ALLIOTT GROUP http://www.effortz.com/projects/alliott RSS Feed updates from News / Version 3.0. 40 <![CDATA[Alliott Group is an worldwide alliance of independent accounting, law and consulting firms. ]]> http://www.effortz.com/projects/alliott/en/newsmore.aspx?newsid=6 http://www.effortz.com/projects/alliott/en/newsmore.aspx?newsid=6 8/12/2010 02:11:20 Alliott Group Legal members provide an ever expanding global presence offering fellow members and their clients legal expertise across a broad range of practice areas in commercial centres throughout the world. Alliott Group offers independent firms the opportunity to extend nationally, regionally and globally with their clients through access to other firms of likeminded professionals, committed to providing the highest standard of service.

Alliott Group Legal members provide an ever expanding global presence offering fellow members and their clients legal expertise across a broad range of practice areas in commercial centres throughout the world. Alliott Group offers independent firms the opportunity to extend nationally, regionally and globally with their clients through access to other firms of likeminded professionals, committed to providing the highest standard of service.

]]> <![CDATA[Alliott Group has gone from country to country, continent to continent and strength to strength, expanding its coverage]]> http://www.effortz.com/projects/alliott/en/newsmore.aspx?newsid=3 http://www.effortz.com/projects/alliott/en/newsmore.aspx?newsid=3 08/21/2010 02:13:28 Alliott Group has gone from country to country, continent to continent and strength to strength, expanding its coverage, role and breadth of services to match the various demands of clients across 70 countries extending throughout Europe, Africa, the Middle East, North America, Latin America, Asia, the Far East, Australasia and the Pacific Rim through over 240 member offices.

Alliott Group brings a vast collection of international knowledge and ‘local' knowhow to operations across the business spectrum and a “people-first” philosophy. A process of creating a unified personal service that not only straddles international frontiers but also fully understands and incorporates specific political, legal and regulatory differences country-by-country, region-by-region and state-by-state. Information is shared throughout the group through Alliott Group's website, newsletters, training, technical programs and both regional and worldwide Conferences.

Alliott Hadi Shahid (AHS) is a member firm of Alliott Group. The firm has been operating in the United Arab Emirates since 1976.We are proud to offer the highest level of technical expertise and regional experience to our valued clients in the UAE and AGCC Countries through our offices in Abu Dhabi, Dubai, Sharjah, Al Ain, Jebel Ali Free Zone and internationally through our affiliation with the Alliott Group's members whose numbers exceed 200.

 

]]> <![CDATA[Price of hotel rooms soars in Makkah]]> http://www.effortz.com/projects/alliott/en/newsmore.aspx?newsid=7 http://www.effortz.com/projects/alliott/en/newsmore.aspx?newsid=7 08/23/2010 01:17:27 Makkah: Hoteliers in Makkah, the birthplace of Islam, run the risk of killing the goose that lays the golden egg by quadrupling prices during Ramadan when millions of pilgrims flock to the city on Saudi Arabia's Red Sea coast.

"We're used to seeing prices jump during this month, but this year, they have reached ridiculous and unbelievable levels," said Mohammad Abdullah, a Saudi engineer who visits Islam's holiest city every year. "No wonder you see many pilgrims either sleep in the Grand Mosque, or in their cars to avoid paying what hotels and apartment owners are asking for," he told Zawya Dow Jones.

Rates for a night in a single room in main hotels around Islam's holiest shrine have risen to more than 4,000 Saudi riyals (Dh3,911), up from less than 1,000 riyals before the advent of Ramadan. That compares with $411 (Dh1,509) quoted for a room in the swanky W Hotel in Washington DC, or $695 a night for a room in The Plaza, overlooking Central Park in New York.

Good season

When contacted by Zawya Dow Jones some hotels said prices will reach 6,500 riyals a night in the last 10 days of the Islamic month. "We were hoping for a good season as we are just recovering from the effects of the H1N1 virus and the global economic crisis," said Jaafar Sallam, an owner of a clothing shop in the city.

Some pilgrims travel for Umrah from as far away as Australia but most come from relatively nearby Arab states, the Indian sub-continent and Africa, with many unable to afford the current rates, Sallam said.

About 1 million pilgrims are expected to visit the city during this Ramadan, and spend about 1.5 billion riyals, according to Saudi officials. "Prices for hotels and furnished apartments used to rise by about between 20 per cent and 25 per cent during Ramadan," said Sa'ad Jameel Al Qurashi, chairman of the Haj and Umrah committee at the Makkah Chamber of Commerce & Industry.

Makkah also receives more than 2 million pilgrims every year to perform the Haj, the world's largest annual religious pilgrimage, which is expected to take place this year in November. Foreigners usually spend about 7 billion riyals during the Haj season alone, while locals add 3 billion riyals to this figure, according to research by Riyad Bank.

In total, the Haj season brings in around 40 billion riyals to the Saudi economy, or about 10 per cent of the non-oil private sector's contribution to gross domestic product. Traders already complain that the demolition of some 1,400-year-old buildings from the early Islamic period harm their business.

"Everyone should remember that people are here to worship God," said a receptionist at a three-star hotel in Makkah. "They are not money cows to be milked."

]]> <![CDATA[How to market professional service firms?]]> http://www.effortz.com/projects/alliott/en/newsmore.aspx?newsid=10 http://www.effortz.com/projects/alliott/en/newsmore.aspx?newsid=10 8/26/2010 06:15:37 When a firm has a true market orientation, it is focused on its clients and how to deliver top quality services to those clients. Robert C. Sawhney of Hong Kong based consulting firm SRC Associates Ltd, explains how marketing, when done properly, can maximize a professional service firm’s financial performance.

Some professional service firms think of marketing as an add-on that involves promotional materials, such as websites and sales brochures. When marketing is viewed this way, its ability to lift a firm’s performance is, at best, hit and miss.

Professional service firms are different from consumer product companies. As a knowledge-based firm, an accounting firm’s ability to leverage professionals’ experience and know-how depends on whether it can engage its people and link the core activities of strategy, marketing, human resources and knowledge management. This will fail if you don’t have the full support of your staff.

When a firm has a true market orien-tation, it is focused on its clients and how to deliver top quality services to those clients. It seeks to understand clients and the marketplace, and share that information within the firm. This allows the firm to provide an upward spiral of better services, and new and innovative products.

]]> <![CDATA[Three firms join Alliott Group]]> http://www.effortz.com/projects/alliott/en/newsmore.aspx?newsid=12 http://www.effortz.com/projects/alliott/en/newsmore.aspx?newsid=12 08/24/2010 06:23:41 As of July 1st, Alliott Group invited three firms to become full members of the Group.

Alliott Group continues to increase its membership with the addition of the three new members. With two firms joining in Europe and the other in Asia, Alliott Group now has members in 70 countries.

The new member firms are:

Accounting Firm

Ljubljana, Slovenia - UPC CONSULTING GROUP www.upc-si.com

Law Firms

Tokyo, Japan - Atsumi & Partners www.aplaw.jp

Gdańsk, Poland - Madry Gniewkowski Sznycer www.mgs-law.eu

The first six months of 2010 have seen ten firms become members of Alliott Group.

James Hickey, responsible for membership development at Alliott Group, noted that, 'the Group continues to develop its presence in Europe but I am delighted that we now have been able to establish our law firm membership in Asia with the addition of Atsumi & Partners to complement the exisiting membership of HJM Asia Law & Co in China'.

]]> <![CDATA[2011 EMEA Regional Conference, Dubai, UAE]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=18 http://www.alliottuae.com/en/newsmore.aspx?newsid=18 2/15/2011 00:41:27

Alliott Hadi Shahid hosted the Alliott Group 2011 EMEA Annual Meeting in Dubai, UAE on from the 5th to 7th of  May 2011. This was attended by over 50 members of the Alliott Group from different countries.

The three- day meeting was an excellent opportunity to meet with the members of the Alliott Group from all over the world and create an opportunity for networking, collaboration, sharing of technical information, and building of trust relationships internationally.

 

 

]]> <![CDATA[Dubai to Issue Investors Instant Trade Licences]]> http://alliottuae.com/en/newsmore.aspx?newsid=22 http://alliottuae.com/en/newsmore.aspx?newsid=22 3/25/2012 09:29:27
The Department of Economic Development initiative to allow investors to have their licences issued immediately is going to drastically simplify the investment and business registration process.

Dubai: The Dubai Department of Economic Development (DED) is planning to issue instant trade licences to investors under a new ‘120 days hassle free licence' initiative that will be launched this year.

The move, which will allow investors to have their licences issued immediately, will drastically simplify the investment and business registration process, depending on the risk factors of the intended business activity.

“The 120- day licence is part of DED's efforts to enable businesses to make full use of the advantages of Dubai and improve the emirate's ranking in the Doing Business Report of the World Bank,” Mohammad Shael, Chief Executive Officer of the Business Registration and Licensing (BRL) Division.

The UAE has improved its rank in Ease of Doing Business to 33 in 2012, up from 35 in 2011, under the World Bank's annual Doing Business report. DED said the scheme is aimed "to give businesses in Dubai a head start and promote the emirate's competitiveness."

"It is critical today that we ensure that the key sectors of our economy — trade, logistics, finance, knowledge sector, tourism, retail, and manufacturing and industry — are made even stronger and more competitive in this globalised age," Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai, said.

DED, the government's trade licensing and regulatory body, renews and issues roughly 120,000 trade licences annually.

The 120- day licence allows businessmen to start businesses immediately and complete the rest of the licensing requirements, such as approvals from other government authorities concerned, within the subsequent 120 days.

Government authorities are entitled to ensure full compliance by the licence holder to the licence criteria on day 121.

The initiative, being implemented under the directives of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, will simplify procedures and facilitate business.

Quick growth

"Dubai being a hub, various categories of businesses choose to set up in the emirate for faster growth and market access.

"The 120- day licence is part of DED's efforts to enable businesses to make full use of the advantages of Dubai and improve the emirate's ranking in the Doing Business Report of the World Bank," said Mohammad Shael, Chief Executive Officer of the Business Registration and Licensing (BRL) Division at DED.

Business activities have been categorized as no-risk, low-risk and high-risk for the sake of evaluating the risk component.

More than 90 per cent of the businesses in the emirate are no-risk or low-risk and therefore a vast majority of businesses stand to benefit from the 120- day licence.

For high-risk business activities constituting the remaining 10 per cent, such as restaurants and clinics, all standards set by the government authorities concerned must be fully met before DED issues the licence.

Dr Khalid Maniar, founder and managing partner of Horwath MAK, told Gulf News, "The move will definitely attract investment and improve the competitiveness of Dubai, and enhance its global ranking in doing business."

Shael said: "The categorisation depends on four main risk factors, evaluated on the basis of whether the business activity is harmful to human beings, harmful to animal life, harmful to plants, or harmful to the environment.

"When a businessman approaches DED for a licence, a 120- day licence is issued immediately, on completion of the necessary procedures, if the specific business activity falls under the no-risk or low-risk categories."

Positive

Jitendra Gianchandani, Chairman and Managing Partner at Jitendra Consulting Group, said, "At the outset, the initiative looks very positive. However, a business cannot function if bank accounts are not opened and visas are not issued.

"So I don't know how the banks and the Ministry of Labour will be reacting to this as they will be linked to this. Recently banks have implanted stringent KYC [know your clients/customer] requirements. With such type of temporary licence, how will they open the bank account?" he asked.

It reflects that all emirates are not working in unison, he said.

"This is already an existing problem for investors and it will add to further confusion in the future," he said.

Further clarification on the cost of issuing such licences and conversion to a permanent licence is needed, Gianchandani said.

The low-risk category includes chemical plants and similar industrial operations that require pre-approvals from various authorities including the Dubai Municipality and Civil Defence.

"As the standard classification of the activity book is issued by the Ministry of Economy, which is a federal government body, therefore classification of activities by DED as no-risk or low-risk requires changes in the activity book of the Ministry of Economy," Gianchandani says. "If they don't change [it], then it will create confusion and will add to the bureaucracy. Besides, the issuance of visas and bank account procedures in the case of ‘hassle-free licences' has to be clarified," Gianchandani said.

"In order to improve the rank as per the World Bank's ease of doing business, the same changes will have to be carried out across the UAE and not only in Dubai."

Non-Emiratis are already allowed to hold 100 per cent ownership in Dubai companies even without a free zone licence. Professionals such as doctors, technicians, carpenters, cooks etc can have 100 per cent ownership unless the entity is a Limited Liability Company (LLC).

Expatriates can only have 49 per cent ownership in LLCs with UAE nationals holding 51 per cent.

Philosophy

Referring to the 120- day hassle-free licence as a new philosophy of business registration and licensing, Shael said the initiative along with significant reforms like Law No 13 of 2011 will dramatically enhance the ease of doing business.

"These facilities have stringent standards often embedded in their design and they go through years of preparations and inspections. Hence there is no risk in issuing them a licence.

"It will in fact allow them to complete procedures like testing and hiring before starting actual operations," Shael said.

Law No 13 issued by Shaikh Mohammad in 2011 acknowledges the contributions of free zone companies to Dubai's economy and allows such firms to open branches in Dubai while maintaining their presence in the free zone.
]]> <![CDATA[WTO urges UAE to liberalise trade regime]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=23 http://www.alliottuae.com/en/newsmore.aspx?newsid=23 4/2/2012 04:04:12
By Saifur Rahman, Gulfnews, April 2, 2012

WTO members have asked the UAE to consider amending its government procurement regime by removing the requirement to employ a UAE national in order to submit tenders and to review its transparency procedures for all bidders as well as its offset programme.

Dubai: The World Trade Organisation (WTO) yesterday urged the UAE to liberalise its foreign investment regime and scrap laws that give local companies a monopoly in the sale and distribution of foreign branded goods.

In a statement following the conclusion of the UAE's second Trade Policy Review (TPR) with the WTO — six years after the first review in 2006 — WTO officials stressed that changes to the Commercial Companies and Commercial Agencies Law were still needed.

"They [WTO members] encouraged the UAE to speed up the promulgation of its new law on the liberalisation of foreign investment and modernise the business environment," said Eduardo Munoz, the chairman of the WTO's Trade Policy Review Body.

"Members also encouraged the UAE to eliminate local services/agent requirements, and to increase the transparency, accountability, and effectiveness of government administration."

At the meeting, the UAE government submitted its TPR document in which it admitted that its investment regime — relating to companies — remains "more restrictive than the trade regime".

"The investment regime remains considerably more restrictive than the trade regime, as foreign participation in any domestic company or activity is limited to 49 per cent of the capital. However, 100 per cent foreign ownership is allowed in any of the UAE's free zones," said the document submitted by the Ministry of Foreign Trade.

Speaking after the meeting, Shaikha Lubna Al Qasimi, minister of foreign trade, said "The UAE will continue to uphold its free-market strategy and will proceed with reviewing all existing policies in order to make them as resilient, adaptable, and responsive to future challenges."

"Local companies have nothing to fear. Competition and openness can only strengthen them," said Khalid Maniar, founder and managing partner of Crowe Horwath.

But he added that the UAE should not be alone in opening its markets. "Whatever the UAE decides, that has to be in line with the GCC countries as the region is currently in the process of economic integration."

WTO members have asked the UAE to consider amending its government procurement regime by removing the requirement to employ a UAE national in order to submit tenders and to review its transparency procedures for all bidders as well as its offset programme.

Competition legislation

"Acknowledging the current absence of full-fledged competition legislation, members commended the UAE for preparing a draft competition policy law and urged to bring it into effect as soon as possible. Questions were raised about the procedures and criteria for fixing prices and the exemptions of state-owned enterprises and small and medium-sized enterprises from competition regulations," Munoz said.

"A major development in the telecommunications sector during the review period was the termination of the monopoly in telephony services. However, competition in the sector remains low; there is a duopoly in mobile telephony, which result in relatively high prices. The market could benefit from increased competition in the sector."
]]> <![CDATA[WTO Highlights UAE's Importance in Global Trade]]> http://www.alliottuae.com/en/newsmore.aspx?newsid= http://www.alliottuae.com/en/newsmore.aspx?newsid= 04/01/2012 01:07:31 <![CDATA[WTO Highlights UAE's Importance in Global Trade]]> http://www.alliottuae.com/en/newsmore.aspx?newsid= http://www.alliottuae.com/en/newsmore.aspx?newsid= 04/01/2012 01:18:05 <![CDATA[WTO Highlights UAE's Importance in Global Trade]]> http://www.alliottuae.com/en/newsmore.aspx?newsid= http://www.alliottuae.com/en/newsmore.aspx?newsid= 04/01/2012 01:20:44 <![CDATA[WTO Highlights UAE's Importance in Global Trade]]> http://www.alliottuae.com/en/newsmore.aspx?newsid= http://www.alliottuae.com/en/newsmore.aspx?newsid= 04/01/2012 01:46:24 <![CDATA[hhh]]> http://www.alliottuae.com/en/newsmore.aspx?newsid= http://www.alliottuae.com/en/newsmore.aspx?newsid= 04/02/2012 01:50:59 <![CDATA[WTO Highlights UAE's Importance in Global Trade]]> http://www.alliottuae.com/en/newsmore.aspx?newsid= http://www.alliottuae.com/en/newsmore.aspx?newsid= 04/01/2012 01:56:27 <![CDATA[WTO Highlights UAE's Importance in Global Trade]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=31 http://www.alliottuae.com/en/newsmore.aspx?newsid=31 4/5/2012 02:03:47
The World Trade Organization [WTO] has underlined, in the conclusion of the 2nd Trade Policy Review [TPR] of the United Arab Emirates at the WTO's headquarters in Geneva, the important role the UAE plays in global trade and in the multilateral trading system, expressing its hope for more prosperity and success for the UAE in building a more advanced knowledge-based economy and in strengthening its role in the organization to further strengthen the foundations of the multilateral trading system.

Colombian Ambassador Eduardo Munoz, the Chairman of the WTO Trade Policy Review Body, said in the concluding remarks of the Trade Policy Review of the UAE, that " this Review has confirmed the important role played by the UAE in the multilateral trading system and the benefits of maintaining an open economy".

Munoz added that WTO "members commended the UAE [during TPR discussions] for the bold steps taken to diversify the economy away from oil and gas'.

The Chairman pointed out that the members also praised the country's open trade regime, which applies low tariffs that have not exceeded 4.9 percent in 2011, enabling the UAE to "successfully weather the global crisis without backsliding on trade liberalization".

Munoz added: "Members encouraged the UAE to continue its reforms in order to achieve its goal, based on the 'UAE Vision 2021', to transform the economy into one that is knowledge-based, highly productive, and competitive". He also pointed out that "Members welcomed the UAE's commitment to the multilateral trading system and encouraged it to further foster its participation" in order to achieve its economic diversification related goals.

For her part, Reenat Sandhu, the Deputy Permanent Representative of India to the WTO and TPR discussant, said that the member states have commended the UAE "for its open and liberal trading regime [which is] characterized by a simple tariff structure, low applied tariffs and few non-tariff barriers".

She added that "members have welcomed the UAE's progressive economic agenda and diversification strategy of promoting growth in the services and non-oil sectors, particularly air and maritime transport, telecommunications and tourism", adding that the UAE's "business friendly environment and free trade zones have been applauded as a successful model for investment promotion".

The Indian diplomat pointed out that "the UAE [has] received more than 220 questions, which is reflective of the immense interest of Members in the UAE economy and in promoting trade and economic ties with the country." "They are also reflective of the active role played by the UAE bilaterally, regionally and multilaterally as a trading nation" Sandhu added.

She expressed the hope "that this trade policy review will serve as a useful basis for further enhancing the UAE's trade and commercial engagement with the rest of the world".

She concluded her remarks by stating that member states have submitted a number of recommendations regarding strengthening the efforts undertaken by the UAE to support the global multilateral trading system.

The closing session of the TPR also saw interventions from the WTO representatives of the European Union, the United States of America, the Islamic Republic of Pakistan among others, who commended the UAE's trade policies and its steadily growing role in global trade.

For her part, the Permanent Representative of the EU at the WTO stressed that the UAE is regarded as a strategic partner for the EU and that the European block hopes to increase its current levels of cooperation with the UAE through the signing of a Free Trade Agreement with the Gulf Cooperation Council.

For his part, the US Representative commended the performance and flexibility of the UAE trading system and the country's effective participation in the WTO and support of the 'Doha Development Agenda', which promotes the multilateral trading system.

The US official added that his country looks forward to more economic and trade cooperation with the UAE through achieving more openness and flexibility in the laws and legislations of both countries.

For her part, the WTO Representative of Pakistan expressed her country's appreciation of the UAE's achievements in developing its trade legislations, laws and infrastructure in the service of global trade since the first UAE TPR was conducted in 2006, adding that ever since the first report was issued, the UAE had risen to become one of the most important centers for global trade.

The Pakistani official pointed out to the growing strategic trade relationship between the UAE and Pakistan, adding that the UAE is one of Pakistan's significant global trading partners.

The Pakistani diplomat added that the 2nd TPR of the UAE has reflected the progress attained by the UAE in its trade policy, expressing her country's confidence in the UAE's ability to achieve further successes in the global trade arena.

For her part, Sheikha Lubna bint Khalid Al Qasimi, the UAE Minister of Foreign Trade, in her closing remarks during the closing session of the UAE's 2nd TPR, said that "the UAE will continue to uphold its free-market strategy" and will proceed with "reviewing all existing policies in order to make them as resilient, adaptable, and responsive to future challenges".

Sheikha Lubna added that the UAE appreciates the praise it has received from member states for its trade policies. She also expressed her appreciation of statements from many members states affirming their strategic trade partnership with the UAE.

She also commended statements made by member states in recognition of the UAE's efforts to overcome the effects and ramifications of the global financial crisis without recourse to protective measures.

She stated that the UAE will continue to develop its economic and legislative laws and legislations and to diversify its economy within the "UAE Vision 2021" framework.

She also affirmed that the UAE is ready to provide more information about its trade policy and to deliver on its obligations to the WTO, adding that the UAE will continue to work with the WTO Secretariat and to benefit from its expertise and the technical assistance it offers member states.

Sheikha Lubna concluded that the UAE is ready to respond to any additional questions or enquiries other than the ones already presented by the member states during this TPR, which were over 220 questions, adding that "the UAE is ready to respond, within the timeframe set by the WTO, to any further requested clarifications or enquiries made by member states".

]]> <![CDATA[Electronic Trade Licences from 8th April: DED]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=32 http://www.alliottuae.com/en/newsmore.aspx?newsid=32 4/5/2012 04:47:06
The Department of Economic Development in Abu Dhabi (DED) is due to start on Sunday, 8th April, the process of issuing electronic trade licences.

The Department of Economic Development in Abu Dhabi (DED) is due to start on Sunday, 8th April, the process of issuing electronic trade licences whereby all clients will have to submit the required documents in an electronic format.

Mohamed Moneef Al Mansouri, the acting Executive Director of the Commercial Affairs Division at DED, stated that this measure is being introduced within the framework of DED’s endeavor to upgrade and promote the process of issuing trade licenses in Abu Dhabi using electronic means, aiming to accelerate the issuance process towards the fulfillment of the Emirate’s ultimate goal of shifting into an E-government.

He said such a measure would back Abu Dhabi government’s efforts towards shifting into an E-government with regard to measures and transitions of issuing licenses for trade activities in Abu Dhabi.

He said this measure will ease the standard procedures required for issuing a trade licence, help towards economizing the use of paper, consolidate the environment protection efforts and minimize the file storage and archiving costs, and will also ease their retrieval in a manner that improves the provision of services, and saves the time required for the clients and the DED to fulfill their transactions.

Al Mansouri indicated that the total number of archived documents of trade licenses that have been stored using the old traditional methods in the period from January through November 2011 amounted to 26,388 whereas the total number of archived pages amounted to 484,429 and the Xeroxed pages amounted to 1,88,847.

He indicated that such transactions require enormous efforts and are time-consuming, which will be significantly reduced through the implementation of the electronic archiving system. Such an approach will also increase productivity and transactions that will be accomplished right on time.

Al Mansouri added that Abu Dhabi witnessed a momentum of commercial activity over the past few years, which contributed to the rise in the number of transactions and trade licenses. He indicated that in the second half of 2011, the number of trade licenses issued in Abu Dhabi amounted to 295,515, compared to 79,655 licenses issued in January and February 2012 alone.

He said that the paper files of the trade license transactions, which DED archived using the old mechanism, in fact showed the enormous size of trade transactions related to the issuance, renewal and amendment of licenses as well as those related to other administrative measures such as advertisements, permits and booking a registered trademark etc.

To ensure successful implementation of the electronic archiving system for trade licenses in Abu Dhabi, DED has drawn up a plan to raise the client’s awareness in a manner that qualifies them to idealistically be able to handle and interact with DED in this particular measure. Towards this end, DED will organize workshops, establish contacts and distribute booklets that show sound mechanisms of handling DED’s Customer Service centre in Abu Dhabi.

During the workshop, trainees were trained on ideal scanning the documents required for electronic trade licenses in a manner that eases the required measures for both customers and the Customer Service employees.

To ensure smooth processing of trade licenses, DED is seeking to draw up an awareness plan via a variety of communication channels, most prominently different media outlets so as to acquaint clients with dealing with the Customer Service centres when inquiring about the documents necessary for their transactions.

As of next week, DED will start distributing guiding booklets to customers to acquaint them with the mechanisms whereby they can have all necessary documents issued smoothly. This incorporates the archiving system’s general targets, general guidelines and the recommended sitting for scanning a document, apart from a list of 63 file names which an applicant should abide by when saving an electronic file.

DED will start next week sending SMS to all clients to inform them of the date of receiving their transactions electronically and define the importance of their interaction with the Customer Service centres in a manner that eases DED’s implementation of this new system.

The DED’s Trade License Department has recently conducted a successful practical experiment to apply the electronic archival system by receiving a number of online transactions and then handling them. The experiment showed facility for promptly accomplishing the procedures, saving time and effort, and fulfilling transactions in no time.

During the workshop, owners of printing houses in Abu Dhabi, the Western Region and Al Ain were instructed to ask their clients to scan their original documents only using TIF, JPEG or PDF. However, it is preferably to scan documents using PDF format, otherwise no other formats would be accepted. Scanned documents must be clear and readable when verified against the original documents.

The workshops also emphasized that it is necessity for a customer to save all his scanned documents on one file when presenting them to the DED’s Customer Service centre, especially if the total number of pages exceeds 30 pages, such as in cases of contracts etc...

The workshops have also illustrated that owners of printing houses, when naming a file, must give the trade license file the same name of the document. For example, if a file contains a passport copy, then the file must be named ‘passport’ only. Such a measure is meant to make the process of saving and retrieving files easier for the Customer Service employees.

Mohamed Moneef Al Mansouri, the acting Executive Director of the Commercial Affairs Division at DED, called upon customers to abide by all the online technical terms and conditions in order to ensure successful online issuance of trade licenses. He indicated that DED from now on, will distribute guiding booklets to all customers to acquaint them with such measures.

He expressed his wish that people would interact with DED’s measures towards its strategic objectives of fulfilling Abu Dhabi government’s aim to promote its electronic transaction standards.
]]> <![CDATA[Full steam ahead for UAE investment - Dubai ruler]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=33 http://www.alliottuae.com/en/newsmore.aspx?newsid=33 4/10/2012 01:54:10
The UAE's vice president and ruler of Dubai has pledged to push ahead with the Gulf state's ambitious investment strategy.

Speaking days after a United Nations report ranked the UAE as the happiest country in the Arabian Gulf, HH Sheikh Mohammed bin Rashid Al Maktoum, said the Gulf state would continue to invest in its citizens' futures.

"We are pressing ahead with our plans to invest in our resources to achieve comfort and happiness to all," Sheikh Mohammed said in a statement to state news agency WAM.

"It is the duty of the government to provide citizens with excellent quality of life, prosperity and opportunities to the citizens to achieve happiness," he added.

"This requires rallying efforts, formulating right policies and laws, ensuring security, justice and safety to the community, tending to the underprivileged segments and the continuously developing infrastructure. It also requires clear plans, capable teams and optimum use of available resources."

The oil-reliant UAE economy is still recovering from its 2009-2010 debt crisis in Dubai, marked by a US$25bn debt restructuring and record high provisions against bad loans, many of them to government entities.

The UAE economy is expected to grow nearly four percent this year, the Gulf state's Economy Minister Sultan bin Saeed Al Mansouri said last month. The prediction was more optimistic than the forecast by the International Monetary Fund, which said economic growth would slow to 2.3 percent in 2012.

The Gulf state was last week ranked 17th worldwide in a United Nations happiness survey, making it the second happiest country in the Middle East behind Israel. Neighbouring Gulf states Saudi Arabia, Qatar and Kuwait, ranked as the 26th, 29th and 31st happiest places in the world, respectively.

The least happy places in the Middle East were Yemen, Afghanistan and Palestine, the report judged.

"The development plans we approved, the initiatives we launched and the policies and laws enforced, have all but one goal; to bring about happiness to the citizens, their families and their children. What we have achieved so far is just an initial milestone that will be followed by harder work and more accomplishments so we can become the world's best," said Sheikh Mohammed.
]]> <![CDATA[Dubai Best Positioned to Trade with South Africa]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=34 http://www.alliottuae.com/en/newsmore.aspx?newsid=34 4/12/2012 08:29:42
Dubai: Dubai Exports has urged South African companies to use the emirate as a hub to transport goods to GCC countries.

Saeed Al Awadi, chief executive of Dubai Exports, said yesterday that South Africa was an important source of business for Dubai due to its role as a regional hub.

"The South African Development Community (SADC) represents a strategic growth market within Africa. Together the 15 member states in SADC have a population of over 257 million and they import food worth nearly $11 billion [Dh40.39 billion]," said Al Awadi.

"Exporters in Dubai are best placed to successfully target the developing economies in SADC, with a fast and reliable supply of processed foods. Dubai is already well connected to South Africa, which offers a gateway to the rest of Safc [region], with its efficient transport infrastructure," added Al Awadi.

Major business

Total exports and re-exports from Dubai to South Africa in 2011 were valued at Dh1.5 billion with food exports and re-exports contributing Dh105 million, while Dh50 million came from free zone companies in Dubai.

Chocolate, fruit juices, pasta, wheat flour, rice and edible oils account for the majority of food exports and re-exports to South Africa from Dubai.

The Dubai Exports research shows that SADC as a whole offers additional export opportunities for a variety of foods including meat, sugar, confectionary and beverages, as their imports have grown at a rate higher than the global average.

Al Awadi added that Dubai's proximity to Africa and competitive business environment make it well placed as a trade hub for SADC to the regional market.

The SADC states have seen exports of their chief commodities like fruit and nuts, as well as fats and oils, growing at an annual average of 25-30 per cent, exceeding $2 billion, while GCC imports of these foodstuffs reached $4 billion in 2010, growing 40 per cent annually.

Irfan Al Hassani, a UAE-based economic expert, stressed the importance of improving trade links with South Africa.

"South Africa is fast becoming an emerging market which provides diverse products and resources," he said.

Al Hassani pointed out that greater Africa has good potential for UAE companies, with over 725 million consumers.

"The rich resources and high population of the continent might create a potential market for UAE exporters and importers," he said.
http://gulfnews.com]]> <![CDATA[UAE Banks are in ‘Good Position’]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=35 http://www.alliottuae.com/en/newsmore.aspx?newsid=35 4/15/2012 00:42:19
DUBAI — The UAE Central Bank on Saturday declared a Dh3.7 billion net profit for the fiscal year 2011.

Banks in the country are in a good position and should not be negatively impacted by the recent turmoil in international markets, the Central Bank said in a statement issued after the board of directors’ meeting.

The board also discussed drafts of financial laws and instructed introduction of some ‘major amendments’ to them. The board stressed that these laws should reflect the independence of the Central Bank and the independence of monetary policy, as per the international standards issued by the Financial Stability Board and Basle Committee standards.

One of the draft laws is Law No.10 of 1980 for the Central Bank, the monetary system and organisation of banking, while another laws pertains to the organisation of financial services, the Central Bank said without mentioning the suggested amendments.

The board meeting was chaired by Khalil Mohammed Sharif Foulathi and attended by Khalid Juma Al Majid, Deputy Chairman and Sultan bin Nasser Al Suwaidi, the Governor.

The board reviewed the audited annual accounts for the fiscal year 2011, and distribution of net profits at Dh3.7 billion. Initially it was approved that 55 per cent, or Dh2.03 billion, share of the federal government to be transferred to the Ministry of Finance. Twenty per cent to be transferred to Shaikh Zayed Housing Programme and remaining 25 per cent to the account of the Permanent Deposit of the Federal Government at the Central Bank.

Last month, the Central Bank announced that total bank deposits in the country reached Dh1.07 trillion by the end of 2011. Total bank loans and advances (net of provisions and interest in suspense) reported at Dh1.07 trillion and total bank assets declared at Dh1.66 trillion at the end of December 2011.

Furthermore, the board reviewed applications submitted by natural and juridical persons to establish companies and establishments to undertake financial activities and money changing business. The board approved the applications, which fulfill the terms as per the law and regulations, as applied to each business activity.
]]> <![CDATA[Aviation Sector Powers Economy to New Heights]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=36 http://www.alliottuae.com/en/newsmore.aspx?newsid=36 4/17/2012 00:43:21
Abu Dhabi: The aviation industry has directly contributed Dh61.3 billion to the UAE's economy, which is around 6.3 per cent, said Sultan Bin Saeed Al Mansouri, UAE Minister of Economy, in Abu Dhabi yesterday.

"By the time you account for the catalytic effect in key sectors like tourism, this builds up to approximately 15 per cent, a contribution of nearly Dh150 billion," he said at the Global Aerospace Summit.

Al Mansouri touched on the investments going into the expansion of infrastructure, including the Dh30 billion redevelopment of the Abu Dhabi International Airport, Shaikh Zayed Air Navigation Centre and Dubai World Central.

"These elements are all part of a broader strategy to work towards designing and building a plane in Abu Dhabi by the end of the decade," Al Mansouri said.

"What we need to move to the next stage is promote a culture of partnerships," he said, between private and public sectors.

Today, Mubadala Aerospace has been making progress in achieving this through global aircraft maintenance operations, leasing offerings, a pilot training academy and investment in aerostructures manufacturing facility.

Humaid Al Shemmari, executive director of Mubadala Aerospace, said having an investment unit in the various segments of the industry acts like a shock absorber to any international events that would affect the global industry.

"We depend on the airlines because they're our primary clients. However, a volcano in Scandanavia would affect them and therefore affect us," he said. "So the manufacturing is closely related and it's very important."]]> <![CDATA[Trade through Dubai Reaches Dh1.1 Trillion in 2011]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=37 http://www.alliottuae.com/en/newsmore.aspx?newsid=37 4/18/2012 07:35:06
Dubai: Dubai's foreign trade increased 22 per cent last year to Dh1.1 trillion, according to the latest result released by the Dubai Customs on Wednesday.

Comparing to 2010, the result also showed that the total imports increased by 21 per cent to Dh442 billion in 2011 comparing to Dh364 billion in 2010 while exports jumped by 44 per cent to Dh98 billion from Dh68 billion as well as re-export grew by 18 per cent to Dh161 billion from Dh144 billion.

Ahmad Butti Ahmad, the Executive Chairman of Ports, Customs and Free Zone Cooperation and the Director General of Dubai Customs, remarked that the increase reflects the importance of trade in the economic growth of Dubai and the leverage and robust economy in the UAE.

"The high competitiveness in local market, the openness to markets world wide, the growth in purchasing power, the distinctive higher quality of national products and the ascending level of services offered to importers have all contributed to this remarkable growth."

Ahmad also remarked that the value of direct trade has jumped from Dh700 billion in 2011 from Dh576 billion in 2010, while free zones trade increased by 19 per cent to Dh383 billion compared to Dh323 billion in 2010.

Moreover, the customs warehouses trade grew by 64 per cent to Dh5.6 billion in 2011 compared to Dh3.4 billion in 2010.]]> <![CDATA[Big Future Foreseen for UAE Tourism]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=38 http://www.alliottuae.com/en/newsmore.aspx?newsid=38 4/21/2012 02:41:52
Travel and tourism growth in the UAE will rise to almost 15 per cent of the country's GDP within 10 years and be worth Dh277.8 billion (US$75.62bn) annually, according to research by a leading global tourism industry forum.

The figures come from a worldwide economic impact report on the industry, produced for the World Travel and Tourism Council (WTTC). The report formed the background to the council's global summit this year, which closed in Tokyo yesterday with the handing over of responsibility for the 2013 summit, to be held in Abu Dhabi next April.

"The total contribution of travel and tourism to GDP in the United Arab Emirates was Dh175.0bn in 2011, equivalent to 13.5 per cent of GDP," the report stated. "That figure is expected to grow to Dh182.8bn by the end of 2012 and is then forecast to rise by 4.3 per cent per annum to Dh277.8bn by 2022, or 14.6 per cent of GDP."

In its analysis of the industry in the UAE, the report, compiled for the WTTC by the forecasting consultancy Oxford Economics, took account of the total contribution of travel and tourism and its "wider impacts" on the economy - in a variety of areas including airliner purchases and hotel construction.

The report looked at government spending on tourism, including marketing and promotion, aviation, administration, utility services for resorts and even security.

Spending on goods and services by the sectors dealing directly with tourists - including purchases of food and cleaning services by hotels, fuel and catering services by airlines, and IT services by travel agents - were measured, as was the spending by individuals directly or indirectly employed by the industry.

The direct contribution of travel and tourism to GDP, which reflects only "the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transport and the activities of the restaurant and leisure industries directly supported by tourists", is forecast to rise by 4.6 per cent from last year to Dh87.7bn by the end of 2012, and to continue rising by more than 4 per cent a year to Dh132.4bn, or 7 per cent of GDP, by 2022.

The report also found that travel and tourism generated 166,000 jobs directly last year, equivalent to 4.6 per cent of total employment in the UAE, and this is forecast to grow by 4.2 per cent to 173,000 by the end of this year.

Jobs directly generated by travel and tourism include employment by hotels, travel agents, airlines and other passenger transport services, and restaurants and other leisure enterprises directly supported by tourists. By 2022, the report predicts, travel and tourism will account for 236,000 jobs directly, an increase of 3.2 per cent a year over the next 10 years.

The UAE figures come against a global performance by the industry that shows it to be double the size of vehicle manufacturing and about one third larger than chemicals manufacturing, the report said.

"The sector's total contribution to world GDP was US$6.3 trillion in 2011, equal to over 9 per cent of global GDP and in terms of employment, the importance of the sector is even more pronounced," said the report. "After education, travel and tourism is the top job creator, with twice as many jobs as created by financial services, communications, or auto manufacturing."

Last year, 98m people were directly employed in travel and tourism.

"These figures prove beyond any doubt that it is time that the world's governments really sit up and take notice of the travel and tourism industry," said David Scowsill, the president and chief executive of WTTC. "As a driver of economic recovery and growth in a very turbulent time, the industry stands apart for the sheer scale of its ability to create jobs and growth."
]]> <![CDATA[Eco- Money: Clean Energy Industry Makes a Comeback]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=39 http://www.alliottuae.com/en/newsmore.aspx?newsid=39 4/21/2012 03:59:26
Sustainable energy is enjoying a rebirth. After cold-shouldering sustainable-energy stocks after the global recession in 2008, investors are now starting to return to the sector.

Mergers, acquisitions and other deals in the energy-efficiency sector in 2010 were worth US$3.7 billion (Dh13.5bn) worldwide, according to PricewaterhouseCoopers (PwC), the consulting firm. A year later, in 2011, that figure had mushroomed to $10bn.

The resurgence of activity in this sector closely parallels the dotcom boom and bust of more than a decade ago, when internet investors threw money at internet companies only to turn their backs on the sector when the market overheated in 2000. With no recourse to venture capital or raising money from investors, many dotcoms, which had no realistic prospects of turning a profit for years to come, went bust almost overnight.

Just as investors once tried to elbow each other out of the way in the race to throw money at dotcom ventures, such as companies selling pet food over the internet, clean-energy companies saw their boom years from 2005 to 2008.

But the global economic downturn resulted in reduced state subsidies, leading to a lack of ready investment for largely unproven energy technologies with little prospect of making a profit anytime soon. Just as jaundiced dotcom investors returned to "old economy" stocks in 2000, so investors closed the cash pipe on sustainable energy.

According to Michael Butler, the chief executive of Cascadia Capital, a Seattle, US-based investment bank that specialises in sustainable industries, some big phoenixes may be about to rise from the funeral pyre of sustainable-energy stocks.

Mr Butler believes the sector is in the process of developing a new generation of sustainable-energy giants. Just as today's internet giants such as Google and eBay began as struggling Silicon Valley start-ups, Mr Butler says the sustainable-energy sector has benefited from a core of dedicated technologists and investors who have worked hard to create truly commercial businesses.

He points to the increasing involvement of large companies such as Boeing, Walmart and Schneider Electric in sustainable energy through investments and acquisitions.

The reasons for the renewed appeal of sustainable energy are similar to those that have drawn investors to companies such as Google. Just as internet giants use a combination of computer software and electronic communications to reach as many customers as possible while keeping a low overhead, so clean-technology companies rely on computer technology to drive high profits while maintaining a low-cost base.

In the US, the $20bn in investment arising from the 2009 Stimulus Act has also begun to help pump life into the sector.

Over the next 12 months, Mr Butler says the renewable-energy sector will start to see "superior" investments emerge as a "second generation" of sustainable-energy companies begin to emerge from the ashes.

Just as in the case of companies like Facebook, whose initial public offering later this year is expected to value the company at $100bn, investors are being drawn to a sector that is software reliant and has few physical assets.

Environmental legislation in places such as the US and Europe is also making conventional energy sources more expensive. For example, the US Environmental Protection Agency has just issued new rules for carbon emissions designed to make the construction of new coal-fired power stations uneconomic in the future.

At the same time, nuclear energy, once the great white hope of many governments, is also seeing costs going through the roof. After the disaster at Japan's Fukushima Daiichi reactor, stringent new safely rulings are rapidly pushing up costs in the nuclear industry.

The sustainable-energy sector has also developed new technologies capable of saving large amounts of money, but also having a far more positive green footprint.

According to a study conducted by McKinsey & Co, the global consultancy, a determined push to implement energy-efficiency measures across the US could result in $1.2 trillion of savings by 2020. In carbon-emission terms, this would, McKinsey says, be tantamount to taking all American cars off the roads. But when McKinsey conducted the research for its report in 2009, it concluded that this was unlikely to happen in a sector that was still firmly in the grip of recession. The introduction of workable technologies would then have cost $520bn and the deployment of "smart" power meters and other technologies in roughly 100 million buildings across America.

But industry watchers such as the investment bank Cascadia Capital are beginning to see light at the end of tunnel because the savings to be made by deploying sustainable energy technology start to make sense to a growing number of organisations. Although householders may baulk at the initial cost of installing expensive new technologies, commercial companies can see the sense in a small short-term investment that results in a long-term reduction of overheads.

It is likely that some clear leaders will start to emerge in the sustainable-energy sector over the next year - and green investors should continue to watch the sector closely.]]> <![CDATA[Bright Outlook for Oil]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=40 http://www.alliottuae.com/en/newsmore.aspx?newsid=40 4/29/2012 00:43:09
The International Monetary Fund has raised its forecast for global economic growth for 2012, but said prospective gains remain in doubt as Geopolitical tensions and other factors influence prices Abu Dhabi plans increase in output to meet demand.

Global oil prices are unlikely to average less than $100 (Dh367) a barrel this year as expansion in the world's largest economy the US, burgeoning demand from Asian growth engines China and India, Iran's nuclear issues with the West and fears of supply disruption prevent a precipitous fall in the world's most widely-traded commodity, say experts.

On Friday, London's Brent crude oil fell 9 cents to settle at $119.83. Brent had a nearly 1 per cent weekly gain but remained on pace to post a more than 2 per cent monthly loss.

US crude rose 38 cents to settle at $104.93 a barrel, having reached $105. The weekly gain was 1.8 per cent, on track for a similar monthly rise.

The International Energy Agency (IEA) has forecast global oil demand at 89.9 million barrels a day for 2012, a rise of 0.9 per cent over 2011.

"With demand-side risks looking evenly balanced, market direction over the rest of 2012 will hinge largely on the prospects for supply. We retain a fairly cautious view on the recovery in non- OPEC production from recent outages, but nonetheless see growth accelerating in the second half of 2012," said the Paris-based IEA which advises 28 industrialized countries on energy policy in its latest oil market report.

It added: "The underlying crude price assumption has been raised. Brent crude now averages $115 per barrel for 2012, nearly $10 more than assumed for 2012 in the fourth quarter of 2011."

The International Monetary Fund (IMF) on Tuesday also raised its forecast for global growth for 2012, but said prospective gains remain fragile.

In its latest World Economic Outlook, the IMF slightly upgraded its growth forecast for 2012 from 3.25 per cent to 3.5 per cent, accelerating to 4.1 per cent in 2013.

IMF chief economist Olivier Blanchard characterized the past six months as a "roller-coaster" ride for the world economy, defined by the European debt crisis. He said the debt crisis still remains the biggest threat, along with high oil prices. The IMF thinks the US economy should expand at 2.1 per cent this year, while in Europe the economy is likely to shrink by 0.3 per cent because of the ongoing debt crisis.

Sharp downturn

The IMF said improved activity in the United States and better policies to deal with the European economic situation have reduced the threat of a sharp downturn. The IMF also said China's economic growth is expected to remain above 8 per cent this year.

Saeed Hirsh, an oil expert at London-based Capital Economics Ltd, told Gulf News that if oil prices were to continue to rise, this will eventually put the anemic global recovery in reverse.

"This will eventually backfire on oil exporters, given that if this eventually leads to a global recession, oil prices could come down rapidly. As for our forecast, we think that Brent crude prices will end the year at around $95 per barrel, which means that we expect prices to average $110 per barrel this year [compared to $111 last year]," said Hirsh.

"As to what windfall gains mean for the GCC [Gulf Cooperation Council], probably the best way to look at it is that for every additional dollar on the average oil price, the GCC's total exports increase by over $6 billion in one year [at the current production levels]. In relation to the UAE, an additional dollar on the average oil price means that export revenues increase by around $1 billion in one year. So this is substantial," he added.

Samuel Ciszuk, consultant at the UK-based KBC Process Technology Ltd, said, "For some time we have been seeing the oil markets as very well supplied, despite recent disruptions in South Sudan, Yemen, Syria, the North Sea and Canada among others and given the traditionally lower second quarter demand.

"We think the market might indeed be about to turn a corner as soon as April.

Nuclear talks

"Geopolitical tensions might continue to influence prices on the bullish side and the Iranian nuclear talks in the coming week will be a first and strong indication of where we will be heading in the coming months with regards to the risk premium," said Ciszuk.

He said fundamentally, however, rising production in Iraq, Libya, Angola and Nigeria, together with existing high production in Saudi Arabia, Kuwait and the UAE will more than enough offset Iran's anticipated decline during the second to the third quarter and onwards.

"We have good hope that non-OPEC shut- ins will decrease substantially too, from the high February-March levels. Not to forget, there is significant non-OPEC output growth expected in the second half of the year, which should further improve the supply situation and even ease the pressure on OPEC to produce at these current levels," said Ciszuk.

He said that he didn't really see oil prices going up from here, unless something radical and unforeseeable happens either on the supply or geopolitical front.

"Even with prices easing however, Gulf states are placed to collect very significant windfalls, with the UAE in particular benefiting from this, given that its role as a financial hub in the region means that a portion of its neighbours' windfalls also pass through its financial sectors," said Ciszuk.

Financial position

Robin Mills, head of consulting at Dubai-based Manaar Energy, told Gulf News the recent gains in oil prices have obviously been good for the financial position of the GCC countries. But expenditure has also risen sharply, including in Saudi Arabia, Kuwait and the UAE's federal budget, and this may be a problem if and when oil prices fall and spending has to be cut again.

"It seems that conditions are moving towards a fall in oil prices (always assuming that there are no more crises such as military conflict over Iran and so on. Oil production in Saudi Arabia, Kuwait, UAE and Iraq is close to record highs and a significant amount of recent apparent demand seems to have been due to building strategic stocks in the US and China to cover for Iran. European demand is particularly weak due to the continuing economic crisis," Mills added.

Meanwhile, top oil exporter Saudi Arabia is determined to bring down high oil prices and is working with fellow OPEC members to accomplish that, its Oil Minister Ali Al Nuaimi said last week.

Brent crude prices have risen nearly 13 per cent this year, threatening a nascent recovery of the global economy. Oil has traded above $100 for all but a couple of days in the past year.

"We are seeing a prolonged period of high oil prices," Al Nuaimi said in a statement during a visit to Seoul. "We are not happy about it. [The Kingdom of Saudi Arabia] is determined to see a lower price and is working towards that goal."

The influential Saudi oil minister earlier this year identified $100 a barrel as an ideal price for producers and consumers.

Shortage

Concerns of a supply shortage due to production problems in some producing countries and as US and European sanctions target exports from OPEC's second- largest producer Iran have helped keep Brent crude well above that mark.

Al Nuaimi reiterated that there were no supply shortages in the global oil market and the kingdom stood ready to use its spare production capacity if necessary.

Saudi Arabia is pumping 10 million barrels per day, he said. Output at that level would be the highest since November, when the kingdom produced more oil than it had done for decades. Al Nuaimi reiterated that production capacity stands at 12.5 million bpd.

"The story is one of plenty," he said. "Supply is not the problem." Saudi stockpiles at home and abroad were full, said Al Nuaimi. Inventories in industrialized countries were also filling up, he added.

UAE production highest since 2008

Abu Dhabi: The UAE's oil production increased by 60,000 barrels per day (bpd) to 2.65 million bpd, the highest level since June 2008, latest figures from the International Energy Agency (IEA) show.

"March OPEC's [Organization of Petroleum Exporting Countries] supply held near three and a half- year highs, rising by 135,000 bpd to 31.43 million bpd. Increased output by Iraq, Libya, Kuwait and the UAE more than offset declines in Iran, Angola and Nigeria," said the Paris-based IEA, which advises 28 industrialized countries on their energy policy.

The country's oil output had averaged 2.59 million bpd in February, the data showed. Last year, the UAE pumped on average 2.50 million bpd, higher than the 2.31 million bpd it pumped in 2010.

Abu Dhabi's most popular crude grade — Murban's official selling price was $127 a barrel, followed by $126.60 for Lower Zakum, $126.20 for Umm Shaif and $124.45 for Upper Zakum.

Abu Dhabi, which produces more than 90 per cent of UAE oil, is investing heavily to boost its crude output.

The UAE intends to increase its oil production capacity to 3.5 million bpd by 2018 from 2.7 million bpd to meet the rising global oil demand.

Abu Dhabi Company for Onshore Oil Operations (ADCO) is hopeful new capacity of 213,000 bpd will come on stream in 2012. Abu Dhabi Marine Operating Company (ADMA-OPCO), majority-owned by the Abu Dhabi National Oil Company (ADNOC), plans to invest at least $10 billion (Dh36.7 billion) developing two offshore fields to boost the firm's crude output by 60 per cent by 2017.]]> <![CDATA[DP World Posts 9.5% Growth in Q1]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=41 http://www.alliottuae.com/en/newsmore.aspx?newsid=41 5/2/2012 02:48:48
DP World, the world's third-biggest marine port operator, on Monday announced a dividend of 24¢ per share and said shareholders authorised the company to buy back "a limited number of shares."

The shareholders also "authorised the company to reduce its share capital by cancelling any or all of the ordinary shares purchased," the company said in a statement to Nasdaq Dubai.

Following its annul general meeting on Monday, the company said in statement that shareholders backed the re-appointment of all eight directors of its board.

The meeting also approved DP World's request for the "renewal of an existing authority allowing the company to allot, or issue, up to a limited number of shares - five percent of the nominal value of the issued and unconditionally allotted share capital of the company - free of pre-emption rights."

The dividend, which will be paid on May 2, comprises a 10 per cent increase in the underlying dividend to 18.7¢ per share, supplemented by a special dividend of 5.3¢ per share reflecting the separately disclosed profit attributable to owners of the company. "This results in a total dividend distribution of $199 million," DP World said.

Earlier on Monday, the Dubai-based company said that gross volumes it handled across the globe surged 9.5 percent in the first quarter of the year.

Citing strong business in Asia as key to its increased cargo volumes. The Dubai-based conglomerate said it handled the equivalent of 13.8 million standard 20-foot shipping containers between January and March.

DP World chairman Sultan Ahmed bin Sulayem said the growth was driven by an excellent performance in its operations in Asia Pacific and Indian Subcontinent region which reported 14.6 per cent growth in volumes as new capacity across the region supported strong growth across our Asia Pacific portfolio.

In a statement, Sulayem said growth in Europe, the Middle East and Africa region was 4.4 per cent with a good performance in the Middle East and Africa mitigating the ongoing challenging operating environment in Europe.

The Americas and Australia region reported growth of 8.7 per cent driven by a very strong performance in the Americas region, said Bin Sulayem.

Jebel Ali continued to deliver strong volume growth handling 3.2 million TEU in the first three months of the year, 8.5 per cent ahead of the same period last year.

"The global macroeconomic uncertainty has continued into 2012. With our portfolio focused on the faster growing emerging markets and more stable origin and destination markets, we remain committed to delivering improved operational and financial performance over 2011," said Bin Sulayem.

In March, DP World, which is also listed on the London Stock exchange, reported that its 2011 profit climbed 82 per cent, helped by gains from the part-sale of its terminals in Australia. Net income rose to $683 million from $375 million a year earlier. Profit before separately disclosed items rose 23 per cent to $459 million.]]> <![CDATA[Out of This World, Under the Sea]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=43 http://www.alliottuae.com/en/newsmore.aspx?newsid=43 05/03/2012 02:24:49
DUBAI: Dubai is back in the spotlight for its out-of-the-box projects as Drydocks World revealed remarkable details of an underwater hotel to be built off the emirate's coast.

In a statement released on Wednesday, the company said it has signed an agreement with a Swiss company to develop the World Discus Hotel, a series of spaceship-shaped structures, part of which is a habitable area submerged under the sea.

The announcement came just a month after Drydocks World filed for insolvency protection in Dubai and Singapore in a move to restructure its $2.2 billion debt.

Drydocks World has unveiled a deal with BIG InvestConsult — which holds the technology rights to the project — to build an underwater hotel that looks like a series of massive discus plates joined by a network of undersea and above-water structures, including a helipad. "The structure… elevates marine leisure facility to new unprecedented functional level," the Swiss company stated on its website. BIG is in talks with other investors and said it will fund the hotel.

"Drydocks and Maritime World is appointed as the exclusive main contractor for construction of the new concept hotels and cities floating in the Middle East," Drydocks said in a statement.

Dubai is home to palm-shaped and world-map-shaped reclamation projects, the world's tallest tower, an indoor ski slope and the world's longest driverless metro.

The Swiss firm said it aims build the underwater hotel off the coast of Dubai and Abu Dhabi.

Khamis Juma Buamim, Chairman of Drydocks World, told media persons that the company will fabricate the structures using techniques similar to building oil rigs based on seven design types — each costing between $50 million and $120 million (Dh183.5 million and Dh440.4 million).

The firms said two developments with five hotels attached to them are planned in the Middle East. It also aims to include a lab for marine environment research.]]> <![CDATA[Yas Water Park Set to Make a Splash in Abu Dhabi]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=44 http://www.alliottuae.com/en/newsmore.aspx?newsid=44 5/6/2012 05:25:46
Yas Waterworld, which is costing some Dh604 million (US$164.4m) to build and will have 43 rides, slides and other attractions, is likely to rival the best water parks in the world, industry experts say.

"It looks like something that I have never seen before in a water park," said Stefan Zwanzger, a theme-park expert who runs a website called thethemeparkguy.com. "All the Disney parks, the Universal parks, have a lot of sophistication when it comes to rides and theming, and there are themed water parks like Atlantis, Wild Wadi when we talk about the Middle East. But the Yas Waterworld park also incorporates a roller coaster and slides, and everything on top of each other. It's the whopper of water parks. It's like an exhibition of water slides from the best manufacturers."

It has been a challenging operating environment for Yas Island since it launched, with much of the surrounding development on the $40 billion destination still to be completed. Ferrari World, an indoor theme park on the island, last year cut jobs as opening hours were adjusted in line with demand.

It is hoped the new attraction will help to boost tourism to the island and to Abu Dhabi.

"As part of the 2030 plan for Abu Dhabi, the plan is to attract greater numbers of tourists and we're definitely supporting that plan," said Michael Oswald, the park manager for Yas Waterworld. "Yas Island is growing as a destination in itself and we're one component of that."

The water park on Yas Island, scheduled to open in the fourth quarter, has rides including what is described as the longest suspended roller coaster, surfing rides, a hydromagnetic-powered ride and the Middle East's longest water slide.

The park's theme is based on the story of an Emirati girl who is searching for a pearl.

It is also designed to feature a pearl-diving attraction, where the audience watches a demonstration, and will have a souq. The park is being built by Aldar Properties.

"From what we've seen so far, it will definitely be in the top four water parks in the world," said Mr Zwanzger, adding it seemed it would be comparable to those in Florida. "I've seen the artwork, I've been on the site, and it has the potential to beat all other water parks that are out there, but of course it all depends on the finishing."

The two water parks in Dubai have proved to be highly popular. Jumeirah Group's Wild Wadi is located between the Jumeirah Beach Hotel and the Burj Al Arab, while Aquaventure is part of the $1.5bn Atlantis resort on the Palm Jumeirah. Both were ranked in the world's top 20 most-visited water parks in a survey conducted by Aecom and the Themed Entertainment Association (Tea). Wild Wadi attracted 690,000 visitors in 2010, while Aquaventure brought in more than 1 million, according to the survey.

In purely economic terms, water attractions can be highly profitable, industry insiders say. They are relatively cheap to build compared with theme parks, and their operational costs are easily manageable as long as they attract high volumes of visitors.

Yas Waterworld, which was originally designed to be spread over 18 hectares, will now cover 15 hectares of space, Mr Oswald said.

"We compressed the park on purpose to ensure that people were going to be in [a] situation where they were going to be able to interact with each other. We kept the same number of rides and attractions, we just cut about three hectares off the size.

"It's an amazing, complex project to build a water park of this scale with the types of technologies incorporated in this park."]]> <![CDATA[Safe Arab Tourism Destinations Thrive]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=45 http://www.alliottuae.com/en/newsmore.aspx?newsid=45 5/7/2012 03:28:22
The Arab Spring has resulted in a sharp drop in tourism in countries at the centre of the turmoil, to the benefit of safe destinations in the region, experts say.

Major tourist destinations such as Tunisia and Egypt saw the numbers of visitors plummet because of uprisings last year that spread to other nations where confrontations with autocratic regimes turned deadly.

The Gulf city state of Dubai, as well as popular destinations outside the Middle East, became the focus of diverted tourism.

"The Middle East and North Africa saw a drop as a whole in international arrivals, mainly in Egypt and Tunisia," said Ahmed Youssef, MENA director of marketing and operations at Amadeus.

"Tourist flows from Egypt to Turkey increased by 400 percent in 2011," said Youssef, speaking at the Arabian Travel Market last week in Dubai. His company provides IT solutions for the travel industry.

According to the World Tourism Organisation UNWTO, international tourist arrivals in the Middle East declined 8.4 percent to 54.8 million in 2011, after growing 14.9 percent the year before.

UNWTO statistics also showed that tourist inflows to North Africa slipped 9.9 percent to 16.9 million after increasing by 6.5 percent in 2010.

"Due to the social and political developments," Syria saw a drop of 41 percent, Egypt by 32 percent, Tunisia 31 percent and Lebanon 24 percent," UNWTO statistics showed in March.

In autumn last year Jordan reported a 16-percent drop in its tourism revenues in the first seven months of 2011. The sector contributes 14 percent to the kingdom's gross domestic product.

In Tunisia, where tourism accounted for seven percent of economic output in 2010, the sector's receipts plunged by a third in 2011.

Syrian state newspaper Al-Baath reported last week that four million tourists visited Syria in 2011, despite insecurity in the country where thousands have been killed since anti-regime protests erupted in March 2011.

But the number reveals a drop of more than 40 percent from the seven million tourists registered in 2010.

On the other hand, Turkey received 1.4 million Arab tourists in the first eight months of 2011: up from 1.2 million in 2010.

And Dubai last year posted a 10-percent rise in guests at hotels and hotel apartments, reaching 9.09 million, with revenues hitting 15.97 billion dirhams ($4.4 billion), 20 percent up from 2010.

In the first quarter of 2012, the number of guests increased nine percent to 2.6 million guests, according to Dubai authorities. They hope the number of tourists will hit 10 million this year.

"The Arab Spring has left an impact," said Khaled al-Mazroui, general manager of Fujairah International Airport in the United Arab Emirates.

"Tourists look for safe destinations, in addition of course to quality services," he told AFP, adding that the UAE had "benefited from this diversion of tourism, especially from neighbouring Gulf countries."

Paul Griffiths, chief executive officer of Dubai Airports, acknowledged an increase in tourists from neighbouring Gulf states who would usually travel to Egypt or other Arab countries on the Mediterranean.

"There has been a redistribution (of tourists) over the past few months," he told reporters, pointing to a "significant surge in tourists (in Dubai) from Saudi Arabia and Kuwait" and other Gulf nations.

Dubai's malls and restaurants have been heaving with Gulf visitors during school holidays over past months.

The head of UNWTO, Taleb Rifai, gave an upbeat assessment at the Arabian Travel Market, saying some of the destinations hit by last year's uprisings were already making a comeback.

"Countries directly affected like Egypt, Tunisia, Syria and Yemen saw a downturn of 80 to 85 percent as political events unfolded but minimised losses considerably in 2011, closing the year down by 25 to 30 percent," he said. ]]> <![CDATA[Starwood to Open 40 Hotels in MENA in 5 Years]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=46 http://www.alliottuae.com/en/newsmore.aspx?newsid=46 5/8/2012 02:42:52
Dubai Starwood Hotels & Resorts yesterday said it will open 40 hotels in the Middle East and North Africa (Mena) over the next five years, primarily in the luxury and upper-upscale segments, a nearly 60 per cent jump in the portfolio.

The US-based company has nearly 70 hotels in the region and is looking to strengthen its position as the leading operator in Mena by adding more than 13,000 rooms by 2017.

In the Middle East alone, Starwood is looking to operate 50 hotels by the end of this year, up from the current 48, Gudio E De Wilde, Starwood Hotels & Resorts senior vice-president and regional director for the Middle East, told Gulf News in a recent interview.

"From a development point of view, we are very busy in 2012. We will be operating 50 hotels by the end of 2012. In addition to that, we have 30 hotels under development. So we will go to a total of 80 hotels in the next five years," he said.

Europe, the Middle East and Africa (EMEA) region accounts for 24 per cent of Starwood's global revenue, according to De Wilde.

Meanwhile, in the past 18 months, Starwood has opened six hotels in Mena and has concluded deals for 10 additional hotels, said the company, which also recently announced its re-entry into Iraq after a 20-year break.

Growth

"Despite economic and political uncertainty in parts of the region, Starwood continues to see demand for growth of all of our brands across the Middle East and North Africa," Frits van Paasschen, Starwood president and CEO, said in a statement.

He said the region is key to Starwood's global expansion strategy, representing the company's second largest growth market after China.

Starwood recently signed a Dh4.8 billion deal with the Al Habtoor Group to manage the Al Habtoor Palace — the erstwhile Metropolitan complex on Dubai's Shaikh Zayed Road, scheduled for handover in 2017.

Portfolio

As part of the deal, the company will bring on board three hotels from its portfolio including the first St Regis hotel in Dubai, a W Hotel and a new Westin, adding 1,675 rooms.

Starwood operates 15 hotels in Dubai, the largest concentration of Starwood hotels in any single city outside New York, the company said in a statement.

Expansion: Plans for Palm Jumeirah

Plans are also afoot to open a W Hotel on The Palm Jumeirah in 2016. Starwood's contemporary, design-led lifestyle brand, W Hotels Worldwide has signed an agreement with Al Sharq Investment LLC to debut the W Dubai — The Palm, the company said yesterday in a separate statement. "This signing marks an important milestone in our overall growth strategy to expand the W brand in primary cities throughout the Middle East including Doha, Amman, Muscat, Abu Dhabi and Dubai," said Roeland Vos, president, Starwood Hotels & Resorts, Europe, Africa and Middle East.]]> <![CDATA[Trade Licence Issuance up 27%]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=47 http://www.alliottuae.com/en/newsmore.aspx?newsid=47 5/8/2012 03:03:26
Dubai: The number of trade licences issued by the Department of Economic Development (DED) during the first three months of 2012 was 4,343, an increase of 27 per cent over the same period in 2011, a statement said.

The total number of licences renewed was 25,382, a three per cent decrease from the same period in 2011, while amended licences showed a 21 per cent increase.

The total number of BRL (Business Registration and Licensing) transactions reached 144,840, compared with 124,037 during the same period in 2011, a 17 per cent increase.

Tourism

The tourism sector accounted for the highest increase in the number of licences (213 per cent) followed by the industrial (71 per cent), commercial and professional (26 per cent each) sectors, compared with the first quarter of 2011.

Commercial licences accounted for 74 per cent of the licences issued in the first quarter of 2012, followed by professional (23 per cent), industrial (two per cent) and tourism (one per cent) licences.

The figures demonstrate a higher level of interest in commercial and professional activities among businessmen and investors in Dubai.

The number of trade names reserved during the first three months of this year was 17,565.]]> <![CDATA[Abu Dhabi Eight- Year Plan Sees $353.9bn Invested]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=48 http://www.alliottuae.com/en/newsmore.aspx?newsid=48 5/8/2012 05:02:06
Abu Dhabi is expected to invest more than $353.9bn into projects over a period of eight years, running from 2008 to 2016, with nearly half of that covering the construction sector, local reports have said.

A study released by the Abu Dhabi Chamber of Commerce and Industry earlier this week found that the investment into massive projects has given a strong push to the emirate’s economy, allowing real GDP to expand by around 3.4% in 2011, despite unstable oil prices.

“Abu Dhabi has announced its plans as to the completion of a large number of strategic projects in 2008 - 2016. Existing data indicates that forecast fixed investments are in the region of $353.9bn, almost half of which is channeled into the field of building and construction," the ADCCI report said.

It added that GDP growth would be at 4% this year, with all sectors, including oil, government and private sectors, contributing towards it.

"Furthermore, concerned entities in the emirate have covered some way in the implementation of such projects. The shares of the tourism and industrial sectors will be 17.7 and 14.6 per cent out of the total investments predicted for each of the two sectors respectively in the said period,” the report added.

A breakdown of the investments showed that investment in the construction sector was estimated at around $176.9bn. Some $62.6bn is expected to be funnelled into tourism, with $51.7bn being put into the non-hydrocarbon industry.

More than $46.2bn will go into oil and gas, and about $16.3bn will be invested in electricity and water, a report by local news website, Emirates 24/7 said.]]> <![CDATA[Dubai Businesses Predict Improved Sales and Export- Related Activity]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=49 http://www.alliottuae.com/en/newsmore.aspx?newsid=49 5/9/2012 00:47:45
Dubai Businesses across Dubai remain upbeat over growth and revenues with expectations riding high especially in the manufacturing sector, a survey conducted by the Department of Economic Development (DED) showed.

The composite Business Confidence Index (BCI) for Dubai, according to the survey, stood at 120.5 points in the first quarter, indicating an optimistic outlook for the next quarter. BCI crossing 100 points indicates a positive sentiment within the business community.

"A majority of businesses in Dubai foresee sales increasing or remaining steady and plan to retain their employee count through to the second quarter," it said.

"The survey also reveals an even brighter outlook among export-related businesses, rising confidence among small and medium enterprises [SMEs] and a stronger investment focus on upgrading technology."

Continuing a trend in the last few quarters, sales are forecast to increase in the next quarter. However, some companies intend to raise prices in line with the cost of raw materials across global markets. Higher sales revenues are predicted by 50 per cent of companies while 35 per cent see no change compared to the first quarter. Profit expectations are also positive, with 44 per cent of respondents expecting an increase in the next quarter.

Sami Al Qamzi, director-general of DED, said: "For a businessman or investor planning his next step, it is important to know what his peers think." ]]> <![CDATA[Kleopas Alliott Business Consultants SA on May 1st 2012 Launched its New Logo and Renewed Corporate Identity.]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=50 http://www.alliottuae.com/en/newsmore.aspx?newsid=50 5/12/2012 06:04:15
The renewal of the corporate identity was to give more emphasis and clarity in the constant, for twenty years the company's steady strategy has been: "To Secure Your Business Future."

The square symbolizes the reasons for the firm's success i.e., consistency, reliability, logic, prudence and statutory compliance to secure clients.

The triangle symbolizes the true sound and continuous development, for both the firm and their clients, reflecting the vision to "Give Unlimited Opportunities to Clients to Improve their Business."

The light blue color symbolizes, the release of clients from their obligations and for the firm the wisdom and full acceptance of their duties towards their clients.

]]> <![CDATA[US Expatriates Urged to Seek Tax Advice]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=51 http://www.alliottuae.com/en/newsmore.aspx?newsid=51 5/16/2012 02:02:50
Fatca requires foreign financial institutions to report directly to the IRS information about financial accounts held by US taxpayers, or by foreign entities in which US taxpayers hold a substantial ownership interest.

Dubai: American expatriates in the UAE are being urged to seek specialist tax advice as the US government clamps down on people cheating the system.

A piece of legislation known as the Foreign Account Tax Compliance Act, or Fatca, is causing great concern among Americans living overseas as they face up to new filing demands that critics say are excessive and overblown.

“ Expats who have fallen out of compliance with the US tax rules or who are unsure if they have been filing correctly should speak to a US tax attorney, not an accountant, in order to receive attorney client privilege ”

Some UAE-based Americans with dual-citizenship are even looking to renounce their US passports in a bid to avoid complying with the new regulations.

"Expats who have fallen out of compliance with the US tax rules or who are unsure if they have been filing correctly should speak to a US tax attorney, not an accountant, in order to receive attorney client privilege," said Virginia La Torre Jeker, J.D., a Dubai-based tax specialist.

"As for trying to fix up past mistakes, proper advice must be sought. It is too risky to fill in the FBAR (report of foreign bank and financial accounts) on your own, at least initially.

"The pace has really picked up; people have been reading about convictions for criminal tax evasion and they are getting scared, especially those close to retirement age. They know when they return to the US and are drawing on social security, it can be taken away if the IRS comes calling. People are scared and, in fact, they should be scared," she added.

Fatca is a piece of government legislation that requires certain US taxpayers holding foreign financial assets with an aggregate value exceeding $50,000 to report certain information about those assets on a new form (Form 8938), which must be attached to the taxpayer's annual tax return.

Wilful blindness
According to Jeker, claiming ignorance of US tax obligations will not be deemed a sufficient excuse to avoid penalties as Fatca has been well publicised in recent months. "The IRS has a concept of "wilful blindness" and if the IRS can demonstrate a taxpayer evidenced wilful blindness in not meeting his tax obligations, this can lead to severe penalties," she said. Reporting applies for assets held in taxable years beginning after March 18, 2010. For most taxpayers this will be the 2011 tax return they file during the 2012 tax filing season.

According to the IRS, failure to report foreign financial assets on Form 8938 will result in a penalty of $10,000, and a penalty up to $50,000 for continued failure after further notification.

"The initial feedback from US expatriates and businesses is not positive," said Asim Shaikh, partner at Ernst & Young, Middle East and North Africa. "Most US expatriates believe in the importance of paying taxes and are supportive of any effort made by their government to prevent tax evasion. However, they believe Fatca is too far-reaching and may have a significant impact on investments in the US from the Middle East and other growing economies," he added.

Fatca also requires foreign financial institutions (FFIs) to report directly to the IRS certain information about financial accounts held by US taxpayers, or by foreign entities in which US taxpayers hold a substantial ownership interest. To properly comply with these new reporting requirements, an FFI will have to enter into a special agreement with the IRS by June 30, 2013. "The important thing to understand is that Fatca is primarily designed to deal with foreign financial institutions such as banks, pension funds and mutual funds," said Dean Rolfe, tax partner at PricewaterhouseCoopers.

Awareness
"People have been aware of Fatca for a number of years, but it has been difficult for businesses to decide what they needed to do; they have to be up to speed by 2014, however, or they will be subject to withholding taxes," he added.

Rolfe says individuals will also be impacted by Fatca as the IRS will join the dots further down the line. But he also stressed there was always an opportunity to set the record straight and for American expatriates to come back into compliance with the system. "As far as individuals are concerned, they may be asked to provide information to banks/funds where they have money located if those institutions sign up to the Fatca agreement," he said.

"The US system involves taxing Americans working in the Middle East; they are subject to file tax returns. There are an awful lot of people, either deliberately or by mistake, who have not done so in the past but Fatca has concentrated their attitude on the matter; they know they have to be compliant and up-to-date with their taxes," he added.

However, some American expatriates are already seeking drastic action to avoid complying with the new regulations including renouncing their US passports and green cards.

About 1,780 expatriates gave up their nationality at US embassies last year, up from 235 in 2008, according to Geneva's Overseas American Academy. Jeker says she has recently spoken to many American expatriates in the UAE who have considered renouncing their citizenship or green cards.

"Many people do not fully understand what they have to do to formally relinquish their US tax status. Many simply disappear underground.

But in the eyes of the US tax law they are still US citizens, or in the case of certain green card holders they are still US tax residents; both are liable to tax on their worldwide income," she said.

"There are many steps to consider and one of them is certifying under the penalties of perjury you have met all your US tax obligations for the past five years. You cannot get rid of what is perceived by many as a "curse", without getting back into compliance with the US tax system. It is causing sleepless nights for a lot of people."

What is fatca?
Fatca is a piece of government legislation that requires certain US taxpayers holding foreign financial assets with an aggregate value exceeding $50,000 to report certain information about those assets on a new form (Form 8938), which must be attached to the taxpayer's annual tax return.

Reporting applies for assets held in taxable years after March 18, 2010. For most taxpayers this will be the 2011 tax return they file during the 2012 tax filing season. According to the IRS, failure to report foreign financial assets on Form 8938 will result in a penalty of $10,000, and a penalty up to $50,000 for continued failure after further notification.

http://gulfnews.com/business/features/us-expatriates-urged-to-seek-tax-advice-1.1023585]]> <![CDATA[UAE Economy Grew 4.9% on High Oil Prices, Safe Haven Status in 2011]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=52 http://www.alliottuae.com/en/newsmore.aspx?newsid=52 5/17/2012 00:43:22
By Saifur Rahman, Gulfnews, May 17, 2012

Dubai: The UAE's GDP is estimated to have grown 4.9 per cent last year, said the latest report by the International Monetary Fund (IMF), adding that the UAE economy continues to recover from the fallout of the global downturn.

"The recovery of the economy is continuing despite the uncertain global economic environment. High oil prices and increased production, strong growth in Asia, and the UAE's perceived safe haven status in the context of the regional turmoil contributed to an estimated real GDP growth of 4.9 per cent in 2011," IMF said in its latest Article IV consultation with the UAE.

"Despite the continued weakness of the construction and real estate sectors in the wake of the 2009 crisis, real non-hydrocarbon growth picked up to an estimated 2.7 per cent last year, supported by trade, logistics, and tourism."

For 2012, the IMF projects oil production to be flat, whereas non-oil growth is expected to strengthen further to 3.5 per cent.

"Inflation remained low at 0.9 per cent in 2011, mainly due to a continuing decline in housing rents, and price pressures are expected to remain subdued this year," it said.

Matthew Green, head of Research and Consultancy, UAE at CB Richard Ellis, said: "It is hoped that the positive economic growth forecast for 2012 will provide a stimulus for an improvement in the overall business environment, which could have a knock-on impact for the commercial real estate sector in particular. However, with new stock entering the market, lease rates are likely to remain broadly unchanged, with current rents below 2005 levels."

Debt restructuring of some government-related entities (GRE), with debt estimated at $30 billion (Dh110.19 billion) maturing this year, remains a challenge, the IMF said.

"GRE indebtedness, refinancing needs and reliance on foreign funding remain high, with about $30 billion GRE debt maturing this year and significant amount of debt falling due in 2014-15," the IMF said.

The IMF noted the progress made in restructuring and managing the debt of GREs, but stressed the need for further efforts to mitigate the fiscal risks posed by these entities.

"The GREs are still faced with high refinancing needs and are reliant on foreign funding," it said.

Further deleveraging

In this context, the IMF encouraged further deleveraging and strengthening of impaired GRE balance sheets, increased transparency, and improvements in corporate governance at GREs.

Despite the accommodative monetary stance under the peg to the US dollar, lending to the private sector has remained sluggish as excess capacity in the real estate sector and the debt overhang still limit lending opportunities, it said. The banking sector has remained well-capitalised and profitable, despite a continued rise in non-performing loans and higher provisioning.

The IMF welcomed the continued economic recovery and favourable near‑term outlook, but noted "downside risks from the uncertain global environment and regional geopolitical tensions".

Going forward, the IMF encouraged UAE authorities to continue their efforts to sustain growth and diversify the economy, while maintaining macroeconomic and financial stability.

The IMF regarded the fiscal stance as appropriately focused on a gradual consolidation to unwind the large fiscal stimulus undertaken in response to the 2009 downturn without undermining the economic recovery.

"They [IMF directors] particularly welcomed the consolidation plans in Dubai, which will help improve the emirate's debt sustainability in the face of contingent liabilities related to government‑related entities (GRE) and the still weak real estate market," it said.

Noting the recent federal salary hike and planned increases in development spending in Abu Dhabi, the IMF emphasised the importance of managing the composition of public expenditure carefully.

It commended authorities' efforts to strengthen the coordination of fiscal policies between the federal and emirate governments.
]]> <![CDATA[IMF Report Shows Steady Growth Recovery for UAE]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=53 http://www.alliottuae.com/en/newsmore.aspx?newsid=53 5/22/2012 01:09:13
By Saifur Rahman, Gulfnews, May 22, 2012

IMF officials noted that data availability and risk management regarding GREs are gradually improving. Abu Dhabi, in particular, has made public the list of companies explicitly supported by the government.

Dubai: The UAE has weathered the global economic and financial crisis well due to strong fundamentals as well as timely policy responses, a new International Monetary Report shows.

The UAE's GDP growth this year is expected to decline to 2.3 per cent, down from 4.9 per cent last year, as fiscal consolidation continues. Thwe UAE's GDP is expected to reach $386 billion (Dh1.41 trillion) this year, up from $360 billion (Dh1.32 trillion) last year, according to the report.

The report also address how the UAE has handle its outstanding public debt, which has reached $252.9 billion (Dh928.64 billion) — more than 70 per cent of the country's gross domestic product (GDP).

Of the total, $129 billion is owed by the Dubai Government and its government-related entities (GREs) while $108.3 billion is owed by Abu Dhabi Government and its GREs. Some $32.2 billion of the total debt will mature this year, $28.7 will mature in 2013, while the remaining $182.3 billion will come up for maturity in the following years, the report shows.

While Abu Dhabi's total public debts are less than 50 per cent of the emirate's GDP, Dubai's public debts (Government's borrowings and GREs' total debts combines) represents more than 92 per cent of its GDP, statistics show.

"With better growth prospects and plans to consolidate public finances, Dubai's government debt sustainability has improved," IMF said.

Fund to help boost growth of SMEs

Dubai's government debt spiked in 2009 as a result of the crisis as the emirate provided support to its troubled GREs.

"The baseline scenario reflects a projected steady recovery of growth in the medium term and a gradual consolidation of Dubai government's fiscal accounts aiming to bring the fiscal accounts close to balance by 2014 in line with Dubai's plans. Under this scenario, the debt-to-GDP ratio is on a gradual declining path."

The government is addressing the pending GREs issues, said, A. Shakour Shaalan, Executive Director for the UAE.

"The Dubai World debt restructuring was completed and several other troubled GREs are in the process of restructuring," Shaalan said.

Sovereign fund

However, despite the increased size of debts, economists say, on the aggregate, the UAE is in a strong fiscal position given that sovereign wealth fund assets are significant.

"In other words, the UAE is a net creditor on the aggregate. Gross debt has risen in the course of the country's economic diversification drive away from hydrocarbons toward cementing UAE's position as a regional hub," Dr Giyas Gokkent, group dhief economist of NBAD, told Gulf News.

"Debt management offices have been created for oversight. Debt maturity has been extended in a number of instances."

The report, which is part of IMF's annual assessment of the UAE economy, is based on the UAE Government statistics provided by the Ministry of Finance and the UAE Central Bank.

However, both Dubai and Abu Dhabi governments have restructured a sizeable chunk of their debts. As a result, the estimated total GRE debt declined to 51 per cent of 2011 GDP as of March 2012, from 61 per cent of 2010 GDP, though Abu Dhabi's GRE debt still rose in nominal value. "Despite recent progress in debt restructuring, GREs are still facing financial challenges. While the debt of some GREs has been restructured [including Dubai World], the process has been more protracted in other cases, such as Dubai Holding," IMF says.

"Rollover risks are still considerable, with $30 billion falling due in 2012. Moreover, significant amounts of debt will mature in 2014-15."

IMF stressed the desirability of a comprehensive strategy aimed at bolstering market confidence in GREs, and transparent reporting of GRE-related fiscal risks. Its prescription include: stronger GRE balance sheets and Proper fiscal risk management and reporting framework, and better availability of information on GRE debt, among others.

"While both Abu Dhabi and Dubai have made progress in identifying and monitoring GRE liabilities, and new borrowing by GREs is subject to approval, contingent liabilities continue to be undisclosed," it said.

"Improved GRE corporate governance and transparency would also be essential, including by delineating clearly their commercial and noncommercial operations, and standardising their accounting, auditing, and financial reporting practices."

IMF officials noted that data availability and risk management regarding GREs are gradually improving. In particular, Abu Dhabi has made public the list of companies explicitly supported by the government. The Dubai government, in turn, emphasised that Dubai GREs are not backed by a sovereign guarantee, and that the Department of Finance and Supreme Fiscal Committee now play a major role in GREs debt monitoring and approval of new borrowing.

"Different countries have different debt management policies. As an illustration, the Maastricht criteria in the Euro area included a target envisaging that the ratio of gross government debt to GDP must not exceed 60 per cent at the end of the preceding fiscal year," Dr Gokkent says.

"The conditions allowed that even if the target could not be achieved due to specific conditions, the ratio must have sufficiently diminished and be approaching the reference value at a satisfactory pace."
]]> <![CDATA[Oil Windfall Fuels Faster Growth in the UAE]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=54 http://www.alliottuae.com/en/newsmore.aspx?newsid=54 6/3/2012 00:44:00
By Babu Das Augustine

June 2, 2012

The steady rise in oil prices in the first five months of this year and significantly higher average oil prices last year, than what was predicted, have prompted analysts to forecast that the UAE and some of its Gulf neighbours are headed towards another oil-led economic boom.

Oil prices (the reference price for the Organisation of Petroleum Exporting Countries or Opec) rose to an average of $123 (Dh452.39) per barrel in March, the highest monthly average since July 2008, mainly owing to geopolitical tensions.

Analysts say, for the UAE, which has a relatively high budget break-even oil price (in the range of $95 to $107), the high oil export earnings should come as a big incentive to increase its fiscal outlay.

“In the UAE, higher oil prices should provide authorities with additional comfort to push ahead with recently approved infrastructure projects and spending,” said Khatija Haque, senior economist at Emirates NBD.

Higher than forecast oil prices are certain to boost accumulated fiscal reserves, providing a bigger cushion against any future negative oil price shocks. Furthermore, to the extent that governments repatriate oil revenues, domestic banking systems should continue to benefit from improved liquidity.

Economists say the UAE is on a strong footing, with Dubai seeing robust performance in its core non-oil sectors, with trade, tourism and retail benefiting from regional dynamics, while Abu Dhabi is benefiting from elevated oil prices and high crude output.

“We are revising up 2012 [gross domestic product] growth forecasts for the UAE to 3.4 per cent. The main reason for this is Abu Dhabi’s desire to increase expenditure on key infrastructure projects. We now expect its economy to grow by 3.2 per cent [versus our earlier forecast of 3 per cent] in 2012.

“We have also revised Dubai’s growth to 2.9 per cent from 2.4 per cent,” said Shady Shaher, an economist at Standard Chartered.

Economists at Bank of America Merrill Lynch, HSBC and Citibank said recently that the GCC as a bloc is a net bene-ficiary of the surge in crude prices.

Although, like its Gulf neighbours, the UAE is a key beneficiary of high oil prices, analysts feel that the direct impact on UAE’s economic growth will be largely dependent on the willingness of governments and sovereign wealth funds to invest in domestic economies.

Despite the prolonged run of high oil prices, the International Monetary Fund (IMF) has been modest in its growth outlook for the UAE this year. While the IMF has revised down its growth forecast for 2012 from 3.8 per cent to 2.3 per cent, Emirates NBD, the largest bank in the country estimates the UAE’s GDP growth for the year at 2.5 per cent.

There has been a build-up in expectations that another oil boom is around the corner, in the light of significant growth in fiscal and current account surpluses. However, the key economic indicators have yet to reflect this view.

For example, the UAE’s purchasing managers’ index (PMI) remained steady in the first quarter of this year and private sector activity has expanded only marginally.

“By definition, the large and growing fiscal and current account surpluses we expect the major oil producers to accrue this year and next represent increases in savings, not gains in consumption, investment or domestic demand. To make their impact felt directly, the oil earnings have to enter the domestic economy, most obviously by being spent by the state,” said Simon Williams, HSBC’s chief economist for the Middle East and North Africa.

The feed-through from oil earnings to spending is not direct and/or immediate. Historically, there has been a strong correlation between oil prices and the spending plans of the UAE and other GCC states.

However, in the UAE, there is even less evidence of feed-through, with governments continuing to place their surpluses overseas under the management of the sovereign wealth funds.

Even if there is going to be a lag between high oil revenues and actual government spending, economists say the oil-funded build-up of foreign assets will clearly enhance the UAE’s capacity to fund future spending plans and hedge against any external shocks.]]> <![CDATA[Mr. Colin Farmer, Managing Partner of Alliott UK, Speaks on the "Accounting Sector Looks forward to Industry Law"]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=55 http://www.alliottuae.com/en/newsmore.aspx?newsid=55 6/19/2012 02:47:51
The UAE is following international accounting standards and the accounting community expects an appropriate law will be enacted by the authorities soon, a senior London-based accountant has said. “I’m impressed with the developments in the UAE particularly the opportunities of business and investment in this area,” Colin Farmer, FCA, managing partner of Alliott UK, a leading chartered accountants company, told Khaleej Times during his visit to the UAE.

He said that the Alliott Group is expanding in the region with offices in Saudi Arabia, Oman and Bahrain, other than Alliott Hadi Shahid providing professional services in Dubai and Abu Dhabi since a long time.

Giving his views on international accounting, Farmer said that there now appears to be a strong desire for the International Accounting Standard Board, or IASB, to focus its future efforts on those jurisdictions which have adopted, or wish to adopt, International Financial Reporting Standards, or IFRS.

“Further development of global standards needs to be via the adoption by countries of a single set of standards such as IFRS and not by trying to make different sets of standards more similar,” he said.

He said that the long standing attempt to converge IFRS and US GAAP seems increasingly unlikely to succeed and so the focus now should be to speed up the revisions to the conceptual framework for financial reporting under IFRS and to complete the major projects on financial instruments, revenue recognition and lease accounting.

Farmer said: “The cause of global business demands consistency, transparency and comparability in global financial reporting and the implementation of universally-accepted IFRS is the key to attaining this goal.”

Farmer works with the owners and managers of UK and international entrepreneurial businesses to help them achieve their goals. He provides advice that makes a positive contribution to their business, combined with bespoke services to maximise their success.

He is specialised in understanding the complex issues facing inward investing businesses setting up in the UK. He currently provides advice and services to numerous UK subsidiaries of overseas companies, including a number of well-known international retail chains.]]> <![CDATA[UAE’s Non- Oil Foreign Trade Rose by 23% in 2011.]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=57 http://www.alliottuae.com/en/newsmore.aspx?newsid=57 7/3/2012 00:29:00
Abu Dhabi: The total value of UAE’s non-oil foreign trade rose to Dh927.6 billion in 2011 compared to Dhs754.4 billion in 2010, an increase of Dh173.3 billion, the National Bureau of Statistics (NBS) said.

“This recorded an increase by 23 per cent over 2010. Dubai came first in non-oil exports with a total trade value of Dh700.4 billion, comprising 76 per cent of the total foreign trade of the UAE in 2011,” according to NBS.

“Abu Dhabi came second for non-oil foreign trade with a total value of Dh139.4 billion, which accounts for 15 per cent of the UAE’s foreign trade in 2011. Sharjah came third with a foreign trade of Dh68.3 billion, accounting for 7 per cent of UAE’s total foreign trade,” NBS said.

“The other four emirates accounted for 3 per cent of the country’s foreign trade in 2011,” according NBS.

“The total value of imports amounted to Dh602.8 billion in 2011 compared to Dh485.4 billion in 2010, an increase of 24.2 per cent,” NBS added.

It said: “Exports amounted to Dh114 billion in 2011 compared to Dh83.1 billion in 2010, an increase of 37.2 per cent. However, the total value of re-exports amounted to Dh210.8 billion in 2011 compared to Dh185.9 billion in 2010, a rise of 13.4 per cent.”

Major trading partner

India is the UAE’s major trading partner.

“The largest percentage of imports come from Eastern Asia, particularly India, which came in the first place, as the volume of imports from there amounted to 17.1 per cent, followed by China at 10.3 per cent, the US came third at 8.5 per cent,” NBS said.

The bureau added: “India came first as UAE’s trading partner for non-oil exports as the volume rose by 33.7 per cent, Switzerland came second with a rise of 16.2 per cent while exports to KSA came third by a 4.5 per cent rise.”

Dr Mohammad Amerah, chief economist at the Sharjah Chamber of Commerce and Industry, told Gulf News: “This is a positive indicator that the UAE economy’s performance is improving in spite of the international recession and regional economic problems.”

“The growth in UAE’s foreign trade is attributed to the growth of national manufacturing industries such as steel and aluminium as well as commercial services, particularly in Dubai,” Amerah said.]]> <![CDATA[Abu Dhabi GDP Leaps Almost a Third]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=58 http://www.alliottuae.com/en/newsmore.aspx?newsid=58 7/8/2012 02:16:30
ABU DHABI: The Statistics Centre - Abu Dhabi (SCAD) on Saturday released preliminary figures shedding light on the key developments in Abu Dhabi economy over the last year. The figures show significant growth in all activities and sectors, both oil and non-oil. Growth in the GDP at current prices during 2011 surpassed all the forecasts and estimates made by local and international parties.

According to the SCAD's preliminary data, Abu Dhabi GDP at current prices grew by 29.9 per cent from Dh620 billion in 2010 to Dh806 billion in 2011.

The SCAD said this robust growth presents unequivocal proof that Abu Dhabi has fully recovered from the impact of the global economic crisis.

During the past three years prices in Abu Dhabi have been markedly stable. The highest annual inflation rate during this period never exceeded 3.1 per cent. The emirate’s inflation rate had hit an all-time high of 14.9 per cent in 2008, but bounced to the lowest level ever, 0.8 per cent, the following year, in response to a set of direct measures taken by the Government of Abu Dhabi stabilise prices. In 2011 the inflation rate was 1.9 per cent.

Diversification of the economy

Despite the importance of oil to the economy of Abu Dhabi, the emirate is pursuing an ambitious strategy that seeks to expand and diversify the economy in order to fortify it against volatile oil prices. In this regard, the SCAD’s figures show that oil accounted for only 58.5 per cent of the GDP of the Abu Dhabi in 2011, despite the considerable rise in oil prices during the same year.

The figures released show that non-oil activities/sectors contributed 41.5 per cent of the emirate's GDP in 2011, achieving a relatively high growth rate of 7 per cent during the same year.]]> <![CDATA[Dubai on Strong Economic Footing: Merrill Lynch]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=59 http://www.alliottuae.com/en/newsmore.aspx?newsid=59 7/19/2012 00:36:39
Dubai: Dubai’s diversification model has right mix to re-accelerate growth, said Bank of America Merrill Lynch in a report entitled “GCC 2020: Time to Shift Gears”.

The report observed that more endowed countries such as Saudi Arabia, Qatar and the UAE have better chances to outperform their regional peers in economic growth.

BofA Merrill Lynch economists said that Dubai is set on course to outperform growth projections driven by job creation, improved funding and solid execution of its diversification strategy.

“Dubai has the right mix to re-accelerate growth. Dubai’s model of diversification stands out, having already achieved a critical mass, scale and a degree of competitiveness,” said Stephen Pettyfer, head of MENA Research at BofA Merrill Lynch Global Research.

According to BofA Merrill Lynch’s new medium-term outlook Dubai’s superior infrastructure investment and robust population growth have established solid foundations for its economic trajectory.

“Dubai’s status as a regional financial, transport and logistics hub places it in a position to benefit from growth in neighbouring countries in a self-sustaining fashion,” said Jean-Michel Saliba, Middle East and North Africa (MENA) economist at BofA Merrill Lynch.

Fit as a fiddle

“Dubai’s status as a regional financial, transport and logistics hub places it in a position to benefit from growth in neighbouring countries, in a self-sustaining fashion,” said Saliba.

Rapid growth in population is seen as a key element in Dubai’s economic growth model. The emirate’s population grew at an average of 7.7 per cent year on year between 1994 and 2010, and the Dubai population now represents 36 per cent of total UAE population.

According BofA Merrill Lynch, Dubai’s vision has relied on an element of risk-taking and forward-looking policies. It used its oil revenues early on to help fund the construction of Jebel Ali Port Complex to supplement Port Rashid, and its diversification efforts predate most other GCC country initiatives.

The report suggests that while the economy slowly recovers, Dubai is one of the best GCC cities to develop business. Its relatively small population of 2.1 million people and the ambitious objectives of the major Dubai-based corporates mean job creation should accelerate and support the real estate market.

Although the current working population in Dubai stands at 1.3 million, the emirate aims to create 950,000 new jobs by 2020, with retail, tourism and related sectors fuelling growth. This is an ambitious but realistic goal which would see the population increase on average by 4 per cent, which will, in turn, drive further economic growth.

Pettyfer concluded by saying, “Dubai’s diversification model has proved successful in developing both infrastructure assets faster than other GCC countries, and a non-oil-based economy more geared towards trade and tourism. That gives the emirate a key regional competitive advantage in attracting talent and boosting non-hydrocarbon-related activities.”]]> <![CDATA[Etihad Rail Tenders Contracts for Phase Two of Network]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=61 http://www.alliottuae.com/en/newsmore.aspx?newsid=61 7/30/2012 01:47:59
Abu Dhabi: Etihad Rail, master developer and operator of the UAE’s national railway network, issued invitations to tender earlier this month for the first three contracts for phase two of the network as construction is scheduled to begin early in 2013, it said in a statement.

The statement said: “The company has issued invitations to tender earlier this month for the first three contracts in the development of phase two of the rail network.”

It added that the three invitations to tender, which were issued to all pre-qualified companies, are for contracts covering the design and build of new lines between Ruwais and Ghweifat (137 kilometres), Liwa Junction and Al Ain (190km), as well as for the railway integration and systems contract (covering signalling, communications and commissioning) for phase two of the network.

According to Etihad Rail, this project represents an important pillar of the national rail network in terms of scale and scope.

Link in the GCC

The company added that the project will further connect industrial and urban areas, and will pave the way for connecting all GCC countries. It will connect the Kingdom of Saudi Arabia at Ghweifat and Oman at Al Ain.

However, the tendering of the first contracts for phase two follows the commencement of construction works earlier this year near Mirfa in the Western Region for stage one of the network, the company said. The company said that phase one of the network is being developed in cooperation with the Abu Dhabi National Oil Company (Adnoc) as it will be using railways as the main means to transport granulated sulphur from Shah and Habshan to the port of Ruwais for export.

The company said in May that delivery of the locomotives is scheduled for late 2012, and will support the inaugural service of transporting granulated sulphur from the Shah and Habshan fields to Ruwais. The locomotives will be operational by end of 2013 in the Western Region.]]> <![CDATA[Dubai’s Drydocks World Sets Up Asia Joint Venture]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=60 http://www.alliottuae.com/en/newsmore.aspx?newsid=60 7/29/2012 01:38:37
Dubai Dubai’s shipyard operator Drydocks World signed a deal on Wednesday to form a joint venture for its Asian operations with Singapore’s Kuok Group as it tries to close a $2.2 billion (Dh8.08 billion) debt restructuring, the companies said.

The shipbuilder has been working on the deal since at least December, when chairman Khamis Juma Bu Amim first discussed the possibility of sharing control of its Asian businesses.

Financial terms for the Asia deal were not disclosed. Company executives declined to say how much of a stake Kuok would have in the venture.

Bu Amim has repeatedly characterised the planned tie-up as a partnership rather than an acquisition, a theme he reiterated at the deal’s signing in Dubai.

“This is [a] joint venture of true value. It is not a takeover. It is not a process where people are running away from their responsibilities or anything like that,” Bu Amim told reporters.

Drydocks World operates the Middle East’s largest shipyard in Dubai, where it builds and repairs ships and oil drilling rigs. That yard is not included in the venture.

Its Asian business consists of four shipyards in Singapore and Indonesia, as well as a fleet of more than 100 tankers, cargo ships, tugboats, barges and other vessels.

The new venture, a partnership with Kuok’s Pacific Carrier Ltd, will be named DDW-PaxOcean Asia Ltd. and will be based in Singapore. Bu Amim will be the chairman, but the role of CEO has not been determined.

Kuok Group is a holding company for a group of Singapore-based businesses owned by the family of Malaysian tycoon Robert Kuok, one of Southeast Asia’s richest men.

Its Pacific Carrier division operates a fleet of ships hauling dry bulk goods, tankers and other vessels.

Drydocks World is trying to drive through a drawn-out restructuring effort to rework the terms on $2.2 billion in debt.

The negotiations have been complicated by a lawsuit by one of its creditors, Monarch Alternative Capital, which was seeking about $45 million.

The shipbuilder filed a claim with a special Dubai tribunal in April, aiming to convince holdout creditors to agree to its revised debt terms.

DryDocks World expects the Asia venture deal to close in the third quarter.]]> <![CDATA[UAE and Australia Sign Nuclear Cooperation Deal]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=62 http://www.alliottuae.com/en/newsmore.aspx?newsid=62 8/1/2012 03:59:10
Abu Dhabi: The UAE has signed a nuclear cooperation agreement with Australia, which holds about 40 per cent of the world's uranium reserves, and making the country the biggest producer of uranium fuel in the world.

According to the agreement signed on Tuesday, Australia will provide the UAE with uranium fuel once nuclear plants - which will cost about 73.5 billion ($20 billion) - are operational by 2017. The 15-year-deal covers uranium supply for four nuclear units.

The Australian Foreign Minister Bob Carr said that the agreement represents strong relationships between the two countries.

“We are pleased today to announce our readiness to provide the UAE with the uranium for their peaceful plants,” said the Australian minister.

UAE Minister of Foreign Affairs Shaikh Abdullah Bin Zayed said: “We have very strong bilateral ties with Australia crowned with the signing of this agreement. For the past few years, we started looking for alternative, sustainable and clean energy sources. This included nuclear power.”]]> <![CDATA[Shurooq Announces New Projects]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=63 http://www.alliottuae.com/en/newsmore.aspx?newsid=63 8/2/2012 01:16:02
Sharjah: Sharjah Investment and Development Authority (Shurooq) announced the commencement of development works in the Eastern region of the emirate of Sharjah, with the announcement of Al Hisn Island in Dibba.

This brings the total number of announced projects in the Eastern Region to three, following the recently announced Dh420 million The Chedi Khorfakkan Resort. More than Dh500 million has been allocated for investment in both Kalba Eco-tourism project and Al Hisn Island in Dibba.

The announcement was made by Marwan Bin Jassem Al Sarkal, CEO of Shurooq during an interview with Live Broadcast on Sharjah Radio on Wednesday. The new project in Dibba Al Hisn is a leisure and tourism project. The new project will include a big water canal and a number of cafes and restaurants. “

This project is being developed according to the directives of His Highness Dr Shaikh Sultan Bin Mohammad Al Qasimi, Member of the Supreme Council and Ruler of Sharjah in developing the Eastern Region, the Jewels of Eastern Coast and his order to deliver projects that serve the interests of citizens in these areas, drive economic growth, and attract investments that help create jobs and create added economic value to the city, in particular, and the Emirate, in general,” said Al Sarkal

Sharjah has approved setting up of a new commercial complex master plan of Kalba Eco-tourism, which will be located alongside Kalba Lake and will be comprised of a number of restaurants, retail outlets, children games, parks, and places to monitor animals and birds in the reserves.

The second phase of the project will involve the development of Kalba Lake and the construction of a commercial complex. It will include the development of recreational spaces that will enable holidaymakers to enjoy the area’s natural biodiversity without causing harm to wildlife.The project includes the development of the Kalba Fountain in the middle of the Lake. Phase 2 of the project will also comprise the development of a number of islands in the creek.

Phase 3 will see the setting up of a number of hotels and chalets overlooking the Gulf of Oman. More than 300 rooms spanning hotels and chalets would be built with eco-friendly standards.

Shurooq is conducting studies to develop the Khorfakkan Corniche and to add new amenities such as family areas, youth areas, public utilities, changing rooms, showers, bathrooms, a children’s fun area, services area and a number of cafes and restaurants opposite the sea. As part of the authority’s strategy of developing projects in all parts of the Emirate, Shurooq’s CEO announced that the authority intends to develop a new leisure project in Al Badayer in the Central Region and that the project’s preliminary studies have been completed.]]> <![CDATA[Foreign Investments Spur Dubai’s Growth]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=64 http://www.alliottuae.com/en/newsmore.aspx?newsid=64 8/11/2012 03:53:12
DUBAI - The emirate of Dubai, whose real estate market is on a fast track to recovery, is reemerging as a safe haven for foreign investors, say analysts.

A major reason is an influx of foreign money using the emirate as a safe haven. “A lot of people in the Middle East, Russia, Pakistan, and the Asian subcontinent are looking for a safe haven,” said Farouk Soussa, Middle East economist at Citigroup in Dubai. “Perceptions are that the real estate market has bottomed out. If you are looking for more long-term investment, the market in Dubai seems reasonable.”

Because of the importance of real estate in Dubai’s economy — it contributed about 13 per cent of gross domestic product last year, almost as much as manufacturing — a healthier property market is likely to have a string of positive effects. Among other things, it may reduce the pressure on state-linked companies that are restructuring their loans. Figures released by the Dubai government this week showed Indian citizens were the main buyers of luxury apartments and commercial space in the Burj Khalifa, the world’s tallest tower, during the first half of 2012, spending $222 million.

Iranians came second with $128 million.

For the Indian buyers, Dubai property is a refuge from currency depreciation that has taken the Indian rupee down about 20 per cent against the US dollar since the third quarter of 2011.

Money from Afghanistan, created by international aid there, is believed to be flowing to Dubai as nervous businessmen prepare for the withdrawal of most foreign troops from that country by the end of 2014.

Foreign investors bought real estate assets in Dubai worth Dh28.3 billion ($7.7 billion) in the first half of 2012, up 36 per cent over last year, Dubai government figures show. “Dubai’s property market will improve, but gently. Not at the 40 per cent growth per quarter that we saw during the boom,” said Loic Pelichet, Dubai-based assistant vice-president for research at NBK Capital.

There are other reasons to think the market may continue recovering for some years at least. One is the fact that by the standards of the top international cities, Dubai is still fairly cheap in the wake of its market decline. Secondly, Dubai may attract new flows of safe-haven money even if its existing ones start to dry up. The UAE dirham’s peg to the US dollar will help to make Dubai attractive if, for example, a partial collapse of the eurozone sends funds fleeing from European currencies.

Though the recovery is not being felt throughout the market, positive signs have mounted in the first half of this year. Real estate agent Knight Frank’s quarterly prime global cities index showed apartment prices in Dubai rallied over five per cent in the second quarter compared with six months ago.

“We see Dubai real estate performing well over the medium term,” said Graham Stock, strategist at frontier fund manager Insparo in London, adding that Dubai to some extent resembled London in the way that safe-haven buying by foreign investors was aiding property prices. — Reuters

Average apartment rents in Dubai are estimated to have increased two per cent in the second quarter, according to a report by property consultants CBRE. Particularly well-situated communities such as Emirates Living and Downtown Dubai may have seen rises of five to eight per cent quarter-on-quarter, it said.

The real estate recovery has supported a rebound in Dubai’s stock market. Shares in its biggest property developer, Emaar Properties, hit a 15-month high last week and are up 32 per cent this year — though much of the company’s rising earnings are due to its successful diversification away from residential real estate into hotels and retail.

Dubai lures buyers from the Indian subcontinent and Iran because of geographical proximity, easy access through its well-developed web of international links, and large Indian, Pakistani and Iranian communities. Meanwhile, the UAE stability during violent uprisings around the Middle East has attracted Arab money to Dubai.

The exposure to the dollar’s exchange rate could turn sour if the United States is caught in a debt crisis.

But in that case, the comfortable budget positions of Gulf economies — the UAE is expected to post fiscal surpluses of over five per cent of gross domestic product this year and next, according to a Reuters poll of analysts — mean that more than almost anywhere else, the Gulf will be able to spend its way out of trouble. That could attract investors from around the world to Dubai.]]> <![CDATA[UAE No.1 Regionally, 4th Overall for Starting Business]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=65 http://www.alliottuae.com/en/newsmore.aspx?newsid=65 8/15/2012 07:15:00
The UAE has been ranked first regionally and fourth globally in the World Competitiveness Yearbook 2012’s report in the indicator of procedures to start a business, up by 12 ranks compared to the past year.

The UAE — as a result of this report released by the International Institute for Management Development — outshone the United States, the United Kingdom, France and China.

The feat denotes how important the UAE is as a pivotal hub to running businesses in the world on one hand, and how it developed key factors needed to build a successful business milieu that supports its efforts to achieve the sustainable economic prosperity on the other.

Sultan bin Saeed Al Mansouri, UAE Minister of Economy, said that the Ministry of Economy is constantly working on promulgating and updating the rules and regulations governing and prompting the economic business environment, developing the national industries and exports, encouraging investment and organising the small- and medium enterprises-sector, maintaining consumer and intellectual property rights.

Al Mansouri underscored that the UAE government is well cognizant of the significance of efforts to establish and enhance a proper milieu to start flexible and smooth businesses.

According to statistical figures released by the local economic departments in the country, there is a noticeable growth in the number of new companies that have been registered at the beginning of 2012.
]]> <![CDATA[Managing Partner of Alliott Hadi Shahid Judges 2012 Middle East Accountancy & Finance Excellence Awards]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=66 http://www.alliottuae.com/en/newsmore.aspx?newsid=66 8/18/2012 01:56:01
Dr. Shahid, will be judging the nominees along with thirteen other prominent figures in the finance sector. ]]> <![CDATA[Gulf Investors Buoy UAE
 Real Estate Sector in 2011]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=67 http://www.alliottuae.com/en/newsmore.aspx?newsid=67 8/22/2012 00:49:54
The GCC investors have shown increasing interest in the various economic sectors of the UAE, the second biggest Arab economy, as they purchased 32 per cent more properties in 2011 to reflect their confidence.

This is in line with its continuous efforts to strengthen and deepen financial and economic cooperation between the countries of the Cooperation Council for the Arab States of the Gulf.

The Ministry of Finance’s annual statistical report on the Gulf Common Market- 2011, shows UAE as the hub of trade, commerce and investments.

The report revealed that a total of 44,902 property contracts were registered in 2011 compared to 34,029 contracts in 2010, a healthy trend reinforcing their trust in the UAE’s economic resilience.

It also presented an increase in the number of traded and registered properties by them, where the number of registered contracts increased from 4,604 contracts in 2010 to 10,873 in 2011, showing confidence in UAE’s real estate market.

The report issued by the Ministry of Finance pointed out that the number of licenses granted to the citizens from the oil rich region to do business has recorded a boost of 10.2 per cent to 28,909 licenses in 2011.

Share investors from the region are also taking more interest in the stock markets of the country as number show a 1.7 per cent surge in the number of investors to 212,020 in 2011 over 208,316 investors in 2010.

Obaid Humaid Al Tayer, Minister of State for Financial Affairs, in his comments emphasised nation’s determination to continue applying and activating plans of Gulf Common Market, or GCM, aiming to providing all the possible facilities that support them in their economic pursuits in the second biggest Arab economy.

Al Tayer said the UAE is implementing various resolutions related to the GCM allowing equal opportunities to them in all areas of economic life.

“The UAE has managed to provide many economic and investment opportunities to GCC nationals in 2011, which has helped to attract more to invest in various economic, educational and social sectors. This has enhanced the UAE’s competitiveness across the gulf region,” he added.

The report presented an increase in the total number of GCC nationals who are covered in the social insurance within the UAE that amounted to 5,242 employees in 2011 comparing to 4,190 employees in 2010.

“The UAE played a prominent role towards the implementation of all resolutions relevant to the GCM, which was highlighted in the report through the remarkable increase in the number of GCC employees in the public sector in the UAE with a rate of 22 per cent, where the number of workers increased from 789 employees in 2010 to reach to 963 employees in 2011.

The number of GCC employees in the private sector increased four per cent to 3,031 employees in 2011. With regards to the educational sector, MoF’s report has included a survey of the numbers of students from the GCC in various educational stages. The number of students enrolled in public schools in the UAE increased t three per cent 5,044 in 2011 compared to 4,891 students in 2010,” the report said.]]> <![CDATA[Dubai Industrial Park Opens to Foreign Investors]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=68 http://www.alliottuae.com/en/newsmore.aspx?newsid=68 8/23/2012 00:51:44
It may be just a building site in the desert but there is something very special about the 500,000 square metres of land in Dubai Investments Park (Dip) the park's general manager Omar Mesmar is about to start selling.

The two plots being developed as two enormous warehouses are set to become the first industrial land in the UAE outside a free zone to be available for foreign investment.

"There are three options: either you buy the facility and the land; you buy the facility itself and pay the rent for the land; or you pay the rent for the facility," said Mr Mesmar, pointing to the place on the map where the two buildings form the final phase of the 23 square kilometre development. The park is a self-contained mixed-use industrial, commercial and residential complex operated by Dubai Investments Park Development Company.

"It is very successful, converting a piece of desert into a city where at the current time almost 75,000 people are living and we receive 15,000 people visiting every single morning, to work or going to the schools," said Mr Mesmar.

While offering nothing like the sort of freehold investment companies and individuals can get in the UAE's free zones, Dip provides a chance for foreigners to get their hands on industrial property at the park, which on current management estimates could produce returns of between 12 and 14 per cent a year on an 85-year lease - a much longer term than previously available. Dip management said there had been discussions with about 20 interested parties keen to invest in the plots.

Local estate agents estimate the land will fetch between Dh300 (US$81.67) and Dh600 per sq metre, depending on the size of the plot and payment terms.

Sitting in the newDip headquarters building, Mr Mesmar described the deal on the table for the two plots, one of which has been developed as a light industrial facility suitable for uses including food and drink production, transport, and pharmaceuticals, while the other is under construction.

"We are not a free zone. So whoever was coming here to develop and own a facility must have a local partner or sponsor. However, after the new regulations came in, foreigners can own a warehouse and then lease it out to a third party."

Although foreign investors may only be able to buy land at the two final phases of the park, management said office and industrial buildings across the park were also now eligible to be sold on long leaseholds to overseas investors. "Even existing facilities can be acquired after the decree," Mr Mesmar said.

"We have received a lot of requests from their existing partners. We expect interest to come from private families, investment banks, even individuals who are living here. "For logistic facilities and light industrial, there is not much availability," he said.

"That's why we are anticipating that there will be good demand."

Dip and its property adviser, Cluttons, are putting together a pricing structure for the different properties available, including offices, showrooms, staff accommodation, housing and warehousing, which it hopes to also sell off on long leases.

And with Dip now 98.5 per cent leased, the park's management said it was in the process of attempting to roll out the idea elsewhere.

'We are in the process to take this idea elsewhere: to Saudi Arabia; Qatar; Bahrain. We are evaluating but it is just in the early stages.

"It's not like building up a small company or a small factory for Dh2 million or Dh3m . You are developing a city," Mr Mesmar said.

"It takes a huge investment. You are investing in infrastructure."]]> <![CDATA[UAE Non- Oil Foreign Trade up at Dh1.3 Trillion in 2011]]> http://alliottuae.com/en/newsmore.aspx?newsid=69 http://alliottuae.com/en/newsmore.aspx?newsid=69 8/26/2012 03:21:17
ABU DHABI — The UAE’s non-oil foreign trade rose to Dh1.3 trillion in 2011, compared to Dh1.1 trillion in the previous year, reflecting a growth rate of 18.2 per cent, according to initial statistical reports released by the Federal Customs Authority, or FCA.

In a statement issued on Saturday, the FCA said that total UAE non-oil foreign trade increased to Dh927.7 billion during the year, while the value of free zones’ trade increased to Dh367.7 billion, of which Dh212.5 billion was the value of imports and Dh145.2 billion was value of the exports and re-exports.

The FCA said that the primary statistical database of the year 2011 is an important economic standard indicating the national economy recovery and the increase of the national products competitiveness in the world markets.

Moreover, such data show the successes of state policies following the world financial crisis and represent how far the rational leadership has turned the economic diversification policy to a real fact, bringing up several positive impacts on market activity and national products’ competitiveness.

The FCA pointed out in its statement that imports have restored growth ratios prior to the world crisis and that imports have been raised from Dh485.4 billion in 2010 to Dh602.8 billion in 2011, achieving an increase of 24 per cent, thus reflecting world trust in the national economy with its two branches: the governmental sector and the private sector, as well as the belief in the state’s ability to recover its position in retail trade and again supplying markets abroad with products needed.

It added that the exports’ growth rate expresses the high competitiveness of national products, and together with that, the increase of exports versus the decrease of imports means that exports contribute to minimise the financial deficit, the matter which results in a series of positive impacts like having more foreign currency invested, enriching national labourer experiences and extending national products presence in the world markets.

The FCA said that 10 countries dominated almost 67 per cent of the total value of the imports of the UAE. The total value of UAE imports was about Dh369.6 billion in 2011.]]> <![CDATA[Khalifa Port in Trial Phase for Upcoming Opening in September]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=70 http://www.alliottuae.com/en/newsmore.aspx?newsid=70 8/27/2012 01:32:48
Multi-billion dollar project will be able to handle up to 5m TEUs in its First Phase Alone

The Khalifa Port has been primarily designed to accommodate Mina Zayed’s traffic and Abu Dhabi’s trade growth.

Abu Dhabi: Khalifa Port, the new upcoming port for the emirate which is adjacent to the Khalifa Industrial Zone Abu Dhabi, or Kizad, is currently undergoing operational testing before its official opening on September 1 of this year.

Khalifa Port, a multi-billion dollar investment, has been primarily designed to accommodate Mina Zayed’s traffic and Abu Dhabi’s trade growth, as well as, move truck traffic away from the city.

“Abu Dhabi had to find a new location to build board capacity,” said Martijn Van de Linde, Chief Executive Officer of Abu Dhabi Terminals told Gulf News.

The Port, which will be purely an industrial business, will have a capacity that is at least six times larger than that of Mina Zayed’s today, he said.

In its first phase alone, the port will be able to handle about 2.5 million TEU (Twenty foot Equivalent container Units), which can go up to 5 million, plus 15 million tons of general cargo. Once the second and third phases come online, Linde expects the port to have a capacity of up to 15 million containers a year.

However, ADT doesn’t expect the port to reach its full capacity in its early stages.

“We expect to be utilising the first phase to full capacity within the first five years from opening,” he said.

Besides capacity, the new port will be able to house ships with a draft that is up to 16 metres long, which is the biggest vessel today. “Here in Mina Zayed, we cannot handle shipping with a draft more than 12 metres,” Linde said.

Once it is in operation, vessels will be able to sail directly to the UAE, doing without several stops, which would ultimately lower the cost of transport, he explained.

This will drive down the cost of trade which will positively affect the economy of Abu Dhabi, making it more competitive.

The productivity at Khalifa Port will also be much higher; vessels will tend to stay in the port for shorter periods of time compared to those at Mina Zayed, he explained.

“Here the biggest vessel we can handle is probably about 250 metres long. In Khalifa Port we can handle vessels longer than 400 metres,” he said. “The new port has been equipped to be a semi-automated container terminal, one of very few automated ports in the world.” Container movement will be controlled at the port via an automated system.

It’s the kind of job that Linde said employees have been training for almost a year.

While the project will be coming online in three phases, ADT has said that the launch of the second and third phase would heavily depend on the utilisation of the first phase.]]> <![CDATA[Dubai Trade Exceeds Dh600b]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=71 http://www.alliottuae.com/en/newsmore.aspx?newsid=71 8/28/2012 04:20:16
Dubai’s foreign trade set new record in first half as it exceeded Dh600 billion mark for the first time in its history.

The emirate’s non-oil foreign trade climbed to a record Dh602 billion during the first half of 2012, reflecting a 12 per cent growth over the corresponding period last year. It recorded Dh537 billion foreign trade in first half last year.

According to latest statistics issued by Dubai Customs, the emirate’s imports have shown a growth of 11.5 per cent in first half, fetching Dh357 billion compared to Dh320 billion in the same period previous year. The value of exports and re-exports hit Dh245 billion with a growth rate of 13 per cent as compared to Dh217 billion over the same period last year.

Ahmed Butti Ahmed, Executive Chairman of Ports, Custom and Free Zone Corporation, explains that these figures include non-oil direct trade, free zone trade and customs warehouses.

Ahmed Butti, who is also a Director-General of Dubai Customs, commended Dubai’s foreign trade sector for breaking the barrier of Dh600 billion for first time in its history.

“This sector suffered major losses in 2009, dropping from Dh458 billion in 2008 to Dh361 billion in first half of 2009 amid the global economic crisis. The sector managed to get back on track during first halves of 2010 to 2012, registering Dh436 billion in 2010, Dh537 billion in 2011 and Dh602 billion in 2012.”

Ahmed Butti further pointed out that the department is continuing to establish better regulations and customs procedures, which provide more facilities for traders, cargo companies and all customers within a more attractive investment environment. According to a statement by Dubai Customs, unwrought, worked and semi-manufactured gold topped the list of Dubai’s imports reaching Dh59 billion during the first half of 2012, followed by jewellery at Dh25 billion, diamonds at Dh24 billion, telecoms equipment at Dh23 billion and automobiles at Dh15 billion.

Gold was also ranked as the top exported product from Dubai during first half of 2012, at a value of Dh42 billion, followed by diamonds at Dh8 billion, jewellery and precious metals at Dh3 billion, aluminium at Dh2 billion and non-crude oil at Dh2 billion.

In terms of re-exported products from Dubai, telecoms equipment came in first at Dh29 billion, followed by diamonds at Dh15 billion, jewellery and precious metals at Dh11 billion, oil products at Dh10 billion, and IT machinery at Dh9 billion.

According to the figures released by Dubai Customs’ Department of Strategy and Corporate Excellence, India has managed to maintain its position as Dubai’s top foreign trading partner with a total trading value of Dh77 billion, while China came in second with Dh53 billion, followed by the US at Dh36 billion, Switzerland at Dh32 billion and Saudi Arabia at Dh23 billion. Accordingly, Dubai’s trade exchange value with these top five countries hit Dh221 billion in total, accounting for 37 per cent of Dubai’s overall foreign trade during the first half of 2012.]]> <![CDATA[Dubai Offers Dh72m Fee Exemption to SME's]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=72 http://www.alliottuae.com/en/newsmore.aspx?newsid=72 9/3/2012 00:26:04
Dubai: Dubai SME, the agency of the Department of Economic Development (DED) in Dubai, yesterday announced that it is offering its members a fee exemption of more than Dh72 million.

Small and medium entrepreneurs (SMEs) will not be charged more than a Dh1000 annually during the first three years of business in Dubai,” Abdul Baset Al Janahi, CEO of Dubai SME, said.

This move seeks to encourage SMEs to focus on growing their enterprises without cost concerns.

“With the discounted fee, we are offering another wide window of opportunity for our SME members. Entrepreneurs can now launch their business with confidence, knowing that government fees will not be burden on their business plan or operations,” Al Janahi said.

This initiative will help Dubai SME’s members to save Dh20,000 per year on an average, that is Dh60,00 in the three years,” Al Janahi said.

Eliminating the labour security deposit together with the additional licensing fee, SME owners will save around 90 per cent of fee costs as well as from 10 to 20 per cent of their capital along three years, he added.

Abdul Aziz Al Mazam, Senior Manager, Business Start-up & Development at Dubai SME, said the flat fee exempts SME businesses from various charges payable otherwise to government authorities including the DED, Dubai Municipality and Civil Defence as well as the Dubai Chamber of Commerce & Industry.

“For example, Dubai Municipality levies a 5 per cent fee on rent from all businesses. Considering that rent in certain areas in Dubai is quite high, the flat rate presents a huge saving in this respect alone,” he said.

Dubai SME has also reached an agreement with Tecom, Union Cooperative Society and Aswaaq to offer a 20 per cent discount on rents to Dubai SME members. Additionally, Dubai SME members are exempted from the Dh3,000 payable as bank guarantee for every employee hired as per an agreement signed with the Ministry of Labour.

“There are 5,000 people employed by Dubai SME members and the bank guarantee exemption means another saving of Dh15 million for these SMEs. We are trying to open the world of business and enterprise as wide as possible and cutting down cost of licensing and hiring will encourage entrepreneurs while also complementing the efforts to enhance Dubai’s global rankings in the ease of doing business,” said Al Mazam.

Jitendra Gianchandani, Chairman of Jitendra consulting group, told Gulf News; “It’s worthwhile discount to SMEs members, no doubt about it, waiver of market fees or flat fees and deposits to various government, is decent amount.”

“It will ease the burden on the SMEs. However as SMEs members represent only 1200 members, which is almost negligible compare to total SMEs operating in Dubai .Hence such discount should be extended to other firms who are established since more than decade and never had any fine or labour dispute, to encourage them and create healthy atmosphere in the country”]]> <![CDATA[Central Bank Estimates UAE 2012 GDP Growth to Top 3.5%]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=73 http://www.alliottuae.com/en/newsmore.aspx?newsid=73 9/11/2012 00:46:48
Abu Dhabi The UAE’s economic growth this year may better the International Monetary Fund’s (IMF) gross domestic product (GDP) growth estimates of 3.5 per cent for the country, the Central Bank said yesterday in its first-ever Financial Stability Review.

Citing reasons for its optimism, the apex bank said: “Dubai may achieve 4 per cent growth or more as it was stated in the Dubai Economic Outlook for the year 2012; an equally high high growth is expected in the emirate of Abu Dhabi following the recent decisions to create two new industrial clusters and to go on with some landmark projects; increased public spending in the Northern Emirates and expected high oil prices for the whole year.”

“The UAE managed to have a good year in 2011 despite a difficult international environment; it achieved an overall balance of payments surplus and respectable growth while maintaining a low inflation environment,” said the Central Bank Governor Sultan Bin Nasser Al Suwaidi in a statement.

He said thanks to ample capital and satisfactory profitabilty, UAE banks were able to weather the impact of a further increase in non-performing loans and constitute additional provisions.

“Liquidity remained at an acceptable level as demonstrated by banks investing Dh80 billion in the Central Bank’s Certificates of Deposits as at the 31st of December 2011,” said Al Suwaidi.

The central bank said the core capital buffer held by UAE banks, over their regulatory requirement, amounts to around Dh100 billion. “This buffer introduces a significant level of comfort to the UAE-based banks, especially national banks. As issues with major corporate entities are being resolved through either the rescheduling or restructuring of part of their loans, having a sizable capital buffer in place will help reduce the impact of any adverse outcome,’ it added.

With regard to inflation, the central bank said it is unlikely that that CPI (Consumer Price Index) inflation will reach an uncomfortable zone in the UAE as long as housing prices are decreasing or at least stabilizing and the increase in imported prices is limited to international inflation given the Dirham’s fixed peg to the U.S. Dollar.]]> <![CDATA[Fitch Affirms Abu Dhabi at ‘AA’]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=74 http://www.alliottuae.com/en/newsmore.aspx?newsid=74 9/15/2012 06:18:38
Dubai Fitch Ratings has affirmed Abu Dhabi’s Long-term foreign and local currency Issuer Default Ratings (IDR) at ‘AA’ with a Stable Outlook. Fitch has also affirmed Abu Dhabi’s Short-term foreign currency IDR at ‘F1+’. The UAE Country Ceiling is affirmed at ‘AA+’.

The affirmation and Stable Outlook reflect the continued strength of Abu Dhabi’s sovereign balance sheet. This is estimated to be the second strongest amongst rated sovereigns measured by sovereign net foreign assets (SNFA), and conveys exceptional fiscal flexibility.

Foreign assets are estimated to have risen again in 2011, despite a dip in investment returns, as the general government budget moved further into surplus, despite a substantial spending increase.

Foreign assets held in Abu Dhabi’s main sovereign wealth fund (the Abu Dhabi Investment Authority, or Adia) are estimated by Fitch to be around $300 billion (Dh1.1 trillion). This is at the low end of the range of independent estimates and compares with just $3 billion of direct sovereign external debt after the maturing of a $1 billion eurobond earlier this year. SNFA of an estimated 131 per cent of GDP at end-2011 are second only to Kuwait’s (‘AA’/Stable). On current oil price assumptions ($110 per barrel in 2012, falling to $100 per barrel in 2013-2014) gross assets are forecast to continue rising, despite a projected weakening in the overall fiscal surplus, assuming investment returns are positive. Adia’s average return in the 20 years to 2011 dropped slightly to 6.9 per cent from 7.6 per cent in the 20 years to 2010.

The agency estimates the overall fiscal surplus, including dividends from the Abu Dhabi National Oil Company (Adnoc) and Adia investment income, improved sharply in 2011 despite an almost one-third rise in expenditure and net lending. This follows a deficit in 2009 - only the fourth in 30 years - when fiscal policy was determinedly countercyclical and exceptional assistance was provided to Abu Dhabi state-owned enterprises (SOEs), banks and other government related enterprises (GREs) as well as to Dubai. The resumption of spending growth in 2011 followed the go-ahead given to key projects after completion of a comprehensive review. Exceptional support for private construction firm Aldar accounted for one quarter of the total spending increase, similar to the increase in support for SOEs.

Current spending (excluding transfers to the UAE government) rose by over 20 per cent.

Ongoing budget support to SOEs averaged over 10 per cent of GDP in 2009-2011. Ad hoc and ongoing support for Abu Dhabi’s public and private enterprises demonstrates the potential cost of contingent liabilities. However, Abu Dhabi’s ability to provide such support without so far seriously denting its balance sheet also emphasises its considerable fiscal flexibility. There is a risk that Abu Dhabi will have to dedicate more resources to meeting contingent liabilities, but Fitch considers the amount that will crystallise is still small compared with sovereign resources.

A sharp oil price fall coinciding with weak investment returns that causes revenues to fall and spending to increase remains the main threat to the rating. Sustained double-digit growth in spending, well above Fitch’s expectations, could see budget deficits recur more frequently and would leave the sovereign credit profile more exposed to this kind of shock and thus could exert downwards pressure on the ratings.

However, spending in 2012 is budgeted to rise only slowly as one off items drop back, although development spending will see another large increase. On this basis, and assuming spending remains at current high levels (40 per cent of GDP) in 2013-2014, the breakeven oil price will rise to $70 per barrel over the forecast period, from $60 per barrel last year. With public spending a key driver of the non-oil economy, non-oil real GDP growth will likely slow from the 5 per cent average estimated for 2009-2011.

Abu Dhabi’s overall balance sheet, taking into account both public and private sector external debt, remains stronger than ‘AA’/’AAA’ medians but is weaker than some ‘AA’ peer countries and weaker as a percentage of GDP than before the 2009 crisis. However, SOE/GREs also have external assets which Fitch’s analysis cannot take into account in the absence of a comprehensive balance sheet for “Abu Dhabi Inc.”

Abu Dhabi has the second-highest per capita income of any rated sovereign, founded on a high per capita hydrocarbons endowment. However, human development and business environment indicators (albeit for UAE as a whole) are generally weaker than ‘AA’ medians. Political stability is high and UAE has seen no significant contagion from ‘Arab Spring’ protests in the region.

Financial and oil wealth offset weaknesses such as high economic and fiscal dependence on oil, limited transparency and weak data provision compared with most other ‘AA’-rated sovereigns. Although transparency regarding external debt and the quality of economic statistics is improving, greater clarity on the level of foreign assets would be a necessary condition for any positive rating action.

The biggest downside risk to the ratings, other than balance sheet deterioration, would be a major geopolitical event. This year’s inauguration of the Abu Dhabi Crude Oil Pipeline has helped mitigate geopolitical risk somewhat. It will allow up to 70 per cent of oil exports to bypass the Straits of Hormuz, giving Abu Dhabi a strategic advantage compared to some of its oil exporting neighbours in the event that regional hostilities led to the straits’ closure.]]> <![CDATA[UAE’s Non- Oil Trade up 5% in Feb]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=75 http://www.alliottuae.com/en/newsmore.aspx?newsid=75 9/23/2012 02:49:20
ABU DHABI — The UAE’s non-oil foreign trade grew five per cent to Dh 76.6 billion in February 2012 from Dh73 billion a year ago. UAE non-oil exports made unprecedented leap in February 2012, the Federal Customs Authority (FCA) said in a Press release on Saturday.

The growth reached 62 per cent as exports crossed Dh12.1 billion compared to Dh7.5 billion in February; registering an increase of Dh4.6 billion. The non-oil imports rose by eight per cent to Dh49.5 billion against Dh45.9 billion in the same month a year earlier; with an increase of Dh3.6 billion. The re-exports hit Dh15 billion in the same month.

UAE trade partners remain in the same ranking in terms of importance, the FCA said. The Asia-Pacific region retained its first place among the nation’s non-oil foreign trade partners with total trade of Dh34.5 billion with the UAE — 46 per cent of the total trade.

Europe came in second place with Dh20.4 billion, or 27 per cent, of the total trade followed by Middle East and North Africa with Dh10.1 billion, or 13 per cent; America and the Caribbean with Dh 6.2 billion, or eight per cent; and Western and Central Africa region with Dh2.3 billion.

The total of UAE non-oil foreign trade with the GCC hit Dh6 billion in February, the FCA said. This total consisted of Dh2.3 billion in exports, Dh1.4 billion in imports and Dh2.3 billion in re-exports.

Saudi Arabia, the FCA said, kept its top place among the UAE trade partners from the GCC in February. Total trade with the kingdom reached Dh2.2 billion. Oman came in second with Dh1.5 billion followed by Qatar, Kuwait and Bahrain.]]> <![CDATA[Private Education in UAE Set to Grow]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=77 http://www.alliottuae.com/en/newsmore.aspx?newsid=77 10/4/2012 03:02:36
Dubai: The private education sector in the UAE is one of the biggest in the world and is set to grow further, according to international experts who are arriving in Dubai for a major education conference.

AT $1.9billion (Dhs6 billion) the private education sector in the UAE is bigger than that of China and is one of the strongest in the world. However, with the expatriate population booming in the country, more players are entering the field.

The subject will be explored further in a conference from October 8 to 12 with entitled “Education Investment MENA”.

“Education opportunities in the Gulf are taking off. The UAE leads the world in private education in terms of its business models and different product offerings.

“Its market size currently stands at a staggering $1.9 billion with China a little behind with $1.8 billion.

The UAE has been and will continue to be the strongest private education market in the world,” said Ralph Tabberer, Chief Executive of Better Broader Deeper (BBD) Education, a UAE and UK based educational institute, and chairman at this year’s Education Investment MENA Conference.

Tabberer described Dubai as the “prototype for how the world will grow better education systems”.

“Investors have always shown interest in the UAE, especially Dubai, because of its promising returns. With the growing number of expats in the region, growth in the private education sector will never stagnate,” he added.

Dr. Abdulla Al Karam, Chairman of the Board of Directors, Director-General of Knowledge and Human Development Authority, the strategic partner of the event said: “Private education in the MENA region is ready for increased investment.

“High youth numbers and the impact of the Arab Spring are driving much of this growth.

“Private education is resilient to the booms and busts of normal business cycles and offers solid returns for investors that can provide students with good quality education.

“As with any important investment decision, reducing risk is critical and it is advisable to choose locations that are well-regulated.”

The demand for investment is now so well established in the UAE that many internationally renowned institutions are exploring opportunities in Dubai, including UK school Millfield.

David Williamson, Chair of the International Campus Committee for Millfield School, said: “There is enormous demand for exceptional quality education systems in the UAE, and Millfield School is exploring opportunities for establishment in the UAE in partnership with CERT. We see great potential to expand into this region.”

The Education Investment MENA Conference will highlight major opportunities for educational operators, investors and financers in the Middle East and North Africa’s booming education market.

The first two days of the event include presentations from various speakers including; Dino Varkey of GEMS Education, Edward Hobart –The British Consul-General to Dubai, Dimitris Tsitsiragos of the IFC, Jens Yahya Zimmermann of New Silk Route Growth Capital, Fahim Muscatwalla of Abraaj Capital and Dr Ayoub Kazim of Dubai International Academic City.]]> <![CDATA[UAE Economy Right on Track]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=79 http://www.alliottuae.com/en/newsmore.aspx?newsid=79 10/7/2012 06:35:07
Abu Dhabi and Dubai are staging a gradual recovery from a slowdown, helped by high oil prices, accommodative monetary policy and fiscal policies in mild consolidation drive, Bank of America Merrill Lynch, or BofA ML, Global Research said. “We thus see upside to our conservative real gross domestic product, or GDP, growth projections for the UAE of three per cent for 2012 and 2013,” the bank said in a statement.

The International Monetary Fund has estimated the GDP to grow by 3.5 per cent for the UAE. But the country’s central bank said recently that it could see an upside to IMF forecast.

According to the regulator, Dubai may achieve four per cent growth or more while an equally high growth is expected of Abu Dhabi following the recent decisions to create two new industrial clusters and to go on with some landmark projects, increased public spending in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah, and expected high oil prices for the whole year.

“Abu Dhabi’s real non-hydrocarbon GDP growth has gradually recovered and likely implies upside to our real GDP growth projection of three per cent for 2012 for the UAE. Moderate ongoing fiscal consolidation and lower support to distressed entities should then allow capital spending to gradually increase while lowering the current elevated central government fiscal breakeven oil price of $100 per barrel,” BofA ML said.

The bank noted that exceptional support to Dubai, banks and quasi-sovereign entities in 2009 has led to a near quadrupling of the Abu Dhabi central government fiscal oil breakeven price from $33 per barrel at the eve of the global financial crisis in 2007 to a peak of $121 per barrel in 2009.

“At -21.8 per cent of GDP, the 2009 fiscal balance registered its worst reading since at least 1980, and only moderately narrowed to -10.8 per cent and - 4.1 per cent of GDP in 2010 and 2011, respectively, on a decidedly countercyclical or expansionary fiscal policy,” BofA ML said.

The bank projected a 2012 fiscal breakeven price at $103 per barrel, assuming historical fiscal intake in line with recent outturns, which should lead to a moderate fiscal surplus of 2.8 per cent of GDP.

“This will be the first fiscal surplus since 2008 but still the smallest since 2004, and assumes a gradual decrease in net loans and equity and a moderate increase in capital spending,” it said.]]> <![CDATA[Abu Dhabi Avoids Gloom as Economy Shows Growth]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=80 http://www.alliottuae.com/en/newsmore.aspx?newsid=80 10/15/2012 03:30:31
Abu Dhabi's economy grew 6.8 per cent in real terms in 2011, almost double previous official forecasts, a new study has found.

Using 2007 prices, the emirate's economy grew from Dh606.06 billion (US$164.97bn) in 2011, up from Dh567.8bn a year earlier, according to preliminary figures from the Statistics Centre Abu Dhabi (SCAD).

It was the first time Scad has produced GDP statistics using constant prices, intended to strip out the effects of inflation.

"The emirate's economy has evidently overcome the repercussions of the global financial crises, as detailed data point to significant growth in real terms across all activities and sectors, both oil and non-oil," Scad said.

The 6.8 per cent real rate of growth in the emirate's economy beat an earlier 3.8 per cent forecast for the year made by the Abu Dhabi Chamber of Commerce in 2010. The oil sector accounted for 52.4 per cent of the emirate's economy last year, Scad said.

Among the emirate's non-oil sector activities, the fastest growth was recorded in the transport, storage and communications sector, which increased 12.5 per cent.

Restaurants and hotels were next, with 11.4 per cent growth, and property followed with a rise of 10.9 per cent.

The Abu Dhabi Economic Vision 2030 plan for industrial diversification plots annual growth of 7 per cent a year until 2015, when growth tapers off to become an annual rate of 6 per cent.

The rate of growth published by Scad also surprised economists, who attributed the increase in economic activity to a surge in the price of oil as a consequence of unrest in Libya.

Brent crude futures averaged $111.63 a barrel last year.

"The strong growth rate appears to have been driven primarily by the oil sector, which ramped up production in line with other regional oil producers, following the decline of Libyan output," said Liz Martins, a senior economist at HSBC.

"Despite the impressive return of Libyan supply, strong growth in the oil sector appears to have continued this year," she added. "Outside of the oil sector, things are still somewhat challenging, with very little credit growth or fiscal stimulus to boost the non-oil economy."

The IMF estimates that the wider UAE economy grew at 4.9 per cent last year in real terms.]]> <![CDATA[Capital Ranked ‘Most Productive’]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=81 http://www.alliottuae.com/en/newsmore.aspx?newsid=81 10/17/2012 06:16:11
Abu Dhabi was ranked the “most productive” economy and was chosen as one of 27 “cities of opportunity” by one of the world’s leading accounting firms.

The UAE capital came ahead of New York, San Francisco, Los Angeles and Chicago for productivity in the annual report released by PricewaterhouseCoopers, or PwC, and the Partnership for New York City.

PwC’s “Cities of Opportunities 2012” report has analysed the performance of 27 cities at the centre of finance, commerce and culture and studies the cities’ potential by the year 2025. The ranking, which rates cities according to several criteria, also puts the UAE capital in the number one slot among emerging economies for the number of hospitals per head of population.

The report forecasts growth in employment rates towards 2025 in Abu Dhabi’s business services, especially in manufacturing, transport and communications, education and hotels and restaurants.

“As Abu Dhabi joins the world’s developed cities in terms of jobs today, the study shows that the biggest part of employment will be in the leisure and culture sectors and by 2025 reaching 20.3 per cent, and the city’s total business services will grow by nearly nine per cent,” PwC said. “We have always perceived the UAE as a positive environment for growth and we have selected its capital, Abu Dhabi, as one of the 27 cities to be part of the Cities of Opportunity due to its position as a financial, commercial and cultural centre that continues on a path of growth and development,” said Jacques Fakhoury, PwC Abu Dhabi senior partner.

“At PwC we have repeatedly discussed talent as core to developing an economy and we are proud to see that Abu Dhabi’s workers continue to add great value to its economy, with the city’s productivity topping the chart ahead of New York, San Francisco and Los Angeles.” The report noted that with the highest number of hospitals per capita, Abu Dhabi is the top ranked emerging economy in the health, safety and security category, bringing it to a tie with Tokyo.

“It has surpassed Los Angeles, Paris, Madrid and Hong Kong for this indicator among developed economies. Abu Dhabi also reported the lowest crime rates, bringing it closer to Singapore and Hong Kong, economies that have fared very positively on low crime rates year on year,” the report said.

The capital city also secured top performance in other key indicators including 6th ranking in the cost of business occupancy, ninth in consumer price index, 15th in the iPod index, and second lowest cost in public transport. “Abu Dhabi has resources that many cities don’t have access to, and with the city’s 2030 vision for a sustainable future, the Cities of Opportunities report cites great expectations for the city to improve on its current sustainability ranking,” PwC said.]]> <![CDATA[UAE Economy on Growth Path: Public Spending Increased in the Last 24 Months]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=82 http://www.alliottuae.com/en/newsmore.aspx?newsid=82 10/22/2012 09:30:28
Abu Dhabi: High oil prices accompanied with rise in oil output are keys for GCC economic growth and a means to avoid any effects of the Eurozone on their economies, experts told the Gulf News on Sunday.

“The UAE’s oil economy represented by Abu Dhabi is growing and the non-oil economy represented by Dubai is also growing in parallel, leading to the growth in its GDP,” Philippe Dauba-Pantanacce, senior economist, Turkey Middle East and North Africa Global Markets, at Standard Chartered Bank, said.

“The UAE, particularly Dubai, has benefited from the instability in the region due to the so-called Arab Spring which helped the Dubai economy come back to the period before the 2008 financial crisis amidst indicators that its real estate sector is recovering and on the ramp-up,” said Dauba-Pantanacee who is taking part in the conference on Future of GCC’s Competitiveness organised by Insead.

Dauba-Pantanacce said that 2012 is a very good year for the GCC countries, particularly the UAE. “Oil prices are so far resilient and there is also a growth in the output which means higher GDP growth for the GCC countries,” he added.

The other factor that one can witness in last 18-24 months is the public spending which helped the markets.“Salaries increased in the GCC region, governments tried to react to the Arab Spring by stepping up their fiscal spending. Massive spending in the region to support people is positive on the short run,” remarked Dauba-Pantanacce.

“Dubai has come back as a safe haven in a troubled region, reaping the benefits of building strong service and tourism sectors. More than 50 million passengers flew via Dubai International Airport last year and it is expected that more than 54 million passengers will fly via the airport by end of 2012,” said Mark Beer, chief executive and registrar at DIFC courts.

“The UAE private and public sectors are playing complementary roles to build the country’s economy. The country is a model for others; yet, the private sector should be given a major role to play as it is the sole sector that creates job opportunities in the future,” said Beer.

Jean Marie Pean, chairman of Bain and Company Middle East, UAE, told the Gulf News that the UAE has so far succeeded in restructuring its economy and to avoid the bad consequences of the financial crisis in 2008 and the Euro Crisis.

Before the financial crisis, the growth rate of UAE economy was 6 per cent, it went down to 4 per cent during the crisis and it is now recovering to its normal rates, conducive to sustaining high growth rates.

Khalfan Saeed Al Ka’abi, Abu Dhabi Chamber of Commerce and Industry (ADCCI) vice-chairman, said that the UAE is a business hub in the world that is suitable for entrepreneurs and businessmen to launch their businesses and ventures.

“The UAE has uniqueness represented by its leadership which is committed to bring the country to be amongst the top 5 in the world. The UAE is the land of opportunities where more than 200 nationalities reside and work,” said Al Ka’abi.

“In the UAE there are about 50,000 millionaires which is a sign that the country has distinctive business type and structure that is lucrative for foreign businessmen to invest in the UAE,” Al Ka’abi elaborated.

“The UAE is a springboard towards regional countries’ markets and utilising the atmosphere of economic openness, the strategic geographical location, the sophisticated infrastructure and a competitive business environment,” he said.]]> <![CDATA[UAE Jumps Seven Spots in Global Competitiveness Ranking]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=83 http://www.alliottuae.com/en/newsmore.aspx?newsid=83 10/23/2012 09:35:18
“Real competitive economies drive economic prosperity to its people,” said Abdullah Lootah, Secretary General of Emirates Competitive Council.

Dubai: The UAE has moved up seven ranks in this year’s edition of The World Bank’s Ease of Doing Business Report 2013, moving from the 33rd to become 26th globally, making it one of only three countries in the Middle East and North Africa region that have had positive improvements in global competitiveness ranking.

“Real competitive economies drive economic prosperity to its people,” said Abdullah Lootah, Secretary General of Emirates Competitive Council. “Federal and local government entities in the UAE have been exerting a great amount of effort to enhance processes and boost productivity and efficacy for the purpose of offering better service to the public."

“This acknowledgement by the global community is a recognition that the UAE is on the right path to achieve UAE Vision 2021 which is to be among the best countries in the world by 2021.” Lootah added.

“We are delighted with the advanced rank the UAE has achieved in the Ease of Doing Business Report. This accomplishment is a reflection of our ongoing efforts to create a supportive environment that encourages growth, attracts investments, and therefore become more profitable and successful,” said Abdulla Al Shaibani, Secretary-General of the Dubai Executive Council. “We work very closely with all our partners in both public and private sectors to achieve our strategic objectives in making Dubai and the UAE a global hub for business.”

This year, 10 indicators are used by the Ease of Doing Business Report to analyze economic outcomes and identify what reforms of business regulation have worked, where and why. Regulations affecting areas of the life of a business covered areas such as Starting a Business, Dealing with Construction Permits, Getting Electricity and Registering Property.

The Ease of Doing Business Report 2013 states that many decision makers —particularly in policy-making circles and in the private sector, who use the data in the report, associate better performance on the indicators used in the reports with greater inflows of foreign direct investment (FDI).

Since the launch of last year’s report nearly 2,000 articles in the international press have drawn a connection between FDI and Ease of Doing Business Report. Such articles often suggest that higher rankings will be associated with more foreign investment, which is believed to create jobs, bring in new technologies and processes and have other beneficial collateral effects on the real economy.

First published in 2003 with 5 indicator sets measuring business regulation in 133 economies, this year marks the 10th edition of the Ease of Doing Business report. Today, the report has grown into an annual publication covering 185 economies around the world.]]> <![CDATA[UAE Foreign Trade at Dh499b in First Half]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=84 http://www.alliottuae.com/en/newsmore.aspx?newsid=84 11/5/2012 09:30:17
Abu Dhabi: The total value of UAE’s foreign trade in the first half of 2012 touched Dh499 billion compared to Dh451.6 billion for the same period in 2011, recording an increase by Dh47.4 billion, up by 10.5 per cent , the National Bureau of Statistics (NBS) showed on Sunday.

The NBS said that the imports have also increased in H1 of 2012 to Dh321.4 billion compared to Dh286.3 billion for the same period of 2011, up by 12.3 per cent.

NBS figures showed that the national exports amounted to Dh77 billion in the first half of 2012 compared to Dh55.1 billion for the same period of 2011, up by 39.7 per cent and the re-exported commodities have increased to Dh100.5 billion during H1 of 2012 compared to Dh110.2 billion for the same period 2011, down by 8.8 per cent.

“About 30.2 per cent of the imported materials are heavy equipment and appliances at a cost of Dh97.1 billion,” NBS said, adding that re-exports sector witnessed tangible improvements in the last three years.

“Re-exports recorded Dh65 billion in 2009. In 2010, it increased to Dh95 billion; in 2011 it went up further to Dh110.2 billion and down to 100.5 billion in 2012,” NBS figures show.
The total non-oil foreign trade rose to Dh77 billion in the first half of 2012 compared to Dh55.1 billion in 2011, registering a 39.7 per cent increase, NBS said.

“Non-oil industries have started to increase steadily since 2009 when it was only Dh30 billion and in 2010 it rose to Dh40 billion. However, the figure increased further in 2011 to Dh50 and it went up further to Dh77 billion in 2012,” according to NBS.

Major trading partners

Non-Arab countries in Asia were the main trade partners of the UAE in the first half of 2012.

“Non-Arab Asian countries ranked first amongst UAE trade partners with traded commodities amounting to Dh230.4 billion, 46.2 per cent of the traded volume of commodities with the rest of the world,” NBS revealed.

NBS said: “The EU came second with a traded amount of Dh107.2 billion in H1, 2012, constituting 21.5 per cent of the UAE’s trade exchange with other blocs. The American countries came third with traded commodities worth Dh46.6 billion, recording 9.3 per cent, and the GCC came forth with Dh46 billion at a ratio of 9.2 per cent of the UAE foreign trade exchange with other countries.”

Dr Mohammad Amerah, chief economist at the Sharjah Chamber of Commerce and Industry, told Gulf News: “Such figures reflect that the county is following strong economic and strategic plans and is diversifying its economic activities compared to other countries which face recession and serious economic difficulties and hardships.”

“The growth of the UAE’s national industries and commercial services as well as stability have contributed to the confidence and trust of the investors to have businesses in the country and various trade exchanges with the UAE,” said Amerah.]]> <![CDATA[Solid Increase in UAE’s Non- Oil Private Sector Output]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=85 http://www.alliottuae.com/en/newsmore.aspx?newsid=85 11/6/2012 14:24:22
Container Terminal Jebel Ali free zone port in Dubai. Dubai: The UAE’s purchasing managers’ index (PMI), a composite indicator of the performance of the non-oil private sector recorded a level of 53.8 in in October, unchanged from the September level.

The index, compiled by HSBC Holdings and Markit Economics signalled a solid improvement in operating conditions during the latest survey period reflecting optimistic sentiment; output was up moderately, despite robust expansions in new orders.

At 53.8, unchanged from September, Output at UAE non-oil private sector firms increased at a solid rate during October. Moreover, the rate of growth was at a similar pace to September. The increased level of production was driven by marked growth of new orders. Anecdotal evidence linked the increase in incoming new work to greater demand, particularly in international markets.

“It’s another solid reading that shows the UAE economy continuing to perform well, despite the poor global environment. The strong new orders numbers are particularly encouraging as is the modest gain in employment. We have no breakdown between Dubai and Abu Dhabi in the data, but I suspect the former is outpacing the latter at present,” said Simon Williams, Chief Economist for Middle East & North Africa at HSBC.

Backlogs of work increased marginally during October, following a modest reduction in September. A number of panellsts attributed the rise of backlogged work to an increased volume of new business. Meanwhile, there was a further rise in employment levels at non-oil private sector firms in October. The rate of job creation was slightly faster than in September, quickening to a three-month high. Purchasing activity grew at the fastest rate since June, with a number of firms attributing this to higher production requirements. Stocks of purchases also increased during October. The rate of inventory accumulation was marginally faster than in September, but continued to be modest nonetheless.

“Total new orders continued to grow strongly last month, mainly on the back of improvement in demand from international markets. This was reflected in faster growth of new export orders, which expanded at the fastest rate since May 2011. As was the case in Saudi Arabia, we believe the improvement in external demand was likely within the GCC region,” Emirates NBD said in a note.

Suppliers’ delivery times improved further during October, although the rate of improvement was slightly down from that recorded in September. Survey respondents mentioned requests for faster delivery times had driven the improvement in vendor performance.

Overall input prices increased at a solid rate in October, with both purchase prices and staffing costs having risen since September. The greatest increase was for purchases, with average salaries rising only marginally over the month. The rate of job creation was slightly faster than in September, but remained modest overall. Nearly 9 per cent of respondents recorded an expansion of workforce numbers, with a number of firms attributing the higher staffing levels to greater production requirements.

Employment growth picked up in October, although the increase in staff costs was modest. Input prices rose again in October, but at a much slower rate than we have seen in previous months. Output prices rose more slowly than input prices, showing that producer margins remain under pressure.]]> <![CDATA[Abu Dhabi Targets Big increase in Oil Recovery]]> http://www.alliottuae.com/en/newsmore.aspx?newsid=86 http://www.alliottuae.com/en/newsmore.aspx?newsid=86 11/10/2012 10:47:48
Abu Dhabi wants to exploit its oil reservoirs to levels far beyond current recovery rates, an ambition that analysts say would give experienced western oil companies an edge over Asian newcomers in the run-up to concession renewals.

Oil

"The intention is to improve the recovery factor in Abu Dhabi to 70 per cent. This is our ultimate target," said Ali Al Jarwan, the chief executive of the Abu Dhabi Marine Operating Company (Adma-Opco), a state-controlled offshore producer.

The global average recovery rate lies at about 35 per cent, according to the Norwegian company Statoil.

Boosting the recovery levels of Abu Dhabi's depleting oilfields is a technical challenge that may exceed the capability of some of the companies vying for a stake in Abu Dhabi's oil sector.

"That is a very ambitious level," said Bill Farren-Price, the chief executive of Petroleum Policy Intelligence. "If they want to achieve that they would need to bring in some of the largest international oil companies, because it's going to involve the application of the leading enhanced oil recovery equipment."

He added that some of the less experienced companies, such as some of the national oil companies from Asia, may be ruled out.

Abu Dhabi National Oil Company (Adnoc) is preparing to renew its Adco onshore concession, which produces the bulk of the emirate's oil on land. The concession is up for renewal in 2014, and international oil companies are positioning themselves as viable future participants. Adnoc's current concession partners in Adco are BP, Shell, Total, ExxonMobil and Partex.

A preliminary list of companies eligible for the new concession includes the above stakeholders, minus BP and Partex, as well as Korea National OilCorporation(KNOC) and China National Petroleum Corporation (CNPC).

Due to a growing thirst for oil in their home countries, the Asian national oil companies (NOCs) are playing an increasingly active role in the region. Abu Dhabi and South Korea this year signed an agreement allowing KNOC to explore vast swaths of the emirate for new sources of oil, and China is in similar negotiations for CNPC.

But question marks remain over their technical ability to produce at depleting fields.

Some of the current Adco concession partners are already working hard to demonstrate their technical competence.

Exxon is a partner in the Upper Zakum Development Company (Zadco), the joint venture exploiting the giant offshore Upper Zakum oilfield. Zadco is the first Adnoc subsidiary to officially target a 70 per cent recovery rate.

France's Total has achieved recovery rates of above 50 per cent at the Abu Al Bukhoosh field, according to Gonzalo Dieste, a petroleum technologies adviser at the company.

Enhanced oil recovery- the methods used to boost recovery rates - has traditionally relied heavily on replacing the crude in reservoirs with natural gas. As Abu Dhabi is facing a shortage of gas, Adnoc is exploring other options, and has already tested the use of carbon dioxide (CO2) at its onshore oilfields.

Adma-Opco is also exploring the use of CO2 to increase recovery rates, said Mr Al Jarwan.

"There is research at Adma in how to do CO2 injection offshore. It is a feasibility study, it will develop later on into a pilot and then [go] full scale - but this is really long term," he said.

The concession operated by Adma-Opco - a joint venture by Adnoc, the United Kingdom's BP, France's Total and Japan's Jodco - will be relicensed in 2018.]]> <![CDATA[Dubai Sees Consumer Confidence Rising]]> http://alliottuae.com/en/newsmore.aspx?newsid=87 http://alliottuae.com/en/newsmore.aspx?newsid=87 11/11/2012 11:32:24
Dubai: Consumers and business owners in Dubai have stepped into the final quarter of 2012 with renewed confidence and a brighter outlook on jobs and spending, according to the quarterly Consumer Confidence Index (CCI) published by the Department of Economic Development.

Positive sentiment guiding consumer behaviour and planning was largely visible across Dubai during the July-September 2012 period. Overall consumer confidence recorded in Dubai during the third quarter was 129, well above the average of 100 and seven points higher than Q2 2012.

CCI recorded in the third quarter of 2012 is the highest since the corresponding quarter of the previous year. A growing confidence on personal finances is among the highlights of the third quarter index. Nearly 77 per cent of the consumers sounded positive on their current financial situation and 86 per cent have a brighter outlook for the next 12 months.

Consumer perceptions on Dubai’s economy has also shown remarkable improvement in Q3 2012 with 66 per cent people expressing positive sentiment on the current state of economy as against 55 per cent in the second quarter. Dubai’s economy is also set to improve in the next 12 months, according to 84 per cent of the respondents. Two-third of the consumers rated job prospects during the third quarter as very good even when job security and the state of the economy remained the topmost concerns for most of them. Business owners are more positive on jobs, thus giving job seekers stronger reasons for optimism.

“Consumer confidence is a clear indicator of the perceptions on the state of the economy and its key drivers. As recent surveys indicate, Dubai is witnessing rising confidence among consumers, which is clearly reflected on spending patterns and future planning,” said Sami Al Qamzi, Director General of DED.

The Consumer Confidence Index is based on responses to three questions regarding perceptions of local job prospects, personal finances and whether it is good to buy things that people need and want, all over the next 12 months. Responses vary from Excellent or Good to Not so good or Bad.

Conducted in each quarter, the survey gathers feedbacks from 2,000 respondents, equally divided between the four quarters of the year. The respondents are all Dubai residents and cover males and females as well as nationals and expatriates, in the 20 to 59 age group.

“The responses in the survey help understand where the local market is headed and to what extent consumers are willing to spend or save. As a result businesses and development planners are able to prepare well for the future and avoid negative market implications,” added Al Qamzi.

Consumer behaviour over the third quarter also shows a more prudent and careful approach. The percentage of consumers spending on holidays, outdoor entertainment, new technology products, home make-over or in paying off debts, including credit cards and loans, showed a decline compared to the second quarter. Meanwhile, four per cent more consumers started putting their money in to savings in the third quarter compared to the previous quarter.]]>