Oasis Leasing, Blenheim Capital sign JV deal

Oasis International Leasing Company and Britain’s Blenheim Capital Partners Ltd., a joint venture between Summit Overseas Capital and Barclays Capital, signed a joint venture agreement in November to establish Al Waha Financial Services (AWFS) which will specialise in the provision of structured financeandriskmanagementsolutionsinthe UAE and in the broader Middle East and North Africa region. AWFS has an initial capital of 50 million dirhams, with 60 per cent being provided by Oasis and 40 per cent by Blenheim.

Commenting after the signing of the agreement, Grant Rogan, Chairman and CEO of Blenheim Capital Services, of which Blenheim Capital Partners is an associate, said “We are very excited about the long-term strategic partnership with Oasis Leasing. Blenheim and its shareholders have had a long-standing relationship with Oasis, which enjoys a great reputation in the region and whose involvement in AWFS will bring tremendous support and value to the new business.

“Blenheim’s participation in this new company further demonstrates our on-going commitment to the UAE and the Gulf region as a whole. We look forward to being a part of its continuing success story.”

According to Oasis Chairman Hussain Al Nowais, the new joint venture is part of a strategic expansion for his company. “This strategic partnership provides us with an ideal platform to address the growing demand for specialized financialservicesinthe national and regional markets. Al Waha Financial Services will also seek to leverage the new opportunities that are emerging from the rapid economic development in the MENA region. We are confidentthatthis injection of capital by Oasis will result in excellent returns, ultimately benefitingthecountry and Oasis’ shareholders.”

Oasis Leasing was re-structured early last year, becoming Waha Capital, with four subsidiaries, Waha Leasing, Waha Land, Waha Maritime and Waha Financial Investments.

HSBC sign US $125M credit facility

HSBC signed a deal in early February to provide the Abu Dhabi Ports Company (ADPC) with a Dh 459 million (US $125 million) one-year revolving credit facility. The arrangement is the second bridge facility arranged by HSBC for ADPC to meet initial construction costs of the Khalifa Port project at Taweela, north-east of Abu Dhabi city.

ADPC appointed HSBC in July 2007 to provide financial advisory services to the Khalifa Port and Industrial Zone (KPIZ) project.

Strategically located between the cities of Abu Dhabi and Dubai in Taweelah KPIZ is a multi-billion dollar project designed as a multi-purpose facility that involves the construction of a world-scale container and industrial port in addition to the development of over 100 square kilometres of industrial, logistics, commercial, educational, and residential special economic and free zones.

KPIZ is a central plank of ‘Plan Abu Dhabi 2030’, and will play a major role in Abu Dhabi’s industrial and economic diversification in serving as a key hub for large scale industrial investments that will be serviced by state-of-the-art port, transport and other infrastructure facilities and services.

SCB and RBS to finance EMAL project

Standard Chartered Bank and the Royal Bank of Scotland are among a group of international and local banks helping to financethenewEmiratesAluminiumCompany (EMAL) a joint venture equally owned by Mubadala Development Company (Mubadala) and Dubai Aluminium. It is to be built at Taweela, north-east of Abu Dhabi and adjacent to the existing power and desalination plants and the new Khalifa Port and Industrial Zone.

The financing is fo rthe first phase of EMAL’s planned development of a 700,000 tonnes per year aluminium smelter. Work on the firstphasehasalreadybegun.Upon completion of the additional pot lines intended in the second phase, EMAL will be the largest single site aluminium smelter in the world with total annual production capacity of 1,400,000 tonnes of aluminium.

The smelter project represents Abu Dhabi’s entry into the aluminium industry as it joins the ranks of major regional and international producers. The smelter is scheduled to commence production in 2010.

The banks are providing a total of US $ 4.9 billion limited recourse bank financing,including a US $1.8 billion, sixteen year term loan, a US$ 270 million letter of credit facility and a US $ 2.8 billion six year equity bridge loan. Further financingforEMAL of up to US$2bn is expected to be launched into the credit markets during the construction of the smelter, bringing the total financingtoalmostUS$7bn.

This is the largest single commercial financing,todate,foranyprojectintheArabian Gulf.

“The aluminium smelter project is a cornerstone of the enhanced industrial sector that is planned to help pursue Abu Dhabi’s vision for a diverse and sustainable economy,” according to Khaldoon Khalifa Al Mubarak, CEO and Managing Director, Mubadala and Chairman of the Board of EMAL.

“This financingdemonstratesthestrengthof the project and its sponsors. It is important to hold the confidenceandoptimismofthelending community in respect to the future development of Abu Dhabi,” he said.

Foster + Partners to design UAE’s Shanghai 2010 Pavilion

London-based architectural practice Foster + Partners are to design the UAE’s pavilion at the EXPO2010 in Shanghai, China, with the theme “Better Cities and Better Life”. A total of around 200 countries are expected to take part.

The UAE pavilion, which will cover an area of 6,000 sq. metres, will be managed by the National Media Council, chaired by Foreign Minister HH Sheikh Abdullah bin Zayed Al Nahyan, in association with a number of other organisations, including the Abu Dhabi Future Energy Company, Masdar, and the Environment Agency – Abu Dhabi (EAD).

It is being designed to show how UAE residents in the past were able to develop their own solutions to deal with difficult challenges like obtaining water and cooling their homes, and will also highlight the Government’s efforts to preserve this heritage and make use of it in the design of the modern UAE.

According to the Director-General of the National Media Council, Ibrahim Al Abed, “For those of us who have the pleasure of living in the UAE, the theme of Expo 2010 has a particular resonance. We do not measure improvement in our cities by their scale or by the concrete, glass and steel facades of ever-more imaginative and impressive structures, but by an altogether deeper set of values. Our urban planners are building cities of the future that are designed to improve every aspect of the lives of our citizens, from social cohesion, healthy living, ease of communications security and care of the elderly to integrated facilities for education, work and leisure,” he added.

Regus to open Abu Dhabi “instant offices”

Regus Abu Dhabi, providers of “Instant Offices”, plan to open their new centre, Regus Al Bateen, during March. Located on Baynouna Street, Street 34, in the Abu Dhabi Islamic Bank building. It will be their largest centre in the Middle East region, with an ability to accommodate 245 people in 75 individual offices.

Regus, who describe themselves as “the world’s leading providers of pioneering workplace solutions”, offer a range of products and services ranging from fully- equipped offices to professional meeting rooms, business lounged and a large network of video-conferencing studios. The Group has 950 locations, in 400 cities and 70 countries worldwide.

UAE’s first CDM projects approved

The first five UAE projects under the CDM (Clean Development Mechanism) of the Kyoto Protocol received approval from the country’s Designated National Authority, DNA, in January, and are now being submitted to the United Nations for registration. All are in the oil and gas sector.

The CDM part of the Kyoto Protocol encourages companies in developing countries to reduce their greenhouse gas emissions – mainly Carbon Dioxide - by offering them a tradable Certified Emission Reduction (CER) or “carbon credit” against every Ton of carbon dioxide equivalent reduced.

In order to realise CERs, a company must develop a CDM project consisting of various steps including GHG emission analysis, regulatory documentation, approval by the host country and registration at the United Nations.

The Environment Agency – Abu Dhabi (EAD) was nominated as the UAE’s Designated National Authority in 2005, being given the task of approving projects prior to their submission to the United Nations, by ensuring that the projects help achieve sustainable development and lead to the transfer of environmentally safe and sound technology. EAD’s technical capacity as the DNA has been developed in close association with Masdar, with criteria being drawn up that meet best international practices.

“We have worked with Masdar to build a comprehensive model for CDM which aims at promoting sustainability in line with our national development goals and socio-economic priorities, and we are willing to share our experience with other countries in the region” according to Majid Al Mansouri, Secretary General of EAD and Chairman of the CDM Executive Committee.

The approved CDM projects will all be carried out by members of the Abu Dhabi National Oil Company, ADNOC, Group of companies, and will include CO2 recovery and utilisation in urea production at Ruwais Fertiliser Industries, FERTIL, as well as gas flaring reduction at Abu Dhabi Gas Liquefaction Limited, ADGAS, Abu Dhabi Oil Refining Company, TAKREER, and TOTAL ABK.

The Masdar CEO, Dr Sultan Ahmed Al Jaber, described the projects as a demonstration of ADNOC’s commitment to reduce the environmental impact of the oil and gas industry in Abu Dhabi. “These projects mark the first milestone in our cooperation with ADNOC to develop the CDM potential across its various operating companies,” he said.

Masdar is currently developing a portfolio of CDM projects with major asset owners in the UAE and the Middle East, including ADNOC, the Abu Dhabi Water and Electricity Authority, ADWEA, and Dubai Aluminum, DUBAL. Projects include energy efficiency, industrial process improvement, flare gas recovery and power plant upgrades.

New Abu Dhabi office head for Denton Wilde Sapte

Andrew Ward has joined Denton Wilde Sapte as the managing partner of its Abu Dhabi office, replacing Richard de Belder, who has moved back to the firm’s London office.

“Andrew has considerable experience working in the Middle East, having been based in Abu Dhabi for fiveyearsupto2002and having subsequently advised on a number of major projects in the region,” says Gulf managing partner Neil Cuthbert.

Andrew is a Corporate Partner, with notable experience in the energy sector, and joins Denton Wilde Sapte from Simmons & Simmons.

“Under Andrew’s management, the Abu Dhabi office will continue to be a major player in our growing Gulf network, and his focus on energy will be invaluable for our energy clients in the region,” says Neil.Three new associates for ReedSmith Richards Butler

Three new associates have joined the Abu Dhabi office of ReedSmith Richards Butler

Marie Christine Oliver has particular expertise in projects, especially construction, having formerly been with London-based construction firmKennedys.

Guy Cooper has joined the Middle East Finance team, having formerly been in Dubai with Conyers Dill and Pearman, and having advised a number of banks, financialservicescompaniesand corporations in the Middle East, Europe and the Caribbean.

Daniel Nemer, who has recently re-located to the Middle East, has previous experience in property and infrastructure, having worked predominantly with large Australian companies and government entities.

Dh 100 billion for oil and gas

Abu Dhabi is set to pump about Dh100 billion into projects in the oil sector in the next fiveyearsasitpushesaheadwithplans to boost crude output and expand its oil-related industry.
According to figuresreleasedbytheAbuDhabiChamberof Commerce and Industry, ADCCI, in December, citing government estimates, the emirate invested around Dh55bn between 2001 and 2007 to develop its hydrocarbon sector. Abu Dhabi controls the world’s fifth largest oil and gas resources.

“The oil sector accounts for a large part of Abu Dhabi’s investments. The emirate is expected to have pumped about Dh11bn into this sector in 2007 and there are indications such investments could total Dh100bn between 2008 and 2012,” the Chamber said in a study.