ECONOMY
Libya’s Tough Balancing Act: Opening
to Market Economy or
Supporting Consumption?
The Libyan government has to deal with a new set of
realities that can confuse even the best economists. Coming
out of nowhere, making peace with its former enemies, benefiting
from high oil prices for who knows how long, attempting to
open its economy, but facing popular resistance about implementing
reforms, are a few of the challenges the North African country
is facing. Despite hiring highly-paid so-called gurus from
some of the most prominent American universities and think
tanks, Libya will have to find its own model and perhaps not
pay so much attention to what some superstar academics say.
Well, indeed it is trying its best to leverage its oil riches
and find a way to create whatever structure it deems would
work for it.
[read
here]
CORPORATE AFFAIRS
Maroc Telecom Records Strong Growth in 2006,
Expands Through Acquisitions
Maroc Telecom, the Moroccan telecommunication
firm that is 51% owned by France’s Vivendi had a good
year. In the fourth quarter of 2006, revenues of €499
million increased by 4.0% (+5.5% at constant currency). An
evolution of €10 million is due to a one-off reassessment
of the inactivated scratch prepaid cards at Maroc Telecom
dealers. Excluding this non-recurring item, revenues actually
increased by 7.6% at constant currency.
[read
here]
TRADE
Algerian-German Trade Talks Lead to New
Business Deals
Siemens
of Germany will supply electrical equipment to the Algerian
private real estate development company Dalhi. The equipment
will be used to power Dalhi’s mega project called Alger
Madina. A second contract, also involving an Algerian private
firm, AMS, concerned the establishment of a joint venture
with Germany’s Sloman Neptun in the area of maritime
shipping.
[read
here]
INVESTING
New Arab and American Investment Funds Make
their Debut in the North Africa’s Maghreb Region
This
week, two small investment funds were established aimed at
funding growth in Libya and Algeria. These funds are originating
from Bahrain, Libya, and Algeria with US investors’ involvement.
The first, Tuareg Capital will base its investment commitment
on Islamic financial rules, while the Phoenicia Group will
target specific industries in Libya.
[read
here]
BANKING
Société Générale Enters Mortgage
Lending Business in Algeria, Plans Sustained Expansion There
Société Générale Algérie
(SGA), the Algerian subsidiary of the French bank Société
Générale has entered the mortgage lending business,
offering loans to its existing customers in the North African
country. The loans made available to clients are meant to
finance the purchase of housing units, old or new. Financing
is also extended to renovation.
[read
here]
REAL
ESTATE
Sotheby’s Enters Luxury Real Estate
Market in Morocco
With Growing Arab Investments in Moroccan Property Development,
Sotheby’s Enters Luxury Real Estate Market in Morocco
----To accompany the growth of luxury real estate in the Middle
East-North Africa region, Sotheby's International Realty Affiliates
signed master franchise rights that will expand the Sotheby's
International Realty network into the countries of Qatar,
Oman and in the North African countries of Morocco and Egypt.
The selection of Morocco is indicative of the attractiveness
of that destination in the minds of international and wealthy
domestic real estate buyers.
[read
here]
INDUSTRY:
PIPELINE CONSTRUCTION
European and Japanese Contractors Win Trans-Mediterranean
Gas Pipeline Contract
Medgaz S.A. the consortium of the energy companies Sonatrach
(36%), Cepsa (20%), Iberdrola (20%), Endesa (12%) and Gaz
De France (12%) said it has selected the engineering and construction
firms that will build and install the Medgaz pipeline.The
EPC contracts for the construction of the ultradeepwater trans-Mediterranean
gas pipeline were finalized 12 months following the initiation
of the tendering process. All of the successful contractors
are globally-renowned companies that specialize in this type
of infrastructures, using the most advanced technologies available
on the market. The five companies were selected for each of
the four categories of the project:
[read
here]
INVESTING
The Casablanca Stock Exchange: Performance
and Outlook
The Moroccan stock exchange (Casablanca-CSE) has had its
own bull market of sorts. If you have invested money in there
in 2006, you may have noticed unusually high returns. This
is because 2006 was a year of all records. While experts predict
the bull market to go on this year, they warn not to expect
a repeat of the 2006 performance. Still, with a relatively
good economic growth of 3.5% expected for the Moroccan economy,
driven by a more predictable agricultural output, massive
infrastructure and industrial projects, the continued contribution
to economic growth of the expatriates, and new flotations
in the bourse this year, investing in the CSE could yield
yet another good year of return. If you have invested in 2006
and want to check how the market performed or if you are interested
in taking advantage to its ongoing positive performance, this
report is recommended reading and authored by some of Morocco’s
top market analysts.
[read
here]
