Factors of A Sustainable Crisis

The Financial Committee in the American Senate has approved on a package of an economic incentives by pumping about $ 200 bn in the American economy within two years in an attempt to avoid recession. Earlier, the federal treasury announced that it will make a big decrease in rates of interests. So will this be enough for avoiding the US recession and getting away from the ghost of an international collapse?
Many experts believe so but others express great skepticism. Many factors have gathered to make an integrated crisis, like the rapid decline of real estates prices in the US, the UK, Ireland, and Spain, as well as the decline of the exchange rate of the US dollar, let alone the rise of oil prices, raw materials, and food stuff products. Moreover big financial institutions like City Group and Merrill Lynch in the US, Northern Rock in the UK, Swiss Re, and UBS in Switzerland, and Société Généralel in France have admitted that they lost huge sum of money in addition to other phenomena like (Gold Fever). Above all the central American, European, British, Swiss, and Japanese Central Banks have pumped in their perspective economies hundreds of billions of dollars without being able to regain the trust of the dealers. All that contributes in presenting a sustainable crisis.

Chairman of the Real Estate “Soroh” Company Asserts the Increase of the Sales of Housing Units This Year

The Executive Chairman of the Real Estate “Soroh” Company, Muneir Haydar, said in a statement on the sidelines of Abu Dhabi Exhibition for Real Estate and Investment that based on the results achieved in 2007 and the progress in the infrastructure of all projects, the sales of the expected housing units during this year in Abu Dhabi will exceed the volume of sales achieved last year with the presence of strong indicators on the continues big turn out by individuals and institutions to buy real estates.

$328 m, the Profits of the Egyptian Mobinile Company

The profits of Egyptian Mobinile Company for Mobile Phones Services have risen by 20%, reaching $328 m last year, compared to about $242.7 million in 2006. A statement issued by the company and published by Reuters said that the big increase was due to the rise of the average usage by one subscriber during the whole year, pointing out that the average have risen by 11% reaching 132 minutes per month compared to the average of 2006.

The Biggest Chinese Bank Opens a Branch in Qatar

China Trade-Industrial Bank said that it has been granted the approval of the Qatari supervision commission on banks with the aim of opening a branch in al Doha. The bank said that it will be the first Chinese bank to open a branch in the Gulf, adding that it is an important step within the framework to expand abroad.

Bahrain and Qatar Decrease Rates of Interest

Bahrain, which engages its currency with the dollar, has decreased the prices of interest rate for one week by half a point percent, keeping the prices of loans without any change, following the decrease of the American interest in the previous day. Moreover Qatar has also decreased prices of interest for one week by 3% and kept prices of re-buying for one night without change by 5.25%.

Small Indexes

- A senior official in the Saudi Ministry of Trade stated that the average of the licensed real estate contribution in the kingdom will be only 5% out of the total real estate contributions available in the Saudi real estate market.
- Ambassador of India to China has announced that tourist sector between the two countries has achieved a growth rate by 530.000 tourist between the two countries due to a series of tourist promotion campaigns last year. 70.000 Chinese visited China whereas 460.000 Indians visit China during the same year.

Companies Indexes

- The Group of Zain has announced that it hit a record in terms of profits which is the highest ever in the history of the Kuwaiti private sector estimated at $130.1 bn.
- Sources in oil industry said that the South Korean SK energy company is considering buying an Iraqi oil in the market in compensation for what it lost due to the suspension of Iraqi supplies in accordance with an agreement as the time limit specified by Baghdad for the company for withdrawing has ended.
- Abu Dhabi National Energy Company said that it achieved great profits estimated at 1 billion dirhams last year by a growth rate estimated at 107%.

Bids

- The Saudi Sabec Company said that it signed an agreement with the Chinese oil company “Sinopec” for building a factory of ethylene products with a total capacity of one million tons annually with a total cost estimated at $1.7 bn.

Exhibitions & Conferences

- The activities of the 11th session of Al Riyadh Real Estate Exhibition are due to be held between 4-8 of May at the center of International Exhibitions Company.
- The activities of the conference entitled “Challenges of Inflation in the GCC countries” will be held in Dubai on the sixth of February 2006.

Indicators is a daily economic watch newsletter about the Near East, issued by New Orient News agency in Beirut, Lebanon. It is available on Voltairenet.org in Arabic, English and Spanish. Also worth a read is Tendencies, the daily Near East political watch newsletter, available in Arabic, English, French, German, and Spanish languages.