UAE Chronicle

Clear roadmap for currency union by September

2008-06-13T14:04:00.001+04:00

UAE Central Bank Governor Sultan Nasser Al Suweidi said the draft agreement by GCC central bank governors on the creation of a monetary authority by 2009 and an eventual currency union is almost final except for some minor errors, ...

But a clear picture about the roadmap would emerge by September this year at a crucial meeting in Jeddah.

Speaking to the media on the sidelines of a meeting of the national anti-money laundering committee in Dubai, Suweidi said the draft agreement would be presented to GCC finance ministers at the Jeddah meeting.

'I can give you all the details in September after the meeting,' he said when asked about the location of the headquarters of the new regional monetary authority and the timeframe for the currency union, which was originally scheduled to be in force by 2010. However, following the Doha meeting of the governors last week, some conflicting statements sparked scepticism about meeting the common currency deadline.

The UAE Central Bank governor, reaffirming UAE's stance to continue with the dollar peg, also ruled out any possible revaluation of the dirham, a much debated issue in the backdrop of the country's soaring inflation stoked by a weakening currency. Dollar pegs restrict Central Bank's ability to fight inflation by forcing it to shadow US monetary policy of cutting interest rates instead of raising it to stem inflationary trends.

He said the Central Bank is not involved with a probe into bribery allegations against a former vice-president of Dubai Islamic Bank and others.

The governor urged banks in the UAE to report suspicious bank account movements in the wake of a series of financial scandals in the country.

He said the money laundering law ,which came into existence in January 2002, has been effective with the cooperation and 100 per cent compliance by the local financial institutions. 'All banks are abiding by the law and we see a success rate of almost 80 per cent in fighting this crime.'

The law, which defines money laundering offence as any act involving transfer, conversion or deposit, or concealment or disguise of property derived from various offences, has brought the UAE in league with the first group of countries in the world to have a special law that deals exclusively with money laundering offences, in keeping with the country's distinctive position as a leading trade and banking centre in the region. The law prescribes penalties for perpetrators of offences relating to money laundering, as well as for those who assist perpetrators and those who know but fail to report such offences. While authorising the Central Bank to freeze dubious assets for up to one week, the law confers unlimited powers to judiciary to freeze any asset proven to have been derived from money laundering activities.

Following the meeting, members of the National Anti-Money Laundering Committee visited Lieutenant General Dhahi Khalfan Tamim, Dubai Police Chief, at his office in appreciation of Dubai Police role in combating money laundering and terrorist financing.
/WAM/

UAE needs to earn only $32.4 per barrel to balance budget

2008-06-05T16:43:00.000+04:00

The UAE, the most diversified economy in the region, needs to earn $32.40 per barrel — less than one-third of the current crude price — to balance its budget, according to the EFG-Hermes Holding.

Egypt's largest investment bank said in an e-mailed research report that the world's largest oil exporter Saudi Arabia, on the other hand, needs to earn $54 per barrel of oil in 2008 to balance its budget while Kuwait needs $45.70. The report underscores UAE's economic diversification and steadily decreasing dependence on oil revenues meet its budgetary requirements, analysts said.

Gulf states may post record fiscal surpluses this year after crude oil increased more than 90 per cent in the past 12 months to $127 a barrel today. The six states in the Gulf Cooperation Council own about 40 per cent of the world's proven oil reserves.

''This provides the GCC countries with a huge safety net to continue to spend, even if oil prices weaken,'' said Monica Malik, chief economist at EFG, in the research note. ''We believe that as long as oil prices are between $55 and $60 per barrel the expansionary stance of the GCC countries will continue.''

According to International Monetary Fund (IMF), the GCC is enjoying unprecedented balance of payments surpluses and record foreign direct investment flows. The size of the GCC economies expanded to more than $800 billion million in 2007. Gross domestic product per capita rose above $20,000 for the GCC as a whole. In Qatar it rose above $70,000, while in the UAE the figure rose above $40,000. "Strong growth, coupled with an inflation rate above 7 per cent on average, is expected across the GCC in 2008," it said.

IMF figures show that the GCC current account surplus rose to $225 billion in 2007 compared with about $200 billion in 2006. This was the third consecutive year that the surplus was more than 25 per cent of GDP and it has raised the total surplus over the last five years to $750 billion.

EFG-Hermes research said large budget surpluses make it difficult for Gulf states to curtail spending to help slow inflation, which has quickened to records across the region. Kuwait became the fourth Gulf states to report an inflation rate above 10 per cent, while Qatar reported price-growth of 14.8 per cent.

Spending will increase 28.9 percent in the UAE. this year, 25.6 per cent in Qatar and 7.1 percent in Saudi Arabia, the EFG report said.

The six GCC states control as much as $1.5 trillion of assets through their sovereign wealth funds, about half the $2.9 trillion global total, according to the International Monetary Fund. Such funds may grow to $12 trillion by 2012, the IMF said.

The funds have invested at least $59 billion in the past year to shore up the balance sheets of Wall Street banks, including Citigroup Inc. and Merrill Lynch & Co., prompting calls from the US Congress for more openness.
/Khaleej Times/

Sheikh Nasser bin Zayed dies

2008-06-03T20:18:00.000+04:00

President HH Sheikh Khalifa bin Zayed Al Nahyan today announced the death of Sheikh Nasser bin Zayed Al Nahyan, who died last night when a helicopter carrying him and his colleagues crashed into the Arabian Gulf.

Sheikh Nasser was the brother of President HH Sheikh Khalifa bin Zayed.

The Ministry of Presidential Affairs announced three days official mourning.During this period, flags shall fly at half-mast.

Funeral prayers for Sheikh Nasser and his colleagues will be performed at the Sheikh Sultan bin Zayed Mosque in Al Bateen.

President HH Sheikh Khalifa will receive condolences at his Mushrif Palace after the funeral service.
/WAM/

UAE and Greece initial double taxation avoidance deal

2008-06-03T20:16:00.000+04:00

United Arab Emirates and Greece initialled on Tuesday a draft treaty for the avoidance of double taxation on income.

The agreement was reached at the end of the first round of negotiations that started in Athena earlier in May. The next round will be held in UAE in September.

The two sides have reached a deal to continue to avoid taxation levied on air transportation by national carriers of both countries.

/WAM/

Healthcare market size to touch $12b by 2015

2008-06-01T11:25:00.001+04:00

The total healthcare market in the UAE is expected to touch $12 billion by 2015 from the current $3 billion and wellness products will have a salient role to play in this growth market," a senior company official said.

"Over the years, the UAE has witnessed significant expansion in health care and wellness facilities, which in turn has positively catalysed the appeal for healthy living. Also the potential for growth has exponentially increased with the emirate emerging as a destination for health care and wellness," Dr Zeyad Al Moosa, managing director of Gulf Med FZE, the wholly-owned subsidiary of Gulf Drug Establishment (GDE), told The Business Weekly.

GDE, owned by Dr Hasan Al Moosa family, has been in the healthcare market in the UAE for over 40 years and is today a major player which represents over 80 major multi national companies. Dr Zeyad was speaking to TBW on the sidelines of a ceremony marking Gulf Med's partnering with the US-based HoMedics, global leader in personal wellness solutions, to cater to the increasing demand for affordable personal health care and wellness products in the region. "According to our studies, the market for wellness products is growing in the UAE. However, our aim is to exploit the potential and develop the market more by increasing the awareness on this area of health care. Gulf Med will not only look at increasing the market share but also to influence the consumer towards improving the quality of life," he added.

Under the terms of the partnership, Gulf Med will be the sole distributors for HoMedics products for the UAE, Qatar, Oman, Bahrain and Jordan. For HoMedics, the partnership offers a debut foray into the Middle East market where health care market is growing at a rapid pace

"Personal wellness market is a relatively new category in the Middle East health care sector, but with the rise in disposable incomes, increase in population and a fast emerging health and wellness conscious lifestyle, the demand for personal wellness products and solutions is set to grow exponentially in the coming years," Dr Zeyad said.

Elaborating on the partnership, he said that initially Gulf Med will focus on the UAE market, which is the second largest health care market after Saudi Arabia, and develop other GCC markets in the second phase.

Gulf Med had done soft marketing and road shows of HoMedics products in the UAE in partnership with leading pharmaceutical/ retail outlets and the results have been extremely encouraging.

"Significantly, the idea of personal wellness has trickled down from the rich to middle-income segments of the population, expanding the market further. In this context our partnership with HoMedics will enable us to offer affordable, easy-to-use, personal wellness products which can be used at home (or office) with minimum time investment and is a significant opportunity to contribute to healthy living," Dr Zeyad said.

Commenting on the partnership with Gulf Med, Stuart Burrows, the international sales manager of HoMedics said the Middle East now offers a robust market for health care and wellness products compared to a few years ago with increased spending power.

/The Business Weekly/

Finance consultants in UAE to be regulated

2008-05-25T14:22:00.001+04:00

It is a tough year for investors. Fund information provider Lipper has just reported that the majority of Gulf equity funds were down in Q1 while, globally, hedge funds are in negative territory.

Good news then that the Emirates Securities and Commodities Authority (ESCA) has decided to certify local financial consultants and introduce a degree of regulation to protect investors.

Regulations issued this week require all financial analysts and market consultants to be accredited by the ESCA before offering their services, and there is a four month grace period for consultants to register.

This summer crackdown on financial consultants seems remarkably similar to the assault on the Dubai real estate sector which began last July with the creation of the Real Estate Regulatory Authority and its implementation of trust accounts for new off-plan property developments.

The new ESCA rules state that financial advisors must be licensed by the authority in addition to working for a firm that is licensed by the agency.

In order to be licensed, firms providing forecasts and analysis will have to be 51% owned by a UAE or GCC national with a paid up capital of Dhs1 million while the authority will also license international firms.

Unregulated sector
Some local investors may be shocked to find how loose the regulation of the financial consultancy sector has been in the past. And the new rules are a step forward but not a final solution.

There much more remains to be done to clean-up this unregulated sector where anybody can pass themselves off as an expert adviser.

Under the new rules, in order for an individual to now qualify as a head of research they will have to have a relevant and recognised university degree and five years of experience. An analyst will need the same degree and three years on the job.

Additionally, these individuals will not be allowed to trade in any share for one week prior to issuing the note, and they are required to document their advice notes for possible inspection. Licenses will be renewable annually.

This is not exactly an onerous regulatory structure, and UAE investors should still be wary of firms brandishing their new licenses.

There is absolutely no guarantee of performance or a requirement to explain fee structures fully.

High fee levels
The devil is usually in the detail as far as offshore financial consultants are concerned. Fees within fees and no guarantee of performance, these parameters give any financial concern the room to quite legitimately deprive investors of their money.

Visiting financial consultants from more highly regulated jurisdictions often remark on the high levels of fees paid in offshore jurisdictions like the UAE.

Indeed, some even argue that it would be cheaper to pay tax and keep fees lower in the long-run by investing onshore.

However, any measure designed to promote greater transparency and a degree of regulation in this sector is to be applauded. But ESCA is only just beginning its work if it wants to build a world-class market for personal investment in the UAE, and take the cowboys out of the market.

UAE will remain strong proponent of Palestinian Cause

2008-05-21T23:44:00.000+04:00

The UAE will spare no effort to offer all possible assistance to make the Palestine Investment Conference achieve its aspired goals and live up to expectations of the Palestinian people, UAE Deputy Prime Minister affirmed Wednesday.

''The attendance of the UAE in this conference underlines the unequivocal support of the leadership, government and people of the UAE for the Palestinian Cause at all Arab, regional and international gatherings,'' HH Sheikh Hamdan bin Zayed Al Nahyan said an address before the conference which opened here today.

''The UAE leadership and people have been following the situation in the land of Palestine and the humanitarian suffering of the people of Palestine has occupied a considerable space in the thinking and policies of the UAE leadership which has spared no effort in mobilising its resources to stand behind the Palestinian people and rallying energies to enable them overcome the difficult situation they face,'' Sheikh Hamdan said in his speech which read on his behalf by HH Sheikh Mohammed bin Hamdan bin Zayed Al Nahyan, head of the UAE delegation to the international investment meeting.

He recalled that for this reason initiatives launched by the late Sheikh Zayed bin Sultan Al Nahyan had lent the humanitarian suffering of the Palestinian people due care with the intention of preserving their dignity and easing their aggravating suffering.

''The UAE has been supporting Palestine and its people and will continue to do so under the stewardship of President His Highness Sheikh Khalifa bin Zayed Al Nahyan,'' he maintained.

As President of the UAE Red Crescent Society, Sheikh Hamdan explained that the UAE has over the past decades channelled its assistance into sectors of housing, education and health. According to him, major development and construction projects carried out by the UAE spread all over the cities and towns of the Gaza Strip and West Bank to include for example the rebuilding of Jenin camp, the Sheikh Zayed District in the holy city of Al Quds, the UAE Residential Quarter in Rafah, the Sheikh Zayed City in Beit Lahiya, Rafah Hospital, Sheikha Salama bint Butti Eye hospital in Nablus, in addition to aid to local economy through purchasing materials and supplies from the local market.

''The conference is being convened in a time when the Palestinian economy and scene are in desperate need. We hope this gathering would produce more strategic partnerships through which ambitions of the Palestinian people are achieved, their suffering are eased and their living is improved and their dignity are preserved,'' he continued.

The three-day conference will serve as a platform to showcase promising investment opportunities in a variety of economic sectors in Palestine.
/WAM/

UAE and UK to cooperate on nuclear energy

2008-05-17T21:51:00.002+04:00

UAE. The United Arab Emirates and the United Kingdom have signed a Memorandum of Understanding (MoU) regarding their cooperation in peaceful uses of nuclear energy.

UAE Minister of Foreign Trade, HE Sheikha Lubna bint Khalid Al Qasimi, and the UK Minister of State for Trade and Investment, Digby, Lord Jones of Birmingham signed the MoU at a ceremony, which was attended by officials from both countries.

The MOU establishes a framework, through which the two nations may cooperate in the further development of the UAE's civilian nuclear infrastructure to enhance safety and support the efforts of the international community to prevent nuclear proliferation. It further contemplates training and other knowledge-sharing arrangements in various peaceful applications of nuclear energy, including the generation of electricity, nuclear medicine and agriculture.

The signing of the UAE-UK MOU follows the public launch by the United Arab Emirates of a detailed policy document on the evaluation and potential development of peaceful nuclear energy within the UAE. The UAE policy is based on the principles of complete operational transparency and the highest standards of safety, security and non-proliferation.

It also contains a number of commitments and strategies designed to ensure that these principles would be upheld by any UAE domestic nuclear program, including a pledge to forego any domestic enrichment or reprocessing capability in favour of long-term external fuel supply arrangements. Additionally the UAE policy calls for close and continuous coordination with the IAEA, as well as cooperation with the governments and firms of responsible nuclear supplier nations.

Commenting on the MOU, Sheikha Lubna said: "The Memorandum of Understanding creates an excellent platform for the UAE to benefit from the high level of technical competence and experience possessed by the United Kingdom in the area of peaceful nuclear energy. It also provides a new avenue for deepening this long-standing and important bilateral relationship".

Lord Jones of Birmingham said: "I am delighted to sign this important agreement. It opens the way to a new and exciting chapter in the active practical cooperation between our two countries, and epitomises the forward-looking agenda we share".

"We welcome the United Arab Emirates' responsible approach to developing a civil nuclear programme and the UAE Government's commitment to maximising security, confidence and transparency, including non-domestic enrichment or reprocessing capability policies and strategies. The UAE White Paper's proposal of a light water reactor programme backed by multiple non-proliferation commitments would make it an excellent model for countries with or considering developing a civil nuclear programme"; the British Minister of State added.

Asserting that nuclear power can make a real contribution to meeting UK's commitments to transition to a low carbon economy whilst enhancing energy security, the Minister pledged his country's support to the development of safe, secure, and economically viable civil nuclear power generation and research programmes.

"Over many years the UK has developed a wealth of expertise and experience on civil nuclear business, on which the UAE will be most welcome to draw; and I hope that we can learn from each other as we develop our respective civil nuclear programmes. Signature of the MOU has been an important first step, and the UK looks forward to working closely with the UAE on these crucially important issues in the months and years ahead"; the Minister added.

He welcomed the UAE's intention to adopt relevant international agreements, including the Additional Protocol, and their determination to ensure the safety and security of nuclear material throughout the process.

The signing ceremony was attended by Director General of Ministry of Foreign Trade Abdullah bin Ahmed Al Saleh, UAE's Foreign Ministry officials, the delegation accompanying British Minister of State for Trade and Investment and the British Ambassador to UAE Edward Anthony Oakden.
/Business Intelligence Middle East/

UAE Telecom Sector Celebrates 'World Telecom '&' Information Society Day'

2008-05-17T21:27:00.001+04:00

The UAE Telecommunications Regulatory Authority (TRA) announced today that the UAE Telecom Sector represented by 'Etisalat', 'du', 'YahSat' and the TRA, has contributed with AED 8 million to support the Social Responsibility Fund (SRF) of the UAE Ministry of Social Affairs to implement the initiative of 'The Echo of Silence'.

This initiative is to celebrate the World Telecommunications and Information Society Day that takes place on the 17th of May of each year as per the calendar of the International Telecommunication Union (ITU). This year's celebration is held under the theme: "Connecting People with Special Needs with the ICT Means".

All Telecom Sector institutes and corporations decided to work together as one, with one voice, to launch 'The Echo of Silence' that aims to connect people with special needs with the communications means to be able to communicate with the society productively.

This initiatives copes with this years theme that aims to support people with special needs by providing modern and technological services to meet their needs; along with bridging the digital gap; ensuring the provision of advanced technologies to guarantee ease at work and the possibility to communicate with others; to be able to serve the community; to encourage decision-makers, regulators and operators in the telecom sector to support people with special needs through the adoption of policies and strategies that will take their issue into consideration; and the implementation of initiatives as well as activities, which are related to ICT, to achieve development and equality within the community.

In this respect, H.E. Mariam Khalfan Al Roumi, UAE Minister for Social Affairs, stated: "The main goal of the Ministry of Social Affairs is strengthening the principle of integration with the Telecom Sector in development projects and social welfare, where the Social Responsibility Fund (SRF) is one of the mechanisms of that important strategic objective." "Community integration with the private sector represents the concept of social solidarity, which in turn results in the development of the society. Hence, we highly appreciate this generous donation from the UAE Telecom Sector to the SRF, and hope to expand this strategic integration to become an example in the field of Corporate Social Responsibility (CSR)," she added.

Minister Al Roumi continued: "The Ministry of Social Affairs encourages the Telecom Sector initiatives in development and social welfare, where these kinds of initiatives are vital and powerful incentives for others, and contribute significantly to the spread of the concept of integration.

We heavily depend on the role of the Telecom Sector and are proud to have this year celebration theme dedicated to provide services and communications means to people with special needs, which genuinely reflects the care of the Telecom Sector towards the less fortunate and the needy." "We reiterate our thanks and gratitude to the UAE Telecom Sector for its supportive role," she concluded.

In his turn, H.E. Mohamed Al Ghanim, TRA Board Member '&' Director General, stated: "We must give equal opportunities to all members of society, including those with special needs, in order to use and participate effectively in the digital age and make use of modern technologies to keep pace with the development process and advancement.

The TRA has prioritized the importance of contributing as much as possible by implementing appropriate plans and supporting proposals and providing the necessary equipments to serve the requirements of people with special needs, because we are convinced of the important role that they are playing by contributing their ideas, work and their aspirations to serve the society. However, I would like to express the TRA deepest appreciation to 'Etisalat', 'du' and 'YahSat', for their generous and continuous contributions in supporting all what would lead to serving the UAE society, where they have proven that CSR is within their strategic priorities. Therefore, a collective team from those three companies, the TRA and the SRF, will be formulated to follow-up the implementation of The Echo of Silence." Mohammed Khalfan Al Qamzi, CEO of 'Etisalat', said: "Etisalat is committed since its start to launching and supporting initiatives to enable the development of local communities and remains one of the leading national companies supporting the non-profit organizations. "Etisalat vision is of a world where people's reach is not limited by matter or distance. This is true for people with special needs as it is for anyone else, Etisalat is proud to bring innovations to help integrate all members of society and being true to its values performing as a caring company and one that actively help people reach their goals." Osman Sultan, CEO of du, said: "On behalf of everyone at du, I would like to congratulate the TRA on this timely and apt initiative. World Communication and Information Society Day is one that is of particular relevance to us and we are honored to be given the opportunity to contribute to the Special Needs Empowerment Fund. This is a move that is perfectly in line with du Commitment to CSR and building the community, especially since it uses communication as an enabling tool. It is the duty of the private sector to support the government in efforts such as these and du will certainly continue to contribute to the special needs community through various means." Jassem Mohamed Al Zaabi, CEO of YahSat, said: "We are more than happy to support the TRA initiative to provide communications services for the people with special needs in the UAE, this is a contribution and commitment from YahSat towards the community. YahSat truly believes that an integrated community leads to harmony, which is the road for a healthy and productive society. Hence, it is within our main objective to back this initiative that does not only contribute to the comfort of the people of special needs, but also ends up with the development of the UAE socioeconomic prosperity." This event, however, is considered the first initiative that includes all telecom stakeholders in the UAE within a framework that overcomes commercial interests, with a unified approach in the name of a unified sector, to serve the UAE society.

Finally, the Secretariat General of the ITU has urged the States Members to plan for a global meeting to come out with developed strategies, and present reports as well as exchange experiences and best practices to meet the requirements of people with special needs through the use of the latest technologies regarding communications and information technology, and setting accurate statistics on the number of persons with special needs to be trained and integrated in the working force and encourage them to use their innovations and creativity in order to contribute to their communities; and creating awareness among members of society to raise the importance and effectiveness of the role of people with special needs in contributing to the society, and the vital role of the media to highlight this cause.
/WAM/

UAE joins UNESCO's ICCROM

2008-05-12T07:04:00.000+04:00

Abu Dhabi, May 11th, 2008 (WAM) - The United Arab Emirates has agreed to join the International Centre for the Study of the Preservation and Restoration of Cultural Property (ICCROM).

This came during the regular meeting of the Ministerial Commission for Services, held here today under the chairmanship of HH Sheikh Mansour bin Zayed Al Nahyan, Minister of Presidential Affairs.

ICCRIM is an intergovernmental organization which was established by UNESCO in Rome in 1959. It occupies a unique position in being the only institution with a worldwide mandate to promote the conservation of both movable and immovable heritage in all its forms. It currently comprises over 100 Member States, as well as 103 associate members from among the world's leading conservation institutions.

The Ministerial Commission also approved membership of the National Transport Authority to the Arab Seaports Federation.

It also reviewed the annual report of the State Audit Institution.
/WAM/

UAE poised to unveil landmark gas deal

2008-04-24T11:48:00.001+04:00

Abu Dhabi is poised to seal a $10 billion project with US oil major ConocoPhillips to tap the emirate's vast natural gas reserves, the company's chief executive has said.

Jim Mulva said the deal should be announced in the "next month or two", under which Conoco would be working with Abu Dhabi National Oil Company (Adnoc), the UK's Financial Times (FT) reported on Tuesday.

Conoco is competing against the likes of Royal Dutch Shell and Occidental Petroleum for the contract, which has been under negotiation for several months, but unconfirmed reports have suggested it will win the deal, according to the newspaper.

“We’re working very hard on this project,’’ Mulva told the FT. “Hopefully there will be an announcement that we will be working together in the next month or two.’’

The gas will be used to meet soaring power demand in the UAE, which is in the midst of a massive economic boom and population explosion that is putting a strain on the Gulf state's utility infrastructure.

Demand for power in the UAE capital is expected to triple by 2015, the Abu Dhabi Water and Electricity Company (Adwec) said last month.

The emirate's peak demand currently stood at about 5,286 megawatts and was expected to surge to 8,276 megawatts in 2010 and 14,946 megawatts in 2015, Adwec said.

While in Dubai demand for power is expected to grow as much as 20% per year, according to Dubai Electricity and Water Authority (Dewa).

The UAE has the world's fifth-largest natural gas reserves, estimated at more than 200 trillion cubic feet, but has not developed them quickly enough to meet rising gas demand.

UAE’s water and electricity sector to attract $9.5b investments

2008-04-23T12:56:00.001+04:00

The water and electricity sector in the UAE is set to attract Dh35 billion ($9.5 billion) worth of investments over the next five years, prompting India’s Elecrama, the largest electricity exhibition in the East, to attract power generating companies from here.

Citing a survey done by Emirates Bank International, Elecrama said that Dubai has the greatest demand for electricity in the UAE which is growing at 14 per cent per annum while Abu Dhabi’s is expected to double over the six-year period between 2008 and 2013.

The UAE capacity for electricity would increase by 60 per cent to 26,000 megawatts in four years while its electricity demand would grow at an average annual rate of 10 per cent until 2010, it added. An exhibition of power, electrical, industrial electronics and related products, Elecrama stressed in a Press statement yesterday that the six-member GCC has the strongest energy generating markets in the world.

It said the exhibition in India, whose demand for electricity, electronic and related products is likewise skyrocketing due to high population growth and massive development projects, presents lucrative business opportunities for GCC power firms.

“Given this trend it is significant to note that many UAE companies have already confirmed participation at this year’s event,” the statement said referring to Elecrama 2008, which will be held in Mumbai on January 18.

Indian exports to the UAE involving the electrical and electronics industry have reached Dh430.4 million ($117.14 million) since last year, contributing a bulk of the electricity demand by Gulf Cooperation Council member states that is triple the global average. Elecrama has proposed a GCC-wide network of electricity, which it said would mean billions of dollars in savings due to production sharing, as member states would have an identical form of electricity.

“The grid will also enable energy exchange programmes between the GCC states and will play a major role in increasing productivity, diversifying economies and upgrade of systems,” it stressed. Source

Foreign ownership likely to be more than 70%

2008-04-23T07:30:00.001+04:00

The maximum level of foreign ownership in UAE companies could be raised to 70% or higher for certain sectors under company law changes being considered by the federal government, a government official said on Monday.

Currently foreign investors are only permitted to own a maximum of 49% of a UAE company. In certain areas of the financial sector, such as insurance, the limit on foreign ownership is as low as 25%.

Hussain Al Nowais, Abu Dhabi Council for Economic Development board member, said current UAE laws needed to be changed to meet the increasing numbers foreigners intending to invest here, UAE daily Emirates Business 24/7 reported on Tuesday.

“Many foreign companies and investors would like to invest in the UAE, and Abu Dhabi in particular. We do not mind as long as they offer added value to our economy. As for small companies or trading shops, their return to the national economy is small and their ownership rate should not be raised,” he said.

This move would allow the government to specify the rate of foreign ownership in line with the added value offered to the economy by overseas investment in specific industries, said Al Nowais who is also chairman of Al Waha Capital.

“There were proposals to push the rate of foreign ownership up from the current 49% to 51%, 60% and 70%, but some sectors might need a higher rate,” he said, quoted the newspaper.

The Ministry of Economy had put the company law forward for amendment, with a committee studying the proposals, he said.

“We have to develop our economic laws to attract private investment fund capital and benefit from the privatisation of government companies,” he said.

Full foreign ownership is allowed in the UAE, but it is restricted to free zones such as Dubai Media City (DMC), Dubai Internet City (DIC) and the Jebel Ali Free Zone.

Earlier this month UAE Minister of Economy Sultan bin Saeed Al Mansouri said the Emirates may relax foreign investment laws to allow 100% international ownership of projects, particularly in the industrial sector, adding that there was nothing to be feared from foreign investment.

UAE's Red Crescent overseas operations reach AED 52 mln in 3 months

2008-04-21T21:27:00.001+04:00

The United Arab Emirates' Red Crescent Authority (RCA) has said its overseas humanitarian and charity operations from February to March 2008 reached AED 52,1 millions (around 14,1 millions USD).

AED 16,572 million were pumped by the UAE's largest humanitarian agency into charity and development projects around the world while its relief operations reached AED 9,645 and orphan care and sponsorship programmes (in the UAE and overseas) received around AED 14 millions.

RCA has made a giant jump in providing emergency relief aid to affected areas during the said period, RCA's secretary general Dr Saleh Al-Taei' said adding that the number of beneficiaries of orphan care and sponsorship programmes was significantly increased and humanitarian support was actively mobilized for their causes.

"Thanks to the support rendered by President H.H Sheikh Khalifa bin Zayed Al Nahyan, H.H General Sheikh Mohammed bin Zayed Al Nahyan, crown prince of Abu Dhabi and deputy supreme commander of the UAE Armed Forces and H.H Sheikh Hamdan Bin Zayed, Deputy Prime Minister and RCA's President, the Authority has been able to promptly respond to humanitarian crises around the world and extend a helping hand to all those affected," he said.

RCA's humanitarian and relief operations in Iraq, occupied Palestinian Territories (oPT), Afghanistan Somalia and other drought-hit countries in the Horn of Africa accounted for a large percentage of the agency's efforts during the said period.

Other beneficiary countries where humanitarian and relief agencies received RCA's support include Yemen, Kenya, Eretria, Morocco, Djibouti, Indonesia, Tajikistan, Madagascar, Lebanon, China and Kyrgizia, Syria and Albania.

RCA, Al-Taei' added, has also provided direct financial support to the International Federation of Red Cross and Red Crescent Societies and the International Committee of the Red Cross (ICRC). WAM

Abu Dhabi to establish statistics bureau

2008-04-20T19:11:00.000+04:00

A senior official at the Abu Dhabi government announced that the government will soon launch the Abu Dhabi Statistics Bureau which will become the emirate's official source of statistical data, Gulf News reported.

The bureau will provide accurate figures for several economic indicators, including foreign investments and inflation, allowing for more transparency in the process, he later added.

The bureau will be established in coordination with the Swedish Bureau of Statistics, which has been advising the government on the matter through its experts for about six months as a strategic partner.

On another note, the UAE's Ministry of Economy reported that Abu Dhabi's inflation rate last year stood at 10.7 percent, compared to 9.3 percent in 2006. MENAFN

U.A.E. Shares Gain as Goldman Initiates Coverage on Banks

2008-04-20T19:06:00.001+04:00

United Arab Emirates shares advanced for a fourth day, led by financials as Goldman Sachs Group Inc. recommended investors buy shares of First Gulf Bank PJSC and United Arab Bank.

The Abu Dhabi Securities Market Index added 1.4 percent to 4,980.18 at 10:57 a.m. local time, bringing the four-day advance to 2.9 percent. The Dubai Financial Market General Index rose 1.9 percent.

First Gulf Bank jumped 6.2 percent to 23.1 dirhams. The Abu Dhabi-based lender controlled by the emirate's ruling family was rated ``buy'' in new coverage at Goldman Sachs with a 12-month price estimate of 31.47 dirhams.

Union National Bank climbed 7.3 percent to 8.58 dirhams. Goldman Sachs also initiated coverage of the state-controlled lender with a ``buy'' recommendation and a price estimate of 12.44 dirhams.

Emirates NBD PJSC added 2.2 percent to 11.65 dirhams, its biggest one-day gain since April 6. Goldman Sachs set a price estimate for the Gulf's biggest lender by assets of 14.91 dirhams and gave it a ``neutral'' rating. (Bloomberg)

UAE signs bilateral trade deal with Russia

2008-04-20T19:00:00.001+04:00

Russia took a step closer to joining the World Trade Organisation on Sunday when the country's finance minister signed a bilateral accession agreement with the United Arab Emirates in Abu Dhabi.
Alexei Kudrin, who leads Russia's WTO accession talks working group and is said to be outgoing-President Vladimir Putin's chief authority on economic issues, called Sunday's protocol a key achievement on the road to the WTO.
"The agreement signed here is testament to the two sides' intentions to develop and fortify bilateral cooperation in the economic sphere within a framework of the multilateral trade system," RIA news agency quoted Kudrin saying in Abu Dhabi.

Russia, the largest economy outside the WTO, has just two WTO-member countries to conclude bilateral deals with before the road to membership is clear. Kudrin's travels take him to the first of the last countries, Saudi Arabia, next week.
Ex-Soviet neighbour Georgia, which threatened to veto Moscow's WTO bid in 2006 over border control issues in two unrecognised breakaway republics, will likely remain Russia's final negotiation partner.
Kudrin last month said WTO membership would be the next major milestone in Russia's economic development after the 2006 liberalisation of capital movement, but declined to predict an accession date. (Reuters)

Gulf Maritime exhibition to begin tomorrow

2008-04-20T18:46:00.001+04:00

The sixth edition of the Gulf Maritime exhibition will begin tomorrow at Sharjah Expo Centre. The three-day event organised under the patronage of HH Sheikh Sultan bin Mohammed Al Qasimi, crown prince and deputy ruler of Sharjah will feature 80 participants from 19 countries including a number of leading companies from the global maritime industry.

The exhibition is considered as a credible and highly effective maritime trade platform that is capable of meeting the complete sourcing requirements of the commercial, government, leisure, and military maritime industry in the Middle East. WAM

UAE firms will get subsidies

2008-04-11T15:14:00.002+04:00

The Ministry of Economy's Industrial Affairs Department will support the local industries that are suffering losses due to the UAE's monetary policy, especially the pegging of the dirham to the weakening US dollar, by subsidising services, a top official said on Wednesday.

The UAE dirham lost 37 per cent of its value in the last five years, according to NCB Capital, the investment banking division of National Commercial Bank.

"This is only one of many problems facing the industrial sector in the UAE, and what we are seeking now is to find comprehensive solutions, to help these industries and harmonise the sector throughout the country," Sultan Bin Saeed Al Mansouri, Minister of Economy, said.

Many major industrialists expressed concern about the losses they incur due to the present exchange rate and its regime, which results in higher production costs.

Nevertheless, some industries that provide for a high added-value, such as aluminium sheets, seemed more comfortable with the peg.

"Of course we incur more costs in importing raw material such as iron billets, which have already doubled in price compared to the same time last year," said Husain Jassem Al Nowais, Chairman of Emirates Steel Industries.

"But we are seeking to overcome this hurdle through establishing this industry here, and hence cutting the cost by importing iron oxide pellets and processing them here," he added.

Hurdles
Other export-oriented industries, such as Abu Dhabi National Industrial Projects (ADNIP), are facing difficulty expanding into new markets.

"In addition to the more expensive cost of importing raw material in currencies other than the dollar, the relative competitive advantage that we have is only helping us in Western Europe, while the peg limits this advantage in the east, and hence ties our hands when it comes to expanding our export base," Mohammad Jawaan Al Badi, group chairman, told Gulf News.

Most industrialists agree that the introduction of the GCC common currency will help, yet some are seeking the UAE to take the initiative of revaluation.

"In Europe, Germany took the initiative and then the rest followed, someone has to start," said Sanjay Mehta, chief executive officer of Al Nasser Industrial Enterprises, as a revaluation of the dirham alone can give a competitive advantage to products from Saudi Arabia, the largest economy in the region, and hence hurt local industries.

Meanwhile, Mohammad Obaid Al Jaber, CEO of Al Jaber Group, defended the peg on grounds that revaluating the dirham at the present level will only increase the losses of the economy.

"This is happening throughout, and the UAE is better off taking such a step when the dollar is stronger," he said. Source

UAE to issue new law on Islamic finance activities

2008-04-09T15:50:00.001+04:00

The UAE plans to replace the federal law issued in 1985 with a new one establishing a higher Sharia Council to supervise Islamic finance activities in accordance with Islamic precepts, a top official said on Tuesday.

"It has been a very long time since this law was introduced, and experience has proven that the individual Sharia boards within the Islamic financial institutions are more efficient," Obaid Humaid Al Tayer, UAE Minister of State for Financial Affairs, told the Federal National Council (FNC) on Tuesday.

With the rapid expansion of Islamic banks, the UAE is becoming a centre for Islamic finance.

"Islamic banks have grown from two in 2000 to seven in 2007, and we are still considering licensing the conversion of some institutions, and only one new licence for the emirate of Ajman was issued, while the number of Islamic investment companies has grown from one in 2000 to ten in 2007.

"This shows that the sector is growing consistently," Sultan Bin Nasser Al Suwaidi, governor of the UAE Central Bank, said.

In terms of assets and liabilities, Islamic banks account for Dh170 billion of total banking assets, or 13.5 per cent, a ratio similar to that of Malaysia.

"As a central bank we would rather not interfere in the operations of Islamic banks; we only monitor errors and risks while applying internationally recognised standards, providing for periodic inspection reports, and we did not recognise any risks or wrongdoing in the activities of the Sharia boards within Islamic financial institutions," Al Suwaidi told the FNC.

Replying to a question by an FNC member, Al Tayer requested a detailed discussion on the country's monetary policy, especially pegging the dirham to the dollar at a closed session. Source

The UAE Telcom operators publish Codes of Practices

2008-04-08T17:48:00.000+04:00

The UAE telecom operators have published their Codes of Practice in accordance with the instruction of the UAE Telecommunications Regulatory Authority (TRA) to publish consumer related Codes of Practice on their websites and to make them readily available in their business centres.

The TRA is extremely pleased that UAE telecom users are among the first in the region to be able to refer to a Code of Practice.

"Serving the interests of consumers, the TRA obliges the telecom operators to comply with policies and procedures that are related to transparency and consumer welfare. Hence, the TRA has instructed the UAE telecom operators to publish consumer related Codes of Practice on their websites and to make them available in their business centres, for telecom customers to be aware of all the services that their operator provides with regards to consumer interests, such as billing method and cycle, cancellation and restoration of service policies, handling of complaints.

"In this way, customers will know their obligations and rights," said Mohamed Al Ghanim, TRA Board Member and Director General.

"Customers should be well aware of all prices, fees, rights and obligations to have the proper input for an informed choice," he noted, adding that: "We believe that such instructions will lead to better informed customers who will, in turn, lead to more consumer oriented operators, which will end up as a healthier and more vibrant competitive sector; which is the ultimate goal of the TRA". WAM

UAE pushes to host planned GCC central bank

2008-04-08T08:25:00.001+04:00

The UAE is still pushing to be home to the common central bank planned by the six Gulf Co-operation Council members within their landmark monetary union, the country’s Central Bank governor said yesterday.

Sultan bin Nasser Al Suweidi said the UAE was the first GCC state to offer to host the proposed central bank but added no decision has been reached yet.

“It was not a decision but an offer from us to host the GCC central bank… we were the first member state to make this offer,” Al Suweidi told Emirates Business. “Of course, there should be a GCC central bank as part of the monetary union.

We in the UAE would love to see this bank based here. It will be a very important regional institution and we would like to be its base.”

Speaking at an anti-money laundering meeting in Abu Dhabi, Al Suweidi said the UAE possessed “all the financial, economic and logistic capabilities to host the proposed central bank. We hope our brothers in the GCC will take this into consideration and respond to our offer.”

The GCC states plan to create a monetary union by 2010 after having launched a customs union in 2003 and a common market early this year. The European Union-style monetary union is expected to include a common currency, a central bank and other joint institutions.

The UAE is classified as the Middle East’s financial and commercial hub and it has the second largest economy and banking sector in the Arab world after Saudi Arabia. In 2007 it overtook the Kingdom as the top importer.

By the end of 2007, the combined assets of the country’s 49 banks peaked at Dh1.23 trillion from Dh865 billion at the end of 2006, while deposits, also the second largest in the Arab world, surged to Dh720bn from Dh426bn.

The UAE also made record profits of Dh24.4bn, second only to Saudi Arabia. The profits recorded a growth of about 23 per cent over the previous year while Saudi bank earnings declined last year.

The assets of the UAE Central Bank also soared to a record Dh184bn at the end of September last year from Dh103bn at the end of 2006. Source

No de-pegging or revaluation for now

2008-04-08T07:52:00.001+04:00

The Governor of the UAE Central Bank Sultan bin Nasser Al Suwaidi has said the UAE is not de-pegging its currency from the US dollar or even revaluing the dirham.

Al Suwaidi reaffirmed that a dirham-dollar de-peg is out of the question and there is no intention for a currency revaluation, saying these measures were short-term solutions.

"The GCC is seeking to find long-term financial and monetary solutions," he maintained.

"Currency policy is not a game, rather it needs a lot of deliberation and in-depth consideration of all causes to produce a final conclusion," Al Suwaidi said.

Talking to reporters after inaugurating the plenary meeting of the MENA Financial Action Task Force, he said there is no intention for the time being to sever the dirham's relationship with the dollar.

"We are assessing the fluctuations in the currency exchange rates. It is impossible to take long-term monetary decisions on currency," he remarked.

Al Suwaidi said the impact of imported inflation was just 3.5 per cent out of total 10 per cent.

"The dirham's long standing peg to the dollar has nothing to do with inflation, however it has slight impact in the range of 3.5 per cent out of 10 per cent," Al Suwaidi said.

He said that during the 1992-2002, the greenback was on the rise and therefore so did the GCC currencies pegged to it. That trend reversed in 2004, when the dollar dropped. "We hope the US dollar would appreciate again," he said.

Al Suwaidi said that appreciation and depreciation of currencies are natural but domestic economic factors like spiralling prices of consumer goods due to high oil prices, impacting transport and storage charges had lead to increase in prices of commodities worldwide.

The construction boom taking place in the UAE and Qatar should also be factored in, he said. This breathtaking development would require more workers from around the world, who should of course be provided with accommodation. This in turn has pushed rents to jump to the current record highs in the two GCC countries, he added.

The Governor said rental inflation is out of the jurisdiction of the central bank.

As for GCC single currency, Al Suwaidi termed the initiative as a historic landmark. The GCC monetary union is a gradual process and it would be a great move forward, if it was achieved in one phase or two phases by 2010. Source

UAE to compile date palm encyclopaedia

2008-04-07T21:07:00.001+04:00

The UAE will compile an integrated, illustrated encyclopaedia on date palm as one of the signature symbol of the UAE national identity and culture.

The gigantic research project, instructed by HH Sheikh Hamed bin Zayed Al Nahyan, chief of Abu Dhabi Crown Prince's Court, Chairman of Higher Corporation for Specialized Economic Zones (ZonesCorp), was unveiled by Dr. Fatima Al Muhairi from Sheikh Hamed's Office during the launch of the Khalifa International Date Palm Award on Monday at the Emirates Palace.

Al Muhairi said the move was in line with the announcement made by President His Highness Sheikh Khalifa bin Zayed Al Nahyan in his last national day address on considering 2008 as a year of national identity.

The encyclopaedia, she added, will feature studies, analyses and a wealth of information and illustrations about the blessing tree and its strategic place on the heart and mind of the UAE throughout its history.

''The encyclopaedia will mark a significant cultural movement with its political, social and economic dimensions. Every possible effort will be made to complete this landmark project,''she maintained. WAM

Millennium plans 19 hotels in UAE over three years

2008-04-07T06:52:00.002+04:00

Millennium Hotels Middle East has plans to build 19 new hotels in the UAE over the next three years, with total cost between $2.5 billion (Dh9.17bn) and $3.75bn, its CEO told Emirates Business in a wide-ranging interview. Speaking on the sidelines of the opening of Millennium’s Kingsgate Hotel in the Al Nadi Al Seyahi area of Abu Dhabi, Ali H Lakhraim, President and CEO of Millennium Hotels Middle East, said the return on the hospitality sector in Abu Dhabi is bigger than any other sector. The addition of the new projects will bring the firm’s holdings in the country up to 25 hotels.

Millennium opened the three-star Kingsgate Hotel in Abu Dhabi on Saturday. Why is the hotel three-stars? Do you have plans to open other hotels of this kind in the UAE?

Kingsgate Abu Dhabi Hotel opened by Lakhraim Business Group on Saturday is the first Kingsgate Hotel in the Middle East. There are 18 Kingsgate hotels around the world. The largest number of this brand of hotels is in England and New Zealand. The group will open another Kingsgate hotel in Al Barsha area of Dubai by the end of 2008, with a capacity of 170 rooms and an investment cost of Dh200 million. The Kingsgate Abu Dhabi Hotel is a budget hotel. Its prices are within the reach of all people. That makes it the first choice for tourists and businessmen. The hotel is rated in the three-star category.

The group also has four- and five-star hotels in the UAE. The number of its hotels is six, including three in Dubai with a total capacity of 700 rooms, one in Sharjah with a capacity of 250 rooms and two in Abu Dhabi with 428 rooms. The Kingsgate Abu Dhabi Hotel has 108 rooms and is equipped with state-of-the-art equipment and internet facilities. Investment totalled Dh100 million. Last February, we opened a new hotel in Dubai, called the Copthorne.

What is the group’s plan for hotel expansion in the UAE, especially with the growing investment and business opportunities in the UAE?

The group’s plan over the next three years, until 2010, includes the construction and management of 25 hotels in the UAE, with cost ranging between $2.5bn and $3.75bn. Each hotel’s cost ranges between $100 million and $150m. We recently drew up the design of Millennium Ras Al Khaimah Hotel at a cost of Dh400 million. The majority of the group’s new hotels will be located in Abu Dhabi and Dubai and this future plan is based on intensive studies in terms of demand for hotels in the UAE and occupancy rates. The occupancy rate in the group’s hotels in Abu Dhabi, Dubai and Sharjah ranges between 85 to 87 per cent.

Research showed the rate will rise between 92 and 95 per cent in 2008. We also expect the number of tourists and business visitors to Abu Dhabi to increase by at least 15 per cent in 2008.

I think Abu Dhabi will become a top business destination in the Middle East over the next three years due to its current economic boom, as well as giant projects launched in the past two years. The emirate is also actively involved in the organisation of local and international conferences. The Abu Dhabi National Exhibition Company and Abu Dhabi Tourism Authority currently play a big role in promoting the emirate locally and internationally. So, our group plans to concentrate on our portfolio in Abu Dhabi.

According to accurate statistics, the current number of hotel rooms in Abu Dhabi, whether in hotels or furnished apartments, is not more than 12,000 rooms. We firmly believe the current economic, financial and tourist activity in Abu Dhabi will need at least 50,000 or 70,000 rooms. We also believe returns in the hospitality sector is currently better than the returns in any other sector.

In your point of view, is the high price of Abu Dhabi hotels – more than Dh1,200 per night, exclusive of service charges – due to the low number of available hotel rooms?

The low supply and big demand for hotel rooms and apartments in Abu Dhabi are one of the reasons, but it is not the main reason. The increasing cost of residence in hotels is not a local issue, but a global one. The cost per night in Mumbai, India goes up to $500 and in Sri Lanka to $300, while in Abu Dhabi and Dubai, the cost is Dh1,200, which I think is low. The reason behind this is the falling value of the dirham due to its dollar peg. That has made the investment cost for foreign investors low compared to other countries.

This is one of the benefits of the linkage between the two currencies. The dollar’s falling value pushed big foreign firms and Western businessmen, in particular, to come to Abu Dhabi and Dubai for investment. Statistics recorded by our group of hotels along with other groups confirm the growing number of European visitors, especially businessmen. This category of visitors formed between 40 to 50 per cent.

In the past, our guests were nationals and foreign tourists, and the number of businessmen was low, and they were sometimes scarce.

Definitely, the security and political stability available in the UAE attracts investors, businessmen and tourists from across the world to region. And I think the depression period that the hospitality industry in the UAE went through due to war in Iraq in 2002 and 2003 – when the room rates per night fell to Dh150 will not return.

Unlike other groups, such as the Rotana Group, there have not been reports that Lakhraim Business Group will construct or run hotels in Yas, Al Reem or Saadiyat Islands. Do you have plans for projects on the islands?

Our group is currently in intensive negotiations to construct and run a group of hotels in the islands being developed. We will shortly announce the signing of contracts to develop hotels on Al Reem, Saadiyat and other islands as well as Al Raha Beach development project. In addition, we will announce the management of three new hotels in Abu Dhabi and Dubai at a cost of $300m.

We highly appreciate the achievements of Rotana Group locally. But I should say that this group was set up locally, and it should not be compared to Millennium International Group, which runs 114 hotels in 18 countries.

The most prominent of these countries are the United States, England, France, New Zealand, Germany, China, South Korea, Philippines, Malaysia, Thailand, Egypt and the UAE.

Millennium’s business is not only restricted to the management of hotels. It also owns 91 per cent of the hotels it runs across the world. This is what distinguishes Millennium at the global level. Our group is Singaporean in origin and listed on the London Stock Market. It is owned by Hong Leading Group and headquartered in Singapore. We currently have nine hotels in the Middle East region, including one in Sharm Al Sheikh, Egypt; one in Doha; one in Kuwait and six in the UAE.

We plan to increase the number of Middle East and North Africa hotels to 50 by 2010 with a cost of more than $5bn. We are currently studying the viability of three hotel projects in Cairo and two in Saudi Arabia along with other hotels in Kuwait, Qatar, Oman, Bahrain and Morocco. We have a giant hotel, the biggest of its kind in the world, due to be open in China before the next Olympic Games, as well as another hotel in Shanghai.

Many hotels have had to employ unqualified workers to meet the demands of the rising number of visitors to the country.
Do you think this has lead to a decline in the standards of hotels in the UAE?

Qualified employment in the hotel sector is a big problem. With the increasing demand by visitors for hotels and unprecedented increase in hotels, some hotels are obliged to appoint unqualified employment. This forms a big danger to hotel work. Managements should pay attention to this. They should enroll their employees in continual intensive training courses to raise their abilities in dealing with clients.

PROFILE: Ali H Lakhraim, President and CEO of Millennium Hotels Middle East
At 38 years of age, Lakhraim is also head of Lakhraim Business Group. He graduated with an engineering degree from the Pacific University in California and then went on to work in the real estate management department at the Abu Dhabi Investment Authority.
Later he worked with the Abu Dhabi National Hotels Company. He set up Lakhraim Business Group in 2006. The group has diverse subsidiaries under its portfolio including contracting, real estate, hospitality, logistics and the service sector. Source