By Saifur Rahman

The Emirates Group, which operates the world’s largest airline Emirates and its ground handling and ticketing arm Dnata, reported a 7 percent growth to record $6.6 billion (Dh24.4 billion) profit before tax in its 2025-26 financial year ending March 31, 2026, despite a disruption of flight operations during the US-led attach on Iran and its fall-out on the regional aviation industry from February 28, 2026.

With this, Emirates has emerged as the world’s most profitable airline in the 2025-26 reporting period and starts its current financial year with record cash assets of $16.2 billion (Dh59.6 billion) – enough to manage growth and expansion as well as face any headwinds.

The UAE corporate tax rate applied to the Emirates Group increased from 9 per cent to 15 per cent this year, due to the adoption of Pillar Two tax rules in the UAE. After accounting for the tax charge, the Group’s profit after tax is Dh21.0 billion (US$5.7 billion), up 3 percent from 2024-25.

The group reported record revenue of $41 billion (Dh150.5 billion), up 3 per cent over last year’s results. It has declared a dividend of $1 billion (Dh3.5 billion) to its owner, the Investment Corporation of Dubai (ICD), an investment arm of Dubai Government.

The Dubai Government-owned Emirates Group also reported a whopping record cash asset $16.2 billion (Dh59.6 billion) at the end of March 31, 2026, which is up 12 percent compared to the previous financial year. This will help Emirates Group to navigate out of any future challenges and maintain its investment in growth and new-generation aircraft acquisition programme.

Emirates Group is the largest contributor to the Dubai economy. The Group reported Earnings before Interest, Tax, Debt and Amortisation (EBITDA) of $11.2 billion (Dh41.1 billion, reflecting its strong operating profitability. In 2025-26, the Group invested $4.9 billion (Dh17.9 billion) in new aircraft, facilities, equipment, and the latest technologies to support its growth plans.

“The achievements are the result of long-term vision, sustained effort, and continuous investment in our people and capabilities. The performance of the Emirates Group in 2025-26 reaffirms the strength, resilience, and adaptability of Dubai’s model.” HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said in a statement.

“The Emirates Group embodies the spirit of Dubai. Over the past four decades, Emirates has grown into one of the world’s most respected airlines, defined by excellence, resilience, and a relentless pursuit of quality. Beyond connecting destinations, it brings people closer together and enhances how the world experiences travel. In parallel, Dnata continues to extend Dubai’s expertise globally, contributing to the advancement of aviation and travel services across continents.”

The Group’s total workforce grew by 8 percent to 130,919 employees, as Emirates and Dnata continued recruitment activity around the world to support its expanding operations and boost its future capabilities. The Group’s UAE national workforce also grew to surpass 4,000, showing the success of its programmes to attract, grow and retain local talent.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group said, “These outstanding results, despite significant challenges in the last month of our financial year, reaffirm the strength and resilience of the Emirates Group’s business model, which is rooted in safety, excellence, innovation, people and partnerships.

“For the first 11 months of 2025-26, the picture across the Group was very positive. Strong demand for our products and services was driving revenue, and we were achieving healthy margins thanks to our sustained investments in product, people, technology and brand. Month after month, we were surpassing our targets.

“On 28 February, military activity massively disrupted global commercial air traffic in the Gulf region, including in the UAE. Emirates and Dnata quickly mobilised to support our people and affected customers, protect our assets, and ensure business continuity.

“We are fortunate to be based in Dubai, where years of infrastructure investments and a cohesive aviation ecosystem have enabled the government to quickly secure safe corridors for commercial flights. Emirates and Dnata have since gradually restored operations at DXB. Although we are still operating at a lower passenger capacity than pre-disruption, cargo operations have ramped up to support the movement of essential goods into and through the UAE.”

The article Emirates Group reports $6.6 billion record profits appeared first on Arabian Post.

The total value of 139.55 million payments through UAE FTS and ICCS last year exceeded Dh25.9 trillion (US$7.06 trillion), according to the UAE Central Bank.

This includes the processing of 23.78 million physical cheques valued at Dh1.5 trillion through the UAE Central Bank’s Image Cheque Clearing System (ICCS) in 2025. A large chunk of these payments are linked to sale and purchase transactions by businesses that were recorded through manual and paper invoices.

The UAE Funds Transfer System (UAEFTS) witnessed 114.9 million retail transactions valued at Dh9.9 trillion in 2025, according to the UAE Central Bank – most of which are recorded through physical invoices. Institutional transfers through UAEFTS totalled 865,708 transactions valued at Dh14.5 trillion in 2025.

However, from January 1, 2027, most of these types of transactions will become part of the E-Invoicing eco-system that will reflect on the FTA records real time and help improve tax collection, as the UAE shifts to E-Invoicing regime later this year.

The E-Invoicing system will be mandatory for businesses generating more than Dh50 million turnover from January 1, 2027. Companies will have to select the Accredited Service Providers (ASPs) from amongst the 28 authorised ASPs approved by the UAE Federal Tax Authority (FTA) by July 1, 2026.

Mariam Abdullah Al Matroushi, Deputy Director of Fujairah Department of Finance and Member of the Board of Directors at the Federal Tax Authority, said, “The UAE is moving steadily toward developing its tax system by adopting an e-invoicing system in less than two months, in phases from January 1, 2027, starting with companies generating more than Dh50 million turnover, that requires all stakeholders to start preparing for E-Invoicing,

“This will become mandatory for companies with turnover less than Dh50 million around the second half of 2027. This digital E-Invoicing system is transparent and will help all stakeholders in real-time processing VAT and Corporate Tax in the UAE.

“This step is part of the UAE Government’s vision to build a knowledge- and technology-based economy, with E-Invoicing serving as a pivotal tool to support financial innovation and strengthen integration between the public and private sectors.”

More than 125 billion E-Invoices were processed in 2024 worldwide, including 5 billion in Saudi Arabia where E-Invoicing volume, managed by Zakat, Tax and Customs Authority (ZATCA) via the Fatoorah platform, exceeded 8.2 billion invoices in 2025, representing a 64 per cent increase from 2024 and highlighting rapid digital adoption. As of early 2026, the integration process is on-going in waves, with the 24th wave of Phase 2 targeting businesses with smaller revenue thresholds.

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By Saifur Rahman

ICAI Chairman Rishi Chawla speaks at the Conference titled Gateway to Capital Markets

GCC financial wealth is projected to grow by roughly 4.7–5.2 percent annually, reaching US$3.5 trillion by 2026–2027, up from US$2.7–US$2.8 trillion in 2021–2022, driven by high oil prices, robust IPO activity in the UAE and Saudi Arabia, and a rising influx of high-net-worth individuals, according to a report by Boston Consulting Group.

The recently announced plans by the UAE Government to automate 50 per cent of the government organisations and services through Artificial Intelligence (AI) for autonomous execution and decision-making creates opportunities for businesses and professionals in the UAE who could play a great role in this transformation, experts say.

“The UAE is about to change drastically. It is not going to the same country that it has been for the last few decades. Businesses can benefit from these changes that are going to take place in the next few years from now. The role of the professionals are changing, mostly the Chartered Accountants. They need to develop soft skills to excel in an evolving society,” Neeraj Agrawal, Board Member and Group Chief Financial Officer of Crescent Group Holdings, said.

Debt financing in the GCC reached record highs, with total issuances projected to have reached US$226 billion in the first 11 months in 2025, driven by high investor demand, tighter spreads, and corporate refinancing needs, far exceeding 2024 levels, according to a report by credit rating agency Fitch Ratings. Saudi Arabia (US$82 billion) and the UAE (US$64.9 billion) accounted for the majority of the issuance, driven by economic diversification projects, such as Vision 2030. Unlike previous years, the 2025 market saw a massive rise in corporate debt issuance to US$128.6 billion, overtaking government issuances.

GCC banks drove significant issuance, exceeding US$60 billion, to manage maturity walls and support strong credit growth, with Saudi lenders leading at US$28.3 billion. Islamic Sukuk remained a crucial instrument, with GCC dollar-denominated Sukuk surpassing US$70 billion, marking a significant year-on-year increase, according to a report published by the Global Business and Finance Magazine.

CA Rishi Chawla, Chairman of the Dubai Chapter of the ICAI, said, “The world and the UAE are changing very fast, in fact so fast that it is becoming difficult for many of us to cope up with the pace. With the growth comes the need for capital to fund it and history tells us businesses fail not because they don’t have a great idea, but they fail because they can’t have access to capital to fund these great ideas. Here Chartered Accountants can play a pivotal role and bridge that important gap.

“So, it is important for the UAE businesses and the financial professionals to understand the winds of change and help their companies to access capital to fund the changes to remain relevant and perhaps to be on top of the game. Many financial professionals are yet to tap the debt and capital markets and see how they can influence changes in their organisations.

“An Accountant records history. But a Chartered Accountant shapes the future. The future belongs to those who believe in the beauty of their dreams. We as Chartered Accountants must lead the change and help our organisations to excel amidst the change,” CA Rishi Chawla said at a packed conference, organised by the Dubai Chapter of the Institute of Chartered Accountants of India (ICAI), attended by more than 500 professionals.

The conference titled, Gateway to Capital Markets: IPOs, Bonds and Sukuks Unblocked, highlighted the opportunities in accessing the region’s debt capital markets and how capital raising could transform UAE family-owned businesses more transparent, agile, professionally-run and help them navigate through succession to the next generation.

The conference took place at a time when debt issuances by banks in the GCC are set to remain strong through 2026 after exceeding US$60 billion so far this year, Fitch Ratings said in a new report. The surge was driven by heightened maturities, strong credit growth and favourable financing conditions.

“We expect continued strong issuance in 2026, supported by further US Fed rate cuts, US$36 billion of debt maturities, additional strong credit growth in Saudi Arabia and the UAE, and persistent tight domestic liquidity conditions in Saudi Arabia,” Fitch stated.

Issuance this year has already reached US$55 billion, beating the 2024 total of US$36 billion and the 2025 maturities of US$23 billion. Excluding CDs, issuances reached US$36 billion, outpacing Fitch’s start-of-the-year estimates. Saudi lenders lead issuance with US$28.3 billion, followed by banks in the UAE, at US$11 billion, Qatar (US$8 billion) and Kuwait (US$7 billion). Sukuk accounts for nearly half of the new deals, excluding CDs. “We expect UAE bank issuance to remain driven by refinancing and diversification as the sector has good liquidity and a solid net foreign asset position,” the report said.

GCC banks account for almost 30 per cent of US dollar issuance by emerging-market banks this year, and more than 60 per cent when excluding Chinese banks. Subordinated debt sales by GCC banks this year have already reached US$14.5 billion, compared to US$7 billion in 2024, accounting for 40 percent of issuance, excluding CDs.

Hitesh Asarpota, Chief Executive Officer of Emirates NBD Capital, said, “Debt issuance was 5 percent in the UAE in 2005, when I came to the UAE and started my journey here, when the same was 60 per cent in European economies. So, the market was at a very nascent stage and I decided to be part of this exciting journey in accessing debt and capital.

“A lot has changed in the last 5 years in the UAE’s capital markets – which had 95 percent retail investors with more than 90 percent of them were UAE nationals. However, institutional investors, foreign investors and sovereign wealth funds are now investing in the market that is fuelling the growth. One could benefit immense opportunities in the capital markets that has seen more than US$2.2 trillion Assets Under Management (AUM). So, be part of the future growth story.”

As the UAE strengthens its position as a global business hub, the ICAI Dubai Chapter remains committed to supporting its members through continuous professional development, thought leadership initiatives, and strategic partnerships aligned with the nation’s long-term vision. With more than 3,200 members, ICAI Dubai Chapter is the largest business group in the UAE. Established in 1982, it has registered membership exceeding 3,200 members who represent more than 1,550 multinationals and other companies.

ICAI is the largest professional body of Chartered Accountants across the world with over 1,000,000+ students and around 450,000+ members. ICAI has a wide network with five Regional Councils, 176 Branches, 54 Overseas Chapters, and 31 representative offices across the globe. And among 54 overseas chapters, ICAI Dubai Chapter is the largest and most vibrant chapter of ICAI. Of the 8,000 Indian Chartered Accountants active in the UAE‘s private sector, 1,400+ are currently leading businesses in senior positions.

The article Experts urge businesses to tap US$3.5 trillion GCC financial wealth appeared first on Arabian Post.

By Saifur Rahman

The UAE will host the Annual Meetings of the International Monetary Fund (IMF) and World Bank Group in 2029 in Abu Dhabi, about 26 years after the country hosted the same in 2003 in Dubai.

The news comes at a time when the UAE banking assets reached its highest value, to Dh5.4 trillion (US$1.47 trillion), and foreign reserves jumped 23.4 percent to Dh1.05 trillion (US$285.55 billion) in 2025.

Annual Meetings of the IMF and World Banks are usually held in September every year – twice in the USA while once in three years this event is held outside the country that hosts both the global institutions. Countries and cities bid to host the Annual Meetings for the once-in-three-years event, which is usually decided on a voting process.

The UAE was selected to host the global event after securing the highest number of votes as part of an international evaluation process, demonstrating global trust in the country’s economic power, institutional readiness, and its stable and resilient economic environment. Dubai hosted it at the Dubai World Trade Centre in 2003.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai said: “In a global vote that reflects international confidence and underscores the UAE’s strong financial standing, the UAE has been chosen to host the 2029 Annual Meetings of the World Bank Group and the IMF in Abu Dhabi, a clear reflection of the strength and capability of its people.”

The decision reflects Abu Dhabi’s growing status as a regional economic powerhouse that also hosts the Arab Monetary Fund headquarters.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, stressed that hosting the 2029 Annual Meetings is in line with the country’s strategic vision of strengthening international partnerships and reinforcing its role as a key hub supporting global financial and economic stability.

“This global event will provide a significant platform to promote constructive financial and economic dialogue among countries worldwide. We are committed to providing an ideal environment that leads to tangible outcomes supporting sustainable development and strengthening global financial and economic integration,” he said.

UAE Banks Federation (UBF) reaffirmed that the selection of the UAE to host World Bank Group and IMF Annual Meetings for 2029 reinforces the country’s position as a global financial and economic hub, and its vital role in supporting efforts and initiatives for comprehensive and sustainable development  and financial stability at the international level.

AbdulAziz Al-Ghurair, Chairman of UBF, said: “The selection of the UAE to host this global event affirms the international community’s confidence in UAE’s position and its ability to lead such global dialogues. With its advanced infrastructure, organisational capabilities, and expertise in organising global events, as well as its financial and economic policies, the UAE has established itself as a leading economic and financial hub globally.
“Over the past few years, the UAE has been able to develop a stable and resilient economic environment, and balanced fiscal and monetary policies. The financial and banking sector is a key pillar in achieving the country’s strategic objectives and sustainable development goals. We are proud that the UAE is the only country in the Middle East and Africa to be selected to host this meeting, which is held every three years outside the headquarters of the World Bank and the International Monetary Fund, for the second time since Dubai hosted this meeting in 2003. We are committed to working with strategic partners and member banks, under the direct supervision of Central Bank of the UAE, to support all efforts related to these meetings in line with UAE’s position as a leading destination in organising events and leading constructive dialogues to develop economic and financial policies.”

He pointed out that this selection of the UAE comes in addition to many important events in the financial and banking field which the UAE will host in the same year, such as SIBOS 2029 annual conference which is organised by the Society for Worldwide Interbank Financial Telecommunication (Swift), is a testament to  global confidence in UAE’s leading position and its vital role in leading initiatives to develop the financial and banking sector.

The UAE is also the first and only country in the Middle East and Africa region to be selected by Swift to host SIBOS Conference and Exhibition, as Dubai had previously hosted the conference in 2013. Sibos is being held in several global financial hubs such as Singapore, Geneva, Toronto, London, Amsterdam and Beijing.

The article UAE to host 2029 IMF-World Bank Annual Meetings appeared first on Arabian Post.

By Saifur Rahman

Credit rating agencies have reaffirmed the UAE’s stable economic outlook with Moody’s Investor Services reaffirming Aa2 rating with Stable Outlook on April 3, 2026 – five weeks since the breakout of the war against Iran and the regional uncertainty.

Moody’s completed a periodic review of the ratings for the UAE on March 30, 2026, which reaffirmed its previous rating, reflecting continued global confidence in the country’s economy and sustainability of its fiscal policies, despite the ongoing regional geopolitical tensions.

Moody’s clarified that “this periodic review does not constitute a credit rating action, but reflects its ongoing assessment of the UAE’s credit profile based on recent developments and applicable methodologies,” in a statement.

“The review highlighted several key strengths underpinning the UAE’s creditworthiness, including high per capita income, robust institutional frameworks, and effective policymaking that supports continued economic diversification and competitiveness. It also underscored the federal government’s very low debt burden and strong financial position, supported by substantial fiscal reserves accumulated over years of budget surpluses,” a statement said.

Mohamed bin Hadi Al Hussaini, UAE Minister of State for Financial Affairs, said that the completion of Moody’s periodic review, with no change to the current rating and a stable outlook, reflects the UAE’s strong institutional framework and its track record of effective governance and policymaking.

“The stable outlook confirms that the UAE’s sovereign credit profile remains robust, supported by substantial fiscal buffers and prudent financial management, enabling the country to effectively navigate ongoing regional developments. It also reflects the strength of the UAE’s fiscal fundamentals and the effectiveness of its economic policies, which are built on diversification, fiscal discipline and sustainability.

“Maintaining strong investment-grade ratings is a testament to the government’s integrated performance and long-term strategic planning, further reinforcing the UAE’s position as a reliable and resilient global economic hub. This review reinforces confidence in the UAE’s investment environment and underscores its ability to maintain financial and economic stability under various conditions.”

Habiba Al Marashi, Chairperson of Emirates Environmental Group, said, “These past weeks has been a sobering reminder to our nation and to the wider Middle East of how fragile global stability can be. Geopolitical unrest in our region has once again underscored the importance of resilience, unity and responsible leadership.

“In times of uncertainty, countries are tested not only by the challenges they face, but by the values they uphold. The UAE continues to stand as a model of stability, foresight and measured response — a nation that remains united and focused on progress, sustainability and long-term prosperity despite external turbulence.

“What is particularly remarkable is how, in moments such as these, every sector of our society comes together. Government entities, private sector organisations, civil societies and communities respond with a shared sense of purpose and responsibility. There is a collective resilience that defines the UAE — one that is not only institutional, but deeply human.”

However, the current regional conflict could hamper the economy, especially real estate, tourism, aviation, trade and logistics sectors – if it lingers for a prolonged period, rating agencies and others cautions.

“Weaker economic activity, reduced tourism and slower population growth would put pressure on residential and commercial real estate markets,” Fitch Ratings said in a report on April 2, 2026.

Before the conflict started, Fitch forecast real estate prices to undergo a moderate correction of up to 15 per cent over 2H25–2026 following several years of strong growth.

“However, conflict spillovers will add further pressure, resulting in a larger correction than forecast,” Fitch Ratings said.

Corporate real estate accounted for 13 per cent of UAE banks’ gross loans at the end of 2025, down from 20 percent at end-2021, and this sector is likely to be the main source of new Stage 3 loans if the conflict is prolonged. Some banks still have high concentrations in their loan books. Their asset-quality metrics could weaken, adding profitability pressures, if the real estate price correction exceeds our pre-conflict expectations.

On March 6, 2026, S&P Global Ratings affirmed its ‘AA/A-1+’ long- and short-term foreign and local currency sovereign credit ratings on the UAE. The outlook is stable. The transfer and convertibility assessment is ‘AA+’.

“The stable outlook reflects our view that the UAE’s large fiscal and external buffers should provide space for policy maneuvering during adverse geopolitical developments or unfavorable hydrocarbon sector dynamics, including disruption in oil production or exports,” S&P said.

“Our ratings on the UAE remain supported by the government’s strong fiscal and external positions. Our estimate of the exceptional strength of the government’s consolidated net asset position (estimated at 184 per cent of GDP in 2026) provides a significant fiscal external and economic buffer to external shocks. The UAE’s general government debt is very low (estimated at about 27 per cent of GDP in 2026) and its consolidated fiscal balance has averaged a surplus of 5.6 per cent over 2021-2025.

“We also believe the authorities will deploy their substantial policy flexibility to counteract the effects of volatility stemming from geopolitical tensions in the Gulf region on economic growth, government revenue, and its external accounts. We believe this flexibility will enable the UAE to withstand periods of low oil prices and, more importantly, the temporary disruption of oil production and export routes. We expect the general government will continue to run a fiscal surplus averaging 2.6 per cent of GDP over our forecast horizon to 2029.”

Tourism, trade (and supply chains), and financial services sectors will be vulnerable to conflict, along with investment and consumer confidence, S&P warned.

“We nevertheless expect the credit impact of regional conflict on the UAE’s economy to remain contained, thanks to its diversified economic base and large liquid asset buffer,” it said.

The article Moody’s reaffirm Aa2 Rating for UAE appeared first on Arabian Post.

By Saifur Rahman

UAE’s leading telecom operator Etisalat & (e&) has reported a 33.6 per cent jump in net profit to Dh14.4 billion (US3.92 billion) in 2025, compared to Dh10.8 billion (US$2.94 billion) recorded in 2024 with revenue growing at 23.1 per cent to Dh72.9 billion (US$19.86 billion), compared to Dh59.2 billion (US$16.13 billion) in the previous year.

Its Consolidated Earnings before Interest, Tax, Debt and Amortisation (EBITDA) rose by 21.1 per cent to Dh32.0 billion last year, up from Dh26.5 billion in 2024. Earnings Per Share (EPS) jumped 33.6 per cent to Dh1.65 from Dh1.24 per share in the previous year.

The group’s total subscriber base grew to 244.7 million, marking a 31.3 per cent growth compared to 186.5 million in 2024. The company’s UAE operation continued its solid performance, with its subscriber base surpassing 16.3 million, representing an increase of 8.4 per cent compared to the previous year.

For FY 2025, the board has proposed a cash dividend of 47 fils per share for the second half (July to December) of 2025, bringing the total annual dividend to 90 fils per share. The board has also announced that the total annual dividend will increase in 2026 to reach 95 fils per share — further highlighting e&’s commitment to delivering added value to its shareholders.

The UAE telecom market value is expected to record a Compound Annual Growth Rate (CAGR) of 3.15 per cent from US$9.37 billion in 2025 to 2033, according to Market Report Analysis, a global market intelligence provider.

“The increasing adoption of 5G technology is significantly boosting data consumption, driving demand for higher bandwidth services and contributing to the expansion of the data and messaging services segment. Furthermore, the rising popularity of over-the-top (OTT) platforms and pay-TV services, coupled with the government’s continued investment in digital infrastructure, further fuels market expansion,” according to the report.

The market is projected to reach approximately US$13.42 to US13.95 billion by 2026.

Jassem Mohamed Alzaabi, Chairman of e&, said: “e&’s record 2025 results reflect the continued success of our strategy to evolve into a global technology group anchored by strong business pillars and disciplined execution. We are redefining the future of connectivity and enabling new possibilities across enterprise solutions, fintech and digital platforms.”

Etisalat PPF Telecom Group completed the acquisition of 100 per cent of Serbia Broadband, creating a converged player with a stronger competitive position in the Serbian market.

O2 Slovakia, part of e& PPF Telecom, signed a binding agreement with Liberty Global to acquire 100 per cent of UPC Slovakia for EUR 95 million. As a fixed line provider, UPC’s assets complement O2’s strong mobile offering in Slovakia.

In 2025, e& international operating companies launched 5G services in three markets – Morocco, Egypt and Serbia. The commercial launch of 5G marks a major milestone towards broad-based digital growth through higher speeds, wider coverage, and new digital opportunities.

The company’s Group Chief Executive Officer, Hatem Dowidar will step down from his position as Group CEO after 6 years in the role, to be replaced by Masood M. Sharif Mahmood, who has been serving as Chief Executive Officer of e& UAE since 2021.

The article Etisalat reports Dh14.4bn net profit appeared first on Arabian Post.

By Saifur Rahman

Abu Dhabi Chamber of Commerce and Industry (ADCCI), which represents the private sector of the region’s economic powerhouse Abu Dhabi, said, its new three-year strategy announced in 2024 has started to bear fruits as its membership grew 4.9 per cent to 157,207 between September 2024 and June 2025.

Since September 2024, ADCCI has hosted 69 business events with government bodies, welcomed 70 trade and diplomatic delegations, and signed 25 partnership agreements. It has also joined 11 outbound delegations and opened its first overseas representative office in Poland, a strategic step in expanding Abu Dhabi’s international economic footprint. ADCCI also published 364 economic reports on various sectors and has created 15 working groups for different economic sectors to help in policy advocacy.

ADCCI is planning to open offices in key international markets one by one in the coming months, Shamis Ali Al Dhaheri, Second Vice Chairman and Managing Director of ADCCI, told the press, responding to a question by The Arabian Post at a media roundtable held at its head office on Tuesday.

“We are going to make these announcements as and when they happen. In Abu Dhabi, we do not distinguish companies based on the nationality of the owner, rather consider all of them our equal member and we are here to serve them,” he said.

Abu Dhabi’s economy is characterised by a strong oil and gas sector, but the emirate is actively diversifying into non-oil sectors, including tourism, manufacturing, and financial services. In 2024, the non-oil sector saw significant growth, contributing 54.7 per cent to the total GDP. Abu Dhabi’s GDP reached a record Dh1.2 trillion in 2024, with a 3.8 per cent overall growth rate, driven largely by the non-oil economy.

There are five main free zones in Abu Dhabi including Abu Dhabi Global Market (ADGM), Khalifa Economic Zones Abu Dhabi (KEZAD), Masdar City Free Zone, Abu Dhabi Airport Free Zone (ADAFZ), and Twofour54 Free Zone. These free zones cater to a variety of industries and sectors, offering unique benefits and infrastructure for businesses.

There are approximately 10,500 companies registered across five free zones in Abu Dhabi. The Abu Dhabi Global Market (ADGM) is the largest free zone in terms of the number of companies. The UAE overall has over 40 free zones, with Dubai holding the largest share of licenses.

Abu Dhabi currently has approximately 164,000 active business licenses. This figure represents a 16.5 per cent share of the total active licenses in the UAE, which reached one million, according to Akhbrna News. The number of active licenses in Abu Dhabi reflects a 3 per cent increase compared to late 2024.

“We are also welcoming the free zone companies to apply for our membership so that they could benefit from the consultation and our services as we are the voice of the private sector of Abu Dhabi economy,” he said, responding to another question by The Arabian Post.

Recently, Fitch ratings assigned AA credit rating for Abu Dhabi AA with a stable outlook. This rating reflects Abu Dhabi’s strong financial position and its ability to meet its financial obligations. The rating has been affirmed as stable, indicating no immediate changes are expected in the near future.

“The private sector represents 56 per cent of Abu Dhabi economy and ADCCI represents the voice of the private sector of Abu Dhabi economy. Our three-year strategy announced last year is going ahead and we have strengthened our engagement with the businesses – SMEs as well as the larger players – to help the overall development of the private sector,” he said.

“Abu Dhabi’s economic strength is reflected in the number of new members, and we believe strong partnerships between the public and private sectors will continue to produce success. The rise in memberships highlights the Chamber’s strategic role as a key partner in economic development and a driver of competitiveness and sustainable growth. We stand shoulder to shoulder with the business community, sharing its ambitions and providing the tools and resources to compete on the global stage.”

The Chamber’s performance correlates with Abu Dhabi’s economic progress. The emirate’s GDP reached Dh291 billion in Q1 2025, a 3.4 per cent increase year-on-year, driven by a 6.1 per cent rise in non-oil sectors to account for 56.2 per cent of total GDP, reflecting success of economic diversification strategy.

The private sector continues to accelerate economic growth and diversification as evidenced by their impactful role in the highest growing non-oil sectors and largest contributors to economic output such as manufacturing, construction, finance, real estate, and trade.

In addition to its external engagements, the Chamber continued strengthening its internal services. Between September 2024 and June 2025, ADCCI recorded a 90.23 percent customer satisfaction rating on the TAMM platform. The Chamber’s call centre responded to more than 18,900 inquiries, demonstrating its level of responsiveness and service quality.

ADCCI continues to support the private sector by improving regulatory frameworks and facilitating open dialogue with policymakers. To date, it has formed 15 working groups comprising business leaders to identify challenges and collaboratively develop practical solutions across key industries.

It has published 364 economic reports to support decision-making and held 10 workshops attended by over 1,000 private sector representatives to help the business community better understand legal and commercial opportunities.

ADCCI’s work is closely aligned with the objectives of Abu Dhabi’s Falcon Economy and supports wider national economic goals through targeted support for SMEs, exporters, and investors. Its 2025–2028 roadmap, developed in close collaboration with the private sector, guides ADCCI’s efforts to provide key market insights and access to investment opportunities. Through its roadmap, ADCCI will continue to strengthen capacity building and contribute to the sustainable and inclusive growth of Abu Dhabi’s economy.

The article Abu Dhabi Chamber’s new strategy helps membership grow to 157,207 appeared first on Arabian Post.

By Saifur Rahman

Global credit rating agencies Moody’s Investors Service, Standard and Poor’s and Fitch Ratings have assigned ‘AA’ rating with stable outlook for the UAE economy, despite the regional tension. This comes right after the cessation of the military conflict in the region that significantly reduces security, political and economic risks.

Standard and Poor’s (S&P Global) on June 17 has assigned ‘AA/A-1+’ long- and short-term foreign and local currency sovereign credit ratings to the UAE, while Moody’s affirmed the UAE’s Aa2 long-term local and foreign currency issuer ratings, noting that the country’s outlook remains stable. On June 24, the day of the ceasefire between Iran and Israel, Fitch Ratings affirmed the UAE’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘AA-‘ with a stable outlook.

“This reflects the continued international confidence in the strength of the UAE economy and the sustainability of its fiscal policies,” the UAE Ministry of Finance said in a statement, a day after Iran and Israel agreed to a ceasefire to end a possible war, that has reduced the risks to a great extent, after Iran warned of blocking the Strait of Hormuz through which the majority of the Gulf’s energy moves.

“This consensus by all three major global credit rating agencies highlights the UAE’s advanced fiscal standing and strengthens its position among the few countries globally with strong sovereign credit ratings from all three top agencies.

“The ratings confirm the UAE’s ability to diversify and boost non-oil revenues, maintain sound fiscal discipline, manage risks effectively, and uphold prudent fiscal policies. All of these factors have contributed positively to economic stability and sustained growth across various sectors.”

Fitch’s report noted the elevated geopolitical risks in the region, while affirming the UAE’s strong ability to withstand short-term disruptions, supported by its substantial fiscal and external buffers.

“This achievement is yet another testament to the UAE’s continued success in striking a balance between fiscal stability and economic growth. It further reinforces international investor confidence and affirms the UAE’s status as a secure and stable destination for business and investment,” Fitch Ratings said.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, said: “The affirmation of the UAE’s strong sovereign rating by the world’s top three international credit rating agencies, and their consensus on a stable outlook, reflects the deep-rooted international confidence in the resilience of our national economy and the efficiency of our fiscal policies.

“The UAE continues to implement economic policies grounded in diversification, transparency, and fiscal discipline, with a strong focus on increasing non-oil revenues and achieving financial sustainability. This reflects the integrated performance of government entities and long-term strategic planning, which continue to reinforce the UAE’s position as a flexible and credible global economic hub.”

The UAE is the sixth-largest crude petroleum exporter in the world, with reserves largely concentrated in Abu Dhabi. Its proven crude reserves are the fifth-largest within OPEC, and the highest of all OPEC members per capita.

“The UAE has also made significant strides toward diversifying its economy, so that non-oil sectors now comprise about 75 percent of GDP. Over the past four years, real non-oil growth has averaged around 6 percent, bolstered by strong activity in the services sectors, including construction, financial services, transport and storage, hospitality, and manufacturing, which together account for about 35 percent of UAE’s real GDP,” S&P Global says.

“The stable outlook reflects our expectation that the UAE’s consolidated fiscal and external positions will remain strong over the next two years, amid continued prudent policymaking and resilient economic growth.

“The ‘AA’ rating and stable outlook reflects our view of the UAE’s strong fiscal and external positions. The exceptional strength of the government’s consolidated net asset position provides a buffer to counteract the effects of oil price swings and geopolitical tensions in the Gulf region on economic growth, government revenue, and the external account.”

Fitch Ratings project a UAE fiscal breakeven oil price of US$45-50 per barrel in 2025 and 2026 excluding investment income, partly reflecting rising oil production volumes and the significant share of spending by Government-Related Entities (GREs).

“We forecast the consolidated surplus at 5.3 percent of GDP in 2025 and 5.9 percent in 2026. Narrower deficits in Sharjah and higher oil production levels in Abu Dhabi will mitigate the forecast drop in oil prices from US$79.5 per barrel in 2024 to US$65 per barrel in 2025 and 2026. Dubai will retain a budget surplus,” Fitch says.

It estimates consolidated UAE government debt at 24.9 percent of GDP at end-2024, well below the ‘AA’ category median of 48 percent. It will rise slightly to 25.4 percent in 2025 and 2026.

“Individual emirates have varied debt profiles, with Sharjah standing out with a higher debt burden. We project Abu Dhabi’s debt to increase as it starts issuing in local currency, Sharjah to borrow to fund deficits, the FG to build the yield curve while Dubai debt will continue to edge down,” Fitch Ratings say.

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A number of UAE developers are entering the lucrative US$110.83 trillion real estate market in the United States, after their success in the UAE, which saw real estate transactions exceeded Dh893 billion last year. Americans are also one of the top ten nationalities to invest in the UAE’s real estate market where rental yield ranges between 7 to 9 percent.

“Emirati investments in the US, totaling over US$1 trillion, span from real estate to renewable energy, driving economic growth and creating jobs,” according to a report by UAE Embassy in Washington.

“The UAE-US trade and investment partnership continues to be a testament to the strength and potential of international cooperation. The UAE trades with all 50 US states, significantly supporting the American economy. US trade with UAE supports 161,000 American jobs.”

The UAE recently announced investment of US$1.4 trillion in US data centres while UAE’s ADNOC said, it will invest US$60 billion in expanded energy partnerships with major US firms and Emirates Global Aluminum said it will invest US$$4 billion in an aluminum smelter in Oklahoma. The enterprise value of UAE investments in the U.S. energy sector will rise to $440 billion by 2035 from $70 billion now.

Among the UAE developers, Moafaq Al Gaddah (MAG) Group, Invest Group Overseas (IGO), Mulk Holding, Dar Global and Sobha Realty have already announced a number of their projects that are being developed in different cities in the US. Damac Group earlier announced US$20 billion investment in data centre in the US.

“For American investors, UAE real estate offers high yields, tax benefits, and diversification in a fast-growing market. Investing in UAE real estate provides capital security, global market access, and an inflation hedge,” according to Martin Kocher, Partner at Alternative Investments.

Abu Dhabi’s Mubadala Investment Company has recently injected new capital into the US alternative real estate commercial lender 3650 Capital as part of a recent funding round. Mubadala’s website indicates that its real estate division has partnered with 3650 Capital and CalSTRS to commit up to US$4 billion towards the US real estate credit markets.

“The total value of the US housing market is approaching US$50 trillion, having added $3.1 trillion in value over the past year. This represents a 6.6 percent rise compared to June 2023 and is more than double the value of a decade ago. Residential real estate is expected to be the dominant segment of the US real estate market, with a projected market volume of US$110.83 trillion in 2025,” said a recent report by Statista, a global market intelligence provider.

Foreign investment in U.S. real estate surpassed US$1.2 trillion in the last 15 years, according to a report published by The Regulatory Review.

Foreign buyers purchased 54,300 properties, worth US$42 billion from April 2023 through March 2024, according to the US National Association of Realtors (NAR). Foreign buyers who resided in the U.S. as recent immigrants or who were holding visas that allowed them to live in the U.S. purchased US$22.6 billion worth of U.S. existing homes, representing 54 percent of the dollar volume of purchases. Foreign buyers who lived abroad purchased US$19.4 billion worth of existing homes, accounting for 46 percent of the dollar volume. International buyers accounted for 2 percent of the US$2.1 trillion in total annual US existing-home sales during that period.

Florida remained the top destination for foreign buyers, accounting for 20 percent of all international purchases. Texas (13%) and California (11%) were second and third, respectively, followed by Arizona (5%), Georgia, New Jersey, New York and North Carolina (4% each), NAR said.

Inventory in Miami-Dade County, which includes one of the most expensive metro markets in Florida and the country, rose by over 43 percent in April compared to the same month a year earlier, according to data from Miami Realtors.

This surge in for-sale homes could be a telltale sign of an impending cooldown in Miami-Dade’s housing market, even as prices continue to rise in the county at a rate five times faster than the national level, according to Redfin data.

The news comes as more than 100 real estate exhibitors from 15 countries including UAE are going to participate at the 2nd edition of America Property Exhibition, Summit and Gala Awards that will take place at the Miami Convention Centre from September 15-17, 2025. Organised by MIE Events, an international events organiser, and supported by Dubai Land Department, the 2nd America Property Exhibition (APEX) will see major UAE real estate developers; brokers and investors participate in the three-day event that will also focus on the cross-border investment in real estate and construction sector worldwide. APEX will attract more US investors and property buyers to buy properties in the UAE.

The APEX takes place a few months after the UAE’s recent announcement of investment outlay of US$1.4 trillion in US economy in the next ten years in various sectors like AI infrastructure, semiconductors, energy, housing and American manufacturing.

More than 3,000 professional realtors are expected to attend the three-day event in which more than 100 global real estate projects will be showcased where 150 experts and speakers will offer their insights and more than 100 VIP buyers will attend to invest in the projects that will be showcased at the APEX 2025 Exhibition and Conference.

“APEX is designed to be the leading international real estate platform in the US, promoting global investment, innovation, and partnerships in the property sector and we are delighted to announce the dates for the 2nd APEX this September, following our successful first edition held last year,” Zahoor Ahmed, Vice-President for Strategy and Partnerships at MIE Events, says.

“We are also happy to announce our partnership with the Dubai Land Department which has lent its strong support to the event that is expected to attract investment from the North American markets to the UAE’s property market in the coming years. This way, APEX is going to play a crucial role in strengthening the US-UAE economic partnership.”

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The International Monetary Fund (IMF) has approved the allocation of US$1.33 billion to Bangladesh to support the country’s economy that witnessed slowdown since the change of government in August 2024.
The allocation is part of the US$4.7 billion combined support package authorised by the IMF in January 2023 under the US$3.3 billion Extended Credit Facility (ECF) and Extended Fund Facility (EFF) and US$1.4 billion Resilience and Sustainability Facility (RSF), the International Monetary Fund (IMF) said.
The decision comes following the conclusion of the combined third and fourth reviews of Bangladesh’s arrangements under the ECF, EFF and RSF that approved an extension, augmentation and re-phasing of access funds.
However, the latest allocation exceeds the total ECF and EFF package by US$800 million, from US$3.3 billion to US$4.1 billion and brings the total allocation to US$5.5 billion.
“The augmentation approved by the [IMF] Executive Board today brings the total financial assistance under the ECF and EFF arrangements to US$ 4.1 billion, alongside concurrent RSF arrangements of US$1.4 billion. The enlarged enhanced ECF/EFF is aimed at restoring macroeconomic stability, promoting inclusive growth, and protecting the vulnerable. The RSF arrangement has secured fiscal space needed to build resilience against climate risks,” IMF said in a statement.
Bangladesh’s macroeconomic challenges have increased since the popular uprising in the summer of 2024, which led to the ouster of the previous government, IMF observed in its latest report.
“The timely formation of an interim government has helped stabilise political and security conditions, fostering a gradual return to economic stability. However, the economic outlook has worsened due to persistent political uncertainty, continuation of tighter policy mix, rising trade barriers, and increasing stress in the banking sector,” it said.
Bangladesh’s Gross Domestic Product (GDP) has grown to US$473.63 billion in the financial year ending June 30, 2025 from US$413.90 billion in the last financial year, IMF data shows. The country’s GDP growth rate declined from 7.1 per cent in the 2022 financial year to 3.8 percent this year. However, IMF projects the GDP growth to accelerate to 5.4 percent next year and 6.2 percent in the 2027 financial year.
After a fall in real GDP growth to 4.2 percent in FY24 from 5.8 percent in FY23, economic activity slowed further in FY25, the World Bank recently said in its periodic economic update on Bangladesh.
“The economy continues to face significant challenges, including investment moderation, elevated inflation and vulnerabilities within the financial sector. However, external sector pressures have apparently eased, with robust growth in remittance inflows and exports bolstering the current account balance in FY25,” the World Bank said.
“Real GDP growth is projected to further moderate to 3.3 percent in FY25 due to declining private and public investment. Political uncertainty and rising costs associated with borrowing and inputs are expected to constrain private investment growth and keep industrial growth subdued.”
Public investment will decline as the government reduces capital expenditure in FY25. The fiscal deficit is expected to remain under 5 percent of GDP in the medium term, with capital expenditure increasing only gradually. Inflation is likely to remain elevated in the near term, it observed..
Nigel Clarke, IMF Deputy Managing Director, said, “Bangladesh’s economy continues to navigate multiple macroeconomic challenges. Despite a difficult environment, programme performance has remained broadly on track, and the authorities are committed to implementing necessary policy actions and reforms. The IMF-supported programmes are helping safeguard macroeconomic stability and protect the most vulnerable, while accelerating reforms to support resilient and inclusive growth.
“Near-term policies should prioritise rebuilding external resilience and reducing inflation. The authorities’ recent steps to implement a new exchange rate regime and include revenue-enhancing measures in the FY2026 budget are welcome. A balanced policy mix—anchored in maintaining a tight monetary policy stance, greater exchange rate flexibility, and revenue-based fiscal consolidation—will support efforts to restore both external and internal balances.”
Efforts to raise tax revenues and rationalise expenditures—including through subsidy reduction—are critical for creating the fiscal space needed to strengthen social, development, and climate initiatives. Sustained progress in reducing government subsidies to a fiscally sustainable level, along with enhanced public financial management, is essential to improving spending efficiency and mitigating fiscal risks, Nigel Clarke observed.
“Financial sector policy should prioritise safeguarding stability and addressing rising vulnerabilities. Developing a comprehensive, sequenced strategy to guide reforms is an immediate priority, followed by the swift implementation of the new legal frameworks to enable orderly bank restructuring while protecting small depositors,” he said.
“Sustained structural reforms are essential for Bangladesh to achieve its goal of attaining upper middle-income status. Key priorities include diversifying exports, attracting greater foreign direct investment, strengthening governance, and enhancing data quality.”
Bangladesh’s real GDP is expected to rise gradually in the medium term, if backed by critical reforms. Inflation is expected to gradually subside in the medium term on the back of tight monetary policy, fiscal consolidation and easing import restrictions on key food commodities. Rising trade uncertainties are expected to put pressure on the external sector.
“Bangladesh will need bold and urgent reforms to bolster the financial sector, facilitate trade, and enhance domestic revenue mobilisation,” said Gayle Martin, World Bank Interim Country Director for Bangladesh.
Dhruv Sharma, World Bank Senior Economist, added, “The risks to the outlook are on the downside as uncertainties related to trade, persistent inflationary pressure, weak demand in Bangladesh’s major export markets, and intensifying financial sector vulnerabilities could weigh on growth.”

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Nisus Finance Investment Consultancy FZCO (NiFCO Dubai), a subsidiary of India’s Nisus Finance Services Company Limited (NIFCO), said it will place funds and assets worth up to US$500 million (Dh1.83 billion) for tokenisation in the UAE.

NiFCO Dubai said, it has signed a Memorandum of Understanding (MoU) with Xchain Technologies FZCO (Toyow), a leading blockchain-based forensic and advisory firm, for the tokenisation of funds and assets worth up to US$500 million (Dh1.83 billion), as the market shifts towards Web3 technology.

Tokenisation, the process of converting ownership rights of real-world assets into digital tokens, is gaining traction in the Middle East, particularly in Dubai. This trend is driven by the potential for increased liquidity, accessibility, and transparency in real estate investment.

Nisus Finance plans to conduct a Security Token Offering (STO) of its real estate assets under management (AUM) through Toyow’s marketplace. Toyow will provide end-to-end technical support, including smart contract development, blockchain integration, and regulatory alignment.

The news comes a few days after Dubai Land Department (DLD) launched the region’s first tokenised real estate investment project through the ‘Prypco Mint’ platform. The initiative is being implemented in partnership with Prypco.

These are in line with the UAE’s futuristic national vision focusing on technology and innovation. The news comes a few days after the DLD launched the region’s first tokenised real estate investment project in collaboration with the Virtual Assets Regulatory Authority (VARA), the Central Bank of the UAE, and the Dubai Future Foundation (DFF). With DLD projecting tokenised real estate transactions to reach Dh60 billion by 2033 — or 7 percent of the total market — Dubai is clearly positioning itself as a global hub for asset tokenisation.

“This MoU will help us develop real estate funds on the Web3 blockchain technology platform – that is set to revolutionise investment in real estate in the future,” Amit Goenka, Chairman and Managing Director of Nisus Finance Group (NiFCO), said. “This would be our first such venture and depending on how the market responds, will usher in a new era in the UAE’s high-growth real estate market.

“STO on a Web3 platform is secure, transparent and set to drive future real estate investment. Property developers are already introducing cryptocurrency and tokenisation as new channels of payment and raising funds. We are taking it a step forward by creating funds to accelerate the growth of the real estate market.”

Dubai is taking a leadership role in the Middle East in real estate tokenisation, while the global real estate tokenisation market is expected to reach US$18.9 trillion by 2033.

Tokenised private real estate funds are projected to grow to US$1 trillion by 2035, with a total market penetration rate of 8.5 percent. The tokenised ownership of loans and securitisations could grow to US$2.39 trillion by 2035, with a total market penetration rate of 0.55 percent, according to a report by the global business advisory firm Deloitte.

Tokenisation could democratise the real estate market through crowdfunding and fractional ownership that will allow investors to invest smaller amount in high-value projects, according to experts. “This will help an increased number of investors to participate in investing in properties through Web33 technology,” said a property analyst, requesting anonymity. “However, there should be clear regulatory guidelines and massive public awareness drive for retail buyers and micro-investors to gain insights before investing their hard-earned savings in to tokenised assets.”

As per the MoU, Xchain Technologies FZCO will tokenise Nisus Finance’s Real Estate Assets Under Management (AUM) worth up to US$500 million (Dh1.83 billion) as security tokens on Toyow, a global multi-category tokenised Real World Assets (RWA) marketplace.

Toyow will leverage its platform to provide technical and operational support, including regulatory compliance across the UAE, DIFC, and international jurisdictions. Investors holding the Toyow Token will be able to invest in this fund using Toyow Token ($TTN).

“The tokenised real-world assets market (excluding stable coins) reached $15.2 billion by December 2024. This growth is fueled by a supportive regulatory landscape, technological advancements, and increased investment from financial institutions,” according to reports.

The growth in real estate tokenisation is driven by several factors, including: increased institutional Interest; clear regulatory support; technological maturation; investment opportunities as tokenisation allows for fractional ownership and access to real estate for a wider range of investors, including those with lower investment capital.

Surajit Chanda, Co-founder, Toyow, says, “Partnering with Nisus Finance on an STO of this scale underscores the growing maturity of real-world asset tokenization in the region. At Toyow, our mission is to unlock liquidity and access for high-quality assets by offering a secure, compliant, and scalable infrastructure. This collaboration reinforces our belief that institutional-grade tokenization is no longer a concept—it’s here, it’s accelerating, and it’s changing how capital flows into real estate.”

Toyow will also manage investor onboarding and KYC/AML compliance, provide secure wallet and custody infrastructure, and enable both primary issuance and secondary trading of the tokenised assets—all within a seamless, compliant ecosystem designed for institutional-grade scalability.

Toyow is redefining access to real-world assets by enabling the tokenisation of categories like real estate, art, precious metals, alternative investments, and more, on-chain. Built for institutional-grade compliance and scalability, Toyow enables asset owners to digitise, fractionalise and monetise high-value assets, while offering investors secure, transparent access to global investment opportunities through a liquid, blockchain-powered marketplace.

The partnership is part of Toyow’s growing tokenisation pipeline valued at over US$38 billion across multiple asset classes and jurisdictions globally.

As per the MoU, Toyow will list the tokenised real estate assets on its marketplace for primary and secondary trading, while managing liquidity mechanisms for the secondary trading of security tokens. In addition to these, Toyow will also oversee marketing, investor outreach, and awareness campaigns for the STO, in addition to providing a secure wallet infrastructure and custody solutions for tokenised assets.

It will also handle all aspects of investor onboarding and operational execution for the STO, including customer support and transaction management.

Disruptive technologies, such as asset tokenisation, are poised to transform real estate over the next few years. Built on blockchain technology, tokenisation converts physical or financial assets into fractional, digital representations that can be securely owned and traded online.

“Tokenised real estate could not only pave the way for new markets and products, but also give real estate organisations an opportunity to overcome challenges related to operational inefficiency, high administrative costs charged to investors, and limited retail participation,” according to a report by Deloitte.

Tokenisation allows capital generation across the capital stack- including debt, equity, and hybrid funding on a single platform. Over the last eight years, since the first tokenised real estate deals were completed, it has helped open potential new avenues for real estate investment through fractional ownership, the report says.

This technology could help build trillions of dollars of economic activity for the real estate sector over the next decade, in part, by allowing it to expand its investor base and product offerings. The Deloitte Center for Financial Services predicts that US$4 trillion of real estate will be tokenised by 2035, increasing from less than US$0.3 trillion in 2024, with a CAGR of 27 percent.

The article Dubai’s real estate market gets ready for US$500 million fund for tokenisation appeared first on Arabian Post.

Amit Kaushal. Chairman of AKCEL Group

The governments and the private sector in the GCC are investing heavily in infrastructure and creating world-class race tracks for the development of motorsports that, coupled with strong interest among the local youth are spearheading the motorsports in the region.
Home to two global Formula 1 race tracks, the region is yet to become a global hotspot for motorsports. Although a lot of youngsters aspire to become global celebrities, motorsports has not become part of the mainstream sports yet.
However, this is about to change with global investors injecting resources into motorsports by not only giving the motorsports enthusiasts proper training, guidance, mentoring and putting them into racing circuits, but also by investing in creating new teams in different circuits.
Amit Kaushal, an Indian entrepreneur and Group Chairman of AKCEL Group, is one such entrepreneur who is working with UAE-based motorsports professionals to create global motorsports assets that will raise the UAE flags in major international circuits.
He brings more than 25 years of corporate and entrepreneurial experience, strategic foresight, operational excellence, and a deep understanding of emerging markets to the Group’s global operations.
AKCEL GP, a UAE-based motorsport team, unveiled its long-term vision to transform the UAE as a global hub of motorsports by developing local talents and position them in the global racing circuits where the UAE flag could fly high. Interest among young UAE nationals and expatriates for motorsports is driving the new initiative.
An increasing number of UAE nationals and residents are taking active part in both amateur and professional car racing activities that will help the team to achieve this.
Dubai Sports Council last year said that the sports sector contributes more than US$2.5 billion to Dubai’s growing economy and responsible for 105,000 employment in the emirate. A key area of growth is sports tourism that is worth US$600 billion in the Middle East and is set to grow at .7 percent by 2026.
AKCEL GP, a UAE subsidiary of the UK-based AKCEL Holdings is deploying significant resources to train and nurture local and regional talents in order to prepare them to win international racing circuits. It has recently unveiled its team members for a number of global racing events that will reinforce the UAE’s position to a much higher level in these circuits.
The news comes at a time when the GCC region in general and the UAE in particular is witnessing a surge in the number of motorsports events taking across the country where the number of participants – both male and female – are growing every month.
Last year, AIX Investment Group announced a 100 per cent acquisition of the PHM AIX Formula 2 and Formula 3 teams. The company said that this move aligns with its unwavering commitment to innovation, performance, and global impact. Racing Force, parent company of the Bahrain-based Racing Force International had begun trading the shares of the company on Euronext Growth Milan, the market dedicated to medium-sized companies.
From no motorsports facilities in 2004, the GCC currently holds more than a hundred motorsports events and car racing championships every year where thousands of local and regional participants compete against each other.
Starting from go-carting to desert drive, amateur to professional racing – the region has it all, including two global venues for the annual Formula 1 racing circuits in Bahrain International Circuit and Yas Marina Formula 1 race track. Besides, Dubai Autodrome at the Dubai Motor City hosts a large race track where amateurs and professionals practice to hone their skills to achieve greater success in professional racing.
Although the region is yet to claim a significant share in the US$10.79 billion global motorsports market, its share is growing due to the high level of interest in motorsports among the local population in the GCC countries as they constantly seek greater thrill.
“Formula 1’s presence in the UAE is symbolic of the broader motorsport culture that exists in the Gulf. Saudi Arabia has also been making waves in this arena, hosting the Formula E races in Diriyah,” said a recent report.
Formula E, the all-electric racing series, has gained momentum globally, and its continued presence in the GCC highlights the region’s commitment to sustainable innovation. In fact, Saudi Arabia hosted its seventh Formula E event this year and this move is part of a broader strategy to integrate sustainability with sport.”
Revenue in the sports cars market in the GCC is projected to reach US$2 billion (Dh7.3 billion) in 2025 while sale of sports cars in the region is expected to reach 28,400 in 2029, according to Statista – a global market intelligence provider.
“Sooner than later, we could see young Emirati motorsports professionals lift the Formula 1 racing title,” Amit Kaushal, Group Chairman of AKCEL Group, says. “For that, the country has invested heavily to create an eco-system for motorsports and we are witnessing young Emirati boys and girls are enrolling in various training centres to learn car racing to compete in international circuits. AKCEL GP is here to accelerate the pace and we are going to invest more resources to make sure that the UAE flag rises high in more and more international circuits.”
AKCEL GP has already started making headlines since it officially entered the global racing arena in January this year. Competing in Regional European Championship by Alpine (FRECA), Formula Regional Middle East Championship (FRMEC), and Formula 4 (F4) series, the team’s entry marks a significant milestone for the UAE.
AKCEL GP is championing a new era of diversity and talent. Founded on the principles of acceleration and excellence, the team aims to push the boundaries of performance and inclusivity. AKCEL GP’s roster of drivers includes rising stars from diverse nationalities, showcasing the team’s focus on nurturing global talent and empowering the next generation of racers.
The team integrates advanced data analytics and telemetry to optimise driver performance while championing sustainable technologies such as energy-efficient systems and lightweight materials. The team’s cars, adhering to FIA standards, reflect AKCEL GP’s dedication to competitive excellence.
With Alpine Racing collaboration for the Formula Regional European Championship by Alpine (FRECA) and FIA-standard Formula 4 vehicles designed for cost efficiency and fairness, AKCEL GP is equipped to challenge the best on circuits worldwide. With circuits spanning Europe, the Middle East, and beyond, AKCEL GP aims to connect with a diverse global audience while offering sponsors unparalleled opportunities for global exposure.
“With the availability of great facilities and large corporates coming forward to patronize local talents in the racing circuits, we are now seeing greater corporate engagement in support to local motorsports,” Amit Kaushal says, “It is a matter of time for this motorsports movement to see a greater number of Emirati national players help the sector to grow faster.
“We are currently speaking to all stakeholders including government authorities, sports bodies, corporate world and the academicians to help the industry evolve as the level of interest among the young Emirati and expatriates are very high and we see a great opportunity to position the UAE in the global racing landscape.”
Kaushal’s professional journey began in the late 1990s, following the completion of his academic pursuits in India. He began his career in the private sector and went on to lead major initiatives in education before moving to the UK, where he held senior positions at top-tier investment banks including Bank of New York Mellon, Wells Fargo, Santander, Barclays, and UBS.
In 2001, Amit founded his first venture in IT consulting and training services, serving clients across industries including energy, utilities, finance, healthcare, telecom, media and entertainment in UK, Ireland, and India. His business acumen has since driven the expansion of AKCEL Group into a consolidated global enterprise with operations spanning multiple continents and a projected annual revenue exceeding US$100 million.
His leadership is marked by structured growth, ethical entrepreneurship, and an unwavering focus on value creation. He is passionate about developing future talent and building high-impact ventures—most notably through AKCEL GP, the Group’s flagship Formula Racing Team based in the UAE.
Now based in London, Amit remains deeply engaged in global business, mentorship, and motorsport. His integrity, optimism, and results-driven mindset continue to shape AKCEL Group as a dynamic force on the world stage.
AKCEL GP is part of AKCEL Holdings which is a diversified investment conglomerate with interests in investment, technology, training, real estate, motorsports, sports and entertainment. The group has footprints in the United Kingdom, the UAE and India. Founded by UK-based Non-Resident Indian serial entrepreneur Amit Kaushal, the group boasts of more than a dozen businesses spread across the UK, UAE and India.
With a tagline – Aspiration to Legacy – the AKCEL Group recently established AKCEL GP, a UAE-based motorsport team, that has started to make waves as it officially entered the global racing arena by competing in Regional European Championship by Alpine (FRECA), Formula Regional Middle East Championship (FRMEC), and Formula 4 (F4) series, the team’s launch marks a significant milestone for the UAE. Dedicated to developing world-class racing talent and fostering innovation, AKCEL GP is setting new benchmarks in motorsport globally.

The article UAE to become international hub of Motorsports appeared first on Arabian Post.

By Saifur Rahman

The Emirates Group reported an 18 percent growth in profit before tax exceeding US$6.2 billion (Dh22.7 billion) – a new record – in the financial year 2024-25.

This is the first financial year that the UAE corporate tax, enacted in 2023, is applied to the Emirates Group. After accounting for the 9 percent tax charge, the Group’s profit after tax reached US$5.6 billion (Dh20.5 billion).

The world’s largest international aviation group also recorded annual revenue of US$39.6 billion (Dh145.4 billion) which is 6 percent higher than the previous financial year.

Emirates Group, which includes the world’s largest international career Emirates Airline and its ground handling and ticketing arm Dnata – has also declared Dh6 billion dividends to its shareholder – the Government of Dubai – through Investment Corporation of Dubai (ICD).

Emirates Group also reported a record level of cash assets at US$ 14.6 billion (Dh53.4 billion), up 13 percent from last year while it also reported the highest-ever Earnings before Interest, Tax, Debt and Amortisation (EBITDA) of US$11.5 billion (Dh42.2 billion), which is up 6 percent, demonstrating its strong operating profitability.

Emirates Airline reported a 20 percent jump in profit before tax of US$5.8 billion (Dh21.2 billion) on record revenue of US$34.9 billion (Dh127.9 billion), for 2024-25 financial year, an increase of 6 percent over last year.

The airline currently has highest-ever level of cash assets at US$13.5 billion (Dh49.7 billion), which is 16 percent higher compared to 31 March 2024.

Emirates Group’s ground handling and ticketing arm Dnata delivered record profit before tax of US$430 million (Dh1.6 billion), up 2 percent from last year on record revenue of US$ 5.8 billion (Dh21.1 billion), up 10 percent.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group said: “It is no accident that Dubai has produced hugely successful global aviation entities including Emirates and dnata. Dubai’s aviation sector has become an influential force on the global stage thanks to visionary leaders, strategic planning, co-ordinated execution, and strong support from our customers, business partners, and all the people of Dubai.

“When the government set up Emirates 40 years ago and we began expanding Dnata’s capabilities to support the city’s growth, we had a clear mission – be the best at what we do; and deliver value to Dubai, our stakeholders, and the communities we serve.”

Sheikh Ahmed added: “For 2024-25, the Emirates Group has raised the bar to set new records for profit, revenue, and cash assets. Through the year, Emirates and Dnata were able to move quickly to meet the strong demand for air transport services across markets and win over customers – thanks to our non-stop investments in our people, in building partnerships, and in delivering great products and services.”

In 2024-25, the Group collectively invested US$3.8 billion (Dh14.0 billion) in new aircraft, facilities, equipment, companies, and the latest technologies to support its growth plans.

The Group’s total workforce grew by 9 percent to 121,223 employees, its largest size ever, as Emirates and Dnata continued recruitment activity around the world to support its expanding operations and boost its future capabilities.

Commenting on the outlook for 2025-26, Sheikh Ahmed said: “We enter the year ahead with excitement and optimism. Our excellent financial standing enables us to continue building on and scaling up from our successful business models. While some markets are jittery about trade and travel restrictions, volatility is not new in our industry. We simply adapt and navigate around these challenges.

“Emirates will strengthen our network connectivity with the expected delivery of 16 A350s and 4 Boeing 777 freighters in 2025-26, providing much-needed capacity to meet customer demand. Our retrofit programme will continue apace to provide our customers the latest Emirates products and a more consistent experience across our A380, 777 and A350 fleet.

“Work is already underway at the new Al Maktoum International airport (DWC) and broader development around Dubai South. Our planning teams are working closely with Dubai airports and other entities to design and deliver the future of aviation and the best possible travel experiences.

“We’ve set high targets for ourselves, but I am confident that our talented workforce and Dubai’s winning formula will empower the Emirates Group to forge an even brighter future, and deliver even more value to the people, cities and communities we serve.”

Emirates Airline

Emirates’ total passenger and cargo capacity grew 4 percent to 60.0 billion ATKMs in 2024-25, recovering to near pre-pandemic levels.

During the year, Emirates launched two new destinations – Bogotá and Madagascar; restarted flights to Phnom Penh, Lagos, Adelaide and Edinburgh; and strengthened services to 21 other destinations to meet rising demand. By 31 March, Emirates served 148 cities in 80 countries and territories. Emirates also grew its partnerships to 33 codeshare and 118 interline partners, providing customers smooth access to over 1,750 cities beyond its network.

“One of the key benefits of operating an airline in the Gulf is that you don’t have to deal with trade unions or labour unions – so the airlines could keep the operating costs low through its own salary and remuneration packages as no one is there to question those,” said an aviation expert, requesting anonymity.

“Having said that, Emirate’s employee packages are higher compared to other private sector businesses. Other than that, it is perhaps the best managed airline group in the world and the results are a testament to this.”

The first Airbus A350 aircraft joined Emirates’ fleet this year, bringing added capacity for the airline to serve customer demand with its latest products, including the popular Premium Economy Class and a new-generation inflight entertainment system. By 31 March, Emirates had 4 A350s in its fleet flying to Edinburgh, Ahmedabad, Bahrain, Colombo, Kuwait and Mumbai.

With ongoing delays in new aircraft deliveries, Emirates added 99 more aircraft to its retrofit programme which will now see 219 aircraft go through a full cabin refresh at a total investment of US$ 5.0 billion. At 31 March, Emirates’ order book had 314 aircraft pending delivery, including 61 A350s, 205 Boeing 777x, 35 787s, and 13 777Fs.

Total fleet count at the end of March was 260 units, with an average fleet age of 10.7 years.

By strategically deploying capacity to serve surging demand across markets, Emirates’ total revenue for the financial year increased 6 percent to US$ 34.9 billion (Dh127.9 billion). Currency fluctuations and devaluations in some of the airline’s major markets negatively impacted the airline’s profitability by Dh718 million (US$196 million).

Emirates saw a record operating cash flow of Dh40.8 billion (US$11.1 billion) in 2024-25, which reflects its strong commercial performance and enables the airline to grow the business going forward.

Total operating costs increased by 4 percent from last financial year. Fuel and employee cost were the airline’s two biggest cost components in 2024-25, followed by cost of ownership (depreciation and amortisation). Fuel accounted for 31 percent of operating costs compared to 34 percent in 2023-24. The airline’s fuel bill decreased slightly to Dh32.6 billion (US$8.9 billion) compared to Dh34.2 billion (US$9.3 billion) the previous year, as lower average fuel price (down 10 percent) including hedging gains offset a higher uplift of 5 percent from increased flying.

With robust appetite for travel across customer segments, the strength of its global network, and strong customer preference for its products, Emirates hit a new record profit after tax of Dh19.1 billion (US$5.2 billion), outstripping last year’s Dh17.2 billion (US$4.7 billion) result with an exceptional profit margin of 14.9 percent. This is the best performance in the airline’s history and in the airline industry for the reporting year 2024-25.

Emirates carried 53.7 million passengers (up 3 percent) in 2024-25, with seat capacity up by 4 percent. The airline reports a Passenger Seat Factor of 78.9 percent, a marginal decline from 79.9 percent last year. Passenger yield remained consistent at 36.6 fils (10.0 US cents) per Revenue Passenger Kilometre (RPKM).

Emirates continued to invest in delivering ever better customer experiences. In addition to a range of inflight service enhancements in 2024-25, Emirates invested Dh63 million in its lounge product, opening two new lounges at London Stansted and Jeddah to bring the total number of dedicated Emirates Lounges globally to 41; and renovated existing facilities in Bangkok and Paris. This is part of a long-standing strategy to provide premium customers with signature experiences at key stations across the network, not only at its hub. The airline also launched its Emirates Chauffeur-Drive Service to Riyadh, expanding this signature service to over 70 cities.

Emirates SkyCargo delivered an outstanding year, carrying 2.3 million tonnes of goods around the world, up 7 percent from the previous year as the delivery of 2 new Boeing 777 freighters and 2 wet-leased 747 freighters unlocked capacity to serve surging demand for air transport.

Ably navigating the ongoing challenges in global logistics, the cargo division reported a solid revenue of Dh16.1 billion (US$4.4 billion), contributing 13 percent to Emirates’ total revenue.

Emirates placed orders for 10 more Boeing 777Fs, a significant investment to strengthen its cargo division’s position at the centre of global trade and logistics. Emirates SkyCargo has 13 freighters on order and expects to operate a fleet of 21 freighters by December 2026.

At the end of March, Emirates’ SkyCargo’s total freighter fleet stood at 10 Boeing 777Fs.

Under Emirates Group companies and subsidiaries, Emirates Flight Catering (EKFC) and MMI/Emirates Leisure Retail (ELR) reported notable results in 2024-25.

EKFC grew revenue from external customers by 11 percent to Dh1.1 billion (US$293 million), uplifting 15.4 million meals during 2024-25 for its 114 airline customers in Dubai. It committed Dh160 million to expand Linencraft’s facility to handle 400 tonnes of laundry per day by 2026, cementing its place as the region’s leading laundry services provider. EKFC also launched its gourmet B2C offering, Foodcraft, to consumers in the UAE.

MMI/ELR posted solid results with revenue growing 6 percent to Dh3.1 billion (US$847 million). During the year, both businesses saw strong customer demand across their portfolio, and extended their footprint with F&B and retail stores opening in 22 new locations, including MMI’s first retail outlet in Sri Lanka.

With a strong cash balance and operating cash flow, Emirates fully met all contracted obligations during 2024-25, including aircraft pre-delivery payments and financing liabilities as they become due, utilising our cash reserves which stood at Dh49.7 billion as of 31 March.

Emirates also fully repaid its US$750 million Corporate Bond which was issued in 2013 with a 12-year term. Listed on the Irish Stock Exchange, this bond was the first senior unsecured amortising bond issued by an airline, and the airline’s diligence in honouring the payment schedule further enhances its credit worthiness in global financial markets.

During the year, Emirates continued to deploy simple forward contracts to hedge against Brent crude oil and refining margins; and used long-term interest rate hedges to mitigate the impact of interest rate fluctuations. With significant currency exposure due to its global presence, Emirates continued to manage foreign exchange rate risk through currency options, forward contracts, and natural hedges. Its systematic approach improved cash flow predictability against volatile market shifts, reinforcing financial stability. In 2024-25, the airline’s risk management programme generated savings of Dh1.1 billion (US$287 million).

Dnata

Dnata increased its profit before tax by 2 percent to Dh1.6 billion (US$430 million) in 2024-25, with all business divisions reporting a solid performance, and notable contributions from its airport operations and catering and retail divisions.

Dnata’s total revenue increased by 10 percent to hit a new record of Dh21.1 billion (US$5.8 billion), driven by increased flight and travel activity across the world, particularly in its major markets: Australia, Europe, the UAE, UK, and US.

Dnata’s international businesses account for 75 percent of its revenue, unchanged from the previous year.

Expanding its capabilities and capacity to meet customer needs and its future growth ambitions, Dnata’s investments in 2024-25 amounted to Dh579 million (US$ 158 million). Significant investments during the year included: new electric and hybrid ground support equipment for its airport operations as part of its environmental strategy, new catering facilities in Australia, and new cargo facilities in the UAE.

In 2024-25, Dnata’s operating costs increased by 10 percent to Dh19.7 billion (US$5.4 billion), in line with expanded operations in its Airport Operations, Catering & Retail, and Travel divisions.

Dnata’s cash balance declined by Dh468 million to Dh3.7 billion (US$1.0 billion), primarily due to dividend payments to its owner, ICD; plus the funding of investments and debt repayments. The business saw a positive operating cash flow of Dh2.7 billion (US$735 million) in 2024-25, reflecting the substantial improvements in revenue.

Revenue from Dnata’s Airport Operations, including ground and cargo handling increased to Dh9.9 billion (US$2.7 billion).

Key customer wins in 2024-25 include: long-term contracts secured with Etihad Airways and British Airways in the USA; and the long-term extension of an agreement for dnata to manage Jordan Flight Catering Company Ltd which delivers world-class culinary services to over 30 airlines in Amman.

Revenue from Dnata’s Travel Services division grew by 11 prcent to Dh3.9 billion (US$1.1 billion), with strong contributions from its UK travel business and Imagine Cruising, its cruise holidays business.

The article Emirates  Group reports record profits of US$6.2 billion appeared first on Arabian Post.

By Saifur Rahman

When Ho Kwon Ping, a young Stanford drop-out, saw an abandoned tin mine in Thailand’s Bang Tao Bay in Laguna Phuket area in 1984, he didn’t know what to do with it as the land that was dimmed ‘useless’ by its former occupiers. It was a patch of a waste land with no activities then.
In his Stanford days, he was a firebrand social activist. He was thrown out the university for protesting along with Black Student Union against a Nobel Laureate who had very negative views on the Black community.
Ho Kwon Ping was then 32 in 1984 when he along his wife Claire Chiang visited the abandoned tin mine in the place on the Bang Tao Bay that is now popularly known as Laguna Phuket, wondering around the place. The only plus point was its location – next to a patch of a pristine beach on the Andaman Sea, part of the Indian Ocean. Although unsure what to do, he nevertheless decided to buy the entire patch of land that currently measures up to 1,000 acres, perhaps at a throwaway price. Undecided about its future, he then decided to plant trees on the abandoned tin mine and left it there for a good decade.
Ten years later, the landscape had changed and turned into a green oasis. Ho Kwon Ping then decided to start a resort project and aptly named it Banyan Tree. Instead of hotel rooms that generate rent per square metre per night, he developed a line-up of luxury villas with private swimming pool, separate bath tub in the open while having separate shower rooms – something that was unheard of – at least till then.
This is how Banyan Tree was established in 1994 as a premium resort in the Laguna Beach area of Phuket province in Thailand. It was the first resort to introduce the private pool villa concept in the hospitality industry. Through Banyan Tree, Ho Kwon Ping had re-designed and perhaps re-invented the leisure tourism industry long dominated by the global hospitality chains developed by the Western world.
Banyan Tree Laguna consists of 218 villas that commands US$500 average daily rate (ADR) with 78 per cent average occupancy throughout the year. Since then, Banyan Tree remained the flagship development of the group’s business with more than 10 hospitality brands evolving across the world in the last three decades with about 100 hotels and resorts currently under the management of the group that has recently been rebranded as Banyan Group.
“Over the years, our pioneering spirit has driven us to define and refine our design-led experiences. Meanwhile, our multi-branded approach has allowed us to enter new markets, catering to diverse guest segments while consistently delivering on our core pillars of sustainability and wellbeing,” Ho Kwon Ping, Founder and Chairman of Banyan Group, says
“Re-introducing ourselves as Banyan Group in 2024, we embraced the diversity of our portfolio and our multi-brand identity, planting seeds for progress in the years to come.
“In 2024, we opened a record 17 new hotels, including our first Banyan Tree in Japan, Banyan Tree Higashiyama Kyoto. We now operate eight hotels across five brands in Japan and are expecting more multi-brand openings in the pipeline.
“In China, we continued to maintain a strong pipeline, innovating to capture the rebounding domestic market. By establishing multi-brand complexes like Banyan Tree and Garrya Yangcheng Lake in Suzhou, and Banyan Tree and Angsana Tengchong in Yunnan, we are catering to a range of travellers seeking varied experiences within a single destination.
“We also signed new agreements to launch branded residences in Madrid and Dubai. This enables us to leverage branded residences as a significant driver of growth and market expansion, broaden our customer base, unlock additional revenue streams, and build brand equity for Banyan Group within untapped market segments.”
Banyan Group is the first Thailand property developer listed on the stock exchange of Thailand and Singapore.
The group’s overall revenue increased by 16 per cent year on year to S$380.6 million (US$295.24 million), with Residences setting yet another new record of S$328.8 million (US$255.05 million) in new sales. Core operating profit also increased to S$69 million (US$53.52 million), up 43 per cent compared to 2023.
Stuart Reading, Managing Director of Banyan Group Residences, says, “Banyan Tree resort is part of a greater vision by our founder Mr Ho Kwon Ping, to transform not only the 1,000 acquired land on the Laguna Phuket beach area, but to change the face of the global hospitality business with new ideas emerging from oriental Thai hospitality..
“With success, he continued to build hotels and resorts and went on to add more through management contracts and franchisee agreements. Today, with around 100 hotels and resorts operated by 12 hospitality brands, 66 spas and three golf courses across 25 countries in the world, Banyan Group has definitely made its mark in the global tourism industry.”
Ho Kwon Ping went on launch Angsana Hotels and Resorts – another fine example of Thai hospitality.
Banyan Group’s hotels globally operate under different brands – Banyan Tree, Angsana, Laguna, Cassia, Dhawa, Garrya, Homm, Baynan Tree Escape, Banyan Tree Veya, and Folio. This makes Banyan Group one of the most versatile hospitality group’s in the world offering a wide array of hospitality solutions – especially the contemporary Thai spas that brings the ancient healing and wellbeing concepts to the tourists in the most effective manner.
Ho Kwon Ping says, “With the increased focus on our core pillars of wellbeing and sustainability, we are ramping up efforts to weave our wellbeing philosophy into the guest experience as well as our associates’ experience.”
Tourism has been a great contributor to Thai economy with 60,000 registered hotels including 1,130 five-star hotels and resorts with 700,000 hotel rooms serving more than 35 million tourists annually. There are around 12,000 hotel rooms under construction in Phuket province alone.
Last year, 35.6 million tourists visited Thailand, generating 1.8 trillion Thai Baht or US$55.11 billion that directly contributed to the Southeast Asian country’s US$526 billion GDP, representing 10.47 per cent of its economy.
Thailand is the second largest economy in Southeast Asia, with a population of 72 million people.
“This year, the projection for the tourism industry is, 40 million international arrivals,” Stuart Reading, an Australian national who has been serving Banyan Group for the last two decades, says. “Phuket, with a population of 500,000 residents remains the second most visited city in Thailand with 9.89 million international tourists, second only to Bangkok that catered to 22.78 million tourists last year.
“Tourism represents more than 50 per cent of Phuket’s GDP while real estate represents between 5 to 10 per cent. Our hotel industry has a capacity of 45,000 guest rooms and the airport’s annual passenger handling capacity is around 18 million passengers per year. The airport connects Phuket to 80 cities with direct flights. “
Global tourism industry historically has long been dominated by the popular Western hotel chains, such as Sheraton, Hilton, Marriott, Hotel Inter-Continental, Le Meridien, Hyatt, Ritz-Carlton, etc. They still dominate, although the Asians and Arabs have also started to develop international hospitality chains since the 1980s.
The hotel and resort industry market size reached US$1.5 trillion worldwide in 2023, still dominated by the Western brands.
Like Banyan Group in Thailand, Dusit Thani, Anantara Hotels and Resorts, Shangri La Hotels, Taj Hotels and Oberoi Hotels in India, Jumeirah Group, Address Hotels and Resorts in Dubai, Rotana Hotels and Resorts in Abu Dhabi are some of the Asian hospitality chains that have been giving the Western hotel chains a run for their money.
The global hotel industry is dominated by major hospitality groups that continue to expand aggressively. The fastest-growing segments include luxury, extended stay, and lifestyle brands, while emerging markets like Asia-Pacific and the Middle East are key areas for future development. Three of the world’s top ten hotel management groups belong to China, while the United States lead the overall industry.
Jin Jiang International that operates Golden Tulip, Radisson Blu and Park Plaza brands, is the world’s largest hotel chain by the number of properties, with nearly 12,000 hotels worldwide. Based in Shanghai, this state-owned hospitality giant has a significant presence in China, while also expanding into Europe, the Americas, and Asia. Through acquisitions like Louvre Hotels Group and Radisson Hotel Group, Jin Jiang strengthened its international portfolio.
Banyan Group operates a hotel in Saudi Arabia’s new tourism hotspot Al Ula region and one in Dubai. It has recently opened fully-functional sales operation in the UAE and Saudi Arabia, to sell its luxury Phuket properties to the investors in the Middle East who could benefit from 4-6 per cent annual returns and while avail free stay in their units for a period between 1-2 months a year.
Banyan Group expects to release US$1 billion worth of new luxury residential real estate in Thailand’s Phuket over the next two to three years, as demand for quality homes on the island remains high. Over the next 5-10 years this could extend to US$4.5 billion or more.
The sales team executives have been deployed in both the UAE and Saudi Arabia, amid a surge of international interest in luxury real estate in Phuket from all over the world.
“The initial response has been encouraging, and we’ve already had quite a few investors come over to view our properties,’ Stuart Reading says. “Since there’s been a noticeable increase in visitors to Phuket from the Middle East region in the past couple of years, attracted by the agreeable climate, the high-quality lifestyle, safety, and the welcoming international nature of the community, we thought the time was right now to start developing the market.”
Last year, Banyan Tree Group rebranded to Banyan Group to reflect the fact that the Group now has 12 global brands of which Banyan Tree is the flagship.
Banyan Group has also been an important driving force in the development of Phuket first as a tourism destination, and more recently as a place for second homes. Set against the stunning backdrop of the Andaman Sea, on a 5 kilometre stretch of Bang Tao’s pristine beach, Laguna Phuket has evolved to become Asia’s leading integrated resort, home to seven world-class hotels, premium facilities as well as now some 3,000 branded residences, many on or close to the beach.
Spanning over 1,000 acres of lush parkland and located just a 30-minute drive from Phuket International Airport, Laguna Phuket has an award-winning 18-hole golf course, luxury spas, exceptional dining options, and countless activities to create unforgettable experiences. Its hotels and condos are set against picturesque lagoons and are interconnected by boats.
Up to 2024, a total of around 3,000 residential units have been built in Laguna Phuket, with another 700 now under development. A further 10,000 units are eventually envisaged for Laguna Phuket and Laguna Lakelands over the next 5-10 years.
Banyan Group expects to release another 5,000 residential units for sale over the next 3-4 years at Laguna Phuket and the neighbouring Laguna Lakelands, a pioneering eco-friendly residential community set in one square kilometre of lush tropical forests and lakes adjacent to Laguna Phuket, which was launched last year. Laguna Lakelands will eventually be Phuket’s largest dedicated residential community.

The article Asian hospitality brands giving Western hotel chains run for their money appeared first on Arabian Post.

By Saifur Rahman

The UAE economic growth is expected to remain healthy at around 4 percent while fiscal surplus is expected to decline to 4 percent of GDP this year from an estimated 5 percent of GDP last year, the International Monetary Fund said.

This is slightly lower than the projections made by the Central Bank of the UAE (CBUAE) which last month projected the UAE’s real GDP growth for 2024 at 4.0 percent, accelerating to 4.5 and 5.5 percent in 2025 and 2026, respectively.

According to the Quarterly Economic Review issued on December 23, 2024, the CBUAE said, “Growth expectations for the 2024 are driven by growth in the tourism, transportation, financial and insurance services, construction and real estate, as well as communication sectors.”

Strong economic growth continues, underpinned by robust domestic activity, although the outlook is subject to heightened global uncertainty, ongoing reform efforts are expected to support medium-term growth and energy transition, International Monetary Fund (IMF) said following the conclusion of a visit to the UAE by its team to assess the country’s economy

“Near-term growth is strong and expected to remain healthy at around 4 percent in 2025, despite lower-than-expected oil production related to OPEC+ agreements. Non-hydrocarbon activity is boosted by tourism, construction, public expenditure, and continued growth in financial services,” Ali Al-Eyd, head of the visiting IMF team said in a statement following the visit.

“Capital inflows remain strong, attracted by social and business-friendly reforms, and contribute to ongoing demand for real estate, which is driving further growth in house prices across different segments and locations. Hydrocarbon GDP is expected to grow above 2.0 percent this year, following OPEC+ decisions to sustain production cuts, and as the UAE implements a more gradual OPEC+ quota increase. Inflation is expected to remain contained around 2.0 percent in 2025 despite higher housing and utilities-related costs.”

A staff team from the IMF, led by Ali Al-Eyd, visited the UAE from January 14–22, 2025, to discuss economic and financial developments, the outlook and the country’s policy and reform priorities.

“Hydrocarbon revenue is expected to decline amid volatile oil prices and reduced oil production, but fiscal and external surpluses are projected to remain comfortable. The fiscal surplus is expected to moderate to around 4 percent of GDP in 2025 from an estimated 5 percent of GDP last year. However, non-hydrocarbon revenue is projected to increase steadily in the coming years with the ongoing implementation of the corporate income tax. Public debt remains contained at around 30 percent of GDP. The current account surplus is projected at around 7.5 percent of GDP, while international reserves are healthy at over 8.5 months of imports,” the statement said.

UAE banks remain adequately capitalised and liquid overall, while asset quality further improved in 2024. Robust domestic activity and resilient demand for credit has supported banks’ profitability amid still-elevated interest rates. Banks’ exposure to the real estate sector has declined by 4 percentage points to 19.6 during the period December 2021 to September 2024, and risks associated with continued increasing house prices should continue to be closely monitored, it said.

Ongoing improvements to the AML/CFT framework and progress under the Financial Stability Council are welcome and should be continued. Regulation and supervision of crypto-related activities should evolve in line with market developments, IMF suggested. It also welcomed greater transparency and communication on the monetary framework and operations, which supports liquidity management and local capital market development.

“The outlook remains subject to heightened global uncertainty. Turbulent external conditions, including resulting from geopolitical and policy uncertainties, could tighten global financial conditions, weaken global growth, and increase oil price volatility, impacting UAE fiscal and external balances and raising risks to domestic activity and financial markets. However, substantial financial buffers help mitigate short-term risks, while ongoing reforms and large investment in infrastructure and AI should lift productivity, posing upside medium-term growth risks,” the statement said.

“UAE reform efforts continue to support medium-term growth and a smooth energy transition, with prioritization and sequencing key to ensure effective outcomes. Ongoing infrastructure investments should enhance tourism and domestic activity, while ongoing trade liberalisation, underpinned by Comprehensive Economic Partnership Agreements, should further boost trade and FDI.”

Advancing a medium-term fiscal framework would ensure a coordinated national fiscal stance, promote long-term sustainability, and help meet climate change-related challenges. Continued progress in improving economic data collection and dissemination will reinforce these efforts, it said.

According to the CBUAE, non-oil GDP growth accelerated to 4.8 percent year-on-year (YoY) in Q2 2024, up from 4.0 percent YoY in the previous quarter, mainly due to the faster growth in manufacturing, trade, transportation and storage, and real estate activities.

“Non-oil GDP growth is expected to remain strong at 4.9 percent in 2024 and 5.0 percent in 2025, resulting mainly from the strategic plans and policies implemented by the government to attract foreign investments and promote economic diversification. The 16 non-oil sectors continued their steady growth pattern in Q3 2024. Wholesale and retail trade, manufacturing and construction continued to be some of the backbones of the growth in the non-oil sector,” it said.

“The comprehensive economic partnership agreements (CEPA) signed by the UAE with many countries have also strengthened its trade partnerships. As a result, the UAE’s non-oil trade exceeded Dh1.3 trillion in H1 2024, equivalent to 134 percent of the country’s GDP, representing a 10.6 percent YoY increase, and reflecting a successful implementation of the plan to diversify the UAE economy and strengthen ties with key trading partners.”

In the first 10 months of 2024, oil production averaged 2.9 million barrels per day, and is expected to grow by 1.3 percent in 2024, accelerating to 2.9 percent in 2025.

The article UAE economy to grow at 4% in 2025: IMF appeared first on Arabian Post.

By Saifur Rahman

Government of Iraq is undertaking a number of reforms including extending sovereign guarantees to boost foreign investment and trade to re-build its economy badly affected from the Gulf War, sectarian strife, terrorism and COVID-19, a top official told delegates at a conference in Dubai.

“We have unified the tax system in Iraq and are currently in the process of empowering the private sector to play a greater role in our economy,” Mohammed Darraji, Senior Advisor to the Iraqi Prime Minister, said. “We have recently initiated extending sovereign government guarantees to the private sectors for key industries and infrastructure projects. One of the most important changes that we have initiated is the integration or realignment of the Iraqi financial system with the global financial system to ensure greater transparency to help boost foreign investment.”

He said, Iraq is developing mega projects and his country needs foreign investment to modernise and expand ports, airports, highways, large petrochemical projects and new urban developments and cities.

“We have managed to stay away from the situation in the region and we are now focussing on increased flow of investment and foreign trade. Iraq is expanding its physical infrastructure that needs massive investment. We are looking at larger foreign investment to build the infrastructure that will help greater economic mobility,” he added.

Meanwhile, UAE-Iraq foreign trade has reached US$27 billion in 2024, said a top UAE government official.

Abdullah Al Saleh, Undersecretary at the UAE Ministry of Economy, said, “Iraq is a key ally of the UAE and we are keen to strengthen our ties. The potential for two-way trade between Iraq and the UAE is very high and we want to grow trade to a higher level.

“The 10th session of the Iraq-UAE joint committee held last year explored prospects of cooperation in various areas of mutual interests including economic investment, educational, cultural, agricultural, food, technological, and energy sectors among others. The UAE is keen to build further on these outcomes through continued dialogue and collective actions and contribute to Iraq’s sustainable economic prosperity. The strengthening of ties with our global and regional partners remains a key focus area. The widening network of our massive economic partnerships is providing our partners for all enablers to access international market.”

They were speaking at the Iraq Britain Business Council (IBBC) Autumn Conference ‘Growing Opportunities’, organised by IBBC and Gulftek.

Vikas Handa, Managing Director of GulfTek and Chairman of the IBBC Conference highlighting Iraq’s significant growth opportunities, said: “Iraq is undergoing the most substantial expansion in three decades, driven by improvements in stability, security and a wealth of investment opportunities worth approximately $400 billion. The positivity reflects from IMF prediction that Iraq’s GDP is set to rise 5.3 percent in 2025, and, also, the fact that the stock exchange funds have increased by 17 percent this year. The ground reality is visible in various infrastructure and housing projects being implemented providing potent business confidence in the economy.”

Dr Mohammed Al Shukri, Chairman of the Kurdistan Investment Board, told the Arabian Post, that his government had registered 155 new project that are being implemented at a cost of US$5 billion in 2023. “In 2024, we have registered 156 new projects with investment outlay of US$3 billion. We are aggressively looking at more investment from all our partners, especially from the UAE as we open up our economy further for foreign investment,” he said.

“Kurdistan is a very safe region and has been attracting foreign investment for some time. We are free from insurgencies.”

The article Iraq to use sovereign guarantees to boost investment and trade appeared first on Arabian Post.

By Saifur Rahman

The International Monetary Fund (IMF) on Wednesday said, it will grant US$645 million to support Bangladeshi economy, about US$105 million less than the US$750 million sought by Bangladesh Government to overcome current economic challenges.

Of this, around US$426 million will be provided under IMF’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF), while US$219 million will be made available under the Resilience and Sustainability Facility (RSF), IMF said in a statement following a series of discussions on the latest economic situation in the country that witnessed the fall of a 15-year regime of Sheikh Hasina in August this year. An interim administration led by Nobel Peace Prize winner Professor Muhammad Yunus is running the country since August 8, 2024. This increase would bring the total financial assistance under the ECF and EFF arrangements to US$4 billion, alongside concurrent RSF arrangements of US$1.3 billion.

Bangladesh’s external debt increased to US$103 billion, while the country’s nominal gross domestic product (GDP) reached US$451 billion this year.

“The Bangladesh economy continues to grapple with persistent challenges and is facing emerging external financing needs. To address these issues, the authorities requested an augmentation of IMF financial assistance of US$750 million to maintain macroeconomic stability and strengthen the country’s resilience to external shocks,” the statement said. “The authorities are committed to sustaining revenue-based fiscal consolidation to address the emerging external financing gap, tightening monetary policy to control inflation, and to fully implement exchange rate reforms to ensure greater flexibility. They have pledged to establish a healthy and competitive financial sector and are advancing their climate agenda to promote sustainable, inclusive, and green growth.”

Bangladesh’s Gross Domestic Product (GDP) growth has declined to 3.8 percent in the 2024-25 financial year starting from July 1, 2024 – after maintaining a more than 6 percent growth year-on-year for the last 16 years.

“We are pleased to announce that the IMF team reached a staff-level agreement with the Bangladesh authorities on the policies needed to complete the third review under the ECF, EFF, and RSF arrangements. The IMF’s Executive Board will consider completion of the review based on the implementation by the authorities of prior actions,” Chris Papageorgiou, IMF Deputy Unit Chief said following a three-day tour of Bangladesh.

“The timely formation of an interim government has fostered a gradual return to economic normalcy. However, economic activity has slowed significantly, and inflation remains elevated. Capital outflows, particularly from the banking sector, have pressured foreign exchange reserves. Additionally, tax revenues have declined, while spending pressures have increased. These challenges are further exacerbated by stress in parts of the financial sector.

“Amid significant macroeconomic challenges, the authorities requested an augmentation of US$750 million in IMF financial support to Bangladesh under the ECF and EFF arrangements. This increase would bring the total financial assistance under the ECF and EFF arrangements to US$4 billion, alongside concurrent RSF arrangements of US$1.3 billion. Upon completion of the third review, US$645 million will be made available, comprising US$426 million under the ECF and EFF and US$219 million under the RSF.”

Real GDP growth is projected to slow to 3.8 percent in fiscal year (FY) 2025 due to output losses caused by the public uprising, floods, and tighter policies but is expected to rebound to 6.7 percent in FY2026 as policies relax. Inflation is anticipated to remain around 11 percent (annual average year-on-year) in FY2025 before declining to 5 percent in FY2026, supported by tighter policies and easing supply pressures. However, the outlook remains highly uncertain, with risks skewed to the downside.

“Pressure on the external sector is expected to persist in FY25, easing later if global conditions improve and exchange rate flexibility increases,” said Dhruv Sharma, World Bank Senior Economist.

Enhancing governance, along with greater transparency, is critical to improving the investment climate, attracting foreign direct investment, and diversifying exports beyond the ready-made garment sector. Building resilience to climate change is vital to reduce macroeconomic and fiscal vulnerabilities. Strengthening institutional capacity and optimizing spending efficiency will aid in achieving climate goals. The government should focus on implementing climate-sensitive fiscal reforms and investing in sustainable, resilient infrastructure. Furthermore, robust management of climate-related risks will reinforce the stability of the financial sector, IMF prescribed.

Chris Papageorgiou said, “To address the emerging external financing gap and persistently high inflation, near-term policy tightening is crucial. Fiscal consolidation should prioritize the swift implementation of additional revenue measures, such as removing tax exemptions, while restraining non-essential spending. Coupled with monetary tightening, greater exchange rate flexibility and safeguarding foreign exchange reserve buffers will strengthen the economy’s resilience to external shocks.

“Bangladesh’s low tax-to-GDP ratio calls for urgent tax reforms to establish a fairer, more transparent system and sustainably increase revenue, focusing on rationalizing exemptions, improving compliance, and separating tax policy from administration. A comprehensive strategy is also needed to curb subsidy spending and address arrears in the electricity and fertiliser sectors.

“Addressing vulnerabilities in the banking sector is essential. Immediate priorities include accurately assessing non-performing loans, ensuring the effective implementation of existing regulations, and formulating a roadmap for financial sector restructuring. Key actions involve conducting an asset quality review and adopting a recovery and resolution framework aligned with global standards. Simultaneously, the authorities should advance risk-based supervision, while legal reforms are needed to strengthen corporate governance and regulatory frameworks. Institutional reforms to enhance Bangladesh Bank’s independence and governance will be critical for the successful implementation of financial sector reforms.

The article IMF grants additional $645m to help Bangladesh economy appeared first on Arabian Post.

By Saifur Rahman

Dubai’s state-owned publicly-listed utility Dubai Electricity and Water Authority (DEWA), reported a 6.2 percent growth in revenue reaching a record US$6.4 billion (Dh23.5 billion) and net profit of US$1.5 billion (Dh5.5 billion) in the first nine months of the year. DEWA, the share of which is traded on Dubai Financial Market also declared a US$844.6 million (Dh3.1 billion) dividend to shareholders.

DEWA’s first 9-month revenue growth was mainly driven by an increase in demand for electricity, water and cooling services. DEWA’s consolidated first 9-month EBITDA was up by 4.71 percent to Dh11.8 billion. Its third quarterly consolidated revenue increased by 4.75 percent to US$2.7 billion (Dh9.9 billion) and EBITDA was Dh5.1 billion, and cash from operations was up by 34.20 percent to Dh5.9 billion.

The news comes a few weeks after DEWA issued a tender seeking Independent Power Producer (IPP) advisory service for a 1,600 megawatt (MW) solar photovoltaic power plant with 1000 MW Battery Energy Storage System (BESS).  The BESS is expected to provide six hours of storage, according to DEWA’s tender notice.

“DEWA has initiated several key programmes and initiatives aimed at advancing sustainability, innovation, and the efficient provision of electricity and water services in Dubai. Among those initiatives are the Dubai Clean Energy Strategy 2050, Shams Dubai, and Dubai’s Demand Side Management (DSM) programme,” writes Salma Saleh on Statista, a global market intelligence provider. “One of the Dubai 2050 strategy’s main goals is to increase the share of clean energy generation in Dubai to 75 percent by 2050. From the consumption side, DSM programmes, developed by the Dubai Supreme Council of Energy, promote the efficient use of electricity and water among customers. It targets reaching a reduction of 30 percent in the consumption of water and energy by 2030.”

DEWA’s independent producer model has attracted investments worth Dh43.6 billion (US$11.9 billion) over 10 years. These investments cover renewable and conventional power plants and seawater reverse osmosis projects. Through the independent procurement model, Dewa has achieved the lowest levelised cost of energy in the world for solar energy projects, making Dubai a global benchmark for solar energy prices, the utility said.

“DEWA’s 6.2 percent revenue growth to Dh23.5 billion and 4.7 percent increase in EBITDA to Dh11.8 billion for the first 9 months of 2024, reflect continued growth in the Emirate of Dubai and our commitment to operational excellence, innovation, and sustainability. We are contributing to Dubai’s vision for a sustainable future in alignment with the Dubai Clean Energy Strategy 2050 and Net Zero Carbon Emissions Strategy 2050. DEWA will continue to deliver strong shareholder value through efficient operations, consistent dividends and support Dubai’s transition to a green economy,” said Saeed Mohammed Al Tayer, MD & CEO of DEWA, said in a statement.

In the third quarter of 2024, DEWA’s power generation soared to a high of 19.6 TWh marking a 3.98% increase from the same period last year. Notably, 1.8 TWh out of 19.6 TWh was from green energy source. This clean power accounted for 9.18 percent of the total power generated in Q3, 2024. DEWA is committed to using clean energy and maintain a sustainable generation mix to meet future demand.

DEWA imported 3.25 TWh from Hassyan power plant, 0.32 TWh from Warsan Waste Management Company and generated the remaining 14.32 TWh from its gas fired portfolio during the third quarter of 2024.

DEWA experienced a noteworthy 3.41 percent increase in its quarterly peak demand compared to Q3, 2023, reaching 10.76 GW. The quarterly gross heat rate of 7,923 BTU/kWh is the best achieved so far in DEWA history.

DEWA’s total desalinated water production in the third quarter of 2024 grew by 4.64 percent compared to the previous year, reaching a record production of 40.5 billion Imperial Gallons (BIG). The daily desalinated water demand reached a record peak of 455 Million Imperial Gallons (MIG) which is a 4.92 percent increase over the same period of the previous year.

At the end of the third quarter of 2024, DEWA has 1,250,288 customer accounts, representing a 4.16 percent increase compared to the same period in the previous year.

During the third quarter of 2024, DEWA commissioned two 132 kV substations, and 426 11kV substations. By the end of the third quarter of 2024, the company’s installed generation capacity was 16.779 GW with 2.86 GW (17%) of this capacity representing renewable energy. The company’s installed desalinated water production capacity was unchanged at 495 MIGD.

By the end of 2030, DEWA plans to reach installed capacity of 20 GW and 735 MIGD of desalinated water. Of this 20 GW, around 5.3 GW will be from clean sources, representing 26.5 percent. In the same period, the company plans to add 240 MIGD of desalination capacity using reverse osmosis technology.

DEWA was created in 1992 as a result of the merger of the Dubai Electricity Company and the Dubai Water Department. DEWA is the exclusive electricity and water utility provider in Dubai. DEWA was listed on the Dubai Financial Market in April 2022. DEWA’s attracted US$85 billion demand for its initial public offering (IPO) that was 37 times oversubscribed. The Group generates, transmits and distributes electricity and potable water to end users throughout Dubai. DEWA owns 56 percent of Empower, currently the world’s largest district cooling services provider by connected capacity, and owns, manages, operates and maintains district cooling plants and affiliated distribution networks across Dubai.

The article DEWA reports record revenue for 9 months appeared first on Arabian Post.

Bangladesh’s economy faces multiple challenges, said the International Monetary Fund in its latest report. Bangladesh’s economy is suffering from liquidity shortage and high inflationary pressure as its currency lost value by 38.23 percent from BTk85 per US dollar in March 2022 to BTk117.5 per dollar in June 2024.

“Stubbornly high international commodity prices and continued global financial tightening have amplified macroeconomic vulnerabilities. Although the current account remains compressed, a sudden reversal of the financial account has kept foreign exchange (FX) reserves and the Taka under pressure. In response to these pressures, the authorities have recently undertaken bold exchange rate reforms,” IMF said in its communique on Monday.

Bangladesh’s real Gross Domestic Product (GDP) growth slowed to 4.8 percent in the first half of the financial year 2024, while headline inflation reached a decade high of 9.7 percent year-on-year in April 2024, it observed.

“Looking ahead, real GDP growth is projected at 5.4 percent in FY24, owing to the ongoing import compression and policy tightening, and will pick up to 6.6 percent in FY25 as imports rebound and FX pressures ease,” IMF said.

“Inflation is projected to remain elevated at approximately 9.4 percent in FY24 but is anticipated to decline to around 7.2 percent in FY25, on the back of the continued tighter policy mix and projected lower global food and commodity prices. Following the exchange rate realignment, gross international reserves (GIR) are projected to gradually increase. Nonetheless, uncertainties around the outlook remain high and risks are tilted to the downside.”

In a recent economic update, the World Bank said, “Persistent inflation eroded consumer purchasing power, while investment was dampened by tight liquidity conditions, rising interest rates, import restrictions, and increased input costs stemming from upward revisions in administered energy prices.”

Bangladesh’s Current Account Deficit narrowed in FY23 and moved into surplus in the first seven months of FY24, driven by import suppression measures, World Bank noted. “But the Balance of Payments deficit widened to US$ 8.2 billion in FY23 and US$ 4.7 billion in the first seven months of FY24, as the financial account deficit widened further. Continued intervention in the forex market by Bangladesh Bank, resulted in gross foreign exchange reserves declining by US$4.0 billion so far in FY24, reaching US$ 20.8 billion in February 2024.”

The IMF has granted immediate access to about US$928 million under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF), following an economic review. The IMF Executive Board also concluded the second review of Bangladesh’s arrangement under the Resilience and Sustainability Facility (RSF), making available about US$220 million to support Bangladesh’s ambitious climate change agenda.

The ECF/EFF arrangement has helped to prevent disruptive adjustments to restore macroeconomic stability and to protect the vulnerable, while laying the foundations for strong, inclusive, and environmentally sustainable growth. The concurrent RSF arrangement has supplemented the resources made available under the ECF/EFF to expand the fiscal space to finance the authorities’ climate investment priorities, help catalyze additional financing, and build resilience against climate risks.

Antoinette M. Sayeh, Deputy Managing Director, and Acting Chair of the IMF, said, “Bangladesh’s economy is navigating multiple macroeconomic challenges. Even in the difficult environment, programme performance has been broadly on track and the authorities remain committed to undertaking the necessary policy actions and reforms. The IMF-supported programme is helping to safeguard macroeconomic stability and protect the vulnerable, while helping to accelerate economic reforms to deliver strong, inclusive, and green growth.

“Near-term policies should focus on rebuilding external resilience and bringing down inflation. The authorities’ recent actions to realign the exchange rate and implement the new exchange rate arrangement are welcome. Periodic reviews of the crawling peg would be important to ensure its effectiveness. Continued monetary and fiscal policy tightening would help to rein in inflation. Should external and inflationary pressures intensify, a further tightening in policies is warranted.

“Efforts to raise tax revenues and rationalise expenditure, including by reducing subsidies are crucial to generate the much-needed fiscal space to enhance social, development and climate initiatives. Sustained efforts to strengthen public financial and investment management, along with enhanced state-owned enterprise oversight are essential to improve spending efficiency and mitigate fiscal risks.

“Sustained structural reforms are required to achieve Bangladesh’s goal of reaching upper middle-income country status by 2031. Diversifying exports, attracting more foreign direct investment, and strengthening governance are key.”

The article Bangladesh economy faces challenges as currency loses value amid rising inflation appeared first on Arabian Post.

By Saifur Rahman

Aljada Discovery Center, Aljada

Property developers in the UAE and the GCC countries have raised US$4.3 billion (Dh15.48 billion) utilising debt market instruments such as bonds and Islamic sukuks to fund existing and future real estate projects, according to latest announcements.

These include the successful closure of the latest US$400 million (Dh1.46 billion) sukuk issuance by Arada Developments LLC, a Sharjah-based developer of mixed-use communities, that was oversubscribed 3.5 times to US$1.45 billion, which has been listed on the London Stock Exchange and the Nasdaq Dubai and the US$300 million sukuk issuance by Binghatti Holdings earlier this year.

The size of the UAE debt capital market (DCM) rose by 10 percent year on year (y-o-y) to US$270 billion outstanding at end-2023 and is forecast to cross US$$300 billion in 2024-2025, according to credit rating agency Fitch Rating. In the GCC, the UAE has the largest US dollar DCM. Nasdaq Dubai will likely continue being one of the top listing centres for US dollar sukuk globally.

“UAE sukuk issuers’ credit profiles are predominantly stable, with 96.5 percent of the sukuk being investment grade and 92 percent on Stable Outlook, with the balance on Positive Outlook,” said Bashar Al Natoor, Global Head of Islamic Finance at Fitch Ratings. “We expect the UAE DCM to continue its growth momentum on the back of capital market developments and diversification of funding. However, risks for DCM growth include rising rates and oil prices, and additionally for sukuk, AAOIFI-sharia standards adoption could add challenges.”

The share of sukuk and dirham issuances in the UAE’s DCM mix is also projected to rise on the government’s implementation of the Dirham Monetary Framework, issuers seeking to diversify funding, and strong investor demand, including from UAE banks that have solid liquidity. The share of dirham in the outstanding DCM mix rose to 20.5 percent at end-2023 from 0.5 percent in 2020, with the balance mostly in US dollars.

The federal government started issuing dirham T-bonds in 2022, and only T-sukuk were issued in dirham after 2Q23. In 2023, sukuk issuance in all currencies expanded by 115 percent y-o-y, while bond issuance rose more slowly, by 23.6 percent. Among US dollar DCM issuances in 2023, sukuk had a sizeable 35 percent share, up from 24 percent in 2022.

Outstanding ESG debt rose 165 percent y-o-y to US$17.1 billion, with 40.2 percent in sukuk. The Higher Sharia Authority directed Islamic banks to include sustainable sukuk and financing as part of business lines.
The news of Arada’s US$400 million sukuk issuance comes after Binghatti Holding raised US$300 million (Dh1.1 billion) through a sukuk in February this year. In 2023, Sobha Realty raised US$300 million through sukuk last year, to fund its projects at Sobha Hartland and launch Sobha Hartland II project that are currently under development.

Rated B1 by Moody’s and B+ by Fitch credit rating agencies, this is the first issuance under Arada’s newly established $1 billion Sukuk programme. The five-year fixed rate RegS Sukuk issuance, rated BB- by Fitch and B1 by Moody’s, was priced at par with a coupon of 8.00 percent, inside the initial guidance area of 8.675 percent for a spread of 355 bps over US Treasuries.

“The trade achieved one of the highest price tightening by a real estate issuer from the GCC, and also priced with a spread which is more than 150bps inside the previously priced debut sukuk,” Arada said in a statement. The proceeds of the sukuk will be used for the management of existing bilateral funding, general corporate purposes and to support development at Arada’s existing projects. The sukuk issuance saw strong demand from both regional and international investors, with a subscription order book of $1.45 billion, 3.5 times the offer size.”

Investor interest for the sukuk was diversified geographically, coming from Europe, the Middle East and Asia. The investors for this issuance include institutional investors, fund managers, High Net Worth Individuals (HNWIs), and banks.
Prince Khaled bin Alwaleed bin Talal, Vice-Chairman of Arada, said: “We are pleased to have enjoyed a successful return to the market with the closure of our second sukuk. This landmark issuance is once again testament to the strong level of interest from institutional investors around the world in Arada’s stable track record, good governance and compelling growth story.”

Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Capital and Standard Chartered Bank acted as the Joint Global Coordinators for the sukuk, while Arab Bank, Kamco Invest, Mashreq, RAK Bank, Sharjah Islamic Bank and Warba Bank acted as Joint Lead Managers and Bookrunners.

Since its launch in 2017, Arada has launched six successful projects in both Sharjah and Dubai, with a combined sales value of Dh60 billion. These include Sharjah’s largest ever mixed-use megaproject, Aljada; the UAE’s first forested community, Masaar; and the ultra-luxury Armani Beach Residences at Palm Jumeirah.

In 2023, the master developer announced a 100 percent increase in the total value of property sold to Dh7.02 billion, compared to the previous year. In total, Arada has sold 14,000 units since inception, valued at over Dh17 billion, with over 9,000 units completed.

According to data from Dealogic, real estate companies in the Middle East raised approximately US$3.6 billion across the bond and sukuk markets in 2023, with the UAE contributing around US$2.1 billion to this total. That included debuts from Sobha Realty, which priced a US$300 million 8.75 percent sukuk in July, and FIVE Holdings, which placed a US$350 million 9.375 percent 5NC2 senior secured Reg S/144A green bond in September, as well as a number of debt sales by Damac Real Estate Development.

This market activity followed an already busy 2022, with approximately US$3.5 billion being raised by the sector in the region, and US$3.8 billion in 2021, according to data from Dealogic. Only US$600 million was raised in 2020 amid the coronavirus pandemic.

The article Property developers raise US$4.3 bn in debt issuance appeared first on Arabian Post.

By Saifur Rahman

Investment Corporation of Dubai, an investment arm of the Government of Dubai, reported a 68 percent jump in net profits to a new record of Dh60.8 billion on Dh310.2 billion in revenue for the year ended 31 December 2023.

This growth has been backed with strong growth reported by the Emirates Group that includes the world’s largest international passenger carrier Emirates Airline and its ground handling and ticketing arm Dubai National Air Travel Agency (Dnata) that recently reported a 71 percent jump in net profits exceeding Dh18.7 billion (US$5.1 billion) in 2023-24 financial year ending March 31 2024, compared to Dh11 billion (US$3 billion) recorded the previous year. This is a new profit record for Emirates Group.

Emirates Group revenue increased 15 percent to Dh137.3 billion (US$7.4 billion) compared to Dh119.8bn (US$32.6bn) in 2022-23 financial year, driven by strong customer demand across its businesses. At the end of the financial year, Emirates Group had a strong cash balance of Dh47.1 billion (US$12.4 billion). Emirates Group declared a Dh4 billion (US$1.1 billion dividend to its shareholder – the Government of Dubai through Investment Corporation of Dubai (ICD).

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group, said, “Throughout the year, we saw high demand for air transport and travel related services around the world, and because we were able to move quickly to deliver what customers want, we achieved tremendous results. We are reaping the benefit of years of non-stop investments in our products and services, in building strong partnerships, and in the capabilities of our talented people.”

 “Both Emirates and Dnata have forged successful business models leveraging Dubai’s unique advantages, in turn generating enormous value for Dubai and the communities they serve around the world. The Group’s excellent financial standing today places us in a strong position for future growth and success. It enables us to invest to deliver even better products, services, and more value to our customers and stakeholders.” 

The ICD Group’s total assets reached a new record of Dh1.32 trillion, up 12 per cent or Dh145.3 billion, and liabilities Dh1.01 trillion, up 11 per cent, primarily pushed by the 16 per cent asset growth in banking. Non-banking operations grew their assets up by 5 per cent whilst reducing their indebtedness. The Group’s share of Equity increased by Dh21.4 billion, rising to a record of Dh237.9 billion.

“Economic growth in the UAE is broad based, led by robust activity in the tourism, construction, manufacturing, and financial services sectors. Foreign demand for real estate, increased bilateral and multilateral ties, and the UAE’s safe haven status continue to drive rapid growth in housing prices and an increase in rents, while adding to ample domestic liquidity,” according to Ali Al Eyd, Head of the International Monetary Fund team that visited the UAE two weeks ago.

“Impacts from geopolitical tensions have been contained thus far, while the authorities delivered a rapid response to address the recent flooding episode. Overall real GDP is projected to grow by around 4.0 percent in 2024, and average inflation is expected to remain contained close to 2 percent.”

Its revenue of Dh310.2 billion is 16 percent or Dh42.8 billion up from 2022, driven primarily by significantly higher passenger traffic in transportation as well as the asset growth and higher interest rates in banking and financial services sectors. The net profit attributable to the equity holder was Dh50.3 billion, up 69 per cent.

A number of Dubai Government-owned businesses are part of ICD, including Emirates Airline and Group, Emirates NBD, Ethra Dubai, Wasl Properties, among others.

Oil & Gas revenues declined as global oil prices retreated from their 2022 peak. Overall revenues grew faster than operational costs, boosting margins.

“The Group reported a record Net Profit of Dh60.8 billion, up 68 per cent with an increase of Dh24.6 billion predominantly from transportation, up 119 per cent, and banking and financial services, up 69 per cent, lifting their net profit to new highs. The strong momentum in real estate and hospitality sectors contributed to the record profits posted by many businesses in the Group. Oil and gas and aluminium production generated good profits, albeit lower than last year,” it said in a statement.

Mohammed Ibrahim Al Shaibani, Managing Director of ICD, said, ”ICD announced today its best-ever performance, a truly exceptional achievement as the Group posted, for the third consecutive year, tremendous growth and reached an unparalleled level of revenue and profitability, primarily driven by airlines and banking sectors.

“The strong regional economic momentum and increased competitiveness of our businesses created an effect of scale resulting in higher margins and performance of our portfolio companies operating in the transportation, banking and financial services, and other segments.

“Overall, the improved liquidity, asset quality, and the reduced leverage in non-banking operations further strengthened the Group’s financial position; assets and equity reached new records.

“As we continue to pursue growth and diversification, I am confident our businesses’ resilience and strength as well as ICD’s investment strategy will help us fulfil our mandate to maximise value for Dubai.

ICD was established in May 2006 by Decree (11) of 2006 and mandated with the consolidation and management of the Government of Dubai’s portfolio of commercial companies and investments. ICD also provides financial and strategic oversight to portfolio companies to maximise value for the long-term benefit of the Emirate of Dubai.

ICD’s portfolio comprises some of Dubai’s most recognised companies and represents a cross-section of vital economic sectors that the Government of Dubai has deemed strategic for the continued development and growth of the Emirate of Dubai.

The article Dubai’s ICD reports Dh60.8 billion net profits on Dh310 billion revenue appeared first on Arabian Post.

By Saifur Rahman

Emirates Group that includes the world’s largest international passenger carrier Emirates Airline and its ground handling and ticketing arm Dubai National Air Travel Agency (Dnata) reported a 71 percent jump in net profits exceeding Dh18.7 billion (US$5.1 billion) in 2023-24 financial year ending March 31 2024, compared to Dh11 billion (US$3 billion) recorded the previous year. This is a new profit record for Emirates Group.

Group revenue increased 15 percent to Dh137.3 billion (US$7.4 billion) compared to Dh119.8bn (US$32.6bn) in 2022-23 financial year, driven by strong customer demand across its businesses. At the end of the financial year, Emirates Group had a strong cash balance of Dh47.1 billion (US$12.4 billion).

The Group declared a Dh4 billion (US$1.1 billion dividend to its shareholder – the Government of Dubai through Investment Corporation of Dubai (ICD). Combined Emirates Group profits for the last two years, at Dh29.6 billion, surpass the COVID-19 pandemic losses of Dh25.9 billion during 2020-2022.

“The Emirates Group has once again raised the bar to deliver a new record performance. Throughout the year, we saw high demand for air transport and travel related services around the world, and because we were able to move quickly to deliver what customers want, we achieved tremendous results. We are reaping the benefit of years of non-stop investments in our products and services, in building strong partnerships, and in the capabilities of our talented people,” Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group, said.

“Both Emirates and Dnata have forged successful business models leveraging Dubai’s unique advantages, in turn generating enormous value for Dubai and the communities they serve around the world. The Group’s excellent financial standing today places us in a strong position for future growth and success. It enables us to invest to deliver even better products, services, and more value to our customers and stakeholders.”

In 2023-24, the Group collectively invested Dh8.8 billion (US$2.4 billion) in new aircraft, facilities, equipment, companies, and the latest technologies to support its growth plans. The Group’s total workforce grew by 10 percent to 112,406 employees, its largest size ever, as Emirates and Dnata continued recruitment activity around the world to support its expanding operations and bolster its future capabilities.

Emirates Group results reflect a rebound in passenger traffic worldwide. Global passenger traffic in 2024 is predicted to surpass the 2019 level for the first time since COVID-19, reaching 9.7 billion passengers or 106 percent of the 2019 level (12% YoY growth rate), according to a report by ACI World

“The growth rate is expected to gradually decelerate in succeeding years, as more markets recover from the effects of COVID-19.”

Middle Eastern airlines saw a 10.8 percent year-on-year increase in demand. Capacity increased 13.9 percent year-on-year and the load factor fell -2.1ppt to 77.5 percent compared to March 2023, said the International Air Travel Association (IATA).

Willie Walsh, IATA’s Director General, said recently, “Demand for travel is strong. And there is every indication that this should continue into the peak Northern Summer travel season. It is critical that we have the capacity to meet this demand and ensure a hassle-free travel experience for passengers. That means making urgent progress to resolve supply chain issues and for airports and air traffic management to be fully staffed and operating at maximum efficiency.

“While airlines are prepared for customer care and assistance when operational issues arise, they are fed-up of bearing the cost when delays and cancellations are the result of poor preparation in other parts of the value chain.”

Emirates Airline

With increased capacity deployment and strong demand across markets, Emirates Airline’s total revenue for the financial year increased 13 percent to Dh121.2 billion (US$33.0 billion). Currency fluctuations and devaluations in some of the airline’s major markets, notably the Pakistani Rupee, Egyptian Pound, and Indian Rupee, negatively impacted the airline’s profitability by Dh2.0 billion (US$0.6 billion).

Total operating costs increased by 8 percent from last financial year. Cost of ownership (depreciation and amortisation) and fuel cost were the airline’s two biggest cost components in 2023-24, followed by employee cost. Fuel accounted for 34 percent of operating costs compared to 36 percent in 2022-23. The airline’s fuel bill increased slightly to Dh34.2 billion (US$9.3 billion) compared to Dh33.7 billion (US$9.2 billion) the previous year, with a higher uplift of 24 percent due to increased flying being balanced by a lower average fuel price (down 18%) including hedging gains.

Driven by the voracious appetite for travel across customer segments, the strength of its global network, and the appeal of its products, the airline hit a new record profit of Dh17.2 billion (US$4.7 billion) exceeding last year’s Dh10.6 billion (US$2.9 billion) result, with an exceptional profit margin of 14.2 percent, marking it the best performance in the airline’s history.

Emirates carried 51.9 million passengers (up 19%) in 2023-24, with seat capacity up by 21 percent. The airline reports a Passenger Seat Factor of 79.9 percent, rising from 79.5 percent last year. Passenger yield declined 2 percent to 36.6 fils (10.0 US cents) per Revenue Passenger Kilometre (RPKM), due to a change in cabin and route mix, fares and currency.

The airline saw an operating cash flow of Dh37.6 billion (US$10.3 billion) in 2023-24, underpinning its strong commercial results and enabling the airline to grow the business going forward.

Emirates’ total passenger and cargo capacity increased by 20 percent to 57.7 billion ATKMs in 2023-24, recovering to near pre-pandemic levels. Providing customers with more connection options, Emirates restarted services to Tokyo Haneda, added capacity to 29 destinations, and launched new daily flights to Montréal, Canada. Emirates also inked codeshare and interline agreements with 11 new airline partners, further extending its network’s reach. By 31 March 2024, the Emirates network comprised 151 destinations across six continents, including 10 cities served by its freighter fleet only.

Emirates brought its flagship A380 and popular Premium Economy product to even more cities this year, as 16 more aircraft rolled out of its US$2 billion cabin retrofit programme, fully refurbished with the airline’s latest signature products. As of 31 March 2024, the Emirates A380 served 49 destinations, and customers could enjoy Emirates’ Premium Economy experience to and from 15 cities around the world.

Total fleet count at the end of March was 260 units, with an average fleet age of 10.1 years.

Emirates’ order book stands at 310 aircraft, after it announced orders worth US$58 billion combined, for 110 additional units of Boeing 777s, 787s, and Airbus A350s at the 2023 Dubai Airshow. These new generation widebody aircraft will replace older jets and support fleet growth, aligning with the airline’s long-standing commitment to fly modern aircraft that are efficient to operate, and able to offer customers the latest inflight comforts and experiences.

 Emirates SkyCargo reaffirmed its position in global air logistics and trade, carrying 2.2 million tonnes of goods around the world in 2023-24, up 18 percent from the previous year. Despite continued challenges in global logistics, the cargo division reported a solid revenue of Dh13.6 billion (US$3.7 billion), contributing 11 percent to the airline’s total revenue. Cargo yield per Freight Tonne Kilometre (FTKM) declined by 32 percent, returning to pre-pandemic marketplace levels.

At the end of 2023-24, Emirates’ SkyCargo’s total freighter fleet stood at 11 Boeing 777Fs. The cargo division expects delivery of its 5 additional Boeing 777Fs on order from mid-2024.

Emirates Flight Catering hit record revenues of Dh970 million (US$264 million) from its external customers, driven by traffic growth at Dubai’s airports. It supplied 76.9 million meals to airline customers, 19 percent more than the previous year, and saw rising demand for its other ancillary businesses including at Linencraft, its laundry facility which primarily serves airline and hospitality clients.

MMI/ELR revenue surged 18 percent to Dh2.9 billion (US$796 million), as it expanded UAE operations to meet growing wholesale and retail demand driven by the booming tourism sector. ELR recorded record sales growth globally, with strong contributions from its key markets of the UAE, the US and Australia.

Emirates’ hotels portfolio revenue over last year decreased by 2 percent to Dh660 million (US$180 million), reflecting the temporary closure of its Wolgan Valley resort in Australia.

With another year of strong performance, Emirates continued to meet all its regular aircraft-related payment obligations and repaid an additional Dh2.2 billion (US$596 million) from the Dh17.5 billion (US$4.8 billion) borrowed during the COVID-19 crisis. This substantially reduced its overall outstanding debt profile and places the airline on a strong foundation for financing for its future growth and the new fleet acquisition programme.

Emirates closed the financial year with its highest-ever level of cash assets at Dh42.9 billion (US$11.7 billion), 15 percent higher compared to 31 March 2023.

Sheikh Ahmed said: “We enter our 2024-25 financial year on strong foundations for continued growth. Emirates will receive delivery of 10 new A350 aircraft in 2024-25, adding to our fleet mix and supporting the next phase of its network growth. Dnata will continue to leverage synergies and scale across its business divisions to grow its footprint and capabilities. In tandem, we are investing resources to minimise our environmental impact, develop our people, look after our customers and the communities we serve.

“The business outlook is positive, and we expect customer demand for air transport and travel to remain strong in the coming months. As always, we will keep a close watch on costs and external factors such as oil prices, currency fluctuations, and volatile environments caused by socio-political changes. Our business model has been tested before, and I am confident in our resilience and ability to respond quickly to opportunities and challenges.

“Looking further ahead, the Dubai government has announced plans to start the next phase of expansion at Al Maktoum International Airport, which will eventually be the new hub for Emirates and dnata’s operations. This Dh128 billion (US$35 billion) investment will significantly expand and enhance Dubai’s aviation and logistics infrastructure, supporting the city’s growth, and Emirates’ and Dnata’s growth.

Dnata

Emirates Group’s ground handling and ticketing arm, Dubai National Air Travel Agency (Dnata) increased its profit by 330 percent to Dh1.4 billion (US$387 million) in 2023-24, reporting solid results across its business divisions.

Dnata’s total revenue increased by 29 percent to hit a new record of Dh19.2 billion (US$5.2 billion), driven by increased flight and travel activity across the world. Dnata’s international businesses account for 75 percent of its revenue, an increase of 3 percentage pts from the previous year. Through the year, Dnata won new customer contracts across its divisions, and worked closely with its customers to support increased flight activity and travel demand especially in its major markets: Australia, Europe, the UAE, UK, and US.

Laying the foundations for future growth, Dnata’s investments in 2023-24 amounted to Dh464 million (US$126 million). Significant investments during the year included: new electric and hybrid ground support equipment for its airport operations as part of its environmental strategy, and the expansion of marhaba operations in the Philippines, Italy, and the UAE.

In 2023-24, Dnata’s operating costs increased by 22 percent to Dh17.8 billion (US$4.8 billion), in line with expanded operations in its Airport Operations, Catering & Retail, and Travel divisions, as well as continued inflationary pressure across all markets mainly for labour and food supply.

Dnata’s cash balance declined by Dh958 million to Dh4.2 billion (US$1.1 billion), primarily due to Dh2 billion (US$545 million) in dividend payments to its owner, ICD, plus the funding of investments and debt repayments. The business saw a positive operating cash flow of Dh1.9 billion (US$507 million) in 2023-24, a reflection of the substantial improvements in revenue.

Revenue from dnata’s Airport Operations, including ground and cargo handling increased to Dh8.8 billion (US$2.4 billion).

The number of aircraft handled by Dnata globally grew by 9 percent to 778,026; and cargo handled increased by 5 percent to 2.9 million tonnes, reflecting new contracts won, and increased flight activity by dnata’s airline customers across markets.

 Dnata’s Catering & Retail business accounted for Dh6.5 billion (US$1.8 billion) of Dnata’s revenue, up by 35 percent. The inflight catering business uplifted 123.0 million meals to airline customers, a 10 percent increase from last year, as its airline customers across the world restored and expanded their flight operations.

 Revenue from Dnata’s Travel Services division grew by 48 percent to Dh3.5 billion (US$951 million), with strong contributions from Destination Asia, its destination management business in Asia, and Imagine Cruising, a cruise holidays business in which Dnata has acquired a majority stake.  Total transaction value (TTV) of travel services sold increased by 27 percent to Dh8.9 billion (US$2.4 billion), reflecting the division’s ability to deliver relevant products to meet strong demand globally.

The article Emirates Reports 71% Jump in Profits to $5.1 billion appeared first on Arabian Post.

By Saifur Rahman

Dubai Government will invest Dh128 billion (US$34.87 billion) in developing the world’s largest airport terminal at Al Maktoum International Airport, part of the 140-square km Dubai South Aerotropolis, which has a design-built capacity to handle 260 million passengers per annum.

Al Maktoum International Airport will cover 70 square kilometres, or half of the 140-square kilometre Dubai South, which is ten times the size of the existing Dubai International Airport. The airport will be able to handle 12 million tonnes of cargo per annum. The first phase of the airport development will be completed in ten years.

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, reviewed the strategic plan of the Dubai Aviation Engineering Projects and approved designs for the new passenger terminal at Al Maktoum International Airport, which will be the largest in the world when fully operational. Set to be built at a cost of Dh128 billion (US$34.87 billion), the new terminal will ultimately enable the airport to handle a passenger capacity of 260 million annually, Dubai Government said in a statement.

When completed, it will also become the world’s largest Aerotropolis, or airport city that will host hundreds of residential and commercial towers, a large logistics base, Dubai Aviation City, a golf course and golf community, Dubai Exhibition City, as well as Expo2020 City, among other facilities. Once completed, together with Jebel Ali Port and Jebel Ali Free Zone, Al Maktoum International Airport and Dubai World Central will create the world’s largest sea-to-air logistics corridor and reinforce Dubai’s position as the largest regional supply chain hub.

The announcement comes within two weeks of the devastating storm and record rainfall that badly affected the existing Dubai International Airport – the world’s 2nd largest airport – disrupting more than 1,200 flights in a day when stormwater submerged the airport runways and taxi-ways. The airport, however, was re-opened within two days.

The approval came during His Highness Sheikh Mohammed’s visit to the Dubai Aviation Engineering Projects, accompanied by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, and Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance.

Sheikh Mohammed said: “Al Maktoum International Airport will enjoy the world’s largest capacity, reaching up to 260 million passengers. It will be five times the size of the current Dubai International Airport, and all operations at Dubai International Airport will be transferred to it in the coming years. The airport will accommodate 400 aircraft gates and feature five parallel runways. New aviation technologies will be employed for the first time in the aviation sector.

“As we build an entire city around the airport in Dubai South, demand for housing for a million people will follow. It will host the world’s leading companies in the logistics and air transport sectors. We are building a new project for future generations, ensuring continuous and stable development for our children and their children in turn. Dubai will be the world’s airport, its port, its urban hub, and its new global centre.”

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Aviation City Corporation, President of Dubai Civil Aviation Authority, Chairman and CEO of Emirates Airline and Group, said, “It is expected that the first phase of the project will be ready within a period of 10 years, with a capacity to accommodate 150 million passengers annually.

“The new airport, which will ultimately be over five times the size of Dubai International, will prepare the ground for the next 40 years of anticipated growth in Dubai’s aviation sector. It will respond to the Hub Airline ambitious plans in terms of fleet acquisition and passenger growth. The airport will provide cutting-edge technologies, passenger facilities with unmatched level of service, and state-of-the-art aviation support facilities.

“Al Maktoum International (AMI) is planned in such a way as to represent a leap into the future. It will comprise of five parallel runways with a quadruple independent operation, west and east processing terminals, four satellite concourses with over 400 aircraft contact stands, uninterrupted automated people mover system for passengers, and an integrated landside transport hub for roads, Metro, and city air transport.

“While embracing sustainability, Al Maktoum International will strongly contribute to mitigate environmental emissions, aligning with the UAE’s vision for a sustainably built environment. Its integrated approach is targeted to leverage local resources and climatic conditions achieving exemplary efficiency targets and sustainability goals. AMI aims to achieve a LEED Gold Certification.”

Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation, highlighted the economic benefits of the project. “The development of this new airport will be an integral part of Dubai’s economy and major contributor to the Dubai Economic Agenda (D33). It will generate estimated workforce and residential requirement for over a million people living and working in Dubai South (the aerotropolis), which has been under development and operation since 2007,” he said.

Paul Griffiths, CEO of Dubai Airports, the operating company for both the airports in Dubai, said, “The growth of Dubai has always been hand in hand with the growth of its aviation infrastructure and today we see another bold step on that journey.

“The announcement of phase two of Al Maktoum International Airport’s expansion, representing a substantial investment of Dh128 billion, marks the start of a huge investment of resources by our many stakeholders in designing and building a state-of-the-art airport that will provide a quick, convenient, and high quality 21st century experience for our customers. This further solidifies Dubai’s position as a leading aviation hub on the world stage.

“DXB will continue to serve as the primary hub, meeting the needs of 100 million plus guests over the next few years as phase two of DWC takes shape.”

The article Dubai to invest Dh128 bn in Phase II of Al Maktoum International Airport appeared first on Arabian Post.

By Saifur Rahman

The number of mainland business license in Dubai jumped 26.8 percent to 217,788 companies in 2023, according to Dubai Chambers.

 “[The year] 2023 has been another year of landmark achievements for Dubai Chambers in which we furthered our commitment to serving our members’ interests. The record growth in the number of new member companies is a testament to our success in enhancing the competitiveness of the business community,” Abdul Aziz Abdulla Al Ghurair, Chairman of Dubai Chambers, said.

“Supporting the private sector remains a key priority for Dubai Chambers as part of our drive to achieve the wise leadership’s vision to advance sustainable development and achieve the objectives of the Dubai Economic Agenda (D33).”

 Around 67,222 new companies were formed in Dubai emirate with license issued by the Dubai Economy and Tourism (DET) – the mainland business licensing and regulatory authority of the Government of Dubai. The emirate also has more than 20 economic or free zones each with separate licensing and business registration arms who collectively host nearly 100,000 businesses.

 “This growth is like-for-like growth and we haven’t added any data from the free zones,” Al Ghurair, said responding to a question from The Arabian Post, at a press conference held at the Dubai Chambers today.

 “Investors from the traditional markets such as India, Pakistan and other countries have established the new businesses.”

 With more than 350,000 active businesses, Dubai emerges as one of the biggest business hubs in the world with a very high business-to-population ratio in a city inhabited by nearly 3.5 million people. This translates to 1 active business per 10 people living in the emirate.

 Dubai Chambers – the umbrella establishment of three chambers – Dubai Chamber of Commerce and Industry, Dubai International Chamber and Dubai Chamber for Digital Economy – recorded a 4.3 percent increase in the issuance of Certificate of Origin worth Dh284.5 billion in export last year.

 The UAE has signed Comprehensive Economic Partnership Agreement (CEPA) with 20 countries including India, Indonesia and Israel that is helping trade to grow with these countries. Sultan Ahmed bin Sulayem, Chairman of Dubai International Chamber, urged UAE exporters to take advantage of the CEPA by increasing exports to these countries.

 “Exporters from those countries with whom we signed CEPA agreements are taking advantage by increasing their exports to the UAE, which is a good thing,” Bin Sulayem said. “However, our traders are not taking advantage of the benefits and opportunities from the CEPA. I urge them to increase exports to these countries from the UAE and take advantage from the opportunities.”

 The number of Certificate of Origin grew 1.3 percent to 735,155 issued to 13,660 exporters, said Mohammed Ali Rashid Lootah, President and CEO of Dubai Chambers.

Dubai Chamber announced the establishment of 76 new sector-specific Business Groups in 2023, bringing the total number to 105. A combined total of 145 meetings were also held with Business Groups and Councils. The chamber’s Business Advocacy sector reviewed a total of 111 laws and draft laws in cooperation with Business Groups, with the resulting recommendations achieving an adoption rate of 53 percent. Dubai Chamber of Commerce also received 141 mediation cases with a combined value of around Dh49.6 million, with 75 percent of the cases successfully settled.

“We are committed to open international offices of Dubai Chamber in 50 cities in the world. Last year we opened 16 new offices in key markets where two-way trade is growing. We currently have international offices in 31 countries,” Mohammed Ali Rashid Lootah said.

“Dubai Chambers has successfully achieved many of its strategic objectives, despite the global climate of economic uncertainty. We are committed to strengthening partnerships between the public and private sectors and driving economic growth while focusing on the interests of our members and businesses in Dubai. This year, we will continue to work closely with our partners to support the emirate’s dynamic business community through impactful initiatives, programmes, and services.”

The article Dubai continues to attract investment from South Asian countries appeared first on Arabian Post.

Saifur Rahman

Emirates Airline, the world’s largest international airline, placed firm orders for 95 additional wide-body aircraft worth US$52 billion (Dh190 billion) at list price, taking its total order book to 295 aircraft. Emirates has also updated its previous order of 30 Boeing 787-9s, increasing its commitment to a total of 35 Dreamliners comprising: 15 Boeing 787-10s, and 20 Boeing 787-8s.

“Already the world’s biggest operator of wide-body passenger aircraft, Emirates has committed to additional Boeing 777-9s, 777-8s, and 787s, worth US$ 52 billion, to power its growth plans, maintain a modern efficient fleet, and deliver the best flying experience to its customers,” the airline said in a statement during the signing of the aircraft order.

The announcement was made at a crowded press conference on the first day of Dubai Airshow 2013 comes a few days after the airline’s parent company Emirates Group announced record US$2.7 billion (Dh10.1 billion) net profits for the first half of the 2023-2024 financial year. The deal reflects the airline’s growing confidence in the global aviation market growth and its current orderbook is expected to support the airline’s growth till 2035.

Middle Eastern airlines posted a 27.3 percent increase in August traffic compared to a year ago, according to the International Air Transport Association (IATA). Capacity rose 22.7 percent and load factor climbed 3.0 percentage points to 83.1 percent, it said.

In the presence of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council,  Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, UAE Deputy Prime Minister and Minister of Finance, and Deputy Ruler of Dubai and Sheikh Mansour bin Mohammed bin Rashid Al Maktoum, Chairman of the Dubai Sports Council; the orders were signed by  Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group; with Stan Deal, President and CEO of Boeing Commercial Airplanes; and Larry Culp, Chairman and CEO for GE, and CEO of GE Aerospace.

Sheikh Ahmed said: “From day 1, Emirates’ business model has been to operate modern and efficient wide-body aircraft capable of carrying large numbers of travellers comfortably and safely, over long distances to and via Dubai. Today’s aircraft orders reflect that strategy. These additional aircraft will enable Emirates to connect even more cities, supporting the Dubai economic agenda D33 set out by HH Sheikh Mohammed bin Rashid Al Maktoum, to add 400 cities to Dubai’s foreign trade map over the next decade. By the early 2030s, we expect the Emirates fleet to be around 350-strong, connecting Dubai to even more cities around the world.

“Emirates is the biggest operator of Boeing 777 aircraft, and today’s order cements that position. We’ve been closely involved in the 777 program since its start up until this latest generation of 777X aircraft. The 777 has been central to Emirates’ fleet and network strategy of connecting cities on all continents non-stop to Dubai. We are pleased to extend our relationship with Boeing and look forward to the first 777-9 joining our fleet in 2025.”

Aviation plays a key role in socio-economic development by attracting foreign investment, supporting international trade and tourism, and creating jobs. In the Asia-Pacific, it contributed $1 trillion (3.3% of GDP) and employed 56 million people, while in the Middle East, the sector generated $260 billion (9.5% of GDP) and employed 4.6 million, according to Airports Council International (ACI).

“Regression analysis confirms a correlation between GDP and seat capacity. Specifically, a 10 percent increase in seat capacity is linked to short-term GDP growth of 3 to 3.8 percent in the Asia-Pacific and 6.4 percent in the Middle East,” according to an ACI report.

Emirates, already the world’s largest operator of Boeing 777 aircraft, has signed firm orders for 55 additional 777-9s and 35 777-8s. This takes the airline’s 777-X order book to a total of 205 units. The Dubai Government-owned airline also confirmed an order of 202 GE9X engines to power the additional 777X aircraft ordered, taking its total GE9X engine order to 460 units.

From its previous order of 115 units, the first 777-9 is expected to join Emirates’ fleet in 2025. Today’s additional orders mean Emirates will induct new 777-9s to its fleet until 2035. With this latest order, Emirates is also set to be one of the launch customers of the 777-8 passenger variant, with first deliveries expected in 2030.

Stan Deal, President and CEO of Boeing Commercial Airplanes, said, “This order is an incredible vote of confidence in the efficiency and versatility of the 777X family to meet Emirates’ needs for global long-haul travel. The 777-9 and 777-8 are the perfect airplanes to support Emirates’ growth plans, improving environmental performance and unmatched payload capability.”

The 777 remains the backbone of Emirates’ operations, capable of missions of up to 18 hours that enable the airline to connect Dubai non-stop to cities on six continents. The new 777-9s and 777-8s will replace Emirates’ retiring 777 aircraft, and provision for the airline’s future growth plans.

The article Emirates places orders for 95 Boeing 777s and 787s worth $52 billion appeared first on Arabian Post.

The Dubai-based state-owned budget carrier, Flydubai signed an agreement with Boeing Commercial Airplanes to purchase 30 Boeing 787-9 Dreamliners, worth US$11 (billion Dh41 billion) at list price, as the airline diversifies its fleet with the introduction of wide-body aircraft. This is the first order for wide-bodied aircraft by Flydubai.

Inducting wide-bodied aircraft will help Flydubai to carry more passengers per flight and could offer better discount per seat on certain high-traffic routes. The decision to introduce wide-bodied aircraft will significantly boost the airline’s capacity to fly to key hub airports such as London, Paris and other key European and Asian destinations, according to aviation analysts.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of flydubai, said: “In 2008 when we placed our first ever order for 50 Boeing 737 aircraft, we were confident of the vital role Flydubai would play in supporting Dubai’s aviation hub. I am proud today to see flydubai evolve further, surpassing labels and challenging the traditional conventions around travel. Today’s order reaffirms flydubai’s commitment to enabling more people to travel across its expanding network. The highly fuel-efficient Boeing 787 Dreamliner will allow Flydubai to expand its horizon and cater to the growing demand on existing routes.”

This is the fourth aircraft order placed by the carrier since it was founded in 2008; building on the success of its business model. Flydubai is currently evaluating engine options for its first Dreamliner order.

Ghaith Al Ghaith, Chief Executive officer of Flydubai, said:“Innovation is at the heart of everything we do at Flydubai. We are committed to offering the right product at the right time to cater to the changing market and customer needs. The Boeing 787 Dreamliner offers a perfect combination of operational excellence, fuel efficiency as well as passenger appeal.”

The Boeing 787-9 aircraft can offer seating for more than 290 passengers and has a range of 14,010 km (7,565 nautical miles) in addition to added cargo capacity. Since revenue service began in 2011, the 787 family has operated on more than 380 new nonstop routes around the world. Half of all scheduled 787 Dreamliner flights are operated in short- and medium-haul markets below 5,000 kilometres (2,700 nautical miles), demonstrating its versatility and efficiency across all network segments.

According to Boeing’s Commercial Market Outlook, the Middle East fleet is projected to more than double over the next 20 years. Nearly half of these deliveries will be wide-body aircraft, driven by the region’s growing position as a global aviation hub.

Stan Deal, president and CEO of Boeing Commercial Airplanes, said: “The 787-9 is perfectly suited for the needs of Flydubai as it looks to open up new, longer-range routes and add capacity across its network. Flydubai passengers will enjoy the Dreamliner effect, an experience like no other in the air, flying with more comfort and arriving to their destinations feeling more refreshed. We are proud of the confidence that flydubai continues to place in our products with an all-Boeing fleet. We look forward to further strengthening this partnership and to seeing our 787-9 Dreamliners play a central role in Flydubai’s strategic expansion plans.”

Flydubai currently operates an efficient single fleet-type of 80 Boeing 737 aircraft and includes: 30 Next-Generation Boeing 737-800, 47 Boeing 737 MAX 8 and 03 Boeing 737 MAX 9 aircraft. The airline has an order backlog of more than 130 Boeing 737 MAX aircraft to be delivered by 2035. The carrier has built a network of more than 120 destinations in 54 countries spanning from Europe to South-East Asia.

The article Flydubai places US$11 billion order for 30 Boeing 787 Dreamliners appeared first on Arabian Post.

Saifur Rahman, Executive Editor

State-owned Emirates Group — which includes Emirates Airline, the world’s biggest carrier of international passengers and its ticketing and ground handling subsidiary Dnata, reported a 138 percent jump in profits to a record Dh10.1 billion (US$2.7 billion), for the first half of the 2023-2024 financial starting from April 2023 till September 30, 2023, compared to Dh4.2 billion (US$1.2 billion) reported for the corresponding period last year, driven by strong demand for international passengers globally.

Emirates Group revenue increased 20 percent to Dh67.3 billion (US$18.3 billion) for the first six months of 2023-24, up from Dh56.3 billion (US$15.3 billion) last year.

Of this, Emirates Airline reported 134 percent jump in net profits to Dh9.4 billion (US$2.6 billion), up from Dh4 billion (US$1.1 billion) on Dh59.5 billion (US$16.2 billion) revenue that was up 19 percent compared with the Dh50.1 billion (US$13.7 billion) in the corresponding period last year.

“The airline’s record performance is attributable to the strong passenger demand for international travel across markets and Emirates’ ability to activate capacity to match demand; and offer customers great value and services,” the airline said in a statement.

Overall profit for Dubai National Air Travel Agency (Dnata) jumped 200 percent to Dh709 million (US$193 million), compared to same period last year’s Dh236 million (US$64 million). Dnata’s revenue, including other operating income, of Dh9.3 billion (US$2.5 billion) increased by 27 percent compared to Dh7.3 billion (US$2.0 billion) generated in the same period last year.

Emirates Group and Airlines first-half results echo the assessment of the International Air Transport Association (IATA) made recently about the resurgence of air travel worldwide.

IATA recently said, “The industry is returning to profitability in 2023, only three years after the historic loss of US$140 billion in 2020. Total airline revenue is expected to recover to around 93 percent of the 2019 figure, with operating profits reaching US$22.4 billion. The net profit forecast for this year is US$9.8 billion, and the net margin a slim 1.2 percent. This equates to US$2.25 per passenger.

“Overall, this performance shows how resilient the industry is, being able to bounce back so rapidly from a near total halt. It does, however, also show that robustness could be improved, in the interest of stronger balance sheets and safer profit margins.”

Looking forward, the demand for air travel is expected to double by 2040, growing at an annual average rate of 3.4 percent. Origin-destination passengers are projected to increase from around 4 billion in 2019 to just over 8 billion at the end of the forecast horizon, IATA said.

Emirates Group also reported Earnings Before Interest, Tax, Debt and Amortisation (EBITDA) of Dh20.6 billion (US$5.6 billion), a significant improvement from Dh15.3 billion (US$4.2 billion) during the same period last year, illustrating its strong operating profitability.

Emirate’s Group’s cash position at the end of September 30, 2023, rose marginally to Dh42.7 billion (US$11.6 billion), compared to Dh42.5 billion (US$11.6 billion) on 31 March 2023. The Group has been able to tap on its own strong cash reserves to support business needs, including debt payments. So far, Emirates has repaid Dh9.2 billion of its COVID-19 related loans. The Group also paid Dh4.5 billion in dividend to its owner, as declared at the end of its 2022-23 financial year.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: “We are seeing the fruition of our plans to return stronger and better from the dark days of the pandemic. The Group has surpassed previous records to report our best-ever half-year performance. Our profit for the first six months of 2023-24 has nearly matched our record full year profit in 2022-23.

“This is a tremendous achievement that speaks to the talent and commitment within the organisation, the strength of our business model, and power of Dubai’s vision and policies that has enabled the creation of a strong, resilient, and progressive aviation sector.

“Across the Group, we’ve continued to ramp up operations safely and move nimbly to meet customer demand. We’ve implemented a series of service and product enhancements to win customer preference, and we’ll continue to invest in our people, products, partnerships, and technology to strengthen our capabilities and ensure we are future ready.”

Driven by strong demand and increased operations during the six months, Emirates’ EBITDA grew by 33 percent to Dh19.5 billion (US$5.3 billion) compared to Dh14.7 billion (US$4.0 billion) for the same period last year.

Emirates Airline said, it continued to increase its global flight operations, adding capacity and connections through its Dubai hub to meet customer demand across markets. During the first half of 2023-24, the airline restored A380 operations to Bali, Beijing, Birmingham, Casablanca, Nice, Shanghai, and Taiwan. In July, it launched daily non-stop services to Montreal, a new destination and the airline’s second gateway in Canada.

Expanding connectivity options for customers, Emirates entered and enhanced codeshare or interline agreements with 8 airlines in the first six months of 2023-24: Aegean Airlines, Air Canada, Etihad Airways, Kenya Airways, Philippine Airlines, Maldivian, Sri Lankan Airlines, and United Airlines. The codeshare partnership between Emirates and Qantas, which has seen over 15 million travellers benefit from joint flight itineraries since its establishment in 2013, received approvals for a further 5-year extension until 2027.

By 30 September, the airline was operating passenger and cargo services to 144 airports, utilising its entire Boeing 777 fleet and 104 A380s. During the first six months of 2023-24, 10 A380 aircraft rolled out of Emirates’ retrofit programme with completely refreshed cabin interiors and latest onboard products including Premium Economy seats. This enabled the airline to deploy its highly sought-after Premium Economy services on more new routes including New York JFK, Houston, San Francisco, Los Angeles, and Singapore.

Emirates carried 26.1 million passengers between 1 April and 30 September 2023, up 31 percent from the same period last year. Emirates Skycargo uplifted 1,035,000 tonnes in the first six months of the year, an 11 percent increase compared to the same period last year despite an overall softening in the global cargo market.

Emirates’ direct operating costs (including fuel) grew by 9 percent in line with increased operations. Fuel remains the largest component of the airline’s operating cost (34%), compared to 38 percent in the same period last year.

Dnata continued to ramp up operations across its cargo and ground handling, catering and retail, and travel services businesses. This drove strong revenue growth in the first six months of 2023-24.

In the first half of 2023-24, Dnata’s catering and airport services won significant new contracts and grew existing customers across its international operations. This shows Dnata’s ability to serve the growing operations of airline customers, and deliver high quality products and services despite lingering operational challenges in many markets such as a shortage of skilled workforce, supply chain issues, and inflationary pressures.

Dnata also continued to make strategic investments in its business and implement innovative technology and other initiatives to better respond to customer needs. Highlights in the first half of 2023-24 include: the acquisition of an additional 29 percent stake in Imagine Cruising, bringing to 81.4 percent its shareholding in UK’s leading cruise and stay holiday distributors; the implementation of AI-powered solutions to enhance Dnata’s cargo handling operations and capabilities in Singapore; and the switch to a biofuel blend for road transport vehicles in the UAE used by Dnata Logistics, Arabian Adventures, Alpha Flight Services, and City Sightseeing to reduce emissions and address rising customer expectations for transport options with lower environmental footprint.

Dnata’s airport operations remains the largest contributor to revenue with Dh4.1 billion (US$1.1 billion), an 18 percent increase compared to the same period last year, as its airline customers’ operations continued to pick up particularly in Australia, Singapore, UK, and the UAE.  Across its operations, the number of aircraft turns handled by dnata increased by 11 percent to 384,656, and it handled 1.3 million tonnes of cargo, down by 5 percent reflecting further softening of the global air freight market after a pandemic-driven surge.

Dnata’s flight catering and retail operations, contributed Dh3.5 billion (US$942 million) to its revenue, up 45 percent with strong production increases in Australia, Italy, UK, and the US to meet customer demand. The number of meals uplifted increased by 31 percent to 66.3 million meals compared to last year’s 50.5 million meals.

Dnata’s travel division contributed Dh1.4 billion (US$375 million) to revenue, up 16 percent compared to Dh1.2 billion (US$ 323 million) for the same period last year. Dnata saw strong contributions from Destination Asia, its destination management business in Asia; and from its cruise holidays business, Imagine Cruising, in which Dnata has acquired controlling interest. The division reported an underlying total transactional value (TTV) sales of Dh4.0 billion (US$ 1.1 billion), compared to Dh3.5 billion (US$960 million) for the same period last year.

Sheikh Ahmed added: “For the second half of 2023-24, we expect customer demand across our business divisions to remain healthy and we will stay agile in how we deploy our resources in this dynamic marketplace. At the same time, we are keeping a close watch on headwinds such as rising fuel prices, the strengthening US dollar, inflationary costs, and geo-politics.”

Emirates Group – Half year results 2023-24 highlights

     Group

               Emirates

     dnata

The article Emirates Group reports record profits of $2.7 billion appeared first on Arabian Post.

By Saifur Rahman
The UAE Government revenue is expected to decline from Dh661.7 billion in 2022 to Dh623.8 billion this year, while the expenditure is slated to rise from Dh490.7 billion in 2022 to Dh524.6 billion this year, the International Monetary Fund (IMF) said in a latest report.

The UAE economic growth rate is expected to decline to 3.6 percent this year, down from 6.9 percent in 2022, IMF report said.

Revenue from taxes is expected to increase from Dh 332.4 billion in 2022 to Dh311.6 billion this year, the report shows. Government employees’ salaries and compensation made up the largest expenditure component of Dh130 billion last year that is set to grow to Dh132.6 billion this year.

“The economic outlook remains positive, supported by strong domestic activity. Overall GDP is projected to grow at 3.6 percent in 2023, with non-hydrocarbon growth of 3.8 percent driven by continued tourism activity and increased capital expenditure. Nevertheless, the outlook is subject to significant global uncertainties, including weaker growth, tighter financial conditions, and geopolitical developments. The implementation of enhanced UAE reform efforts poses upside risks to medium-term growth. Strong reform efforts continue under the UAE 2050 strategies,” IMF said in its 2022 Article IV Consultation – an annual assessment on the UAE economy.

UAE’s Government-Related Entities (GREs) have about $33 billion in bonds and loans maturing in 2023 and 2024 as well as $84 billion in following years. “In addition, GREs’ borrowing from banks has been robust, increasing around 16 percent y/y in October 2022. While some GREs will benefit from higher growth and oil inflows, debt servicing costs will rise with higher interest rates, increasing balance sheet strains,” it said.

According to the Article IV Consultation documents, Dubai Governments total debt stands at US$59.12 billion of which US$14.52 billion is due for maturity this year. With US$ 42.90 billion owed by Dubai GREs, the emirate’s total debt stands at US$132.10 billion, while the total amount of debt owed by Abu Dhabi Government and its GREs stands at US$131.38 billion.

“UAE economic growth strengthened in 2022, benefitting from a rapid and effective COVID response, supportive fiscal measures, and the benefits of earlier social and business-friendly reforms. Overall growth is expected to reach 6.9 percent in 2022, with non-hydrocarbon GDP growth of 5.3 percent and hydrocarbon GDP is expected to grow by 11.1 percent in 2022, following the OPEC+ agreement.”

Inflation has risen with global trends but is expected to ease to 3.4 percent in 2023. Fiscal and external surpluses are expected to remain high on the back of elevated oil prices. Banks are adequately capitalized and liquid overall, but nonperforming loans remain elevated, albeit down from recent peaks, and real estate prices have risen sharply in some segments. Major efforts have been advanced under the National AML/CFT Strategy and Action Plan to further strengthen the regulatory regime to ensure its effectiveness, in line with the enhanced monitoring under the Financial Action Task Force recommendations.

Advancement on Comprehensive Economic Partnership Agreements (CEPAs) will boost trade and integration in global value chains and further attract Foreign Direct Investment (FDI). In addition, the benefits of artificial intelligence and digitalisation and investments in enabling infrastructure will further support economic diversification, foster a smooth energy transition, and help address vulnerabilities from global decarbonization efforts. Long-term vulnerabilities from global decarbonization efforts are being addressed through commitments to climate initiatives and a balanced approach to energy transition, it said.

The article UAE economic growth to decline to 3.6%, says IMF appeared first on Arabian Post.

By Saifur Rahman

Investment Corporation of Dubai (ICD), an investment arm of Dubai Government whose portfolio includes Emirates Airline and Group, FlyDubai, Emirates NBD Bank, Dubai Islamic Bank, Commercial Bank of Dubai, Ithra, Dubai Duty Free and other important assets, reported a 58 percent jump in revenue exceeding Dh267.4 billion (US$72.86 billion) in 2022, up from Dh98 billion (US26.7 billion) in 2021 with a record net profit of Dh36.1 billion.

The net profit attributable to the equity holder was Dh29.8 billion (US$8.11 billion). All business segments contributed to this remarkable achievement.

This is boosted by Emirate’s NBD bank’s net profit of Dh13 billion, Dubai Islamic Bank’s Dh5.6 billion net profit and Emirates Group’s record profit of Dh10.9 billion (US3 billion), reported by Emirates Group earlier this month – that make up the bulk of the Dh36.1 billion net profit. For the financial year ended 31 March 2023, the Emirates Group posted a record profit of Dh10.9 billion (US$3.0 billion) compared with an Dh3.8 billion (US$1.0 billion) loss for last year, Emirates Group said in a statement issued earlier.

Credit rating agency Standard & Poor’s (S&P) Global projected that Dubai’s real gross domestic product (GDP) will expand by about 3 per cent in 2023, driven by the city’s relatively well-diversified and service-oriented economy. Dubai has been repaying its debt, including $2.9bn in bonds from 2020 to first-quarter 2023 and reduced its loans from Emirates NBD by 30 per cent over the same period.

“We forecast a reduction in government debt to about 51 per cent (US$66 billion) of GDP in 2023 from a cyclical high of 78 percent in 2020,” said S&P Global.

The components of S&P Global’s gross general government debt estimate for 2023 include 44 per cent in loans from Emirates NBD, US$20 billion in loans extended by Abu Dhabi and the Central Bank of the UAE in the wake of the 2009 financial crisis and outstanding securities issued by the government, and other bilateral and syndicated facilities.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Fiscal Committee, Chairman and Chief Executive, Emirates airline and Group, said, “The [Emirates] Group is the biggest player in the UAE’s aviation sector, which supports over 770,000 jobs and generates an estimated contribution to GDP of over US$47 billion (Dh172.5 billion). With our growth plans, and in line with the Dubai Economic Agenda D33, we expect to significantly increase our contribution to the UAE’s GDP over the next decade through direct and indirect employment, supply chain spending, tourism spend, and trade and commerce benefits from the movement of cargo.

“In 2022-23, we’ve not only brought back most of our operations but also grew our footprint and capabilities by investing in people, product, and new technologies – demonstrating our agility and ability. We continue to lay strong foundations for future success and join hands with partners to grow our business and to collaborate on innovative solutions for travel and aviation. As our business expands, so does our ability to make a positive impact on the communities we serve. We are steadfast in our commitment to deliver value to our customers and stakeholders while minimising our environmental impact.

“We go into 2023-24 with a strong positive outlook and expect the Group to remain profitable. We will work hard to hit our targets while keeping a close watch on inflation, high fuel prices, and political and economic uncertainty.”

Assets grew 6.9 per cent reaching a record Dh1.17 trillion supported by the much higher level of activity overall. Liabilities increased to Dh908.1 billion, whilst borrowings and lease liabilities declined 9 per cent. The Group’s share of equity increased by 13.6 per cent rising to a new record of Dh216.5 billion.

“Revenues reached a record Dh267.4 billion, up 58 per cent with an increase of Dh98 billion compared to the prior year period, due to a significant surge in travel and tourism activities reflected in the Transportation and other segments, and a jump in Oil & Gas revenues on much higher oil prices. Overall, revenues grew faster than operational costs, boosting margins,” a statement said.

The Group reported a record net profit of Dh36.1 billion, with Transportation returning to profitability in an impressive turnaround, Oil & Gas increasing its profit by 82 per cent, and the Other segment up by 115 per cent buoyed by strong fundamentals in the real estate and hospitality sectors and record earnings from aluminium production. Banking and Financial Services, the largest contributor this year, generated Dh15.3 billion net profit.

Mohammed Ibrahim Al Shaibani, Managing Director, Investment Corporation of Dubai, commented: ”The Investment Corporation of Dubai announced today record revenues, earnings, assets and equity for the year 2022, a truly exceptional achievement with improvements seen across all businesses. With the strong momentum in the Dubai economy, the ICD Group was able to further deploy its operational capacity in an agile manner and benefited both from a scale effect and a strong discipline on costs, producing its best ever performance.

“The Group’s balance-sheet ended the year in a very favourable position, with improved asset quality, liquidity and leverage and a record equity base.

Overall, the Group emerges resilient and stronger than ever from a volatile period marked by geopolitical conflicts and rising interest rates , and I am confident that our businesses will carry on building on these strengths to weather the uncertain global economic outlook as well as seize opportunities and conquer new markets.”

Shayne Nelson, Group Chief Executive Officer of Emirates NBD Bank, said, “Dubai’s economy is forecast to deliver strong growth in 2023 and the Group’s solid balance sheet is ready to support our customers and help them grow both locally and internationally.”

The article Dubai’s ICD reports Dh36.1b net profits in 2022 appeared first on Arabian Post.

By Saifur Rahman

Riyadh Air, the new Saudi Arabian carrier launched by the Public Investment Fund (PIF), said it will buy 72 Boeing 787 Dreamliners including 39 confirmed orders with 33 on options, just two days after the airline’s formal announcement.

With an average price tag of US$240 million apiece, this announcement represents a value worth US$17.28 billion at list prices. Airlines, however extracts hefty discounts on bulk purchase orders, which means the deal could be worth 30-34 percent less, depending on how the officials negotiated the purchase order.

PIF also announced that it will purchase 39 B787 Dreamliners with 10 on options for for the Kingdom’s flag carrier Saudi Arabian Airlines (Saudia), taking the total orders to 121 worth US$29 billion at list price. This marks the fifth largest commercial order by value in its history.

 “This unprecedented order for a new carrier – 39 confirmed aircraft with an option to acquire 33 additional wide-body 787-9 Dreamliner airplanes – is a strong signal of intent for Saudi Arabia to become a global aviation hub,” a statement by the PIF said. “This agreement is part of Saudi Arabia’s wider strategic plan to transform the country into a global aviation hub. In total, national carriers today announced their intent to purchase up to 121 787 Dreamliners in what will be the fifth largest commercial order by value in Boeing’s history. This will support the country’s goal of serving 330 million passengers and attracting 100 million visits by 2030.”

In terms of economic impact, in the U.S., the deal is expected to support nearly 100,000 direct and indirect jobs and more than 300 suppliers from across 38 states, including 145 U.S. small businesses, while in Saudi Arabia, the new airline is expected to add US$20 billion to non-oil GDP growth and create more than 200,000 direct and indirect jobs, PIF said in its statement.

The order also underlines the importance of Riyadh Air environmental goals as it aims to operate one of the newest and most sustainable airline fleets in the world, while intending to meet the most stringent noise regulations.

Yasir Al-Rumayyan Governor of the PIF and Chairman of Riyadh Air said: “This is a momentous day for PIF and Riyadh Air, and highlights our determination to significantly extend Saudi Arabia’s connectivity with the world. Our stated commitment is to create a world-class airline and this partnership with Boeing in building the fleet is the next step in achieving the aspirations of Saudi Arabia as a global transportation hub. We look forward to fostering strong strategic relationships within the wider aviation ecosystem as we continue to shape the new airline to become one of the leading carriers around the world.”

The new world-class airline aims to connect millions of leisure and business travelers to more than 100 destinations around the world by 2030 following this partnership with The Boeing Company. Riyadh Air will be at the cutting edge of technology enabling digital innovation at every guest touchpoint while offering an exceptional guest experience with authentic, warm Saudi hospitality at its heart.

Operating from the capital of Riyadh, a thriving international metropolis rich in history and culture with a futuristic vision embodied by Vision 2030, Riyadh Air will help enable the transformation of the capital into one of the world’s top cities economies. The city has a rich history and is home to some of the most ambitious new projects in the world, including King Salman International Airport, Qiddiya, Sports Boulevard, King Salman Park, Diriyah Gate, and the New Murabba Development. Saudi Arabia has a unique strategic geographical location that connects the three continents of Asia, Africa and Europe.

Tony Douglas, CEO of Riyadh Air, said:“The new airline reflects the ambitious vision of Saudi Arabia to be at the core of shaping the future of global air travel and be a true disrupter in terms of guest experience. Riyadh Air’s commitment to its guests will see the integration of digital innovation and authentic Saudi hospitality to deliver a seamless travel experience. By positioning the airline as both a global connector and a vehicle to drive tourist and business travel to Saudi Arabia, our new 787-9 airplanes will serve as a foundation for our worldwide operations, as we build the wider network and connect our guests to Saudi Arabia and many destinations around the world.”

As an airline that will be a global leader, Riyadh Air will equip its airplanes with the most advanced, state-of-the-art features with innovative, best-in-class cabin interiors and experiences, including next generation digital in-flight entertainment systems and connectivity solutions. The first deliveries of the widebody aircraft are scheduled for early 2025.

The establishment of Riyadh Air is in line with PIF’s mandate to unlock the capabilities of key sectors locally to drive the diversification of Saudi Arabia’s economy. The airline will also support the Saudi Aviation Strategy’s broader vision, and enable the National Tourism Strategy, unlocking Saudi Arabia’s cultural and natural attractions to international tourists and creating new jobs.

The article Riyadh Air orders 72 Boeings worth $17b appeared first on Arabian Post.

By Saifur Rahman

A new airline, Riyadh Air, will soon take off to realise Saudi Arabia’s Vision 2030, it was announced by the Public Investment Fund, Saudi Arabia’s Sovereign Wealth Fund which is injecting US$100 billion in the Kingdom’s aviation and tourism industry that will help diversify the country’s economy and reduce its dependence on hydrocarbon.

Riyadh Air will create a new passenger hub in the Kingdom’s capital city and together with the Jeddah-based national flag carrier Saudia – these two airlines will create two large aviation hubs that will help bring millions of tourists to the largest Arab economy that is injecting billions of dollars to develop its infrastructure and tourism industry.

Public Investment Fund (PIF) named Yasir Al-Rumayyan, Governor of PIF, as the airline’s Chairman and Tony Douglas, former CEO of Etihad Airways, as the CEO of Riyadh Air. Tony Douglas left Etihad Airways in October last year, after bringing the Abu Dhabi-based UAE flag carrier into profitability through a transformation programme that saw the loss-making carrier navigate through the Covid-19 pandemic and also become profitable.

The airline will be based in Riyadh – the capital city of the Kingdom – which is currently the focus of a massive infrastructure development. PIF recently launched a large master-planned mixed-use township in Riyadh that will expand the city limit to accommodate a larger population.

Riyadh Air is expected to play a catalyst’s role in boosting air traffic in and out of the Saudi capital city that will become a major transit point for international travellers criss-crossing the world through Riyadh Air – the same way Emirates Airline, Etihad Airways and Qatar Airways serve Dubai, Abu Dhabi and Qatar respectively and contribute to the economies where the airlines are based.

“Operating from Riyadh as its hub, the airline will usher in a new era for the travel and aviation industry globally. Riyadh Air will be a world-class airline, adopting the global best sustainability and safety standards across its advanced fleet of aircraft equipped with the latest cutting-edge technology. The airline is expected to add US$20 billion to non-oil GDP growth, and create more than 200,000 direct and indirect jobs,” a PIF statement said.

“As a wholly owned PIF subsidiary, the new national airline is set to benefit from PIF’s investment expertise and financial capabilities while expanding on the company’s operations to become a leading national carrier. The new national airline represents PIF’s latest investment in the sector, along with the recently announced King Salman International Airport masterplan.”

Riyadh Air aims to enhance customers’ journey while connecting them to over 100 destinations around the world by 2030; through offering an exceptional experience with an authentic Saudi hospitality at its heart, the statement said.

“The airline will provide tourists from around the world the opportunity to visit Saudi Arabia’s cultural and natural attractions. Riyadh Air will also serve as a catalyst for the Saudi National Transport and Logistics Strategy and the National Tourism Strategy by increasing air transport options, raising cargo capacity and, in turn, growing international passenger traffic,” PIF said in its statement

The establishment of Riyadh Air is part of PIF’s strategy to unlock the capabilities of promising sectors that can help drive the diversification of the local economy. It will enable a more financially resilient aviation ecosystem in Saudi Arabia, supporting the industry’s global competitiveness in line with Vision 2030.

It is however, unclear what would be its relationship with Saudi Arabian Airlines, popularly known as Saudia – the Kingdom’s national carrier – which uses Jeddah as its main hub. Flynas, the low-cost airline partly owned by Prince Alwaleed bin Talal bin Abdulaziz’s Kingdom Holding, uses Riyadh as its hub.

Riyadh Air will reinforce Riyadh’s position as the most popular and most visited city in Saudi Arabia – once it expands it operation to destinations across the world. However, it is expected to accelerate passenger traffic to Saudi Arabia and create a healthy competition in the market.

Air transport market in Saudi Arabia is forecast under the “current trends” scenario to grow by 126 percent in the next 20 years, according to International Air Transport Association (IATA).

“This would result in an additional 54.8 million passenger journeys by 2037. If met, this increased demand would support approximately US$82.3 billion of GDP and almost 1.2 million jobs,” IATA said in a research report on Saudi Arabia.

“The air transport industry, including airlines and its supply chain, are estimated to support US$20.2 billion of GDP in Saudi Arabia. Spending by foreign tourists supports a further US$16.2 billion of the country’s GDP, totaling to US$36.5 billion. In total, 5.6 percent of the country’s GDP is supported by inputs to the air transport sector and foreign tourists arriving by air.”

Riyadh Air is part of the Saudi Government’s economic diversification plan that will see tourism industry creates additional wealth for the Kingdom.

The article New Saudi carrier to create a new aviation hub appeared first on Arabian Post.

By Saifur Rahman

More than half of the UAE’s active businesses are registered with various licensing authorities in Dubai, including Dubai Economy and Tourism as well as more than 20 free zones including Jebel Ali Free Zone, Dubai Airport Free Zone, Tecom, Dubai Multi-Commodities Centre (DMCC), etc.

The number of active businesses has increased by 56,000 or 20 percent to 347,600 in 2022, according to a latest report by Dubai Chambers. This includes 5,000 businesses registered with some of the free zones – which work as separate licensing bodies – although the total number of businesses registered with the free zones has not been documented fully yet.

Business licenses in Dubai are issued by a number of licensing bodies and authorities, including Dubai Economy and Tourism – the main business licensing authority – and about 20 free zones active in Dubai.

The total number of registered active business licences in July 2022 amounted to 665,246, a 1.9 percent increase compared to 652,885 licences issued in December 2019, according to the UAE’s National Economic Register (NER).

The total number of registered businesses in the UAE has exceed 700,000, although the exact number is yet to be put together by the authorities – as business licenses are issued by local governments of the seven emirates and more than 45 free economic zones as well as offshore licensing authorities.

Abdulla Bin Touq Al Marri, UAE Minister of Economy, said: “The UAE now is in the business of doubling economic growth, incoming foreign direct investment, and investment outflows. The 100 percent full foreign ownership led to a significant increase in the demand of international companies to work in the UAE, reaching 300,000 companies, which would generate a revenue of Dh2.2 trillion.”

The exports and re-exports of Dubai Chamber of Commerce members grew by 20 percent to Dh272.7 billion in 2022, demonstrating the resilience of Dubai’s traders and their capacity to expand their exports into new markets, Dubai Chambers said in a recent statement.

“Dubai Chambers works to realise Dubai’s economic vision and strategic agenda. Our strategic priorities include improving Dubai’s business environment, advocating for its interests, supporting our members in their global expansion, attracting foreign businesses and investments into Dubai, and promoting the growth of our digital economy,” said Abdul Aziz Al Ghurair, Chairman of Dubai Chambers.

“Despite the global economic uncertainty witnessed in 2022, Dubai’s economy is expected to grow by 4-4.5 percent in 2023, outperforming global and regional growth estimates for the year. These positive economic indicators are aligned with the Dubai Economic Agenda D33, which aims to double the size of Dubai’s economy to Dh32 trillion over the next 10 years,” he added.

Dubai’s economy rebounded in 2022 as business activity was largely driven by key sectors such as retail, tourism, hospitality, real estate and transportation. The economy expanded by 4.6 percent in the first nine months of the year to Dh307.5 billion ($83.7 billion), as the government doubled down on efforts to accelerate the growth of the digital economy, expand economic partnerships with other countries and strengthen Dubai’s value proposition with flexible and long-term residency visa options.

A total of 725,537 Certificates of Origin (COO) were issued by the Chamber as the number of COOs jumped by 8% YoY. To add to that, 4,899 ATA Carnets were issued and received by the Chamber, while the value of these documents reached Dh3.4 billion ($925 million) during 2022. Dubai Chambers achieved a score of 97% on Dubai Government’s Customer Happiness Index 2022, marking its highest performance to date. The strong results were attributed to the Chamber’s seamless digital transformation of 100% of its core services. The organisation’s Customer Happiness Centre welcomes an average of only 10 customers per day, with the vast majority of services being accessed through online channels.

The article Active Dubai businesses jump 20% appeared first on Arabian Post.

By Saifur Rahman

Dubai emirate’s state-owned utility, Dubai Electricity and Water Authority (DEWA), reported a Dh11.1 billion standalone net profit that includes the sales proceeds of its shares in district cooling subsidiary Empower.

DEWA reported a 22 percent growth in consolidated net profit of Dh8 billion on Dh27.4 billion annual turnover, which was 15 percent higher when compared to 2021.

This is the first time DEWA, which enjoys near monopoly in power generation, water desalination, transmission and distribution, announced its financial results – which comes 10 months after it went public through an Initial Public Offering (IPO) that raised Dh22.32 billion in April 2022.

The stock price of DEWA, with 50 billion shares, closed at Dh2.39, putting market capitalization at Dh119.5 billion, prior to the announcement on Wednesday (February, 2023).

“Demand for power in 2022 reached 53.2 TWh compared to 50.4 TWh in 2021, representing a 5.56 percent increase. Further, DEWA’s peak demand in 2022 was 9.5 GW, which represents a 3.3% increase over the same period of 2021. For the year 2022 and 2021, DEWA achieved peak demand in the month of July. Average customer power consumption in 2022 was higher than that of 2021,” DEWA said in a statement.

Demand for water in 2022 reached 136.9 billion imperial gallons (BIG) compared to 128.6 BIG, representing a 6.45 percent increase. Average customer water consumption in 2022 was higher than that of 2021. Relative to capacity, DEWA’s minimum reserve margin in 2022 for power and water was 28 percent and 15.2 percent respectively. By the end of 2022, DEWA served 1,157,501 customers, representing an increase of 14,438 customers from the third quarter of 2022. DEWA added 51,089 new customers in 2022, which is a 4.6 percent increase from 2021.

“In 2022, DEWA achieved record results and delivered its best financial performance and growth in its operating history. For the full year 2022, we delivered a consolidated net profit of Dh8 billion, which is an increase of 22 percent over the full year 2021. Relative to 2021, our gross profit, operating profit and net profit margins increased. For the year 2022, DEWA had promised to pay Dh6.2 billion in dividends. Instead, DEWA intends to pay Dh9.9 billion in dividends to its shareholders. The delivery of our strategy has translated into exceptional returns to our shareholders,” Saeed Mohammed Al Tayer, MD & CEO of DEWA said.

“Looking ahead, I am optimistic about our operating and financial outlook for 2023 and beyond. DEWA stands ready to support the Dubai Economic Agenda (D33), which aims to double the size of Dubai’s economy over the next decade. In addition, our strategy, growth pillars and capital commitments are well positioned to deliver on our energy transition ambitions to achieve the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Emissions Strategy 2050 to provide 100 percent of the energy production capacity from clean energy sources by 2050, while supporting the strong demand for our exclusive portfolio of products and services in Dubai.

For the year 2022, DEWA commissioned two 400 kV substations, fifteen 132 kV substations and 1,113 11-6.6 kV substations. DEWA has deployed 1,108,530 smart electricity meters and 996,917 smart water meters. The company recorded a customer minute lost time of 1.19 minutes, which is the lowest recorded rate in the world. DEWA reduced its collection days to 40 versus 43 from the end of 2021, indicating faster collection.

By the end of 2022, the company installed an additional 1,100 MW of generation capacity, representing an 8.2% increase. Of this 1,100 MW, 600 MW was gas fired and 500 MW was solar. The company’s current installed generation capacity stands at 14.5 GW with 2 GW of this capacity representing renewable energy. The company’s current installed desalinated water production capacity was unchanged for 2022 and stands at 490 MIGD.

For 2023, DEWA said it expects to add an additional 2GW of generation capacity (13% increase), and 210 MIG of water reservoir capacity. By the end of 2030, DEWA plans to have gross installed capacity of 20 GW and 730 MIGD of desalinated water. Of this 20 GW, DEWA plans to have 5 GW of installed renewable capacity, representing 25 percent production from renewable sources. In addition, the company plans to add an additional 240 MIGD of desalination capacity using reverse osmosis technology.

A Dubai-based stock broker, on condition of anonymity, said, “DEWA is a lucrative stock for investors, due to the monopoly it enjoys in the state. The results make its share more desirable to investors. As a state-run utility, DEWA is run very professionally, unlike those run by government bureaucracy. DEWA’s leadership runs the organisation like a private utility. Hence it is one of the most profitable asset the government can rely on.”

The article DEWA reports Dh11.1b net profit for 2022 appeared first on Arabian Post.

By Saifur Rahman

The International Monetary Fund (IMF) this week approved a 42-month credit line of US$4.7 billion including US$3.3 billion under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF), as well as US$1.4 billion under the newly created Resilience and Sustainability Facility (RSF).

This approval enables the immediate disbursement of US$476 million. Bangladesh is the first Asian country to access the RSF.

“The 42-month program will help preserve macroeconomic stability, protect the vulnerable, and foster inclusive and green growth. Reforms will focus on creating fiscal space to enable greater social and developmental spending; strengthening the financial sector; modernizing policy frameworks; and building climate resilience,” IMF said in a statement.

Bangladesh’s robust economic recovery from the pandemic has been interrupted by Russia’s war in Ukraine, leading to a sharp widening of Bangladesh’s current account deficit, depreciation of the Taka and a decline in foreign exchange reserves. The authorities have taken on a comprehensive set of measures to deal with these latest economic disruptions.

The World Bank in its latest Global Economic Prospects report issued last month forecast the country’s GDP growth rate to decline to 5.2 percent in the Financial Year (FY) 2023. It cites rising inflation and its negative impact on household incomes and firms’ input costs, as well as energy shortages, import restrictions, and monetary policy tightening as the reasons for the sharp slowdown from 7.2 percent in FY 2022 to 5.2 percent in FY 2023. However, the growth rate is forecast to rise to 6.2 percent in FY 2024.

IMF says that Bangladesh authorities recognize that in addition to tackling these immediate challenges, long-standing structural issues and vulnerabilities related to climate change will also need to be addressed to accelerate growth, attract private investment, enhance productivity, and build climate resilience. The IMF-supported program under the ECF/EFF arrangements will help preserve macroeconomic stability and prevent disruptive adjustments to protect the vulnerable, while laying the foundations for strong, inclusive, and environmentally sustainable growth.

The concurrent RSF arrangement will supplement the resources made available under the ECF/EFF to expand the fiscal space to finance climate investment priorities identified in the authorities’ plans, help catalyze additional financing, and build resilience against long-term climate risks.

Antoinette M. Sayeh, Deputy Managing Director, and Acting Chair, said, “Since independence, Bangladesh has made steady progress in reducing poverty and significant improvements in living standards. However, the COVID-19 pandemic and subsequent Russia’s war in Ukraine interrupted this long period of robust economic performance. Multiple shocks have made macroeconomic management challenging in Bangladesh.

“While confronting challenges resulting from the global headwinds, the authorities need to accelerate their ambitious reform agenda to achieve a more resilient, inclusive, and sustainable growth. In this regard, substantial investment in human capital and infrastructure will be needed to achieve Bangladesh’s aspiration to reach upper-middle income status by 2031 and meet the Sustainable and Development Goals (SDGs). The authorities recognize these challenges and also the need to tackle climate change issues, which expose the economy to large risks that could threaten macroeconomic stability.”

The ECF/EFF arrangement will protect macroeconomic stability and rebuild buffers, while helping to advance the authorities’ reform agenda, she added. The implementation of the domestic revenue mobilization strategy that relies on both tax policy and revenue administration reforms will allow increasing social, development and climate spending sustainably. Fiscal reforms to strengthen the management of public finance, investment, and debt will improve spending efficiency, governance, and transparency.

“Reducing financial sector vulnerabilities, strengthening oversight, enhancing governance and the regulatory framework, and developing capital markets will help mobilize financing to support growth objectives. Structural reforms to create conducive environment to expand trade and foreign direct investment, deepening the financial sector, developing human capital, and improving governance to enhance the business climate are needed to lift growth potential. Access to RSF will provide financing to support Bangladesh’s climate change adaptation and mitigation efforts,” she said.

“The RSF reforms will complement reforms under the ECF/EFF by improving climate investment potential, strengthening institutions and enhancing climate-spending efficiency to build resilience and catalyze additional official and private finance.”

The Ukraine war pushed many South Asian economies into crisis in 2022, but the situation in Bangladesh – in purely economic terms – has been much less serious than that of countries such as Sri Lanka and Pakistan, says analysts.

Johann Chacko, an economic analyst, says, despite soaring import bills and a doubling of inflation, the International Monetary Fund and UN in October forecasted 6 per cent growth for 2022-23, which is markedly better than the region – 4.8 per cent – or the world as a whole – 1.9 per cent.

“The IMF Executive Board voted on January 30 in Washington to approve a $4.5-billion economic support package for Bangladesh, with the first payment of close to $450 million to go out in February. So why isn’t the mood of pessimism and alarm in Bangladesh dissipating, given all of these favourable conditions?,” Johann Chacko, says in an article.

“The short answer is that this crisis is about much more than the cost of petrol and electricity, or how much foreign exchange the country has. Corruption has remained a serious problem, with Bangladesh consistently scoring in the bottom 20 per cent of Transparency International’s global index, the worst in South Asia with the exception of Afghanistan. At its heart, it is about the widespread loss of confidence in the Bangladeshi government’s will to properly perform its duties of economic stewardship, whether protecting the vulnerable, supporting the middle class or enabling entrepreneurs and established businesses to succeed.”

The collection of taxes and duties has been poor, and most seriously, the weakly regulated banking sector has become an increasing source of concern for its growing portfolio of non-performing loans. The Ukraine war and its impact on energy prices were, of course, external to the Bangladeshi economy, but the government’s level of exposure to those shocks and the quality of its crisis management have brought to the fore a pervasive sense that a rotten political and bureaucratic culture had made things far worse than they needed to be, Chacko argues.

“For example, the government’s declining willingness to invest in existing domestic gasfields, or in developing coal reserves, or in pursuing industrial-scale renewable energy production led to a much greater reliance on imports and swings in a volatile global market than was necessary. While this was profitable for importers, the results for the rest of the economy were far more dire. This was magnified by the seemingly indiscriminate emergency controls placed on foreign exchange transactions by the government when reserves started to rapidly dip.”

Bangladesh’s leadership has been sensitive to donors and markets, and the IMF in turn seems to largely agree with public sentiment. The conditionalities on the loan disbursal require a 26-month programme of reforms: improved tax capture; improved regulation of the banking sector; investments in renewable power generation and more protection for vulnerable segments of the population, he says.

“This rare but fortunate alignment between the global financial institutions and public sentiment in a recipient country represents an opportunity for the Bangladeshi government. It is a chance to forge a new path by cleaning house and rebuilding its legitimacy with its people. The failure to seize this opportunity will not only derail its goal of sustained growth, but intensify political and economic instability, quite possibly beyond this government’s ability to contain. The next two years will reveal what course the government has chosen to embrace,” Chacko concludes.

The article $4.7 billion IMF credit lifeline to Bangladesh appeared first on Arabian Post.

By Saifur Rahman

 The total value of land and property sale and mortgage jumped 76.5 percent to US$143.86 billion (Dh528 billion) in 2022, from US$81.74 billion (Dh300 billion), in 2021, according to the Dubai Land Department, the emirate’s land and property registry. This is the first time the land and property transactions value crossed the Dh500 billion record and marks a new milestone in the history of the emirates, since the establishment of Dubai Land Department in 1960.

 The US$143.86 billion real estate transaction value is higher than the emirates gross domestic products (GDP), and higher than the GDP of 150 countries.

 Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, said, “Dubai remains one of the world’s most attractive investment destinations due to its stable economy, strong financial fundamentals and ability to constantly find new opportunities for growth. “Moreover, global investors, institutions and businesses continue to have high confidence in Dubai’s economy due to its growing profile as one of the best metropolises to live and work, its exceptional infrastructure and supportive regulations,” he added.

The number of real estate transactions in Dubai jumped 44.7 percent to 122,700 last year, when compared to 2021.In 2022, around 80,216 investors registered 115,183 new real estate investments valued at Dh264.15 billion, registering a growth of 59.5 percent growth in volume and 78.4 percent growth in value.

Sultan Butti Bin Mejren, Director-General of Dubai Land Department said, “Guided by the Vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s real estate sector has demonstrated its ability to sustain its rapid growth and enhanced its attractiveness driven by close cooperation between public and private stakeholders.”

Experts attribute this to a number of factors, including the remarkable post-Covid recovery, hosting of World Expo 2020 – that encouraged global investors to relocate to Dubai as well as invest in property. The Russia-Ukraine war that transferred a lot of resources to Dubai and pushed the prices of off-plan property price, is another factor that contributed to the growth. The price of a studio apartment which was sold at Dh400,000 in January 2022, is now sold at Dh800,000 to Dh1 million. This reflects the level of interest among international investors.

 “[The year] 2022 has been a year of sustained growth for the UAE’s real estate sector as it continued to gather pace while benefiting from the country’s reliable economic policies, excellent infrastructure, safe haven status, and innate ability to adapt to new trends,” Faraz Ahmed, Associate, Research at Jones Lang LaSalle MENA, said in a recent statement.

“Even segments like retail that faced headwinds initially in the year, recovered significantly in the last quarter. Looking ahead, we can expect the UAE to continue to attract the attention of both regional and international investors with aspirational offerings within the sector.”

In addition, the delivery of 38,000 residential units last year pushed Dubai’s total supply to 680,000 units whilst. In 2023, the level of scheduled completions will be a little higher, or 41,000 units in Dubai, according to data supplied by Jones Lang LaSalle.

Dubai Land Department issued a total of 9,047 real estate permits and 6,479 real estate licences in 2022, a growth of 46.6 percent and 53 percent respectively compared to 2021, according to a government statement.

“The high growth in permits and licences reflects the growing demand from real estate investors across the world driven by Dubai’s strong growth outlook and the prospects of high returns in the local market. The growth also reflects the Dubai Land Department’s efforts to provide high-quality services, further enhance the competitiveness of the real estate market and ensure the protection of all stakeholders,” the statement said.

“The remarkable performance of the sector supports the goals of the Dubai Economic Agenda D33 launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to double the size of the emirate’s economy by 2033 and consolidate its status as one of the world’s top three cities.”

The highest number of DLD permits in 2022 were issued for online ads with 7,947 permits, followed by classified ads (180), outdoor advertisements (164), vehicle advertisements (140), billboards (138), open-day announcements (95), text messages (84), real estate promotion platforms (75), printed advertisements (50), and project launch ceremonies (38). Permits were also issued for real estate seminars, promotional campaigns, real estate exhibitions, advertisements and newspapers, among others.

The highest number of DLD licences were issued to brokerages buying and selling real estate (2,308), followed by real estate leasing brokerages (1,570), transaction follow-up services (1,273), administrative supervision services for real estate (491), buying and selling land and real estate (299), real estate development (161), and commercial complexes (117). Other key categories in which licences were issued included jointly-owned property management services, mortgage brokers and shopping centres, among others.

In line with its vision to transform Dubai into the world’s best real estate investment destination, the Dubai Land Department has worked to enhance the local market by providing seamless services, introducing supportive regulations, fostering a digital ecosystem, consolidating various sources of data through partnerships and raising the capabilities of its human resources to maintain the highest levels of service excellence. Driven by close cooperation between public and private stakeholders, the sector is set to achieve greater growth in the future.

The article Dubai 2022 property transactions value up to $143.8 billion appeared first on Arabian Post.

Bangabandhu and Sheikh Zayed

When Bangladesh came into being in December 16, 1971 after a nine-month bloody war, it was a nearly destroyed, looted and violated land filled with 75 million people cramped within 144,000 square kilometres with broken infrastructure, zero money in the exchequer and perhaps more devastating – no hope.

A few weeks later Bangladesh’s Founding Father Sheikh Mujibur Rahman, more famously referred to ‘Bangabandhu’ that means ‘Friend of Bengal’, returned to the war-ravaged Bangladesh with an emotional reception in Dhaka on January 10, 1972, unsure how the country would turn around. With his return, hope for the emancipation returned among the 75 million people.

As Bangladesh celebrated 51 years as an independent nation on December 16, 2022, most people including international observers wonder how this country not only survived, but progressed so well, to become one of the best performing economies in the world. In many socio-economic indicators, Bangladesh has done better than its regional peers.

Bangladesh attained an average GDP growth rate of over 6 percent during the past decade and emerged as a lower-middle-income country in 2015. The accelerated growth continued in a persistent manner. Prior to the COVID-19 pandemic, Bangladesh posted 8.15 percent GDP growth, the highest among the Asia-Pacific countries.

Even amid the COVID-19 pandemic, this country that was once written off as almost a failed state, achieved a GDP growth of 5.24 percent in 2020, which is the highest in Asia.

The economy already started rebounding and is projected to grow by 6.9 percent in FY 2022-23. According to international experts, the country is poised to maintain high economic growth in the coming years to emerge as the 26th largest economy in the world by 2030.

The question is, how did the country achieve this? Well, it all started with the heroic return of Sheikh Mujib on January 10 1972. The solution to this question was given by Bangabandhu in an interview given to an international media a few weeks after his triumphant return to Bangladesh.

In the interview, Bangabandhu Sheikh Mujibur Rahman was asked way back in January 1972 on how he had planned to rebuild the economy of Bangladesh with broken infrastructure, with no money and no natural resources to bank on. How did he plan to develop the proverbial Sonar Bangla (Golden Bengal)?

Bangabandhu knew, his country lacked natural resources, it was still an agrarian society with little or no industrialisation. Most people were illiterate and unskilled. The country’s progress could only be ensured by educating, developing and empowering people.

Then he replied, smiling – “To build the Golden Bengal, we need Golden People.”

It was a very simple, but a very powerful reply. The strength of the message had almost got lost in the simplistic nature of his reply. But it summed up his roadmap for the future of the country. So, building human capital and empowerment of people was at the core of his development plan.

While Bangabandhu had started re-building the country after presenting his people a modern and liberal constitution in November 1972, followed by a general election in March 1973, a countrywide famine worsened the situation in 1974, that prompted a section of the global media to write off Bangladesh as a “Bottomless Basket’ or a ‘lost case’.

Following his tragic assassination along with most of his family members on August 15, 1975, Bangladesh again entered into a period of uncertainty – with military taking control of the country. His assassination was followed by a series of killings and assassinations that plunged the country into darkness.

The new military regime then identified ‘Population’ as the No 1 ‘Problem’ of Bangladesh. The road towards building human capital lost focus, although the educational institutions continued to educate young men and women. For the next 15 years, Bangladesh was run by the military – without a proper vision or direction – till its overthrow in December 1990 through popular political movement.

Fast forward to 2021-2022, when Bangladesh celebrates 51 years of independence. What do we see?
During the last 50 years, Bangladesh’s economy experienced a significant transformation from an agriculture-dependent economy to and industry and service sector-led one. Despite persistent growth in agriculture, the sector’s share to GDP decreased from 60 percent in 1972 to 13 percent in 2020 due rapid expansions of manufacturing and service sectors. The share of the manufacturing sector in GDP accounted for 29.5 percent in 2020. Services sector dominates the Bangladeshi economy which contributes about 56 percent of the GDP.

In the recent years, the local industries witnessed a significant growth and upgradation to cater burgeoning domestic demands and high-end international market. As a result, Bangladesh’s export basket experienced progressive diversification resulting in a significant increase in export earnings, according to reports.

Bangladesh is now considered to be a lucrative destination for foreign investments owing to its pro-investment policies, investment-friendly environment, upgraded infrastructure, ever expanding domestic market, strategically important geopolitical location, political stability and competitive labour force. The government is setting up 100 economic zones to facilitate investments.

Many articles and analyses have been written to understand the economic miracle of Bangladesh. What are the key reasons behind the socio-economic success in the first five decades of Bangladesh – a natural disaster-prone climate victim country, whose progress was marred by frequent military coups, political movement, corruption, nepotism and other man-made and natural calamities?

While many experts attribute the success of Bangladesh to the country’s dynamic leadership of Prime Minister Sheikh Hasina – who is also the daughter of Bangabandhu Sheikh Mujibur Rahman – other pundits attribute it to the success in Ready-Made Garments exports. All these are true and part of the key factors that contributed to the country’s success in the last five decades.

However, they have collectively failed to identify the single-most important factor for Bangladesh’s economic miracle – that is, its people! Empowerment of people, especially women.

Bangladesh hosts 165 million people – or half of the entire population of the United States – confined within a land area of 148,460 square kilometres that is slightly smaller than the US state of Florida, or slightly bigger than New York State. If half of US population was forced to live either of the states, how would the economy do in 50 years? Most people think it would have been chaotic, or a mess while others don’t want to think about it!

The 165 million people of Bangladesh share 148,460 square kilometre landmass that make up the length and breadth of Bangladesh – at the rate of 1,124 persons per square kilometres – with no or very little resources, without much law-and-order incidents or social unrests, let alone chaos or a mess. That’s the inner beauty and the inner power of the people of Bangladesh, and Bangabandhu understood this better than anyone else.

With two square meals a day, clothing and shelter, these 165 million people can develop themselves without any external help.

It took a young man, Dr. M. Sabur Khan, to start thinking about the future of Bangladesh during his days as a student in the 1980s – almost in line with what the Father of the Nation had envisioned in his statement – to “To build a Golden Bangla, we need Golden people.”

He shared the Vision of Bangabandhu Sheikh Mujibur Rahman, when he started his entrepreneurial journey in 1990. After completing his studies, Dr. Sabur Khan started his vision with a small computer outfit, called Daffodil Computers Ltd. Like most visions, he thought big, but started small. His vision was global, but he started local. He started by training students on word processing, accounting and information processing. It was the beginning of the Personal Computers (PCs) – powered by the first-generation X880, X286 and X386 processors.

“I knew in those days, Information and Communication Technology (ICT) would play a crucial role in reshaping the future of our country and if we want to build a strong and prosperous future, we need to train people in ICT. So, I started my entrepreneurial journey with PCs – buy, import, sell and then assemble PCs in Bangladesh,” he recalls, as Bangladesh celebrates 51 years of success after the country’s independence.

“I then started importing PCs from Singapore and selling in Bangladesh. Then I started value-addition with assembling PCs in Bangladesh. Later I ventured into software development. However, throughout the decade of 1990, our company continued to train thousands of young boys and girls in IT training through Daffodil Institute of IT (DIIT) and other companies.

“This is when I started to seriously investing in getting involved in education – which is crucial in building a prosperous future for the country. I always believe, it is education and skill development that could help Bangladesh in empowering its people, reduce poverty, build human capital and generate wealth.”

Dr Sabur Khan

In 2002, he established Daffodil International University – to provide quality education to students of Bangladesh – that has now become the largest private university in Bangladesh. Over the last 32 years, Dr. Sabur Khan’s institutes provided quality education and training to more than 100,000 people – all are successful and are doing well in more than 100 countries.

He is doing what Bangabandhu envisioned – to create Golden People – or building Human Capital – that will help build resource-constraint country like Bangladesh.

As a person, he remains very simple – the man next door. He talks less, but thinks a lot. He let his work do the talking. His thoughts and vision are greater than the actions – that has not been revealed or discovered by the national media in Bangladesh.

He has recently undertaken a new initiative, Change Bangladesh – to change Bangladesh for the better.

He is now taking his local expertise to the international markets. He has recently registered International Online University (IOU) in the United States that will soon disrupt education by creating an OTT platform in education, like the Netflix of Education. This reflects his futuristic vision. Now he wants to bring the young men and women of all countries into the new education movement through IOU – which might have its functional office in Dubai – if the government permission is obtained.

He also plans to create a new educational rating and ranking system that will be based on more stringent criteria, based on better and more scientific markings.

“The people of Bangladesh have been at the core of the country’s success in the last five decades. Despite lack of natural resources, lack of education, basic healthcare, food, hygiene, and the abundance of poverty, the country progressed well – for a single factor: its people,” Dr Khan, who was recently in the UAE to expand his education services in the GCC region, says.

“Bangladeshi people are peace-loving but entrepreneurial. They can take risk. They are productive and creative. If left to themselves, they know how to change their fate. The people of Bangladesh are productive enough to ensure a 5-6 percent growth in GDP every year.

“Bangabandhu – the visionary leader of Bangladesh – knew it all along. It is the people – the Golden People, who could transform the ‘Bottomless Basket’ into a ‘Golden Bangla’. The leadership of his daughter Sheikh Hasina – has unlocked their potential and demonstrated that possibility – as Bangabandhu did not live long to fulfil his second struggle – the struggle for economic emancipation.

“Sheikh Hasina knows, if the poor people can be empowered with education, skills and other resources, Bangladesh economy will continue to grow much faster than many other countries due to the accelerated domestic demand growth which will fuel domestic consumption and economic growth.”

The case of the 4 million garments workers – 90 percent of whom are women – who belong to the lower income group, is a case in point. They are the engine of Bangladesh’s economic growth. Over the last four decades, these women have developed themselves, raised family, educated their children and gradually became consumers, while fetching US$36 billion export earnings every year.

However, the country needs massive investment in development works – to build the physical and soft infrastructure on which the future of Bangladesh will be built on. The government of Sheikh Hasina is currently investing more than US$100 billion in building the infrastructure of Bangladesh that will help the country to grow in future.

 While Bangladesh has achieved remarkable feat in its first 51 years of inception, time has come for the country to look at the next 50 years. How can Bangladesh become one of the top 15-20 large economies in the world? How can average Bangladeshis become richer than their peers in other countries?

How can Bangladesh take a leadership role in the next digital race? The answer lies, again, in its people. Bangladesh needs to digitise its people!

Bangladeshi education institutions have started to introduce curricula linked to the Fourth Industrial Revolution such as Internet of Things, Robotics, Data-Science, Big Data Analytics, Artificial Intelligence, Augmented Reality, Cyber Security, Biotechnology, 3-D Printing, etc.

To change its future, the country needs to invest in its young people – develop them into knowledge workers. Because, in future they will be working in knowledge economy and living in knowledge society.

“The future of Bangladesh – again – lies in our people! The government and the private sector need to invest in empowering our people with digitisation skills – more than before,” Dr Khan says.

“From brick-and-mortar, the world is shifting towards a digital world. Web-based applications are disrupting traditional businesses. The world has already embraced the Fourth Industrial Revolution. The future is data-driven. Data is the new oil, gold or real wealth. The future of a nation will be determined by the focus it gives on innovation.

“We need to invest in digitising the country, digitising services and economy. However, in order to achieve this, we need to digitise its people, their mindset. This is exactly what we are doing – grooming more than 25,000 students in our campus to become digital netizens and lead the future with coding and software and application-based solutions.”

Although, Bangladesh Government is working on to realise the United Nations’ Sustainable Development Goals and Vision 2041 – when the country targets to become a Developed Nation, it is time to also think of a Vision 2071 – when Bangladesh celebrates 100 years!

The future of Bangladesh – the proverbial Golden Bengal – is Digital Bangladesh and the country needs knowledge workers and digital people. So, it’s time for Vision 2071.

Dr Khan is currently planning to adopt 4,000 orphans and provide the food, shelter, education and jobs – to offer them hope for a better future – with his own, hard-earned money, among other philanthropic activities.

The article Human talent could help Bangladesh realise its vision: Golden Bengal appeared first on Arabian Post.

By Saifur Rahman

Investment Corporation of Dubai (ICD), the investment arm of Dubai Government, reported a 1000 percent growth in net profits exceeding Dh14.8 billion in the first half of 2022, on Dh121.1 billion revenues reported in the same period that saw its assets value exceeding Dh1.14 trillion by the end of the first half of this year that reflects the strong growth witnessed by major businesses in Dubai. In the first half of 2021, ICD reported net profits of Dh1.49 billion.

“The ICD’s first-half revenues registered a 61 percent increase while its profits grew more than 10 times compared to the same period last year,” a statement said.

ICD group portfolio includes some of the most sought after businesses in the region, including Emirates Airline, Dnata, FlyDubai, Dubai Aerospace Enterprises (DAE), Emirates NBD Bank Group, Commercial Bank of Dubai, Borse Dubai, Dubai Islamic Bank, National Bonds, Emirates National Oil Co. (ENOC), Dubai Multi-Commodities Centre (DMCC), Dubai Duty Free, Emaar Properties, Ithra Dubai, IDC Brookfield, Dubai Investments, Dubai World Trade Centre, Atlantis the Palm, Mandarin Oriental, New York, Dubal Holding, Emirates Global Aluminum (EGA) and Ducab, among others.

Among these, the four aviation businesses – Emirates Airline, Danata, FlyDubai and DAE – together make up 25 percent of ICD’s portfolio while its banking assets represent a further 23 percent of the portfolio.

Emirates Group, which includes Emirates Airline and Dnata, recently reported net profitsof Dh4.2 billion (US$1.2 billion), a record half-year performance, and a turnaround of almost Dh10 billion from its Dh5.7 billion (US$ 1.6 billion) loss for the same period last year.

Emirates Group also reported an EBITDA of Dh15.3 billion (US$4.2 billion), a marked improvement from Dh5.6 billion (US$ 1.5 billion) during the same period last year, illustrating its strong operating profitability.

Emirates Group revenue was Dh56.3 billion (US$15.3 billion) for the first six months of 2022-23, up 128 percent from Dh24.7 billion (US$6.7 billion) last year. This was driven by the strong demand for air transport across the world with the further easing and removal of pandemic-related travel restrictions.

Although Emirates Group’s financial year starts from April 1 every year, its financial results between January 1 and June 30 are calculated within ICD’s half-yearly report. Similarly all group company’s financial results are added to the ICD’s financial report.

Emaar Properties earlier reported a 66 per cent jump in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to Dh6.11 billion ($1.66 billion) compared to H1 2021, as a result of higher revenue with improving margins and continued cost optimisation. Led by the strong performance of its core property development business, and complemented by growing recurring revenue operations, Emaar recorded a robust first half revenue of Dh13.57 billion ($3.69 billion), a growth of 10 per cent compared to H1 2021.

The successful launch of properties by Emaar, both in the UAE and international markets, and focus on sales of under-construction projects resulted in Emaar achieving record first half group property sales of Dh17.67 billion ($4.81 billion), an increase of 5 per cent compared to the H1 2021 sales of Dh16.84 billion ($4.58 billion).

The group reported record first-half net profits of Dh14.8 billion, up more than ten times over the same period last year, with transportation returning to profitability in a significant turnaround, Oil & Gas improving its profits by 190 percent, and the other segment increasing by 129 percent buoyed by record earnings from aluminium production and strong fundamentals in the real estate and hospitality sectors.

The results attributable to the equity holder were net profits of Dh12.2 billion. The group’s share of equity increased by 4.8 percent to Dh199.8 billion.

ICD’s assets resumed their growth and reached a record Dh1.13 trillion on the back of a much higher level of activity overall. The group’s liabilities were up marginally to Dh887.5 billion, while borrowings and lease liabilities slightly declined.

ICD’s Board, chaired by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of The Executive Council of Dubai, Chairman of ICD, and in the presence of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Vice-Chairman of ICD,  approved ICD’s consolidated financial results for the six months ended 30 June 2022.

Sheikh Hamdan bin Mohammed said: “The 61 percent growth in ICD’s revenues and a more than ten times increase in its profits during the first half of 2022, despite the global economic slowdown and uncertainty worldwide, reflects the resilience and robustness of Dubai’s economy and the prudence of its fiscal policies. The exceptional results are a manifestation of HH Sheikh Mohammed bin Rashid’s vision to ensure that Dubai remains at the forefront of championing global economic recovery.”

The group, mandated with the management of the Government of Dubai’s portfolio of commercial companies and investments, witnessed a significant surge in travel and tourism activities, reflected in the growth in Transportation and Other segments, while its Oil & Gas revenues received a sizeable boost on the back of substantially higher international oil prices.

Mohammed Ibrahim Al Shaibani, Managing Director of ICD, said: “ICD’s record revenues, earnings and assets for the first half of 2022 are an impressive achievement as the expansion of our businesses accelerated despite the global economic slowdown. Benefiting from favourable local and regional economic momentum, our companies redeployed operational capacity whilst maintaining a strong discipline on costs. Despite the challenging global economic outlook, ICD maintains a strong balance sheet, is confident of the growth potential of its businesses and will remain cautious and selective in how it deploys new capital whilst exploring new investment opportunities.”

Business analysts say the efficient handling of the COVID-19 pandemic and the successful hosting of Expo 2022 has helped Dubai to attract massive international tourists, High-Net Worth Individuals (HNWIs), foreign investment that helped the economy to rebound, that helped ICD’s business units to report record growth. Their continued success will help Dubai Government to reduce its debt obligations in the coming years.

 ICD, the principal investment arm of the Government of Dubai, was established in May 2006 and mandated with the consolidation and management of the Government of Dubai’s portfolio of commercial companies and investments. ICD was also assigned the provision of strategic oversight to portfolio companies through the development and implementation of effective corporate governance policies, and sound investment strategies. ICD is focused on maximizing stakeholder value for the long-term benefit of the emirate.

ICD’s portfolio comprises some of Dubai’s most recognized companies, and represents a cross-section of vital economic sectors that the Government of Dubai has deemed strategic for the continued development and growth of the Emirate. The sectors include financial services, transportation, energy and industry, real estate and construction, hospitality and leisure, retail, and other holdings. In addition, ICD has embarked on a disciplined and sustainable strategy of global investments, which are synergistic with its existing portfolio, to extend Dubai’s presence and expertise into international markets.

The article Dubai’s ICD reports Dh14.8b 1H net profits appeared first on Arabian Post.

By Saifur Rahman

Saudi Arabia plans to build the world’s largest airport at a 57 square kilometre patch of land in the country’s capital city Riyadh that, once complete, will handle up to 185 million passenger annually. This will create the largest gateway to the Kingdom as it plans to attract greater number of international tourists to the new tourism and entertainment destinations currently being built in the country as part of the country’s Vision 2030.

Crown Prince Mohammed bin Salman bin Abdulaziz, Prime Minister and Chairman of the Council of Economic and Development Affairs (CEDA), Chairman of the Public Investment Fund (PIF), announced a masterplan for the airport to be named after King Salman bin Abdulaziz, that could contribute SR27 billion annually to non-oil GDP and to create 103,000 direct and indirect jobs, in line with Vision 2030 objectives, according to a statement.

“King Salman International Airport which will boost Riyadh’s position as a global logistics hub, stimulate transport, trade and tourism, and act as a bridge linking the East with the West. The airport project is in line with Saudi Arabia’s vision to transform Riyadh to be among the top ten city economies in the world and to support the growth of Riyadh’s population to 15–20 million people by 2030,” a statement by PIF said.

“King Salman International Airport is expected to be one of the world’s largest airports covering an area of approximately 57 square kilometres, allowing for six parallel runways and including the existing terminals named after King Khalid. It will also include 12 square kilometres of airport support facilities, residential and recreational facilities, retail outlets, and other logistics real estate. The airport aims to accommodate up to 120 million travellers by 2030 and 185 million travellers, with the capacity to process 3.5 million tons of cargo, by 2050.

“It will become an aerotropolis centred around a seamless customer journey, world-class efficient operations, and innovation. Riyadh’s identity and the Saudi culture will be taken into consideration in the airport’s design to ensure a unique travel experience for visitors and transit travellers.”

This will be significantly larger than the Al Maktoum International Airport – that Dubai Government is planning to build at Dubai South – a 140-square kilometre Airport City or Aerotropolis, which has a design capacity of 160 million passenger capacity per annum.

The Middle East region has more than 110 airports, according to the Airports Council International (ACI). These airports, in the last two decades, have become popular transit hubs for travellers, spearheaded by home-grown international airlines led by Emirates Airline, Etihad Airways, Qatar Airways, Saudi Arabian Airlines, Oman Air, Gulf Air, among others. Aviation industry in the region is one of the fastest growing in the world, accounting for 170 million, or 4 percent of the global traffic of 4.6 billion in 2021.

During pre-Covid, the industry in the Middle East generated US$213 billion in revenues, accounting for 6 percent of global economic activity. The sector generated over 3 million jobs until 2019 in the Middle East.

In 2019, Middle Eastern airports handled 404 million passengers, which declined to 135 million in 2020 and 169 million passengers in 2021, due to COVID-19 pandemic. Middle East Airports remained the most impacted in 2021, reached only 42 percent of its 2019 level by year end. This was mainly due to its dependence on international traffic, ACI noted.

This year, the region is expected to reach 67 percent of 2019 levels and fully recover only in late 2024.

“There has been an improvement in traffic in the first four months of 2022 (from January to April) with the region recording 66 percent traffic compared to the same period in 2019. Cargo throughput too remains positive in the first four months of the 2022, achieving 86 percent as compared to same period in 2019,” ACI said in a recent statement.

ACI forecasts indicate that close to 19.7 billion trips are expected to be made by passengers by air globally by 2040 – more than double of the 9 billion trips made by passengers in 2019.

Middle Eastern Airports are expected to handle 1.1 billion passengers by 2040 – a significant increase of nearly 300 percent of the combined 405 million traffic they handled in 2019. In order to handle the surge, Middle Eastern airports have to develop their infrastructure, ACI said.

According to ACI forecast, world’s airports are expected to invest nearly $2.4 trillion to develop their infrastructure by the year 2040.

The Middle East’s projected capital expenditure (CAPEX) needs amount to about $151 billion between 2021 and 2040.

Near-term (2021-2025) greenfield airport projects are expected to comprise 56 percent or $17 billion of total near-term regional airport CAPEX, though that share will gradually decrease over the long-run (2026-2040), as the region meets long-run air passenger capacity needs. To bring to life the ambition of becoming a local gateway for global travel, the Middle East countries are investing billions of dollars into new-build airports to create iconic transport hubs.

Stefano Baronci, director general, ACI, says, “Airports in the Middle East will need to spend around $151bn to complete the expansion and modernisation projects for their airports over the next two decades. Many airports in the region have already placed significant emphasis on infrastructure investment as well, with digital innovation and technology driving change.

“A number of Middle Eastern airports have invested billions of dollars into new airports to strengthen its position as global transport hubs. This is a clear indication that the airports have shown the intent towards capacity expansion to meet the future growth.”

With sustainability at its core, King Salman International Airport will achieve LEED Platinum certification by incorporating cutting edge green initiatives into its design and will be powered by renewable energy.

The Public Investment Fund (PIF) is one of the largest sovereign wealth funds in the world. Since 2015, when the Board was reconstituted and oversight transferred to the Council of Economic and Development Affairs, the Fund’s board of directors has been chaired by Crown Prince Mohammad bin Salman bin Abdulaziz. PIF a leading role in advancing Saudi Arabia’s economic transformation and diversification, as well as contributing to shaping the future of the global economy. Since 2017, PIF has established 66 companies and created, directly and indirectly, more than 500,000 jobs as at the end of 2021.

The announcement comes as part of PIF’s strategy which focuses on unlocking the capabilities of promising sectors to enhance Saudi Arabia’s efforts in diversifying the economy, and it is in line with the National Transport Strategy and the Global Supply Chain Resilience Initiative.

The article Saudis to build world’s biggest airport appeared first on Arabian Post.

By Saifur Rahman

Abu Dhabi economy recorded 11.6 percent growth in the first half of 2022, compared to the corresponding period in 2021, according to a statement issued by the Statistics Centre – Abu Dhabi (SCAD), making it the fastest-growing economy in the world this year, as per available information.

At the end of the first half of 2022, the real Gross Domestic Product (GDP) at constant prices exceeded Dh543 billion, and the value of the non-oil sectors’ GDP increased Dh28.4 billion compared to the same period last year to reach Dh273 billion in total.

“The growth reflects the emirate’s robust performance and the ability of the economy to maintain competitiveness and sustain growth despite global economic challenges,” the statement said.

According to estimates by SCAD, the quarterly GDP growth rate reached its highest value in six (6) years during the second quarter of 2022 which hit 11.7 percent compared to the same quarter last year.

“The statistical estimates show that all non-oil economic activities and sectors showed positive growth rates at constant prices during the first half of 2022, most notably, the health and social work activity rising at a rate of 29.9 percent, followed by accommodation and food services at a rate of 29.3 percent, and professional, scientific and support services at a rate of 27.2 percent, wholesale and retail trade activity at a rate of 23.7 percent, real estate activities at a rate of 19.1 percent, and electricity, gas, water, and waste management at 18.0 percent, followed by 13.8 percent for transportation and storage,” SCAD said.

The news comes a few days after the International Monetary Fund said the UAE economy will grow at 6 percent this year, up from 3.8 percent recorded last year.

Ali Al Eyd, of the IMF, said, “Economic growth has been robust this year, led by a strong rebound in tourism, construction, and activity related to the Dubai World Expo, as well as higher oil production in line with the OPEC+ production agreements. Overall, GDP growth is Ali Al Eyd projected to reach above 6 percent in 2022, improving from 3.8 percent in 2021.

“Inflation has risen with global trends and is expected to average just over 5 percent this year. Fiscal and external surpluses have increased further, benefiting from the higher oil prices as well as the removal of the temporary COVID-crisis related fiscal support to businesses and households as the pandemic has gradually waned. Increased global uncertainty led to larger financial inflows, contributing to rapid real estate price growth in some segments.”

Manufacturing activities represent 8.1 of the emirate’s economy, while showing a growth rate of 10.2 percent. In addition, the construction and building activity contributed to the real GDP with 7.7 percent, and achieved a growth rate of 6.9 percent, followed by the wholesale and retail trade activity that contributed 5.9 percent to the GDP. The financial and insurance activities contributed 5.5 percent to the GDP, with a growth rate of 9.1 percent during the first half of 2022 compared to the same period last year.

Mohamed Ali Al Shorafa, Chairman of the Abu Dhabi Department of Economic Development (ADDED) said:“Economy’s positive growth rates in Abu Dhabi reflect the profound strength and success of the economic diversification policy, which contributed to the economy’s resilience and ability to address global changes posed by geopolitical and economic factors that directly affected strategic sectors such as energy and international trade.

“The Abu Dhabi economy continues to reap the benefits of the effective policies guided by the wise leadership to strengthen the pillars and foundations of the economy, maintaining a competitive performance while attracting investments with more initiatives to achieve the strategic objectives of Abu Dhabi.”

The SCAD data shows that the mining and quarrying activities (including crude oil and natural gas) contributed 49.7 percent to the real GDP of Abu Dhabi emirate during the first half of 2022, which means non-oil activities contributed 50.3 percent at constant prices defying the noticeable increases of global oil prices during the same period.

“The increase in the non-oil sector’s contribution to the real GDP proves the success of the ambitious strategic plans for diversifying the economic base in Abu Dhabi,” the statement said.

Ahmed Mahmoud Fikri, Director General of the Statistics Centre – Abu Dhabi, said: “Statistical estimates reflect the ability of Abu Dhabi’s economy to sustain rapid growth and respond quickly to plans and efforts to diversify the economic base and stimulus packages. The strategic plans and stimulus packages have produced huge growth, as most economic activities continue to expand with full alignment of economic sectors at the emirate level.”

The IMF said, the UAE’s economic outlook remains positive, however with uncertainties.

Ali Al Eyd said, “Looking ahead, the UAE economic outlook remains positive, supported by domestic activity. We expect non-hydrocarbon growth to be around 4 percent in 2023 and to accelerate over the medium-term with the implementation of ongoing reforms. Inflationary pressures are projected to moderate gradually, including from the impact of tightening financial conditions. Further development of domestic capital markets, including through the issuance of local currency debt by the federal government will also support growth.

“Nevertheless, the outlook is subject to significant external uncertainties, including the impacts of global economic and financial headwinds, geopolitical developments, and the recently announced OPEC+ production cuts. However, higher oil prices and healthy fiscal buffers help mitigate risks, while enhancing reform efforts would pose upside risks to medium-term growth. Given the macroeconomic outlook, near-term policies should focus on ensuring sustainable growth and maintaining financial stability, while guarding against inflationary outcomes.”

The article Abu Dhabi economy up 11.2% in first half appeared first on Arabian Post.

By Saifur Rahman

Nawab Shaji Ul Mulk Chairman of Mulk International

Zimbabwe President Emmerson Mnangagwa on Wednesday broke ground to launch the US$500 million (Dh1.83 billion) Zim Cyber City – a state-of-the-art mixed-use hi-tech park at the outskirts of Zimbabwe’s capital city Harare – that is being developed by UAE-based diversified industrial conglomerate Mulk International.

Sprawled across 2.5 million square feet, Zim Cyber City is currently under construction in Mount Hampden, New Harare. Mount Hampden’s master plan includes the newly completed parliament building and all the ministry buildings as well as high-end residential and commercial buildings. Many compare this to the Downtown and Sheikh Zayed Road developments in Dubai, UAE.

“Zim Cyber City stands to become Zimbabwe’s landmark project, offering a world-class high-end lifestyle to all the residents. Our government fully supports this exciting development, and I congratulate the Chairman,  Shaji Ul Mulk, and his company Mulk International, for bringing Zim Cyber City to Zimbabwe,” Emmerson Mnangagwa, President of Zimbabwe, said.

Many UAE companies are now investing their hard-earned wealth in different countries, instead of the UAE economy – which has matured and saturated. Due to this, the return on investment and rental returns have reduced drastically over the last few years, thus forcing UAE’s home-grown companies to look elsewhere for better returns. As a result, the announcement of new projects in the UAE has drastically declined. Countries like Zimbabwe offers a better return on investment.

Zim Cyber City was proposed to the President  by Mulk International during his visit to the UAE at the Dubai World Expo 2020. The project is under the patronage of the Zimbabwe President, who has granted Mulk International an exclusive licence to establish a blockchain and digital assets special economic zone.

Responding to a question on what this project means to the Government of Zimbabwe, Emmerson Mnangagwa told a press conference in Harare: “When I met Mr Shaji Ul Mulk, during Dubai Expo 2020 in March this year, he proposed to me to establish a Smart City. I told him, if you can build something with the same quality as in Dubai, then, yes – by all means come and develop it.

“Zim Cyber City reflects the fact that Zimbabwe is now open for foreign investment. This will complement the development of a new Government Administration in a new urban development in Mount Hampden, New Harare. It is a Smart City that will attract knowledge workers and investment in new technologies.

“Over the last few years, we have liberalized our investment laws to attract foreign investment and I am glad that Mr Shaji Ul Mulk and his colleagues are investing in our economy. This is the beginning of a new journey for Zimbabwe and we are happy that the first investment project is coming from the UAE.”

This is the first such large-scale investment by a UAE-based business house into Zimbabwean economy that will strengthen the bilateral relationship between the UAE and Zimbabwe. Mulk Holdings, the parent company of Mulk International, owns Alubond USA, the world’s largest aluminium composite panel (ACP) and has investment in Africa, Asia and Europe.

Zim Cyber City is the first real estate investment in Zimbabwe channelled through the Zimbabwe Global Investments (ZGI) Special Economic Zone (SEZ) programme, approved by the Zimbabwe President and awarded through the Ministry of Finance and Economic Development.

Thanking the President and the Government of Zimbabwe, Nawab Shaji Ul Mulk, Chairman of Mulk International, says, “President H.E. Emmerson Mnangagwa, has whole-heartedly supported Mulk International’s first Zimbabwean endeavour. Zim Cyber City is the first of many investments that our group, Mulk International, has committed to delivering through the special economic status channel of Zimbabwe Global Investments.

“Zim Cyber City will be a unique, iconic development, offering multi-fold economic benefits to commercial enterprises combined with lavish, uptown living.”

Responding to a question, Shaji Ul Mulk  said, “Zim Cyber City is our first such venture in Zimbabwe – and definitely not the last project. Today, we are commencing the project that will create thousands of construction jobs in the next few months.”

He praised the fast-paced licensing by Government of Zimbabwe, adding, “We approached the government in March to develop the Zim Cyber City. In three months’ time, the government allocated land, cleared all the permissions for us to break the ground. Things happen here in days, instead of months and we are pleased to launch the project at the right time and the right place.”

The master-plan of the project includes 250 townhouses, more than 80 luxury villas, a number of apartment blocks, hi-tech office facilities, high-end retail arcade, a 15-storeyed commercial tower, landscaped gardens – all within a high-security gated community with health club, community centre and other facilities.

Zim Cyber City will facilitate special window clearance of blockchain and digital assets licenses and bank accounts, cutting-edge office spaces and high-end residential living for all individuals and entities operating and living in the community. It will include 24/7 advanced, built-in surveillance technology that is directly connected to local law enforcement authorities for maximum security of the residents.

Adnan Ul Mulk, Vice-Chairman of Mulk International, says, “Mulk International has worked diligently to understand the market and gain greater insight into Zimbabwe’s culture and its bountiful opportunities. The depth of resources and advanced digital capabilities across industries gives Zim Cyber City concrete, long-term growth prospects.

“We are keen to witness Zim Cyber City’s role in the successful integration of blockchain and crypto technology and premium, residential living. I am thankful to The President, H.E Emmerson Mnangagwa, for his staunch support in making Zim Cyber City a project of national importance.”

Corporate license holders within the Zim Cyber City will enjoy a bouquet of incentives including free repatriation of capital and profits without any limit caps; ease of fund transfers in and out of the country through local or foreign bank accounts without any caps; exemption from paying all taxes for a period of 5 years; freehold resale of the real estate and permission to employ foreign staff at a flat rate of 15 percent tax.

Mount Hampden, in Mashonaland West Province, Zimbabwe is about 11 miles North West from the capital, Harare. Along the Old Mazowe Road, this area of 11.43 square kilometres has been allocated towards building a new city that represents a new era for Zimbabwe, as well as a special economic zone exclusively for investors.

A special economic zone for free trade and export, offering potential investors the ability to enter local and regional markets and access to infrastructure, facilities and ancillary services.

Mulk International is a multinational conglomerate with diversified business interests spanning primarily four sectors – Building Materials, Plastics, Healthcare and Cricket Assets. For more than two decades, Mulk International has been owning and managing a group of 18 companies under the leadership of Chairman Nawab Shaji Ul Mulk.

The company has achieved global recognition with its flagship brand Alubond emerging as the world’s largest exterior facade panel, and its T10 Cricket league growing 2000% in the last 5 years to become the second-largest cricket league in the world with a viewership of over 500 million.

The article Mulk starts work on $500m Zim Cyber City in Harare appeared first on Arabian Post.

OctaFX’s mobile trading platform was recognised as the best of its kind by public voting held by fxdailyinfo.com as part of its Forex Brokers Awards 2022.

KUALA LUMPUR, MALAYSIA – Media OutReach – 26 May 2022 – The global broker OctaFX received the ‘Best Mobile Trading Platform’ award from the international Forex news portal fxdailyinfo.com. The winners in 27 nominations of the Forex Brokers Award 2022 were determined by public voting, which makes the award particularly relevant, as it reflects the views of the global trading community.

‘OctaFX constantly works to ensure the highest quality across its extensive range of financial products. Its mobile trading platform has everything users need—from one-tap trading and easy account management to convenient analytical tools and user-friendly design,’ said Saifur Rahman Sumon, the official representative of fxdailyinfo.com.

The OctaFX press office commented on the award. ‘This vote of confidence we received at Forex Brokers Award 2022 from the Forex community confirms our ability to lead the mobile trading industry with our lightning-fast application enabling traders to effectively manage their accounts and make timely investment decisions.’

The OctaFX Trading App, which won the award, allows users to trade, access analysis tools, and manage their personal profiles in one easy-to-use mobile platform compatible with both iOS and Android devices. Multiple built-in tools help traders control real, demo, and contest accounts simultaneously, as well as make deposits and withdrawals.

OctaFX has repeatedly received awards in the Forex Brokers Award organised by fxdailyinfo.com, including ‘Best ECN/STP Broker’ in 2019, ‘Best Forex Broker Asia’ in 2019 and 2020, and ‘Best Trading Platform’ in 2021.

About OctaFX

OctaFX is a global broker that provides online trading services worldwide since 2011. The company is involved in a comprehensive network of charity and humanitarian initiatives, including improvement of educational infrastructure, short-notice relief projects, supporting local communities and small to medium enterprises.

In that sense, OctaFX has won more than 45 awards since its foundation, including the 2021 ’Best Forex Broker Asia’ award and the 2020 ‘Most Transparent Broker’ award from Global Banking & Finance Review and Forex Awards, respectively.

#OctaFX

The article OctaFX wins Best Mobile Trading Platform award at Forex Brokers Award 2022 appeared first on Arabian Post.

By Saifur Rahman

 The UAE will invest more than US$6 billion in to Kazakhstan economy in the coming years, Askar Mamin, Prime Minister of Kazakhstan, said at a Kazakhstan Trade and Investment Forum held at the Expo 2020.

Two sovereign wealth funds – UAE’s ADQ and Kazakhstan’s Samruk-Kazyna signed an agreement to develop a joint holding company on the sidelines of the day-long Kazakhstan Trade and Investment Forum, that will build upon a recent joint declaration by the two countries made in October this year – that stipulates that the UAE will invest more than US$6 billion into the energy and infrastructure sector of Kazakhstan. The UAE investment will be channeled through the new energy holding company.

“The UAE has long become our number one economic partner in the region, having invested more than $4 billion in the Kazakhstani economy since 1991. More than 250 companies with UAE participation successfully operate in our economy today, contributing to our ever-expanding ties with your nation,” he said.

“This October, we have signed the historical Joint Declaration on Establishment of a Long-term Strategic Partnership to Develop Projects in Priority Industries, that will drive more than $6 billion UAE investment in the priority sectors of the Kazakhstani economy.

“These are the sectors that we view as the drivers of the long-term expansion and diversification of our production. The document has, without exaggeration, been a landmark event in Kazakhstan-UAE bilateral relations.”

Referring to the agreement signed at Dubai Expo, Prime Minister Askar Mamin said, “The resulting agreements that we are signing today, namely the Strategic Agreement between Samruk Kazyna and ADQ on the Establishment of the Energy Holding and the Term Sheets on the projects in the renewable energy, will undoubtedly mark the turning point for the field and generate great value for both the Kazakhstani and the UAE economies.”

In his speech, Suhail M. Al Mazrouei, UAE Minister for Energy and Infrastructure, said, “The US$6 billion investment is a start, which will be followed by even a higher investment that will be made by the private sector. In future, the investment will be driven by the private sector.”

He urged the UAE companies to take advantage of the opportunities in Kazakhstan economy – which is growing year on year.

Kazakhstan economy jumped 17 times in the last 30 years since gaining Independence in 1991, turning it into the wealthiest country in the Central Asia. It has attracted more than $400 billion in Foreign Direct Investment (FDI), that led major upgrades in its productive capacity.

The country’s trade turnover expanded from $1.5 billion to $100 billion as our nation integrated ever so deeply in the global supply and production chains.

Prime Minister Askar Mamin said, in the first 6 months of 2021 the FDI increased more than 30 percent, as the global markets increasingly see it as a reliable and stable destination for capital. Investment in fixed capital in the non-mining sectors has expanded more than 14 percent as the domestic investors join the trend.

“As our trade partners turn to growth, we have been seeing major recovery in the foreign trade as well – the turnover expanded 12.7 percent to $72.8 billion. We expect it to exceed the $100 billion mark by the end of the year,” he said.

The article UAE to invest $6 billion in Kazakhstan appeared first on Arabian Post.

By Saifur Rahman

COVID-19 hit the Emirates Group, which includes world’s largest international airline Emirates and its ticketing and ground handling arm Dnata, with a US$6.0 billion (Dh22.1 billion) net loss in 2020-2021 financial year ending March 2021, compared with an Dh1.7 billion (US$456 million) profit for reported for 2019-2020 financial year.

This is the airline’s first loss in more than three decades and the second annual loss reported in the airline’s 35-year history.

Emirates Group revenue of US$9.7 billion (Dh35.6 billion) was impacted by worldwide travel restrictions and border closures during the entire financial year.

The Group’s revenue declined 66 percent to US$9.7 billion (Dh35.6 billion) over the previous year’s results. The Group’s cash balance was down 23 percent to US$5.4 billion (Dh19.8 billion), from the previous year mainly due to weak demand caused by the various pandemic related business and travel restrictions across all of the Group’s core business divisions and markets.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “The COVID-19 pandemic continues to take a tremendous toll on human lives, communities, economies, and on the aviation and travel industry. In 2020-21, Emirates and Dnata were hit hard by the drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions.

“Our top priorities throughout the year were: the health and wellbeing of our people and customers, preserving cash and controlling costs, and restoring our operations safely and sustainably. Emirates received a capital injection of US$3.1 billion (Dh11.3 billion) from our ultimate shareholder, the Government of Dubai, and Dnata tapped on various industry support programmes and availed a total relief of nearly Dh800 million in 2020-21. These helped us sustain operations and retain the vast majority of our talent pool. Unfortunately, we still had to make the difficult decision to resize our workforce in line with reduced operational requirements.”

Emirates Group last year fired 31 percent of its total workforce to 75,145 employees, in order to reduce the loss.

“Laying professionals is a very painful decision, which was crucial for the airline to be able to reduce the operating losses. This will help the airline to rebound and be more agile this year to return to the breakeven point,” said an aviation analyst, requesting anonymity.

 “Emirates did a good job in reducing the net losses to a manageable level. This will help it to bounce back in the next 1-2 years.”

In 2020-21, the Group collectively invested US$1.3 billion (Dh4.7 billion) in new aircraft and facilities, the acquisition of companies, and the latest technologies to position the business for recovery and future growth. It also continued to invest resources towards environmental initiatives, as well as supporting communities and incubator programmes that nurture talent and innovation to drive future industry growth.

The news of Emirates first net loss in more than 30 years comes as the global airline industry grapples with $126.4 billion loss, according to International Air Transport Association (IATA) which expects net airline industry losses of $47.7 billion in 2021.

 “This crisis is longer and deeper than anyone could have expected. Losses will be reduced from 2020, but the pain of the crisis increases. There is optimism in domestic markets where aviation’s hallmark resilience is demonstrated by rebounds in markets without internal travel restrictions. Government imposed travel restrictions, however, continue to dampen the strong underlying demand for international travel. Despite an estimated 2.4 billion people travelling by air in 2021, airlines will burn through a further $81 billion of cash,” said Willie Walsh, IATA’s Director General.

Emirates Airline

Due to ongoing pandemic-related flight and travel restrictions, Emirates Airline reported a loss of US$5.5 billion (Dh20.3 billion) compared to the previous year’s US$288 million (Dh1.1 billion) profit, and a negative profit margin of 65.6 percent.

This includes a one-time impairment charge of Dh710 million (US$193 million) mainly relating to certain aircraft which are currently grounded and are not expected to return to service before their scheduled retirement within the next financial year.

Emirates Airline’s total passenger and cargo capacity declined by 58 percent to 24.8 billion ATKMs at the end of 2020-21, due to pandemic related flight and travel restrictions including a complete suspension of commercial passenger services for nearly eight weeks as directed by the UAE government from 25 March 2020.

Emirates carried 6.6 million passengers (down 88%) in 2020-21, with seat capacity down by 83 percent. The airline reports a Passenger Seat Factor of 44.3 percent, compared with the previous year’s passenger seat factor of 78.5 percent; and a 48 percent increase in passenger yield to 38.9 fils (10.6 US cents) per Revenue Passenger Kilometre (RPKM), due largely to a favourable route mix, fares and continued healthy demand for premium seats.

Emirates received three new A380 aircraft during the financial year and phased out 14 older aircraft comprising of 9 Boeing 777-300ERs and 5 A380s, leaving its total fleet count at 259 at the end of March. Emirates’ average fleet age remains at a youthful 7.3 years. Emirates’ order book for 200 aircraft remains unchanged at this time.

With significantly reduced and constrained capacity deployment across most markets, Emirates’ total revenue for the financial year declined 66 percent to US$8.4 billion (Dh30.9 billion).

Total operating costs decreased by 46 percent from last financial year. Cost of ownership (depreciation and amortisation) and employee cost were the two biggest cost components for the airline in 2020-21, followed by fuel, which accounted for 14 percent of operating costs compared to 31 percent in 2019-20.

The airline’s fuel bill declined by 76 percent to US$1.7 billion (Dh6.4 billion) compared to the previous year, driven primarily by 69 percent lower uplift in line with capacity reduction.

Dnata

Dnata recorded a loss of US$496 million (Dh1.8 billion) for the first time. This includes impairment charges of US$209 million (Dh766 million) on goodwill and other intangible assets across all its divisions.

With reduced flight and travel activity across the world, Dnata’s total revenue decreased by 62 percent to US$1.5 billion (Dh5.5 billion). Dnata’s international business accounts for 62 percent of its revenue.

Dnata continued to lay the foundations for future growth with investments in 2020-21 amounting to Dh328 million (US$89 million). Its operating costs decreased by 48 percent to US$2.0 billion (Dh7.4 billion), in line with reduced operations in its Airport Operations, Catering and Travel divisions across the world.

Dnata’s cash balance was US$1.3 billion (Dh4.7 billion), a decline by 12 percent. Cash used in financing activities, primarily payments for loans and leases, amounted to US$149 million (Dh548 million), while the business utilised net cash of Dh149 million (US$41 million) in essential investing activities.

The number of aircraft turns handled by Dnata in the UAE declined by 59 percent to 78,000. This reflects the impact of the suspension of scheduled passenger flights at both Dubai airports (DXB and DWC) in March 2020 as part of the UAE’s pandemic containment measures. dnata’s cargo handling declined by 18 percent to 575,000 tonnes, reflecting the reduced available flight capacity in the overall air cargo market over the year.

Sheikh Ahmed said: “No one knows when the pandemic will be over, but we know recovery will be patchy. Economies and companies that entered pandemic times in a strong position, will be better placed to bounce back. Until 2020-21, Emirates and Dnata have had a track record of growth and profitability, based on solid business models, steady investments in capability and infrastructure, a strong drive for innovation, and a deep talent pool led by a stable leadership team. These fundamental ingredients of our success remain unchanged. Together with Dubai’s undiminished ambitions to grow economic activity and build a city for the future, I am confident that Emirates and dnata will recover and be stronger than before.”

He concluded: “In the year ahead, we will continue to adopt an agile approach in responding to the dynamic marketplace. We aim to recover to our full operating capacity as quickly as possible to serve our customers, and to continue contributing to the rebuilding of economies and communities impacted by the pandemic.”

Saifur Rahman is Executive Editor of Arabian Post

The article COVID-19 causes Emirates Group US$6 billion loss in 2020-21 appeared first on Arabian Post.

By Saifur Rahman

Bilateral trade between Portugal and the UAE grew to US$394.20 million (€324 million) in 2020, up from US$358.3 million in 2019, according to a top official.

This reflects the fact that the two-way trade between the two countries increased during COVID-19 pandemic.

The volume of non-oil trade exchange between the two countries during the past 10 years amounted to about US$2.89 billion, while the mutual visits and trade missions were crowned with the signing of about 13 strategic partnership agreements.

“The UAE and Portugal share a very warm relationship and we see the UAE as an economic gateway for our products and services in to the Middle East. Portugal exported €210.3 million worth of goods to the UAE while it imported €113.7 million worth of goods from the UAE last year,” Joaquim Moreira De Lemos, Ambassador of Portugal to the UAE, told the Arabian Post.

He was talking on the sidelines of a trade exhibition at the Dubai World Trade Centre, where 26 Portuguese companies were showcasing their high-value home décor and hospitality décor products.

He said, his country is looking at offering high-value natural products to the UAE consumers.

“We are not in the market for low-quality and high-quantity products. Portugal has a lot of high-quality environmentally-friendly and natural products that fits into the luxury lifestyle of UAE’s cosmopolitan consumers and we are introducing products to suit their needs, he added.

Around 35 Portuguese companies are active in the UAE, while a greater number of Portuguese companies are being represented by a number of local businesses in the UAE. More than 1,029 Portuguese companies are exporting their products to the UAE.

The UAE is home to more than 6,000 Portuguese nationals living and working in the UAE.

After falling sharply in 2020, GDP is projected toincrease by 3.7 percent in 2021 and 4.9 percent in 2022, according to a report by the OECD. Portugal faced one of the world’s worst surges in COVID-19 infections in early 2021. Hospitals almost reached full capacity, putting pressure on the healthcare system. A second national lockdown was imposed in mid-January for two months.

Since March, containment measures have been progressively lifted as the sanitary situation improved. The rollout of vaccination has been constrained by the slow supply of vaccines as in other European countries. About 70 percent of the population are expected to be vaccinated by August, according to the national vaccination plan.

“Economic activity is set to pick up with the progressive lifting of containment measures and the recovery of tourism, especially from European countries, during the 2021 summer season. As vaccination accelerates and the EU support starts being implemented, GDP growth is projected to reach 4.9 percent in 2022,” the report said.

Portugal’s investments in the UAE, between 2018 and 2019, stood at around €20 million, the Ambassador said.

“The UAE investment in Portugal, after a period of growth from 2015 to 2018, registered a drop in 2019, but during the last five years, we registered a growth of 13 percent,” Joaquim Moreira De Lemos said. “Between Jan./Sep. 2020 comparing to the same period in 2019, the UAE investment in Portugal increased 33.5 percent with a value of 32.2 million euros.”

The Ambassador said, Portugal will demonstrate its natural and sustainability products and superior services at the Expo 2020.

“We have developed a large pavilion spread across 2,000 square metres plot of land that cost us €20 million to build,” Joaquim Moreira De Lemos said. “A large number of delegates from Portugal will visit the Expo 2020 and we are upbeat about the mega event.”

He said, Portugal has been participating at various exhibitions and conferences in the UAE to promote its products and services in the UAE.

“The regular presence of the brand Associative Design – The Best of Portugal since 2016 in renowned events of the Middle East, such as Dubai Design Week, Downtown Design Dubai, Idf Oman and the Hotel Show Dubai, allow the expansion of the brand and the promotion of ‘The Best of Portugal ‘in the surrounding markets in order to take advantage of the investment initiated in the region in 2016,” he said.

“Bringing Portuguese flair and creativity to the Middle East, the Associative Design showcase will present a Concept of a Portuguese House, with products 100% designed and produced in Portugal.

“In this show, visitors had the chance to see a mix of innovation, sustainability and contemporary design apply in the furniture, lighting, textiles and objects d’art included in this exhibition.”

The article UAE-Portugal bilateral trade hits US$394 million in 2020 appeared first on Arabian Post.

By Saifur Rahman

Singapore’s Social Loan Company and Dubai-based Aafaq Islamic Finance announced a partnership to deliver mobile-first loan platform that could democratise and disrupt the US$90.91 billion (Dh333.88 billion) consumer credit market in the UAE.

The partnership with The Social Loan Company (TSLC), a Singapore-based AI/ML-powered cutting-edge big data-driven credit enablement platform company, will help Aafaq Islamic Finance to set up a trend-setting non-bank, mobile-first loan platform to deliver financial access to the underserved young digital natives in the MENA region.

TSLC has set up its regional headquarters in the UAE to bring in its AI-driven full-stack neo banking platform for the underserved digital natives across chosen markets in the region.

TSLC and Aafaq will enable personal loans, pay later and virtual credit lines all in one digital wallet. Bundled-in, splitable and consumable within minutes of origination designed for middle-income borrowers who need help with essential day-to-day purchase decisions, paying down and consolidating high interest debt, or to meet unexpected expenses. The partnership will be committed to democratising access to banking tools to secure affordable credit, borrow and spend responsibly, build wealth and save smartly, all within a hyper-inclusive platform.

TSLC said, it will start lending unsecured loans to the UAE’s unbanked population.

“The UAE has a strong infrastructure where we feel we could support the consumers who needs credit the most, to the tune of US$100 to US$1,500 range – for meeting their certain requirements,” Deepak Saluja, Co-Founder, Group CEO & Board Member, TSLC, told the Arabian Post on the sidelines of a press conference organized to announce the deal with Aafaq Islamic Finance.

“Our research shows that about 50 percent of the UAE’s 9.9 million people are unbanked and 60 percent of those remain underserved, making our target more than three million people in the UAE, who could benefit from instant loan disbursement to carry on with their daily lives.”

Before the COVID-19 pandemic in 2020, the total population rose to 9.9 million – of which only 30.7 percent are women. The median age in the UAE is 32.6 years. As the population of the UAE continues to grow, consumer credit demand is also expected to grow. Nearly half of the UAE’s 9.9 million people are unbanked or underserved – with less or no access to credits, living on the meagre salary paid to them through the Wage Protection System (WPS).

“Foreigners from South Asia, and the Middle East mostly populate the UAE, with expatriates making up 88.5 percent of the population. However, this group also makes up the majority of the population living below the poverty line, which is defined by those who earn less than US$20 a day. Emiratis have the highest standards of living in the country, while immigrants have the lowest,” said a recent report by Santander Trade.

“According to a survey carried out in 2017, nearly half of the residents of the UAE were in debt, and 12.8 percent of people were actively looking for a loan. The most common large purchase that people in the UAE are borrowing for is the acquisition of a house, followed by starting a business, going on holiday, and having a wedding.”

While Islamic banks do not compound the profit rates, conventional banks in the UAE do charge compounded interest. For many people in the UAE, cash is dying. Consumers are increasingly living in a cashless world and abandoning bills and coins in favour of debit and credit cards. In 2018, almost half of all purchases made in the country were paid using cards, which is more than all the other payment types combined.

Deepak Saluja said his company’s partnership with Aafaq Islamic Finance is exclusive.

“We will not tie-up with any other financial institutions in the region,” he said. “Moving forward, however, we would like to get into the Micro, Small and Medium Enterprises (MSMEs) market where we see a great opportunity for us.”

Although banks had stopped lending to the MSME sector in 2016 to a large extent, it has started to grow in recent years. Bank lending to MSMEs increased by Dh3.3 billion to reach Dh92.8 billion in 2020, 3.7 percent higher than the level at the end of 2019.

Rashed Mahboob Al Qubaisi, CEO of Aafaq Islamic Finance said: “We are pleased that Aafaq was selected by TSLC as a strategic partner in the MENA region. This partnership allows Aafaq to connect more deeply with its customers by providing differentiated Sharia-compliant financial transactions in an environment that is end-to-end digital, safe and secure.”

Al Qubaisi pointed out that “what distinguishes this new partnership between Aafaq and TSLC is the new possibility of extending our client base to include the young and underserved digital natives in this region.”

“TSLC is looking to usher in a new era of Artificial Intelligence-based financial services in the MENA region. There is no doubt that our current and future customers will reap rich rewards from the formidable combination of our legacy infrastructure with their proven expertise and track record of success in financial technology.” added Al Qubaisi.

TSLC recently set up Digital Collective Technologies Ltd., its wholly-owned subsidiary in Abu Dhabi Global Market (ADGM) for its centralized world-class tech and product leadership teams to operate from its regional headquarters at One Central, Dubai, UAE.

TSLC is currently fully functional in India as an end-to-end tech enabled, integrated, fully-automated diversified millennial consumer finance company under the brand name, CASHe – India’s leading consumer lending platform supported with proprietary AI-driven underwriting, and straddling the entire value chain of digital lending from in-app loans to embedded finance and BNPL. TSLC is on an ambitious global expansion drive, looking at key markets in West, South and Southeast Asia, as well as Latin America and Sub Saharan Africa.

Deepak Saluja said: “To launch in the Middle East, we needed a super-progressive institution with an impeccable track record, connected with us on a common mission to bring the underserved, everyday consumers into mainstream banking. Our partnership with Aafaq is a testimony to our global advocation of a JV-driven win-win model of co-operation between incumbents and challengers.

“Our hyper-inclusive proprietary platform, nuanced for this region, is designed to serve the moderate income, near-prime consumers. This transformational partnership is expected to bring about a paradigm shift in the fundamentals of credit assessment and delivery, anchored on the joint objective of building a more inclusive financial system.

“Together with Aafaq, we will redefine the financial landscape, transform the world of online lending in the Middle East and fundamentally change the way everyday people approach their relationship with money and banking in this region. Our ground-breaking ML-powered alternate data-driven credit-scoring engine will enable faster and better credit decisions, lower the barriers of borrowing and deliver access to honest, affordable and transparent credit.”

The UAE’s regulatory framework is designed to foster innovation within this region. Given that MENA region has amongst the highest smartphone penetration and Fintech adoption rates in the world, going end-to-end digital has moved from being a side-show to the front and centre as a ‘must-have’ and a key strategic imperative to help achieve the digital transformation in the most holistic way possible, he said.

The article Singapore’s TSLC joins Aafaq to disrupt UAE consumer credit market appeared first on Arabian Post.

By Saifur Rahman

Dubai: Bilateral trade between Poland and the UAE has exceeded US$1 billion in recent years, making the UAE the top trading partner of Poland in the Middle East, according to a top government official.

“Our total trade with the GCC countries exceeded US$4 billion in recent years (US$4.9 billion In 2019 and US$4.1 billion in 2020), making it the largest trading partner of Poland among Arab countries,” Grzegorz Piechowiak, Secretary of State in the Ministry of Economic Development, Labour and Technology of Poland, told the Arabian Post at the INDEX Exhibition that is currently undergoing at Dubai World Trade Centre.

“We are celebrating more than 30-years of friendship with the Gulf countries, especially the UAE which is the regional economic hub for our companies in the Middle East. I would like to welcome the UAE investors to invest in Poland which has further liberalized foreign investment rules.

“We are now expanding Special Economic Zones to attract foreign investment. Businesses in the UAE and the GCC countries could benefit from our growing economy that also serves a growing population of Europe and Central Asian region.”

Poland has emerged as a dynamic economy over the past 25 years and has become a major actor within Europe, being the tenth-largest economy in the EU. The country performed well during the 2014-19 period, with the real GDP growth rate generally exceeding 3 percent, driven by private consumption, according to a recent report.

In the second quarter of 2020, however, the spread of COVID-19 and the restrictions that followed caused a real GDP contraction of 8.9 percent quarter-on-quarter. Nevertheless, the country reacted well in Q3, with increases in industrial production, exports and household consumption, thus resulting in an overall GDP loss of 2.7 percent for the year 2020, a smaller decline compared to the EU average. As foreign demand should increase, the Polish economy is expected to turn to growth this year (+3.5%) and in 2022 (+4.5% – IMF’s April 2021 forecast), though much will depend on the global economic and sanitary recovery.

A large number of Polish exporters are currently showcasing their products and services at the World Trade Centre. Poland is the partner country of Index and the Hotel Show – the twin exhibitions that took off at Hall No. 1-4 at the Dubai World Trade Centre on May 31, 2021.

Mr Grzegorz Piechowiak said more than 100 Polish companies are active in the UAE through their agents and partners while more than 5,000 Polish businessmen and professionals live in the UAE.
“Their numbers are growing as we are deepening our engagement with the UAE and the GCC countries,” he said. “We are now focusing on the Middle East region to increase our exports and strengthen our trade and economic relationship. That’s why, we are going to participate in most of the incoming exhibitions in Dubai and the Middle East aggressively to boost our exports.

“We are going to promote our economy, culture and tourism through the Dubai World Expo 2020 – which provides us the largest branding opportunity to showcase Poland in the Middle East and we really appreciate the support of the UAE Government and the leadership of the country.”

Poland is participating at the Expo 2020 with a pavilion built on an 1,876 square metre plot of land at the Mobility area of the Expo 2020 site.

Poland will showcase its scientific development to offer the world sustainable and eco-friendly technologies inspired by nature. The objectives of Poland’s presence at EXPO 2020 in Dubai include both the strengthening of Poland’s image around the world and economic promotion. It plans to create a multidimensional presentation of technologies and companies representing sectors of strategic importance from the perspective of exports to Middle Eastern markets and, consequently, real growth in business transactions.

“We are going to showcase innovation and scientific development achieved by our country at the Expo 2020 pavilion. We will organise more than 30 missions and delegations from Poland visiting the pavilion and more than 800 events to promote our culture, heritage, nature, economic and scientific development in Poland,” Mr Piechowiak said.

Both the location – at the intersection of several main communication routes – and the interesting shape of the plot make it possible to prepare an attractive exhibition and thus catch the attention of a large number of visitors.

The Pavilion’s architecture refers clearly to the theme of mobility. It creates an open, upwards growing modular structure that invites visitors to relax in the shadow of a large roofing and to contemplate the installation floating above the guests’ heads – a kinetic sculpture depicting a flock of flying birds.

The wealth of nature, diversity of the landscape and strategic location in the centre of Europe make Poland the most important habitat for European migratory birds. Inviting the visitors to take part in this journey and look at the abundance of Polish avifauna is an opportunity to develop an intriguing multithreaded story not only about the beauty of Polish nature, but primarily about international exchange, mobility, the export of ideas and technological thought.

Poland will be represented as a strong centre of cooperation that uses scientific development to offer the world sustainable and eco-friendly technologies inspired by nature. What distinguishes it from other pavilions is an extended children’s zone, divided into a zone for toddlers and a workshop zone for older children. Having regard for the main theme of EXPO 2020 – “Connecting Minds, Creating the Future” – it addresses to younger generations, who will create the future of our world.

The article Poland’s Bilateral Trade with GCC Exceeds US$4 billion: Minister appeared first on Arabian Post.

By Saifur Rahman

Dubai Government has so far spent around Dh25 billion (US$6.81 billion) in developing the world’s first greenfield 5G-ready futuristic mini-city, Expo 2020 on a five square kilometre site, a top official said.

This is about Dh5.84 billion (US$1.59 billion) or 19 percent lower than the original budget of Dh30.84 billion (US$8.4 billion) estimated at the planning stage in 2013.

At the heart of the Expo 2020 site sits the Al Wasl Plaza – a centre-piece dome-shaped structure that will offer breath-taking shows and live contents for visitors when the pass by.

“The total investment in developing the Expo 2020 site, infrastructure, buildings and our own projects and pavilions would be around Dh25 billion, including Dh250 million spent on the Wasl,” Ahmed Al Khatib, Chief Development and Delivery Officer of Expo 2020 told The Arabian Post at the Arabian Travel Market.

“The cost also involved the extension of the Dubai Metro that crosses Expo 2020 site and associated infrastructure around the site. These costs, however, do not include the investment in developing various stand-alone national pavilions.”

Al Khatib said, the Expo 2020 site is the world’s first 5G-ready city and will also be the world’s first such Expo.

“It has been an exciting, a very complex and a very challenging project. It was planned as a futuristic project. It is going to be the first 5G-ready city of this kind in the world with internet connection will be provided through a dedicated line coming from Fujairah,” he said.

“Three of the 5-kilometre Expo 2020 site will be dedicated for events, making it the most vibrant exposition to have ever held.”

The dome’s huge steel crown was positioned at the top of the jewel of the site in an inspiring feat of precision engineering. Enclosing a space of 724,000 cubic metres and standing 67.5 metres tall – higher than the Leaning Tower of Pisa – the 130-metre-wide domed steel trellis encircles Al Wasl Plaza, a structure that will be the heart of the Expo 2020 site and set to become Dubai’s latest architectural landmark.

Weighing 550 tonnes of moulded steel, Al Wasl dome’s 22.5-metre crown had to be precisely positioned on top of the vertical trellis, with a margin of error of only three millimetres, he said. It was completed using a technique called strand-jacking. Including the structures and equipment required to lift the dome during this process, the total weight was 830 tonnes – equivalent to 600 saloon cars.

Fitted with state-of-the-art projectors, the dome will host performances from A-list global performers and other major celebrations, on key international occasions such as New Year’s Eve, Diwali and Chinese New Year as well as the national days of participating countries falling within its duration, starting October 1, 2021 till March 31, 2022.

Talking about the events calendar, Amna Abulhoul, Executive Creative Director at Expo 2020, said, “Al Wasl Plaza will be the heartbeat of the Expo 2020 experience and it is designed keeping the audience in mind.

“Al Wasl Plaza embodies the heart and soul of Dubai. We are deploying the latest technology to create visual contents that will be projected on the projection gallery fitted on the dome while live performance will continue throughout the day to create the right emotions.”

Developed within Dubai South, the 140-square kilometre new aviation city, Expo 2020 was initially been seen as a major boost for the emirate’s economy. It was initially projected to receive 25 million visitors during the six-month period.

“Expo 2020 Dubai’s long-term investment in the future of the country will boost its economy by Dh122.6 billion (US$33.4 billion) and support 905,200 job-years between 2013 and 2031,” Expo 2020 had said in a statement in 2019 citing an independent report published by global consultancy Ernst & Young.

“During the peak six-month period of the World Expo, the largest event to be held in the Arab World is predicted to add the equivalent of 1.5 per cent to UAE Gross Domestic Product.”

Crucially, small and medium enterprises, a core component of the UAE economy, will receive Dh4.7 billion in investment during the pre-Expo phase, supporting 12,600 job-years and in line with Expo 2020’s goal to foster innovation and support small businesses, it said.

With the COVID-19 pandemic, things however, might be different. Despite the current challenging situation posed by the Coronavirus, Dubai has already developed the city’s infrastructure, attracted massive private investment in real estate, hotels, tourism and hospitality sector – that will serve the city for at least another 10-15 years without having to invest in infrastructure.

Dubai’s residential market stock increased to 607,000 units with the addition of 10,000 units over the first quarter of 2021. For the remainder of 2021, an additional 46,000 units are expected to be added, making the total deliveries crossing 56,000 units in a year. Most of these supplies have been planned in anticipation of the possible increase in demand, due to Expo 2020 effect.

“The infrastructure and development works run up to the Expo 2020 has made Dubai future-ready and will serve the city’s growth for at least two decades, if not more,” said an analyst, requesting anonymity. “Private business houses and foreign investors have ploughed billions of dollars in real estate hotels, tourism and hospitality sectors to meet the growing demand anticipated during the Expo – which will serve the emirate for a long time to come. These supplies will serve Dubai for many years to come.”

The article Dubai Invests Dh25 billion on Expo 2020 site appeared first on Arabian Post.

By Saifur Rahman

Emirates Group, which operates Emirates Airline — the world’s largest carrier of international passengers – reported a US$3.8 billion (Dh14.1 billion) loss in the first half of its 2020-21 financial year starting April 1 to September 30, 2020, with a 74 percent fall in revenues to US$3.7 billion (Dh13.7 billion), down from US$ 14.5 billion (Dh53.3 billion) during the same period last year, due to COVID-19 travel restrictions and the lockdown since March 2020.

This includes US$3.4 billion (Dh12.6 billion) losses incurred by Emirates Airline and US$396 million (Dh1.5 billion) suffered by Dubai National Air Travel Agency (Dnata), the ticketing, reservation, airport operations and ground handling arm of Emirates Group.

This is the first recorded loss in more than 33 years in the company’s 35-year history. Despite the losses, the Group’s cash position on 30 September 2020 remained healthy at US$5.6 billion (Dh20.7 billion), compared to US$7 billion (Dh25.6 billion) as at 31 March 2020. Other than this, Emirates suffered losses only in its second year of operations. The airline, established in 1985, is part of Investment Corporation of Dubai, an investment arm of Dubai Government.

“This dramatic revenue decline was due to the COVID-19 pandemic which brought global air passenger travel to a halt for many weeks as countries closed their borders and imposed travel restrictions. As part of pandemic containment measures, Emirates and Dnata’s hub in Dubai also suspended scheduled passenger flights for 8 weeks during April and May,” the airline said in a statement.

Emirates Group managed to reduce its losses by undertaking certain drastic cost-cutting measures, including reducing its large manpower – one of the largest cost components – in its business. Its employee base, compared to 31 March 2020, is substantially reduced by 24 percent to an overall count of 81,334 as at 30 September 2020.

“This is in line with the company’s expected capacity and business activities in the foreseeable future and general industry outlook. Emirates and Dnata continue to look at every means to protect its skilled workforce, including participating in job saver programmes where these exist,” it said.

Emirates carried 1.5 million passengers between 1 April and 30 September 2020, down 95 percent from the same period last year.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: “We began our current financial year amid a global lockdown when air passenger traffic was at a literal standstill. In this unprecedented situation for the aviation and travel industry, the Emirates Group recorded a half-year loss for the first time in over 30 years.

“As passenger traffic disappeared, Emirates and dnata have been able to rapidly pivot to serve cargo demand and other pockets of opportunity. This has helped us recover our revenues from zero to 26% of our position same time last year.

“The Emirates Group’s resilience in the face of current headwinds is testimony to the strength of our business model, and our years of continued investment in skills, technology and infrastructure which are now paying off in terms of cost and operational efficiency. Emirates and dnata have also built strong brands and agile digital capabilities which continue to serve us well, and enabled us to respond adeptly to the accelerated shift of customer and business activities online over the past 6 months.”

Emirates half-yearly losses are better compared to the overall industry losses predicted by the International Air Transport Association (IATA), the global aviation industry watchdog.

IATA recently said the global aviation industry is expected to lose $84.3 billion in 2020. Revenues will fall 50 percent to $419 billion from $838 billion in 2019. In 2021, losses are expected to be cut to $15.8 billion as revenues rise to $598 billion.

“Financially, 2020 will go down as the worst year in the history of aviation. On average, every day of this year will add $230 million to industry losses. In total that’s a loss of $84.3 billion. It means that — based on an estimate of 2.2 billion passengers this year — airlines will lose $37.54 per passenger. That’s why government financial relief was and remains crucial as airlines burn through cash,” said Alexandre de Juniac, IATA’s Director General and CEO.

Passenger revenues are expected to fall to $241 billion (down from $612 billion in 2019). This is greater than the fall in demand, reflecting an expected 18 percent fall in passenger yields as airlines try to encourage people to fly again through price stimulation. Load factors are expected to average 62.7 percent for 2020, some 20 percentage points below the record high of 82.5 percent achieved in 2019.

Emirates Airline

Emirates, the largest carrier of international passengers, recorded loss of US$3.4 billion (Dh12.6 billion), compared to profit of US$235 million (Dh862 million), recorded in the same period last year.

This is the airline’s first recorded loss in more than three decades.

Emirates revenue, including other operating income, fell 75 percent to US$3.2 billion (Dh11.7 billion) compared with the US$12.9 billion (Dh47.3 billion) recorded during the same period last year. This result was due to severe flight and travel restrictions around the world relating to the COVID-19 pandemic.

Sheikh Ahmed added: “No one can predict the future, but we expect a steep recovery in travel demand once a COVID-19 vaccine is available, and we are readying ourselves to serve that rebound. In the meantime, Emirates and dnata remain responsive in deploying resources to serve our customers and meet demand.

“We have been able to tap on our own strong cash reserves, and through our shareholder and the broader financial community, we continue to ensure we have access to sufficient funding to sustain the business and see us through this challenging period. In the first half of 2020-21, our shareholder injected US$2 billion into Emirates by way of an equity investment and they will support us on our recovery path.”

Emirates reduced its operating costs by 52 percent against the overall capacity decrease of 67 percent. Fuel costs were 83 percent lower compared to the same period last year. This was due to a decrease in oil prices (down 49 percent compared to same period last year), as well as a 76 percent lower fuel uplift from substantially reduced flight operations during the six months period up to end of September. Fuel, which was the always the largest component of the airline’s cost in past reporting cycles, only accounted for 11 percent of operating costs compared with 32 percent in the first six months of last year.

Despite the significant drop in operations during the six months, Emirates’ EBITDA stood positive at US$79 million (Dh290 million) compared to US$3.6 billion (Dh13.2 billion) for the same period last year.

During the first six months of 2020-21, Emirates retired 3 older aircraft from its fleet as part of its long-standing strategy to improve overall efficiency, minimise its emissions footprint, and provide high quality customer experiences.

“As directed by the UAE General Civil Aviation Authority, Emirates temporarily suspended passenger flights on 25 March and worked closely with governments and embassies to operate repatriation services until Dubai International airport (DXB) re-opened for transit passengers and later for scheduled passenger flights. The airline also partnered with the health authorities to implement comprehensive pandemic health and safety measures onboard and on the ground, to safeguard its customers, employees and the communities it serves,” the airline said in a statement.

The airline also took its customer commitment to the next level, by expediting refunds, offering rebooking flexibility, setting up a COVID-19 travel information hub on its website to offer the latest updates on ever-changing travel requirements, and by launching the industry’s first COVID-19 medical cover for all passengers at no additional cost.

Emirates gradually restarted scheduled passenger operations on 21 May. By 30 September, the airline was operating passenger and cargo services to 104 cities.

Overall capacity during the first six months of the year declined by 67 percent to 9.8 billion Available Tonne Kilometres (ATKM) due to a substantially reduced flight programme over the past months, including the suspension of passenger flights at Dubai international airport for 8 weeks. Capacity measured in Available Seat Kilometres (ASKM), shrunk by 91 percent, whilst passenger traffic carried measured in Revenue Passenger Kilometres (RPKM) was down by 96 percent with average Passenger Seat Factor falling to 38.6 percent, compared with last year’s pre-pandemic figure of 81.1 percent.

Emirates carried 1.5 million passengers between 1 April and 30 September 2020, down 95 percent from the same period last year. The volume of cargo uplifted at 0.8 million tonnes has decreased by 35 percent while yield has more than doubled by 106 percent. This reflects the extraordinary market situation for air freight during the global COVID-19 crisis, where drastically reduced passenger flights led to limited available capacity while airfreight demand rose strongly.

Emirates was able to uplift 65 percent of its cargo volumes compared to the same period last year, which shows its cargo division’s outstanding agility in adapting its operations to provide air freight services in this new environment. In a very short time, Emirates Skycargo completed the partial retrofit of 10 Boeing 777-300ER passenger aircraft to transport freight on the main deck, introduced new operation protocols to enable the safe uplift of cargo in passenger cabins, rapidly restarted and scaled up its global cargo network, and put in place comprehensive bio-safety protocols for employees.

Dnata

Dubai National Air Travel Agency (Dnata), the ticketing, reservation, airport operations and ground handling arm of Emirates Group, revenue including other operating income declined 68 percent to US$644 million (Dh2.4 billion), compared to US$2 billion (Dh7.4 billion) last year.

Overall loss for Dnata is US$396 million (Dh1.5 billion), compared to last year’s profit of US$85 million (Dh311 million). This figure includes impairment charges of Dh689 million across Dnata’s international business divisions, mainly pertaining to goodwill.

Dnata’s Airport Operations remains the largest contributor to revenue with US$454 million (Dh1.7 billion), a 54 percent decline as compared to the same period last year. Across its operations, the number of aircraft handled by Dnata declined sharply by 71 percent to 102,917, and it handled 1.3 million tonnes of cargo, down 12 percent only.

Dnata’s Travel Division contributed US$26 million (Dh95 million) to revenue after US$488 million (Dh1.8 billion) for the same period last year, down 95 percent. The division reported a negative underlying total transactional value sales of US$67 million (Dh246 million) for the first time, after a positive contribution of US$1.6 billion (Dh5.9 billion) for the same period last year. This reflects the significant refund volume and pay-out in cancelled customer bookings mainly during the beginning of the pandemic.

Dnata’s Flight Catering operation, contributed US$116 million (Dh426 million) to its total revenue, down 76 percent. The number of meals uplifted declined by 84 percent to 8.3 million meals for the first half of the financial year after last year’s 51.9m record performance.

The article Emirates Group reports $3.8b first half loss appeared first on Arabian Post.

By Saifur Rahman

Finland, which is the world’s first country to develop a masterplan for sustainable zero-waste circular economy, will showcase the country’s expertise in this field at the World Expo 2020 that takes place in Dubai from October, 2020 till April 2021.

A circular economy is an economic system that is aimed at eliminating waste and creates a carbo-neutral environment by the continual use of resources. Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing and recycling to create a close-loop system, minimising the use of resource inputs and the creation of waste, pollution and carbon emissions.

Marianne Nissila, Ambassador of Finland to the UAE, said her country developed the prototype masterplan for the Circular Economy three years ago.

“We are now in a comfortable position to share our knowhow in this area with the rest of the world and Expo 2020 is a perfect platform for us to showcase our expertise and share them with other countries,” Marianne Nissila told the Arabian Post in a recent interview.

“Somebody’s waste is someone else’s raw material. Finland has implemented circular economy in all sectors of our economy – including healthcare sector – which will dominate as a key sector of our participation at the Expo 2020.

“More than 70,000 students in Finland study Circular Economy. Every year, we are producing experts and change agents in Circular Economy for ourselves and for other countries.”

The circular economy aims to keep products, equipment and infrastructure in use for longer, thus improving the productivity of these resources. All ‘waste’ should become ‘food’ for another process: either a by-product or recovered resource for another industrial process, or as regenerative resources for nature, e.g. compost. This regenerative approach is in contrast to the traditional linear economy, which has a ‘take, make, dispose’ model of production.

Nissila said, her country enjoys a very warm relationship with the UAE. Bilateral trade between Finland and the UAE remains healthy at 608 million euro (Dh2.49 billion) in 2018.

“Of this, Finnish exports to the UAE amounted 371 million euro and UAE’s exports to Finland reached 237 euro in 2018. This is a healthy trade exchange. However, this could go up and we are currently exploring more cooperation with the UAE in different sectors. We have recently conducted a number of visits by Finnish companies to the UAE to explore business opportunities and we hope these will result in a number of new deals and strengthen our economic relations with the UAE,” she said.

Finland is a Nordic country bordering Sweden, Russia and Norway. It has a population of 5.52 million, more than 25 percent of which lives in Helsinki – the capital city of the country. The country’s gross domestic product (GDP) reached US$257 billion with per capital GDP crossing US$46,559 in 2018.

Finnair, the country’s flag carrier and Fly Dubai offers direct flights between Dubai and Helsinki.

“In recent times, we have witnessed a 484 percent jump in the number of tourists from the UAE and this is growing. So, Finland is attracting more visitors from the UAE,” Nissila said.

“Also, we are witnessing a greater number of Finnish nationals travelling to the UAE as well. Once Emirates starts operating direct flights, the number of visitors will jump further. We are talking to Emirates Airline to start direct flights to Helsinki.”

Finland, officially the happiest country in the world, has already started construction of its national pavilion at the Expo 2020 site. Around 110 Finnish companies will participate at the Finnish Pavilion. The country’s participation is being handled by Business Finland – the trade and investment promotion arm of the Finland Government.

The Finnish pavilion has a budget of 10 million Euro, 50 percent of which will come from private sector companies who will sponsor the pavilion, said Severi Keinala, Commissioner General of Finland at Dubai Expo 2020 – the person-in-charge of organising the Finnish Pavilion at the Expo 2020.

“The pavilion has been designed in the form of an ice-scape that looks like a tent and has a Arabian-style majlis – to welcome visitors. So, while the exterior reflects ice and the very Finnish culture, it also reflects the Arabic culture when you enter the pavilion – shows our appreciation and respect to the local Arabic heritage and culture.

“Ours is one of the first pavilions to have started construction and it will be one of the first to be completed. It will showcase the essence of Finland and the future of Finland.”

The article Finland’s Expo 2020 participation to boost Dh2.49bn trade appeared first on Arabian Post.

By Saifur Rahman

Dubai: Emirates Group, which includes Emirates Airline and its ground handling and ticketing arm Dnata, reported an 8 percent growth in profits to Dh1.2 billion (US$320 million), despite a 2 percent decline in group revenues to Dh53.3 billion (US$14.5 billion) for the first six months of 2019-2020 financial year, starting April 1, 2019, compared to Dh54.4 billion (US$14.8 billion), during the same period last year, due to unfavourable currency movements in key markets that wiped off Dh1.2 billion from profits.

The decline in revenue took place despite a 13 percent decline in fuel cost that helped Emirates save Dh2 billion in fuel costs. However, profit growth was driven by increased passenger yield and seat load factor, coupled with operational efficiency.

“Profitability was up 8 percent compared to the same period last year, with the Group reporting a 2019-20 half-year net profit of Dh1.2 billion (US$320 million). The profit improvement was primarily due to the decline in fuel prices of 9 percent compared to the same period last year, however the gain from lower fuel costs were partially offset by negative currency movements.

 “Emirates Group revenue was declined 2 percent to Dh53.3 billion (US$14.5 billion) for the first six months of 2019-20, from Dh54.4 billion (US$14.8 billion) during the same period last year. This slight revenue decline was mainly due to planned capacity reductions during the 45-day Southern Runway closure at Dubai International airport (DXB), and unfavourable currency movements in Europe, Australia, South Africa, India, and Pakistan.

The Group’s cash position on 30th September 2019 stood at Dh23.0 billion (US$6.3 billion), compared to Dh22.2 billion (US$6.0 billion) as at 31^st March 2019.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: “The Emirates Group delivered a steady and positive performance in the first half of 2019-20, by adapting our strategies to navigate the tough trading conditions and social-political uncertainty in many markets around the world. Both Emirates and dnata worked hard to minimise the impact of the planned runway renovations at DXB on our business and on our customers. We also kept a tight rein on controllable costs and continued to drive efficiency improvement, while ensuring that our resources were deployed nimbly to capitalise on areas of opportunity.

“The lower fuel cost was a welcome respite as we saw our fuel bill drop by Dh2.0 billion compared to the same period last year. However, unfavourable currency movements wiped off approximately Dh1.2 billion from our profits.

“The global outlook is difficult to predict, but we expect the airline and travel industry to continue facing headwinds over the next six months with stiff competition adding downward pressure on margins. As a Group we remain focussed on developing our business, and we will continue to invest in new capabilities that empower our people, and enable us to offer even better products, services, and experiences for our customers.”

The Emirates Group’s employee base remained unchanged compared to 31 March 2019, at an overall average staff count of 105,315. This is in line with the company’s planned capacity and business activities, and also reflects the various internal programmes to improve efficiency through the implementation of new technology and workflows.

“The half-yearly result shows that Emirates is capable of navigating through challenging economic conditions by strengthening operating efficiencies. Despite losing Dh1.2 billion in currency exchange, it was able to manage profits, with a Dh1 billion gain in fuel cost. The airline was able to offset the loss in passenger number with higher passenger yield and higher seat load factors. In addition to these, a stricter control on cost has helped the Group to report profits in a very challenging economic environment,” an aviation analyst said, requesting anonymity.

Emirates Airline net profit jumped 282 percent to Dh862 million (US$235 million) in the first half of the 2019-20 financial year, compared to last year, despite a 3 percent decline in revenue, to Dh47.3 billion (US$12.9 billion) compared with to Dh48.9 billion (US$13.3 billion) recorded during the same period last year.

“This result was driven by increased agility in capacity deployment, with healthy customer demand for Emirates’ products driving improved seat load factors and better margins,” the airline said.

Emirates operating costs shrunk by 8 percent against the overall capacity decrease of 7 percent. On average, fuel costs were 13 percent lower compared to the same period last year, this was largely due to a decrease in oil prices (down 9 percent compared to same period last year), as well as a lower fuel uplift due to reduced capacity during 45-day runway closure at DXB. Fuel remained the largest component of the airline’s cost, accounting for 32 percent of operating costs compared with 33 percent in the first six months of last year.

During the first six months of 2019-20, Emirates received 3 Airbus A380s, with 3 more new aircraft scheduled to be delivered before the end of the 2019-20 financial year. It also retired 6 older aircraft from its fleet with a further 2 to be returned by 31 March 2020. The airline’s long-standing strategy to invest in the most advanced wide-body aircraft enables it to improve overall efficiency, minimise its emissions footprint, and provide high quality customer experiences.

In the first six months of its financial year, Emirates added two new passenger routes: Dubai-Bangkok-Phnom Penh, and Dubai-Porto (Portugal). As of 30 September, Emirates’ global network spanned 158 destinations in 84 countries. Its fleet stood at 267 aircraft including freighters.

 Overall capacity during the first six months of the year declined by 7percent to 29.7 billion Available Tonne Kilometres (ATKM) mainly due to the DXB runway closure and reduction in fleet during this 45-day period. Capacity measured in Available Seat Kilometres (ASKM), shrunk by 5 percent, whilst passenger traffic carried measured in Revenue Passenger Kilometres (RPKM) was down by 2 percent with average Passenger Seat Factor rising to 81.1 percent, compared with last year’s 78.8 percent.

Emirates carried 29.6 million passengers between 1 April and 30 September 2019, down 2 percent from the same period last year, however, passenger yield increased by 1 percent period-on-period. The volume of cargo uplifted at 1.2 million tonnes has decreased by 8 percent while yield declined by 3 percent. This reflects the tough business environment for air freight in the context of global trade tensions and unrest in some key cargo markets.

Dnata

The revenue of Dubai National Air Travel Agency (Dnata) including other operating income, increased 5 percent to Dh7.4 billion (US$2.0 billion), from Dh7.0 billion (US$1.9 billion) last year. This performance was underpinned by robust business growth and further global expansion, particularly in its catering business.

However, overall profit for Dnata was down by 64 percent to Dh311 million (US$85 million), compared to last year’s result which included an Dh321 million one-off gain from the divestment of Dnata’s 22 percent stake in the travel management company Hogg Robinson Group (HRG). Dnata’s half year profit for 2019-20 was further impacted by the bankruptcy of Thomas Cook, one of its major customers for Dnata’s travel and catering businesses in the UK, resulting in an impairment loss on trade receivables and intangible assets amounting to Dh84 million.

Dnata continued to strengthen its global capabilities in ground handling, catering and travel services, with operations spanning over 35 countries. In the first half of 2019-20, Dnata’s international operations accounted for over 72 percent of its revenue, compared to 68 percent during the same period last year.

Dnata’s airport operations remains the largest contributor to revenue with Dh3.6 billion (US$983 million), a slight increase as compared to the same period last year. Across its operations, the number of aircraft handled by Dnata remained steady with 351,194, and it handled 1.5 million tonnes of cargo, down 6 percent.

Organic growth across Dnata’s international ground handling business with key contract wins across US locations, and improved performance in markets such as Italy, Singapore, Switzerland and Iraq, helped drive Dnata’s revenue and compensate for the negative currency impact of approximately Dh86 million. In the UAE, Dnata acquired full ownership of freight forwarding company, Dubai Express, which bolstered its revenues in the first half year of 2019-20, and helped soften the impact of losses due to the 45-day runway closure at DXB.

Dnata’s travel division contributed Dh1.8 billion (US$488 million) to revenue, up 7 percent from the same period last year. The division’s underlying total transactional value sales remained at Dh5.9 billion (US$1.6 billion).

The strong revenue contributions from its new acquisitions including Tropo in Germany, and Dunya Travel, helped offset weaker travel demand in other key travel markets, as well as the negative impact of the strong US dollar against the Euro and Pound Sterling.

Dnata’s flight catering operation, contributed Dh1.8 billion (US$479 million) to its total revenue, up 54 percent. The number of meals uplifted increased by 67percent to 51.9 million meals for the first half of the financial year.

This significant uptick is largely attributed to the contributions from its recently-acquired catering businesses in Australia (Q Catering Limited and Snap Fresh Pty Limited), and in the US (121 Inflight Catering); as well as the expansion of Dnata’s own catering facilities in the US including at Houston, Boston, and Los Angeles.

The article Emirates Group profit grows 8% to Dh1.2bn appeared first on Arabian Post.

By Saifur Rahman

Valletta, Malta: The Government of Malta is seeking greater ties with the Gulf countries and India, in order to accelerate its economic growth, highest among the European Union countries, a top official said.

The country is also expected to make the best use of the World Expo 2020 in which it is preparing a three-pronged strategy to promote its culture, economy and heritage through government-to-government, business-to-business and business-to-consumer engagement, Mr Carmelo Abela, Maltese Minister for Foreign Affairs and Trade Promotion, told a visiting media delegation from the Gulf region.

“We are fully committed to the World Expo 2020 that will take place in Dubai and we see this as a great opportunity to promote our country and tourism,” Mr Carmelo Abela said. “As a country, we have so much to offer and we would utilise this opportunity to showcase our attractions through the Expo 2020.

“Our pavilion at the Expo 2020 will have a three-way engagement with the people – including government-to-government, business-to-business and business-to-consumer – in order to position ourselves as a major tourism destination.

“At the government level, we would use the Expo 2020 platform to attract foreign direct investment to Malta, while the business-to-business engagement will focus on promoting Maltese products market and the business-to-consumer engagement will be to promote tourism into Malta.

“We are working on a number of tourism products to attract visitors to Malta.

“As a peaceful country, we promote peaceful solution to any conflicts. We are concerned with the growing distrust in the Gulf and hope all parties could solve the differences through dialogue. We believe, sitting across the table and discussing issues is the best way to solve problems,” he said.

On the escalating global trade war, he said, “We are against trade wars. Trade could only grow through cross-border cooperation.”

Meanwhile, Malta is strengthening economic relations with India. Maltese Prime Minister Dr Joseph Muscat visited India in January this year and met Indian Prime Minister Narendra Modi.

He said, over the last two years, Malta and India strengthened bilateral ties. India has recently set up its high commission following a series of high-level bilateral visits and meetings.

“Over the last two years, we led a large business delegation to India to invite them to invest in our country while our business community also explored mutual business interests with Indian counterparts,” he said.

“This was followed by a visit by Indian President and the opening of Indian High Commission in Malta. In the coming years, we expect our relationship to grow in socio-economic areas.”

Malta is also expanding its diplomatic missions across the world, including Japan, Morocco, Ghana and some other countries.

Mr Abela said, his country is seeking greater foreign investment in Malta. “We are asking international companies with regional headquarters in the United Kingdom, to co-relocate their European base to Malta, in order to continue their operation across Europe,” he said.

“Being part of the British Commonwealth, we will lose an important partner. However, Maltese laws are based on English Common Law and English is widely spoken in Malta. Companies will shrink their operations in the UK, could relocate greater resources to Malta and continue to do business in the UK and EU – without having to go through much difficulty.”

The article Malta seeks greater ties with GCC, India appeared first on Arabian Post.

By Saifur Rahman

Dubai Islamic Bank (DIB), the UAE’s first and largest Islamic lender, said, is set to acquire Noor Bank, enhancing Dubai’s position as the capital of Islamic economy and creating the region’s most powerful Shari’a banking group. The combined asset value is set to reach Dh275 billion post acquisition, it said.

“The Board of Directors of Dubai Islamic Bank convened its meeting on 09/06/2019 and resolved to recommend to the General Meeting of the Bank’s shareholders to consider the acquisition of 100 percent shares of Noor Bank after obtaining all necessary approvals from the competent regulatory authorities, and taking all legal procedures related to the evaluation as per the Commercial Companies Law. Post the completion of the acquisition, Noor Bank’s operations will be integrated and consolidated within DIB,” a statement said.

“The date and agenda for the General Meeting including the terms and details pertaining to the acquisition will be announced after the same has been approved by competent regulatory authorities. With the planned acquisition, DIB is set to consolidate its position as the one of the largest Islamic banks in the world with combined assets of nearly Dh275 billion,” it said.

Islamic banking sector represents a fifth of the UAE banking assets and continues to gain traction in the UAE market, going from a single-digit market share to over 20 per cent and growing.

“In the last 12 months, conventional banks’ total assets saw a growth rate of 4-4.5 per cent while Islamic players have been growing at 7 per cent,” said a report. “The UAE remains a promising avenue for the growth of Islamic banking and finance, particularly given the substantial market share held by Islamic lenders in other core markets. For instance, in Malaysia, the share of Islamic banking is about 25-26 per cent, and in Kuwait it is about 40 per cent. This figure becomes significantly higher in Saudi Arabia at upwards of 50 per cent,” it said.

In the UAE, Islamic banking penetration is expected to cross 25 per cent in coming years. UAE banks’ lending of personal loans to residents declined in the first quarter of 2019 by 0.9 per cent on year-on-year basis and 1.2 per cent quarter-on-quarter, due to weak consumer demand and soft household sentiment. According to the Central Bank of the UAE’s first-quarter data, personal loans to residents dropped to Dh333.5 billion in the January-March quarter compared to Dh336.5 billion in same period last year. Year-on-year gross credit rose 4.2 per cent to Dh1.675 trillion from Dh1.608 trillion.

The widely expected acquisition move comes as the UAE economy experiences a challenging phase and technological disruption in the financial sector. A number of banks are set to merge as consolidation moves gain momentum, as banks are preparing for the Fourth Industrial Revolution that could result in ‘Branchless’ and ‘Faceless’ banking.

“A sharp deepening in the real estate downturn and weakening asset quality could constrain bank lending, which in turn could hold back the recovery,” the International Monetary Fund (IMF) said in its annual report on UAE economy recently. “If not designed and implemented effectively, stimulus measures could have a lower than-expected impact on non-oil growth.”

IMF said it strongly supported measures such as UAE Central Bank’s efforts to enforce prudential norms (including for single borrower and sectoral exposures) by requiring banks to strengthen provisioning and/or capital, and to limit dividend distribution, and the Central Bank’s plans to move to risk-based supervision in 2019. Collaboration between bank supervisors and the Financial Stability Department has also strengthened to enhance stress-testing and better identify pockets of vulnerability and emerging risks, including from GREs.

IMF said, “These efforts and recommended designing sufficiently stringent stress-testing scenarios, including for GREs, and following up with banks on stress-testing results. Given the risk of spill-overs from declining real estate prices,” IMF urged the “UAE Central Bank to resist calls for relaxing prudential limits on real estate lending. The authorities are preparing to develop a new bank resolution regime.”

In the meantime, IMF encouraged the UAE Central Bank to discuss contingency plans for banks in case of an abrupt tightening of financial conditions or other adverse shocks.

The UAE is recognized as sitting at the epicenter of the Islamic economy and this announcement, in addition to supporting the nation’s economic agenda, will further strengthen Dubai’s role as a global hub for Islamic finance, allowing greater investment and growth in key sectors driving Dubai and the UAE.

The acquisition of Noor Bank further cements DIB’s position as one of the largest and most influential Islamic finance institutions globally, with a long-established track record of financial success, a clearly defined strategy and a robust balance sheet. Whilst Islamic finance has continued to grow at an unprecedented pace, DIB’s organic and inorganic growth strategy will remain aligned to greater innovation and progression of this already fast growing business model.

Cost efficiencies, as a result, of the acquisition are expected to contribute to profitability and allow the bank to capitalize on more competitively priced products and services across an increasingly diversified portfolio. Similarly opportunities to drive innovation and accelerate the Group’s digitization program are also expected.

DIB remains amongst the fastest growing financial institutions in the country and one of the most progressive Islamic banks in the world. To continue this meticulously articulated profitable growth strategy, requires scale and associated economies. The new size and scale will allow DIB to expedite its strategy to connect the dots from Far east, sub-continent, and East Africa with Dubai as the hub with new markets and locations opening up for one of the most powerful Islamic bank in the world.

Established in 1975, Dubai Islamic Bank is the largest Islamic bank in the UAE by assets and a public joint stock company listed on the Dubai Financial Market. Spearheading the evolution of the global Islamic finance industry, DIB is also the world’s first full service Islamic bank and the second largest Islamic bank in the world. With Group assets in excess of US$60 biillion and market capitalization of nearly US$ 9billion, the group operates with a workforce of more than 8,000 employees and around 500 branches in its vast global network across the Middle East, Asia and Africa. Serving over 3 million customers across the Group, DIB offers an increasing range of innovative Shariah compliant products and services to retail, corporate and institutional clients.

DIB has a significant international presence as a torchbearer in promoting Shari’ah-compliant financial services across a number of markets worldwide. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which is the first Islamic bank in Pakistan to offer Priority & Platinum Banking, as well as the most extensive and innovative portfolio of Alternate Distribution Channels. The launch of Panin Dubai Syariah Bank in Indonesia early in 2017 marks DIB’s first foray in the Far East, the bank owns a nearly 40 percent stake in the Indonesian bank.

Additionally, in May 2017, Dubai Islamic Bank PJSC was given the license by the Central Bank of Kenya (CBK) to operate its subsidiary, DIB Kenya Ltd. DIB has been designated as D-SIB (Domestic Systemically Important Bank) in 2017 and was also recently upgraded by international agencies with regards to the bank’s credit rating indicating robust capital position, improving asset quality and strong profitability.

The article Dubai Islamic Bank set to acquire Noor Bank appeared first on Arabian Post.

By Saifur Rahman

The oil-rich Gulf countries have started to introduce permanent residency to wealthy foreigners in order to retain the existing businesses and attract more foreign investors to support the economic growth.

Within days after Saudi Arabia announcing a ‘Green Card’ scheme for wealthy foreigners, the UAE on Tuesday announced a similar package – Golden Card – to retain the super-rich expatriates and attract more.

Vice President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum on Tuesday announced the Golden Card scheme to grant permanent residency benefits to investors, entrepreneurs, specialised talents, researchers, and outstanding students.

“The Golden Card offers unprecedented benefits to the cardholders and their families, while creating an attractive environment for business and growth. The new permanent residency initiative has identified the first 6,800 qualified expats from over 70 countries, to benefit from the Golden Card scheme’s unprecedented benefits,” a statement by Dubai Government Media Office said.

The move comes weeks after the International Monetary Fund (IMF) report suggests that tighter financial conditions weigh on GCC economies.

The IMF has projected 2.8 per cent real GDP growth for 2019 compared to the earlier forecast of 3.6 per cent. According to the latest IMF projections, the UAE economy grew by 1.7 per cent against the October forecast of 2.9 per cent in 2018. GDP growth in GCC countries is expected to improve slightly to 2.1 per cent in 2019, up from 2 per cent in 2018.

The current investments of the identified 6,800 residents are estimated at Dh100 billion.

“The permanent residency Golden Card will be granted to exceptional talents and everyone who positively contributes to the success story of the UAE. We want them to be permanent partners in our journey. Residents are an indispensable part of our country. Throughout history, the UAE opened its door to millions of people seeking to pursue their dreams and better their lives. The Golden Card is our way to welcome all those seeking to be a part of the UAE’s success story and making it a second home,” Sheikh Mohammed bin Rashid said in a statement.

“We launched a new Golden Card system to grant permanent residency to investors and exceptional doctors, engineers, scientists and artists. The first batch of 6,800 investors with Dh100 billion worth of investments will be granted the Golden Card.

Welcoming the move, Atif Rahman, Director and Partner of Danube Properties, said, “The UAE’s new Golden Card for permanent-visa residents will help to get more foreign direct investment and will boost FDI investment in the UAE, especially in Real estate sector as it is one of the strongest industry in this region.

“This initiative will change the economic landscape of the country and will have a profound impact in the UAE’s economy as a game-changer. It will also help creating new jobs in the real estate industry and overall. We are blessed with visionary leadership who continuously thrive to create economic opportunities for all of us and I am really happy to know the latest announcement. This is a new beginning and will help us grow in the UAE.”

Permanent residency is not a new scheme for countries willing to attract foreign talents. Singapore introduced permanent residency schemes decades ago and has benefitted in attracting foreign talents. The latest moves by the UAE and Saudi Arabia might be seen by many analysts as ‘too little, too late’.

“While for many years, specialized citizenship and residency by investment firms, such as Bluemina have even helped individuals from the Arab region gain citizenship in select countries in Europe (such as Malta, Cyprus) and the Caribbean (such as St Kitts & Nevis, Grenada) through their citizenship/residency schemes.”

“One of the key limitations of these schemes are that they target the super-rich people – who might already possess a permanent residency or passport of developed countries such as Canada, US, UK or Australia. So, the new schemes by Saudi Arabia and the UAE might not attract new investment, but help offer a comfort zone for the super-rich foreigners who will not have to renew their residency after every two or three years,” said an economic analyst, requesting anonymity.

However, Imran Farooq, Group CEO of Samana Group, who specialises in immigration services, welcomed the move, saying, “The latest ‘Gold Card for permanent-visa residents’ announcement by HH Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, will strengthen Dubai’s position globally and will play a key role in attracting larger investment.

“The UAE’s leadership understands the needs of the country and we are very thankful to the country’s leadership for creating new opportunities. This is a good news for all of us as this will help the UAE’s overall economy and real estate sector to grow further with more FDI and will also help to solve the current economic downturn.”

Meanwhile, a new UBS bank survey found that the UAE investors are among the world’s most optimistic. High net worth individuals and business owners globally are optimistic and looking for opportunities to invest as markets rebound in 2019, according to UBS Global Wealth Management’s new quarterly Investor Sentiment survey.

The survey, which polled more than 3,600 wealthy investors and entrepreneurs in 17 countries, including the UAE, points to a rebound in bullish sentiment in the first three months of 2019 as markets recovered from the late-2018 slump. While respondents held a large proportion of their assets in cash, many expressed willingness to invest it, results show.

“With 83 percent of UAE investors optimistic about the local economy, and 78 percent expressing optimism on the global economy, the Gulf state registers as the most bullish of all regions surveyed. UAE investors hold similarly optimistic views on equities, with 80 percent of respondents in favour of local stocks. They are also among the most likely to have plans to invest more (62%), second only to Latin American investors (66%),” the report says.

Globally, fifty-one percent of investor respondents were optimistic on the global economy versus 21 percent who were pessimistic. Business owners were especially positive, with 62 percent optimistic and 15 percent pessimistic. Even more – 60 percent of investors and 68 percent of business owners – expressed optimism on their own region’s economy.

Ali Janoudi, Head of Central and Eastern Europe, Middle East and Africa at UBS Global Wealth Management, says: “It is encouraging to see such optimism paired with a strong desire to invest from UAE respondents. The findings confirm our view that the UAE should be considered a growth region for our business.”

The article Gulf countries launch permanent residency schemes appeared first on Arabian Post.

|By Saifur Rahman, Executive Editor|

UAE Central Bank said, it has downgraded seven money exchanging houses for violating the Central Bank’s regulations, including Anti-Money Laundering rules.

The UAE has 140 money exchange houses with 835 branches spread across the length and breadth of the country while some of the exchange houses have branches in other countries.

Following the downgrading, Taher Exchange Est., Al Hadha Exchange LLC, Al Hemriya Exchange Company LPC, Dubai Express Exchange, Sanaa Exchange, Cosmos Exchange and Bin Bakheet Exchange Est. have now been restricted to deal in sale and purchase of foreign currencies and travelers cheques only.

“Based on this decision, the above exchange houses were prohibited from conducting any activities relating to remittances or payment of wages. This decision comes after the failure of these exchange houses to regularize their status during the grace period granted by the Central Bank,” a statement said.

The Central Bank said, “It will not tolerate violations of financial institutions to its regulations and instructions, and the Central Bank alerts not to remit funds or pay of wages via the above exchange houses.”

Between January and September last year, foreign residents in the UAE sent Dh121.1 billion to their home countries or other recipients abroad. The total remittances for the first nine months of the year is 2.1 per cent higher than the Dh118.6 billion cash that moved out of the UAE during the same period in 2016, UAE Central Bank data shows.

Expatriates from India transferred the bulk of the cash home, with beneficiaries in the Asian country receiving Dh15.46 billion in remittances, representing more than a third (37.9 per cent) of the total outbound fund transfers.

The article  Central Bank downgrades 7 exchange houses for violating rules appeared first on Arabian Post.

|By Saifur Rahman, Executive Editor|

 The International Monetary Fund (IMF) finally recognised the Islamic banking principles by endorsing a proposal on the use of the Core Principles for Islamic Finance Regulation (CPIFR), according to a statement. This effectively means that the IMF now accepts Islamic financial principles to become a globally accepted system in parallel to the conventional interest-based economy.

 “The CPIFR will complement the international architecture for financial stability, while providing incentives for improving the prudential framework for Islamic banking industry across jurisdictions,” IMF said in a statement on Thursday. “The CPIFR and their associated methodology will be applied in financial sector assessments undertaken in fully Islamic banking systems and, as a supplement to the Basel Core Principles for Effective Banking Supervision (BCP) in dual banking systems where Islamic banking is systemically significant.”

 Global Islamic financial assets have reached about US$2 trillion, with the banking sector accounting for about 85 percent of the total assets, an IMF report says. Islamic banking exists in more than 60 countries and the industry has become systemically important in 13 jurisdictions, while the domestic market share of Islamic banks (IB) increased in 18 countries in 2016.

 The rapid growth of Islamic finance reflects both supply-push and demand-pull factors, including strong economic growth in core markets, competitive pressures, regulatory advancements and facilitative environment provided by governments. Several countries are recognising the segment’s potential, with authorities encouraging Islamic finance to improve financial inclusion.

 “This is a belated realisation by the IMF which has seen the Islamic finance as an ethical and sustainable economic model that we have long been practicing and demonstrating its positive impact,” said a Dubai-based Islamic banker, requesting anonymity. “However belated than never ­– it is one of the best news coming out for the Islamic banking sector. I am glad that IMF has chosen to release in the holy month of Ramadan.”

 The industry’s potential contribution to the United Nation’s sustainable development financing goals (SDGs) is also likely to help the industry to progress in coming years. Reflecting the importance of Islamic finance for many of its members, the IMF has had a long-standing interest in its implications for macroeconomic and financial stability.

 “The Executive Board of the International Monetary Fund (IMF) today endorsed a proposal on the use of the Core Principles for Islamic Finance Regulation (CPIFR), which were developed by the Islamic Financial Services Board (IFSB) with the participation of the Secretariat of the Basel Committee on Banking Supervision. The CPIFR are intended to provide a set of core principles for the regulation and supervision of the Islamic banking industry and are designed to take into consideration the specificities of Islamic banks,” the statement said.

 IMF has also released a working paper, The Core Principles for Islamic Finance Regulations and Assessment Methodology, in support of its decision.

IMF Executive Directors “welcomed the opportunity to consider the staff’s proposals to strengthen the Fund’s engagement on promoting financial stability in countries with Islamic banking,” the statement said.

 “The Islamic finance sector continues to grow and evolve in size and complexity, with Islamic banking offered in more than 60 countries. The growth of Islamic finance presents important opportunities to strengthen financial inclusion, deepen financial markets, and mobilize funding for development by offering new modes of finance and attracting “unbanked” populations that have not participated in the financial system.”

IMF noted that Islamic banks (IB) undertake distinct operations with risk profiles and balance sheet structures that differ in important respects from conventional banks, with associated financial stability implications. In this regard, the IMF called for stronger efforts to strengthen the regulatory and supervisory frameworks to take into consideration the specificities of IB to promote financial stability and sound development, particularly in countries where IB have become systemically important. The approach to regulating and supervising IB should reflect the nature of risks to which IB are exposed and the financial infrastructure needed for effective regulation and supervision, which requires additional or different regulation and supervisory practices to address risks inherent in the Islamic banking operations. 

 IMF Directors broadly endorsed the use of the “Core Principles for Islamic Finance Regulation” (Banking Sector) (CPIFR) and their assessment methodology for the purposes of undertaking financial sector assessments and preparing Reports on the Observance of Standards and Codes (ROSCs) initiated after January 1, 2019 regarding the effectiveness of regulation and supervision of IB. The CPIFR, which was developed by the Islamic Financial Services Board (IFSB) with the participation of the Secretariat of the Basel Committee on Banking and Supervision (BCBS) for assessments of the banking regulatory and supervisory regimes for countries where Islamic banking is systemically significant, will complement the international architecture for financial stability, while simultaneously providing incentives for improving the prudential framework for the Islamic banking industry across jurisdictions.   

 IMF said, it saw merit in maintaining close cooperation between the IFSB and the BCBS to ensure their respective standards remain consistent. It welcomed staff’s proposal for countries where the IB system is below the 15 percent threshold.

 “IMF directors considered that adoption of the CPIFR could be supported through technical assistance to help nascent IB financial systems develop in a safe and sustainable way. For these countries, Islamic finance plays a complex developmental role including in meeting the United Nations’ sustainable development financing goals in terms of providing access to investment and equity finance and inclusion for large parts of their unbanked populations where conventional finance may have less acceptance,” the statement said.

“IMF directors encouraged the Fund to continue developing alternative criteria to determine the significance of the IB sector in a country, beyond the simple market share in the financial market. A number of Directors saw merit in future work on developing comprehensive standards for Islamic financial services.

 IMF emphasized the importance of close cooperation between the Fund and relevant key institutions on IB issues. In order to avoid duplication of efforts, they saw merit in a clear division of labour between standard-setters and international organizations.

The article Landmark IMF decision to recognise Islamic Banking appeared first on Arabian Post.