The last few weeks have seen no shortage of big stories. Controversy, debate, corruption – we have seen it all. To put things in perspective, here are some of the stories that made headlines recently in the Gulf.
•Emirates took delivery of its first of 58 Airbus A380s. The mammoth aircraft touched down on schedule in Dubai on Tuesday, 30th July. Its spacious and luxurious cabin features 14 first-class suites and 76 business and 399 economy-class seats. Adding to a new luxury standard in the skies, first-class passengers will be able to take a shower at 43,000 feet. Additionally, the economy class has also been revamped benefitting from the aircrafts overall superior interiors and hi-tech options. For example, a ‘mood lighting system’ is installed to reduce the effects of jetlag.
•31 years old, Lebanese singer, Suzan Tamim was murdered in her Dubai Marina apartment. This was no petty crime and certainly one of the most high-profile that Dubai has seen. The story has ‘Hollywood’ written all over it with rumours of the stars troubled past which included 2 failed marriages and a string of controversies. According to Gulf News, the star spent much of her short life between courts, police stations and hideouts. Unfortunately, the talented singer’s life ended in equally dramatic fashion with police going on an international manhunt to track her supposed killer. The story continues.
•On August 14th, Gulf News reported that two senior Dubai executives, Istithmar vice-chairman Adel Al Shirawi and chief financial officer Feras Kalthoum, are both under investigation over alleged financial irregularities at their former company, Tamweel. Almost simultaneously, the same paper reported that Nakheel has found itself in the middle of a storm over rumours that its "second in command" - a UAE national - has been arrested for bribery. When asked directly by Gulf News whether someone had been arrested, the Nakheel spokesperson neither confirmed nor denied the allegation. Both Tamweel and Nakheel are major players in Dubai’s property boom. While the former is the largest real estate finance provider in the UAE, Nakheel is Dubai’s premier development company. 3 days after the news broke, investors continued to dump Tamweel stocks. The company's shares fell 4.09 per cent on Sunday, extending the losses to 9.8 per cent in the last two sessions.
•In June, the new Salik toll gate was installed on Al Maktoum Bridge. The event was a trigger for heated debates surrounding the success (or failure) of the whole toll system. With just about a year having gone by since Salik was introduced in Dubai, people used the media to express their frustrations (and, in some cases only, their support) toward Salik. The new toll gates between Maktoum Bridge and Safa Intersection will be operational from the 9th of September.
•The Emirates National Oil Company (ENOC) has introduced a self-service system. Under the system, which is currently being implemented as a trial at 10 stations, customers have to park in front of the pump, switch off their engine, go inside the store and pay the amount they want after mentioning the pump number and desired product. The pilot project has received a mixed reaction from customers citing the pros and cons. One recurring concern seems to revolve around the expected loss of a number of jobs.
•“I kissed a girl and I liked it”.....those are the lyrics of a new song that is the current UK number one and third in the US singles chart. Nothing controversial about that you would think, unless of course the song is being sung by a girl. The song has drawn criticism for promoting lesbianism and promiscuity, and raised fears about the influence of Western culture and music on Arab youths. It has been banned by some radio stations in the UAE.
•As of August 1st, the UAE introduced new visa rules accompanied with new visa charges. As with most rulings, though it was not up for negotiation it didn’t stop people from expressing their approval or disapproval. While perhaps the cost factor is debatable, in general the new rules are a positive move. As was best outlined by Brigadier Nassir Al Minhali, director-general of the Abu Dhabi Naturalisation and Residency Department. "The recent modifications in the laws governing the entry and stay of foreigners in the UAE are intended to put an end to violations of this law and tighten rules for issuing visas by companies and individuals to guarantee they will not do so for trading purposes," he told the official news agency Wam. "These rules, especially those governing tourism visas, will adversely affect this important sector. On the contrary confining the issuance of such visas to authorised companies will give them a chance to achieve their objectives in development and expansion because many visitors used to come to the UAE on visas issued by non-specialised companies or individuals," he said.
•The dollar is finally staging a recovery. As reported in Business 24/7, the currency rose against the pound for the 11th consecutive day on Friday, to $1.85 – its longest winning streak in 37 years. In July, one pound would buy two dollars. At the same time, the dollar climbed to its strongest level in almost six months against the euro, which fell to $1.47. In the past month alone the greenback has risen by nearly five per cent against the euro. While the paper also warns against premature celebrations, fingers crossed we go into the new year with a more positive outlook.
Having said that, the Holy month of Ramadan is almost upon us. If there is any time when we can look back and appreciate what we have, this is it. I am sure we can agree that in spite of the rampant inflation coupled with the stress of daily life, i.e. traffic, heat, Salik, bureaucracy etc, things could be worse. One look at current events around the world and I think we can agree that we still live in one of the nicer places on the planet. On that note, here’s wishing you all Ramadan Kareem and a Happy New Year.
Tuesday, 26 August 2008
Tuesday, 24 June 2008
Superlatives vs. Jargon
On my way to work this morning there was an interesting conversation on Dubai Eye’s Business Breakfast; a radio show dedicated to the region’s business and economy in general. The speakers were talking about Dubai’s addiction to jargon. It seems people in Dubai have moved on from their ‘superlative’ phase into using mind-numbing jargon to describe their services or their companies. One of the most popular words currently doing the rounds is leading. Everybody’s company is the leading one; be it a property developer, a bank or even the small laundry service down the road.
The property sector is perhaps the best point of reference for jargon. It showcases some of the most incredible use of words that sound very good, yet make no sense - an art of writing no doubt. A good one highlighted on the show was the use of the phrase community-style living. And quite rightly, the presenter asked ‘as opposed to what?’. Other words include mixed-use development, global standards, internationally acclaimed, lifestyle, eco-friendly, and green initiatives. While it made for entertaining radio, I am sure there is a serious side; especially when you think about unethical advertising and companies making unfounded claims. On a lighter note, it certainly was better than listening to people moaning about traffic, rents, inflation, blah, blah, blah.
The property sector is perhaps the best point of reference for jargon. It showcases some of the most incredible use of words that sound very good, yet make no sense - an art of writing no doubt. A good one highlighted on the show was the use of the phrase community-style living. And quite rightly, the presenter asked ‘as opposed to what?’. Other words include mixed-use development, global standards, internationally acclaimed, lifestyle, eco-friendly, and green initiatives. While it made for entertaining radio, I am sure there is a serious side; especially when you think about unethical advertising and companies making unfounded claims. On a lighter note, it certainly was better than listening to people moaning about traffic, rents, inflation, blah, blah, blah.
Tuesday, 20 May 2008
Rent – That Old Chestnut
It has been quite an interesting week in Dubai. Of course, the announcements and launches are a regular feature and the last few days didn’t disappoint. However, what perhaps made for most interesting reading to many people was a Gulf News report on rising rents.
After torturing and uprooting the ordinary lower and middle class, it looks like the ‘rent issue’ is now also catching up to the commercial sector. We could very well see a reshuffling of the region’s companies to other less expensive, neighbouring countries. However, is that really going to help? After all, it is demand that is the major contributor to price increase. So an exodus of people to another country will inevitably lead to the same problems over there. We have already seen that in Qatar, for example.
What is surprising is that during the same week I saw concerns about rising commercial rents in the region, we had the 13th Annual Middle East Council of Shopping Centres Convention in Dubai. Emirates Business 24/7 covered the event and reported that industry experts were expecting the “explosion in retail real estate development” to last more than a decade. At the same event, Nakheel announced it will be opening more than five shopping malls. These are certainly very bullish statements and gestures in times of rising inflation rates. Whilst we are perhaps still better off than other parts of the world that have been experiencing a major slowdown, the effects are gradually trickling towards the region. We have already seen the price of essential commodities increasing. Of course, we have to applaud the government for controlling these increases. However, with rising oil prices and a global shortage of food supplies, we could see a tightening of the purse-strings by the common man. We could also see diminishing tourist revenue.
The implications of the global slowdown could mean fewer people travelling and hence fewer tourists coming into Dubai. Fewer tourists equals less spending. It is a vicious circle. The good news is that we are not there yet and unless everything that can go wrong does go wrong, the UAE will continue to prosper. On a global perspective, the UAE is still a great place to be in. By all accounts, it is still booming. We have to remember that as a country it is still a relatively ‘new’ state and it is going through several ‘firsts’. Twenty years ago, the country experienced a completely different set of problems. Most of the people who came to the Emirates back then did their time so to speak and have gone on to become extremely successful professional and/or business people. While they undoubtedly worked hard, I am sure without the support of the country and its people many of them would have long chosen the path of migration.
After torturing and uprooting the ordinary lower and middle class, it looks like the ‘rent issue’ is now also catching up to the commercial sector. We could very well see a reshuffling of the region’s companies to other less expensive, neighbouring countries. However, is that really going to help? After all, it is demand that is the major contributor to price increase. So an exodus of people to another country will inevitably lead to the same problems over there. We have already seen that in Qatar, for example.
What is surprising is that during the same week I saw concerns about rising commercial rents in the region, we had the 13th Annual Middle East Council of Shopping Centres Convention in Dubai. Emirates Business 24/7 covered the event and reported that industry experts were expecting the “explosion in retail real estate development” to last more than a decade. At the same event, Nakheel announced it will be opening more than five shopping malls. These are certainly very bullish statements and gestures in times of rising inflation rates. Whilst we are perhaps still better off than other parts of the world that have been experiencing a major slowdown, the effects are gradually trickling towards the region. We have already seen the price of essential commodities increasing. Of course, we have to applaud the government for controlling these increases. However, with rising oil prices and a global shortage of food supplies, we could see a tightening of the purse-strings by the common man. We could also see diminishing tourist revenue.
The implications of the global slowdown could mean fewer people travelling and hence fewer tourists coming into Dubai. Fewer tourists equals less spending. It is a vicious circle. The good news is that we are not there yet and unless everything that can go wrong does go wrong, the UAE will continue to prosper. On a global perspective, the UAE is still a great place to be in. By all accounts, it is still booming. We have to remember that as a country it is still a relatively ‘new’ state and it is going through several ‘firsts’. Twenty years ago, the country experienced a completely different set of problems. Most of the people who came to the Emirates back then did their time so to speak and have gone on to become extremely successful professional and/or business people. While they undoubtedly worked hard, I am sure without the support of the country and its people many of them would have long chosen the path of migration.
Tuesday, 13 May 2008
One’s loss is another’s gain
According to a report in ArabianBusiness.com, the subprime mortgage has claimed over 15,000 jobs since the beginning of the year. The number is expected to rise to almost double that by the end of the year. As expected, most (if not all) of these jobs were in the financial sector. The situation has come as a blessing in disguise for the Gulf region. With the financial and banking sectors screaming for top talent and used to poaching it from their competitors, they certainly could do with the skills and experience of these individuals.
However, the article does highlight a major concern in the shape of the USD vs. Dirham peg. With the exception of Kuwait, this is a regional obstacle and companies need to offer very attractive salaries if they want to compete with other major financial centres like London with its solid sterling pound. The same can be also attributed to other European cities that are riding high on the success of the Euro.
However, the article does highlight a major concern in the shape of the USD vs. Dirham peg. With the exception of Kuwait, this is a regional obstacle and companies need to offer very attractive salaries if they want to compete with other major financial centres like London with its solid sterling pound. The same can be also attributed to other European cities that are riding high on the success of the Euro.
Wednesday, 30 April 2008
Dubai: the City of Superlatives
When I first moved here, Dubai’s PR engine had just got going. Today, it is undoubtedly working overtime and the city is all about superlatives; the biggest mall, the tallest building, the most luxurious hotel, the largest advertisement hoarding, etc. There isn’t a day or week that goes by without a major launch or announcement that is a first of its kind or possibly the grandest. Talking of advertisements, the recently published Advertising Spend Report of Pan Arab Research Centre showed that advertising spend in the UAE has reached $1.3bn in 2007 from $869, that’s a 50% increase. Therefore, it came as no surprise when recently Dubai’s Roads and Transport Authority (RTA) announced that within the first two weeks of its Dubai Metro Naming Rights project launch, over one hundred and sixty companies had expressed interest. Another 160 had already submitted official Request for Information (RFI) documents through the RTA website. The project essentially gives organizations and institutions the opportunity to associate their name to 23 stations (from a total of 47 stations). According to a report on ArabianBusiness.com, the RTA has received interest from as far afield as Japan, Greece, Spain, the United Kingdom and India, surpassing all expectations. By the way, in keeping with tradition, the Dubai Metro Naming Rights project claims to be the first programme of its kind, which uses funding raised through a naming rights initiative to improve transport services.
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