Capital Intelligence Raises UNB’s Long-Term Rating to A

Capital Intelligence (CI) rating agency has raised Abu Dhabi’s UNB’s (United National Bank) long-term foreign currency rating from A- to A. The bank’s short-term foreign currency and financial strength ratings were kept at A2 and A- respectively whereas a stable outlook was assigned to all the ratings. The agency noted that this upgrade is attributable to the bank’s high quality ownership (50% shareholding by the government of Abu Dhabi), good management and sustained improvement in its financials. In parallel, CI’s ratings were also affected by the balance sheet’s high proportion of liquid assets and bank placements in addition to the increase in the capitalization level.

Emaar Third-Quarter Profits Jump 107%

Dubai-based property developer Emaar reported a 107% yearly growth in third-quarter profits to $283 million resulting in a $0.14 annualized earnings per share. The company’s revenues exceeded $1 billion, up 59% year-on-year while gross profits surged by 82% to $374 million. Emaar, a joint-stock company listed on the Dubai Financial Market, is currently undergoing ten major real estate projects including Dubai Marina, Emirates Hills in addition to the world’s tallest residential building Burj Dubai which was officially launched last month. 

Country Profile: Egypt

The Egyptian Cabinet’s economic and social reforms were praised by the head of the World Bank, James Wolfensohn, who announced upon his meeting with the Egyptian Prime Minister Ahmed Nazif, the World Bank’s readiness to finance infrastructure, banking reform and education projects in Egypt. In his statement, Wolfensohn explained that the Egyptian government is taking a series of actions to promote economic growth and encourage domestic consumption. These include reductions in custom tariffs and privatization of some public-private joint venture banks. The government is also aiming for tax cuts in addition to inducing a more competitive industry. Actually, Egypt’s growth rate has reached 4% in the first-half of 2004. However, such a figure is believed to be insufficient for the reduction of the high unemployment rate and the elevation of living standards. Finally, Wolfensohn stated that Egypt’s commitment to change was absolute, advising simultaneously the Arab Republic to follow through its promises.