The non-oil sector supports the UAE economy

Report about the overall economy, issued by the National Bank of Kuwait, predicted the UAE economy to grow between 3% to 4% on an annual basis during 2015 and 2016, strongly supported by the non-oil sector growth, compared to the slowdown of the oil sector growth in the short and medium term, affected by down performance of global oil markets.

It is expected that oil GDP to fall during 2015, recovering slightly later in 2016. The non-oil sector is expected to witness strong growth at 5% to 6% on an annual basis during 2015 and 2016, respectively. This sector will continue to grow strongly supported by tourism, real estate and construction (especially in the transport and hospitality), especially with the approaching date of the International Exposition (Expo 2020).

The index of supermarket purchasing managers fell in March for the second month in a row, reaching 56.3 moderately influenced by all secondary components, with the exception of new export orders. Some of this decline is likely due to rise in the dollar (and DRAM, respectively), which is reflected in the economy of Dubai but still the outlook for external and local demand is good.

It is expected that the new changes will bring in the Companies Act a positive return on the corporate sector. One of the most important themes of change is reducing the minimum required percentage of shares to put up for the inclusion of companies in the financial securities market from 55% to 30% which is supposed to lead to increased activity of initial public offerings, as 55% was accounted as a barrier in front of the owners of companies, and prevent the inclusion of stocks. Also, the UAE is currently working on the completion of the draft concerning foreign investment, which will allow whereby for foreign investors the full ownership of companies in certain sectors.

Property in Dubai

The pace of high residential property prices fell in Dubai during 2014, especially in the second quarter of the year, having reached record prices at the end of 2013. The rise in transaction fee, the imposition of the ceiling on the mortgage, and increase the supply of housing units contributed to in the reduction of acceleration of Prices , prompting sellers to cut prices to match the expectations of buyers.

Authorities have repeatedly reiterated its intention to monitor the development of the real estate market, to avoid the incubator for a property bubble environment. And the initiative contributes to provide new housing units and tireless surveillance efforts by the authorities to avoid any significant rise in prices, such as that seen in 2013. Asteco for real estate services pointed to that it expected that 12 thousand apartments and two thousand Villa to be delivered during 2015, double the number of housing units that was delivered during 2014.

Inflation

General inflation rate maintained higher pace during 2014 and early 2015. The inflation rate reached in February, the second highest level since March 2009, up to 3.6% on an annual basis, after the acceleration of the cost of housing units, especially rents. The inflation rate reached 7.4% in the housing component on an annual basis during the month of February, where it continued to rise since the end of 2013 as a result of the recovery of the residential real estate sector. It is supposed that the new distributions of residential units lead to a simple decline in inflation in rents in the medium term, and easing inflationary pressures. It is also expected that the rise in the dollar and the decline in commodity prices will lead to ease inflationary pressures on overall inflation rate. It is expected that the average inflation will reach rate of 3% during 2015 and 3.5% in 2016.

Slight deficit

Assuming breakeven price of oil reaches to 70 $ for a barrel, it is expected that Emirates budget to register a slight deficit as a result of high levels of spending in front of the decline in oil revenues. It is expected that the budget will record a decline of 3% of GDP during 2014 surplus to a record deficit of about 1.3% through 2015. But with owning Emirates abundant financial reserves, perform large proportion of GDP at 200%, it is unlikely The UAE economy will witness a large deficit in the medium term.

It is expected that both Dubai and Abu Dhabi to maintain high levels of government spending, as it is expected that government spending rises in Dubai more before the start of the International Exhibition (Expo 2020), in line with the attainment date for a large part of its debt maturities during the same period.

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Saudi Stock Market plans to organize promotional meetings with foreign investors

Executive officials in the Saudi Stock Market said on Tuesday that the bourse plans to organize promotional meetings with foreign investors in the last quarter of this year with the opening of the market to direct foreign investment.

The Capital Market Authority announced last week that the market is currently worth 554 billion $, will open its door to direct foreign investment in June 15. Final rules that covers the opening of the market are scheduled to be issued on the fourth of May.

«Khaled Al-Rabiah» Chairman of trading management of "Tadawl" said during a press conference that the promotional tour will focus on North America and Europe.

«Khaled Alhussan» general manager of market management in "Tadawl" said that among those who will participate in promotional tours are investment companies and listed companies, but "Tadawl" will lead the process.

« Alhussan » pointed that the company will launch a new trading system «X-Stream INET» system which is applied in NASDAQ bourse under the plan for the development of systems, probably by the third quarter of the year, although this comes in conjunction with the entry of foreign investors to the market.

He told Reuters on the sidelines of a press conference «We got a very advanced stages in this regard ... expect the third quarter to be the right time to launch it».

On the other hand, «Al-Rabiah» told Reuters on the sidelines of the conference that "Tadawl" has spent more than 250 million riyals to strengthen its infrastructure during the past two years and it intends to use part of the available liquidity to it that is more than three billion riyals to improve services, systems and infrastructure in the next three years to the five.

Initial public offering is not a priority now

«Adel Ghamdi» chief executive officer of "Tadawl" said in last May that the market is looking to do the initial public offering and will use a financial advisor for this purpose soon.

However, «Al-Rabiah» said in Tuesday that the Public Investment Fund, which owns "Tadawl" has the first and the last opinion on subtraction adding that the subtraction procedure has not yet begun.

He continued saying that the company is currently focusing on improving its services and diversifying sources of income and its owners will look at this issue « when "Tadawl" possess enough cash flow to achieve continuity»

«Al-Rabiah» told Reuters on the sidelines of the conference that it is unlikely to implement the IPO this year because the company has other priorities on top of it opening the market to foreigners and investment in the modernization of systems and infrastructure, he said, «it is difficult to determine the time frame for the launch ... There are a lot of priorities at a time quo and must deal with it in the form that serves the public interest, and then look at the other things », adding:« I think in view of the priorities and on top of them is direct foreign investment and investment in the modernization of our systems ... (IPO) won't be this year because we are busy with a lot of other things».

On the other hand «Al-Rabiah» said that "Tadawl" holds continuously meetings with Saudi companies for listing on the stock market, but those companies will take time in making its decision about the new insertions and what arrangements need to be done but their aware increase about the importance of the insertion or at least separate management from property.

He said "Tadawl" held meetings during the past two years with more than 250 interested companies for listing on the stock exchange. There are about 170 companies currently listed on the stock exchange.

Where are 4 million Saudi tourists heading this summer in summer holiday?

The seventh edition of the Riyadh Exhibition for travel in 2015 witnessed the participation of more than 50 countries and 20 institutions of the travel and tourism sectors, where many countries, including the countries of East Asia, and Europe, in addition to the Middle East participated so as to attract the Saudi tourist who is ranked the first globally in terms of tourism spending.

The number of Saudi tourists is estimated annually by about 4 million tourists; go to about 70 countries for relatively long periods of time compared with other tourists, also the Saudis spend in those trips around 24 billion riyals, according to specialists' estimates.

The secretary of the Ministry of Tourism in the Kingdom of Bahrain Khalid Al Khalifa, said in an interview with "Arabia" Channel that: The exhibition is featured by collecting businessmen in the tourism sector with tourists directly unlike other exhibitions that were limited to business owners and operators guides for hotels and companies.

There were variety of participations either recreational, cultural and heritage tourism, but the most important was the medical tourism, where the State of the Czech offered health care places in it in addition to the health resorts in Slovakia and the German Physical Therapy, which had a share of the exhibition.

In turn, the director of the Abu Dhabi Authority for Tourism Sultan Al Mansouri, said that the body is trying to provide sophisticated tourist services to cope with the needs of all ages and in all sectors, as the Commission aims to meet the growing global demand for tourist services of various kinds.

For his part, Ahmed Ghawy a specialist in tourism information – said that about four million Saudi direct to tourism annually to about 70 countries in the world, saying that such a large number is accompanied with attracting products directed to Saudi tourists.

In general political situation and the events of the Arab Spring overshadow the destination of tourists, where tourist compass tended to Europe and East Asia, which made the Saudi tourist to choose his appropriate destination early to spend the next summer vacation.

Quraini: confidence in the power of the Saudi economy makes countries compete on Saudi tourists.

Mr/Bandar Quraini the supervisor on organization of (Riyadh Travel Fair 2015) said that

 "The Kingdom tourist market is favorable for neighbor countries , countries of Europe and East Asia".

The exhibition has witnessed a crowd attendance of the Saudis, especially Saudi families seeking destinations for next summer, and nearly 50 countries compete in the show to earn a share of the Saudi market, the source of tourism throughout the year.

 In this year's show, which was embraced in the capital for the seventh successive year, we found a dramatic rise in the number of posts, either as states or travel agencies and major hotels, and also the presence of Saudi Tourism through the General Authority for Tourism and Antiquities which took a great space in the show, and present a prominent role in the publication of destinations and regions of the Kingdom which have a variety of tourist components". 

He pointed out, "what make visitor of the exhibition happy is the presence of these participating states in the exhibition despite the current circumstances, represented in the Grand Alliance led by the Kingdom of more than ten countries with it towards restoring legitimacy to the Yemeni government, which asked for help from its big neighbor, Such exhibitions and such presence gives confidence in the ability of our country to provide better security cases for each visitor to our cities in Saudi Arabia, which the pace of life in it has not changed despite the military build-up and the air campaign against the aggressors three weeks ago, and the presence of the public from the Saudis and non-Saudis proving  continuity of the events and programs in the same usual momentum, and that the participation of this country is an important economic message emphasizes the strength and confidence that the Saudi economy finds in the world.

The Riyadh Travel Fair witnesses providing proposals and tourism programs daily for visitors to the various countries of the world, and Gulf, Arab, Asian and European countries compete on the marketing of a variety of tourism products and with different periods, and fit the Gulf and Saudi culture, also a lot of travel agencies offers discount programs on airline tickets and hotel nights.

Saudi Arabia announces opening the field of investment in Stock Market to foreigners.

The Capital Market Authority Council in Saudi Arabia announced that the timetable for the implementation of the Cabinet decision to open the field for foreign financial institutions to buy and sell stocks listed in the Saudi Stock Market.

 

It was allowed until now only for companies registered in Saudi Arabia or in other Gulf Cooperation Council countries to buy and sell in the Saudi market, and it was must for foreigners to pass through investment funds in Saudi Arabia or the Gulf Cooperation Council (GCC).

The Capital Market Authority in Saudi Arabia explained in a statement on the trading site, it is allowed for qualified foreign investors to invest in listed shares as of the date (28/08/1436 H corresponding to 06/15/2015 AD), noting that it will adopt the final version of the rules and will be published on (15/07/1436 H), and that the rules will be in force from the date (14/08/1436 H corresponding to 01/06/2015 AD). "

The Commission said in its statement that "the schedule came after the publication of the regulations draft on its website to solicit the views and observations of interested persons for a period of 90 days," referring to the desire of the body in putting necessary acts to receive the registration of foreign financial institutions requests as qualified foreign investors and handling with them based on the rules, the Saudi bourse consists of 162 company.

Calls for the establishment of a Gulf oil stock market to reduce the risk of speculation

At a time when oil prices experienced significant declines with the end of 2014, a specialized economic report indicated that the talk is going to establish a unified Gulf Oil bourse able to impose its presence and influence on the world stage, and competitive to oil markets in London, New York and Singapore.

 

The Gulf Cooperation Council (GCC) enjoys with many features make it capable of achieving competition and maintain its wealth of oil and gas in the light of the continued speculation and breadth of its negative effects on the economies of producing countries. The Gulf Cooperation Council enjoys with international heaviness depending on its important position in global energy markets, and acquires an important role on the global financial and commercial interactions map over the world.

According to a report from Crescent Petroleum company, the production of the Council states of crude oil at the end of the year 2013 amounted to about 17 million barrels per day, and 397 billion cubic meters of liquefied natural gas, at a time when the GCC countries have the largest oil reserves in the world, estimated at 496 billion barrels, equivalent to 33% of the total world reserves.

And fall on the Gulf oil bourse the responsibility to maintain price stability and access to fair prices at all times and circumstances In addition to maintaining the oil rights requirements and to contribute to putting an end to speculation recorded by the oil markets, and the growing need to find Gulf oil bourse due to their ability to contribute to the development and the balance between spending on development projects and oil revenue.

The bourse will contribute to maintaining the required price by the GCC, and the Gulf Cooperation Council (GCC) will strengthen its productive capacity, as the Kingdom aims to reach a production capacity of 15 million barrels during the next twenty years, as UAE seeks to reach a production capacity of 3.5 million barrels per day during the next few years.

The report stressed that the time has come for the establishment of a Gulf oil bourse work to maintain the economies of countries in the region and the world, and to minimize the risk of persistent speculation, that the assumed bourse will contribute to the stability of global energy markets and works as a driver for those markets at the same time.

While the geographic location of the GCC will be important in influencing the driving prices at a global level, taking into consideration that the existence of bourse for oil at the Gulf States is a successful way to market and promote the oil and the conclusion of international and regional contracts for oil.

It also helps to protect the oil rights of Gulf states, in all times and will have a positive impact on the revitalization of the movement of oil contracts and direct impact on the Arab oil pricing system in the world markets.,

«United Arab Emirates» changed the rules of the game in the airplanes industry

Global report pointed out that "Fly Emirates" when it introduced its aircraft A380 to the world it was received with standing ovation as it changed briefly the rules of the game in the civil aviation industry.

 

Flight Global report said: The design of the Emirates A380 aircraft  gives an explanation for mystery of the success of the tanker in important destination such as Dubai - London, where business class seats are of 1-2-1 system that provides maximum comfort for travelers, bringing the service format more when talking about First Class or First Class suits that provides privacy approaching private aircraft system as this aircraft includes 14 giant luxury suites and the length of the seat reaches up to 208 cm and could turn into a full bed and provided with 27-inch screen TV display and entertainment system provides 1500 audio-visual channel as well as online services and free phone calls.

The report noted that the Emirates not do only that, but added their own innovations such as Air Shower Spas and saloon in the upper layer of the plane and all of these reinforced the uniqueness of Emirates Airline and added to their success in using this plane in the best way.

It explained that the Emirates Airlines that serve the destination Dubai - Heathrow with five flights a day, using A 380 aircraft with cargo ranging between 489-517 passengers with three grades system which made services on this plane closer to the private plane where it achieved great success since the use of these aircraft in service in the year 2008.

The report said that what Gulf carriers have provided through their operational centers to various destinations around the world was a dream no one imagined to happen 20 years ago.

The report said that the major Gulf carriers such as Fly Emirates, Etihad and Qatar Airways were able to achieve great success in their operations that serve the British capital bet on the quality of services and products offered ranging from luxury cinemas on the ground and even air saloons inside the plane devised by Emirates Airline on its aircraft A 380.

Qatar Airways and Etihad Airways followed the pattern of Emirates in improving the services of passengers and goods on different flights and used the A380 aircrafts in significant economic effectiveness and three carriers competed to provide the highest standards of service, whether in the air or on the ground, driven by robust demand, whether from Europe or America. Etihad Airways finally added "Residns" product, a luxury suite or a luxury apartment in the air consists of bedrooms to accommodate more than one person and provide high specificity for travelers and accompanied by a whole change in the company's logo on its planes in parallel with the development and investment in enhancing the experience of travelers.

The report said that these services and despite its high prices that may be accessible to certain numbers of travelers, but it has a great demand which is reflected in the conduct of five daily flights by Emirates Airlines at Heathrow Airport in London, using the A380 and at high rates of occupancy, which poses another question; whether the region is in need of special model of Gulfstream and other planes.

5 billion Dollars to create cities in the middle of the seas in Gulf states

Participants at the International Property Show in Dubai revealed  that real estate companies went on to create cities amid seas, arguing that the growing popularity of this type of real estate spur investors to provide huge financial allocations of billions of dollars for the implementation of new projects, according to German news agency.

They said during their participation in the exhibition, which was held this week in Dubai with the participation of 130 countries, the real estate islands projects implemented in the Gulf States currently at a cost of more than $ 5 billion.

The "Palm" island model in Dubai comes at the forefront of real estate projects that were built amid the Gulf Sea, and has achieved great success in attracting hotel investments, and sales of real estate units.

Island was built on the shape of a palm tree which is made up of the trunk and crown, and 17 fronds of hundreds of villas, surrounded by a semicircular barrier.

Next to this project, Blooaters Island project, which its implementation was announced in Dubai, and cost 6 billion dirhams, it is planned that the project embraces the "Eye of Dubai," the world's largest entertainment wheel.

Qatar witnessed earlier this year the launch of Bannana Island project, which was implemented to be similar to Maldives resorts, Moataz Al-Khayat Chairman of Orpacon company that carried out the project, that:"The Bannana Island" includes 141 rooms, suites, villa with swimming pool and villas on the surface of the water and is run by the company "Anantara" , and can be accessed via boat or helicopter.

And the resort extends on a beach of 800 meters long, also includes a platform for helicopters and movie theaters, a health club, sports stadiums and clubs for young people, children and swimming pools to ride the waves.

Al Khayat said that island can be reached with speedboats within 20 minutes, launching from a special port, pointing to the existence of a port in the island accommodate up to 30 boats.

"He added the resort provide for the people of the Gulf to spend tourist family activities of a new type into the sea and provides them with the establishment of weddings and the waves of the sea around them."

In Bahrain, the development of Bahraini company began construction of "Ras El Bar" project, which is new real estate project made up of more than 14 islands, and the project will be held on 1100 hectares of which 440 hectares will be buried at sea.

In Fujairah, the Green Valley company for Real Estate, announced the launch of Dana huge Island project, which extends over 1.7 million square feet of space and cost billion dirhams in Dibba Fujairah area, including 367 luxury villa amid gardens, in addition to the yacht club and five-star hotel.

In Saudi Arabia, Dana Bay project is being implemented on area of ​​760 thousand meters square. Abdul Mohsen Al-Rashed Chairman of Dana Bay Company said that The project includes the construction of palaces and hotels are expected completion of the infrastructure for the project during the current year, adding that "the total expected investment in the project is more than $ 1.25 billion.

The International Property Show held in Dubai in collaboration with the International Real Estate Professionals Association and the Royal Institute of Chartered Surveyors and the Department of land and property in Dubai, to provide insights around the major investment opportunities.

Geuzen Hijmanz director of real estate exhibition said that: "Forum included sessions presented by experts on Real Property Disputes and International Standards of property and tools of doing business in real estate projects and facilities management strategy."

She pointed out that the exhibition gathered 300 exhibitors from major Gulf and international real estate companies, and among the participating countries were Spain, the United States, Canada, United Kingdom, Turkey, India, Greece, Cyprus and the Gulf states.

Oil price recovery supports Saudi stock Market and variations in other gulf markets

Saudi stock rose on Wednesday, supported by the rise of oil prices, which changed its direction in the middle of the day in addition to the positive news from the companies, while new plans for the establishment of Dubai Parks paid market to rise. And variations in the performance of other stock markets in the Gulf region.

 

Futures contracts of global ore measurement Brent compensated its early losses to climb to $ 55.50 for a barrel, with the extension of talks on Iran's nuclear program, which limit expectations of an imminent agreement that would allow Tehran to pump more oil in the market.

The main index of the Saudi market rose with a 0.4 percent with the rise of Saudi Basic Industries Corp (SABIC), the largest petrochemical producer in the Kingdom and to 80.75 riyals.

The National Petrochemical Company (Petrochem) shares jumped 7.1 percent after the company announced that its Saudi unity for Polymers completed all its obligations under the financing agreements with local and foreign banks and will not need financial guarantees from a third party.

Saudi Arabian Mining shares (metals) Rose 1.7 percent after the restart of the ammonia factory, which the company shut it down last week due to technical glitch in the facility for cooling.

The share of Saudi cement increased 1.5 percent after the company announced that it has signed a deal to build a new line at its plant in Rabigh.

The banking sector also recovers after a wave of selling in the previous two sessions and the sector index rose 0.6 percent.

The Dubai index rose 0.5 percent, with the rise of Dubai shares for parks and resorts 8.6 to 0.93 dirhams, recording its highest close since its inclusion in December.

The company - which is building an amusement park center worth 2.9 billion $ - said on Tuesday that it entered into a partnership with Lionsgate Entertainment for film production in Hollywood to build an amusement park.

Also most other stocks in Dubai rose, but trading volume dropped by nearly a quarter, which indicates that, the climb that the market witnessed this week probably began losing its driving steam.

The main index of Abu Dhabi rose with 0.6 percent with rise of both shares of Abu Dhabi Commercial Bank and Union National Bank with 2.9 and 3.5 percent respectively.

But national Abu Dhabi's share for power (energy) fell 8.8 percent after the company reported a net loss of 3.01 billion dirhams (820 million $) in 2014, compared with a loss of 2.52 billion dirhams in 2013 and said it will not pay a dividend for last year and will reduce   its capitalist spending this year.

And Qatar's index fell 1.5 percent, erasing some of the gains made in the past few days. Trading fell by more than half the size.

The decline in the main index of the Egyptian Stock Exchange with a 0.4 percent with decline in overall stock again. The Egyptian Edita for Food Industries shares begin trading on Thursday after covering the initial public offering heavily and perhaps investors sold shares for financial liquidity to buy shares of the company.