India-UAE to sign security cooperation pact

June 19, 2009

The government today agreed to sign a pact on security cooperation with the United Arab Emirates (UAE) for establishing an institutional framework to fight terrorism. The decision was taken at a meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh. "The agreement will establish an institutional framework for cooperation between India and UAE in their fight against terrorism in all its forms," Home Minister P Chidambaram told reporters after the meeting. The agreement is likely to help in curbing activities of terrorists and organized criminal groups indulging in drug and human trafficking, besides dealing in weapons, ammunition, explosives, and radioactive and nuclear materials. Money laundering, circulation of counterfeit notes and cyber crime will also be addressed, he added. It will also provide for mutual technical assistance including exchange of professional expertise and training of security and law enforcement personnel and organising seminars and conferences, Chidambaram said. The government has earlier signed similar agreements and Memorandum of Understandings (MoUs) with Cambodia, Cyprus and Vietnam.

Saudi-Indian ties set to grow

July 3, 2009

Saudi Arabia and India are poised to become strong global as well as regional partners with a vision to restore peace and security in the Middle East, Asia and the world at large. “The planned visit of Indian Prime Minister Manmohan Singh to the Kingdom in the near future will further strengthen this partnership after the historic visit of Custodian of the Two Holy Mosques King Abdullah to India in 2006,” said Saudi Ambassador-designate to India Faisal Hassan Trad in an interview with Arab News. “In fact, the Kingdom's relation with India is multifaceted with both countries sharing a common perception on various global and regional issues,” said Trad, who will be flying to New Delhi today.

A veteran diplomat, 54-year-old Trad has served at several Saudi embassies, including in London and Brussels. He served as ambassador to the Arab League in Cairo from 2001 to 2004. Trad, who was ambassador to Japan prior to his appointment as ambassador to India, has also held several key positions and posts in the Ministry of Foreign Affairs. In his interview, Trad covered the multifaceted relations between Saudi Arabia and India. On the political front, the ambassador-designate said the two countries had, in a broader sense, shown a remarkable understanding on extremely important issues that include a shared vision of world peace, stability and justice. The current level of political and commercial exchange between the Kingdom and India is a significant step that holds wide ramifications for bilateral relations between the two countries, he said. Referring to the progressively growing bilateral relations between India and Saudi Arabia, Trad said that there is a 1,000-year history of relations between the two lands. “In fact, Saudi Arabia and India share a heritage that dates back several millennia... for centuries, traders from the Arabian Peninsula crossed the Hindukush and the Arabian Sea to exchange commodities and ideas,” he said. Arabian traders, he added, served as a major link between western Asia and the Mediterranean on the one hand and the Indian coast on the other. "Over the years, scholastic and cultural exchanges and religious ties were established, which remain vibrant even today,” said Trad. He recalled that the late King Saud visited India in 1955, which was reciprocated in 1956 when the then-Prime Minister Jawaharlal Nehru visited Saudi Arabia. The late Prime Minister of India Indira Gandhi also visited Saudi Arabia in 1982. "This will be Indian Premier Manmohan Singh's second visit to Saudi Arabia, but first as prime minister," said the Saudi envoy. Singh visited Saudi Arabia for the Indo- Saudi Joint Commission meeting in 1994 when he was finance minister.“But the last 10 years, and especially after the visit of King Abdullah to New Delhi, the two countries have witnessed very intimate and frequent contacts on higher political levels,” said Trad, while attaching great importance to India as an ally of the Kingdom. Speaking about the commercial front, he said that the growth in bilateral relations had been phenomenal in the last decade. Trad pointed out that twoway trade surged over SR76 billion in 2007. This represents a 400 percent increase in two-way trade compared to 2002. “In fact, the economic and commercial linkages between New Delhi and Riyadh have been centuries old,” he said. Predicting an upswing in commercial activities, Trad said that the total number of Saudi-Indian joint ventures exceed 238 with an investment of SR6 billion. "Saudi Arabia is one of largest suppliers of oil to India, which is also one of the top seven trading partners of Saudi Arabia,” said the diplomat. A number of Saudi-Indian joint ventures, ranging from the banking and insurance sectors to the industrial and services sectors, are currently operating in both countries. “These close business ties are being translated into real joint investment opportunities and entities after the liberalization of investment rules announced by the Saudi Arabian General Investment Authority (SAGIA),” he said. “Not just goods, over 1.6 million skilled and unskilled Indians are working in the Kingdom while contributing to the growth of the country," he said, adding that the Indian community was the largest expatriate group in the Kingdom. “Indian expatriates, who are preferred in the Kingdom due to their expertise, work discipline, moderate behavior and law-abiding nature, have contributed enormously to the Saudi economy throughout the years," said Trad. The two countries have also joined hands in promoting joint projects in different sectors including education, he noted. He pointed out that India's Jamia Millia Islamia University will soon have an ultra-modern multimillion riyal medical center with support from Saudi Arabia. The two countries have also forged closer cooperation in the defense field. In May this year, two Indian naval ships - the INS Delhi and the INS Aditya - jointly participated in a naval exercise with the Royal Saudi Naval Forces at the Red Sea in Jeddah. Asked about the Saudi and Indian position on a host of regional issues, he said that the two countries had identical views on issues affecting the peace and security of the Middle East as well as on a range of other international issues. Riyadh and New Delhi also share common concerns on a host of regional issues like terrorism, Iran, Iraq, Afghanistan and the Middle East peace process. “I am happy to say that India is one of the first countries to extend diplomatic and political support to Palestinians so far as the Middle East conflict is concerned," said Trad. On cooperation in other fields, he pointed out that he would strive to further boost ties during his tenure as ambassador. He said that the Riyadhbased Institute of Diplomatic Studies and the Foreign Service Institute of India had formulated a plan to cooperate in training schemes, joint research and exchange of students. Moreover, Saudi Arabia is also the most important religious destination for Indian Muslims, who visit the Kingdom for Haj every year. “In fact, Indian Haj pilgrims are the second largest group after Indonesia,” said Trad.

India, UAE view tie-up in renewable energy sector

June 13, 2009

NEW DELHI: United Arab Emirates (UAE) Minister of Foreign Affairs Sheikh Abdullah Bin Zayed Al-Nahayan held talks yesterday with Minister for New and Renewable Energy Farooq Abdullah. The talks focused on collaboration in the renewable energy sector. Al-Nahyan arrived here on Thursday evening on a brief official visit. He called on Vice President Hamid Ansari and had talks with External Affairs Minister S.M. Krishna before leaving for Colombo, yesterday. During his meeting with Abdullah, the UAE minister expressed confidence that working together in the renewable energy sector will further strengthen Indo-UAE bilateral ties. On this, Abdullah said: "Since ages, India has had good relations with UAE. The UAE Minister has arrived to further strengthen these relations. He wants that India should cooperate with the UAE in the renewable energy sector. He wants the headquarters for renewable cooperation to be established in Abu Dhabi. I am hopeful that India will consider this request." India is known for its expertise in the renewable energy sector. The UAE minister's visit and his talks with Abdullah are viewed as significant because the UAE is competing with three European countries to host headquarters of the International Renewable Energy Agency (IRENA). During his talks with Al-Nahayan, Abdullah said that the cost of development and use of renewable energy should be made more affordable for its use by developing countries, according to official press release. As "developing countries are more in need of renewable energy," Abdullah told Al-Nahayan: "India is looking forward to bilateral cooperation with the UAE in the field of collaborative research and development." Al-Nahayan apprised Abdullah of UAE's decision to host IRENA at Abu Dhabi. "IRENA has been set up as the first international organization to focus exclusively on the renewable energy development and deployment. The prime objective of IRENA is to upscale the renewable energy development and its deployment at the global level," sources said. It aims at rapid transition toward the widespread and sustainable use of renewable energy worldwide. India is among the 93 countries, which are signatories to the IRENA Statute. "UAE has made a commitment of $50 million annually over next seven years to finance renewable energy projects in developing nations as recommended by IRENA," Al-Nahayan told Abdullah. "UAE will also provide $135 million cash and in-kind support to the IRENA during its initial years of operations, followed by a steady government support of more than $2 million annually," he said. "IRENA should take up the role of facilitating renewable energy technology development at a global level through various ways such as joint research and development, technology transfer through market mode, placing new and renewable energy technology in public domain to the extent possible and to ensure that low cost funds are available for increasing deployment of renewable energy," Abdullah said. Referring to climate change debate, Abdullah said: "IRENA should ensure efficacy and attractiveness of Clean Development Mechanism (CDM) financing for renewables." "India looks forward to IRENA both with respect to global cooperation on technology development and transfer, and also facilitating low cost funding for renewable energy projects in the developing countries," Abdullah said.

SBI to launch several private equity funds

Jun 08, 2009

After launching an infrastructure fund in collaboration with Macquaire and IFC, State Bank of India is in the process of setting up 'several' other funds to cash in on the area, which is gaining importance as an alternate asset class. "The bank is at an advanced stage in setting up a general purpose private equity fund jointly with sovereign entities in Oman. The Indian Government has designated the bank as the operationalising agency for a similar sovereign fund with Qatar. Several other funds are at various stages of formation," SBI said in its latest annual report. SBI has already set up an infrastructure fund in association with Macquarie of Australia and IFC Washington primarily aimed at investing in India's infrastructure space. "All necessary regulatory approvals have been received for operationalising the fund. Over $1 billion has been mobilised from large and well-known international investors including the sponsors," the bank said. The Macquarie-SBI Infrastructure Fund would continue to raise capital during the year. Together with Indian domestic institutions, the total capital is projected to be between $2 billion to $3 billion. Private equity is gaining importance as an alternate asset class among the Indian Inc. This primarily prompted the largest lender of the country to enter into the area, which offers attractive returns as well. "As some of the funds initiated by the bank are on the verge of operationalisation, the bank is poised to play a leading role in this promising sector in coming years," SBI said. The bank had in November last year signed a Memorandum of Understanding with the Sultanate of Oman to launch a private equity fund. The initial corpus of the fund was pegged at $100 million which could be increased to $1.5 billion over the next few years.

BPCL open to Oman Oil hiking stake in Bina refinery

June 5, 2009

Bharat Petroleum Corporation is reportedly open to the idea of offering equity in the six-million-tonne Bina refinery to Oman Oil as long as it translates into a premium on sale. The Rs 10,400-crore Bharat Oman Refineries (BORL) was conceived in the early 1990s with the two companies holding 26 per cent each and the balance earmarked for public and strategic investors. However, Oman Oil capped its investment at Rs 75 crore (or 2 per cent equity), which prompted BPCL to seek the Centre's approval for increasing its stake to 50 per cent. The equity component of BORL is Rs 4,000 crore while the debt portion of Rs 6,400 crore has been tied up. The initial public offer was put on hold last year due to poor market sentiment. Now with Oman keen on increasing its stake to 26 per cent for $250 million, it would be a win-win situation for BPCL - both in terms of getting a premium on equity and also trimming the size of the IPO. "BPCL has done most of the work on the refinery, which is scheduled for commissioning in the third quarter of this fiscal. In all fairness, it should get at least Rs 1,300 crore from Oman Oil and target a smaller IPO of Rs 750-800 crore, in the process," said a source. With the cash flow, BPCL can comfortably earmark funds for programmes such as exploration and production as well as clean fuels."The company has no issues with Oman Oil as a partner even though it wants to re-enter at this point when the refinery is nearly complete. The two have been associated with each other since the early 1990s when the project was conceptualised," said a source. Oman Oil reportedly lost interest in the project thanks to the slow pace of commissioning. At one point it was also toying with the idea of participating in the equity of Essar Oil's refinery at Vadinar, which was then closer to completion. That Oman is keen on a comeback in BORL could also be attributed to the fact that it sees tremendous potential in India's energy business, which makes it an attractive investment destination.

"Oman Oil would also prefer to divert its money to a country that has managed to weather the global slowdown, which explains its renewed interest in this refinery," said an expert. The Bina project, also known as the Central India refinery, was part of three joint sector downstream initiatives in the early 1990s. The other two were the West Coast refinery involving Hindustan Petroleum Corporation and Oman Oil and the East India project in Paradip with IndianOil and Kuwait Petroleum Corporation.

ONGC interest
The HPCL-Oman Oil venture was scrapped and IOC has since decided to go it alone with the Paradip refinery scheduled to be commissioned this year. BPCL, likewise, has had to wait long for the Bina project, which is critical to supplying products in the northern region. There was a time when ONGC was considering picking up a stake of 10-15 per cent in the refinery as part of its long-term plan to get into the downstream sector. The stage was set for a long-term alliance with BPCL but continuous delays in commissioning the project finally caused ONGC to drop out and explore synergies with IOC instead.

SBI to float PE Fund with Sovereign entity of Oman

Jun 09, 2009

The State Bank of India, which earlier set up an infrastructure fund along with Australia's Macquaire and the International Finance Corporation (IFC), is now in the process of setting up a joint venture private equity fund in Oman. SBI also has an India-focused infrastructure fund with Macquire and Washington, to boost investment in the country's infrastructure sector. The fund has mobilised over $1 billion and plans to continue fund raising activities the whole year. SBI also holds a 20 per cent stake in Mumbai-based private Sage Capital Fund Management. The bank proposes to raise around Rs20,000 crore as Tier I capital (the bank's core equity capital) in the current financial year. It is also seeking to raise funds through rights issue, which would implicate a contribution of Rs 12,000 crore from the government. The bank also plans to hire around 13,000 persons at various levels during the current fiscal, reports quoting sources at the bank said. SBI said it plans to deploy the new recruits across various businesses with objective to drive productivity. SBI said the recruitment drive is also aimed at grooming future leaders as it expands business. SBI is currently in the process of recruiting officers, marketing and recovery (rural), and technical officers (farm sector).

Oman lifts ban on import of livestock from India

June 18, 2009

On outbreak of Avian Flu in certain parts of India in the past, Omani Ministry of Agriculture, Sultanate of Oman have imposed ban on import live bird products from India. Immediately on receipt of this information, Government of India took up the matter with Omani Authorities through diplomatic channel and impressed that Avian Flu is limited to selected pockets of North Eastern Region of the country and also blanket ban on import of live bird products from entire India is unjustified. It was also impressed that the affected birds were culled and isolated to prevent further spread of avian flu.As a result of concerted efforts by Government of India, Omani Ministry of Agriculture in accordance with their Ministerial Decree No.168/2008 lifted the ban from of live bird products from India.Government of India appreciated the prompt action taken by Sultanate of Oman.

Djibouti salt miner eyeing exports to Asia by June 2010

June, 26 2009

Salt Investment SA is looking to export salt to Asia by June next year from its new plant located in Djibouti, eastern Africa, the company's chief executive officer said. The 4m tonnes/year salt plant, which utilizes salt resources from Lake Assal in the central part of the country, was currently under construction and was scheduled for completion by the first half of 2010, CEO Daniel Sutton said at the sidelines of the 13th Asian Chlor-alkali Conference in Kuala Lumpur, Malaysia. "We are looking at exporting about a million tonnes to the US and the remaining three million tonnes to Asia including India," Sutton added. India was currently a salt exporter but strong domestic demand could turn it into a net importer after three years, he said. Djibouti, with a population of only around 600,000, was a relatively littleknown country but it was strategically positioned at the mouth of the Red Sea at the Horn of Africa, Sutton noted. "The first question people often ask me is where Djibouti is but it is actually just four days away (by ship) from India," he said. Salt is mainly used for the production of caustic soda and soda ash. Chlor-alkali producers in Asia typically import salt from countries such as Australia, India and Mexico.

Qatar slashes corporate tax rate

June 25, 2009

Qatar will slash its corporate tax rate dramatically in an attempt to attract foreign investment and to make its tax regime more competitive. A new 10% rate will be applied to all foreign companies operating within Qatar replacing the previous 35% rate. Qatar is the latest Middle Eastern state to reduce corporate tax rates for foreign businesses, after Oman set its rate at 12% earlier this month and Kuwait cut its rate from 55% to 15% 18 months ago. The new rate had been under consideration for two years and it was widely expected that the rate would be cut to 12% at least. The government hopes the rate will lure international business to Qatar while poaching business from competing Middle Eastern states. "The old rate was putting people off from coming to Qatar," said Finbarr Sexton, partner at Ernst & Young in Qatar. "Qatar was seen as having one of the highest tax regimes in the Middle East and in the world." The rate cut forms part of a new income tax law which also includes tax incentives for specific industries including technology and mining. Tax revenues are expected to fall following this cut, but the government is likely to significantly reduce the amount of tax holidays that are available to businesses in Qatar. The decision to cut rates was taken after Dubai attracted large businesses with the prospect of zero corporate taxation. "A lot of companies were setting up in Dubai because Qatar wasn't a friendly tax environment because of this high rate. Qatar was looking at Dubai and felt that they had to do something because Dubai was attracting the creme de la creme," said Sexton. The new law is likely to be enacted imminently and will take effect from January

Qatar Airways orders 24 new planes

June 17, 2009

Qatar Airways will be adding 24 new Airbus A320 and A321 aircraft to its fleet over the coming years, it has been announced. The airline signed a firm contract for the new planes at the Paris Air Show this week, saying that the deal underlines its 'strong commitment towards maintaining an aggressive expansion strategy'. Qatar Airways will use the new aircraft in a two-class cabin configuration to operate flights throughout Europe, the Middle East and Asia from its hub in Doha. The first of the new planes will be delivered in November 2009, with the rest arriving gradually over the following years up to the end of 2012. Akbar Al Baker, chief executive officer of the airline, said: 'The additional Airbus A320s and A321s give Qatar Airways a firm footing in the rapid development and expansion of our regional network. 'Qatar Airways is determined to grow with the world's best aircraft at the heart of a modern and fuel efficient fleet, and this A320 family order will ensure that our narrow-body fleet is the youngest and best equipped in the region.' The carrier recently confirmed that its new flights to Amristar and Goa in India will be launched on 11 and 25 October respectively this year.

Qatar Airways unveils route launch dates for Amritsar and Goa

June 12, 2009

Qatar Airways has announced it's bringing forward the launch dates of two new Indian routes - Goa and Amritsar - in time for the busy winter holiday season. Scheduled flights to the northern Indian city of Amritsar will be launched on October 11 ahead of Diwali, the religious festival of lights. Two weeks later, beginning October 25, the idyllic beach destination of Goa will be added to Qatar Airways' growing route network in India in preparation for the inbound winter holiday traffic. Qatar Airways will be the first full-service scheduled international airline flying to Goa - a popular retreat, particularly among European holidaymakers. Both routes will be operated four-times-per-week non-stop from the airline's hub in Doha, capital of the State of Qatar. The two-class Airbus A320s to be used on the route are configured with 12 seats in business and 132 seats in economy. Passengers flying on Qatar Airways from London Heathrow, London Gatwick or Manchester will have excellent connections to the late evening departures from Doha to both Goa and Amritsar. Qatar Airways currently operates 56 flights a week between Doha and India - daily non-stop services to Delhi, Mumbai, Chennai, Hyderabad, Ahmedabad, Trivandrum, Cochin and Kozhikode. The addition of Amritsar and Goa will take Qatar Airways' Indian capacity up to 64 flights a week. In March, Qatar Airways unveiled plans to widen its Indian route network by operating the two new routes at the end of 2009. Qatar Airways chief executive officer Akbar Al Baker said: "When we made the route expansion announcement during the ITB Berlin travel show in March, news spread very quickly with a lot of excitement in the market about these highly underserved destinations by international airlines. "We have since been inundated with calls from the public seeking more information about the launch dates. We are now pleased to confirm October 11 and 25 as the launch times giving Qatar Airways significantly more capacity to India. Qatar Airways currently operates a modern fleet of 68 Airbus and Boeing aircraft to 84 destinations across Europe, Middle East, Africa, South Asia, Far East and North America.

Samsung Eng wins $2.6 bln order from Algeria

Jul 6, 2009

Samsung Engineering Co. said on Monday that it had secured a $2.6 billion order from Algeria's state-owned energy group Sonatrach to expand and improve a refinery facility in Skikda, Algeria. The order was the single-biggest overseas project for a South Korean contractor, it said in a regulatory filing. A Samsung Engineering official said that the contract size was expanded from the initial $1.2 billion project awarded to the firm in May [nLC392329]. "This order is a very significant in that it establishes a strong foundation with Sonatrach and the African market," Samsung Engineering's President & CEO Yeon-Joo Jung said in the statement. Samsung Engineering is targeting 7 trillion won ($5.53 billion) in new orders and 4 trillion won in revenues this year. Shares in Samsung Engineering spiked 4.79 percent to 87,500 won as of 0012 GMT, versus the wider market's .KS11 0.2 percent rise. The contract will help increase the refinery's capacity to up to 330,000 barrels per stream day (BPSD), the statement said. Algeria has the world's 14th largest crude oil reserves and 8th largest gas reserves. ($1=1265.7 Won) (Reporting by Seo Eun-kyung and Cho Meeyoung; Editing by Jonathan Hopfner)

Morocco's 2009 growth between 5% and 6%, BAM

17 June, 2009

Morocco's 2009 growth rate is expected to stand between 5% and 6%, said the Moroccan central bank, Bank Al Maghrib (BAM), on Tuesday Following a quarterly board meeting to assess the country's economic, monetary and financial situation, BAM said in a press release that this year's growth rate would be similar to that of 2008. The release added that non-agricultural growth however would not exceed 2% in the first half of 2009 and 3% for the whole year. The African Development Bank (AfDB) had said that Morocco's 2009 growth rate would reach 5.4%, while Morocco's economic think tank, Centre Marocain de Conjoncture, had put it between 5.2 and 4.8%. Morocco's 2008 growth rate reached 5.6%, against 2.7% in 2007, said earlier this month the High Commission for Planning (HCP) in its provisional national accounts.

ArcelorMittal, Algerian firm to invest $110 mn

10 Jun, 2009

ArcelorMittal, the world's largest steelmaker, and an Algerian partner are to spend $110 million building a facility to produce iron and zinc, Algeria's official news agency reported. The facility, to be owned by ArcelorMittal and Algerian mines and iron company SOMIFER, a subsidiary of Ferphos group, will enrich iron and produce zinc. It will also include an iron ore quarry, APS news agency reported late on Tuesday. The agency, which cited unnamed SOMIFER executives, did not give details about ArcelorMittal's stake in the project. The plant will be in Algeria's eastern province of Tebessa and will produce between 1,000 and 2,500 tonnes of iron and 400 tonnes of aggregate a day, the agency reported. It said ArcelorMittal and Ferphos currently produce between 4.5 and 5 million tonnes of raw iron per year from their Ouenza and Boukhadr facilities in Tebessa province.

DPA to set UAE crude oil selling price

24 June, 2009

DUBAI: In a significant move on Tuesday, the Dubai Mercantile Exchange (DME) said Dubai Department of Petroleum Affairs (DPA) will set the official monthly selling price (OSP) for UAE's crude oil based on a differential to the settlement price of the DME's Oman Crude Oil Futures Contract. Speaking to reporters here Abdulla Abdul Karim, Director of the Department of Petroleum Affairs said, "Dubai has priced its oil in relation to the DME from the launch of the Exchange in June 2007. "Now, by announcing a forward price based on the DME Oman contract, we will signal to the markets the price of Dubai crude in relation to Oman, further strengthening the commitment to price transparency and fair value for Middle East Crude oil. Dubai has traditionally acted as the benchmark crude oil for Middle East producers, who price cargoes at a differential to published estimates of Dubai/Oman prices, typically set retroactively for the previous month. In moving to futures pricing, the OSP for month "M" will now be set in advance, with the differential set in M-3, and the final OSP calculated at the end of M-2. "The DME Oman contract continues to gain global acceptance as a fair and robust price discovery mechanism for crude oil destined for East of Suez markets." Welcoming the decision, Ahmad Sharaf, Chairman of the DME said, "This announcement, coming so quickly after the DME's second anniversary of successful trading, demonstrates the enduring strength of the partnerships that the DME enjoys with its core shareholders in the Dubai and Omani governments. The transition also reinforces the ever-growing acceptance of the DME's Oman contract as the third global crude oil benchmark, trading on the CME Globex trading platform of our other core shareholder, the Chicago Mercantile Exchange." Tom Leaver, Chief Executive Officer of the DME, added.

Egypt invites textile companies to set up shop

June 27, 2009

‘ In the frame of the mutual desire to enhance, develop and promote the bilateral trade and economic relations between Egypt and India, ’Polaris International Industrial Park (P.I.I.P)’ invites investors from India for setting up manufacturing and industrial units in Egypt. The primary focus of investment sectors could be Textiles and Garments, Automotive, Light Metal processing, Glass, Food processing, Service sectors and some other areas of possible investments.

India, Bahrain sign agreement on worker protection

June 20, 2009

India has signed an agreement with Bahrain to ensure safety of Indian workers and to protect them from exploitation by unscrupulous employers. Employers in Bahrain who want to recruit Indian workers will now have to specify the nature of work they will be doing and the required professional skills, India's Ambassador to Bahrain George Joseph said. They would also have to detail the duration of contract, the salary agreed to and end-of-contract benefits, healthcare facilities as also the number of holidays. The agreement was signed during the visit of minister for overseas Indian affairs, Vayalar Ravi, to Bahrain. Bahrain hosts around 3,50,000 Indian workers, out of which around 2,75,000 are in the construction industry and household sector. "This deal means the Indian government now has in place labour and manpower co-operation agreements with all Gulf countries, except Saudi Arabia, to protect workers," the Indian envoy said. He said the Bahrain government is also reviewing its labour laws in order to reform them. The two countries, he said, will also constitute a joint committee consisting of officials from Bahrain's labour ministry and the overseas Indian affairs office to ensure that directives in the agreement are implemented.

5% customs duty raises demand for local steel

June 10, 2009

Demand for locally produced steel has increased since the UAE government reintroduced the 5% customs duty on steel and cement, senior industry officials have said. According to RAK Steel CEO, Ajay Aggarwal, the advantage with locally produced steel is the flexibility as the local mills can produce steel according to the customers' specifications. In addition, payment cycle is also reduced which is a preferred aspect in the current times of severe liquidity crunch. Last March, the UAE Government removed the 5% customs duty on the import of steel and cement following a drastic increase in prices and a shortage of stocks. Earlier this year, local producers had demanded the reintroduction of customs duty stating that cheap exports to the UAE, coupled with a global slowdown were creating a glut in the local market.

Bank Muscat sells HDFC stake

July 01, 2009

Bank Muscat said it had a pretax profit of about 21 million rials ($54.5m) from the sale of its 0.5% stake in HDFC Bank, India's third-biggest lender by market value. In April, the bank said that it had sold about 81% of its 2.67% stake in HDFC at a profit of 35.3 million rials.

Citigroup downgrades Bank Muscat

June 18, 2009

Citigroup has downgraded Bank Muscat to 'hold' from 'buy', citing the significant rise in the company's stock price over the past 12 weeks and on concerns related to the outlook for asset quality, Reuters reported. Citigroup, however, has raised its price target on the stock to $8.12 from $7.80, citing the potential gain from Bank Muscat's sale of its remaining 0.5% holding in India's HDFC Bank. The sale is expected to be concluded within a month.

Flydubai service to Indian city hits glitch

July 6, 2009

Dubai's budget airline, Flydubai, has hit its first operational glitch, acknowledging it was still trying to work out 'the final few pieces' of the service it plans to launch later this month to Chandigarh, India. Flydubai had expected its flights to the city to arrive there at around 11pm and take off again before midnight; however, The Times of India reported that the Indian Air Force does not allow civilian planes to operate at Chandigarh after 10pm. 'The final few pieces of the operation are being worked out now and we do not anticipate any issues that cannot be resolved,' Flydubai's CEO, Ghaith Al Ghaith said in the statement.

Dubai Industrial City inks deal with Bank of Baroda

June 24, 2009

Dubai Industrial City has signed a memorandum of understanding with Bank of Baroda to finance investors across the light and medium industrial hub. Ashok K. Gupta, Chief Executive, GCC Operations of Bank of Baroda has pledged the lender's support to DI's clients in setting up their projects from the conceptual stage through execution. For large projects, the bank will take full responsibility by underwriting and arranging the syndicated loans and leveraging their relationship with other banks to support projects, he said.

India's Kingfisher flies to Dubai

June 27, 2009

India's Kingfisher Airlines has launched its daily direct flights from Dubai to Bangalore. The flight will take off from Dubai at 10:10 pm and reach Bangalore at 3:45 am, the following day. Kingfisher Airlines flights operate from Terminal 1 of Dubai Airport. Flights from Bangalore will leave at 6:15 pm and will reach Dubai at 8:55 pm, local time.

NasAir to launch India route

June 07, 2009

Saudi Arabia-based budget airline National Air Services has announced plans to launch India operations by year end or early 2010, according to the Saudi Gazette. The airline has also said that it plans to expand its network with India, Pakistan and Turkey.

Indian, Pakistani foreign secretaries to meet in Egypt

July 6, 2009

Foreign secretaries of India and Pakistan will meet on the sidelines of the Non- Aligned Movement summit in Egypt this month, with the issue of terrorism expected to dominate the discussions. Foreign Secretary Shivshankar Menon told the media here that the core issue between the two sides would be 'terrorism'. 'The meeting is likely to take place at Sharm-el-Shiekh. We will do exactly what we have been asked to do by our leaders,' Menon said. 'Pakistan will report what action it has taken to issues raised by us. We will tell our concerns (about Pakistani territory being used for terror activities in India). Terrorism will remain the main issue.' The comments follow India's repeated demands that Pakistan should take action against its terrorists who masterminded the bloody attack on Mumbai in November 2008 killing about 170 people. Prime Minister Manmohan Singh had met Pakistan President Asif Ali Zardari on the sidelines of the Shanghai Cooperation Organization in Russia last month. It was the first meeting between top leaders of the two countries after peace talks between both sides were suspended following the Mumbai terror attack.

Sudan scraps gum arabic monopoly to liberalise market

Jun 09, 2009

Sudan, the world's biggest producer of gum arabic, has scrapped a government monopoly on the production and export of this naturally-sourced, 'Rolls-Royce' of gums widely used in food and drink formulations. For nearly 50 years, the state-owned Gum Arabic Company has held the monopoly on exports, but on sliding figures the government has taken the decision to liberalise the business. Obtained from Acacia trees in the gum-belt of Africa, the top producers - Sudan, Chad and Nigeria - bring about 45,000 tonnes of gum arabic to the market each year. Sudan supplies more than two-thirds of global demand, in a world market valued, by Leatherhead Food International, at $210m in 2007. But set against the backdrop of war-torn Sudan, trade for the country in this natural resource has become more challenging. With the crumbling of structures across the country, the trust and confidence of buying companies in the world will, arguably, have been impacted. A Reuters report last week quotes Sudanese government agricultural official, Mohammed Ali Dingel, as saying exports had fallen to about a third of the 30,000 tonnes a year the African state used to produce. This is a situation that leading ingredients companies who supply gum arabic, such as Alfred L Woolf, have adapted to, ensuring stocks and supply channels to their customers. "The market has existed for a very long time, and people involved in this very specific trade have their channels and sources in place. We know what we are buying, and from where," Anita Benech, at German gum firm Alfred L. Wolff, tells FoodNavigator.com. And commenting on the move - a political and economic decision at the highest level - to dissolve the Gum Arabic Company (GAC), Benech says "I don't think it will change the face of current business". Major importing ingredients firms on the ground in Sudan have established, and developed, their supply networks over a period of years, if not decades.

(Source: Assocham)