Interpreting Middle East Economic News and Analyzing Market Trends

Category: Stock Markets

Is another real estate bubble forming in Dubai?

Rents are up as much as 40% in some areas of Dubai and the stock market is up over 50% so far this year… add this to the 100% rise in the stock market in 2013 and you can see how things seem to be getting out of hand again.

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National Bank of Abu Dhabi pays top dollar to hear Bernanke’s misguided views on the economy

 Why is anyone still listening to Bernanke?

Ben Bernanke along with other high-flying central bankers and politicians were stars in Abu Dhabi recently as they spoke at the annual Global Financial Markets Forum (GFMF).  The two-day event was hosted by the National Bank of Abu Dhabi (NBAD). Other stars included; Jean-Claude Trichet, the former president of the European Central Bank; Lawrence Summers, the former US treasury secretary; and James Baker, the former US secretary of state.  There was some controversy over the $250,000 fee NBAD paid to Bernanke since it was more than his annual salary at the Fed.  The real question that should be asked is why would anyone pay to hear from someone who has been wrong on so many counts?

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Junk sukuk – the next trend in Islamic finance… and Kuwait looks to launch derivatives to pump up market

Sukuk Trading

What’s the best way to increase trading volume in stale markets?  Launch exotic new products to entice new investors.  The UAE is looking to launch high-yielding (a.k.a. junk) sukuk as it pushes to become the global hub for Islamic finance and Kuwait is eying the derivatives markets.

  

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Is the Fed losing control of the market?

QE3 - 2012 to 2013

Chart Source: Yahoo!

 

The saying goes ‘never bet against the Fed.’  The U.S. Federal Reserve’s nearly endless resources deter even the most seasoned investors from going against it.  What the Fed wants, the Fed gets… or so we are to believe…

    

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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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