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(MENAFN – Arab News) Astounding progress has been made on the vision to transform the Middle East into a global crossroads – a diversified economic and transportation hub, with cities such as Dubai, …

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Demand for aviation personnel in Mideast: Challenge and opportunit

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Air China “Phoenix Miles” Members Journey to Dubai

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Air China "Phoenix Miles" Members Journey to Dubai

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London Business Forum relocates HQ to Dubai

May 16, 2011

London Business Forum relocates HQ to Dubai

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Superclick Networks to Open Middle East Office, Initiative Managed by Regional Industry Leader

April 28, 2011

MONTREAL–(Marketwire – Apr 28, 2011) – Superclick, Inc. ( OTCBB : SPCK ), a technology leader in IP infrastructure solutions to the hospitality industry, has announced plans to open a regional office in Dubai, UAE as part of its growth strategy to scale its presence worldwide. Superclick Networks currently has offices in Canada and the US with this new location to provide the strategic hub for commercial, deployment and support initiatives within the Middle Eastern region.

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Libyan Opposition Strikes Oil Deal

April 1, 2011

BENGHAZI, Libya — A plan to sell rebel-held oil to buy weapons and other supplies has been reached with Qatar, a rebel official said Friday, in another sign of deepening aid for Libya’s opposition by the wealthy Gulf state after sending warplanes to help confront Moammar Gadhafi’s forces. It was not immediately clear when the possible oil sales could begin or how the arms would reach the rebel factions, but any potential revenue stream would be a significant lifeline for the militias and military defectors battling Gadhafi’s superior forces. Rebel units were pushed back about 100 miles (160 kilometers) this week along the Mediterranean coast, but still held parts of oil-rich eastern Libya and the key city of Benghazi. In recent clashes, rebels displayed more firepower including mortars and rockets, but remain significantly outgunned. Ali Tarhouni, who handles finances for the opposition’s National Transitional Council, said that Qatar has agreed to market oil currently in storage in parts of southeastern Libya. He said one sticking point is how to truck the oil out of the country. Tarhouni said money from oil sales will be put into an escrow account the opposition will use to pay for weapons, food, medicine, fuel and other needs. He said the rebels had asked visiting U.N. and French envoys to have sanctions lifted on the parts of Libya controlled by the rebels. He said that if transport issues are solved, the rebels could immediately start exporting 1 million barrels per week. When asked, he said the rebels would certainly use oil revenues to buy arms. “People are dying,” he said. He said the council was exploring “buying arms, any kind of arms that we can get to. We have a list of the arms we need and we’re trying some different fronts to buy them. There was no immediate comment from officials in Qatar, one of the few Arab states taking part in the international military contingent enforcing a no-fly zone in Libya. Qatar is also assisting a rebel satellite TV operation that began broadcasts this week from Qatar’s capital Doha and has agreed to host a meeting of Libyan opposition groups. A spokesman for Qatar Petroleum, the state company responsible for selling the Gulf nation’s oil, declined to comment. In London earlier this week, Britain’s foreign secretary, William Hague, said Qatar had offered to “facilitate” oil sales that are consistent with international law. Hague did not provide details about who would be supported, how the facilitation process would work, or how Qatar’s offer has been received by diplomats. It has been unclear how exactly such an arrangement would work. The effort to get oil out is hampered by several factors, including the rebels’ ability to hold eastern oil production and export facilities, the departure of skilled foreign oil-field workers and international sanctions that technically apply to the country as a whole. OPEC member Libya produced about output of 1.6 million barrels per day of oil before the conflict, just under 2 percent of world production. Qatar – host of the U.S. Army’s Middle East command hub – has significantly boosted its international profile in recent years with diplomatic initiatives and top-level sporting events, including being picked to host the 2022 World Cup. The 22-member Arab League was critical in winning U.N. Security Council support for the no-fly zone. But only Arab League members Qatar and the United Arab Emirates have contributed aircraft to the mission. Qatar also has agreed to host the first meeting of an international contact group aimed at coordinating political action and opening channels with Libya’s opposition. No date for the meeting has been set. A Qatari aid plane carrying 30 tons of relief supplies including medicine, medical equipment and blankets landed in the Libyan city of Tobruk on Wednesday, according to the official Qatar News Agency. Last month, Qatar sent ground troops to join a Saudi-led force aiding the rulers in Bahrain, which has been wracked by anti-government protests and violence for more than six weeks. In the Arab world, however, Qatar may be best known as the headquarters for the powerful Al-Jazeera broadcasting network, which was founded by the country’s rulers in 1996. A Libyan rebel spokesman, Mahmoud Shamam, said a satellite channel, Libya TV, began broadcasts from Doha earlier this week with financial and logistical support from Qatar. A top rebel official, Mustafa Abdul-Jalil, offered a cease-fire Friday if Gadhafi pulls his military forces out of cities and allows peaceful protests against his regime. ___ Associated Press writers Adam Schreck and Brian Murphy in Dubai, United Arab Emirates, contributed to this report.

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Video: Hussain Says `Worst Fears Are Coming True’ in Bahrain

March 16, 2011

March 16 (Bloomberg) — Abdul Kadir Hussain, chief executive officer at Mashreq Capital in Dubai, talks about the potential conflict of interests between Saudis and Iranians in Bahrain and its implications for investors. He speaks with Francine Lacqua on Bloomberg Television’s “On The Move.”

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Video: Mashreq’s Hussain Sees `Big Risk’ of Mideast Debt Exodus: Video

February 21, 2011

Feb. 21 (Bloomberg) — Abdul Kadir Hussain, chief executive officer at Mashreq Capital DIFC Ltd., talks about investor confidence in the Gulf region and the outlook for Bahraini debt amid protests against the ruling Al-Khalifa family. ¶ He speaks with Linzie Janis from Dubai on Bloomberg Television’s “Global Connection.” Mashreq oversees $200 million in bonds including Bahraini debt.(Source: Bloomberg)

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Video: Hegazy Says Egyptians Expect Elections in 6-12 Months

February 11, 2011

Feb. 11 (Bloomberg) — Ashraf Hegazy, executive director of the Dubai Initiative at Harvard University, talks about the outlook for Egypt’s government following the resignation of President Hosni Mubarak. Hegazy, speaking with Tom Keene on Bloomberg Television’s “Surveillance Midday,” also discusses the outlook for capital flows into Egypt. (Source: Bloomberg)

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Video: Traffic Back on Cairo Streets as Egyptians Seek Normalcy

February 7, 2011

Feb. 7 (Bloomberg) — Bloomberg’s Lara Setrakian reports from Dubai on the reopening of businesses in central Cairo after two weeks of protests against President Hosni Mubarak’s regime. She speaks with Francine Lacqua on Bloomberg Television’s “On The Move.”

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Muslims Targeted In $30M Ponzi Scheme

November 18, 2010

CHICAGO — A taxi driver turned prominent businessman in Chicago’s South Asian community is among three people indicted for defrauding hundreds of Muslim investors out of $30 million, in part by promising that investments complied with Islamic law, federal prosecutors said Wednesday. Salman Ibrahim, 37, who vanished in 2008 after allegedly persuading hundreds of Pakistani and Indian immigrants to contribute their savings and mortgage their homes to finance real estate deals, is believed to be abroad, possibly in his native Pakistan, the U.S. Attorney’s Office in Chicago said. The FBI is trying to locate him. One alleged victim, Fazal Mahmood, said he lost more than $200,000, some of which he intended to use to put his two daughters through college. “I will never trust anyone with my money again,” the 54-year-old told The Associated Press. “I’m a Muslim and he’s a Muslim. I was always taught … a Muslim will never cheat another Muslim.” The other two men indicted were Mohammad Akbar Zahid, 59, who investigators believe also fled the U.S., and Amjed Mahmood, 47, of Des Plains, a Chicago suburb. Mahmood, who isn’t related to Fazal Mahmood, has not been arrested but is expected to be arraigned soon, U.S. Attorney’s Office spokesman Randall Samborn said. A phone message left Wednesday for a Amjed Mahmood in Des Plaines wasn’t returned. Prosecutors allege that Ibrahim, the majority owner of the now-bankrupt Sunrise Equities Inc., along with Zahid and Mahmood, who were part owners, told investors they would not be paid interest, which is prohibited by Islamic law. Instead, they were told they would share profits from real estate projects, according to the indictment. More than 300 investors nationwide fell victim and three banks lost more than $13 million after the alleged Ponzi scheme collapsed in 2008, the indictment alleges. Such schemes use new investors’ money to pay previous investors. Ibrahim and Zahid face bank fraud and other charges, while Amjed Mahmood is charged with conspiracy to commit mail, wire and bank fraud. Each fraud count carries a maximum penalty of 30 years in prison. The indictment also seeks forfeiture of more than $43 million. Before he disappeared, Ibrahim lived in a bustling South Asian enclave on Chicago’s North Side that has a large Muslim population. The neighborhood hugs Devon Avenue, where men often wear knee-length shirts and caps, many women cover their heads and Urdu is spoken as often as English. The indictment accuses Ibrahim of misusing investor money to, among other things, operate an Islamic school to enhance his reputation in the community. During a 2008 meeting, Ibrahim told investors that his Chicago-based Sunrise Equities needed more than $1 million to continue. They knew at the time that Sunrise had expended nearly all investor funds and couldn’t recover more than $40 million owed to investors, according to the indictment. “He said, ‘Trust me, trust me,’” Fazal Mahmood, one of the victims and a Pakistani immigrant, recalled. “And people were willing to help.” But within weeks, Ibrahim disappeared. “A lot of people lost their homes, they went through divorces – some lost their kids,” said Mahmood, a suburban Chicago engineer. “All their dreams have shattered.” Mahmood said he first invested $50,000 after a friend vouched for Ibrahim, and for three years received an 18 percent return. In 2007, Mahmood said Ibrahim persuaded him to borrow $200,000 against his home in return for an unsecured promissory note that was never paid. Those who knew Ibrahim said he put himself through college by driving a taxi. He graduated from Northeastern Illinois University in Chicago with an accounting degree in 1997. Ibrahim was a member of the Shariah Board of America, a group of Islamic clerics in the Chicago area that advises Muslim investors. The board certified Sunrise Equities as conforming to an Islamic law, or Shariah, that prohibits Muslims from earning interest on investments. What irks Mahmood the most is not that Ibrahim could, if he’s never found, evade justice in the U.S. It is that some of the rumors swirling in his old Chicago neighborhood. “Some people say he is living well somewhere, maybe in Dubai or Pakistan,” he said. “It makes me angry that he might be living a good life somewhere.”

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Sultan Sooud Al-Qassemi: Entrepreneurial Arabs Will Make it Better for the Next Generation

November 16, 2010

The first few days of November have quickly become known as Entrepreneurship Week in Dubai. The Dubai School of Government kicked off the week with a panel on women’s entrepreneurship in the Gulf, featuring leading businesswomen from Abu Dhabi, Dubai and the region. The next day at the Young Arab Leaders Entrepreneurship Summit, cross-generational leadership was represented, with Sheikh Mohammed bin Rashid, the Prime Minister and Ruler of Dubai, and his son Crown Prince Sheikh Hamdan attending. The youth summit, which I was involved in organising, was a who’s who of Arab business leaders, including Rabea Ataya, the founder of Bayt.com . Habib Hadad, the founder of Yamli.com , Ihsan Jawad, the founder of Zawya.com , Dr Naif al Mutawa, the creator of The 99 comics, and Sheikh Khaled bin Zayed, the founder of the Bin Zayed Group. The list of Emirati and regional guiding lights in entrepreneurship goes on and on. But perhaps the most important element among the 500 or so attendees were the scores of students and aspiring entrepreneurs who were there to learn from those who had gone before. The week was capped with what will be viewed as a day of historic transformation in the world of Arab entrepreneurship. Led by Arif Naqvi, the chief executive of Abraaj Capital, and Fadi Ghandour, the chief executive of Aramex, more than 2,000 budding and established entrepreneurs congregated for the Celebration of Entrepreneurship 2010. At the event, Wamda.com , which means spark in Arabic, was launched as a meeting place for the region’s entrepreneurs. (watch video: Impressions of CoE which ends with my quote) The truth is that Arabs are sick and tired of hearing of the trouble that regional governments’ failed policies have got us into. Arabs are now ready to do something about it. According to UNDP estimates, 50 million jobs (some say 100 million) need to be created in the Middle East by 2020 just to prevent unemployment from growing even worse. Harbour no allusions that Arab governments will be able to create these tens of millions of jobs: only the private sector and entrepreneurship have the potential. Everyone was there for one common goal: instilling the spirit of entrepreneurship in young Arabs. The same podiums were shared by the likes of Naguib Swairis, the founder of Orascom Telecoms, and a pair of brilliant teenage Yemeni students who have started a new coffee-producing business. Their plans are no less grand than ridding their country of the menace of qat and bringing back coffee as an agricultural earner of foreign exchange. Indeed, we are desperate for grand ideas. We need ideas that will allow the Arab world to make a giant leap into the present, rather than linger in the era of bygone policies. A consensus was reached at the conference: the fragmented approach that Arab governments have taken will not work. It is simply not good enough for one country to create jobs while others lag behind. When Europe rose out of the ashes of the Second World War, it was not because Germany or France competed or worked in isolation; it was largely because of their joint effort to establish the European Coal and Steel Community, the precursor to the European Union. Arab governments need to understand that without pan-Arab initiatives, true economic prosperity will not be achieved. We must capitalise on our demographic strengths as a region with a population larger than the United States and comparable to the European Union. It is no coincidence that Maktoob.com , recently sold to Yahoo! for more than $100 million (Dh367 million), garnered so much global attention. After all, it was always a pan-Arab, not just a Jordanian firm. The Celebration of Entrepreneurship 2010 featured ministers such as Sheikha Lubna Al Qasimi and Reem al Hashimi, entrepreneurial legends including Samih Touqan and Fadi Ghandour, and ambitious young people all voicing their concerns and sharing their aspirations. One day we will look back on a few days in November, when thousands of young, aspiring leaders came together and believed in what seemed to be impossible: things will be better for the next generation of Arabs. Through entrepreneurship, one person’s fledgling business of today will become the transnational corporation of tomorrow. Yes, these are lofty goals, but even Thomas Edison’s ideas started with a spark. This article first appeared in The National on Sunday 14th November 2010

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Video: Chertoff Calls Planes `Major Threat Vector’ for Al-Qaeda

October 29, 2010

Oct. 29 (Bloomberg) — Former Department of Homeland Security Secretary Michael Chertoff talks about security measures for passenger and cargo aircraft, and the interception of two packages containing explosives that were shipped from Yemen and directed to Jewish institutions in Chicago. President Barack Obama said the packages represent a “credible terrorist threat” against the U.S. The discovery, made by authorities in the U.K. and Dubai, triggered an examination of air-cargo flights in the U.S. today. Chertoff speaks with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

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Battery Safety Fight: Pilots Take On Big Business After Deadly Crash

October 27, 2010

WASHINGTON — Safety advocates have warned for more than a decade that someday an air shipment of lithium batteries like those used in cameras, cell phones and countless other products would catch fire, causing a plane to crash and people to die. That day may have arrived last month. A United Parcel Service cargo plane with a fire raging on board, and carrying a large quantity of lithium batteries, crashed near Dubai in the United Arab Emirates on Sept. 3, killing both pilots. The cause of the accident isn’t likely to be determined for months, but investigators suspect the batteries were either the source of the fire or contributed to its severity. The Federal Aviation Administration was concerned enough by the accident to warn air carriers about risks posed by lithium battery shipments. ___ EDITOR’S NOTE – An occasional look at how behind-the-scenes influence is exercised in Washington. ___ The accident has given new urgency to a high-stakes lobbying struggle under way in Washington. Pilot unions and safety advocates are urging the government to treat air shipments of lithium batteries as hazardous materials. But rules proposed by the Obama administration are opposed by many of the nation’s top retailers, electronics manufacturers, battery makers and cargo airlines, including UPS. They say the rules would cost them hundreds of millions of dollars in added packaging, paperwork and training for employees. The rechargeable battery industry alone says the rules would cost more than $1 billion in the first year. The makers of medical devices say the rules might mean delays in getting equipment to patients, and one electronics lobbyist even portrayed the proposal as a holiday Grinch that could drive up the cost of gift shipments. “The cost of expedited delivery to stores could become prohibitive and could ruin a lot of Christmases for children,” Christopher McLean, executive director of a retailers coalition that includes Amazon.com, Best Buy, Radio Shack, Target and Wal-Mart, told Transportation Department officials at a meeting earlier this year, though that’s unlikely this Christmas. Industry lobbyists say the government already has enough rules to ensure safe battery shipments; they say the problem is that a relative few shippers aren’t following current packaging requirements. They recommend stronger enforcement. Indeed, many of the more than 40 documented incidents of lithium battery fires in flight or at airports involved improperly packaged or handled batteries. George Kerchner, a lobbyist for the rechargeable battery industry, wrote Transportation Secretary Ray LaHood last month asking him not to let the Dubai crash cause regulators to rush put new rules in place. “We urge that any actions taken by DOT be justified by facts, not speculation or political pressures,” Kerchner wrote. “They also should be narrowly drawn to minimize disruption of commerce in a holiday season that will be critical to the nation’s economic recovery.” A bill that would prod DOT to move faster on new rules is opposed by industry supporters in Congress. Pilots and safety advocates say the industry opposition is typical of the hurdles they face when trying to get government regulators to take action to prevent a tragedy even when there is clear evidence of danger. “All regulation eventually gets written in blood because it takes something catastrophic to get anything done,” said Russ Leighton, safety director for the International Brotherhood of Teamsters’ airline division. “In this case, only two people died, and it wasn’t a huge media story, so we’ll probably have to wait till 300 people do die before there’s any change.” Safety experts point to the 1996 ValuJet crash in the Florida Everglades that killed all 110 people aboard. The cause of the accident was a fire started by improperly shipped oxygen canisters in the cargo hold. The National Transportation Safety Board said the Federal Aviation Administration shared blame for the accident because the agency failed to implement earlier recommendations that cargo holds on passenger planes be required to have either smoke detectors or fire-suppression systems. The requirements were put in place after the crash. Lithium batteries are “a big safety concern,” said Bob Chipkevich, a former head of NTSB’s hazardous materials division. “I don’t think we need to wait for a major accident with multiple fatalities to move forward.” Fire broke out four years ago in cargo containing lithium batteries and other goods on a UPS plane. The plane made an emergency landing in Philadelphia and no one was killed. The cause of the fire wasn’t determined, but batteries were suspected. Afterward, the NTSB recommended all cargo compartments on cargo-only planes have fire suppression systems. The FAA rejected that recommendation, saying it would be too expensive. In the recent UPS accident, a fire erupted in the Boeing 747-400′s main cargo compartment – the same part of the plane as the passenger compartment on passenger-carrying planes – within a half-hour after takeoff from Dubai. The compartment didn’t have a halon gas fire suppression system. The flight’s two pilots, racing to return to Dubai, radioed that smoke was so dense in the cockpit they couldn’t read their instruments or change radio frequencies. Unlike other kinds of batteries, some lithium batteries contain metal that will spontaneously ignite if exposed to air. Also, the positive and negative poles in some lithium batteries are close together, leading more easily to short circuiting, which can cause a fire. Lithium batteries come in two types: lithium metal, which are nonrechargeable and are used in products like watches and cameras, and lithium-ion, which are rechargeable and are used for products like laptop computers, cell phones and power tools. Both can short circuit and ignite if they are improperly packaged, damaged or have manufacturing defects. Batteries contained in devices can also overheat and ignite if the device inadvertently turns on. Overheated lithium batteries can blow the lids off steel shipping containers with enough force to damage a plane. Once a battery catches fire, the heat can set off other batteries. The halon gas fire suppression systems required in the cargo compartments of passenger planes don’t work on fires caused by lithium metal batteries. Shipment of lithium metal batteries is already prohibited on passenger planes, but not cargo planes. There is also concern that if a large quantity of lithium-ion batteries was to ignite, it could overwhelm a halon suppression system. Lithium-ion battery fires can reach 1,100 degrees, close to the melting point of aluminum, a key material in airplane construction. Lithium-metal battery fires are far hotter, capable of reaching 4,000 degrees. The Air Line Pilots Association has asked LaHood to ban air shipments of all lithium batteries until new rules are implemented. “It’s difficult to know what caused the (Dubai) fire, but it really doesn’t matter because we know that a fire did break out on that airplane and the situation quickly became uncontrollable,” said Mark Rogers, ALPA’s hazardous materials chairman. “We had what was possibly a live demonstration of what can happen if batteries are exposed to fire.” ___ Online: Federal Aviation Administration http://www.faa.gov Department of Transportation http://www.dot.gov

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Sultan Sooud Al-Qassemi: The Sponsorship System Is on the Wrong Side of History

October 18, 2010

A few years ago, I met up with an Emirati friend whom I hadn’t seen since my high-school days. We exchanged the usual greetings and asked one another where our careers had led us. My friend pulled out and unfolded his colorful business card, which included at least two dozen logos of businesses on the front and back that he was the “owner’ of. I was barely able to make out his name on the card. Strangely, all the businesses were named after British towns: Bristol mobiles, Manchester carwash, Oxford cafeteria — the list went on. At first, I was quite impressed. I had only started two businesses by then, a small photography studio and a brokerage firm that took me close to two years to set up. How did he manage to accomplish such an extraordinary feat? He later told me that he “discovered a system” in which all he had to do was offer sponsorship services to expats wanting to reside in the UAE. UAE law obliges expatriates who care to reside and do business in the country to either do so through a partnership with a UAE national in which the expat can own up to 49 per cent, or through a sponsorship system that allows the expat to own the entire business, though not on paper, provided they pay a fee to a UAE national. This fee can range from as low as a thousand dirhams a year and go up to several hundred thousand, depending on the size of the business. This sponsorship system is on the wrong side of history. If the federal government doesn’t end it, then international labor laws will probably do so. Bahrain has taken the brave step last year and removed this disagreeable system completely. Even bureaucracy-prone Kuwait recently announced that on the 20th anniversary of their liberation from Saddam’s occupation next February, they too will liberate the foreign workers from an outdated 19th century bondage system. And yet the UAE, traditionally the pioneering Arab Gulf state, has only come out in support of it through official statements. Often the “special circumstances” of the UAE are evoked, since the population of nationals is somewhere below 20 per cent of total residents. This makes it even more necessary to reform expatriate labor regulations that are frankly full of loopholes as they stand today. What is interesting is that the local governments have recognized the drawbacks of the sponsorship system as early at the 1970s, when Dubai founded the hugely successful Jebel Ali Free Zone. Today, there are dozens of free zones in the UAE under various names that allow foreign businessmen to set up companies, provided they don’t operate within the UAE non-freezone districts. Although businesses have found solutions and loopholes to bypass the outdated sponsorship system individually, collectively they are unable to take the giant step and reform the system. I therefore suggest that the UAE government takes the initiative and establishes an Emirates National Residency Authority to handle all forms of sponsorship. This government body can establish a standardized fee structure for expats who want to start a business in the UAE. The fees can be put into a fund that assists needy Emirati families. This authority can also be the sole issuer of visas for domestic workers. UAE nationals wishing to employ foreign workers can approach this body and submit the necessary documents to them. The authority can even extend longer-term visas to those investing a substantial amount of money in the country and those who employ a large number of UAE nationals. This will also provide assurances to workers. Local companies will not have to keep the passports of their employees since they will not have reason to do so. Like the Bahrain model, employees wouldn’t have the right to switch jobs until they honor the contract time period. The truth is that the existing sponsorship system in the UAE breeds complacency and suffocates innovation among nationals who find it an easy way to make income. It also is a barrier towards the free movement of labor within the UAE, which is a requirement for any competitive, meritocratic society, as it allows market forces to determine the value of one’s skills. Finally, the existing sponsorship system may be regarded as a reason behind the relatively large population of eight million in the UAE. Like my friend, some nationals will not shy away from sponsoring large numbers of expats regardless of what skills they possess, as long as they are paid an annual fee. Reforming the UAE labor laws, starting with the outdated sponsorship system, is very much a challenging task. It may also be unpopular. But it is necessary and overdue. This article first appeared in The National on Sunday 17th October 2010.

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Video: Tattersalls Auction Draws Buyers as Sheikh Cuts Spending

October 11, 2010

Oct. 11 (Bloomberg) — Bloomberg’s Olivia Sterns reports on Europe’s biggest auction of young racehorses at Tattersalls in Newmarket, England, where sales are an important gauge of confidence in a sport dominated by Sheikh Mohammed bin Rashid Al Maktoum of Dubai and Irish millionaires John Magnier and J.P. McManus. Sheikh Mohammed cut his spending on young horses at the auction last week by more than 60 percent.

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Video: Dubai Ruler Says ‘We Are Back’ After Debt Accord: Video

September 27, 2010

Sept. 27 (Bloomberg) — Dubai ruler Sheikh Mohammed Bin Rashid Al Maktoum discusses the emirate’s recovery from a debt crisis involving state-controlled holding company Dubai World. He spoke with Bloomberg’s Margaret Brennan at the FEI World Equestrian Games in Lexington, Kentucky, yesterday. Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum also speaks. (Source: Bloomberg)

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April Rudin: Connecting with the Wealthy Through Social Media: Can You Reach a Luxury Box From the Bleachers?

September 24, 2010

Something I once read likened the lives of high net-worth individuals to all others attending a sports event. Although some fans are in the bleachers while others are in luxury boxes, everyone is watching the same game at the same time. How to “upgrade” your seat? Understanding the rules of the high net-worth space are easy. Exclusivity and privacy prevail. That said, it is easy to understand why there has been a reluctant migration to social media sites for high-net worth individuals. While “mainstream” social networking sites have become commonplace for the fans in the bleachers, the trickle down from social networking sites to the high net-worth has been slow for the most part. According to Milton Pedraza, CEO of the Luxury Institute, “Its taken a while for wealthy consumers to be using networking sites, mostly due to privacy issues and concerns.” Luxury Institute is a NYC-based research firm which focuses on high net-worth individuals. Pedraza goes on to say, “Now they want to leverage all of those social-networking advantages. In the past, most needed to attend many annual international meetings but now they can connect to like-minded people in Dubai or anywhere in the world in an instant.” Peer-to-peer insight is available for the high net-worth on exclusive websites such as: A Small World, or Quintessentially. There is also a growing number of private member forums such as Institute of Private Investors (IPI) Memberlink . These like-minded subscribers are looking to exchange information on advisers, fees, tax strategies, insurance/legal matters, succession planning, and any number of lifestyle topics such as luxury travel, entertainment, family governance issues, etc. Even areas formerly clandestine like private equity and venture capital have ventured in to the social media area due to the ability to grease the dealflow pipeline to allow investors and money to “meet-up” in a vetted forum. It allows for more targeted funneling of investment money to be allocated to specific deals. David Teten and Chris Farmer report in the June Issue of Harvard Business Review that social media is a “best practice” among more than 150 venture capital and private equity firms surveyed. More and more specialty sites are starting up to link the affluent with a variety of service providers and other like-minded people. Striking the balance between the two and coming up with a successful revenue model without “selling” out your members is key. Some firms have annual fees to forego accepting advertising. And others accept fees for referrals, etc. If any of you reading through this article is thinking of joining any of these groups, remember that you probably have to know someone who matters. For some sites, you need a recommendation from a member and others you must complete a rigorous vetting process. These sites spend a tremendous amount of time selecting the right members as those are the gate-keepers for the next group of invitees and so on. As usual, you can tell them “April sent you” although you may be asked, “April who?”

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George Soros Buys Stake In Bombay Stock Exchance

August 23, 2010

THE DEAL: Billionaire George Soros’ Quantum hedge fund has purchased Dubai Financial Group’s 4 percent stake in the Bombay Stock Exchange. The deal values Asia’s oldest exchange at over $800 million. THE BACKDROP: Soros’ investment comes as India works to modernize its capital markets, opening new exchanges, streamlining trading and introducing new products, like currency futures. With retail stock ownership still low and a booming economy, India’s stock markets are of increasing interest to foreign investors. THE EXCHANGE: Brokers own 44 percent of the BSE, with public shareholders controlling the rest. The BSE had 4,990 listed companies as of July and a market capitalization of $1.4 trillion, according to its website.

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Video: Austrian Developer Sees Dubai Sands as Stable Investment

August 3, 2010

Aug. 3 (Bloomberg) — Bloomberg’s John Cookson reports on Dubai’s manmade archipelago known as “The World”. With the exception of a palace built by Dubai ruler Sheikh Mohammed Bin Rashid Al-Maktoum on “Greenland,” all of the approximately 300 islands in The World have remained undeveloped since Nakheel finished creating them in January 2008.

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Dr. Rachel Ehrenfeld: Dubai: The Golden Mirage

July 28, 2010

The ongoing ordeal of a U.S. businessman who has been rotting in a Dubai jail for more than two years, deprived of his civil rights, should serve as a warning to Americans and Westerners alike doing business with Dubai, a constituent monarchy of United Arab Emirates (UAE). Shahin, a U.S. citizen, is just one of many foreigners who make up 80-95% of Dubai’s 2.3 million residents. Until his arrest, Shahin was CEO of Deyaar Realty, once Dubai’s second largest real estate developer, which, like Dubai’s entire real-estate sector, was hit hard by the global economic recession. Shahin was arrested without warrant or indictment in March 2008. Sources familiar with the case reported that he was held incommunicado for over two weeks, while his house and office were ransacked and his documents confiscated. He was deprived of food, water, sleep and access to a toilet for days. The brutality inflicted on Shahin caused his poor health to worsen, requiring him to undergo two major surgeries. After thirteen months he was charged with bribery, fraud and embezzlement Shahin was forced to sign documents he did not understand, because of threats that his wife will be jailed and his children will be sent to a shelter. When finally “released” on bail, Shahin was promptly rearrested on newly trumped-up charges and still languishes in jail. Meanwhile, the Dubai government and its autocratic ruling family have ignored entreaties by the State Department, the U.S. Ambassador and members of Congress to discuss Shahin’s plight. A letter from Senator Sherrord Brown (D-OH) to UAE’s Ambassador asking him to intervene to ensure Shahin’s health and safety while in prison remains unanswered nearly two years since it was delivered. Shahin’s Kafkaesque detention is not unusual in Dubai, where a growing number of foreigners are being subjected to the country’s arcane Islamic legal codes and stripped of Western consideration for civil and human rights. The U.S. Department of State 2009 Human Rights Report for U.A.E., states: “while the constitution prohibits arbitrary arrest and detention… there were reports that the government held persons in official custody without charge or a preliminary judicial hearing…[and] There were also reports of prison guard brutality.” Moreover, the report notes: “court decisions remained subject to review by the political leadership.” Other victimized foreigners are Canadians Karen and Daniel Andrews. The husband, Daniel, a senior executive at a multinational company, was lured to Dubai in 2005 by the promise of “paradise in the desert.” They had a rude awaking when they lost everything. In a sobering account in The Independent , in April 2009, on “The Dark Side of Dubai,” Karen noted, “The thing you have to understand about Dubai is — nothing is what it seems. Nothing. This isn’t a city, it’s a con-job. They lure you in telling you it’s one thing — a modern kind of place — but beneath the surface it’s a medieval dictatorship.” These accounts are far from revealing the full array of substantive and procedural violations of due process and of basic decency Dubai has perpetrated on Shahin, the Andrews, and many other foreigners. Lured by the glitzy façade, Westerners have not been contemplating the Emirate’s lack of transparency and its growing abuse of foreigners. The number of foreign businessmen detained in Dubai is unknown, as the local authorities do not release such information. But media reports from Europe, the U.S., and other countries that supply the bankers, businessmen, engineers and others who labor to further Dubai’s riches, reveal that such arrests have spiked since the Emirate’s economic bubble burst in 2008. Foreigners should be especially wary, as Dubai’s banking and economy are still on the decline, contrary to repeated assurances from local officials. The UAE is now wallowing in a staggering debt of $109.3 billion. On June 3, Moody’s downgraded Dubai’s Central Bank foreign and local currency rating, “reflecting the weakening of the Bank’s strength as a result of the ongoing credit issues surrounding the Dubai corporate sector,” noting the decline “in earning capability” for the Bank and all its Dubai-based competitors. Still, Dubai’s Western trappings and its well-crafted façade of the golden city in the desert continue to lure foreigners. But like every Arabian Desert mirage, many wake up with a mouthful of sand, and their life in shambles.

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Video: Gucci Hotel in Dubai Draws Gucci Fashion House Lawsuit

June 25, 2010

June 25 (Bloomberg) — Bloomberg’s Heidi Couch reports on Elisabetta Gucci’s plans to open a hotel in Dubai, the first of a chain of 40, and the legal action taken by PPR SA’s Gucci fashion house to protect its label.

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Dubai Stocks Gain Most in 10 Weeks as Mideast Shares Rally on Europe, Oil

June 20, 2010

By Zahra Hankir June 20 (Bloomberg) — Dubai’s benchmark stock index rose the most in 10 weeks and Egyptian shares gained, leading a rally in Middle East markets on growing confidence that Europe will contain its debt crisis. Oil gains boosted Gulf shares. The DFM General Index jumped 3.1 percent, the most since April 11, to 1,547.13, led by Emaar Properties PJSC , the biggest stock in the gauge. The builder of the world’s tallest skyscraper surged 8.6 percent after selling its Hamptons International unit to Countrywide Plc. Egypt’s EGX 30 Index increased 1.6 percent to 6,519.09 as Telecom Egypt , the largest fixed-line telephone company in the region, gained 2.2 percent. The TA-25 Index of Israeli equities advanced 1.5 percent at 3 p.m. in Tel Aviv. Sentiment improved after European Union leaders agreed on June 17 to disclose how banks perform on stress tests to show investors that the financial system can withstand shocks. The Stoxx Europe 600 Index gained for a fourth week, the longest stretch of weekly gains since April. Crude oil rose to $77.18 a barrel on the New York Mercantile Exchange on June 18 for a weekly gain of 4.6 percent. The six nations of the Gulf Cooperation Council supply about a fifth of the world’s oil. “We’re firmer in the region as the international backdrop is decent,” said Ali Khan , head of cash-equity trading at Dubai-based Arqaam Capital Ltd. “Oil is moving toward the top of its trading range.” Global stocks advanced for a second straight week, with the MSCI World Index of developed nations rising 3.2 percent and the MSCI Emerging Markets measure advancing 4 percent. The Standard & Poor’s 500 Index had its biggest two-week rally since November, after New York-area manufacturing expanded. Flexible Yuan The euro strengthened for a second straight week against the dollar, climbing 2.3 percent to $1.2388. China said yesterday it will allow more flexibility in the yuan, signaling an end to the currency’s two-year-old peg to the dollar a week before a Group of 20 summit. Emaar soared the most since March 25 to 3.30 dirhams after declining 1.3 percent earlier in the session. Countrywide, a U.K. realtor and property services company, will own the rights to operate Hamptons’s business in the U.K., Europe and Asia, Emaar said on June 17. The Dubai company will operate Hamptons in the Middle East and North Africa. “As soon as some significant bids were seen on large-cap names, the retail buyers saw this as a signal to re-enter the market,” said Julian Bruce , director of equity sales at EFG- Hermes Holding SAE. “Due to low volumes overall the upside move has been exaggerated.” Constrained Volume A total of 179 million shares traded on the Dubai exchange, compared with the six-month daily average of 200 million. Telecom Egypt rose to 17.31 Egyptian pounds, the highest this month after the company said it will pay a dividend of 55 piasters a share on June 30. Qatar’s QE Index gained 0.6 percent to the highest in a month. The Qatar Investment Authority, the Doha-based sovereign wealth fund, agreed to invest $2.8 billion in Agricultural Bank of China Ltd.’s initial public offering, according to two people with knowledge of the matter. The $58 billion fund signed an agreement with Agricultural Bank on June 17, the people said, declining to be identified because the deal is private. The TA-25 gains were led by Bezeq Israeli Telecommunication Corp.’s 3.2 percent advance. Kuwait’s gauge rose 0.9 percent, the most in almost two weeks. Oman’s index advanced 0.4 percent, while Bahrain’s closed little changed at 1,392.48. Abu Dhabi’s ADX General Index rose 0.8 percent, as did Saudi Arabia’s Tadawul All Share Index. Israeli government bonds were little changed with the benchmark Mimshal Shiklit due February 2019 rising 0.12 shekel to 112.42. The yield dropped one basis point to 4.51 percent. The shekel declined 0.2 percent to 3.8307 against the dollar on June 18. To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net or

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Middle East Shares Advance, Paced by Israel, Qatar, Buoyed by Global Rally

June 13, 2010

By Zahra Hankir and David Wainer June 13 (Bloomberg) — Israel and Qatar shares led Middle East markets higher after global stocks rallied as concern about Europe’s debt crisis eased and the U.S. Federal Reserve said the American economic recovery is intact. VeriFone Systems Inc. jumped the most in more than nine months after the Israeli provider of electronic payment technology was raised to “strong buy” at Raymond James & Associates Inc. Israel’s TA-25 Index increased 1.2 percent to 1,103.36, the highest level this month. In the Gulf, Doha’s QE Index gained 1 percent to 6,920.48, the highest level since May 24 and in North Africa, Egypt’s EGX 30 Index gained 0.9 percent. “Local markets tend to follow global trends,” said Ziad Dabbas , a financial analyst at National Bank of Abu Dhabi PJSC , the United Arab Emirates’ second-largest lender by assets. “Today’s movements are following positive global closes toward the end of last week, as they improved investor sentiment.” U.S. stocks rose last week, pushing the Standard & Poor’s 500 Index to the biggest weekly advance since March, after Federal Reserve Chairman Ben S. Bernanke said the economic recovery is intact and commodity prices gained. European stocks gained for a third week as economic reports and a successful government bond sale in Spain boosted investors’ confidence. Bonds Advance Dubai’s DFM General Index rose 0.9 percent, the most since June 2, to 1,528.4. Arabtec Holding PJSC , the United Arab Emirates’ biggest builder, climbed 2.1 percent, the most in almost a week, to 1.97 dirhams. Ziad Makhzoumi , the company’s chief financial officer, said in Beirut on June 10 he expects cash flow to improve now that the Dubai government is helping developer Nakheel PJSC pay its bills to contractors. VeriFone rose 7.7 percent to 75.30 shekels. Raymond James & Associates set the 12-month price estimate for the company at $25 per share. The shares closed at $20.06 on June 11 in New York. Abu Dhabi’s ADX General Index advanced 0.6 percent and Oman’s index rose 0.3 percent, gaining for a fourth day. The Kuwait Stock Exchange Index increased less than 0.1 percent while Bahrain’s gauge fell 0.2 percent. Saudi Arabia’s Tadawul All Share index slipped 0.3 percent after gaining 2.7 percent yesterday. Israeli government bonds advanced with the benchmark Mimshal Shiklit note due February 2019 increasing 0.11 shekel to 111.96. The yield fell one basis point to 4.55 percent. The shekel traded at 3.8532 per dollar on June 11. — With assistance from Ronit Goodman in Tel Aviv. Editors: Susan Lerner , Shanthy Nambiar To contact the reporters on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net or David Wainer in Tel Aviv at dwainer1@bloomberg.net

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Mideast Shares Decline on Oil, U.S. Growth Doubts Israeli Bonds Advance

June 6, 2010

By Dana El Baltaji and David Wainer June 6 (Bloomberg) — Dubai shares dropped, leading a decline in Middle East markets, as crude oil tumbled and lower- than-estimated U.S. jobs growth fuelled concern the global economic recovery will slow. Government bonds rose. Emaar Properties PJSC, the developer of the world’s tallest skyscraper, fell to the lowest level in three months, and Dubai Financial Market, the only Gulf Arab market to sell shares to the public, dropped for a second day. The Bloomberg GCC 200 Index of 200 companies in the region slipped 1 percent. Egypt’s EGX 30 Index declined 2.2 percent and Israel’s benchmark TA-25 Index of stocks dropped 1.9 percent. “The global selloff, and the drop in the euro and oil prices are not helping investor sentiment,” said Saud Masud , a Dubai-based analyst at UBS AG. U.S. and European shares dropped on June 4 as employment by American companies rose less than forecast and Hungary said its economy is in a “very grave” situation, reigniting concern the region’s debt crisis is spreading. U.S. payrolls rose by 431,000 in May, missing the 536,000 gain forecast by economists in a Bloomberg News survey. The Standard & Poor’s 500 Index tumbled 2.3 percent last week, while the Stoxx Europe 600 Index sank 1.8 percent on June 4, trimming the week’s gain to 0.2 percent. The euro fell below $1.20 for the first time since March 2006. Abu Dhabi, Kuwait Drop Crude oil tumbled the most in four months after the U.S. jobs report. Oil for July delivery declined $3.10 to $71.51 a barrel on the New York Mercantile Exchange on June 4, the lowest settlement since May 26. It was the biggest one-day drop since Feb. 4. The six Gulf Cooperation Council countries, including Qatar and the United Arab Emirates, hold about 40 percent of global proven oil reserves. Abu Dhabi’s index lost 1.3 percent today. The Kuwait Stock Exchange Index and Qatar’s QE Index declined 0.4 percent. Bahrain’s gauge and the Saudi Tadawul All Share Index retreated less than 0.1 percent. Israeli government bonds gained, pushing yields to the lowest level in 14 months, as concern about the pace of economic recovery in the U.S. prompted investors to buy the country’s safest assets. The benchmark Mimshal Shiklit due February 2019 rose 0.15 shekel to 111.73 at the close in Tel Aviv. The yield dropped two basis points to 4.57 percent, the lowest level since April 2009. The shekel fell 0.3 percent to 3.8610 per dollar on June 4. ‘Worries’ About Growth “Worries about the global economic growth are sending riskier assets down, and investors are moving toward the safety of government bonds,” said Guy Lazarovich, a bond trader at Israel Brokerage & Investments Ltd. in Tel Aviv. “Slower economic growth also means the Bank of Israel may keep the rate lower for longer.” Israel’s central bank has raised the benchmark interest rate by 1 percentage point since last August to 1.5 percent as growth picked up, with the economy expanding 3.3 percent in the first quarter. Bank of Israel Governor Stanley Fischer may increase the lending rate by 25 basis points to 1.75 percent on June 28, according to seven of 12 economists surveyed by Bloomberg. To contact the reporter on this story: David Wainer in Tel Aviv at dwainer1@bloomberg.net Dana El Baltaji in Dubai delbaltaji@bloomberg.net

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Gulf Shares Decline, Led by Dubai, on Oil, U.S. Growth Risk Aabar Drops

June 6, 2010

By Dana El Baltaji June 6 (Bloomberg) — Gulf shares dropped, led by declines in Dubai, as crude oil tumbled and lower-than-estimated U.S. jobs growth and a spreading debt crisis in Europe fueled concern the global economic recovery will slow. Emaar Properties PJSC , the developer of the world’s tallest skyscraper, headed for the lowest close in three months, and Dubai Financial Market , the only Gulf Arab market to sell shares to the public, dropped for a second day. Aabar Investments PJSC slumped to the lowest level since Dec. 10. The DFM General Index retreated 1.4 percent to 1,520.73 at 12:13 p.m. in the emirate. The Bloomberg GCC 200 Index of 200 companies in the region slipped 0.4 percent. “The global selloff, and the drop in the euro and oil prices are not helping investor sentiment,” said Saud Masud , a Dubai-based analyst at UBS AG. U.S. and European shares dropped on June 4 as employment by American companies rose less than forecast and Hungary said its economy is in a “very grave” situation, reigniting concern the region’s debt crisis is spreading. U.S. payrolls rose by 431,000 in May, missing the 536,000 gain forecast by economists in a Bloomberg News survey. Sinking Oil The Standard & Poor’s 500 Index tumbled 2.3 percent last week, while the Stoxx Europe 600 Index sank 1.8 percent on June 4, trimming the week’s gain to 0.2 percent. The euro fell below $1.20 for the first time since March 2006. Crude oil tumbled the most in four months after the U.S. jobs report. Oil for July delivery declined $3.10 to $71.51 a barrel on the New York Mercantile Exchange on June 4, the lowest settlement since May 26. It was the biggest one-day drop since Feb. 4. The six Gulf Cooperation Council countries, including Qatar and the United Arab Emirates, hold about 40 percent of global proven oil reserves. Emaar slid 2.5 percent to 3.12 dirhams and Dubai Financial Market retreated 2.5 percent to 1.54 dirhams. Aabar dropped 5.3 percent to 1.62 dirhams after the company said its board didn’t adopt any resolutions after reviewing financing and investment opportunities. Abu Dhabi’s index lost 1.3 percent and the Kuwait Stock Exchange Index declined 0.5 percent. Qatar’s QE Index fell 1.1 percent and the Saudi Tadawul All Share Index fell 0.2 percent. Bahrain’s gauge rose less than 0.1 percent. To contact the reporter on this story: Dana El Baltaji in Dubai delbaltaji@bloomberg.net

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Dubai Capital Returning, Standard Chartered Says

May 31, 2010

By Bloomberg News May 31 (Bloomberg) — Capital is gradually flowing back into Dubai after one of its main holding companies reached a debt restructuring accord with lenders, according to Standard Chartered Plc , one of Dubai World ’s seven biggest creditors. “Because of the settlement agreement, sentiment is slowly coming back to the market,” Hassan Jarrar , managing director of Standard Chartered’s United Arab Emirates unit, said in an interview in Shanghai today. “We see a lot of funds coming from different parts of the world into Dubai, trying to capitalize on emerging opportunities, especially in real estate.” Dubai World, one of the sheikhdom’s three main state-owned business groups, roiled global markets late last year when it said it would seek to delay repaying loans. The company said May 20 it reached an accord with its main creditor group to restructure $23.5 billion of liabilities. More than 90 banks are owed money by Dubai World, and Royal Bank of Scotland Group Plc , HSBC Holdings Plc and Standard Chartered are among its seven biggest creditors. Access to credit in Dubai is easing in areas including mortgages, auto loans and corporate debt, according to Jarrar. “Dubai is right now having some short-term pains, but you cannot erase the importance of that place,” he said. Real estate prices in Dubai, the second-largest emirate in the U.A.E., have plummeted about 50 percent from their peak in late 2008. Dubai’s economy will shrink about 0.5 percent this year, according to the International Monetary Fund, marking the second year of contraction for the debt-laden emirate. London-based Standard Chartered, which derives most of its profit from emerging markets, is “hoping” to be granted a license in Libya, and sees opportunities in countries including Saudi Arabia, Iraq, Egypt and Algeria, Jarrar said. The lender, which generated 16 percent of pretax profit from Africa and the Middle East in 2009, wants to take advantage of rising trade and mergers and acquisitions between the oil- rich regions and other emerging markets. Standard Chartered shares slipped 1.1 percent in Hong Kong today. — Luo Jun in Shanghai, with assistance from Vivian Salama in Abu Dhabi. Editors: Philip Lagerkranser , Brett Miller To contact Bloomberg News staff of this story: Luo Jun in Shanghai at +8621-6104-7021 or jluo6@bloomberg.net

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Voice Recorder Found After Fatal Air India Accident

May 23, 2010

By Vipin Nair and Rakteem Katakey May 23 (Bloomberg) — Accident investigators found the cockpit voice recorder from the wreckage of an Air India Express Boeing Co. aircraft that crashed yesterday, killing 158 passengers and crew. Analysis of the fire-damaged recorder may take about two weeks and is expected to provide the necessary details about the accident, the government said in a statement. Search teams were still looking for the main flight data recorder. “Officials from the Directorate General of Civil Aviation are searching for the black box,” Harpreet Singh, Air India’s emergency response coordinator for the disaster in southern Karnataka state, told reporters today, referring to India’s aviation regulator. Until it’s “found and formal studies are done, we can’t conclude anything,” Singh said in Mumbai. Flight IX-812 from Dubai to Mangalore slammed through a boundary wall and slid down a hill before bursting into flames at about 6:05 a.m. yesterday in India’s first fatal crash of a passenger aircraft in a decade. Flames and thick smoke billowed from the forested area. All the bodies of the dead have been removed from the wreckage of the Boeing 737-800, Singh said. Of those, 87 have been identified. There were eight survivors. The accident was the worst in India in 14 years, according to the Aviation Safety Network website. Houston, Texas-based disaster management company Kenyon International Emergency Services has been asked to assist in the rescue operation, Air India’s Singh said. The airline will also conduct an internal inquiry. Busy Skies Since India’s last major air disaster in 2000, its skies have seen the arrival of Kingfisher Airlines Ltd ., SpiceJet Ltd ., IndiGo, GoAirlines (India) Pvt. and Paramount Airways Ltd., as the world’s second fastest expanding major economy after China saw demand surge. India will be the fastest-growing air travel market for the next 10 years, Airbus SAS, the world’s biggest planemaker, predicts. The country’s carriers will add $138 billion of new aircraft over two decades, the company forecasts. National Aviation Co. of India Ltd, Air India’s owner, is seeking to raise as much as $1.15 billion to refinance loans that funded the purchase of 21 Airbus planes. Civil Aviation Minister Praful Patel said in March that India needs to more than quadruple the number of airports from the current 90 to meet the increased traffic. “India’s safety record has been as good as it gets,” said Kapil Kaul , chief executive officer of the Indian unit of the Centre for Asia Pacific Aviation . Mangalore’s “tabletop” runway “has challenges and the experience of the pilot is critical,” he said. Boeing Team Boeing is sending a team to provide technical assistance to the investigation at the invitation of Indian authorities, the Chicago-based manufacturer said in a statement yesterday. Air India said the crashed 737 was about 2 1/2 years old. Firefighters had to cross a railway and battle through trees to reach the wreckage, the CNN-IBN television channel reported yesterday. It showed a rescue worker carrying the foam- covered body of young child up a mud bank away from the crash. At least 50 victims were from the state of Kerala, Press Trust of India reported. Kerala relies on remittances from people working in the Middle East for a quarter of its economy. Both pilots were experienced and had flown into Mangalore together on May 17, Air India’s director for personnel, Anup Srivastava , told reporters in Mumbai yesterday. The civil aviation ministry said in a statement the plane had landed “slightly beyond” the runway’s “touchdown” zone at a time when visibility was about six kilometers (four miles). 1996 Crash Yesterday’s crash was the worst in India since a Saudi Arabian Airlines flight collided with a Kazakhstan Airlines jet in November, 1996, killing all 349 on board. In the South Asian country’s last major air disaster, a Boeing 737-200 crashed into a residential area while approaching Patna airport in the eastern Bihar in July 2000. For loss-making national carrier Air India the accident “comes at a time when it is struggling,” analyst Kaul said. “This is going to be demotivating. While the incident may not affect their plans to raise capital, “they are going to be much more in focus for the wrong reasons,” he said. International air travel has rebounded from last year’s slump as the global economy expanded. Indian airlines carried 16.82 million passengers between January and April this year, 22 percent more than a year earlier, according to the Civil Aviation Ministry. To contact the reporters on this story: Vipin Nair in Mumbai at vnair12@bloomberg.net ; Rakteem Katakey in New Delhi at rkatakey@bloomberg.net .

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Cockpit Flight Recorder Found in Air India Crash That Killed 158 People

May 23, 2010

By Vipin Nair and Rakteem Katakey May 23 (Bloomberg) — Accident investigators continue to search for flight data and voice recorders from the wreckage of an Air India Express Boeing Co. aircraft that crashed yesterday, killing 158 passengers and crew. “Officials from the Directorate General of Civil Aviation are searching for the black box,” Harpreet Singh, Air India’s emergency response coordinator for the disaster in southern Karnataka state, told reporters today, referring to India’s aviation regulator. Until it’s “found and formal studies are done, we can’t conclude anything,” Singh said in Mumbai. Flight IX-812 from Dubai to Mangalore slammed through a boundary wall and slid down a hill before bursting into flames at about 6:05 a.m. yesterday in India’s first fatal crash of a passenger aircraft in a decade. Flames and thick smoke billowed from the forested area. All the bodies of the dead have been removed from the wreckage of the Boeing 737-800, Singh said. Of those, 87 have been identified. There were eight survivors. The accident was the worst in India in 14 years, according to the Aviation Safety Network website. Houston, Texas-based disaster management company Kenyon International Emergency Services has been asked to assist in the rescue operation, Air India’s Singh said. The airline will also conduct an internal inquiry. Busy Skies Since India’s last major air disaster in 2000, its skies have seen the arrival of Kingfisher Airlines Ltd ., SpiceJet Ltd ., IndiGo, GoAirlines (India) Pvt. and Paramount Airways Ltd., as the world’s second fastest expanding major economy after China saw demand surge. India will be the fastest-growing air travel market for the next 10 years, Airbus SAS, the world’s biggest planemaker, predicts. The country’s carriers will add $138 billion of new aircraft over two decades, the company forecasts. National Aviation Co. of India Ltd, Air India’s owner, is seeking to raise as much as $1.15 billion to refinance loans that funded the purchase of 21 Airbus planes. Civil Aviation Minister Praful Patel said in March that India needs to more than quadruple the number of airports from the current 90 to meet the increased traffic. “India’s safety record has been as good as it gets,” said Kapil Kaul , chief executive officer of the Indian unit of the Centre for Asia Pacific Aviation . Mangalore’s “tabletop” runway “has challenges and the experience of the pilot is critical,” he said. Boeing Team Boeing is sending a team to provide technical assistance to the investigation at the invitation of Indian authorities, the Chicago-based manufacturer said in a statement yesterday. Air India said the crashed 737 was about 2 1/2 years old. Firefighters had to cross a railway and battle through trees to reach the wreckage, the CNN-IBN television channel reported yesterday. It showed a rescue worker carrying the foam-covered body of young child up a mud bank away from the crash. At least 50 victims were from the state of Kerala, Press Trust of India reported. Kerala relies on remittances from people working in the Middle East for a quarter of its economy. Both pilots were experienced and had flown into Mangalore together on May 17, Air India’s director for personnel, Anup Srivastava , told reporters in Mumbai yesterday. The civil aviation ministry said in a statement the plane had landed “slightly beyond” the runway’s “touchdown” zone at a time when visibility was about six kilometers (four miles). 1996 Crash Yesterday’s crash was the worst in India since a Saudi Arabian Airlines flight collided with a Kazakhstan Airlines jet in November, 1996, killing all 349 on board. In the South Asian country’s last major air disaster, a Boeing 737-200 crashed into a residential area while approaching Patna airport in the eastern Bihar in July 2000. For loss-making national carrier Air India the accident “comes at a time when it is struggling,” analyst Kaul said. “This is going to be demotivating. While the incident may not affect their plans to raise capital, “they are going to be much more in focus for the wrong reasons,” he said. International air travel has rebounded from last year’s slump as the global economy expanded. Indian airlines carried 16.82 million passengers between January and April this year, 22 percent more than a year earlier, according to the Civil Aviation Ministry. To contact the reporters on this story: Vipin Nair in Mumbai at vnair12@bloomberg.net ; Rakteem Katakey in New Delhi at rkatakey@bloomberg.net .

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Qatar Stocks Fall to Two-Month Low, Pacing Gulf Decline After Oil Retreats

May 23, 2010

By Dana El Baltaji May 23 (Bloomberg) — Qatari shares tumbled to the lowest level in two months, leading a decline in Gulf Arab markets, as oil prices closed near a low for the year and European stocks fell last week on concern economic growth may slow. Industries Qatar, the second-biggest petrochemicals maker in the Middle East, dropped to the lowest since August and National Bank of Kuwait also declined. Gulf Finance House EC , a Bahrain-based investment bank, retreated to the lowest in at least six years. Qatar’s gauge lost 1.5 percent to 6,974.96, the lowest since March 15. The Bloomberg GCC 200 Index, which tracks 200 equities in the region, fell 1 percent at 14:48 in Dubai. Kuwait’s Combined Group Contracting Co. advanced. Crude oil has tumbled 19 percent this month and closed at $70.04 a barrel on May 21. Oil fell as European governments struggled to contain the region’s debt crisis. The six members of the Gulf Cooperation Council, including Qatar and Kuwait, hold about 40 percent of the world’s proven oil reserves. The slump in oil prices is “having a broad based impact on our markets,” said Ali Khan , head of cash-equity trading at Dubai-based Arqaam Capital Ltd. “Volatility in global markets, with Europe as a key theme, is preempting significant participation of international liquidity in our markets.” In Europe, the Stoxx Europe 600 Index on May 21 slumped to the lowest level in more than six months on concern that European governments are divided on how to contain the region’s sovereign-debt crisis after Germany unilaterally banned some bets against government bonds and financial institutions. ‘Too Big’ Industries Qatar lost 2.6 percent to 100.4 riyals, the lowest since Aug. 20. National Bank of Kuwait , the country’s largest lender, lost 1.7 percent to 1,180 fils. The bank’s Chief Executive Officer Ibrahim Dabdoub denied having interest in Turkey’s Tekstilbank AS, Alternatifbank AS or Anadolubank AS. General Electric Co.’s 21 percent stake in Turkiye Garanti Bankasi AS is “too big” for the bank to buy, he said. Kuwait’s benchmark index retreated for a fourth day, declining 0.9 percent. Gulf Finance House tumbled 5.3 percent to 44.5 fils, the lowest close in Kuwait trading since at least March 2004 when Bloomberg started tracking the shares. Combined Group , a construction company, climbed 2.3 percent to 1,760 fils, the highest since February 2006, when Bloomberg began monitoring the stock. The company said it was the lowest bidder for a 37.8 million-dinar ($130 million) Kuwait state water project. Abu Dhabi’s index lost 0.8 percent, and the Dubai Financial Market General Index fell 0.7 percent. The Muscat Securities Market 30 Index dropped 1 percent and the Bahrain All Share Index decreased 0.5 percent. Saudi Arabia’s Tadawul All Share Index lost 0.7 percent at 1:53 p.m. in Riyadh. To contact the reporter on this story: Dana El Baltaji in Dubai delbaltaji@bloomberg.net

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Air India Boeing Crashes Carrying 166 in First Fatal Accident in a Decade

May 22, 2010

By Vipin Nair and Rakteem Katakey May 22 (Bloomberg) — An Air India Express plane overshot the runway and burst into flames while landing in heavy rain in southern India, killing all but three of the at least 166 people aboard in the country’s first fatal commercial air crash in a decade. “We have been able to confirm three survivors,” said Prabhakar Sharma, additional deputy commissioner of Mangalore district in southern Karnataka state. The plane “is almost completely burnt,” he said. There was little chance of more people being found alive, state home minister V.S. Acharya said by phone. Television channels including CNN-IBN and NDTV 24×7 showed flames and thick smoke billowing from a forested area at the end of the runway. Broadcasters said the plane crashed through a boundary wall and fell into a ravine. Firefighters had to cross a railway line and battle through trees to reach the wreckage, according to the reports. There were 137 adults, 23 children and six crew aboard the low-cost flight IX-812 when it crashed this morning, Sharma said. The survivors have been taken to a hospital 20 kilometers (12 miles) from the crash site, he said. Acharya put the total number of passengers and crew at 169. CNN-IBN showed a rescue worker carrying the foam-covered body of young girl up a mud bank away from the crash. It was not immediately clear if she was one of the survivors. ‘Grievous Loss’ Prime Minister Manmohan Singh expressed condolences over the “grievous loss of life” in a statement, announcing compensation for those killed. Singh postponed celebrations to mark the first anniversary of his re-election. The Boeing Co. 737-800 plane flying from Dubai to Mangalore crashed at 6:30 a.m. local time, Air India spokesman Swaminathan said by telephone. The crash may be the worst in India in 14 years, according to the Aviation Safety Network website. There was heavy rain and fog at the time of the crash, Sharma said. Civil aviation officials are on their way to Mangalore from the Karnataka capital city of Bangalore, he said. Boeing is sending a team to provide technical assistance to the investigation at the invitation of Indian authorities, the Chicago-based aircraft manufacturer said in a statement. Air India said in statement it was deploying “all its resources” to assist the families of passengers. India will be the fastest-growing air travel market for the next 10 years, Airbus SAS, the world’s biggest planemaker, predicts. Over the next 20 years, Indian carriers will need 1,030 new aircraft worth $138 billion, it forecasts. Bihar Crash In the South Asian country’s last major air disaster, a Boeing 737-200 crashed into a residential area while approaching Patna airport in the eastern state of Bihar in July 2000. The Alliance Air aircraft, which carried 52 passengers and six crew, nose-dived into a house one kilometer short of the airport, killing 45 passengers, all crew members and two people on the ground. Air India had debt of 152 billion rupees ($3.3 billion) as of June, according to the government. It may post a loss of 54 billion rupees for the fiscal year ended March 31, compared with a loss of 55.5 billion rupees a year earlier, according to Civil Aviation Minister Praful Patel . International air travel has rebounded from last year’s slump as the global economy expanded. Indian airlines carried 16.82 million passengers between January and April this year, 22 percent more than a year earlier, according to the Civil Aviation Ministry. Like state-controlled Chinese carriers and Japan Airlines Ltd., Air India has sought government aid as it flies unprofitable routes and faces growing competition from carriers including Singapore Airlines Ltd. To contact the reporters on this story: Vipin Nair in Mumbai at vnair12@bloomberg.net ; Rakteem Katakey in New Delhi at rkatakey@bloomberg.net .

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Stocks Fall for Sixth Day, U.S. Futures Drop as Euro Weakens; Oil Declines

May 20, 2010

By David Merritt May 20 (Bloomberg) — Stocks slid for a sixth day and U.S. index futures declined as the euro weakened against the dollar. Oil fell and palladium extended its losing streak to the worst since July. The MSCI World Index of 23 developed nations’ stocks fell 0.5 percent at 11:45 a.m. in London for its longest losing streak in four months. The Stoxx Europe 600 Index dropped 0.5 percent and futures on the Standard & Poor’s 500 Index retreated 0.6 percent. The euro weakened against the dollar, trading near the lowest level in four years. Palladium lost 7.5 percent, extending its six-day slump to 22 percent. European finance officials meet in Brussels a day before the German parliament votes on the country’s share of a $1 trillion bailout to backstop the euro in the wake of a worsening sovereign debt crisis. Stocks plunged yesterday as Chancellor Angela Merkel ’s unilateral effort to control what she called “destructive” markets rattled investors. The German ban on some bearish bets against financial companies and government bonds wasn’t replicated in other European states. “My major concern in Europe is that in order for the zone to start kicking in you need to see some serious austerity,” said Jonathan Plant, a strategist at Liberum Capital Ltd. in London. “It goes back to whether stocks are cheap, and they are just not cheap enough for me.” More than two stocks fell for every one that gained on the Stoxx 600. Yesterday’s 3 percent plunge left the benchmark gauge trading at less than 15 times its companies’ reported earnings, near the lowest level since December 2008. National Grid Plc, the operator of the U.K.’s power and gas networks, slumped 7.5 percent in London after announcing a 3.2 billion-pound ($4.6 billion) rights issue. SABMiller Plc, the world’s second-largest brewer, tumbled 6.2 percent as earnings missed estimates. Dubai Restructuring The MSCI Emerging Markets Index fell 1.4 percent as China’s Shanghai Composite Index slipped 1.2 percent, Russia’s Micex Index dropped 1.4 percent and Turkey’s ISE National 100 Index lost 3 percent. Dubai’s DFM General Index climbed 0.4 percent after creditors of Dubai World agreed to restructure $23.5 billion of liabilities as the state-owned holding company seeks to resolve a debt crisis that roiled global markets last year. The decline in U.S. futures indicated the S&P 500 will extend its 0.5 percent decline yesterday, when it wiped out its gain for 2010. The Federal Reserve said it was in no hurry to sell mortgage assets as it raised its U.S. growth estimates for 2010 and lowered forecasts for unemployment and inflation, according to minutes of the Federal Open Market Committee meeting on April 27-28 released yesterday. Palladium Retreat The U.S. Conference Board’s measure of the economy’s outlook for the next three to six months probably climbed 0.2 percent last month, according to the median forecast in a Bloomberg survey of economists. The figures, due at 10:00 a.m. New York time, follow a 1.4 percent gain in March that was the most since a similar rise in May 2009. The Fed Bank of Philadelphia’s general economic index and initial jobless claims data are also due to be released today. Palladium, used in auto catalysts and jewelry, retreated $35.63 to $424.00 an ounce on concern that slower economic growth will sap demand for cars and consumer goods. Palladium had advanced as much as 39 percent this year, after more than doubling last year, as auto sales expanded and an exchange- traded fund backed by the metal was introduced. Platinum dropped 4 percent to $1,537.25 an ounce. Copper for delivery in three months fell as much as $1.03, or 1.5 percent to $68.84 in electronic trading on the New York Mercantile Exchange. Spanish Auction The euro weakened 0.7 percent to $1.2333, near the lowest level since April 17, 2006. The yield on German 10-year bunds, Europe’s benchmark debt security, climbed to 2.75 percent. Spain sold 10-year bonds to yield 4.045 percent. That’s higher than the 3.855 percent yield at an auction two months ago and compares with an average of 3.869 percent at the previous four sales. The cost of protecting against a default on European corporate bonds rose, with credit-default swaps on the Markit iTraxx Crossover Index of 50 mostly high-yield companies climbing 8.7 basis points to 582.2, according to Markit Group Ltd. To contact the reporter on this story: David Merritt in London on dmerritt1@bloomberg.net

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Dubai World Creditors Agree in Principle on $23.5 Billion of Total Debt

May 19, 2010

By Arif Sharif May 20 (Bloomberg) — Dubai World and its creditors agreed in principle on a debt deal, a statement from the company said. To contact the reporter on this story: Arif Sharif in Dubai at asharif2@bloomberg.net

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Islamic Bond Sales Rising at Fastest Pace in Three Years on State Support

May 19, 2010

By Soraya Permatasari May 19 (Bloomberg) — Islamic bond sales are growing at the fastest pace since 2007 as yields on securities complying with the religion’s ban on interest fall more than those on emerging- market debt even as Europe’s debt crisis worsens. Offerings of sukuk climbed 24 percent to $4.6 billion so far in 2010, the most since a 50 percent increase in the same period three years ago, according to data compiled by Bloomberg. The spread between the average yield for the debt and the three- month London interbank offered rate narrowed 301 basis points, or 3.01 percentage points, to 437 basis points in the past year, according to HSBC/NASDAQ Dubai US Dollar Sukuk Index . A similar measure for emerging-market debt shrank 133 basis points. Malaysia and Qatar Islamic Bank SAQ announced plans today to sell sukuk, while Indonesia’s finance ministry said last week it was pushing ahead with a scaled-down offering. Sales are growing after Nakheel PJSC, the Dubai World property unit seeking to restructure $10.5 billion of debt, repaid a $980 million Islamic bond this month and received money from the Dubai Financial Support Fund. Government support and debt restructuring “help build confidence in the market,” Badlisyah Abdul Ghani , head of Islamic banking at Kuala Lumpur-based CIMB Group Holdings Bhd, the top sukuk underwriter in 2009, said in an interview yesterday. “Sovereigns are coming out with issues, knowing for a fact that there are investors out there hungry for quality assets. This is the time to come in.” Focus on Ethics Policy makers meeting at the World Islamic Economic Forum in Kuala Lumpur this week plan to spur growth in an Islamic financial-service industry, whose assets totaled $1 trillion last year, WIEF Chairman Musa Hitam said in a May 14 interview. About 2,000 delegates, from Malaysian Prime Minister Najib Razak to Senegal President Abdoulaye Wade, are attending the two-day meeting that ends tomorrow. Islamic finance centers around the world must boost linkages and establish forms of standardization for the industry, Najib said at the forum today. The global debt crisis has increased international demand for standardized alternative investments that “practice ethics,” Musa said in a statement on May 16. Sukuk are asset- based securities that pay a profit rate linked to the issuers’ income, a measure intended to ensure borrowers can pay their debts. The spread between the average developing-nation yield and Libor narrowed to 597 basis points from 730 basis points a year ago, based on the EMBI+ index from JPMorgan Chase & Co. That is 160 basis points more than the average spread for sukuk debt. Malaysia, Qatar Sukuk Islamic bond sales may increase 24 percent to $25 billion this year, CIMB Group’s Badlisyah said in February. They rose 43 percent last year to $20.2 billion from $14.1 billion in 2008, according to data compiled by Bloomberg. Malaysia may sell more than $600 million of five-year dollar sukuk, Barclays Capital, one of the three arrangers, said today as the prime minister launched the marketing. Qatar Islamic Bank SAQ , the Gulf state’s biggest Shariah-compliant lender, plans to sell as much as $750 million of bonds in its first Islamic debt offering, the company’s chief executive also said today. Indonesia’s finance ministry said last week it plans a benchmark-sized issue, typically $500 million. Greece will tap emergency loans from the euro region today to repay 8.5 billion euros ($10.5 billion) of 10-year bonds, debt that threatened the euro-region’s first default. Greece’s benchmark two-year notes yield 8.48 percent, more than 15 times the comparable German security. ‘Emotional Hangover’ Investors are differentiating more carefully and favoring “financially strong” issuers because of the global debt crisis, said Rafael Martinez Dalmau , director of emerging markets and Islamic investments in Singapore at BNP Paribas Investment Partners, a unit of France’s largest bank. “We’re going to feel the emotional hangover on the markets for some time,” he said. Malaysia’s Senai-Desaru Expressway Bhd., a toll-road operator, said in April it plans to restructure 1.46 billion ringgit ($457 million) of Shariah-compliant bonds to avoid triggering the country’s biggest Islamic-debt default in more than two years. Islamic bond defaults in Malaysia totaled 176 million ringgit in the first four months of this year, 65 percent of the total in 2009. “Even sovereign debt right now will have to pay more in the debt market because of the prevailing scenes surrounding sovereign debt in Europe and the United Arab Emirates,” Ali Khan , head of cash-equity trading at Dubai-based Arqaam Capital Ltd., said in a telephone interview yesterday. ‘Safe Side’ Saudi Electricity Co., the country’s state-controlled power producer, raised 7 billion riyals ($1.9 billion) from sukuk sales last week. Cagamas Bhd., the Malaysian buyer of home loans, and Abu Dhabi’s Tourism Development & Investment Co., said this month they will sell sukuk this year. “Investors want to be on the safe side because of the uncertainty in Europe,” said Yazit Yusuff, head of the Islamic banking division at OSK Investment, a unit of Malaysia’s biggest stockbroker by trading value in Kuala Lumpur. “Investors are looking at high-profile names. Planned sales by Malaysia and Indonesia this year will be good for the market.” To contact the reporter on this story: Soraya Permatasari in Kuala Lumpur at soraya@bloomberg.net

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James Zogby: Business Confidence Up in Gulf States

May 17, 2010

Dubai — Ed Koch, the colorful and often controversial former Mayor of New York City, made it a practice as he walked the streets of his city to stop and ask average citizens “How am I doing?” in an effort to learn how they viewed the performance of his administration and its delivery of services. Asking and listening are always useful exercises. Sometimes the results can be surprising. More often then not the results of such an effort affirm what we have assumed to be true, providing data to validate our assumptions as well as additional valuable insights. A recent survey of business executives in the Arab Gulf countries is a case in point. Conducted by Zogby International (ZI), the survey found that optimism has returned to the business community in the Gulf, a sign that the region may have turned a corner following the global economic downturn of 2008-2009. Overall six in ten executives now say that business conditions have improved in their countries, with over eight in ten expressing confidence that conditions will improve even further in the next two years. These are but a few of the findings from the survey of “C-Suite” executives in Saudi Arabia, UAE and Qatar, which ZI carried out for Oliver Wyman (an international management consulting firm with a strong presence throughout the Middle East). It is the second in a continuing series of semi-annual measurements of business confidence in the Gulf region. The mood was positive in all three countries covered in the survey, with the most notable changes occurring in the UAE. Business leaders in that country were especially hard hit by what one prominent Emirati businessman referred to as the “bursting of Dubai’s utopic bubble.” It is significant, therefore, that while in our October 2009 survey 57% of respondents in the UAE reported that their economy was in decline, today that figure has dropped to just 39%; and while in October only 45% of business leaders in the UAE anticipated an improvement in business conditions in the country during the next two years, now 74% are optimistic. Overall, the executives expressed some satisfaction with their governments’ response to the 2008-2009 crisis with those in Saudi Arabia, Qatar and Abu Dhabi indicating strong confidence in their governments’ performance. Only in Dubai was there a somewhat negative mood with over 50% reporting that their attitude toward government had been undermined by its handling of the crisis. When asked to identify the areas that provided the greatest opportunities for the Gulf Cooperation Council countries to improve competitiveness, almost one-half of the surveyed business leaders pointed to the region’s need to diversify its economy. And four times as many executives saw greater opportunity in deepening ties with the emerging economies of China and India than with their traditional partners in the developed West. Some indicated that they saw China’s dramatic growth and the relative ease of doing business in that country as obvious attractions, especially in the face of the uncertainties now facing Europe. In the April survey, as in our earlier October effort, labor and education reform were once again identified as both the most immediate and long-term challenges to the region’s competitiveness. Other problem areas the business executives pointed to as requiring government attention included: improving transparency (especially noted in Dubai and Saudi Arabia’s Eastern Province) and reducing bureaucracy (a major concern in Abu Dhabi). Another major concern noted in all three countries was the difficulty associated with starting new businesses – pointing to excessive regulations and problems obtaining loans at reasonable rates. The utility of surveys of this type is that they provide business leaders with an unofficial sounding board from which they can identify concerns. The results also provide governments with indices by which they can measure the mood and needs of a critical sector of the society that will be the driver of future growth and development. And so getting back to answering the New York Mayor’s question, in the Gulf it would be “quite good”. The bottom line here is that business confidence is up, and significantly so when compared to many other regions of the world, including the U.S. And no wonder. The region weathered a difficult world-wide downturn with governments wisely using reserves both to insure stability and promote growth. Nevertheless, concerns remain in important areas. Singled out for attention were: the region’s dependence on foreign labor; the challenge of modernizing the educational system (especially in the areas of primary education, basic math and science skills and technical training); and easing the way for entrepreneurs to start new businesses – a key to needed job creation. These are issues that the business leaders say must be addressed to insure both future competitiveness and continued prosperity.‬

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Dubai Shares Lead Gulf Slump on European Credit Crisis, Oil

May 16, 2010

By Zahra Hankir May 16 (Bloomberg) — Dubai shares fell, leading Gulf markets lower, on concern Europe’s sovereign debt crisis will hurt the global economic recovery and as companies including Kuwait’s Agility posted lower earnings. Crude oil declined. Agility lost 3.5 percent as the storage and logistics company said profit fell 52 percent. Vodafone Qatar fell to the lowest this month after the phone company reported a loss. Emaar Properties PJSC, developer of the world’s tallest skyscraper, also slid. The DFM General Index retreated 1.5 percent to 1,692.4, the lowest since March 11. The Bloomberg GCC 200 Index of stocks in the Gulf decreased 0.7 percent and in North Africa, Egypt’s EGX 30 Index tumbled 3.2 percent. “Concern about the long-term impact of Greek and European spending cuts on global growth is weighing on oil and equity markets,” said Rabih Sultani , a fund manager at Duet Mena Ltd. in Dubai, a unit of Duet Group, which oversees $2.1 billion. In Europe, the Stoxx Europe 600 Index sank 3.4 percent on May 14. The euro fell to its lowest level since the collapse of Lehman Brothers Holdings Inc. in 2008 on concern the shared currency may be headed for disintegration. Oil tumbled to $71.61 a barrel, a three-month low, on concern that Europe’s crisis may reduce energy consumption. The six nations of the Gulf Cooperation Council supply about a fifth of the world’s oil. Vodafone Qatar Aabar Investments PJSC, the Abu Dhabi fund and largest shareholder in Daimler AG, rose 1.5 percent to 2.10 dirhams after posting a first-quarter profit of 1.58 billion dirhams ($430 million) after derivatives and foreign-exchange gains. Agility retreated to 560 fils, the lowest since April 22. The company’s first-quarter net income fell to 17.6 million dinars ($61 million). Agility said it’s in talks with the U.S. government to reach an agreement over alleged overbilling on military supplies. Emaar fell 2.1 percent to 3.75 dirhams, the lowest since March 24. Egyptian builder Orascom Construction Industries lost the most in a week, dropping 3.6 percent to 242.52 Egyptian pounds. Vodafone Qatar slumped 2.8 percent to 8.80 riyals, the lowest since April 26. The venture between Vodafone Group Plc and state-controlled Qatar Foundation posted a full-year loss of 673.4 million riyals ($185 million). Qatar’s QE Index dropped 1.8 percent to 7,211.24. Abu Dhabi’s gauge and the Kuwait Stock Exchange Index decreased 0.6 percent. Bahrain’s measure lost 0.9 percent to the lowest since March and Oman’s MSM30 Index slid 0.8 percent. Saudi Arabia’s Tadawul All Share Index fell 0.2 percent, extending yesterday’s 2.3 percent slump. To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net or

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Islamic Dollar Bond Sales May Reach $5 Billion This Year, HSBC Forecasts

May 16, 2010

By Dana El Baltaji May 16 (Bloomberg) — Sales of dollar-denominated Islamic bonds may reach $5 billion this year, matching levels of 2009, led by Asia and Gulf Arab nations, said an official at HSBC Holdings Plc, the biggest underwriter of such debt this year. The so-called sukuk market was “sluggish” in the first half of the year, Mohammed Dawood , director of debt capital markets at HSBC in Dubai said in an interview today. Offerings will “pick up” in the months to come as market conditions improve, he said. Sales of Islamic bonds, including domestic issues, reached $4.6 billion this year, after rising to $20.2 billion in 2009, according to data compiled by Bloomberg. Standard & Poor’s said total sales of the securities may rise to $30 billion in 2010, approaching the record set in 2007. “There is still a lot of liquidity within the Islamic markets,” Dawood said. The limited supply of sukuk “in the past eight to nine months has led to a build-up in assets and a pressure to deploy assets.” Dubai World, one of the emirate’s three main state-owned holding companies, and its property unit, Nakheel PJSC, are seeking to renegotiate terms on a combined $24.8 billion of borrowings after roiling global markets by proposing a freeze on loan repayments in November. Islamic debt sales slumped 43 percent to $1.2 billion in the first-quarter from a year earlier, Bloomberg data shows. Nakheel transferred $980 million on May 13 to repay Islamic debt maturing the same day, according to a Dubai government spokeswoman. Islamic bonds are asset-based securities that pay a profit rate to investors to comply with Shariah law’s prohibition on interest payments. To contact the reporter on this story: Dana El Baltaji in Dubai at delbaltaji@bloomberg.net

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Arqaam Capital of Dubai May Hire 100 Middle East Equity Research Analysts

May 16, 2010

By Arif Sharif May 16 (Bloomberg) — Arqaam Capital Ltd., a Dubai-based investment bank, will start an equity research unit that may hire as many as 100 analysts in three years to meet demand for Middle East research, its chief executive officer said. Arqaam, whose businesses include equities brokerage, equity derivatives and corporate finance, will open the research unit in Beirut, Lebanon, covering some 300 companies in the region with a market value of more than $500 million, Riad Meliti , said in a phone interview. “One of the key issues in the market is data aggregation, and we are going to focus a great deal on aggregating data from across the region,” Meliti said. Arqaam, which is three years old and operates from the Dubai International Financial Center, has seen volumes at its brokerage business grow by 40 percent quarter-on-quarter in the past 12 months, Meliti said. The increase was spurred by Arqaam’s focus on institutional clients, he said. Gulf Arab stock markets have risen in the past 12 months as the prospects of global economic growth improved, oil prices climbed and governments in the region boosted investments. The Bloomberg index of the region’s biggest 200 stocks has advanced 11 percent in the past 12 months, Saudi Arabia’s Tadawul All Share Index added 10 percent, while Dubai’s Financial Market General Index climbed 3 percent. A number of Middle East share indexes “will sooner or later be included in the emerging market indexes,” which will boost the inflow of global equity funds to Middle East markets, Meliti said. “As a firm we are positioning ourselves for the continued growth of the institutional participation” in equity markets, he said. To contact the reporters on this story: Arif Sharif in Dubai at asharif2@bloomberg.net

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Dubai, Qatar Stocks Lead Drop in Gulf on European Debt Crisis, Oil Slump

May 9, 2010

By Zahra Hankir May 9 (Bloomberg) — Dubai and Qatari shares slumped, leading a drop in the Gulf, after global stocks tumbled on concern Europe’s debt crisis will spread beyond Greece and slow the global economic recovery. Crude oil fell to $75 a barrel. Air Arabia PJSC, the Middle East’s largest low-cost carrier, retreated the most in more than a month as first- quarter profit fell 51 percent. Emaar Properties PJSC, the developer of the world’s tallest skyscraper, dropped to the lowest since March. The DFM General Index slid 3.3 percent, the most since Feb. 14, to 1,677.49 as of 11:32 a.m. in Dubai. Qatar’s benchmark index, the QE Index , tumbled 4 percent “The international melt-down scenario related to Greek sovereign debt” is pushing Arab markets lower, said Dubai-based Yazan Abdeen , a fund manager at ING Investment Management (Dubai) Ltd. “If you think in the gloom scenario, international demand falls and hence oil, and that leads to less sovereign government revenue.” Stocks fell globally last week on concern Europe will be unable to contain the spiraling government debt crisis. European shares tumbled the most in 18 months before euro-region leaders met in Brussels to endorse the Greek bailout. Moody’s Investors Service said banks in Portugal, Spain, Italy, Ireland and the U.K. could be at risk as the threat of contagion grows. The MSCI World Index slid 2.3 percent to 1,099.58 on May 7, the lowest close since Feb. 8. 16 Months Crude oil tumbled to $75.11 a barrel, capping its biggest weekly decline in 16 months. The six nations of the Gulf Cooperation Council supply about a fifth of the world’s oil. Shares in Saudi Arabia, the world’s biggest oil exporter, declined 4.4 percent yesterday. Air Arabia retreated 3.9 percent, the most since April 1, to 90.3 fils. The airline said net income fell to 50 million dirhams ($13.6 million) as fuel prices rose and it cut fares to lure passengers amid slowing economic growth in the Middle East. Emaar dropped 4.7 percent to 3.67 dirhams, the lowest intraday level since March 21. “The sell-off in the regional market should not be sustainable,” Abdeen said. “Value is rising and it is time to invest.” The Kuwait Stock Exchange Index retreated 2.2 percent, the most in more than five months. Oman’s MSM30 Index slid 1.4 percent and Bahrain’s gauge dropped 1.5 percent. Abu Dhabi’s index decreased 1.4 percent. To contact the reporters on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

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Aviva’s Moneta Embraces a `Different’ Path Than Predecessor Tidjane Thiam

May 6, 2010

By Kevin Crowley May 6 (Bloomberg) — On the 22nd floor of a London skyscraper, Andrea Moneta sits in the seat that Prudential Plc’s Tidjane Thiam occupied three years ago. Aviva Plc’s European chief executive officer has ideas that are in stark contrast to his predecessor. As Prudential struggles to push through a $35.5 billion bid for AIA Group Ltd. to become the biggest international insurer in Asia, Moneta says Aviva will be able to grow faster and at lower risk by staying home in Europe and eschewing large acquisitions abroad. “The volatility for the risks associated to the two different strategies and investments is clearly different,” the 44-year-old Italian said in an interview. “Being in Europe in the European Union and convergent regulation has a different risk profile.” The U.K.’s second-biggest insurer is betting European countries’ growing budget deficits will spur pension reforms, prompting more people to turn to private firms. Aviva expects to profit as Europeans save more than ever before in the next five years, outpacing growth in Asia. The bid by Thiam, Prudential’s 47-year-old CEO, for American International Group Inc. ’s main Asia unit hit a regulatory hurdle yesterday when the U.K.’s Financial Services Authority prevented the insurer from publishing the prospectus for a $21 billion rights offer to fund the deal. The delay is due to discussions about the insurer’s capital reserves after the purchase, the company said. In addition, British shareholders such as Killik & Co. , Brown Shipley & Co. and SVM Asset Management Ltd. have said the price Prudential is paying is too high. Failed Prudential Bid It’s not the first time Thiam’s acquisition attempts have been opposed. As Aviva’s director of strategy, he helped make a 16.9 billion-pound ($25.6 billion) offer in 2006 for Prudential, the company he now leads. The bid for the U.K.’s biggest insurer was rejected and dropped by Aviva in a week. “Just because it’s Asia doesn’t mean everything you touch in that part of the world turns to gold,” said Clive Beagles , who helps manage 3.8 billion pounds at London-based JO Hambro Capital Management Group Ltd. including Aviva shares. “Europe is structurally under-penetrated with insurance compared with the U.K., and Aviva is trying to get a bit more bang for its buck.” The U.K., Spain, Ireland and France are all proposing ways of cutting spending on public pensions to reduce their budget deficits, which have rocketed since the financial crisis. That will help boost sales, Moneta said. ‘Huge Opportunity’ “It’s my luck to be in the right place at the right moment,” Moneta said at Aviva’s London headquarters. “There’s a huge opportunity in Europe. It’s going to have very significant growth in the next few years.” Moneta, who lives in Milan with his wife and two children, has been intimately involved with Europe’s growth as a financial superpower over the past decade. He worked for the European Central Bank when it created the euro in 1999 and joined UniCredit SpA in 2000 before the Milan- based lender’s biggest acquisition phase, which included the purchase of Munich-based HVB Group in 2006, then Europe’s biggest cross-border bank takeover. Moneta has written a book on Italian financial services, and visits three countries a week before returning to Milan on the weekend. The Italian was hired in July 2008 by Aviva CEO Andrew Moss after the two met during a business meeting when Moneta was managing director of Dubai Financial Group LLC , one of the Emirate’s investment companies. He left 16 months before Dubai World sought to delay payments on $26 billion of debt. Europe’s Prospects Life and pension assets in Europe will grow by $1.7 trillion over the next five years, according to research by New York-based consultant Oliver Wyman Group , commissioned by Aviva. That compares with $1.5 trillion in Asia, excluding Japan, and $1.3 trillion in North America. “The trend is clearly there,” Moneta said. “It’s a trend that’s driven by the governments looking to offload some of these costs, and it’s a trend driven by awareness among consumers that this is something they have to think about.” Investors aren’t yet convinced. Aviva has lagged behind European rivals Prudential, Axa SA and Legal & General Group Plc since the Bloomberg Europe 500 Insurance Index touched a 12-year low in March 2009. The stock has dropped 16 percent since March 1 while Prudential has fallen 8.9 percent even though it’s planning a $21 billion share sale this month. Axa is down 8.9 percent; Legal & General has climbed 5.1 percent. Prudential, AXA Aviva may have trailed the others because “it’s hard to attach a clear story as to why investors should buy,” said Tony Silverman , a London-based analyst at Standard & Poor’s Equity Research with a “hold” rating on the stock. The insurer sells life and nonlife insurance, pension and savings products and operates in 28 countries in three continents. Unlike Aviva, Prudential and AXA, Europe’s second-largest insurer, have bet on Asia for future growth. Prudential last month agreed to buy AIG’s main Asia unit for $35.5 billion, and Axa announced an $8.7 billion buyout of Axa Asia Pacific Holdings Ltd. ’s Asian business. Vasilis Katsipis , a London-based analyst at A.M. Best Co. who follows European insurers, said Aviva’s plans in Europe may struggle in the short-run because of the Greek, Spanish and Portuguese debt crises and lower economic growth, which is linked to sales of life insurance and pensions. “We’re going to see European economies having negative or little growth in the next few years,” he said. “Sales of life insurance will be hit.” Aviva Trails Pru Meanwhile, a study by New York-based consulting firm McKinsey & Co. estimated 40 percent of global life-insurance premium growth will be in Asia in the next five years. Prudential’s market value exceeded Aviva’s by almost 6 billion pounds, the most in at least a decade, at the beginning of this year, before it began its bid for AIA. Prudential was worth 13.9 billion pounds at the close of trading yesterday, and Aviva was valued at 9.1 billion pounds. Moneta plans to narrow this gap. “I never gamble,” he said. “It’s against my education, my principles and so forth. Calculated risk is important.” To contact the reporter on this story: Kevin Crowley in London at kcrowley1@bloomberg.net

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First Afghan Railway Will Draw Taliban Fire as It Boosts Economy, War Goal

May 5, 2010

By Eltaf Najafizada and James Rupert May 5 (Bloomberg) — Workers are laying track across north Afghanistan’s rolling grassland for the country’s first rail line, a project that will boost the economy, supply NATO troops and become a target for Taliban bombs. The railway, being built by Uzbekistan’s state railroad , will run 75 kilometers (45 miles) from the Uzbek border to the city of Mazar-e-Sharif, said Craig Steffensen, Kabul-based Afghanistan country director for the Asian Development Bank , who has inspected the work. The line, to be completed this year, will more than double shipments of fuels, food grains, consumer goods and construction materials through a border crossing that handles half of the country’s imports, the bank says. “Railroads can reduce our isolation,” said Hamidullah Farooqi, a Kabul University economics professor and former transport minister, in a phone interview. “This is just the first line for a network that we hope can turn our country into a new trade route. That is what we need to create stability.” More than a century after Afghan monarch Amir Abdurrahman banned rail lines as potential invasion routes, physical isolation and war have left Afghanistan the second-least developed of 182 countries measured by the United Nations’ Human Development Index . The line not only will help develop the north, which holds most of the country’s known gas, oil and coal , it is the first step in linking Central Asia to seaports in Iran, Steffensen said. Needing Pakistan The link to Uzbekistan and onward to Kazakhstan and Russia also will reduce the dependence of Afghanistan and of U.S.-led NATO forces on Pakistan, where local Taliban have hijacked or burned trucks carrying U.S. military supplies. The railway will connect to a new U.S. supply network from the north and so “will be particularly helpful in bringing goods into the country for our needs,” said U.S. Colonel Wayne Shanks , a spokesman in Kabul for the North Atlantic Treaty Organization’s International Security Assistance Force. Thus the Taliban plan to strike, said movement spokesman Zabihullah Mujahid, in a mobile-phone interview. “If NATO uses this railroad to import their supplies we will attack them 100 percent, and we’ll block the railroad,” he said. That may be difficult. The rail line passes west of the Pashtun districts in the north that the Taliban, a movement of ethnic Pashtuns, recently have taken over. Ethnic Uzbeks and Tajiks who live nearer the line are “not sympathetic,” to the Taliban, said Zabi Wahab, a native of the region who is the business development manager at the Dubai- based Kefayat Group . First Step The Manila-based Asian Development Bank is paying $165 million , 97 percent of the line’s cost, because “this is the first step of a development that will benefit the whole region” of Central Asia, Steffensen said in a telephone interview. The Afghan government is paying another $5 million. More rail construction may follow. A separate line partly built by Iran into Afghanistan’s northwest, plus two projects being studied by China and the development bank, could give north Afghanistan the shortest rail link yet from Central Asia to Iranian seaports, and the first standard-gauge line from the Pacific Ocean to Europe, said Steffensen and Farooqi. A standard-gauge route would eliminate the need for trans- Asian trains to stop at the Chinese-Kazakh border and in Eastern Europe to change their wheel assemblies to fit the broader ex- Soviet rail gauge. Beijing-based Metallurgical Corp. of China Ltd. agreed to help build a railway to export ore in 2007 when it won the license for Afghanistan’s biggest copper mine. Afghan and Chinese officials have discussed a route north through Tajikistan to western China, Farooqi said. Oil and Gas Reports show Afghanistan has more than 150 million barrels of oil reserves and more than 4.5 trillion cubic feet of gas, the U.S. Geological Survey says. The first Afghan rail line may turn Mazar-e-Sharif, a city of more than 300,000 people, into an Afghan transport hub, promoting business development in the north that “is crucial to Afghanistan’s economic development and stabilization,” said Anne Benjaminson, an economic officer at the U.S. Embassy in Kabul. Companies suffer as much as a month’s delay in getting rail shipments transferred to trucks at the northern Afghan border town of Hairaton. Uzbekistan “often closes the border for two weeks at a time, saying it is because of congestion at Hairaton,” said Wahab in a phone interview. Trade at Hairaton is expected this year to reach 40,000 tons a month, Steffensen said. The greater efficiency of the railroad may boost demand for haulage across the border to 5,000 tons per day, according to the development bank. Rail Bed In northwest Afghanistan, Iran has built two-thirds of a 190-kilometer rail bed from the Iranian town of Khaf to the northwestern Afghan city of Herat. The Afghan government is seeking funds to build the rest, deputy public works minister Ahmad Shah Waheed said. The development bank is funding technical surveys for a line of more than 700 kilometers (430 miles) to connect the two Afghan spurs under construction. That would offer the five, landlocked Central Asian countries — Kazakhstan, Kyrgyzstan, Tajikistan , Turkmenistan and Uzbekistan, which have a combined Malaysia-sized GDP of $187 billion — their most direct trade route to Iran’s Gulf or Indian Ocean ports. To contact the reporters on this story: Eltaf Najafizada in Kabul in Kabul at enajafizada1@bloomberg.net ; James Rupert in New Delhi at jrupert3@bloomberg.net .

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Times Square Car Bomber Left Trail of Clues From House Keys to Phone Calls

May 5, 2010

By Patricia Hurtado May 5 (Bloomberg) — U.S. authorities looking for the person who tried to blow up a car in New York’s Times Square with firecrackers, propane, gasoline and fertilizer had a valuable ally: the suspect himself. Faisal Shahzad , who was arrested May 3 and charged with attempting to detonate a weapon of mass destruction in one of the busiest intersections in the U.S., left behind a trail of clues including the keys to his Connecticut home and a second vehicle as well as records of mobile-phone calls to a Pennsylvania fireworks shop and from associates in Pakistan. Shahzad may have been “purposefully hapless” so that his possible accomplices could see how the New York police responded to terrorist threats, said Michael Wildes , a former federal prosecutor in Brooklyn, New York. “The materials were rudimentary and the effort was captured on 87 different cameras,” said Wildes, an immigration attorney who represents defectors who cooperate with prosecutors in terrorism cases. “Anybody who has the tenacity to put together a bomb like this doesn’t make these kinds of mistakes. “Or, this may be the dumbest terrorist in the world,” Wildes said. Agents from the Department of Homeland Security arrested Shahzad at New York’s John F. Kennedy International Airport May 3 as he attempted to fly to Dubai, said U.S. Attorney General Eric Holder . Shahzad admitted his role in the plot, Holder said yesterday at a press conference in Washington. Training in Pakistan A U.S. citizen of Pakistani origins, Shahzad was charged with five counts, including attempting to use a weapon of mass destruction and receiving “bomb-making training” in the Waziristan region of Pakistan, after driving a bomb-laden Nissan Pathfinder into Times Square. His plot dated as far back as December, prosecutors said. Shahzad faces as long as life in prison if convicted of the mass destruction weapon charge or acts of terrorism transcending national boundaries, Manhattan U.S. Attorney Preet Bharara said in a statement. After receiving four calls from Pakistan on April 24, Shahzad called the seller of the Pathfinder twice and then bought the vehicle using 13 $100 bills, federal officials said in the criminal complaint. The next day, Shahzad called a store in rural Pennsylvania that sells M-88 firecrackers, authorities said. House, Car Keys Shahzad left his house key along with the key to his Isuzu Rodeo in the Pathfinder that he failed to blow up in Times Square, prosecutors said. The police used that house key to enter his residence and discovered fireworks and fertilizer in a garage. Shahzad left the Isuzu in the parking lot of the Bridgeport, Connecticut, supermarket where he arranged to buy the Pathfinder. Dubai-based Emirates Airlines said U.S. authorities removed three passengers from the May 3 flight from New York to Dubai. After the airliner left the gate and was recalled, Shahzad was arrested, according to a person familiar with the investigation. The other two people were later released, the person said. Shahzad was put on the federal no-fly list early on the afternoon of May 3, said a law-enforcement official who requested anonymity. Within an hour, federal authorities electronically sent out an advisory about his addition to the list. Airlines have to individually update their computer systems with the additions, and Emirates hadn’t done so, the official said. Customs and Border Protection officials discovered the suspect was on the plane after scanning a passenger manifest that airlines are required to submit about 30 minutes before takeoff, the official said. Onboard Arrest Emirates’ flight EK202 landed in Dubai seven hours late, at 2.45 a.m. An American passenger who declined to be identified said he saw three or four police officers enter the aircraft in New York and detain the three men, who were sitting in economy class. The men looked calm as they were taken away, he said. Shahzad got a bachelor’s degree in computer applications and information systems from the University of Bridgeport in 2000 and earned an MBA in 2005, said Michael Spitzer, the school’s provost, in an e-mailed statement. Shahzad worked for three years at Affinion Group Holdings Inc., a company controlled by Leon Black ’s private-equity firm, Apollo Management LP. Affinion, a provider of marketing and customer-loyalty plans, employed Shahzad as a financial analyst in its accounting department from 2006 until 2009, the company said. ‘Dumb Mistakes’ “Not all terrorists are created equally,” said Anthony Barkow , a former Assistant Manhattan U.S. Attorney who handled terrorism cases. “Although some plots are highly sophisticated, others are not. Just like common criminals, aspiring terrorists often get caught because of dumb mistakes.” Barkow cited the 1993 World Trade Center truck bombing as an example of terrorist ineptitude. After the attack, one of the plotters returned to the car-rental company to recover the deposit on the vehicle that held the explosives. “But none of this is to suggest what the law enforcement officials did here was anything other than extraordinary — they identified the perpetrator of this plot at the speed of a television show,” said Barkow, now the director of a center on criminal prosecutions at New York University Law School. “What is often dismissed as the speed of Hollywood fantasy here was reality.” New York Police Department Commissioner Ray Kelly at a news conference yesterday credited investigators for their fast work. “By my calculation, from the time Faisal Shahzad drove into and across Broadway and parked that vehicle, to when he was apprehended last evening at JFK Airport, it was 53 hours and 20 minutes,” Kelly said. “Now, we know that Jack Bauer can do it in 24” hours, Kelly said, referring to Fox Television’s “24” starring Kiefer Sutherland as the anti-terrorism agent Bauer. “But in the real world, 53 is a pretty good number.” The case is U.S. v. Shahzad, 10-00928, U.S. District Court, Southern District of New York (Manhattan). To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net

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Times Square Car Bomber Left Trail of Clues From House Keys to Phone Calls

May 5, 2010

By Patricia Hurtado May 5 (Bloomberg) — U.S. authorities looking for the person who tried to blow up a car in New York’s Times Square with firecrackers, propane, gasoline and fertilizer had a valuable ally: the suspect himself. Faisal Shahzad , who was arrested May 3 and charged with attempting to detonate a weapon of mass destruction in one of the busiest intersections in the U.S., left behind a trail of clues including the keys to his Connecticut home and a second vehicle as well as records of mobile-phone calls to a Pennsylvania fireworks shop and from associates in Pakistan. Shahzad may have been “purposefully hapless” so that his possible accomplices could see how the New York police responded to terrorist threats, said Michael Wildes , a former federal prosecutor in Brooklyn, New York. “The materials were rudimentary and the effort was captured on 87 different cameras,” said Wildes, an immigration attorney who represents defectors who cooperate with prosecutors in terrorism cases. “Anybody who has the tenacity to put together a bomb like this doesn’t make these kinds of mistakes. “Or, this may be the dumbest terrorist in the world,” Wildes said. Agents from the Department of Homeland Security arrested Shahzad at New York’s John F. Kennedy International Airport May 3 as he attempted to fly to Dubai, said U.S. Attorney General Eric Holder . Shahzad admitted his role in the plot, Holder said yesterday at a press conference in Washington. Training in Pakistan A U.S. citizen of Pakistani origins, Shahzad was charged with five counts, including attempting to use a weapon of mass destruction and receiving “bomb-making training” in the Waziristan region of Pakistan, after driving a bomb-laden Nissan Pathfinder into Times Square. His plot dated as far back as December, prosecutors said. Shahzad faces as long as life in prison if convicted of the mass destruction weapon charge or acts of terrorism transcending national boundaries, Manhattan U.S. Attorney Preet Bharara said in a statement. After receiving four calls from Pakistan on April 24, Shahzad called the seller of the Pathfinder twice and then bought the vehicle using 13 $100 bills, federal officials said in the criminal complaint. The next day, Shahzad called a store in rural Pennsylvania that sells M-88 firecrackers, authorities said. House, Car Keys Shahzad left his house key along with the key to his Isuzu Rodeo in the Pathfinder that he failed to blow up in Times Square, prosecutors said. The police used that house key to enter his residence and discovered fireworks and fertilizer in a garage. Shahzad left the Isuzu in the parking lot of the Bridgeport, Connecticut, supermarket where he arranged to buy the Pathfinder. Dubai-based Emirates Airlines said U.S. authorities removed three passengers from the May 3 flight from New York to Dubai. After the airliner left the gate and was recalled, Shahzad was arrested, according to a person familiar with the investigation. The other two people were later released, the person said. Shahzad was put on the federal no-fly list early on the afternoon of May 3, said a law-enforcement official who requested anonymity. Within an hour, federal authorities electronically sent out an advisory about his addition to the list. Airlines have to individually update their computer systems with the additions, and Emirates hadn’t done so, the official said. Customs and Border Protection officials discovered the suspect was on the plane after scanning a passenger manifest that airlines are required to submit about 30 minutes before takeoff, the official said. Onboard Arrest Emirates’ flight EK202 landed in Dubai seven hours late, at 2.45 a.m. An American passenger who declined to be identified said he saw three or four police officers enter the aircraft in New York and detain the three men, who were sitting in economy class. The men looked calm as they were taken away, he said. Shahzad got a bachelor’s degree in computer applications and information systems from the University of Bridgeport in 2000 and earned an MBA in 2005, said Michael Spitzer, the school’s provost, in an e-mailed statement. Shahzad worked for three years at Affinion Group Holdings Inc., a company controlled by Leon Black ’s private-equity firm, Apollo Management LP. Affinion, a provider of marketing and customer-loyalty plans, employed Shahzad as a financial analyst in its accounting department from 2006 until 2009, the company said. ‘Dumb Mistakes’ “Not all terrorists are created equally,” said Anthony Barkow , a former Assistant Manhattan U.S. Attorney who handled terrorism cases. “Although some plots are highly sophisticated, others are not. Just like common criminals, aspiring terrorists often get caught because of dumb mistakes.” Barkow cited the 1993 World Trade Center truck bombing as an example of terrorist ineptitude. After the attack, one of the plotters returned to the car-rental company to recover the deposit on the vehicle that held the explosives. “But none of this is to suggest what the law enforcement officials did here was anything other than extraordinary — they identified the perpetrator of this plot at the speed of a television show,” said Barkow, now the director of a center on criminal prosecutions at New York University Law School. “What is often dismissed as the speed of Hollywood fantasy here was reality.” New York Police Department Commissioner Ray Kelly at a news conference yesterday credited investigators for their fast work. “By my calculation, from the time Faisal Shahzad drove into and across Broadway and parked that vehicle, to when he was apprehended last evening at JFK Airport, it was 53 hours and 20 minutes,” Kelly said. “Now, we know that Jack Bauer can do it in 24” hours, Kelly said, referring to Fox Television’s “24” starring Kiefer Sutherland as the anti-terrorism agent Bauer. “But in the real world, 53 is a pretty good number.” The case is U.S. v. Shahzad, 10-00928, U.S. District Court, Southern District of New York (Manhattan). To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net

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Times Square Suspect Admits Involvement in Bombing Attempt, Holder Says

May 4, 2010

By Jim Rubin May 4 (Bloomberg) — Attorney General Eric Holder said the naturalized U.S. citizen from Pakistan who is suspected of trying to explode a car bomb in New York’s Times Square on May 1 has admitted his involvement and is providing “useful information” to authorities. Holder, at a news briefing in Washington, said the attempted bombing was a “terrorist plot” aimed at causing death and destruction, in one of the busiest tourist spots in the world. It should remind Americans of the “constant threat” from those who want to do harm to the U.S., he said. The suspect, Faisal Shahzad , is being cooperative, Holder said, and “has been talking to us and providing useful information.” Shahzad is due to appear in federal court in Manhattan today to respond to terrorism-related charges. He was arrested by agents from the Department of Homeland Security at New York’s John F. Kennedy International Airport last night after he boarded a flight to Dubai, officials said. To terrorists, “New York is America and they want to come back to kill us,” said New York City Police Commissioner Raymond Kelly , standing alongside Holder. Earlier today, President Barack Obama called the attempted car bombing a “sobering reminder” of the threat facing the U.S. and said law enforcement officials are using every tool to determine whether there is a connection to terrorist groups. “Justice will be done, and we will continue to do everything in our power to protect the American people,” Obama said in Washington. “This incident is another sobering reminder of the times in which we live.” Representative Jane Harman , a California Democrat, said Pakistani officials have arrested “alleged facilitators” there as part of a “far broader investigation.” Kelly said earlier that U.S. investigators don’t have any evidence that Pakistani Taliban sympathizers were behind the failed bombing, though a group with that affiliation has claimed responsibility. To contact the reporter on this story: Jim Rubin in Washington at jimrubin@bloomberg.net

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American Citizen From Pakistan Faces Charges Over Times Square Bomb Plot

May 4, 2010

By Henry Goldman and Mark Tannenbaum May 4 (Bloomberg) — A U.S. citizen of Pakistani origins is due in a New York court today to face charges over the attempted car bombing in Times Square on May 1. Faisal Shahzad will appear in Manhattan federal court on “formal charges,” the U.S. attorney’s office for the southern district of New York said in an e-mailed statement, without being more specific. Agents from the Department of Homeland Security arrested Shahzad at New York’s John F. Kennedy International Airport last night as he was attempting to board a flight to Dubai, U.S. Attorney General Eric Holder said at an early morning news conference in Washington. The announcement came less than three days after a botched bombing attempt that led police to evacuate parts of Times Square. “This investigation is ongoing, as are our attempts to gather useful intelligence, and we continue to pursue a number of leads,” Holder said. “But it’s clear that the intent behind this terrorist act was to kill Americans.” Shahzad had recently returned from a five-month trip to Pakistan, where he had a wife, the Associated Press reported citing unidentified law enforcement officials. Pakistan’s Dawn television reported today that the suspect had family links in the port city of Karachi, and visited it last year. Homeland Security Secretary Janet Napolitano , in an interview on NBC TV, said it’s “premature to rule in or out” links to international terrorism. Investigators have no evidence that Pakistani Taliban sympathizers were responsible for the attempt, although a group describing itself as such took credit for it, Police Commissioner Raymond Kelly said. Passengers Removed Dubai-based Emirates Airlines said in an e-mailed statement today that U.S. authorities removed three passengers from a New York to Dubai flight last night and carried out “full security procedures” including the screening of the plane, passengers and baggage. Agents from the Federal Bureau of Investigation and New York City police detectives arrested Shahzad for “allegedly driving a car bomb into Times Square on the evening of May 1,” the Department of Justice said in a statement today. The 1993 Nissan Pathfinder was sold for cash about three weeks ago at a Connecticut shopping mall in a sale arranged through the Craigslist website, CNN reported, citing an unidentified person in law enforcement with knowledge of the investigation. Investigators interviewed the former owner of the bomb- carrying sport-utility vehicle, New York City Mayor Michael Bloomberg said. The person was tracked through the car’s vehicle identification number, which was stripped from the dashboard, Police Commissioner Raymond Kelly said. The number is also typically stamped on parts such as the engine block. ‘Intended to Terrorize’ The attempted bombing “was intended to terrorize,” Robert Gibbs , the White House press secretary, said yesterday. Gibbs said today that President Barack Obama was notified about Shahzad’s arrest at around midnight. The intended detonator, Kelly said, was a can filled with consumer-grade fireworks. The car also held two containers of gasoline and three propane tanks, wired with two clocks, the commissioner said. A man described as about 40 years old was seen on a neighborhood surveillance camera as he hurried through Shubert Alley , a pedestrian walkway between West 44th and West 45th Streets, steps from where the explosive-laden car was parked on May 1, he said. The man can be seen on the video removing a dark shirt, revealing a red T-shirt underneath, Kelly said. He placed the outer shirt in a bag and walked from the scene “in a furtive manner,” the commissioner said. Safe as Ever Police also collected images of the vehicle as it traveled along West 45th Street before being left at a curb near several Broadway theaters, the mayor said. “This city is as safe as it’s ever been,” Bloomberg said. “Is it perfectly safe? No, but we always will have events, we’ve had 11 or so in the last eight years, and every time we have responded appropriately. We keep changing our procedures, we keep studying what happens overseas, and we so far have done the right thing.” The police presence has been increased in the Times Square area. Bloomberg urged tourists and New Yorkers to continue visiting the area and “enjoy a Broadway show.” The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP. To contact the reporters on this story: Henry Goldman in New York City Hall at hgoldman@bloomberg.net ; Mark Tannenbaum at mtannen@bloomberg.net .

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American Citizen From Pakistan Faces Charges Over Times Square Bomb Plot

May 4, 2010

By Henry Goldman and Mark Tannenbaum May 4 (Bloomberg) — A U.S. citizen of Pakistani origins is due in a New York court today to face charges over the attempted car bombing in Times Square on May 1. Faisal Shahzad will appear in Manhattan federal court on “formal charges,” the U.S. attorney’s office for the southern district of New York said in an e-mailed statement, without being more specific. Agents from the Department of Homeland Security arrested Shahzad at New York’s John F. Kennedy International Airport last night as he was attempting to board a flight to Dubai, U.S. Attorney General Eric Holder said at an early morning news conference in Washington. The announcement came less than three days after a botched bombing attempt that led police to evacuate parts of Times Square. “This investigation is ongoing, as are our attempts to gather useful intelligence, and we continue to pursue a number of leads,” Holder said. “But it’s clear that the intent behind this terrorist act was to kill Americans.” Shahzad had recently returned from a five-month trip to Pakistan, where he had a wife, the Associated Press reported citing unidentified law enforcement officials. Pakistan’s Dawn television reported today that the suspect had family links in the port city of Karachi, and visited it last year. Homeland Security Secretary Janet Napolitano , in an interview on NBC TV, said it’s “premature to rule in or out” links to international terrorism. Investigators have no evidence that Pakistani Taliban sympathizers were responsible for the attempt, although a group describing itself as such took credit for it, Police Commissioner Raymond Kelly said. Passengers Removed Dubai-based Emirates Airlines said in an e-mailed statement today that U.S. authorities removed three passengers from a New York to Dubai flight last night and carried out “full security procedures” including the screening of the plane, passengers and baggage. Agents from the Federal Bureau of Investigation and New York City police detectives arrested Shahzad for “allegedly driving a car bomb into Times Square on the evening of May 1,” the Department of Justice said in a statement today. The 1993 Nissan Pathfinder was sold for cash about three weeks ago at a Connecticut shopping mall in a sale arranged through the Craigslist website, CNN reported, citing an unidentified person in law enforcement with knowledge of the investigation. Investigators interviewed the former owner of the bomb- carrying sport-utility vehicle, New York City Mayor Michael Bloomberg said. The person was tracked through the car’s vehicle identification number, which was stripped from the dashboard, Police Commissioner Raymond Kelly said. The number is also typically stamped on parts such as the engine block. ‘Intended to Terrorize’ The attempted bombing “was intended to terrorize,” Robert Gibbs , the White House press secretary, said yesterday. Gibbs said today that President Barack Obama was notified about Shahzad’s arrest at around midnight. The intended detonator, Kelly said, was a can filled with consumer-grade fireworks. The car also held two containers of gasoline and three propane tanks, wired with two clocks, the commissioner said. A man described as about 40 years old was seen on a neighborhood surveillance camera as he hurried through Shubert Alley , a pedestrian walkway between West 44th and West 45th Streets, steps from where the explosive-laden car was parked on May 1, he said. The man can be seen on the video removing a dark shirt, revealing a red T-shirt underneath, Kelly said. He placed the outer shirt in a bag and walked from the scene “in a furtive manner,” the commissioner said. Safe as Ever Police also collected images of the vehicle as it traveled along West 45th Street before being left at a curb near several Broadway theaters, the mayor said. “This city is as safe as it’s ever been,” Bloomberg said. “Is it perfectly safe? No, but we always will have events, we’ve had 11 or so in the last eight years, and every time we have responded appropriately. We keep changing our procedures, we keep studying what happens overseas, and we so far have done the right thing.” The police presence has been increased in the Times Square area. Bloomberg urged tourists and New Yorkers to continue visiting the area and “enjoy a Broadway show.” The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP. To contact the reporters on this story: Henry Goldman in New York City Hall at hgoldman@bloomberg.net ; Mark Tannenbaum at mtannen@bloomberg.net .

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U.S. Citizen of Pakistani Origin Arrested in Times Square Bomb Plot Probe

May 4, 2010

By Henry Goldman and Mark Tannenbaum May 4 (Bloomberg) — U.S. law enforcement authorities said they arrested a naturalized American citizen from Pakistan in connection with the attempted car bombing in Times Square this past weekend. Agents from the Department of Homeland Security arrested Faisal Shahzad at New York’s John F. Kennedy International Airport as he was attempting to board a flight to Dubai, U.S. Attorney General Eric Holder said at an early morning news conference in Washington. The announcement came less than three days after a botched bombing attempt that led police to evacuate parts of Times Square. “This investigation is ongoing, as are our attempts to gather useful intelligence, and we continue to pursue a number of leads,” Holder said. “But it’s clear that the intent behind this terrorist act was to kill Americans.” Agents from the Federal Bureau of Investigation and New York City police detectives arrested Shahzad for “allegedly driving a car bomb into Times Square on the evening of May 1,” the Department of Justice said in a statement early today. The 1993 Nissan Pathfinder was sold for cash about three weeks ago at a Connecticut shopping mall in a sale arranged through the Craigslist website, CNN reported, citing an unidentified person in law enforcement with knowledge of the investigation. Vehicle ID Investigators interviewed the former owner of the bomb- carrying sport-utility vehicle, New York City Mayor Michael Bloomberg said. The person was tracked through the car’s vehicle identification number, which was stripped from the dashboard, Police Commissioner Raymond Kelly said. The number is also typically stamped on parts such as the engine block. The attempted bombing “was intended to terrorize, and I would say that whomever did that would be categorized as a terrorist,” Robert Gibbs , the White House press secretary said yesterday. The intended detonator, Kelly said, was a can filled with consumer-grade fireworks. The car also held two containers of gasoline and three propane tanks, wired with two clocks, the commissioner said. A man described as about 40 years old was seen on a neighborhood surveillance camera as he hurried through Shubert Alley , a pedestrian walkway between West 44th and West 45th Streets, steps from where the explosive-laden car was parked May 1, he said. ‘Furtive Manner’ The man can be seen on the video removing a dark shirt, revealing a red T-shirt underneath, Kelly said. He placed the outer shirt in a bag and walked from the scene “in a furtive manner,” the commissioner said. Police also collected images of the vehicle as it traveled along West 45th Street before being left at a curb near several Broadway theaters, the mayor said. Investigators have “no evidence” that a group of Pakistani Taliban sympathizers were responsible for the attempt, although a self-described group took credit for it, Kelly said. He noted authorities have ruled out the group’s involvement in other attempted and successful attacks around the world after receiving similar messages in the past. Homeland Security Secretary Janet Napolitano , in an interview on NBC TV, said it’s “premature to rule in or out” that the bombing attempt is linked to international terrorism. “This city is as safe as it’s ever been,” Bloomberg said. “Is it perfectly safe? No, but we always will have events, we’ve had 11 or so in the last eight years, and every time we have responded appropriately. We keep changing our procedures, we keep studying what happens overseas, and we so far have done the right thing. And you can never guarantee 100 percent.” The police presence has been increased in the Times Square area. Bloomberg urged tourists and New Yorkers to continue visiting the area and “enjoy a Broadway show.” The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP. To contact the reporters on this story: Henry Goldman in New York City Hall at hgoldman@bloomberg.net ; Mark Tannenbaum at mtannen@bloomberg.net .

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Dubai Stocks Decline After Deyaar, Aldar Losses; Abu Dhabi, Qatar Retreat

May 2, 2010

By Zahraa Alkhalisi and Vivian Salama May 2 (Bloomberg) — Dubai’s benchmark index declined, leading a drop in United Arab Emirates shares, after Deyaar Development PJSC and Aldar Properties PJSC reported first- quarter losses. Deyaar , the Dubai-based developer, tumbled to its lowest close on record. Aldar , Abu Dhabi’s biggest property developer, fell to its lowest level in two months after missing analysts’ estimates. The Dubai Financial Market Index slipped 0.9 percent to 1,724.27, extending last month’s 5.6 percent decline. ADX General Index retreated for a fifth day, losing 0.1 percent. Earnings “have all come out weaker than expected, particularly on the real-estate front,” said Dubai-based Rabih Sultani , a fund manager at Duet Mena Ltd. in Dubai, a unit of Duet Group, which oversees $2.1 billion. Dubai, the second-biggest sheikhdom in the United Arab Emirates, went from being the world’s best performing property market to the worst within a year. The property market in the U.A.E. was hurt after banks curtailed lending and speculators exited at the onset of the financial crisis. Deyaar declined 3.1 percent to 40.7 fils, its lowest close since the shares began trading in September 2007. The company posted a net loss of 100 million dirhams ($27.2 million). Aldar dropped 3.6 percent to 3.78 dirhams. The net loss was 314.2 million dirhams after a year-earlier profit . Analysts surveyed by Bloomberg had expected a profit. Qatar’s DSM 20 index dropped 0.4 percent. The Kuwait Stock Exchange Index added 0.1 percent. Oman’s MSM30 Index rose 0.3 percent. Saudi Arabia’s Tadawul All Share Index slipped 0.2 percent to 6,908.17 at 1:54 p.m. in the kingdom. Bahrain’s market was closed for a holiday. To contact the reporter on this story: Zahraa Alkhalisi in Abu Dhabi at zalkhalisi@bloomberg.net

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Abu Dhabi Shares Fall to Lowest in Two Months on Aldar Loss; Dubai Drops

May 2, 2010

By Zahraa Alkhalisi May 2 (Bloomberg) — Abu Dhabi’s benchmark index retreated for a fifth day to the lowest in almost two months, leading a decline in United Arab Emirates shares, after Aldar Properties PJSC and Deyaar Development PJSC reported first-quarter losses. Aldar , Abu Dhabi’s biggest property developer, fell as much as 5.6 percent after missing analysts’ estimates. Deyaar , the Dubai-based developer is poised for the lowest close on record. The ADX General Index retreated 0.4 percent to 2,767.25 at 1:06 p.m. in the emirate. The measure has lost 1.9 percent in the past five days. Dubai’s benchmark index declined 0.7 percent. Earnings “have all come out weaker than expected, particularly on the real-estate front,” said Dubai-based Rabih Sultani , a fund manager at Duet Mena Ltd. in Dubai, a unit of Duet Group, which oversees $2.1 billion. Home prices in Abu Dhabi dropped 30 percent from the market’s peak in the second quarter of 2008 and will remain little changed this year, Nomura Holdings Inc. said in a January report. The property market in the U.A.E. was hurt after banks curtailed lending and speculators exited at the onset of the financial crisis. Aldar was last down 1.8 percent at 3.85 dirhams after reaching a low of 3.7 dirhams. The net loss was 314.2 million dirhams ($86 million) after a year-earlier profit . Analysts surveyed by Bloomberg had expected a profit. Deyaar declined 2.9 percent to 40.8 fils, headed for the lowest close since the shares began trading in September 2007. The company posted a net loss of 100 million dirhams. Qatar’s DSM 20 index dropped 0.5 percent. Saudi Arabia’s Tadawul All Share Index gained for a second day, increasing 0.1 percent. Oman’s MSM30 Index rose 0.3 percent. The Kuwait Stock Exchange Index was little changed. Bahrain’s market was closed for a holiday. To contact the reporter on this story: Zahraa Alkhalisi in Abu Dhabi at zalkhalisi@bloomberg.net

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Children’s Liquid Cold, Allergy Medicine Recalled

May 1, 2010

WASHINGTON — The Food and Drug Administration said Saturday it was investigating a health-care company for possible other problems following its recall of more than 40 over-the-counter infant’s and children’s liquid medications. McNeil Consumer Healthcare, based in Fort Washington, Pa., issued the voluntary recall late Friday in the United States and 11 other countries after consulting with the FDA. The recall involves children’s versions of Tylenol, Tylenol Plus, Motrin, Zyrtec and Benadryl, because they don’t meet quality standards. The FDA said it was reviewing procedures at McNeil, which appears to be the sole source of the problems. “We are following through with the facility to make certain that everything has been checked,” said FDA spokeswoman Elaine Gansz Bobo. According to McNeil and the FDA, some of the products recalled may have a higher concentration of active ingredient than is specified on the bottle. Others may contain particles, while still others may contain inactive ingredients that do not meet internal testing requirements. The FDA called the potential for serious medical problems “remote,” but it advised consumers to stop using the medicine as a precaution. It said a health care professional should be consulted if a child has recently taken any of the recalled products and is exhibiting unexpected symptoms. The FDA also says parents in the interim should consider substitute child medications, such as generic versions. It does not recommend that children be given adult-strength Tylenol or Motrin because they are not intended for younger age groups. The medicines were made and distributed in the United States, and exported to Canada, the Dominican Republic, Dubai, Fiji, Guam, Guatemala, Jamaica, Puerto Rico, Panama, Trinidad and Tobago and Kuwait. Details are available by telephone at 1-888-222-6036 or on the Web at . http://www.mcneilproductrecall.com ___ On the Net: McNeil Product Recall Information: http://www.mcneilproductrecall.com Food and Drug Administration: http://www.fda.gov/medwatch

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Dubai Shares Climb After Emaar Profit Triples, Oil Rises Above $85 Barrel

April 25, 2010

By Zahra Hankir April 25 (Bloomberg) — Dubai’s benchmark index climbed to the highest in a week after Emaar Properties PJSC , the measure’s biggest company by weighting, said quarterly profit more than tripled and oil rose above $85 a barrel. Emaar, the builder of the world’s tallest skyscraper, rose to the highest since April 15. Dubai Islamic Bank PJSC, the United Arab Emirates’ largest Islamic lender, advanced the most in two weeks. The DFM General Index increased 0.8 percent to 1,769.34, the highest since April 18. “Emaar’s earnings beat expectations and the stock is looking very cheap and attractive,” said Haissam Arabi, chief executive officer of Gulfmena Alternative Investments in Dubai. “Global markets and commodities are performing well, helping push up the Saudi market yesterday and Dubai’s index today.” Emerging-market stocks rose on April 23 after Greece asked the European Union to activate a rescue package and the biggest jump in U.S. new home sales in almost five decades bolstered optimism the economy is improving. Crude oil for June delivery climbed 1.7 percent to $85.12 a barrel on the New York Mercantile Exchange last week. Shares in Saudi Arabia, holder of about 20 percent of the world’s proven oil reserves, gained 1.9 percent yesterday, the most since December. Beating Analysts Emaar climbed 2.5 percent to 4.04 dirhams, the highest since April 15. The company said after markets closed last week that first-quarter profit more than tripled to 760 million dirhams ($207 million). That exceeded the 336 million-dirham average of six analyst estimates compiled by Bloomberg. The shares trade at estimated earnings of 5.9 compared with 16.4 for Qatar-based Barwa Real Estate Co. Dubai Islamic Bank rose 1.3 percent to 2.29 dirhams. Saudi Arabia’s Tadawul All Share Index extended yesterday’s gain, increasing 0.2 percent as of 1:31 p.m. in Riyadh. Abu Dhabi’s ADX General Index rose 0.2 percent, Bahrain’s measure added 0.4 percent and Qatar’s gained 0.1 percent. The Kuwait Stock Exchange Index fell less than 0.1 percent and Oman’s MSM30 Index lost 0.5 percent. To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

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