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May 31, 2006

Hagop Banayan joins JSCS

Hagop Banayan Joins JSCS

Mr. Hagop Banayan, ACIB has recently joined JSCS team of consultants as a Senior Strategist and Risk Manager.

Holder of the Associateship of the Chartered Institute of Bankers in England, Mr. Banayan is by far, the most eminent banker in the Middle East.
Mr. Banayan has over 40 years of experience as a senior  top level executive in the
HSBC Jordan during which he held, amongst his other important responsibilities, the post of the Corporate Banking Manager. He was also the CEO of the Export and Finance Bank. As a Senior Strategist with a vast banking experience, Hagop Banayan ACIB will lead the JSCS Strategic Planning and risk management team. 

With their full team of highly qualified and experienced bankers, JSCS become the undisputed leaders amongst the banking consultants in the Middle East. With a vision to further expand globally, the team will extend the scope of their operations to include certain parts of Europe in addition to the Middle East.        

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May 27, 2006

American Charm

American Idol www.graincon.com

American Idol" runner-up Katharine McPhee is already fielding sponsorship offers. KFC has offered the singer $10,000 and a year's supply of Famous Bowls to write and star in an advertisement, while Eat'n Park has offered her $100,000 and a lifetime supply of Smiley Cookies to record a new jingle for the restaurant chain.

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May 25, 2006

The English Hope after Rooney

Steven Gerrard www.graincon.com

Liverpool captain Steven Gerrard of England in action against Northern Ireland

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Leonardo da Vinci (1452-1519) - The Last Supper (1495-1498).jpg

The Last Supper
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May 24, 2006

Jerusalem - Palestine The City of Peace

All Roads Lead to you
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President George W. Bush

President George Bush www.graincon.com

George W. Bush is the 43rd President of the United States. He was sworn into office on January 20, 2001, re-elected on November 2, 2004, and sworn in for a second term on January 20, 2005. Prior to his Presidency, President Bush served for 6 years as the 46th Governor of the State of Texas, where he earned a reputation for bipartisanship and as a compassionate conservative who shaped public policy based on the principles of limited government, personal responsibility, strong families, and local control.

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May 23, 2006

world cup

world cup www.graincon.com
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World Cup Trophy

World Cup Trophy www.graincon.com

The Jules Rimet Cup now in the permanent possession of Brazil after their third World Cup win. Will they do it again in Germany, fingers crossed.

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The Da Vinci Code

 1www.graincon.com

In an interview made by Katie Couric with Ronald Howard, both Ronald and Catie agreed that millions will see it world wide because it is a wonderful movie. Whilst the critics hated the film and expressed their opinion in it as a normal piece of work, it will definitely not be as successful as they think, why? It is already banned in the Middle East and in many other countries, it insults the most respected and beloved holy figure humanity ever knew and it harms the feelings of more than 3billion Christians and Muslims around the globe. 

In gauging the region's response to this film, we talked to several persons and the following opinions, which clearly describe the resentment of the natives, is what we collated:

“This evil and ugly work is the typical Zionist propaganda in attacking the world’s holy symbols. Let them not rest, Christianity is much stronger than they imagine, and our Lord Jesus Christ, the son of god, the savor whose love and passion led him to give his life on the cross, is more honorable than these little lousy worms who deserve no respect whatsoever. Once again, humanity will not be effected by this satanic and evil work. In fact it will not be passed without punishment. Tom Hanks is no longer a popular actor, nor is the other actress, they have condemned themselves to alienation, they literally committed a professional suicide” shouted angry Micheline George from Demascus.  

Mr. Yacoub Sifri from Jordan said ”During his earthly life time, our lord Jesus did not commit any sins , neither by thoughts nor by acts, our Lord was totally pure. This in fact is one major difference between Christ and Adam, the later disobeyed god’s order when he ate the apple, conversely, our Lord Jesus has never disobeyed god and definitely never ate the forbidden fruit. This film is trying to shake the image of our Lord as the son of god by using deceptive perceptions; a married profit implicitly ascertain the human nature and abolish the divine character of the Son of God; the essence of this ridiculous film. I honestly don’t think it will yield any sort of encouragement from the people. Such attempts stimulate racism and create hatred. I think here is where the governments must draw the line for the freedom of ideology. No one should be allowed to move away from subjectivity in debating spiritual matters; we must not insult each other’s religions for political reasons. I guess the repercussions of this work are strongly been felt these days”.

“An outrageous daemon act this film is. We despite them, we despite their values and we despite everything they represent” said angry Ahmad Karim from Jerusalem. “They think they can deceive the people by creating a false image about Christ, no sir they can’t, our Lord Jesus in our minds and the minds of  the whole humanity is much higher and above all doubts. I can guarantee to you that this film will not achieve any success, it will not be seen by many; it is so much hated by almost every one”.

“How many times these Zionists have insulted our cultures, they started with the Quaran Karim in “The Satanic Verses”, then the cartons about our profit Mohammed and now they are insulting our Lord Jesus; who on earth gives them the right to commit such an arson, our Lord does not deserve this. They must be punished, this film shall not be but a hard smack on their skulls, let them come here and we will torn them apart…” Randa Torbey from Beirut said furiously.    

“This is certainly not an American film; it is most probably a Zionist Israeli one. We know that the great Americans who produced the Passion of Christ do not accept such an attack on the values of love, freedom and peace. America will burn their hurts, America will diminish their existence. Let those ugly zionist creatures talk no more”. Said Rami Bajalli from Amman.   

This movie is based on a novel by Dan Brown, published by Doubley Fiction. The plot of the novel involves is a dishonest accusation that the Catholic Church is covering up a story about our Lord Jesus and Saint Marry the Magdalene to keep itself in power.  The film is boring, inaccurate and sacrilegious. It is an act of spiritual arson against the Catholic Church.
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Tony Blair in Iraq

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Iraqi people are about to take charge of their own destiny and write the next chapter of Iraq history themselves," said Blair, on his yesterday's surprise visit to Iraq.

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Decoding the Da Vinci - كتاب يرد على ما جاء في كتاب شفرة دافينشي

Religion www.graincon.com
A Christian's relation with our Lord Jesus Christ is based on knowing the Lord and communicating with him spiritually. It is a living relation, therefore It transcends all written material and films no matter how media depicts it. The Da Vinci Code had little effect on Christian Faith. Christianity remains the prevailing religion and Christian populations continue to proliferate, this is because it energizes its followers and gives them peace and happiness. 

 

A detailed analysis of the film and the true story of St. Mary Magdalene can be read on   http://www.christpal.com/shobohat/el7ad/antithedavincicode/index.htm .
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May 22, 2006

Islamic Banking

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Islamic Banking is a financial field based on Islamic legal concepts (Shari'a). The term, evolved since the first decades of Islam, depends on risk-sharing as a prerequisite to initiating the credit facility whilst prohibiting financing based on a fixed pre-determined return.

 

In the credit side of Islamic Banking, the principles of risk and reward were formulated into a new bond of partnership between the parties to the banking contract as opposed to the debtor - creditor relationship in traditional banking. In simple words, the bank enters into a partnership with its customers; its revenue is its shares. Conversly, the bank receives no profits if the deal it is financing doesn’t generate any. Distinctively unique, Islamic Banking is a very popular method in countries like Saudi Arabia. Some Saudi Banks, like Al Ahli are even planning to completely turn into Islamic Banking.

A highly profitable domain, Islamic banking is quite an attractive pursuit for global banks. It is a rich source of low cost deposits and the perfect method to boost their ROAA and ROE ratios; Based on the Sharia’s principles, Muslim depositors do not accept credit interest on their deposits. 

Islamic Banking accentuates the following principles:-

a.       Total repayments of a previously granted loan must not exceed the value of the principle:  In Shari’a, only one type of loans is allowed, that is Al Qard al Hassan or the so called the Good Loan under which the bank does not charge any interest or additional amount over the loan’s principle.

b.        The Bank shares in the profits generated or losses incurred from the enterprise for which the money was financed:
Unlike the conventional banking system, Islamic finance is based on the belief that the depositor, the bank and the borrower should all share the risks and the rewards of financing business ventures.

c.       Money must not make money without undergoing the intermediate phase of purchasing and reselling goods and services:

d.      Gharar (Uncertainty, Risk or Speculation) is also prohibited:
Based on the principle of “uncertain gains” parties can not predetermine a guaranteed profit or income regardless of inflation or any other factors.

e.       Investments must not encourage practices or products prohibited in Islam: Trade in alcohol would be the obvious example here. Another example is the construction of a Casino is not allowed…etc. 
The main feature of Islamic banking is the prohibition on interest, known as "Ribba". It encourages the notion of higher risks and higher returns, the objective is that high-risk investments provide a stimulus to the economy and encourage entrepreneurs to maximize their efforts. Islam encourages investments in pursuit of a strong economy.
In Islamic Banking, The shareholders and depositors all share the risks and the rewards of financing businesses. This of course contravened commercial banking where the  borrower must pay back his loan, with the agreed interest, regardless of the success or failure of his venture.

In future articles, we will be discussing Trade Finance Operations and the consequential  inter-relationships that arise when using the concepts of Musharaka, Ijara, Murabaha, AL–Wakalah, Mudaraba, Mudarib.

Article By Yacoub Sifri,

All rights reserved, www.graincon.com
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May 21, 2006

Total to extract Saudi oil

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Thierry Breton, the French Economy and Finance Minister announced that the French Corporate Total will construct a major oil refinery at an estimated cost of 5 Billion dollars in Saudi Arabia to increase the extraction and refining of crude oil.
Total chairman Thierry Demarest said during a visit by French President Jacques Chirac to Saudi Arabia in March that he hoped to conclude a deal to build an oil refinery with a capacity of 400,000 barrels per day (bpd) in Jubail on the Gulf coast within months. It is well known that the Saudi Arabia, an oil rich provence, is an internaitonal region for the world's largest oil corporates.
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قروض البنك الدولي ليست مساعدات

World Bankwww.graincon.com 

بموجب قرار للبنك الدولي، سمح للاردن ان يسحب على قروض البنك لغاية 540 مليون دولار خلال خمس سنوات تنتهي في 2010. وقد تلطف البنك الدولي بنشر الخبر على أنه (مساعدة) للأردن. ومن المؤسف أن الصحافة الأردنية بدورها بلعت الكذبة وقدمت القرار الى الجمهور على أنه تسهيلات من البنك الدولي لمساعدة الأردن.ن

حقيقة الأمر أن البنك الدولي يريد من الأردن ان يساعده فهو اي البنك يحقق أرباحا سنوية تقاس بالمليارات، يستخلصها من الموارد المحدودة للدول النامية، وهو يقوم بجهود مضنية لتسويق القروض بهدف تحقيق الربح، وعندما وجدت مصر مصدرا افضل من البنك الدولي لتمويل مشاريع استصلاح الصحراء غضب البنك لخسارة الصفقة الرابحة.ا

قروض البنك الدولي ليست سهلة الا من حيث طول مدتها، ولكن سعر الفائدة عليها تجاري، ويضاف اليه نسبة مقابل الاخطار. وحتى لو لم يسحب القرض فان البنك الدولي يحصل من ضحاياه عمولة التزام على المبلغ غير المسحوب. وديون البنك الدولي ممتازة، فهي غير قابلة لاعادة الجدولة او التخفيض او الشطب، ولها اولوية فوق كل الاستحقاقات الاخرى. وما يقوم به البنك الدولي هو الاقتراض من السوق العالمية واعادة الاقراض للدول النامية بعد ان يضيف عمولته، اي انه يقوم بدور الكفيل بالعمولة.ا.

يذكر ان معظم قروض البنك الدولي للاردن لم تأت استجابة لطلبات تلقاها من الحكومة الأردنية، بل نتيجة عروض قدمها البنك الدولي نفسه مدفوعا بمصلحته الخاصة، ولكي يبدو القرض مبررا تم ربطه شكليا بعملية اصلاح معينة، فمثلا يقدم البنك الدولي قرضا كبيرا للخزينة لدعم عملية اصلاح القطاع العام او لدعم برنامج التخاصية، مع ان عمليات الاصلاح والتخاصية لا تحتاج للمال. وعندما كان الدكتور اشرف الكردي وزيرا للصحة استنجد بالمسؤولين لانقاذ الوزارة من ضغوط البنك الدولي لسحب قروض غير لازمة للوزارة

كان من الافضل لو ان الخبر تحدث عن (توسلات) البنك الدولي او طلبه ا لمساعدة عن طريق دفعنا للاقتراض منه، ومن ثم التفتيش عن طريقة لانفاق المال المقترض اليوم على ان تبدأ المعاناة عند الاستحقاق. واجب البنك الدولي ان يساعدنا على التخلص من المديونية وتخفيضها، وليس توريطنا بالتوغل في المزيد منها

 د. فهد الفانك

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May 17, 2006

ICC's Announcement on the UCP Revision

John Azarowww.graincon.com

The UCP 500 revision is expected to be finalized in Oct2006 announced today the International Chamber of Commerce in Paris. Without setting any definite cut-offs, the announcement neither affirmed a date for the conclusion of the revision nor anticipated a date for release of the new rules, in case they were approved.  

Notable as it is, the draft is not reflective of any changes in international banking practice as no significant changes has really taken place. This in essence means that the revision is not warranted, it is merely a rephrasing of the original articles of the UCP 500; a matter that raises many questions as to the reasons behind this lengthy process that has taken far too long than expected. Should the members of Banking Commission disagree on the current draft of the revised rules and the revision is therefore extended to another date, serious questions will be raised about the intentions of the persons behind the revision. The revision has hindered the plans of numerous banks in many part of the world especially in the Middle East where the official Arabic rules of the ICC were found to be technically misleading; because of the revision banks became confused as to the action they need taken in order to remedy the effect of the erroneous translation.

 

The new draft once released will be closely compared with the original UCP500 articles. If  the change was found insignificant and unjustifiable, the ICC’s proficiency, motives and efficiency will be questioned; is this a commercial pursuit aiming at collating profits for an institution that is based on a charitable charter? It is very well understood that the financial burden of changing the UCP500 is immense especially that banks will need to spend heavily on training staff, reorganizing their operations and adjusting their automations (systems), needless to mention about the lack of certainty concerning the workability of the new rules; will they work? This is very important especially in countries that have no or primitive commercial and banking laws and depend on the UCP500 as the source of legal principles to resolve commercial disputes in LCs transactions.

The draft under consideration, has some of the following features:
  • The number of articles were reduced to 39 articles instead of 49;
  • a new section of "definitions", containing terms such as "honour" and "negotiation"
  • a replacement of the term "reasonable time" with a definite number of days for examining and determining compliance of documents;
  • a new provision concerning addresses of the beneficiary and the applicant;
  • an expanded discussion of "original documents"; and
  • re-drafted transport articles aimed as resolving confusion over the identification of carriers and agents

The Banking Commission is meeting in Vienna today and tomorrow for a full day's discussion on the current draft; a new draft will follow in late May. Current plans are to send a final draft to the Commission for an up or down vote at its meeting in Paris on 24-25 October.

All rights reserved. www.graincon.com

John Azaro

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A new Saudi Bank

   Naturreservoir Foz de Arbayún, Navarra www.graincon.com
                                                                                                                                                                                Al Emaar is the name of the new bank the Saudi Islamic Chamber of Commerce intends to establish. With a capital of $1bn, Al Emaar will be placed amongst the major banks in the region. Chairman Saleh Kamil said investments worth $400m have been received from the Islamic from the Islamic Development Bank, Saudi Investment Bank, Kuwaiti Real Estate Bank and a UAE investor. The bank will be launched in Kuwait by the end of the month.
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May 16, 2006

FIATA latest letter on the UCP500 Revision

Holidayswww.graincon.com  

Letter from FIATA on the UCP 500 revision

April 2006


To:  

 

Members of the Consulting Group
UCP 500 Revision
ICC Banking Commission
Paris

Dear Sirs,

Latest draft of the UCP 600

FIATA remains concerned with several items that the current draft has failed to address. We have raised these issues in the past and are doing so again in the hope that they will be given some consideration.

First and foremost is the elimination of article 30 and in essence the facility thereunder for banks to readily accept transport documents issued by freight forwarders. In this regard we would like to make two suggestions.

Firstly, we noted with interest the recent article in the DCInsight publication April-June 2006 and Mr. Ole Malmqvist's comments concerning this very issue. He commented and we quote “this point is much better understood nowadays than it used to be. Accordingly the current UCP revision process provides a good opportunity to delete article 30 which is no longer needed.” While this may well be the case in developed areas of the world, we as practitioners have found that changes such as this have taken years to find roots in less developed areas of the world. In fact, this can even be true in the developed areas of the world where the issue of “clean on board bills of lading” was struggled with for years. FIATA's concern is that the FIATA bill of lading, a document which is in such wide international use and is synonymous with a forwarder's transport document, will encounter difficulties with negotiating banks in that they no longer see a facility in UCP 600 to accept such a document.

In consequence, we would like to propose that article 19 which currently reads under line 525 “a bill of lading, however named, covering a port to port shipment must appear to”: be amended to read “a bill of lading (including those issued by forwarders in their capacity as carriers, however named, etc.”. If this is not an acceptable option, we think that it is imperative that any new publications concerning the new UCP 600 and its comparison to the old UCP 500 (as was done in the case of the 400 to 500 ICC publication No. 511) clearly make reference to this change and the reason for which article 30 was eliminated and stress the fact that under the conditions of article 19 being fulfilled by the forwarders transport document that it would be acceptable.

The second issue is that of the wording in article 19 concerning transshipment, paragraph B lines 579, 580, and 581. In this regard we were pleased to see that our original suggestion garnered some support from Mr. T.O. Lee. We proposed a relatively simple and minor adjustment in the wording to resolve a problem that exists with the current wording. The addition of another item in this article which could be item e. to read “where transshipment is permitted in accordance with c. and d. of this article, the bill of lading evidencing a place of delivery which is the same as the port of discharge stipulated in the credit will be acceptable even if the port of discharge indicated thereon is different from that stipulated in the credit”.

We are also in agreement with Mr. T.O. Lee's latest comments concerning article 20, lines 646 through 647 and his suggestion that “or, if issued in more than one original, be the full set as indicated on the non-negotiable sea waybill” be replaced by “the number presented will be deemed to constitute a full set”. Here again comments concerning such an amendment should stress the fact that a sea waybill is not issued in an “original” version as all of the copies are in fact non-negotiable.

We hope that given the support of Mr. Lee concerning these last two issues and given our experience as practitioners with regard to the potential hurdles the elimination of article 30 presents us with, steps will be taken to consider our concerns and undertake the suggestion we have proposed herein.

We thank you in advance for giving serious consideration to these issues and for including them in your comments to the International Chamber of Commerce in Paris, France.

Yours sincerely,

Chris Gillespie
Chairman of FIATA

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May 12, 2006

National Bank of Abu Dhabi, a global transformation

http://www.graincon.com/services.html
In the midst of a turbulent Emirates economy, fierce international competition and huge Middle Eastern diversified markets emerges the National Bank of abu Dhabi with local culture and global status.  The NBAD have proved, beyond doubt, that their prompt responsiveness to the regions current changing economic conditions and their logistics in setting themselves ready to face the future foreseeable environment had not only earned them the respect of all market players but also placed them a tough peer for the region’s world class banks.  Strongly anticipated to shift themselves into various major banking terrains, the National Bank of Abu Dhabi continues to increase their share of Emirates investment banking products with an eye on the personal and commercial business of the region.

In their latest quarterly financial statements, the National Bank of Abu Dhabi announced net profits of AED 631 million for the first quarter of 2006, a 26% increase over the first quarter of 2005. First quarter annualised earnings per share of AED 2.06 are 26% up on the prior year period (restated for the 30% bonus shares). The annualised return on tier one equity is 34%, well ahead of the medium term target of 25%.

“NBAD’s first quarter performance reflects the focus on diversifying income sources”, said Michael H. Tomalin, Chief Executive of NBAD. “Equity markets have been more difficult for us this quarter. Equity markets are 15% down affecting our asset management and equity broking businesses. Fee and non-interest income actually declined 22% to AED287 Million in this quarter, compared with AED369 Million in the first quarter of last year. Core earnings however are growing firmly reflecting the continued growth in our business in the UAE and our international operations. Net interest income was up 73% in line with the growth of our balance sheet”, Tomalin added.

All the businesses performed well with the operating profits of Domestic Banking reaching AED 371 million, International Banking reaching AED 87 million and Investment Banking reaching AED 161 million. Head office, which is run like a business, did well with profits of AED 27 million.

Operating income rose 20% to AED 802 million and expenses rose 15% over the corresponding quarter in 2005 resulting in a cost income ratio of 19%, well below our target 30/35%.

Business volumes continued to grow with total assets reaching AED 143 billion at the end of the first quarter due to short term IPO loans included in loans and advances and sundry creditors. Excluding the impact of these IPO loans, total assets and loans were respectively 66% and 55% higher than in the first quarter of 2005. Deposits increased 36% from AED 41 billion to AED 55 billion over the same period.

Capital resources of the Bank reached AED10.1 Billion on 31 March 2006 after the successful issue of the Bank’s AED2.5 Billion subordinated convertible bond.
Net new provisions were AED 6 million compared with AED 17 million in the first quarter of 2005. Provisions are modest in comparison with the size of the Bank’s business and reflect our relatively conservative credit strategy and the quality of our assets. AED10 Million was provided for overseas tax.

Commenting on prospects for 2006, Tomalin said: “2006 will be a tougher year and the first quarter results of 2006 did not benefit from the strong local stock market conditions that prevailed at the start of 2005. Nevertheless, underlying profits of the bank continue to grow strongly. The Bank remains well positioned to take advantage of growth opportunities in Abu Dhabi, the UAE and the region more widely.”.
In a recent interview with the Banker Middle East Magazine, Tomalin announced the bank’s intentions to set up a subsidiary companies for Islamic Finance, real estate and private banking with a total capital of a decent $136Mio as part of the NBAD logistics to sweep the lions share in the market and compete against rival world class international banks.
The NBAD main strength is its large international network and highly developed investment banking business; in fact NBAD is a fund manager in addition of being a broker.
One would expect in light of the growing export business and the astonishing raise in oil prices, a shift in focus towards the trade finance business of the bank.
The 2005 financial statement of the bank has shown the following ratios that reflects the world class operating standards of the National bank of Abu Dhabi:
                                      2005                                                     2004
Total Capital Ratio          11.4                                                     11.10
Equity/Total Assets           8.75                                                     9.20
Equity/Net Loans             14.23                                                   14.64
Equity/Liabilities               9.59                                                    10.14
Operations

Net Interest Margin          2.47                                                      2.09               
Int. Rev/Assets(avgs)      2.40                                                      2.02
ROAA*                               3.69                                                      2.28
ROAE*                               41.26                                                    23.77   
Dividend Pay out             14.60                                                    33.11
 

ROAA Return on Average Assets
ROAE Return on Average Equity

All rights reserved; www.graincon.com

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May 11, 2006

Cautionary Note

 

   www.graincon.com 

Dear Friend,

It was brought to our attention that some persons in Dubai-Emirates are approaching banks, either by emails or direct visits, and introducing themselves as members of our staff or representatives of our office. Please note that we don't have any representatives or staff in UAE or in any other country in the Middle East.

We only communicate with our customers and contacts by solicited emails and through one of our Senior Consultants whose names are mentioned on our website page "About Us".

If you have doubts about any email that appears to have been sent by us or if you wish to authenticate any of our messages, please email us on investigate@graincon.com and we shall reply to your inquiry with immediate attention.

Furthermore, please forward any fraudulent or abusive email to fraud@graincon.com and we shall take every possible action against the lousy perpetrators.   

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May 10, 2006

SECURITIES

The Securities Industry

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The word “securities” is derived from a Latin word meaning “without worry”. Today securities are written undertakings acknowledging a debt, or the written acknowledgement of a payment of money.   

The USA legal definition of securities is:  “An investment in an enterprise with the expectation of profit from the efforts of other people; Any note, stock certificate, bond, debenture, check, draft, warrant, traveler's check, letter of credit, warehouse receipt, negotiable bill of lading, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, pre-organization certificate or subscription, transferable share, investment contract, voting-trust certificate; valid or blank motor vehicle title; certificate of interest in property, tangible or intangible; instrument or document or writing evidencing ownership of goods, wares, and merchandise, or transferring or assigning any right, title, or interest in or to goods, wares, and merchandise; or, in general, any instrument commonly known as a ''security'', or any certificate of interest or participation in, temporary or interim certificate for, receipt for, warrant, or right to subscribe to or purchase any of the foregoing, or any forged, counterfeited, or spurious representation of any of the foregoing. 18 USC”

DEBT: Is the obligation by a person or company to pay a specific amount of money to another party. A set rate of interest is usually charged on the debt, which is normally lent for a specified period of time.  

EQUITY: Is the part of something which you own, be it a house, car or business. In the securities industry, equity is thought of as your share in a business, which means you share in its profit (and losses). As a shareholder in a business you have a less clearcut idea of your future return than does the person who supplies the loan fund or debt.

Securitization is a broad term used to describe the growing practice of taking loans and turning them into paper that can be readily bought and sold in financial markets. Debt and Equity were securitized to allow them to be traded in the market place. This made it possible to raise money from a wider range of investors. To sell the debt or equity in the marketplace it was necessary to have some tangible evidence of ownership hence the pieces of paper, securities that we call shares, bonds, debentures…etc were introduced.

In the case of a debt, banks can move debt off their balance sheet by turning it into debt securities and selling it to someone else. This frees them to write more debts as the “on-balance sheet’ loan would require the institution raising additional deposits or raising its shares capital to maintain its gearing.       

While financial intermediaries often deal directly with each other, they also trade through specific markets. A market is an arrangement where people buy and sell. Some markets have a physical location – fruits markets, the share market, the futures market. Others such as the money market and foreign exchange market are a network of traders connected by telephones and telexes. The various securities are traded on different markets including:

1.      The short-term money markets
2.      The long-term debt markets
3.      The share or equity markets
4.      The foreign exchange markets
5.      The future and options markets

Role and Definition 

The securities industry comprises:

ü      The people engaged in the borrowing and lending of money; the people engaged in the depositing of money.
ü      The people engaged in the raising of money to start or expand a business, and the people who provide the money to a share in the profits (or losses) of that business, or who lend to that business.
ü      The people engaged in the buying or selling of shares in a business, or the buying and selling of the ownership of loans to a business or other body.

The role of the industry is to create, manage and trade securities which represent the arrangements made between parties within the financial system.

Three things are essential for a market to work effectively:    

ü      Information about the product being offered, be it apples or shares in an oil field.
ü      Opportunity to buy and sell at a price.
ü      Assurance that once the deal is done, payment will be made.

The Securities markets in the Middle East are dominated by global banks such as the HSBC and CitiBank whilst regional banks are working hard to catch up the heat.  Future articles will focus on examining the practical aspects of the securities operations and the peculiar nature of the Middle Eastern markets.

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May 07, 2006

سان انتونيو يفوز فى دورى الامريكى لكرة السلة

American Basketball
www.graincon.com  St. Antonio

بدت المنافسة على اشدها بين فرق الاقسام الستة فى الدورى الامريكى للمحترفين لكرة السلة ان بى ايه. ولكن لمن سيكون اللقب. سجل توني باركر احدى وثلاثين نقطة ليقود سان انتونيو سبرز للفوز على سكرامنتو كنجيز بمائة وخمس نقاط مقابل ثلاث وثمانين ليتقدم بهذا فى اطار المباريات السبع التى سيخوضها الفريقان معا فى دور الثمانية بالبطولة ضمن مباريات المنطقة الغربية. وسيواجه سان انتونيو سبرز على ارضه دالاس مافريكس يوم السبت القادم وهى المباراة التى ستحدد من سيصعد الى الدور المقبل بالدورى.  ف

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May 06, 2006

Gulf Arab Leaders Discussing Iran Crisis Today

J. Sifri Consulting Serviceswww.graincon.com
RIYADH - U.S.-allied Gulf Arab leaders will meet in Riyadh today in an attempt to find a peaceful solution to the Iran nuclear crisis. Gulf Arab countries, wary of Iran since the 1979 Islamic Revolution, share U.S. concerns about Iran having a nuclear bomb but fear another military conflict in the region after the 2003 U.S.-led invasion of Iraq.
Responding to the resolution drafted by France, Britain and Germany, supported by US, against Iran’s nuclear activities, the GCC (Gulf Cooperation Council) will meet to day to call for a peaceful solution to the crisis. Whilst the GCC, who are cautious about stability in the region, would adopt a lenient position towards imposing economic sanctions on Iran, China and Russia, both are members in the Security Council and have vetoes, may oppose such sanctions to avoid another burst in oil prices as Iran is the forth largest oil exporter in the world.
Announcing that its nuclear program is for peaceful purposes, Iran has showed willingness to cooperate with peaceful endeavors to solve the current crisis by welcoming any Gulf Arab mediation but threatened to revenge if attacked militarily.  
A GCC official in Riyadh said the political and economic alliance -- which comprises Saudi Arabia, Kuwait, Bahrain, Oman, Qatar and the United Arab Emirates -- may try to use their close links to Washington to mediate in the dispute.
He noted that Qatar's ruler Sheikh Hamad bin Khalifa met Iranian officials in Tehran last week. Iran's chief nuclear negotiator Ali Larijani said in Dubai last week that Iran will be very responsive to any Gulf Arab mediation.
The GCC leaders are expected to demand a nuclear – free Middle East by calling upon Israel to halt all its nuclear activities and abolish its nuclear weapons. Ignoring the wide nuclear activity of Israel by the Security Council is a matter causing concern to the whole region. The whole issue brings back painful memories about the United Nations sanctions and war against Iraq over suspected nuclear activities.
Gulf Arabs are worried about the environmental impact of a U.S. attack on Iran's nuclear plant at Bushehr on the other opposite side of the narrow waterway. “We are still hopeful that the crisis will be solved peacefully, it is not in our interest nor Iran’s to enter in another war…, let peace prevail” says Sa’ed al Hmoud a Saudi political analyst.
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May 05, 2006

Mission Impossible 3

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Tom Cruise, the most exciting and successful star in the world, returns to one of his signature roles, Secret Agent Ethan Hunt, in "Mission: Impossible III."  In this pulse-racing, mind-bending action thriller, Hunt confronts the toughest villain he's ever faced - Owen Davian (Academy Award® winner Philip Seymour Hoffman), an international weapons and information provider with no remorse and no conscience.

The film is co-written and directed by J.J. Abrams, who brings his unique blend of action, character, comedy, and drama to the franchise.  The millions of loyal viewers of Abrams's landmark creations, the television series "Lost" and "Alias," know what to expect: an enthralling, intricate story with an unexpected and arresting payoff that satisfies on every level.

With "M:i:III," Abrams and Cruise turn the spy thriller on its ear as they hark back to the best aspects of the original TV series that inspired the films - a well-connected team of agents centered around a bold and heroic leader, the most exciting action stunts imaginable, and elaborate twists and turns that keep you on the edge of your seat.  "M:i:III" is the action movie audiences have been waiting for.

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May 03, 2006

الاعتمادات المستندية - اصدار جديد

 عمان - الرأي - صدر حديثا عن الدار العربية للعلوم في بيروت، كتاب «اصول فحص المستندات المقدمة بموجب الاعتمادات المستندية» من تأليف يعقوب الياس السفري

http://www.graincon.com/CheckingDocuments.html

J. Sifri Consulting Services

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England's Roony may not join the World Cup

 
                         
 

   Manchester United manager Alex Ferguson has said he doubts his star England striker Wayne Rooney will play in the World Cup finals.

The 20-year-old forward broke his foot in the 3-0 defeat at champions Chelsea on Saturday and has been ruled out of action for at least six weeks, seemingly denying him any chance of appearing in England's first match in Germany in June.

England coach Sven-Goran Eriksson seems set to still include Rooney in his 23-man squad in the hope he will be fit to play in the later stages of the tournament.

But Ferguson said: "You never know, but at the moment I doubt that he'll take part because of the recovery time."

He added that Rooney's absence would be a "crippling blow" to England's chances of winning only their second World Cup to go with their 1966 triumph on home soil.

"When you see brave players staying down after a tackle you know it's genuine and he's in pain and that's what I felt with Wayne," Ferguson also told United's official website.

The absence of Rooney will boost the chances of the German team who are taking their match against England pretty serious especially after the photos published by the Sun Newspaper showing the German chancellor Merkel nude in Italy. The Germans are seeking a hit back in the forthcoming match in Germany.

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May 02, 2006

World Cup

World Cup www.graincon.com

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الكويت ترفض لقاء تونس وديا في ألمانيا

الكويت – رفضت لجنة التدريب بالاتحاد الكويتي لكرة القدم خوض المنتخب الكويتي المباراة الودية التي اقرها مجلس ادارة الاتحاد مع منتخب تونس في السابع من حزيران يونيو المقبل في المانيا ضمن تحضيرات الاخير لخوض نهائيات كاس العالم. وكشفت مصادر اعلامية ان رئيس الاتحاد احمد اليوسف الذي حضر اجتماع اللجنة حاول اقناع اللجنة بقرار المجلس الا ان اللجنة ارتأت ان خوض هذه المباراة غير مجد للمنتخب بل إن التجارب السابقة التي خاضها المنتخب الكويتي تحت نفس الظروف ادت لخسائر كارثية مثل لقائه مع ألمانيا والبرتغال


 

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JSCS Appraisal System - Banking Performance Management

JSCS Appraisal System

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HR - JSCS Appraisal System

·             Provides a consistent performance management process that defines, aligns and assigns objectives
·             Assigns clearly defined role-based competencies with weighting/rating standards
·     &