North Africa/Middle East

The naming of a new boss at Etihad Airways presents the Gulf carrier with an opportunity to rethink its aggressive expansion strategy after the failure of minority-owned Alitalia underlined the big barriers to global growth, the International New York Times reported on a Reuters story. Ray Gammell was appointed interim CEO this week, days after Alitalia sought bankruptcy protection with $3.3 billion (£2.5 billion) of debt. He replaces veteran boss James Hogan.

Investors in United Arab Emirates construction stocks can remember the good days -- when oil above $100 a barrel encouraged a seemingly endless stream of lucrative projects, Bloomberg News reported. Now, with crude priced at half that, companies are trying to rebuild their balance sheets. The downturn has translated into pain for investors in two of the largest construction companies in the U.A.E. Arabtec Holding Co. has slumped 90 percent from its May 2014 record, while Drake & Scull International P.J.S.C. is down 78 percent from its June 2014 peak.

Saudi Arabia has dodged a financial crisis due to low oil prices by slashing state spending and borrowing tens of billions of dollars abroad, but now it faces a tougher challenge: getting the economy growing again, the International New York Times reported on a Reuters story. In a series of interviews with Reuters reporters last week, senior Saudi officials said reforms announced on national television by Deputy Crown Prince Mohammed bin Salman a year ago had stabilised state finances enough for the government to begin focusing on investing in the economy.

Dana Gas PJSC will ask bondholders to accept changed terms on $700 million of debt coming due in October as the energy producer based in the United Arab Emirates seeks to restructure debt for the second time in five years, Bloomberg News reported. Holders of the Islamic bonds, or sukuk, should form a committee to represent them in the planned discussions, Sharjah, U.A.E.-based Dana Gas said Wednesday in a statement to the Abu Dhabi stock exchange.

Saudi Arabia’s King Salman has reinstated allowances and bonuses for state employees as its finances improve, a move aimed at boosting consumer confidence to support growth as the kingdom overhauls its oil-dependent economy, The Wall Street Journal reported. In a spate of decrees issued late on Saturday, the king also appointed one of his sons, Prince Abdulaziz bin Salman, as the minister of state for energy, industry and mineral resources. Another of his sons, Prince Khaled bin Salman, was named ambassador to the U.S., according to the official Saudi Press Agency.

UAE residents are hopeful that new bankruptcy legislation will ease the burden on small business owners. After years of deliberations, in December the federal government introduced an insolvency law to ease the orderly unwinding of bankrupt companies, including protections for debtors. The law — still untested because of its newness — stays proceedings on bounced cheques if the debtor is in a court-approved insolvency process, the Financial Times reported.

Emirates, the world's biggest long-haul airline, said on Monday it was in the process of only a "modest restructuring," two months after it reported a 75 percent decline in half-year profits due to slower growth and increased competition, Reuters reported. Gulf carriers who spent years rapidly expanding into markets from South America to Africa are under pressure to adapt to weaker markets, overcapacity and a stronger dollar.

The Egyptian cabinet approved on Wednesday the country's first bankruptcy law, Justice Minister Hossam Abdelrahim said, part of an economic reform drive aimed at encouraging investment, Reuters reported. The law aims to minimise the need for companies or individuals to resort to the courts and will simplify post-bankruptcy procedures, Abdelrahim said, adding that the measure would also abolish imprisonment in cases of bankruptcy. Until now, Egypt has had no specific law on bankruptcy, meaning failed companies have had to go to court on a case-by-case basis.

Islamic mortgage provider Amlak Finance has announced the renegotiation of a restructuring deal with its financiers, Gulf Business reported. The firm said it approached financiers in September to wave “a number of restrictive covenants” in its original restructuring terms from 2014. These included adjustments restrictions to allow for the company’s mortgage book to be maintained at higher levels, funds to be raised under certain pre-agreed parameters and the removal of restrictions on business origination. The majority of financiers have now approved the company’s new business plan.

King Salman serves as chairman of the family business unofficially known as “Al Saud Inc.” Sustained low oil prices have strained the economy and forced questions about whether the family — with thousands of members and still growing — can simultaneously maintain its lavish lifestyle and its unchallenged grip on the country, the International New York Times reported. “The people have less money than before, but the royal family have the same,” said Prince Khalid bin Farhan al-Saud, a dissident member of the extended family living in Germany.