UAE Dirham will maintain its supremacy
As the UAE economy grew over the years, the UAE dirham has also emerged stronger against subcontinent currencies as well as other major countries’ units in the last 10 years due to a host of internal as well as external factors.
Analysts say that, going forward, the UAE dirham will gain against most of the subcontinent currencies while the US dollar will remain the world’s dominant currency and maintains its influence in the world economy over the next 10 years. While some other major currencies such as the Chinese yuan, the Indian rupee and the Russian rouble will also gain more influence as their economies will grow bigger in size.
Since the dirham is pegged to the dollar, hence, any movement in greenback directly reflects in the UAE currency.
Over the last 10 years, the Indian rupee, the Pakistani rupee, the Philippine peso and the British pound depreciated due to higher inflation, current account deficits and economic crises, which has led to an increase in export competitiveness of these economies, says Rajiv Raipancholia, CEO of Orient Exchange, and Treasurer at the UAE’s Foreign Exchange Remittances Group.
The British pound has weakened by over 19 percent in the past 10 years from 5.9 in 2009 to 4.7 in 2019 against the dirham, mainly due to uncertainty over Brexit.
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Strategic land exchange transaction
The Government of Abu Dhabi and Aldar Properties have agreed an exchange of land assets in a transaction that redistributes developable land resources in line with the parties’ strategic priorities.
The transaction, which will be implemented from this month, involves the exchange of land in the emirate, with no transfer of funds required.
Aldar will receive infrastructure enabled land that has a gross floor area (GFA) of approximately three million sqm split equally between the prime areas of Saadiyat Cultural District and Mina Zayed. The Government of Abu Dhabi will receive lands with a comparable GFA in Al Raha Beach West, Lulu Island along with certain plots inside Abu Dhabi island that were not part of Aldar’s development strategy in the foreseeable future.
Aldar CEO Talal Al Dhiyebi said: “This strategic land swap is a win-win deal for both parties. Aldar Properties will receive infrastructure-enabled land with high potential for development in the coming years, as we consolidate our development focus on our key destinations, in particular Saadiyat Island. Meanwhile, the Government of Abu Dhabi receives assets that match its long-term strategic objectives. This adds to the careful planning and management of real estate supply, which is key to sustainable development of the market as Abu Dhabi continues to build a vibrant and diversified and sustainable economy.”
Aldar operates as a developer and a major owner and manager of income-generating investment properties in Abu Dhabi. The company owns prime land in the emirate, including on Saadiyat Island, which is developing into a global lifestyle destination of pristine beaches and cultural institutions such as the Louvre Abu Dhabi.
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Ajman okays dh1.75b govt budget for fiscal 2020
His Highness Sheikh Humaid bin Rashid Al Nuaimi, Member of the Supreme Council and Ruler of Ajman, has issued Emiri Decree No.10 of 2019, passing the Ajman government’s general budget for the fiscal year 2020.
The value of the budget, without a deficit, totals Dh1.752 billion.
According to Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of the Ajman Executive Council, the emirate’s general budget seeks to ensure a decent quality of life for citizens and residents alike, via the launch of value-added projects and services in line with Ajman Vision 2021.
He explained that 2020 prioritises development areas, with the infrastructure and economic affairs sectors receiving 29 percent of the total budget to improve the business environment within the emirate.
Social development initiatives were allocated 18 percent of the budget, while 15 percent was allocated for general public order and safety affairs, the Crown Prince added.
About 9 percent of the budget was allocated to environment and sustainability initiatives, while 3 percent was allocated to recreational and sports sectors development. The remaining 26 percent will be attributed to public services within the emirate.
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IMO 2020 set to boost Fujairah’s bunker industry
A century after the shipping industry moved from coal to oil as its primary energy source, another change on the same scale is now under way – one prompted this time by a change in environmental regulations. The shift could provide a significant boost to the status of the UAE’s East Coast Port of Fujairah as a global oil hub.
The London-based UN body, the International Maritime Organisation (IMO), has toughened its rules on marine fuel emissions, setting a global sulphur content limit of 0.5 percent to come into effect from January 1, 2020. At present, most of the shipping industry burns high-sulphur fuel oil, a dense, dirty refinery by-product, as its main fuel, but these new regulations will force most to shift to new 0.5 percent sulphur blends that more closely resemble diesel.
The current situation puts Fujairah at a price disadvantage compared with other bunker ports. The bulk of the world’s high-sulphur fuel oil is made in the older, less complex refineries of Russia and Europe, and prices are more competitive at ports closer to those production locations.
But the more complex refining industries of the Middle East and Asia-Pacific, with a high yield of middle distillates, will be better placed to produce blending components for 0.5 percent sulphur fuels. Fujairah’s proximity to these producers will improve its position on price among the world’s bunker hubs.
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IMO 2020 rules may impact GCC oil exports
Dubai – Oil markets will go through a major transformation as new regulations covering the sulphur content of marine fuels take effect from January 1, 2020 and may have an impact on the regional countries due to high level of sulphur content in their crude.
The International Maritime Organisation (IMO) has ruled that from January 1, 2020, marine sector emissions in international waters will be slashed. The marine sector will have to reduce sulphur emissions by over 80 percent by switching to lower sulphur fuels. The rules define that the global 0.5 percent sulphur cap will enter into force in 2020, and more than 70,000 ships will be affected by the regulation.
The IMO 2020 rules have been estimated to affect as much as 3.5 million barrels per day of demand for high sulphur fuel oil, the shipping industry’s traditional fuel.
Industry insiders said that the UAE ratified the IMO 2020 rules in May and it won’t rush to punish non-compliant ships when new rules will be effective from January 1. They said the UAE holds strategic position in the region because of Fujairah Port where thousands of ships go to refuel each year when calling at ports in the Middle East.
Federal Transport Authority chairman Abdullah Al Nuaimi said recently that the UAE will adopt a flexible approach toward those ships that breach the environmental regulations when they enter into force on January 1.
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UAE cabinet approves consumer protection law
The UAE Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, approved the issuing of a Federal Law on Consumer Protection, which comes in light of the government endeavours to achieve the continuous development of the legislation that affects the lives of UAE citizens and residents alike, and in a manner that guarantees the protection of consumers and stability of prices in accordance with the best practices.
The law is in line with the GCC’s Unified Law on Consumer Protection, in a manner that ensures legislative integration between GCC countries. The law aims to continue providing adequate protection to consumers in light of the technological advancement and accelerated growth seen by the electronic commerce.
It also ensures the delivery of goods and services according to production and distribution patterns tailored to consumers’ needs and limits any practices that may have negative impacts on consumers.
The law also aims to encourage sustainable consumption and provides the necessary conditions for creating a free market where consumers are granted the right to choose freely with fair prices. In addition, the Law encourages the creation of a code of ethics for goods and services producers and distributors.
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Optimism about jobs, personal finances stays strong among Dubai residents
Dubai – Optimism about job prospects and personal finances remains strong among Dubai residents as 80 percent of them are sanguine about the employment situation over the next 12 months, revealed a new survey released on Monday.
The Consumer Confidence Index (CCI) released by Dubai Economy showed that 52 percent of Emiratis and 32 percent of expatriates see “excellent” job prospects for the next 12 months. While 43 percent of the expats term the prospects “good.”
In general, the chances of finding a job were “excellent” for 38 percent, and “good” for 42 percent in Q3 2019, matching perceptions shared in Q2 2019.
Survey results showed that 78 percent of residents see their personal finances positives during 2020.
The Consumer Confidence Index (CCI) score in Dubai for the July-September 2019 period was at 137, indicating a high level of optimism and brighter outlook.
The high level of optimism is driven by the upcoming Expo 2020 exhibition which is projected to give massive boost to travel and tourism, hospitality, trade and retail sectors. It is estimated that a thousands of part-time and full-time jobs will come up ahead of the mega event, which will begin from October 10, 2020.