Middle East Business News Review

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A report released by International Energy Agency (IEA) says both Kuwait and the UAE raised output in September to the highest levels in order to compensate for Libya’s turmoil. “During the third quarter of 2011, the UAE?s oil output averaged 2.53 million bpd, up from 2.48 million bpd during the second quarter,” the IEA report added. It also explained that the UAE will revert to a sustainable production capacity of 2.74 million bpd by the end of this year.

Airbus racked up an unassailable lead over rival Boeing before the start of Dubai Airshow to be held next week. According to Bloomberg, the Toulouse-based company won 1,231 net aircraft orders till October this year compared to Boeing’s 428 orders. The European airplane manufacturer said Qatar Airways will make a major announcement during the Dubai Airshow that is set to boost Airbus’ fortunes.

Italian sovereign debt crisis has severely dented profits of Dubai-based companies with Dubai Investments PJSC bearing the brunt after seeing 88 per cent of its profits diminish. Shares of Emaar Properties – developers of the world’s tallest skyscraper, as well as Dubai and Abu Dhabi stock exchanges registered a dip of 1.5, 0.5 and 0.2 per cent respectively, a Bloomberg report said. ?Investors are worried about the recent development in the eurozone and the large fluctuations in the global stock markets,? said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities.

Saudis are the super-rich people in the Middle East with 1,225 individuals from the oil-rich kingdom accumulating wealth of around $227 billion. Wealth-X said in its report that Middle East region is home to 4,490 “ultra-high-net-worth” (UHNW) individuals that represent a combined personal wealth of $705bn. The Singapore-based research and advisory firm added UAE is home to 775 multimillionaires with a combined wealth of $116bn.

Oil prices tumbled in New York Mercantile Exchange after political turmoil engulfed Italy and threatened to spillover to other troubled European countries. Futures fell around 1.9 per cent after registering record highs in more than three months. The rising cost of insuring Italian debt led to the decline of euro and other European equities. ?Further deterioration of the euro-zone crisis has shifted its focus from Greece to Italy, an economy too big to be bailed out,? said James Zhang, a strategist at Standard Bank Plc in London.

World’s largest carmaker Toyota announced it will recall nearly 2,000 of its high-end brands in the UAE after detecting a flaw that could affect steering performance. Al-Futtaim Motors, Dubai’s sole distributor, said the 2004 Avalon and Camry, and the 2004 Lexus RX330 and ES300 would require inspection in order to rectify issues with the crankshaft pulley on the V6 engine. The company statement noted that no accidents have been reported as a result of the defect.

A Reuters report suggested that bank deposit growth in the UAE has registered a sharp slowdown indicating a capital flight from the country. The report cited reasons such as low interest rates and diminishing impact of Arab Spring as the main reasons of the stalling annual growth rate of deposits at UAE banks which hit a record high of 16 per cent in April this year before dipping to 11.5 per cent in July.

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