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Editor’s Page MONEYworks magazine The world stage of finance and economy continues to be P O Box 10656, Dubai, UAE Telephone: +971 4 391 2160, Fax: +971 4 391 2173 fascinating. One moment the market is gung-ho about positive Email: [email protected] Published by news coming out of emerging markets and the next a majority Rasalmal Financial Publishing FZ-LLC of traders are betting on stocks retreating, as valuations A Dubai Media City Company Telephone: +971 4 391 2160, Fax: +971 4 391 2173 have stretched tight or a news item on new regulations being Email: [email protected] drafted to curb risk-taking by financial institutions has touched Board of Directors Saud A. Al Amri - chairman some nerves. Abdulaziz Al Mashal Greg Hunt Gold is easing now and so is oil. There are talks of US General Manager recovery being real and China actually deciding to discourage Don Taylor Distribution credit, as its economy is showing signs of heating up quickly. Dar Al Hikma, Dubai, UAE, Tel: +971 4 266 7384 There are predictions that 2010 will see a good bit of volatility in the market, so Jashanmal, Abu Dhabi, UAE, Tel: +971 2 673 2327 Cover Image investors need to be cautious. Nothing can be truer, of course. The thing that MONEYworks continues to keep my confidence levels up is that we are mostly talking about Editor Utpal Bhattacharya positive news like debt restructuring near home, managing fears of inflation in Assistant Editors China or trying to come up with ideas that would help the world stave off a similar Ritwika Chaudhuri George Fahim financial crisis, the effects of which are still being felt. The occasional article on US Sub Editor recovery continues to be a hit with most of us. Although most agree that the US Kara Sensoli Contributing Editor economy will take its own sweet time to sort itself out of the big hole it is in, every Syed Faiz Ahmad bit of good news that comes out of that economy will be cheered by the world’s Editorial Assistant Tarub Ziad Huleisy financial markets. We need to keep a lookout for good news from the west now, Regular Editorial Contributors especially from the US. James Thomas Sultan Sooud Al-Qassemi Of course, President Obama’s move to curb risk-taking by banks is not exactly a Special Editorial Contributors shocker as far as I am concerned, although I am not sure how much can actually Matein Khalid, Sachin Patki, Stefan Hofer, Dr. Konrad Hummler, Peter Hensman, Shankar be done about stopping proprietary trading or stopping banks from investing in Operations Manager hedge funds. Certain investment practices have grown over a period of time, and Tim Elliott Design & Layout although tinkering with these practices is perhaps the right thing to do, taking any Zak Parayil drastic measures will not be easy. But politicians are answerable to the people Administration Sessie Fernandes they serve, and most people are not bankers, who have been primarily responsible Rolla Daniel for the financial crisis. So, one can expect regulatory announcements from the US Regional Sales & Marketing Manager Ali Jaber during the rest of the year. From the looks of things, though, derivative volumes Sales & Marketing are only set to rise and a large part of those are not regulated at this time. We will Sonia Roy, Zameer Hassan, Arshad Iqbal Advertising Enquiries: have to wait and see how much actually gets done by the present breed of world Tel. +971 4 391 2166, Email: [email protected] leaders and how much they bury for future action. My guess is that most of the Advice to readers - Information carried in MONEYworks is checked for accuracy, but we recommend that you make enquiries and, if necessary, take appropriate advice action will be left for posterity. before entering into any transactions. Never forget investments can go down as well as up and you may get back less than you originally invested. Companies offering financial services, products or advice in the UAE must be licenced accordingly. If in doubt, check with your local Chamber of Commerce, Central Bank office or Department of Economy. All rights reserved in respect of all articles, drawings, photographs, etc. published in MONEYworks anywhere in the world. Reproduction or imitations of these are expressly forbidden without the written permission of the publishers. © Rasalmal Financial Publishing FZ-LLC 2010 The MONEYworksTM magazine cover logo is a registered trademark. Audited by: Utpal Bhattacharya Editor ♺ When you’re finished with MONEYworks, please recycle it. When it comes to investing, don’t just flip a coin. 2EADTHE'ULFREGIONSlRST PERSONAL lNANCE AND INVESTMENT MAGAZINEMONEYÜÀÃEVERYMONTHFORMOREONHOWTOGET YOURMONEYWORKING 4OKNOWMOREABOUTTHE'ULFREGIONSlRST PERSONAL lNANCE AND INVESTMENT MAGAZINES LOG ON TO WWWMONEYWORKSAE 3INCE 2 I MONEYworks I February 2010 contents 06 News 34 In Focus SAR300 million project launched in Riyadh Valuations in the Indian stock market are stretched at the current levels. But with the country having touched the per capita 08 News milestone of US$1000, it sure is a long- INSEAD plans to redesign MBA course term play, notes Shankar 10 ‘The NIB Zone’ The month’s local, regional and 38 Stock Watch FCI is well positioned for growth in the international financial news in brief coming years 18 US Tax Dr. Konrad Hummler explains how institutions 62 Reader’s Letter Diversifying your assets and investors are being forced out of the US market by the sheer complexities of the 22 country’s taxation regulations 63 From the Hip Sending Money James Thomas on how to keep your health insurance premiums down and avoid being Remittances and payments are converging, 26 Investments overcharged by medical practitioners telecom operators like Etisalat are getting Matein Khalid ponders the immediate issues for Dubai debt, while also wondering if a ever-more important and electronic transactions long-term bond market could be the solution 64 The Long and the Short of it are continuing to rise. Utpal Bhattacharya, with Sultan Sooud Al-Qassemi on how Nasdaq Dubai could become a successful input from George Fahim, finds out how the 28 Premium Banking exchange by serving the needs of the local industry is shaping up The rush for premier customers small and medium enterprise market 30 Business Leader Ashok Bastimal Siroya of Siroya Group tells Ritwika Chaudhuri how he carved a niche for himself in the gold business Markets Regional Best Buy Tables 40 MSCI Benchmarks 50 Saudi: Credit Cards, Personal and Car Loans GCC, Regional and World Benchmarks 51 Oman: Personal Loans and Credit Cards 42 Regional A cautious end to a cautious year 52 Qatar: Credit Cards, Personal Loans, 43 Emerging Markets Home Contents and Medical Insurance China’s delicate exit strategy 53 Bahrain: Credit Cards, Personal Loans, Currency 44 Home Contents and Medical Insurance US$ remains on the defensive 45 Global 54 Kuwait: Credit Cards and Personal Loans A decade of weak equity returns 55 UAE: Medical Insurance 46 Commodities Chinese demand could slow 56 UAE: Home Contents Insurance International Best Buy Tables 57 UAE: Credit Card Best Buys by Interest/ Profit Rate and Value-Added Features 47 Offshore Savings: Offshore selections, offshore cheque 58 UAE: Auto and Personal Loans account rates, offshore US dollar accounts, offshore euro accounts 60 UAE: The UAE Mortgage Table 49 Mortgages for UK properties 62 UAE: Independent Financial Advisers The best deals available now & Licensed Financial Intermediaries To know more about the Gulf region’s first personal finance and investment magazines, log on to www.moneyworks.ae Since 1998 4 I MONEYworks I February 2010 News SAR300 million project launched in Riyadh While Saudi Arabia awaits its mortgage laws, developers are not sitting quietly. Syed Faiz Ahmad reports from the press launch ceremony of an SAR300 million housing project in Riyadh. audi Arabia’s housing market Group (SBG) to build 252 housing Speaking to MONEYworks, Scontinues to roll on as the units north of the city. Engr. Hamza said that Durrat- Kingdom faces tremendous Engr. Saud Al-Qefaide, managing Ul-Riyadh, which means jewel demand fuelled by a young, fast- director of Dallah Real Estate of Riyadh, comprises fully- growing population coming into Development and Tourism developed land in an area in the mainstream of the economy. Company, announced the project at excess of 500,000 square Last month, Durrat-Ul-Riyadh, a real a press conference in Riyadh. Engr. metres. The project with SBG is estate subsidiary of Dallah Baraka, Hamza Mohsen Al-Attas, general a mini-township within the larger unveiled an ambitious SAR300 manager of Durrat-Ul-Riyadh, was Durrat-Ul-Riyadh development, million housing project in Riyadh in also present during the press which has completed all of the collaboration with Saudi Bin Laden event. infrastructure development of the 6 I MONEYworks I February 2010 News total land area, including roads, “Durrat-Ul-Riyadh is an SAR3 billion water supply, sewerage and project that is going to attract many landscaping. Engr. Hamza added potential buyers,” he said. that the developed plots of land Engr. Hamza added that Durrat-Ul- have been open for sale to the Riyadh would live up to its name and public to build their houses. Some would be a great landmark in the 65 housing units have also been future. According to him, the project built for sale. These are luxurious will be a complete city in itself, units and are based on Spanish as it will house several shopping and French designs, Engr. Hamza malls, at least one five-star hotel, added. entertainment outlets, swimming pools, fitness centres, schools and hospitals. Engr. Hamza also disclosed that SBG is just one of several other business groups that have also shown interest in investing Engr.