North Africa/Middle East

Saudi Arabia’s central bank stepped up efforts to support lenders in the Arab world’s biggest economy as they grapple with the effects of low oil prices, Bloomberg News reported.

The Saudi Arabian government has ended talks aimed at saving construction giant Saudi Oger, which is now facing the prospect of a multi-billion-dollar debt restructuring to stave off collapse, according to sources aware of the matter. Oger, owned by the family of former Lebanese Prime Minister Saad Hariri, was one of two mega-contractors charged with implementing the grand infrastructure and development plans of the kingdom, building everything from defense installations to schools and hospitals.

Obaid Humaid Al Tayer, the Minister of State for Financial Affairs, said on Tuesday that the government is working on a new personal insolvency law that would apply to individuals. His comments follow the news that the UAE’s new bankruptcy law, which protects companies that cannot pay their debts from criminal prosecution, has been approved by the Cabinet and could come into effect early next year. Mr Al Tayer said that the law dealing with personal insolvencies would take about 12 months to draft, giving no indication when it is likely to come into effect.

The United Arab Emirates may finalise a long-pending bankruptcy law by the end of this year, the economy minister said on Wednesday, a move that could help smaller companies in particular as the economy slows because of low oil prices, Reuters reported. "The need for a bankruptcy law is there, as soon as possible," Sultan Saeed al-Mansouri said reporters. "It is in the process. It should be finalised by the end of the year, that is my estimate." The UAE does not have modern bankruptcy regulations, making it difficult for companies to restructure or wind themselves up.

Israeli property developer Africa Israel Investments may struggle to stay in business, its auditors warned on Tuesday, after its Russia-focused subsidiary AFI Development continued to be hit by the weak Russian economy, Reuters reported. "Various factors raise substantial doubt about the continued existence of the company as a going concern," auditors Deloitte and KPMG said in a statement as Africa Israel reported a 163.3 million shekel ($43 million) loss in the second quarter, against a 179 million shekel loss a year earlier.

State-owned property developer Nakheel, which was at the centre of Dubai's debt crisis in 2009, has finished recovering from a $16 billion debt restructuring by repaying an Islamic bond this month, its chairman said on Monday, Reuters reported. Ali Rashid Lootah told a small group of reporters that Nakheel had transferred funds for repayment of a 4.4 billion dirham ($1.2 billion) sukuk issue maturing this month. "We are closing the restructuring file," he said.

The International Monetary Fund said Thursday that it would grant Egypt a $12 billion loan over three years to help Egypt mend its ailing economy after years of unrest, the International New York Times reported. The I.M.F. said the loan, which is subject to approval by its executive board, comes in support of a government overhaul that aims to stabilize Egypt’s currency, reduce the budget deficit and government debt, and bolster growth and create jobs. “Egypt is a strong country with great potential but it has some problems that need to be fixed urgently,” I.M.F.

Saudi Arabia, faced with dwindling oil income, has sharply increased government fees such as visa charges as part of a range of measures aimed at raising revenue from non-oil sources, The Wall Street Journal reported. Under the new rules approved by the Saudi government, foreigners will have to pay $800 for a six-month visa, six times the current cost.

The target of a takeover bid, Iraqi oil player Gulf Keystone Petroleum said most of the parties with an interest in the company are in favor of restructuring. The company, which lists headquarters in London, reached an agreement last month with the majority of its creditors and shareholders to restructure its debt obligations. Andrew Simon in July stepped down as chairman, opening the door for non-executive director Keith Lough to help steer a $500 million debt conversion proposal. The company is focused on developing the Shaikan oil field in the Kurdish north of Iraq.

A Dubai-based firm has failed to get a Supreme Court order aimed at preventing it being sued here over its acquisition of a multi-million euro property in India from companies controlled by members of the family of businessman Sean Quinn, the Irish Times reported.