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Year-round Dubai events

Abdul Basit / 19 June 2013

Shopping events in Dubai attract healthy growth in sales throughout the year as all four quarters of a calendar year have at least one event to keep retailers busy and buyers happy, reported an industry specialist. 
The first quarter started with a very successful Dubai Shopping Festival (DSF), after that the second quarter had the new Spring edition of the Gitex Shopper, and now another big event – Dubai Summer Surprises – in the same quarter, Jumbo Electronics’ head of retail Nadeem Khanzadah told Khaleej Times in an interview.
There will be Eid promotions in the third quarter along with back to school sales, Khanzadah said, adding that and the last quarter is more important with the main Gitex Shopper and December promotion.
“We have targeted a double-digit growth in the range of about 15-20 per cent over the sales last year. So far the trend has been encouraging and we hope to achieve the target on successful events in Dubai,” Khanzadah said.
So far the first two quarters were good in terms of sales for Jumbo and the company believes that its going to be the same in the remaining two quarters of the year, he said. He mentioned that Dubai events always help to generate big volume sales and that this year was no exception. Talking about Dubai Summer Surprises (DSS), he said: “We are spending in excess of Dh3.5 million on free gifts during the summer promotion and the total budget including marketing is more than Dh5 million.”
Khanzadah said that DSS along with DSF is amongst the two major promotions the company runs in the year. “This time DSS is happening during the summer holidays and provides a great opportunity to target people travelling back home and buying portable products. It is even good for residents who decide to stay behind this year.”
DSS is the region’s most awaited summer shopping extravaganza and has enjoyed continued success over the years. Year after year, DSS has provided unparalleled opportunities for global technology brands and regional retailers.
“Jumbo has always created excitement during DSS by providing shoppers with a rewarding experience by offering great products at great value. Along with increased investments in product offers, we will also run promotions including discounts and bundle offers across the range,” Khanzadah said. “Last year, DSS saw a huge rise in the numbers of shoppers with final revenues indicating healthy year on year growth. We are very optimistic for this year’s DSS and hope that our customers will be pleased with the top deals we have lined up for them.”
He mentioned that the response to DSS has been quite good so far, but not as per the company’s expectations, with schools mainly opened till last week for examinations. “We expect healthy growth during the last 20 days of the DSS,” he added.
This year, Jumbo will be planning a lot of offers during DSS, even more than last year. During DSS, Jumbo is offering fabulous value based bundle deals across an entire range of products including televisions, smartphones, laptops  tablets, gaming and cameras across selected Jumbo stores. These offers will include free 32” LCD TVs, tablets, 500GB hard drives, Xbox, and backpacks amidst other surprises.
Last season, Jumbo recorded a double-digit percentage increase in sales during DSS and forecasts to match that at this year’s festival, especially with an increased demand for smartphones and tablets.
The most popular categories are smartphones, tablets, TVs and SLR cameras, he said, adding: “Our expectation is that it will continue largely around tablets and smartphones. This is the trend we have seen emerged from 2012 where we witnessed smartphones and laptops being the fastest growing category in the consumer electronics segment.”
He further added that tablet category is growing phenomenally big and this may be the actual start of the real boom in tablets as a lot of people start replacing the second or third laptop that they had in their home and office with a tablet.

Emirates bags World’s Best Airline award

/ 19 June 2013

Cementing its place as one of the world’s leading international airlines, Emirates has on Tuesday been awarded the highly coveted ‘World’s Best Airline’ award, presented by Skytrax at the 2013 World Airline Awards. 
In addition to winning ‘World’s Best Airline’ Emirates scooped up a further two awards including; ‘Best Middle East Airline’ and for a record ninth year in a row, ‘World’s Best Inflight Entertainment’.  The awards were collected by Tim Clark, President of Emirates Airline at the Paris Airshow. 
“Being honoured with these awards is testament to our unrelenting effort to be the world’s best airline,” said Clark. “We are constantly striving to offer our customers consistent, world-class service that extends from the moment they make their booking to the moment they arrive home at the end of their journey.”
“These awards are widely regarded as the industry’s benchmark for excellence. For us, the awards clearly reflect a vote of confidence from global travellers, who acknowledge and appreciate our continuous drive to deliver high-quality service.

Wealth creation is faster in Middle East: HNWIs

/ 19 June 2013

A majority of high net worth individuals (HNWIs) in the Middle East believe wealth creation is faster today than in the past, more than any other region globally, according to the latest report by of Barclays Wealth Insights. 
Over half (60) of respondents in the Middle East agreed that wealth can be created faster today than in the past, in comparison to 43 per cent in Europe and 31 per cent in North America.
Interestingly, more than half (54) of Middle Eastern respondents stated that personal investments have contributed largely to their overall wealth portfolio, compared to other sources of income such as inheritance at 49 per cent.
In the rapid growth economies of the Middle East, nearly three quarters (73) of respondents have accumulated the majority of their wealth in less than 20 years.
In terms of how this wealth is used, HNWIs in the Middle East have a tendency to allocate more of their resources to personal property than to tangible assets and collectibles.
On average, respondents in the region currently hold their wealth largely in personal property (30 of wealth), followed by investments (23) and cash savings (20). By contrast, just 13 of wealth is held in tangible assets.
Rory Gilbert, Managing Director and Head of Wealth and Investment Management, Barclays, Middle East and North Africa, said: “Wealth creators in newer growth markets, profoundly see their money as an enabler for their family and to the wider wealth cycle.”
They want to pass their wealth down and leave their business as a legacy for future generations, Gilbert said. The report reveals that wealthy families in the Middle East have a strong entrepreneurial spirit and want to play an active role in managing their money, and have great confidence in the future of the region.
As wealth rises and fortunes are made at a more rapid rate than ever before, the report explores how the challenges facing newly wealthy individuals - and families that need to plan for the future - have become more acute. Many HNWIs around the world now prefer to give their money to family and friends and charitable causes in their lifetime rather than as inheritance, seeing their wealth as an ‘enabler’, the report revealed.
This trend is especially prevalent in the Middle East with 19 per cent of HNWIs planning to give their entire wealth away to family, friends and charity during their lifetime, compared to just 5 per cent in the UK and 4 per cent in the US. Across the Middle East, 96 per cent of respondents indicated their intention to pass on some or all of their wealth to family or friends, either during their lifetime or as inheritance.

Yas Mall to attract 25 million visitors

UAEs second-largest mall to turn capital into a year-round destination
•	By Manoj Nair, Associate Editor
Dubai: The final piece in Abu Dhabi’s grand strategy to turn itself into a year-round destination is all set to fall into place. And it is not just a random piece, given that it will take the form of a substantial 235,000 square metres of gross leasable area and the second largest mall in the UAE (and 35th in the world).
Yes, that is just what the Yas Mall — now confirmed with a March 26, 2014 opening date — will do for Abu Dhabi. It is expected to be a magnet for “north of” 25 million visitors in the first year and then put in more numbers thereafter.
“Anyone within an 8-10 hour flying time to Abu Dhabi is a potential future visitor,” said Talal Al Dhiyebi, director of planning and infrastructure at Aldar Properties and the mall’s developer. “With all of the components at Yas Island — and that includes the race track, Ferrari World, waterparks, hotels, golf course, the beach that opened recently plus the Mall — our focus is not on a visitor of a few hours.
“Instead, they should be spending 3-4 days on the Island with enough avenues available to each member of the family. That would make Yas the leisure and entertainment destination of the region.
“What the Mall brings is a complementary effect to create a much bigger destination — it’s not for nothing that the Mall is connected to Ferrari World, the largest indoor theme park in the world.”
As to becoming an all-year destination, the Mall’s role will be that of the “enforcer” towards that end.
Role in gameplan
While it was always clear that as Abu Dhabi’s first super-regional shopping destination, Yas Mall was not short of expectations from the day it was announced. But it is only now — with the final stretch ahead of the opening day clearly visible — that its significance in the overall gameplan manifests itself.
“I do not think Ferrari World is particularly season-specific but its attendance will reflect regional holiday patterns,” said Andrew Goodwin, director of real estate at Cornerstone Investment  Real Estate. “The published objectives of Yas Island are for it to continue growing its attractions and for these to be used in a more ‘collective’ way throughout the year with crossover of visitations by tourists and the catchment.
“Yas Mall will be the first, true all-year round attraction not governed by seasonal patterns; [it] will no doubt follow promotional trade patterns in January and the summer as well as holiday periods to promote shopping through the year in the same way as the larger Dubai malls. The Mall’s connection with Ferrari World should encourage more crossing over of the visits between shopping and leisure.
“The retail and public spaces created by Yas Mall will be of such a large scale in comparison with the existing retail in Abu Dhabi that it will have a considerable impact on the retail and social scene of Abu Dhabi and the catchment’s shopping habits. The Mall will have a programme of activities from opening to encourage people to become acquainted with each element.”
Anchor stores
To put the shopping and leisure equation in context, the Dubai Mall had 65 million visitors in 2012, having started with 35 million in its first year. More than 60 per cent (63 per cent to be precise) of the leasable space at Yas Mall has been signed up. The mall management is closing on confirming the two anchor stores (these will be taking up between 10,000 to 20,000 square metres over multiple levels) during summer.
Overall, the design emphasises the cluster approach, where retailers offering similar wares and services are grouped together. (There is scope for further expansion at a later date if need be.)
“In terms of design, it is not radically different to the established mall concept; the difference will be reflected in the tenant mix and how comfortable retailers are to stay here,” said Al Dhiyebi. “On the look, we have made an effort to use natural materials rather than the shiny, glossy stuff you see a lot of.”

Agreement inked to develop Dubai

/ 18 June 2013

The General Secretariat of the Executive Council of Dubai recently signed a Memorandum of Understanding (MoU) with the Dubai Technology and Media Free Zone Authority (DTMFZA) to create and develop ‘Dubai Fashion 2020.’ 
The strategic plan will support Dubai’s and the wider region’s design and fashion industry as it seeks to match the emirate’s economic growth with a wider appreciation and understanding of culturally relevant fashions. 
Dubai Fashion 2020 is expected to support ongoing growth in the emirate’s GDP and have a significant impact on employment across the value chain such as manufacturing, retail and design. It will also engage local designers in the creation of the world’s largest and most prestigious brands, as well as attracting investment from global institutions in this industry.
The plan is also closely aligned to the recently announced Dubai Design District, which will become a full service community for design industry related organisations, brands, and supporting enterprises. In addition to contributing to Dubai’s economic diversification and growing knowledge economy, the two projects will positively contribute to Dubai’s credentials as a global hub in these sectors.
In addition to positioning Dubai as a genuine hub for the fashion and design industries that can compete on the global stage, the strategic plan aims to increase the role of contemporary regional fashion, Islamic fashion as well as identifying opportunities for marketing to the specific needs of the regional and global markets.
Moreover, Dubai Fashion 2020 seeks to promote the development of this important sector over the coming years. It will focus on providing all the necessary support that is conducive to building a productive working environment for business, UAE Nationals, and entrepreneurs in order to promote an Emirati culture that is on a level with those in other parts of the world.
Dubai Fashion 2020 also aims to offer development and training programs, and support with the hosting of various fashion events, as well as attracting specialized enterprises in fashion from around the world to Dubai. These efforts will focus on supporting the ‘Dubai tourism vision 2020’ by increasing the volume, spending, and duration of stay by visitors to the Emirate.
Abdulla Al Shaibani, Secretary General of the Dubai Executive Council, said: “The General Secretariat of the Executive Council is keen to support all strategic sectors in the emirate and provide an appropriate environment for creativity and innovation. The memorandum we are signing with DTMFZA aims to develop economic opportunities and enhance Dubai’s global competitiveness on several levels, as well as to ‘Dubai Design District,’ which was recently launched by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, supporting the emirate’s vision to be a global leader. We will work in the coming period on developing a strategic plan that supports the objectives of the fashion industry and promotes the Emirate’s position.”
Ahmad bin Byat, Director General of DTMFZA, added: “Experts estimate that the global fashion industry generates over a trillion dollars a year. With the growing demand for brands and luxury goods across the region as well as the success achieved by local designers internationally, we believe that Dubai is well positioned to enhance its role in the global fashion industry.”
“Dubai Fashion 2020 will allow us to unlock the Emirate’s full potential. While it focuses on developing a destination for the top international players in the industry, it also includes putting a particular emphasis on nurturing local talent, entrepreneurs and small businesses. The recent launch of the Dubai Design District will act as a corner stone in the implementation of this strategy. Working together with the Executive Council and the industry, we are confident of achieving the ambitions set out in the Emirate’s Tourism Vision 2020,” he added.

Wahat Hili, Landmark Group in partnership

/ 18 June 2013

As Wahat Hili Mall making the final provisions for its opening in August, the shopping complex has signed a strategic partnership that will add Landmark Group to its line-up of big anchors. 
The group will join other retailers in making fit-out provisions that will allow the mall to be ready on schedule.
The notable deal with Landmark Group will see the addition of six brands to the modern-day shopping complex, including Baby Shop, Splash, Shoexpress and Lifestyle. The infusion of consumer choice will encompass a total area exceeding 3,900 sqm, having something for the entire family.
Saeed Al Dhaheri, chairman of Wahat Hili Mall, commented: “The addition of Landmark Group has allowed us to reach 60 per cent of our GLA leased, tipping the scales ever closer to complete as we continue to make provisions to house more big names in retail. ”
The mall will also be the first to offer Fitness First in Al Ain – the largest privately owned health club group in the world – to its visitors. The anchor will cover more than 1,200 sqm, and join 35 branches in the UAE. The fastest growing electronics retail chain in the Middle East, E-Max, will also be taking close to 800 sqm of the shopping complex.
“Adding internationally recognised brand names will allow Wahat Hili to draw in more customers who are looking for things never offered in Al Ain before, ” added Al Dhaheri.

News / Gulf nationals can buy into Indian stocks

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India expects to attract more than $75b from qualified foreign investors
•	By Babu Das Augustine, Deputy Business Editor
•	Published: 00:00 June 12, 2012
•	
Dubai: India’s finance ministry is working on an elaborate plan to attract portfolio investments from Gulf nationals and institutions as part of the government’s recent decision to allow qualified foreign investors (QFIs) to invest in Indian capital markets, said R. Gopalan, secretary of economic affairs at the Ministry of Finance. 
Speaking to Gulf News during an interview ahead of a roadshow in Dubai to promote India as an attractive investment destination to Gulf nationals and institutions, Gopalan said the recent changes in investment rules have made investing in Indian capital markets easy for foreign nationals. 
In a major policy decision, the Indian government announced in January that QFIs could directly invest in Indian equities. In its latest budget, the government also proposed to open the Indian corporate debt market to QFIs. 
The QFIs will be allowed to invest only through the Securities and Exchanges Board of India-registered qualified depository participants (QDPs), which will also ensure they follow the ‘know your client’ (KYC) norms. 
Gopalan said that as part of the government’s efforts to attract more investors to Indian equity markets, tax laws governing short-term capital gains have been simplified. “All QFIs investing in Indian securities can now pay their short capital gains tax through qualified depository participants (QDPs). 
The Ministry of Finance expects to attract more than $75 billion (Dh275.40 billion) in portfolio investments through the QFI scheme in next two years. 
So far the Indian government has approved direct QFI investments from 45 countries that are members of the Financial Action Task Force (FATF). The GCC is a full member of FATF. Countries such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE are members of the Middle East and North Africa Financial Action Task Force, an associate member of FATF, and thus qualify for QFI investment scheme. 
India which faced significant outflow of foreign institutional investments from its equity markets in recent months expects the QFI investments to bring in more stability in the portfolio investments into the country. “FII investments are generally very short term in nature. These investment flows are vulnerable to a number of global factors. We have seen high volatility on Indian markets in recent months because of fund withdrawals by some of the Western investors. We expect QFI investments — longer term in nature — to provide more stability to the market,” Gopalan said.

News & Offers Archive

	Year-round Dubai events	Abdul Basit / 19 June 2013 Shopping events in Dubai attract healthy growth in sales throughout the year as all four quarters of a calendar year have at least one event to keep retailers busy and buyers happy, reported an industry specialist. The first quarter started with a very successful Dubai Shopping Festival (DSF), after that the second quarter had the new Spring edition of the Gitex Shopper, and now another big event – Dubai Summer Surprises – in the same quarter, Jumbo Electronics’ head of retail Nadeem Khanzadah told Khaleej Times in an interview. There will be Eid promotions in the third quarter along with back to school sales, Khanzadah said, adding that and the last quarter is more important with the main Gitex Shopper and December promotion. “We have targeted a double-digit growth in the range of about 15-20 per cent over the sales last year. So far the trend has been encouraging and we hope to achieve the target on successful events in Dubai,” Khanzadah said. So far the first two quarters were good in terms of sales for Jumbo and the company believes that its going to be the same in the remaining two quarters of the year, he said. He mentioned that Dubai events always help to generate big volume sales and that this year was no exception. Talking about Dubai Summer Surprises (DSS), he said: “We are spending in excess of Dh3.5 million on free gifts during the summer promotion and the total budget including marketing is more than Dh5 million.” Khanzadah said that DSS along with DSF is amongst the two major promotions the company runs in the year. “This time DSS is happening during the summer holidays and provides a great opportunity to target people travelling back home and buying portable products. It is even good for residents who decide to stay behind this year.” DSS is the region’s most awaited summer shopping extravaganza and has enjoyed continued success over the years. Year after year, DSS has provided unparalleled opportunities for global technology brands and regional retailers. “Jumbo has always created excitement during DSS by providing shoppers with a rewarding experience by offering great products at great value. Along with increased investments in product offers, we will also run promotions including discounts and bundle offers across the range,” Khanzadah said. “Last year, DSS saw a huge rise in the numbers of shoppers with final revenues indicating healthy year on year growth. We are very optimistic for this year’s DSS and hope that our customers will be pleased with the top deals we have lined up for them.” He mentioned that the response to DSS has been quite good so far, but not as per the company’s expectations, with schools mainly opened till last week for examinations. “We expect healthy growth during the last 20 days of the DSS,” he added. This year, Jumbo will be planning a lot of offers during DSS, even more than last year. During DSS, Jumbo is offering fabulous value based bundle deals across an entire range of products including televisions, smartphones, laptops tablets, gaming and cameras across selected Jumbo stores. These offers will include free 32” LCD TVs, tablets, 500GB hard drives, Xbox, and backpacks amidst other surprises. Last season, Jumbo recorded a double-digit percentage increase in sales during DSS and forecasts to match that at this year’s festival, especially with an increased demand for smartphones and tablets. The most popular categories are smartphones, tablets, TVs and SLR cameras, he said, adding: “Our expectation is that it will continue largely around tablets and smartphones. This is the trend we have seen emerged from 2012 where we witnessed smartphones and laptops being the fastest growing category in the consumer electronics segment.” He further added that tablet category is growing phenomenally big and this may be the actual start of the real boom in tablets as a lot of people start replacing the second or third laptop that they had in their home and office with a tablet.
	Emirates bags World’s Best Airline award	/ 19 June 2013 Cementing its place as one of the world’s leading international airlines, Emirates has on Tuesday been awarded the highly coveted ‘World’s Best Airline’ award, presented by Skytrax at the 2013 World Airline Awards. In addition to winning ‘World’s Best Airline’ Emirates scooped up a further two awards including; ‘Best Middle East Airline’ and for a record ninth year in a row, ‘World’s Best Inflight Entertainment’. The awards were collected by Tim Clark, President of Emirates Airline at the Paris Airshow. “Being honoured with these awards is testament to our unrelenting effort to be the world’s best airline,” said Clark. “We are constantly striving to offer our customers consistent, world-class service that extends from the moment they make their booking to the moment they arrive home at the end of their journey.” “These awards are widely regarded as the industry’s benchmark for excellence. For us, the awards clearly reflect a vote of confidence from global travellers, who acknowledge and appreciate our continuous drive to deliver high-quality service.
	Wealth creation is faster in Middle East: HNWIs	/ 19 June 2013 A majority of high net worth individuals (HNWIs) in the Middle East believe wealth creation is faster today than in the past, more than any other region globally, according to the latest report by of Barclays Wealth Insights. Over half (60) of respondents in the Middle East agreed that wealth can be created faster today than in the past, in comparison to 43 per cent in Europe and 31 per cent in North America. Interestingly, more than half (54) of Middle Eastern respondents stated that personal investments have contributed largely to their overall wealth portfolio, compared to other sources of income such as inheritance at 49 per cent. In the rapid growth economies of the Middle East, nearly three quarters (73) of respondents have accumulated the majority of their wealth in less than 20 years. In terms of how this wealth is used, HNWIs in the Middle East have a tendency to allocate more of their resources to personal property than to tangible assets and collectibles. On average, respondents in the region currently hold their wealth largely in personal property (30 of wealth), followed by investments (23) and cash savings (20). By contrast, just 13 of wealth is held in tangible assets. Rory Gilbert, Managing Director and Head of Wealth and Investment Management, Barclays, Middle East and North Africa, said: “Wealth creators in newer growth markets, profoundly see their money as an enabler for their family and to the wider wealth cycle.” They want to pass their wealth down and leave their business as a legacy for future generations, Gilbert said. The report reveals that wealthy families in the Middle East have a strong entrepreneurial spirit and want to play an active role in managing their money, and have great confidence in the future of the region. As wealth rises and fortunes are made at a more rapid rate than ever before, the report explores how the challenges facing newly wealthy individuals - and families that need to plan for the future - have become more acute. Many HNWIs around the world now prefer to give their money to family and friends and charitable causes in their lifetime rather than as inheritance, seeing their wealth as an ‘enabler’, the report revealed. This trend is especially prevalent in the Middle East with 19 per cent of HNWIs planning to give their entire wealth away to family, friends and charity during their lifetime, compared to just 5 per cent in the UK and 4 per cent in the US. Across the Middle East, 96 per cent of respondents indicated their intention to pass on some or all of their wealth to family or friends, either during their lifetime or as inheritance.
	Yas Mall to attract 25 million visitors	UAEs second-largest mall to turn capital into a year-round destination • By Manoj Nair, Associate Editor Dubai: The final piece in Abu Dhabi’s grand strategy to turn itself into a year-round destination is all set to fall into place. And it is not just a random piece, given that it will take the form of a substantial 235,000 square metres of gross leasable area and the second largest mall in the UAE (and 35th in the world). Yes, that is just what the Yas Mall — now confirmed with a March 26, 2014 opening date — will do for Abu Dhabi. It is expected to be a magnet for “north of” 25 million visitors in the first year and then put in more numbers thereafter. “Anyone within an 8-10 hour flying time to Abu Dhabi is a potential future visitor,” said Talal Al Dhiyebi, director of planning and infrastructure at Aldar Properties and the mall’s developer. “With all of the components at Yas Island — and that includes the race track, Ferrari World, waterparks, hotels, golf course, the beach that opened recently plus the Mall — our focus is not on a visitor of a few hours. “Instead, they should be spending 3-4 days on the Island with enough avenues available to each member of the family. That would make Yas the leisure and entertainment destination of the region. “What the Mall brings is a complementary effect to create a much bigger destination — it’s not for nothing that the Mall is connected to Ferrari World, the largest indoor theme park in the world.” As to becoming an all-year destination, the Mall’s role will be that of the “enforcer” towards that end. Role in gameplan While it was always clear that as Abu Dhabi’s first super-regional shopping destination, Yas Mall was not short of expectations from the day it was announced. But it is only now — with the final stretch ahead of the opening day clearly visible — that its significance in the overall gameplan manifests itself. “I do not think Ferrari World is particularly season-specific but its attendance will reflect regional holiday patterns,” said Andrew Goodwin, director of real estate at Cornerstone Investment Real Estate. “The published objectives of Yas Island are for it to continue growing its attractions and for these to be used in a more ‘collective’ way throughout the year with crossover of visitations by tourists and the catchment. “Yas Mall will be the first, true all-year round attraction not governed by seasonal patterns; [it] will no doubt follow promotional trade patterns in January and the summer as well as holiday periods to promote shopping through the year in the same way as the larger Dubai malls. The Mall’s connection with Ferrari World should encourage more crossing over of the visits between shopping and leisure. “The retail and public spaces created by Yas Mall will be of such a large scale in comparison with the existing retail in Abu Dhabi that it will have a considerable impact on the retail and social scene of Abu Dhabi and the catchment’s shopping habits. The Mall will have a programme of activities from opening to encourage people to become acquainted with each element.” Anchor stores To put the shopping and leisure equation in context, the Dubai Mall had 65 million visitors in 2012, having started with 35 million in its first year. More than 60 per cent (63 per cent to be precise) of the leasable space at Yas Mall has been signed up. The mall management is closing on confirming the two anchor stores (these will be taking up between 10,000 to 20,000 square metres over multiple levels) during summer. Overall, the design emphasises the cluster approach, where retailers offering similar wares and services are grouped together. (There is scope for further expansion at a later date if need be.) “In terms of design, it is not radically different to the established mall concept; the difference will be reflected in the tenant mix and how comfortable retailers are to stay here,” said Al Dhiyebi. “On the look, we have made an effort to use natural materials rather than the shiny, glossy stuff you see a lot of.”
	Agreement inked to develop Dubai	/ 18 June 2013 The General Secretariat of the Executive Council of Dubai recently signed a Memorandum of Understanding (MoU) with the Dubai Technology and Media Free Zone Authority (DTMFZA) to create and develop ‘Dubai Fashion 2020.’ The strategic plan will support Dubai’s and the wider region’s design and fashion industry as it seeks to match the emirate’s economic growth with a wider appreciation and understanding of culturally relevant fashions. Dubai Fashion 2020 is expected to support ongoing growth in the emirate’s GDP and have a significant impact on employment across the value chain such as manufacturing, retail and design. It will also engage local designers in the creation of the world’s largest and most prestigious brands, as well as attracting investment from global institutions in this industry. The plan is also closely aligned to the recently announced Dubai Design District, which will become a full service community for design industry related organisations, brands, and supporting enterprises. In addition to contributing to Dubai’s economic diversification and growing knowledge economy, the two projects will positively contribute to Dubai’s credentials as a global hub in these sectors. In addition to positioning Dubai as a genuine hub for the fashion and design industries that can compete on the global stage, the strategic plan aims to increase the role of contemporary regional fashion, Islamic fashion as well as identifying opportunities for marketing to the specific needs of the regional and global markets. Moreover, Dubai Fashion 2020 seeks to promote the development of this important sector over the coming years. It will focus on providing all the necessary support that is conducive to building a productive working environment for business, UAE Nationals, and entrepreneurs in order to promote an Emirati culture that is on a level with those in other parts of the world. Dubai Fashion 2020 also aims to offer development and training programs, and support with the hosting of various fashion events, as well as attracting specialized enterprises in fashion from around the world to Dubai. These efforts will focus on supporting the ‘Dubai tourism vision 2020’ by increasing the volume, spending, and duration of stay by visitors to the Emirate. Abdulla Al Shaibani, Secretary General of the Dubai Executive Council, said: “The General Secretariat of the Executive Council is keen to support all strategic sectors in the emirate and provide an appropriate environment for creativity and innovation. The memorandum we are signing with DTMFZA aims to develop economic opportunities and enhance Dubai’s global competitiveness on several levels, as well as to ‘Dubai Design District,’ which was recently launched by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, supporting the emirate’s vision to be a global leader. We will work in the coming period on developing a strategic plan that supports the objectives of the fashion industry and promotes the Emirate’s position.” Ahmad bin Byat, Director General of DTMFZA, added: “Experts estimate that the global fashion industry generates over a trillion dollars a year. With the growing demand for brands and luxury goods across the region as well as the success achieved by local designers internationally, we believe that Dubai is well positioned to enhance its role in the global fashion industry.” “Dubai Fashion 2020 will allow us to unlock the Emirate’s full potential. While it focuses on developing a destination for the top international players in the industry, it also includes putting a particular emphasis on nurturing local talent, entrepreneurs and small businesses. The recent launch of the Dubai Design District will act as a corner stone in the implementation of this strategy. Working together with the Executive Council and the industry, we are confident of achieving the ambitions set out in the Emirate’s Tourism Vision 2020,” he added.
	Wahat Hili, Landmark Group in partnership	/ 18 June 2013 As Wahat Hili Mall making the final provisions for its opening in August, the shopping complex has signed a strategic partnership that will add Landmark Group to its line-up of big anchors. The group will join other retailers in making fit-out provisions that will allow the mall to be ready on schedule. The notable deal with Landmark Group will see the addition of six brands to the modern-day shopping complex, including Baby Shop, Splash, Shoexpress and Lifestyle. The infusion of consumer choice will encompass a total area exceeding 3,900 sqm, having something for the entire family. Saeed Al Dhaheri, chairman of Wahat Hili Mall, commented: “The addition of Landmark Group has allowed us to reach 60 per cent of our GLA leased, tipping the scales ever closer to complete as we continue to make provisions to house more big names in retail. ” The mall will also be the first to offer Fitness First in Al Ain – the largest privately owned health club group in the world – to its visitors. The anchor will cover more than 1,200 sqm, and join 35 branches in the UAE. The fastest growing electronics retail chain in the Middle East, E-Max, will also be taking close to 800 sqm of the shopping complex. “Adding internationally recognised brand names will allow Wahat Hili to draw in more customers who are looking for things never offered in Al Ain before, ” added Al Dhaheri.
	68 Housing units to be constructed in Barsha	Units are part of 1,040 houses project in Barsha • WAM Dubai: The Mohammad Bin Rashid Housing Establishment has begun the construction of 68 housing units within the housing project of Barsha, which will include 1,040 houses fit for small families. The houses under construction are to be distributed as soon as possible to the beneficiaries. The move comes from the establishment’s keenness to ensure it meets the needs of various segments of society for low-cost high-quality homes. Sami Gargash, Executive Director of the Establishment, gave directives to accelerate the completion of the housing, and pointed out that the date of completion will be announced soon. Al Maqta area and Abu Dhabi Gate City project begins Two exits and two roundabouts to be built on Khaleej Al Arabi Street • Staff Report Abu Dhabi: Work on the Al Maqta area and Abu Dhabi Gate City project commenced on Saturday, the Department of Transport in Abu Dhabi announced. Under this initiative, two exits on the Khaleej Al Arabi Street as well as two roundabouts in both areas will be built in a bid to increase traffic safety and flow on Khaleej Al Arabi Street. The project will be done in two steps: the first will encompass the construction of an exit from Khaleej Al Arabi Street as well as a roundabout to facilitate traffic to and from Al Maqta area, while the second step will see the creation of another roundabout and an exit to Khaleej Al Arabi Street in Abu Dhabi Gate City. At the same time, the current exits linking Khaleej Al Arabi Street with both areas will ensure safer and less traffic in the area’s entrances and exits causing less congestion, especially during peak hours. Previously known as ‘Between the Two Bridges’, the Al Maqta area is currently one of Abu Dhabi’s key regions and home of some of the city’s leading tourism, culture and urban landmarks such as the historical Al Maqta Castle, Al Maqta Bridge as well as the Shaikh Zayed Bridge. Stressing the role this development project plays in optimising Abu Dhabi’s transport infrastructure while helping provide an integrated and safer road network, General Director of Main Roads at the Department, Eng Faisal Ahmad Al Suwaidi, said: “Al Maqta Area and Abu Dhabi Gate City project, once completed, will allow motorists a wide spectrum of benefits such as smoother and better traffic, less congestion and higher safety standards.” “The Department has undertaken several studies to guarantee that the best possible approaches are adopted in order to preserve the area’s aesthetic and cultural landmarks whilst traffic is maintained unaffected during the whole duration of work. The implementation of the project in different phases ensures that neither traffic congestion nor road detouring is needed,” he added. The Al Maqta Area and Abu Dhabi Gate City project is being implemented by the department in close cooperation with a number of partners including Abu Dhabi Police, Abu Dhabi City Municipality, Urban Planning Council, Abu Dhabi Distribution Company, Abu Dhabi Sewage Service Company, and Traffic Control Centre. The first phase of the project, Al Maqta Area enhancements, is planned to be completed by the first quarter of 2014.
	Masdar launches Dh102.8m wind farm	The new project plant is country’ first large-scale, renewable-energy project • By Shehab Al Makahleh Staff Reporter Abu Dhabi: The Port Victoria Wind Power Project, Masdar’s six-megawatt wind farm in the Republic of Seychelles, which consists of eight wind turbines across two small islands off the coast of Mahe to provide electricity to more than 2,100 homes, will be inaugurated today. Masdar, which developed and delivered the project and which is owned and operated by the government of the Seychelles, said: “The new project plant is Seychelles’ first large-scale, renewable-energy project which accounts for more than 8 per cent of the grid capacity on the archipelago’s main island of Mahe, where 90 per cent of the country’s residents live.” According to Masdar, five turbines will be located on Romainville Island and three will be at Ile du Port. The 750 kilo watt wind turbines are supplied by a South Korean turbine manufacturer and contractor. Before the wind farm began operations, the Seychelles was entirely dependent on imported fossil fuels for its energy generation. The integration of clean, sustainable energy is helping the island nation decrease its power outages, address its long-term energy security and reduce its carbon footprint, said Masdar. The project will produce nearly 7GWh of clean energy per year, displacing approximately 5,500 tonnes of carbon dioxide annually and power more than 2,100 homes. The plant will reduce import of fuel by 1.6 million litres per year. “The Port Victoria Wind Power Project is a major step toward meeting the Seychelles energy policy, which sets a target of producing 15 per cent of its energy from renewable sources by 2030,” said Masdar. The project was financed through a Dh102.8 million ($28 million) grant provided by the Abu Dhabi Fund for Development (ADFD), a government entity which helps to enhance the living standards in developing nations. In April 2013, Masdar had inaugurated a 15-megawatt solar photovoltaic power plant in Nouakchott, which is the largest solar power installation in Africa. The Nouakchott project is the first utility-scale solar power installation in the Islamic Republic of Mauritania and accounts for 10 per cent of Mauritania’s grid capacity which produces 25,409 MWh of clean electricity annually and displaces approximately 21,225 tonnes of carbon dioxide per year. The plant consists of 29,826 micromorph thin-film panels, manufactured by Masdar PV and will supply the demand in over 10,000 homes in Nouakchott.
	Al Maqta area and AUH Gate City project begins	Two exits and two roundabouts to be built on Khaleej Al Arabi Street • Staff Report Abu Dhabi: Work on the Al Maqta area and Abu Dhabi Gate City project commenced on Saturday, the Department of Transport in Abu Dhabi announced. Under this initiative, two exits on the Khaleej Al Arabi Street as well as two roundabouts in both areas will be built in a bid to increase traffic safety and flow on Khaleej Al Arabi Street. The project will be done in two steps: the first will encompass the construction of an exit from Khaleej Al Arabi Street as well as a roundabout to facilitate traffic to and from Al Maqta area, while the second step will see the creation of another roundabout and an exit to Khaleej Al Arabi Street in Abu Dhabi Gate City. At the same time, the current exits linking Khaleej Al Arabi Street with both areas will ensure safer and less traffic in the area’s entrances and exits causing less congestion, especially during peak hours. Previously known as ‘Between the Two Bridges’, the Al Maqta area is currently one of Abu Dhabi’s key regions and home of some of the city’s leading tourism, culture and urban landmarks such as the historical Al Maqta Castle, Al Maqta Bridge as well as the Shaikh Zayed Bridge. Stressing the role this development project plays in optimising Abu Dhabi’s transport infrastructure while helping provide an integrated and safer road network, General Director of Main Roads at the Department, Eng Faisal Ahmad Al Suwaidi, said: “Al Maqta Area and Abu Dhabi Gate City project, once completed, will allow motorists a wide spectrum of benefits such as smoother and better traffic, less congestion and higher safety standards.” “The Department has undertaken several studies to guarantee that the best possible approaches are adopted in order to preserve the area’s aesthetic and cultural landmarks whilst traffic is maintained unaffected during the whole duration of work. The implementation of the project in different phases ensures that neither traffic congestion nor road detouring is needed,” he added. The Al Maqta Area and Abu Dhabi Gate City project is being implemented by the department in close cooperation with a number of partners including Abu Dhabi Police, Abu Dhabi City Municipality, Urban Planning Council, Abu Dhabi Distribution Company, Abu Dhabi Sewage Service Company, and Traffic Control Centre. The first phase of the project, Al Maqta Area enhancements, is planned to be completed by the first quarter of 2014.
	UAE-based NRIs invest Rs15b	Muzaffar Rizvi (INTERVIEW) / 16 June 2013 The Indian property sector is a promising growth market and it will continue to attract non-resident Indians, or NRIs, in the UAE, who have invested around Rs15 billion in the sector, according to an expert. Sunil Jaiswal, chief executive and president of Sumansa Exhibitions, the organiser of upcoming Indian Property Show, said NRIs are keen to invest back home and the current exchange rate will help bring five to nine per cent more investment in the sector this year. “NRIs can take the advantage of the current exchange rate by investing in the property sector. There is a lot of interest amongst the NRIs; our exhibition scheduled this week is receiving a lot of interest from buyers and we have good visitor pre-registration on our Web site,” Jaiswal told Khaleej Times in an interview. He said the decision to buy property is not only based on exchange rates, as there is a lot more to it. “With the current exchange rate, I feel it will only speed up the decision-making process.” New concepts, initiatives Jaiswal said the forthcoming Indian Property Show and Ramadan Night Market in August will be the biggest-ever events and will deliver the best of services to NRIs and residents of Dubai. “More than 100 Indian developers will showcase over 400 projects to NRIs during the three-day Indian Property Show, starting from June 20,” he said, adding that 174 stalls at the exhibition will offer a wide range of developments from all across India. He said developers from Delhi, Noida, Gurgaon, Jaipur, Mumbai, Navi Mumbai, Thane, Pune, Bangalore, Chennai, Kerala and others will be attending the three-day exhibition to present apartments, villas, row houses, commercials and plots ranging from Rs1 million to Rs230 million. On initiatives at the bi-annual event, Jaiswal said this year’s exhibition will include “know your city” seminars on high-growth areas in India by industry experts. It will be a regular feature like other seminars on legalities, investment strategies and others. “We are coming up with some new concepts and unique shows and exhibitions for next year. These are in the planning stages at the moment. Once we finalise the details, formal announcements will be made,” he said. To a question, he said the exhibition is now an internationally-acclaimed event showcasing Indian properties to NRIs across the world. It is one of the best property shows globally and one of the most-awaited Indian-property event in several countries. “So far, we have successfully organised 18 international shows in locations such as the UAE, the UK, South Africa, Singapore and Hong Kong in a span of six years, and the list is ever increasing,” Jaiswal said. “We are at a planning stage for organising events in countries with a sizeable NRI population around the world for 2014. We should be freezing the plan and we will release our calendar by September this year.” In reply to a question regarding Sumansa Exhibitions’ growth since its inception in 2006, he said: “We have seen tremendous growth over the past years and would like to replicate it in the years to come.” Property outlook Jaiswal is upbeat on the development of India’s property sector and said it is the right time to invest in commercial and residential projects amid low exchange rates and the general election next year, which may slow down the sector’s growth. “The Indian property sector is quite different; one needs to analyse the market city-wise. In my opinion, tier one and two cities can see a 15 to 20 per cent and 10 to 14 per cent appreciation, respectively, although the growth might be less during 2014 as the country goes for the Lok Sabha election. However, [from] 2015 onwards, the markets should grow at the same pace,” he explained. Jaiswal said NRIs can take advantage of the rate of exchange, which “today is at 15.78 for one dirham. A few years back it was 11.8. It only means you get 33.72 per cent more for your money. Whether you send money to support your family, make a fixed deposit or bond, or even better if you are planning to buy a property this is an opportunity for you — the NRIs — to cash in on the situation.” Dubai an int’l trade hub In reply to a question about the business environment in the UAE, Jaiswal said Dubai has become an international hub for trade due to its excellent infrastructure and modern-day facilities. “After having done business in countries like the UK, Singapore, Hong Kong, South Africa and India, I see a very positive business environment in Dubai. Entrepreneurship is in the blood of the citizens and residents of Dubai and the UAE, for both Emirati and expats.” “It’s amazing how the government functions in Dubai. They are systematic, fast and efficient to the core. The government of Dubai is always first to adopt new technologies to its governance. It’s tax-free and has less bureaucracy. I know of many companies that have moved their base from many parts of the world or opened their offices in Dubai for hassle-free operations. And not to mention that Dubai has become an international hub for trade as it is well connected to the world and a not-to-be-missed tourist destination.” Ramadan Night Market About the Ramadan Night Market in August, Jaiswal said it will also become an annual event following its successful launch last year, which attracted over 50,000 visitors. The floor space for the 10-day exhibition has already been doubled for this year edition. “A bigger, better and more exciting exhibition returns this Ramadan and Eid. The night market will be held from August 1-10 at the World Trade Centre. This year we have added an array of new features such as exclusive Arabian souq, fashion food, abaya and jewellery pavilions, special kids’ zone, health and beauty bay, and much more,” he said. “This year, we have doubled the floor space for this Ramadan Night Market and we will now be hosting close to 400 stalls. The event allows local businesses and small entrepreneurs the opportunity to promote their business and to create awareness for their brand. Certainly, the response so far has been encouraging and we would like to make it an annual feature, for residents and tourists to look forward to.”
	Etihad now serves Belgrade	Staff Report / 16 June 2013 Etihad Airways’ maiden flight to Belgrade, the capital of Serbia, has landed on schedule at the city’s Nikola Tesla Airport. The Airbus A319 aircraft, flight EY71 from Abu Dhabi, touched down at 12:15pm local time and was welcomed with the traditional water cannon salute. The national airline of the UAE now flies daily between Abu Dhabi and Belgrade, carrying the JU code of Serbia’s national carrier, JatAirways. Cooperation between Etihad Airways and JatAirways continues to grow and the two airlines will — subject to government and regulatory approval — add their code to more than 40 destinations across each other’s networks. Etihad Airways operates a two-cabin Airbus A319 aircraft on the service between Abu Dhabi and Belgrade, configured to carry 106 passengers, with 16 seats in Pearl Business Class and 90 seats in Coral Economy Class. The aircraft was welcomed at the gate by Joost den Hartog, Etihad Airways’ vice-president for Europe, and Violeta Jovanovi?, Belgrade Airport chief financial officer. They were joined by Captain Suliman Yaqoobi chief A320 pilot at Etihad Airways who operated the return flight to Abu Dhabi, and first officer Aisha Al Mansoori.
	Adnec to promote business tourism in Asia	Staff Report / 16 June 2013 The Abu Dhabi National Exhibitions Company, or Adnec, is gearing up to promote Abu Dhabi as a leading global business tourism destination to top industry decision-makers in South Korea and Japan during a promotional tour of the two countries. Organised by the Abu Dhabi Convention Bureau, a body tasked with bolstering the UAE capital’s global status as a business tourism hub, the road show will kick off tomorrow in Tokyo before moving to Seoul on Wednesday. During the tour, officials from the Adnec and the the Abu Dhabi Convention Bureau will conduct workshops and offer presentations to invited guests, highlighting the emirate’s unique selling proposition and competitive advantages as a business destination. “Korea and Japan present huge opportunities for Abu Dhabi and the Adnec in achieving our objective to attract leading meetings, conferences and exhibitions. Both countries continue to demonstrate strong growth in outbound tourism. Our geographical proximity to western markets, while remaining within easy reach of key eastern markets, will serve as a key strategic advantage in raising our profile to these audiences,” said Robin Miller, sales director for Conferences and Events at the Adnec. “We recognise the role we play in the development of the emirate in line with Abu Dhabi Economic Vision 2030. Our collaborative approach to attracting the world’s leading meetings, conferences, exhibitions and events to Abu Dhabi are testament to our commitment towards this mandate.” The road show team will comprise 15 senior representatives from 12 high-profile entities across Abu Dhabi including Etihad Airways, the Tourism Development and Investment Company, Emirates Palace, Anantara Group, Park Hyatt Abu Dhabi Hotel and Villas, City Seasons Group and more. Earlier this year, the Adnec participated in the Abu Dhabi Convention Bureau’s first promotional tour to the United States.
	Upswing in Dubai property	Abdul Basit / Dubai’s property market is picking up and offering good returns to investors, according to a top official of the emirate’s property regulator. Marwan bin Ghulaita, chief executive officer of the Real Estate Regulatory Authority, or Rera, said that up to 20 per cent of speculation in the market is acceptable to encourage first-comers. The agency had no plans to introduce fresh regulations on Dubai’s real estate market, Bin Gulaita indicated after inaugurating Deyaar Development’s new branch in Dubai on Monday. “It’s not all on the regulations and the law,” he said, adding that buyers themselves should know what they wants. “Dubai is growing and investors are getting good returns and there is opportunity for newcomers,” he added. Since the start of the year, Dubai’s largest developer has announced several big projects, the most recent of which are plans for a huge residential and commercial development near the emirate’s downtown area in partnership with Meraas Holding. Property prices witnessed a significant increase during the last year and industry analysts believe that prices will continue to increase with a double-digit rate during the rest of 2013 and years ahead. Property prices in Dubai saw a 6.2 per cent growth in the first three months of 2013, though apartment prices remain between 43 and 61 per cent below peak prices, according to a recent report by Deutsche Bank. Another study by Knight Frank revealed that property prices in the emirate jumped by 18.3 per cent in the past year. Almost a year ago, the Dubai Land Department introduced a Code of Corporate Governance that outlines the responsibilities of a developer and ensures that they disclose recourses and alternatives available for prospective investors in case of a delay in completion and handover. “The code has been shared with all developers and it is being implemented slowly among them. It will take time to implement,” Bin Gulaita said, adding that one of the objectives of the Rera was to make as many as developers possible to work like listed companies. The draft code suggests that all developers will have to appoint a dedicated investor relation officer who will deal with enquiries of institutional and individual property investors. A certain amount of speculation is acceptable, the Rera chief said, adding: “If we say 20 per cent, or 10 per cent is speculation, it is always okay for the market because there will always be first-comers.” “They will be the people who will take the challenge and the risk to invest in any such project,” he added. He mentioned that said developers had introduced their own measures to limit such practices as no new project is being launched without a 20 per cent guarantee against construction costs. Steps being taken by developers are enough measures, he said, adding: “If you go to Emaar nowadays you cannot sell until you pay 40 per cent, and with Nakheel you give the post-dated cheques. The mechanisms… I think are working now.”
	Emaar Properties and Meraas Holding	To develop first phase of mixed-use community Dubai Hills Estate • By Saifur Rahman, Associate Editor Dubai: Meraas Holding, a leading Dubai-based development company, and property developer Emaar Properties, yesterday announced a joint venture to develop the master-planned mixed-use community Dubai Hills Estate, the first phase of the Mohammad Bin Rashid City (MBR City), the largest of its kind real estate development in the Middle East region. A premium lifestyle community, Dubai Hills Estate will be set on prime land, spanning over 11 million square metres (2,700 acres) located centrally by the junction of Umm Al Sequim Road and Al Khail Road, 10 minutes driving time from Downtown Dubai, a joint statement said. The project will host a series of neighbourhoods set around an 18-hole championship golf course. “Featuring vast stretches of landscaped parks and gardens, winding walkways and extensive open areas, Dubai Hills Estate will serve as a rejuvenating getaway in the heart of the city, with the rolling greens and fairways of the golf course assuring a serene ambience,” the statement said. “Overlooking the golf course will be the stylish Dubai Hills gated villa community, with the opportunity for customers to design their luxurious homes to their bespoke considerations.” Company officials said, master-planning of Dubai Hills Estate is progressing, with an emphasis on sustainability. The project is expected to generate long term wealth enhancement to the economic and social development of Dubai. It will also boost the tourism sector of the city, with its array of leisure amenities complementing MBR City’s objective of boosting family tourism. “Dubai’s property sector is recording robust growth, led by the transformational growth of the city. MBR City is an ambitious undertaking, envisioned by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to meet our future growth goals,” Abdulla Al Habbai, Group Chairman of Meraas Holding, said. “Our joint venture with Emaar Properties to develop Dubai Hills Estate will bring incredible value to the property sector of Dubai and the city’s economy.” It will also feature an iconic commercial centre, and low-rise and mid-rise residences, hotels and serviced hotel apartments. The project will have high-end retail centres and varied leisure amenities. It will also include educational institutions, healthcare facilities and mosques.
	How Dubai will become Middle East fashion Hub	Project will create new employment opportunities and help UAE fashion designers • By Saifur Rahman, Associate Editor Dubai: Dubai, which has so far become a major outlet of global fashion and accessories products, has taken a bold initiative to create a hub for design, innovation and creativity for the global fashion industry — by launching the Dubai Design District, industry observers say. His Highness Shaikh Mohammad bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai on Saturday announced that a new integrated facility — Dubai Design District — will be created adjacent to the Business Bay area of Dubai, dedicated to developing the Emirate’s fashion, design and luxury sectors. The district will be operated by Tecom Investments, a member of Dubai Holding, which has an impressive track record in creating, operating and growing successful, industry focused business parks in Dubai. “The implementation of a knowledge and innovation-based development strategy requires a vision, strong coordination at the top level of government, and a participatory approach to mobilise the population to back the needed reforms,” Abdul Aziz Othman Al Twaijri, Director General, Islamic Educational, Scientific and Cultural Organisation, said in a recent report. “Sustained strategic efforts are needed to obtain tangible outcomes and to anchor the new practices so that they will endure over the medium to long term. The real challenge especially for the private sector is to develop more competitiveness and identify ‘niche markets” in the global economy,” he said. Dubai Government had earlier created the region’s first knowledge clusters — Dubai Internet City, Dubai Media City, Knowledge Village, Dubai Studio City and International Media Production Zone. The creation of the Dubai Design District is a natural progression to these clusters and will help realise the government’s vision to create a world-class hub. Analysts say, Dubai might not replace Milan or Paris as the world fashion hubs, but could create a new hub — where investment is flowing in. “The new fashion, design, and luxury goods district builds on Dubai’s strengths in tourism, which is expected to double the number of visitors to 20 million by 2020, and in retail, which is estimated to grow to Dh151 billion in the next two years,” a Dubai Government statement said. “These strengths coupled with Dubai’s strategic location and business-friendly environment, have encouraged major industry players like Prada, Louis Vuitton, and Ralph Lauren to set-up operations in Dubai.” Dubai Design District will be a vital part of the process as we look to deliver against the objectives set out in our Tourism Vision 2020, and it will provide an additional key element in Dubai’s bid to host Expo 2020, it said. With this move, the emirate will now attract investment in developing creative fashion designs for the global luxury and consumer markets and will contribute to the industry’s growth. “This is the a step towards the right direction and will help attract creative talents to shift their bases in Dubai — which will become part of the global fashion industry map,” Dr Khalid Maniar, an investment advisor and Managing Partner of Horwath MAK, told Gulf News. “Dubai is already a hub for luxury and fashion products. However, it has been on the consumption side. The Dubai Design District will help the emirate to combine Arabian design concept to mix with Western fashion designs to create a fusion — something that has already been happening.” The Middle East luxury market saw growth of 10 to 15 per cent from 2011 to 2012, establishing the region as the tenth largest luxury goods market globally. Dubai sits at the heart of this achievement. “Also the move comes at the right time as the country’s economy has begun to grow with investors looking back at Dubai to invest,” Dr Maniar said. The district is expected to become a full service commercial hub for design industry-related organisations, brands, and supporting enterprises within the value chain, a statement by Dubai Government said. “It will feature a custom built creative community that will encompass purpose built commercial and retail facilities for established and emerging designers, design institutes, waterfront promenade, convention centre and event venues and related academic institutions,” it said. The UAE also holds the second position in the 2011 Apparel Index, driven by a population with a high disposable income and immense fashion consciousness. Dubai’s rapid growth in the areas of fashion, luxury and retail is typified by the success of The Dubai Mall, the world’s largest shopping and leisure destination, which welcomed 65 million visitors last year — more than the number of people who visited New York in 2012. The move is expected to contribute to Dubai’s and the regional economy by attracting investment, create employment — both direct and indirect — as well as increase value-added exports of fashion and luxury products. “So far, Dubai had been a market for consumer and high-end luxury fashion products. The move will change that. Dubai Design District will help new fashion labels emerge from here and eventually help compliment the growth in the global fashion industry — which is challenged by the European financial crisis,” Jitendra Gianchandani, Chairman of Jitendra Chartered Accountants, an investment advisory, told Gulf News. “Dubai design district will be one more feather in Dubai’s cap. So far Dubai has successfully attracted investors in various exclusive activity based free zones such as Media free zone, Internet city and Health care. Then why not fashion and design? “It will help to boost to ancillary industries in fashion, design and luxury goods in a country where more then 200 nationalities with multicultural environment share and experience fashion and luxury products,” he said.
	Abu Dhabi to woo Far East tourism	(Staff Report) / A delegation from Abu Dhabi’s tourism industry is heading to Japan and Korea this month for road shows aimed at putting the emirate’s expanding destination offering further up the Far Eastern outbound travel trade agenda. Led by the Abu Dhabi Tourism Culture Authority, or TCA Abu Dhabi, an 11-strong delegation — with a mix of transport, hotel and resort operators, Mice facilities and destination management companies — touts an expanded tourism proposition that is being increasingly tailored to the high-yield Far Eastern visitor. With ever stronger commercial and trade links between Abu Dhabi and both Japan and Korea, the emirate’s tourism sector is looking to turn business relationships to their advantage. “Travellers from both countries now have good air access to the emirate with Etihad Airways operating 12 flights a week from Japan and seven from Korea to Abu Dhabi International Airport,” said Mubarak Al Nuaimi, director for Promotions and Overseas Offices, TCA Abu Dhabi. The dual country push comes as Abu Dhabi receives more Japanese and Korean hotel guests than ever before. In the first four months of this year, 4,450 Japanese checked into the emirate’s hotels and hotel apartments, a jump of 10 per cent on the same period last year. They delivered 17,842 guest nights, up five per cent year-to-date that translates into an average-length-of-stay of just over four nights. Growth from South Korea was also encouraging. Some 5,059 Koreans stayed in the emirate’s accommodation from January to April this year, a 35 per cent leap on the same period in 2012. They delivered 13,319 guest nights, a year-to-date climb of 72 per cent and translated into average-length-of-stay of 2.63 nights, which is a 28 per cent expansion.
	Average construction cost surges 20 percent	Haseeb Haider / 5 June 2013 The average construction cost in Abu Dhabi has risen 20 per cent year-on-year in the first quarter of the year, as cost of construction materials and overhead expenses have soared to new proportions, an industry executive said. The estimated average construction cost in Abu Dhabi ranged between Dh3,518 to Dh4,104 per square metre, depending on the gross floor area, the interior finishes and the intended type of use, the Statistics Centre-Abu Dhabi (SCAD) said in its latest survey. Data showed a higher cost per unit area for buildings intended for residential use by landlords as compared with buildings constructed for investment purposes. Buildings with a gross floor area of 300 to 599 square metres had the highest construction cost of Dh4,104 per square metre, while buildings with a gross floor area exceeding 1200 square metres recorded the lowest construction cost of Dh3,518 per square metre. A senior manager of a leading construction company in Abu Dhabi said that during the past 12 months steel and cement prices have also soared 10 to 15 per cent, due to various reasons. But the overheads have gone high many times, like for instance the labour accommodation, which has increased by almost 150 to 200 per cent. Office rents have also gone up. The executive also said that the average construction cost in Abu Dhabi was around Dh2600 per square meter, in the same period last year. Meanwhile, the SCAD has issued the latest statistics on the buildings completed in Abu Dhabi, Al Ain and Al Gharbia region during the first quarter of 2013. The report analysed data on the buildings completed by region, type of usage and cost of construction, based on the administrative records of Abu Dhabi Municipalities. A total of 1,979 buildings were completed in Abu Dhabi in the January-March period of which 1,283 buildings (65 per cent) were in the Abu Dhabi region, 668 buildings (34 per cent) were in the Al Ain region and the remaining in the Al Gharbia region. A total of 1,842 new buildings were completed in Abu Dhabi in the period marking an increase of 343 buildings compared to the same period of last year. A total of 2,461 residential units were completed in Abu Dhabi, down 6.2 per cent year-on-year. However, the number of housing projects in Al Ain rose to 702 units, marking an increase of 513 units compared with the first quarter of 2012. On the other hand only 13 residential units were completed in Al Gharbia during Q1 2013, down from 83 units in the same period last year. SCAD’s data indicated that a 91.4 per cent or 1,809 of the buildings completed in Q1 2013 in Abu Dhabi were residential, with 55 commercial buildings completed over the same period. A similar pattern was observed in Abu Dhabi, where 1,203 or 81 per cent of the buildings completed in the region were residential buildings, compared with 26 industrial buildings and 16 public facilities.
	4.36 million visitors spent Dh12.3b during DSS	Staff Report / 5 June 2013 The most popular summer event, Dubai Summer Surprises’ 2012 edition, in the region succeeded in attracting 4.36 million participants, contributing Dh12.3 billion to the Dubai economy in the span of only 32 days between June and July 2012. Dubai Festivals and Retail Establishment, an agency of The Department of Tourism and Commerce Marketing or DTCM, said in a Press statement on Tuesday that from 3.95 million in 2011, the number of people that interacted with DSS 2012 rose by 10.4 per cent to 4.36 million for the one month event, out of which 914,228 were international and regional visitors to Dubai with the remaining 3.4 million participants coming from within the UAE. The comprehensive research was undertaken during DSS 2012 by independent global research firm YouGov. The release of the results of the research comes on the eve of this year’s edition that opens to the public on June 7 and will last until July 7 offering a fun packed month of family focused activities as part of the wider “Summer Is Dubai” campaign already launched by Dubai Festivals and Retail Establishment. The most impressive rise came in the expenditure of DSS 2012 participants that saw a year on year increase of 39.9 per cent with spending increasing from Dh8.8 billion in 2011 to Dh12.3 billion in 2012, demonstrating the major contribution that Dubai Summer Surprises continues to make to the Dubai economy. Shaikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman and CEO of Emirates airline and Group and Chairman of Dubai World said: “The success of Dubai in the summer shows the powerful attraction of Dubai as a truly year-round visitor destination. The continuing growth of the city for visitors in the summer months is an important step in helping us achieve the ambitious but achievable goal of attracting 20 million visitors a year by 2020 that was recently announced by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.”
	73b worth of natural gas development projects	Shell committed to delivering gas from Bab sour gas project by 2020 • By himendra Mohan KumarStaff Reporter Recently, Shell said it had won a 30-year deal to develop Adnoc’s Bab sour gas field, a project estimated to be worth $10 billion. Adnoc will own 60 per cent of the Bab joint venture while Shell will own the remaining 40 per cent. Al Suwaidi said Adnoc’s criteria in selecting a strategic foreign partner included the foreign partner’s commitment to work on a long-term basis with the Adnoc Group, technology transfer and development of local workforce and providing exceptional services at all stages of the oil and gas field development. Abu Dhabi has onshore concessions expiring in 2014 while offshore concessions expire in 2018. The Abu Dhabi government will evaluate companies on their technical ability when a decision is finally taken before January 2014 on foreign partnerships for onshore concessions expiring that year, a well-placed oil industry source told Gulf News, previously. Political and financial considerations will also play a role, the source added. The decision on foreign partners for offshore concessions will likely be taken before their expiry in 2018, said the source, adding the indications are the onshore concessions will be offered for a shorter duration, not 65 years as is the case with some existing contracts. Al Suwaidi also said the UAE’s current oil production stands at 2.77 million barrels per day while its natural gas output is 5.3 million cubic feet per day. Separately, Robin Mills, Head of Consulting at Dubai-based Manaar Energy told industry delegates that the Middle East North Africa (Mena) region’s gas export growth is “virtually all driven by Qatar and Algeria”. “Neither will grow much after 2015. Algerian exports are already declining,” said Mills, adding Oman and Egypt’s gas exports were also on the decline at a time when new importers of the fuel were appearing on the scene.
	Dubal and Emal in big merger	Haseeb Haider / 4 June 2013 Abu Dhabi and Dubai have joined forces to merge their aluminium manufacturing facilities into the Emirates Global Aluminium (EGA), which will become the world’s fifth-largest company. It all happened after Abu Dhabi’s Mubadala Development Company acquired a 50 per cent stake in Dubai Aluminium (Dubal), based in Jabel Ali. Mubadala, which jointly owns with Dubal an Abu Dhabi-based smelter Emirates Aluminium (Emal) located in Khalifa Industrial Zone in Taweelah, purchased the stake to expand its market share and in return got a ‘win win’ deal to benefit the economy. With this new development in aluminium sector, Mubadala and Investment Corporation of Dubai (ICD) would have equal share of 50 per cent in the Emirates Global Aluminium, which will look for local as well as international expansions. The agreement signed on Monday unifies the Jebel Ali and Taweelah smelter assets, as well as interests in Guinea Alumina Corporation and Cameroon Alumina Limited. The new company will start its operations within the first half of 2014. At a signing ceremony, attended by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, Khaldoon Khalifa Al Mubarak, Managing Director of Mubadala Development Company and Mohammed Ibrahim Al Shaibani, Chief Executive Officer of ICD signed the agreement. Federal ministers, top government officials and other dignitaries attended the ceremony. “It was only natural,” said Riad Mattar, chief executive officer of Global Minds, an economic consultancy in Abu Dhabi. Mattar said there were discussions going on since many years between the officials of the two emirates to merge the two aluminium giants to benefit from the economies of scale. He said the merger, which was the first of many to come in other fields, will only benefit the UAE economy and in near future will create more acquisitions and business opportunities. Abdullah J. M. Khalid Al Kalban, president and chief executive officer of Dubai Aluminium said the joint venture has led to a $15 billion enterprise, with a joint production capacity of 2.4 million metric tonnes per annum. After the acquisition, the new company Emirates Global Aluminium will be a jointly-held, equal-ownership company which will integrate the businesses of Dubai Aluminium and Emirates Aluminium. The new firm, which is an efficient manufacturer of aluminium, will save from sourcing the raw materials, logistics, shipping and others, said Al Kalban. He added “we will have synergies on finance, human resources, and operations also.” The new company will look to expand along the value chain, from aluminium smelting to alumina refining and bauxite mining overseas. Given its scale, Emirates Global Aluminium will also continue to attract downstream manufacturing and ancillary businesses related to aluminium smelting and alumina refining as it grows, thereby indirectly creating additional jobs. M.R. Raghu, Head of Research at Kuwait Financial Centre or Markaz, in Kuwait City, called it a “smart move at a time when global businesses are restructuring and resizing.” He said “Dubai has always pioneered creation of world class entities like Emirates and creating such scale oriented companies can help extend that momentum. This is especially true in an increasingly “new normal” world where muted global growth will strain demand and in this environment economies of scale, pricing flexibility and global market capture can bring enormous upside to an economy,” Raghu said.
	Abu Dhabi Int’l traffic rises 14 percent	(Staff Report) / 4 June 2013 Abu Dhabi Airports Company (ADAC) on Monday announced the traffic figures for the first four months of 2013 highlighting a double digit increase of 14 per cent in passenger traffic compared to the same period last year, as more than 5.2 million passengers were welcomed at the airport. During January through April 2013, the airport welcomed 42,735 flights, representing a 9.5 per cent increase compared to the same period last year. Cargo traffic also increased with 209,880 tonnes of cargo passing through the airport representing a 20.2 per cent increase compared to the first four months of 2012. Destinations in India, Germany, Saudi Arabia, Thailand and Pakistan registered the highest traffic during the January through April period this year. Ahmad Al Haddabi, chief operations officer at ADAC, said: “As the capital’s airport continues to register double digit growth in passenger traffic, ADAC will continue to invest in Abu Dhabi International Airport in order to provide the infrastructure necessary to ensure world-class service and optimal efficiency for all passengers and partners, while supporting the growth of Abu Dhabi as an international hub.” In the months of March and April, Abu Dhabi International Airport received over 1.3 million passengers each month, recording a double digit growth of 15 per cent in March, whilst April recorded an 8.6 per cent growth compared to the same period last year. In parallel, the airport handled over 10,000 aircraft movements in both March and April 2013 separately, recording a 10 per cent increase in March and a 7.9 per cent increase in April versus the respective months in 2012. In 2013, cargo volume reached 59,474 tonnes in March, representing a 25.6 per cent increase; whilst in April, volumes reached 51,511 tonnes, representing a 7.9 per cent increase versus the same period last year.
	Iata raises airline profit forecast	(Issac John) / 4 June 2013 Global airlines will record in 2013 a combined net profit of $12.7 billion, up from a previous forecast of $10.6 billion, while Middle Eastern carriers will generate $1.5 billion — higher than the $1.4 estimated in March, the International Air Transport Association, or Iata, said on Monday. The latest upbeat forecast was based on lower oil prices, optimum load factor and belt-tightening by carriers across the globe. This revised outlook for Middle Eastern carriers is far rosier than the $1.1 billion profit predicted by Iata in 2012 and stronger than the $900 million profit recorded last year. Globally, the new estimate represents a 67 percent gain on last year’s profit of $7.6 billion. Iata chief executive officer Tony Tyler said at the World Air Transport Summit in Cape Town that airlines were set to carry more than three billion people for the first time this year. Most carriers have resisted adding seats to chase market share. The strategy should lift their average load factor, or seat occupancy, to a record 80.3 per cent, Tyler pointed out. “Airlines have done a pretty good job of being profitable in very difficult circumstances” that include rising oil prices and slowing economic growth, Tyler said. With the improved outlook, the industry’s earnings will equal just 1.8 per cent of its $711 billion in revenue, trailing a profitability high for the past decade of 3.3 per cent set in 2010. Carriers in all regions should post a profit this year, led by airlines in Asia with projected earnings of $4.6 billion and North America with $4.4 billion, Iata, which represents 240 carriers accounting for 84 percent of global traffic, said in a statement. However, margins remained weak amid Europe’s ongoing debt crisis. “The day-to-day challenges of keeping revenues ahead of costs remain monumental. On average, airlines will earn about $4 for every passenger, which is less than the cost of a sandwich in most places,” he said. Tyler said record passenger numbers and growth in “ancillary” revenues were the two key reasons driving improved profitability. Airlines are expected to fill a record 80.3 per cent of seats and transport an unprecedented 3.13 billion passengers in 2013, up from 79.2 per cent and 2.98 billion respectively last year, as operational changes and better capacity management filter through. Ancillary revenues would rise to $36 billion, or five percent of total turnover, as airlines unbundle more services from base fares and charge for additional services such as meals, extra baggage and seats. “These are significant factors that are driving performance,” Tyler said. Earlier in separate address, Tyler said US airlines were poised to go on an international offensive following mergers and job cuts that have delivered leaner companies better able to compete with rivals from Asia and the Middle East. “We’re going to see more competition now internationally as the US carriers operate from a stronger base,” Tyler said. European airlines should accrue net income of $1.6 billion, with those from Latin America generating about $600 million.
	Dubai tourist traffic soars	Issac John / 30 May 2013 A surge in international tourist traffic is set to position Dubai among the world’s top three destination cities by 2017, and may even catapult it as the world’s number one tourist spot if the emirate wins its Expo 2020 bid. A new report by MasterCard, which shows that Dubai is on track to become seventh in the list of the world’s top destination cities this year, said that the emirate was likely to climb the rankings, surpassing Singapore, New York and Paris by 2017 to become a top-three destination. According to MasterCard’s latest Global Destination Cities Index released on Wednesday, Dubai is set to draw 9.89 million international overnight visitors in 2013, up from 8.2 per cent from last year, to claim the seventh rank. Yuwa Hedrick-Wong, HSBC Distinguished Professor of International Business at the University of British Columbia in Canada, said compared to last year, Dubai rose by one place on the list. With the total number of tourists expected to increase in the coming years, Dubai is likely to climb the rankings, surpassing Singapore, New York and Paris by 2017, becoming a top-three destination. “If all top-10 destination cities maintain their current rates of growth in the next few years, then by 2016 Istanbul will surpass Singapore, New York and Paris in terms of international visitor arrivals; and Dubai will similarly surpass Singapore and New York in 2016 and Paris in 2017,” said the report. Dubai has consistently advanced its position since the inception of the index in 2011, ranking ninth in its launch year, eighth in 2012 and seventh in the 2013 edition. The report predicts that Dubai is expected to witness the fastest growth in passenger traffic at almost 11 per cent to 9.89 million overnight visitors. The recently unveiled Dubai Tourism Vision 2020 envisages that the city will double the number of tourist traffic to 20 million in 2020 from 10 million in 2012, while trebling tourism revenues to Dh300 billion from Dh100 billion. At 10.9 per cent, Dubai (along with Bangkok) shows the strongest growth in arrival numbers among the top ten global markets. Dubai also ranks eighth globally by international overnight visitor spend, with an estimated $10.4 billion to be spent in the city during 2013. Hedrick-Wong pointed out that the transit traffic of Dubai gives it a great potential for exponential growth. If Dubai can convert a faction, even five per cent of that transit traffic into overnight stays, the city would be unstoppable in becoming the world’s number one tourist destination in the coming years, he said. The top five origin cities for Dubai are London, Kuwait, Paris, Frankfurt and Doha, and all of these are expected to grow strongly in visitor numbers in 2013. “While the Middle East and Africa’s top ten cities lineup is exactly the same as in 2012, there is a striking difference in how far Dubai is ahead of the other cities. Its international arrival numbers is almost twice that of Riyadh in second rank, and about four times as high as the third-ranked Johannesburg,” said Hedrick-Wong. The Middle East and Africa’s top five destination cities by international overnights visitors are Dubai (9.9 million), Riyadh (5.0 million), Johannesburg (2.5 million), Amman (2.4 million) and Lagos (2.2 million). Among the Middle East and Africa’s top 10, Abu Dhabi (ranked seventh with 1.7 million visitors) showed the strongest growth rate, with an anticipated 16.1 per cent increase in arrivals. The Index highlights that, if these rates are maintained in the coming years, Abu Dhabi will overtake Lagos in 2016 and match Johannesburg by 2017. The UAE’s capital also ranked sixth among the global top 20 with regard to growth rates of international visitor arrivals between 2009 and 2013, with growth of 96.8 per cent during this period. Within the Middle East and Africa, Dubai ranks first by international overnight visitor spend, followed by Riyadh and Beirut. Beirut’s position in this ranking is remarkable, given that Lebanon’s capital is not among the top ten cities in the region by visitor arrivals. Globally, Bangkok outranked London as 2013’s number one destination city with only about 25,000 visitors separating the two — a difference of about one per cent. The Index predicts that Bangkok will draw the highest international visitor numbers in 2013, ahead of London, Paris, Singapore, and New York. “The inauguration of the index in 2011 has helped us record Dubai’s remarkable growth story, and the index has proven to be a trusted barometer of the market’s performance in the global landscape. Home to the world’s second busiest airport, Dubai has gone from strength to strength, and continues to develop its offerings as it plans to draw even more visitors in the coming years,” said Raghu Malhotra, Division President, Middle East and North Africa, MasterCard.
	UAE, Spain agree to boost economic	Staff Report / 30 May 2013 The UAE-Spain Joint Economic Committee’s second meeting concluded on a positive note here on Wednesday as both sides agreed to undertake all possible measures to further strengthen bilateral trade and extend cooperation on strategic levels of economic activity for mutual benefit. In a joint statement, Sultan bin Saeed Al Mansouri, UAE Minister of Economy, and Luis de Guindos Jurado, Spain’s Minister of Economy and Competitiveness, expressed satisfaction over the meeting and underlined the need to consolidate efforts both bilaterally and through the EU platform to facilitate access to key markets. Economic relations between the two countries have been bolstered in recent years with a rising number of trade missions and high level official visits, following which more Spanish companies have established a presence in the UAE, and the UAE investments in Spain have witnessed sustained growth. “The UAE-Spain Joint Economic Committee has become a major contributor to our efforts to boost trade and commercial ties between our two countries. I am happy to note that the bilateral trade between our countries has registered 75 per cent growth over the last three years, from €1 billion in 2009 to €1.75 billion in 2012,” said Al Mansouri. De Guindos expressed satisfaction with “the increased bilateral trade flows” but added that “there is room to improve in terms of investment opportunities”. “Many Spanish companies are world leaders in their respective sector: in transport infrastructure, civil engineering, financial services, information and communication technologies, among others,” the minister said. As examples of the competitiveness of Spanish companies he mentioned the high speed train between the holy cities of Makkah and Madinah and the enlargement of the Panama canal. The UAE welcomed the establishment of the Joint Business Council between the Confederation of Spanish Businesses and the Federation of UAE Chambers of Commerce and Industry in 2011, and expressed optimism about the active role of the Joint Business Council (JBC) in promoting trade and economic relations between the two countries. “The UAE is committed to strengthening the participation of the JBC in the promotion of trade, investment, services and industrial sectors activities as a means to achieve strategic public-private partnership between our two countries,” Al Mansouri said. As for the Spanish government, De Guindos said that it “appreciates the significant increase in long term investment from the Emirates in Spain.” “Spain can offer Emirati investors excellent opportunities in multiple sectors and can serve as a natural hub to access European and Latin American markets,” he said. Pointing out the contribution of a healthy SME sector in capital accumulation, employment opportunities and regional development, Al Mansouri said the UAE and Spain can create opportunities to work together to develop this vital sector by exchanging information and sharing the best practices in the area of SME promotion and innovation. “Let the SME sector become a crucial driver in improving the competitiveness of our economies and in the process generating greater investment traffic. The UAE will join hands with Spain on initiatives such as business forums and networking events for innovative UAE and Spanish entrepreneurs on a regular basis,” he said. The UAE also expressed interest in enhancing cooperation with Spain in key areas such innovation, renewable energy, petro-chemicals, construction, education, healthcare, transportation and tourism. Bilateral flow of tourists reached close to 70,000 people in 2012, driven by the increased air connectivity between our countries. Spain is the 15th largest economy in the world and the fourth largest in the Eurozone. The country has streamlined procedures for setting up businesses by reducing the number of licensing requirements. Spain’s trade policy is the same as that of other members of the European Union, with the common EU weighted average tariff rate standing at 1.6 percent, according to the 2013 Index of Economic Freedom. Nearly all sectors in the country are open to foreign investment. De Guindos explained that 2013 will be a transition year for Spain, “as the economy begins to show a quarterly growth profile that indicates that it will stabilise by year end and recover in 2014.”
	Flydubai sees strong growth	Abdul Basit (INTERVIEW) / 30 May 2013 Flydubai expects a significant growth in profit during 2013 as the carrier witnessed remarkable growth in the first three months of the year, chief executive officer Ghaith Al Ghaith told Khaleej Times in a recent interview. Dubai’s pioneer low-cost carrier, which commenced operations in June 2009, declared its first full-year profit of nearly Dh152 million for 2012 and revenues at Dh2.8 billion. “Q1 [first quarter of 2013] was very good. We are on target to do very significant growth and very significant profit as well [this year],” Al Ghaith said. He mentioned that five more aircraft will be joining its fleet this year and the airline had already started and announced some new routes in 2013. All of these will help the airline to further expand and achieve huge growth this year, he added. During the current month, the airline has started operations for three new sectors, including Salalah in Oman. Talking about the profitability of new routes, Al Ghaith said that “sometimes it takes time, and sometimes it’s profitable from day one of operations”. The budget airline, which touches 60 places, has announced 64 destinations on which it will start operations until September 20. In 2013, the airline plans to fly nearly 85 million kilometres; it claims an aircraft takes off from somewhere on the network every 9.5 minutes. Last month, flydubai started flights to Tajikistan’s capital Dushanbe. “We started this route with two flights a week and I am sure we will have more capacity soon depending on demand.” Flydubai is the first GCC carrier that has started operations to Dushanbe. He believes that the Azerbaijan market is more mature and extremely important, and that the country and its people are great. Both nations have a strong relationship and there is potential for further stronger ties, he added. The start of services to Dushanbe ended a busy April for flydubai during which the airline also began flights to Mineralnye Vody in Russia and the South Sudanese capital of Juba, bringing its operational network to 57 destinations across the Middle East, South-east Europe, Russia, Ukraine, Central Asia, the Sub-continent and North and East Africa. Talking about the new route, he said: “We have a credit of opening new markets from Dubai and by doing this we are promoting the links.” He mentioned that there are issues in some Middle Eastern countries, but some regions are growing very well. The CIS and GCC markets are very important for the airline and demand is growing very fast, he added. The low-cost carrier’s fleet size is 29 and by the end of 2013 it will reach 34. In February, the airline indicated that a new 50-aircraft order is being planned to meet the growing demand of the airline. It will continue to receive jets until 2016 out of the 50 planes ordered in 2008. “We are still in talks with both the manufacturers [Airbus and Boeing]. This year, for sure, we will make a decision and make an announcement for expanding the airline,” he said. Al Ghaith declined to give any definite date for the new aircraft order, but aviation analysts predicted that it would happen during the forthcoming Dubai Airshow in November, and most likely Boeing will win the order. Al Ghaith said that the challenges to the industry are the same for both full-service and low-cost carriers. The biggest challenge, he said, is fuel price, which is always unpredictable. The second important challenge is access to markets, which is the most important for expansion and opening new sectors for any airline in the world, he explained. Another important issue is visa, he said, adding that complications in getting visas discourage tourists. The chief executive mentioned that a simplified visa process and lower barriers to travel have contributed significantly to increasing passenger traffic to the UAE. Dubai International’s Terminal 2 is the home of flydubai, which is also the second-largest carrier by passenger numbers operating out of the airport. The low-cost carrier carried 5.1 million passengers during 2012, and the ongoing expansion plan of Terminal 2 will double its passenger handling capacity.
	Dubai realty prices seen up	Abdul Basit / 29 May 2013 Property prices and residential rents will continue to rise in Dubai for the next three years on increasing demand and short supply, said Damac Group founder and chairman Hussain Sajwani. The future of the property market in the emirate is very good on strong fundamentals, Sajwani said during a seminar organised by Doha Bank in Dubai recently. “We expect the rent will keep going up in 2014, 2015 or maybe in 2016. So we have a good three years where the demand is there and supply is not,” he said. The chairman explained that the newly-announced projects will take at least three years to come to the market. During that period, demand will continue to rise that will result in increasing rents and prices. He added that the global financial crisis crashed property prices by almost 50 per cent in Dubai. “The crisis was very steep, severe and painful,” he said. “Naturally, from 2009 to 2011 nobody wanted to build and very few units came to the market that created a big gap in supply and demand. Rent has gone up a lot in the past 12 months,” he added. The UAE’s property and projects market is benefiting from a growth in tourism, hospitality and trade particularly, as Dubai and Abu Dhabi are key business hubs in the region, Sajwani said. “The country is witnessing better performance in terms of both value and rental yield in selected projects and this is partly due to positive customer sentiment and partly due to the efforts of the developers to ensure a sustainable marketplace and seek quality buyers. It is an often overlooked fact that Dubai in particular, with Abu Dhabi catching up fast, is still one of the most sought-after global property markets.” “Since the establishment the Real Estate Regulatory Agency, or Rera, optimism — and more importantly, confidence and security — has slowly been restored. In recent years, the Rera and the Land Department have created and enforced a much more comprehensive and transparent regulatory framework. Legislation was also implemented clearly indicating rules for property ownership by UAE nationals, GCC nationals and non-GCC nationals. This has afforded greater protection to buyers, investors and developers. It also created a critical platform that has reduced risk, affording banks the confidence to increase lending.” Talking about new mortgage rules, which are under negotiation with the UAE Central Bank and banks in the country, Sajwani said: “A lot of buyers in Dubai are still cash buyers. I am supportive of a cap of 65 to 75 per cent on the mortgage and I am against 95 per cent.” “In Dubai, we have seen the boom, we have seen the burst and the market is coming back again,” he said. Responding a question, he said that in today’s world it’s very difficult to predict for the long or medium term because “this world is like a village where a small island Cyprus can bring down stock markets”. “We have very strong fundamentals like infrastructure is the best in the world. Dubai managed to build a very good infrastructure, roads, airports, communications network, and hotels. It’s definitely a global city,” he said. He said the second thing that helps Dubai is that the emirate is surrounded by huge economies with problems and issues, he said. People in these countries have money and they want to park it in a safe haven, which is Dubai. Giving Saudi Arabia as an example, the Arab Spring countries, Iraq, Iran, India, Pakistan and the CIS, Sajwani said that they are coming here for different reasons. Some of them running away from cold weather, taxes, political instability or other reasons. Earlier at the seminar, Doha Bank Group chief executive officer Dr R. Seetharaman delivered the inaugural address by setting the stage with a global economic overview. Seetharaman then highlighted the trends impacting projects and infrastructure development in the UAE. “The UAE is undergoing stabilisation has resurged from the property bubble, supported by tighter controls and more cautious optimism in the market. The IMF, this week, said that it is not worried about Dubai’s ability to meet its financial obligations, boosting confidence in many sectors. It also added that the emirate’s economic growth may accelerate to four per cent this year as the construction and logistics industries revive,” he said.
	GCC bond sale pick-up shows investors’	Issac John / 29 May 2013 Led by the UAE, the issuance of debt securities in the GCC recorded a strong pick-up in the first quarter to hit $16.7 billion, underscoring a sustained recovery. Reflecting increased investor confidence and search for yield, most new bond and sukuk issuances have longer maturities, the National Bank of Kuwait, or NBK, said in a report. Along with the UAE, Qatar and Saudi Arabia continued to account for the majority of the region’s issued debt, with total outstanding securities for these three countries amounting to $99 billion, $69 billion, and $38 billion, respectively, the NBK report said. Total outstanding GCC fixed-income instruments reached $231.8 billion at the end of the first quarter, up $12.8 billion from December 2012, the NBK said. While GCC public-sector issuance continued to decline, new debt issues, especially by corporates, tended to have longer tenors, lengthening the average maturity of outstanding bonds. Issuance in the first quarter of 2013 rose two per cent against a year ago to $16.7 billion worth of debt securities. The UAE led the way with $7.8 billion, followed by Saudi Arabia ($5.4 billion), and Qatar ($1.3 billion), the bank said. The first quarter upswing was driven primarily by corporates, with the majority of the push coming from Saudi Arabia. Issuances by the kingdom’s corporates amounted to $5.4 billion, or 32 per cent of all new GCC debt issued during the period. Saudi Electric Company and Sadara dominated Saudi private sector issuance, while Emirates airline and Ooredoo drove debt growth in the UAE and Qatar, respectively. In 2013, according to Standard Chartered, total US dollar-denominated bond issues from GCC countries are expected to hit $37 billion, slightly higher than the $34 billion of total dollar issuance in 2012. Much of the issues from the GCC has been dominated by Dubai, including a two-part $1.25 billion issue by the government, a $1 billion issue from the Dubai Electricity and Water Authority and $1.75 billion from Emirates airline. The NBK report said public sector issuance has been declining over the last year. “During the first quarter, it registered its lowest level since third quarter 2011, with issuance during the quarter at $4 billion. Public sector issuance, which includes sovereign bonds in addition to government related entities, accounted for less than a quarter of all issuance during the first quarter, down from an average above 60 per cent over the last two years.” The bank said the public sector’s share first fell below 50 per cent in the last quarter of 2012 for the first time since early 2009 and has remained there in the first quarter of this year, reflecting a recovering private sector. The report pointed out that GCC bonds and sukuks are increasingly being issued with longer maturities reflecting increased investor confidence and the search for yield. The average maturity of outstanding GCC debt securities increased by 0.2 years between last quarter of 2012 and first quarter of 2013 to reach 5.9 years. This was driven by the corporate sector that saw this year’s issuance at longer maturities than usual. Public sector issuance, which includes sovereign bonds in addition to government-related entities, accounted for less than a quarter of all issuance, down from an average above 60 per cent over the last two years. Abdul Rahman Al Baker, executive director of Financial Institutions Supervision at the Central Bank of Bahrain, said 2013 saw a revival in the global sukuk markets due mainly to gradual recovery of global economy and investors’ sentiment, which drives the demand for sukuk. “It is clear that sukuk issuance in the first quarter of 2013 exceeded all expectations reaching a record of $35 billion globally, of which sovereign issuance accounted for 62 per cent while corporates took 23 and quasi-sovereign or government-related entities accounted for 15 per cent,” he said at a recent event in Bahrain.
	Palm Utilities’ profit soars 32 to Dh164m in 2012	Staff Report / 29 May 2013 Palm Utilities, a Dubai World company, has announced its financial results for the fiscal year 2012-2013, reporting a 32 per cent increase in net profits reaching Dh164 million in 2012 from Dh125 million in 2011. The company further achieved Dh621 million in revenue, up by 10 per cent year-on-year from the Dh564 million recorded in 2011. Marwan Al Naqi, CEO, Palm Utilities, said: “These excellent results are, by far, the highest for us, representing yet another record for the company since its establishment in Dubai. This truly reflects the ongoing economic recovery across all segments of the emirate.” “The tourism and real estate sectors have seen remarkable improvements in Dubai, with high occupancy rates in hotels, and residential and commercial units, even as the emirate reaffirms its position as one of the leading international business and tourism destinations,” Al Naqi added. “Moreover, the various cultural, marketing, recreational and sports events held in Dubai have played an effective role in attracting visitors to the emirate, in turn contributing to a 17 per cent increase in the demand for our services last year compared to 2011.” The double-digit revenue growth for Palm Utilities has been influenced by the solid gains achieved by Dubai’s economy, which has set new records in the tourism sector last year, having soared by 9.5 per cent over 2011 to surpass the threshold of 10 million visitors to the emirate in 2012. The UAE’s construction sector has also witnessed fast track growth in early 2012, buoyed by the 5 per cent increase of the emirate’s population to 2.1 million and the increased trust of investors, individuals and businesses to capitalize on integrated infrastructure and strategically located real estate developments. “Leveraging on quality systems, corporate performance, development and corporate excellence initiatives have helped us raise the bar of productivity and efficiency. This is clearly evident in the 7 per cent lower operating costs that have led to a higher profit margin. For our part, we remain committed to spreading the culture of quality and business excellence – two key drivers of sustainable and comprehensive development,” Al Naqi explained. “These positive results have prompted banks to reduce interest rates on the current loan, which will enable us to capitalize on the increased liquidity and ultimately boost the company’s financial performance and support our pursuit of sustained growth,” Al Naqi added.
	Le Meridien in Fujairah expects successful 2013	(Abdul Basit) / 13 May 2013 Le Meridien Al Aqah Beach Resort in Fujairah expects 2013 will be another successful year with high occupancy rate and a double-digit growth over last year, according to general manager Patrick Antaki. The property is located on a 230 metres stretch of a pristine beach and fronted by the Indian Ocean with the breath-taking Hajar Mountains forming the backdrop. “The first quarter was ahead of last year. If rest of the year is going to be like Q1then it’s going to be a great year,” Antaki told Khaleej Times in an interview. Occupancy is almost full, he said, adding: “We closed March with around 90 per cent [occupancy]. We will probably look at 10 to 12 per cent better 2013 than last year.” Tourists’ arrival in Fujairah is increasing significantly every year. In 2012, the emirate hosted 1.2 million tourists, compared to 750,000 in 2011. At the moment, Fujairah has 2,800 hotel rooms, he said, adding that extra 1,000 rooms are going to open in the next 12 months. He mentioned that there is a lot to see in Fujairah as the emirate is home to most of the country’s heritage sites. In addition to that the hotel provides a lot of sea-related activities every day. “We also want to diversify the guests experience and that’s the reason the hotel is starting to set up excursion with helidubai and also planning seaplane facility from Dubai to Fujairah,” he explained. In December last year, the hotel celebrated its 10th anniversary and this year the hotel will undergo with the first phase of refurbishment. “We will spend Dh50 million on refurbishment, which will start from next month. We will do 100 rooms this year and remaining in next summer.” The hotel is also pending money to provide seamless connectivity of tablets and smartphones to TVs, so the guest can see photos and watch movies from their own devices, he informed. Antaki, who is also general manager of Al Maha Desert Resort and Spa, said it’s a luxury property and despite high rates it’s doing very well.
	Current oil prices are fair	Issac John / 28 May 2013 Global crude oil prices are currently at a “fair and appropriate level” and pose no threat to economic growth, UAE Energy Minister Suhail bin Mohamed Faraj Fares Al Mazrouei said on Monday. The minister, before leaving for his first Opec meeting in Vienna on May 31, said the recent fall in prices was a short-term phenomenon that had nothing to do with market fundamentals. Al Mazrouie said the current price level still provided oil producers an incentive to press ahead with their ongoing investments to boost production capacity. He pointed out that the UAE is investing billions of dollars in development projects to raise oil output capacity to 3.5mbpd by 2017 from the current 2.8mbpd. “As for consumers, the current price level does not adversely affect economic recovery and growth in the future, therefore we see it as appropriate,” said Al Mazrouie told Wam. “What concerns us in the UAE is a balance in the supply and demand equation,” he said. Al Mazrouie said that the Opec currently produces 30.4 million bpd, slightly higher than its targeted output, but the figure reflected the persistent demand for Opec crudes. He noted that the world economy was improving and was projected to grow by 3.2 per cent. “It is likely that world oil demand will remain relatively weak during 2013, with an increase of nearly 800,000 bpd over 2012’s demand level. Demand for oil is expected to grow in 2014 if world economic growth persisted,” he added. Al Mazrouei, who was appointed oil minister in March, also said the UAE, which sits on 97.8 billion barrels of proven oil reserves, plans to produce 25 per cent of its power needs from nuclear energy by 2021. The UAE is building four nuclear plants that are expected to produce a total of 5,600MW. The Opec, which is meeting to decide on its crude production targets, this month raised its strongest concerns this year about the potential weakening of Chinese oil demand. The output decision has been given extra significance by the sharp slide in oil prices to below $100 a barrel last month — a level many members say is the minimum fair price for their exports. Opec members who account for 40 per cent of global oil supply will need to cut production to hit the official target of 30 million barrels a day. Total Opec output rose by 280,000 barrels a day in April to 30.46 million barrels a day. Annual nominal average world oil prices rose more than four-fold on average in the decade from 2002 from $25 a barrel to a record $111 a barrel in 2012. This year on average to date they are down, if only a little, and Brent was trading at just over $102 a barrel on Friday. An International Energy Agency report released earlier this month forecast US shale oil supply will help meet most of the world’s new demand in the next five years, leaving little room for the Opec to lift output without risking lower prices. The total oil and gas export earnings of the six-member GCC collectively increased to $737.5 billion in 2012 from $695.9 billion the previous year, according to the Institute for International Finance, or IIF. Saudi Arabia’s oil export earnings rose to around $351 billion last year from $326 billion in 2011, while the UAE’s income grew to nearly $124.7 billion from $119.2 billion in the same period. “It was the highest income from oil sales in the GCC’s history and more than double their oil revenue of nearly $305 billion in 2005,’ the Washington-based IIF said in a study. The report also showed higher earnings boosted the GCC’s current account surplus to about $375 billion in 2012 from $328 billion in 2011.