[December 22, 2008]

AME Info, Abu Dhabi, United Arab Emirates, finance and economy briefs

(AME Info (Abu Dhabi, United Arab Emirates) Via Acquire Media NewsEdge) Dec. 22--GULF ECONOMIES TO SLOW: A new Reuters poll shows that most Gulf Arab economies will grow at their slowest pace in 2009 since the oil boom began six years ago. The poll of 11 economists showed real economic growth in Saudi Arabia, the UAE and Kuwait will slow down below 3 percent next year as the global recession and tight credit markets hurt activity in the region.

SAUDI BUDGET SURPLUS MAY HIT $133BN: Saudi Arabia's budget surplus in 2008 may have reached 500 billion Saudi riyals ($133bn) as oil prices hit record levels, the Saudi Gazette has reported, citing forecasts from analysts. The kingdom has enough currency reserves to maintain spending on major economic projects even if crude oil prices continue to fall next year. King Abdullah is expected to release the 2009 budget today, the newspaper reported.

UAE'S LIQUIDITY SHORTAGE TO EASE: A new report from Standard Chartered Bank says the UAE's shortage of adequate monetary tools is undermining the process of addressing liquidity into the system. However, it's predicted that the situation will ease by the first quarter of 2009. The report also stated that the UAE's economic growth is expected to slow from 4.8 percent in 2008 to 2.7 percent in 2009.

ABU DHABI TO ESTABLISH FINANCIAL AUDITOR: The Abu Dhabi government plans to create a state auditing arm that would investigate the management of state funds and firms in which it owns more than a 50 percent stake, according to the official WAM news agency. Among the goals of the watchdog is 'increasing accountability and transparency in entities that fall under its jurisdiction', according to a law creating the body. It will seek to ascertain that 'the management, collection and disbursement of funds of the entities it oversees are carried out in an efficient and economically viable manner'.

UAE STOCKS TUMBLE: The Dubai Financial Market plunged 5.58 percent on Sunday to close on 1,802. Emaar, Arabtec, Aramex, and Dubai Islamic Bank each lost nearly 10 percent. In Abu Dhabi, the ADX dropped 3.72 percent to end the day on 2,576. Market heavyweights Sorouh and Abu Dhabi Commercial Bank fell 9.51 percent and 8.45 percent, respectively.

NBD SANA CAPITAL RAISES $170M: NBD Sana Capital, the private equity unit of UAE's Emirates NBD, raised almost $170m at its first close and is eyeing buyout opportunities in the Middle East, North Africa and South Asia, Bloomberg has reported. Suresh Kumar, group director at Emirates NBD, said 'there is no better time' for a private equity fund to invest than now due to the decline in valuations. NBD Sana aims to raise the size of the fund to $250m in 2009 and eventually to $500m, he added.

OMANI INFATION FALLS TO 13.2 PERCENT: Omani inflation slowed to 13.2 percent in October from 13.4 percent in September, according to Oman's Ministry of Economy. The cost of personal-care items and other services fell to 6.4 percent from 14 percent and of educational services dropped to 5.9 percent from 8 percent.

SAUDI STOCK INDEX FALLS: The Tadawul All Share Index dropped 4.1 percent to 4,705.44 in Riyadh yesterday, with shares worth 3.4 billion riyals changing hands. Some 104 shares fell and 18 rose. Alinma Bank fell 2.2 percent to 11.30 riyals and Saudi Basic Industries, or Sabic, declined 6.8 percent to 55 riyals.

TASI GAINS 5.35 PERCENT: The Tadawul All-Share Index (Tasi) has gained 5.35 percent since the resumption of trading after a week-long Eid Al-Adha holiday, and has turned over SR22.42bn last week, Arab News has reported. Saudi Basic Industries Corp. shares has jumped 10.8 percent last week to SR59.

To see more of AME Info, go to http://www.ameinfo.com.

Copyright (c) 2008, AME Info, Abu Dhabi, United Arab Emirates
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