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SABIC Reports $2.4bn Profits in H1-2006

Riyadh-based Saudi Basic Industries Corporation (SABIC), reported total profits of $2.35bn in the first six months of 2006, down 10.2% year-on-year. SABIC stated that the negative impact of the rise in the prices of liquid raw materials and iron ore led to this reduction in profits. Still, the quantity of production for the first half of 2006 improved by 4.4% to 23.5 million tons, and the quantities sold amounted to 18.8 million metric tons, compared to 17.3 million metric tons for the same period last year. SABIC’s board of directors approved a cash dividend of SAR1.5 ($0.4) per share for H1-2006. SABIC’s share was last traded on Saudi Arabia’s stock exchange at SAR155 ($41).
QNB Posts 57% Increase
in H1-2006 Profits

Qatar National Bank (QNB) posted a 57% year-on-year increase in first half 2006 profits to $304m. Operating income reached $357m, up 29.2%, mainly due to a 30% increase in income from Islamic financing and a rise in net interest income. The bank’s assets as at June 30, 2006 amounted to $16bn, up 31.7% year-on-year, while loans and advances improved by 27.5% to reach $2.17bn in the same period. QNB’s share was last traded at QAR249 ($68).

Country Profile: Egypt

The Executive Board of the International Monetary Fund (IMF) concluded the 2006 Article IV consultation with the Arab Republic of Egypt in July 2006. Following their discussions with the country’s authorities and representatives of the private sector and the labor unions, IMF directors found that over the last two years, Egypt has accelerated reforms aimed at improving growth and creating employment. Growth increased from 4.9% to 5.7% in the first half of 2005/06. Inflation fell sharply during 2005, from 11.4% to 4.1%, and real interest rates turned positive for the first time in years. This was supported by the strong achievements in privatisation and financial sector reform, which had greatly increased market confidence. IMF directors expressed concern about the large fiscal deficit and therefore welcomed the government’s medium-term plan to reduce it by at least 1% of GDP per year. In addition, they praised the efforts of the Central Bank of Egypt to modernize monetary policy formulation and operations, and agreed that the current position of monetary policy appears to be largely consistent with stabilizing inflation at current levels.

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Executive Editors

Executive Editors are the collective voice of the magazine. Stories written by Executive Editors are the culmination of discussions, brainstorming, research and information-gathering by our editorial team. Over decades, our editorial team has applied a blend of seasoned expertise and a discerning eye to bring you insightful and engaging and substantive reads that eschew sensationalism.
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