Category Archives: Globaleye News

Report on the Middle East Economy

After reviewing last year’s final quarterly report, HSBC, like so many other organizations in the gulf, had a good year. The company reported a 25 percent rise in profits in the Middle East branches alone, attributing the years success to a great deal of spending on the government’s behalf to improve infrastructure, growing real estate values and stable oil prices. The spike on spending on infrastructure, especially in the final quarter, was attributed to preparation for the 2020 World Expo in Dubai, which should continue to help drive the market and economy, and Saudi Arabia’s infrastructure spending.

The specific numbers of profit of HSBC from the Middle East, alone, was $1.6 billion US; that’s up from $1.35 billion the previous year, an impressive declaration in the European bank’s annual report. This steep rise contributed to HSBC’s global banking and market division having the top increase, growing over 50 percent to $869 million in profit.

The bank estimated the economic growth rate in the region had achieved 4 percent, which was boosted by a shift in Saudi Arabia’s fiscal policy and a great deal of the Gulf kingdom spending large amounts to build up infrastructure. All while the extremely volatile political situation in Egypt hampered economic growth in the 2012 to 2013 fiscal year, holding growth at just 2.2 percent and creating a large deficit of around 15 percent of the total GDP.

Stable oil prices hovering between $100 and $111 per barrel also helped stimulate grown in the Gulf. This, along with an economic upturn in the UAE, which had suffered from hits in the real estate market, helped boost the economy in the Gulf region. That, and surprisingly inflation remained down, even with demand rising and less than ideal fiscal policies allowing too much room for shifts.

However, while the profits for HSBC are good, they still didn’t meet the expectations analysts had, as such estimates were $2 billion over what was actually made. This is attributed to failed cost-cutting measures and revenue that shrank from previous estimates.

HSBC has the most success in the Asian markets, and because of this they’re turning their focus to such markets that are proving to yield the most profits for them. This is largely in part due to heightened regulations and fees in other markets, which is why it makes more sense to leave such markets that incur too many operating costs, cutting out profits. At the moment costs are over the 50 percent of revenue estimate, and return equity is not meeting the expected standards.

Dividends for the fourth quarter will reach 19 cents a share, bringing the grand total of dividends this year to 49 cents a share. Over the past year the total share price has dropped 5 percent.

Positive news is that costs drobbed from $42.9 billion to $38.6 billion, which is good progress, but at around 59 percent, it’s a bit high from the original target of low, to mid-50s.

Overall, HSBC and the Gulf region’s economy are in good shape and are expected to continue on the up turn in the next fiscal year.

Looming Debt Challenges with Dubai Expo 2020

World Expo

Following Dubai winning its bid to host the World Expo 2020, there’s been a lot of celebration and optimism around the event. Yet, with the high cost of hosting such an event, financial experts are turning their focus to the elephant in the room, the emirates debt. At the moment the emirates debt is estimated to be around US $103 billion, and is expected to increase with renewed borrowing needed to fund projects for the Expo.

With an estimated $43 billion needed in infrastructure projects to prepare for the Expo, the government of Dubai has indicated that a considerable amount of funding for the event will probably come from borrowing, most likely from state-linked firms. According to the IMF, the borrowing is expected as the emirate is set to pay off $85 billion in debt before 2017.

Even though Dubai has been curbing its levels of debt since Dubai World, a state-controlled firm, called for a freeze on $25 billion of debt in November 2009, the levels of government debt and state-owned companies is still quite sizable, having increased by $13 billion from last year to almost $103 billion, as according to estimates by Barclays.

Yet with the overall excitement from Dubai winning the bid for the Expo, along with gains in the economy, have, within the bond market, helped push Dubai’s credit to right levels. Yet, these high levels of debt could increase borrowing costs for Dubai.

However, a great deal of focus is being targeting on $20 billion of debt which was borrowed from the government of Abu Dhabi and other domestic institutions as a result of the financial crisis in 2009. The total amount comes from $10 billion borrowed from the Central Bank, $1 billion split between two banks in Abu Dhabi, and another $9 billion from the government of Abu Dhabi. The good news is Dubai is on track to paying back the debt and there are no talks to refinance the debt with Abu Dhabi.

But it’s not just the government that’s coping with debt; many state-owned companies are also facing debt payments, which are coming up. Dubai Group is still restructuring $10 billion of debt, aiming for repayments to be within the next three to 12 years. Dubai World is also coping with debt, but has managed to deal with a $4.4 billion loan due in two years by selling off some of its assets.

Yet, companies such as Borse Dubai, with $1.8 billion in loans due, and Nakhell with $1.9 billion, are expected to be refinancing according to a recent report by Barclays.

Even though the debt repayment schedule looms over Dubai, most companies are going to be able to pay back the loans, and those who aren’t will simply refinance those loans, while all companies are expected to borrow again in the next year to prepare for the Expo and make the proper investments, which should turn by 2020. So for now there’s little need to worry as the recovery from the 2009 financial crisis is still taking its course, all while Dubai’s economy continues to grow and show no signs of stopping. That being said, now is the right time to start thinking about new investment opportunities in anticipation for an economic boom from the Expo. So talk to Globaleye and find out what’s right for you and your portfolio.

Globaleye – Committed to Providing Top Quality Business Solutions

Even long established major corporations do not always have it all figured out,  which is why they know how vital it is to have a reliable group of financial advisors who can take a step back and assess the situation from all angles.  Globaleye, in its 13 years of work, has successfully grown a strong client base all over the world.  Known widely for being an independent firm that provides unbiased business solutions, it has become the premier go-to consultant of important international companies seeking financial planning assistance.

Many companies directly sought the services of Globaleye during the height of the global recession. The business financial planning assistance that the group provided secured the financial status of a number of companies. When major business groups left and right were forced to terminate their operations because of the strain brought about by the unstable global economy, these companies remained operational due undoubtedly to the expertise of the advisors from Globaleye.

Globaleye’s mission statement is, “to deliver unbiased financial solutions to corporate and private clients worldwide with an onus on innovation, service and professional integrity.”  This is easily vouched for by the fact that the group is not associated with any investment organization which is the very reason why their clients always have the assurance that their complete satisfaction is the sole objective of the company. This client-centred approach is one of the driving forces behind the success of the company; every service provided by Globaleye is tailored to the specifications of their clients.

It’s also important to note that Globaleye has upgraded its service through the creation of the Globaleye Bulletin Service, or GBS.  The GBS keeps subscribers up to date with the latest developments pertinent to the different business industries. Another new and important provision is the Globaleye Portfolio Service, or GPS, which provides a monthly email updates on the financial plans of clients. With these new programs the group’s clients easily have access to all the important information that affects financial planning trends thus giving them the advantage of incorporating new strategies to prevent any changes from impacting their businesses in a negative way.

It’s no wonder, in a relatively short span of time, Globaleye has managed to establish a client base of over 7,000.  The group exceeds the usual provisions of competing financial planning firms, goes the extra mile in making sure that they only provide top quality financial solutions, and it has even won the title of Personal Lines Broker of the Year in the Gulf Insurance Review Awards and, Policy Magazine’s Middle East Insurance Awards, and the MENA Insurance Awards— truly their clients can no longer ask for anything more.

Handle Your Personal Finances Better with the Financial Calculators of Globaleye

Everybody could use some help managing their personal finances better; even those who are particularly gifted in dealing with money matters will sporadically require some assistance. With the financial calculators that Globaleye provides, knowing the important figures to become more prepared monetarily for the future is as simple as pressing a couple of buttons.

On Globaleye’s website there are nine financial calculators all absolutely free for use; each of them is designed to compute an approximate figure for a specific financial system.  The first calculator is the college savings calculator created to help parents and children save enough money to cover college education expenses.  It determines whether there may be a need to make budget adjustments or apply for financial assistance from lending institutions later on.

The second calculator is the retirement calculator. Many employees get started on their retirement savings really early in the hope of accommodating all their retirement goals. Using this calculator will help people better understand the different levels of the retirement financial system, allowing them to create an enhanced strategy to ensure their financial security once they stop working. Compared to the other online retirement calculators that just deal with the input of the users, the one Globaleye provides will even adjust for inflation so users end up with a more accurate figure.

A mortgage is something most people always allot money for.  Completely paying it off takes years for a lot of people, but with the help of the early mortgage pay-off calculator, people can devise a plan to finish off all mortgage payments earlier than the initial assigned breakdown. This calculator will help determine how much money can be added to the usual monthly rate to cover the complete mortgage within the adjusted schedule.

Those people who have dreams of becoming incredibly rich once they reach a certain age will surely find the millionaire calculator useful.  Simply learning how much money they can save within a given time as well as possible profits from investments can make becoming a millionaire more attainable.  A lot of young and successful people claim that doing the math and learning the breakdown required to meet the desired amount really make all the difference.

The other calculators available on Globaleye’s website include the annual housing appreciation calculator which works well for those who are waiting to sell their house; the commuting cost calculator which is incredibly important nowadays because of the insane gas prices which practically affect all aspects of living; the mortgage payment calculator; and the savings calculator.