MSCI to remove Saudi shares from its data JEDDAH - Global equity index provider MSCI will no longer list Saudi stocks in its data after refusing to comply with a demand by the country's bourse for final approval over what stocks are included in its indexes. The Tadawul had set a Monday midnight deadline in demanding veto rights over the composition of certain indexes compiled by MSCI. MSCI said it could not agree to the demands of Tadawul, which included the right to veto certain product licenses that are sold to third parties to create instruments such as exchange-traded funds. MSCI has told its clients that it may be “forced to cease calculating indices containing securities listed on Tadawul.” Tadawul is the biggest Gulf stock market but foreign investors can only have limited access to it. Only investors based in GCC countries may invest in Saudi Arabian stocks, and Saudi Arabian stocks are included only in MSCI GCC Countries Indices and MSCI Arabian Markets Indices; they are not included in the MSCI Emerging Markets Index Series or any other MSCI Index Series. - Agencies Moody's confirms UGB negative outlook LIMASSOL - Moody's Investors Service has confirmed on Wednesday the Baa3/Prime-3 deposit ratings, Ba1 subordinated debt rating and D+ bank financial strength rating (BFSR) of United Gulf Bank BSC (UGB), with a negative outlook. The action concluded Moody's review of the bank's ratings initiated on May 12, 2008, (and extended on Nov. 27, 2008), which focused on how the sales of UGB's commercial banking subsidiaries to Burgan Bank (A2/Prime-1/D+) were likely to affect its business mix and risk profile. The sale of three banking subsidiaries took place in 2008 (JordanKuwait Bank) and the first half of 2009 (Algeria Gulf Bank and Bank of Baghdad) while the sale of a further banking subsidiary (Tunis International Bank) is due to be completed by the end of the year, subject to regulatory approval. - SG BFX to attend SFOA Burgenstock confab MANAMA - Bahrain Financial Exchange (BFX), the first multi- asset exchange in the Middle East and North Africa, which will be internationally accessible to trade cash instruments, derivatives, structured products and Shariah-compliant financial instruments when launched in Q1, 2010, will participate in the 30th International SFOA Burgenstock conference, the annual International forum for derivative markets. The conference will be held at Interlaken in Switzerland on Sept. 9-12, 2009. Arshad Khan, director, BFX, said it “will be a perfect platform to introduce the BFX and to reinforce the integral role the BFX will play in driving liquidity in the Islamic and conventional markets within the Middle East.” – SG QEC seals infrastructure contract DOHA - Qatar Entertainment City (QEC) announced a QR100 million tender award to HBK Contracting (Hamad bin Khalid Companies) for the latter to complete QEC's phase II of the infrastructure within 18 months. Phase II of the Infrastructural work includes the construction of roads, sewage network, water systems, main irrigation system including a connecting network for fire fighting. HBK will also be establishing the electrical work such as road lighting as well as the construction of 6 bridges over the water canal and implementing a traffic system. Yousef Darwish, general manager of Qatar Entertainment City, said “ the completion on time is one of our top priorities as completion of other phases is dependent on this particular activity. HBK are known for their professional and high standard workmanship and we are confident that the result will be a very positive one for QEC.” Ali bin Hamad Al Thani, HBK chairman, said, “the project's components are very unique and much needed in our country. One of the main factors of success is an outstanding infrastructure work - which is what we plan on delivering on time.” Entertainment City is an Abu Dhabi Investment House concept of a mixed use development containing components of retail, residential and hospitality with a focus on Entertainment.