Beirut Up, Dubai Down

Dubai last year was ranked #12 and this year it ranks #31!!!!

The real estate bust that hit Dubai is making it no longer among the top most expensive cities in the world for expats to live in.

According to EuroCost International

"in Dubai, spectacular decreases have been registered for expat rents in 2009"

One really starts to wonder about the yields in Dubai right now? they must be really spectacularly miserable!!

In the Arab world the most expensive city to live in is now Beirut. There has been lots of gulf money, mostly Qatari, flowing into that city, which has made prices increase dramatically. At #10 (last year it was #28), one starts to wonder if this is a genuine demand driven, bank Audi of Lebanon argues for this point or a result of speculation?

http://www.eurocost.com/en/rent_world_2010.html

Saleh Al Falah Appointed as Kuwait's Market Regulator

Zawya reported today that Mr. Al-Falah is to be the head of the Market Regulatory Authority. This is a good move, but after a long and desperate search (22 have rejected) for the position they went w/ the head of the Kuwait Stock Exchange. During his period at the KSE he faced opposition by several large investors as he insisted on increasing the quality and the level of reporting - something they were unused to during the tenure of his predecessor.

This is good news - as at least we can get moving with the Market Authority - and hopefully the transparency and small-investor protection will increase. Though many skeptics remain, and rightly so since he needs to be tougher in dealing w/ Kuwait's troubled companies.

The Market Authority Team are:

Saleh Alfalah (Head), Mahdi Aljazaf (Vice), Naif Alhajraf (Member), Yousef Alali (Member), Saleh Alyousef (Member)

http://www.zawya.com/Story.cfm/sidANA20100908T060418ZOAL59/Kuwait%20Appoints%20First%20Stock%20Market%20Regulator

The New Indian Acquisition Age

Indians and the GCC have a long history of interwoven business dealings, as it was and extension of the near geography and the somewhat closeness of the cultures. Nevertheless it has been only recently that we hear about Indian businesses expanding their businesses into the GCC region. Mr. Jagtiani is the owner of the Landmark group is buying out a UK business that was presented to the GCC in 2009 - I know of two locations in Dubai - but there maybe more than that.

while this can be described as a local business buying a UK business - but nevertheless the owner is a wealthy Indian w/ expansion plans in the GCC for this new acquired business

Expect More of the Same :)

Billionaire Jagtiani to buy Carluccio's for $138.9m - Retail - ArabianBusiness.com

Foreigners net buyers on DFM target=

Foreigners net buyers on DFM target=

that fact that more than 50% of buyers were non Emarati, and that the RE sector was the most traded are encouraging signs. Nevertheless, there still remains a huge number of unoccupied apartments/houses/commercial RE in Dubai. I would tread carefully if I were to enter this market.

Money & Democracy

"...it is wholly impossible for a central banker subject to political control, or even exposed to serious political pressure, to regulate the quantity of money in a way conducive to a smoothly functioning market order...a good money, like a good law, must operate without regard to the effect that decisions of the issuer will have on known groups of individuals...A benevolent dictator might conceivably disregard these effects; no democratic government dependent on a number of special interest groups can possibly do so"

Friedrich August Hayek

Basically Central Bank's independence is a mirage... and even more so when special interest groups "large business and/or politicians' businesses" have a say in the political decision making.

Personally I think that Big Saudi business will be the pulling & pushing force in the coming One GCC Single Central Bank regime - (http://blogs.ft.com/money-supply/2010/03/30/concepti

on-if-not-birth-of-gulf-central-bank/#comments)

Especially that it will be based in Riyhad, and headed by a Saudi central banker (Dr. Al Jassar Above) with a terrible track record in handling the Ghossabi/AlSaa`d loans to the banks in the region - where priority was given to Saudi banks rather than following the seniority of the loans

Another Surplus = Another Disappointment?

Yesterday Kuwait's government announced it's 11th year - YES 11 Years - of budget surplus. This year it was 22.4 Billion USD. This expected now in Kuwait, however two very important questions arise:

1) What will happen to the surplus? am dyeing to see some development to the old infrastructure of Kuwait . I mean spending this 22B $, in much needed projects (hospitals, streets, airport) would really do wonders

2) Just when are we going to have any visionary leadership that will lift Kuwait from this "oil income ..... formed almost 94 percent of public revenues" lock

many other important questions remain: who specifically will benefit? can an incompetent government handle the responsibilities of big plans?, and what would be an alternative export aside from good ole Oil?

http://zawya.com/Story.cfm/sidANA20100829T090202ZMQJ09/Kuwait%20Posts%20%2422.4%20Billion%20Budget%20Surplus

Zombie Stank (GCC Banks?)! ........

Applies to many GCC banks as well