Interpreting Middle East Economic News and Analyzing Market Trends

Archive for May, 2013

Dubai World urged to sell more assets to pay creditors

Dubai World, the Dubai government’s prized possession, is not out of the woods yet.  The company which owns DP World, the global ports operator, renegotiated debts and set a new repayment schedule in 2011 after the company ran into liquidity issues.  The company has an upcoming payment of $4.5 billion, which is not due for another two years.  However, some of its creditors are getting nervous at the speed the company is moving at selling assets to be able to meet this payment on time.

 

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Kuwait’s lawmakers propose raising minimum wage to highest in the world

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Kuwait’s National Assembly Building – Source: Arabian Gazette

Kuwait’s dysfunctional parliament is at it again.  This time they are working on a new bill to raise the minimum wage of Kuwaitis to three times higher than the world’s current highest; Luxembourg.

 

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Tatarstan plans first sukuk issue

The Russian Republic of Tatarstan is planning on being the first Russian republic to issue sukuk (Islamic bond equivalent).  Tatarstan is one of the wealthier Russian republics with a majority Muslim population.  Its entry into the sukuk market is another sign of the growing interest in Islamic finance, not only from the Middle East and Malaysia, but also from countries looking to tap into a new source of funding.

 

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‘Bikinis and booze are welcome in Egypt’ as Brotherhood chooses money over religion

Sharm El-Sheikh, Egypt – Source:  Treehugger.com

It’s no secret that Egypt is short on cash these days.  Qatar and Libya have already pumped in billions to help support the economy.  However, discussions with the IMF have not gone so well and the $4.8 billion loan (expect Egypt to ask for even more) is on hold for now.  What’s a new cash-strapped Islamist government to do?  For starters, they can promote bikinis on the beach and booze at the bar…

 

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Israel has nothing to gain by bombing Syria

Israel launched its second air strike on military targets in Syria on Sunday.  The first strike was on Friday near Syria’s border with Lebanon.  The latest strike was near Damascus, the capital.  The first strike was said to target Hezbollah, which is Israel’s sworn enemy.  Israel, however, has nothing to gain by targeting Damascus.

 

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