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Kuwait Financial Centre “Markaz” GCC Daily Fixed Income Report – 29 January 2012 News Update Select GCC Bond and Sukuk Prices (27 January 2012) Moody's Classifies Abu Dhabi's Long Term Ratings As Aa2- The Type Name Maturity Size (Mn) Rating Bid Price long-term foreign and local currency issuer ratings of the government of Bond State of Qatar 9-Apr-14 2,000 AA/Aa2 106.938 Abu Dhabi, the richest of the seven emirates composing the UAE, are Aa2. Bond State of Qatar 9-Apr-19 1,000 AA/Aa2 118.092 Bond Emirate of Abu Dhabi 8-Apr-14 1,500 AA/Aa2 108.250 These high investment-grade ratings are supported by several factors. Bond Emirate of Abu Dhabi 8-Apr-19 1,500 AA/Aa2 120.500 Foremost among these is the prodigious strength of the government's Bond Mubadala Development Co. 6-May-14 1,250 Aa3/Aa2 107.705 balance sheet. The government of Abu Dhabi has little direct or explicitly Bond Mubadala Development Co. 6-May-19 500 Aa3/Aa2 119.882 guaranteed debt and it has one of the largest sovereign wealth funds in Bond Qatar Telecom 10-Jun-14 900 A/A2 108.733 the world with more than $300bn of assets according to the IMF's April Bond Qatar Telecom 10-Jun-19 600 A/A2 122.904 2011 staff report. Abu Dhabi has one of the highest GDP per capita in the Sukuk Aldar Properties 27-May-14 1,500 BB-/B1 110.109 world despite cyclical swings in oil prices and production. In addition, Abu Sukuk DP World Ltd 2-Jul-17 1,500 BBB-/Baa3 102.900 Dhabi has a long history of domestic political stability and enjoys strong HSBC/NASDAQ Dubai GCC Sukuk & Bonds US Dollar Index relations with its fellow emirates within the UAE, most neighboring Total Clean Sukuk Duration Yield Spread Life countries, and the major global powers including the US. Return Price Saudi Finance Minister Sees GDP At 6.8% In 2012- Saudi Arabia's economy, the largest in the Arab world, is likely to maintain its GDP growth rate of 6.8% this year due to the kingdom's expansionary budget, which will play a vital role in supporting the economy, the nation's finance minister said. "I think GDP growth will be within that range given that we are continuing with the same policies," Ibrahim Al-Assaf said. UAE Economy Set To Grow 4%- The UAE economy is forecast to grow by at least 4% in 2012, Economy Minister Sultan Al Mansouri said. "Under the circumstances, this is healthy, this is good," Al Mansouri said. Al Mansouri's forecast for the UAE economy is very upbeat in contrast to various growth estimates given by economists. Standard Chartered has projected a 2.4% growth in 2012 versus 3.8% in 2011 while National Bank of Kuwait said it expects record low inflation would spur further economic growth in 2012 following a 4.6% growth in 2011 as the UAE's major business hubs like Dubai and Abu Dhabi become more cost-competitive. Rating Agencies Raise Dubai Holding Ratings- Prompted by the news that Dubai Holding Commercial Operations Group will stick to its loan repayment commitments, leading credit rating agencies have upgraded its ratings. Moody’s affirmed DHCOG Corporate Family Rating at B2 and upgraded its Probability of Default Rating and the ratings for multicurrency debt instruments issued by Dubai Holding Commercial Operations MTN Limited to B2. DP World Sells Stake In Container Services Firm- DP World sold its 34% stake in UK-based Tilbury Container Services Ltd for $75.48mn. The port operator sold the stake in the deep-sea container services firm to a subsidiary of Otter Ports Holdings Ltd, owner of Forth Ports Limited. Tilbury, a key shipping and distribution port access to London and the South East of England, is now fully owned by Otter Port Holdings Ltd following a similar transaction with its other owner Associated British Ports.

24-January-12 31-December-11 Conventional 24-January-12 30-December-11

Ask Price 107.541 118.757 109.000 121.250 108.270 120.841 109.436 123.692 110.777 103.839

Bid Yield 1.898% 3.663% 1.641% 3.498% 2.239% 4.396% 2.653% 4.220% 6.012% 5.621%

Ask Yield 1.628% 3.568% 1.309% 3.392% 1.994% 4.258% 2.361% 4.110% 5.720% 5.422%

Coupon Total Market Cap

133.21 133.00

3.54 3.59

4.37 4.31

330.31 312.20

3.93 3.99

95.57 95.79

5.06 5.06

141.90 142.39

141.72 141.59

5.40 5.26

5.01 5.07

316.29 322.59

7.55 7.31

98.22 98.53

5.53 5.63

871.96 808.83

Interbank Rates (%) SAIBOR KIBOR BHIBOR QATAR AEIBOR LIBOR EURIBOR

1-Month 29/01/12 31/12/11 0.5256 0.5188 0.5625 0.5625 0.8750 0.8500 0.6300 0.4300 0.9813 0.9750 0.2700 0.2953 0.6679 0.9643

U.S. Treasuries (27 January 2012) 3-Month 2-Year 3-Year 5-Year 10-Year 30-Year

Coupon 0.000 0.250 0.250 0.875 2.000 3.125

Equity Market Snapshot Abu Dhabi SE Bahrain SE Dubai SE Kuwait SE Muscat SE Qatar SE Saudi SE

Last Close 2,375.25 1,141.06 1,396.04 5,839.80 5,586.44 8,420.53 6,476.86

3-Month 29/01/12 31/12/11 0.8138 0.7800 0.8125 0.8125 1.2750 1.2583 1.0300 1.1000 1.5425 1.5200 0.5511 0.5810 1.0706 1.2921

Price 0.050 100.078 99.844 100.617 100.969 101.313

Price Change 0.003 0.004 0.004 0.113 0.367 0.656

1 Day Change 0.6% -0.3% 0.7% 0.2% 0.2% 0.2% 0.9%

YTD Change -0.5% -0.5% 3.9% 0.7% -1.7% -3.9% 1.9%

29/01/12 1.0513 1.3125 1.9750 2.2400 1.9850 1.0992 1.7456

1-Year

31/12/11 1.0400 1.3125 1.9583 2.1500 1.9725 1.1281 1.9134

Current Yield (%) Yield Change (%) 0.053 10.527 0.213 0.000 0.304 0.049 0.750 -2.884 1.892 -2.086 3.059 -1.048

Crude Oil Brent WTI OPEC

Price 111.46 99.56 111.26

1 Day ∆ 0.60% -0.14% 0.51%

Gold Spot $/OZ

Price 1,738.95

1 Day ∆ 1.07%

GCC Sovereign Ratings Moody’s S&P Abu Aa2 AA Dhabi

Fitch

Bahrain Baa1 BBB

BBB

Kuwait Aa2

AA

AA NR

AA

Oman

A1

A

Qatar

Aa2

AA

NR

KSA

Aa3 AA-

AA-

UAE

Aa2

NR

NR

GCC Currencies Currency

USD 1-Day ∆

KWD

0.2777 (0.0004)

SAR

3.7502 (0.0001)

BHD

0.3770 (0.0000)

QAR

3.6414

0.0001

OMR

0.3852

0.0002

AED

3.6730

0.0000

EUR/USD 1.3220

0.0071

JPY

76.7000 (0.7600)

USD 5-Year CDS Abu Dhabi Dubai

YTD Change

136.110

6.8%

429.250

-3.5%

Bahrain 405.000

5.7%

Qatar

135.970

6.7%

Saudi

137.910

7.3%

Egypt

560.000

-12.5%

Lebanon 480.000

1.8%

Turkey

275.470

-5.4%

China

136.620

-7.2%

France

164.950

-25.0%

Germany 85.305

-16.5%

Japan

131.750

-8.0%

UK

78.115

-19.9%

US

45.090

-7.9%

This report has been prepared and issued by Kuwait Financial Centre S.A.K (Markaz) , which is regulated by the Capital Markets Authority and the Central Bank of Kuwait. The report is owned by Markaz and is privileged and proprietary and is subject to copyrights. Sale of any copies of this report is strictly prohibited. This report cannot be quoted without the prior written consent of Markaz. Any user after obtaining Markaz permission to use this report must clearly mention the source as “Markaz “ .This Report is intended to be circulated for general information only and should not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction. The information and statistical data herein have been obtained from sources we believe to be reliable but in no way are warranted by us as to its accuracy or completeness. Markaz has no obligation to update, modify or amend this report.For further information, please contact ‘Markaz’ at P.O. Box 23444, Safat 13095, Kuwait. Tel: 00965 1804 800 Fax: 00965 2245 0647 Email: research@markaz.com

A number of sources which include Bloomberg, Zawya, and daily newspapers were utilized in the creation of this report.


DFIU 29012012  

DFIU 29012012

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