GULF STATES| ECONOMICS & FINANCE
Majid Al Futtaim to launch ‘carrefour business’
Majid Al Futtaim has announced its plans to launch ‘Carrefour Business’ later in this year, as a business-to-business offering for the hotels, restaurants and catering (Horeca) industry. Carrefour Business is a one-stop shop service that will provide customers with a wide variety of high-quality food and non-food solutions to cover their needs. The service will also cater to small groceries, wholesalers, airlines and other public and private institutions. Clients that have signed up for the service can choose from more than 4,000 products, ranging from fresh and dry food to personal care products, appliances and textiles separate to what is already sold in Carrefour’s stores. They’ll also have access to products that would otherwise be unavailable in the region through Carrefour France’s Promocash wholesale range, and its partners in the Rungis Market located in Paris. Large purchases are incentivised with volume discounts. Miguel Povedano, COO of Carrefour UAE and head of Operational Excellence at Majid Al Futtaim Retail, told that the number of products on the portfolio will steadily increase as more clients sign on and their needs are identified. “The idea is that we will be live before the end of the year, around June or July. Our ambition is to become an omni-channel company for both B2C and B2B customers. Our research showed us that there was a tremendous potential for such an offering in the market. We are ready now, because we have built up our capabilities to a point where we are confident that we can pursue this initiative. We know that customers are looking for much more digital solutions that deliver on the promise of convenience, large portfolio of products for selection, excellent service 24/7, speedy deliveries, and a great loyalty scheme.”
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UAE gets driverless cars in the fast lane
The UAE continues to lead the region and remains among the world’s top 10 countries that are best prepared for driverless vehicles, thanks to its world-class road infrastructure, the change readiness of its technology infrastructure, government’s readiness and strong acceptance by the consumers.
According to the KPMG’s 2019 Autonomous Vehicles Readiness Index, the UAE slipped one place to 9 as compared to last year’s ranking but was placed ahead of many developed countries like Japan, New Zealand, Canada, Australia, France, South Korea, China and Spain among others.
Globally, the Netherlands and Singapore maintained their first and second positions, respectively, for the second consecutive year followed by Norway, the US, Sweden, Finland, the UK, Germany, the UAE and Japan rounding off the top 10 in terms of their preparedness for autonomous vehicles.
The UAE’s strong push for the autonomous vehicles is driven by Dubai as the government intends to make 25 percent of all transportation autonomous by 2030. Launched in 2016, Dubai Autonomous Transportation Strategy to focus on environmental and efficiency improvements which is likely to generate Dh22 billion activity annually.
The strategy will also help cut transportation costs by 44 percent, resulting in savings of up to Dh900 million a year. It will also help save Dh1.5 billion a year by reducing environmental pollution by 12 percent, as well as generate Dh18 billion in annual economic returns by increasing the efficiency of the transportation sector in Dubai by 2030.
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Saudi Arabia sees a $100 bn investment opportunity in India
Saudi Arabia’s Crown Prince Mohammed bin Salman said on Wednesday he saw investment opportunities of more than $100 billion in India over the next two years as he began his first official visit amid tensions between India and Pakistan. India rolled out the red carpet for the crown prince as it seeks diplomatic support against Pakistan following a militant attack in Jammu and Kashmir.
“Today we expect the opportunities we are targeting in India in various fields to exceed $100 billion in the coming two years we want to work with you, Mr Prime Minister, to ensure these investments are made and to ensure useful returns for both countries,” the crown prince said. Saudi’s Aramco said it was in talks with India’s Reliance Industries Ltd for possible investments and was seeking other opportunities.
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Demand in the UAE’s F&B sector to gain momentum
Demand within the UAE’s food and beverage sector is expected to gain momentum over the next three years, supported by the country’s fast-growing population, rising number of tourists, and expanding halal food market, according to new analysis from Dubai Chamber of Commerce and Industry.
The analysis, based on recent data from Euromonitor International, projected fresh food sales in the UAE to record a compound annual growth rate (CAGR) of 8.3 percent over the 2018-2021 period. Pineapples strawberries, bananas and tomatoes were identified as high-potential categories with these products expected to see CAGRs of 10.6 percent, 9.4 percent, 8.3 percent and 7.1 percent, respectively. Tea products were forecast to see a CAGR of 9.3 percent between 2018 and 2021, while a CAGR of 2.6 percent was predicted for coffee products over the same period.
Hassan Al Hashemi, vice president of International Relations at Dubai Chamber, noted that strong demand within the UAE’s food and beverage sector is reflected in the number of growing number of companies that exhibit at Gulfood every year. He revealed that the Chamber has seen growing interest on the part of food producers and exporters from Eurasia, Africa, and Latin America that are very keen to cooperate with Dubai on food security and use the emirate as a re-export hub to reach surrounding markets. In addition, he stressed the importance of hosting the Gulfood briefing every year at Dubai Chamber, as such events provide an ideal platform for visiting businessmen to learn about Dubai’s economy and business environment, as well as the competitive advantages and business opportunities that the emirate offers.
The European Union commissioner for Agriculture and Rural Development, Phil Hogan, also spoke about the importance of the event and the opportunities that the UAE market presents for exporters in the European Union (EU).
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Saudi Prince and Indian premier set to bolster bilateral ties
Saudi Crown Prince Mohammed bin Salman’s visit to India starting is expected to be watershed in the time-tested bilateral ties and presents a monumental opportunity to expand collaboration between the two long-time partners in many vital sectors.
Expectations about the economic and investment fallout of the royal visit have skyrocketed following the $20 billion deals the Saudi Crown Prince signed in Pakistan ahead of his delegation’s visit to India – the kingdom’s fourth largest trade partner after China, the US and Japan.
India’s bilateral trade with the kingdom is worth $28 billion. The Gulf country supplies 20 percent of India’s crude oil and the Indian diaspora in Saudi Arabia is three million, the largest expatriate group in the kingdom.
Diplomatic sources said during the trip, counter-terrorism and energy security are expected to top the agenda for discussions besides enhancement of ties across several areas, including IT, health and tourism. Political analysts said cooperation in counter-terrorism is likely to figure high on the agenda of the talks in New Delhi as the visit of the prince comes following the Pulwama terror attack.
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Pakistan means business: $20b from Saudis to prop up economy
Pakistan will get a $20 billion-plus economic package from Saudi Arabia during the two-day visit of Saudi Crown Prince Mohammad bin Salman to Islamabad,.
The government will take up preferential trade agreement and ease of business visas with the Crown Prince, who heads a high-profile delegation to hold talks with Prime Minister Imran Khan on Sunday, according to senior officials of Ministry of Trade in Islamabad.
Pakistan’s Minister for Information and Broadcasting Fawad Chaudhry said both the countries will sign at least eight memoranda of understanding to promote bilateral trade and investment in the medium- to long-term period.
“Pakistan is open for business and investment. Prime Minister Imran Khan delivered this message at recent World’s Government Summit in Dubai and exchange of top level delegations from the UAE and Saudi Arabia shows that we are on right track,” Chaudhry told on Friday.
The Wall Street Journal reported last month that Saudi Arabia and the UAE have offered Pakistan approximately $30 billion in investment and loans. In addition to offering oil imports worth $6 billion on deferred payments, both countries have already deposited $3 billion each in Pakistan’s central bank to ease balance of payments crisis and support the rupee.
“The UAE and Saudi Arabia are going to set up mega refineries in Pakistan to cater to the local demand as well as to export surplus products to regional markets,” Chaudhry said.
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First self-driving car made in UAE to hit the roads soon
UAE-based automotive company W Motors’ has announced the unveiling of MUSE at Auto Shanghai 2019 on April 16.
The fully-electric MUSE features a Level 4 / Level 5 autonomous driving system, innovative user interfaces and cloud-computed connectivity, as well as several interior configurations catering to different business needs and consumer requirements. It will be fully produced in Dubai, UAE by W Motors at the all-new production facility of which the first phase is set to be completed in the last quarter of 2019.
Pioneers of the future of driving, W Motors is the first and only automotive developer in the Middle East – in partnership with sister company ICONIQ Motors – to release a self-driving vehicle, designed to be on the road for EXPO 2020 in Dubai.
MUSE was developed by W Motors and ICONIQ Motors in collaboration with international partners AKKA Technologies, Magna Steyr and Microsoft USA, each offering highly specialized and cutting-edge technologies in the realm of advanced autonomous driving solutions. With its name deriving from the greek goddesses of inspiration, all elements of the MUSE create a balanced harmony of the science and art of automotive technology and functionally aesthetic design.
W Motors Founder & CEO, Ralph R. Debbas says, “The move from conventional vehicles to electric will happen much sooner than we expect, and we are honoured to be part of this movement – as well as Dubai’s vision for the future of mobility. Autonomous vehicles will change the way we travel and connect with one another, and as a UAE-based company, it is an exciting achievement for us to be leading the way in the region’s development within this sector.”
The announcement comes in line with the recent introduction of the Dubai Autonomous Transportation Strategy, which is expected to bring Dh22 billion in annual economic revenues by reducing transportation costs, carbon emissions and accidents, raising the productivity of individuals and saving hundreds of millions of hours wasted in conventional transportation.
The MUSE Level 5 show car was presented ‘pre-launch’ for the first time during a private function at W Motors flagship gallery on February 13, 2019. An official signing ceremony with the private office of Sheikh Saeed Al Maktoum also took place earlier that day.