Saudi Arabia is planning’ to repatriate windfall oil funds /Gulf Times , Saudi Arabia Monetary agency /
~ Saudi Arabia, which exported crude oil worth about $163bn last year,
~ said it will repatriate some of its windfall invested abroad to finance petroleum, utility and other expansions
~ there are big projects, in fact mega projects, that are lined up for investment
~ according to Hamad Saud al-Sayari, Saudi Arabia’s central bank governor
~ some of the kingdom’s surplus funds will be parked temporarily abroad
~ he was attending a meeting at the Bank for International Settlements
~ Members of the Organisation of Petroleum Exporting Countries, of which Saudi Arabia is the biggest,
~ account for 5.4% of US bonds held by governments, central banks and international agencies, more than Germany, Hong Kong and France
~ overseas investment helps reinforce dollar’s value, holding down US borrowing costs and supporting consumer spending
~ market psychology now is such that this might bring the dollar down
~ according to Steve Brice, Standard Chartered Plc’s head of research for the Middle East and South Asia
~ dollar is 11% below level it was a year ago against common currency of 12 European countries
~ Opec nations increased their purchases of US Treasury securities 57% in two years to the end of 2005
~ according to official figures that reflect only part of the oil cartel’s holdings
~ 11 members of Opec are Saudi Arabia, Iran, Venezuela, Iraq, United Arab Emirates, Kuwait, Nigeria, Libya, Indonesia, Algeria and Qatar
~ their holdings peaked in February at $67.6bn during a first-quarter surge in oil prices
~ price of crude oil in New York rose 37% in 2005 to average $56.70 a barrel, according to data compiled by Bloomberg,
~ reaching a record $70.85 in August and prices have averaged $63.35 a barrel,
~ will probably fall and stay below $60 a barrel because of a decline in demand in the second quarter and a build up of oil stocks
~ Saudi Arabia will still generate a current account surplus, a measure of trade that includes services and investment income,
~ that is at least equal to last year’s $101bn, its seventh straight surplus
~ there are lots of uses for those petrodollars and, even if they will not be used today, they will be used tomorrow
~ there are many projects, but they can’t absorb the money now
~ The kingdom has drawn up a list of government and private investment projects in
~ infrastructure, chemicals, power and water worth $624bn for which it’s seeking foreign participation,
~ Arab News cited secretary general of the foreign trade development committee at the Saudi Chambers of Commerce Industry
~ Saudi Aramco is spending at least $50bn on projects including expanding oil production capacity, and developing refinery and chemical complexes
~ Saudi Arabia’s oil exports increased 54% last year to a 22-year high,
~ Samba Financial Group, country’s second- biggest bank, forecast
~ Oil exports will average $130 to $200bn a year until the end of the decade,
~ generating government budget and current account surpluses, according to Samba, formerly Saudi American Bank
~ Foreign assets at the central bank, Saudi Arabian Monetary Agency,
~ more than tripled in three years to $159bn by Jan. 31 from $42bn
~ of the assets, 68% is invested in foreign securities, 17% is deposited with foreign banks
~ and the remainder held in foreign exchange reserves according to Bloombers

»29 countries surpass one billion worth of IPOs /Deccan Herald/
~ No fewer than 29 countries - including Brazil, Egypt, Greece, India, Israel, Kazakhstan, Malaysia, Poland,
~ Saudi Arabia, South Korea and the UAE - each hosted more than $1 billion worth of IPOs in 2006
~ 2006 shows an increased interest in markets including the Middle East, South Korea, India and Brazil
~ Capital raised around the world rose by one-third to hit $167 billion, the highest level since 2000,
~ while deal numbers remained steady at 1,537, compared to 1,516 in 2004
~ 2005 was a watershed year for IPO activity in the Middle East and Africa:
~ soaring liquidity from oil revenues contributed to many big ticket IPOs raising more than $500 million each
~ in the United Arab Emirates (UAE), Saudi Arabia, Oman, Lebanon and Egypt
~ UAE alone saw issues worth $1.9 billion compared to just $0.5 billion in 2004
~ In the next few years, assuming the necessary political stability,
~ Middle East is likely to become an important source of IPO activity as oil revenues are recycled into the local economy
~ Asia continues to be a hotbed of activity. Towed along by mainland China and Hong Kong's continuing strength,
~ other economies in the area displayed vigorous IPO activity, notably Malaysia, Taiwan, South Korea, and India
~ One of the three biggest deals to date this year was Lotte, the South Korean Department Store,
~ which raised $3.5 billion when it dual-listed in London and Seoul
~ India has evoked lively investor interest and will continue to do so
~ while amounts raised fell from $2.9 billion to $2.3 billion in 2005, reflecting fewer privatizations,
~ numbers of transactions surged from 21 to 53
~ many Indian IPOs have been oversubscribed 20 to 30 times in markets that have been scaling record levels
~ in Latin America, Brazil saw an increase in both the amount of capital raised
~ up 48% to $1.8 billion, and the number of transactions up 20% on the previous year
~ Brazilian companies currently account for one-third of all Latin American listings on the New York Stock Exchange