Nuclear Power Plants in GCC, Why?

I still don’t understand the rationale for building nuclear power plants in GCC. As a block (mainly Saudi), we have the biggest oil reserves in the world, but yet we want to build nuclear plants. I would understand if France, or Japan builds nuclear power plants for their energy needs, but GCC?

In any case, Europeans think that the GCC is the best place to build nuclear power plants. I thought of the following reasons:
- We have the best infrastructure (wrong)
- Our human capital is outstanding (wrong)
- The Middle East is a political heaven (wrong)
- … etc

Then the rationale was provided by Lady Barbara Judge, the chairperson of the UK Atomic Energy Authority. She said:

“’It's easier to build a nuclear power plant in a country that is not a democracy,’ Judge said, adding the stable nature of non-democratic countries meant there was less likely to be a change of government attitude towards nuclear power”

“She also said GCC countries were rich enough to build and maintain quality power plants and a bourgeoning press could deliver the positive message of modern nuclear power plants which emit 10% waste compared to older models”

Basically, the Lady from the “Free World” is happy that we are un-democratic, and that our journalism is senile. Talk about the allure of money.

The news are: Dow Chemical capitulates, and agrees to Buy Rohm & Haas

My previous comment on this deal:

http://bassamnoor.blogspot.com/2008/12/kuwaiti-government-is-better-off.html

- Two main shareholders of Rohm & Haas will invest as much as $3 bil in the combined chemical company
- Dow agrees to pay the original $78 / share plus penalties, which equals $16.3 bil

- To pay for the purchase, Dow will utilise:

1. $10 bil from short-term bank loan
2. $3 bil funding from Berkshire Hathaway
3. $1 bil funding from Kuwait Investment Authority ("KIA")

That's according to Wall Street Journal.

What's the role KIA playing? What's the $1 bil? Is it penalty, loan, preferred shares .... etc?

Remember that when Kuwait pulled out of the transaction, Dow threatened to sue Kuwait for fees and penalties. Then suddenly the whole threatening remarks stopped. Few weeks pass, and we read that KIA is investing $1 bil. Where’s the transparency?

Abu Dhabi Trashes Dubai in Tourism Performance

Gulf News: “The Abu Dhabi Tourism Authority says that tourism in the capital city has not been severely affected by the credit crunch, with the impact limited to a seven per cent decline in hotel guests in the last three months”

Tourism in Abu Dhabi? I have never heard of anyone going to Abu Dhabi for tourism. Not now, and now before. Perhaps in 2015 when the Louvre and other projects are complete. But I think Europeans would still prefer Paris if their sole destination is the Louvre.

It’s like saying Zimbabwe has not seen its tourism affected by the global crisis. I actually dare and predict that there is ZERO change in number of tourists arriving in Harare between Q3 and Q4 of 2008. So Zimbabwe is doing great. Never mind that the number of tourists is not more than 1 ….

مروان بن غليظة: لم اتسلم شخصيا أبة رسالة من هذا النوع

نقلا عن جريدة البيان الإماراتية بتاريخ يوم الخميس 12 فبراير 2009
"نفت مؤسسة التنظيم العقاري استلامها رسالة موقعة من 300 مستثمر عقاري ومحامين ومطورين عقاريين عبروا فيها عن قلقهم على استثماراتهم العقارية في الامارة. وطالبوا فيها المؤسسة بالتدخل الفوري قبل وصول السوق إلى مرحلة (انهيار الأسعار) على حد وصف موقع زاويا داو جونز الذي نقل الخبر متهماً رئيس المؤسسة بعدم الرد أو التعليق على الموضوع.

وقال المهندس مروان بن غليطة الرئيس التنفيذي للمؤسسة في تصريحات ل(البيان): هذه الأنباء غير صحيحة على الإطلاق إذ لم أتسلم شخصياً أية رسالة من هذا النوع كما لم أتلق أي اتصال من هذا الموقع الإخباري أو غيره"

انتهى النقل

تعليقي: بغض النظر عن المشاكل العقارية في دبي وعن صحة استلام المؤسسة أو عدمه للرسالة المعنية، فإنه من غير المعقول أن يظن السيد مروان بن غليظة إنه يمثل نفسه فقط وليس مؤسسة التنظيم العقاري. فالرئيس التنفيذي لأي شركة يمثل الشركة بأكملها، وأي خطأ ينتج من الشركة يتحمله الرئيس التنفيذي إن كان عالما أو غير عالم بالأمر. وهذا ينطبق على السيد مروان. فإن لم يستلم المهندس الرسالة المعنية "شخصيا" فإن ذلك لا يمنع أن الرسالة وصلت للمؤسسة. فلنفرض بأن الرسالة فعلا وصلت للمؤسسة، ولكن لأسباب فنية أو سياسية أو اقتصادية، لم يتم تسليمها للرئيس التنفيذي. فإن حدث ذلك، فإن السيد مروان مقصر في عمله، اذ لا يعلم ما يجري في شركته التي يديرها، مما يستوجب عزله من منصبه والإعتماد على أشخاص أكثر كفؤا.

عدم وصول الرسالة "شخصيا" إليك لا يعطيك الحصانة من المسائلة.

ضاحي خلفان يقول والله العظيم إنه جذاب

(جذاب بالخليجي يعني كذاب، أي كثير الكذب)
في مؤتمر صحفي عاجل، نفى رئيس شرطة دبي صحة التقارير الصحفية التي تؤكد أن العديد من الأجانب تركوا سياراتهم بمطارات دبي بعد فصلهم من أعمالهم.

وفي بداية المؤتمر، قال ضاحي خلفان: "والله العظيم أن بنجامين (كاتب المقالة) كذب"

ونعم الرد المفحم

Mitsubishi UFJ gets Qatar Financial Centre approval

In the news, we read that the bank got an approval from the Qatari officials to open an office in Doha. It’s redundant to say “approval” in Bahrain, Qatar, or UAE. These GCC countries are attracting and inviting foreign banks and companies to establish offices or branches in their respective jurisdictions. So why is it an “approval” when the applications are already “pre-approved” and solicited?

I have never heard or read that a foreign bank was refused to operate in any part of these three countries.

Imagine reading that Dubai financial authorities rejected HSBC Bank’s application to open an office? Blasphemy.

Better sentences to use include:
“Qatar Financial Centre invites Mitsubishi UFJ to open an Office”“Qatar Financial Centre gets Mitsubishi UFG’s Approval“

Makkah 'Smart City' Project to Start next Year

From Khaleej Times, “The implementation of infrastructure projects to develop Makkah into a smart city would start next year…”

Turn Makkah into a smart city? As oppose to? Was Makkah an “idiot” city before?

Marketing marketing. Please use sensible words.

It’s time to buy media companies, enough of financial institutions!

For long, we, Middle Eastern Investors, took a passive investment approach in the stocks and bonds of global companies. More recently, we threw a big chunk of our oil money in ailing US & European financial institutions. Did we invest due to Western political pressure or we thought it made business sense to invest? I do not have enough evidence to figure out the answer.

Consider ADIA’s $7.5 billion investment in Citigroup. When the deal was struck in Nov 07, it was viewed as a bargain when Citi’s shares were trading at $30 per share. I do not know what a bargain is when Citi is currently trading at $3.50 per share (88% down from Nov 07). Other examples are roughly the same, of course in negative.

We had enough of financial institutions. It is time to diversify. Oh, did I mention that the New York Times Co. is up for sale? How come we are NOT interested? With all the bad publicity that we are getting in the American and European press, it makes political sense to buy into media companies. Since we are going to lose 88% of our money anyway, why not at least get some intangible benefits such as good publicity?

However, I will not recommend an investment that does not make business sense. I am sure there are other media companies in dire financial circumstances and are disparate for cash. Find one that makes business and media sense and invest for the long-run (i.e. greater than 10 years).

Imagine buying Fox News Channel, or the CNN? Waw

Gulf Finance House Admits to Offer Unsuccessful Projects to its Investors in the Past

In a recent telephonic interview with Zawya, Jinesh Patel, a senior executive director at Gulf Finance House, said:

“Conditions around the world are very challenging now but good opportunities are there and we will be very selective," Patel noted, adding that GFH will only offer to clients what the bank believes would be "ultimately successful".

Ultimately successful? Does he mean that previous projects were ultimately unsuccessful? Very strange.

Why do we need foreign farm lands? It's a losing proposition

Recently, few GCC countries began purchasing farm lands in foreign countries to secure food imports and reduce cost of food (thus lower inflation). Qatar is buying 40,000 hectares of farm land in Kenya, while UAE and Saudi Arabia reportedly bought farm lands in Pakistan and Sudan for the same purpose. While I understand the rationale of our governments, the mechanics of these agreements are fragile. First, it is a bad publicity for our governments to be seen buying lands from poor countries to feed the already over-weighted populations of GCC citizens. It’s like taking the bread of a beggar to feed the son of the king.

Second, if global food shortages occur, and famine struck farm land countries, these agreements will not be honored, precisely at the exact time that food is required. The governments of Kenya, Pakistan, and Sudan will nationalize these farms to feed their citizens, a valid pretext, or else their citizens will perish and revolutions will take place.

So what’s the point of buying these lands? In good times, you can buy food from anywhere, and in bad times, the farms will be nationalized and we will lose our investments and food source.

In any case, we are an obese nation; we should cut on our food imports.