Interpreting Middle East Economic News and Analyzing Market Trends

Category: News

Indian Prime Minister vows not to impose capital controls then imposes capital controls

Indian Central Bank

Source: Live Mint

 

Since the rapid fall of the Indian Rupee, which has fallen nearly 20% against the US dollar this year, the Indian government and Central Bank have been struggling to stop the slide.  Their attempts have had some success so far, but it looks like they are resorting to capital controls going against previous promises not to do so.

 

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Israel: Saudi Arabia’s new friend in the Middle East

Abdullah-Mubarak-Asad

The good old days; King Abdullah (center) with his buddies, Mubarak (left) and Asad (right)

Saudi Arabia and Israel rarely see eye-to-eye publicly.  Now, however, both countries are openly aligned on Syria and Egypt.  They both support Egypt’s current military rulers and both are upset with the US for not bombing Syria and dropping its aid to Egypt.

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Middle East high tech startups take off

Silicon-Valley-Middle-East-2013

Source:  Smithsonian.com

The Middle East has been a hotspot for tech start-ups lately.  This growing trend has been overshadowed by all the bad news coming out of the region since 2011.  Don’t expect any competition to Silicon Valley any time soon, but entrepreneurship is catching on in the Middle East in a big way.  Political troubles are only adding more fuel to the trend.

 

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Turkey issues $1.25 billion sukuk and sets up Islamic finance center as it finally embraces Islamic finance

Istanbul

 Source: Haberler

The Turkish government decided to jump back into the sukuk market with its latest $1.25 billion sukuk al-ijara.  The country’s first sovereign sukuk was back in September 2012 with a $1.5 billion issue.  The first issue as well as this latest issue have been very successful with high demand from the Middle East.  So much so that Turkey has now decided to embrace Islamic finance by setting up an Islamic finance research center.

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Dubai’s first IPO in over four years has no trades, but Al-Hilal Bank’s latest sukuk issue was 12 times oversubscribed

 

BLME-hits-Nasdaq-Dubai

Source: Amilin TV

 

Bank of London & the Middle East, also known as BLME, listed its shares on Nasdaq Dubai, the Emirate’s second exchange, on October 8th, but had no trading on its first day.  BLME is a six-year old Islamic bank based in London.  This marks Dubai’s first IPO in over four years.  Nasdaq Dubai is the smaller of the two exchanges in the Emirate.  The Dubai Financial Market (DFM) is the primary exchange, which has lately seen its highest trading activity since the financial crisis.  The DFM is up nearly 70% year-to-date on a lot of euphoria, which has spread across all sectors in the UAE, especially real estate and Islamic finance.  The latest sukuk issue to hit the market was 12-times oversubscribed… so what happened to this IPO?

 

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