Investment Dar wins buyback approval April 21, 2008
Posted by mylastresort in analysis.Tags: AlDar, investment, Islamic, KSE, kuwait, Kuwaiti, KWSE, Stock Exchnage
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The Investment Dar, a Kuwaiti Islamic investment firm, stated that it had won central bank approval to buy back up to 10% of its shares. The six-month buyback period begins on April 23 (Wednesday), Investment Dar said in a statement on the kuwaitse.com
Kuwait’s policy strategy plan 2009 – 2014 April 2, 2008
Posted by mylastresort in analysis, bahrain.Tags: kuwait, Parliament, uae, Dubai, Investments, Oil, Government, United Arab Emirates, Report, Gulf, bahrain, Arab, Kuwaiti, Outlook, Countries, Future, Policy strategy, Strategy, Policy, Manama, Kuwait City
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Information in a 2009 – 2014 policy strategy plan formulated by Kuwait’s planning council has been made public. The policy strategy is not strictly adhered to, nor is it marketed to the public, rather it is just a report amid many reports circulated by the government.
Here are a few of the plans:
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Boost non-oil economy (at less than 10% of revenue)
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Increase foriegn investment (become a financial hub)
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Sell land/Ease ownership rules (in preparation of post-oil era)
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Continue privatizations (eg. selling of Kuwait Airways Corp.)
Future of Kuwait’s banking sector March 31, 2008
Posted by mylastresort in analysis, rumors.Tags: Ahli, Bank of Kuwait, Banking Sector, Banks, Burgan, CBK, Central Bank of Kuwait, Commercial, economy, Effects of politics, Government, Industrial, inflation, kuwait, Kuwaiti, Loans, National
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The Central Bank of Kuwait’s recent steps in an effort to reduce the money supply and eventually lower inflation will have severe consequenses on the local banking sector. To recap the following steps were taken by the CBK:
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Consumer loans cap will be 40% of salary, from 50%
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Pensioners loans’ cap to 30% of income
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A new limit on interest rates of 3% over discount rate, from 4%
The banking sector in general relies heavily on lending funds to consumers at high rates at long term intervals. The loan cap on potential customers will decrease the amounts banks can lend and along with the limits on the interest rate charged will lower returns on the already decreased amounts taken. This step in itself will lower the revenues’ for the banking sector which will be evident in the 2009 statements. My prediction is that, based on the new regulations, banks’ revenues will be between 20 -25% lower than last year. (more…)
Kuwaiti Dinar rises to strongest point March 27, 2008
Posted by mylastresort in analysis.Tags: CBK, Central Bank of Kuwait, Dinar, kuwait, Kuwaiti, KWD, Record, Revaluation, Rise, US Dollar, USD
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Kuwaiti Dinar rises to to its strongest point since dropping the peg.
- Todays mid point .26530 (3.7693)
- Change (from previous day) 0.41%
- Change since May 19, 2007 8.99%
The recent rise in the Kuwaiti Dinar is due to the dollars decline overnight to reach near record lows against the majors.
Kuwait welcomes a Al-Rajhi bank March 25, 2008
Posted by mylastresort in saudi arabia.Tags: Al-Rajhi Bank, banking, Banks, Central Bank, FDI, First Saudi Bank, Foreign banks, investment, Islamic bank, kuwait, Kuwaiti, Number of, Sharia Compliant, total number of banks in
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The Central Bank of Kuwait (CBK) announced that it had granted Al-Rajhi Bank an initial license to open a single branch in the state.
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Al-Rajhi is Saudi Arabia’s leading bank
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First Saudi bank to open in Kuwait
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Operates under sharia law
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Fourth Gulf bank to obtain a permit in Kuwait
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Seventh foreign bank to obtain a permit
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Sixteenth bank to open in Kuwait
Mandatory Qatarization in one year March 24, 2008
Posted by mylastresort in analysis, qatar.Tags: Citizenship, Civil Service Minister, economy, Employment, Government mandate, inflation, Jobs, kuwait, Kuwaiti, Kuwaitisation, KWD, Nationalization, Private sector, QAR, Qatari, Qatari Riyal, Qatarization, Rates, Riyal, Sultan Hassan al-Dosari, Work, Workforce
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Qatar has just announced a plan to private and public sector firms with a directive to nationalise 20% of their workforce within a year. This plan comes into effect following Kuwaits mandate of “Kuwaitisation” where 40% of the workforce has already been to citizens. The succesful campaign which ran in Kuwait in the recent years also provided citizens with a government salary in addition to the one recieved by the private companies. The combined salaries lowered the costs to the private companies and improved the efficiency of the workplace. The Qatari plan is for 20% of the workforce to be of Qatari citizenship by March 31, 2009.
“It is our responsibility to provide jobs to unemployed compatriots… There is frustration among the Qatari youth… We are encouraging fellow citizens to take up jobs in the private sector”
- Sultan Hassan al-Dosari, Civil Service Minister
Qatar facts:
- 3rd biggest natural gas reserves in the world
- Population of 1.5 million (less than 1/3 nationals)
- Relies heavily on foriegn labor
- Record high inflation rates
- Recently lowered rates
- Rumors of revaluation of Qatari riyal or [2]
Kuwaiti parliament and economy March 20, 2008
Posted by mylastresort in analysis, bahrain.Tags: Bad Debt, bahrain, Debts, Deputy, Dubai, Economic, Elections, Emir, Finance, Government, Growth, Gulf Consulting Company, kuwait, Kuwaiti, May, Mustafa Behbehani, Parliament, politics, Reform, Regulators, Sabah, Stock Exchange
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News that the parliament would be dissolved sent the Kuwait stock exchange index up 1.54% to its biggest one day jump in two weeks, and a record high (14,445.40 points). Newly elected members would be seen to push through policies to spur economic growth in the country.
“There is a big disappointment with this assembly which has hindered economic reforms… there is hope that things will move in the right direction with a new assembly”
- Mustafa Behbehani, Head of Gulf Consulting Company
The long-term plan for Kuwait would be to mimic its Gulf neighbors and diversify its economy away from oil, such as Bahrain and Dubai, who have already established themselves as regional financial centers. (more…)
Islamic banking rising in Kuwait March 17, 2008
Posted by mylastresort in analysis.Tags: banking, Banks, Biased, Errors, Islamic Banking, kuwait, Kuwait Finance House, Kuwaiti, Middle East, Regulations, stock markets, Study Reasearch
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A study published by some local Kuwaiti newspapers was conducted on the widespread popularity of Islamic banking in the Kuwaiti economy. I could not find the name of the author or company which conducted the study. The study claims that 65% of all transactions, in Kuwait, are now done according to Islamic regulations. The study claimd that deposits in Islamic banks rank better than conventional, and ranked them “first,” although the guidelines for rating were not clear it used Kuwait Finance House as a citation.
The study also stipulates that citizens and expatriates have started investing into transportation, communication and even in the hospitality industry that abide by Islamic laws. Although the study doesnt reflect whether it is correlated with Islamic beleifs or whether the industry itself is growing.
The methods of conducting the study were not clear.
