MW January 2008.Indd

Editor’s page MONEYworks magazine P O Box 10656, Dubai, UAE It’s rather pleasantly cold as I sit writing this edit. Also, there Telephone: +971 4 391 2160, Fax: +971 4 391 2173 are fewer cars in the parking lot. People are holidaying and Email: [email protected] Published by I’m looking forward to a little time off after such a hectic Rasalmal Financial Publishing FZ-LLC year slogging day in and day out, gathering information A Dubai Media City Company Telephone: +971 4 391 2160, Fax: +971 4 391 2173 and relentlessly hammering away at an already overworked Email: [email protected] keyboard to disseminate what I know or have heard, as if Board of Directors Saud A. Al Amri - chairman there wouldn’t be another day left for me to write my stories. Abdulaziz Al Mashal Greg Hunt Just as 2007 is about to become a part of history in our General Manager records, so are our achievements and disappointments. The Don Taylor question is what is the New Year going to bring for us? Distribution Dar Al Hikma, Dubai, UAE, Tel: +971 4 266 7384 There are trepidations that the US is edging towards recession, which could Jashanmal, Abu Dhabi, UAE, Tel: +971 2 673 2327 end up slowing global growth, and thus dampen the party that was very much the Printing Nabeel Printing Press, Ajman, UAE, Tel: +971 6 743 4445 theme until the sub-prime crisis hit global institutions where it hurts. Cover Image For our region, the majority of experts that I speak to aren’t too worried at this Benjamin Howell Editor point in time. They don’t believe that a global slowdown will wreck the growth Utpal Bhattacharya story in the Middle East. Of course, the price of oil gives weight to this argument Deputy Editor Ehab Heyassat - although some believe that the oil price could pull back to US$70 in the course of Staff Writer the new year if global growth slows. Kara Sensoli The question to ask is - will that make much difference to the growth story in Saudi Correspondent Mobin Sheikh our region? I don’t think so. In fact, the region’s stock markets might witness fresh Regular Editorial Contributors flow of international liquidity in the new year as a result of S&P and MSCI launching Peter Hensman - Newton Investment Management Ltd James Thomas - Acuma Wealth Management Frontier Market indices, of which the UAE is the dominant country. In fact, the Special Editorial Contributors GCC in general accounts for the bulk of these indices. We are already witnessing Matein Khalid, Philip John, Sheikh Sultan bin Saud Al Qasimi, Wendy Jackson, Peter Cooper, M.R. Raghu, Dr.Oliver Stönner-Venkatarama, Sammer Mourched international institutions launching investment funds that have allocations to the Operations Manager Middle East, and this should all help the rally that we have seen in the GCC markets Tim Elliott Design & Layout most of 2007. Zak Parayil One of the biggest stories, which is kind of a leftover from 2007, is whether the Sonia Landoulsi Administration region’s central banks will revalue their respective currencies from the current US Sessie Fernandes dollar pegs or change pegs to currency baskets. Residents of the region will be Rolla Daniel Sales & Marketing Manager also looking closely at inflation, including rents, school fees and the price of basic Mark Freeman amenities that affect their lives. Until the time that major decisions on currency Sales & Marketing Executives Zarko Ackovik pegs are taken, we will have to continue to bear the brunt of imported inflation as Ali Jaber Arshad Iqbal the US dollar declines. Domestically, however, a good rent control mechanism in Advertising Enquiries: 2008 could help soothe some pain of households and businesses. We can only Tel. +971 4 391 2163, Email: [email protected] hope it happens sooner rather than later. Before I sign off, on behalf of the team of MONEYworks group of magazines, I Advice to readers - Information carried in MONEYworks is checked for accuracy, but we recommend that you make enquiries and, if necessary, take appropriate advice wish all our readers a very happy new year. before entering into any transactions. Never forget investments can go down as well as up and you may get back less than you originally invested. Companies offering financial services, products or advice in the UAE must be licenced accordingly. If in doubt, check with your local Chamber of Commerce, Central Bank office or Department of Economy. All rights reserved in respect of all articles, drawings, photographs, etc. published in MONEYworks anywhere in the world. Reproduction or imitations of these are expressly forbidden without the written permission of the publishers. © Rasalmal Financial Publishing FZ-LLC 2008 The MONEYworksTM magazine cover logo is a registered trademark. BPA audit applied for December 2006 Utpal Bhattacharya Editor ♺ When you’re finished with MONEYworks, please recycle it. Advert 2 I MONEYworks I January 2008 Contents contents �� 06 News 46 Saudisation Global’s PE funds generate IRR of 57 per cent The Saudi government’s drive towards quickly Saudising the banking industry faces some stiff challenges. 08 News A MONEYworks report from Riyadh S&P targets rating 35 GCC funds 48 In Focus 10 ‘The NIB Zone’ Kingdom’s time has come The month’s local, regional and international financial news in brief 50 Stock Watch 26 Platinum cards Sorouh: performance expected to continue Kara Sensoli explores the pros and cons of platinum cards, as well as the direction 74 Reader’s Letters in which they are headed ‘Cut your coat according to your cloth’ �� 40 Asia infrastructure 75 From the Hip �� Wendy Jackson spoke to the manager of Resolutions for a new year. James Thomas �� Invesco’s Asia Infrastructure Fund to gauge reviews some of the basics of financial �� the scope these markets offer planning and looks at why it is so �� important �� MONEY�� 44 US Economy Watch out for a US recession and put 76 The Long and the Short of it your bets in the negatively correlated GCC Lessons are to be learnt. Sheikh Sultan bin stock markets and real estate markets of Saud Al Qasimi questions why the DP Lead Southeast Asia, cautions Matein Khalid World IPO was managed the way it was Story 30 Corporate Earnings 37Business Leader This month MONEYworks features Man Investments The stock markets in the GCC Middle East CEO, Antoine Massad, who tells Utpal have performed strongly in 2007, Bhattacharya that one does not need a degree to be successful in sales. supported by robust corporate earnings. Utpal Bhattacharya looks at what is to come.

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