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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.

UAE growth quickens to 4.4percent in 2012

Reuters) / 20 May 2013

Economic growth in the UAE accelerated to 4.4 per cent in inflation-adjusted terms in 2012 from a downwardly revised 3.9 per cent the previous year as activity picked up across all sectors, its statistics office said on Sunday. 
“One of the most important factors is the role played by good and stable oil prices in general over the last year,” the National Bureau of Statistics in the Opec member said in a data commentary.
“All economic activities saw positive improvement in their growth rates in 2012, which has positively reflected on the value of the country’s GDP (gross domestic product),” it said.
Oil prices averaged $112 per barrel last year, up from $109 in 2011, the office said, adding that the non-oil sector share on the Gulf country’s real GDP was estimated at 67.3 per cent in 2012.

UAE tops GCC spend in home fit-outs market

Also estimated to be top regional spender on retail interior contracting
•	By Deena Kamel Yousef, Staff Reporter
Dubai: The UAE is expected to be the biggest spender in the GCC on home interiors and fit-outs, with an estimated $1.5 billion (Dh5.5 billion) budget in 2013 as the country’s residential market continues to grow.
Residential units worth approximately $13.9 billion are expected to be completed in the UAE this year, with interior contracting and fit-outs amounting to 11 per cent (or $1.5 billion) of the total project costs, according to a study by Ventures Middle East, released ahead of the International Design Exhibition (Index) and Office Exhibition that opens on Monday.
The UAE is also estimated to be the largest spender in the GCC on retail interior contracting and fit-outs this year with $266 million. Several retail outlets are slated for opening this year such as the Yas Mall in Yas Island, Abu Dhabi, the report said.
“The market had a difficult couple of years. But there’s no question now as we look around us of the growing activity in the UAE and GCC, whether hotels or residential complexes or office lots. There’s growth and the exhibition reflects that. More companies are taking this market seriously,” Bernard Welsh, founder of Index and senior business advisor at the organisers, dmg events, said in an interview.
In the GCC, spending on interiors is expected to increase 28 per cent to $9.2 billion in 2013 from $7.2 billion last year, the study showed.
KSA surpasses UAE
Saudi Arabia overtook the UAE in demand for interiors and fit-outs in the last quarter of 2012 and now has a 38 per cent share of the market compared to the UAE’s 36 per cent.
The 23rd edition of Index will feature 850 exhibitors from 45 countries while the Office Exhibition that showcases designs for the commercial sector will have 120 exhibitors from 20 countries, Welsh said.
About 75 per cent of the participating exhibitors are international and 25 per cent are UAE-based companies, he said.
The exhibition had “small growth” since last year because the previous show was held in September and was moved forward to May this year based on exhibitors’ request, he said. “Some companies could not come twice in six years, but still the show got a large number of exhibitors.”
In the GCC, hotel interiors and fit-outs spending will be worth $1.62 billion in 2013, up from $1.33 billion in 2012.
“There is a huge plan to promote tourism in Dubai with the vision of 20 million visitors by 2020. So, Dubai will need a huge number of new hotels. All of this will need good use of suppliers of interior products, there will be big demand,” Welsh said.
Commercial market
The expanding supply of commercial real estate in the GCC provided opportunities worth $1.15 billion for interiors development in 2012. This is likely to grow to $1.43 billion in 2013. The UAE was the largest commercial interiors and fit-outs market with a spend of $504 million in 2012. Saudi Arabia will surpass its $498 million spend in 2013 with $563 million this year.
“The commercial sector that was static for a number of years is on the move again,” Welsh added.
The show will run until Thursday at the Dubai World Trade Centre.

GCC projects spend ?$7.2 billion on interiors

(Staff Report) / 20 May 2013

A recent report has revealed that GCC projects spent over $7.2 billion on interiors and fit-outs in 2012 and expects that spending to increase by 28 per cent to $9.2 billion in 2013. 
The report by Ventures Middle East was released with findings from the Index International Design Exhibition and The Office Exhibition, the Middle East and North Africa’s largest and longest running interior design and fit out exhibition, which starts today.
The report included an analysis on the four pillars of the real estate sector – commercial, hospitality, residential and retail – and stated that interior spends now account for 10 to 20 per cent of the total costs of GCC projects.
The report also revealed that the Saudi demand for interiors and fit outs surpassed the UAE’s in the last quarter of 2012 and now has a share of 38 per cent on the back of heavy government spending, nudging ahead of the UAE’s 36 per cent. Kuwait and Qatar each have a market share of 16 per cent while Oman doubled spending to four per cent. Bahrain showed a decline in interiors and fit out spends with a negative growth rate of 10 per cent.
“As demand for interiors and fit outs mirrors project completions, refurbishments and tighter budgets were the trend during 2011 and 2012. Ideas such as better space management, flexibility and environmental sustainability in design and open plan layouts gained ground. The GCC interiors and fit outs market is now moving towards a more personality driven design trend as the market is coming back,” said Frederique Maurell, event director for Index 2013 and The Office Exhibition.

DWC plans construction of new warehouses

(Staff Report) / 19 May 2013

Dubai World Central (DWC), the world’s first purpose-built aerotropolis, has announced new developments at DWC’s Logistics District, including the start of construction on the fourth complex of agent warehouses. 
 Covering a total area of almost 8,700 square metres (sqm), with 5,443sqm for warehouses and 1,373sqm for office area, the new agent warehouses will be open for leasing in the first quarter of 2014. The development will include amenities catering to new and existing customers from different industries that want to expand their business activities in DWC.
DWC further announced that it is now developing a new logistics park within the Logistics District, comprising of warehouses, offices and amenities. The logistics park will be completed in the first quarter of 2015, offering a total built-up area of 34,000sqm while facilities will have a minimum area of 1,000sqm.
To improve the efficiency of the free zone operations, DWC also announced that it will be developing a fully dedicated customer inspection yard at gate 4, in conjunction with Dubai Customs. The new facility, which will include truck scanning machines, will enhance operations in the current customs inspection facility and is designed for both normal and temperature-controlled cargo.

Dubai businesses upbeat

(Staff Report) / 19 May 2013

A majority of businesses, especially small and medium enterprises (SMEs), in Dubai expects higher growth in revenues and profits for the second quarter of the year, a latest survey revealed on Saturday. 
The quarterly business confidence survey, conducted by the Department of Economic Development (DED), revealed robust expectations by Dubai business community.
While optimism runs across the whole economy, it is particularly high among SMEs and exporting firms as reflected in the composite Business Confidence Index (BCI), which stood at 113 points during March quarter of 2013.
The survey showed that 86 per cent of the businesses are upbeat on sales and profits and 98 per cent plan either to increase (23 per cent) or maintain (75) their employment count during the next quarter. Overall business expectations are on an upward trend with 91 per cent of firms reporting either improvement or stability in business conditions in second quarter of 2013.
“Economic activity in Dubai is on a firmer ground, especially with key sectors such as tourism, logistics and aviation flourishing and real estate on a recovery path. The services and retail sectors are also signalling strong growth, which reaffirms Dubai’s reputation as a resilient and vibrant economy,” DED director-general Sami Al Qamzi commented on the survey.
During the recently concluded Arabian Travel Market (ATM), this scribe talked to several Dubai-based hospitality and aviation related companies. All expressed their confidence in Dubai and bullishness for the whole year of 2013. Almost all top executives of the companies, Khaleej Times had a chance to talk, mentioned that they expected higher revenues and will continue to expand during the year.
Flydubai chief executive officer Ghaith Al Ghaith said the airline will continue to expand and expect higher revenues this year. “We have announced to open more than 10 new routes during the year and that will attract more revenues compared to last year,” Al Ghaith said.
The DED’s latest survey reveals robust expectations, with 55 per cent of businesses expecting higher sales revenues and another 30 per cent stable sales in second quarter. The revenue growth will continue to be driven by rising real business activity, as 80 per cent of respondents expect prices to remain largely stable.
With respect to sales volumes, 54 per cent forecast an increase during Q2 and as a result, 49 per cent of the firms are also planning to increase their purchase orders to ensure adequate stocks to meet the expected demand.  In terms of sectors, manufacturing businesses are most optimistic about sales and profits whereas service firms are most upbeat about new hires.
Within the trading sector, auto trading, computers, food and textile firms are relatively more optimistic.

News / French team arrives today to boost business

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25 June 2012

A delegation of 11 French companies is visiting Dubai and Qatar to seek new business opportunities and explore the two fast growing markets of the region.
Organised by the Chamber of Commerce and Industry of Seine-et- Marne in collaboration and coordination with UBI France agency and French Business Councils in the UAE and Qatar, the delegation, which is arriving in Dubai on Monday on a dour-day Gulf tour, seeks to develop partnerships and to get a better understanding of the market and identify potential business partners.
Fatma Yasar, head of the delegation from The Chamber of Commerce said: “The French infatuation with the Middle East is increasing. Therefore, the CCI of Seine-et- Marne has defined this business trip as priority.”
Isabelle Leroy, director of the French Business Council, Dubai and the Northern Emirates, said for each visiting company, the FBC has leveraged their network of French and local businesses in Dubai to set up meetings and networking opportunities with a variety of key players such as Du, Dnata, the Dubai Chamber of Commerce and Industry, Alcatel, Orange Business, Deloitte and more. We hope this visit will strengthen business collaboration between France and Dubai.”
François Sporrer, director of UBIFRANCE UAE-Qatar, said an increasing number of French companies has been returning to the UAE and Qatar since late 2011. “What is new and very interesting is that now the French Chambers of Commerce and Industry themselves rank the UAE and Qatar among their top priorities.”
Exports from France to the UAE rose to €3.5 billions while total trade between the two countries reached €14.3 billion by 2010.

News & Offers Archive

	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.
	UAE growth quickens to 4.4percent in 2012	Reuters) / 20 May 2013 Economic growth in the UAE accelerated to 4.4 per cent in inflation-adjusted terms in 2012 from a downwardly revised 3.9 per cent the previous year as activity picked up across all sectors, its statistics office said on Sunday. “One of the most important factors is the role played by good and stable oil prices in general over the last year,” the National Bureau of Statistics in the Opec member said in a data commentary. “All economic activities saw positive improvement in their growth rates in 2012, which has positively reflected on the value of the country’s GDP (gross domestic product),” it said. Oil prices averaged $112 per barrel last year, up from $109 in 2011, the office said, adding that the non-oil sector share on the Gulf country’s real GDP was estimated at 67.3 per cent in 2012.
	UAE tops GCC spend in home fit-outs market	Also estimated to be top regional spender on retail interior contracting • By Deena Kamel Yousef, Staff Reporter Dubai: The UAE is expected to be the biggest spender in the GCC on home interiors and fit-outs, with an estimated $1.5 billion (Dh5.5 billion) budget in 2013 as the country’s residential market continues to grow. Residential units worth approximately $13.9 billion are expected to be completed in the UAE this year, with interior contracting and fit-outs amounting to 11 per cent (or $1.5 billion) of the total project costs, according to a study by Ventures Middle East, released ahead of the International Design Exhibition (Index) and Office Exhibition that opens on Monday. The UAE is also estimated to be the largest spender in the GCC on retail interior contracting and fit-outs this year with $266 million. Several retail outlets are slated for opening this year such as the Yas Mall in Yas Island, Abu Dhabi, the report said. “The market had a difficult couple of years. But there’s no question now as we look around us of the growing activity in the UAE and GCC, whether hotels or residential complexes or office lots. There’s growth and the exhibition reflects that. More companies are taking this market seriously,” Bernard Welsh, founder of Index and senior business advisor at the organisers, dmg events, said in an interview. In the GCC, spending on interiors is expected to increase 28 per cent to $9.2 billion in 2013 from $7.2 billion last year, the study showed. KSA surpasses UAE Saudi Arabia overtook the UAE in demand for interiors and fit-outs in the last quarter of 2012 and now has a 38 per cent share of the market compared to the UAE’s 36 per cent. The 23rd edition of Index will feature 850 exhibitors from 45 countries while the Office Exhibition that showcases designs for the commercial sector will have 120 exhibitors from 20 countries, Welsh said. About 75 per cent of the participating exhibitors are international and 25 per cent are UAE-based companies, he said. The exhibition had “small growth” since last year because the previous show was held in September and was moved forward to May this year based on exhibitors’ request, he said. “Some companies could not come twice in six years, but still the show got a large number of exhibitors.” In the GCC, hotel interiors and fit-outs spending will be worth $1.62 billion in 2013, up from $1.33 billion in 2012. “There is a huge plan to promote tourism in Dubai with the vision of 20 million visitors by 2020. So, Dubai will need a huge number of new hotels. All of this will need good use of suppliers of interior products, there will be big demand,” Welsh said. Commercial market The expanding supply of commercial real estate in the GCC provided opportunities worth $1.15 billion for interiors development in 2012. This is likely to grow to $1.43 billion in 2013. The UAE was the largest commercial interiors and fit-outs market with a spend of $504 million in 2012. Saudi Arabia will surpass its $498 million spend in 2013 with $563 million this year. “The commercial sector that was static for a number of years is on the move again,” Welsh added. The show will run until Thursday at the Dubai World Trade Centre.
	GCC projects spend ?$7.2 billion on interiors	(Staff Report) / 20 May 2013 A recent report has revealed that GCC projects spent over $7.2 billion on interiors and fit-outs in 2012 and expects that spending to increase by 28 per cent to $9.2 billion in 2013. The report by Ventures Middle East was released with findings from the Index International Design Exhibition and The Office Exhibition, the Middle East and North Africa’s largest and longest running interior design and fit out exhibition, which starts today. The report included an analysis on the four pillars of the real estate sector – commercial, hospitality, residential and retail – and stated that interior spends now account for 10 to 20 per cent of the total costs of GCC projects. The report also revealed that the Saudi demand for interiors and fit outs surpassed the UAE’s in the last quarter of 2012 and now has a share of 38 per cent on the back of heavy government spending, nudging ahead of the UAE’s 36 per cent. Kuwait and Qatar each have a market share of 16 per cent while Oman doubled spending to four per cent. Bahrain showed a decline in interiors and fit out spends with a negative growth rate of 10 per cent. “As demand for interiors and fit outs mirrors project completions, refurbishments and tighter budgets were the trend during 2011 and 2012. Ideas such as better space management, flexibility and environmental sustainability in design and open plan layouts gained ground. The GCC interiors and fit outs market is now moving towards a more personality driven design trend as the market is coming back,” said Frederique Maurell, event director for Index 2013 and The Office Exhibition.
	DWC plans construction of new warehouses	(Staff Report) / 19 May 2013 Dubai World Central (DWC), the world’s first purpose-built aerotropolis, has announced new developments at DWC’s Logistics District, including the start of construction on the fourth complex of agent warehouses. Covering a total area of almost 8,700 square metres (sqm), with 5,443sqm for warehouses and 1,373sqm for office area, the new agent warehouses will be open for leasing in the first quarter of 2014. The development will include amenities catering to new and existing customers from different industries that want to expand their business activities in DWC. DWC further announced that it is now developing a new logistics park within the Logistics District, comprising of warehouses, offices and amenities. The logistics park will be completed in the first quarter of 2015, offering a total built-up area of 34,000sqm while facilities will have a minimum area of 1,000sqm. To improve the efficiency of the free zone operations, DWC also announced that it will be developing a fully dedicated customer inspection yard at gate 4, in conjunction with Dubai Customs. The new facility, which will include truck scanning machines, will enhance operations in the current customs inspection facility and is designed for both normal and temperature-controlled cargo.
	Dubai businesses upbeat	(Staff Report) / 19 May 2013 A majority of businesses, especially small and medium enterprises (SMEs), in Dubai expects higher growth in revenues and profits for the second quarter of the year, a latest survey revealed on Saturday. The quarterly business confidence survey, conducted by the Department of Economic Development (DED), revealed robust expectations by Dubai business community. While optimism runs across the whole economy, it is particularly high among SMEs and exporting firms as reflected in the composite Business Confidence Index (BCI), which stood at 113 points during March quarter of 2013. The survey showed that 86 per cent of the businesses are upbeat on sales and profits and 98 per cent plan either to increase (23 per cent) or maintain (75) their employment count during the next quarter. Overall business expectations are on an upward trend with 91 per cent of firms reporting either improvement or stability in business conditions in second quarter of 2013. “Economic activity in Dubai is on a firmer ground, especially with key sectors such as tourism, logistics and aviation flourishing and real estate on a recovery path. The services and retail sectors are also signalling strong growth, which reaffirms Dubai’s reputation as a resilient and vibrant economy,” DED director-general Sami Al Qamzi commented on the survey. During the recently concluded Arabian Travel Market (ATM), this scribe talked to several Dubai-based hospitality and aviation related companies. All expressed their confidence in Dubai and bullishness for the whole year of 2013. Almost all top executives of the companies, Khaleej Times had a chance to talk, mentioned that they expected higher revenues and will continue to expand during the year. Flydubai chief executive officer Ghaith Al Ghaith said the airline will continue to expand and expect higher revenues this year. “We have announced to open more than 10 new routes during the year and that will attract more revenues compared to last year,” Al Ghaith said. The DED’s latest survey reveals robust expectations, with 55 per cent of businesses expecting higher sales revenues and another 30 per cent stable sales in second quarter. The revenue growth will continue to be driven by rising real business activity, as 80 per cent of respondents expect prices to remain largely stable. With respect to sales volumes, 54 per cent forecast an increase during Q2 and as a result, 49 per cent of the firms are also planning to increase their purchase orders to ensure adequate stocks to meet the expected demand. In terms of sectors, manufacturing businesses are most optimistic about sales and profits whereas service firms are most upbeat about new hires. Within the trading sector, auto trading, computers, food and textile firms are relatively more optimistic.
	Al Gharbia taps into ?non-oil sector for growth	(Staff Report) / 19 May 2013 The Western Region Development Council (WRDC), the central coordinating body leading development and promoting opportunity in Al Gharbia, the Western Region of Abu Dhabi, has defined a number of key non-oil sectors to drive economic growth and development in the region. The step is in line with the council’s efforts in promoting economic diversification due to Al Gharbia’s current reliance on the oil and gas sector that includes a number of oil related projects with the most prominent being UAE’s peaceful civil nuclear energy program in Barakah. Today, the development council strives to support and help develop different sectors such as the tourism sector whereby, tourism is projected to account for 5.2 per cent of Al Gharbia’s gross domestic product, or GDP, compared to only 1.3 per cent in 2010. It is worth mentioning that nuclear power reactors in Barakah are aimed at generating 25 per cent of power needs from nuclear energy by 2020 for the Emirate. This is in addition to producing seven per cent of Al Gharbia’s electricity needs from renewable sources (solar and wind) by 2020. Residential projects are seen as a priority area for investment in Al Gharbia due to the noticeable rise in demand for residential units that has reached 15,000 units. Moreover, it is anticipated that the demand for commercial and retail spaces will also be on the rise and is estimated to reach 140,000 square metres. Meanwhile, the hospitality and leisure sector is considered to be a potential sector for investment as well, required to cater to the demand for 680 hotel rooms and serviced apartments.
	SKAI Holdings plans $1b hotel in Palm Jumeirah	Staff Report / 16 May 2013 SKAI Holdings, the Dubai-based real estate investment firm, on Wednesday announced its plans for a new $1 billion hotel and furnished residences project on the Palm Jumeirah that will be completed in the next three years. The development will be operated by Viceroy Hotel and Resorts, marking the company’s first venture into Dubai and its second in the UAE alongside sister property Yas Viceroy Abu Dhabi. Located on ultimate beachfront property in one of the world’s most desirable destinations, the Viceroy Dubai Palm Jumeirah is owned by SKAI Holdings. Construction has begun, with completion and grand opening slated for the last quarter of 2016. Viceroy Dubai Palm Jumeirah will offer its guests 481 large rooms and suites, and 221 signature Viceroy Residences all with breathtaking views of the Arabian Sea made possible by innovative architecture and design. The property’s attractive location is situated at the base trunk of The Palm Jumeirah archipelago, making it easily accessible from the mainland of Dubai. The location is ideal being only 12 minutes from Downtown Dubai — a key business and tourist destination in the heart of the city — and five minutes from Mall of the Emirates, another key tourist destination in Dubai. It is also five minutes away from other business and tourist attractions such as the Dubai Marina and Dubai Media City. Kabir Mulchandani, chief executive officer, SKAI Holdings, said: “Viceroy Dubai Palm Jumeirah will offer the best of all worlds. It is a luxury urban beach resort in the heart of Dubai. It is a family retreat as well as an exciting entertainment destination and its exceptional banqueting and business facilities make it ideal for corporate use. The property will be everything for everyone.” Nadia Zaal, chief executive officer of Zaya Dubai, and driving force behind Al Barari and luxury development Nurai Island, commented on her company’s reputation for luxury, quality and style, “people want it all and with this project, we intend to deliver. With our previous projects we developed a reputation for unsurpassed quality and Viceroy will truly redefine the idea of an urban destination. It will combine a refined and luxurious environment, with all of the amenities that are vital to a property of this type.”
	Emirates and JetBlue widen codesharing	Issac John / 16 May 2013 Emirates, one of the world’s fastest growing airlines, and JetBlue Airways, New York’s hometown airline, announced on Wednesday a move to expand their current partnership to include bilateral code-sharing. The expansion is pending regulatory approval and subject to receipt of foreign government operating authority, both carriers announced. Emirates’ move to boost ties with JetBlue was close on the heels of a decision by the New Zealand Minister for Transport to approve the Dubai-based carrier’s partnership with Qantas. Under the new agreement with JetBlue, the US carrier would place its “B6” airline code on all flights currently operated by Emirates between the US and Dubai International Airport, as well as between New York’s John F. Kennedy International Airport and Milan. The expansion move is the latest step in a three-year partnership between JetBlue and Emirates. Emirates started placing its code on select JetBlue-operated flights in April 2012, expanding an interline agreement that dates back to 2010. Current codeshare routes offered by Emirates on JetBlue-operated flights cover 28 destinations including Boston, Chicago, Orlando and Puerto Rico. Since March this year, Emirates also began placing its code on additional JetBlue routes, including Bridgetown, Barbados, Cancun, Mexico, Montego Bay, Jamaica and Santo Domingo, Santiago and Punta Cana, Dominican Republic. “Through the existing agreement, customers enjoy the convenience of a single combined ticket for Emirates and JetBlue-operated flights, plus other benefits including one-stop check-in and baggage transfer,” the airlines said in a statement. Members of Skywards, the Emirates reward programme, can earn miles on JetBlue-operated flights and also redeem miles for flights to any of JetBlue’s 77 destinations throughout the Americas. Similarly, members of JetBlue’s TrueBlue loyalty programme can earn points for Emirates-operated flights worldwide. “As Emirates continues to expand its presence in the US market, our partnership offering with JetBlue provides customers with convenient connections from its extensive network to our seven US gateways, including our twice daily A380 service non-stop from JFK to Dubai,” said Thierry Antinori, Emirates’ executive vice-president of passenger sales worldwide. Offering a boost to tourism and more convenience for inbound travellers, the codeshare also gives Emirates’ customers a new choice of destinations with the benefit of a single combined ticket, according to Antinori. “Putting our code on another airline is a significant milestone for JetBlue; we’re proud to do it with Emirates, a fantastic partner for JetBlue over the past years,” said Robin Hayes, JetBlue’s chief commercial officer. Passengers travelling in first class and business class on Emirates-operated flights, as well as Skywards Platinum and Gold members, have access to the Emirates Lounge at JFK. Premium passengers, including Gold and Platinum Skywards members, will also have access to lounges at the other Emirates gateways, including the dedicated Emirates’ lounge in San Francisco. Welcoming the decision by New Zealand to approve Emirate-Qantas tie-up, the two allies said their partnership would provide New Zealand customers with stronger links to Australia, Europe, the Middle East, North Africa and the UK, as well as frequent flyer benefits and world-class travel experiences. Qantas and Emirates applied for authorisation of the partnership in September 2012 under the Civil Aviation Act. President of Emirates Tim Clark, said the game-changing partnership would bring together two of the world’s best airlines and offers some of the highest quality travel experiences.
	HSBC set to cut 14,000 more jobs	Issac John / 16 May 2013 HSBC Holdings, Europe’s largest bank, said on Wednesday that it would further cut its global headcount by 14,000 to as low as 240,000 by 2016 in a bid to save an additional $3 billion. Stuart Gulliver, chief executive of HSBC, said the bank had already achieved annual cost savings of $4 billion since he took the helm in 2011 when the lender’s global workforce stood close to 300,000. HSBC has cut 34,000 full-time jobs since 2010 and at the end of last year the bank employed 261,000 staff. This is expected to fall to 254,000 as part of the on-going cuts. Over the next three years, the bank aims to further reduce the headcount to 240,000. The impact of the culling on the bank’s Middle East workforce is not clear yet as HSBC spokespeople declined to make any comments. According to available data, HSBC has close to 9,000-strong workforce in Mena region. In 2011, as part of similar worldwide cut, the bank laid off 360 of its employees in the region. HSBC Middle East, the bank’s regional arm, reported profits before tax of $524 million for the first quarter 2013 as the bank’s global business profits before tax surged to $8.4 billion. In line with cost cuts, HSBC has sold off 52 businesses, helping it reduce its risk weighted assets by about $95 billion. These sales have also resulted in gains of $8 billion for the bank. Last year, the bank entered into a deferred prosecution agreement with the US department of justice and paid a record £1.2 billion fine for money-laundering offences and set aside €1.77 billion for compensation payments after the mis-selling of financial products in Britain. “We will continue to exert tight cost discipline whilst streamlining processes and procedures. This enables us to invest in growth and global standards,” said Gulliver. “You’re getting cost cuts as a means of sustaining performance and that’s not a great sign,” said Simon Maughan, an analyst at Olivetree Securities Ltd in London. “What HSBC is showing you is that there is very little growth in the banking industry for years to come.” The shares were little changed at 746.9 pence at 10:42 a.m. in London. HSBC has gained 15 per cent this year in London trading. While HSBC has met its original cost savings target, it hasn’t met its goal to reduce costs as a percentage of revenue because income hasn’t grown, Gulliver said. The bank said it would seek to reduce costs to about 55 percent of revenue in 2014-2016. That compares with a target of 48 per cent to 52 per cent for the previous three-year period. It plans to eliminate $2 billion to $3 billion of costs. The additional job cuts will be global and not focused on any particular area of the business, Gulliver said.
	UAE’s GDP to top $395b this year	Construction, real estate and services sectors seen driving growth, econony minister says • By Himendra Mohan Kumar, Staff Reporter Abu Dhabi: The UAE’s gross domestic product (GDP) will touch $395 billion (Dh1.45 trillion) this year, before growing further to $410 billion next year, Sultan Bin Saeed Al Mansouri, the Minister of Economy, said in his keynote address on Tuesday at the 6th Annual Arabian World Construction Summit in the capital. Al Mansouri said the country’s GDP has grown more than 200 times since 1971 — from $1.77 billion to $360 billion in 2012. “Today, the UAE is a major contributor to the growth of the Middle East region. An IIF [Institute for International Finance] report shows that the UAE economy accounted for more than a quarter of the GCC’s GDP of $1.482 trillion in 2012,” the economy minister said. “It is a matter of great satisfaction that the UAE construction industry is on the growth path once again after recovering from the slowdown experienced during the global financial crisis. We are extremely optimistic that this vital sector will show sustainable growth in the coming years.” Quoting a Dubai Chamber of Commerce and Industry study, Al Mansouri said the contribution of the construction sector as a percentage of GDP topped 10.3 per cent in 2011 and is projected to reach 11.1 per cent in 2015 and 11.5 per cent by 2021. Al Mansouri said huge spending on public projects in Abu Dhabi and the constant growth in the services sector in Dubai will enhance economic growth, especially amid the recovery being experienced in the construction and real estate sectors. The UAE’s policy of economic diversification, focused on high-tech industry, logistics, ports, tourism, financial services, health, education and media, has created immense opportunities for the construction industry, he added. “There are major possibilities before us as we increasingly focus on private sector-led economic expansion,” Al Mansouri said, adding that the UAE’s ability to attract large overseas investments, notably in the construction industry, has also raised the country’s status as a source of funding for the global economy. He said major projects such as the Mohammad Bin Rashid City in Dubai and major infrastructure projects in Abu Dhabi will create a new momentum in the nation’s construction sector and take it through a phenomenal phase of growth in the coming years. “We are also hopeful about winning the bid to host World Expo 2020 which, I am sure, will be a game-changer for the construction industry,” Al Mansouri added.
	Dubai Q1 trade hits Dh326b	Issac John / 15 May 2013 Dubai’s non-oil trade hit Dh325.5 billion in the first quarter, up 16 per cent from Dh280 billion recorded in the same 2012 period, according to Dubai Customs. Ahmed Butti Ahmed, director-general of Dubai Customs, said on Tuesday the growth — despite a setback in trade with Iran, Dubai’s traditional re-export stronghold — would sustain the momentum amid an upturn in property sector. “The main thing now is that growth in real estate started picking up. With real estate developments there are many sectors that also start picking up,” Ahmed was quoted as saying on the sidelines of the opening of 2013 World Customs Organisation, or WCO, IT Conference and Exhibition. His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, inaugurated the three-day event in the presence of General Shaikh Saif bin Zayed Al Nahyan, Deputy Prime Minister of the UAE and Interior Minister; Shaikh Maktoum bin Mohammed bin Rashid Al Maktoum; Deputy Ruler of Dubai, Shaikh Majid bin Mohammed bin Rashid Al Maktoum, Chairman of the Dubai Culture and Arts Authority; Mohammed Ibrahim Al Shaibani, Director-General of the Dubai Ruler’s Court; and Kunio Mikuriya, Secretary-General of the WCO. In 2012, driven by a big surge in exports, Dubai’s non-oil foreign trade jumped 13 per cent to Dh1.235 trillion compared with Dh1.089 trillion in 2011. Dubai’s exports recorded a 47 per cent surge in value to reach Dh163 billion, imports rose 12 per cent to Dh737 billion and re-exports grew five per cent to Dh334 billion in 2012. The customs chief said a lot of investors were investing in real business as they get a better return on their money. Non-oil business activity in the UAE, the world’s No. 3 crude exporter, has been holding up well in recent months. But growth in new export orders dropped sharply in April, a purchasing managers survey showed this month. In his keynote speech, Shaikh Saif said the UAE was committed to the facilitation of cross-border trade and enhancing communication between various stakeholders to elevate the trading sector. “The UAE is proud to host this landmark forum that aims to increase international cooperation and coordination, which are crucial imperatives if we are to advance global trade and tourism,” he said. He said the adoption of communications technology is the key enabler for every customs departments to achieve its goals of trade facilitation and security. “The UAE’s success as a hub for global trade and tourism is also a testimony to the implementation of an effective customs strategy matched by effective solutions,” said Shaikh Saif. More than 1,000 local, regional and international dignitaries, including specialists in customs, security technologies and information technology from more than 100 countries are taking part in the event. Welcoming the gathering, Ahmed said the conference would prove favourable for the vibrant exchange of ideas and experiences from around the world for setting up a new global system for coordinated border management. “It is vital that we take international collaboration in this area to a new level, which speaks to the objectives of the WCO and serves the interests of the international community at the same time.” Mikuriya said the theme of the conference was very appropriate as connectivity at borders was integral to the vision and mission of the WCO. “It is aligned to the organisation’s 2013 slogan, ‘Borders divide, customs connect’. Such an effective network of connectivity between trading countries can be accomplished through positive engagement that will enhance trust and understanding between all stakeholders. Moreover, the adoption of new and innovative techniques is also a major facilitator towards greater cross-border coordination and cooperation,” said Mikuriya. “We are united by a common goal, which is to increase cooperation. This will, in turn, stimulate the global supply chain and help improve the security of all our borders. The outcomes will benefit the world economy by promoting commercial development, competiveness and employment. Implementation of the ‘single-window’ concept at borders, in particular, can greatly enhance collaboration between several stakeholders who work together at the borders — customs authorities, government organisations, trading entities and service providers.” The conference sessions will feature more than 70 speakers. Organised by Dubai Customs, the event features three panel discussions, three lectures and three specialised technical seminars. Discussions will focus on ways to facilitate legitimate trade to protect the security of borders, ports and customs coordination between countries. Related topics such as customs inspection, control systems, technical solutions and customs partner activities in trade, transport and logistics supply services will also be examined. — issacjohn@khaleejtimes.com — With inputs from Reuters
	Dubai Airport world’s busiest, data confirms	Dubai International Airport has won the crown of being the world’s busiest airport for international traffic for the first time. Previously, London Heathrow was enjoying that title. Since the beginning of 2013, Dubai has been performing better than Heathrow, according to monthly data released by both airports. Dubai was on top when the latest figures published by Airports Council International, or ACI, were released last month. ACI released January figures that showed Dubai recorded 5.53 million passengers, while London Heathrow witnessed 4.86 million during the same period. Dubai International and London Heathrow have published their first-quarter results on their respective websites, showing that Dubai is leading with 16.5 million passengers while Heathrow reported 16 million for the same period. Dubai had more than 15 per cent growth during the January-to-March quarter compared to same period last year, while London Heathrow reported a less-than-two per cent growth. The rapid pace of double-digit annual traffic growth at Dubai International contrasted with the much slower pace seen at a constrained and congested Heathrow, meaning it was only a question of “when” Heathrow would be pushed to second place, according to a senior aviation analyst. “Looking at the first-quarter traffic results, you have to factor in that large parts of the UK were hit with very bad winter weather, causing flight delays and disruption. So on a short-term level, you can see why Dubai has edged out Heathrow for this quarter,” Saj Ahmad, chief analyst at London-based StrategicAero Research, told Khaleej Times. But on a longer term level — even removing weather-related impacts — the fact remains that Dubai International is on track not just to surpass the 65-million passenger target set for 2013, but it will also displace Heathrow as the world’s most busiest international airport with full-year results. Since the start of the year, Dubai International has moved up two positions in the global rankings. Dubai reported 5.8 million passengers for the month of March — the fourth consecutive year the airport witnessed more than five million passengers. Last month, Dubai Airports chief executive officer Paul Griffiths said: “It is extremely gratifying to see Dubai International leap up two places in the international passenger rankings in a single year. It is a clear signal that more people are choosing Dubai as their preferred hub not only for its extensive global network but the superb facilities on the ground too.” “Given our surging growth rate and London Heathrow’s capacity constraints, we are well-placed to overtake them as the world’s busiest airport for international traffic by 2015,” Griffiths said in a statement on March 28.
	Bechtel eyes wider role for itself in region	Bechtel has bid for project management contract at Etihad Rail • By Himendra Mohan Kumar, Staff Reporter Abu Dhabi: Bechtel, a global engineering, project management and construction company, is eyeing a bigger role for itself in the Middle East and on the African continent and is submitting a bid for EPC contract at the Riyadh Metro project, a senior company executive said on Monday. “We have also bid for the project management contract at Etihad Rail in the UAE and will probably show an interest to bid for the Abu Dhabi Metro project for which an industry consultation project is currently on,” Amjad Bangash, managing director of Bechtel’s global rail business told reporters at a news briefing in the capital. The Riyadh Metro project, which is estimated to cost about $8 billion will incorporate six main routes covering a total length of about 175 kilometres. It will form the backbone of the public transport system in Riyadh, covering densely populated areas in the city centre, government facilities, commercial centres and link to King Khalid International Airport, King Abdullah financial districts and major universities. It will relieve pressure on the roads and also ease traffic congestion, especially during peak hours. Bangash said Bechtel will establish a global centre of engineering excellence in the UAE initially focusing on rail and marine engineering projects. “Rail and port infrastructure go hand-in-hand and are the lifeline for transporting goods around the world from major petrochemical, power, and mining facilities,” said Bangash. “The global demand for rail and port infrastructure will increase substantially during the course of the next 10-15 years. This centre provides customers around the world with a comprehensive solution for a successful project right from the start.” The centre will draw upon Bechtel’s global experience and expertise in the design and construction of railways and ports, and will offer services from master planning studies through to engineering execution. Bechtel has been involved with more than 80 port and marine projects around the world, including Khalifa Port and Kizad in Abu Dhabi. Bechtel operates through five global business units that specialise in civil infrastructure; power generation, communications, and transmission; mining and metals; oil, natural gas, and chemicals; and government services.
	DIB rises on restructuring progress	(UAE STOCK MARKETS) / 14 May 2013 Dubai Islamic Bank gained the most in more than a week as progress on corporate debt restructuring boosts the outlook of lenders in the emirate. Dubai Islamic added 2.4 per cent, the biggest advance since May 5, to Dh2.94. The stock was the most-heavily traded on the benchmark DFM General Index, while Commercial Bank of Dubai, the biggest gainer in per centage terms, jumped 14 per cent to the highest since November 2008. Share-trading volume of the bank, known as CBD, was five times the three-month daily average as 12 trades were executed, data compiled by Bloomberg show. Lenders in the UAE are advancing after Dubai Group LLC, agreed this month on final terms to restructure $6 billion of debt with its main creditors. Shares of Emirates NBD, one of the biggest lenders to Dubai Group, have almost doubled in value this year to Dh5.35 on Monday. The Dubai index, the world’s second-best performer this quarter among 94 indexes tracked by Bloomberg, climbed 0.5 per cent. “Investors are playing catch up with Abu Dhabi banks and seem to believe that banks in the UAE shouldn’t be trading below book value after the improving macro picture and the debt restructuring,” said Fadi Al Said, senior fund manager at ING Investment Management in Dubai. New terms Shares of Dubai Islamic, the biggest Shariah-compliant lender in the UAE, trade at a price-to-book value of 0.85 times, compared with 1.4 times for Abu Dhabi’s ADX Banks Index and the Bloomberg GCC 200 Financial Index, data compiled by Bloomberg show. Emirates NBD’s price-to-book value is 0.83 times. CBD, which hired banks last week for a possible bond sale, trades at a multiple of 1.3. Dubai Group said on May 9 that after the completion of the restructuring, claims of bank creditors will rank above those of related parties, who are owed an additional $4 billion. Islamic mortgage provider Amlak Finance is also proposing to extend the maturity on more than $2 billion of loans to creditors, two people familiar with the plan said. Dubai’s economy is set to expand 4.6 per cent, on average, between 2012 and 2015, more than twice as fast as in the prior four years, government forecasts show. ?— BloombergEmirates NBD launches ‘Rewards Beyond’ programme for SMEs
	GCC foreign assets to hit $2.5t	Issac John / 14 May 2013 Economic growth in the GCC is poised to moderate, but net foreign assets of the six-member bloc are projected to exceed $2.5 trillion by the end of 2013, the Institute of International Finance, IIF, said on Monday. The IIF, the leading global association of financial services firms with more than 470 member institutions, said after registering an average growth of 5.8 per cent in 2012, GCC growth is projected to moderate to 3.8 per cent in 2013 due to flattening oil production. With a projected decline in crude output, the consolidated external current account surplus for the GCC is likely to decline from a peak of $389 billion in 2012 to $334 billion in 2013, “but still leading to a sizeable accumulation of foreign assets, which could rise to around $2.5 trillion by year-end”, the IIF said in its GCC report. The growth of the non-hydrocarbon sector, more representative of economic activity, is forecast to stay robust at around five per cent this year. Dr George T. Abed, IIF senior counselor and IIF director for Africa and the Middle East, said GCC countries have pressed ahead with economic diversification as the share of the hydrocarbon ratio has continued to decline, from 41 percent in 2000 to 27 per cent most recently. “Growth has been driven by rising public sector spending, especially on physical and social infrastructure, and buoyant private sector activity. However, to sustain this momentum as the share of the hydrocarbon sector continues to decline, structural reforms need to be deepened and sustained,” he said. Dr Abed observed that banks in the GCC, especially the large, well-established institutions that account for the bulk of bank assets in the region, have generally maintained strong capital and liquidity positions. “The rise in provisions is tapering off and NPLs [non-performing loans] have begun to trend downwards,” he said. The IIF expects average oil prices to be $108 per barrel this year. Dr Garbis Iradian, IIF deputy director for the Africa and Middle East Department and principal author of the report, said growth in the UAE is expected to moderate to 3.6 per cent in 2013 from 4.8 per cent in 2012, due to much smaller increase in crude oil production. “Non-hydrocarbon growth, however, is forecast to accelerate slightly to 4.5 per cent in 2013, driven by higher government capital spending in Abu Dhabi and continued robust growth in trade, tourism and transportation in Dubai,” Dr Iradian said. He noted that the adverse impact of a drop in oil price on the UAE will be limited, given its diversified economy and lower breakeven oil prices. Dr Iradian cautioned that the Dubai debt episode has left markets with some concerns that the lessons of the past may not have been fully absorbed, and that efforts should continue to focus on strengthening the balance sheets of government related entities. The IIF report signals that the main downside risk to the GCC outlook stems from the possibility of much lower oil prices for a sustained period of time. The report presents forecasts of key macroeconomic indicators based on two oil scenarios: a baseline scenario with oil prices stable at $108 a barrel through 2020; and an alternative scenario which assumes a drop in oil prices to $85 per barrel starting in 2014 and lasting through 2020.
	New land fee law	(Wam) / 13 May 2013 His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in his capacity as Ruler of Dubai, has issued law No. (2) for 2013 amending law No. (7) for 1997 on land registration fees. The new law set registration fee for a storehouse sale contract at Dh10 for each square metre of the land area in which the facility was built, provided that the fee should not be less than Dh10,000. The revised fee is lower than the previous rate of two per cent of the contract of sale. Sultan Butti bin Mejren, director-general of the Government of Dubai’s Land Department, said the new fee will have positive impact on the industrial sector in Dubai as the new move will significantly contribute to support SMEs, encourage industrial investment and attract industrial companies to the emirate.
	New DED licences up	(Staff Report) / 13 May 2013 Dubai continued to record a rising trend in new licences issued during the first quarter of the year on increased activity in the emirate’s key economic sectors. During the March quarter, the Department of Economic Development, or DED, issued 4,582 business licences, four per cent higher than the 4,414 licences issued during the same period in 2012. The professional sector, at 24 per cent, accounted for the major share of licences during the period, followed by the commercial and industrial sectors. “Confidence in Dubai is on an upswing with the emirate emphasising on overall competitiveness and sustained investment in infrastructure. While existing businesses in Dubai are venturing further out and spreading their wings, a growing number of investors are also sensing the ideal conditions to step forward,” said Saeed Matar Al Marri, deputy chief executive officer of the DED’s Business Registration and Licencing sector. The total number of amended licences was 18,977, up six per cent from 17,843 in the first quarter of 2012, while the total number of renewed licences grew four per cent to 28,323, against 27,247 during the same period in the previous year. The total number of transactions rose seven per cent to 158,588 in the first quarter of 2013 from 147,770 in the same period last year. The total number of commercial permits issued in the quarter was 8,305, up seven per cent, while the total number of reserved trade names reached 18,601, a five per cent increase from 17,738. The total number of commercial activities licenced 11,461, with general trade leading the list of the top 10 licenced activities with 619 licences, followed by dyes and paints (301), tiling of floors and walls (301), carpentry and flooring (295), readymade garments (288), sanitary extensions and wares (276), installation of ventilation, air purification and air conditioning systems (270), installation of suspended ceilings and light cut-outs (269), perfumes and cosmetics (257) and gifts (237). The number of professional activities licenced in the quarter reached 2,925. Special-purpose facilities activity led the list of the top 10 licenced activities in this category with 236 licences, followed by restaurants (152), cleaning services for buildings and residences (151), cafes (89), business services (69), beauty and personal care centres for women (57), women’s salons (55), transactions follow-up services (52), consultations and administrative studies (50) and extensions repair, sanitary wares and plumbing (48). In the tourism sector, inbound tourism was the leader with 39 licences, followed by travel and tourism agencies (seven), foreign tour operators (four), hotels (two) and air charter service agents, motels and hotel apartments with one each. In the industrial activities segment, blacksmith and welding led the list of licenced activities, followed by metal works for buildings, turning workshops, wooden interiors supplies, metal parts for construction, roasting, salting and packaging nuts; ice creams, packaging of spices and seasonings; wooden windows and doors; and napkins.
	New format for expansion	Muzaffar Rizvi (INTERVIEW) / 12 May 2013 Marks Spencer Al-Futtaim plans to expand its operations in Middle East by rolling out its new store format in the region as the retail sector posts a strong recovery in the wake of positive signs on the economic front, its top official said. The major British multinational retailer, popularly known as MS and which has a long-standing franchise agreement with Al-Futtaim in the region, launched its first concept store at Mirdif City Centre to complement its planned expansion in the Middle East. Starting with Bahrain by the end of May, it will introduce the concept stores in other Middle East states later this year. “With the opening of Mirdif City Centre, we now have 10 stores across the UAE — six in Dubai, three in Abu Dhabi and one in Al Ain. In addition, we will be opening two more stores before the end of the year — one in Al Ghurair Centre in Dubai and the second in Manar Mall in Ras Al Khaimah,” Mark Senior, head of operations at MS Al-Futtaim, told Khaleej Times in an interview. Marks and Spencer’s UAE managing director John Cooper and Emirati sales associate Badriya Hassan Abdulla Ali inaugurated the MS Mirdif outlet last week. With the opening of two more stores in 2013, Marks Spencer Al-Futtaim will have 12 stores in the UAE. “The UAE is a key strategic market for us and it is our intention to continue to explore opportunities to roll out further new concept stores as suitable property becomes available,” Senior said. The retail chain, which is known for high-quality fashion, award-winning food and stylish homeware, introduced the new store format in 2012 and has proved a huge success in providing a visually stunning shopping experience whilst improving customer navigation and brand awareness. The new format includes better product segmentation according to local demographics and stronger emphasis on sub-brands such as its Autograph and Indigo collection. Distinctive MS brands, prominent standalone sections with clearer signage and unique branding are other key features of new store. Middle East expansion Senior said MS is well-prepared to introduce new concept stores in the region. The retailer will increase its store tally to 26 this year from 18 as it has plans to launch eight outlets in 2013. “MS Al-Futtaim continues to go from strength to strength. With the opening of Mirdif City Centre we have now 20 stores across the region which will rise to 26 by year-end. With the opening of our first store in Jordan — at Taj lifestyle mall in Amman — followed by our opening in Lebanon this year, we will operate across eight countries,” he said. “It is our intention to continue to drive the expansion of the MS brand across the GCC and Middle East. In 2013 alone, we will open eight new stores, including our first store in Jordan which opened in January of this year. “We will be opening a second store in Jordan before the year end. This will be a 2,000sqm store offering a full range of fashion to our customers,” he said. Senior said the opening of the brand-new, 1,400sqm MS store at Mirdiff City Centre in Dubai will be followed by another new store in Bahrain City Centre by the end of May. “We also plan two more stores in the UAE later in the year. Following this, we will open our fourth store in Egypt in Cairo Festival City. This will be a 3,500sqm flagship store over two floors,” he said. He said another “exciting” development is the entry into Lebanon for the first time with a new store in Beirut City Centre. “And finally, we are looking to open before year-end another brand new flagship concept in Kuwait. In addition to this, we are constantly reviewing our existing stores and identifying opportunities to refit to the latest standard. For example, our existing store in Bahrain’s Seef Mall will be totally refitted to the new concept before the end of the year,” he said. In reply to a question about investment in expansion, he said: “As per Al-Futtaim company policy, we are unable to disclose specific financial commitments, however, with eight new stores and a number of refits planned for 2013 it is clear that we continue to invest heavily in the development of the MS brand.” Strong sales growth Senior said MS recorded a 10 per cent sales growth in the October-December quarter in 2012. The expansion drive will boost retail space by 33 per cent and increase staff strength from 1,000 to 1,400 this year. “Our existing business remains strong, driven by great products and excellent customer service. MS is a brand that customers understand consistently delivers quality products at reasonable prices and it is this combination that saw our sales grow by 10 per cent in the last quarter of 2012.” About MS’ popular product category, he said: “One of the best reasons to shop at MS is our wide range of product categories. Therefore, whilst our great new womenswear ranges often receive the most attention, we also meet our customer needs when shopping for lingerie, menswear, beauty, food or children’s wear.” He said MS constantly introduces new collections into its stores to ensure customers have access to the latest trends and styles. “We ensure our ranges fit the seasons, for example currently we have a huge range of high quality and innovative swimwear options for both men and women.” To a question, he said the UAE is Al Futtaim’s home market and remains the largest single territory in terms of number of stores, with 12 stores planned out of a total of 26 by the year-end. “All our markets are important to MS and continue to receive support and development as required. For example as mentioned above we will open new stores in Jordan, Lebanon, Egypt, Bahrain and Kuwait this year outside of the UAE.”
	Double-digit revenue rise eyed by Dollar Thrifty	Abdul Basit / 12 May 2013 The Dollar Thrifty Automotive Group will continue to maintain a double-digit growth in terms of revenues in the Middle East and the UAE, its regional executive director Sam Eltibi said. “Business is doing very well across the region. We always witness good business, whether it’s a recession or boom time,” Eltibi, who looks after the Middle East, North Africa and Sub-continent for the automotive group, said on the sidelines of an event recently. “When it’s a recession, government sand companies prefer to lease rather than buy, and during good times the car rental sector again gets good business,” he explained. “So, both ways, the business is good.” “A stable UAE environment helps boost our business and since last year our business reached [levels] similar [to that of] the pre-financial crisis level,” he said. Eltibi said 2013 looks very positive, especially in the UAE where tourists’ arrivals are increasing phenomenally as UAE carriers open new destinations and all these lift hotel occupancy levels very high. The group runs two well-known brands in the UAE — Dollar and Thrifty. “Today, Thrifty has 42 locations and Dollar is present at 22 places. So altogether, we are operating out of 64 locations in the country,” he said. Talking about other parts of the region, he said: “Saudi Arabia is very good, Oman is booming, and Qatar is also doing well. Jordan has good business and we restarted in Libya. Morocco also started seeing signs of improvement; it is more like Europeans’ destination and due to the crisis in Europe, the business was down there.” Last year, Thrifty Car Rental started offering high-end sports cars to customers with the addition of the 2012 model Ford Mustang 5.0 and the 2012 Dodge Charger. Rent-a-car companies serve the purpose of point-to-point travel, so for that need small and medium cars are in high demand, he said, adding that sports-car demand is very less. The Dollar Thrifty Automotive Group participated in recently concluded Arabian Travel Market in Dubai. Eltibi said: “We are committed to reinforcing our reputation as the region’s premier automotive rental companies. Participating in trade show events such as the Arabian Travel Market is important to showcase our presence in the car rental industry and compete in a very demanding and challenging market.”
	UAE, Algeria hold trade discussions	/ 12 May 2013 The 11th session of the Algerian-Emirati Joint Commission commenced on Saturday in Abu Dhabi. The session, which concludes tomorrow, will be co-chaired by UAE Minister of Economy Sultan bin Saeed Al Mansouri and Algerian Minister of Finance Karim Djoudi, in addition to the participation of a number of representatives from various ministries, the public and private sector from both countries. Al Mansouri said that the meeting’s agenda is abundant with important issues that will enhance bilateral relations in important sectors, such as the economy, trade and investment. The commission will also discuss ways to develop bilateral relations in all fields. He also stressed the importance of the strategic role of the joint commission in enhancing the economic relations and uncovering new opportunities of cooperation.
	Dubai hotel licensing and classification	(Wam) / 9 May 2013 In his capacity as the Ruler of Dubai, His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, has issued Decree No. 17 of 2013 on licensing and classifying hotel establishments in the emirate of Dubai. The decree also defines the specialisations of Dubai Department of Tourism and Commerce Marketing (DTCM) as a competent official body in the emirate entrusted to regulate licensing and classification of hotel establishments. The new decree contributes to raising the standards of high-quality service for hotels in Dubai. This decree shall be effective after three months of the date of its publication in the Official Gazette. To that effect, DTCM on Wednesday announced the new system which will improve clarity and increase the transparency about the type and quality of hotel rooms and accommodation available across the Emirate and the services provided within the establishments. The announcement was made on the sidelines of the Arabian Travel Market — at which DTCM has been outlining the ‘Dubai Tourism Vision for 2020’— and comes a year after the scheme was ‘soft-launched’ at the same event in 2012. Following a period of extensive research, benchmarking against key local and international destinations and discussions with the hotel industry, the Hotel Classification Scheme has now been put into effect. Helal Al Marri, director-general of the Department of Tourism and Commerce Marketing, said: “Our current system of classification dates back to 1998 and requires updating due to the vast growth of the hotel and hospitality sector in Dubai in the past 15 years. Following the soft launch of the new classification system this time last year, we have benchmarked it against grading schemes from markets in major destinations regionally and around the world, to help ensure that Dubai’s classifications are at the forefront globally.” “We have also worked in close partnership with the hotel industry to ensure that our new criteria match the range of tourist accommodation in the market today and that there is a smooth transition from the old classification system to the new one.” He continued: “By adopting a multi-tiered framework of ratings, categories and designators, clearer choice will be provided to visitors. At the same time, new marketing opportunities are provided to hotels, with the ranges of categories and designators demonstrating the wide offering that has developed in Dubai.
	Dubailand’s Miracle Garden to expand	/ 9 May 2013 Following Miracle Garden’s successful opening this year in Dubailand, a Dubai Properties Group destination, Akar Landscaping Agriculture Company has announced plans to commence work on phase two of the popular visitor attraction, with completion expected in October 2013. The new eco-tourist attraction has welcomed more than 400,000 visitors. In addition to the current variety of plant and flower species, the second phase of the unique 721,000 sq. ft Miracle Garden will include the largest vertical garden in the world, an Edible Plants Garden from which visitors can pick their own fruits and vegetables and a Butterfly Garden, made up of an impressive 10,000 live butterflies bred in the UAE for the first time. ________________________________________ Miracle Garden blooms in the desert Miracle Garden that opened in Dubailand on Feb 14 is an oasis abundant with flowers in over 60 colours. Geraniums play second fiddle to Petunias at an 80,000-square-foot colour oasis called — not for nothing — ‘Dubai Miracle Garden’. Forty-five million blooming flowers in more than 60 colours — some of which, such as the black velvet Petunia, have been planted for the first time in the UAE — adorn this patch of saline desert soil. Otherwise known as sand. Miracle Garden is set in the backyard of the Dubailand Sales office, the parent company of Arabian Ranches, Legoland, Universal studios (before it shut down), Dubai Motor City and the Global Village complex. So, behind the garden’s tall hedges and 12-metre-high pyramids speckled with ‘trailing petunias’, you see scaffolds of roller coasters and facets of now defunct amusement park rides. The attraction in this barren neighbourhood is this carefully landscaped flower city. - Read more... No sprinklers • Watering 45 millionblooming plants of 45 varieties is made easier by the state-of-the art underground drip line called the sub-surface irrigation • The dripline systemminimises water vapour loss from the different parts of plants — no buckets, no flowering cans, no sprinklers. Capillary mats like doormats made with absorbent coconut fibre are used to facilitate efficient irrigation by conserving up to 75 per cent of water and power • Sub-surface irrigation also prevents evaporation, as water goes straight to the root of the plants. Water is further saved by eliminating the wind factor that would disperse droplets in directions away from plant roots Quick facts • Total park area: 80, 000 sq ft • Developed by Akar Landscaping Services • Project started on Nov 23, 2012; inaugurated Valentine’s Day on Feb 14, 2013. • For more, log on to www.wthe-miracle-garden.com
	Abidos unveils expansion plan	Abdul Basit / 9 May 2013 Newly established Abidos Hotels unveiled an aggressive expansion plan at the Arabian Travel Market (ATM). “We are speaking about five hotels by the end of this year and also targeting 20 hotels by 2017,” Mina Habib, Vice- President, Abidos Hotels, told Khaleej Times. The hotel management company, which has two hotel apartments in Dubai, has also signed two properties in Poland and first one will be operational within two months, according to Habib. “It’s our first presence in Europe,” he added. Emirates airline’s direct flight to Warsaw, Poland capital, is one of the reasons to explore this particular market, Habib explained. Emirates recently began flights to Poland, where recently the World Bank predicted the highest economic growth in the Central and Eastern European region. The airline is now operating a daily service to Warsaw. “We will have more properties within the region and outside the region in future. One hotel is under construction in Dubailand with 900 rooms. There is also some discussion for properties in Libya, Qatar, KSA, Jordan and Sudan. We are also very bullish and positive about Africa,” he said. Abidos Hotels has signed a management agreement with Zbyszko Hotels for two exceptional properties in Poland. “We are absolutely thrilled to partner with Zbyszko Hotels. The group has been in the business for the past two decades and we are truly grateful to them for giving Abidos Hotels the opportunity to manage these fantastic properties in Goniadz and Nowogrod merely two hours’ drive from Warsaw,” he said. The two hotels together offer 80 keys and are undergoing an expansion that will double the number of units by the end of 2014. Equipped with world-class facilities and superb amenities, both hotels are already operational and are brilliantly located in close proximity to the green forest of Kurpie that is known for its rich natural reserves and folk culture. With a flexible business model Abidos Hotels owns, manages, franchises and leases hotels. Abidos Hotels announced its first property in December 2012 with the launch of Abidos Hotel Apartment – Dubailand. “Our brand has been extremely well-received by both travellers and developers. We are witnessing massive interest from the industry and expect to sign up more projects before the end of the year.”
	Shaikh Mohammed receives ATM delegates	(Wam) / 8 May 2013 His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Tuesday received at Zabeel Palace Prince Sultan bin Salman bin Abdulaziz, President of the Saudi Commission for Tourism and Antiques. In attendance were Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai; Shaikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Emirates airline and Chief Executive of the Emirates Group; and more than 20 Arab and foreign Ministers of Tourism participating in the Arabian Travel Market in Dubai and the joint forum held yesterday on the sidelines of the event. Shaikh Mohammed welcomed the ministers and officials, stressing the importance of tourism and the tourist industry sector in Arab countries and developing countries in particular, since the sector constitutes a main source of national income for a number of countries and its population. Shaikh Mohammed hosted a lunch banquet for the guests. Among those who attended were Mohammed Ahmed Al Murr, Speaker of the Federal National Council; Shaikh Mansour bin Mohammed bin Rashid Al Maktoum, a number of Shaikhs, dignitaries, ministers, directors of government departments, and other economic figures in the country.
	Dubai set for $44.5b boost from aviation	Muzaffar Rizvi / 8 May 2013 The aviation industry’s contribution to Dubai’s economy will grow to $44.5 billion and create 372,900 jobs by 2020, Shaikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Dubai Airports, Chairman of Emirates airline and Chief Executive of the Emirates Group, said. Addressing the first Global Airports Leaders’ Forum, or Galf, on Tuesday, he said the aviation industry should leverage new technologies to enhance customer experience as well as find ways to tap into renewable sources of energy to limit carbon footprint. In his keynote address, Shaikh Ahmed said the aviation industry supports over 250,000 jobs and contributes over $22 billion in Dubai, representing around 19 per cent of total employment and 28 per cent of the emirate’s gross domestic product, or GDP. “Currently, we have committed $8 billion for the ongoing expansion of Dubai International. We are confident that this investment will pay huge dividends. In fact by 2020 aviation’s contributions to our economy will grow to $44.5 billion and 372,900 jobs,” he said. Shaikh Ahmed called upon airport leaders to cooperate more closely with stakeholders across the value chain to ensure that the airspace is opened up to meet growing demand. The two-day forum is part of the 13th Airport Show, which runs until today with the participation of over 220 exhibitors from 35 countries. Shaikh Ahmed said that the gathering of great minds often gives birth to wonderful ideas and valuable solutions that benefit one and all. “It’s no coincidence that the UAE’s bid to host Expo 2020 in Dubai is based on the theme ‘Connecting minds, Creating the future’. I am hopeful your participation will lead to far-reaching, positive changes in the airport industry worldwide,” he said. He added: “Dubai itself is growing in leaps and bounds, and the world is waiting in eager anticipation to see what it will do next, and what has been achieved so far. We are delighted to see so many people here now, facilitating and enabling each other to come up with innovative solutions to the challenges facing the aviation industry.” Later, talking to reporters, Shaikh Ahmed shrugged off concerns over massive investments in airports across the region and said it is good for the industry. About the launch of passenger service at Al Maktoum International Airport, he said: “The airport is all set to launch passenger service on October 26.” However, he declined to comment on the number of commercial airlines, that are ready to start their operations from new facility.
	Emirates to recruit nationals	Issac John / 8 May 2013 Emirates, Dubai’s flagship airline, will be adding 5,000-6,000 new employees to its global workforce annually over the next five years to meet its fast-track expansion plan, according to Gary Chapman, president of Group Services and dnata. The carrier, one of the fastest-growing legacy airlines in the world, currently employs over 60,000 staff globally, including 40,000 within the UAE. Chapman said employment of the Emirati workforce remained a priority in Emirates’ recruitment policy. At present, the carrier has 2,500 Emiratis in its workforce following the addition of 850 in 2012. “We offer a whole spectrum of opportunities to UAE nationals in our organisation as part of our policy to support national development and employment,” said Chapman. “We have all the right ingredients to attract talents, locally and globally. At present, emiratis constitute 12 per cent of our pilots and 24 per cent of the senior management staff,” he added. He said central to Emirates’ recruitment policy is an emphasis on increasing the number of UAE nationals in the company. Currently, they comprise less than five per cent of the airline’s employees across the globe. The reason for the low ratio is the reluctance on the part of nationals to work as cabin crew that constitute one-fourth of the total workforce at 15,000. “In general, Emiratis do not want to apply for a cabin crew post due to the nature of job that requires them to work in shifts, which is necessary for a 24/7 operation like ours,” he said. In April, Emirates held a graduation ceremony for the largest group of cadet pilots in the history of the Emirates National Cadet Pilot Programme. At a ceremony overseen by Shaikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Emirates airline and Chief Executive of the Emirates Group, 54 UAE national men and woman earned the qualification of professional pilots after completing 30 months of theoretical study and practical training. The UAE flag carrier, after recording one of the fastest growth rates in network expansion in 2012 by adding 15 new services, is moderating its pace this year as it is taking lesser number of aircraft. The airline currently has a fleet of 200 aircraft, and has 210 on order worth $62 billion. It has the world’s largest Boeing 777 and Airbus A380 fleet. Emirates currently flies to 133 destinations in 77 countries including 23 destinations in 12 countries in the Far East and Australasia. Chapman said Emirates will be adding 20 aircraft this year. He said dnata, the Middle East’s leading travel management company, would be focusing on Africa and the Middle East region to sustain its growth. Dnata, which made a foray into India in November 2011 with its corporate travel business, has presence in eight Indian cities. In early 2013, the airline launched new services to Warsaw and Algiers. Emirates will launch a daily flight in October between New York and Milan, expanding on its existing three daily flights to Milan from its Dubai hub and tapping into what the airline views as underserved premium and cargo markets between Italy and North America. In April, Emirates and Qantas announced a game-changing global alliance with a five-year partnership. Under the alliance, the carriers will coordinate ticket prices and flight schedules and struggling Qantas will shift its hub for European flights from Singapore to Emirates’ Dubai base.
	Damac to build Dh150m golf course	Damac to tie up with Donald Trump on luxury golf club • By Deena Kamel Yousef, Staff Report Damac Properties has announced plans to develop an 18-hole PGA Championship golf course worth Dh150 million in collaboration with Donald Trump at the heart of its $2.5 billion ‘Akoya by Damac’ master plan development, a senior company official told Gulf News. Construction of the Trump International Golf Club will begin in June and negotiations to appoint a contractor are in the final stage, Ziad El Chaar, Managing Director of Damac, said in an interview. It is due for completion within 18 months. Asked about the sources of funding for the project, he said: “We have been so far been relying on financing in two ways: Self-funding and financing from proceeds of off-plan property sales. Because there are other components here, like the golf course and spa, we may resort to some financing from leading banks.” The golf club, a 7,205-yard par 71 course located ten minutes from Shaikh Zayed road, will be built the 28 million square foot ‘Akoya by Damac’ that was announced last week. The club will be managed by the Trump Organization, which owns and manages 14 courses around the world with Dubai being its first golf club venture in Asia. It will include a 30,000 square foot club house, Trump Spa and wellness center. Asked if Dubai has the capacity for yet another golf course, El Chaar said: “We hope to create an area which is the Beverley hills in Dubai. There is a continuous, increasing demand for golf in Dubai, it is in the top six for golf tourism globally. The whole market is growing,” El Chaar. According to study by accounting firm KPMG released earlier this month, the UAE is in the top 10 most popular destinations for golf tourism worldwide. The Club is the first phase of development in the Akoya by Damac project, the largest project by size and scale that Damac has ever launched. Besides the club, it will include mansions, villas, townhouses and luxurious apartment units, a spa, boutique hotels and international schools from kindergarten to secondary level. The second phase of development in Akoya will be the residential units around the golf course. In other projects, Damac will hand over 3,300 new units this year in Burj Khalifa area, Downtown Jebel Ali and Umm Suqqeim, El Chaar said. Growth in the luxury market is sustainable, El Chaar said, noting that they sold 40 per cent of the Damac Towers by Paramount.
	Flurry of deals inked at ATM	Abdul Basit / 7 May 2013 The 20th edition of the Arabian Travel Market, or ATM 2013, witnessed announcements of a number of new hotel signings for this year and next in the UAE and other Gulf countries by international companies. Tourism professionals from across the globe flooded in to take advantage of this unique opportunity to unlock the business potential within the Middle East’s inbound and outbound markets. The first day did not disappoint as there was a huge quality crowd. More than 2,700 exhibitors from across the globe were present, showcasing a comprehensive range of products and destinations across the entire travel industry. Shaikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, officially inaugurated the event, in the presence of senior government officials, leaders of the regional and international travel industry as well as high-profile participants. Shaikh Majid bin Mohammed bin Rashid Al Maktoum, Chairman of the Dubai Culture and Arts Authority, was also at the event. Buyers were a key focus during the day. The event welcomed hundreds of Buyers Club members, all of whom have direct purchasing responsibility. The highlight of the day was the first seminar where a line-up of experts kicked off the ATM Events Programme. An opening address by Shaikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Emirates airline and Chief Executive of the Emirates Group, talked about the achievements of Dubai and the UAE over the last 20 years in terms of developing its travel and tourism industry. Emaar Hospitality Group, the hospitality and leisure subsidiary of Emaar Properties, is highlighting its global portfolio of current and upcoming world-class properties at the ATM. Hyatt announced that its development plans for major properties in Saudi Arabia are progressing as anticipated, with two new properties expected to open in the next one year — the Hyatt Regency Riyadh Olaya and Hyatt Regency Makkah. Ferrari World Abu Dhabi returned to the ATM for the third year running announcing plans to move to a seven-day operational model later this year. The Sharjah Commerce and Tourism Development Authority unveiled its first-quarter tourism statistics for 2013, posting significant increases in the levels of growth in the tourism sector.
	New mortgage rules drafted	Haseeb Haider / 7 May 2013 The UAE Central Bank has drafted mortgage loans regulations, which have been referred to concerned institutions for consultation. The board of directors reviewed the draft of the regulations, according to a Press release issued by the apex bank on Monday. “The proposed mortgage regulation is meant to institutionalise the market, in consultation with banks, and is unlikely to slow down a largely cash-based real estate market,” says a recent research note issued by Bank of America Merrill Lynch. It further said “progress on establishing a marginal lending facility to improve banks’ liquidity management practices is ongoing, and work is being done to define a collateral mechanism.” In late December, the central bank issued new maximum loan-to-value limits for expatriates at 50 per cent for buying a first home and 40 per cent on the second. However, the limit for a UAE national was restricted to 70 per cent for the first purchase and 60 per cent for the second one. The move, which aimed at the stabilising the recent surge in the real estate prices, had to be delayed upon the recommendation of the banking industry. Banks suggested an 80 per cent maximum loan-to-value for UAE nationals and 75 per cent for the expatriates for the first house, and 65 per cent and 60 per cent, respectively, for subsequent ones. Dubai property prices grew 18 per cent in the first quarter of 2013. In Abu Dhabi, values were up eight per cent in the period, according to Jones Lang LaSalle, a leading real estate investment and advisory firm. Meanwhile, the central bank’s board discussed a memo regarding the proposed framework for the central bank’s risk management policy and approved the proposed framework. It also reviewed a report submitted by the Banking Supervision Department on the financial positions of local banks and financial companies. The board reviewed the report of the Assistant Governor for Monetary Policy and Financial Stability, which showed the overall prudential ratios of the banking system, financial stability, central bank data and liquidity. It confirmed that banking indicators are considered positive and that banks are in a good financial position, and enjoy an excellent capital adequacy. In the first quarter of the year, most of financial institutions fully or partially paid the substantial amount of deposits they got from the Ministry of Finance as a measure to boost their capital after the financial crisis. This “is also a sign of strong liquidity,” one banker said. He said most banks have also maintained strong capital adequacy ratios in the January-March 2013 period, which clearly reflects the health of economy. “The UAE recovery is well entrenched and that supportive global liquidity conditions are allowing Dubai to look past near-term maturities,” Bank of America Merrill Lynch said in the research note. The investment bank said “non-performing loans appear to be stabilising at 8.6 per cent and capital adequacy rates are elevated at 20 per cent.”