4 novembre 2008 Par La Rando

Dubai exports rise 43 per cent despite global credit crisis

Exports from Dubai so far this year have registered a 43 per cent increase compared to the same period last year, according to Hamad Buamim, Director-General, Dubai Chamber. Firms registered under the Chamber exported goods worth Dh193 billion until the end of October 2008 compared to Dh135 billion during the same period last year. Speaking during the release of ‘The Report: Dubai 2008’, published by the Oxford Business Group, Buamim said the effects of global slowdown will be visible during Dubai’s next year’s growth results and urged the businesses community to make use of the available opportunities. « We had a 43 per cent growth this year compared to last year. The number of Certificates of Origin issued until the end of October this year was 533,000 – a 15 per cent increase, compared to 463,000 during the same period last year, » said Buamim. « So I don’t think the financial crisis has had any impact so far. But we think the outlook for 2009 will have an impact. To be very honest the global financial crisis and the slowdown in the United States and Europe will definitely have an impact on us, as we are a global city and part of the global economy. But this impact will be minimal. The double-digit growth that we have been achieving for the last few years will reduce, » he added. A slide in the oil prices will also contribute to a partial slowdown, he said, adding: « Right now we are witnessing oil prices going down. Yet the average has managed to remain over $100 per barrel. Although this will have an impact, some of these prices are higher than what was even budgeted by several countries in the region. » A working group has been created to look into the impact of global economic crisis on the local economy. « The working group has been discussing the challenges ahead. We are still positive about the future. At one stage we looked at the projection for 2015 to find out if it will be affected in any way. But so far we believe that the plan will not be affected as the Dubai’s growth during last two years was even higher than what we planned for, » he added. « For the past ten days I have been attending several events and we are discussing these issues. Although nobody exactly knows the extent of impact on the local economy, people have been discussing about the opportunities that have arisen and made use of, » said Buamim. Firms such as DP World and Dubai holding could make use of the very attractive rates of investment overseas. « The whole of UAE and GCC has a lot of investments overseas. We believe that the fundamentals are still solid and it would not be such a bad idea to take advantage of attractive investment rates. » Joseph George business24-7.ae

4 novembre 2008 Par La Rando

Dubai Group to organise first World Pension Forum in region

More than 80 participants from the US, as well as government officials and senior executives of leading UAE companies will address the Middle East’s first World Pension Forum (WPF), which will be held in Dubai on from November 17. Organised by diversified financial services company Dubai Group, WPF hosts various conferences around the world to help US pension fund managers make knowledgeable investment decisions and allocate funds to potential investment destinations. Titled « Pearls of the Gulf », the forum will facilitate the development of long-term partnerships between the funds and the Middle East. The forum aims to offer insight into the new patterns of global trade and people flows, the expanded role of sovereign wealth, and the erection of first-class infrastructure. The event will also give UAE-based companies an opportunity to share their success stories. Soud Ba’alawy, Executive Chairman of Dubai Group, said: « Given the current scenario worldwide, this forum comes as a timely event and will offer key insights into our financial markets, particularly the role that this region is playing in the global economy. Organisations such as the World Pension Forum provide opportunities to foster long-term partnerships and open doors for business opportunities around the world. WPF pursues a shared vision with Dubai Group to bridge capital flows between the East and the West. » Philip Schaefer, President of the World Pension Forum, said: « We are thrilled to be bringing our delegation of institutional investors to the UAE for the first time. The region has shown what can be accomplished with dynamic, visionary leadership. We plan to return often. » Over the past few years, pension funds and other Western institutional investors have been eagerly exploring opportunities in the Middle East to capitalise on the region’s extraordinary growth story. In January 2008, The Economist reported that Morgan Stanley estimates pension funds worldwide hold more than $20 trillion (Dh70.4trn) in assets, the largest for any category of investor. business24-7.ae

4 novembre 2008 Par La Rando

Zurich and Abu Dhabi firm in takaful venture

Zurich Financial Services Group and the UAE-based Abu Dhabi National Takaful Company have signed an agreement to establish an Islamic insurance company in Dubai. The new insurance company, Zurich Takaful Company, will be based in Dubai International Financial Centre, subject to the receipt of the required regulatory approvals. Zurich will control 51 per cent in the new joint venture company, while the remaining 49 per cent stake will be owned by the Abu Dhabi company. Mario Greco, CEO of Zurich’s Global Life Business segment, said: « The launch of Zurich Takaful offers an exciting growth opportunity and is in line with Global Life’s strategy, while it also reinforces the group’s commitment to the Middle East and North Africa. The new company provides a partnership, blending global financial strength and experience with specialist takaful expertise through the union of two powerful brands to create a new force in takaful. » Khadem Al Qubaisi, Chairman of Takaful, said: « We are delighted to announce our new partnership with Zurich. The business will offer a tailored family takaful product range to meet the needs of our discerning consumers. This joint venture will enable takaful to participate in one of the fastest-growing business lines in the region and in the world, which is a key component in our regional expansion plans ». business24-7.ae

4 novembre 2008 Par La Rando

Etihad Airways to save Dh73m on fuel this year

Etihad Airways would be able to reduce its annual aviation fuel bill by Dh73 million ($20m) by the end of this year, owing to a series of cost-saving measures. The airline said yesterday it has so far saved more than Dh44m. The Abu Dhabi-based carrier, which launched a fuel hedging strategy in December 2006, saw it hedged at 70 per cent in 2007, 80 per cent in 2008 and 40 per cent next year. Now, with oil dropping to around $68 a barrel from its peak of $147 a few months ago, the airline says it still remains a wild card. « Whilst the oil price has fallen relative to its summer peak, it still remains a sizeable cost for all airlines and, of course, it is not a controllable cost such as headcount or capital expenditure, » James Hogan, Chief Executive of Etihad Airways, told Emirates Business. « The cost of oil, whatever the price, has a bearing on our business but the key point is that Etihad has to remain competitive in whichever market we operate. Pricing is an important element but as a full service carrier you need to look at all the aspects of our offering, » he added. The fuel bill fluctuates between 35 and 40 per cent of Etihad’s operating cost, which is a huge leap on the 20 per cent it cost back in 2006, according to Hogan. When asked how the airline was managing to raise finance for new aircraft and route expansions at a time when the credit market is drying up across the globe, Hogan said: « We have just had an Airbus A340-600 delivered and another one is set to join the fleet in December. We financed the debt for the two planes in the market and we were fortunate that the rates agreed were set before the September slump in the financial sector. » Clearly, the global financial turmoil has not deterred Etihad from revisiting its orderbook. « The orderbook is unchanged with the first aircraft of our deal announced at the Farnborough air show in July set to join the fleet in 2012, » said Hogan. He said similarly the airline is moving ahead with its route expansion starting off next month with flights from Abu Dhabi to both Moscow and Almaty in Kazakhstan. And March 2009 will see Etihad begin non-stop services to Melbourne and Lagos. Etihad had said recently that going forward the carrier may be looking for possible equity partnerships in order to face the international financial crisis. « In terms of possible equity partnerships my focus right now is on the core business and every day I look in microscopic detail for any blip in any market that might be feeling the squeeze, » said Hogan. He said the airline’s passenger and yield numbers look good for November, December and January. « But there is no complacency here. All markets are tough and we must remain competitive and keep a tight rein on controllable costs. » The airline said besides hedging strategy, fuel savings have been achieved through a variety of measures that include reducing weight on board, changing certain operating procedures and reducing cruise speed where appropriate. Shweta Jain business24-7.ae

4 novembre 2008 Par La Rando

UAE oil output 2.3 mln bpd after cut

The United Arab Emirates is pumping around 2.3 million barrels per day (bpd) of oil, down from 2.5 million, after cutting output in line with an OPEC decision and shutting some wells for maintenance, a state oil company official said. « Now we’re producing around 2.3 million bpd, » Abu Dhabi National Oil Company (ADNOC) deputy chief executive Abdulla Al-Suweidi told reporters at an energy conference in Abu Dhabi on Tuesday. « Before Opec, we were producing around 2.5 million. Production is also reduced due to maintenance. » Around 150,000 bpd of oil output was off-line for scheduled work at offshore fields, he said, adding that it would come back by the end of November. The world’s fifth-largest oil exporter planned to cut oil output by 150,000 to 200,000 barrels a day for 40 days in October and November for maintenance, an ADNOC official had told Reuters earlier this year. The Opec member pumped around 2.5 million bpd in October, a Reuters survey showed. [nL3648048] On Monday, UAE Oil Minister Mohammed al-Hamli said the country had kept its pledge to cut oil supplies in line with its Opec commitments, and had started reducing production along with other OPEC members. The country would cut by 134,000 bpd, in line with the group’s decision on October 24. The UAE’s current oil production capacity stood at 2.8 million bpd, Suweidi said. The country would take another 10 years to boost its oil capacity to 3.5 million bpd, Suweidi said. It had previously targeted 3.5 million bpd by 2012. Suweidi gave no reason for the delay but said that most of the 3.5 million bpd production capacity would be on-line by 2015. « We are going ahead with projects as planned, but whenever we can wait we will wait (because of high costs). Our plans are not affected by changes in the oil price. » ADNOC was pumping around 5 to 6 billion cubic feet per day of natural gas, he said. A new project to boost production by one billion cubic feet per day would be completed in 2013 to 2014, he said. The plan is known as the Integrated Gas Development Project. The Organization of the Petroleum Exporting Countries agreed at an emergency meeting last month to cut output by 1.5 million bpd, or about 5 per cent, starting from November, to stop a plunge in oil prices that have more than halved since July and lost 32 per cent in October alone. ADNOC notified term customers last week it would cut its contracted volumes for its main export grades by 5 to 15 per cent in December, and cut its Upper Zakum crude by 5 per cent starting from November. Reuters

3 novembre 2008 Par La Rando

UAE sees good investment opportunity in US

The UAE is eager to boost investment in the United States and sees good opportunities as the global financial crisis has cut the price of many companies, Foreign Trade Minister Sheikha Lubna bint Khalid Al Qasimi said in an interview. « A lot of these are great companies. There is nothing wrong with these companies… They have good returns, » Lubna said. « There would be no better time than now to actually take stock of some great investment opportunities and acquisitions of companies at a fraction of what they were worth months back, » she said. « Sometimes, people look at these like they are hard times. But for some people it’s an opportunity. » She was echoing comments that Sultan Ahmed bin Sulayem, Chairman of the Dubai Government-owned investor Dubai World, made on Thursday. « Today there are things in the market worth a fraction of what they should be worth, » Sulayem said. Dubai World’s assets include Dubai Ports World, which was at the centre of a political firestorm two years ago when US lawmakers discovered the Arab company had acquired US port operations as part of its purchase of British company P&O. To calm the furore, DPW sold the port assets to American International Group, the insurance giant which went to the brink of collapse this year and is now nearly 80 per cent US Government owned. The US Federal Reserve stepped in last month to rescue the insurer with an $85 billion (Dh312bn) credit facility and subsequently provided an additional $37.8 bn. « So, who now actually owns the port operations in New York, New Jersey, Philadelphia, Baltimore, New Orleans and Miami? Send me an email when you know, » she said with a smile. The UAE has no hard feelings over the controversy, which at least « made us famous », she said. « For us, it was a business deal that went wrong because of the political climate at the time, » she said. Agencies

3 novembre 2008 Par La Rando

Dubai apartments selling for 20% more

Sales prices of apartments in Dubai rose 20 per cent as rentals registered a marginal jump of four per cent in the third quarter of 2008 compared to the previous quarter, according to a report. Unit prices in Discovery Gardens registered a growth of 39 per cent, while International City rose 31 per cent due to limited new supply and good development progress being made. Both developments benefited from considerably low launch prices, which made the units affordable and attractive to investors and owner-occupiers, Asteco, a Dubai-based property management company, said in a third-quarter report on Dubai property market. Apartment prices in Business Bay and Dubailand increased by 29 per cent with Uptown MotorCity nearing completion in the latter master development. Speaking to Emirates Business, Asteco Managing Director Andrew Chambers said there is still demand for residential properties in Dubai but investors are taking a more cautious approach. “The supply and demand gap still exits in the emirate, however, buyers are taking their own time in making decisions,” he said. Meanwhile, overall apartment rental rates rose by four per cent compared to the last quarter. International City and Jumeirah Lake Towers recorded increases of 13 and 11 per cent respectively, due to their affordability level. “Generally, rental rates are stabilising as more supply enters the market, especially at the high-end sector. However, there is still room for growth in the low- to medium-segment because of high demand, little availability and limited supply in the short-medium term,” the report said. Sale prices of villas also rose by 24 per cent over the last quarter. Although the demand-supply gap narrowed over the last couple of years, Asteco said there was high preference for villas and townhouses. Villa prices in Downtown Burj Dubai registered an increase of 61 per cent. Prices in The Palm Jumeirah, The Palm Jebel Ali and Emirates Hills jumped 42, 39 and 35 per cent respectively, as they attracted interest high net-worth individuals who are immune to the current global financial situation. The Meadows witnessed an increase of 38 per cent as a result of little movement of tenants, no additional supply and villas being traded as a finished product, consequently commanding a higher premium. However, villa rental rates continued to rise but at a slower rate of 11 per cent, compared to the previous quarter. The villa rental market has begun to stabilise as more people opt to buy villas or townhouses due to high rents. Additional units are being handed over in The Palm Jumeirah, Al Barsha and Arabian Ranches. The highest increase was reported in Downtown Burj Dubai with 25 per cent. This is attributed to limited supply of villas in the area. Office rental rates increase Office rental rates rose 10 per cent quarter-on-quarter as Deira reported a 40-per cent growth due to its proximity to the Dubai metro, high demand from banks and little availability. Several banks, which have recently rented office space in Deira, are confident the area will continue to boom due to RTA’s plans to provide better connectivity for future metro users, consequently solving traffic congestion and parking issues, Asteco said. Rents in Dubai Investment Park, a development predominantly attracting back office operations, have increased by 11 per cent due to recent handovers of office space and comparatively affordable rates. While there is still a shortage of office space, rents are expected to reach equilibrium by 2009/2010 as more supply enters the market. Sales prices in office market rose 17 per cent over the previous quarter due to several projects nearing completion or in the process of being handed over. Dubai Silicon Oasis and Downtown Jebel Ali lead with a 33-per cent growth over the last three months. In general, office sales prices in Dubai range from Dh1,100 to Dh8,000 per sqft and average at Dh2,500. Parag Deulgaonkar business24-7.ae

1 novembre 2008 Par La Rando

DSI becomes a member of Build Safe Dubai

Drake & Scull International (DSI), a service provider of mechanical, electrical and plumbing contracting and civil contracting in the UAE, became the latest company to join Build Safe Dubai (BSD) as part of its ongoing commitment to maintaining the highest standards of health, safety and welfare. BSD is a not-for-profit organisation with members in the construction industry who share a common cause with regard to workers’ welfare and safety. Earlier this month, DSI also joined the Emirates Green Building Council (EGBC) – a not-for-profit organisation with the goal of advancing green building principles for protecting environment and ensuring sustainability in the Emirates. BSD aims to promote an agreed minimum of health and safety standards for the benefit of all workers in the construction industry in Dubai and the UAE. It seeks to communicate best practices and the importance of construction safety to all project stakeholders. Khaldoun Rachid Tabari, Vice-Chairman and CEO of DSI, said: « Since the inception of DSI in the UAE in 1966, implementing the highest standards of health, safety and welfare has always been an important management responsibility that is on a par with production and profitability. This commitment enabled us to complete more than 27 million man-hours on our on-going projects without one serious injury or fatality. » Among DSI’s projects are the construction and maintenance of the district cooling plant and network at Jumeirah Beach Residence, the Dubai Festival City, Saudi Iron and Steel Company – Hadeed, and more around the GCC. The company has experienced strong growth in recent years. In fact, in 2007 revenues increased by 16.7 per cent from the previous year and the company saw an increase of 38.1 per cent in gross profits compared to the previous year. Year-on-year growth in net profits, excluding the minority share, is 37.6 per cent. business24-7.ae

1 novembre 2008 Par La Rando

Kuwait Bank will buy equity in Gulf Bank

Kuwait Government agreed to buy an equity stake in Gulf Bank, the country’s second-largest lender by assets, after the bank announced unspecified losses from derivative trading last week, Kuwait news agency Kuna reported, citing Finance Minister Mustafa Al Shimali. The government, which already guaranteed customers’ deposits with the bank, will « contribute to the bank’s capital » if shareholders don’t fully provide necessary cover, the public sector news agency quoted Al Shimali as saying late yesterday. The measure is aimed at supporting the financial position of the bank and maintain its credit rating, Al Shimali said. Gulf Bank is considering a capital increase or even a merger to shore up its business. The central bank has appointed a treasury supervisor for Kuwait’s fifth-largest bank by market value and guaranteed deposits, as the global financial turmoil spilled over into the oil exporting region. Gulf Bank, which has posted two straight quarterly profit declines, also said Chairman Bassam Al Ghanim has resigned and been replaced by his brother Kutayba Al Ghanim. The new chairman declined to say how much the bank had lost from the euro derivatives deals, but told reporters it had stopped all such dealings. « The bank plans to continue [business] as normal… we have more liquidity than we need… to cover everybody without the central bank’s guarantees, » he said. He said Gulf Bank, which is active only in Kuwait, might increase its capital or seek support from its major shareholders. Ghanim said Gulf Bank might even consider a merger. « I am willing to look at every offer and every possibility that would make the banking system stronger in Kuwait, » Ghanim said, adding that there were no current talks. Asked whether a merger with local market leader National Bank of Kuwait (NBK) was possible, he said: « If NBK wants to merge with us, that’s news to me. But it’s good news. I would not reject that. » Banks across the Gulf have been hit by the global credit crunch, hampering their ability to finance multi-billion-dollar infrastructure and industry projects launched during the oil-fuelled economic boom. Gulf Bank said board member Abdul-Kareem Al Saeed had also resigned. Kuwait’s parliament yesterday voted in favour of a law guaranteeing bank deposits in all local and foreign banks operating in the emirate. Lawmakers voted 50 to seven in favour of the law, which will guarantee the approximately 23 billion dinars (Dh315.6bn) of deposits, said Mohammed Al Saqer, a member of Kuwait’s elected assembly. Agencies

31 octobre 2008 Par La Rando

The beauty of Ras Al Khaimah tourism drive

Ras Al Khaimah is promoting itself as an authentic and nature-oriented destination among German-speaking tourists and has found a novel route to do so by offering to host a Miss Germany 2009 Camp from January 28 to February 7. The finals will be held in Germany on February 14. « Our main focus is to raise the profile of Ras Al Khaimah as a destination within the UAE across German and German-speaking markets and by doing this we anticipate the numbers of visitors will rise, » said Hilary McCormack, manager of RAK Tourism. « German tourists love nature and the Arabian culture and Ras Al Khaimah has a lot to offer. » McCormack said 40 per cent of RAK’s visitors came from German-speaking areas. There were 65,000 tourists in 2007 and she expects a consecutive 20 per cent growth rate in their number for 2008 and 2009. « Having Miss Germany here, who has visited Ras Al Khaimah and the UAE before, will give a boost to the already emerging tourism market that the emirate can offer, » said McCormack. « RAK Investment Authority (Rakia) and RAK Tourism learnt that Miss Germany Corporation were looking for a destination in the UAE that had something new like the Hamra Fort, » said McCormack. She said German-speaking companies are finding promising business opportunities in Ras Al Khaimah. There are 20 registered German companies that operate in in the emirate mainly in manufacturing, paints and boat interior design. More will be expected, » said Serge H Guillaume, Rakia Executive Director. Rakia also expects to attract companies from European countries such as Spain and Italy. « Such activities promote tourism, but this also gives opportunity for expanding business and industries, » said Guillaume. « The person who represents the Miss Germany Corporation had been to Ras Al Khaimah a number of times. He knew the emirate and sold the idea to his colleagues in Germany and communications started between us and them. » Ralf Klemmer, director of Miss Germany Corporation, said they were excited and eager as « we are to enjoy the hospitality, warmth and the natural authentic beauty » of Ras Al Khaimah. « I came several times to RAK and realised this place has much authentic and natural potential and opportunities in promoting business and tourism, » said Ingo Dubinski, General Manager of Berlin-based Crown Production Company. The beauty camp in Ras Al Khaimah will have 23 participants that include Miss Germany 2008 Kim Voigt and 22 finalists that Miss Germany Corporation selects by organising 250 events across the country. « Beside the current Miss Germany, the other 22 ladies are selected from 16 districts, five regions and two companies’ winners, » said Ines Kuba, Miss Germany 1992. Beside the 23 ladies, the camp will have 37 staff of doctors, security and major TV stations to cover the camp for German media. The Miss Germany Camp takes place in a different country as a preparation for the competition in Germany. It was done in Egypt, Spain, but this time in Ras Al Khaimah in the UAE where German-speaking people will get to know about this place in the media specially it has nature, sun with authenticity, » added Kuba. « This is not my first time to RAK and the last time I was here was in August, » said Miss Germany 2008 Kim-Valerie Voigt. « We will be doing the whole camp in RAK prior to the finals. The event will be circulated in the German media where people from my country will get to know this place better. » The UAE is the second Arab country Voigt visits after Egypt. Voigt, who is from the northern German city of Hanover, spent six months in a school in the state of Indiana in the US. She kept the door open for possibilities to work one day in the UAE, « but I have to finish my university studies, then I may study something in business management. I do not know yet. Let’s see, » she added. Rami Eljundi business24-7.ae