The Sovereign Funds: The Economic Phenomena Of the 21st Century

The sovereign funds are not a new phenomena, rather the history of some of these funds goes back to 1953, but they started to activate considerably during the last few years to the extent that we can call these funds the economic phenomena of the 21st century.
During the last 6 months only, the sovereign funds have acquired, within the financial sector only, shares at giant institutions like "Morgan Stanley", "Bear Stearns", "Merrill Lynch", "City Group", and "UBS".
These funds represent a financial ghost that moves without leaving any trace behind, as a big number of these funds do not come to mention the volume of its budget.
Nevertheless, a study by "Morgan Stanley" has estimated the total volume of the budgets by $ 2, 5 trillion.
Contrary to what some think that these funds is restricted only on the Royal families in the Arabian Gulf, a number of the countries worldwide own similar funds , among them Norway, China, Singapore, and Russia, let alone that other funds have been established in Chili and Venezuela.

"Emaaar–Egypt" Reveals its New Developmental Project in "Al-Qahira Al Jadida" (New Cairo) City

"Emaar–Egypt" for Development announced yesterday details of its new project in "Al-Qahira Al-Jadida " (New Cairo) city which its developmental value is estimated at $ one billion.
A statement issued by the company has said that the architectural design of the new project is similar to that one of the American "Santa Barbara" in California state, comprising more than 1200 villas, 12100 separate houses, 3500 flats, and more than two million square meters of offices within an integrated complex for business, in addition to a developed health centre on a total space area of one million, two hotels, a shopping centre, and a modern school.
The project stretches on a total space area of 885 acres at " Al-Tajamoui Al- Khames" district in "new Cairo" city which is only 20 minutes away from the airport.

The Number of the Billionaires is Increasing

An economic report issued by "Barclays" bank has said that the coming century will witness a re-shaping of the international wealth.
Statements point out that as the main source of wealth in North America and Europe tends to own businesses and the revenues of companies, it is probably the GCC countries to shift towards the wealth of the families. Moreover, the report reviewed centers of wealth in which the U.S. came first which will witness the increasing of the number of the wealthy families in 2017 that will reach 29, 7 million families. Japan came second, as the number of the wealthy families will reach about 10, 7 million , followed by China with 409000 families.

The EU Grants Turkey a Loan of 300 Million Euro

The American Treasury has said that the European Investment bank "AIB" has granted Turkey a loan estimated at 300 million Euros with the aim of financing investments in the fields of energy, natural resources, and environmental projects.
A statement issued by the American Treasury further said that two agreements were signed with the bank for granting loans , pointing out that two thirds of the loan (200 million) will be used in financing the private and public investments as well as projects in the energy, natural resources, and projects aiming at decreasing the industrial pollution.

Kuwait Takes Part in the International American Economic Forum

Head of the Economic Directorate at the Kuwaiti Foreign Ministry, Sheikh "Ali Khalid Al-Sabah" has told the Kuwaiti News Agency Kona, on the occasion of Kuwait’s participation in the activities of the International American Economic Forum , that the forum represents " a meeting between the East and West" , underlying its importance for setting up economic, educational , and developmental strategies. He further said that Kuwait has a big volume of investments in the US and North America, as the volume of Kuwaiti exports to the US is estimated at $ 4, 5 billion, whereas the volume of the American exports to the Kuwait is estimated at $ 2, 6 billion

FAO Recommends of Pumping Bigger Investments in the Agricultural Sector

Representative of FAO in Mexico " Norman Bellino" has warned, during an interview on the sidelines of the 1st International Conference on bio-Fuel , held at " Guadalagara" city , west of Mexico, that the world will face " an indicator of danger" , because the poor countries do not have the necessary means for buying the basic goods for consuming. He further recommended of pumping more investments in the agricultural sector.
Moreover, " Bellino " was quoted by the Chinese News Agency Xinhua as saying that it is very necessary to increase the agricultural product through the modern technologies, searches, training courses, and tax exemption in addition to the strong political will for helping the poor. He concluded by saying that the current increase of food stuff prices is due to the changing policy in the agricultural field.

Small Indexes

- A source at OPEC said yesterday that the organization might hold talks on whether it was necessary to increase oil production before the next meeting due to be held next September in case oil prices continue to rise.
- Official statements have shown that the percentage of unemployment in Morocco has declined by 9,6% during the first quarter of this year opposite to 10,1% of the same period of last year , due to more job opportunities in the services and construction sectors .
- Iranian ambassador to China" Jawad Mansouri" has said that the volume of trade exchange between Iran and China in 2008 will reach $ 25 billion.

Companies Indexes

- "City Group", the biggest American banking group, has said that it seeks to sell assets estimated at $ 400 million within 2-3 years in an attempt to enhance proficiency.
- Prices of shares of the British Real Estate Development Company " Minerva" have risen by about 25% on Thursday after " Limitless" unit, affiliated by the International Dubai Group has said that it was considering offering an acquisition deal.


- " Askendia" Software Company has announced that it signed a partnership agreement with the Chinese " Huwai" stipulating on cooperation in the field of technology of telecommunications in the Middle East and Africa.


- "Al-fujaira" Commission for Culture and Media has signed an agreement of cooperation in the media sector with the Middle State , south of Sudan stipulating on offering training course within one year by the Commission for a number of media men in the Middle State in T.V., Radio , technical and administrative fields.

Indicators is a daily economic watch newsletter about the Near East, issued by New Orient News agency in Beirut, Lebanon. It is available on 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.