Issue 9 | June 2007

MEMSA Newsroom (see articles below)

Saudi Arabia: Prudential, Bank Aljazira in takaful deal Turkey: Aviva and Sabanci launch life and pensions JV Greece: ETE will not sell its stake in E.A and Astera Saudi Arabia: Insurance premiums to hit SR 20bn by 2017 Jordan: Call centres to be exempted from tax UAE: Tamweel's new home refinancing product released Kuwait: Boubyan unveils new Internet banking system Greece: Warning to HIV patients over Viracept recall Oman: Gonu caused losses of US$ 1bn Middle East: Software piracy rate rose to 60% UAE: Health insurance for expatriate workers UAE: Colemont Abu Dhabi unveiled Qatar: Aon looks to broker natural gas project deals UAE: RCG contracted to install biometric solution Qatar: Virgin, IBQ formed loyalty scheme alliance Kuwait: Third Islamic bank planned Egypt: Five bidders await approval to buy Alwatany Greece: EFET fined eight food companies with EUR 73,000 Middle East: Healthcare costs to increase by 2025 Greece: Authorities seize 5.3 tonnes of unsafe food Greece: 75 tonnes of rise was seized by officials Greece: ETE will not sell its stake in E.A and Astera Saudi Arabia: Prudential, Bank Aljazira in takaful deal Insurance Day, 07 Jun 2007, p.2:- Prudential has announced that it is to launch a takaful joint venture with Saudi bank Bank Aljazira. Prudential will have a 39% stake in Takaful Ta'awuni, which will specialise in life insurance and will be listed on the Tadawul, the Saudi Arabian Stock Exchange. It will incorporate Aljazira's existing takaful company. According to the Chief Executive of Bank Aljazira, Mishari Al Mishari, the insurance market in Saudi Arabia is relatively small but is expected to expand quickly in the near future. © Esmerk Back to Top Turkey: Aviva and Sabanci launch life and pensions JV Press Release (Aviva), 08 Jun 2007, Online:- Aviva and Sabanci, which owns the Aksigorta insurance firm in Turkey, have agreed to create a new leading life and pensions firm in Turkey. Aviva Hayat ve Emeklilik (Aviva HE), will merge with Ak Emeklilik (Ak E), which is Aksigorta's life and pensions business. The joint venture will enter a long term bancassurance agreement with Akbank, which is Turkey's second biggest bank. The merger will give the firm Aviva HE's direct sales force, the biggest in Turkey, and Ak E's leading bancassurance position. It will have pension assets of GB£ 290mn (US$ 0.57bn EUR 0.43bn) under management, and will be the third largest life insurer with gross written premiums of GB£ 15.5mn, or a market share of 11%. © Esmerk Link to original article in English. Back to Top Greece: ETE will not sell its stake in E.A and Astera Naftemporiki, 05 Jun 2007,:- The President, T. Arapoglou, of the Greek bank Ethniki Trapeza Ellados (ETE) has officially denied recent press reports, suggesting that ETE is considering to sell its stake in Ethniki Asfalistiki (E.A) and Asteras Vouliagmenis. During his interview, Arapoglou has also revealed that ETE has recently invested a total of more than EUR 130mn (US$ 174.33mn) towards further establishment of its general insurance subsidiary, Ethniki Asfalistiki, while similar plans are currently under consideration for Asteras Vouliagmenis. © Esmerk Link to original article in Greek. Back to Top Saudi Arabia: Insurance premiums to hit SR 20bn by 2017 Arab News, 06 Jun 2007,:- The government of Saudi Arabia has awarded licenses to 26 insurance companies and is considering 10 other applications. By the end of 2017, close to SR 20bn (US$ 5.33bn EUR 3.94bn) of insurance premiums are expected to be collected in the country. The insurance sector's revenue is also projected to increase by three folds to SR 15bn in the next five years [by 2012] from the 2005 level. © Esmerk Link to original article in English. Back to Top Jordan: Call centres to be exempted from tax IMiddle East Economic Digest Online, 09 Jun 2007,:- It is understood that call centres and other information and communication technology (ICT) support services will be exempt from corporation tax as part of Jordan's strategy to boost the annual revenues of its IT and telecoms sector to US$ 3bn by 2011. The ICT sector represented 8% of GDP in 2006. According to the Department of Statistics, ICT will have to account for at least 15% of GDP to meet the target. © Esmerk Link to original article (subscription required) in English. Back to Top UAE: Tamweel's new home refinancing product released AME Info, 03 Jun 2007, Online:- A new Sharia-compliant home refinancing product has been introduced by the United Arab Emirates' (UAE) leading real estate financing services provider, Tamweel PJSC. According to the Chief Executive Officer of Tamweel, Adel Al Shirawi, the new product, Soyoula, is designed for stable class of houseowners to cater for their long-term investment needs. The home refinancing product, which is available for both resident and national real estate owners in the country, allows customers to convert their home equity into investable liquidity. © Esmerk Link to original article in English. Back to Top Kuwait: Boubyan unveils new Internet banking system Bahrain Tribune, 11 Jun 2007, Online:- Boubyan Bank (Boubyan) of Kuwait has introduced its Internet Banking Service by using electronic- (E) Finance Suite of Sybase Financial Fusion. According to the Head of Information Technology Group of the bank, Kurien Varghese, apart from high security and flexibility, the E-Finance Suite also provides a middleware platform that allows the bank to deploy other new software without the need to manage various systems, platforms or code. The new Internet banking system will help to strengthen the bank's online banking systems, while offering customers with dynamic personalized content, improved banking convenience and a host of functionalities. © Esmerk Back to Top Greece: Warning to HIV patients over Viracept recall Kathimerini, 08 June 2007,:- Greece's national pharmaceutical organization, Ellinikos Organismos Farmakon (EOF), has issued a warning, advising all people that suffer from the HIV virus, the virus that can lead to AIDS, and are taking the Viracept drug, to stop taking it and consult their doctor immediately. Viracept's manufacturer, Roche, has ordered a recall on the drug, after evidence of dangerous contaminants were found in the tablets, while has also informed the European Medicines Agency (EMEA) over its decision. Roche's find came after the company decided to investigate a number of patients’ complaints, discovering that the tablets contained unexpected high levels of ethyl mesylate, which is a potentially dangerous chemical. © Esmerk Link to original article in Greek. Back to Top Oman: Gonu caused losses of US$ 1bn Oman Observer, 11 Jun 2007,:- In Oman, insurance companies are slated to pay insurance claims equivalent to a maximum 50% of the losses caused by the super-cyclone Gonu. This was mentioned by unnamed analysts. Losses due to Gonu, which struck the nation in the 3-9 June 2007 week, could hit US$ 1bn (EUR 0.74bn). © Esmerk Link to original article in English Back to Top Middle East: Software piracy rate rose to 60% Bahrain Tribune, 04 Jun 2007,:- The average rate of software piracy in the Middle East region rose by 3% from 2005 to 60% in 2006, according to the latest IDC survey covering 102 countries. During the same period, up to US$ 1.997bn (EUR 1.48bn) had been lost by the region due to fake software activities. Although the information technology (IT) market is growing in Bahrain, the survey found that the country's overall software demand in for 2005/2006 period was made up by 60% of pirated software usage. In addition, 15 out of 22 nations in the region surveyed in the study recorded a decline in piracy figures. The survey was conducted to identify anti-piracy measures as well as to explore the impact of software piracy all over the world. © Esmerk Back to Top UAE: Health insurance for expatriate workers Gulf News, 18 Jun 2007, Online:- In the Abu Dhabi emirate of the United Arab Emirates (UAE), all federal government departments will be required to get health insurance coverage of its expatriate staff, three dependents under the age of 18 and spouses with immediate effect. The development was signed by UAE's Minister of State for Finance and Industry, Dr Mohammad Khalfan bin Kharbash and mentioned on 17 June 2007. From 2008, mandatory health insurance will be required on visitors with visas that are effective for over two months, persons sponsored by Emiratis and all expatriate staff of firms with under 1,000 workers. Back to Top © Esmerk Link to original article in English. Back to Top UAE: Colemont Abu Dhabi unveiled AME Info, 17 Jun 2007, Online:- In the Abu Dhabi emirate of the United Arab Emirates (UAE), Colemont Abu Dhabi was unveiled on 11 June 2007. The branch is a joint venture of UK-based insurance broker Colemont Global Group and local firm Emirates National Group (ENG). The branch's general manager is Eric Schroder. Colemont Dubai was established in 2006. © Esmerk Link to original article in English. Back to Top Qatar: Aon looks to broker natural gas project deals Insurance Day, 18 Jun 2007, p.2:- As Qatar diversifies its economy away from oil and towards natural gas, US insurance broker Aon is planning to establish an office in the region to broker the infrastructure transactions involved with the shift. The Qatari government has promised to reach zero oil dependency within 20 years, with plans to increase its gas exports 50% by 2009, and Aon has applied for a license from the Qatar Financial Centre Regulatory Authority to play a part in helping the government achieve these targets. Roelof Hendriks, CEO of Aon Middle East cites strong demographic and economic growth, as well as increasing demand for insurance, as an important factor in opening an office in the region, which it has operated in for over 30 years. The offices are expected to open during 2007. © Esmerk Back to Top UAE: RCG contracted to install biometric solution Gulf News, 15 Jun 2007, Online:- In the United Arab Emirates (UAE), RCG Holdings (RCG) of Hong Kong was granted a contract by an unnamed local bank to install a biometric security solution at the bank. The solution is the first of its type to be executed in the local banking sector. With installation of the solution, customers of the bank will be required to undergo iris scanning and fingerprinting before conducting cash withdrawals at automated teller machines. Within the coming six months [by December 2007], customers will experience the difference. Customers will still have to key in their personal identification numbers at the machines. The development was mentioned recently by RCG regional director Danny Chew. © Esmerk Link to original article in English. Back to Top Qatar: Virgin, IBQ formed loyalty scheme alliance AME Info, 12 Jun 2007, Online:- In Qatar, Virgin Megastore (Virgin), a UK-based games, video and music retail chain, and the International Bank of Qatar (IBQ) started on their strategic alliance on 12 June 2007. The alliance will last for three years. Under the alliance, IBQ will Virgin develop the Virgin Megastore VIP (Virgin Important Person) loyalty scheme specifically for the local market. Everyone will be eligible to be a member of the scheme. Members will be able to take part in lucky winner draws regularly, gain access to latest releases and online news and hold an Entertainment Card that offers discounts. IBQ has unveiled the scheme for the local market. © Esmerk Link to original article in English. Back to Top Kuwait: Third Islamic bank planned Gulf News, 17 Jun 2007, Online:- In Kuwait, starting from 1 July 2007, Kuwait Real Estate Bank will start running business based on Sharia. Likewise, Jaber Islamic Bank is anticipated to begin running Sharia-compliant business 12 months after getting the Kuwaiti government's approval. Jaber Islamic Bank, with a capital amounting to KD 100mn (US$ 347.1mn EUR 260.08mn), will be Kuwait's third Islamic bank. Apart from that, the Kuwaiti central bank has given green light to Investment Dar, which holds 4.9% stake in Boubyan Bank, to acquire up to 20% interest in the lender. Boubyan Bank is a Sharia-compliant lender and is the country's second biggest Islamic lender. Investment Dar is an Islamic investment company. © Esmerk Link to original article in English. Back to Top Egypt: Five bidders await approval to buy Alwatany Middle East Economic Digest Online, 15 Jun 2007,:- Banks interested in acquiring a more than 40% stake in Alwatany Bank are reported to be awaiting approvals from the Central Bank of Egypt. Five international and Middle East banks including Commercial Bank of Kuwait, with a Kuwaiti partner, have been shortlisted. © Esmerk Link to original article (subscription required) in English. Back to Top Greece: EFET fined eight food companies with EUR 73,000 Kathimerini, 15 Jun 2007,:- Greece's food authority, Enieos Foreas Eleghou Trofimon (EFET), has fined eight food companies, amongst them were the biscuit company Elbisco and the supermarket chain Dia, with a total of EUR 73,000 (US$ 97,893.28) after its inspectors found that they had failed to comply with food health and safety regulations. © Esmerk Link to original article in Greek. Back to Top Middle East: Healthcare costs to increase by 2025 Trade Arabia, 19 Jun 2007, Online:- By 2025, the cardiology cost in the GCC region is estimated to increase to US$ 15bn (EUR 11.24bn) compared to US$ 1.5bn in 2007, as disclosed in the GCC Healthcare 2025 report by McKinsey & Co Inc. The report also showed that the direct healthcare costs will hike to US$ 60bn by 2025 in the region, against the present cost of US$ 12bn. The growth is said to be attributed from the growth in population, health risk factors, medical inflation and ageing. © Esmerk Link to original article in English. Back to Top Greece: Authorities seize 5.3 tonnes of unsafe food Kathimerini, 18 May 2007,:- A total of 5.3 tonnes of food that was classified as unfit for human consumption has been confiscated by Athens' prefectural authorities, during checks that were carried out by its food and health and safety inspectors on several local food companies such as butchers, supermarkets, and bakeries. Meanwhile, Athens' authorities have launched legal proceedings against 61 food businesses, for violating food health and safety regulations, issuing fines totaling EUR 20,400 (US$ 27,356.48). © Esmerk Link to original article in Greek. Back to Top Greece: 75 tonnes of rise was seized by officials Kathimerini, 31 May 2007,:- Port officials at Piraeus' port, in Greece (the largest port in the country), have confiscated a total of 75 tonnes of imported rice from China, that was brought into the country as animal feed, after inspections indicated that it contained traces of melamine, which is a chemical that is used to make fertilizers. According to the officials, none of the rice, which reached the Greek port on 14 May 2007, has been distributed on the market. © Esmerk Link to original article in Greek. Back to Top Greece: ETE will not sell its stake in E.A and Astera Naftemporiki, 05 Jun 2007,:- The President, T. Arapoglou, of the Greek bank Ethniki Trapeza Ellados (ETE) has officially denied recent press reports, suggesting that ETE is considering to sell its stake in Ethniki Asfalistiki (E.A) and Asteras Vouliagmenis. During his interview, Arapoglou has also revealed that ETE has recently invested a total of more than EUR 130mn (US$ 174.33mn) towards further establishment of its general insurance subsidiary, Ethniki Asfalistiki, while similar plans are currently under consideration for Asteras Vouliagmenis. © Esmerk Link to original article in Greek. Back to Top

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