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Kuwait and Iraq have signed a contract with the British energy advisory firm ERC Equipoise to prepare a study for the development of joint oil fields on the border between the two countries.

The deal will see the British advisory firm prepare studies of the joint productive border fields, Safwan-Al-Abdali and South Rumaila-Ratqa, paving the way for joint investment between Iraq and Kuwait, according to the report by the Kuwait News Agency (KUNA).

Abdul Mahdi Al Amidi, director general of Iraqi Oil Ministry’s department of contracts and petroleum licences, said: “The signing also emphasises the keenness of the (Iraqi) government and the ministry to resolve all outstanding issues between the two countries. The signing is an important step to strengthen bilateral relations.”

The border oil fields between Iraq and Kuwait had been a source of tension between the two countries before and during the 1990 war, as Iraq repeatedly accused Kuwait of drilling wells that crossed the border and pumped oil from Iraqi territory, which was denied by Kuwait.

The contract came on the anniversary of the 1990 war launched by the Iraqi former leader Saddam Hussein against Kuwait.

Source:https://www.arabianbusiness.com/energy/425234-kuwait-iraq-sign-deal-to-explore-joint-border-oilfields

Ithmaar Holding, a Bahrain-based company that is licenced and regulated as an investment firm by the Central Bank of Bahrain, has announced plans to voluntarily delist from Boursa Kuwait.

The company said it will continue to list on the Bahrain Bourse and Dubai Financial Market.

The announcement, by Ithmaar Holding chairman Prince Amr Al Faisal follows the board’s review and approval of the plan, which will be presented to shareholders for approval.

The plans are subject to the approval of relevant authorities in Kuwait and Bahrain, the company said, without giving a reason for the delisting.

Ithmaar Holding said its plans to voluntarily delist from Boursa Kuwait will have no effect on its subsidiary, Ithmaar Bank or any of its customers or investors.

In May, Ithmaar Holding reported a net profit of $8.62 million for the three-month period ended March 31, an increase of 79 percent compared to the same period in 2018.

Source:https://www.arabianbusiness.com/banking-finance/425364-bahrains-ithmaar-says-planning-to-delist-from-boursa-kuwait

Kuwait-based logistics giant Agility has reported second-quarter net profit of KD21.6 million, an increase of 8.1 percent over the same period in 2018.

Half-year net profit of KD41.9 million was up 7.7 percent while revenue was KD775 million, an increase of 2.5 percent over the year-earlier period.

Tarek Sultan, Agility vice chairman and CEO, said: “We had a good Q2 despite the tough environment we operate in. Agility Global Integrated Logistics (GIL) reported very good results and continues to implement its strategy to drive operational efficiency. Agility’s Infrastructure companies performed well, and key initiatives in each business unit are moving ahead according to plan.”

The global air freight market continued to be under pressure and GIL Air Freight net revenue decreased 1.8 percent as the result of lower job volume and tonnage, although the decrease was offset in part by higher yields. Q2 tonnage fell 8 percent compared to Q2 2018.

Strong ocean freight performance was driven primarily by yield improvement, despite a 2 percent drop in volumes while contract logistics growth continued in Q2 with gross revenue of KD32.8 million, a 1 percent increase from the same period in 2018.

Agility’s Infrastructure group revenue grew 21.2 percent to KD118.2 million while Agility Logistics Parks reported 15 percent revenue growth for the quarter.

Agility said it enjoys a healthy balance sheet with KD2 billion in assets.

Source:https://www.arabianbusiness.com/transport/425771-kuwaits-agility-sees-rise-in-q2-profit-despite-tough-environment

Shoppers in Dubai have even more time to find that greatest gift, perfect present or bargain buy during Eid al Adha, with malls extending opening hours for up to 10 days.

Majid Al Futtaim malls, which includes Mall of the Emirates, City Centre Deira and City Centre Mirdif, will all stay open until 1am.

The Dubai Mall will be open until 2am from August 8 to 17, while retailers at Ibn Battuta Mall will stay open until midnight with F&B outlets open until 1am.

It’s a similar story at Dubai Festival City Mall, which will also host a fireworks display by the promenade.

Eid Al Adha holidays for the public and private sector will comprise four days starting from Saturday, August 10 to Tuesday, August 13.

Also known as the festival of the sacrifice, Eid Al Adha is one of two Islamic holidays celebrated each year, the other one being Eid Al Fitr.

https://www.arabianbusiness.com/retail/425397-dubai-malls-extend-opening-hours-for-eid-al-adha-celebrations

Damac Properties has waived all registration fees for external vendors and contractors and maintenance companies, although it plans to continue with the registration process, according to a company spokesperson.

In late July, owners and residents of properties managed by Damac or Loams – the Luxury Owner Association Management Services – properties were informed of the change in policy on Thursday, July 25.

The announcement, however, met with resistance from residents, who launched an online petition calling on Damac to drop it completely. In response, the developer said it would reconsider the charge.

On Tuesday, Niall McLoughlin, senior vice president, Damac Properties, announced that the policy change would no longer be implemented.

“The registration fees for all external service providers was introduced to ensure the security of the residents in the community and to generate incremental revenue for owners associations with the objective of reducing service charges,” he said.

“After reviewing the concerns raised by residents and owners, Loams has re-evaluated the implementation process of vendor registration and work permits, resulting in the decision that hence forth all registration fees will be waived,” McLoughlin added.

However, McLoughlin said that the primary focus of the registration, which is designed to ensure safety and quality service, will continue.

“The registration process will continue to be implemented without fees,” he said.

Source:https://www.arabianbusiness.com/property/425398-damac-properties-waives-fees-for-external-cleaners-maintenance

Emirates Airline offered a first glimpse at its future Boeing 777X on Monday with a tweet showing the airplane in production at the planemaker’s US factory in Everett, Washington.

“We’re proud to see the UAE flag for the first time on the Emirates Boeing 777X,” the Emirates tweet said. “Currently in production, the 777X combines the best features of today’s @BoeingAirplanes 777 with a longer fuselage, new engines, new composite wing design, greater cabin width and seating capacity.”

In July, however, Boeing said that an issue with the 777X’s General Electric GE9X engines has led to delays in the aircraft’s first flight, although it says deliveries are still expected to progress as planned.

“The 777X programme is progressing well through pre-flight testing,” Boeing said in a statement. “While the company is still targeting late 2020 for first delivery of the 777X, while there is significant risk to this schedule given engine challenges, which are delaying first flight until early 2020.”

Arabian Business has reached out to Emirates for comment.

Source:https://www.arabianbusiness.com/transport/425423-emirates-airline-reveals-boeing-777x-in-production-in-us

Abu Dhabi’s freehold law which was introduced in April this year will result in “more bankable” property projects, according to Tariq Imam, Partner and Head of Real Estate in Middle East at London-based law firm Clifford Chance.

The new law allows foreigners investors to own land and property on a freehold lease in the following areas: Raha Beach, Reem Island, Al Reef, Lulu Island, Saadiyat Island, Yas Island, Saih As Sidirah, Masdar City, Al Maryah Island, Al Falah, Fahed Island, Hiid Al Saadiyat, Al Jurf in Ghantoot, Nurai Island, Jubail Island, Al Shamkha and Palace Breakwater.

Foreign investors in Abu Dhabi were previously limited to 99-year leases.

Speaking to Arabian Business, Imam said the law will largely impact banks and developers as real estate investments become more profitable.

“It [the freehold law] will have an impact on banks, because banks financing those developers will have to do less due diligence. They will find these projects perhaps more bankable. They will find individual home financing more bankable, because you’re dealing with investors who have a freehold interest lease. So I think there’s definitely an impact on the real estate finance side.

“I think this will also have an impact on developers, because developers with some foreign shareholding will be able to obtain freehold when they previously couldn’t,” he said.

Imam said the UAE stock exchange market will also see more movement as public joint stock companies will also be able to invest more freely in the capital’s property.

“You might have corporates looking to buy and develop their own headquarters where previously they might have been limited. I think the PJSC (public joint stock companies) change is very important in the sense that these PJSCs will now automatically be able to invest in property across Abu Dhabi when previously, they’d been limited.

“And you will hopefully have more participation in the market through those PJSCs so individuals buying shares in listed companies who can now participate in the real estate market more readily. There are a number of different participants who will be impacted beyond just the end-user or residential investor,” he said.

While existing property owners with leasehold interests may be able to switch to a freehold lease depending on their contracts, the law does not address the concern.

“For existing property owners who may have leasehold interests rather than freehold – it’s going to be interesting because that applies not just to individual residential apartment owners who have got a long-term lease, it also applies to sub-developers who have a leasehold interest in the underlying land.

“I think there will be a lot of people like that who presumably will be looking at their contracts to see whether there are provisions in those contracts to upgrade from the leasehold interest to the freehold interest and I know for a fact that there are contracts in the market which provide or anticipate this change of law and provide for the upgrade so there will be people looking at contracts, finding those provisions and working with their counter parties to understand the upgrade,” Imam said.

He added that that it “remains to be seen” how the issue of “fairness” between investors will be dealt with.

“The obvious issue is that you’ve got a lease hold property and now an equivalent investor could obtain a freehold property, what does that mean for the value of your property and the fairness position as between those two types of investors?” he said.

Source:https://www.arabianbusiness.com/property/425317-abu-dhabi-freehold-law-to-make-property-more-bankable-says-lawyer

Fashion franchise retailer Fawaz Abdulaziz Alhokair & Co has announced that it will acquire the Saudi franchise rights for 10 international food and beverage brands from Food and Entertainment Company Ltd.

The deal will see an exchange of non-core receivables valued at SR340 million ($90.5 million) with the current operator, it said in a statement.

The company said the acquisition reinforces its vision to create a stronger “shoppertainment” experience with over 10 F&B brands and 200 locations in Saudi Arabia.

Growth will be focused on targeted quick service restaurant (QSR) businesses with high margins.

The primary brands of this portfolio which make up the bulk of locations within the acquisition consist of Seattle’s Best Coffee, Cinnabon, Mama Bunz, and Molten Chocolate Café.

The remaining brands cater to the casual dining sector. Among them include Crêpe Affaire, Life with Cacao, Turkish coffee chain Kahve Dünyasi, Caffe Concerto, the restaurants Azal and Bluefin, and Sütiş.

The franchise operations of the 10 food and beverage brands recorded an EBITDA value of SR54 million against revenue of SR354 million in 2019, the statement said.

“This exciting transaction marks our company’s successful expansion into the food and beverage sector. The acquisition gives us a Kingdom-wide portfolio of strong brands that cover a wide range of tastes and products and fast-growing challenger brands with significant growth potential,” said CEO Marwan Moukarzel.

“We are very excited about this first step, the future potential of F&B, and the value it will bring for our customers. We are going to build on this to create new experiential opportunities for our customers.”

Global F&B expert Peter King recently joined as CEO of Food for Innovation Union Company to help steer the operational transition to Fawaz Abdulaziz Alhokair & Co and streamline the integration of the two brand powerhouses.

King said: “Our expansion plan over the next 5 years is an ambitious approach to F&B in Saudi Arabia. The acquisition offers scalability and better access to resources, with all the benefits of being part of a public company.”

The agreement requires that Food & Entertainment Company Ltd will be liable to compensate Fawaz Abdulaziz Alhokair & Co if the financials of Innovative Union Company fall short of the established 2020 projections.

The completion of the transaction is subject to the completion of regulatory conditions and is expected by the end of 2019.

Source:https://www.arabianbusiness.com/retail/425359-saudi-retailer-inks-90m-deal-for-new-fb-franchises

A measure of activity in Saudi Arabia’s non-oil private sector dropped in July for the first time this year, hitting a five-month low in a sign that economic growth was losing momentum at the start of the third quarter.

The IHS Markit Purchasing Managers’ Index fell to 56.6 after reaching a 19-month high of 57.4 in June. Export orders rose at the quickest pace since February 2017, but there was only a marginal increase in employment, and businesses surveyed reported lower optimism over future output.

“Saudi Arabia’s non-oil private sector started the second half of the year growing at a healthy rate,” Phil Smith, principal economist at IHS market, said in the report. “However, the survey’s indicators for output, new orders and future expectations are all signalling some loss of momentum compared with the second quarter.”

The kingdom has struggled to get its economy back on track since it contracted 0.7% in 2017, an after-effect of the oil price rout and austerity measures that hit businesses hard. Second-quarter budget data showed that a long-promised injection of government cash was finally materializing as officials try to boost growth. Gross domestic product is expected to grow 1.7% this year, according to data compiled by Bloomberg.

Source:https://www.arabianbusiness.com/politics-economics/425376-saudi-arabias-business-gauge-slowed-to-five-month-low-in-july

Despite its tiny population, Bhutan’s economic growth has led to increasing urbanisation and problems associated with biodegradable waste, which threatens the beauty of one of the most pristine environments in the world.

Bhutan’s rapid economic development over the last few decades has been striking. According to World Bank data the GDP of the country grew from USD 135 million in 1980 to USD 2.2 billion in 2016, or sixteen times. Based on its indicators, Bhutan has been recommended for graduation from Least Developed Country status by the UN.

While this is good news for the country, it is also accompanied by some negative indicators.

The National Environment Commission’s (NEC) report “Bhutan State of Environment, 2016” has pointed out that, with rapid socio-economic development, increasing population and urbanisation, the country is seeing an increase in the amount of solid waste generated. More problematically the composition of that waste is shifting from biodegradable to non-biodegradable waste.

Nedup Tshering, a retired civil servant and environmentalist who started a civil society organisation based in Thimphu, Clean Bhutan, said compared to other countries, waste in Bhutan is not a huge problem. However, it is growing rapidly, and within since 2014, when Tshering started his initiative, the waste produced by individual household has doubled from 250 grams a day per person to almost half a kilogramme per person now.

Disposable diapers are becoming a growing concern across the country as more people have started to use them and they do not degrade well even in landfills, stated the NEC report. Another issue of concern is that municipal solid waste also contains hazardous and electronic waste.

Source:https://www.eco-business.com/news/as-bhutans-economy-grows-so-does-its-waste-problem/