UAE

India/UAE Trade: $115 billion Bet

There are only few pockets of growth available post-Covid. India and UAE can count themselves among these pockets. Both countries have hitherto restricted their trade and investments to normal levels. However, in recent meetings the trade ministers of both countries have set up ambitious targets to take this engagement to next level. For example, the total trade (meaning exports +Imports) dropped by 30% in 2020 due to Covid and is now placed at $42 billion. The aim is to take...

Economic Impact of Dubai Expo 2020

Dubai Expo 2020 will have an impact on the economy through the infrastructure valued at more than USD 12 billion (versus USD 7.5 billion estimate in 2013) that is being spent to successfully build Expo 2020’s establishment. The event was postponed by a year to October 2021 in view of the Covid-19 pandemic. Dubai Expo 2020 will be the first world expo to be held in the Middle East, North Africa, and South Asia region. Expo 2020 will leverage the...

Profits at UAE’s major lenders reached USD 4 billion in H1 2021

Profits at the four largest UAE banks rose during the first half of 2021 after an improvement in the operating environment led to lower loan-loss provisions, rise in non-interest income and improvement in operating efficiency. The combined net profit of four major banks, First Abu Dhabi Bank (FAB), Emirates NBD (ENBD), Abu Dhabi Commercial Bank (ADCB), and Dubai Islamic Bank (DIB) reached USD 4 billion in H1 2021, up 17% from the same period last year. The four big banks...

UAE’s 100% foreign ownership will boost investor confidence, cut cost of operations

The UAE’s announcement of 100 per cent foreign ownership across the board effective June 1, is touted as game changing and a master stroke. This was the biggest demand from various business councils for decades. The current system requires 51 per cent local sponsorship along with majority representation in the board with the Chair being Emirati. In a country where more than 80 per cent of the population are expats and where the economy is fairly better diversified than their...

The Fintech Race between UAE and Bahrain

Bahrain, with the launch of dedicated FinTech Hub in Feb 2018 (Zawya), become the second country in the MENA region to have exclusive FinTech infrastructure followed by UAE. UAE is considered to be the leading hub for FinTech in the region (The National 2017), continuing boosting innovation and collaboration. UAE developed region’s first regulatory sandbox allowing new products to be tested for two years without full regulatory compliance.  FinTech in both the countries is in different stages where service domains...

How Inflationary is VAT in the GCC?

The residents of Saudi Arabia and the UAE, who had long enjoyed a tax-free existence, were finally subject to a Value Added Tax of 5% on goods and services, from Jan 1st 2018. The introduction of VAT, which is seen as one of the biggest policy shifts in recent times across the region, is expected to bring in additional revenue to the respective governments. VAT being a consumption based tax, will have implications on customer spending as well as inflation....

Autonomous Vehicles – How will they transform the GCC Real Estate Sector?

The transport industry is on the cusp of another major breakthrough as Autonomous vehicles are expected not only to revolutionize the way we travel, but also the way we live. Billions of dollars have already been invested in pioneering the technology as well as equipping infrastructure to support it. Going by the trends, self-driven cars may soon be a common sight on roads in the near future. This disruptive change, which is expected to be a milestone for the auto...

Who should worry most about VAT in the UAE?

The article originally appeared in The National | Business. By January 1, 2018, it is expected that value added tax (VAT) will be applied at a rate of 5 per cent on most goods and services in the UAE and wider GCC region. The GCC governments will face a combined fiscal deficit of about US$350 billion over the next five years, according to the IMF, which bases its estimate on an oil price of $56 per barrel. This means that...

Why UAE interest rates are more negative than they appear

The article originally appeared in The National | Business Banks in the UAE pay 1.25 per cent on time deposits with a maturity of one year. While this may look measly, two things matter for consideration here. First, interest rates are still positive in the UAE, unlike Europe where they turned negative. (Yes, some European banks demand interest from depositors.) Second, while the interest received by UAE depositors is positive, this is technically termed as nominal rate. When adjusted for...

These stocks in UAE and Saudi Arabia still trade above 5-year PE despite market fall

According to an analysis by Marmore MENA Intelligence (www.marmoremena.com), a research house specialized in MENA economies and business issues with the focus on providing actionable solutions, out of a total of 121 UAE-listed stocks (comprising of ADX’s 65, Nasdaq Dubai&rsquo's 5 and DFM’s 52), 12 stocks are trading at multiples that are higher than their 5-year average PE multiples, which includes stocks such as Etisalat, du, Aramex, Commercial Bank of Dubai and RAK ceramics, among others. Likewise, out of 173...