US exports to Mideast may hit highAfter a slump last year, US exports to the Arab world are expected to rebound and reach record levels this year, according to a new study by a Washington-based group.The National US-Arab Chamber of Commerce predicted in its latest report that exports from the US to the Arab world will reach $75 billion in 2010.The report, entitled US-Arab Trade Outlook 2010, also said the trade would sustain directly and indirectly some 740,000 jobs in the US. Exports of American goods and services to the Arab world are slated to rebound from $63 billion in 2009 to nearly $75 billion this year, the report said. This represents an increase of almost 20 percent, propelling US exports to the Middle East and North Africa region to an all-time high. The single largest importer is the UAE which is expected to import goods and services totaling about $22 billion, with civilian airplane engines and parts accounting for $3 billion.The other top importers are Saudi Arabia at $17 billion and Egypt with $6 billion worth of expected purchases. -Gulf Daily News
Merrill Lynch ups CIB target price to LE 78Merrill Lynch expected the Egyptian banking sector to show stronger performance this year, according to a recent report, and Commercial International Bank (CIB) was projected to post the highest profit growth rate on improved lending activity in 2010.The coverage is based on preliminary positive signals, which will allow the investment bank to review its valuation.Accordingly, Bank of America upped the stock’s price estimate from LE 74 to LE 78, placing a ‘Buy’ recommendation. It also delivered a bullish outlook for the lender’s shares that would likely rally on heavy trading.Egypt’s largest bank by market value was advised to focus on high-yield loans despite forecasts for a 34 percent rise in its stock portfolio this year, compared to 37 percent in fiscal year 2009.Growth in fixed-income securities was also projected to decline to 23 percent, compared to 32 percent last year. This retreat would be attributed to increased interest in lending.Merrill Lynch predicted CIB’s credit activities to recover this year, amid the lender’s solid retail loans and growth in its fiscal year 2009 credit record.A positive momentum was expected in H2-10, propelled by attracting new investments to Egypt, resuming suspended projects amid the global recession and higher FDI. -Mubasher
Kuwait Agility to pay $600 mln in fraud case: paper Kuwait s logistics firm Agility is to pay the U.S. government $600 million to settle fraud charges, an Arabic-language daily reported on Friday, citing unnamed sources. Agility and the US government reached a preliminary agreement and the sum would be paid over three years, Kuwait s Al-Jarida newspaper said. The Kuwaiti firm, formerly Public Warehousing Co K.S.C., is in talks to resolve an indictment accusing it of overcharging the US Army on supply contracts in Iraq, Kuwait and Jordan. The company has delayed the release of its financial results until Sunday and requested a trading halt on its shares, pending clarity on talks. Al-Jarida said the settlement will mean the return of US government business to Agility, but it was not clear yet if that would be in full or in part. It said the settlement could be announced in a day or two. -Reuters
Bahrain bank AUB slumps as stake sale concerns mount Shares in Ahli United Bank, Bahrain s largest bank, plunged on Thursday as questions over a $1.32 billion stake sale nagged investors and doubts resurged as to whether the deal would go through. Earlier this week, AUB said Kuwaiti investment firm Tamdeen plus other, unnamed shareholders had agreed to sell 25 percent in AUB to an unnamed Gulf entity. Shares in AUB on Thursday, however, gave up 9 percent, helping to reverse an 11 percent rally since the start of April as investors pulled back from a deal dogged by questions in a region renown for lacking regulation and transparency. It s surprising they have not announced the buyer – but that s how it is in this region, said a banking analyst who did not wish to be named. AUB said the buyer would pay $1.10 per share, 37.5 percent above AUB s closing share price on Tuesday. Officials at AUB and Tamdeen have either declined to comment or not been reachable since the deal s announcement. -Reuters
French court rules against JJW in Crillon disputeA French court has ruled that Saudi-backed JJW Hotels & Resorts will have to pay ?100 million ($133.7 million) to Starwood Capital to settle a dispute involving the sale of Le Crillon, one of the world s landmark hotels. The US investment group said in a statement on Friday that its Societe du Louvre and Groupe du Louvre units now will be able to continue reviewing various signs of interest shown in the last months for some of their high-end luxury hotels. It said the units were very satisfied with the ruling. JJW lawyer Maurice Lantourne told Reuters by phone his client would appeal the ruling. The Paris Commerce Court ruling is the latest episode in a long-running legal saga over the aborted sale by Starwood Capital of several French luxury hotels, including Le Crillon, to JJW for a reported ?1.5 billion. In March 2008, Starwood and JJW entered exclusive talks. JJW agreed to pay a ?150 million exclusivity deposit but gave only ?50 million and in March 2009 Starwood cancelled its agreement with JJW. It later launched legal proceedings to recoup the rest of the deposit. On April 8, the Paris Commerce Court ruled that JJW had breached its contractual obligations, leading Starwood to cancel its agreement with JJW, and JJW would have to pay the ?100 million euros claimed by Starwood. Starwood Capital took on Le Crillon as part of its acquisition of Taittinger s hotel and champagne empire in 2005. -Reuters
