Two Main Reasons for the Decline of the Dollar

The first reason is that in case the decline of the dollar continues as it is the case now, this will result in a huge capitalist loss with regard to the international foreign currency reserves, and if these losses exceeded the limit that it cannot be tackled, the central banks will resort to put an end to its losses and to get rid of the dollars available in their reserves, which will lead to a collapse in the value of the currency on the international level, in addition to the fact that trade banks realize that the central banks, which have a huge surplus of the dollar, and which will try to get rid of it will resort to the same procedures, and consequently the first which will get rid of the dollar from its reserves will have a bigger opportunity to save its money. The second reasons which will lead to the decline of the value of the dollar is America’s need for external finance. For so many years, the expenditure of the American economy have been bigger than its profits and this lead to deficit in the American current accounts till it reached last year 6% of the GDP.

Iran Announces that it Hit a Record in Terms of Oil Production

The Iranian official news agency quoted the Iranian Minister of Oil Ghulam Hussein Hozri that Iran produced on Tuesday 4.184 million barrels daily, which is a hit record ever since the Islamic revolution in 1979. Moreover the minister further added that his country in terms to increase its oil production by the end of the Iranian year which will end on the 19th of March 2008 to 4.2 million barrels a day.

Qatar Islamic Bank in Britain Soon

Qatar Islamic Bank said that its unit “The European Finance House” has been grated a license for offering services of banking investment by the commission of financial services in Britain. The Bank said yesterday evening that the European Finance House will offer financial services in accordance with the Islamic Sharia for clients in Britain, Europe and the GCC countries.

The Emarati al Ma’abar Company Launches a Real Estate Project in Tunisia

The International al Ma’abar Company for Investment said that its about to invest $10 bn for holding the biggest real estate project in the African content. Project is considered a unique achievement on the South part of the Mediterranean, and it is an integrated modern city comprising and international health city, and water canals similar to the Italian and the Dutch water canals, as well as tourist resorts housing and sports facilities, golf fields and markets. It is worth mentioning that the city will be built in the northern suburb of the Tunisian capital on a total space area estimated at 5000 hectares.

30% of Omantel for Selling

A governmental official said that the Sultante of Oman is considering selling a 30% share of the Omani Telecommunications Company Omantel to long term investor by September. The source further added that the government was looking to sell between 20-30% of the company, according to Reuters news agency.

Small Indexes

- A Kuwaiti architect said that Kuwait will launch a project for building a huge free zone under the name “The City of Silk”, adding that it will be the biggest building project in the Middle East with a total cost estimated $77 bn.
- The Iranian Minister Economic and Financial Affairs said that the volume of the foreign investments in Iran has risen to $10.74 billion without taking into account the oil sector.

Companies Indexes

- The giant American Time Warner Company in the field of media said that its net profits during the last quarter of last year have reached $1.03 bn with a decline of 41% compared to the same period of last year.
- The Emarati International Investment Company Al Ma’abar said that it will launch huge real estate project in the northern suburb of the Tunisian capital estimated at $10 bn.

Conferences & Exhibitions

- An intensive workshop on “Stategies of Production Marketing” started yesterday under the supervision of LG electronics company in the Jordanian capital Amman.
- Sesceko Company, specialized in the field of net works solutions, will held its annual exhibition “Sesceiko Expo 2008” in the Jordanian capital Amman on the 28th of February.

Bids

- The Real Estate “Limitless” has signed a joint cooperation agreement for developing a new town near the Russian capital Moscow that will comprise about 12.000 inhabitants.
- The Saudi Telecommunication company has announced that it signed an agreement with a number of international leading companies in France, Italy, Egypt, Lebanon, Emirate, Pakistan and India for constructing and maintaining the maritime cable which connects the kingdom with France and Italy westwards via Lebanon and Egypt, and by India eastwards via the UAE and Pakistan.
- The Libyan government has signed with “China” company for civil engineering a contract for carrying out the project of laying a real way “Sert-Masrata-and al Khomes”, as well as Al Hesha-Shabiayat al Janoub railway with a total cost of two billions and two hundred million dinars.

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.