and interior designers. Al-Sorayai will take advantage of the forum, which will also act as an exhibition, a congress and architect’s award platform, to explore European business prospects and further promote its portfolio to the region. Europe currently counts among US, Australia, China and other Middle Eastern countries as Al-Sorayai’s main markets. - SG


News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010011359993

MENA equity markets fell 1.2% in December bringing 2009 gains down to 17.3%
Posted by www.bi-me.com
Mon January 11, 2010

INTERNATIONAL. Regional markets continued to suffer following Dubai World’s announcement on 25 November 2009 that it would seek a standstill agreement with creditors and an extension of loan maturities until at least 30 May, 2010, the latest Rasmala MENA equity report said.

The Dubai government also stated that it will not guarantee the debt of its government related entities. On 14 December, the government of Abu Dhabi injected US$10.0 billion to the Dubai Financial Support Fund, which will be used to satisfy a series of obligations on Dubai World, most significantly the US$4.1 billion Nakheel sukuk that matured on December 14th.

The move was well received by credit markets and led to a dramatic reduction of implied credit risk premiums on Dubai sovereign and government related entities (GREs) debt.

Capital markets also reacted positively to the new development, as on the day of the announcement, the DFM and ADX indices increased by 10.4% and 7.9% respectively.

According to the Rasmala report, Tunisia was the best performing regional market in 2009, gaining 48.4%, followed by Egypt which gained 35.1%.

Bahrain ended the year as the worst performing market losing 19.2%, followed by Kuwait which fell by 10.0% in 2009.

MENA markets have underperformed both emerging markets and the US market for 2009. MSCI Arabia gained 17.3% in 2009 versus 23.5% for the S&P 500 and 74.5% for MSCI EM.

In the UAE, ongoing uncertainty surrounding the outcome of Dubai World's moratorium request, weighed down the DFM index as it fell 7.0% during the month. The ADX index managed to gain 2.8%, bringing the year to date gains for the two indices to 10.2% and 14.8% respectively.

Saudi Arabia’s Tadawul Index (TASI) fully reversed the gains recorded in November, as the index was down 3.7% by the end of December.

On a regional level the TASI underperformed all indices with the exception of the DFM. On a positive note, year to date gains were 27.5%, representing the third best performance regionally after Tunisia and Egypt.

Egypt’s EGX 30 was the best performing market in the region for the month, increasing by 5.8%.

The EGX 30 outperformed regional peers, as it had previously taken a severe hit due to Dubai’s debt problems on the last trading day of November 2009, unlike most other regional indices that took the hit on the first trading session of December.

The Kuwait Stock Exchange (KSE) gained 1.0% during the month of December. Yet, on a year to date basis the Kuwait market has performed poorly, losing 10.0% since the beginning of the year; rendering Kuwait as the second worst performing market in the region, after Bahrain.

As a result of the Dubai World debt crisis, Qatar’s DSM 20 index lost 8.3% on December 1st, 2009, its first trading session following the Eid holidays.

However, the index has been on the road to recovery ever since, recouping most of its losses to conclude 2009, with a month to date drop of 3.3%.

Performances in the banking sector have been improving lately, following an announcement made by Qatar’s Finance Minister, stating that the government will buy 5% of some local banks (with the exception of Qatar National Bank) spending around US$900 million in an effort to boost investor confidence.

The Omani market ended the last month of 2009 up 0.2%, resulting in a year to date gain of 17.1%. The banking sector was under the spotlight during the month as several banks disclosed their exposure to Dubai World's debt.

The Central Bank announced that Omani banks' exposure to the Dubai-based troubled company is estimated at US$77.0 million.

News Link: http://www.bi-me.com/main.php?id=43319&t=1&c=34&cg=4&mset=1011

KEC offers attractive commercial terms to enhance investors’ expected returns
Posted by Saudi Gazette
Tuesday, 12 January 2010


JEDDAH - Against the backdrop of unprecedented and coordinated policy measures across the globe to ensure that the world economy is again recovering from the worst economic downturn in the postwar era, investment drive in Saudi Arabia has gained additional momentum.

In particular, investment appetite in the Knowledge Economic City - the third of four Economic Cities being developed in Saudi Arabia - has increased, as demonstrated by the tremendous outcome of the recent “Business Opportunities Forum” hosted by KEC on its project offerings.

Tahir Bawazir, CEO of KEC, announced at the forum that contract agreements worth SR1.5 billion will be signed early this year on construction of infrastructure and related facilities for the first phase of the KEC project. The contracts would cover hospitality industry, commercial/retail malls, business parks and educational facilities for information technology, health education, management tourism courses, among others.

KEC continuously receives a lot of pre-qualification bidders for a host of projects at stake, he added.

At the moment, a lot of investment opportunities in KEC await potential investors, said Jones Lang LaSalle - which has been the real estate advisor to KEC for the past 3 years - in its presentation at the forum.

Being instrumental in sizing, phasing and creating the development strategy for the various phases of KEC development, Jones Lang LaSalle said investors could take advantage of KEC’s “attractive commercial terms” to enhance their expected returns. It noted that investors have the opportunity to acquire land for development in Phase 1 of KEC.

It outlined KEC’s unique selling proposition such as high capital appreciation potential, high quality infrastructure offering, inherent demand drivers for residential and commercial assets, and opportunity to acquire land in the only economic city proximate to an existing urban center in the Kingdom.

In retail and hospitality, for instance, KEC offers investors an opportunity to co-invest in a mixed-use development containing a quality retail and hospitality asset which support the entire residential and commercial development in Phase 1, Jones Lang LaSalle said.

The asset will be developed on a 40,000 sq m land and will have a total built up area of 71,000 sq m. Diversified revenue arises in hospitality, Jones Lang LaSalle pointed out.

The residential villa community part of Phase 1 would be the only integrated residential villa community in Madina once finished, it added. The 3-bedroom 320 villas will form as part of an integrated development including retail, school and religious facilities.

The apartment community part of Phase 1, Jones Lang LaSalle further said, will have more than 200 apartment units of different sizes. After completion, it will be the only integrated mid-rise residential apartment community in Madina and will also become a part of an integrated development which includes retail, school and religious facilities. – SG

News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010011259892

Saudi-Chinese panel holds meeting
Posted by Saudi Gazette
Monday, 11 January 2010


RIYADH — The fourth session of the Saudi-Chinese Joint Commission began here Sunday under the co-chairmanship of Minister of Finance Dr. Ibrahim Al-Assaf and Chinese Trade Minister Chen Deming.

In his speech at the session, Al-Assaf highlighted the role of the Commission in cementing bilateral relations in the economic, trade, technical and investment domains.

Al-Assaf recalled the visit to China in 2006 by the Custodian of the Two Holy Mosques, King Abdullah, and the visits to the Kingdom by the Chinese president in 2006 and 2009 and the agreements signed on the fringes of these visits.

In 2008, Al-Assaf said the volume of trade exchanges between the two countries amounted to more than $40 billion. Al-Assaf hoped that the Chinese market would be open for the Saudi non-petroleum commodities. He lauded the Saudi economy and said despite the world economic crisis, it was capable of implementing its reform programs and updating its systems.

“I was happy when I heard the Chinese ambassador to the Kingdom say that the Chinese companies have obtained contracts for implementing 100 projects of infrastructure in the Kingdom with a total cost of about SR44 billion,” he noted. He also called on other Chinese companies to contribute to implementation of varied projects in the Kingdom.

Al-Assaf hailed the existing distinguished relations between the two countries and their coordination on a number of issues like the climate change.

He said the Gross Domestic Product (GDP) in the Kingdom amounted to about SR1trillion and SR400 billion in 2009.

Al-Assaf said the Kingdom has been doing its best to support efforts of economic integration among the member states of the Gulf Cooperation Council as well as among the Arab countries.
“Moreover, the Kingdom is keen on the stability of the global economy,” he said. He noted that the Kingdom is also keen on maintaining the stability of the world petroleum market.

Al-Assaf pointed out that the Kingdom has allocated large sums of money for supporting investments in petrochemicals, minerals, energy, transport and health sectors.
The meeting was attended by a number of senior officials. — SPA


News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010011159786

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