Category: Economy

|By Arabian Post Staff|Foreign direct investment (FDI) inflows to West African countries increased 12% to $11.4 billion in 2016, supported by recovering investment in Nigeria, an analysis conducted by the Dubai Chamber of Commerce and Industry revealed. The analysis, based on data from United Nations Conference on Trade and Development (UNCTAD), was released by the Chamber as it prepares to host the 4th Global Business Forum on Africa in Dubai on November 1st-2nd, 2017. According to the data, FDI inflows into

|By Arabian Post Staff|New solutions to meet future needs and diversify the options are being integrated into the the e-Dirham system, top officials involved in the development of a national alternative to cash payment for government services in the UAE indicated. Government revenues from the e-Dirham system during the first nine months of this year stood at AED 5.8 billion. The number of e-Dirham transactions rose by 20 per cent year on year, to reach 15 million transactions during the first

|By Arabian Post Staff| The generations of Millennials, meaning people between the ages of 19 and 35, as well as Centennials, denoting young people aged up to 18, will most probably end up poorer than their parents and grand parents, a Bank of America-Merrill Lynch report titled Thematic Investing: The New Kids on the Block has predicted.Gen Y ("Millennials", 19-35Y) and Gen Z ("Centennials", 0-18Y) are the world's most important demographics, collectively accounting for 59% of the global population. There

/by Arabian Post Staff/The global growth of asset management stalled as the industry in 2015 recorded its worst year since the 2008 financial crisis, according to a report by The Boston Consulting Group (BCG). Growth in assets under management (AuM) stalled—or in the case of the Middle East declined 10%—and net new flows of assets, revenue growth, and revenue margins all dipped lower in 2015, according to Global Asset Management 2016: Doubling Down on Data. BCG’s fourteenth annual benchmark report on

JPMorgan Chase & Co. and Michael Klein, the former Citigroup Inc. investment banker who runs his own boutique, have been selected to advise on state-owned Saudi Arabian Oil Co.’s initial public offering, according to people familiar with the matter.Klein is providing strategic advice to the government, while JPMorgan is working on preparations for the IPO and may be among the banks that underwrite the listing, the people said, asking not to be named as the details aren’t public. The deliberations

|By Arabian Post Staff| Emaar Properties’ botched Indian experiment seems to have come the full circle. The Dubai property giant is planning to end its perennially trouble-hit relationship with its Indian joint venture partner MGM Developments.The troubles of the joint venture named  Emaar MGF Land Limited included a failed stock market flotation and delays to many of its projects.The demerger will "enable Emaar to implement focused strategy for its real estate business in India and will allow the business to

|Arabian Post Staff| Dubai Group, a member of the Dubai Holding,  has hired Emirates NBD to help find a buyer for its stake in investment bank Shuaa Capital, Bloomberg reported quoting two people familiar with the matter.The sale process is at an early stage and may not result in a deal, Bloomberg quoted the sources as saying.  But the sources were not identified as the talks are private. Dubai Group holds a 48 percent stake in Shuaa worth about $100 million,

|By Arabian Post Staff| Diamonds are losing their allure and prices are dropping below the levels that prevailed a decade ago.  And diamond’s loss is mostly the gain of vacations, fancy handbags and high-tech gadgets.Diamonds are now cheaper than they were in 2006, says a Bloomberg report quoting data from PolishedPrices.com. Over the same period, the price of luxury items like cars, shoes and fine foods have risen at above-inflation rates, according to a Forbes index.Demand for luxury jewelry rose just 1.9

Russia’s oil output set a post-Soviet high in March as the success of a proposed crude production freeze between OPEC members and other major producers appeared to be in doubt.Russian production of crude and a light oil called condensate climbed 2.1 percent in March from a year earlier to 10.912 million barrels a day, according to the Energy Ministry’s CDU-TEK unit. That narrowly beat the previous high of 10.910 million barrels in January.With most of the Organization of Petroleum Exporting Countries

|By Arabian Post Staff| Dubai-based Al Shafar General Contracting (ASGC) plans to revive its stalled IPO plan at an appropriate time, according to chief executive Bishoy Azmy.Al Shafar had made significant progress with its planned IPO last year, but the plan was put on hold in the wake of the market turning bad following the trouble in the global stock markets over problems with the Chinese economy.  The company had been working with Goldman Sachs, EFG Hermes and Emirates NBD for the IPO.Azmy

|By Arabian Post Staff|The impact of the massive decline in oil prices has finally reached the door steps of the banking industry and some banks have been affected more than the others.According to a new study by The Boston Consulting Group (BCG), the banking industry in the GCC grew at a lower rate in 2015 than it did in 2014 with just a 7.2 percent increase, stemming almost exclusively from major customer segments such as retail and corporate banking.The study

|By Arabian Post Staff|DP World’s gross debt rose to $7.6 billion, with the net debt climbing to $6.2 billion, the company announced in its financial results for the calendar year 2015. The balance sheet shows a leverage of 3.2 times.The increase in debt is mainly due to the addition of the $650 million JAFZA Sukuk following the EZW acquisition and the additional $500 million borrowings from the GMTN programme and $500 million draw down of the term loan.But overall, the

|By Arabian Post Staff| A sudden spurt in the number of new project announcements despite the weakening sentiments and a clear downturn in property prices is stoking fears of a 2008-style default revisiting the Dubai property market.The phase has even seen the revival of some of the grandiose schemes announced during the peak of the boom period, but got abandoned later as the crisis began to bite.Analysts say that the frequency of new announcements betrays a certain sense of desperation

|By Arabian Post Staff|  The benefits of this prolonged period of very low oil prices are diminishing for some corporate finance sectors or even starting to have a negative impact on others, Moody's Investors Service said in a report.The exploration & production, oilfield services, building materials and steel industries continue to bear the immediate effects of low oil prices. The global oversupply, combined with additional exports coming from Iran and OPEC countries producing at capacity, has led to a fundamental

|By Arabian Post Staff| The route to implementing a corporate income tax in the UAE would appear to be more treacherous and uncertain than the road to VAT, which the government has planned for a 2018 launch. Deloitte said in a report.UAE, along with other GCC governments are thinking seriously about broadening the corporate income tax bases and increasing rates. But Deloitte points out that the potential economic downsides associated with an increase in tax could very well outweigh the

|By Arabian Post Staff| Pakistanis are the third largest non-Arab expatriate group investing in Dubai real estate, according to the Dubai Land Department (DLD).Pakistanis invested AED 8 billion in Dubai properties in 2015, out of the total investment from non-Arab expats surpassing AED 74 billion. Compared to 2014, their investment in the Dubai property market increased 6.7 per cent in 2015.With an investment of AED 30.64 billion in the last five years, Pakistanis are considered among the top three investors in

|By Arabian Post Staff| Moody’s has placed United Arab Emirates, along with Abu Dhabi emirate,  under review for a possible downgrade. The action was also applied to all GCC countries, including Kuwait and Saudi Arabia.Abu Dhabi's (Aa2 stable) economic growth could come under pressure this year amid government spending cutbacks in response to lower oil prices,  Moody's Investors Service said in a report.Moody's estimates that the emirate's real GDP growth will slow to 3.1% in 2016 compared to 3.4% in

|By K Raveendran| With the VAT announcement already having been made, the next landmark decision business circles are keenly watching out for is the establishment of the UAE Federal Tax Authority.The new authority or department is expected to be entrusted with the task of implementing and collecting various taxes, including the proposed corporate taxes.In June last year, the Ministry of Finance (MOF) had outlined in a report the move for the establishment of a tax system in the UAE.The corporate

|By Arabian Post Staff| The need to part-finance funding gaps by the GCC countries through sovereign US dollar debt will complicate their efforts to refinance the bonds and loans maturing this year and the next, HSBC warned in a report on the GCC finances.Some $94 billion in foreign currency denominated bonds and syndicated loans by GCC countries are maturing this year or the next year, which means these must either be repaid or rolled over, HSBC said in. The Gulf

|By Arabian Post Staff| Investment Corporation of Dubai is seeking to raise over a billion dollars for its real estate projects, people familiar with the move have been reported as saying. The banks being approached apparently include Emirates NBD, Dubai Islamic Bank and Abu Dhabi Commercial Bank.The projects are said to include a new Atlantis resort Palm Jumeirah island and a new tower at the DIFC. According to reports, ICD, which acquired the Atlantis from Dubai World two years ago,

|By K Raveendran| A clear assessment of the impact of the introduction of value added tax (VAT) in the UAE is not available yet, but it is fairly clear that it will have serious adverse results for the retail industry, which is already suffering a dip in demand.Minister of State for Financial Affairs Obaid Humaid Al Tayer announced the other day after a joint press conference with IMF Managing Director Christine Lagarde that the UAE will implement VAT at the

|By Arabian Post Staff| L&T Financial Services , a subsidiary of L&T Capital Markets Limited (LTCML), has upgraded its DIFC licence to launch wealth management services. The firm has so far been operating as a representative office.The Dubai Financial Services Authority (DFSA) has now upgraded to Category 4 whereby, LTCML, DIFC Branch will be regulated by DFSA to offer Wealth Management Solutions. The company will now arrange deals in credit and investments, provide advice on financial products and services, including

/By Arabian Post Staff/ Despite the recent price bounce in oil, turmoil in the sector may be far from over, Bank of America Merrill Lynch said in a report. Defaults are rising across smaller oil and gas producers and risks are rising for larger ones too, it said.Total energy debt in default has now reached $18 billion, suggesting the credit cycle will mark a floor on oil prices. At present, the largest 25 US oil producers, comprising 4.1 million b/d,

/By Arabian Post Staff/ Emirates National Oil Company (ENOC) plans to increase its retail business by 40 per cent between 2016 and 2020 across its network of service stations in the UAE.The growth plans include the construction of 54 more stations in Dubai. The expansion will meet ENOC’s long-term strategic objectives which are aligned with the Dubai Plan 2021 of creating a ‘Smart & Sustainable City’ for ‘Happy, Creative & Empowered People’.The renovated service stations will ensure safety, easier entry

|By Arabian Post Staff| Ajman-based Tech Group, comprising a number of construction verticals, announced an investment of $100 million for the next three years, in what the company declares as an endorsement of the positive outlook for the country’s construction industry.Piling Tech, one of the group companies specializing in foundation engineering, design engineering and boring and driven piling systems, has acquired a new set of Soilmec SR-60 Evolution piling rigs.Group CEO Shiraz Hasan said the company would spend AED 370

|By K Raveendran| Going by the pace at which machinery automation is advancing, the day does not appear to be a long way off when self-working machines carry out complicated and high-skilled operations without manual intervention.The Win Eurasia Metal Working Fair in Istanbul held during 11-14 February provided clear insights into the evolving trends in this area and the rapid strides Turkish machinery manufacturing industry is making in this regard.[embed]https://youtu.be/uxzQV0IRjqo[/embed]Turkey is the sixth largest manufacturer of machinery in Europe and

HSBC Holdings cut its price estimates for Dubai developer Emaar Properties and peers including Damac Properties Dubai Co., predicting falling revenue and declining property prices in the United Arab Emirates.Emaar’s price estimate was slashed 26 percent to 8.5 dirhams, while Damac’s is 8 percent lower at 3.4 dirhams, HSBC said in a note on Thursday. The bank also lowered its target for Aldar Properties to 3.5 dirhams from 3.9 dirhams.“U.A.E. developers have performed poorly, reflecting concerns over the macro environment

Emirates Telecommunications Group Co is suing Nigeria competitor MTN Group Ltd. over plans by Africa’s biggest wireless company to buy local Internet provider Visafone Communications Ltd.The lawsuit centers on MTN’s potential use of Visafone’s 800 megahertz of spectrum, Abu Dhabi-based Etisalat’s Nigeria unit said in an e-mailed statement on Monday. “Not to challenge will entrench the dominance of MTN in the data services market,” the company said.MTN Nigeria has been served with court papers and the phone company was in

Oil bulls distressed that last week’s rally fizzled can find some comfort in forecasts for a bigger and longer rebound by the end of the year.Analysts are projecting prices will climb more than $15 by the end of 2016. New York crude will reach $46 a barrel during the fourth quarter, while Brent in London will trade at $48 in the same period, the median of 17 estimates compiled by Bloomberg this year show. A global surplus that fueled oil’s

|By Arabian Post Staff| The low oil prices are likely to dampen the impact of Iran deal for Dubai, although the emirate will be the main beneficiary in the region from the opening up of Iran’s domestic market, Bank of America-Merrill Lynch said in its latest report.“We still think that normalized external financing flows and macro reforms in Iran will be required to support sustainably higher import demand from Iran as its external accounts come under pressure of low oil

The slump in the price of gold has brought investors all over the world closer to their much-loved asset. As gold, a known haven asset, became comparatively cheap in 2015, central banks showed a keen interest.Increased volatility in the world markets has caused the central banks to invest their money in haven assets. Central banks as a whole have added 175 tons of gold to their official reserves.The Chinese and Russian central banks have been stashing gold in the past year. According to reports by the

The global oversupply of crude will decline this year even after Iran adds an expected 500,000 barrels a day in oil output, United Arab Emirates Energy Minister Suhail Al Mazrouei said.Oil prices are fluctuating on speculation about the potential impact of more Iranian crude entering the market this year after the lifting of economic sanctions, Al Mazrouei said on his Twitter account. Iran has pledged to boost output by 500,000 barrels a day immediately after the sanctions are removed and by

Drivers in the U.S. oil hub of Houston can fill their tanks for less than the cost in Abu Dhabi and Dubai for the first time since 2008 as falling crude prices push Middle East exporters to cut government fuel subsidies.The price of the cheapest grade in the United Arab Emirates, of which Abu Dhabi is the capital, is 1.51 dirhams per liter ($1.55 a gallon) for January, according to the country’s Ministry of Energy. That compares with $1.32 a gallon

Saudi Arabia may further ease restrictions on foreign ownership in the economy and overhaul one of the world’s most restrictive visa systems as the kingdom seeks to draw investors to help reduce its reliance on oil exports.The world’s biggest oil exporter is considering allowing foreigners to own 100 percent of a company in at least four more industries, Mohanud Helal, secretary general of the Economic Cities Authority, said in an interview in Riyadh. Retail and wholesale will be opened fully,