MEED Middle East Economic Digest articles from December 2008

MEED Middle East Economic Digest archives from December 2008

Egypt: chlorine dosing and injection systems.(Tenders)
December 5, 2008... Supply of chlorine dosing and injection systems at water treatment plants.

Iran: offshore drilling rig operations.(Tenders)
December 5, 2008... A 42-month contract for the National Iranian Drilling Company to provide consultancy and supply services for offshore drilling rig operations.

Iraq: fire-fighting trucks.(Tenders)
December 5, 2008... Supply of 30 four-by-two fire-fighting trucks.

Kuwait: chemical storage and handling facilities.(Tenders)
December 5, 2008... Provision of bulk storing and handling facilities at gathering centres.

Lebanon: water project.(Tenders)
December 5, 2008... Carrying out a water project including pumping stations, reservoirs and transmission lines.

Oman: airport passenger terminal building.(Tenders)
December 5, 2008... Construction of a passenger terminal building for a new international airport.

Oman: port and drydock consultancy.(Tenders)
December 5, 2008... Provision of construction management consultancy services at a port and drydock.

Qatar: offshore/onshore operation machinery.(Tenders)
December 5, 2008... Supply of machinery for offshore and onshore operations.

Saudi Arabia: pipeline corridor support facilities.(Tenders)
December 5, 2008... Provision of pipeline corridor support facilities at petrochemicals quay at an industrial port.

Saudi Arabia: substations and transmission lines.(Tenders)
December 5, 2008... Engineering, procurement and construction of a substation and transmission lines.

UAE: substations and cable laying.(Tenders)
December 5, 2008... Supply of substations and carrying out cable-laying works including submarine cables.

UAE: reservoir construction.(Tenders)
December 5, 2008... Construction of 120-million-gallon Al-Ghafat reservoir phases 1 and 2 for Dubai Electricity & Water Authority.

Yemen: ice plants.(Tenders)
December 5, 2008... Provision, installation and operation testing of block, flake ice plants and generators for a fisheries resources management and conservation project.

Mubadala awards $813m Zayed University campus.(Contract awards)(Brief article)
December 5, 2008... [ILLUSTRATION OMITTED] Mubadala Development Company has awarded a AED3bn ($813m) contract to build Zayed University campus to the joint venture of the local A1-Habtoor Engineering Enterprises and South Africa's Murray & Roberts...

Petroleum Development Oman awards $400m turbine job.(Contract awards)
December 5, 2008... Petroleum Development Oman has awarded a seven-year, $400m contract to supply, install and commission gas turbines to Bharat Heavy Electricals of India.

Egypt awards offshore concession to Edison.(Contract awards)
December 5, 2008... The Egyptian General Petroleum Corporation has given Italy's Edison a contract to explore the Abu Qir concession.

Tatweer picks Al-Nasr for Tiger Woods development.(Contract awards)
December 5, 2008... Local contractor Al-Nasr has won a AED582m ($159m) contract to build Dubailand's Tiger Woods golf development.

Saudi Arabia selects Doosan for desalination plant.(Contract awards)
December 5, 2008... Saline Water Conversion Corporation has selected South Korea's Doosan Heavy Industries & Construction for the SR1.1bn ($293m) contract to carry out work on Jeddah's desalination plant.

Events.(Brief article)(Calendar)
December 5, 2008... Middle East Project Finance 2009 25-27 January The Ritz-Carlton, Manama, Bahrain Outlining the challenges and opportunities in project finance resulting from the global credit crisis. www.meed.com/events/projectfinance ...

Aviation reform is long overdue.(SAUDI ARABIA)
December 5, 2008... The kingdom's aviation infrastructure compares poorly with that of its regional peers Certain issues are too pressing to wait for the good times to return [ILLUSTRATION OMITTED] Anyone familiar with Jeddah's King Abdulaziz...

Tower delay signals failure.(Trump International Hotel and Tower contracts with Nakheel)(Brief article)
December 5, 2008... The cranes on top of skyscrapers that once symbolised the city's stunning development will now emphasise how things have changed They promised it would not happen, but it did. Dubai has put one of its most high-profile building projects on...

Algiers should commit to reform.(Credit Populaire d'Algerie)(Brief article)
December 5, 2008... Foreign banks may be pushing for greater participation in the market, but the results are not encouraging Like other countries largely closed off from the international financial system, Algeria has found itself in a strange position during...

Competition will benefit Saudis.(TELECOMS)(Brief article)
December 5, 2008... [ILLUSTRATION OMITTED] Healthy competition has become acrimonious after Saudi Telecom took Zain to the regulator Saudis were spoilt for choice this autumn when Zain, the Kuwaiti operator, launched mobile phone services in the kingdom...

Region is waking up to slowdown.(ECONOMY)(Brief article)
December 5, 2008... Efforts to create a single currency block in the GCC are a distraction from core domestic issues Bank of England governor Mervyn King said in 2000 that his ambition as was to make the job more boring. His Saudi counterpart, Hamad...

Riyadh plans overhaul of aviation sector: General Authority of Civil Aviation to be broken up, Jeddah airport fast-tracked and airlines created.
December 5, 2008... Riyadh is to launch a comprehensive overhaul of the kingdom's aviation sector, restructuring the regulator, accelerating work on a $20bn airport project in Jeddah, and creating up to 20 new charter airlines. The General Authority of Civil...

Baghdad to set up state bank to attract oil and gas investors: authorities consider privatising government bodies that control the sector.(ENERGY: IRAQ)
December 5, 2008... Iraq has launched plans for a government-run investment bank as part of a drive to attract fresh funds into the country's energy industry, and is considering privatising several of its key oil and gas organisations. Abdul-Hadi al-Hassani,...

International firms line up for acreage.(ENERGY: QATAR)(Brief article)
December 5, 2008... Qatar Petroleum (QP) has prequalified at least 10 International oil companies (IOCs) for the second of four gas blocks following the award of Block 4 North to Germany's Wintershall in November. One IOC executive based in Doha tells MEED at...

Gas shortage triggers switch to coal: Ras al-Khaimah Investment Authority to request proposals for first coal-fired power plant next year.(POWER: UAE)
December 5, 2008... An independent water and power project planned by Ras al-Khaimah Investment Authority (Rakia) will use coal feedstock because of growing concern over the availability of gas in the region. Rakia will issue a request for proposals for the...

State developers exempt from ring-fencing legislation: lawyers identify loophole in accounting rules intended to protect investors.(UAE: REAL ESTATE)
December 5, 2008... Dubai's biggest state-owned developers are exempt from the emirate's escrow law, which is designed to protect off-plan purchasers from losing their investments on projects that are left incomplete or where developers go bust. Legal experts...

Nas makes executive changes.(National Air Services appointed new chief executive officers )(Brief article)
December 5, 2008... National Air Services (Nas) has appointed new chief executive officers (CEOs) for the group and its low-cost airline, Nas Air, in the latest round of managerial changes in Saudi Arabia's troubled budget aviation sector. The appointments...

Saudi Telecom reports rival over international call rate: operator questions legality of low tariff offered under Zain's One Network deal.(TELECOMS: SAUDI ARABIA)
December 5, 2008... Saudi Telecom has reported its rival operator Zain to the kingdom's telecoms regulator, alleging that the Kuwaiti-based firm has broken the kingdom's law. Saudi Telecom says Zain's One Network, which allows Saudi customers to make...

Regulator to face challenge over fines.(TELECOMS: IRAQ)(Brief article)
December 5, 2008... Kuwaiti operator Zain and Qatar's Qtel are challenging the decision by Iraq's telecoms regulator to fine them for breaking the terms of their mobile phone licences. Iraq's Communications & Media Commission will fine both companies' Iraqi...

Emaar enters talks with Jafza over industrial zone project: UAE firm and Kuwaiti consortium vie for King Abdullah Economic City scheme.(CONSTRUCTION: SAUDI ARABIA)
December 5, 2008... Emaar, The Economic City (Emaar EC), is in talks with two international companies for the $6bn project to develop the 64-square-kilometre industrial zone at King Abdullah Economic City (KAEC) in Saudi Arabia. Sources close to the project...

Modon plans three further city schemes.(Saudi Industrial Property Authority )(Brief article)
December 5, 2008... Modon, formerly the Saudi Industrial Property Authority (Sipa), is to launch three further industrial cities in the kingdom. Two of the dries, Al-Baha and Makwah, will be in the south of the kingdom and cover 3 square kilometres and 6 sq km...

Alfa chief executive steps down.(Brief article)
December 5, 2008... The chief executive officer of mobile phone operator Alfa has stepped down amid government accusations that the firm has mismanaged the network. Ineke Botter left Lebanon as soon as the company's four-and-a-half-year contract came to an...

State energy firm to boost output despite oil price falls: KOC invites 18 firms to bid for contract to build $500m gathering centre.(ENERGY: KUWAIT)
December 5, 2008... Kuwait Oil Company (KOC) is proceeding with a raft of projects to boost capacity as part of its aim to hit production of 4 million barrels a day (b/d) of oil by 2020. The move is in stark contrast to other state oil firms in the region,...

Muscat seeks fresh proposals for Sultan Qaboos revamp: port authority asks bidders to draw up plans for a cruise ship and tourist port.(Oman is relaunching a scheme to overhaul the port of Sultan Qaboos in Muscat)
December 5, 2008... Oman is relaunching a scheme to overhaul the port of Sultan Qaboos in Muscat, one of several contract developments within the country's ports sector. The Port Services Corporation (PSC) has reissued an invitation to international...

Regulator to be launched by March.(COMPANIES & MARKETS: EGYPT)(Brief article)
December 5, 2008... Egypt's Investment Minister Mahmoud Mohieldin expects the country's new financial services regulator to be launched by March 2009, as the draft legislation for its creation is poised to be approved by parliament. The regulator, which has...

Salalah award faces three-month delay: client requests 90-day bond extension from contractors after regulator intervenes to probe bidding process.(Oman Power & Water Procurement Company )
December 5, 2008... Oman Power & Water Procurement Company (OPWP) is asking bidders for the Salalah independent water and power project (IWPP) to extend their bid bonds by three months. The move follows an intervention by the Omani Authority for Electricity...

Acwa Power consortium submits low bid for Rabigh plant.(Rabigh independent power project)(Brief article)
December 5, 2008... A consortium of the local Acwa Power international and Korea Electric Power Corporation is the low bidder for the Rabigh independent power project (IPP). Bids for the project were submitted to the client, Sandi Electricity Company (SEC),...

Banks' refusal to issue bid bonds undermines tenders.(CONSTRUCTION: UAE)
December 5, 2008... Small contractors in Dubai say the banking crisis is compromising the tender process as finance houses become increasingly reluctant to issue bid bonds. Without bid bonds, contractors are unable to guarantee their tender prices,...

Foreign investors shun Saudi stocks: huge falls in global markets undermine moves to open Tadawul to institutional investors.(Capital Market Authority)
December 5, 2008... Moves by the Capital Market Authority (CMA) to open the Saudi stock exchange (Tadawul) to foreign investment for the first time have been undermined by the huge falls in global markets. In August, the CMA gave permission for foreign...

Foster Wheeler wins project management role at Ras Tanura.(ENERGY: SAUDI ARABIA)(Brief article)
December 5, 2008... The US' Foster Wheeler is to work alongside the US' KBR to project manage the $22-26bn Ras Tanura refinery upgrade and integrated petrochemicals complex. KBR was awarded the $140-150m deal, one of the largest ever project management...

Trump Tower delay shatters confidence: Dubai contractors fear no project is safe following announced postponement of high-profile scheme.(CONSTRUCTION: UAE)
December 5, 2008... Contractors and consultants working in Dubai now fear no project is safe from the economic slowdown, following the decision by local developer Nakheel to delay the construction of Trump International Hotel and Tower. Unlike other projects...

Ailing bourse needs transparency: Kuwait's bid to shore up its exchange is doing little to tackle the underlying weaknesses of its stocks.(MARKETS)
December 5, 2008... With the growing financial turmoil threatening to become a political crisis, on 19 November, Kuwait became the first Gulf state to announce a massive injection of state funds into its stock market in an attempt to arrest sharp falls. The...

Oil falls pile pressure on Tehran: with oil now priced at less than $50 a barrel and Iran's economy faltering, the policies of President Ahmadinejad are coming under increasing criticism from the state's political elite.(Iran)
December 5, 2008... Despite the recent claims of Iran's President Mahmoud Ahmadinejad that he can successfully manage the state's economy on $5-a-barrel oil, he is facing a growing economic malaise that is emerging primarily as a consequence of his financial and...

Disputes undermine gas supply: the window of opportunity for the Gulf to create a single gas supply network is closing, despite efforts by Saudi Arabia to heal the bilateral rifts that have dogged its development.(GCC gas)
December 5, 2008... In early July 2006, the sponsors of the Dolphin gas pipeline received a nasty surprise. An official Saudi Foreign Affairs Ministry document was faxed to the National Bank of Abu Dhabi, one of the banks financing the $3.5bn Qatar-UAE gas...

Hamad al-Sayari: governor, Saudi Arabian Monetary Agency: Saudi central bank governor Hamad al-Sayari insists that falling oil prices will not delay projects in the kingdom.(Interview)
December 5, 2008... The shift in the language and confidence of regional policymakers over the past few months has been as dramatic as the shifts in the direction and momentum of the price of oil. Oil has fallen to less than $50 a barrel, from a high of $147 a...

Haya water: established to drive the reuse of water in Muscat, the Omani company aims to become profitable by 2014.(Oman Wastewater Services Company )(Company overview)
December 5, 2008... COMPANY SNAPSHOT Date established 2002 Main business sector Wastewater Main business region Oman Chief executive officer (CEO) Omar Khalfan al-Wahaibi Oman Wastewater Services Company (OWSC) was rebranded Haya Water in...

Q&A: Omar Khalfan Al-Wahaibi, CEO.(Business Close-up)(Interview)
December 5, 2008... Why have you recently rebranded as Haya Water? We believe it will make the name more attractive and easier to remember for our customers and prospective employees. It is also to link our image with what we actually do, which is making water...

Damascus faces increased scrutiny: a more conciliatory approach to Syria from incoming US President Barack Obama will leave Damascus increasingly exposed.(SYRIA)
December 5, 2008... Over the past five years, the regime of Syria's President Bashar al-Assad has benefited from the confrontational approach of the administration of US President George Bush. The Republican administration's branding of Syria as a state...

Special report: banking.(impact of financial crises on private banking)(Report)(Brief article)
December 5, 2008... [ILLUSTRATION OMITTED] Private banking is staging a comeback. The Gulfs first oil boom in the 1970s prompted the region's wealthy individuals to put their profits into Europe's private banks. The boom of the past five years, however,...

Sector confidence ebbs away: Gulf banks posted healthy third-quarter results in October, but as the impact of the global financial crisis is felt across the region, the outlook is turning negative.(FINANCIAL MARKETS)(Statistical data)
December 5, 2008... Gulf banks boosted their balance sheets by $233bn in the first nine months of 2008, despite banks around the world being cash-starved for most of the year. The total assets of the 20 largest GCC banks rose by 32 per cent compared with the...

Private banks prove their worth: with the reputations of major investment banking institutions tarnished by the financial crisis, Gulf investors are increasingly seeking a safe haven for their money.(PRIVATE BANKING)
December 5, 2008... For all the talk of poisoned assets, sub-prime writedowns and clogged financial arteries, there are a few comers of the banking world that have escaped the worst of the global meltdown. Private banking is holding up stronger than most,...

Hassan Ali Juma: the new president and chief executive officer of Arab Banking Corporation aims to quickly transform the bank's funding sources and operating model.(INTERVIEW)
December 5, 2008... Just 12 months ago, Hassan Ali Juma's primary commitment as managing director of National Bank of Bahrain (NBB) was how to keep the bank at the top of the kingdom's retail banking sector. As a long-serving non-executive independent director...

Liquidity shortage triggers price war: with global financial institutions no longer lending to each other, and loan growth outstripping deposit growth in the region, competition for customers is becoming intense among Gulf banks.(RETAIL BANKING)
December 5, 2008... The banking story of the second half of 2008 has been the end of interbank lending. The drying up of liquidity has prompted several Gulf banks to switch their focus from investment and wholesale banking to retail. The move is a reaction to...

Credit crunch tests Algiers' immunity: while its isolation from the international banking system has largely insulated Algeria from the global financial crisis, its privatisation programme has stalled and falling oil prices are hitting project funding.(ALGERIA)
December 5, 2008... As governments around the world rush to introduce emergency measures to prop up collapsing banks and ailing stock markets, the administration in Algiers has stood calmly by and told its people not to worry. The local economy is sheltered from...

Building a presence in Africa: faced with increasing competition in their domestic market, Moroccan banks are expanding into poorer states with long-term growth potential.(MOROCCO)
December 5, 2008... Competitive conditions at home are driving banks based in one of Africa's most developed countries, Morocco, to invest in some of the continent's poorest states. Mali, for example, is among the world's 10 poorest nations, but that has not...

UAE shopping malls: six key players leading the development of the UAE's retail sector.(List)
December 5, 2008... Majid Saif al-Ghurair COMPANY Chief executive officer (CEO), Al-Ghurair Group BIOGRAPHY Majid Saif al-Ghurair is a senior member of the UAE business community. His primary role is as CEO of the Al-Ghurair Group, of which his father,...

Algeria: railway studies and renovation work.(Tenders)
December 12, 2008... Six packages to conduct feasibility studies and carry out renovation work on railway lines and earthworks.

Morocco: petroleum pricing and consultancy contract.(Tenders)
December 12, 2008... Consulting services for petroleum pricing rules, financed by the World Bank.

Iraq: spare parts and drilling rigs.(Tenders)
December 12, 2008... The supply of equipment and spare parts for the rehabilitation of drilling rigs.

Jordan: construction of schools.(Tenders)
December 12, 2008... Four tenders to cover the construction of a total of 12 schools at various locations around the country.

UAE: water demand forecasts.(Tenders)
December 12, 2008... Provision of consultancy services comprising water demand forecasts.

Kuwait: public works ministry maintenance work.(Tenders)
December 12, 2008... Three tenders for general maintenance at governorate sites around the country.

Egypt: shunt capacitor banks.(Tenders)
December 12, 2008... Turnkey manufacturing, testing, delivery and installation of three two-by-100MVAR, 200kV shunt capacitor banks.

Saudi Arabia: concrete television tower.(Tenders)
December 12, 2008... Construction of a concrete TV tower

Egypt: steel pipes and cast iron fitting.(Tenders)
December 12, 2008... Supply of small-sized steel pipes and malleable cast-iron fittings for a natural-gas connection project.

Kuwait: maintenance services for air conditioning, cooling, ventilation and heating system.(Tenders)
December 12, 2008... Maintenance, ventilation and heating for three Kuwait National Petroleum Company refineries.

Kuwait: rehabilitation and maintenance of ministry sites.(Tenders)
December 12, 2008... Rehabilitation and maintenance of Awqaf & Islamic Affairs Ministry sites country wide.

Saudi Arabia: water drainage network.(Tenders)
December 12, 2008... Maintenance of a surface water and storm drainage network.

Limitless invites firms to prequalify for Sanaya Amman towers.(Contract awards)(Brief article)
December 12, 2008... [ILLUSTRATION OMITTED] Dubai-based property developer Limitless has invited selected contractors to prequalify by 14 December for the main construction package on the $300m Sanaya Amman project in Jordan. Tenders for the work are expected...

Banks commit to short-term financing for Shuweihat 2 power plant.(Contract awards)
December 12, 2008... Six banks have agreed to provide a $900m bridging loan for Shuweihat 2 in Abu Dhabi.

Saudi Arabia plans Taif airport.(Contract awards)
December 12, 2008... Saudi Arabia is making plans to build a commercial airport at Taif in the west of the kingdom.

Qatargas set to award Ras Laffan gas recovery contract.(Contract awards)(Brief article)
December 12, 2008... Qatargas is expected to issue an award for a gas recovery project at Ras Laffan by the end of December, with seven contractors in line for the contract

Morocco receives $78m grant for road construction.(Contract awards)
December 12, 2008... Morocco is to receive 60m [euro] ($77.5m) from the European Investment Bank to build 700km of roads in isolated areas.

Iraq considers new Basra oil export terminal.(Contract awards)
December 12, 2008... Iraq is in talks with contractors over the construction of an offshore crude export terminal at Basra.

Events.(Brief article)(Calendar)
December 12, 2008... Middle East Facilities Management 2009 19-21 January Park Hyatt Hotel, Dubai www.meed.com/events/facility MEED's Middle East Facilities Management 2009 conference addresses the key strategic developments in the expanding facilities...

Life returns to debt market: the Dolphin financing will be an indicator of lenders' attitudes. Predictions of the market remaining slow in 2009 may be going too far.(PROJECT FINANCE)(Brief article)
December 12, 2008... [ILLUSTRATION OMITTED] No one in the banking sector will lament 2008 coming to end, but will 2009 herald the reawakening of the project finance market, or a continued slump in activity? Currently, there are a few positive signs....

Baghdad needs fast-track rules: Iraq is starting to lay the groundwork to ease the bottlenecks that will arise in the engineering and construction phases of development.(IRAQ)(Brief article)
December 12, 2008... With Iraq preparing its first commercial agreements with oil majors since nationalisation of the industry in the 1970s, Baghdad is starting to lay the groundwork to ease the inevitable bottlenecks that will arise in the engineering and...

Picking the right projects is key: the trick for the construction industry is picking the schemes that are worth backing.(DUBAI)(Brief article)
December 12, 2008... On the surface, it is business as usual for Dubai. In the space of one week, the emirate awarded a $1.3bn contract for a new concourse at Dubai International airport and received proposals from contractors for a tower that will stretch 1...

Long-term plans will pay off: the region's petrochemicals industry has to take a long-term view and put 2008 into perspective.(PETROCHEMICALS)
December 12, 2008... [ILLUSTRATION OMITTED] Economic uncertainty is hindering petrochemicals producers' expansion plans and, going into 2009, the short-term picture for the industry is decidedly gloomy. With oil at $150 a barrel as recently as July 2008,...

The time will come to reinvest: the only major market in which investors have remained confident is the Doha Securities Market.(MARKETS)(Brief article)
December 12, 2008... The vote of confidence in regional stock markets has been unambiguous. Middle East and North Africa (Mena) funds have almost halved their exposure to the region's three largest markets over the past six months. At the end of April, Egypt,...

Dolphin refinancing to include $1bn bond: pipeline developer will be one of the first to access the region's bond markets for 12 months.(BANKING & FINANCE: REGIONAL)
December 12, 2008... Abu Dhabi-based Dolphin Energy, which delivers Qatari gas via pipeline to the UAE and Oman, is to include a project bond of about $1bn as part of plans for a $5bn financing deal in early 2009. The deal will make it one of the first Middle...