Regional investors will be looking at Egypt this week as quarterly earnings from two key developers are expected to give an indication of the country's property outlook after the political turmoil that began in January.
Palm Hills Developments and Egyptian Resorts are slated to release their first-quarter results in the coming days.
Many developers are being investigated for land purchases completed under the administration of the former president Hosni Mubarak, with some transactions nullified because of corruption.
"There is a lot of uncertainty. The numbers will be bad, but contingent liabilities, what we don't know, is probably going to affect trading on property companies in the short term," said Saleem Khokhar, a fund manager at National Bank of Abu Dhabi. "Investors will be looking to see if there is a resolution … At the moment you can't put a figure on it and determine whether [Egyptian property companies] will still be solvent at the end of it."
Deutsche Bank expects weak results from Palm Hills, which is facing scrutiny on 350 hectares - 9 per cent of its land bank.
Earnings at Palm Hills "remain secondary" as investors "continue to focus on land litigation that has put the value of Palm Hills in jeopardy", Nabil Ahmed, an analyst at Deutsche Bank, said in a note to clients.
In addition to the political uncertainty and land disputes, Egyptian developers are facing risks related to the execution of projects, availability of financing, slower sales and weak consumer confidence.
The quarterly reports may temporarily slow the market after its strong performance last month, said Mohammed Ali Yasin, the chief investment officer at CAPM Investment in Abu Dhabi.
"Real estate stocks should be avoided in the short term," Mr Yasin said.
Shares have rallied 6.5 per cent in Egypt since May 22, as governments and other donors pledged billions of dollars in assistance to the country.
The budget for the fiscal year starting next month forecasts expenditure of 86.5 billion Egyptian pounds, up from 69bn pounds last year, while the country's deficit is expected to widen to 10.9 per cent of GDP from 8.6 per cent this year.
"Egypt was the best-performing market in the [Middle East and North Africa] region in May, and I expect that trend to continue as it is the market that has the most catch-up to do in the Mena region since the revolution," Mr Yasin said.
In the UAE, trading of bank stocks is expected to gain momentum as investors position themselves for the end of the second quarter.
"We saw encouraging signs last week that the market's moving into the positive range in anticipation that the second-quarter results will be as good as the first quarter and confirm the belief that the pressures from the crisis on the banking sector are receding gradually," Mr Yasin said.
The Abu Dhabi Securities Exchange General Index was 2.5 per cent higher at 2,672.55 points at the end of last week, while the Dubai Financial Market General Index was up 1.3 per cent at 1,566.34.
Sultan al Suwaidi, the Governor of the Central Bank, said last week lenders should lower interest rates on loans to help businesses.
"Investors believe even if lending margins shrink, banks will benefit from higher loan volumes," said Ameed Kanaan, the general manager at AlJazeera Financial Services in Dubai.
Bank deposits in the UAE rose to Dh1.1 trillion in March, their highest level in more than two years, but banks were reluctant to lend.
The markets are also awaiting this week's Opec meeting. Ali al Naimi, Saudi Arabia's oil minister, took a cautious tack on Thursday, repeating previous comments that Opec would increase production if there was more demand for crude.
The International Energy Agency (IEA), an adviser to 28 industrialised countries, reiterated on Friday its call for Opec to boost output to reduce oil prices further.
"There is a need for more oil in the market, and we hope producing countries are reading the market signals in the way we are," Fatih Birol, the chief economist for the IEA, told Reuters.
Brent crude rose 0.2 per cent to $115.84 a barrel on Friday.
Elsewhere in the region at the end of last week, Oman's measure was 2.1 per cent higher at 6,081.76 points, Bahrain's declined 0.8 per cent to 1,339.21, Kuwait's slipped 0.2 per cent to 6,338.70 and Qatar's fell 1.5 per cent to 8,240.39. The Saudi Tadawul All-Share Index closed down 1.73 per cent to 6,624.95 yesterday.
halsayegh@thenational.ae
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
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.
Results
United States beat UAE by three wickets
United States beat Scotland by 35 runs
UAE v Scotland – no result
United States beat UAE by 98 runs
Scotland beat United States by four wickets
Fixtures
Sunday, 10am, ICC Academy, Dubai - UAE v Scotland
Admission is free
UAE currency: the story behind the money in your pockets
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
if you go
The flights
Etihad and Emirates fly direct from the UAE to Seoul from Dh3,775 return, including taxes
The package
Ski Safari offers a seven-night ski package to Korea, including five nights at the Dragon Valley Hotel in Yongpyong and two nights at Seoul CenterMark hotel, from £720 (Dh3,488) per person, including transfers, based on two travelling in January
The info
Visit www.gokorea.co.uk
Section 375
Cast: Akshaye Khanna, Richa Chadha, Meera Chopra & Rahul Bhat
Director: Ajay Bahl
Producers: Kumar Mangat Pathak, Abhishek Pathak & SCIPL
Rating: 3.5/5
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
TERMINAL HIGH ALTITUDE AREA DEFENCE (THAAD)
What is THAAD?
It is considered to be the US's most superior missile defence system.
Production:
It was created in 2008.
Speed:
THAAD missiles can travel at over Mach 8, so fast that it is hypersonic.
Abilities:
THAAD is designed to take out ballistic missiles as they are on their downward trajectory towards their target, otherwise known as the "terminal phase".
Purpose:
To protect high-value strategic sites, such as airfields or population centres.
Range:
THAAD can target projectiles inside and outside the Earth's atmosphere, at an altitude of 150 kilometres above the Earth's surface.
Creators:
Lockheed Martin was originally granted the contract to develop the system in 1992. Defence company Raytheon sub-contracts to develop other major parts of the system, such as ground-based radar.
UAE and THAAD:
In 2011, the UAE became the first country outside of the US to buy two THAAD missile defence systems. It then stationed them in 2016, becoming the first Gulf country to do so.
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
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
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
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
Sri Lanka World Cup squad
Dimuth Karunaratne (c), Lasith Malinga, Angelo Mathews, Thisara Perera, Kusal Perera, Dhananjaya de Silva, Kusal Mendis, Isuru Udana, Milinda Siriwardana, Avishka Fernando, Jeevan Mendis, Lahiru Thirimanne, Jeffrey Vandersay, Nuwan Pradeep, Suranga Lakmal.
Dubai World Cup draw
1. Gunnevera
2. Capezzano
3. North America
4. Audible
5. Seeking The Soul
6. Pavel
7. Gronkowski
8. Axelrod
9. New Trails
10. Yoshida
11. K T Brave
12. Thunder Snow
13. Dolkong
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
