Archive for the ‘News’ Category

Though Gulf nations have certainly felt the aftershocks of Wall Street’s crash, including the UAE, which had to pump billions into their public market to sustain liquidity levels, the region may soon join a growing list of institutional and sovereign suitors seeking bargains among the ruins.  As the U.S. Congress fiddles with the terms (and moral hazards) of a $700 billion bailout, Wall Street continues to burn.  Even with the passage of the bailout, the wholesale collapse of over-leveraged companies and industries burdened by subprime toxic waste is likely to proceed, largely unabated and at an accelerated pace.

With undetermined reserves of precious metals, including gold, copper, phosphate, and bauxite, Saudia Arabia may soon rival the output of global producers such as Canada and Australia.  In addition to oil, mineral wealth will undoubtedly accellerate Saudi’s drive to diversify their economy, as evidenced by the government’s planned construction of four new cities.  For more, see article in CNN Money/Fortune Magazine.

Saudi Arabia’s state-owned Mining Co, Maaden, is eying a 9.25 billion riyals ($2.47b) IPO in July, according to the Saudi exchange. Maaden has an existing aluminum venture with Rio Tinto Alcan (NYSE: RTP; formed prior to Rio’s acquisition of Alcan last year) involving a $7b project — said to be one of the world’s largest (Reuters). Gold is currently Maaden’s leading revenue driver. The exchange’s regulator said that only Saudi investors will be able to invest in the company, with 50% of equity being offered to institutions and individuals, with the remaining half to be held by the Public Investment Fund (PIF).