Bahrain: F1 can’t hide stalled reforms
Bahrain, the Arab spring’s forgotten revolt, had fallen off the radar of the fickle global media. But thanks to Formula 1, the world has been at least been reminded this weekend of Bahrain’s scorched social fabric.
Now, 14 months since the island was rocked by the worst unrest in its history, the future of Bahrain’s economy also remains unclear. Continue reading »
Dubai restructuring: squeezing lenders
The lawyers have been busy this week in Dubai’s crowded debt-restructuring market.
First, debt-laden ship repairer Dubai Drydocks escaped from a group of its creditors – by seeking insolvency protection in the emirate at a special tribunal.
Then on Thursday, Dubai International Capital, the troubled private-equity vehicle controlled by the ruler’s holding company Dubai Holding, finalised a $2.5bn restructuring deal with lenders. Continue reading »
Mubadala: getting back in the groove
After a bit of a lull, Mubadala is back. The announcement of a $2bn investment in Brazil signals a return to big-spending, strategic overseas moves that characterised the Abu Dhabi state investment company until the emirate ran into economic trouble in the last couple of years.
The $46bn diversified group mandated to generate financial and social returns is buying a 5.6 per cent stake in Eike Batista’s Brazilian EBX Group after a bit of a pause in its own operations and in the growth of the Abu Dhabi economy. Continue reading »
Arcapita: sharing the pain around
Bahrian’s Arcapita bank has thrown creditors a bit of a curve ball. The bank has decided to file for bankruptcy protection in the US after talks over an upcoming bank maturity of $1.1bn on March 28 broke down.
It’s the first time a Gulf company has sought Chapter 11 refuge in US courts, and creates a new level of public scrutiny for the bank – as well as an uncertain outcome for those wanting their money back. Continue reading »
Dubai: thinking big again
If there is silver lining to Dubai’s grand building dreams – which left the city-state with a debt mountain of $110bn when property prices crashed – it’s that it now has the region’s best infrastructure: gleaming airports, a brand-new metro and lavish hotels.
As the Gulf emirate rebounds from the slump, it is hoping these facilities will enhance its status as a commercial entrepot. In particular, it wants to persuade the world that it is the ideal location to host the World Expo in 2020, the five-yearly exposition of national pavilions, where states outline their vision for national development. Continue reading »
Dubai: banks back in town
For Dubai, the Arab spring has been a boon, in finance as much as tourism. Dubai’s financial centre says financial houses, including some from the competing banking hub of strife-torn Bahrain, are taking advantage of Dubai’s status as a safe port amid the storm of regional unrest.
The Dubai International Financial Centre says several banks are relocating staff to the centre, helping the tax-free financial hub grow by seven per cent to 848 companies last year. Continue reading »
Gulf Air: seat 1A? Not for you, minister
Bahrain’s national carrier is used to perennial business problems, but the state-owned airline wouldn’t have expected a public row with the foreign ministry.
Gulf Air, one of the Middle East’s oldest airlines, has seen its glory days eroded over the years with the rise of Gulf competitors, such as Dubai’s Emirates, Qatar Airways and Abu Dhabi’s Etihad. Continue reading »
Aldar bailout: day 2
Aldar, Abu Dhabi’s biggest developer, saw it shares jump 9.5 per cent on Thursday on the back of a massive government bailout package unveiled the day before. And Abu Dhabi’s real estate index took confidence too, bouncing some 7.5 per cent .
On Wednesday, Aldar announced it is selling assets to the government and receiving debt support to the tune of $4.6bn, after receiving a rescue package of $5.2bn in January. That brings the total amount of government aid in Aldar’s 2011 begging bowl to near $10bn. No wonder shareholders are so happy. Continue reading »
UAE’s bankruptcy laws: unworkable
The UAE’s insolvency laws have been in force since 1993 but lawyers are hard pressed to come up with a single example of their being used to wind down a struggling company. Untested and widely regarded as unworkable, they are in bad need of replacement. Continue reading »
Dubai’s debts: getting there?
In November 2009, Dubai was plunged into crisis when the Gulf city finally admitted that it wouldn’t be able to meet its debt obligations.
What a difference two years makes. Continue reading »
Bahrain – a line in the sand?
After the tumult of February demonstrations through the crackdown of March and the dark days of effective martial law through June, Bahrain has something to chew on.
The Bahrain Independent Commission of Inquiry’s damning report into systematic abuses against pro-democracy protesters earlier this year is an historic moment – never before has an Arab state opened its doors to such rigorous scrutiny. Continue reading »
Bahrain bond: the price of protest
Despite deep political tensions and a vulnerable economy, Bahrain has managed to issue a $750m sovereign bond, becoming the first strife-hit country of the ‘Arab spring’ to tap capital markets since unrest began in January.
The seven-year sukuk is paying out 6.3 per cent, twice as expensive as, say, oil-rich Abu Dhabi, one of the city-states to have escaped street protests this year. But, in the circumstances, the Bahrain government will be grateful for the terms it has secured. Continue reading »
Revolutions across the Middle East have been accompanied by a surge in defence spending.
At this week’s Dubai air-show, all manner of fast jets and attack helicopters were on display as international manufacturers sought to tap into the region’s insatiable appetite for military jets and passenger airliners.
But given the domestic nature of threats to regimes triggered by this year’s popular uprisings, one segment is booming more than most: armoured vehicles. Continue reading »
Dubai tourism: mixed fortunes
Judging opportunities in Dubai’s tourism market is a tricky business these days.
Tourist numbers are rising, underpinned by 50 per cent annual increases in Chinese visitors who want to grab luxury goods and snaps next to the world’s tallest tower, Burj Khalifa. The Arab uprisings have given the industry another fillip as tourists avoid hotspots such as Egypt, Tunisia and Bahrain.
But more than 2.5m extra tourists will have to arrive annually over the next five years to meet a whopping 60 per cent increase in the number of rooms bequeathed by the emirate’s over-ambitious boom days. Continue reading »
China in Dubai: courting the hunters
It is said that the Chinese are leading the scramble for Africa. In Dubai, the very Chinese firms leading that charge have become a target for major banks looking to maintain their Middle East franchises in the midst of the Arab revolts.
Over the past couple of years, global banks have been placing teams in Dubai to serve the Chinese multinationals that are heading into the region seeking hydrocarbons and infrastructure contracts. Continue reading »
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