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Tuesday, January 30, 2018 Jumada I 13, 1439 AH INTERNATIONAL BEST PRACTICES : Page 16 GULF TIMES QFC division exploring areas of co-operation BUSINESS with ILO arm in Turin

Ooredoo launches joint initiative to enable digital transformation of SMEs

Commercial Bank net Ooredoo announced yesterday a new joint initiative with Qatar’s biggest business players to support the end-to- end digital transformation of small and medium-sized enterprises (SMEs). Ooredoo has joined forces with QNB, consultancy and technology products and services provider Moore Stephens, and Smart Management IT Solutions, which has developed the WallPost enterprise resource plan- profi t jumps 20.4% ning solution, to host the cloud solutions through the Ooredoo Data Centre. As a result, Qatar’s organisations will be able to gain best-in-class business operations services covering financing, advisory, and operational management. Enterprise resource planning solutions are the founda- tion for SMEs to digitally transform, and in turn drive Qatar’s diversified economic growth and job creation. to QR604mn in 2017 Partners will encourage the adoption of WallPost, so organisations can make the right decisions at the right riven by the “strong execution of to increase in education, health and con- liquidity and funding costs. I am also time. its strategic plan to build a strong struction projects in advance of the FIFA pleased to report a signifi cant decrease in Ooredoo COO Yousuf Abdulla al-Kubaisi said, “Ooredoo Ddiversifi ed business while provi- 2022 World Cup for which preparations our operating expenses of 19% year-on- continues to be Qatar’s leading business technology sioning legacy loans and improving cost are on track.” year, in line with our strategy to drive ef- provider with this partnership with Smart Management effi ciency,” the Commercial Bank Group Commercial Bank vice chairman Hus- fi ciencies across the business, streamline IT Solutions in delivering new levels of cloud-based busi- posted a net profi t of QR604mn in 2017, sain al-Fardan said, “The impact of the processes and reduce costs. Consequent- ness models. Using the cloud, SMEs can gain the same up 20.4% on the year before. economic blockade on our business has ly, the bank reported a healthy consoli- capabilities as large enterprises, save time and money Total assets of Qatar’s premier bank been minimal, with the actions taken dated cost of income ratio of 37.5%, down on IT, and scale up their services for future growth.” stood at QR138.4bn in 2017, up 6.2% on under the strategic plan already show- from 45.7% in 2016. QNB will also off er training sessions to help SME custom- the previous year. ing results and positioning the Bank to “As part of our strategy, we strength- ers in adopting the WallPost solution. Customer loans and advances show signifi cant improved bottom line ened our balance sheet and made ad- Yousef M al-Neama, general manager of Group Cor- amounted to QR89.1bn in 2017, up 14.6% performance in the coming years. Conse- ditional provisions on legacy assets, porate and Institutional Banking of QNB, said, “QNB is on 2016, while customer deposits totalled quently, the board of directors has recom- increasing provisioning by 33.8% year- pleased to provide support to this partnership by provid- QR77.6bn in 2017, up 9.5%. mended a cash dividend pay-out of 10% of on-year to QR1.7bn. Consolidated net ing training to our large SME customer base in the use of Commercial Bank chairman Sheikh par value or QR1 per share (pay-out ratio profi t was QR604mn in 2017. this new software. QNB is always committed to support- Abdullah bin Ali bin Jabor al-Thani said, of 66%) subject to approval at the Annual “Domestic bank reported an increase ing the development of the Qatari SME sector due to the “2017 was a challenging year for Qa- General Assembly on March 21.” of 4.7% in net interest income, while ad- importance it holds for the development of our national tar and Commercial Bank where both The non-performing loan (NPL) ratio vances to customers grew by 14.5% and economy and the future development of our country. the public and private sectors adapted increased to 5.65% in 2017 compared to customer deposits were up 7.7% for the “We will continue to be at the forefront for any partner- to a new market environment due to the 5.01% for the same period in 2016. year that ended in December 2017. ships or initiatives that serve this important sector, to sup- land, air and sea blockade imposed by The loan coverage ratio increased to “2017 saw ABank return to profi t- port our country’s future growth and prosperity, and to Qatar’s neighbours. Both have proven to 81% in 2017 compared to 78.9% for the ability to deliver QR49mn in net profi t. help in the achievement of Qatar’s National Vision 2030.” be resilient. Despite this, Qatar’s robust same period in 2016. Loans and advances to customers were up Qatar’s SMEs can easily adopt WallPost in a convenient macro fundamentals have not materially Commercial Bank’s group chief execu- 24% while customer deposits grew 32% and aff ordable Software-as-a-Service model. SMEs pay changed, refl ected by an AA- rating by tive offi cer Joseph Abraham said, “Com- year-on-year. We have also appointed as they use the cloud services, rather than having to Fitch and Aa3 by Moody’s. mercial Bank’s results for 2017 demon- a new well-experienced CEO and two invest in their own software and hardware. “Commercial Bank has successfully strate the impact of strong execution of new Turkish board directors at ABank, Abdulaziz Alsulaiti, managing partner, Smart Manage- concluded the fi rst year of the fi ve-year our strategic plan which called for build- who will lead its strategic re-shape and ment IT Solutions, said, “Software-as-a-Service is an strategic plan under which it has made ing a strong diversifi ed business whilst growth. ABank remains a strategic asset exciting new business model for Qatar’s SMEs, giving good progress in cleaning up its bal- provisioning legacy loans and improving and an important opportunity for us to them access to modules using simplified solutions ance sheet, diversifying its loan port- cost effi ciency. Despite market condi- leverage outside the GCC market. without massive in-house investment. Qatar is a strong folio geographically and tenor to create tions, Commercial Bank continued to “For our associates, NBO reported an growth market for cloud solutions, allowing enterprises a healthier risk profi le, and driving ef- grow its business with the right sector operating profi t of QR416mn and main- to eff ectively manage and operate their businesses, and fi ciencies across the business. Looking mix underpinned by faster than market tains its strong position in the Omani freeing up IT staff to focus on innovation.” ahead, country fundamentals remain growth of 14.6% in loans and advances to market. Sami Zaitoon, managing partner, Moore Stephens, said, strong which will provide opportunities customers and 9.5% in customer depos- For UAB, as announced earlier, we have “Moore Stephens Qatar is greatly involved in supporting for Commercial Bank as well. its. Consolidated net interest income in- entered into an exclusivity agreement to the continuous development of SME sector through of- “Qatar’s large fi nancial buff ers of ap- creased 7.6% year-on-year to QR2.52bn. negotiate terms of the potential sale of fering a wide range of tailored made professional assur- proximately $35bn in net international “Consolidated operating profi t in- Commercial Bank’s stake in UAB. An ex- ance and advisory services. WallPost is a solution that reserves at the Qatar Central Bank and creased 13.5% year-on-year to QR2.21bn, tension on this agreement has been given reduces the hassle and saves time in the search among more than $300bn of assets managed by driven by overall balance sheet growth until February 28. If this happens, capital The Commercial Bank Plaza at the West Bay. Total the worksheets and helps employees to quickly respond the Qatar Investment Authority provide a and stable margins which refl ected the will be re-deployed to support growth of assets of Qatar’s premier bank stood at QR138.4bn in to the requirements of their workflows.” strong liquidity position. Spending is set actions taken on the management of our other businesses.” 2017, up 6.2% on the previous year.

Qatar non-oil exports hit QR18.1bn in 2017, says Chamber report QDB direct lending in 2018

The total value of Qatar’s non-oil exports in 2017 reached QR18.1bn, according to Qatar Chamber’s lat- set to cross QR2bn mark est monthly report on the foreign trade of the private sector. The report was prepared based By Peter Alagos “Keeping with the vision of on certificates of origin issued by Business Reporter economic diversifi cation, a broad the chamber’s Research & Studies spectrum of sectors have identi- Department and Member Aff airs fi ed for participation. They com- Department in December 2017. Sheikh Khalifa and al-Sharqi: Key role for private sector. ith the availability of prise the food industry, pharma- As many as 2,687 certificates of more investment op- ceutical industry, agriculture, origin were issued last month, the in December, accounting for “This aff irmed that Qatar has suc- Wportunities to com- industrial production, and rele- report said. QR454.8mn, or 34.9%, of the total cessfully managed to overcome panies in Qatar, including small vant components of the environ- Non-oil exports in December exports, followed by Hong Kong its repercussions. The surge in and medium-sized enterprises mental sector such as recycling 2017 stood at QR1.3bn, dropping with QR196.9mn, or 15.1%, and non-oil exports is emanated from (SMEs), direct lending services and sustainability plants, among 27.6% compared to the QR1.8bn Turkey with QR 107.3mn, or 8.2%. the prudent policies and the off ered by Qatar Development others. Companies engaged in recorded in November. On a This was followed by Germany wise leadership’s support to the Bank (QDB) in 2018 are expected Al-Mana and al-Obaidly addressing a press conference on the ‘Qatar dairy production, recycling, and year-on-year basis, non-oil exports with QR95.5mn (7.3%) and Bang- private sector, which plays a key to breach the QR2bn mark, a sen- Self-Suff iciency Exhibition 2018’ held yesterday. industrial production have al- fell 13% compared to the QR1.5bn ladesh with QR 77.4mn (5.9%). role in the economic process and ior offi cial has said. ready confi rmed participation.” recorded in December 2016. Other countries that followed becomes a major mainstay of In 2017, the bank approved I expect 2018 to be more than the country, “which is very dif- Sheikh Jassim bin Jabor al- The report said that Qatar’s non- were China, India, South Korea, Qatar trade exchange with world about QR2bn in direct lending last year…there were so many ferent from what we have done Thani, assistant undersecretary oil exports in December were dis- Indonesia, and Kuwait. countries,” he said. and around QR350mn in indi- new projects and we have a lot before,” citing QDB programmes for Consumer Protection at the tributed to 61 countries compared The report said 88.5% of the total Qatar Chamber director general rect lending, according to QDB of available lands in the market, like ‘Moushtarayat’ and Jahiz 1 Ministry of Economy and Com- to 53 in November. value of exports was received Saleh bin Hamad al-Sharqi said executive director of Business which was one of the bottlenecks and Jahiz 2. merce, said the exhibition rep- The receiving countries included by the top 10 above mentioned the Qatari private sector’s trade Finance Khalid Abdulla al-Mana. before…Manateq and even the Abdulrahman Saleh al-Obaid- resents “a great initiative” to 12 Arab countries and GCC, 13 countries. relations saw “substantial growth,” Speaking to reporters on the New Industrial Area are provid- ly, chairman of Hisky for Tour- strengthen the co-operation be- European countries (includ- Asian countries as an economic and noted that “there is great sidelines of a press conference on ing many lands to investors… ism and Exhibitions, which is tween local, regional, and inter- ing Turkey), 14 Asian countries bloc were the top destinations demand for Qatari products in the ‘Qatar Self-Suffi ciency Exhi- there is a good off er for fi nanc- organising the exhibition, said: national production lines fi rms. (excluding Arab countries), 19 of Qatari exports amounting to world markets.” bition 2018’ slated on April 1 to 3 ing…there is activity,” al-Mana “The objective behind events “The support of the ministry African countries (excluding Arab 38.68% of the total exports with “The number of markets receiving at the Doha Exhibition and Con- said. like the ‘Qatar Self-Suffi ciency to this exhibition comes in line countries), and three countries in QR502.9mn. This was followed by Qatari products last year reached vention Centre, al-Mana said as On QDB’s role in the ‘Qa- Exhibition 2018’ is to eff ectively with its vision to strengthen the the North and South Americas. the GCC with 36.9% of the total 66 countries, which emphasised much as QR1.4bn worth of direct tar Self-Suffi ciency Exhibition restrict the consequences of the partnership between government The report showed that despite value, or QR481.9mn. the quality of these products. lending services were provided 2018’, al-Mana said the bank is blockade, while simultaneously and private sectors and encour- the siege, there was an increase Qatar Chamber chairman Sheikh The value of non-oil exports will to companies after the blockade involved in many initiatives that diversifying the economy and age businessmen and investors to in the number of countries that Khalifa bin Jassim al-Thani said de- see further growth in the future, was imposed on Qatar in June provide a platform to boost and promoting self-reliance. It lays play an active role in establishing received Qatari commodities. spite the siege imposed on Qatar, especially since various industrial 2017 and around QR600mn was develop the private sector. the ground for local, regional, new projects to meet the state’s Oman remained as Qatar’s top “non-oil exports saw an increase projects have been accomplished provided prior to the siege. He said the focus of the exhi- and international companies to self-suffi ciency in all sectors and non-oil exports destination month after month.” in the country,” he added. “After the blockade there was bition will be on the establish- invest in manufacturing prod- hence participate in the economic more lending from QDB…but ment of more production lines in ucts here in Qatar. growth”, he said. Gulf Times 2 Tuesday, January 30, 2018 BUSINESS

Bullish foreign funds lift Qatar shares; capitalisation hits QR516bn

By Santhosh V Perumal the market, where demand was seen Company, while Qatar First Bank, the previous day. Gulf individual The real estate sector’s trade Business Reporter higher especially for large caps. Qatari Investors Group, Gulf Interna- investors’ net buying declined volume tanked 9% to 1.88mn Trade turnover and volumes were tional Services, Vodafone Qatar and marginally to QR0.09mn compared equities and value by 20% to on the decline in the bourse, where Widam Food were among the losers. to QR0.76mn on Sunday. QR33.07mn, while deals shot up Foreign funds’ bullish outlook the real estate, banking and industri- Non-Qatari institutions turned net Total trade volume fell 29% to 22% to 706. yesterday steered the Qatar Stock als sectors together accounted for buyers to the tune of QR15.54mn 6.31mn shares and value by 15% to However, the transport sector’s Exchange back onto the positive about 77% of the total volume. against net sellers of QR1.7mn on QR170.4mn, while deals were up 5% trade volume almost tripled to trajectory as capitalisation touched The Total Return Index rose 0.41% January 28. to 3,315. 0.42mn stocks and value almost QR516bn. to 15,847.21 points and the All Share Gulf funds’ net selling weakened The market witnessed a 57% plunge doubled to QR9.18mn on more-than- Mainly led by transport, realty and Index by 0.79% to 2,662.88 points, substantially to QR2.52mn com- in the industrials sector’s trade vol- doubled transactions to 241. banking equities, the 20-stock Qatar while the Al Rayan Islamic Index fell pared to QR22.92mn the previous ume to 1.2mn equities, 43% in value The telecom sector saw a 32% Index gained 0.41% to 9,450.07 0.21% to 3,728.03 points. day. to QR32.51mn and 28% in transac- surge in trade volume to 0.78mn points. The transport index soared 2.02%, Domestic funds’ net profit-booking tions to 682. shares to more than double value Gulf as well as domestic institutions’ followed by realty (2%), banks and also declined perceptibly to The banks and financial services to QR12.14mn on an 81% increase in weakened net selling also helped financial services (1.11%) and insur- QR1.6mn against QR9.69mn on sector’s trade volume plummeted deals to 300. the market, which is up 10.87% year- ance (0.23%); while telecom shrank Sunday. 41% to 1.77mn stocks and value by Although the insurance sector’s to-date. 0.99%, consumer goods (0.17%) and However, local individuals turned 14% to QR64.31mn, whereas deals trade volume was flat at 0.06mn However, local and non-Qatari industrials (0.11%). net sellers to the extent of grew 4% to 1,043. equities, there was a 16% expansion individuals turned net sellers in the Major gainers included Ezdan, Na- QR8.52mn compared with net buy- The consumer goods sector in value to QR3.21mn and 8% in bourse, whose capitalisation grew kilat, QNB, Qatar Oman Investment, ers of QR26.28mn on January 28. reported a 34% shrinkage in trade transactions to 98. 0.85%. Mesaieed Petrochemical Holding, Non-Qatari retail investors were also volume to 0.19 shares, 1% in value to In the debt market, there was no Mainly led by transport, realty and banking equities, Islamic stocks were seen declining Qatar General and Reinsurance, net sellers to the tune of QR3mn QR15.99mn and 6% in transactions trading of treasury bills and sover- the 20-stock Qatar Index yesterday gained 0.41% to vis-à-vis gains in the other indices in Milaha and United Development against net buyers of QR7.27mn to 245. eign bonds. 9,450.07 points

Iraq says to comply Saudi crackdown puts with Opec deal despite investments at risk as oil export capacity rise

Reuters uncertainty lingers London/Baghdad raq will comply with the Opec Cost of insuring Saudi debt may output reduction deal even rise if doubt persists: MUFG; Prince Ithough it is working hard to Alwalweed and others freed from increase its oil export capacity Ritz over the weekend from both the country’s south and north, its oil minister said yester- Bloomberg day. Dubai Jabar al-Luaibi told a Chatham House conference in London Iraq’s total capacity was nearing 5mn audi Arabia’s corruption clamp- bpd, including 4.6mn bpd from down has everyone guessing the south. Swhat’s next, risking investments Iraq is Opec’s second-largest into the kingdom, according to the producer after Saudi Arabia. head of Middle East and North Africa Iraq has had to limit its output as research at Japan’s biggest bank. the Organisation of the Petroleum “The speed and magnitude of the Exporting Countries is reducing anti-corruption clampdown could in- output by about 1.2mn bpd as part crease uncertainty in the short-term of a deal with Russia and other for some corporates, which could delay non-Opec producers until the end investment decisions,” Bank of Tokyo- of 2018. Mitsubishi UFJ Ltd’s Ehsan Khoman “Iraq has made it clear at every said in an interview in Dubai. More time and every event that Iraq will clarity and guidance from authorities comply with Opec declarations in on “how far they want to take the anti- good spirit, genuine spirit,” the corruption drive would be welcomed minister said. from the investment community,” he He said Iraq hoped to more said. than double production from the Saudi Arabia freed Prince Alwaleed northern Kirkuk oilfi elds with the bin Talal and several of the kingdom’s help of BP. most prominent businessmen from While exports from the south detention, clearing out the Ritz-Carl- are at record levels, output in ton hotel that served as a jail for the northern Iraq is down after falling country’s elite during a crackdown on Women walk on a street in Riyadh (file). Saudi Arabia’s corruption clampdown has been criticised for its lack of transparency. in mid-October when Iraqi forces corruption. The departures from the retook control of oilfi elds from hotel mark the end of the fi rst phase on the country. Government offi cials “The anti-corruption probe is net points in the week after the crackdown nese lender to start full banking opera- Kurdish fi ghters who had been of Crown Prince Mohammed bin Sal- have denied that accusation. positive for both sentiment as well as began, the cost of insuring Saudi Ara- tions in the world’s biggest oil exporter there since 2014. man’s campaign, which shook the Still, in the long run, the crackdown investment fl ows in the long term,” bia’s dollar debt against default has after obtaining approval from the king- This has had the side-eff ect of kingdom when it was launched in No- will ultimately be good for Saudi’s Khoman said. “At the current juncture, since fallen to its lowest level since at dom’s central bank. The lender plans to boosting Iraqi compliance with the vember. economy if it is able to remove the some corporates are in a wait-and-see least 2016, when the kingdom sold its hire 20 people and open its fi rst branch Opec cut. The minister said the oil The probe has been criticised for its “complex bureaucracy” and improve mode, both in terms of seeking further fi rst dollar bonds. The country’s credit in Riyadh by the end of 2018, Elyas Al- market was improving, helped by lack of transparency and comes amid the operating environment for com- guidance and clarity from the authori- default swaps could rise again if busi- gaseer, the bank’s co-head in the Mid- the Opec deal. Prince Mohammed’s eff orts to reform panies, MUFG’s Khoman said. Smaller ties, as well as observing what deci- nesses and investors are forced to wait dle East and North Africa, said in Au- Meantime, crude oil exports by the economy by reducing its depend- businesses have also struggled to com- sions their peers will take or announce too long to “decipher what steps are gust. It is one of many foreign banks Iraq state-oil marketer SOMO ran ence on oil. Critics also say the prince pete against larger corporates that have before they make any fi rm business taken next in this process,” Khoman seeking to benefi t from privatisations at an average rate of 3.5mn bpd in initiated the drive to intimidate poten- developed closer ties to individuals in decisions.” said. that could be valued at more than January, an Iraqi oil offi cial said tial opponents and consolidate his grip privileged positions, he said. After climbing more than 20 basis MUFG is set to become the fi rst Japa- $350bn over the next fi ve years. yesterday in Baghdad. Iranian lawmakers reject framework of Kuwait cabinet approves Rouhani’s new budget budget with $16.7bn shortfall

Bloomberg parliament in early December, had planned to AFP said. He said government wages Dubai reduce energy subsidies and strip cash hand- Kuwait City and subsidies account for 73% of outs from millions who had received them after the budget which takes eff ect on an earlier round of subsidy cuts. The protests April 1. Iranian lawmakers rejected the outline of a against economic conditions now complicate uwait yesterday approved It still has to be passed by parlia- budget proposed by President Hassan Rouhani, the Rouhani administration’s course of action its budget for the 2018- ment. which was to include another round of unpopu- at a time when it is already struggling to attract K2019 fi scal year, projecting a Just 18% of spending will go on lar subsidy cuts for the next fiscal year. the levels of foreign investment necessary to huge defi cit for the fourth year in a development projects, al-Hajraf The budget framework was defeated on Sunday revive an economy battered by sanctions and row because of low oil prices. said. by a vote of 120 to 83, with nine abstentions, mismanagement. Next year’s defi cit is estimated He said Kuwait will not impose state-run Mehr news agency reported. Almost Legislators criticised the breakdown of funds to at $16.7bn, or 13.5% of the Opec value-added tax or other taxa- a third of the lawmakers were absent as heavy some provinces, a lack of attention to teachers’ member’s gross domestic prod- tion without parliamentary ap- snow in the capital, Tehran, obstructed roads living conditions and social security funds’ uct. proval. and slowed down traff ic. shortfalls, newspapers reported. Finance Minister Nayef al- Only Saudi Arabia and the UAE It was the first time in more than three decades The budget was drafted “with the goal to create Hajraf told a press conference the have implemented a pan-Gulf that legislators voted against the outlines of a jobs,’’ and “not to solve all the country’s prob- government will withdraw from decision to impose VAT from this draft budget, local newspapers reported. They lems,” government spokesman Mohammad- the state reserve fund and borrow year. linked it in part to a heightened sensitivity to Bagher Nobakh told parliament on Sunday on the domestic and international But al-Hajraf said the govern- public sentiment following protests that began ahead of the vote. debt markets to fi nance the short- ment may raise charges on public in late December. Parliament’s budget committee had already re- fall. services to boost non-oil revenues. “The rejection of the framework of the budget, vised the proposed rise in energy prices before After posting healthy surpluses Kuwaiti Minister of Finance Nayef al-Hajraf speaks during a conference Like other Gulf states, which while in itself rare, can’t be analysed without the budget outline reached the plenum floor, for 16 successive years, Kuwait has in Kuwait City yesterday to announce the budget for the year 2018-19. He rely heavily on oil income, Ku- taking into account last month’s events,’’ the deeming it “against society’s interest,” Shargh posted a budget defi cit in each of said the new budget projects revenues at $50bn, up 12% on last year’s wait has imposed measures such daily Shargh newspaper wrote yesterday. cited panel spokesman Ali-Asghar Yousefnejad the past three years after oil prices estimates. as raising power and fuel prices to “Deputies were certainly compelled to display as saying. The committee will review lawmak- began to slide in mid-2014. boost revenues. greater oversight.” ers’ suggestions over the next three days, Al-Hajraf said the new budget price rose from $45 to $50 a barrel. 2.8mn barrels. Spending is pro- The emirate has a sovereign Rouhani, who submitted the draft budget to Parliamentary Speaker Ali Larijani said. projects revenues at $50bn, up 12% Oil income is estimated at jected at $66.7bn, marginally wealth fund worth more than on last year’s estimates after the oil $44.3bn on a daily production of higher than last year, the minister $600bn. Gulf Times Tuesday, January 30, 2018 3 BUSINESS

Gas flaring law error cost Nigeria Cape Town water crisis is billions of dollars Bloomberg Abuja

Africa’s top oil producer plans to make gas flaring more costly for credit-negative: Moody’s companies that have escaped the payment of billions of dollars Bloomberg despite being fined, Nigerian Cape Town Finance Minister Kemi Adeosun said. In the “legal framework for the gas-flaring penalty, it was drafted s Cape Town’s dam levels fall, as a charge. A charge is tax the city may see borrowing deductible,” Adeosun said in a Acosts rising. January 23 interview. “So, what do The water crisis affl icting Africa’s the international oil companies do? top tourist destination is credit- They flare, they pay the charge on negative as it will reduce revenue which they get tax relief. That’s just at a time when the city has to boost bad drafting.” spending to ensure supplies, Moody’s The government is approaching Investors Service said in a report yes- lawmakers to amend the law and terday. The report doesn’t constitute have the word ‘penalty’ replace a rating action, said Moody’s, which ‘charge,’ the minister said in her has an investment-level rating on off ice in the capital, Abuja. “Just that Cape Town’s bonds. one word has potentially cost us Municipal water revenue contrib- billions of dollars.” uted about 10% of Cape Town’s op- Oil companies flare natural gas erating income in 2017, a proportion that is produced along with crude that is set to dwindle as the city re- instead of harnessing it because stricts water usage. At the same time, that can be costly or diff icult for spending on crisis management and security reasons. Nigeria has sought water supply projects will increase, to limit the practice over the years Moody’s Associate Analyst Daniel as it pollutes the environment and Mazibuko said in the report. Two contributes to global warming. main industries – tourism and agri- The West African nation is culture – will feel the eff ect, leading recovering from a contraction to lower employment and tax income, of its economy in 2016, the he said. first in 25 years, and is seeking “Other eff ects include threats to revenue sources to plug a $25bn public health from poor sanitation infrastructure gap and fund a and, more generally, to social or- record 2018 budget presented der, which is signifi cant given Cape in December by President Town’s marked income inequality,” Muhammadu Buhari. Mazibuko wrote. “If the crisis per- The government is also updating the sists, it remains to be seen how the tax law and going after defaulters, city will cope with the unfolding cri- with the intention to boost sis’ potentially wide-ranging con- collection and raise the country’s sequences on the city’s fi nances and tax-to-GDP ratio, currently at 6% and economy.” among the lowest in the world. Cape Town is in the throes of the A view of the Molteno reservoir as Table mountain stands beyond in Cape Town, South Africa on November 13, 2017. Cape Town has tightened water usage Nigeria in the past never focused worst drought on record, and water restrictions, banning the use of potable water to irrigate gardens, wash cars or top up swimming pools, as it confronts its worst drought on record and a delay to much on tax revenue because of its levels in its six main supply dams have the onset of the winter rainy season. reliance on oil income that funds plummeted to an average of 27.2%, most of government spending, from more than 90% four years ago. lons) each from April 12 unless water ties maturing in 2027. It has a total level and on par with South Africa’s debt burden of only 11% of operating Adeosun said. The Opec member With the winter rainy season still usage declines sharply. of 5.2bn rand outstanding in four sovereign rating. revenue, will help mitigate the eff ects produced 1.8mn bpd in December, about four months away, residents The city last accessed the bond bonds, according to data compiled Cape Town’s policy of maintain- of borrowing required to implement according to data compiled by may fi nd themselves lining up for a market in July, when it sold 1bn by Bloomberg. Moody’s rates the ing a strong liquidity ratio and con- capital projects over the next three Bloomberg. daily allocation of 25 litres (6.6 gal- rand ($84mn) of sinkable securi- debt Baa3, the lowest investment servative debt management, with a years, Mazibuko said.

Women get fired as men get hired in Brazil recovery

Bloomberg Brasilia

Brazil’s labour market is starting to recover from a deep recession but it’s men who are getting all the new jobs. Brazil last year lost far fewer jobs than it did in the previous two years – 20,832 compared with the nearly 3mn positions that vanished between 2015 and 2016. But a closer look shows the male labour force benefiting more. While 21,694 men found employment in 2017, nearly twice as many women were fired. Part of the reason is that the economy is creating a larger number of jobs in areas usually dominated also make 25% less than their male labour market has been much slower by men, such as factories, said Mario counterparts on average, according to recover. Magalhaes, statistics co-ordinator to Brazil’s statistics institute. “Our task is to recover 3mn jobs as at the labour ministry. Women The Brazilian economy is expected fast as possible,” Magalhaes told are predominantly employed in to expand 2.5% this year, from an reporters in Brasilia. “Maybe that can administration and services. They estimated 1% growth in 2017. The be done over the next two years.” Mexico holding oil bids like there’s no tomorrow before presidential poll

Bloomberg succeed Pena Nieto in December, The onshore auction, which will Mexico City with a candidate that has pledged to be the tenth during the current ad- review the energy reforms leading the ministration, will cover more than polls. 9,500 square kilometres (3,700 exico is trying to lure as For now, oil giants including Exx- square miles) of territory and is one much oil investment as pos- on, BP Plc and Chevron Corp are set of the country’s most ambitious Msible before the president to invest tens of billions of dollars in to date, Aldo Flores, Deputy En- who overhauled the country’s energy the country after winning exploration ergy Minister, said on Wednesday in industry leaves. and production licenses in previous Mexico City. By the end of the summer, the auctions. And they are lining up to bid Given that many of the fi elds have country that until recently had a state for more. pre-existing infrastructure and monopoly on crude will have off ered “The rounds transcend the elec- drilled wells, some of the areas could more than 100 permits to oil ma- toral cycles,” Energy Minister Pedro net crude or gas production “almost jors like Exxon Mobil Corp in three Joaquin Coldwell said last week at the immediately,” Nestor Martinez, a auctions this year. The last bidding presentation of the onshore auction member of the hydrocarbons com- round, announced last Wednesday, plans in Mexico City. The oil auctions mission, said on a webcast. will cover an area bigger than Dela- “exclusively comply with the energy The bidding round will also be the ware. policy that Mexico demands and will fi rst to be held after the presiden- The pace of sales is unprecedented continue to demand in the future.” tial election. In a poll conducted by as the country prepares to say good- The auction on July 25 will off er 37 Consulta Mitofsky and published by bye to the presidency of President onshore oil and natural gas develop- newspaper El Economista on Janu- Enrique Pena Nieto, who oversaw a ment areas, the most since the gov- ary 17, opposition candidate Andres complete makeover of the country’s ernment ended the state monopoly Manuel Lopez Obrador, who has energy laws to lure foreign invest- in 2013, according to the National promised to revise energy and oil ment into everything from oil fi elds to Hydrocarbons Commission last contracts awarded during the cur- pipelines to refi neries. Wednesday. It will follow an off ering rent administration, led electoral An election in July could alter the of 29 deep-water fi elds scheduled for preference with 23.6%. Jose Antonio course of the enormous transforma- January 31, and 35 shallow-water ar- Meade, of the ruling PRI party, polled tion as Mexicans choose who will eas up for grabs on March 27. third with 18.2%. Gulf Times 4 Tuesday, January 30, 2018 BUSINESS Five new airlines plan to enter Pakistan aviation industry

Internews “These numbers tell us the open skies Rs300bn. According to Malik, Pakistan’s manufacturers, jet engine makers, travel carriers since they are state-funded or which place their workers there to win Karachi policy has proved favourable for the coun- domestic air traff ic has grown 10%, which agents and service companies turn in operated. votes,” remarked Yahya Polani, ex-chair- try and its people,” remarked Muhammad is six percentage points higher than the healthy profits. “Even American air carriers are man of the Travel Agents Association of Afsar Malik, former additional director of 4% expansion in international air traff ic. Yet, it is one of the enduring ironies complaining against the Middle Eastern Pakistan. Shaheen Air and airblue have Five new airlines are expected to venture the Civil Aviation Authority (CAA), who Although Pakistan’s market size is that companies that actually move pas- airlines, but the point is that the customer about 22 aircraft each, but they have only into Pakistan’s aviation industry in was believed to have played a key role in increasing, the share of domestic airlines sengers from one place to another, which is getting benefits and the market is grow- about 2,000 staff members compared to the next one year in the latest sign of framing the National Aviation Policy 2015. is contracting. They carried 42% of the are a crucial link in the chain, struggle to ing; all depends on the lens through which PIA’s more than 15,000. intensifying competition in the backdrop Most of the upcoming carriers will passengers in financial year 2016-17 as achieve break even.” you see the situation,” remarked Malik. PIA has a ratio of 450 employees per of an open skies policy, which may bring target low-profit, far-off destinations against the 58% flown by international He suggested that the government Defending the open skies policy, he aircraft while Emirates has 150 employees down passenger fares, but will pose fresh like Gwadar, Turbat, Panjgur, Khuzdar, airlines. should revisit its open skies policy as pointed out that the entire world was per aircraft. “Who is going to win; so the challenges to the financially struggling Dalbandin, Zhob, Rawalakot, Skardu, “Airlines are in the race to attract cus- foreign carriers could enter Pakistan’s following the policy and cited the example open skies policy is the need of the hour,” Pakistan International Airlines (PIA). Chitral, Gilgit, Bannu, Parachinar and tomers through fare reduction; had the market without any restriction. “Authori- of Europe that started opening its aviation said Polani. Askari Air, Air Siyal, Go Green, Liberty Muzaff arabad. market not been free, the air ticket you ties should devise a new concept called market in 1978 and got due results. Thailand, Turkey, Malaysia and Dubai Air and Afeef Zara Airways are going to Of these, Gwadar, Gilgit-Baltistan and got for Rs10,000 would have cost around a fair skies policy whereby local carriers Multan is a good example to gauge the have a combined population of 250mn enter Pakistan’s air space in a bid to take a Turbat could generate immediate profits Rs30,000,” said Malik. “Competition is along with foreign ones have a fair share policy outcome since its traff ic growth has and have more than 1,000 aircraft in total slice of the growing air travel market. because of their tourism potential and good for public service.” in the market,” he said. become five times higher compared to while Pakistan has a populace of around “Air traff ic of the country has swelled work on China-Pakistan Economic Cor- However, PIA does not seem to be buy- The industry did not oppose market what was before the introduction of the 210mn, but its airlines have a total fleet of 40% over the past five years to 20mn ridor (CPEC) projects. ing the idea. liberalisation, but it should be designed in open skies policy. only about 80 aircraft. passengers,” Standard Chartered Pakistan For these remote regions, the new car- “Private airlines, especially foreign such a way that industry players were not At least, six foreign airlines are flying “It is obvious that we will face big chal- chief executive off icer Shahzad Dada riers will bring airplanes suitable for small carriers, have mainly resorted to price hurt as they were already operating at a to Multan. Now, local businessmen do lenges when these foreign airlines enter our said at the recent launch of the Emirates airports. cuts, instead of going more towards low profit margin of less than 3%, he said. not need to travel to other cities to take market, but the good thing is that intense Standard Chartered Credit Card. National flag carrier PIA has thus far customer satisfaction in terms of comfort “The industry, including PIA, is producing a flight and perishable goods are easily competition is customer-friendly, which is The current rate of growth in Pakistan’s taken advantage of these routes as it is and improved services,” commented PIA a combined net loss annually.” exported. the goal,” Polani said. He suggested that Pa- aviation industry is expected to be around the only player catering to air travel needs spokesperson in an email response to a UAE’s Emirates and Etihad Airways PIA, which once had 48 aircraft in its kistan could grow its air traff ic with the help 9% per annum which could continue till of these areas. PIA, which once helped query. as well as Qatar Airways among other fleet, saw the number shrink to only 18 of tourism as Malaysia earned $28-$30bn 2020, according to a forecast of the Inter- Emirates airline of the UAE by giving Separately, a Shaheen Air spokesman Gulf carriers are giving a tough time to later. Now again, the fleet has gone up to by drawing tourists, Thailand hosted 33mn national Air Transport Association (IATA) a two aircraft with crew, is now beset with said in an email “about every player in the Pakistan’s domestic airlines, which believe 35. “PIA is not an airline, instead it is an foreigners and earned $48bn and Indonesia trade body of world’s airlines. financial trouble with losses going beyond aviation chain including airports, airplane it is hard to compete with these foreign employment bureau for political parties hosted 1.5mn tourists. India sees 7% to 7.5% economic growth in 2018-19 fi scal year

Reuters Mumbai. “The government will likely New Delhi focus on rural and urban infrastruc- ture, housing, agriculture as well as bit Jason: Stepping down for on the capital expenditure front with personal reasons. ndia yesterday forecast its economic a judicious mix of budgetary and extra growth would accelerate to 7% to budgetary expenditure,” Rakshit added. I7.5% in the 2018/19 fi scal year, to The survey cautioned that persist- once again become the world’s fastest- ently high oil prices remained a key risk growing major economy. for a country that relies on imports for Ford China The government’s economic survey, much of its fuel needs. presented to parliament yesterday went The survey echoes the International chief in on to say that though the plan has been Monetary Fund’s view that India will to reduce the fi scal defi cit from an esti- regain the title of being the world’s fast- mated 3.2% this year to 3% in 2018/19, a est growing major economy in the com- abrupt pause in the move toward a lower defi - ing fi scal year. cit could be merited in order to give the The IMF last week predicted India economy momentum. would grow 7.4% in fi scal 2019. departure Prime Minister Narendra Modi’s na- The government also warned that tionalist government is gearing up for a climate change could pare back annual general election in 2019, and speaking to agricultural incomes in India by 15% Reuters reporters after the survey’s release, the to 25% with unirrigated lands being Beijing fi nance ministry’s chief economic ad- harder hit by rising temperatures and viser alluded to political considerations declines in rainfall. for possibly letting the defi cit target slip. Already farm incomes have fallen ord Motor Co said its “The cycle calls for ambitious con- because of the rising cost of produc- China chief, Jason Luo, solidation but the political cycle calls tion while crop prices have not risen, Fhas stepped down after for maybe more modest consolidation presenting a potential risk to Modi’s only five months at the helm so it has to be a balance between the Bharatiya Janata Party (BJP) in the up- for personal reasons, a sudden two,” Arvind Subramaniam said. coming election after it barely won re- resignation that raises ques- The survey, an annual report the health election in his home state of Gujarat last tions over how the automaker of the economy, was released ahead of the month. will best tackle a sales slump in government’s budget statement, due to Indian shares touched record highs the world’s biggest car market. be presented by Finance Minister Arun on the projected acceleration in growth Luo had been poached from Jaitley on Thursday. “A series of major re- in 2018/19, but bonds fell in response to Key Safety Systems, and it had forms undertaken over the past year will India’s chief economic adviser Arvind Subramanian gestures as he addresses the media during a news conference in New the survey’s suggestion that some fi scal been hoped that he would re- allow real GDP growth to reach 6.75% this Delhi yesterday. The Indian government’s economic survey, presented to parliament went on to say that though the plan has slippage could be warranted. prise his work at the auto parts fi scal (year) and will rise to 7% to 7.5% in been to reduce the fiscal deficit from an estimated 3.2% this year to 3% in 2018/19, a pause in the move towards a lower deficit The benchmark 10-year bond yields maker where he engineered a 2018/19, thereby reinstating India as the could be merited in order to give the economy momentum. were up 4 basis points to 7.52% from its significant surge in China rev- world’s fastest growing major economy,” previous close. enue. the survey said. Fuelled by stronger private invest- ice tax (GST) last year and a shock move tionalist government heads into a na- The BSE index ended 0.65% higher He also oversaw its $920mn A senior offi cial at China’s National ment and exports, the recovery forecast to take high value currency notes out of tional election in 2019. after earlier climbing as much as 1.09% sale to China’s Ningbo Joyson Development and Reform Commission for India’s growth rate comes after the circulation in late 2016. “GDP growth might be at the lower to an all-time high of 36,443.98. Electronic and the $1.6bn pur- (NDRC) wrote in the Beijing Daily yes- country posted its slowest growth in The budget is expected to step up end of the range, but broadly the esti- The broader NSE index.NSEI end chase of assets from bankrupt terday that India’s main economic rival three years in 2017/18. The slowdown funding of rural development pro- mates are in line with our expectations,” 0.55% higher at 11,130.40, after rising Japanese airbag maker Takata in Asia was likely to see growth slow to was partly a consequence of the chaotic grammes and help small businesses as said Suvodeep Rakshit, senior econo- as much as 0.92% to a record high of Corp. 6.5%-6.8% this year. rollout of a nationwide goods and serv- Prime Minister Narendra Modi’s na- mist at Kotak Institutional Equities in 11,171.55. “Jason offered his resigna- tion for personal reasons that predate his time at Ford,” Pe- ter Fleet, head of Ford’s Asia Pacific operations, said in the statement. CBA surprises with internal CEO hire amid money-laundering scam “Ford accepted Jason’s resig- nation as the right way for him and the company to proceed. Reuters external appointment, given the AUS- Jason’s decision was not re- Sydney TRAC issues are ongoing... all internal lated to the business strategy candidates are eff ectively tarnished by or performance of Ford China,” the same brush,” said Omkar Joshi, a Fleet said, adding that Luo’s ommonwealth Bank of Australia portfolio manager at Regal Funds Man- replacement would be the sub- handed the CEO mantle to its agement. ject of a future announcement. Cretail banking boss Matt Comyn, “It is a good appointment, don’t get The departure, effective im- in a move the lender hopes will bring me wrong. mediately, is a blow to Ford, stability as it battles a money-launder- He has a good track record and in which has been falling behind ing scandal and braces for a powerful normal circumstances, I think he would rivals in the market. industry-wide inquiry into miscon- have been given that job anyway.” Its China sales slid 6% in duct. Regal Funds owns CBA shares. 2017 compared with a 3% rise The appointment, however, sur- Livingstone declined to comment for the industry overall. prised several experts who had expect- on whether Comyn had been cleared Luo was meant to help the ed the country’s biggest lender to avoid by regulators of any accountability or firm improve ties with lo- naming someone from within its ranks wrong-doing related to AUSTRAC’s cal joint-venture partners like on concerns the person may be seen as claims before the appointment, but Chongqing Changan Auto- tainted by the scandal. said the board had considered he was mobile Co and be nimbler in Comyn replaces Ian Narev, who has “fi t and proper” in line with corporate responding to local consumer led CBA since 2011 and announced his rules. Comyn, who has led the bank’s demands. retirement last year amid mounting retail unit since August 2012 after join- At Ford, Luo was in charge calls for his resignation, following al- ing the bank in 1999 as a graduate, will of the carmaker’s operations legations in a federal lawsuit that CBA receive A$2.2mn ($1.78mn) in annual in Greater China including its oversaw tens of thousands of breaches fi xed pay as CEO, lesser than Narev’s import business, Lincoln, its of anti-money laundering rules. A$2.65mn base pay as CBA tries to im- passenger car joint venture “The importance of maintaining mo- prove perceptions ahead of the inquiry. Changan Ford, its commercial mentum at the moment should not be Growth at Australia’s “Big Four” vehicle investment in Jiangling underestimated” and Comyn’s famili- banks, among the world’s most valua- Motors Corp, and its Taiwan arity with the A$137bn ($111bn) com- ble, have been hit by tighter credit con- operations. pany makes him the best candidate for ditions and competition from technol- Foreign automakers in China the role, CBA chairman Catherine Liv- Comyn: To restore Commonwealth Bank of Australia’s reputation amid the court case and a looming government inquiry into ogy giants such as Apple Inc, Amazon are also battling fierce com- ingstone said. the banking sector. and Facebook as they introduce mobile petition from local rivals, who “There are aspects of the bank and its payment and banking services. are aggressively launching new culture that we absolutely want to pre- its retail deposit machines, and for fail- Analysts estimate the case could re- long Royal Commission – which has the CBA has also suff ered setbacks in re- models to grab market share. serve and nurture and Matt is very well ing to report attempts to wire money by sult in several billions in fi nes. power to compel witnesses and recom- cent years over allegations it used out- The market is also skewed aware of those, as he is equally aware of individuals convicted of terror-related Comyn’s challenges, as he starts on mend criminal charges. dated medical information to justify by heavy government support the issues which have led to our current off ences. the top job on April 9, will be to help Some analysts, however, were scepti- refusing life insurance payouts or gave for electric vehicles, prompt- reputational issues,” she said. It is fi ghting the lawsuit being pur- restore the lender’s reputation amid the cal about naming an internal candidate poor fi nancial advice. ing Ford and others to seek CBA has been accused of allowing sued by Australia’s fi nancial crime court case and a looming government CEO at such a time. CBA shares have shed 17% from their partners and expand local suspicious transactions pass through fi ghting agency, AUSTRAC. inquiry into the sector through a year- “All indications were it would be an 2015 peak. production. Gulf Times Tuesday, January 30, 2018 5 BUSINESS

China may widen MPA Trump trade policies a risk to review to curb risks: PBoC economic progress: Indrawati

Bloomberg Reuters Jakarta Beijing S President Donald Trump’s hina may include shadow protectionist trade policies are banking, property fi - Uraising concerns of a potential Cnancing and Internet fi - setback to three decades of global eco- nancing in its macro-prudential nomic progress, according to Indone- assessment (MPA) to help curb sia’s Finance Minister Sri Mulyani In- risks, vice central bank governor drawati. Yi Gang said in remarks pub- “Globally we have to recognise that lished yesterday. openness and global trade is actu- Chinese policymakers have ally helping a lot of countries to have a been trying to contain fi nan- shared prosperity and reduce poverty,” cial risks and slow an explosive Indrawati said in a Bloomberg Tel- build-up in debt without stunt- evision interview in London yesterday. ing economic growth. “The current protectionist language is “We will further improve defi nitely going to create concern about macro-prudential policy frame- whether globally there will be a setback work, explore ways to include in the progress that has been made over shadow banking, real estate the past three decades.” fi nancing and Internet fi nanc- Signs of a new era of American pro- ing,” Yi wrote in China Finance, tectionism under Trump were under- a publication under the People’s scored this month when his govern- Bank of China. ment slapped tariff s on imported solar The central bank will also in- panels and washing machines. While clude interbank certifi cates of Trump said last Friday that US eco- deposit and green credit in its nomic growth promoted by his “Amer- MPA reviews and improve its ica First” policies would help the world, counter-cyclical adjustments on his protectionist tone since coming capital fl ows, Yi said. to power has been raising concerns in Since the fi rst quarter of 2017, countries like Indonesia. the central bank has included “For Asia especially and Indonesia, banks’ off -the-balance-sheet we are a country that relies on the global wealth management products market for us to be able to move from – part of the sprawling shadow being a low-income to a middle-come banking sector, in its examina- or even higher-income country,” Indra- tion of broad credit in its MPA wati said. “Trade can be very powerful risk-tool. for improving prosperity for all. This is China’s fi nancial deleverag- not a zero-sum game.” ing has pushed up money market Indonesia ran a trade surplus of rates, bond yields and corporate $12.4bn with the US last year, a small funding costs as broad M2 mon- decline from the $13bn it notched up ey supply growth hit a record low in 2016. That imbalance saw Southeast of 8.2% last year – well below Asia’s biggest economy earn the ire of the offi cial target of around 12%. the Trump administration, which in The world’s second-biggest April added the country to a list of na- economy still has problems and tions being probed for potential trade hidden dangers as the country’s abuse. debt levels remain high and asset But Indrawati said trade between the bubble risks have yet to be fully US and Indonesia was of mutual ben- contained, Yi wrote. efi t. The central bank will maintain “It would be very useful for many prudent and neutral monetary countries in the world, because after “Globally we have to recognise that openness and global trade is actually helping a lot of countries to have a shared prosperity and reduce poverty,” Indonesia’s Finance policy while seeking to increase all the US is the largest economy in the Minister Sri Mulyani Indrawatisaid in an interview in London yesterday. “The current protectionist language is definitely going to create concern about whether globally fl exibility and eff ectiveness of world,” Indrawati said. “It’s in the in- there will be a setback in the progress that has been made over the past three decades,” she added. liquidity management, Yi said. terest of the US to see Indonesia as the China has conditions to keep largest Southeast Asia economy be- after serving the World Bank as a man- lauded by investors as adding impetus proached to run in the presidential “As the fi nance minister I am very the yuan basically stable, Yi cause this is also a market for many of aging director. Having built a reputa- to Indonesia’s economic credibility. elections due in 2019, Indrawati said fully committed to making sure that said, adding that the regulator the US’s products.” tion as a technocrat and economic re- More recently, speculation has mount- she was focused on her current job the Indonesian economy is going to be will look to increase the yuan’s Indrawati, 55, returned for a second former when she fi rst ran the ministry ed about a possible tilt at higher offi ce. and the reforms her ministry was un- stronger and more stable for the good of exchange rate fl exibility. stint as the fi nance minister in July 2016 from 2005 to 2010, her return has been Asked yesterday if she had been ap- dertaking. the Indonesian people,” Indrawati said.

Vietnam should be cautious against Wanda Group gets $913mn from further monetary easing: Moody’s sale of projects in Australia Bloomberg a Bloomberg survey, in contrast to oth- Infl ation quickened to 2.65% in Janu- Hanoi ers in Southeast Asia such as Malaysia ary from a year earlier, Hanoi-based Reuters an opportunity for the group to realise its investment in where policymakers tightened policy General Statistics Offi ce announced Hong Kong/Sydney both Gold Coast Project and Sydney Project and would last week. Offi cials seek to sustain Vi- yesterday. The government targets benefi t the group by strengthening the liquidity and fi - ietnam should be cautious etnam’s economic growth – among the curbing infl ation to under 4% this year. nancial position of the group,” Wanda Hotel said. against more monetary accom- world’s fastest, while mindful of risks While progress is being made, cor- hinese conglomerate Dalian Wanda Group has Wanda Hotel said the disposal of the company, which Vmodation as it could pose risks including bad loans. ruption remains an endemic con- agreed to sell its two Australian projects to a owns the One Circular Quay in Sydney and 55% of the to the economy and the banking sector, Lending rose 18.2% in 2017 and the straint for Vietnam, Shah said, and CChina-backed developer for a total of A$1.13bn Jewel Resort on the Gold Coast which are both under de- Moody’s Investors Service said. central bank forecasts growth of 17% this is factored in Moody’s assess- ($913mn) in equity and assumed debt. velopment, would result in a gain of around HK$556mn “Given the government’s focus ap- this year. The World Bank in December ment of the overall institutional Wanda Group will get A$315mn for the sale, and the for Wanda Group. pears to be towards supporting headline also warned against rapid credit expan- strength of the country. Moody’s, buyer will also repay A$815.1mn in assumed debt on be- Wanda Hotel owns 60% of the company, while Wanda growth, the State Bank of Vietnam may sion in Vietnam, saying it may induce which rates the nation four steps be- half of the company, according to a statement by Wanda HK owns 40%. continue to pursue a neutral to accom- excessive risk taking and could worsen low investment grade, has a positive Hotel Development Co Ltd, the Hong Kong-listed unit of Both are subsidiaries of Wanda Group. modative policy stance,” Anushka Shah, asset quality. outlook on Vietnam. Wanda Group, yesterday. Wanda Hotel will also use around HK$4.1bn of the Moody’s sovereign analyst in Singapore, The central bank will “manage credit “Improved governance and control The deal, signed on January 18, comes just days after proceeds to repay loans and interest due to Wanda HK, said in a January 26 e-mailed reply to growth in a fl exible and cautious man- of corruption would contribute to pre- Wanda sold a high-profi le London luxury development it added. questions. ner in order to help companies and boost serving Vietnam’s competitiveness as a project for around $81mn, the latest in a string of asset Shares of Wanda Hotel will resume trading today. “However, easier monetary policy economic growth, while still being able market-based economy, and help sus- sales that underscore fi nancial strains hitting the Chi- They have been suspended since January 19. risks undermining macroeconomic sta- to limit risks in some business areas,” tain foreign investor interest even in a nese conglomerate. The sales are expected to lessen fi nancial strains on bility, particularly amid already rapid deputy governor Nguyen Thi Hong said scenario of shocks to global demand,” Wanda Group will cash in HK$10.32bn ($1.3bn) and Dalian Wanda Group, caused by a major acquisition credit growth,” Shah said. “A continued this month. she said. make a total gain of HK$1.28bn after the disposal of Lon- spree, by helping Wanda HK to meet upcoming debt acceleration in credit growth could also Vietnam’s economic growth this year Ongoing reforms to attract foreign don, Sydney and Gold Coast developments. deadlines. pose some risks to the banking sector by may match 2017’s pace of 6.8%, slightly direct investment and improve compet- The buyer is AWH Investment Group Pty Ltd, the China’s regulators last year told banks to stop provid- eroding banks’ capital buff ers.” higher than the 6.7% target set by the itiveness are credit positive, Shah said. statement said, an associate of China-backed Australian ing funding for several of Wanda’s overseas acquisitions, Vietnam’s central bank will hold in- government, Deputy Prime Minister Privatisation of state-owned companies property and investment group Yuhu Group. sources have said, part of a crackdown on what Beijing terest rates throughout 2018 after an Vuong Dinh Hue said in an interview will be gradual given the large size of Yuhu, in an e-mailed statement to Reuters confi rming sees as irrational spending by some domestic conglom- unexpected cut last year, according to this month. these entities, she said. the purchase, said the projects would create over 1,500 erates. jobs in Australia. Since then, Wanda, whose businesses range from real “Consistent with the company’s strategy to delever- estate to football and cinemas, has embarked on a string age, the company considers that the disposal represents of asset sales.

Alibaba, Foxconn lead $350mn funding in electric car startup

Reuters and compete with global leaders including Tesla Inc. Beijing China’s new energy vehicle sales are expected to grow by 40% in 2018, according to an industry body, even as the country’s traditional automotive market slowed sharply Alibaba Group Holding Ltd and Foxconn Technology Co in 2017. Xiaopeng says its first vehicle, the ‘G3’, will hit the Ltd have led a 2.2bn yuan ($347.74mn) funding round in market this year. Chinese electric car maker Xiaopeng Motors as competition Alibaba has invested heavily in smart car technology and escalates in the new energy vehicle (NEV) market. partnered with a handful of traditional western and Chinese The latest injection brings the startup company’s total carmakers, including Ford Motor Co and BMW. funding to 5bn yuan, it said in a statement. Other investors in the round include IDG Capital as well It follows an earlier round in December in which Alibaba as previous investors GGV Capital, Morningside Venture also participated. Capital and Matrix Partners, Alibaba said on its press site on Xiaopeng, which debuted its electric car at CES in Las Ve- Sunday. Labourers work at a garment factory in Bac Giang province, near Hanoi. Vietnam’s economic growth this year may match gas this month, is one of several Chinese start-ups looking Russian billionaire investor Yuri Milner is also supporting 2017’s pace of 6.8%, slightly higher than the 6.7% target set by the government, Deputy Prime Minister Vuong Dinh Hue said in to speed up development of battery-powered technology the initiative, the web site said. an interview this month. Gulf Times 6 Tuesday, January 30, 2018 BUSINESS

Hedge funds pile into oil despite rising risk of Japan raps Coincheck, a correction

By John Kemp London

Hedge funds continue to increase their bullish orders broader probe positions in oil, even as prices hit the highest level since the slump began in 2014, brushing Reuters aside concerns about overheated markets and Tokyo the risk of a correction. Hedge funds and other money managers raised their net long position in the six most apanese authorities said yesterday they important futures and options contracts linked would investigate all cryptocurrency ex- to oil by 44mn barrels to a record of 1,484mn in Jchanges in the country for security gaps the week to January 23. and ordered Coincheck to lift its standards Portfolio managers have raised their net after hackers stole $530mn worth of digital long position in Brent, NYMEX and ICE WTI, US money from the Tokyo-based exchange in one gasoline, US heating oil and European gasoil by of the world’s biggest cyberheists. the equivalent of 1,174mn barrels since the end The theft highlights the vulnerabilities in of June. trading an asset that global policymakers are Hedge funds are more bullish on the outlook struggling to regulate and the broader risks for for petroleum than at any time on record, even Japan as it aims to leverage the fi ntech industry though benchmark Brent prices have already to stimulate economic growth. nearly tripled over the last two years. The Financial Services Agency (FSA) yes- The ratio of hedge fund long positions to terday ordered improvements to operations at short positions has climbed to a record 11.51:1, up Coincheck, which on Friday suspended trad- from a low of just 1.55 at the end of June. ing in all cryptocurrencies except bitcoin after Since the start of 2015, such lopsided hedge hackers stole ¥58bn ($534mn) of NEM coins, fund positioning has usually preceded a sharp among the most popular digital currencies in reversal in the recent price trend. the world. But most fund managers seem unconcerned Coincheck said on Sunday it would return about the threat of a short-term reversal be- about 90% with internal funds, though it has cause the medium-term fundamentals appear yet to fi gure out how or when. solid. The NEM coins were stored in a “hot wallet” Oil consumption is growing rapidly as a result instead of the more secure “cold wallet”, which of synchronised growth in the major economies. operates on platforms not directly connected Opec and its allies have reiterated their com- to the internet, Coincheck said. mitment to output restraint. It also does not use an extra layer of security And global inventories are falling. known as a multi-signature system. Portfolio managers increased their bullish The hack has drawn into focus Japan’s ap- positions in every element of the petroleum proach to regulating cryptocurrency ex- complex in the week to January 23. changes. Last year, it became the fi rst country Net long positions rose in Brent (+14mn bar- to regulate exchanges at the national level – a rels), WTI (+8mn barrels), US gasoline (+12mn), move that won praise for boosting innovation US heating oil (+4mn) and European gasoil and protecting consumers, and that contrasts (+6mn). sharply with crackdowns in South Korea and Net long positions are at record levels in China. every contract and in most contracts the ratio of The FSA said it ordered Coincheck to submit long to short positions is at a multi-year highs. a report on the hack and measures for prevent- A monitor shows various cryptocurrencies’ exchange rates against yen including NEM coin (middle in the top) at ‘nem bar’, where customers Brent prices are close to their 10-year average ing a recurrence by February 13. can pay with NEM coins, in Tokyo. The Financial Services Agency yesterday ordered improvements to operations at Coincheck, which on Friday ($82 per barrel) and already above their average It added it would conduct hearings with suspended trading in all cryptocurrencies except bitcoin after hackers stole $534mn of NEM coins, among the most popular digital currencies in over the last complete cycle from 1998 to 2016 other exchanges after their operators had run the world. ($64). their own checks. The implication is that petroleum prices are If any problems or weaknesses with security change operators to register with the govern- recovered to $0.95 late on Monday afternoon, Coincheck’s lost NEM coins. It added that the no longer cheap but still have room to rise fur- were found during the course of the hearings, ment only in April 2017, allowing pre-existing according to CoinMarketCap. hacker had not moved any of the funds to any ther as the price cycle matures in 2018 and 2019. the FSA would also conduct onsite inspec- operators such as Coincheck to continue of- Cryptocurrency related shares mostly rose exchange or personal accounts but that it had Oil consumption is expected to continue ris- tions. fering services ahead of formal registration. in Tokyo, with GMO Internet, which off ers no way to return the stolen funds to its owners. ing strongly thanks to fast growth in the global The regulator also said it has yet to confi rm The FSA has registered 16 cryptocurren- cryptocurrency exchange services, gaining In 2014, Tokyo-based Mt. economy and world trade. whether Coincheck had suffi cient funds for cy exchanges so far, and another 16 are still 5.7%. Exchange operators in Tokyo said the Gox, which once handled 80% of the world’s The principal risks come from an accelera- the reimbursement. awaiting clearance. Coincheck hack will likely cause concerns over bitcoin trades, fi led for bankruptcy after losing tion in US shale drilling, declining compliance in But the regulator does not have any rules Coincheck’s application was made in Sep- security to grow among consumers, poten- around half a billion dollars worth of bitcoins. Opec and its allies, increased production from banning the use of “hot wallets” by exchang- tember. “It’s been long said that cryptocur- tially pressuring the price of cryptocurrencies. More recently, South Korean cryptocurren- non-Opec non-shale sources, or a deceleration es, nor does it set requirements on how much rencies are a solid system but cryptocurrency “I have to admit that all cryptocurrencies cy exchange Youbit last month shut down and in demand owing to rising prices. should be kept in “cold wallets,” an FSA offi cial exchanges are not,” said Makoto Sakuma, re- will now be tainted in their minds, so there fi led for bankruptcy after being hacked twice None of these risks appears likely to mate- said at a briefi ng. search fellow at NLI Research Institute. may be a mid-term negative impact,” said last year. rialise imminently but they will all increase the In response to FSA’s order for improve- “This incident showed that the problem has Genki Oda, president of BitPoint Japan. World leaders meeting in Davos last week higher that oil prices rise. ments, Coincheck said in a statement that it not been solved at all. The Singapore-based NEM Foundation, issued fresh warnings about the dangers of As with almost all relationships in the oil would promptly strengthen its customer pro- If Coincheck screws up its crisis manage- which describes itself as a promoter of the cryptocurrencies, with US Treasury Secretary market, the relationship between these risks and tection and governance, and develop its risk ment, that could deal a blow to the current technology underlying the cryptocurrency, Steven Mnuchin relating Washington’s con- oil prices is highly non-linear. management systems. cryptocurrency fever.” said it had a tracing system on the NEM block- cern about the money being used for illicit ac- Risks will increase even faster than prices. Japan started to require cryptocurrency ex- NEM fell to $0.78 from $1.01 on Friday but chain and that it had “a full account” of all of tivity. Page 13 The higher prices rise, the greater the risk from increased shale and non-shale drilling, the greater the chance of non-compliance and the more likely demand will slow. The other source of risk comes from within the market itself. The higher prices rise the greater the tempta- Asian markets trim gains after early surge tion for hedge fund managers to try to realise some profits by selling a proportion of their long AFP ling higher profi ts in anticipation of Sydney. But he warned that “a weak- entering the fray this week, which committee could point to faster rate positions. Hong Kong tax cuts recently enacted in the Unit- ening US dollar may prove a brake on could make for some touch and go rises in 2018. Industrial data from The extremely lopsided positioning of the ed States. With more data expected any investor exuberance”. moments,” said Stephen Innes, head China and GDP fi gures from India are hedge funds and other money managers in the this week – including from tech gi- The greenback remains under of Asia-Pacifi c trading at OANDA. also expected this week. oil market has created a significant source of sian markets trimmed gains ants like Apple, Amazon, Facebook, pressure, after seemingly contra- “But for now, the markets remain Tokyo closed fl at at 23,629.34 as fragility. after an early surge yesterday Alibaba and Google’s parent company dictory comments last week on its comfortable to maintain a longer- late profi t-taking erased yesterday Fragility does not mean a correction will hap- Aas investors tracked last week’s Alphabet – analysts say strong results strength by US President Donald term soft dollar bias.” Markets could morning gains, and Shanghai ended pen soon, but it does increase the probability record-breaking close on Wall Street. could sustain the positive sentiment Trump and Treasury Secretary Ste- also be impacted this week by the the day down 0.99 % at 3,523.00. even a small increase in production or slow- The three major US indices all in the markets. ven Mnuchin. The dollar could expe- outcome of a scheduled US Federal Hong Kong lost 0.6 % at 33,966.89 down in consumption could trigger a relative closed at record highs on Friday with “A data-packed week and stock rience more turbulence with several Reserve meeting. after an early surge, but Seoul ended large downward movement in prices. earnings season in full swing, on the reporting seasons around the globe major announcements coming up The Fed is expected to leave the up 0.9% and Sydney closed 0.4% back of strong earnings announce- should see market focus turn to the this week, including Trump’s State of benchmark US interest rate un- higher. Singapore, Bangkok, Welling- „ John Kemp is a Reuters market analyst. The ments. The trend is expected to con- numbers,” said Michael McCarthy, the Union address today. “We should touched, but economists say the ton, Manila and Taiwan all rose, while views expressed are his own. tinue, with major companies signal- chief strategist at CMC Markets in expect more two-way uncertainty changing composition of the policy Jakarta was down.

Indian equities hit another record high Emerging stocks snap 11-day rally

Bloomberg before declining on Thursday, the last day a record after its net income beat estimates. Reuters ing market equity funds were at a der with Syria. The comment was Mumbai of trading before a national holiday. “Maruti and strong global cues are help- London record high of $7.9bn in the past seen as a sign that Ankara could Nine of 19 sectoral sub-indexes com- ing the gains in the market,” said Chokka- week, underpinned by large infl ows extend its 10-day-old off ensive piled by BSE Ltd gained, led by a gauge of lingam G, managing director and founder into China H-shares as global in- on the Syrian Kurdish YPG group ndia’s benchmark equity indexes automobile companies. Maruti Suzuki In- of Mumbai-based Equinomics Research merging stocks snapped an vestors express increasing opti- in Syria’s northern Afrin region, climbed to record highs yesterday as dia Ltd and Housing Development Finance & Advisory Pvt. “With foreign investors 11-day winning streak yes- mism towards China’s economic potentially ramping up tensions Ibuying from foreign investors under- Corp Ltd were among the top performers turning back to equities, we believe 2018 Eterday and currencies felt prospects,” Morgan Stanley strate- between Turkey and the United pinned growth in automakers and soft- on the main measures. will be the year for large-cap companies.” the pain of the dollar regaining its gist Hans Redeker wrote in a note to States, which has supported the ware exporters. Maruti Suzuki, India’s largest carmaker, Overseas investors have been net buy- footing as markets eyed reports due clients. YPG in other parts of Syria against The benchmark S&P BSE Sensex ad- climbed 3.8% after the company revised its ers of local stocks for eight successive from Washington that could ring The world’s number two econ- Islamic State. vanced 0.7% to 36,283.25 while the NSE royalty calculation methodology, resulting sessions through Wednesday, as per data in a fresh set of sanctions against omy was still leading emerging But commodities broadly cling- Nifty 50 Index jumped 0.6%. The gauges in lower payments for new models. Hous- compiled by Bloomberg. Foreigners have Russia. markets risk sentiment, he added, ing to their gains did provide a had both risen to six successive records ing Development Finance advanced 3.1% to bought $1.76bn of shares this month. MSCI’s emerging markets pointing to a senior offi cial at Bei- cushion. benchmark had climbed to a new jing’s top economic planner fore- Russia’s rouble was treading wa- decade high in early Asian trading, casting China’s expansion would ter thanks to Brent crude futures Deutsche Boerse to invest $23mn to renovate Frankfurt’s old stock exchange but withdrew to trade 0.2% weaker come in above consensus at 6.5%- holding above $70 per barrel. while bourses around the globe 6.8% in 2018. Meanwhile markets were await- painted a mixed picture. Currencies painted an equally ing two reports from Washington Deutsche Boerse, the German stock the public more strongly to Frankfurt,” said German financial news even though actual Stocks in South Korea, Taiwan mixed picture. which could detail the possibilities exchange operator, will invest €18.5mn chief executive off icer Theodor Weimer. trading at the exchange, which has roots and parts of the Gulf chalked up Many had enjoyed a solid rally in for expanding sanctions against ($23mn) by 2020 in Frankfurt’s historic “This increases the attractiveness of the dating back to 1585, is now mostly done solid gains. the past days, sailing higher as the Moscow, including a list of promi- stock exchange building, a familiar back- financial centre and also that of Germany as electronically. Yet equities in Russia, South Af- dollar suff ered its worst weekly fall nent oligarchs and potential re- drop for TV broadcasts on German markets an economic location.” Deutsche Boerse rents the trading floor rica and Turkey were suff ering. in more than half a year following strictions on the holding of Russian and the economy. Deutsche Boerse plans an expanded visi- areas in the building, which is owned by the China’s blue-chips booked confl icting signals from top US government debt. The renovation is an eff ort by Deutsche tor centre and a stage to showcase initial Frankfurt am Main Chamber of Commerce their worst day in more than two offi cials. On Friday, Washington already Boerse, which detailed its plans yesterday, public off erings. and Industry. months, led by a slump in consum- But with the greenback fi nding added Russian offi cials and energy to cultivate local ties after a failed merger A room previously used for bond trading It also announced yesterday that it had er and healthcare stocks as inves- its footing again, South Africa’s fi rms to a sanctions blacklist. last year with London Stock Exchange and will be converted into spaces for confer- extended its rental contract to 2048. tors decided to take profi ts. rand and Turkey’s lira weakened Separately, Russian opposition part of a push to try to attract more retail ences and events. The company hopes that investing in this Chinese stocks have enjoyed a 0.7%. Turkish stocks and local leader Alexei Navalny was detained investors. The exchange’s 19th century building landmark will help to spark greater interest hefty rally, with mainland indexes government bonds came under during a nationwide day of protests “We are drawing the attention for issuers, on Boersenplatz in downtown Frankfurt is among the German public in share trading, still up some 8% since the start of pressure after a pledge by President in the run up to the election on institutional investors, private investors and often used by TV crews when reporting on startups and IPOs. the year. Tayyip Erdogan on Sunday that the March 18, though numbers seemed “Weekly infl ows into emerg- country will “clean” its entire bor- lower than in previous protests. Gulf Times Tuesday, January 30, 2018 7 BUSINESS

SAUDI ARABIA KUWAIT OMAN

Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume

Saudi Re For Cooperative Rei 9.23 0.00 2,035,112 Boubyan Intl Industries Hold 38.40 0.00 3,600 Dhofar Beverages Co 0.26 0.00 - Solidarity Saudi Takaful Co 22.95 -6.06 2,334,458 Gulf Investment House Ksc 0.00 0.00 - Construction Materials Ind 0.03 0.00 - Amana Cooperative Insurance 22.59 -1.01 446,081 Boubyan Bank K.S.C 460.00 0.66 689,859 Computer Stationery Inds 0.26 0.00 - Alabdullatif Industrial Inv 13.40 0.00 63,220 Ahli United Bank B.S.C 211.00 0.96 1,695,079 Bankmuscat Saog 0.40 0.51 742,332 Saudi Printing & Packaging C 19.94 -1.34 1,047,575 Osos Holding Group Co 84.00 -7.69 197,769 Bank Sohar 0.16 0.65 376,756 Sanad Cooperative Insurance 0.00 0.00 - Al-Eid Food Ksc 0.00 0.00 - Bank Nizwa 0.09 0.00 2,406,500 Saudi Paper Manufacturing Co 8.00 -0.87 521,298 Qurain Petrochemical Industr 341.00 -0.87 64,779 Bank Dhofar Saog 0.21 -0.94 1,210,000 Alinma Bank 20.64 0.83 27,115,729 Advanced Technology Co 0.00 0.00 - Areej Vegetable Oils Saoc 0.00 0.00 - Almarai Co 52.96 0.21 403,181 Ekttitab Holding Co Sak 33.90 2.42 171,866 Aloula Co 0.53 0.00 - Falcom Saudi Equity Etf 29.20 0.34 125,755 Kout Food Group Ksc 0.00 0.00 - Al-Omaniya Financial Service 0.28 0.00 - QATAR United International Transpo 29.50 0.00 194,734 Real Estate Trade Centers Co 33.40 -1.47 7,641 Al-Hassan Engineering Co 0.03 0.00 5,861 Hsbc Amanah Saudi 20 Etf 28.45 0.00 6 Acico Industries Co Kscc 240.00 -2.04 4,800 Al-Fajar Al-Alamia Co 0.75 0.00 - Company Name Lt Price % Chg Volume Saudi International Petroche 18.77 1.51 3,910,583 Kipco Asset Management Co 77.00 0.00 6,390 Al-Anwar Ceramic Tiles Co 0.13 1.57 1,311,103 Falcom Petrochemical Etf 28.40 0.00 6 National Petroleum Services 860.00 5.52 65,916 Al Suwadi Power 0.14 0.00 - Zad Holding Co 77.00 -3.68 199 Walaa Cooperative Insurance 35.01 0.14 163,605 Alimtiaz Investment Co Kscc 150.00 2.04 8,455,933 Al Shurooq Inv Ser 0.00 0.00 - Widam Food Co 73.00 -1.88 77,429 Bank Al-Jazira 14.06 0.79 2,731,321 Ras Al Khaimah White Cement 89.50 -0.44 100 Al Sharqiya Invest Holding 0.11 0.00 135,689 Vodafone Qatar 7.15 -2.05 707,394 Al Rajhi Bank 72.20 0.95 2,944,657 Kuwait Reinsurance Co Ksc 0.00 0.00 - Al Maha Petroleum Products M 1.00 0.00 - United Development Co 17.17 1.42 877,856 Samba Financial Group 25.78 -0.08 389,429 Kuwait & Gulf Link Transport 120.00 2.56 3,798,855 Al Maha Ceramics Co Saoc 0.28 0.00 576,750 Salam International Investme 7.21 0.14 10,651 United Electronics Co 46.70 -0.55 124,687 Human Soft Holding Co Ksc 3,795.00 -0.08 67,270 Al Madina Takaful Co Saoc 0.10 -1.04 473,987 Qatar & Oman Investment Co 8.10 4.25 2,219 Allied Cooperative Insurance 18.67 -1.99 193,434 Automated Systems Co Kscc 152.00 0.00 926 Al Madina Investment Co 0.06 0.00 28,491 Qatar Navigation 64.90 0.70 32,811 Malath Insurance 17.40 0.87 448,021 Metal & Recycling Co 72.90 -0.14 50 Al Kamil Power Co 0.31 0.00 - Qatar National Cement Co 69.00 -0.30 37,851 Alinma Tokio Marine 22.86 -4.03 342,218 Gulf Franchising Holding Co 71.00 0.00 20,010 Al Jazerah Services -Pfd 0.55 0.00 - Qatar National Bank 139.50 2.35 181,888 Arabian Shield Cooperative 45.14 -1.83 218,093 Al-Enma’a Real Estate Co 35.60 -3.26 936,632 Al Jazeera Steel Products Co 0.31 0.00 - Qatar Islamic Insurance 58.00 0.87 3,267 Savola 39.37 -0.61 208,311 National Mobile Telecommuni 1,123.00 -0.18 3,548 Al Jazeera Services 0.16 -1.80 69,495 Qatar Industrial Manufactur 44.60 1.34 1,588 Wafrah For Industry And Deve 20.37 0.99 689,124 Al Bareeq Holding Co Kscc 0.00 0.00 - Al Izz Islamic Bank 0.08 2.60 894,035 Qatar International Islamic 61.68 0.05 89,713 Fitaihi Holding Group 12.41 0.08 103,559 Housing Finance Co Sak 0.00 0.00 - Al Buraimi Hotel 0.88 0.00 - Qatari Investors Group 34.90 -1.97 36,275 Tourism Enterprise Co/ Shams 30.66 8.49 1,325,969 Al Salam Group Holding Co 41.60 -5.02 2,638,810 Al Batinah Power 0.14 0.00 - Qatar Islamic Bank 101.79 0.43 29,021 Sahara Petrochemical Co 16.54 1.91 2,048,997 United Foodstuff Industries 0.00 0.00 - Al Batinah Hotels 1.13 0.00 - Qatar Gas Transport(Nakilat) 18.83 3.75 382,157 Herfy Food Services Co 46.71 1.02 1,211,721 Al Aman Investment Company 51.40 0.00 8,000 Al Batinah Dev & Inv 0.08 0.00 - Qatar General Insurance & Re 47.50 3.94 300 Mashaer Holding Co Ksc 66.10 0.00 888 Al Anwar Holdings Saog 0.15 0.00 248,856 Qatar German Co For Medical 6.40 0.00 24,431 Manazel Holding 32.00 -0.93 280,930 Ahli Bank 0.17 0.00 - Qatar Fuel Qsc 118.50 0.42 19,935 Mushrif Trading & Contractin 0.00 0.00 - Acwa Power Barka Saog 0.76 0.00 - Qatar First Bank 7.16 -1.24 662,069 KUWAIT Tijara And Real Estate Inves 55.00 0.00 193,984 Abrasives Manufacturing Co S 0.05 0.00 - Qatar Electricity & Water Co 200.49 0.00 11,364 Kuwait Building Materials 0.00 0.00 - A’saff a Foods Saog 0.58 0.00 - Qatar Cinema & Film Distrib 21.10 0.00 - Company Name Lt Price % Chg Volume Jazeera Airways Co Ksc 649.00 0.00 385,250 0Man Oil Marketing Co-Pref 0.25 0.00 - Qatar Insurance Co 53.50 -0.74 56,233 Commercial Real Estate Co 95.50 -0.52 279,515 Ooredoo Qpsc 99.90 -0.57 71,247 Securities Group Co 0.00 0.00 - Future Communications Co 0.00 0.00 - National Leasing 10.06 0.00 72,957 Sultan Center Food Products 0.00 0.00 - National International Co 61.40 0.00 100 Mazaya Qatar Real Estate Dev 8.10 0.00 253,090 Kuwait Foundry Co Sak 224.00 0.90 12,201 Taameer Real Estate Invest C 34.70 -0.57 64,000 UAE Mesaieed Petrochemical Holdi 14.70 1.38 300,798 Kuwait Financial Centre Sak 111.00 -0.89 110,030 Gulf Cement Co 87.50 1.74 4,571 Al Meera Consumer Goods Co 153.01 -1.28 37,283 Ajial Real Estate Entmt 174.00 -1.14 150,000 Heavy Engineering And Ship B 200.00 0.50 80,000 Company Name Lt Price % Chg Volume Medicare Group 79.99 0.74 23,788 Gulf Glass Manuf Co -Kscc 0.00 0.00 - Refrigeration Industries & S 0.00 0.00 - Mannai Corporation Qsc 67.00 -0.04 730 Kuwait Finance & Investment 45.40 0.00 52,842 National Real Estate Co 122.00 0.00 132,066 Waha Capital Pjsc 2.07 -2.82 5,181,668 Masraf Al Rayan 41.80 -0.19 313,331 National Industries Co Ksc 190.00 5.56 18,998 Al Safat Energy Holding Comp 37.90 -0.26 82,589 United Insurance Company 2.00 0.00 - Al Khalij Commercial Bank 13.29 1.30 14,757 Kuwait Real Estate Holding C 34.80 0.00 111,650 Kuwait National Cinema Co 1,130.00 -0.79 9,997 United Arab Bank Pjsc 1.88 0.53 200,000 Industries Qatar 114.00 0.04 94,826 Securities House/The 55.00 -1.43 830,075 Danah Alsafat Foodstuff Co 71.50 2.73 811,493 Union National Bank/Abu Dhab 4.04 -0.25 850,264 Islamic Holding Group 31.99 -0.03 3,813 Boubyan Petrochemicals Co 712.00 0.14 314,395 Independent Petroleum Group 390.00 -4.88 500 Union Insurance Co 1.79 0.00 - Investment Holding Group 6.31 0.16 192,837 Al Ahli Bank Of Kuwait 305.00 0.00 3,001 Kuwait Real Estate Co Ksc 58.70 0.00 695,882 Union Cement Co 1.51 -5.03 102,950 Gulf Warehousing Company 43.50 -1.14 1,859 Ahli United Bank (Almutahed) 350.00 -0.28 372,116 Salhia Real Estate Co Ksc 350.00 3.55 102,505 Umm Al Qaiwain Cement Indust 1.02 0.00 - Gulf International Services 20.00 -2.53 465,458 National Bank Of Kuwait 760.00 -0.91 2,169,851 Gulf Cable & Electrical Ind 433.00 -0.46 20,893 Sharjah Islamic Bank 1.34 0.00 509,000 Ezdan Holding Group 11.89 3.21 474,783 Commercial Bank Of Kuwait 400.00 0.00 25 Al Nawadi Holding Co Ksc 0.00 0.00 - Sharjah Insurance Company 3.49 0.00 - Doha Insurance Co 13.48 0.00 - Kuwait International Bank 231.00 -2.12 2,514,589 Kuwait Finance House 601.00 -0.33 8,420,231 Sharjah Group 1.15 0.00 - Doha Bank Qpsc 33.08 0.55 231,731 Gulf Bank 249.00 -0.40 308,897 Gulf North Africa Holding Co 36.10 0.00 20,000 Sharjah Cement & Indus Devel 1.08 -1.82 105,125 Dlala Holding 14.56 -1.02 44,290 Al-Massaleh Real Estate Co 40.50 0.00 990 Hilal Cement Co 100.00 -20.00 19,270 Ras Al-Khaimah National Insu 3.69 0.00 - Commercial Bank Pqsc 28.21 -0.14 125,261 Al Arabiya Real Estate Co 36.10 0.56 5,308,926 Osoul Investment Kscc 53.00 6.00 107,650 Ras Al Khaimah White Cement 0.89 0.00 - Barwa Real Estate Co 38.00 -0.13 277,452 Kuwait Remal Real Estate Co 46.70 1.97 205,386 Gulf Insurance Group Ksc 700.00 0.00 512 Ras Al Khaimah Ceramics 2.85 3.64 696 Al Khaleej Takaful Group 13.75 0.00 - Alkout Industrial Projects C 670.00 3.08 10,000 Kuwait Food Co (Americana) 1,055.00 0.00 12,500 Ras Al Khaimah Cement Co Psc 0.75 1.35 248,500 Aamal Co 8.75 0.00 63,458 A’ayan Real Estate Co Sak 78.90 -0.13 412 Umm Al Qaiwain Cement Indust 0.00 0.00 - Ras Al Khaima Poultry 3.40 0.00 - Investors Holding Group Co.K 17.50 -1.13 2,882,308 Aayan Leasing & Investment 38.60 0.78 2,533,785 Rak Properties 0.78 -1.27 4,221,314 Al-Mazaya Holding Co 113.00 0.89 2,762,294 Alrai Media Group Co Ksc 114.00 0.00 88 Ooredoo Qpsc 99.00 0.00 - SAUDI ARABIA Al-Madar Finance & Invt Co 26.50 1.92 2 National Investments Co 103.00 0.00 2,043,044 Oman & Emirates Inv(Emir)50% 0.53 0.00 - Gulf Petroleum Investment 33.80 2.42 756,518 Commercial Facilities Co 179.00 2.29 49,000 Nbad Oneshare Msci Uae Ucits 6.20 0.00 - National Takaful Company 0.00 Company Name Lt Price % Chg Volume Mabanee Co Sakc 737.00 0.00 227,505 Taiba Kuwaiti Holding Co Ksc 0.00 0.00 - 0.45 - City Group 0.00 0.00 - Afaq Educational Services Co 0.00 0.00 - National Marine Dredging Co 3.50 0.00 - United Wire Factories Compan 16.10 -0.74 246,725 Inovest Co Bsc 77.80 -2.75 1,699,000 Kuwait Pillars For Financial 0.00 0.00 - National Investor Co/The 0.45 0.00 - Etihad Etisalat Co 15.78 2.07 2,982,970 Kuwait Gypsum Manufacturing 0.00 0.00 - Yiaco Medical Co. K.S.C.C 192.00 20.00 1,550 National Corp Tourism & Hote 2.08 0.00 - Dar Al Arkan Real Estate Dev 9.95 -3.77 128,608,341 Al-Deera Holding Co 28.00 0.00 596 Dulaqan Real Estate Co 0.00 0.00 - National Bank Of Umm Al Qaiw 2.99 0.67 25,000 Saudi Hollandi Bank 0.00 0.00 - Alshamel International Hold 0.00 0.00 - National Bank Of Ras Al-Khai 4.70 0.00 - Rabigh Refining And Petroche 20.04 0.80 2,325,561 Mena Real Estate Co 17.90 -2.72 545,939 National Bank Of Fujairah 5.00 0.00 - Banque Saudi Fransi 30.04 0.13 497,257 National Slaughter House 0.00 0.00 - First Abu Dhabi Bank Pjsc 0.00 0.00 - Saudi Enaya Cooperative Insu 19.17 -2.39 239,093 Amar Finance & Leasing Co 41.00 2.76 7,101 OMAN Methaq Takaful Insurance 0.76 -1.30 1,105,500 Manazel Real Estate Pjsc 0.59 -1.67 7,854,711 Mediterranean & Gulf Insuran 27.75 -0.75 71,691 United Projects For Aviation 612.00 0.00 206 Company Name Lt Price % Chg Volume Saudi British Bank 29.02 0.94 697,996 National Consumer Holding Co 100.00 0.00 1 Invest Bank 2.50 0.00 40,000 Mohammad Al Mojil Group Co 0.00 0.00 - Amwal International Investme 61.50 10.81 2,022,729 Voltamp Energy Saog 0.51 0.00 - Intl Fish Farming Co Pjsc 1.43 -2.05 476,250 Red Sea International Co 18.80 0.27 85,960 Jeeran Holdings 0.00 0.00 - United Power/Energy Co- Pref 1.00 0.00 - Insurance House 0.89 0.00 - Takween Advanced Industries 10.10 -0.88 324,903 Equipment Holding Co K.S.C.C 40.80 -0.24 446,300 United Power Co Saog 3.90 0.00 - Gulf Pharmaceutical Ind Psc 2.35 0.00 5,257 Sabb Takaful 24.00 -1.76 172,981 Nafais Holding 847.00 0.00 1 United Finance Co 0.13 -1.52 82,442 Gulf Medical Projects 1.90 0.00 - Saudi Arabian Fertilizer Co 69.03 2.12 77,025 Safwan Trading & Contracting 0.00 0.00 - Ubar Hotels & Resorts 0.13 0.00 - Gulf Cement Co 1.05 -3.67 125,000 National Gypsum 12.70 -0.39 107,560 Arkan Al Kuwait Real Estate 87.10 -2.13 79,203 Takaful Oman 0.17 0.00 - Fujairah Cement Industries 0.95 0.00 - Saudi Ceramic Co 26.32 -0.11 121,450 Gfh Financial Group Bsc 120.00 0.00 709,914 Taageer Finance 0.13 0.00 - Fujairah Building Industries 1.56 0.00 - National Gas & Industrializa 30.71 -0.29 24,940 Energy House Holding Co Kscp 31.00 0.32 100 Sweets Of Oman 1.34 0.00 - Foodco Holding Pjsc 4.94 0.00 - Saudi Pharmaceutical Industr 30.70 -0.32 72,413 Kuwait Slaughter House Co 0.00 0.00 - Sohar Power Co 0.13 0.00 - First Gulf Bank 0.00 0.00 - Thimar 30.08 2.45 1,318,399 Kuwait Co For Process Plant 150.00 0.00 6,666 Sohar Poultry 0.21 0.00 - Finance House 1.72 0.00 - National Industrialization C 16.85 0.72 1,073,556 Al Maidan Dental Clinic Co K 1,220.00 0.00 532,150 Smn Power Holding Saog 0.66 0.00 - Eshraq Properties Co Pjsc 0.76 -1.30 4,980,438 Saudi Transport And Investme 0.00 0.00 - National Shooting Company 0.00 0.00 - Shell Oman Marketing - Pref 1.05 0.00 - Emirates Telecom Group Co 18.00 0.00 918,607 Saudi Electricity Co 20.76 -0.14 491,652 Al-Themar Real International 0.00 0.00 - Shell Oman Marketing 1.75 0.00 - Emirates Insurance Co. (Psc) 7.90 0.00 - Saudi Arabia Refineries Co 31.99 1.72 301,835 Al-Ahleia Insurance Co Sakp 430.00 0.00 250 Sharqiyah Desalination Co Sa 3.96 0.00 - Emirates Driving Company 9.20 0.00 - Arriyadh Development Company 19.52 0.15 112,881 Wethaq Takaful Insurance Co 39.00 0.00 6,845 Sembcorp Salalah Power & Wat 0.24 0.00 - Dana Gas 0.76 -2.56 3,685,247 Al-Baha Development & Invest 22.71 -0.31 258,117 Salbookh Trading Co Kscp 59.00 0.00 125,100 Salalah Port Services 0.60 0.00 - Commercial Bank Internationa 1.00 0.00 - Saudi Research And Marketing 66.91 -1.88 104,943 Aqar Real Estate Investments 75.00 -5.06 1,161,209 Salalah Mills Co 1.33 0.00 - Bank Of Sharjah 1.19 0.85 246,752 Aldrees Petroleum And Transp 25.67 0.82 246,641 Hayat Communications 80.00 0.00 15,100 Salalah Beach Resort Saog 1.38 0.00 - Axa Green Crescent Insurance 0.89 0.00 - Saudi Vitrified Clay Pipe Co 55.11 -1.24 10,425 Kuwait Packing Materials Mfg 0.00 0.00 - Sahara Hospitality 2.50 0.00 - Arkan Building Materials Co 0.79 1.28 856,539 Jarir Marketing Co 166.30 1.04 31,346 Soor Fuel Marketing Co Ksc 115.00 0.00 41,108 Renaissance Services Saog 0.31 0.66 40,000 Alkhaleej Investment 2.00 0.00 78,750 Arab National Bank 28.00 0.04 26,265 Alargan International Real 160.00 0.00 3,000 Raysut Cement Co 0.80 0.50 6,682 Aldar Properties Pjsc 2.32 0.00 5,122,510 Yanbu National Petrochemical 64.33 0.58 430,716 Burgan Co For Well Drilling 70.00 -0.71 26,346 Port Service Corporation 0.18 0.00 - Al Wathba National Insurance 12.75 0.00 - Arabian Cement 34.85 -0.20 92,018 Kuwait Resorts Co Kscc 72.50 0.00 10,100 Phoenix Power Co Saoc 0.13 0.00 648,339 Al Khazna Insurance Co 0.27 -3.57 55,000 Middle East Specialized Cabl 8.38 1.21 669,234 Oula Fuel Marketing Co 115.00 0.00 14,539 Packaging Co Ltd 2.21 0.00 - Al Fujairah National Insuran 300.00 0.00 - Al Khaleej Training And Educ 19.64 -0.61 119,876 Palms Agro Production Co 80.00 -4.76 10,246 Ooredoo 0.51 0.00 5,000 Al Dhafra Insurance Co. P.S. 3.84 0.00 - Al Sagr Co-Operative Insuran 25.32 -2.13 238,781 Ikarus Petroleum Industries 0.00 0.00 - Ominvest 0.42 0.00 - Al Buhaira National Insuranc 2.20 0.00 - Trade Union Cooperative Insu 21.37 1.04 406,605 Mubarrad Holding Co Ksc 71.00 0.57 7,747 Oman United Insurance Co 0.37 0.00 - Al Ain Ahlia Ins. Co. 38.00 0.00 - Arabia Insurance Cooperative 16.99 -2.41 171,732 Al Mowasat Health Care Co 0.00 0.00 - Oman Textile Holding Co Saog 0.00 0.00 - Agthia Group Pjsc 4.40 0.00 96,110 Saudi Chemical Company 33.00 0.24 52,555 Shuaiba Industrial Co 250.00 0.00 4,000 Oman Telecommunications Co 1.12 -1.32 105,847 Abu Dhabi Ship Building Co 2.00 -1.96 47,000 Fawaz Abdulaziz Alhokair & C 30.02 -2.41 453,613 Aan Digital Services Co 0.00 0.00 - Oman Refreshment Co 2.05 0.00 - Abu Dhabi Natl Co For Buildi 0.53 -3.64 50,000 Bupa Arabia For Cooperative 92.70 -0.45 66,017 First Takaful Insurance Co 64.90 0.00 10,100 Oman Packaging 0.28 0.00 - Abu Dhabi National Takaful C 4.64 0.00 - Wafa Insurance 21.18 -2.04 650,466 Kuwaiti Syrian Holding Co 31.20 0.65 221,500 Oman Orix Leasing Co. 0.18 0.00 - Abu Dhabi National Insurance 3.85 0.00 - Jabal Omar Development Co 60.44 1.49 606,955 National Cleaning Company 61.00 1.67 20,440 Oman Oil Marketing Company 1.46 0.00 - Abu Dhabi National Hotels 2.75 0.00 - Saudi Basic Industries Corp 106.55 0.75 5,945,758 Eyas For High & Technical Ed 0.00 0.00 - Oman National Engineering An 0.19 0.00 124,580 Abu Dhabi National Energy Co 0.55 -3.51 23,269,968 Saudi Kayan Petrochemical Co 12.22 3.21 21,654,459 United Real Estate Company 75.00 -3.85 20,549 Oman Investment & Finance 0.13 0.77 218,721 Abu Dhabi Islamic Bank 4.05 -0.25 374,212 Etihad Atheeb Telecommunicat 6.25 -2.19 715,837 Agility 879.00 -0.45 106,171 Oman Intl Marketing 0.52 0.00 - Co For Cooperative Insurance 89.68 -0.61 89,576 Kuwait & Middle East Fin Inv 26.00 0.00 55,000 Oman Hotels & Tourism Co 0.44 0.00 - National Petrochemical Co 19.64 0.51 296,836 Fujairah Cement Industries 72.10 0.00 143,600 Oman Foods International 0.00 0.00 - Gulf Union Cooperative Insur 17.48 -0.96 99,230 Livestock Transport & Tradng 226.00 -0.44 10,202 Oman Flour Mills 0.87 0.00 - BAHRAIN Gulf General Cooperative Ins 17.31 -2.37 340,866 International Resorts Co 31.30 0.00 135,000 Oman Fisheries Co 0.13 -0.75 308,540 Basic Chemical Industries 21.29 0.19 23,100 National Industries Grp Hold 164.00 0.00 161,800 Oman Fiber Optics 0.00 0.00 - Company Name Lt Price % Chg Volume Saudi Steel Pipe Co -0.49 Marine Services Co Ksc 0.00 Oman Europe Foods Industries 1.00 0.00 - 16.24 8,698 0.00 - Zain Bahrain Bscc 0.08 0.00 20,000 Buruj Cooperative Insurance -1.27 Warba Insurance Co -18.34 Oman Education & Training In 0.15 0.00 - 34.98 179,337 57.00 583 United Paper Industries Bsc 0.00 0.00 - Mouwasat Medical Services Co -0.43 Kuwait United Poultry Co 0.00 Oman Chromite 3.64 0.00 - 163.00 24,886 0.00 - United Gulf Investment Corp 0.00 0.00 - Southern Province Cement Co 0.25 First Dubai Real Estate Deve 3.06 Oman Chlorine 0.44 0.00 - 48.27 31,953 50.50 3,161,127 United Gulf Bank 0.00 0.00 - Maadaniyah 0.31 Al Arabi Group Holding Co 5.00 Oman Ceramic Company 0.42 0.00 - 19.71 103,144 84.00 150 Trafco Group Bsc 0.00 0.00 - Yamama Cement Co -0.47 Kuwait Hotels Sak 0.00 Oman Cement Co 0.39 0.00 470 17.10 40,077 246.00 275,920 Takaful International Co 0.00 0.00 - Jazan Energy And Development 1.20 Mobile Telecommunications Co 0.21 Oman Cables Industry 1.13 0.00 - 17.67 404,099 476.00 1,880,484 Taib Bank -$Us 0.00 0.00 - Zamil Industrial Investment -0.52 Al Safat Real Estate Co 0.00 Oman Agricultural Dev 0.00 0.00 - 26.75 38,970 0.00 - Seef Properties 0.21 0.00 35,000 Alujain Corporation (Alco) 0.00 Tamdeen Real Estate Co Ksc 0.00 Oman & Emirates Inv(Om)50% 0.09 0.00 - 21.01 386,667 399.00 15,199 Securities & Investment Co 0.00 0.00 - Tabuk Agricultural Developme 0.56 Al Mudon Intl Real Estate Co 0.48 Natl Aluminium Products 0.16 0.00 - 12.68 378,227 41.50 109 National Hotels Co 0.00 0.00 - United Co-Operative Assuranc -0.30 Kuwait Cement Co Ksc 0.00 National Securities 0.04 0.00 - 13.38 129,001 470.00 14,151 National Bank Of Bahrain Bsc 0.65 0.00 33,153 Qassim Cement/The 0.78 Sharjah Cement & Indus Devel 0.00 National Real Estate Develop 5.00 0.00 - 45.24 65,258 75.10 71,517 Nass Corp Bsc 0.13 0.00 115,100 Saudi Advanced Industries -1.60 Kuwait Portland Cement Co 1.90 National Pharmaceutical 0.11 0.00 - 13.57 282,799 1,019.00 3,000 Khaleeji Commercial Bank 0.12 -0.83 1,074,361 Kingdom Holding Co 2.49 Educational Holding Group -0.32 National Mineral Water 0.05 0.00 - 10.29 3,052,758 309.00 40,100 Ithmaar Holding Bsc 0.20 8.33 3,240,930 Saudi Arabian Amiantit Co -0.12 Bahrain Kuwait Insurance 0.00 National Hospitality Institu 0.00 0.00 - 8.06 1,859,832 0.00 - Investcorp Bank -$Us 8.60 0.00 15,000 Al Jouf Agriculture Developm -1.09 Asiya Capital Investments Co 0.00 National Gas Co 0.29 0.34 115,307 31.65 76,828 44.00 162,316 Inovest Co Bsc 0.00 0.00 - Saudi Industrial Development 0.31 Kuwait Investment Co 0.00 National Finance Co 0.14 0.00 - 9.63 306,084 124.00 20,526 Gulf Monetary Group 0.00 0.00 - Bishah Agriculture 0.00 Burgan Bank 0.00 National Detergent Co Saog 0.65 0.00 - 0.00 - 317.00 2,631 Gulf Hotel Group B.S.C 0.51 -3.81 12,800 Riyad Bank 0.73 Kuwait Projects Co Holdings 0.33 National Biscuit Industries 3.75 0.00 - 13.75 189,598 305.00 478,950 Gfh Financial Group Bsc 0.41 0.00 170,285 The National Agriculture Dev -0.26 Al Madina For Finance And In -1.02 National Bank Of Oman Saog 0.21 3.90 948,268 30.66 68,378 39.00 376,060 Esterad Investment Co B.S.C. 0.00 0.00 - Halwani Bros Co -0.98 Kuwait Insurance Co 0.00 Muscat Thread Mills Co 0.09 0.00 - 50.30 14,692 279.00 1,766 Delmon Poultry Co 0.00 0.00 - Arabian Pipes Co 0.59 Al Masaken Intl Real Estate 0.00 Muscat National Holding 0.00 0.00 - 12.01 273,218 79.00 50 Bmmi Bsc 0.75 0.00 50,000 Eastern Province Cement Co -2.19 Intl Financial Advisors 1.85 Muscat Gases Company Saog 0.56 0.00 - 26.39 69,318 33.00 3,639,736 Bmb Investment Bank 0.00 0.00 - Al Gassim Investment Holding 0.00 First Investment Co Kscc 0.00 Muscat Finance 0.11 0.00 52,434 0.00 - 43.50 250,150 Bbk Bsc 0.42 0.48 39,557 Filing & Packing Materials M 1.06 Al Mal In -3.33 Majan Glass Company 0.18 0.00 - 32.34 113,477 vestment Company 26.10 143,550 Bankmuscat Saog 0.00 0.00 - Saudi Cable Co 0.00 -0.85 Majan College 0.44 0.00 - 10.81 - Bayan Investment Co Kscc 46.50 22,001 Banader Hotels Co 0.00 0.00 - Tihama Advertising & Public -1.25 0.00 Hsbc Bank Oman 0.12 0.00 - 45.92 287,410 Egypt Kuwait Holding Co Sae 270.00 4,710 Bahrain Tourism Co ` 0.00 - Saudi Investment Bank/The 0.55 -1.41 Hotels Management Co Interna 1.25 0.00 - 16.36 69,122 Coast Investment Development 35.00 55,000 Bahrain Telecom Co 0.20 0.00 2,565,900 Astra Industrial Group 1.05 -0.68 Gulf Stone 0.12 0.00 - 16.32 239,681 Privatization Holding Compan 58.00 1,334,906 Bahrain Ship Repair & Engin 1.55 0.00 1,614 Saudi Public Transport Co 0.90 0.00 Gulf Plastic Industries Co 0.00 0.00 - 15.62 923,848 Kuwait Medical Services Co 0.00 - Bahrain National Holding 0.00 0.00 - Taiba Holding Co -0.09 0.00 Gulf Mushroom Company 0.31 0.00 - 34.97 41,135 Injazzat Real State Company 93.00 84,600 Bahrain Kuwait Insurance 0.49 0.00 42,014 Saudi Industrial Export Co -0.01 18.00 Gulf Investments Services 0.08 0.00 3,364 148.39 13,045 Kuwait Cable Vision Sak 29.50 5,005 Bahrain Islamic Bank 0.14 0.00 59,970 Saudi Real Estate Co 2.76 -14.29 Gulf Invest. Serv. Pref-Shar 0.11 0.00 - 23.45 125,272 Sanam Real Estate Co Kscc 30.00 4,937 Bahrain Flour Mills Co 0.00 0.00 - Saudia Dairy & Foodstuff Co -0.78 12.36 Gulf International Chemicals 0.23 0.00 - 117.99 47,730 Ithmaar Holding Bsc 60.90 42,921,659 Bahrain Family Leisure Co 0.00 0.00 - National Shipping Co Of/The 0.10 0.00 Gulf Hotels (Oman) Co Ltd 10.50 0.00 - 30.24 183,500 Aviation Lease And Finance C 373.00 221,150 Bahrain Duty Free Complex 0.77 0.00 85,800 Methanol Chemicals Co -0.49 -2.77 Global Fin Investment 0.16 0.00 - 10.07 3,380,255 Arzan Financial Group For Fi 31.60 282,494 Bahrain Commercial Facilitie 0.70 0.00 5,714 Chubb Arabia Cooperative Ins -0.73 0.73 Galfar Engineering&Contract 0.08 0.00 209,000 24.37 207,732 Ajwan Gulf Real Estate Co 27.50 4,400,604 Bahrain Cinema Co 1.19 0.00 - Mobile Telecommunications Co -0.14 0.21 Galfar Engineering -Prefer 0.39 0.00 - 7.18 2,400,387 Kuwait Business Town Real Es 47.00 725,728 Bahrain Car Park Co 0.00 0.00 - Saudi Arabian Coop Ins Co -0.73 0.00 Financial Services Co. 0.18 0.00 - 19.16 533,565 Future Kid Entertainment And 108.00 19,720 Arab Insurance Group(Bsc)-$ 0.50 -1.00 25,000 Axa Cooperative Insurance -1.45 0.00 Financial Corp/The 0.10 0.00 - 24.43 447,448 Specialities Group Holding C 70.50 373,177 Arab Banking Corp Bsc-$Us 0.28 0.00 1,389,326 Alsorayai Group -0.32 -0.43 Dhofar University 0.00 0.00 - 12.46 236,665 Abyaar Real Eastate Developm 23.20 859,823 Aluminium Bahrain Bsc 0.63 0.00 3,000 Weqaya For Takaful Insurance 0.00 0.00 Dhofar Tourism 0.49 0.00 - 0.00 - Dar Al Thuraya Real Estate C 0.00 - Albaraka Banking Group 0.37 -1.33 11,800 Bank Albilad 0.58 0.00 Dhofar Poultry 0.18 0.00 - 22.70 583,229 Al-Dar National Real Estate 0.00 - Al-Salam Bank 0.13 0.81 217,000 Al-Hassan G.I. Shaker Co -0.36 -0.56 Dhofar Intl Development 0.32 0.00 - 11.21 131,659 Kgl Logistics Company Kscc 53.00 4,010,400 Solidarity Bahrain Bsc 0.00 0.00 - Wataniya Insurance Co -0.39 -0.43 Dhofar Insurance 0.20 0.00 - 27.81 96,839 Combined Group Contracting 462.00 19,150 Ahli United Bank B.S.C 0.70 0.00 160,000 Abdullah Al Othaim Markets 124.00 0.06 15,396 Jiyad Holding Co Ksc 0.00 0.00 - Dhofar Fisheries & Food Indu 1.28 0.00 - Hail Cement 9.41 0.11 282,600 Qurain Holding Co 0.00 0.00 - Dhofar Cattlefeed 0.19 0.00 - LATEST MARKET CLOSING FIGURES Gulf Times 8 Tuesday, January 30, 2018 BUSINESS

DJIA WORLD INDICES Company Name Lt Price % Chg Volume Indices Lt Price Change Dow Jones Indus. Avg 26,484.45 -132.26 Apple Inc 168.08 -2.00 21,354,217 S&P 500 Index 2,857.27 -15.60 Microsoft Corp 93.95 -0.12 12,283,831 Nasdaq Composite Index 7,472.08 -33.69 Exxon Mobil Corp 88.80 -0.23 2,370,460 S&P/Tsx Composite Index 16,141.33 -97.89 Johnson & Johnson 143.88 -1.00 2,089,372 Mexico Bolsa Index 50,698.81 -366.68 General Electric Co 16.12 -0.08 24,951,859 Brazil Bovespa Stock Idx 84,467.19 -1,063.65 Jpmorgan Chase & Co 116.82 0.43 3,398,472 Ftse 100 Index 7,675.21 +9.67 Procter & Gamble Co/The 86.85 -1.00 3,631,530 Cac 40 Index 5,524.97 -4.18 Wal-Mart Stores Inc 108.57 0.17 1,955,170 Dax Index 13,325.88 -14.29 Verizon Communications Inc 53.85 -1.59 6,705,876 Ibex 35 Tr 10,561.40 -34.00 Pfizer Inc 39.11 0.24 10,985,448 Nikkei 225 23,629.34 -2.54 Visa Inc-Class A Shares 125.34 -0.78 1,845,956 Japan Topix 1,880.45 +1.06 Chevron Corp 130.42 -0.59 1,936,593 Hang Seng Index 32,966.89 -187.23 Coca-Cola Co/The 47.60 -1.92 3,142,545 All Ordinaries Indx 6,187.59 +22.84 Intel Corp 50.30 0.45 14,235,992 Nzx All Index 1,498.83 +2.34 Merck & Co. Inc. 61.88 -0.26 1,985,568 Bse Sensex 30 Index 36,283.25 +232.81 Cisco Systems Inc 42.78 0.52 6,406,489 Nse S&P Cnx Nifty Index 11,130.40 +60.75 Home Depot Inc 206.26 -0.47 802,286 Straits Times Index 3,577.07 +9.93 Intl Business Machines Corp 166.60 -0.44 1,200,450 Karachi All Share Index 31,925.69 -117.60 Walt Disney Co/The 111.32 -0.78 1,663,626 Jakarta Composite Index 6,680.62 +20.00 Unitedhealth Group Inc 247.96 -0.21 818,685 3M Co 257.91 -0.28 705,160 Mcdonald’s Corp 177.71 -0.36 1,661,530 Nike Inc -Cl B 67.52 -0.76 1,728,195 TOKYO United Technologies Corp 137.25 -0.53 953,111 Boeing Co/The 340.61 -0.76 1,226,445 Company Name Lt Price % Chg Volume Goldman Sachs Group Inc 271.51 1.26 1,257,584 Rakuten Inc 1,013.50 -0.69 23,516,300 American Express Co 99.68 0.05 791,491 Kyocera Corp 7,444.00 0.24 962,300 Caterpillar Inc 161.52 -3.32 4,458,227 Nissan Motor Co Ltd 1,193.50 0.97 17,093,600 Travelers Cos Inc/The 149.14 -0.19 465,078 Hitachi Ltd 904.00 -1.74 20,364,000 Takeda Pharmaceutical Co Ltd 6,595.00 -0.74 1,303,900 Jfe Holdings Inc 2,661.50 0.74 2,001,800 Ana Holdings Inc 4,573.00 0.07 884,100 London’s FTSE 100 gained 0.1% to 7,671.53 points as share prices of heavyweight mining companies rose on rising copper prices. FTSE 100 Mitsubishi Electric Corp 2,026.50 -1.10 7,504,700 Sumitomo Mitsui Financial Gr 5,038.00 -0.30 8,901,700 Company Name Lt Price % Chg Volume Honda Motor Co Ltd 3,947.00 0.36 3,107,900 Fast Retailing Co Ltd 49,440.00 -0.14 586,600 Wpp Plc 1,289.00 -0.27 2,422,304 Ms&Ad Insurance Group Holdin 3,845.00 0.03 1,073,300 Worldpay Group Plc 435.40 0.00 - Kubota Corp 2,249.00 -0.97 2,282,300 Wolseley Plc 0.00 0.00 - Seven & I Holdings Co Ltd 4,583.00 -0.84 1,622,600 Wm Morrison Supermarkets 225.70 -0.53 2,097,397 Inpex Corp 1,492.00 -0.10 3,733,900 European stock markets Whitbread Plc 3,925.00 0.41 595,973 Resona Holdings Inc 681.80 0.16 11,648,800 Vodafone Group Plc 225.90 0.13 19,110,083 Asahi Kasei Corp 1,466.50 0.41 2,325,300 United Utilities Group Plc 737.00 -1.47 1,051,357 Kirin Holdings Co Ltd 2,814.00 -0.02 1,954,300 Unilever Plc 3,963.00 -0.78 1,563,786 Marubeni Corp 846.30 0.52 4,314,200 Tui Ag-Di 1,618.50 -0.80 496,712 Mitsubishi Ufj Financial Gro 846.00 0.61 64,929,500 Travis Perkins Plc 1,475.00 -0.77 1,096,856 Mitsubishi Chemical Holdings 1,221.50 1.08 5,444,000 downbeat as dollar fi rms Tesco Plc 210.80 -0.33 7,249,006 Fanuc Corp 30,630.00 0.23 1,993,100 Taylor Wimpey Plc 199.15 -0.08 5,030,734 Daito Trust Construct Co Ltd 19,665.00 -3.60 678,200 Standard Life Plc 0.00 0.00 - be an oversold bounce rather than a “A data-packed week and stock Otsuka Holdings Co Ltd 4,925.00 -0.69 794,000 AFP Standard Chartered Plc 838.80 -1.22 2,814,274 Oriental Land Co Ltd 11,120.00 0.86 942,500 trend reversal. After all, there has been reporting seasons around the globe St James’s Place Plc 1,216.50 -0.61 1,535,616 London Sekisui House Ltd 2,070.50 -1.50 5,343,500 no fundamental change to instigate a should see market focus turn to the Sse Plc 1,298.00 1.29 2,759,287 Secom Co Ltd 8,520.00 -0.95 445,400 reversal in the dollar”. numbers,” said Michael McCarthy, Smith & Nephew Plc 1,288.50 -0.27 1,294,029 Tokio Marine Holdings Inc 5,274.00 0.17 1,697,800 Sky Plc 1,050.50 0.24 2,774,209 tock markets kicked off the week Earlier yesterday, Asian stock mar- chief strategist at CMC markets in Aeon Co Ltd 1,892.50 -0.39 1,729,700 Shire Plc 3,489.00 1.45 1,942,586 in lacklustre fashion yesterday as kets ended down on profi t-taking, as Sydney. Mitsui & Co Ltd 1,953.50 0.49 5,132,300 Severn Trent Plc 1,972.00 -1.89 415,474 the dollar recovered some ground investors tracked last week’s record- But he warned that a weak dollar Kao Corp 7,572.00 -1.66 1,325,500 S Schroders Plc 3,772.00 1.43 176,579 after slumping last week to three-year breaking close on Wall Street. “may prove a brake on any investor Dai-Ichi Life Holdings Inc 2,366.50 0.74 5,447,100 Sainsbury (J) Plc 259.60 -0.57 3,038,866 Mazda Motor Corp 1,566.00 0.38 3,305,000 lows against the euro. The three major US indices all closed exuberance”. Sage Group Plc/The 756.60 -0.26 1,386,265 Komatsu Ltd 4,184.00 -1.65 7,111,800 London edged a touch higher, with at record highs on Friday with earnings The greenback remains under pres- Abi Sab Group Holding Ltd 0.00 0.00 - West Japan Railway Co 8,375.00 -0.88 599,500 the FTSE index benefi ting from gains season in full swing, on the back of strong sure after seemingly contradictory Rsa Insurance Group Plc 623.20 0.13 968,484 Murata Manufacturing Co Ltd 15,930.00 0.09 1,100,900 Royal Mail Plc 465.00 -0.45 843,759 to share prices of heavyweight min- earnings announcements. But yesterday, comments last week on its desired Kansai Electric Power Co Inc 1,397.00 0.14 1,389,900 Royal Dutch Shell Plc-B Shs 2,571.00 0.67 2,584,366 ing companies on rising copper prices, Wall Street also ran into profi t-taking af- strength by US President Donald Denso Corp 7,015.00 -0.33 1,609,300 Royal Dutch Shell Plc-A Shs 2,522.50 0.50 2,787,316 traders said. ter four straight weekly gains. Trump and Treasury Secretary Steven Sompo Holdings Inc 4,573.00 -1.00 1,102,600 Royal Bank Of Scotland Group 300.60 -0.33 3,567,466 Mnuchin. Daiwa House Industry Co Ltd 4,504.00 -0.27 907,500 London’s FTSE 100 gained 0.1% to “US stocks are lower in early action, Rolls-Royce Holdings Plc 865.60 1.15 2,277,973 Jxtg Holdings Inc 752.60 2.10 14,796,500 7,671.53 points, Frankfurt’s DAX 30 ahead of a busy week of economic and The dollar could experience more Rio Tinto Plc 4,024.50 2.08 2,331,551 Nippon Steel & Sumitomo Meta 2,860.00 0.05 2,510,300 lost 0.1% to 13,324.48 and Paris’s CAC earnings data, while the global markets turbulence with several major an- Rexam Ltd 0.00 0.00 - Suzuki Motor Corp 6,307.00 1.99 3,152,800 nouncements coming up this week, Relx Plc 1,564.00 0.16 3,458,860 40 fell 0.1% to 5,521.59 points at close assess the rally that has carried over Nippon Telegraph & Telephone 5,302.00 0.40 2,909,500 Reckitt Benckiser Group Plc 6,800.00 1.09 655,369 yesterday. into 2018,” brokers Charles Schwab including Trump’s State of the Union Ajinomoto Co Inc 2,106.50 0.86 2,517,300 Randgold Resources Ltd 7,172.00 0.59 333,391 “After managing to staunch its said in a note to clients. address today. Mitsui Fudosan Co Ltd 2,935.00 -0.25 2,647,300 Prudential Plc 1,938.00 0.96 1,642,290 bleeding last Friday, the dollar has con- But there is a good chance that the Markets could also be impacted this Ono Pharmaceutical Co Ltd 2,697.50 -1.05 1,110,700 Provident Financial Plc 681.00 -2.96 512,264 Daikin Industries Ltd 13,335.00 -0.11 887,700 tinued to try and claw back the acres of upward trend will resume, with major week by the outcome of a scheduled US Persimmon Plc 2,625.00 -0.23 293,732 Bank Of Yokohama Ltd/The 0.00 0.00 - ground lost in the last few months,” companies signalling higher profi ts in Federal Reserve meeting. Pearson Plc 691.60 -0.35 1,323,648 Toray Industries Inc 1,119.50 -0.40 4,474,600 said Connor Campbell, an analyst at anticipation of tax cuts recently en- The Fed is expected to leave the Paddy Power Betfair Plc 8,090.00 0.12 89,107 Astellas Pharma Inc 1,420.00 -0.14 5,114,500 Old Mutual Plc 236.60 -1.54 6,841,801 Spreadex trading group. acted in the US, analysts said. benchmark US interest rate untouched, Bridgestone Corp 5,416.00 -0.11 1,726,300 Next Plc 5,170.00 -0.92 401,341 But some analysts suspected that With more earnings numbers ex- but economists say the changing com- Sony Corp 5,285.00 0.00 7,160,900 National Grid Plc 803.90 -0.38 5,031,769 the greenback was simply taking a pected this week – including from tech position of the policy committee could Hoya Corp 5,765.00 0.77 1,159,000 Mondi Plc 1,919.00 1.27 697,477 breather before heading lower again. giants like Apple, Amazon, Facebook, point to faster rate rises in 2018 – espe- Sumitomo Mitsui Trust Holdin 4,586.00 -0.76 1,307,700 Merlin Entertainment 332.60 -0.39 1,261,697 Japan Tobacco Inc 3,656.00 -0.05 3,611,600 “The dollar has started the new Alibaba and Google’s parent company cially if the dollar remains weak. Mediclinic International Plc 609.60 -0.23 886,234 Osaka Gas Co Ltd 2,228.50 0.45 999,900 week on the front-foot,” said Fawad Alphabet – analysts say strong results Industrial data from China and GDP Marks & Spencer Group Plc 310.80 -0.54 2,092,757 Sumitomo Electric Industries 1,903.00 0.69 1,743,900 Razaqzada at Forex.com, but “the rise could sustain the positive sentiment in fi gures from India are also expected London Stock Exchange Group 4,031.00 0.17 472,604 Daiwa Securities Group Inc 783.30 -0.50 4,860,000 Lloyds Banking Group Plc 71.58 0.45 58,823,274 at the start of this week may very well the markets. this week. Softbank Group Corp 9,182.00 -0.20 3,376,200 Legal & General Group Plc 276.20 0.36 6,854,338 Mizuho Financial Group Inc 210.20 0.10 90,194,800 Land Securities Group Plc 1,002.80 -0.75 824,754 Nomura Holdings Inc 722.40 -0.56 14,969,100 Kingfisher Plc 353.30 -0.23 2,579,637 HONG KONG HONG KONG Daiichi Sankyo Co Ltd 3,554.00 1.80 2,568,700 Johnson Matthey Plc 3,342.00 1.46 508,324 Subaru Corp 3,665.00 -0.43 2,747,200 Itv Plc 171.35 -0.20 12,589,201 Ntt Docomo Inc 2,740.00 0.13 4,176,600 Company Name Lt Price % Chg Volume Company Name Lt Price % Chg Volume Intu Properties Plc 227.90 -0.13 1,105,565 Sumitomo Realty & Developmen 4,284.00 -0.97 1,212,000 Intl Consolidated Airline-Di 648.60 -0.22 2,202,578 Aluminum Corp Of China Ltd-H 5.88 2.26 62,975,329 Hong Kong & China Gas 15.46 -0.13 10,445,349 Sumitomo Metal Mining Co Ltd 5,269.00 0.67 1,450,200 Intertek Group Plc 5,058.00 -0.24 169,344 Bank Of East Asia Ltd 34.25 0.00 919,784 Hong Kong Exchanges & Clear 292.20 -1.75 12,367,229 Orix Corp 2,172.00 0.42 3,802,700 Intercontinental Hotels Grou 4,769.00 -0.19 374,784 Bank Of China Ltd-H 4.80 0.00 869,555,363 Hsbc Holdings Plc 85.05 -0.76 28,960,637 Asahi Group Holdings Ltd 5,630.00 -2.31 1,084,900 Inmarsat Plc 474.20 -1.02 870,042 Bank Of Communications Co-H 6.92 -0.72 72,255,256 Hutchison Whampoa Ltd 0.00 0.00 - Keyence Corp 68,330.00 -1.14 448,900 Informa Plc 689.60 0.79 1,898,485 Belle International Holdings 0.00 0.00 - Ind & Comm Bk Of China-H 7.44 1.36 627,514,419 Nidec Corp 18,370.00 0.99 1,181,100 Imperial Brands Plc 2,917.50 0.09 1,552,294 Boc Hong Kong Holdings Ltd 40.85 -2.16 18,873,431 Li & Fung Ltd 3.98 -0.50 11,601,082 Isuzu Motors Ltd 1,861.00 -0.56 3,957,900 Hsbc Holdings Plc 769.90 -0.09 6,818,918 Cathay Pacific Airways 12.40 -1.59 4,708,887 Mtr Corp 44.95 -0.44 4,188,365 Unicharm Corp 2,966.00 -1.08 1,007,700 Hargreaves Lansdown Plc 1,909.00 0.47 339,323 Ck Hutchison Holdings Ltd 104.80 -1.78 7,178,597 New World Development 12.72 -1.40 18,619,009 Shin-Etsu Chemical Co Ltd 13,090.00 4.64 3,481,000 Hammerson Plc 495.90 -0.06 2,452,734 China Coal Energy Co-H 4.26 5.71 68,282,807 Petrochina Co Ltd-H 6.48 1.57 292,896,129 Smc Corp 55,460.00 1.37 301,900 Glencore Plc 415.60 3.41 31,143,261 China Construction Bank-H 9.12 0.77 767,985,586 Ping An Insurance Group Co-H 90.65 -2.94 76,941,073 Mitsubishi Corp 3,141.00 0.19 4,243,800 Glaxosmithkline Plc 1,349.60 -0.40 4,477,411 China Life Insurance Co-H 26.00 -2.07 87,733,442 Power Assets Holdings Ltd 67.50 0.07 2,550,339 Nintendo Co Ltd 47,900.00 -0.68 1,699,700 Gkn Plc 433.70 -0.53 3,922,804 China Merchants Port Holding 21.10 -1.40 8,905,948 Sino Land Co 14.62 -0.68 3,843,224 Eisai Co Ltd 6,308.00 -0.58 582,800 Fresnillo Plc 1,370.50 0.15 565,424 China Mobile Ltd 82.50 0.24 18,731,699 Sun Hung Kai Properties 136.40 -1.37 3,714,181 Sumitomo Corp 1,953.00 1.30 3,372,500 Experian Plc 1,640.00 0.06 734,919 China Overseas Land & Invest 31.10 0.48 31,161,480 Swire Pacific Ltd - Cl A 78.90 -1.00 1,772,290 Canon Inc 4,266.00 -0.33 2,685,000 Easyjet Plc 1,678.00 -0.65 1,532,344 China Petroleum & Chemical-H 7.00 0.72 139,289,856 Tencent Holdings Ltd 471.60 0.08 22,504,576 Japan Airlines Co Ltd 4,192.00 -0.38 1,310,500 Dixons Carphone Plc 203.70 -0.49 1,638,584 China Resources Beer Holdin 29.35 -2.81 8,111,968 Wharf Holdings Ltd 32.00 0.00 3,800,292 Direct Line Insurance Group 375.50 0.13 1,742,879 China Resources Land Ltd 31.30 -0.32 21,236,186 China Resources Power Holdin 14.82 1.37 10,019,508 Diageo Plc 2,533.00 -1.02 3,901,578 SENSEX Dcc Plc 7,525.00 -0.46 33,941 China Shenhua Energy Co-H 24.75 3.99 65,394,364 GCC INDICES Crh Plc 2,722.00 -0.11 768,789 China Unicom Hong Kong Ltd 11.64 -0.17 40,272,698 Compass Group Plc 1,493.00 -0.83 1,891,046 Company Name Lt Price % Chg Volume Citic Ltd 12.62 -0.32 13,922,250 Indices Lt Price Change Coca-Cola Hbc Ag-Di 2,410.00 -0.33 201,652 Clp Holdings Ltd 78.35 -0.82 3,496,645 Doha Securities Market Zee Entertainment Enterprise 608.90 2.19 4,506,359 9,450.07 +38.54 Centrica Plc 133.60 -0.78 7,404,185 Cnooc Ltd 12.68 -0.47 94,153,844 Saudi Tadawul Yes Bank Ltd 358.00 -1.00 8,277,591 7,568.36 +29.98 Carnival Plc 4,999.00 1.19 335,899 Cosco Shipping Ports Ltd 8.40 0.12 2,642,321 Kuwait Stocks Exchange Wipro Ltd 311.15 -0.26 3,788,526 6,672.95 +43.84 Capita Plc 359.90 -0.47 1,235,362 Esprit Holdings Ltd 3.35 -4.29 25,748,546 Bahrain Stock Exchage Vedanta Ltd 345.00 -0.17 15,016,183 1,344.54 +2.22 Burberry Group Plc 1,629.50 1.12 1,062,097 Fih Mobile Ltd 2.31 -1.28 7,970,729 Oman Stock Market Ultratech Cement Ltd 4,390.70 0.71 271,685 5,002.69 +11.31 Bunzl Plc 2,062.00 0.15 2,322,916 Hang Lung Properties Ltd 21.25 -1.85 3,644,000 Abudhabi Stock Market Tech Mahindra Ltd 604.80 1.06 3,501,479 4,626.42 -5.44 Bt Group Plc 260.20 -1.03 7,774,063 Hang Seng Bank Ltd 187.20 0.65 2,497,806 Dubai Financial Market Tata Steel Ltd 783.15 1.82 6,977,517 3,455.24 -8.90 British Land Co Plc 680.80 -0.82 2,744,277 Henderson Land Development 54.80 -0.72 5,865,945 Tata Power Co Ltd 90.05 0.11 4,760,649 British American Tobacco Plc 4,869.50 -1.41 1,720,903 Tata Motors Ltd 399.25 -0.26 6,124,617 Bp Plc 516.00 -0.06 11,816,132 Tata Consultancy Svcs Ltd 3,198.85 2.49 1,650,216 Bhp Billiton Plc 1,600.40 1.14 5,282,833 Sun Pharmaceutical Indus 587.95 1.40 6,419,405 Berkeley Group Holdings/The 4,118.00 0.10 210,658 “Information contained herein is believed to be reliable and had been obtained from sources believed to be reliable. The State Bank Of India 312.10 -0.34 25,498,810 Barratt Developments Plc 618.00 -0.03 1,905,276 Reliance Industries Ltd 964.50 -0.14 4,942,645 accuracy and completeness cannot be guaranteed. This publication is for providing information only and is not intended Barclays Plc 208.00 -0.95 15,074,499 Punjab National Bank 173.95 -3.84 19,875,651 as an off er or solicitation for a purchase or sale of any of the financial instruments mentioned. Gulf Times and Doha Bank Bae Systems Plc 590.00 1.83 5,593,115 Power Grid Corp Of India Ltd 194.15 -0.08 6,315,235 or any of their employees shall not be held accountable and will not accept any losses or liabilities for actions based on Babcock Intl Group Plc 732.40 -1.45 664,258 Oil & Natural Gas Corp Ltd 205.15 -1.61 8,333,065 this data.” Aviva Plc 524.00 0.46 5,142,781 Ntpc Ltd 171.05 -0.52 10,886,893 Astrazeneca Plc 5,087.00 -0.16 811,393 Maruti Suzuki India Ltd 9,630.70 3.80 1,647,192 Associated British Foods Plc 2,831.00 -0.84 417,833 Mahindra & Mahindra Ltd 764.35 0.86 2,171,719 Ashtead Group Plc 2,142.00 0.85 865,572 Lupin Ltd 912.20 -3.94 1,616,307 CURRENCIES Arm Holdings Plc 0.00 0.00 - Larsen & Toubro Ltd 1,431.95 1.09 3,185,665 DOLLAR QATAR RIYAL SAUDI RIYAL UAE DIRHAMS BAHRAINI KUWAITI Antofagasta Plc 954.60 1.45 1,501,646 DINAR DINAR Kotak Mahindra Bank Ltd 1,115.10 2.08 2,276,343 Anglo American Plc 1,759.00 1.41 2,719,229 Itc Ltd 275.65 -1.99 11,210,572 Admiral Group Plc 1,893.50 0.26 343,228 Infosys Ltd 1,182.90 0.64 5,630,804 3I Group Plc 935.00 0.62 1,012,743 Indusind Bank Ltd 1,742.50 0.71 1,287,472 #N/A 0.00 0.00 - Idea Cellular Ltd 93.60 -1.58 25,210,402 Icici Bank Ltd 357.65 -0.87 24,157,265 TOKYO Housing Development Finance 1,967.60 3.11 7,372,010 Hindustan Unilever Ltd 1,397.30 1.79 1,474,765 Hindalco Industries Ltd 258.60 -0.14 6,245,225 Company Name Lt Price % Chg Volume Hero Motocorp Ltd 3,641.75 1.98 423,846 East Japan Railway Co 11,195.00 -1.24 864,700 Hdfc Bank Limited 1,999.65 1.25 2,157,003 Itochu Corp 2,197.50 0.60 3,822,000 Hcl Technologies Ltd 1,012.05 0.45 2,668,729 Fujifilm Holdings Corp 4,602.00 -0.35 1,277,200 Grasim Industries Ltd 1,184.55 -0.71 663,047 Yamato Holdings Co Ltd 2,625.00 0.42 1,637,300 Gail India Ltd 474.35 -3.93 4,447,190 Chubu Electric Power Co Inc 1,401.50 -0.46 1,368,500 Dr. Reddy’s Laboratories 2,357.10 -6.01 1,251,974 Mitsubishi Estate Co Ltd 2,149.00 -0.65 3,429,300 Coal India Ltd 301.75 0.78 3,887,908 Mitsubishi Heavy Industries 4,188.00 -0.92 1,646,600 Cipla Ltd 615.00 -1.03 1,661,188 Toshiba Corp 317.00 0.00 16,291,000 Cairn India Ltd 0.00 0.00 - Shiseido Co Ltd 5,714.00 -2.56 1,574,800 Bosch Ltd 19,879.20 1.21 13,613 Shionogi & Co Ltd 6,217.00 -0.72 984,800 Bharti Airtel Ltd 440.60 -2.67 25,133,291 Tokyo Gas Co Ltd 2,663.00 -0.22 1,142,700 Bharat Petroleum Corp Ltd 469.80 -2.26 3,961,138 Tokyo Electron Ltd 22,110.00 1.31 1,267,600 Bharat Heavy Electricals 101.90 -1.07 8,920,684 Panasonic Corp 1,658.50 -0.03 6,591,200 Bank Of Baroda 162.35 -2.87 13,433,378 Fujitsu Ltd 816.00 0.42 13,639,000 Bajaj Auto Ltd 3,363.90 1.58 377,093 Central Japan Railway Co 21,115.00 0.14 252,600 Axis Bank Ltd 605.55 -1.71 7,552,279 T&D Holdings Inc 1,997.50 1.68 2,637,100 Asian Paints Ltd 1,152.05 0.14 1,921,799 Toyota Motor Corp 7,643.00 0.46 5,170,800 Ambuja Cements Ltd 263.65 0.25 1,480,787 Kddi Corp 2,820.50 0.04 7,817,000 Adani Ports And Special Econ 436.65 0.03 2,226,884 Nitto Denko Corp 10,045.00 0.00 912,500 Acc Ltd 1,738.70 0.71 222,404 Gulf Times Tuesday, January 30, 2018 13 BUSINESS Crypto as ‘next Swiss bank account’ sends governments scrambling

Digital currency gets a piece of companies. “There needs to be a regu- ZCash Trust to investors. ZCash could $10tn in hidden assets; new virtual lated structure that won’t kill the industry.” capture as much as 10% of that by 2025, money ZCash uses encryption to The earliest adopters of the practice were said Grayscale’s Matthew Beck. ensure privacy criminals, and their involvement has risen “This is the first time anyone in the world steadily, according to a three-year study can store their cash privately and be Bloomberg by the Foundation for Defense of Democ- their own bank,” Beck said. “Privacy is a New York racies, a non-partisan Washington think dwindling resource and one that people tank. Next came users like Drake, who said are going to be willing to pay for.” he follows US law by reporting his compa- Even though ZCash touts the impenetra- Authorities around the world worry that nies’ holdings. Drake said better oversight bility of its encryption technology, Beck cryptocurrencies could become tax would help legitimise the industry. argues that government oversight is still havens. There’s demand for fresh ways to hide needed. Too late. It’s already happening. assets after US and European regula- “We don’t think this ecosystem can grow Take David Drake, whose New York-based tors clamped down on traditional banks. without regulation,” Beck said. family off ice has more than $10mn in They’ve ramped up enforcement of Bitcoin, the most popular cryptocurrency, cryptocurrency and blockchain invest- “know-your-customer” and anti-money- is anonymous, though it can be traced, ments. He’s using digital money like an laundering rules and forced off shore with the electronic public ledger called off shore bank account – a place to legally financial institutions to disclose client blockchain keeping track of every transac- park overseas business profits and reduce information. The campaign prompted tion. Even though all that’s revealed of US taxes. many mainstream financial firms to limit buyers and sellers are strings of letters British Prime Minister Theresa May and customers’ access to Switzerland’s secre- and numbers, law enforcement has The use of virtual money to store assets off shore is evolving rapidly, with the introduction of so-called Indian Prime Minister Narendra Modi tive banking system. That’s made it harder developed technology to track and seize privacy coins, such as ZCash and Monero, which use methods like encryption to make them untraceable. are among the world leaders who’ve to hide funds from the government, illicit Bitcoins. About $10tn is held off shore worldwide, according to Grayscale Investments, a New York-based fi rm expressed alarm at the rise of virtual courts, spouses or other prying eyes back Existing laws require banks to report sus- that’s off ering a ZCash Trust to investors. ZCash could capture as much as 10% of that by 2025 cash to move money off shore. The US home. picious activity, including withdrawals of Congress held hearings this month, and Cryptocurrency exchanges are covered more than $9,999, while digital-currency mends that governments go after criminal are. But we figured out how to deal with five times as much as North American Treasury Secretary Steven Mnuchin called by the rules, but enforcement hasn’t been exchanges are required to keep customer uses of cryptocurrencies, but at the same them.” The study looked at money laun- services. Asia had a very small share of on the world’s 20 biggest economies to consistent, particularly outside the US. records and take similar measures. Once time respect financial innovation. Most dering through Bitcoin ATMs, exchanges, laundering, even though services in that work together to make sure cryptocur- The use of virtual money to store assets Bitcoin is purchased, there’s software that of all, the study said, regulators shouldn’t gambling sites and mixers - services that region had the most transactions. rencies don’t “become the next Swiss off shore is evolving rapidly, with the intro- can detect patterns and trace the owner, kid themselves about their ability to com- convert one digital currency to another Any regulations would have to walk the bank account.” The concern comes after a duction of so-called privacy coins, such as said Kerry Myers, clinical professor of pletely stomp it out. They can’t. - and found that illicit uses rose steadily fine between protecting national taxation successful international crackdown on tax ZCash and Monero, which use methods forensic accounting and law at the Lynn “Maybe we need to look at the lessons between 2013 and 2016, the time range of interests and allowing cryptocurrencies to havens in traditional banking. like encryption to make them untraceable. Pippenger School of Accountancy at the learned from other payment systems,” its research. continue to innovate and flourish, Drake “Every country is scrambling to come up About $10tn is held off shore worldwide, University of South Florida in Tampa. said Yaya Fanusie, who co-authored the The study also found that conversion said. with an answer,” said Drake, who serves according to Grayscale Investments, a The Foundation for Defense of Democra- study. “When credit cards came out, there services based in Europe took in the “We need to distinguish between legal on the boards of 25 public and private New York-based firm that’s off ering a cies’ money-laundering study recom- was abuse, there were scams, there still biggest share of illicit Bitcoins, more than and illegal activities,” he said.

Bloomberg QuickTake Q&A What’s an ICO? Like an IPO but with digital coins

By Julie Verhage, Camila Russo to cash in (as is true with most IPOs), dubbed a Basic Attention Token, or and Lily Katz so long as they can find a buyer for the BAT, which is a digital currency issued New York coins they’ve bought. by the company. How many ICOs have there What do ICO investors been? receive? An IPO, or initial public off ering, off ers a chance to make big money quickly According to CoinSchedule.com, there They get a virtual credit or token, by getting in on the ground floor of the were 46 in 2016 and 202 last year which can mean diff erent things in next new Google or Facebook. An ICO, through October 23. The pace slowed diff erent ICOs. For instance, the buyers or initial coin off ering, off ers a chance to after the SEC warning in July. There of BATs can wait and use them on the make big money quickly by getting in are many more flavours of digital Brave browser when the system is companies that raise large sums while How serious is the risk? attached to a token and its usage on the next new money. The rise of ICOs coins – CoinMarketCap.com lists 1,189 up and running. That kind of token, in their infancy. But usually the buyers and performance on the blockchain has prompted the US Securities and – but only a small group of startups with a specific use in an application are experienced venture capitalists. There’s certainly plenty of weirdness platform. Companies can also impose Exchange Commission to issue cautions have issued tokens that caught likely to attract users, is known as a The ICO market is far more wide for potential investors to wade a lock-up period during which the to investors and startups. China has investors’ imaginations. About half utility token. Holders of tokens can open, and the success of companies through. The long list of projects tokens can’t be exchanged, or ban gone further, banning ICOs entirely. of the money raised in ICOs has gone hang onto them not to use but in like Brave attracted investors of all off ering new currencies include ones conversion entirely. The SEC was also What’s the goal of an ICO? to the 10 largest ventures. Filecoin, a the hope of capital gains – betting sorts. Gnosis, a prediction market endorsed by Paris Hilton and Floyd said to be monitoring some pending data storage network, raised $257mn, that increased demand will lead to application based on the Ethereum Mayweather. ICOs, including one for a token called It’s a way to raise money for new while Tezos, which has developed its the kind of price rise seen by bitcoin. blockchain, raised $12.5mn in 12 What did the SEC do? ParagonCoin that cannabis firms or ventures trying to follow in the own secure blockchain infrastructure, The proliferation of ICOs untethered minutes on April 24, resulting in a nonprofits could use to pay rent at footsteps of digital currency raised $232mn. from concrete uses, and confusion market value of almost $300mn It said it will treat some ICOs as co-working spaces. pioneers bitcoin and ether. Despite How do these digital over which type of off er is a token despite having generated no revenue IPOs – as security off erings, in other Why did China ban ICOs? controversies arising from fraud, theft currencies work? and which is a security, prompted and having little more than a white words, with all the registration and volatile speculation, they and the SEC to issue its guidance. Only paper describing what it intends to requirements that entails, unless ICOs have been deemed a threat to their imitators have shown that it’s Most are made to be used as a means one in 10 tokens issued is in use with do. Its tokens, which would allow “a valid exemption applies.” The China’s financial market stability as possible to develop communities of of exchange inside an application. an application it was intended for, users to bet on things such as election SEC didn’t lay out exactly what authorities struggle to tame financing users willing to try unconventional Take Brave Software, which is according to Token Report. outcomes, soared 200% over the will trigger that designation. The channels that sprawl beyond the forms of money. An ICO lets startups developing a web browser in which How did Brave’s ICO go? summer. issue, the agency said, is that some traditional banking system. Widely bypass the venture-capital process readers are paid if they choose to What did the SEC say? ICO promoters may be leading seen as a way to sidestep venture by turning to something comparable view ads. Transactions will take It put 1bn BAT up for sale in May. They investors “to expect a return on their capital funds, investment banks to a Kickstarter campaign. Those place on a blockchain, the digital were all sold in less than a minute, In an investor bulletin last year, it investment or to participate in a share and capital controls, they have also putting up the money get access to ledger technology first developed raising $35mn for the company. warned of the potential for fraud, of the returns” from the project – increasingly captured the attention technology companies that are usually for bitcoin and popularised for other Was that as extraordinary as scams and hacking – one site had which would make the ICO a security of central banks that see digital the realm of only institutional or high- uses by Ethereum. Since you can’t it sounds? $7mn stolen during its ICO – and said off ering. To avoid running afoul of the currencies as a threat to their reign. income investors. Plus, there may not stuff quarters into a blockchain, Brave recovering any stolen funds can be law, ICO issuers can try to establish Following China’s example, South be a need for an investor to wait years created a unit of exchange that it Yes and no. Silicon Valley is full of diff icult. a clear link between the rights Korea has also banned ICOs. Gulf Times 14 Tuesday, January 30, 2018 BUSINESS US set to give signal as Nafta bartering suggests progress

Bloomberg Now it’s up to Robert Lighthizer, through March, and they now look to make this marriage work.” and Mexicans have suggested a premature to say anybody is buying Montreal the president’s trade chief, to signal run possibly into 2019. At this round, negotiators agreed to periodic review, without termination, into anything at this point,” said Perrin whether the US truly likes what it has Lighthizer, Canadian Foreign Minister conclude their third of roughly 30 instead. Finally, Canada prodded the US Beatty, head of the Canadian Chamber seen, as Trump’s threats to kill the pact Chrystia Freeland and Mexican chapters, one on anti-corruption. on investor dispute panels contained in of Commerce. Lighthizer and his All eyes are on the US as the latest continue to loom large. With risks of an Economy Minister Ildefonso Guajardo Off icials have said talks are progressing. Nafta’s Chapter 11, which the US wants counterparts “really set the tone and round of Nafta talks wrap up amid immediate collapse appearing to have were set to meet privately on Monday Some of the hallmarks of this round to opt out of, and suggested Canada they convey a sense as to whether or promising signs of flexibility among diminished, the next round of talks is in Montreal before giving a join included Canada introducing “ideas” and Mexico would have their own not the chemistry is good, and whether the trading partners on the thorniest scheduled for February in Mexico City. trilateral statement, their first since — off icials refused to call them formal system without the US. or not there are good prospects for issues. Lighthizer “recognises there’s a great October when they traded barbs. What counter-proposals — and discussions “With every passing round of the reaching an agreement.” The sixth round of negotiations ends deal of work to be done, but he’s Lighthizer says is the test. The US lead around three controversial US negotiations, more and more of the The ministers’ meeting on Monday yesterday after a week marked by hopeful,” Dave Reichert, the Republican negotiator, John Melle, has refrained proposals. contentious issues are closer to being “is fundamental,” said Francisco de cautious optimism, with negotiators chairman of the House Subcommittee this week from commenting on the On autos, the Canadians have solved,” Andrew Leslie, a Canadian Rosenzweig, a lawyer at White & Case concluding their first chapter since on Trade, told reporters on Sunday. talks, making it diff icult to discern the suggested rewriting how the value of lawmaker who serves as an envoy who previously served as Mexico’s top October and broad discussion about “There’s just an air of optimism. They’re US view. a car is calculated to demonstrate a for Canada-US relations, said during international trade negotiator and is the biggest sticking points. President already talking about additional “I’m more optimistic than I was six higher share of local content. The US negotiations. part of the private-sector delegation in Donald Trump himself has toned down rounds.” months ago,” said Bill Pascrell, a has called for increasing the regional Heading into talks, there was fear of Montreal. his rhetoric over the North American Raymond Bachand, the lead negotiator Democratic member of the House content in autos and adding a US- a stalemate. Despite positive signs “That meeting is where we’re going Free Trade Agreement, and he isn’t for the Canadian province of Quebec, Ways and Means Committee and one specific one. emerging, off icials downplayed to have a better idea about the way expected to use his State of the Union said he expects a US round in about of about 10 lawmakers who flew to The US has also proposed a sunset expectations for other chapters forward in this process of renegotiation, speech on Tuesday to give a notice April and another in Canada in May. Montreal for meetings on the sidelines clause that would cancel Nafta after to be concluded, and talks on the if it’s going to be able to deliver in the of withdrawal as some had privately Trump once wanted a deal done by of negotiations. The talk of tearing five years unless the parties agree to most divisive issues remain largely coming months or if it’s going to be feared. December before talks were stretched Nafta down has changed, he said. “Let’s extend the deal, while the Canadians theoretical. “I think it would be kicked until the end of the year at least.”

Europe to Trump: If you want Europe closes in on fresh trade a trade war, you’ll get one deal as Trump puts up barriers Bloomberg Brussels

Bloomberg Brussels The European Union gave President Donald Trump a fresh warning about any US curbs on urope is approaching the next imports from Europe by pledging stop in its global market-opening swift retaliation, highlighting the Edrive aimed at countering US persistent risk of a trans-Atlantic President Donald Trump’s protection- trade war. ist tilt. The EU fired the shot across the Top offi cials from the European Un- US bow after Trump said in an ion will meet with the Mercosur group interview with ITV broadcast of Argentina, Brazil, Paraguay and over the weekend that he has Uruguay today in Brussels to gauge “a lot of problems with the the prospects for a free-trade deal that European Union.” This “may would follow groundbreaking com- morph into something very big” mercial pacts with Japan and Canada. from “a trade standpoint,” he The EU-Mercosur talks began al- said. most two decades ago, faltered and The alert by the European were re-started in 2010. Trump’s move Commission also follows Trump’s into the White House a year ago with decision last week to invoke his “America First” agenda prompted rarely used “safeguard” rules an EU push to wrap up the negotia- to impose tariff s on US imports tions, which advanced before getting of solar panels and washing hung up last month over the politically machines. It also comes amid a sensitive issues of agriculture and cars. continuing threat by Washington “Our aim is to conclude a very ambi- to curb American purchases of tious trade agreement between us and foreign steel and aluminium on Mercosur in the coming weeks,” EU national-security grounds. Trade Commissioner Cecilia Malm- “The European Union stands strom said in an interview in Brussels ready to react swiftly and last week. “We aim to fi nalise this very appropriately in case our exports soon because the clock is ticking.” are aff ected by any restrictive EU policymakers are seeking to keep trade measures from the markets open worldwide in the face of US,” Margaritis Schinas, chief Trump’s anti-globalisation stance and spokesman of the commission, to underscore the bloc’s continuing the 28-nation EU’s executive commercial clout as the UK prepares arm, told reporters in Brussels to leave. In addition to building on ex- yesterday. He declined to isting European free-trade pacts with elaborate, saying his “point is partners that also include Singapore, better understood if I don’t.” Vietnam and South Korea, a deal with The EU is seeking to keep markets Mercosur would give the EU political open worldwide in the face of momentum as it gears up for talks with Trump’s anti-globalisation stance Australia and New Zealand. and to underscore the bloc’s The US threat to the global order in Cecilia Malmstrom, EU trade commissioner, gestures as she speaks during a panel session at the 61st Global Summit of the Consumer Goods Forum (CGF) in Berlin on continuing commercial clout as place since the end of World War II was Thursday. “Our aim is to conclude a very ambitious trade agreement between us and Mercosur in the coming weeks,” Malmstrom said in an interview in Brussels last week. the UK prepares to leave in March highlighted last week when Trump in- 2019. The EU recently struck voked rarely used “safeguard” rules to cluding for beef, is inadequate. Malm- rope must do more to ensure a “fair and three-quarters of EU beef imports and of Copa-Cogeca, the main European free-trade pacts with Canada and impose tariff s on US imports of solar strom’s team in December proposed reasonable” accord, he said. focuses on pricier cuts. farm-lobby group, told reporters on Japan, is pushing to wrap up a panels and washing machines. to let Mercosur export to the bloc at The EU counters that its farm off er “The moment is quite diffi cult for January 24 that a Mercosur-EU accord deal with Latin America and is With EU-Mercosur trade worth reduced duties an extra 70,000 met- is generous and Mercosur must agree Europe in terms of beef,” Sandra Gall- could cost farmers in Europebns of eu- gearing up for talks with Australia almost €85bn ($105bn) in 2016, a ric tonnes of beef, 600,000 tonnes of to open its markets more to European ina, the chief EU negotiator with Mer- ros and that “we would reject any con- and New Zealand. market-opening agreement would be ethanol and 100,000 tonnes of sugar cheeses, cars and car parts. cosur, told European lawmakers last cessions at this stage.” Last Thursday, European among Europe’s biggest. The meeting annually. European agricultural producers’ Tuesday. “Our partners are very well Malmstrom played down the dead- Trade Commissioner Cecilia today will be at ministerial level, giving “If we don’t get a signifi cant agri- interests, traditionally a touchy issue aware that there is a Brexit going on and lock over agriculture, saying farmers’ Malmstrom said the Trump both sides a chance to make political cultural off er, we cannot achieve this in Brussels, may be even more so now that beef from Ireland may be impact- interests have long kept international administration has left the world concessions that would embolden the agreement,” Rigoberto Gauto Vielman, because Ireland is concerned about the ed, so I want to say this is perhaps not trade negotiators at the table longer. perplexed by withdrawing from negotiators. Paraguay’s ambassador to the EU, told potential impact of the UK’s planned the best of moments to go after such a “They are always the last to remain,” global aff airs and has given the Mercosur says an EU off er to open the European Parliament’s trade com- exit from the EU on Irish beef exports. deal.” she said. “They are diffi cult, but I hope EU more scope to act. further its agricultural markets, in- mittee on January 23 in Brussels. Eu- Mercosur already accounts for around Pekka Pesonen, secretary general they are surmountable.”

Davos elite eyes M&A across Europe’s struggling banking industry

Bloomberg larger fi rms still make banking mergers last year about buying its 15% stake to shore up profi tability and held talks ing the opportunity to reduce some advantage in the longer term, according London improbable. Bringing together two in- in the rescued bank. Acquiring Com- with Commerzbank in 2016, a person costs across the consumer businesses. to banking executives. With the gov- vestment banking cultures has proved merzbank, Germany’s second-biggest familiar with the matter said at the Mustier has said all options for ernment still owning part of ABN Amro diffi cult in the past and prices make lender, would give BNP access to its time. Merging the retail businesses in growth are open after 2019 and may in- after a bailout, the best option may be he rationale for merging some of some targets unattractive. Mittelstand client base, the engine of Germany would lower costs and the clude acquisitions. Led by Portuguese for a sale to a competitor. Europe’s biggest lenders is com- Bloomberg News spoke to 10 bank- Europe’s largest economy. Billionaire bank would emerge as an insurmount- CEO Antonio Horta-Osorio, Lloyds In 2016, the Dutch government held Tpelling. ing leaders who shared their views pri- Stephen Feinberg’s Cerberus Capi- able competitor in fi nancing small- and Banking Group Plc could look outside preliminary talks with the manage- That’s the view of many fi nancial vately on the deals that make strategic tal Management in recent months has medium-sized businesses. its home UK market for growth as Brex- ment of Nordea Bank AB, a deal that executives who met at the World Eco- sense. Most say that Commerzbank AG built a holding of 5% in Commerzbank, The main snag for a deal with Com- it threatens the local economy. would have allowed the Nordic region’s nomic Forum in Davos, Switzerland, should be taken over, and BNP Paribas becoming one of the company’s top merzbank? Though it still trades at After spending six years restructur- biggest bank to move its headquarters last week. A decade after the fi nan- is seen by many as a likely acquirer of three shareholders along with the Ger- two-thirds of book value, it’s seen to be ing and shrinking Lloyds to help repay from Stockholm to the Netherlands and cial crisis, some of the region’s biggest the German lender. man government, a signal that a deal as much as 40% overvalued. the bailout during the fi nancial crisis, lighten the regulatory burden. The dis- lenders are facing declining revenue as France’s biggest bank has bucked may be inevitable. Under CEO Jean Pierre Mustier, Horta-Osorio is back on the off ensive. cussions failed and Sweden’s Nordea is interest rates linger near record lows, the trend among European lenders, Cerberus, the private-equity fi rm UniCredit has strengthened its balance He bought Bank of America’s $9.9bn instead moving headquarters to Finland. while legal bills and capital demands emerging from the past decade with- known for investments in distressed sheet by selling bad debt and tapping UK credit-card business MBNA last Bankers say a deal with ABN Amro have eroded profi t. out an annual loss. As rivals retreated debt, is also betting on Deutsche Bank, investors for funds. Mustier has also year and is preparing to unveil a new still has logic, but they also see the bank Combinations of consumer-banking in investment banking, burdened by Germany’s biggest bank, with a stake of streamlined the lender, cutting jobs, strategy for growth in February. becoming prey to BNP Paribas, Deut- operations could help pare costs and stricter capital rules, rising compliance about 3%. Weighed down by legal bills after expansion by previous manage- With opportunities limited in the sche Bank or UniCredit. fend off competition from ntechfi star- costs and competition from stronger for past misconduct that have topped ment across central and eastern Europe ultra-competitive UK retail, mortgage One long-favoured option would tups. And fi rms that are too exposed US fi rms, BNP has grown market share. all European lenders, Deutsche Bank added scale but also complexity. and credit-card markets — and Brit- be having the Italian lender join forces to volatile businesses, such as trading BNP chief executive offi cer Jean- has struggled to adapt to the wide- Executives of the Italian bank last ish regulators keen to break down the with Deutsche Bank, a person said. The that consumes more capital, could bol- Laurent Bonnafe has pledged to grow spread drop in trading revenue, which year held discussions with German offi - dominance of the fi ve largest lenders — fi rms would be stronger on the home ster returns by diversifying and adding profi t by more than 6.5% annually has coincided with requests for higher cials about a potential combination with a continental expansion could be in the turf of Germany, and Deutsche Bank’s steadier and higher-margin activities. through 2020 and expand revenue in capital for risk-taking businesses. At Commerzbank once the lenders’ re- cards, bankers at Davos said. investment-bank footprint could be Some banking leaders say that Euro- the global-markets division by about home the fi erce competition in con- structurings are complete, a person with The perennially-rumoured target reinforced in Europe.Combining with pean regulators are warming to the idea 5% a year in the same period. sumer banking, even as rates remain at knowledge of the talks said at the time. Commerzbank could be an option, or a Societe Generale, France’s second-big- of mergers, fueling speculation that Banking executives say Bonnafe may record lows, has squeezed margins. Commerzbank would give UniCredit smaller lender that would give Lloyds a gest bank, which retains a global trad- deals are drawing closer, even if they consider deals to expand more sig- Deutsche Bank CEO John Cryan has greater access to SMEs, a business in foothold on the continent and room for ing business, could also be attractive for are not a sure bet for 2018. Others say nifi cantly. BNP is said to have been in urged that there be more consolida- which the Italian lender is already seek- growth outside its crowded domestic UniCredit. The deal would combine two regulators’ greater capital demands of touch with the German government tion among European banks struggling ing to gain market share, while provid- market. Being mid-scale may not be an large domestic players. Gulf Times Tuesday, January 30, 2018 15 BUSINESS Google in race to deflect more fines as shopping foes cry foul

Bloomberg opportunity to show shopping ads from buying ad slots, and Foundem, which Google, which is appealing last year’s search results with links to retailers. said, and is required to keep handing Brussels retailers that its own Google Shopping filed the first complaint about Google’s fines, declined to comment. It said in The vast majority of these are labelled in such filings every four months for service gets. shopping business, have both called September that it is running the Google “By Google” showing that Google is five years. Off icials get expert advice Failing to comply with an EU antitrust for fines. Penalties aren’t automatic. Shopping unit as a separate business so being paid by retailers for the ad. It is to assess Google’s actions. KPMG Google was facing a deadline yesterday order can cost as much as 5% of The EU could negotiate changes with it must compete on equal terms when it unclear why rivals aren’t providing the provides economics and accounting to defend changes to its shopping global daily revenue. Long-time Alphabet’s Google or require it to do bids for shopping ads it sells to retailers same ads in the auction system that help and Mavens helps the EU on service that left old foes clamouring for opponent Foundem reckons Google more. It would need to open a new to show their products. Google set up to allay EU concerns. search engine optimisation and a new wave of European Union antitrust is “actively inviting” fines of about investigation and set formal objections What precisely Google has to do is “That is in my view the million dollar marketing. fines. $12mn a day. In a similar fight more before it could decide on further not clear. The European Commission, question, whether competitors have a “We have already requested Still smarting from last year’s record than a decade ago, Microsoft Corp punishment. the EU’s antitrust arm, says Google fair chance to be there,” said Kokkoris. information on the operation of €2.4bn ($3bn) penalty, Google must was fined €280.5mn for disobeying “I think the commissioner will decide has to give equal treatment to rival “We need to see whether the outcome Google’s measures from Google and submit the first report to the EU on EU demands. after seeing all the evidence” on how comparison shopping services and we are seeing is because competitors other market participants,” the EU’s how it has met a strict demand from “It risks being a second Microsoft,” said the shopping ad off er rarely shows rival its own service, “not more, not less.” are not winning or not bidding at all press off ice said. “Of course, as part regulators to give smaller competitors Ioannis Kokkoris, a law and economics results “that they need to fine Google How that happens is “up to Google to or whether there is something else of our monitoring we also listen to a fairer deal. professor at Queen Mary University in again,” said Richard Stables, chief achieve and implement.” happening” to prevent their ads coming what those most directly aff ected Rivals say the search giant’s off er to London. It’s looking like a case “of that executive off icer of Kelkoo, referring to The EU will have to examine why up. by the practices in question have to auction advertising space doesn’t work scale with remedies and a decision of Margrethe Vestager, the EU’s antitrust Google’s shopping ads aren’t showing In the meantime, regulators have say. Commissioner Vestager and her because Google wins most of the spots. non-compliance and a fine for that non- chief. “You need to put a remedy in that more than a handful of rival ads. already started their work checking up team are meeting with a variety of The US company has so far insisted compliance,” eff ectively fixes the abuse and they When users search for a product, on Google. The company must submit stakeholders and take their views it’s giving competitors the same Kelkoo Group, one of the companies have not done that.” picture ads pop up above or beside its first report by January 29, the EU seriously.” German car Sanofi beats Novo to makers take buy Ablynx for $4.8bn another hit in biotech M&A boom with human Ablynx board backs deal after diesel testing rejecting Novo Nordisk; €45/share deal secures Sanofi promising blood drug; Sanofi’s second big biotech Bloomberg port Sector, or EUGT, which buy in week after Bioverativ; Novo Munich closed last year. Co-founding Nordisk says not planning to make member Robert Bosch GmbH counter-off er left the group in 2013. erman car makers con- The university defended its Reuters demned experiments experiments yesterday, saying Paris/London Gthat exposed humans the study was approved by an to diesel fumes, promising to independent ethics board. It investigate the tests whose dis- focused on health eff ects in the rench drug maker Sanofi has agreed closure threatens to open a new workplace, such as for welders to buy Belgian biotech company phase in an emissions contro- and mechanics. FAblynx for €3.9bn ($4.8bn), beat- versy that’s dogged the indus- Politicians swiftly con- ing Novo Nordisk and marking its second try since 2015. demned the tests. The prime big deal this month after buying Biovera- The study was supported by minister of Lower Saxo- tiv. a little-known group found- ny, who’s also a member of The deal is a further sign of accelerating ed by Volkswagen, Daimler Volkswagen’s supervisory merger and acquisition (M&A) activity in and BMW, and carried out by board, has asked for an inves- the global biotech sector and comes after Aachen University in Germany. tigation and for management to Ablynx rejected a €2.6bn off er from Den- Reports of the tests, following explain the trials. mark’s Novo Nordisk. a New York Times account of “The words ‘absurd and ab- Sanofi said on Monday it would pay €45 similar experiments on mon- horrent’ of course apply more per share in cash for Ablynx, a premium of keys in the US, triggered po- than ever if the same is applied 21% over its closing price on Friday — and litical recriminations and had to humans,” Lower Saxony Prime more than double the price before Novo automakers scrambling to dis- Minister Stephan Weil told re- went public with its initial bid. tance themselves. porters. “It must now be estab- Novo Nordisk conceded defeat, saying “I’ll do everything so that lished whether that is the case, it did not intend to make a revised off er for these events will be fully inves- under whose orders and when.” Ablynx, which is developing a prized ex- tigated,” Volkswagen chairman Diesel remains a key profi t perimental drug for a rare blood disorder. Hans Dieter Poetsch said in an driver for German automakers, This month has seen a spike in multi- e-mailed statement. He said even though demand has slipped billion-dollar deals in biotech, with US- the practices were “incompre- in Europe, its main market, since based Celgene paying $9bn for cancer hensible” in every way. Volkswagen’s 2015 diesel emis- specialist Juno Therapeutics, and sev- The bombshell revelations sions-cheating scandal. eral experts predicting a bumper year for mark a fresh blow to German In an additional twist, the M&A. car makers’ once-stellar repu- VW Beetle model used in the Such deals are being driven by the An employee enters the Sanofi headquarters in Paris. The deal with Sanofi is a further sign of accelerating M&A activity in the global tation for engineering prowess test with animals was among need of large drug makers to tap the biotech sector and comes after Ablynx rejected a €2.6bn off er from Denmark’s Novo Nordisk. and no-nonsense effi ciency. the vehicles rigged to cheat on promising new medicines being devel- The actions further undermine emissions tests, the New York oped by smaller rivals to help revive fl ag- rently looking to divest consumer health Brandicourt said caplacizumab would to focus on its core diabetes business but diesel’s image, steepening an Times reported. ging growth. businesses. complement Sanofi ’s line-up of blood it now needs to fi nd new products for its increasingly uphill battle to Over the weekend, Volkswa- Last week, Sanofi agreed to buy US hae- Sanofi said Ablynx would boost long- products, following the acquisition of struggling smaller biopharmaceutical rescue the technology amid gen apologised for the miscon- mophilia specialist Bioverativ for $11.6bn, term value for its shareholders, while the Bioverativ and an earlier deal to obtain unit, where Ablynx would have been a worsening political headwinds. duct and lack of judgment of its biggest deal for seven years and a major takeover was expected to have a neutral global rights for fi tusiran from Alnylam. good fi t. “This is another hit for diesel some individuals, calling the play to strengthen its presence in treat- impact on Sanofi ’s business earnings per Sanofi will be able to use its existing That remains a challenge for CEO Lars and shows how car makers over- trials a mistake. ments for rare diseases. share (EPS) in 2018 and 2019. infrastructure and the recently acquired Fruergaard Jorgensen, who took over a stepped the mark morally and BMW, while distancing itself Sanofi chief executive offi cer Olivier The Belgian group specialises in the re- platform from Bioverativ to help to com- year ago, and has previously stated that ethically in their fi ght to make from the studies, said the as- Brandicourt said the deals expanded the search of novel drugs based on so-called mercialise caplacizumab. Novo Nordisk needs external innovation diesel socially acceptable,” said sessment of the trial at Aachen French company’s late-stage pipeline and nanobodies found in the immune systems It will also benefi t from some of the to broaden its product line-up. Stefan Bratzel, director of the University before an independ- strengthened its line-up of treatments for of llamas and alpacas, for which it part- other drugs Ablynx is working on, such as Shares in Sanofi were little changed, Center of Automotive Manage- ent body with appropriate ex- rare blood disorders — but did not neces- ners with several of the world’s largest an infant anti-viral treatment, that would with pricing considerations off set by re- ment in Bergisch Gladbach, Ger- pertise — such as the ethics sarily mark the end of its M&A ambitions. pharmaceutical companies. not have fi tted within Novo Nordisk. lief that Sanofi was fi nally taking action to many. “This news means more commission — should be taken “We have a strong balance sheet. We Sanofi is already one of Ablynx’s big Berenberg analysts said Ablynx was improve its drugs portfolio, following its pressure for politicians to act into account. generate signifi cant cash fl ow. We are go- pharma partners, after striking a deal in a good fi t but they estimated the deal past failure to land big deals. on diesel.” Daimler also promised to in- ing to look at opportunities on a case-by- July 2017 to fi nd new treatments for in- would generate no more than a 4% re- Sanofi lost out on buying California- The human trial had 25 peo- vestigate, while saying it didn’t case basis,” he told reporters. fl ammatory diseases. turn on invested capital, assuming ca- based cancer specialist Medivation to Pfi z- ple breathe in diesel exhaust at have any infl uence over the “We also identifi ed CHC (consumer By buying the company outright it will placizumab sales of around 400mn euros er in 2016, and also missed acquiring Swiss a clinic used by the University study. “We are appalled by the healthcare) previously as an area where now get access to Ablynx’s most promis- by 2023. biotech company Actelion, which was of Aachen, Stuttgarter Zeitung extent of the studies and their we want to sustain a leadership position ing asset, the experimental drug capla- The rare blood drug was also the main bought by Johnson & Johnson last year. reported yesterday, citing an- implementation,” Daimler said and therefore you can expect us to evalu- cizumab for treating the rare bleeding attraction for Novo Nordisk. Morgan Stanley and Lazard advised Sa- nual reports from the European in an e-mailed statement. “We ate opportunities.” disorder acquired thrombotic thrombo- The Danish group has sat out previ- nofi on the deal while JP Morgan advised Research Group on Environ- condemn the experiments in Both Pfi zer and Merck KGaA are cur- cytopenic purpura. ous rounds of M&A in the drugs sector Ablynx. ment and Health in the Trans- the strongest terms.”

WestRock to acquire rival for $3.4bn

Bloomberg pansion is supporting consumer activity, a Steve Voorhees, chief executive offi cer at New York growing e-commerce sector is boosting the WestRock, said in the statement. “Their use of boxed goods, and containerboard mills complementary corrugated packaging are operating at elevated rates, according to and distribution operations will enhance estRock Co, one of the largest Bloomberg Intelligence analysts Joshua L Za- WestRock’s ability to serve customers US producers of containerboard, ret and Evan Lee. Shares of containerboard across our system, particularly in the west- Wagreed to acquire Kapstone Paper makers jumped on Friday after KeyBanc said ern US.” & Packaging Corp for about $3.4bn in what that International Paper Co reportedly an- The takeover has an enterprise value of would be the industry’s largest deal in more nounced a $50-per-ton price hike eff ective about $4.9bn. WestRock said it will issue than two years. March 1. new debt to fi nance the deal. Lazard Ltd was KapStone investors will get $35 a share Atlanta-based WestRock said the transac- its fi nancial adviser and provided its board in cash, or they can elect to take 0.4981 of a tion will save about $200mn in costs by the of directors with a fairness opinion. Wells WestRock share, with the stock considera- end of its 2021 fi nancial year, widen its range Fargo & Co was also a fi nancial adviser and tion of the deal capped at 25% of KapStone’s of products and increase the amount of vir- is providing the committed fi nancing for the outstanding shares, the companies said on gin wood fi bre used in the company’s off er- transaction. Monday in a statement. That’s 32% higher ings. It’s the industry’s largest transaction Cravath, Swaine & Moore LLP was than Northbrook, Illinois-based KapStone’s since WestRock was created by Rock-Tenn WestRock’s legal adviser. Rothschild & Co price at the close of trading last week. Co’s acquisition of MeadWestvaco Corp in and Moelis & Co were fi nancial advisers to Atlanta-based WestRock said the Kapstone transaction will save about $200mn in costs by the end of its The deal comes at a bullish time for the 2015. KapStone, and Sidley Austin was its legal 2021 financial year, widen its range of products and increase the amount of virgin wood fibre used in the corrugated packaging market. Economic ex- “KapStone is a great fi t with WestRock,” adviser. company’s off erings. Tuesday, January 30, 2018 GULF TIMES BUSINESS

BANKING ON KNOWLEDGE Can India’s upcoming budget maintain its fiscal prudence?

By Dr R Seetharaman expects FY ’19 growth to be 7-7.5% vs fuel sources by 2030. Natural gas is 6.75% for FY ’18. Agriculture, education, a good fit for decarbonising India’s and employment will be areas of focus energy system. The government also India’s Finance Minister Arun Jaitley in the medium term, private investment wants to make India a gas-based has a delicate task of balancing growth is poised for growth and source of economy and raise the share of without compromising significantly upside potential is exports sector. natural gas in the energy mix to 15% on the fiscal prudence for its financial India’s upcoming budget assumes The current budget focus will be power exchanges and medical devices from 6% in 2016. budget, which is due to be announced importance as this will be the last on increasing expenditure towards will attract long-term capital in the India’s import bill is inflated on account on February 1. full year budget of the government infrastructure, defence, power, roads, country. of increase in oil prices from $26 per India’s GDP growth rose 6.3% in the before next year’s Lok Sabha election. smart city development, job creation, The government is discussing to barrel to $66 per barrel, which may not July-September period, compared with As the oil prices have increased from increasing farmer’s income and increase FDI of up to 49% in PSU banks be sustainable for its high economic the three-year low of 5.7% growth in the lower levels of $26 per barrel to $66 digitisation initiatives. and 100% in private banks. This is a growth going ahead, so to sustain April-June quarter and 7.5% in the year per barrel, India’s 10-year bond yields The government will look to incentivise logical step towards opening up the growth India has to change its energy earlier. have hardened to 7.3% as India’s oil the savings of common man. The banking sector as it needs capital for mix, for which natural gas is a better The downside risks to growth faded bill is 30% of total imports. Jaitley IMF and international agencies expansion. choice. post the demonetisation and GST, as has a complex task of managing any have highlighted an urge towards India needs to change its energy Realignment of energy mix to natural the transformational steps announced significant fiscal slippage. He has strengthening the PSU banks. The mix to insulate it from the rise in gas will de-risk India’s high reliance on by the government are long term indicated fiscal deficit of 3.2%, and any government has already taken steps oil prices. The country is moving oil and insulate the country’s import bill positive and have been acknowledged significant slippage may further harden by announcing mega recap of $32bn to promote gas usage in line with from upward movement in oil prices. by the International Rating agencies via its World Economic Outlook Update, it the bond yields and increase the cost for PSU banks. There has been an the commitment made at the Paris Qatar and India can jointly explore sovereign rating upgrade by Moody’s. also estimated that the Indian economy of borrowing for the government, allocation of approximately $12.5Bn as meeting on climate change, which more synergies in this area, which will The country has inched up by 30 would grow by 7.8% in 2019, which will although a fiscal deviation of 20bps first tranche of non-SLR bonds with a aims to reduce India’s carbon enhance bilateral trade relationships. points to the 100th place for ease of make the country the world’s fastest- looks to be accepted by the market and maturity of 10-15 years. emission intensity by up to 35% from doing business. IMF expects India’s growing economy in 2018 and 2019. is reflected in the Indian 10-year bond The ease in FDI norms for various 2005 levels by 2030 and producing „ Dr R Seetharaman is Group CEO of GDP growth to be at 7.4% in 2018, in The recent Indian Economic Survey yields. sectors like aviation, construction, 40% of the power from non-fossil Doha Bank.

Qatar’s industrial QFC division exploring producers’ earnings display robust areas of co-operation performance y-o-y in December 2017 with ILO training centre atar’s industrial pro- in the PPI basket, witnessed ducers’ earnings dis- 20.5% increase year-on-year in he Employment Stand- Qplayed robust perform- December last year because of ards Offi ce (ESO) of the ance year-on-year in December 26.9% surge in the price of re- TQatar Financial Center 2017, mainly on higher prices fi ned petroleum goods, 20.7% (QFC) is exploring potential for hydrocarbons, refi ned petro- in basic metals, 10.3% in basic areas of co-operation with the leum products, basic metals and chemicals, 5.3% in other chemi- International Training Centre chemicals and other chemical cal products and fi bres, 4.4% in of the International Labour Or- products and fi bres, offi cial data dairy products, 2.1% in rubber ganisation (ITCILO) in Turin, suggest. and plastics products, 1.6% in Italy. Qatar’s producer price in- grain mill and other products Luigia Ingianni, Commis- dex (PPI) — a measure of the and 0.7% in juices; whereas sioner of the ESO at the QFC average selling prices received those of cement and other non- Authority, said “co-operation by the domestic producers metallic products declined 5.7%, with ILO is paramount to the for their output — grew 2.5% beverages (2.3%) and paper and ESO and to the QFC, as we con- month-on-month during the paper products (1.7%). tinue to ensure we adhere to in- review period, according to the The manufacturing sector ternational best practices.” figures released by the Ministry PPI had seen a marginal 0.2% The ESO is responsible for the of Development Planning and gain month-on-month in De- administration and enforcement Statistics (MPDS). cember 2017 as price of juices of the QFC employment regula- MDPS had released a new shot up 11%, paper and pa- tions. It also embodies a unique PPI series in late 2015. With a per products (3.5%), cement administrative employment dis- base of 2013, it draws on an up- and other non-metallic prod- pute resolution centre operating dated sampling frame and new ucts (1.8%), refi ned petroleum under ILO standards. Its mis- weights. The previous sampling products (1.5%), dairy products sion is to foster fair, stable and frame dates from 2006, when (0.6%) and grain mill and other constructive relationships in the the Qatari economy was much products (0.4%). Nevertheless, workplace, prevent confl icts and smaller than today and the range there was 4.2% fall in the price resolve disputes through con- of products made domestically of rubber and plastics products, ciliators trained and certifi ed by much narrower. 3.3% in basic chemicals, 1.2% in ILO. The PPI for mining, which basic metals and 0.3% in bever- In line with the ILO, the ESO carries the maximum weight of ages. is also in the process of imple- 72.7%, saw 15.4% surge year- The utilities group, which has menting an up-to-date and on-year in December 2017 due a mere 0.5% weightage in the PPI comprehensive labour market Ingianni with QFC Authority chief executive Yousuf Mohamed al-Jaida. to a 15.4% increase in the price basket, saw its index grow 10.8% information system (LMIS) to of crude petroleum and natural in December 2017 on a yearly collect, store, and analyse la- related to employment, the ESO resolution centre in the Middle appointed to provide guidance the right to trade in any cur- gas and 3.1% in stone, sand and basis as electricity and water bour market data and evaluate is responsible for the data pro- East and North Africa region on the registration process, ob- rency, 100% foreign ownership, clay. prices soared 13.2% and 7.5% re- labour market trends with the tection regulations and rules operating under ILO standards. taining a license and setting up 100% repatriation of profi ts, The mining PPI had seen 3.7% spectively. purpose to develop and de- currently under review to align The QFC endeavours to pro- operations. 10% corporate tax on locally expansion on a monthly basis as The index had risen 6.9% sign new policies to boost the them with the EU GDPR enter- mote Qatar as a lucrative des- The QFC fi rms enjoy com- sourced profi ts, and an exten- crude petroleum and natural gas month-on-month in December growth of the QFC business ing into force at the end of May tination. Once a company sub- petitive benefi ts, such as operat- sive double tax treaty agreement prices rose 3.7%. last year as there was 10.8% and community. 2018. The ESO is the fi rst admin- mits its application, a dedicated ing within a legal environment network with more than 60 The manufacturing sector, 1.7% jump in the price of elec- In addition to the functions istrative employment dispute QFC relationship manager is based on English common law, countries. which has a weight of 26.8% tricity and water respectively. Low penetration presents growth opportunities for some Mena Financial technology is changing (re)insurers, says A M Best Qatar’s banking landscape: OBG atar is quick to embrace the among commercial and investment near fi eld communication terminals at By Santhosh V Perumal population dominate the life insurance market in the Gulf fi nancial technology (fi ntech) banks, but also central bankers, cus- many of the country’s retail outlets. Business Reporter region. Qrevolution, having long rec- tomers and fi ntech companies them- Ahilbank launched Qatar’s fi rst con- However, the agency highlighted that premium growth ognised that digital technologies can selves,” Oxford Business Group said. tactless credit card in March 2016. in the GCC remains robust compared to most mature raise both competitiveness and secu- Digitisation, it said, off ers a range of New digital services for those look- Low penetration presents attractive growth opportunities markets, reflecting in part the GCC’s faster economic rity, Oxford Business Group said in a advantages for the consumer, such as ing to bank outside Qatar are being de- for some (re)insurers in the Middle East and North growth and the introduction of compulsory insurance. report. faster transaction times, greater con- veloped, Oxford Business Group said. Africa (Mena) amid challenging operating environment, Observing that low hydrocarbon prices in 2017 negatively The push to digitise has been given venience and better access to services. Commercial Bank, for example, of- according to A M Best, an international insurance rating impacted economies dependent on oil and gas revenues, an added boost by the blockade, as it For banks, off ering online serv- fers an online remittance service that agency. including several GCC members; it said as a result, many has driven all sectors of the economy to ices and digital transactions increases enables expatriate workers in Qatar to Moreover, revenue generated from value added tax (VAT), of these economies are currently operating below fiscal invest in safer and more advanced fi n- speed and effi ciency, while also lower- send money to accounts back home – along with an expected strengthening of oil prices this breakeven levels, and governments have been under tech systems, Oxford said in its latest ing operational costs. Such measures often in India, Sri Lanka and the Phil- year, will help fund infrastructure spending in the Gulf pressure to diversify revenue streams. ‘The Report – Qatar 2017’. reduce the need for physical branches ippines – within 60 seconds. Indeed, Cooperation Council (GCC) and boost productivity, the “In 2018, this saw GCC members begin to introduce VAT, Banks have been supportive of na- and allow many procedures to be sim- digitisation off ers the prospect of wider agency said in a report. with insurance products other than life insurance likely to tional fi ntech initiatives – such as the plifi ed, if not eliminated altogether. fi nancial inclusion. This is particularly “Despite the inherent challenges of operating in the be subject to a standard rate,” according to the report. Smart Qatar Programme, or TASMU Many of these changes could be im- relevant in a country with a large, low- Mena region, there are opportunities for growth owing to Although the tax is not being introduced across all GCC – and have also invested heavily in the plemented rapidly in Qatar because income expatriate workforce, who have the low penetration rates compared to other emerging members at the same time, A M Best believes that it digital transformations of their own there is already a high level of Internet often been neglected by the traditional economies and mature markets, in addition to the could cause short-term cash-flow issues for insurers as processes, from back-offi ce services to penetration in the country, with 2.2mn banks. continued introduction of compulsory covers such as they adjust to the new requirements. This is especially customer interface. Up-and-coming Internet accounts registered (as of June The micro, small and medium-sized medical healthcare,” A M Best said. true given that many (re)insurers in the region appear fi ntech companies have seen substan- 2017) out of a total population of 2.5mn. enterprises (MSMEs) sector has also A number of Mena countries (including Kuwait, Oman, unprepared for its implementation. tial growth over this period. Moreover, a recent report from been underserved in the past, pav- Saudi Arabia, Egypt, and Algeria) had total insurance Although globally, the protection gap for catastrophe A notable example is the Qatari Hootsuite, a Canadian social media ing the way for more inclusive fi ntech penetration rates below 2% in 2016 compared to the and pandemic risks is significant, it said for the GCC, e-payment systems provider QPAY, management software company, shows services to capitalise. world average of 6.3%, demonstrating that the region natural catastrophes are deemed less of a concern for which reported 300% year-on-year that Qatar and the UAE share the title QPAY, for instance, off ers a range of also has some of the lowest penetration rates amongst domestic insurers, given the low catastrophe exposure in growth from its 2014 launch to Novem- of the highest rate of social media pen- services directly to MSMEs, including a emerging economies, it said, adding despite the low the region, and where flooding constitutes the main risk ber 2017, Oxford Business Group said. etration in the world, at 99%. payroll wage protection system that is penetration and premium retention levels, these owing to inadequate drainage infrastructure. “Equally, the fi ntech revolution has Qatar is also ranked fi rst for the pro- powered by MasterCard. indicators have been rising in recent years, driven by both “There is, however, a high frequency of single-event the potential to disrupt the sector, portion of the population accessing so- This enables workers to be paid via a regulatory changes and the desire of insurers to retain losses, particularly from property claims (owing to fires with new digital solutions challeng- cial media from a mobile device, with digitised scheme that is in compliance more risk. in high-rise buildings, for instance), mainly as a result of ing conventional banking structures 95% of citizens doing so. with the Ministry of Labour and Social The low insurance market penetration rates is partly man-made losses,” it said, noting that these losses can and ways of doing business. Adapting New fi ntech is increasingly utilised Aff airs. As of November 2017 QPAY due to the small size of the life risk cover, particularly for give rise to high counterparty credit risk for the primary to and benefi ting from these changes offl ine too. Contactless debit cards served some 10,000 businesses and the GCC, it said, finding that at present, the expatriate market because of the reliance on reinsurance. will require fl exibility and a pragmatic are available from the Commercial 280,000 consumers, Oxford Business attitude towards cooperation, not only Bank and QNB, which can be used at Group said.