Markets across the region rallied yesterday, with Dubai venturing further into bull-market territory, after Greece received a €130 billion (Dh631.72bn) EU bailout.
The Dubai Financial Market (DFM) General Index rose 1.7 per cent, with Abu Dhabi's main benchmark climbing 0.9 per cent to its highest level since October 2. Saudi Arabia's Tadawul All-Share Index rose 0.8 per cent to its highest intraday level since October 2008.
A bull market is defined as an increase of 20 per cent or more. The DFM has risen 22.6 per cent since January 16.
"Today's deal means risk is on and people will be more willing to invest in emerging markets, including the Middle East," said Timothy Ash, the head of emerging-market research at Royal Bank of Scotland in Dubai.
The rally follows the agreement by euro-zone finance ministers to a €130bn support package for Greece after they persuaded private bondholders to take huge losses.
The cash was needed to help Greece to avoid a messy default next month.
The EU also raised the possibility of increasing an emergency bailout fund to €750bn to act as a further safeguard against the risk of a break-up of the euro zone.
Dubai and other regional financial markets have remained in the doldrums in recent months after anxious investors pulled out cash as the euro-zone debt crisis deepened.
At their lowest point, the region's bourses lost US$33.4bn (Dh122.68bn) in market capitalisation in the first half of last year as problems in Greece and other euro-zone nations combined with the Arab Spring to sour sentiment.
Signs of progress in fighting the crisis may help to tempt investors in from the sidelines.
"While concerns clearly remain about Greece and the European situation in general, the news should be positive for broader investor sentiment," said Chavan Bhogaita, the head of markets strategy at National Bank of Abu Dhabi (NBAD).
Improving confidence may also help to ease potential bond sales that have been put on hold until uncertainty lifts from capital markets. Dolphin Energy was among firms that delayed bond issues last year.
Borrowing costs also surged for companies needing to refinance debt.
"It could be that some issuers would come to the market at a better pricing," said Fawaz Abu Sneineh, the head of debt capital markets at the NBAD. "The positive feedback from Greece helps spreads to tighten in emerging markets."
The move could also spur more companies to approach markets, Mr Abu Sneineh said.
"A lot of issuers will be more actively considering coming to market if they're not already doing so," he added.
But market turbulence was likely to remain as the euro zone's debt crisis lingered, he warned.
If the single-currency area makes progress with resolving its debt situation, the region is likely to gain from higher oil prices, say analysts. Oil prices were mixed yesterday after positive news about Greece's bailout were offset by worries about oil supplies from Iran. The price of North Sea Brent crude dipped to $119.45 per barrel in London in midday trading yesterday after hitting its highest level in nine months on Monday.
"The potential benefits from an improvement in the Greek debt resolution would be mainly indirect, and would go through a better global sentiment supporting Asian demand. That backdrop would also most likely be supportive for oil prices, which is an obvious plus for the region," said Philippe Dauba-Pantanacce, a senior economist for Turkey, the Middle East and North Africa at Standard Chartered.
Improvement in Greece's economic outlook may also present opportunities for Gulf investors. In a signal of support for the indebted nation, Sheikh Abdullah bin Zayed, the UAE Minister of Foreign Affairs, said during a visit to Greece last month that the UAE was seeking to boost its investment in the country.
"The Gulf has had great interest in what is happening in Europe because of the strong economic ties," said Tom Connolly, the head of Middle East and Africa business at BNY Mellon Asset Management. "More specific to large and small sophisticated institutions from the region, there is a great deal of interest from a number of investors who are looking to acquire distressed or discounted assets, particularly real estate, in Greece."
tarnold@thenational.ae
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Coal Black Mornings
Brett Anderson
Little Brown Book Group
WandaVision
Starring: Elizabeth Olsen, Paul Bettany
Directed by: Matt Shakman
Rating: Four stars
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Essentials
The flights
Emirates flies direct from Dubai to Seattle from Dh6,755 return in economy and Dh24,775 in business class.
The cruise
UnCruise Adventures offers a variety of small-ship cruises in Alaska and around the world. A 14-day Alaska’s Inside Passage and San Juans Cruise from Seattle to Juneau or reverse costs from $4,695 (Dh17,246), including accommodation, food and most activities. Trips in 2019 start in April and run until September.
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MATCH SCHEDULE
Uefa Champions League semi-final, first leg
Tuesday, April 24 (10.45pm)
Liverpool v Roma
Wednesday, April 25
Bayern Munich v Real Madrid (10.45pm)
Europa League semi-final, first leg
Thursday, April 26
Arsenal v Atletico Madrid (11.05pm)
Marseille v Salzburg (11.05pm)
ENGLAND SQUAD
Joe Root (captain), Dom Sibley, Rory Burns, Dan Lawrence, Ben Stokes, Ollie Pope, Ben Foakes (wicketkeeper), Moeen Ali, Olly Stone, Chris Woakes, Jack Leach, Stuart Broad
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
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The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
more from Janine di Giovanni
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Graduated from the American University of Sharjah
She is the eldest of three brothers and two sisters
Has helped solve 15 cases of electric shocks
Enjoys travelling, reading and horse riding
