Monday, 26 Desimbr 2011
Dubai - «life»
Expected for the adoption of the Gulf Cooperation Council (GCC) of uniform rules for the inclusion of securities (stocks, bonds, instruments and units of investment funds) in financial markets, that is a positive step. He favored the weekly report of the company «Mazaya Holding» to see the next couple of years of work in those rules as a guideline in preparation for the review, working out on a mandatory basis after that, saying «that this would increase the mass of available liquidity in the markets and encourage listings cross-border and thus diversification required to obtain the necessary liquidity in the market ».
He pointed to the synchronization of this trend with a decision expected in Saudi Arabia to open the door of direct investment in the stock markets «which would constitute an incentive for the market in the medium term, Valtather short term will be a movement to buy to build new centers entirely by institutional investors and foreign residents in Saudi Arabia» . It quoted sources that Saudi Arabia's plans to open a stock market ownership limits on foreign direct investors who manage five billion dollars at a minimum, and allow to own five percent of the equity interests of each investor ».
The «advantages» that the real estate development companies big in the UAE exceeded in 2011 with difficulty, after it reached market pressures and operational in addition to the pressure of debt service accumulated to the levels paid shares of the two biggest property firms, «home» and «Sorouh», on the Abu Dhabi Securities Market to their lowest levels since it was listed. The show «that falling demand and poor liquidity in the stock market in the UAE are those of the fears on global economic growth and the question of European debt at a time warns the rating agencies of weakness faced by the global banking system, however, that the shares of real estate connected locally the property market in the UAE suffering and abundant in supply and demand in the relative scarcity at a time when companies struggling to meet their short and medium term and to maintain the flow of cash and liquidity sufficient to ensure continued operation.
Improve the conditions of real estate companies
The report noted that property stocks were the most affected in the stock markets, while the banks and institutions and the financial yield better results, as a result of improved fiscal positions and their positions during the past years after the injected Governments in the UAE funds in which to keep them active and away from hazards, making analysts expect to see a year restore shine to the next real estate stocks after reaching the bottom of the price, especially with talk of a possible inclusion in the index «Morgan Stanley» for emerging markets, in addition to inviting Saudi Arabia to transform the Gulf Cooperation Council to complete union.
But the «advantages» pointed out that the issue of debt and debt servicing in the short term will remain the most important element in determining the trends of the demand for real estate stocks in the UAE equity markets and the extent of raising liquidity levels assigned to them, «Therefore, the careful handling of the issue of service short-term debt will have a deep impact in the centers of financial companies, and will give these companies the incentive to diversify its operations and its cash flows ».
She emphasized that the vanguard of the information and analysis refers to companies overcome the UAE, especially in Abu Dhabi and Dubai this obstacle, «In the Abu Dhabi government will still Zpianih support the companies, either directly or indirectly, to help them overcome the accumulated losses as a result of changing market conditions and falling prices and weak demand, In Dubai, which managed the government in the emirate infinite debt of direct and indirect, and has pursued a clear policy to reduce exposure to funding and reduce the pressure by replacing short-term debt with another longer range and better prices check her savings in payments and to meet the obligations, which will help them in improving their financial position and budgets of public ».
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