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Zain board approves asset sale to Bharti-sources
The board of Kuwaiti telecoms operator Zain has approved a $9 billion sale of most of its African operations to India’s biggest telecom firm, Bharti Airtel. After two failed attempts to buy South Africa’s MTN, Bharti has succeeded in securing a presence in Africa. Zain’s African businesses were considered a target for Bharti, as they are similar in demographics to the Indian market, characterized by low income, low tariffs and a rural population. According to a London-based telecoms analyst, “Bharti’s way of operating is perfect for Africa.“
Algeria on track for rail network upgrade
Canadian engineering and construction firm Dessau has won a $38.8 million contract to design a railway line in Algeria. This contract is part of a $2.3 billion government project to revamp the country’s rail network. Dessau will carry out the preliminary and final designs for the construction of a 170-kilometer line between Bordj Bou Arreridj and Thenia in northeast Algeria. Dessau will be responsible for designing bridges and drainage structures, as well as the reconstruction of roads and other infrastructure. The railway will operate as a passenger and freight rail network, with trains able to travel at up to 160 kilometers an hour.
IMF says Gulf’s medium term outlook positive
The International Monetary Fund stated that Gulf economies could grow at a faster pace in 2010 than more developed economies. According to the Fund, even as the Gulf Cooperation Council’s short-term economic outlook is clouded by the global crisis and by recent developments in Dubai, the region’s medium-term outlook remains broadly positive, supported by rising commodity prices. Non-oil gross domestic product growth was estimated to have been about 2.8 percent in 2009, and the rebound in overall growth in 2010 is expected to be stronger than that of advanced economies. However, the IMF stated that Gulf policymakers are facing the “immediate priority” of cleaning up their banks’ balance sheets through continued recognition of losses and provisions.
