Al-Hassad Islamic Account announces winners
NBK is platinum sponsor of Tijarty Hiwayti youth exhibit
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US, India launch high-level economic partnership talks
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Wednesday, April 7, 2010
www.kuwaittimes.net
Burgan Bank eyes diversification, positive growth KUWAIT: At its 2010 General Assembly and Shafafiyah Investors For um on Monday, Burgan Bank appointed a new chairman and presented the nominations for the new board. Majed Essa Al-Ajeel has been appointed as the new chairman of Burgan Bank, Mohamad Abdul R ahman Al-Bisher as the Vice Chairman, and the new Board of Directors are; Abdul Karim Kabariti, Pinak Maitra, Sadoun Ali, Faisal Al-Radhwan, Ahmed AlSumait, Dr Amani Burisly, Abdul Salam AlBahar and one reserve as Samer Khanachet. Majed Essa Al Ajeel, Chairman of Burgan Bank said, “We welcome the new board and look forward to the continued success that the bank has seen over the years as we move aggressively forward. I would also like to take this opportunity on behalf of the board and management of the bank to thank the previous board members for their guidance and Masaud Hayat for his commitment and successful leadership. We wish him all the very best. Meanwhile at annual Shafafiyah forum, Burgan Bank presented a review of 2009 and outlined its 2010 plans and outlook to its shareholders, partners, financial analysts and institutional investors. It also confirmed that it will continue to achieve positive growth and increased revenues despite the challenging financial climate. The Investor’s Forum followed the company’s General and Extraordinary General Assembly meetings. During the 43rd Ordinary General Assembly, Shareholders approved a list of items which included the election of new board members for a three year term. At the Shafafiyah Forum, Burgan Bank out-
lined its plans and future outlook for 2010 which included its subsidiary businesses in fast growing economies that have been resilient from the downward global economic trend. The bank also highlighted its performance and achievements as well as challenges that lay ahead. Speaking at the Forum, Burgan Bank’s Chairman, Majed Essa Al-Ajeel said that despite tough market conditions, the bank is performing well and will exploit the current economic situation to its advantage and it will overcome the crisis: “Through our long range plan from 2010-2014 we are looking at increasing our market share and revenues. Also, we are looking to substantially strengthen our foundations by introducing new products and services in Kuwait. Our eventual focus is to widen the scope of our activities through our affiliation and acquisitions of our subsidiary banks in the MENA region.” Commenting on the subsidiaries, Majed AlAjeel said: “The solid macroeconomics outlook within the MENA region will provide a solid platform for diversification which will inevitably lead to substantially enhancing both the franchise and shareholder value.” During the year 2009, Burgan Bank, posted a net profit of KD 6.2 million. The results were after provisions of KD 82.8 million taken during the year. These provisions are in addition to the KD 43 million of unallocated general provisions available in the bank books as of 31 December 2009. During the period, the Bank’s operating income of KD 155 million grew by 28% and operating profit grew by 26% over the previous year to KD 111 million.
Bank names Al-Ajeel as chairman, elects new board
KUWAIT: Majed Essa Al-Ajeel, the newly-elected Chairman and Masoud Hayat, the Managing Director (middle) with other board members during the general Assembly. — Joseph Shagra
Islamic finance bodies have Qatar to start Ras Laffan $5tn potential, says Moodys refinery expansion in 2011 PARIS: Islamic financial bodies, which adhere to religious proscriptions against interest, have a market potential of at least $5.0 trillion, Moody’s Investors Service said yesterday. But Moody’s added that such institutions needed to develop their own derivative instruments, avoiding conventional derivative practices, if they wanted to retain their popularity among Muslim investors. It said Islamic financial institutions had total assets in 2009, despite a gloomy international economic environment, of $950 billion. But it estimated that the sector’s
potential was “worth at least at least $5.0 trillion (3.7 trillion euros) and the industry is continuing to expand globally.” Islamic banking has been left relatively unscathed by the global financial crisis, largely because of rules forbidding engagement in the kind of risky business that sank mainstream institutions like Lehman Brothers. Islamic Sharia law bars the payment and collection of interest, which is seen as a form of gambling. Islamic finance also operates on the principle of risk-sharing between the issuing bank and the buyer of a financial product, making it a less risky alternative to some conventional banking
instruments. Moody’s Vice President and Senior Credit Officer Anwar Hassoune said that Islamic financial bodies now wanted to use derivative instruments to hedge against risk and to improve monitoring practices. “However they are keen to do so in a Sharia-compliant manner, rather than imitating conventional derivative instruments, in order to avoid losing their special status as Sharia-compliant banks, which makes them very attractive to a large population of Muslims. “For this reason a new innovation phase in the industry is critical.” — AFP
RAS LAFFAN, Qatar: Qatar will start work on expanding the recently inaugurated Ras Laffan conddensate refinery in early 2011, the Gulf Arab state’s oil minister Abdullah Al-Attiyah said yesterday. The 146,000 barrels per day (bpd) Ras Laffan plant, which currently produces 24,000 bpd of gas oil, 52,000 bpd of kerosene and jet fuel and 8,000 bpd of liquefied petroleum gas (LPG) will be aimed at markets in Southeast Asia and Europe, Attiyah told reporters. “Markets across Southeast Asia and Europe in particular rely on these commercially valuable products for their
Kuwait’s Agility delays results amid US talks KUWAIT: Kuwaiti logistics firm Agility will postpone the release of its 2009 financial results until April 11 as it tries to reach a settlement with the US government on a fraud case. Agility, which had already delayed the results to April 6, said in a statement yesterday that it was waiting to see “whether or not it can resolve a legal dispute with the US government.” It did not elaborate. The company said that trading in its shares will continue to be halted. Agility, formerly Public Warehousing Co KSC, is in talks to resolve an indictment accusing it of overcharging the US Army on supply contracts in Iraq, Kuwait and Jordan. Yesterday, the Arabic language daily Al-Qabas, citing unnamed sources, said if no settlement is reached by April 11, Agility will announce the results after making “enough provisions.” Kuwait, which was the launch pad for the US-led invasion of Iraq in 2003. has become a major logistics base for American forces. — Reuters
NEW YORK: Traders gather at the post on the floor of the New York Stock Exchange that handles Teekay Tankers Ltd. yesterday. — AP
Greek debt muddle sinks euro, sends spreads soaring ATHENS: A spike in uncertainty over Greece’s debt strategy yesterday sank the euro and troubled bond investors as Athens was to confer with IMF experts on how to plug holes in its struggling economy. Greece’s borrowing costs soared on reports earlier in the day that Greece might be seeking to bypass the International Monetary Fund in a joint-but vague-EUIMF support deal that has so far failed to inspire investors. The Greek finance ministry rushed to dispel the suggestion, insisting that Greece had “never taken any action” to change the terms of the deal. “The agreement is important to both Europe and Greece as it defines the conditions under which a country can be supported under specific conditions by its peers,” Greek Finance Minister George Papaconstantinou said. But the damage had already been done and Greek borrowing costs mounted. The gap between Greek and German 10-year bond yields, or spread, widened again on Monday to 3.91 points from 3.42 points on Thursday. And the euro fell below the 1.34-dollar level as fresh doubts about the handling of the Greek debt crisis undermined confidence in the euro-zone, dealers said.
The new wave of angst came ahead of the expected arrival in Athens today of IMF experts and amid everrising urgency for Greece to borrow huge sums to pay its bills. Although Greek sources insisted that the IMF mission was merely to offer advice on managing Greece’s debt-crippled budget, there was mounting unease in financial markets about the country’s escaping partial default on old debt due for repayment. The sense that Greece might be losing interest in the IMF-EU bailout strengthened on a report that Athens would soon lead a “roadshow” to raise money in the United States in the face of weakening European demand for its debt. Greece, a member of the euro-zone, said last week it planned a huge operation to borrow in dollars the equivalent of 11.5 billion euros ($15.6 billion) to meet an urgent need for funds. The goal would be to raise the money by May to cover bills until the end of that month, the state debt management office said. But the country will still need another 32.5 billion euros to pay its bills to the end of the year, and faces paying about 15 percent of tax income in interest. —Reuters
Palestinians plan third mobile license in 2013 RAMALLAH: The Palestinian Authority said yesterday it plans to issue a third mobile phone licence in 2013, although the success of such a project will depend on Israel opening frequencies for Palestinian use. Telecommunications Minister Mashour Abu Daqqa said the Palestinian market, comprising 4 million people in the West Bank and Gaza Strip, could accommodate a third network. He said bidding will open in 2012. The project’s success depends on Israel opening telecommunication frequencies for Palestinian use, assuming the coming years fail to yield a peace deal granting Palestinians sovereignty over territories occupied by Israel since 1967. Abu Daqqa said a third network would enhance quality and lower prices. The Palestinian market is currently served by Wataniya Palestine, which is part owned by Qatar Telecommunications Co, and Jawwal, which is owned by The Palestine Telecommunications Co (Paltel).
“All the studies say there is room for a third operator,” Abu Daqqa told a news conference in Ramallah. Wataniya Palestine began operating in November and says its subscriber growth has exceeded targets. Jawwal, which began operating in 1999, has some 1.8 million users. Abu Daqqa said the Palestinians were asking Israel for access to the frequencies required for a third operator. Abu Daqqa said a third operator would help to squeeze out Israeli firms. Some Palestinians in the West Bank are forced to use Israeli networks because of the problems the Palestinian firms face erecting masts in the 60 percent of the West Bank that falls under full Israeli control. “We must impose facts on the ground,” Abu Daqqa said. The Palestinians aim to establish an independent state in the West Bank and Gaza Strip with East Jerusalem as its capital. — Reuters
petrochemical industry and to run their vehicles and jets,” he said. “By building this refinery it would diversify and expand our added value to world markets.” Contracts for the second phase of the refinery are expected to be awarded by the first half of next year, Attiyah said. The biggest product stream at the plant will be the petrochemical feedstock and gasoline component naphtha, he said. Production for naphtha at the refinery will be at 63,000 bpd, and Asia will be the main export market for the light fuel, Attiyah said.
Kerosene and jet fuel produced at t h e re f i n e r y w i l l s h i p p e d m a i n l y t o western markets, and the gas oil gas oil output will be redirected into the local Q a t a r i a n d re g i o n a l M i d d l e E a s t e r n markets, he said.The refinery will allow Qatar to cease diesel imports, Attiyah s a i d . S t a t e - f u n d e d Q a t a r Pe t ro l e u m operates the Ras L affan refinery and has a 51 percent stake. Other shareh o l d e r s a re To t a l w i t h 1 0 p e rc e n t , Exxon Mobil with 10 percent, Cosmo with 10 percent, Idemitsu percent with 1 0 p e rc e n t M i t s u i w i t h 4 . 5 p c t a n d Marubeni with 4.5 percent. — Reuters