A1SaudiArabia.com

DUBAI/LONDON – Lenders to Dubai World will get a range of options including full repayment once Abu Dhabi decides how much additional support it will provide its debt-strapped neighbour, sources close to the discussions said.

Bankers in London and the Gulf are divided over how Dubai should restructure the $26 billion debt pile dogging its flagship holding company, leading the emirate to consider parallel offers in an effort to please all, the sources said.

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DUBAI – The United Arab Emirates pledged its support for Dubai on Tuesday but said the emirate had yet to ask for federal help, which analysts said would come reluctantly and with strings attached.

The UAE finance minister said the federal government would support the emirate as it negotiates a plan to restructure $26 billion in debt and said he expected a deal to be finalised soon.

State-owned conglomerate Dubai World is holding informal talks with major creditors, which include HSBC and Standard Chartered, in London this week as it finalises a deal.

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Dubai – The United Arab Emirates economy is expected to expand by 3.2 percent in 2010, in sharp contrast to an International Monetary Fund forecast of 0.6-percent growth, a minister said on Tuesday.

“The coming period will witness gradual growth, initially, picking up momentum,” UAE Economy Minster Sultan Al-Mansuri told a forum in Dubai.

He also said the oil-rich Gulf states economy grew by an estimated 1.3 percent last year, although the IMF said last month that the UAE economy had contracted by 0.7 percent in 2009 due to the global financial crisis.

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ABU DHABI – With an economy based on pumping oil and landmarks that include one of the Mideasts grandest mosques, buttoned-down Abu Dhabi has little obvious in common with freewheeling media magnets like Hollywood or midtown Manhattan.

This week, the Arab emirate is hoping the world takes another look. The city-state, best known of late for bailing out its flashier neighbor Dubai, is bringing together some of the industrys biggest names for a summit that will temporarily shift much of the worlds media and entertainment elite to a luxury hotel on the Persian Gulf.

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DUBAI – DP World shares rose to a three-week high on Sunday after a newspaper report said it may offer new shares to shareholders and troubled parent Dubai World could sell an additional stake.

The port operator, which has a market capitalisation of about $6.7 billion, is considering offering 5 percent of its shares in a rights issue, while its mother company could offer a 10 percent stake to the public, a move which could raise $1 billion, local daily The National reported.

Citing unidentified senior sources at the company, the report said DP World was aiming to become part of the FTSE 100 share index in a bid to boost liquidity and raise the stocks free float shares to 35 percent.

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LONDON – Asia-focused bank Standard Chartered earned record income and profits last year as it battled through the economic downturn, it announced on Wednesday, adding that 2010 had started well.

Chief executive Peter Sands meanwhile said that he had decided to donate his annual bonus to charity amid anger over excessive bankers pay, mirroring a move made by the boss of HSBC earlier in the week.

The London-based bank which also trades across Africa and the Middle East, said net profits rose 4.7 percent to 3.279 billion dollars (2.407 billion euros) last year compared with its performance in 2008.

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Dubai – The UAE will commission its first nuclear power plant in 2017, the countrys oil minister said on Tuesday.

“The objective is for nuclear energy to eventually account for 25 percent of the UAEs power requirements,” Mohammed Al-Hamli told an industry event.

In December the UAE awarded a South Korean group a deal to build and operate four nuclear reactors. The consortium won a $40bn deal to build and operate four nuclear reactors for the UAE, beating US and French rivals to one of the Middle Easts biggest ever energy contracts. – Reuters

Geneva – International borrowing fell sharply in the last quarter of 2009, with residents in countries with sluggish growth in particular cutting back on borrowing, the BIS said Sunday.

Borrowing fell 10 percent from the third quarter to 1.778 trillion dollars, while repayments were up four percent.

“Regional issuance patterns to some extent reflected the uneven nature of the economic recovery,” said the Bank for International Settlements.

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DUBAI – Nearly half of all mobile phone users ditch their handsets after just one year, placing thousands of valuable files at risk, according to Kingston Digital Europe Ltd, a subsidiary of Kingston Technology Corporation, the independent world leader in memory products.

A study carried out by the memory product manufacturer found that 43% of mobile phone users trade in their handsets every 12 to 18 months, with a further 12 per cent revealing that they upgrade after just six months.

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JEDDAH – The Saudi national air carrier, Saudi Arabian Airlines (SAA) said Sunday it transported some 509,713 passengers during the recent school holidays.
The airlines had earlier announced it would add 66 domestic and international flights to its operations schedule during the 10-day school spring break.
It also proclaimed it would increase the seating capacity on 56 international flights from the Kingdom to Dubai, Beirut, Doha, Cairo and Sharm El-Sheikh.
According to Abdullah Al-Ajhar, SAA’s Assistant Manager for Public Relations, some 3,775 flights carried these passengers.
He added that the school break witnessed an increase of about 105,252 passengers compared to the period a week before the break.
“SAA has succeeded in its operational plan during the spring break and has made necessary seats available to meet the travel demands during that short time,” Al-Ajhar said.
The official, who earlier said that SAA has no specific season, added that the national carrier prepares for the increasing demand on travel during holidays.
“Our offices and service centers are open to provide the best possible service that can reflect the high level of performance we have reached, and to mirror what care we offer to our customers” he said.
Al-Ajhar pointed out that 183,231 passengers were carried on 1,047 scheduled international flights while 316,952 passengers were transported on 2,639 scheduled domestic flights.
“Moreover, 47 additional international flights were operated. These carried some 3,484 travelers. On the other hand, there were 42 additional domestic flights that carried 6,046 passengers. We also increased the seating capacity of flight to Dubai, Beirut, Doha, Cairo and Sharm El-Sheikh,” Al-Ajhar said. – SG