MENA-1 MONDAY MORNING ROUND-UP

UAE
UAE cuts cooking gas price in four emirates Al Hilal Bank seeking a bond issue Investor in Damac Properties wins payout

Kuwait Qatar

Al Mazaya Holding reports a loss in 2Q2011 Privatisation committee to review expressions of interest for Kuwait Airways Corporation soon

Qatar to inject EUR500 million in Greek banks merger Gulf International on track to achieve full-year net income target Salam International to invest USD3 million in Lebanon bank stake

Bahrain

Batelco appoints new Group CEO

Agenda
Qatar Wed 21 September >> Salam International AGM

UAE News
UAE cuts cooking gas price in four emirates According to press reports, the Abu Dhabi National Oil Company will sell cooking gas in four emirates of the UAE at subsidised prices. The decision from the President of UAE Sheikh Khalifa will benefit residents of Ajman, Ras al-Khaimah, Umm al Qaiwan and Fujairah. (Arabian Business) Al Hilal Bank seeking a bond issue Al Hilal Bank, an Islamic bank fully owned by the Abu Dhabi Investment Council, seeks to issue at least USD1 billion through a sukuk before the end of the year. This will be the first issue by the bank and Al Hilal is hoping the bond issue will allow it to build a track record in the international bond market for future issues. Al Hilal made its first profit of USD38 million in 2010 since its inception in 2008. (The National) Investor in Damac Properties wins payout An investor in a Damac Properties commercial project has won the first of potentially many successful compensation claims against the company. Damac Properties, the Dubai-based developer, in July returned a down payment plus costs to an investor who had bought seven units in the mixed-use Executive Bay project in Business Bay. The properties, which were due to be delivered by April 2012, were behind schedule, which meant that there was an anticipated breach of contract. Claims against developers usually occur at the time of handover, but in this case the investor received his money before the scheduled delivery date. (Arabian Business)

Kuwait News
Al Mazaya Holding reports a loss in 2Q2011 Al Mazaya Holding (MAZA.KW), the property development and investment company, reported a loss of KWD2.1 million in 2Q2011. This was the fourth consecutive loss reported by the company. Revenues from sale of properties held for trading was sharply down to KWD35,878 from KWD7.5 million in 2Q2010. (The National) Privatisation committee to review expressions of interest for Kuwait Airways Corporation soon

The committee handling the privatisation of Kuwait Airways Corporation, the state-owned airline, said that it would start reviewing the expressions of interest (EOI) it has received from various parties for a 35% stake in the company. The deadline for EOI submission was 25 August 2011. The committee said that it will work with its advisors to assess the EOIs and an update will be provided to the market soon. (Zawya Dow Jones)

Qatar News
Qatar to inject EUR500 million in Greek banks merger Qatar will inject EUR500 million into the merger of Greeces Eurobank and Alpha Bank, scheduled to be finalised today, a banking official close to the deal was quoted as saying. There will be a capital injection from Qatar via a EUR500 million (USD704.3 million) convertible bond, the unnamed official was quoted as saying. (The Guardian, Reuters) Gulf International on track to achieve full-year net income target Gulf International Services (GIS) [GISS.QA] announced that it is on track to achieve its full-year net income target of QAR400 million (USD110 million), despite a decline of its net income in 1H2011, Bloomberg reported. GISs net income fell by 44% Yo-Y to QAR140.7 million in 1H2011. The company also aims to achieve its full-year revenue target of QAR1.4 billion. The group is on target to meet forecasts, assuming favourable trading conditions prevail in the second half of the year, the companys Chief Coordinator, Ebrahim Al-Mannai, was quoted as saying. (Bloomberg) Salam International to invest USD3 million in Lebanon bank stake Salam International Investment (SALM.QA) announced that it plans to set up with other shareholders an investment bank in Lebanon with an initial capital of USD13 million, the banks Chief Executive Officer (CEO), Issa Abdul Salam Abu Issa, was quoted as saying. Salam International will participate with USD3 million for a 10% stake in the investment bank, Issa added. The Beirut-based lenders capital may be increased later, he added. Salam International also plans to invest JOD10 million (USD14 million) to acquire a 13% stake in a tourism project in Jordan. (Bloomberg)

Bahrain News
Batelco appoints new Group CEO Bahrain Telecommunications Company (BTEL.BH), known as Batelco, announced that it has appointed Sheikh Mohamed bin Isa Al Khalifa as the companys new Group Chief Executive Officer (CEO), Zawya Dow Jones reported. The position was previously held by Peter Kaliaropoulos who will now serve as CEO of Strategic Assignments and take on the responsibility for the groups joint ventures, according to a statement posted by Batelco. Sheikh Mohamed will assume his new position starting on 1 October 2011. (Zawya Dow Jones)
[Note EFG Hermes is not responsible for the accuracy of news items taken from other media.] _________________________________________________________________________________________________________________ Our investment recommendations take into account both risk and expected return. We base our fair value estimate on a fundamental analysis of the companys future prospects, after having taken perceived risk into consideration. We have conducted extensive research to arrive at our investment recommendations and fair value estimates for the company or companies mentioned in this report. Although the information in this report has been obtained from sources that EFG Hermes believes to be reliable, we do not guarantee its accuracy, and such information may be condensed or incomplete. Readers should understand that financial projections, fair value estimates and statements regarding future prospects may not be realized. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice. This research report is prepared for general circulation and is intended for general information purposes only. It is not intended as an offer or solicitation with respect to the purchase or sale of any security. It is not tailored to the specific investment objectives, financial situation or needs of any specific person that may receive this report. We strongly advise potential investors to seek financial guidance when determining whether an investment is appropriate to their needs. No part of this document may be reproduced without the written permission of EFG Hermes.