AME Info, Abu Dhabi, United Arab Emirates, finance and economy briefs [AME Info, Abu Dhabi, United Arab Emirates]

July 26--WEEKLY FX ROUNDUP: MARKETS WATCH FOR EU BANK STRESS TESTS: The markets opened this morning in a mixed range and rather conservative in nature following Friday's release of the European bank stress tests. The stress test results showed that of the ninety-one banks undergoing evaluation, only seven need to raise a combined EUR3.5bn of capital. And although banking giants Goldman Sachs and Barclays estimated that European lenders would need to raise anywhere from EUR38bn and EUR85bn respectively, the news could have been perceived in a positive light although contradicting sentiments could point to the fact that the results may not represent a true picture.

WAHA CAPITAL Q2 PROFIT DOWN 90 percent: Abu Dhabi-listed Waha Capital, in which the emirate's government holds a 15 percent stake, has said its Q2 net profit plunged by 90 percent to Dhs5.99m ($1.63m) from Dhs54.5m a year earlier, as earnings in invested firms slumped, Reuters has reported. The firm's revenues for the three months ending June 30 were Dhs76.7m, down 20 percent.

UAE VAT 'WOULD SIMPLIFY BUSINESS': PricewaterhouseCoopers (PwC) has said that the introduction of value-added tax (VAT) in the UAE could simplify business for companies in the country by replacing the thousands of different charges and levies currently imposed, The National has reported. "A consolidation of the charges and levies would make life simpler for the business community and the community at large," Dean Rolfe, a tax partner for the Middle East at PwC said. "If you think about how much money it must cost the various government departments to collect the different charges, a consolidation of the process would also make life easier for the government."

IRAN GROUPS 'STILL TRADING' IN UAE: Iranian officials have rejected reports on the freezing of bank accounts for the country's companies and businessmen in the UAE, saying that Iranian companies are still trading there, ISNA news agency has reported. The accounts belonged to companies or individuals whose names are listed in the recent Security Council resolution against Iran, Masoud Daneshmand, head of the Iran-UAE chamber of commerce said. "I have not seen the name of any private company in the list," Daneshmand said.

TADAWUL MARKET WEAKENS 0.2 percent: The Saudi Arabian stock market could not sustain its positive momentum from Saturday, as WTI oil prices may head lower later this week, possibly moving back toward $77, research firm CPM Group says. Petrochemical leader Sabic ended flat at $88.25. "Last week crude oil fell after EIA data revealed United States crude oil inventories had unexpectedly increased 360,000 barrels. Later in the week crude oil rose toward $80 on concerns over adverse weather conditions possibly disrupting offshore oil production in the Gulf of Mexico", CPM research writes. Nevertheless, the Saudi economy strengthened. According to Amman-based Jordinvest, non-oil Exports in Saudi Arabia surged by 39 percent to SR11.9bn ($3.2bn) in May 2010 compared with SR8.5bn ($2.3bn) in May 2009. Saudi Arabia's main non-oil exports were plastics, petrochemicals and metals comprising 32 percent of the total non-oil exports.

DOHA BOURSE ADDS 0.29 percent: The Qatar Exchange (QE) started the week positively, closing 0.29 percent higher at 6,972.18 points. Most banks added value while insurers ended with losses. Zad Holding Co. posted the largest advanced gaining 3.85 percent, closing at QR56.10. Commercial Bank of Qatar (CBQ, up 0.89 percent at QR68.00) and Doha Bank (1.14 percent higher at QR44.00) were among the top 10 shares.

KUWAIT EXCHANGE RECOVERY EXTENDED: Kuwait's KSE Market index added half a percent on Sunday, closing at 6,515.60 points. After oil prices (WTI Sep. 10) surged 3.79 percent last week, the norther GCC stock market constantly added value. Aref Investment Group gained 9.80 percent, closing at KD0.056. Arab Insurance Group (Arig) weakened by 11.9 percent as the top losing share, as it ended at KD0.148.

ABU DHABI MARKET ADDS 0.30 percent: Islamic insurer Abu Dhabi National Takaful topped the charts on Sunday, jumping 9.86 percent to Dhs4.01. The lead index at the UAE capital's bourse ended 0.30 percent higher at 2,558.65 points. As in Dubai, real estate related firms posted losses. Industry bellwether Aldar Properties lost 1.56 percent, closing at Dhs2.50. RAK Properties weakened by 2.38 percent to Dhs0.40.

SHAKY START AT DUBAI BOURSE AS TRADING VALUE SURGES: The Dubai Financial Market (DFM) failed to reap benefits from positive Saudi market inputs and oil prices approaching $80 per barrel. Losing 1.44 percent, the DFM Index closed at 1,506.95 points. Emaar Properties lost 3.56 percent, closing at Dhs3.25. Gulf Finance House from Bahrain bucked the downtrend by adding 4.12 percent as its shares ended at Dhs0.479. Five shares gained, 18 declined and four remained flat. Traded value surged 74 percent to Dhs230.65m, while volumes advanced by 18 percent to 122.15m stocks changed hands.

TEHRAN EXCHANGE BEGINS FUTURES TRADING: The Tehran Stock Exchange has begun today offering derivatives based on Iranian banks to diversify its market and attract foreign investors. The exchange is introducing six futures contracts on two banks, Managing Director Hassan Ghalibaf-Asl told Bloomberg in an interview. The contracts, based on Parsian Bank and Karafarin Bank, will expire in two, four and six months. The exchange said it hopes to increase the number of companies covered by futures contracts to at least 10 by March.

IRAN TO EASE FOREIGN INVESTMENT REGULATIONS : Iran's finance and economic affairs ministry has said it plans to facilitate regulations for foreign investments, Mehr news agency has reported. "According to that (regulations), the small-scale (foreign) investors can easily take their capital out of the country and the large-scale investors, which possess 10 percent of the agency's value or 10 percent of the management position, can take their capital out of the country after two years upon receiving permission (from the government)," minister Seyyed Shamseddin Hosseini told a conference of the annual World Investment Report (WIR) by the UN Conference on Trade and Development (UNCTAD). In 2009, Iran attracted some $3bn in foreign investments, an 86 increase year-on-year, the minister noted.

SAUDI ARABIA TOP FDI RECIPIENT IN MIDDLE EAST: According to the 'World Investment Report' by the UN Conference on Trade and Development (UNCTAD), Saudi Arabia was the eighth largest recipient of foreign direct investment in the world in 2009, attracting $36bn, Arab News has reported. Top sources of FDI inflows to the kingdom during 2009 included the United States with $5.8bn, followed by Kuwait with $4.3bn, the UAE with $3.8bn, France with $2.6bn and Japan with $2bn.

QATAR'S GROWTH MAY SLOW BY HALF, ECONOMIC ADVISER SAYS: Ibrahim Ibrahim, economic adviser to Emir of Qatar, has said the Gulf state's economy may slow by more than half in the next two years, as the country completes its largest energy projects, Bloomberg has reported. With the world's third-largest reserves of natural gas, Qatar is likely to post "double-digit" growth for the next two years, but will cool after that to an annual nominal rate of no more than 9 percent, assuming the government follows the guidance of senior economic planners, Ibrahim told the news service. "We are going to recommend a targeted economic growth that emphasizes sustainability, competitiveness, and not just simply a number," he said. While the country could maintain double-digit growth beyond 2012, "we don't believe" that should be the strategy, he added.

TADAWUL MARKET STARTS THE WEEK POSITIVELY : GGC market, opening trading the week on Sunday, received positive inputs from the Saudi Arabian stock market Tadawul, which starts trading on Saturday. Its main index Tasi advanced 1.6 percent to 6,187.39 points, thanks to rising energy, petrochemical and insurance shares. Shares of Zamil Industrial Investment Co. (Zamil Industrial) surged 2.55 percent, ending at SR44.20.The Board of Zamil Industrial announces that it has approved distributing SR45m as bi-annual dividends for the first half of 2010 at SR0.75 per share (representing 7.5 percent of the paid-up capital).

JORDAN'S DEBT CLIMBS 2.4$ PCT IN MAY : According to data by Jordan's finance ministry, the kingdom's gross domestic and foreign debt continued to rise in May with remittances and aid flows still pressured by the global downturn, Reuters has reported. Total debt rose 2.4 percent to JD9.89bn ($13.9bn) at the end of May compared to the end of last year. The latest preliminary figures show that public debt dropped to 56.2 percent from 59.4 percent of projected gross domestic product in 2010, due to forecasts of a lower budget deficit this year. Gross net domestic debt rose to JD6.079bn at the end of May against JD5.791bn dinars at end of 2009, comprising 35.6 percent of the country's projected 2010 GDP

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