Category: Economy

DP World's long-serving chief executive Mohammed Sharaf has retired with immediate effect, the Dubai-based port operator said on Wednesday.Sharaf had been CEO for 11 years and worked for the company for 23 years, a statement to the Nasdaq Dubai bourse said.DP World's chairman Sultan bin Sulayem will carry out the CEO's duties on interim basis, it said.The company has a portfolio of more than 65 marine terminals across six continents, according to its website.DP World's market capitalisation is $14.3 billion,

Pressured by plunging oil prices and costly wars in the Middle East, Saudi Arabia moved to stamp out speculation that it might be forced to break the link between its currency and the dollar.Authorities this week ordered banks to limit traders’ ability to bet against against the riyal, whose peg to the dollar has been a bulwark of the kingdom’s economic and financial stability since its introduction three decades ago.Officials aimed “to kill this speculative activity over the sustainability of

Gulf Arabs could pull billions in investment money from the United States if Donald Trump wins the presidency later this year, billionaire UAE businessman Khalaf Al Habtoor told Reuters.Trump, front-runner to be the Republican presidential candidate, triggered outrage around the world when he advocated a temporary ban on Muslims entering the United States.The United States "will lose their businesses, people will cancel any plans of investment there, I am sure of that," said Habtoor, the head of United Arab Emirates-based

|By Arabian Post Staff| A leading player in the Dubai real estate market has predicted a correction in the rental market at a rate faster than expected in 2016 as thousands of new apartments and villas enter the new supplies.Real estate consultancy JLL predicted that average housing rents in the city would continue to fall by as much as 10 per cent over the coming 12 months. Asteco estimates that 12,000 apartments and 2,000 villas will be completed this year.According

|By Arabian Post Staff| The decline in investor sentiment driven by lower oil prices and a slowdown in government spending, as well as regional geopolitical unrest have affected the UAE’s residential market, real estate investment and advisory firm JLL said in its annual review for 2015.The gaining strength of the dollar, which is making UAE real estate more expensive for overseas investors, also contributed to the problem.In Dubai, data from the Land Department reveals falls of 33% and 28% in

|By Arabian Post Staff| Heightening speculation about an impending change in Saudi Arabia’s currency policy has forced the kingdom’s monetary authorities to issue a clarification to the effect that no changes were being contemplated in Saudi riyal’s 30-year old dollar peg.It is the second time in the past four months that Saudi Arabia is pledging allegiance to the dollar after bets for a devaluation seemed to have hit the highest level in almost two decades.The Saudi Arabian Monetary Agency will

Saudi Arabia’s potential initial public offering of its state oil company could be the largest ever, a juicy target for any ambitious Wall Street bank. In a country traditionally cold to outsiders, only a few have the experience to win it.JPMorgan Chase & Co. and HSBC Holdings Plc are among international lenders in the best position to win a role if the kingdom goes ahead with an IPO of Saudi Arabian Oil Co., or Aramco, people familiar with the matter

|By Arabian Post Staff| The UAE’s non-oil private sector ended the year on a low note, with business conditions improving at the slowest rate in 40 months, the headline Emirates NBD UAE Purchasing Managers’  Index  for December  showed.A key factor weighing on the sector as a whole was relatively muted growth of new work – the pace of expansion was the weakest since August 2011. Output, employment and input buying also rose more slowly, while charges decreased as firms competed

|By Arabian Post Staff| Etihad Airways will replace the leased Jet Airways Boeing 777-300ER aircraft for its daily flight to and from San Francisco with its own Boeing 777-200LRs from April 25, 2016.The daily EY101 flight from Abu Dhabi to New York's JFK airport and the return EY100 service will also see leased Jet Airways Boeing 777-300ER aircraft replaced by Etihad Airways Boeing 777-300ERs from June 1, 2016.The second daily Etihad Airways service to and from New York JFK, EY103

Saudi Arabia’s currency peg is no longer sustainable amid a slump in oil prices that threatens to further crimp government financing, according to Commerzbank AG.The cost of buying 12-month dollar-riyal forwards has risen almost 1 percent since early December to about 3.83 per dollar, Commerzbank said in a report on Tuesday. Upward pressure on the forwards will probably increase over the “coming weeks and months,” it said. Saudi Arabia has pegged its currency to the dollar at 3.75 since 1986.“Markets clearly no

At almost any other time, an escalating diplomatic conflict between OPEC members Iran and Saudi Arabia would mean a spike in oil prices.That the rally this time couldn’t be sustained shows just how abnormal things are in the oil market. Brent crude has fallen 0.5 percent this week as a global supply glut and the slowest Chinese growth in a generation trumped mounting strife between the nations on either side of the world’s busiest waterway for oil tankers.“When oil supplies

|By Arabian Post Staff| Etihad Airways launched fresh legal action in a bid to overturn a German court's decision to revoke the approval for 29 of its codeshare flights with airberlin.Last week, the Administrative Court of Braunschweig decided that the German Ministry of Transport was entitled to reject the 29 Etihad Airways - airberlin codeshares, which had been approved only until 15 January 2016.As the notice of appeal was filed in the higher administrative court in Lüneburg today, Etihad Airways

Oil gained for a second day as Saudi Arabia cut ties with Iran a day after its embassy in Tehran was attacked to protest the Saudis’ execution of a prominent Shiite cleric.Futures rose as much as 3.5 percent in New York, extending Thursday’s 1.2 percent advance. Iran’s Supreme Leader Ayatollah Ali Khamenei warned of repercussions and protesters armed with rocks and firebombs attacked the Saudi embassy in Tehran on Saturday and set parts of the building on fire. The Middle

A blaze that engulfed a Dubai skyscraper on New Year's Eve - the emirate's third high-rise fire in three years - has raised fresh questions about the safety of materials used on the exteriors of tall buildings across the wealthy region.Hundreds of gleaming towers rose up in Gulf Arab states, especially the United Arab Emirates and Qatar, during the past decade's economic boom. Ultra-modern, flamboyant designs often involved heavy use of cladding - layers fixed to the outside of buildings

|By K Raveendran| Given Dubai’s fame as one of the most happening cities of the world, the international media attention to the New Year-eve fire at the Address Hotel was quite natural. At the same time, it did not escape the attention of the discerning that some sections of the media lost no opportunity to use the unfortunate incident to show things in a rather poor light.But overall the Dubai Establishment has won admiration from all around for the manner

Emirates Global Aluminium (Emal) a joint venture between Abu Dhabi and Dubai, is said to be paying almost 40 percent more for a loan compared with last year as liquidity in the Gulf tightens after the plunge in oil prices.The state-controlled company will pay 200 basis points, or 2 percentage points, above the London Interbank Offered Rate on a $4.9 billion, seven-year conventional loan and an Islamic facility, according to three people with knowledge of the plan, who asked not

|By Arabian Post Staff| Buoyed by sharp fall in gold prices globally, India is likely to see a jump of 11 per cent in imports of the metal to 1,000 tonnes this year, according to the All India Gems and Jewellery Trade Federation. The world’s second-biggest gold consumer imported around 900 tonnes in 2014. “Gold import is estimated at around 1,000 tonnes in 2015 calendar year, compared to around 900 tonnes last year. Imports are likely to increase because of low

|By Arabian Post Staff| A new study from IFC, a member of the World Bank Group, has found that external risks, security concerns, and over-indebtedness are perceived as the most serious challenges facing the microfinance sector in the Arab World.The survey, conducted in conjunction with Sanabel, the Microfinance Network of Arab Countries, said tackling those problems will be key to spurring the development of the industry. Microfinance, long considered an important tool in the fight against poverty, has grown at

Oil declined to the lowest level since 2008 in London amid estimates that OPEC’s decision to scrap production limits will keep the market oversupplied.Brent futures capped the biggest weekly decline in more than a year. The global surplus will persist at least until late 2016 as demand growth slows and the Organization of Petroleum Exporting Countries shows “renewed determination” to maximize production, the International Energy Agency said Friday. The group chose not to curb output at its Dec. 4 meeting.Oil prices have slumped

The Dubai Gold & Commodities Exchange is introducing a spot gold contract next week before trading begins in 2016.The contract will cover 1 kilogram and be traded in U.S. dollars, DGCX Chief Executive Officer Gaurang Desai said by phone. The exchange, the Dubai Commodities Clearing Corp. and Dubai Multi Commodities Centre will showcase the product on Sunday in the emirate, according to an e-mailed invitation.“‘It will be a soft launch to DGCX’s internal stakeholders ahead of the official launch taking

|By Arabian Post Staff| The UAE’s growth in new business was the weakest since April 2012, according to the purchase manager’s index (PMI) data for November. Companies also saw their pricing power diminish while input costs rose further. But competitive pressures meant that charges fell regardless.The UAE’s non-oil private sector expansion strengthened in November, having eased to a two-and-a-half year low during October. Business conditions improved solidly, with the highlight being a marked and sharper rise in output.At 54.5, the

|By Arabian Post Staff| Zurich announced that it will begin a phased closing to new retail and small business customers in its general insurance business in the Middle East.Subject to an assessment of contractual obligations, existing portfolios in this business will be put into run off. This means that Zurich will effectively exit its general insurance businesses by the end of 2016 or as soon as possible thereafter. The decision only affects the general insurance business in the Middle East

Oil has been on a steady decline in the past several months due to a surplus of the precious black liquid. While some have predicted this could seriously dent Saudi Arabia's oil-backed economy, others are skeptical due to the fact that the state was able to save a lot of money from the rally of oil that occurred back in 2000 until last year.According to public records, Saudi Arabia's foreign reserves will be over 100pc of its gross domestic product,

|By Arabian Post Staff|Arabtec said its board accepted the resignation of acting chief executive Mohamed al-Fahim and appointed a replacement.The loss-making firm, whose largest shareholder is Abu Dhabi state fund Aabar, appointed  Saeed al-Mehairbi as its new acting chief executive, it said in a bourse announcement.The company has been in trouble for the past 18 months after former chief executive and then biggest shareholder Hasan Ismaik quit in the wake of a dispute between Aabar, while other senior staff  left

|By Arabian Post Staff| Masdar announced the start of the operational stage of its pilot programme in Ghantoot, Abu Dhabi, which will see 1,500 m3/day of potable water produced over the next 15 months using four unique technologies that demonstrate commercially-viable and energy efficient solutions for renewable-powered desalination.After launching the programme in 2013, Masdar partnered with four global industry leaders - Abengoa, Suez, Sidem (Veolia) and Trevi Systems – to implement the most advanced and innovative technologies in desalination as

|By TAP Staff| Middle East carriers recorded a 9.9% increase in passenger traffic demand in September, well down on the 13.7% year-over year growth experienced in August,  International Air Transport Association (IATA) announced.Capacity rose 12.9% and load factor slipped 2.1 percentage points to 75.7%. Major economies in the region, including Saudi Arabia and the United Arab Emirates, have experienced slowdowns in non-oil sectors, it pointed out. However, the rates of growth remain robust, IATA said.Global passenger traffic results for September

|By TAP Staff| Emaar Malls, the shopping malls and retail business majority-owned by global property developer Emaar Properties, recorded net profit of AED 1.22 billion (US$ 332 million) during the first nine months (January to September) of 2015. This is 30 per cent higher than the net profit for the same period last year.Net profit during the third quarter (Jul to Sep) 2015 was AED 376 million (US$ 102 million), 17 per cent higher compared to third-quarter (Jul to Sep)

|By TAP Staff| Starting salaries for professional occupations are expected to see modest rises over the next 12 months, according to the Robert Half 2016 Salary Guide.Across professional occupations including finance and accounting, financial services, information technology, legal, and human resources and administration, salaries are expected to see an average rise of 1.7%. The roles that are the most difficult to fill are predicted to see salaries rising the most quickly in 2016, including internal auditors (8.9%) and learning

|TAP Special by K Raveendran| Landmark events about the development of a shopping mall generally involve major leasing deals or signing up flagship brands, or the launch of the mall itself. But Qatar’s Tawar Mall, coming up in a prime Doha locality, was the scene of a bit of fanfare this week for none of the above.The mall owners, belonging to the leading Qatari business family of Al-Kuwaris, announced the induction of a new management team along with a new

|By TAP Staff| Iran’s Bank Mellat, one of the most high-profile private entities sanctioned in 2009 for alleged links to Iran’s nuclear programme, won a morale-boosting victory against the British Treasury this week when a Court of Appeal upheld its demand for greater disclosures about the charges being leveled against it.The verdict was based on the principle that the accused has a right to know what is being alleged against it. This fundamental principle is based on the premise that

|By TAP Staff| Etihad Airways and IBM announced a ten-year technology services agreement worth approximately US$700 million.The transformational agreement, one of the most important strategic collaborations by Etihad Airways, will provide access to the latest cloud-based technologies and services for the airline, its group companies and equity partners. Etihad Airways, one of the fastest-growing airlines in the world, carried 14.8 million passengers in 2014, and serves 113 passenger and cargo destinations.IBM will deliver a range of secure and efficient technology

|By TAP Staff| Investors are expressing growing skepticism that the U.S. Federal Reserve will raise rates this year amid fragility in the global economy and earnings, according to the BofA Merrill Lynch Fund Manager Survey for October.Fewer than half (47 percent) of investors believe the Fed will raise rates in 2015, down from 58 percent in September.     A net 19 percent of the panel says global fiscal policy is too restrictive.Cash balances fell to 5.1 percent of portfolios, down

|By TAP Staff| September data from Emirates NBD Dubai Economy Tracker signaled a sustained upturn in output levels within Dubai’s private sector economy, helped by growth across all three key sub-categories of activity monitored by the survey.Overall rates of business activity and new orders growth were, however, softer than those seen on average through the first half of 2015. As a result, private sector companies were more cautious in terms of their staff hiring in September, with the latest expansion

|By TAP Staff| Dubai-based developer Buroj Property Development said  it plans to invest $4.8  billion to build a luxury tourist resort near Sarajevo, in what could be the biggest foreign investment of its kind in the Balkan country, Reuters reported.Bosnia, where Muslim Bosniaks are the largest of its three ethnic groups, has seen an influx of tourists from the Middle East in recent years and a growing number of Middle Eastern buyers of properties, attracted by the country's mountain landscape."The