Despite the dispute, Dana Gas is pursuing its strategy of recovering outstanding receivables and stabilising its business amid difficult market conditions. WAM
Despite the dispute, Dana Gas is pursuing its strategy of recovering outstanding receivables and stabilising its business amid difficult market conditions. WAM

Markets

UAE court suspends UK injunction barring Dana Gas dividend distribution

UAE’s market regulator also asks Dana Gas to place the UK court order before courts in the country to check whether it is enforceable

Sarmad Khan
Sarmad Khan
Abu Dhabi

April 18, 2018

A UAE court has suspended a UK court decision barring Sharjah-based energy firm Dana Gas from distributing cash dividends to its shareholders in the latest move in the legal battle between the company and its creditors over the legality of its $700 million sukuk.

The Sharjah Federal Court of First Instance suspended the enforcement of the UK court orders pending referral to the UAE courts to determine their enforceability. The exisiting and future sukukholders of Dana gas have also been barred from taking legal action against the firm, according to a court decision posted on Abu Dhabi Securities Exchange, where Dana Gas shares are traded.

The company is embroiled in a legal dispute over the legality of its sukuk after it shocked creditors, including investment bank Goldman Sachs and the world’s largest asset manager BlackRock, last year when it declared its Islamic bonds illegal, citing changes in sharia law. The company argued that it was, therefore, not obliged to repay the debt, and has faced legal action from creditors as a result.

__________________

Read more:

Dana Gas says Sharjah court issues anti-suit injunction against sukukholder BlackRock

Dana Gas shares soar on its first cash dividend proposal

__________________

On March 25, the board of Dana Gas recommended distributing 5 per cent of the company's capital as a cash dividend for the financial year 2017 - which would be the first cash dividend in its trading history. The proposal was subject to shareholder approval.

In an April 8 bourse filing, the company said that it had received an injunction from the UK High Court related to the ongoing dispute with its creditors, which prevented it from paying dividends unless it also sets aside money to redeem the sukuk. Dana gas said at the time that it will challenge the injunction brought by a US-based investment advisory firm.

In a separate development, the UAE’s market regulator, the Securities and Commodities Authority asked Dana Gas to place the UK court order before courts in the country to check whether it is enforceable, according to a SCA letter posted on the bourse website.

Despite the dispute, Dana Gas is pursuing its strategy of recovering outstanding receivables and stabilising its business amid difficult market conditions.

The company last month said it received $10.4m from the sale of Egyptian natural gas condensate, as part of the Gas Production Enhancement Agreement signed with the Egyptian government in 2014 – a mechanism to restart income generation in the North African country and help pay down overdue receivables.

In February, the energy firm reported a net profit of $83m in 2017 compared with a loss of $88m a year earlier, helped by a $1 billion payment from the Kurdistan Regional Government as part of a long-running dispute over gas payments.

Dr Afridi's warning signs of digital addiction

Spending an excessive amount of time on the phone.

Neglecting personal, social, or academic responsibilities.

Losing interest in other activities or hobbies that were once enjoyed.

Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.

Experiencing sleep disturbances or changes in sleep patterns.

What are the guidelines?

Under 18 months: Avoid screen time altogether, except for video chatting with family.

Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.

Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.

Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.

Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.

Source: American Paediatric Association
if you go

The flights

Emirates fly direct from Dubai to Houston, Texas, where United have direct flights to Managua. Alternatively, from October, Iberia will offer connections from Madrid, which can be reached by both Etihad from Abu Dhabi and Emirates from Dubai.

The trip

Geodyssey’s (Geodyssey.co.uk) 15-night Nicaragua Odyssey visits the colonial cities of Leon and Granada, lively country villages, the lake island of Ometepe and a stunning array of landscapes, with wildlife, history, creative crafts and more. From Dh18,500 per person, based on two sharing, including transfers and tours but excluding international flights. For more information, visit visitnicaragua.us.

How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

THE SPECS

      

 

Engine: 1.5-litre

 

Transmission: 6-speed automatic

 

Power: 110 horsepower 

 

Torque: 147Nm 

 

Price: From Dh59,700 

 

On sale: now  

 
Five expert hiking tips
    Always check the weather forecast before setting off Make sure you have plenty of water Set off early to avoid sudden weather changes in the afternoon Wear appropriate clothing and footwear Take your litter home with you

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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