GCC States Economy & Development

[Al Bhatti]

September 25, 2014

UAE GDP set to cross Dh2 trillion by 2019: Al Mansouri
Economy minister invites US businesses to invest in Expo 2020 opportunities

The UAE GDP is expected to cross Dh2 trillion by 2019, said Sultan bin Saeed Al Mansouri, Minister of Economy, quoting statistics of the International Monetary Fund.

He said that the UAE GDP reached Dh1.4 trillion last year, up by 4 per cent.

Al Mansouri led a UAE delegation to the US where the group had a series of meetings in Washington and other cities.

The meetings of Al Mansouri and the delegation focused on boosting cooperation in the areas of innovation, technology, renewable energy, industry, knowledge economy, and benefiting from the US expertise in respective areas.

Al Mansouri stressed keenness of the UAE on strengthening cooperation ties with the US in the areas of innovation and technology so as to upgrade performance of vital sectors in the UAE and increase their competitiveness to contribute to the sustainable development.

In a gathering held to introduce both Emirati and American businesspersons and investors to potential business opportunities in the two countries, President of US-UAE Business Council said a number of US companies have selected the UAE to be their base in the Middle East given investment opportunities and exemplary business environment provided by the UAE. Over 300 personalities representing Emirati and American companies attended the gathering.

Al Mansouri said the hosting of Expo 2020 in Dubai "is an exemplary opportunity for the US companies in the UAE", noting that the hosting of the event in Dubai indicates the progress being experienced by the UAE.

Al Mansouri met a number of US officials during the visit.

UAE GDP set to cross Dh2 trillion by 2019

 

[Al Bhatti]

September 22, 2014

UAE-US trade relations to grow stronger: Al Mansouri

Bilateral trade and investment relations between the UAE and the US have registered an upward trend and are poised for further exponential growth with the two countries keen to strengthen ties as lucrative and untapped opportunities continue to open, the UAE Minister of Economy, Sultan bin Saeed Al Mansouri has said.

The minister is leading a large high-profile UAE business delegation to the US for collaborative discussions with senior officials.

“We see diverse opportunities and avenues for bolstering cooperation between the two countries. The US and the UAE have a strong existing economic and commercial partnership. Bilateral non-oil trade between our countries reached $26.9 billion in 2013, and the UAE continues to retain its lead among Mena-region countries as the largest export market for US goods and services,” Al Mansouri said in a statement.

“The fifth US-UAE Economic Policy Dialogue held in Abu Dhabi in April 2014 paved the way for stronger commercial linkages to meet the potential of the future. Our current visit to the US will include collaborative talks to cement partnerships in key business areas such as energy, aviation, information technology and healthcare,” he said.

The UAE includes senior officials from the Ministry of Economy, Sharjah Investment and Development Authority (Shurooq), Dubai Internet City, Dubai Outsource Zone (DOZ), Dubai Exports (an agency of Dubai's Department of Economic Development), Sharjah Tatweer Forum, Mubadala Aerospace, Abu Dhabi Department of Economic Development, Abu Dhabi National Oil Company (ADNOC), Abu Dhabi Technology Development Committee (TDC), the Information and Communication Technology (ICT) Fund, as well as a number of the executives of private-sector companies.

The delegation’s visit to the US is expected to drive brisk investments on projects of mutual interest and enhance trade cooperation between the two countries at both the government and private level. As part of its US tour, the UAE delegation will visit Washington DC, Seattle, Palo Alto, Silicon Valley and Los Angeles.

Al Mansouri noted that the Ministry of Economy, in line with the vision of the UAE leadership, is keen to help shape a knowledge-based economy that adds significant value – to the tune of at least 5 per cent – to the UAE’s GDP by 2021.

“Given this priority, we are focused on nurturing ideas that will develop different economic sectors while improving our competitiveness at an international level. The US accounts for the world’s biggest global corporations and the strongest innovation and technology organizations. During our tour to the country, we will aim to forge strong partnerships that boost the UAE’s knowledge credentials,” Al Mansouri said.

“Our delegates will aim to learn from the different experiences across sectors and eventually look to establishing the UAE’s presence in the identified key growth areas."

According to the Ministry of Economy, the UAE's foreign trade grew at an average rate of 12.6 per cent during the last three years to reach more than $290 billion at the end of 2013.

Trade between the two countries helped create more than 200,000 jobs in the US in 200,000 as the UAE is the largest recipient of the US exports to the Middle East. In the meanwhile, the UAE’s direct investments to financial markets in the US and the American economy grew to more than $21 billion.

According to statistics from the Ministry of Economy, the UAE hosts more than 1,000 US companies, many of which have regional offices in the country. The UAE is also home to more than 60,000 US citizens.

UAE GDP set to cross Dh2 trillion by 2019

---------------------------------

September 24, 2014

Pouring of concrete for unit 3 at Barakah nuclear plant begins
Planned commencement of operation in 2017 on schedule

The Emirates Nuclear Energy Corporation (Enec) has achieved another milestone in the development and complex construction of the UAE’s first nuclear energy plant by pouring the safety concrete for the Reactor Containment Building for Unit 3.

This significant milestone follows the receipt of the Construction Licence from the Federal Authority of Nuclear Regulation (FANR). More than 1,954 cubic yards of concrete were poured during a concrete pouring ceremony attended by senior Enec and Kepco (Korea Electric Power Corporation) officials, a press release issued by Enec said on Wednesday.

This is the first safety concrete to be poured at Unit 3 and is the first stage in building the third reactor for the UAE’s nuclear programme. Preparation works have been carried out over a 12-month period to arrive at the stage where the concrete could be poured. This extensive preparation has included excavation works, lean-concrete to provide a base, waterproofing and reinforcing steel installation.

The safety concrete is the placement of the safety-related concrete that forms part of the lower basement structure of the reactor containment building. Concrete placements will be a regular and ongoing process after the first placement is completed.

Construction will now continue by concreting being completed in height increasing stages until the Reactor Containment Building wall will be installed. Construction of the reactor containment building will be completed over the next three years and Unit 3 is on track to enter commercial operations by 2019.

“The concrete pouring is yet another key accomplishment for Enec and the UAE’s peaceful nuclear energy programme,” said Mohammad Al Hammadi, CEO of Enec. “Enec is working hard to reach its construction targets on schedule and deliver safe, efficient and reliable nuclear energy to the UAE starting by 2017.”

“Just over a week ago, we received the approval from FANR to begin construction for Units 3 and 4 and were ready to commence the concrete pouring. As in all our operations, we are committed to ensuring that safety is a top priority in all the construction steps undertaken for the UAE’s nuclear energy plants.”

Following an 18-month rigorous review by the UAE Federal Authority for Nuclear Regulation (FANR) and a team of international nuclear energy experts, the regulator granted Enec approval last week to commence construction of units 3 and 4.

Unit one is already more than 57 per cent complete and due to connect to the grid in 2017. Construction of Unit two is also well under way and this unit is scheduled to enter commercial operation in 2018.

Once the four reactors are complete, the UAE’s nuclear programme will provide approximately 25 per cent of the UAE’s electricity needs, saving up to 12 million tonnes of greenhouse gas emissions each year.

UAE Nuclear Regulator invites Public to Comment on Nuclear Facilities Guide

 

[Al Bhatti]

24 September 2014

Studies complete on $3 billion alumina refinery

GCC accounts for 3.75% of the world’s aluminium production

Feasibility studies have been completed for the establishment of an alumina refinery in Abu Dhabi, estimated to cost $3 billion, said the CEO and managing director of Emirates Global Aluminium, Abdulla Kalban.

The refinery will produce two million of alumina in the first phase and double its output to four million metric tonne in the second phase. The project will be operational by the end of 2017, Abdulla Kalban said.

Alumina, which is used to produce primary aluminium, is extracted from bauxite in the refining process. Emirates Global Aluminium, is a largest industrial merger, which was formed last year when the UAE’s Mubadala Development Company owned Emirates Aluminium or Emal and Dubai Aluminium or Dubal joined hands. EGA has an enterprise value of $15 billion.

Opening the 29th Metal Bulletin International conference in the capital on Tuesday, Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy, said that the UAE has spent $10 billion on the aluminium industry in seven years, which reflects the confidence it has in the industry’s huge potential.

On the formation of world’s one of the largest aluminium company, EGA, the energy minister said it reflects the long-term strategy of the nation to diversify its oil-based economy and provide a secure, prosperous future for the youth; adding lasting and sustainable value. By 2018, EGA’s contribution to the UAE’s GDP is forecasted to be approximately $6 billion, the minister said.

The company already employs over 7,000 people, with an additional 2,000 jobs to be created by the end of this decade.

“And direct employment will not be the sole benefit of the investment, with the development of projects such as the Kizad industrial complex, the downstream aluminium cluster will also grow creating an estimated 25,000 jobs by 2020,” the minister said.

Emirates Global Aluminium’s two units currently produce 2.4 million tonnes of aluminium products per year.

The UAE accounts for about 50 per cent of the Gulf’s annual aluminium production of five million tonnes and is the world’s fourth largest producer of the metal, Kalban said.

The CEO and managing director of EGA predicted that Emirates Global Aluminium would boost its production by only about 200,000 tonnes over the next six years. The outlook for rising demand was solid, he said. In 2013, the aluminium industry in the GCC accounted for 3.75 per cent of the world’s aluminium production, which is set to grow to nine per cent in 2020, with the ambitious plans EGA has for the sector in the country.


“Global demand growth is forecast to sustain at about 5.8 per cent per year till 2020, so we are confident about demand.”

About 90 per cent of the UAE’s aluminium production is exported to 68 countries, he said.

Studies complete on $3 billion alumina refinery in UAE

 

[Al Bhatti]

17 November 2014

The Big 5, Middle East Concrete and PMV Live exhibitions are set to open in Dubai today.

GCC construction deals seen at $195.7 this year

The total value of construction contracts awarded this year will soar to $195.7 billion, up from $159.87 billion in 2013, according to a report by Ventures Middle East.

With massive building and infrastructure spending driving the GCC’s construction boom, international and regional decision makers and industry leaders will converge on Dubai World Trade Centre this week to attend The Big 5, Middle East Concrete and PMV Live exhibitions which open today.

The total value of construction contracts awarded this year will soar to $195.7 billion, up from $159.87 billion in 2013, according to a report by Ventures Middle East.

“The Big 5 continues to be the leading event in the region for construction professionals and to drive innovation in the industry. With the construction sector back in the spotlight, this year’s event will be our most successful ever,” said Andy White, group event director of The Big 5. “The packed programme of free conferences, panel discussions and CPD certified workshops will deliver unique technical insight opportunities to all attendees.”

The Big 5, Middle East Concrete and PMV Live offer 55 CPD-certified and free-to-attend workshops, as well as 48 technical seminars. The two-day conference on sustainable design and construction will present eight Middle East project showcases directly from the appointed project architects, developers and contractors themselves.

To create awareness of new building solutions available in the Middle East, the show has launched the brand-new feature called The Innovation Trail. The trail will highlight over 40 cutting-edge products with cost and time savings features.

The 2014 editions of The Big 5, Middle East Concrete and PMV Live will welcome more than 2,700 exhibitors from 60 countries. Compared to 2013, 25 per cent of new exhibitors will be present across the three shows, with a combined total exhibition space of more than 100,000 sqm in total this year. The shows received more than 74,000 participants in 2013, and organisers are expecting another record year.

“By co-locating the three shows, we provide the most comprehensive platform for industry professionals to come together and leverage opportunities to help drive the region’s upcoming project challenges,” said Nathan Waugh, event director of PMV Live and Middle East Concrete.

Business - GCC construction deals seen at $195.7 this year

 

[Al Bhatti]

18 November 2014

The Oxford Economics report re-affirms aviation’s growing significance as a major engine of economic development and its far-reaching contributions to other industries.

Aviation in Dubai to pitch in $88 billion

Dubai economy to be further boosted; almost 1.2m new jobs seen through 2030

Dubai: The overall economic impact of both aviation and tourism related activities in Dubai will rise to $53.1 billion in 2020 and hit $88.1 billion by 2030 and will support 1,194,700 jobs, Oxford Economics said on Monday.

By 2020, as Dubai expects to welcome over 20 million visitors for Expo 2020, it is estimated that Emirates will fly 70 million passengers, and the airline and its partners are already progressing plans for the right infrastructure to be in place to support and capitalise on passenger growth, Oxford Economics said in its latest forecast entitled “Quantifying the Economic Impact of Aviation in Dubai”.

The report was made using industry growth forecasts and modelling projections based on current expansion plans for Dubai International and Al Maktoum International at Dubai World Central.

The report said projects to support the six month mega-event in Dubai are already underway. “This includes a sizeable increase in airport capacity, which encompasses expansion of airspace, airfield, stands and terminal areas to allow Dubai International to accommodate 60 per cent more aircraft stands by 2015, and service 90 million passengers by 2018. By 2020, Dubai International is estimated to receive 126.5 million passengers, almost 30 per cent higher than its original 2010 assessments.”

The report said Emirates airline, Dubai Airports and the aviation sector as a whole contributed $26.7 billion to the Dubai economy in 2013, which was almost 27 per cent of Dubai’s gross domestic product, or GDP, and supported a total of 416,500 jobs accounting for 21 per cent of the emirates’ total employment.

The report explains the benefits that aviation brought to Dubai’s economy in 2013 in terms of gross value added, or GVA, and employment, and provides forecasts for the sector and its knock-on effects in 2020 and 2030.

The report re-affirms aviation’s growing significance as a major engine of economic development, and its far-reaching contributions to other industries as a catalyst for a spectrum of economic activity.

“Dubai’s success stems from a clear vision, careful planning, and collaborative execution. It is no accident that we are a global aviation hub today. It has taken us years to build up the critical competencies and infrastructure that we have today, and we now have a solid base on which to further develop. We will continue to take a consensus-based approach to infrastructure investment, embrace open competition, and focus on opening up and connecting markets through efficient operations. At the end, we want Dubai to be the top choice for international travellers and traders — as a destination, and as a transport hub,” said Shaikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Emirates airline, Chief Executive of the Emirates Group and Chairman of Dubai Airports.

Core impact of aviation

It is estimated that the aviation sector, including the Emirates Group, Dubai Airports and other aviation businesses such as airlines flying into Dubai, regulatory authorities and Dubai Duty Free, had a core impact of $16.5 billion GVA in 2013. This includes direct, indirect and induced contributions and is equal to 16.5 per cent of Dubai’s GDP, supporting over 259,000 Dubai-based jobs.

“Moreover, for every $100 of activity in the aviation sector, a further $72 is added in other sectors of the local economy from supply chain connections and expenditures. For every 100 jobs created in aviation, an additional 116 jobs are created elsewhere in Dubai,” said the Oxford Economics report.

The report pointed out that aviation has proved to be an indispensable catalyst for the growth of Dubai’s tourism industry. Tourism and travel activities in 2013 had an economic impact of $10.2 billion GVA supporting a further 157,100 jobs. In 2013, Dubai welcomed nearly 10 million non-UAE visitors who spent $13 billion, accounting for around one per cent of foreign visitor spend globally that year.

“The success of Dubai as a destination has been a public and private effort to invest in world-class aviation and tourism infrastructure to support the influx of visitors. The results have paid dividends and Dubai currently captures a 0.4 per cent share of the world’s business and tourism traffic, double the share it had in 2000,” it said.

According Oxford Economics, one of Dubai’s greatest assets is its enhanced connectivity. In 2013, Oxford estimated that passengers could connect from Dubai to 25 cities (or 81 per cent of world cities) with populations of over 10 million people. Overall, Dubai had direct passenger flight connections to 149 cities with populations of over one million people, creating potential export markets of over 916 million people, or 13 per cent of the world’s population. Cargo tonnage between 1990-2013 handled in Dubai has grown on average of 13.5 per cent per year, compared to global average trade volumes of 5.6 per cent per year.

Aviation in Dubai to pitch in $88 billion

 

[Al Bhatti]

November 19, 2014

His Highness Sheikh Mohammed bin Rashid Al Maktoum receives on Wednesday William Clay Ford, CEO of Ford Motor Company

Mohammed receives Ford Motor CEO
Discusses global economic situation

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, received on Wednesday William Clay Ford, CEO of Ford Motor Company which was established in Michigan in 1903.

The meeting discussed regional and global economic situations and economic experts’ forecast on the global economic growth as well as the expectation of US cars markets regionally and internationally.

CEO of Ford commended the vision Sheikh Mohammed has for the emirate of Dubai, which he described as a vibrant and unique city that boosts open and liberal economic policies. Moreover, Dubai’s cultural diversity and world class facilities and infrastructure helped attracting investors and international companies looking for a stable business environment to set up new headquarters and expand their businesses in Mena.

Impressed by the UAE’s religious and cultural tolerance among its residents and the coexistence of many culture as more than 200 nationalities are living in the country, CEO of Ford Motor Company said that, though visiting Dubai for the first time, he decided to open the corporate regional headquarter in the city. He added that such well-established track record of tolerance only reflects the balanced policy and wise vision of the UAE’s leadership, asserting the prominent image the UAE has established internationally.

Present at the meeting were Dubai Director of Protocol and Hospitality Khalifa Saeed Suleiman, Chairman of the Board and CEO of Meydan City Corporation Saeed Humaid Al Tayer and President of Ford Middle East & Africa Jim Benintende.

Mohammed receives Ford Motor CEO - Emirates 24/7

 

[Al Bhatti]

November 19, 2014

Sheikh Hamdan meets LinkedIn’s Senior Vice President for Global Solutions, Mike Gamson

Hamdan meets LinkedIn executive
Commends role of technology companies

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, has asserted that Dubai became a hub for technology, a preferred destination for international technology companies and a magnet for the industry’s specialised talents.

Sheikh Hamdan commended the significant role of international technology companies’ regional offices in transferring knowledge and experiences to emerging markets, including the Middle East.

Sheikh Hamdan’s remarks came after his meeting with LinkedIn’s Senior Vice President for Global Solutions, Mike Gamson, in the presence of Mohammed Abdullah Al Gergawi, Chairman of the Executive Office of His Highness Sheikh Mohammed bin Rashid Al Maktoum, and Abdulla Al Basti, Director-General of the Executive Office of His Highness Sheikh Mohammed bin Rashid Al Maktoum.

Gamson highlighted Dubai’s position as major technology hub, adding that Dubai has become the most favourite choice for international companies due to its ideal business model.

Sheikh Hamdan bin Mohammed discussed with Gamson the latest LinkedIn’s initiatives, projects and plans to expand in the region. They also discussed methods to enhance cooperation between LinkedIn and various specialised departments in Dubai Government.

The Dubai Crown Prince also met employees of the Executive Office of His Highness Sheikh Mohammed bin Rashid Al Maktoum. He was briefed on the Office’s current projects, and he called them to provide more efforts and sustain team spirit.

Hamdan meets LinkedIn executive - Emirates 24/7

 

[Al Bhatti]

November 24, 2014

Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai and Zeng Peiyan, former Vice Premier of China and Vice-Chairman Boao Forum for Asia, at the 2014 Boao Forum for Asia Financial Cooperation Conference on 24th November, 2014.

China on course to become UAE’s biggest trading partner-minister

Shaikh Mohammad opens inaugural Boao Forum for Asia Financial Cooperation Conference

China is on course to become the UAE’s number one trading partner after having registered a trade of $22 billion (Dh80 billion) in the first six months to June, the UAE Minister of Development and International Cooperation said on Monday.

Shaikha Lubna Al Qasimi, Minister of Development and International Cooperation, was speaking at the inaugural Boao Forum for Asia Financial Cooperation Conference, which was opened by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice- President and Prime Minister of the UAE and Ruler of Dubai.

China-UAE trade reached $46.2 billion in 2013, a 14 per cent increase from a year before, Shaikha Lubna said.


“The Asian continent is coming alive with new trade and exchange that is bringing us closer together. Countries, including China, are revisiting and reinvesting in a New Silk Road, ushering in a new era of Asian growth and prosperity,” she said.

The UAE has four of the five largest banks in China along with more than 4,200 Chinese companies and could develop the potential of Dubai as the new silk route between the east and the west.

“Our decision to stage the event in Dubai, strategically located at the crossroads between East and West, is recognition of its growing importance as a conduit for financing, trade and exchange between East and West Asia, as well as the role it can play in financing infrastructure and energy investments that will help further integrate Asia into the world economy,” said Zhou Wenzhong, Secretary-General for the Boao Forum for Asia (BFA).

Benefit positively

“The growth in China is benefiting our economy positively. We are looking at China for a sustainable economy. China and the UAE signed a partnership agreement, where they could diversify relationship in cultural, political side as well,” said Abdullah Al Saleh, undersecretary of trade and international affairs, UAE Ministry of Economy.

“If we look this year, so far the trade stood at $35 billion till September, up 25 per cent compared to the same period last year,” said Al Saleh.

“There will be continuous growth in terms of trade on both sides. If you look to UAE exports to China is only 20 per cent we need to diversify trade and goods. We need to focus on the investment side as well,” Al Saleh added.

The conference was attended by more than 350 delegates, along with former Vice- Premier of China Zeng Peiyan, former prime minister of Pakistan Shaukat Aziz and Dominique de Villepin, former Prime Minister of France.

Abdullah Mohammad Al Awar, CEO, Dubai Islamic Economy Development Centre; and V Shankar, Group Executive Director and CEO Europe, Middle East, Africa and Americas of Standard Chartered Bank were also present at the event.

China on course to become UAE’s biggest trading partner-minister

 

[Al Bhatti]

November 24, 2014

Kuwait’s crude oil exports to China increase by 27.8%
Kuwait news agency quotes Chinese General Administration of Customs as saying that Kuwaiti share of Chinese crude oil imports last month was 4.1%

Kuwait’s crude oil exports to China surged 27.8 per cent in October from a year earlier to 986,000 tons, equivalent to around 233,000 barrels per day (bpd).

Kuwait news agency, KUNA, quoted the Chinese General Administration of Customs as saying that Kuwaiti share of Chinese crude oil imports last month was 4.1 per cent, compared to 3.8 per cent the year before.

In the January-October period, Kuwait exported 191, 000 bpd to the world’s second-largest oil consumer, up 29.8 per cent on the year.

State-run Kuwait Petroleum Corporation, KPC, has signed a landmark deal with China’s top energy trader, UNIPEC, in September, which will significantly boost crude oil deliveries to China over the 10 years, the biggest-ever sales contract in KPC’s history by volume and revenues in all regions.

Under the agreement, KPC supplies UNIPEC 300,000 bpd of crude oil starting from this year, with a strong possibility of increasing the volume to 400,000 bpd.

Kuwait’s crude oil exports to China increase by 27.8% | GulfNews.com

-------------------------------------------------

December 9, 2014

UAE second largest market for Saudi Arabia’s non-oil exports in October
China ranks first in terms of value, with plastic and rubber products topping the list of non-oil exports during the month

The value of Saudi Arabia’s non-oil commodity exports in October 2014 amounted to 15.91 billion riyals (Dh15.56 billion), down by 12.44 per cent compared to the same period of 2013, while imports amounted to 45.7 billion riyals, down by 6 per cent compared to the same period of 2013.

China ranked first in terms of the value of non-oil commodity exports, followed by the UAE and Singapore. China also topped the list of countries importing non-oil commodities, with the United States in second place and Germany in third.


Saudi Press Agency (SPA) quoted the Central Department of Statistics and Information (CDSI) as saying in its report that plastic and rubber products topped the list of non-oil commodity exports during October, amounting to 5.79 billion riyals, followed by chemical industry products at 5.12 billion riyals and ordinary metals and their products at 1.21 billion riyals.

UAE second largest market for Saudi Arabia’s non-oil exports in October | GulfNews.com

 

[The SC]

What is the present and future impacts of the oil price drops on the GCC economy?
Can the GCC absorb it? and for how long?
Serious questions need serious answers...

 

[Halimi]

Example of the work being done at KAUST.

 

[Al Bhatti]

27 December 2014

Dubai foreign trade nears Dh1 trillion during Jan-Sept

Direct trade contributed Dh605 billion of Dubai's total foreign trade value, while free zones contributed Dh367 billion, and the customs warehouses Dh16 billion.

Dubai has managed to contain the effect of global commodities and products' drop down in prices and sustained a high-value foreign trade. Figures released by Dubai Customs show that Dubai's non-oil foreign trade in the first nine months of 2014 totaled Dh988 billion, with imports having the biggest share at Dh621 billion, exports at Dh86 billion and re-exports Dh280 billion. The impressive figures come at a time the World Bank stated that prices of commodities are seeing a steep drop in 2014.

Sultan Ahmed bin Sulayem, Chairman of DP World and Chairman of Ports, Customs, and Free Zone, said: 'Dubai’s foreign trade scored steady growth in the first nine months of 2014 with top trading partners. China was Dubai’s top foreign trade partner during the first nine months of the year, with a trade value of Dh126 billion, up 27 per cent on the same period as last year, followed by India with Dh80 billion, the USA with Dh61 billion, and Saudi Arabia -- positioned 4th globally and 1st among Arab countries -- with Dh40 billion. Dubai-Germany trade was up 25 per cent scoring Dh32.5 billion, while trading with Japan grew 13 per cent with a value of Dh31 billion.'

From January to September 2014, direct trade contributed Dh605 billion of Dubai's total foreign trade value, while free zones contributed Dh367 billion, and the customs warehouses Dh16 billion.

He further added: 'This comes in line with the directives of The President, His Highness Shaikh Khalifa bin Zayed Al Nahyan, declaring 2015 as the Year of Innovation, as well in parallel with the National Strategy of Innovation, devised by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai's initiative, crowning Dubai's effort towards nurturing knowledge economy, as per the Dubai Strategy Plan 2021 under the umbrella of UAE Vision 2021.'

Commenting on these figures, Ahmed Mahboob Musabih, Director of Dubai Customs, said: 'Dubai’s trade statistics for the first nine months of 2014 clearly show the emirate’s solid foothold as a regional and international trading and investment hub, as it maintained a high value despite the global decline in commodity prices. This reflects Dubai’s trading capability to increase the volume of foreign trade, including imports, exports and re-exports, to compensate for any drop in prices. In the first nine months of 2014, Dubai’s foreign trade neared Dh1 trillion, which further reinforces the diversity of the national economy structure.'

Phones topped other commodities in Dubai’s non-oil foreign trade. Trading in phones recorded an 8 per cent growth, amounting to Dh129.4 billion. Meanwhile, Dubai’s trade of motor vehicles and individual-use cars, including station wagons and racing cars, climbed 31 per cent to score Dh48.6 billion. On the other hand, computers recorded a 10 per cent growth at Dh40 billion, and petroleum oils grew 12 per cent and amounted to Dh30.5 billion.

Dubai’s foreign trade markets expanded to include partners’ from the five continents, spearheaded by Asia with a trade value of Dh610 billion, followed by Europe with Dh198 billion, then Africa with Dh89 billion, Dh72 billion trade volume with North America and Dh10 billion with South America, and Dh8 billion for Oceania, including Australia.

Dubai foreign trade nears Dh1 trillion during Jan-Sept - Khaleej Times

 

[Al Bhatti]

December 29, 2014

UAE GDP grows to Dh1.54 trillion in 2014
GDP is 236 times the level it was when the country was founded 43 years ago

The UAE has turned into a major economic power in the region over the past 10 years, with its Gross Domestic Product (GDP) growing from Dh314.8 billion in 2004 to Dh1.54 trillion in 2014, according to a report on the online portal, HotelandRest.

The report showed that the UAE has witnessed a transition from an oil-based economy to a more diverse one with multiple sources of income. In the past 10 years, non-oil sectors contributed 69 per cent of the total GDP, dropping the contribution of the oil sector to almost one third.

The economic growth taking place in the 10 years since the beginning of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan’s presidency is expected to continue. According to a forecast by the International Monetary Fund, the country’s GDP will rise in 2018 to Dh1.74 trillion.

Over the past 43 years, though, the UAE’s GDP has increased more than 236 times, going up from nearly Dh6.5 billion in 1971, as per the report.

The UAE is also expected to continue diversifying its income sources — a policy initiated by Shaikh Zayed Bin Sultan Al Nahyan.

The report added that as a result the successful policies led by Shaikh Khalifa, the UAE has positioned itself in 10th place internationally on the per capita income index, with the national savings rate of GDP rising to 32.9 per cent.

The rate is the largest in the world, and exceeds most major economies such as Germany, France, Italy, Brazil and Canada among others.

In terms of national per capita gross income, the report predicted that the UAE will become one of the top 10 countries in the world by 2020, noting that the country currently holds the 16th place.

The president’s policies were also behind the UAE’s current position as one of the most economically-powerful countries in the world in terms of liquidity and cash surplus.

Highlighting the travel and tourism sector, the report stressed that the UAE will be one of the best countries in the world in terms of attracting tourists due to its tourism infrastructure.


The report is based on a recent research by the World Travel and Tourism Council, which expected the travel and tourism sector to contribute about Dh122 billion to the country’s GDP.

The contribution, which was 8.5 per cent of GDP in 2014, represents an annual increase of 4.5 per cent when compared to 2013.

http://gulfnews.com/business/economy/uae-gdp-grows-to-dh1-54-trillion-in-2014-1.1433638




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30 December 2014

The UAE will record a fiscal balance of 1.8 percent and 2.8 percent of the GDP in 2015 and 2016, respectively, the Institute of International Finance said in a report.


UAE $700b spending on track

GDP poised to reach $435 billion; foreign assets to hit $652 billion in 2016

A relatively low fiscal and external current account break-even price of oil and ample foreign assets will enable the UAE to press ahead with an estimated $700 billion worth of infrastructure projects expected to come on stream over the next 15 years, spurring credit growth in the banking sector, the Institute of International Finance, or IIF, said.

The UAE’s nominal gross domestic product, or GDP, is poised to touch $435 billion in 2016, up from $417 billion in 2014 and $405 billion in 2015 under a predicted baseline oil price scenario of $78 and $85 per barrel respectively in 2015 and 2016, the global association of leading financial institutions said in a report.

With the economic growth set to hover between 4.8 per cent and 5.1 per cent in the next two years, the UAE will post a current account balance of $29.9 billion and $30.2 billion respectively in 2015 and 2016, accounting for 7.4 per cent and 6.9 per cent of the GDP.

In such a scenario, the Emirates will record a fiscal balance of 1.8 per cent and 2.8 per cent of the GDP respectively in 2015 and 2016, said Dr Garbis Iradian, Deputy Director, IIF. The coming years will also see the country’s public foreign assets swelling from $573 billion in 2014 to $615 billion in 2015 and $652 billion in 2016. The government debt will register an increase to 22.1 per cent and 23.3 per cent of the GDP respectively in 2015 and 2016.

“The UAE looks resilient vis-á-vis the drop in oil prices, given a relatively diversified economy, excellent infrastructure, a more transparent and better regulated banking system, political stability, and ample foreign assets. Monetary and fiscal policies are expected to remain broadly accommodative,” said the report.

The IFF said under its baseline scenario, the consolidated fiscal balance will remain in small surplus through 2016 given the UAE’s relatively low break-even price of oil (fiscal breakeven price of $74/bbl and external current account breakeven price of about $60/bbl in 2014) and the recent sharp increase in the power and water tariffs (targeting also nationals for the first time) which will lead to lower current public spending (subsidies and transfers are projected to be reduced from 3.7 per cent of GDP in 2013 to 2.2 per cent in 2015).

The report said while real non-oil GDP growth would remain strong at 4.8 per cent in 2015 a relatively low fiscal and external current account break-even prices of oil and ample foreign assets would enable the UAE to maintain its high level of spending on infrastructure and major projects and this will support growth in credit by banks.

“About $700 billion worth of infrastructure projects are expected to be implemented over the next 15 years. Abu Dhabi is expected to continue to make significant investment in the oil and gas industries (which represents about 20 per cent of total planned public investment). The completion of major projects (including Dubai Metro and Al Maktoum International airport in Jebel Ali) and the preparations to host the World Expo 2020 should keep growth in Dubai around five per cent in the coming years,” it said.

According to IIF, the UAE banks are amply capitalised, liquid, provisioned and with stable profits, reflecting prudent regulation by the central bank in recent years. The dollar peg is fairly secure. Unlike in 2009, there does not appear to have been any withdrawal of deposits from foreign institutions.

“Dubai, as a regional hub, is expected to benefit from the projected increase in world trade, in volume terms, as a result of lower international oil prices which will benefit the global economy, and, in particular, India and other net energy importing countries in Asia. Dubai’s main vulnerability is its high debt. The debt service burden would rise in the coming years due to higher principal and rising interest payments due as interest rates in the United States gradually increase,” said the report.

For the GCC as such, the large net foreign assets of the member countries can sustain continued robust government spending, especially on infrastructure, supporting nonoil growth, the IIF said.

“The GCC countries are much better positioned to cope with a slump in oil prices today than they were in the 1980s and 1990s. But the drop in oil prices will reduce hydrocarbon export receipts from a peak of $743 billion in 2012 to about $410 billion in 2015, leading to weaker current account positions and substantial pressures on fiscal accounts, including a fiscal deficit of 8.9 per cent of GDP in Saudi Arabia, in the absence of adjustment. Non-oil growth is expected to moderate to 4.7 per cent in 2015 from 5.6 per cent in 2014, driven by growth in government spending, albeit at a slower pace than previous years, and strong nonoil private sector activity,” it said.

“Ample public foreign assets and low debt in most of these countries will mitigate the adverse impact of low oil prices on economic activity and allow continued robust public spending, particularly on infrastructure,” said the report.

However, in light of the strategic decision by major oil producers in Opec (particularly Saudi Arabia, the UAE and Kuwait) to discount prices rather than cut back their own output in the face of surging global supply, GCC oil production is expected to remain flat in 2015.We estimate that, on average, the fiscal breakeven oil price for GCC countries is $82/bbl for 2014 to balance their budgets,” said the report.

UAE $700b spending on track - Khaleej Times

 

[Al Bhatti]

January 03, 2015

Sheikh Mohammed bin Rashid

Mohammed approves Dubai’s budget for 2015 with no deficit
Dh41 billion stimulus budget creates 2,530 jobs

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved Dubai's budget for the year 2015 based on a set of core principles, namely:

• Dh 41 billion, up 9% from the balance of the fiscal year 2014
• Provides 2,530 job opportunities
• Continues to stimulate economic growth
• Accentuates the social services sector
• Has an operating surplus of Dh3.6 billion

The budget directly applies directives as set by His Highness to focus on a prudent fiscal policy that provides the stimuli necessary to economic growth in the emirate, raise the efficiency of government agencies to provide the best health and social care services for all citizens and residents.

Abdulrahman Saleh Al Saleh, Director General of Government of Dubai’s Department of Finance, said: “Dubai managed to move beyond the budget deficit, but kept on increasing expenditure by 9% for fiscal year 2014, which pushes the principality's macroeconomic growth to be in line with the planned levels”.

“The benefit of the budget has reflected the directives of his Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, who emphasised the need for attention to the social aspect and development of investment incentives, which contributed to the high ranking in global competitiveness”.

“The break-even point between government revenues and expenditures has come as a result of strict financial policies of the Supreme fiscal Committee, chaired by His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Committee, which focused on increasing spending for the development of the sectors of the economy, infrastructure, communications, security, justice and safety, government services and excellence, and social development,” Al Saleh added.

Government revenue figures show Dubai's success in increasing public revenues for fiscal year 2015 by 11% compared to revenues for the fiscal year 2014

Revenue from government services, which represents 74% of total government revenue, increased by 22% compared to 2014. The increase reflects the projected growth rates for the principality, and the evolution and diversity of government services. This increase is due to the remarkable real economic growth by 2014 budget, with limited increments on certain government services, and other increments designed to regulate the real estate market.

Tax revenues increased by 12% of the total government revenue compared to fiscal year 2014, and came to represent 21% of total government revenues, which include customs and taxes of foreign banks, according to the development outcome of the customs by the Emirate's economic growth.

The net estimates of oil revenues accounts for only 4% of government revenue, decreasing by 5% from the fiscal year of 2014. The budget accordingly does not rely on oil revenues. The government revenues rose 11% for the fiscal year 2014, despite lower net oil revenues. The Emirate has cut down the budget allocation from the government investment returns to support the increased allocations reinvested, to contribute to the development of the Emirate's economic growth.

Distribution of government expenditure figures shows that wages and salaries represented 37% of total government spending, underscoring the government's desire to support recruitment and human resource support in the emirate, as well as provision of 2,530 new jobs for citizens by working to balance the fiscal year 2015. This is a continuation of the settlement policy and creating new job opportunities for citizens, the Dubai government has adopted 1,650 posts in fiscal 2014.

General and administrative expenses, capital expenditures and grants and subsidies accounted for 44% of total government spending in 2015. The government is keen to keep the development, advancement and support of government institutions to provide better government services for citizens and residents on its territory, as well as government support for housing bodies and institutions, sports and public welfare associations, charities and the media to achieve the well-being of citizens and residents and raise the rates of happiness community.

On the other hand, the government continues to support infrastructure projects by allocating 13% of government spending to infrastructure, and the hard work of building excellent infrastructure contributes to making the emirate always attractive to investments. Dubai is planning to maintain the size of its investments in infrastructure over the next five years.

Figures contained in the budget for the year 2015, as well as the interest of the government of Dubai to continue dealing with loans seriously across routing 6% of total spending for debt service, in support of the government's financial sustainability.

The government's interest in human, guided by the vision of his Highness Sheikh Mohammed bin Rashid Al Maktoum, who says “the human being is the wealth of the nation”, clearly appears in the review of the distribution of government expenditure in key sectors. The expenditures on social development in the areas of health, education, housing and community development, 35% of government expenditure, the government has taken to support social services through continued support for public benefits fund to support families with children, and maternal and child welfare, disabled persons, youth and sports clubs.

The budget of 2015 re-stressed the great support to the security, justice and safety sector, being one of the most important authorities for the community. The budget has allocated 22% of government spending to support this vital sector.

Maintained sector of economy, infrastructure and transport in 2015 to the attention of the government, which has been monitoring the 36% of government expenditure to this sector, which will contribute to realizing the aspirations of the Principality to establish distinct infrastructure are constantly evolving and attracting investment.

“The government's success in achieving no-deficit balance is a result of applying prudent fiscal policies,” said Arif Abdulrahman Ahli, Executive Director of budget and planning in the Department of finance. “The 2015 balance has been prepared in accordance with rule of using recurrent revenues to finance recurrent expenditures, which is one of the sound scientific bases of fiscal policy. The operating surplus of 3.6 billion dirhams will contribute to the financial sustainability of the principality”.

Jamal Hamed Al-Marri, Executive Director of Central Accounts in the Department of Finance, said: “Department of Finance is working hard with the government to prepare an implementation plan for the budget and provide the necessary funds in accordance with the priorities of the government. The government's cooperation with the Department of Finance in this regard will enable a smooth and hassle-free implementation of the 2015”.

Mohammed approves Dubai’s budget for 2015 with no deficit - Emirates 24/7





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January 3, 2015

Dubai avoids deficit in Dh41 billion budget for 2015

The government of Dubai has unveiled a 2015 public expenditure plan for growth and jobs in a deficit-free budget that hits levels not seen since the global financial crisis.

The budget was approved by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai. It will lead to the creation of 2,530 jobs for citizens in the emirate. “The human being is the wealth of the nation,” Sheikh Mohammed said.

At Dh41 billion, up 9 per cent from last year, the budget will see the biggest public expenditure since 2009. It aims to continue to stimulate economic growth, while “strict financial policies” are expected to produce an operating surplus of Dh3.6bn.

The budget comes against the background of falling oil prices which has forced policymakers across the GCC region to rethink their financial forecasts.

Oil will account for only 4 per cent of Dubai government revenues, the budget revealed, down 5 per cent from last year. “The budget accordingly does not rely on oil revenues,” a statement from WAM, the government news agency, said.

Revenue is forecast to rise 11 per cent this year, of which by far the largest contributors are charges for government services – accounting for 74 per cent of the total – 22 per cent higher than last year.

“The increase reflects the projected growth rates for the principality, and the evolution and diversity of government services. This increase is due to the remarkable real economic growth in 2014,” the statement said.

Tax revenues – from customs and excise charges and the corporation tax imposed on foreign banks in Dubai – will increase by 12 per cent, and comprise 21 per cent of the total.

On the spend side, wages and salaries will account for 37 per cent of government spending, “underscoring the government’s desire to support recruitment and human resource support in the emirate. This is a continuation of the settlement policy and creating new job opportunities for citizens”, the statement said. About 1,650 posts were created in 2014.

General and administrative expenses, capital expenditure, grants and subsidies will account for 44 per cent of spending in 2015. “The government is keen to keep the development, advancement and support of government institutions to provide better government services for citizens and residents on its territory, as well as government support for housing bodies and institutions, sports and public welfare associations, charities and the media, to achieve the well-being of citizens and residents, and raise the rates of happiness in the community,” the budget statement added.

“The government continues to support infrastructure projects by allocating 13 per cent of government spending to infrastructure, and the hard work of building excellent infrastructure contributes to making the emirate attractive to investment. Dubai is planning to maintain the size of its investments in infrastructure over the next five years,” it said.

The budget re-emphasises financial support to security, justice and safety, as “one of the most important authorities for the community”. Approximately 22 per cent of spending has been allocated for this purpose.

Abdulrahman Saleh Al Saleh, director general of Dubai’s Department of Finance, said: “Dubai managed to move beyond budget deficit. The benefit of the budget has reflected the directives of Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the Executive Council, who emphasised the need for attention to the social aspect and development of investment incentives, which contributed to the high ranking in global competitiveness.”

Mr Al Saleh said: “The break-even point between government revenues and expenditures has come as a result of strict financial policies of the Supreme Fiscal Committee, chaired by Sheikh Ahmed bin Saeed, which focused on increasing spending for the development of the economy, infrastructure, communications, security, justice and safety, government services and excellence, and social development.”

Dubai avoids deficit in Dh41 billion budget for 2015 | The National

 

[Al Bhatti]

January 06, 2015

An artist’s impression of Abha Airport

UAE’s Al Jaber Group wins Dh1.76bn Saudi contract
Will develop a new passenger terminal at Abha Airport

Abu Dhabi-based Al Jaber Group’s Saudi branch has won the Abha Airport development project worth SAR1.8 billion (Dh1.76bn), it said in a press statement.

The project will include a new passenger terminal with an area of 86,000sqm that will accommodate five million passengers annually.

It will also feature 20 passenger boarding bridges, an apron for planes to park and parallel corridors to accommodate 26 planes simultaneously and car parking buildings that can accommodate 2,800 cars. The construction is expected to be complete in 3 years, the statement said.

Obaid Khaleefa Al Jaber Al Marri, Chairman of Al Jaber Group, said: “Al Jaber Group’ Saudi branch is witnessing substantial growth since we started our operations in Riyadh last year. We were able to compete and win sizable projects mainly the Abha Airport development project.

“We are looking to winning more projects in the Saudi market in the near future. Al Jaber Group is well positioned to benefit from the increased momentum in the launch of new projects in this strategic market.”

Last month, its energy unit Al Jaber Energy Services secured a major civil and buildings project from energy giant Petrofac Emirates valuing at over Dh460 million.

UAE’s Al Jaber Group wins Dh1.76bn Saudi contract - Emirates 24/7