Saudi quranimal billionaires in trouble

[Ulli]

Troubled Saudi groups hit bank shares

By Robin Wigglesworth

Published: July 8 2009 17:10 | Last updated: July 8 2009 17:10

The financial difficulties of the Algosaibis, one of Saudi Arabia’s richest families and one of the country’s most prominent billionaires, sent bank shares tumbling across the region.

Saudi banking stocks have shed 12.5 per cent since June 1, when Maan al-Sanea’s Saad Group first admitted that it planned to restructure its debts, outpacing the 9 per cent decline of the Saudi stock market. Samba Financial Group has lost nearly a fifth of its value since early June.

Overall, banking shares have performed better in other Gulf markets, but certain banks have slumped on worries that they are exposed to the two groups.

Abu Dhabi Commercial Bank, which has admitted to making some loans, and Commercial Bank of Qatar, which has so far declined to comment, have both declined about 18 per cent since early June. The ADX and Doha Securities market have lost 2.5 per cent and 13.6 per cent respectively

EFG-Hermes estimates that the total debt exposure of Gulf and international banks could be between $15bn and $16bn, citing press reports and not counting off-balance sheet exposures.

“In the absence of any formal disclosures by the banks on the size and nature of their exposures to the two business groups, we believe that speculation will continue to increase,” EFG-Hermes analysts wrote in a report. “We expect this to dampen investor sentiment towards the banks.”

Transparency now pays a premium. Tellingly, the banking sector in Oman – where the central bank forced all banks to declare their exposure of about $192m immediately – has gained 1.3 per cent since June 1, broadly in line with the overall Muscat stock market.

Banks in the United Arab Emirates and Saudi Arabia are expected to be among the worst hit by loans to Mr Sanea and the Algosaibi group. In a recent research note, HSBC puts the exposure of Saudi banks at between $4bn and $7bn.

UAE banks have declined to specify what they have lent to the Saudi borrowers, but Sultan bin Nasser al Suwaidi, the central bank governor, recently said the combined exposure was “significant”.

Bankers are now becoming increasingly worried that there could be more trouble lurking in the widespread Gulf practice of “name lending” to prominent families and individuals.

Some fear that other family offices and conglomerates could also be struggling to meet debt commitments in the more conservative banking environment.

Mardig Haladjian, general manager at Moody’s in Limassol, Cyprus, told the FT this week that almost every bank the rating agency had met recently as part of an examination of the regional industry had admitted to “at least two or three restructurings of customer loan relationships”.

Debt restructurings are typically long drawn-out in the Gulf, where the regulatory and legal environment is relatively undeveloped.

“There are a lot of worried credit committees now,” says a senior, Saudi-based international banker. “No one knows which one could be the next family office to struggle. Frankly, the situation is still very murky.”

Source: http://www.ft.com/cms/s/0/be3469ae-6bd6-11de-9320-00144feabdc0.html


http://www.ft.com/cms/s/0/be3469ae-6bd6-11de-9320-00144feabdc0.html

[Irish Zionist]

  they deserve to fall, but with Hussian Obama he will invest more into their oil rich economy  .

[TruthSpreader]

I hope the whole country (Saudi Arabia) gets in dept.

[Yonah]

Saudi Arabia is probably Israel's closest friend in the Middle East. Israel reportedly does a lot of secret work in Saudi Arabia and has close ties to the government. Saudi Arabia and Israel also share a common enemy. Is the Saudi monarchy were to collapse, it would be replaced either by racial Sunni theocrats or Nasserite socialists. Either way, horrible, horrible news for Israel and the oil-buying world.

[Ulli]

Saudi Arabia is probably Israel's closest friend in the Middle East. Israel reportedly does a lot of secret work in Saudi Arabia and has close ties to the government. Saudi Arabia and Israel also share a common enemy. Is the Saudi monarchy were to collapse, it would be replaced either by racial Sunni theocrats or Nasserite socialists. Either way, horrible, horrible news for Israel and the oil-buying world.

I am not so shure about this. Wahabi Muslims are the worst Muslims ever. They are funding radical Mosques all around the world. In their country are no Jews allowed, even to visit. I honestly don't think, that they are your friends.

[Yonah]

Saudi Arabia is probably Israel's closest friend in the Middle East. Israel reportedly does a lot of secret work in Saudi Arabia and has close ties to the government. Saudi Arabia and Israel also share a common enemy. Is the Saudi monarchy were to collapse, it would be replaced either by racial Sunni theocrats or Nasserite socialists. Either way, horrible, horrible news for Israel and the oil-buying world.

I am not so shure about this. Wahabi Muslims are the worst Muslims ever. They are funding radical Mosques all around the world. In their country are no Jews allowed, even to visit. I honestly don't think, that they are your friends.

Wahabis are the worst, the Saudi Arabia is not a democracy, it is a kleptocracy controlled by the House of Saud, which takes almost half of the country's annual GDP and spends it frivolously. Much of this money is given away to lesser families or to commoners. Half of Saudi Arabia, and certain the majority of those in power, want nothing more than to continue to enjoy the largess of the King.

I'm not sure whether or not Saudi Arabia allows Jews to visit. Certainly Israelis are denied entry, and those with Israeli visas in their passport might be questioned further. Saudi Arabia doesn't encourage tourism, I'm not sure if it's even allowed, but it's difficult for anyone to get a visa (other than for the Hajj). I doubt there is a blanket prohibition on Jews because I know two Jews who live in Saudi Arabia, both work for a defense contractor in Riyadh, one of whom wrote that he was Jewish on his visa application, when prompted to declare his faith. Apparently, they're only in the practice of denying visas to atheists.

Saudi Arabia and Israel might not be friends for the right reasons, but they share a common enemy and reports suggest that Mossad agents work in Saudi Arabia with the consent of the government, and that Israel regularly offers the Saudis intelligence information.