MEED Middle East Economic Digest articles from December 2007

MEED Middle East Economic Digest archives from December 2007

SK wins Kuwait gas train.(Project news on MEED.com)(SK Engineering and Construction Co.)(Brief article)
December 7, 2007... [ILLUSTRATION OMITTED] South Korea's SK Engineering & Construction has won a KD190m ($679m) contract to build the state's fourth gas fractionation train on behalf of Kuwait National Petroleum Company (KNPC). The project covers the...

Aldar approaches contractors for Al-Raha Gardens.(Project news on MEED.com)
December 7, 2007... Abu Dhabi's Aldar Properties has approached selected contractors to build the estimated AED2.5bn ($680m) town centre at its Al-Raha Gardens development.

Nakheel issues second sukuk.(Project news on MEED.com)
December 7, 2007... Dubai real estate developer Nakheel is issuing its second sukuk--a convertible $750m Islamic bond--which will close to subscribers in January.

Koreans in line for ethylene amines plant.(Project news on MEED.com)
December 7, 2007... Hanwha Engineering & Construction and Hyundai Engineering have been selected for the main construction package on the Jubail ethylene amines complex.

Manama issues long-awaited lube plant tender.(Project news on MEED.com)
December 7, 2007... Bahrain Petroleum Company (Bapco) has issued a tender for the contract to build the grassroots lube base oil refinery at Sirra.

Samsung wins Ras Tanura upgrade.(Project news on MEED.com)
December 7, 2007... South Korea's Samsung Engineering has won the $430m contract to install a diesel hydrotreater at the Ras Tanura refinery.

Dubai awards road contracts.(Project news on MEED.com)(Brief article)
December 7, 2007... The Roads & Transport Authority has awarded two contracts worth AED205m ($56m) to local companies for upgrades to the Al-Nahdah II project and a new bridge on Al-Qudrah Road.

Conferences.(Project news on MEED.com)(Conference news)(Calendar)
December 7, 2007... Middle East Private Equity 2008 15-16 January 2008 Park Hyatt, Dubai, UAE www.meed.com/pe The rapid growth of the Gulf economy, fuelled by oil prices approaching $100, offers huge potential for private equity (PE) investors. Today, there...

MEED projects.(Statistical table)(Brief article)
December 7, 2007... MEED PROJECTS GULF PROJECTS ($ million) 3 December 27 November % change 3 December % change 2007 2007 on month 2006 on year Bahrain 29,320 29,320 0.0 ...

The five factors that will shape the Middle East In 2008.(THE LAST WORD)
December 7, 2007... [ILLUSTRATION OMITTED] With oil about $100 a barrel, this does not look like the moment for government and business in the GCC to prepare for the worst. But there are signs that there is a year of trouble ahead that will disrupt the...

Reduce the need for gas: the region currently lacks the necessary supplies of gas: the UAE must decide whether to prioritise the use of gas for electricity generation or industry.(POWER)(Brief article)
December 7, 2007... [ILLUSTRATION OMITTED] This week, it emerged that Dubai Electricity & Water Authority is considering partnering with a private developer to build a power and desalination plant in Fujairah (page 11). In October, the UAE cabinet amended...

Cost risk can be managed out: improved project management should focus on better forward-planning and partnering.(PETROCHEMICALS)(Brief article)
December 7, 2007... As anybody working in the Gulf projects sector will confirm, it costs far more to develop a project today than it did three years ago. Engineering, procurement and construction costs have risen exponentially as demand for materials, manpower...

Inflation is price of record oil: there are few tools available to Gulf finance ministers to tackle an overheating economy.(ECONOMY)(Brief article)
December 7, 2007... Backed by high oil prices, governments across the region have been boosting money supply by pumping huge amounts of investment into their economies. But while that has underpinned the Gulf's booming projects market, it has also added to the...

Riyadh must give majors more time: it was hoped the ministry would welcome a request that would give new impetus to the hunt for gas.(ENERGY)(Brief article)
December 7, 2007... [ILLUSTRATION OMITTED] Four years after Shell and Total signed their initial agreement to explore Saudi Arabia's Rub al-Khali (Empty Quarter) for gas, progress for the consortium and three others has been disappointing. Few hydrocarbons...

Gulf can lead on renewable energy: a commitment to using solar energy could put the Gulf at the leading edge of sustainable development.(CONSTRUCTION)(Brief article)
December 7, 2007... Gulf developers are rightly proud of the iconic structures that are creating a fresh genre of modern Arab architecture. They have been praised for pushing the boundaries of architectural design and the engineering community has met the...

Sonatrach unveils $15bn steel project: Algiers seeks partner to develop world's largest iron ore mine as centrepiece of its three-part steel scheme.(INDUSTRY: ALGIERS)
December 7, 2007... Algiers is seeking an international partner to develop what could become the biggest iron ore mine in the world, as part of a $15bn steel project. The three-part project involves the development of iron ore deposits in Gara Djebilet, near...

BP plans to increase oil production: UK oil major seeks agreement with Kuwait Oil Company to use enhanced recovery methods.(ENERGY: KUWAIT)(British Petroleum Company PLC)
December 7, 2007... BP is in talks with state upstream operator Kuwait Oil Company (KOC) to increase production of conventional oil reserves in north and west Kuwait. The UK oil major has held a technical services agreement (TSA) with KOC for nearly 15 years,...

Sinopec gas find sparks exploration hopes in Empty Quarter.(ENERGY: SAUDI ARABIA)
December 7, 2007... A company exploring for hydrocarbons in the Rub al-Khali, (Empty Quarter) has found gas, sparking hopes of the first meaningful discovery in the region. "It is too early to say what quantities we are looking at but there is a sense of...

Developers struggle to finish projects.(POWER: GCC)(Brief article)
December 7, 2007... A surge in activity at independent water and power projects (IWPP) in the region could leave utility firms and developers struggling to complete the projects on schedule. The tight market conditions could also allow new entrants into the...

Dubai in talks with private developer for Fujairah plant: discussions mark a flesh strategy for the emirate's power and water authority.(POWER: UAE)
December 7, 2007... Plans to develop an independent water and power project (IWPP) in Fujairah represent a major change in strategy for the Dubai Electricity & Water Authority (Dewa), marking the first time that it has commissioned a private investor to develop a...

Union finalises plans to build city metro: four undergound lines costing $7bn will link to rail network and improve public transport.(TRANSPORT: KUWAIT)(Brief article)
December 7, 2007... Kuwait is finalising plans for Kuwait City's metro network, which includes sections of underground track. The Kuwait Overland Transport Union (Kotu), which is running the project, estimates the metro will cost $7bn. The project...

Red Sea Gateway secures $454m for Jeddah port terminal.(FINANCE: SAUDI ARABIA)(China Harbours Engineering Co.)(Brief article)
December 7, 2007... The Red Sea Gateway Terminal Company has secured SR1.7bn ($454m) of financing for the construction of a new terminal at Jeddah Islamic Port. Al-Rajhi Bank has underwritten a SR1.7bn Islamic finance facility. This includes a SR1.275bn ijara,...

Cairo scales back Suez Canal redevelopment project.(TRANSPORT: EGYPT)
December 7, 2007... The redevelopment of the Suez Canal is to be scaled back because of concerns over the economics of the project. The Suez Canal Authority (SCA) has postponed plans to deepen the canal from 66 feet to 72 feet, pending further studies. A plan...

Maaden awards Al-Jalamid to Chinese: Guizhou Hongfu wins $350m contract to build 'beneficiation' plant at mine in the north of the kingdom.(INDUSTRY: SAUDI ARABIA)
December 7, 2007... Saudi Arabian Mining Company (Maaden) has awarded China's Guizhou Hongfu Industry & Commerce Development Company (Hongfu) the contract to build a beneficiation plant at the Al-Jalamid mine in the north of the kingdom. The project is part...

Abu Dhabi to award $10bn sour gas deal: frontrunners lobby state operator and government for $10bn onshore exploration contract.(ENERGY: UAE)
December 7, 2007... Abu Dhabi National Oil Company (Adnoc) has confirmed that an award for the onshore Shah sour gas field will be made before the end of the year as oil majors vie for the $10bn contract. Omar Suwaina, onshore division manager for exploration...

Riyadh to invite interest in wastewater privatisation.(WATER: SAUDI ARABIA)(Brief article)
December 7, 2007... Saudi Arabia's Water & Electricity Ministry plans to invite expressions of interest for the Riyadh wastewater privatisation in January 2008. Eight wastewater treatment plants will be sold to private investors. These include four existing...

Safco reviews Jubail expansion as contractor costs spiral.(PETROCHEMICALS: SAUDI ARABIA)
December 7, 2007... Saudi Arabian Fertilisers Company (Safco) has postponed pre-feasibility studies for a project to increase urea production capacity at Jubail fertiliser complex because of rising costs. A shortage of skilled contractors and engineers needed...

Nakheel to launch infrastructure trust: fund set to be one of the first in the region could include roads and utilities at Palm Jumeirah.(COMPANIES & MARKETS: UAE)
December 7, 2007... Local developer Nakheel plans to launch a listed infrastructure trust, one of the first in the region, that may include roads and utilities on Nakheel's Palm Jumeirah project. "We have a lot of infrastructure, for instance on the Palm...

Ruwais bid highlights rise of Koreans: low prices and willingness to take on risk behind dominance of South Korean contractors in the Gulf.(ENERGY: UAE)(Abu Dhabi Oil Refining Co.)
December 7, 2007... South Korea's GS Engineering & Construction is low bidder for the Ruwais green diesel project, planned by Abu Dhabi Oil Refining Company (Takreer), with an offer of abont $1bn. GS undercut bids from its compatriot SK Engineering &...

Hedge funds target Dubai International Financial Centre.(BANKING & FINANCE: UAE)(Brief article)
December 7, 2007... Hedge funds dominate applications from asset management companies to join the Dubai International Financial Centre (DIFC). "We have a pipeline of close to 100 firms in asset management, of which 85 per cent are hedge fund players," says...

Orascom dispute with France Telecom surprises analysts.(TELECOMS: EGYPT)
December 7, 2007... Orascom Telecom's decision to take France Telecom to court over their joint ownership of Mobinil has confounded analysts, who view Egypt's largest mobile operator as one of the most promising Middle East telecoms companies in the medium term...

Algiers searches for uranium to expand nuclear energy: regulator and legislation to restructure sector will be introduced in 2008.(POWER: ALGERIA)
December 7, 2007... Algiers is planning a fresh uranium exploration programme in a bid to increase its reserves and boost its use of nuclear energy. The country has limited capacity to produce nuclear power at present. Legislation governing its development...

Gulf water grid to use local plants.(WATER: GCC)(Brief article)
December 7, 2007... Increasing construction costs have forced the GCC to consider using its member countries' water plants to provide water to the Gulf, says a source close to the $3.86bn megaproject. "Construction and materials prices in the GCC have risen,...

Gas hunt comes up empty: pressure on firms to find gas in the Empty Quarter is intensifying.(SAUDI ARABIA)
December 7, 2007... In the northeast quarter of Saudi Arabia's vast and inhospitable Rub al-Khali (Empty Quarter), drilling on the second well in EniRepSa's 51,400-square-kilometre contract area has slowed to less than a metre an hour. As with every other...

Subsidies test Dahabi government: with the oil price at a record high and the cost of cereals rising, Jordan's subsidies are unsustainable. But plans by the new government of Prime Minister Nader Dahabi to cut them carry significant political risks.(Jordan)
December 7, 2007... In the recent book 'The Life of King Hussein in War and Peace', the king is quoted as saying: "We were totally cut off and we needed oil and there was only one way: to fly it across Israel into Jordan." Hussein was recounting Jordan's oil...

Kingdom hotel investments: following a series of major acquisitions, the company plans to focus on developing its assets.(REAL ESTATE)
December 7, 2007... COMPANY SNAP SHOT Date established 2000 Main business sectors Hotel and resort investment and development Main business regions Middle East, Africa and Asia Shareholder capital $1.1bn CEO Sarmad Zok Guests enjoying...

Q&A: Sarmad Zok, CEO.(Business Close-Up)(Interview)
December 7, 2007... Do you employ different strategies working across such varied markets? No, we have the same overriding philosophy and discipline whether we are in Accra or Vietnam. The issues are the same. You make sure you have assessment criteria and...

Manama fights to regain status: with its oil reserves running out, Bahrain is focusing on developing its financial services industry in an attempt to regain its position as the region's pre-eminent financial centre.(BAHRAIN)
December 7, 2007... Covering only 25 square kilometres, Manama is home to almost 400 financial services institutions, and more are on their way. In October, the Central Bank of Bahrain (CBB) licensed four institutions Including an insurance company, an investment...

Fiscal expansion fuels inflation: Gulf states need monetary policy tools to combat rising prices driven by excess liquidity.(MONEY SUPPLY)
December 7, 2007... GCC Inflation is the biggest economic issue in the GCC right now, threatening to tear apart plans to unite the region under a single currency. Governments frequently point to the huge scale of projects under way and claim they will...

Special report: construction.(green architecture)(Brief article)
December 7, 2007... [ILLUSTRATION OMITTED] Throughout the current real estate boom, governments and developers in the Gulf have been derided for their lack of concern for the environment. In the race to set new records for building height and speed of...

Gulf design goes back to its roots: while the region's many iconic, signature buildings are attracting global attention, simpler, more traditional designs are quietly making a comeback.(ARCHITECTURE)
December 7, 2007... The Burj Dubai, the Guggenheim Museum at Abu Dhabi's Saadiyat island, Dubai's Burj Al-Arab, the Abu Dhabi Museum of Modern Art and The Gate in Kuwait City are just some of the Gulf projects, designed by international architects, that are making...

Local firms thrive in the shadows: while the big international architects are capturing the public imagination with their cutting-edge designs, local companies are benefiting most from the construction boom.(GULF ARCHITECTS)
December 7, 2007... Despite the influx of international architects to the region, the majority of projects depend on the expertise of local architects and engineering consultants. Tall towers, museums, convention centres and luxury hotels may capture the...

Waiting for the boom to begin: slow decision-making is delaying the onset of a construction boom in the kingdom, but the promise of new opportunities is attracting interest.(SAUDI ARABIA)(M. Arthur Gensler Jr. and Associates Inc.)(Statistical table)
December 7, 2007... "Saudi Arabia is a confusing picture," says Ian Mulcahey, a principal in the practice area for masterplanning at London-based architect Gensler. The firm is bidding for several projects in the kingdom. "On the one hand, there seems to be a lot...

A sustainable strategy: Gulf developers are meeting the challenge of climate change by combining modern technology with ancient building techniques.(ENVIRONMENT)
December 7, 2007... With the UAE alone producing more carbon dioxide (C[O.sub.2]) per person than any other country in the world, the Middle East is a major contributor to the amount of the greenhouse gases being pumped into the atmosphere. One of the biggest...

Rival set to reshape market: US glass manufacturer Gulfguard's dominance in the region is about to be challenged as a local competitor opens its own facilities.(GLASS)
December 7, 2007... The US' Guardian Glass, which has dominated the Gulf's glass market since the 1990s through its subsidiary Gulfguard, is facing a competitive threat in the region for the first time. From August next year, customers will be able to turn to a...

Qatar gas industry: the six most influential executives in Qatar's gas industry.(The MEED List)
December 7, 2007... Abdullah bin Hamad al-Attiyah COMPANY Qatar Petroleum BIOGRAPHY Abdullah bin Hamad al-Attiyah is chairman and managing director of Qatar Petroleum. He is also Energy & Industry Minister and Deputy Prime Minister. As head of Qatar's...

Tenders Committee launches bidding interviews.(Project news on MEED.com)(Brief article)
December 14, 2007... [ILLUSTRATION OMITTED] Kuwait's Central Tenders Committee is asking three firms bidding for a $650m-plus gas project to answer questions. Snamprogetti from Italy, Petrofac from the UAE and SK Engineering & Construction from South Korea...

Saudi Kayan awards $400m Jubail contracts.(Project news on MEED.com)
December 14, 2007... Saudi Kayan Petrochemical Company has awarded contacts worth more than $400m on its giant Jubail project to Mohammed al-Mojil Group from Sandi Arabia.

Vodafone is preferred bidder for Qatar licence.(Project news on MEED.com)
December 14, 2007... UK telecoms giant Vodafone is the preferred bidder for the second mobile phone licence in Qatar.

Degremont and Besix win water deal.(Project news on MEED.com)
December 14, 2007... A joint venture of Degremont of France and Besix of Belgium has won the 10-year contract for a 220,000 cubic-metre-a-day sewage system.

National Iranian Oil Company strikes deal with Chinese.(Project news on MEED.com)
December 14, 2007... Tehran has done a deal to sell 160,000 barrels a day of crude to China's Sinopec under a one-year contract.

Dewa invites bids for power station.(Project news on MEED.com)
December 14, 2007... Dubai Electricity & Water Authority (Dewa) has invited bids for its Hassyan power and desalination station. The deadline for bids is 31 March 2008.

Dubai awards Palm Deira bridge deal to Bel Hasa.(Project news on MEED.com)(Bel Hasa Six Construct)(Brief article)
December 14, 2007... The AED300m ($81.7m) contract to build a bridge between Palm Deira and Dubai has been awarded to Bel Hasa Six Construct, a joint venture with a Belgian company.

Conferences.(Project news on MEED.com)(Calendar)
December 14, 2007... Arabian World Construction Summit 11-12 February 2008 Emirates Palace Hotel, Abu Dhabi www.arabianconstructionsummit.com Arabian World Construction Summit (AWCS) is the 'who's who' event of the Middle East construction market. AWCS...

Islamic Project Finance: the dawn of a new era.(INSIGHT)(Brief article)
December 14, 2007... [ILLUSTRATION OMITTED] Islamic Project Finance: the dawn of a new era. After a series of false starts, Islamic project finance is coming of age. Increasingly used in Saudi Arabia, Sharia-compliant borrowing for projects is set to increase...

Gulf projects ($ million).(MEED PROJECTS)(Statistical table)(Brief article)
December 14, 2007... GULF PROJECTS ($ million) 10 Dec 3 Dec % change 10 Dec % change 2007 2007 on month 2006 on year Bahrain 29,320 29,320 0.0 29,815...

Suwaidi must remain in post: .(ECONOMY)(Nasser al-Suwaidi)(United Arab Republics. Central Bank of the United Arab Republics)(Brief article)
December 14, 2007... [ILLUSTRATION OMITTED] It is easy to argue that Sultan bin Nasser al-Suwaidi has failed in his role as UAE Central Bank governor using the traditional barometer of monetary policy performance: inflation. In the 16 years Al-Suwaidi has held...

Dirty water is no joke.(WATER)(Brief article)
December 14, 2007... At first its sounds quite funny But the fact that people are starting to notice the smell of sewage in the Dubai air is no laughing matter. Dubai's malodorous atmosphere is a serious problem, both for the emirate's carefully managed image...

A lesson for the northern region.(UAE)(Brief article)
December 14, 2007... An estimated $20bn worth of mega real estate projects are now under way in the northern emirates. The investment is to be welcomed and is vital if the UAE's smaller economies are not to fall farther behind the powerhouses of Abu Dhabi and...

Algiers can resist terror campaign.(ALGERIA)(Brief article)
December 14, 2007... [ILLUSTRATION OMITTED] The twin attacks on Algiers on 11 December at left nearly 70 people dead have rekindled fears of a return to the dark days of the 1990s when the Algerian economy was virtually shut down by civil war. There is no...

Feminine touch boosts economy.(ECONOMY)(Brief article)
December 14, 2007... In the past, women in the Gulf have benefited from economic growth in the region rather than contributed to it. Thanks to the region's wealth, they have not been under pressure to enter the labour force or start their own businesses. And they...

Al-Suwaidi rejects resignation rumours: UAE central bank governor vows to retain his position until GCC launches single currency.(ECONOMY: UAE)(Interview)
December 14, 2007... UAE Central Bank governor Sultan bin Nasser al-Suwaidi has told MEED he does not intend to step down from his post when his four-year term ends on 18 December. Responding to widespread media speculation that he is set to be replaced by Abu...

Baghdad agrees loan for Umm Qasr port: Japan to lend $100m to redevelop southern seaport, but political dispute stalls $15bn project.(TRANSPORT: IRAQ)
December 14, 2007... The Iraqi government has agreed a $100m loan arrangement to redevelop the country's deep seaport at Umm Qasr in the south of the country. However, a proposed $15bn overhaul of the port remains mired in political wrangling between the...

Residency cap and minimum wage to top GCC agenda.(ECONOMY: UAE)(Brief article)
December 14, 2007... A GCC residency cap, limiting the time spent in the region by unskilled workers to six years, and a UAE minimum wage will top the agenda for member states in 2008. Commenting on the proposed labour legislation, UAE Labour Minister Ali...

Dubai struggles to treat sewage: water treatment facilities buckle under demands of rapid population growth and development.(WASTEWATER: UAE)(United Arab Emirates)
December 14, 2007... Contaminated water is being used in Dubai's irrigation networks and discharged into Dubai Creek because treatment facilities cannot cope, Dubai Municipality has admitted. The government body says it is failing to meet quality standards in...

Areva to assess nuclear desalination: French firm expected to carry out study following nuclear co-operation deal.(POWER: LIBYA)
December 14, 2007... French power contractor Areva is likely to be asked to conduct a feasibility study into the use of nuclear power for desalination in Libya, according to a source at the Electricity, Water & Gas Ministry. The study will propose locations...

Banks line up for New Cairo wastewater treatment plant.(WATER: EGYPT)(Housing, Utilities & Urban Development Ministry)(Brief article)
December 14, 2007... The launch of Egypt's first major public-private-partnership (PPP) project for the New Cairo wastewater treatment plant has attracted individual banks to submit interest on their own, in the hope of aligining with a developer at a later stage...

Tripoli struggles to attract interest in first gas licensing: international oil companies say quality of acreage does not warrant the terms.(ENERGY: LIBYA)
December 14, 2007... Few international oil companies chose to bid in Tripoli's first gas round on 9 December, with those that decided not to saying the terms were not commensurate with the prospects on offer. Only a third of the 35 companies shortlisted...

Sirte Basin wells to cost $130m each.(ENERGY: LIBYA)(Brief article)
December 14, 2007... BP has revealed that it will cost at least $130m to drill each well in the offshore Sirte Basin as it prepares to begin work on its $1.3bn exploration drive in Libya. In November, BP received approval to proceed with the deal from Libya's...

Credit turmoil to delay $2bn Emal bond issue by a year: banker says developer has funds to cover first three years of construction.(BANKING & FINANCE: UAE)(Emirates Alttminl'um)
December 14, 2007... A $2bn bond planned to part-finance the Emirates Alttminl'um (Emal) project could be delayed by at least a year if the contraction in the global credit markets continues in 2008, according to a banking source close to the deal. Emal had...

Indian firm in talks over Yadavaran.(ENERGY: IRAN)(ONGC Videsh Ltd.)(Brief article)
December 14, 2007... India's ONGC Videsh has launched talks with National Iranian Oil Company (NIOC) over securing a minority stake in the Yadavaran field alongside China's Sinopec. ONGC held a series of discussions with the state-run oil firm earlier this...

Dubai Pearl buyer promises to honour previous contracts.(CONSTRUCTION: UAE)(United Arab Emirates)
December 14, 2007... Dubai Pearl Free Zone has bought the troubled Dubai Pearl real estate project for up to 3.8bn [pounds sterling]. The consortium of investors led by Abu Dhabi-based Al-Fahim Group says it will honour all previous contracts made with buyers,...

Etisalat to raise $1.8bn in debt financing: Telecoms company to appoint six banks to arrange funding package to develop its mobile network.(COMPANIES & MARKETS: EGYPT)
December 14, 2007... Etisalat Misr is to appoint six banks before the end of the year to arrange nearly $850m worth of debt to finance the development of its mobile network in Egypt before the end of 2007, and could launch a further funding package in excess of...

PetroRabigh share price to be revealed by end of year.(COMPANIES & MARKETS: SAUDI ARABIA)(Rabigh Refining & Petrochemical Company)(Brief article)
December 14, 2007... The pricing of shares in Rabigh Refining & Petrochemical Company (PetroRabigh) is expected to be announced by the end of 2007, although uncertainty remains over whether the shares will be priced at a par value of SR10 ($2.68). Toshiki...

Three groups vie for $544m Al-Sufouh tram network: commercial bids to be opened in January with construction to start soon after.(TRANSPORT: UAE)
December 14, 2007... Three groups have submitted bids to Dubai's Roads & Transport Authority (RTA) for the AED2bn ($544m) design-and-build contract for the Al-Sufouh tram scheme. The bidders are: France's Alstom with the local/Belgian Bel Hasa Six Construct;...

Sabic warns of project cancellations.(PETROCHEMICALS: REGIONAL)(Saudi Basic Industries Corporation )(Brief article)
December 14, 2007... The head of Saudi Basic Industries Corporation (Sabic) has warned the industry faces delays and potential project cancellations over the next few years because of a spike in engineering, procurement and costs (EPC) costs and a shortage of...

Beirut braces for year-long upgrade: authority says mobile networks will need investment after privatisation but disputes length of process.(TELECOMS: LEBANON)
December 14, 2007... Lebanon's telecoms regulator says that the country's two state-owned mobile phone networks can be frilly repaired in less than 12 months after they are privatised in February 2008. "These are networks that require investment," says Kamal...

Mubadala launches Beni Saf study: construction of $5bn smelter project expected to start in 2009 despite rising costs.(INDUSTRY: ALGERIA)
December 14, 2007... Feasibility studies for the Beni Saf aluminium smelter have been launched by Abu Dhabi-based Mubadala and Dubai's industrial giant Dubai Aluminium (Dubal), and will be completed by May 2008, says a source close to the deal. "We are now...

Orascom Construction sells cement unit to France's Lafarge.(INDUSTRY: EGYPT)(Brief article)
December 14, 2007... France's Lafarge has agreed to buy Egypt's Orascom Construction industries' (OCI) cement group for $12.9bn and $2bn in debt. Two cash payments of $8.8bn and $4.1bn will be made in January and March 2008 respectively. OCI's board will...

Paris rekindles old relationships: restoring France's influence in the Maghreb is President Sarkozy's priority.(DIPLOMACY)(Cover story)
December 14, 2007... Since his election in May, Nicolas Sarkozy has made two state visits to the Maghreb--one in October to Morocco, the other in early December to Algeria, which he also visited officially in July. Also in July, the French president flew to...

The return of Big Oil: with the nationalisation of the Middle East oil industry, major international companies were excluded from the region's easy-to-access reserves. But as fields begin to dry up, their expertise is in demand.(Energy)(Industry overview)
December 14, 2007... Much has been written about the diminishing role of international oil companies (IOCs) in controlling the world's energy supplies. While state-run national oil companies (NOCs) have historically depended on the capital and technological...

Al-Jaber Group: Abu Dhabi's largest contractor is developing divisions to provide basic materials and secure its supply chain.(CONSTRUCTION)(Company overview)
December 14, 2007... COMPANY SNAPSHOT Founded 1970 Group turnover 2006 $1.2bn Assets $2.5bn Workforce 40,000 The Al-Jaber Group has come a long way since its chairman, Obeid Al-Jaber, decided to form a construction company in 1970. At that...

Shipping boom transforms Suez Canal: the world's principal trade route is carrying out a series of redevelopments to maintain its premier position.(TRANSPORT)
December 14, 2007... EGYPT The Suez Canal is the world's most famous waterway. Wars have been fought over it and, after 100 years in operation, its importance to the global economy is undiminished. With international shipping enjoying an unprecedented boom,...

UAE.(Special Report)(United Arab Emirates)(Brief article)
December 14, 2007... [ILLUSTRATION OMITTED] It was 18th century German philosopher Immanuel Kant who said that the best way to predict the future was to invent it. This is a lesson that some in the UAE understand better than others. The UAE's seven...