Annual remittances sent home by expatriates in the Gulf States are estimated at ‎$40 billion and may reach $50 billion this year, said Muhammad Al Ansari, ‎chairman and managing director of UAE Al Ansari Exchange, ‎during the Money ‎Transfer Dubai Conference 2010 (March 22nd).‎

Al Ansari expects that the UAE remittance ‎markets would witness significant ‎growth in 2011, pointing out that the remittances to East Asia represent 40% of the ‎total amount, followed by Middle Eastern countries with 30% and 30% going to the remaining regions. ‎

The GCC region has over 12 million expatriates and is the second largest source of ‎private financial transfers, second only to the US. ‎

Outside funds boost Kuwait money supply

In Kuwait, the National Bank of Kuwait (NBK) reported on Wednesday (March 24th) that the money supply increased 2% in March compared with February, up 512 million dinars, boosted by a large ‎inflow of outside funds in February. ‎

This resulted in a 469 million dinar growth in Central Bank of Kuwait's (CBK) net foreign ‎assets. Much of these funds subsequently found their way to local banks, where ‎deposits increased by 481 million dinars.‎

NBK also noted that personal facilities and real estate loans fell 41 million dinars and 52 million dinars in February. These sectors were the growth leaders in ‎‎2009. ‎

Government Provides Aid to Dubai World

The Dubai government committed to supporting the plan to restructure Dubai ‎World's debt‎ by infusing $9.5 billion into the entity, said Dubai Supreme Fiscal ‎Committee Chairman Sheikh Ahmad bin Saeed Al-Maktoum ‎in a statement on ‎Thursday (March 25th).‎

The government will ‎provide $8 billion of new money to Nakheel, and the fiscal committee ‎would convert its ‎existing $1.2 billion debt claim in Nakheel into equity, the ‎statement added. ‎

According to the statement, Dubai World and Nakheel will announce today their ‎ plan to restructure their liabilities to become key partners in the ‎economic development of the UAE and Dubai.‎

Qatar Investment Authority Expands Activities

In Qatar, Sheikh Hamad bin Jassem al-Thani, prime minister and Qatar Investment Authority chief executive ‎said on ‎Tuesday (March 23rd) that the state-owned authority ‎invested $30 billion in 2009 and plans to do the same this year.‎

In November 2009, QIA, which believes that it holds $70 billion in assets, ‎announced that it will continue investing in Europe and revealed plans to extend ‎activities to the US.‎

QIA invests in a number of companies, including the British supermarket chain J ‎Sainsbury, German Porsche, British Bank Barclays and Songbird Estates and its main ‎subsidiary, London's Canary Wharf business centre. ‎

Large Islamic bank to open in Syria

Esam Janahi, chief executive officer and board member of Gulf Finance ‎House (GFH) announced that the institution will establish one of the ‎largest ‎Islamic banks in Syria under the name of Syria Finance House as part of ‎its expansion plan.‎

The new ‎15 billion Syrian pound bank will be one of the largest Islamic banks in Syria, ‎‎and it plans to provide a series of commercial and investment activities catering to the ‎‎growing demands in the Syrian market.‎

GFH‎'s expansion plan includes expanding its investments and establishing banks ‎‎that specialise in infrastructure funding in MENA, in addition to the Bahraini Khaleeji ‎‎Commercial Bank and the First Energy Bank.‎

Foreign investment to increase in Saudi Arabia

Siraj Capital‎ issued a statement on Wednesday (March 24th) saying that ‎Saudi Arabia's foreign direct investment (FDI) is expected to grow 20% in 2010. ‎

‎"We expect FDI to witness additional growth in 2010 in the range of 20% annually compared to 2009, mainly due to the continuing global recession where ‎international capital is looking for alternative markets to earn the high returns they ‎had grown accustomed to," said Tarek Kabrit, Principal of Private Equity at Siraj ‎Capital.‎