M.V. Nair, chairman and managing director of Union Bank of India, has announced plans to open a branch in Dubai to meet the funding needs of Indian corporates in the Middle East, Khaleej Times has reported. UBI already has a representative office in Abu Dhabi since 2007, but the forthcoming branch in the Dubai International Financial Centre (DIFC) will mainly focus on foreign currency funding and trade finance requirements of non-resident Indians in the region, he said. "In [the] DIFC, we are permitted to do wholesale business and here [Dubai] the purpose would be... supporting the UAE and India trade that will be major focus," Nair told the daily.

Abu Dhabi-based Xpress Money has announced commencement of instant money transfers to Thailand-based Government Savings Bank, the Gulf Today has reported. The announcement follows an agreement between the two brands marking Xpress Money's extended reach to all 76 provinces of Thailand.

Emirates NBD has become the first UAE-based bank and the only non-Saudi bank to offer customers in the kingdom electronic bill payment facilities for utilities and government services. The provision of the utility bill payment facility is mandatory for all banks operating in Saudi Arabia, but the inclusion of government services has only been adopted by major lenders, the bank said.

 Stockholm: Swedish bank Carnegie said yesterday it was buying HQ Bank, which was closed by authorities last weekend for breaking risk rules, for 268 million crowns ($37 million) in a deal cleared by the financial watchdog.

Standard and Poor's Ratings Services has warned of future challenges facing the Gulf lenders it rates, but said they appear to be showing signs of improvement, after spending more than $20bn on loan loss provisions and investment impairments since 2008. "We believe the asset quality of Gulf banks should improve from 2011 and that their good margins and efficiency will provide a solid foundation for their return to high profitability," S&P's credit analyst Mohamed Damak said. However, improving liquidity, funding future growth, and refinancing the stock of existing debt are the next hurdles facing Gulf banks, the rating agency said.

Qatar National Bank has said it could become the controlling shareholder of PT Bank Kesawan after a planned rights offering by the Indonesian lender. The banks signed a "letter of intent" which makes the Qatari lender the "standby buyer" for the offer, Doha-based QNB said in a statement. The offer is expected to close in the first quarter of 2011.

Oman's Bank Sohar has received the Sultanate's central bank's approval to issue subordinated loans up to OR50m ($129m) on a privately placed basis, Oman Daily Observer has reported. The issue will carry a maturity of up to seven years. The issuance process has already been initiated by the bank and is expected to be completed shortly, the lender said.

Barclays Bank Egypt has said its first-half net profits rose 38% to EGP175m ($30.6m), compared to EGP126m during the same period last year, Daily News Egypt has reported. Expenses dropped 10% year-on-year, while credit losses improved from EGP74m in 2009 to EGP24m this year. The bank currently has 65 branches.

The credit rating agency Moody's has released its latest credit analysis report for the National Bank of Kuwait.

Dubai: Dubai International Financial Centre (DIFC) is working on a plan to reduce the cost of operations, including rents and fees, for firms operating from the financial free zone, a top official said on Tuesday.

"We are working on a plan to reduce the cost of operations for all firms operating from the DIFC. It will be in the interest of all. We are in discussions with all stakeholders and will have a clear picture of these new initiatives in the next three to four weeks," Abdullah Al Awar, chief executive of the DIFC Authority told Gulf News on Tuesday.

The DIFC announced that it's strategy for the next phase of growth will focus on the Middle East, Africa and South Asia (Measa) regions.

"Since its inception in 2004, the DIFC has grown to become one of the world's top international financial centres connecting the Menasa [Middle East North Africa and South Asia] region and the world. Today, the DIFC with its modern infrastructure, free-zone status and self-governing laws and courts, is globally recognised as the pre-eminent financial centre in the region," said Ahmad Humaid Al Tayer, Governor of the DIFC.

The DIFC, which was set up in 2004, now comprises 745 active registered companies — 297 regulated companies, 374 non-regulated companies and 74 retailers.

"Despite the global economic challenges, the DIFC continues to grow steadily as one of the world's established financial centres. Currently, 16 of the world's top 20 banks have established a presence at the DIFC. Meanwhile, eight of the world's largest asset managers and four of the world's five largest insurers are also based at the DIFC," the financial centre said in a statement.

Diversified mix

DIFC has a wide global mix of firms, with approximately 40 per cent of the regulated firms coming from different parts of Measa, 42 per cent from Europe and 18 per cent from the US and rest of the world. DIFC officials said yesterday that over the past year there have been significant increase in the number of firms from Asia setting up businesses here.

"We are seeing a surge in the number of top-class firms from China, Malaysia and India opening their businesses in the DIFC. Going forward we expect the pace to pick up over the course of the next few months and the trend is evident from the strong pipeline of companies applying for licences," Al Awar said.

During the first six months of 2010, the number of companies registered in the DIFC remained constant despite the economic downturn.
 
While a small number of firms have withdrawn from the DIFC, a significant number of firms from across the world have continued to set up businesses there — including first-time entrants into the region. Occupancy of the DIFC's Gate District — Gate Building, Gate Precinct and Gate Village — remains high at 92 per cent of the leasable space.

"While the DIFC continues to evolve, we have achieved a very encouraging performance so far this year, especially in light of the global economic backdrop of the last two years," Al Tayer said.

The DIFC continues to build on its internationally recognised regulatory framework and legal system in order to support the growth of financial services and commercial activities.

In July, the Dubai Financial Services Authority introduced a series of regulatory changes to the DIFC's Collective Investment Funds regime in order to make the DIFC a more attractive investment centre for both foreign and domestic fund managers.

As part of its efforts are aimed at fostering international cooperation and dialogue between parties, the DIFC Authority has signed six memoranda of understating with various jurisdictions, including the UAE Central Bank, Dubai Department of Economic Development, Hong Kong Monetary Authority, World Bank Group's Multilateral Investment Guarantee Agency, Paris Europlace and, recently, Luxembourg.

"We are now embarking on a new phase of growth and continue to act as a gateway between the Measa region and the world's capital markets. Our focus is to expand and grow our existing client partnerships," Al Awar said.