SWF Radar GCC

Rachel Ziemba writes at RGE Monitor that, “Developing Islamic banks is a key part of the goals of all GCC governments to promote domestic financial centers… GCC governments now may be stepping in in a new way, as consumers of Islamic financing.”

Thomson Reuters reports that, “Gulf Arab governments may take bigger stakes in Islamic financial companies to gain more control over the industry as demand soars for investments and financial services complying with Islamic law during an oil boom, Moody’s Investors Service said on Tuesday.”

FinanceAsia.com writes that, “Surging oil prices have given Middle East producers renewed financial muscle. More worryingly for some Western leaders, they are showing a confidence, bordering on brazenness, to exercise that strength by buying up stakes in key industries throughout the world at a time when the financial power of Western banks has been neutered by subprime and the credit crisis.”

Gulf Times reported on Friday that, “With inflation expectations for Gulf Co-operation Council countries on the rise, political disagreement is mounting about whether to let local currencies appreciate the dollar.”

Emirates Business 24/7 asked on Thursday (July 17), “What should be the stance of Gulf investors as the Western financial crisis enters a decisive phase?”

Najib Abdullah Al Shamsi, director of studies and research, GCC General Secretariat, says in an interview with Emirates Business that, “Although the UAE economy relies on crude, setting up the Emirates Investment Authority should lead to an anticipated correction in the economy’s track through diversification.”

Gulf Daily News writes that, “Sovereign wealth funds are helping to support a surge of bourse listings in the Middle East by placing big orders for new shares in an attempt to diversify their holdings, a senior banker said yesterday.”

The Khaleej Times reports that, “The GCC’s current account balance, poised to hit $350 billion in 2008, is expected to spur a 20 per cent surge in sovereign wealth funds.”

ArabianBusiness.com reports that, “Member[s] of the Gulf Cooperation Council (GCC) must ditch their currency pegs to the dollar in the face of soaring oil prices and the plummeting value of the US currency, the Abu Dhabi Department of Planning and Economy (DPE) said on Saturday.”

ArabianBusiness.com reports that, “The British building industry could be bought for the price of a single Middle Eastern mega project, analysis of the value of the country’s largest companies reveals.”