Caught in deserted storm, impact of dubai economy in india and other countries

Re: cought in deserted storm, impact of dubai economy in india and other countries

GCC Plans to Float $25 Billion Railway Project Tenders

6 January 2010
ABU DHABI — The Secretariat-General of the Gulf Cooperation Council will soon begin the process for inviting tenders for the proposed $25 billion rail network project that links member countries of the council.
“The tender for the project will be invited after the technical and financial committees of the GCC countries approve the project. We have not fixed a specific time-frame for inviting the tenders, though we hope the concerned committees will give their approval for the project within a next couple of months,” Mohammad bin Obeid Al Mazroui, GCC assistant secretary-general for economic affairs, told Khaleej Times here.

Asked whether there would a common tender for the entire project, or if each country would be inviting separate tenders for the stretch of rail line passing through their territories, Al Mazroui said, “This will be decided only after the design and other technical aspects are approved by the concerned committees. I’m sure there will be coordination at the GCC level. But the question of issuing a common tender for the entire project or separate tenders for each country has not been decided yet.”

He said the rail project is expected to be operational by 2017. But this date is a projection based on the current assessment of the project, and this time-frame is subject to change depending on the future situations, he clarified. Construction on the 2,117km-long railway line will commence in Kuwait and Saudi Arabia, and extend to Qatar, Bahrain and the UAE. The project is also expected to make a critical contribution in the efforts to transform the GCC countries into a common market.

Obeid Al Mazroui declined to confirm the reports that the four GCC countries, Saudi Arabia, Kuwait, Bahrain and Qatar would soon form the GCC Central Bank as a prelude to the formation of the GCC Monetary Union. “I have no information on that, but I think this might take some time as they have to work out the charter of the central bank and other procedures.”
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

DUBAI — The opening of Burj Khalifa is not likely to bring down property prices as an investor in the iconic tower would more inclined to have a longer investment horizon and would wait until the market recovers, a leading property analyst said.
The impact of the opening of the world’s tallest tower is also expected to be gradual with little immediate and sustainable effect on the sale prices and rents of residential and commercial units elsewhere in Dubai, said Jesse Downs, Director Research & Advisory Services of Landmark Advisory, a Dubai-based property consultancy.

“The average owner of a Burj Khalifa residential unit is more likely withhold their unit from the market. This is usually because they are pursuing a capital appreciation investment strategy and/or use the it as a second home,” said Downs. This will keep sales inventory low and sales prices stable. Leasing inventory may be relatively controlled, it is more prone to fluctuations. This is also due to the overall supply and demand dynamics of commercial space in Dubai, she said.

When property prices were at their peak some apartments in the Burj were selling for more than Dh6,900 per square foot. About 90 per cent of units in Burj Khalifa have already been sold.

While some market watchers said those units could be worth less than half that, quite a few brokers believe that prices in the skyscraper had held up amid the 50 per cent crash across the rest of the city.

However, there may be short-run dip in rents after the building has been fully handed over. “This is because landlords are typically pushed to reduce rents when occupancies are low as tenants have significant bargaining power and prefer to move into a well occupied building as opposed to a nearly empty building.”

When the Burj Views project in Downtown Burj area was handed over in the summer of 2009 a dip rents was felt. Originally the two bedroom apartments (excluding the podium apartments) were renting for approximately Dh100,000 per year. Now that has increased by approximately 20 per cent in the space of six months, said Downs.

“However, the unfolding of rents in the Burj Khalifa really depends on the conversation rate of supply to inventory in the building itself.”

On the impact of Burj Khalifa’s opening on rents and sale price of residential and commercial units of surrounding areas, Downs said, “while we expect high vacancy rates, especially in the first year, the imminent handover will have a positive impact on confidence by simply showing progress.”

More interestingly, Burj Khalifa’s opening also increases agglomeration economies, thus moving the market towards the creation of one primary Central Business District, Downs pointed out. “The launch of Burj Khalifa could not have come at a better time. This is a clear vindication of the hard work and efforts of Dubai and the UAE. The vision of our leaders has always remained clear and consistent, said Dr. B.R. Shetty, Managing Director of NMC Group.

Burj Dubai is an iconic structure that embodies the spirit of Dubai —‘nothing is impossible.’ The opening of the tower will put to rest all the doubts expressed by the global media. It will give the economy a fresh impetus by attracting a new wave of tourism. It marks the start of a new decade on a positive note —a decade that will drive Dubai to newer heights of success and prosperity,” said Deepak Babani, Chief Executive Officer of Eros Group.

Based on the anticipated supply pipeline for this year, Downs said average sale prices and average rents would continue to decline into 2010. “However, it’s important to note that high quality, well designed and executed properties in key locations and/or in well designed master developments will perform relatively well. We expect that select residential developments will experience sale price stabilization and rent appreciation in 2010.”

The commercial market is facing an even more dramatic supply glut. “Although we haven’t seen this reflected in price movements recently, we do expect prices to adjust again in 2010,” said Downs. According to Landmark, property prices and rents largely stabilised over the last few months in Dubai with slight price rises in more sought after areas balancing out further declines in less desirable locations.

Apartment sale prices on the Palm Jumeirah climbed 7 per cent in the last three months, while lower quality developments such as International City saw prices slide 10 per cent.

Rent rates for units in Downturn Burj Dubai rose 13 per cent in the past two months and rates for units in Jumeirah Lake Towers increased 9 per cent, while International City saw rates slump 12 per cent.
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

World Future Energy Summit in Abu Dhabi (WAM)

9 January 2010 ABU DHABI - Bertrand Piccard, President of Solar Impulse and internationally renowned lecturer will be presenting his project to fly around the world in a solar airplane during the World Future Energy Summit taking place in Abu Dhabi, 18-21 January 2010.
Bertand Piccard will be among the speakers’ of a session at the World Future Energy Summit entitled “Achieving the unachievable: around the world in a solar plane”.

Panelists will include Duncan Hedditch, Chief Executive EMAL; Peter Gutman, Global Head, Renewable Energy & Environmental Finance, Standard Chartered Bank or Katrina Landis, Group Vice President, BP Alternative Energy to name a few.

Mr. Piccard commented, “I came up with this idea following the first non stop around the world balloon flight in 1999. To achieve this success, we took off with almost 4 tons of liquid propane and landed with only 40 kilos. Realizing that the lack of fuel could have made failed our expedition, I made a promise to myself. The next time I’d fly around the world, I’d do it without fuel. I am looking forward to talking about the project at the World Future Energy Summit in Abu Dhabi, and hope that it helps to demonstrate the potential of renewable energies.”

Solar Impulse’s project and core challenge entail flying an aircraft under its own power, both day and night, entirely propelled by solar energy. To create this zero fuel airplane, Impulse Solar has been working on applying totally new aeronautical solutions. To meet this big challenge, the accent has been put on reducing energy consumption by using new construction and aerodynamic features never before encountered.

This is just one of example of the technological breakthroughs that will be discussed at the World Future Energy Summit. Other sessions will be taking place on examples of how renewable energy can and is being applied to people’s daily lives, including e-mobility, green building and architecture, vehicles, fuels and power trains, among many others.

The main partners for the ambitious Impulse Solar project include Deutsche Bank, Omega and Solvay.

Solar Impulse’s President will be present, along with a delegation from Switzerland, travelling to attend the World Future Energy Summit in Abu Dhabi.
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

Dh35.4 Billion Dubai Budget Approved

8 January 2010 DUBAI — His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, approved on Thursday a Dh35.4 billion fiscal year 2010 budget for Dubai with a deficit of 2 per cent of gross domestic product.
The budget was announced by Lieutenant General Dhahi Khalfan Tamim, Commander-in-chief of Dubai Police and Head of the Dubai Government’s Budget Committee, for fiscal year 2010.

“The budget reflects Shaikh Mohammed’s financial policy, which seeks to raise economic growth rates, overcome the implications of the international financial crisis and adopt internationally recognised financial standards on deficit and management of public spending,” Dhahi Khalfan said according to Wam.

Abdul Rahman Al Saleh, Director of Dubai Finance Department, said that government revenues were projected to reach Dh29.4 billion against expenditure of Dh 35.4 billion, leaving a deficit of Dh6 billion.

“The deficit is consistent with the financial standards governing the financial policy which stipulate that the deficit should not go beyond 3 per cent of the total Gross Domestic Product (GDP) of the emirate. The 2010 budget has a deficit of only 2 per cent,” he explained.

Al Saleh said the budget envisaged a current surplus of Dh1.9 billion through the implementation of public spending management programmes, which aimed to raise competence and efficiency and heightened awareness of government officials to make optimum use of public funds.

“Spending on government investment stood at Dh10.7 billion, accounting for 30 per cent of total government spending for developing and completing infrastructure projects as drawn plans,” he added.

Al Saleh pointed out that Dubai’s budget struck a balance between the necessities of supporting and activating the economy on one hand and commitment to financial rules and the proper principles of public fund management on the other.

Dhahi Khalfan said the budget demonstrated Shaikh Mohammed’s vision for improving the socio-economic standards of citizens and residents of the emirate and continuing efforts for developing infrastructure in the emirate and boosting its economy.

The budget was designed in accordance with recommendations of the Dubai Supreme Fiscal Committee, chaired by Shaikh Ahmad bin Saeed Al Maktoum, President of Dubai Civil Aviation Department and Chairman of the Emirates Group.

The committee had called for sustaining the financial stimulus of the emirate’s economy through an expansionary financial policy, while committing to the international accredited financial standards, with the aim of posting a current surplus without surpassing the fixed percentage of deficit set by the committee.

According to the committee’s policy, the government expenditure should be channeled into sectors that serve the strategic economic targets of the emirate.

Basically Dubai government is giving signal that it is “Business As Usual” and that the government is committed to higher spending on infrastructure and other related projects, Jitendra Gianchandani, Chairman, Jitendra Chartered Accountants.

“Dubai’s 2 per cent deficit budget for the year 2010 is fantastic news considering that it is within international standards. This should be seen in the ray of light that the even the largest, most technologically advanced and militarily powerful US economy worth $14.4 trillion is currently running at 13 per cent deficit over its Gross Domestic Product (GDP). Or for that matter India’s $ 1 trillion economy is running at 11 per cent deficit over its GDP,” he said.

The best part of Dubai’s budget is that it envisages a current surplus of Dh1.9 billion by implementating public spending management programmes. “In other words, the government is serious about spending every dirham smartly and has directed government officials to make optimum use of public funds. This is a very positive sign.”

Gianchandani said that in today’s context there are few options for any government in any part of the world. “Either governments could tighten their measures and stifle growth. Or go the America, India, China and Dubai way of allowing growth take place even if it causes slight budget deficit. I am glad Dubai has chosen the growth path
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

Infrastructure sector will be affected as potential cash flows will be affected
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

Hospitality sector optimistic about growth prospects

Dubai: With more hotels on the market, room rates have fallen since last year.
"Room rates were way too high," said Naeem Darkazally, Rotana Area Director of Sales and Marketing for Dubai and Northern Emirates.
"Around the middle of 2009, the rates started to even out and there was a correction in the market. Now, room rates have come back to normal, how they should be," Darkazally said.
Darkazally believes that this correction is necessary for the market. "Dubai should remain an affordable destination. We shouldn't just be offering exclusive, expensive accommodation," he said.
According to STR Global, a consultancy for the hospitality sector, Dubai's occupancy rates remained the same at 82.1 per cent from November 2008 to November 2009.
The average daily rate (ADR), which is the room revenue divided by rooms sold, saw a 19.3 per cent decline from $365.40 (Dh1341) in November 2008 to $294.8 in the same month in 2009.
The revenue per available room (RevPAR) which is the room revenue divided by rooms available, also saw a 19.4 per cent decrease from $300.17 in November 2008 to $241.92 in November 2009.
"In 2009, we saw a drop of 5 per cent in our occupancies across the board. But the real impact was the increase in inventory," Darkazally said.
Certain events have helped boost hotel occupancy considerably. Eye of Dubai, a web portal that provides information about the emirate, reported a 300 per cent increase in the number of hotel reservations made through the website for the inauguration of the Burj Khalifa.
Soaring occupancy
Over 12,000 people were at the Burj to witness the historic event and hotels reported an average 90 per cent occupancy for the night of January 4.
"It's a fantastic addition for us," said Omar Kaddouri, Senior Vice-President of UAE Operations at Rotana, speaking of the Burj Khalifa.
Rotana recently inaugurated the world's tallest hotel, the Rose Rayhaan, located five minutes from the Burj Khalifa. "It's a very big benefit," he added.
Rotana, which operates 1,344 rooms on Shaikh Zayed Road, is expected to expand its operations in Dubai this year.
"Rotana will be operating 11 hotels in Dubai, with two more scheduled to open during the first quarter of 2010, which will add 547 rooms to Rotana's inventory in Dubai," Kaddouri said.
"Certainly there are a lot of hotels in Dubai, but we continue to have business," said Daniel Mathew, General Manager of Rose Rayhaan.
New avenues
"You just have to open up new avenues, be more creative and look at other areas and niches which do not exist in Dubai.
"This way we have been creative by building the tallest hotel, in a good location, offering decent rates," he added.
Better times ahead
19.3%:drop in ADR inNovember 2009
1,344: Rotana's available rooms on Shaikh Zayed Road
Inside the tallest hotel
As world's the tallest hotel, the main selling point of the Rose Rayhaan is the view. All 482 rooms offer views over the buildings lining Shaikh Zayed Road, the Burj Khalifa and its environment, and out onto Dubai's coast. The higher you go, the more exhilarating the views. Take a lift up to the 65th floor where four suite rooms and two premium suites offer towering views.
Each room comes furnished in earthy hues and is generous in size with the premium suites offering walk-in wardrobes and sizeable bathtubs. All rooms feature a range of modern amenities, a small kitchenette area and a luxury bathroom.
The rooms also include high speed broadband internet, IP telephone, multi-channel satellite television, complimentary tea and coffee making facilities, fully stocked mini fridge, in-room safe, laundry and dry cleaning services, daily housekeeping as well as bathrobes and hairdryer.
 
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The backbone of the economy

Sharjah The emirate's Chamber of Commerce and Industry, the government entity that works closely with the private sector, has been launching several initiatives and providing substantial support for small and medium enterprises (SMEs), especially in the past year.
Making up 90 per cent of the Chamber's members, SMEs are considered the backbone of the emirate's economy. Hussain Al Mahmoudi, director-general of SCCI says that Sharjah has an edge for SMEs because of its cost structure. He said that while gross domestic product is in fair shape, Sharjah has both challenges and opportunities ahead.
In an exclusive interview, Al Mahmoudi speaks to Gulf News about 2009 that was and what the Chamber's agenda for 2010 will be.

GULF NEWS: How would you sum up what the Chamber accomplished during 2009, and what were some of the main initiatives launched?
Hussain AL Mahmoudi: 2009 had a solid strategy. It was based on the fundamental activities of SCCI. This included promoting and developing relationships between the private sector and ties with our partners. Strengthening relationships with stakeholders was a key activity. It was a year of re-focusing on the fundamentals of the Chamber's work and also rolling out new initiatives.
Sharjah's private sector was affected like everyone else [by the crisis]. To deal with this, we had to come up with initiatives to help them through the challenges of 2009 and also those that will continue to exist in 2010.
For us, we moved into our new headquarters building. We also activated new projects such as the Egyptian Trade Centre, China Trade Centre, and this meant bigger operations. We got the Sharjah Institute of Science and Technology onboard and diversified our operations.

What has been the result of the several meetings that took place between the private sector and international entities/government representatives? How do you measure these results?
This is part of a long-term strategy with short-term results. The private sector does not have time to wait for results. We had some strategic tie-ups in key growth areas for Sharjah and its businesses. These areas included COMESA (Common Market for Eastern and Southern Africa), Iraq, Iran, North Africa. These countries present strategic opportunities for the private sector. We are already involved in partnerships in the important growth markets of China, India and the Middle East.
Most wait for over a year to see results. We are putting together a plan that will hopefully utilise and open up these opportunities within the next few months.

What will be the main focus of the Chamber's activities for 2010?
We have four themes of activities for this year.
Due to the financial challenges in general that the private sector witnessed, we've developed a very balanced investment plan to create new opportunities and partnerships for the private sector, using our umbrella as a government entity and our relationship with the private sector. The idea is to leverage our position as a Chamber and to leverage the investment committee in Sharjah to create opportunities for the private sector. This region is not short of cash. We will act more actively as a facilitator between various business partners to unlock opportunities.
The second is to foster our relationship with the private sector. We started the Business Working Group, our project that was launched in 2009 and will see further rollout in 2010. Developed for sudden needs, this will act as a backbone for the Chamber's work. This is also the core of the industries of Sharjah; the banking, retail, tourism, construction and real estate sectors. We will activate our relationship with stakeholders and business and government departments. The engagements will allow us to take the issues of the private sector to the right stakeholders. These are immediate goals that need to be addressed quickly.
The third theme is promoting industries of Sharjah. Sharjah was always known as the industrial capital of the UAE. We will be promoting this theme and we will be launching a ‘Made in Sharjah' initiative. This initiative will not be without substance. We are not going to create these industries. They are already there and people can see for themselves. The plan is to take this exhibition outside the emirate as well, to North Africa, COMSEA and other countries as well. This will eventually promote our companies in Sharjah and our products in key growth markets.
The fourth theme is to work on operational excellence, which is to do what we do in a better way. This includes the Sharjah Festival that we hope to revamp. We will also activate various initiatives that were launched under the umbrella of corporate social responsibility such as the Green initiative, corporate governance, development of human capital.

There was a media report about how SCCI has a massive investment budget for the private sector. Exactly how big is this budget?
That was an incorrect report. The Sharjah government has resources and the Chamber is utilizing these to support the private sector. We help the companies in Sharjah by putting them in touch with other business partners so they can take advantage of the opportunities in the local and international markets. We connect companies with investors rather than investing in them ourself.

Other than helping the private sector overcome the challenges of the economic downturn, what other plans does the Chamber have for the private sector?
One major plan is to revive stagnant industries. The emirate used to be the hub for auto spare parts and used cars. Now you see them exactly where they were about 10 years ago. No one has helped them to get to the next level. There are industry experts here and they have a lot of potential. We plan to promote them and engage them in developing further.
58,000
SMEs in Sharjah
10,000
SMEs in Sharjah's Free Zone
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

Dubai: The Dubai Shopping Festival's landmark 15th edition will open on Thursday.

"Apart from being a milestone, DSF 2010 will be highly visible to residents and visitors this time as we are back on the streets with a host of festivities. Areas like Al Seef, Dhiyafah and Rigga will be themed to enhance the festive atmosphere created by DSF," Laila Suhail, CEO of Dubai Events and Promotions Establishment (DEPE, formerly known as the Dubai Shopping Festival Office), said recently in a press release.

More than 150 international and regional events are expected to be showcased including concerts, shows and musicals.

Promotions

This is in addition to the participation of over 6,000 retail outlets and about 50 malls that will put on spectacular shopping promotions during the 32 days of DSF 2010. The Dubai Shopping Festival will run until February 28.

The Dubai Shopping Festival generated impressive visitor and spending figures during its 2009 edition. Around 3.35 million visitors spent approximately Dh9.8 billion during the 32 days of DSF 2009.

"We are more than delighted with the results of DSF 2009 and this has come about with careful planning and a realignment of our strategies with the existing situation.

"Despite a decrease in spending figures, the decline is minimal and can be attributed to several factors," she said.

Strict budgets

Highlighting the outcome of research conducted during DSF 2009 by an independent international research company, Laila noted that consumer behaviour had changed dramatically during the festival with customers spending on strict budgets.

The decrease in total consumer spending can also be attributed to the steep discounts and promotions offered by retailers and hotels that, gave visitors a tremendous value for money.

Laila also explained that the drop was also a direct result of inflation rates that nosedived in the first half of 2009 to between 3.5 and 4 per cent and subsequently bringing about a decline in consumer prices, thereby enabling retailers and hotels to offer exceptional deals.

"On the other hand, visitor numbers had increased due to a successful strategy of promoting DSF in markets relatively unaffected by the economic downturn, in addition to the fact that Dubai is a leading tourist destination all year round," Laila said.
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

New law promises property refunds in Dubai

Dubai: Dubai is considering a new property draft law which would enable property buyers to cancel their contract and claim a refund if the project is ‘unfeasible’.

Details of the new protection for homebuyers came in a newsletter from leading legal firm Al Tamimi and Co which says the new law will spell out ground rules for cancellations, most notably if a developer refuses to link payments to stages to construction or if the developer makes major specification changes.

The law also deals with the issue of refunds or replacement properties in case of defects in the property and financial penalty for major delays in delivery
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

Dubai: More than 6,000 retail outlets have signed up to participate in the Dubai Shopping Festival 2010 and many more are expected to apply to the Dubai Events and Promotions Establishment.

On January 28, the 15th Dubai Shopping Festival will officially kick off, providing Dubai with another exciting opportunity to boost the performance of its retail industry. DSF 2010 will run until February 28.

Retail is one of the fastest-growing industries in the UAE and it is expected to achieve a compound annual growth rate of over 12 per cent in 2009-2013.

Factors like improving household consumption and a growing service industry are expected to help drive the future growth of the sector.

The arrival of modern shopping malls, state-of-the-art hypermarkets and shopping events such as the Dubai Shopping Festival and Dubai Summer Surprises also make the country a lucrative destination for the retail industry, according to Booming Retail Sector in UAE, a market research report by RNCOS.

Even without special promotions, residents and tourists continued to stream to the malls nationwide.

For example, on a normal day between 70,000 and 80,000 people visit the Mall of the Emirates, and this goes up to between 100,000 and 110,000 people a day on weekends, according to estimates. The secret behind the success of the malls in getting people to visit and spend their money, even during difficult economic times, is exciting attractions and strong marketing.

Several of the most successful malls in the UAE are located in Dubai. Colin Beaton, managing director at Watt International, a retail design and strategy consultancy, said in an interview: "Dubai has been positioned as a retail destination [through] extensive global marketing and brand-building programmes surrounding local shopping events.

No duties

"[This] is supported by a strong value proposition [like no duties and taxes]. ...Dubai offers consumers a remarkable breadth of local and international brands located in compelling retail environments."

Samira Yousuf, a university student, spends most of her free time shopping. "I love the malls here. The shops have all the new clothes and they are always in style."

The variety of options a shopper has in the malls, such as cinemas, a supermarket and restaurants, make Yousuf feel like it is an all-in-one package.

"I do not need to go to different places to do all my chores," she added.

Surma Sarkar, another shopaholic, admires the UAE mall design and architecture and feels that they are lively, especially during shopping festivals and religious events.

Sarkar, an Indian national residing in Abu Dhabi, said that the malls "always have a fun vibe to them which makes me happy every time I enter".

Attractions such as indoor rain and the skiing area in Abu Dhabi Marina Mall are what Sarkar thinks make malls in the UAE unique.

What Lionel Gonzaga, a web designer, finds interesting about malls here is the healthy competition they generate.

"It is good because they always strive to provide a better service, design and facilities."

Gonzaga, a Filipino national residing in Sharjah, loves the kiosks scattered around the malls, as it gives the malls a market feel.

Gonzaga also uses the wireless internet that most malls provide. Whenever my internet stops working, I go to the nearby mall and use the Wi-Fi service on my laptop, he said.

To keep the retail industry growing, developers are constantly working on bigger and more complex shopping malls.

Growth in demand

A study by Colliers International indicated that the number of new malls expected to open in the UAE is well in line with the growth in demand.

The study revealed that over 70 per cent of shopping malls that were expected to open between 2008 and 2010 are already pre-let, suggesting that retailers remain bullish on the coming years. The challenge is to convert visits into sales.

"Certainly, 2009 and early 2010 will be a stress test for a lot of retailers: this will differentiate the great ones from not so great ones. I believe the competitive landscape will change like never before," said Piyush Mathur, Managing Director, AC Nielsen, MENAP Region during a phone interview.

In the meantime, according to Eisa Adam Ebrahim, general manager of BurJuman, it pays for retailers to get creative and work together.

He suggested improving the price range, constantly updating products and focusing on key strengths of the local retail industry, which includes a traditionally strong market base among tourists.

According to the Colliers International study, the tourism market accounts for 21 per cent of Dubai's retail spending, increasing to over 40 per cent in the new destination shopping malls. Accordingly, smaller, older malls may need to reposition themselves to appeal to niche markets.
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

New cruise terminal to boost Dubai tourism

DUBAI - The city’s new cruise terminal in Port Rashid is set to open in the coming month, meaning the project is well on schedule.
Talking to ‘Gulf News’ in an interview on January 18, Hamad Bin Mejren, executive director of business tourism at the Dubai Department of Tourism and Commerce Marketing (DTCM), said the new terminal will give “a big boost to the cruise tourism segment” and will “create awareness for Dubai as one of the best cruise destinations in the region”.

Though a definite launch date has still not been set, the opening could possibly coincide with the naming of the new cruise ship Costa Deliziosa by Costa Cruises on February 23.

The ship will be sailing around the Gulf from March and is expected to increase the number of cruise tourists visiting Dubai by 40 per cent, according to Costa Cruises. “We hope that the opening of the terminal can take place on that occasion, but I cannot confirm,” Bin Mejren said.

The cruise terminal is already used by three major cruise companies, Costa Cruises, Aida Cruises and Royal Caribbean.

“In the near future, we expect other important cruise operators using the new terminal,” Bin Mejren said. This year, the number of cruise tourists is expected to rise to 325,000 from 250,000 in 2009.

“By 2015, we look forward to having 575,000 cruise tourists visiting Dubai,” Bin Mejren said. This year, Dubai will be hosting 120 ships. By 2015, the number of ship calls is expected to rise to 195 annually.

The new terminal spans 3,450 square metres and is designed to handle four ships simultaneously and cater to the increased number of cruise ship calls.

Technically, it is run by DP World, says Lawrie Pattison, head of marketing at DP World. “We are managing the port from a marina perspective. All the cargo operations have already been moved from Port Rashid to Jebel Ali,” Pattison told Gulf News.

The facade of the new terminal building is based on contemporary Arabic design. Traditional domes, arches and carvings are the major architectural elements that constitute the exterior facades.

The terminal provides a tourist support infrastructure which includes facilities like money exchange, ATMs, a post office, a duty free shop, souvenir shops, and a business centre with Wi-Fi and cable internet access as well as a VIP section.

The DTCM has set up information counters in the cruise terminal which are manned round the clock. Passengers are provided with free maps and other information about Dubai.

In addition, the terminal houses offices for representatives of government bodies such as immigration, customs and police.
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

india will not effectedbecouse we have other type of economy
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

kanwar.chhabra said:
article on same topic

DUBAI DOLDRUMS
CAUGHT IN DESERTED STORM
DREAMS TURN TO DUST: BUT IMPACT ON REST OF WORLD TO BE LIMITED
The sands continue to shift below Dubai’s feet, sending ripples across world markets, but investors are keeping their faith in sturdier economies like India
TEAM ET


WORLD markets were on their way to regaining their recentlyacquired composure as fears that the knock-on effect of the financial crisis in Dubai would lead to a double-dip global recession abated.
In India, policymakers did not appear too concerned about the impact of Dubai’s troubles on the economy and the benchmark Sensex of the Bombay Stock Exchange pared early losses to close 1.2% lower.
Emerging markets, which have been outperforming over the past few months, bore the brunt of the sell-off, but major European stock indices rose on Friday. The Morgan Stanley Emerging Markets Index fell by 2.7% and the rupee, the Russian ruble and the South Korean won slid while the S&P 500 in the US recovered from opening 2.1% lower to trade 1.72% down at 12 am IST.
The sell-off in stocks, commodities and currencies was triggered after Dubai World, a government investment company with $59 billion in liabilities, sought on Wednesday to delay repayment of much of its debt even as Russia set final terms for settling the last of the Soviet Union’s trade debt obligations after its 1998 default.
The sell-off may be a much-needed correction after asset prices rallied substantially this year as central banks and governments opened the money supply tap to pull the world out of the worst recession since the 1930s.
“We’re bound to see a rise in risk aversion,” said Arnab Das of Roubini Global Economics, whose founder Nouriel Roubini predicts a double-dip recession where the economy, after recovering from the depths, contracts again as economic stimulus effects fade away.
“The Dubai situation signifies that although the major central banks around the world have stabilised the financial system, they can’t make all the excesses simply disappear. We still have to work out those balance-sheet stresses. The recovery is proceeding, but significant challenges still lie ahead.”
Mark Mobius, executive chairman of Templeton Asset Management, told Bloomberg News that the Dubai crisis may be the trigger to allow for the market to take a rest and pull back. “If Dubai has to default, that could start a wave of defaults in other areas,” he added.
European banks with exposure to the Middle East were badly hit, with HSBC Holdings falling 7.6% and Standard Chartered Bank crashing 7.5% on fears they may be holding a substantial portion of the debt owed by Dubai.
British banks have the most loans outstanding to the United Arab Emirates in Europe, constituting $49.5 billion of a total of $87.3 billion extended by the continent’s lenders to the Gulf country as of June 2009, Royal Bank of Scotland Group said in a research report on Friday, citing Bank for International Settlements.
The S&P GSCI index of 24 commodities fell as much as 4.2%, spot gold lost as much as 4.2% from its record highs of Thursday. RBI cautions against knee-jerk reactions
BUT policymakers and Indian companies, which have operations in the Emirate, believe the impact may not be much even as British football stars David Beckham, Michael Owen and Hollywood couple Brad Pitt-Angelina Jolie stare at losses from investing in Dubai’s Palm Jumeirah, the best-marketed property in the world in recent years.
The potential loss numbers pale in comparison to the $2.8 trillion in writedowns the International Monetary Fund estimates US and European lenders will have made between 2007 and 2010 as a result of the global credit crisis.
Reserve Bank of India governor D Subbarao cautioned against knee-jerk reactions while finance secretary Ashok Chawla was sanguine about the effect of the Dubai crisis on remittances from expat workers. “On Dubai alone, I want to say, that we should not react to instant news like this,” Mr Subbarao remarked. “One lesson of the crisis is that we must study the developments and I think we must measure the extent of the problem there and how it might impact India.”
Mr Chawla said remittances from expats didn’t suffer during the period when the global economic crisis was on and it is “somewhat unlikely” that it will now.
India has one of the largest populations working in the Middle East, especially Dubai. India’s exports to the UAE rose 53% last fiscal to $23.92 billion, but much of it was transit trade. Construction companies L&T, Punj Lloyd, engineering company Voltas, Bank of Baroda, ICICI Bank and a host of Indian companies with businesses in the Emirates recovered from the lows of the day after dispelling fears that their business is not intricately linked to Dubai World.
“There is no material non-India link exposure to Dubai corporates,” said ICICI Bank. “We do not have any exposure to Dubai,” said Punj Lloyd. But Indian companies where the Dubai government, or its associates have invested may face some uncertainties, said analysts.
Istithmar, the investment of the government of Dubai has a stake in low-cost carrier SpiceJet and DP World, which may get ring-fenced from the crisis, handles nearly 40% of the container traffic in India through various port, including the Jawaharlal Nehru Port Trust and in Chennai.
“Not aware of change in Dubai’s Istithmar investment strategy,” said SpiceJet.
Some believe that the crisis may be blown out of proportion since the numbers are insignificant compared with the recent global credit crisis.
“Simply the market is over-reacting to a corporate entity that is attempting to restructure its liabilities,” said Adrian Mowat, MD & chief Asian and Emerging Market Equity Strategist at JPMorgan based in Hong Kong. “The combination of limited information on the debt moratorium and thin trading volumes due to the Thanksgiving holiday amplified the correction. This is not the start of a wave of defaults.”
Also, the wealthy neighbourhood emirate Abu Dhabi may step in to save Dubai as it had done in the past.
“At the end of the day, people like us were aware that they were overspending, we were aware that the debts were huge, but we always felt that at the end of the day, Abu Dhabi will come to the rescue and things would be OK, even though the debt levels are so high,” said Mr Mobius.
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Re: cought in deserted storm, impact of dubai economy in india and other countries

Many people are still losing there jobs in U.A.E but the situation's are improving gradually!!
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

Etisalat Has $2.7b Cash Reserves
(Reuters)
24 February 2010
DUBAI — Emirates Telecommunications Corporation (Etisalat) has cash reserves of about Dh10 billion ($2.7 billion) as it prepares for a major overseas expansion drive in 2010, its chairman said on Tuesday.
“We have approximately 9-10 billion dirhams,” said Mohammad Omran in remarks carried on Al Arabiya TV. Etisalat said on Monday it was close to buying a majority stake in Iraq’s Korek Telecom in a bid to double its revenues from overseas operations in three years. The company said on February 18 there were six markets in the Middle East and North Africa that it was investigating for both acquisitions or new licences. The six markets included Algeria and Libya, Omran said. —
 
Re: cought in deserted storm, impact of dubai economy in india and other countries

NEED HELP ON INVESTMENT BANKING PROJECT.
PLs Send me some information or project as soon as possible
 
it won't cause any adverse effect on world economy as the nation entirely depends on tourism and infrastructure. unlike US, where most of the companies were our sourced to other nations, the effect was huge when US hit by recession....
 
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