Demand for oil is now expected to remain relatively
low, after an influential survey suggested that US manufacturing
The news sent US share prices tumbling, further
undermining expectations of an economic recovery and higher demand for
And worries about a second Gulf War, potentially
disrupting Middle Eastern oil supplies, receded as well.
Traders said Iraq's diplomatic offensive over the
issue of United Nations weapons inspections was designed to head off a
US military attack and calmed market fears.
Fears that military tensions could reach crisis
levels had driven oil prices close to the $30 a barrel level during
With London's Brent Crude price setting the lead, the
US benchmark Nymex crude oil followed.
The price of a barrel for October delivery fell $1.19
or more than 4% to $27.79 — its lowest level in two weeks.
The markets are now watching the next move of the oil
cartel Opec, the Organisation of Petroleum Exporting Countries, which is
due to meet on 19 September.
Opec has pledged to keep oil prices in a range
between $22 and $28 a barrel, but tracks the price of a basket of Opec-produced
oil varieties, which currently stands at just under $27.
There has been speculation that Opec might decide to
increase its output, to put an end to the seemingly unstoppable trend of
rising prices during recent months.
UAE STILL RANKS AS PAKISTAN'S LARGEST MARKET IN
The UAE maintained its lead as Pakistan's largest
export market in the Middle East with exports to Dubai alone touching
$719.6 million for the year ended July 01 to June 02, official figures
Total exports from Pakistan to the UAE were valued at
$727.4 million. While Dubai is the main gateway in the region for
Pakistani exports, Saudi Arabia and Turkey followed next.
"Dubai is not only the largest export market for
Pakistan in the Middle East, it is also the fastest growing," a
senior official of the Pakistani embassy told Gulf News.
Exports from Pakistan to the UAE has shown a steady
growth in the last three years from $492.7 million to $625.9 million and
now to $727.4 million.
Not only has Dubai accounted for a major share of
Pakistan's exports to the UAE, it has accounted for some 50 per cent of
Pakistan's exports to the Middle East. "Dubai will continue to hold
its own as the export destination and a re-export base," said the
Pakistan's exports to Saudi Arabia during 2001-02
reached $330.4 million, up from $272.0 million the previous accounting
year. However, exports to Turkey dipped slightly to $98.2 million from
Figures relating to exports from the UAE to Pakistan
were not available. Pakistan's principal export items include cotton and
textiles, rice, leather and leather products, sports goods, surgical
instruments, meat, fruits and vegetables. Cotton products include raw
cotton, yarn, thread, bags, fabrics, hosiery and garments.
Interestingly, new non-traditional export items such
as fish and fish products are becoming an important component of
Pakistan's exports showing impressive growth in the last two years.
GULF STATES OPPOSE ATTACK ON IRAQ
Gulf oil monarchies on Tuesday rejected a US strike
against Iraq but urged Baghdad to readmit UN weapons inspectors to ward
off an attack.
The Gulf Cooperation Council (GCC) states "renew
their adherence to the decision of (last March's) Arab summit in Beirut
which rejected any military action against any Muslim or Arab country,
including Iraq," said a statement issued by foreign ministers of
the six-nation bloc at the end of a two-day meeting in this Red Sea
Such action would have "consequences that would
endanger security and stability in the Gulf region," said the
statement by the chief diplomats of Bahrain, Kuwait, Oman, Qatar, Saudi
Arabia and the United Arab Emirates (UAE).
PORTUGAL SEEKS TO DOUBLE UAE TRADE
The Portuguese Trade Centre, which recently opened in
Dubai, aims to double bilateral trade in the next five years, said a
"I would like to see a gradual increase. The
links need to be developed and then I would like to see the level of
trade between the two countries double in the next four to five
years," said Carlos Costa, trade commissioner, Portuguese Trade
The centre, which opened at Doha Tower on Sheikh
Zayed Road last month, was previously based in Saudi Arabia.
But it was moved to the UAE because of the emerging
ARAB POPULATION EXPECTED TO HIT 459M IN 2020
Arab people are expected to increase by around 180
million to 459 million in 2020 while population growth is set to remain
relatively slow in the UAE, Qatar and five other regional countries,
according to the United Nations.
By that year, Egypt's population might cross 100
million for the first time in the Arab history while the ratio of
children in most regional countries is expected to start climbing down.
In its 2002 Arab Human Development Report, the UNDP
presented two scenarios for the population growth in the region. The
first assumed stable fertility and life expectancy rates and the second
used variable annual rates.
UAE'S GDP GROWTH MAY DIP TO 1.7PC
The UAE's real GDP growth which fell to 2.9 per cent
in 2001 could drop further to 1.7 per cent in 2002 as oil production
falls in line with Opec supply-management policies, forecasts the
Economist Intelligence Unit (EIU) in its latest country report on the
However, real growth will recover to 4.1 per cent in
2003 following a pick-up in world growth and oil production, the report
While the UAE's oil output is expected to fall by 5.3
per cent in 2002, in terms of domestic demand, higher than expected oil
prices will underpin strong government spending throughout the year.
"Furthermore, relatively high oil prices and an
improving world economy will boost consumer and investor confidence in
the domestic and regional markets on which the UAE depends."
Real GDP growth will be much stronger in 2003,
rebounding to 4.1 per cent. A number of factors will underpin this
recovery, particularly a 4.3 per cent increase in oil production in line
with rising global oil demand.
BRITAIN WILL PAY BLOOD PRICE — BLAIR
Britain must be prepared to pay a "blood
price" to secure its special relationship with the US, Prime
Minister Tony Blair has told ahead of talks on Iraq with President Bush.
But Britain was not America's puppet, the prime
minister said in an interview with the BBC Two programme Hotline to the
President, to be screened on Sunday.
Meanwhile, almost 100 British and United States war
planes attacked an air defence base in western Iraq. Defence sources say
the raid was part of the enforcement of the no-fly zone, but it was much
larger than normal.
US AND EUROPE SPLIT OVER IRAQ
For months America's relations with its European
allies have been edgy and frayed. Now the US faces a full-scale
That rebellion is led by Germany's Chancellor Gerhard
Schroeder. He has said "no" in the strongest terms to German
support for any US-led military action against Iraq.
He has also dressed down President Bush for failing
to consult his allies.
Mr Schroeder, who faces a battle for re-election in
two weeks' time, now says he would oppose military action, even if the
UN Security Council were to give its backing to the use of force.
HIGH-TECH GATEWAY TO DUBAI
More than 1,200 passengers have passed through the
fast-track e-gate at Dubai International Airport since it was set up on
Lieutenant Khalid Lootah, Head of the IT Department
at the Dubai Naturalisation and Residency Department (DNRD), said that
another e-gate will be installed next month for businessmen.
The e-gate is the first of its kind in the Middle
East and the third in the world. This advanced passenger clearance
system helps accelerate the movement of passengers with the help of
BAHRAIN INDEX UP 6.72 POINTS
The Bahrain Stock Exchange (BSE) index for July
closed at 1819.19 points, marking an increase of 6.72 points above
previous month's closing index, official figures showed.
Results indicated that 687 transactions took place
with a volume of 18,408,687 shares worth BD5,023,371.
GROUP 4 SECURITAS WINS NBAD CONTRACT
Group 4 Securitas has secured a contract from
National Bank of Abu Dhabi (NBAD) to handle the bank's cash management
and total solutions.
An agreement was signed by Khamis Buharoon, head of
domestic banking, NBAD, and Fuad Tannous, group managing director, Al
Hamed Enterprises Group, the joint venture partners of Group 4 Securitas
in the UAE.
STRUCTURE FOR THE ISSUE OF EUROBONDS
The classical structure of 'eurobond' issues involves
or requires the presence of three groups:
The managers who arrange the issue.
The underwriters who are normally a large group of financial
institutions who agree among themselves to underwrite the issue in case
investors do not subscribe.
The selling-group who are professional dealers in securities who place
the bonds with their clients.
In many cases, there may be only two groups —
managers and underwriters. The subscription agreement is normally
between the managers and the issuer and this agreement includes the
terms upon which the managers agree to purchase or procure purchasers
DSS DONATES MONEY FOR PALESTINIANS
A total of Dh859,140 generated through Modhesh Fun
City entrance fees has been donated to the Sheikh Mohammed bin Rashid Al
Maktoum Charitable and Humanitarian Establishment, to aid Palestinian
The move is in line with the decision of the Dubai
Summer Surprises (DSS) 2002 office on July 25, to donate the income from
the City from that date onwards, to Palestinian children.
STANCHART STUDIES BIG PRESENCE IN DIFC
Standard Chartered Bank is seriously considering
establishing a presence at the Dubai International Financial Centre (DIFC),
where the multinational bank may open shops for more than one activity.
Speaking to Gulf News, Andrew Duff, chief executive
officer, UAE and head of corporate banking, Gulf, said that the bank's
board members had already visited and held discussions with DIFC top
brass a few months back, on the future course of action.
AL KHAZNA NET PROFIT DOWN
Al Khazna Insurance Co (Al Khazna) has posted a net
profit of Dh12.66 million, down 33 per cent compared to Dh19.1 million
earned in the first half last year.
DIGITAL PRODUCTS SALES PROP UP MARTS
Extremely buoyant sales for digital-based products
helped prop up growth in the local consumer electronics markets in the
year to date, according to a senior industry source. Growth for the
overall market this year in quantity terms is estimated at 5 per cent.
However, revenues may have remained flat, primarily
because of the drop in prices in major product categories, the official
VIOLENCE ERUPTS IN LEBANESE CAMP
At least two Palestinians and a Lebanese soldier have
been killed during a gunfight in al-Jalil refugee camp in Lebanon.
Many more were wounded in the fighting, and Lebanese
tanks are still surrounding the camp, near the eastern town of Baalbek.
The clashes erupted when the soldiers raided offices
of an organisation linked to the Palestinian guerrilla leader, Abu Nidal,
who was found dead in Baghdad last month.
The Lebanese army rarely enters Palestinian refugee
camps, which are controlled by various armed factions and considered
beyond government authority.
LIBYA PLACES HUGE HYUNDAI ORDER
The Libyan government is providing Hyundai Motor with
its biggest-ever single export deal.
South Korea's biggest car maker has won an order to
export 26,373 compact cars to the North African country, the biggest
export deal not just for Hyundai but also for the South Korean car
Hyundai has declined to say how much the order is
worth, saying only that it has never before received a single order for
so many cars.
Motor analysts have valued the deal at $240m
(£153m), a welcome boost to the South Korean car industry, which is
about to lose government tax break on domestic sales.
BUSH OPPOSES US SANCTIONS ON SYRIA
US President George W Bush has told Congress that he
opposes a bill to introduce economic sanctions against Syria.
"I want to confirm that my administration
disapproves [of the] Syrian Accountability Act and has made this clear
to the Congress," the president's Middle East envoy David
Satterfield told journalists in Beirut after meeting with Lebanese
President Emile Lahoud.
The bill would ban US investment or trade with Syria
until Damascus closes "offices of Palestinian movements based in
Syria, like Hamas and Islamic Jihad".