The Gulf Countries Face the Danger of Inflation

Will the Gulf counties pay a high economic price for the surge of oil prices which granted these countries with billions of Dollars? , and will big inflation grasp the expected developmental impacts, especially that these countries have achieved an average growth rate estimated at about 7% during the last five years as a result to the big rise of oil prices and the rapid growth witnessed by the non oil sector?
Nevertheless, this expansion was accompanied by a general increase in the consumers’ prices, as the average general inflation reached last year 7%, whereas the average of the basic inflation has reached 5%, and this means a real threat for the general average economic growth. It also means that no benefit was gained by this growth.
Moreover, what has accelerated inflation is the rapid and big increase of the local demand, the increase of public and private investment expenditure, and the impacts of this increase on wages and donations which, in turn, has increased the prices.

4 Billion Dinars, Profits of the Gulf Investment House

Chairman of the Administrative Board of the Gulf Investment House has announced that it adopted the net profits it gained during the first quarter of 2008 estimated at 3,4 million Dinar compared to 2,9 million Dinar during the first quarter of last year, by 8 Fills per share compared to 7 Fills for the same period of 2007.
It is expected the bank to offer a number of investment funds in 2008 with total capital estimated at $ 150 million in the U.S. and India.

Decline at the Emirati Financial Markets

The financial market in Dubai lost yesterday 34 points which equals 60% of its value, closing at 5686 points. The decline was accompanied with "fleeing of flow cash", as it did not exceed 641 million Dirham, opposite to 180 million shares, i.e. third of the total volume of flow cash which had been circulated on Tuesday.

Revenues of Alexandria’s Bank Increase by 58%

The Egyptian "Alexandria" bank, controlled by the Italian "Intissa San Paulo" bank, has said that its net profits have risen 58% during the first quarter of 2008 , reaching 323,3 million Egyptian Pounds .The bank further said that its net profits during the first three months till the 31st of March have reached 204,8 million Pounds.
It is worth mentioning that the Italian bank bought from the Egyptian government 80 % of the bank in October 2006 $.

The Greek "Intercom" Company Concludes a Deal With Syria by 40 Million Euros

The Greek "Telecom" company for producing and manufacturing equipment of telecommunications has said that it signed a contract by a value estimated at 40 million Euros ($ 61, 82) for exporting a network of wireless telecommunications to the Syrian Telecommunications Establishment.
The project to be carried out within a period of 22 months, will provide public establishments with wireless telecommunication network allowing them to make calls at emergency cases and disasters. It is worth mentioning that the Russian " Setronics" company for the advanced technology owns a share of 51% at "Intercom" and the rest is owned by " Intercom Holdings".

Profits of Airbus Sales increase in the First Quarter of 2008

The European company foe defensive and air industries has said that it achieved net profits during the first quarter of 2008 estimated at 285 million Euro , ( $ 440 million), after it lost 10 million Euro during the same period of last year. The results were achieved following a warning by Air bus that its clients might face more delay in delivering Air bus model- A-380 planes under request by these clients.
Among the challenges facing the European company is the weak value of the American Dollar opposite to the Euro, which makes the company in front of a special problem which is the fact that it sells its products by the Dollar but pays its bill s by the Euro.

Small Indexes

- An official at the Syrian Fuel Establishment ( Mahrukat ) has said that demand on gasoline ( Solar) in the local market has declined by half following the increase of prices by 257% last month.
- Official Statistics have shown that China has become the most important exporter to Germany after Germany’s volume of imports from China was has increased by three times since 2000.

Companies Indexes

- Prices of the shares of the European companies for defensive industries and aviation " Idas" have jumped by more than 55% at early dealings at Paris stock market, following better results achieved by the company during the first quarter of this year.
- The International Investment House "Global" has said that it confirms what has been published in newspapers that it will buy a share estimated at 10,2 % from the National Company for Consuming Industries.


- The Committee for Financial Services in South Korea has said that it intends to sell its share estimated at 49% at the Korean Investment Bank owned by the state by 2010, i.e. before the set time by one year.
- A deal estimated at 150 million Euro ($ 232 million) between the main Austrian Airlines company AUI and a Saudi investment has been suspended because of "the possible conditions" which the investor imposed . It is worth mentioning that the investor was planning to acquire 20 % of the company’s shares in a deal aiming at helping the company to get rid of its problems without mentioning any further details.

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.