ARAB FINANCIAL FORUM NEWSLETTER FEBRUARY 2011.

ISSUE II

Arab Financial Forum Newsletter

Monitoring the latest news

Dear Reader,

The unrest in the Arab world continues to have an impact on Arab financial markets. Libya
turmoil is followed by an increase not only in oil prices, but gold as well. Egypt is trying to
manage financial difficulties in its markets, while the Saudi Economic Forum is looking for
the ways to enhance the state‟s economic development.

Stephen Kirkland and Boris Korby, editors at Bloomberg, share their views on the article
„Brent Crude Jumps to Two-Year High Above $108, Gold Rises on Libya Unrest‟
explaining how the recent developments in Libya affecting the international market.
If you have any news you would like to include in future issues please contact me. I would
also like to hear from those wishing to offer commentaries on current developments in
Arab financial markets. Also, let me know if there are others who would like to receive the
newsletter.

With warmest regards,

Aynur Hamidova
AFF Project manager

If you would like to learn more about this newsletter or forthcoming events, or would like to suggest
an event, article or include any comment for inclusion in the next edition. We welcome new readers,
if you would like to me to include new interest to our complimentary distribution of the newsletter,
please do not hesitate to contact me at projects@meconsult.co.uk.

MEC International Ltd. Granville House. 132-135 Sloane Street London SW1X 9AX
Tel: 020 7591 4816 Fax: 020 7591 4801 E-mail: projects@meconsult.co.uk
ARAB FINANCIAL FORUM NEWSLETTER
IN BRIEF
Gold climbs, set for best month since
2009 on Mideast unrest
February 28, 2011
Gold is “moving in the same direction as oil due to
increased safe-haven buying from unrest in Libya
and spreading unrest in other key Middle East oil
producers,” Mark Pervan, an analyst at ANZ
Banking Group Ltd, wrote in a note to clients.
Read more
Saudi Aramco CEO says extra oil
supply needs met
February 28, 2011
Demand for extra oil supply following disruption
to exports from OPEC member Libya has been
met, Saudi Aramco CEO Khalid Al Falih told
reporters on Monday.
Read more
Egypt Sells $934 Million in Bills as
Yields Surge on Turmoil
February 21, 2011
Egypt raised 5.5 billion pounds ($934 million) from
the sale of treasury bills today, with the yield on
one-year notes rising to a more than two-year high
as unrest escalated in the Middle East and North
Africa.
Read more
FEBRUARY 2011. ISSUE II
Saudi Economic Forum Tackles
Challenges and Opportunities
February 28, 2011
The Forum, organized by the Ministry of Finance in
cooperation with Economy and Business Group,
will focus on the current global economy and the
driving force behind Saudi Arabia's economy.
Read more
Dubai Shares Drop to 6-Month Low
as Mideast Unrest Spreads; Morocco
Slips
February21, 2011
Dubai‟s benchmark stock index dropped to the
lowest level in almost six months, leading a
decline in the Persian Gulf, as unrest in the Middle
East spread.
Read more
Bahrain-Based Arab Banking Corp
Downgraded Following Libya
Negative Rating
February 23, 2011
Standard & Poor's Ratings Services said today it has
lowered its long-term counterparty credit rating on
Arab Banking Corp. B.S.C. (ABC) to 'BBB' from
'BBB+'.
Read more
ARAB FINANCIAL FORUM NEWSLETTER
Egypt: Banks Resume Activities
Today
February 20, 2011
The Egyptian banks and the ATM units will be
ready to reopen for business today, Sunday
following the compulsory closure owing to the
circumstances Egypt is passing .
Read more
Qatar, Germany Strengthening
Economic and Political Relations
February 27, 2011
Qatar and the Federal Republic of Germany held a
session of official talks before noon today at the
Emiri Diwan, chaired by HH the Emir Sheikh
Hamad bin Khalifa Al Thani and the German
President Christian Wulff.
Read more
CSE Global to delay buying Middle
East firm as unrest rocks region
February 28, 2011
Singapore's CSE Global , a systems integrator for
the global oil industry, said on Monday it was
delaying acquiring a Middle East company due to
concerns over unrest, but remained bullish on the
region's long-term prospects.
Read more
FEBRUARY 2011. ISSUE II
Middle East Airlines joins SkyTeam
February 28, 2011
Middle East Airlines - Air Liban (MEA), the flag
carrier of Lebanon, today signed an agreement to
join SkyTeam in 2012. MEA will be the alliance's
second member from the Middle East, a strategic
growth market for SkyTeam.
Read more
COMMENTARY
AND ANALYSIS
This piece entitled ‘Brent Crude Jumps to Two-Year
High Above $108, Gold Rises on Libya Unrest’ is
contributed by Stephen Kirkland and Boris Korby,
editors from Bloomberg.
Oil rose to the highest since September 2008 and
gold rallied for a sixth day surpassing $1,400 an
ounce as tension in the Middle East escalated.
Stocks fell the most in a month as Eni SpA led
companies with operations in Libya lower.
Brent crude gained 5.3 percent to $107.93 at 5:34
p.m. New York time. Gold climbed 1.2 percent and
silver added 3.8 percent. The Stoxx Europe 600
Index declined 1.3 percent, with Eni sinking the
most since July 2009. Standard & Poor‟s 500 Index
futures lost 0.9 percent. Bahrain‟s 2020 bond yield
increased for a 10th day after S&P cut the nation‟s
debt rating. The yen and the dollar strengthened
ARAB FINANCIAL FORUM NEWSLETTER
against most of their major peers. U.S. markets were
closed for the Presidents‟ Day holiday.
Libyan security forces attacked anti-government
protesters as demonstrations spread across the
Middle East and North Africa, a region that
accounts for 36 percent of global crude output.
Chinese authorities blocked foreign news reports on
protests across the country to stamp out any
movement toward pro-democracy revolts.
“You‟ve got to be very concerned, particularly
because it can affect the oil price, and if you have
the oil price spike up another $20, $30, you could
reenter a global recession,” Bill Belchere, global
chief economist at Mirae Asset Securities, said in a
Bloomberg Television interview in Hong Kong.
West Texas Intermediate oil for April delivery
jumped 6.3 percent to $95.39 a barrel in New York.
Gold climbed to as high as $1,408.45 an ounce, and
last traded at $1,406.45. The six days of gains is the
longest streak since August. Silver rose to a 30-year
high of $33.8925 an ounce.
Libya Ties
Eni, the largest foreign oil and gas producer in
Libya, lost 5.1 percent, while OMV AG, central
Europe‟s biggest oil company, which has been in
Libya since 1975, slid 4.2 percent. Tekfen Holding
AS tumbled 7.9 percent as the Turkish builder
suspended work on a Libyan project, saying its
priority now is the safe evacuation of 1,197 non-
Libyan employees.
Merck KGaA gained 4.5 percent as earnings beat
forecasts. Alpha Bank SA rose 5 percent as the
FEBRUARY 2011. ISSUE II
shares resumed trading following a takeover bid
from National Bank of Greece SA.
The MSCI Emerging Markets Index slid 0.1
percent. Benchmark indexes in Russia and South
Africa rose at least 0.9 percent while gauges in
Turkey, Dubai and Morocco sank more than 1
percent. Brazil‟s Bovespa fell 1.2 percent.
Facing Civil War
Muammar Qaddafi‟s son called on protesters to
engage in dialogue or face a civil war, as violence
escalated amid reports protesters seized control of
Libya‟s second-biggest city. Violence has flared in
Yemen, Djibouti, Iran and Bahrain as governments
sought to crack down on demands for change.
Bahrain‟s dollar bond due 2020 fell as S&P cut its
rating and signaled further downgrades were
possible, saying it expected protests to persist.
Default swaps on Dubai jumped 11 basis points to
448, contracts on Qatar increased seven basis points
to 113, and those for Saudi Arabia climbed five
basis points to 144, according to CMA.
India‟s Sensitive Index climbed 1.3 percent on gains
by oil shares and Wipro Ltd.‟s biggest rally since
November after Credit Suisse Group AG
recommended the software services provider.
Vietnam‟s VN Index slumped 4 percent, the most
since November 2009, after the government said it
will raise electricity prices by a record 15.3 percent.
The yield on Germany‟s 10-year bund slid seven
basis points to 3.18 percent after Chancellor Angela
Merkel‟s Christian Democratic Union lost an
election in the city-state of Hamburg to the Social
Democrats.
ARAB FINANCIAL FORUM NEWSLETTER FEBRUARY 2011. ISSUE II

The yen strengthened 0.1 percent.

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If you would like to learn more about this

newsletter or our forthcoming events, or would
like to suggest an event or article for inclusion in
the next edition, please do not hesitate to contact
me at projects@meconsult.co.uk.

MEC International Ltd.

Granville House
132-135 Sloane Street
London SW1X 9AX
Tel: 020 7591 4816
Fax: 020 7591 4801
E-mail: projects@meconsult.com