A big Scam in the Making Unearthed: CSIR had Perfect Plan to Cordon Off Millions to BR Shetty

In what seems to be a massive attempt by the Indian government to cover up the misdeeds of the much maligned UAE business tycoon, founder of NMC health and many of its sister concerns, BR Shetty, and to bail him out of his financial woes, a big scam has been unearthed recently.

The Council of Scientific and Industrial Research (CSIR), in collaboration with one of its constituent laboratories, Indian Institute of Chemical Technology (IICT), Hyderabad had announced end April that they will now be setting up indigenous plants in India with an integrated pharmaceutical company LAXAI Life Sciences to jointly develop and manufacture APIs and its key intermediates. This announcement was made shortly after the government announced a Rs 14,000 crore package to incentivise production of APIs in the country and reduce import dependence of this key pharma input from China.

A person close to the matter revealed, “LAXAI Life Sciences was to be one of the first few to commercialise these products manufacturing APIs and intermediates at USFDA/GMP approved plants held by LAXAI through its subsidiary, Therapiva. Vamsidhar Maadi Patla, CMD, LAXAI Life Sciences and Nikhil Baheti, CFO, Therapiva were propped to provide just the ideal leadership with extensive experience and expertise in pharma to spearhead this breakthrough R&D, but it turned out that this was just a big show put up to mislead unsuspecting public into thinking what a grand deal this would prove to be. The real plan was to help BR Shetty regain a foothold in his crumbling empire.”

A closer inspection of their websites revealed only projections and capabilities with absolutely zero reference to any research and manufacturing that may have happened at their end. When these firms were contacted, however, no one came out in the open to comment.

An inside source, on conditions of anonymity said, “Since this was to be a collaboration with CSIR, these firms were projected to be much better than the others in pharma research and development. A lot of noise was made about the formidable credentials of these firms so that no one would question either their background or the basis of this deal. No one would ever suspect that the antecedents of these firms could be traced back to BR Shetty.”

Seemingly no due diligence was followed by CSIR in going ahead with this collaboration. When, Information and Credit Rating Agency of India Limited (ICRA India), an independent and professional investment information and credit rating agency, assessed Therapiva’s documents, it was ascertained that it was a firm immersed in debts with very poor net worth.

On further investigation, it emerged that both the companies were owned by a certain Omnicare Drugs India Private Limited, Hyderabad which had 61% stake in the companies. The parent company of all these establishments was traced to be Neopharma Holding Pvt. Ltd. based out of the UAE, one among the many business ventures of BR Shetty.

The source added, “Shetty has been closely associated with the RSS ever since the Jan Sangh days and has openly pledged his support to the PM Narendra Modi claiming that he will be investing billions of dollars in healthcare infrastructure in Varanasi as well as healthcare, education, agro products, tourism and film city projects in J&K proclaiming this to the PM in the many public events organised by BJP, that he participated in. With the PM having such an ardent follower in Shetty, it seems he is now lending as much covert support as he can to Shetty so he can go back to being the czar of his kingdom.”

Shetty flew to India in February to care for his ailing elder brother, who has since passed away. While Shetty claims that he has ‘launched his own legal and forensic investigations and will share the results with appropriate authorities’, he is grappling to pay off a debt of $6.6 billion, far higher than the $2.1 billion it had initially revealed. Creditors have moved against the top management, with Abu Dhabi Commercial Bank (ADCB) as well as the bank of Baroda, India filing criminal cases against him and NMC having been placed under administration given that the real debt is approximately 3.5x the reported amount.

Since, the announcement by CSIR came just 10 days after ABCD filed a criminal complaint against Shetty and just about 3 weeks after London banks froze all his bank accounts, there seems to be an unmistakable nexus between the government and Shetty to not just keep him afloat but also to help him tide over his financial woes with the taxpayers money. There seems to be definitely much more going on behind the curtains, than what is meeting the eye!

Emirates SkyCargo Keeps the World Connected with Over 10,000 Flights in 3 Months

Between April and June 2020, Emirates SkyCargo has facilitated the movement of essential commodities and other supplies for individual consumers and businesses across the world by operating more than 10,000 cargo flights to destinations across six continents. The flights were a mix of scheduled, ad-hoc and charter operations.

Nabil Sultan, Emirates Divisional Senior Vice President, Cargo said: “As a customer focused organisation, Emirates SkyCargo has innovatively adapted our cargo operations and offerings over the last few months in line with rapidly evolving market demand. In keeping with our core value as a global facilitator of trade and economies, we have re-grown our network to over 100 destinations with robust flight frequencies to key production and consumer markets. We continue to be able to offer our customers an unmatched reach and connectivity for their valuable cargo and our flight milestones are a validation of our customers’ trust in our service.”

During the months of May and June, Emirates SkyCargo operated on an average more than 3,800 flights per month, with the aircraft travelling to over 100 destinations and covering approximately 37 million kilometres, which is the equivalent distance of roughly 50 trips to the moon and back.

Starting from just over 35 destinations at the end of March 2020, Emirates SkyCargo has expanded its network to over 100 scheduled cargo destinations across the world for the month of July 2020. From transporting urgently needed medical supplies and food to materials required for manufacturing and other industries from origin to destination, Emirates SkyCargo is helping reconnect cities to international trade lanes as manufacturing and other economic activities recommence.

Emirates Will Cover Medical Expenses If Passengers Catch Covid-19 Pandemic

Emirates airline, the United Arab Emirates flag carrier, has become the world's first airline to offer to cover customers' medical expenses and quarantine costs should they contract Covid-19 during their trip.

The airline will pay medical expenses up to €150,000 ($173,000) and quarantine costs of up to €100 for 14 days, should they be diagnosed with the coronavirus during their travel, while away from home.

The cover will be available to all customers, at no extra cost, from now until October 31, 2020. It's valid for 31 days from the moment they fly the first leg of their trip, so passengers can continue to have the benefit even if they travel onwards from their Emirates destination.

Sheikh Ahmed bin Saeed Al Maktoum, Emirates group chairman and chief executive, said in a press release, "Emirates has worked hard to put in place measures at every step of the customer journey to mitigate risk of infection, and we have also revamped our booking policies to offer flexibility.

"We are now taking it to the next level, by being the first in the industry to offer our customers free global cover for Covid-19 medical expenses and quarantine costs should they incur these costs during their travel."

While Emirates is the first airline to take this step to boost traveler confidence, it's not the first player in the tourism industry to offer Covid payouts.

Central Asian nation Uzbekistan has promised the sum of $3,000 as compensation to visitors who contract Covid-19 while vacationing there.

The Mediterranean island of Cyprus, meanwhile, which reopened its borders to selected countries in June, is pledging to cover the cost of lodging, food, drink and medication for visitors who test positive for the virus during their stay.

Emirates is regularly named one of the world's top airlines in Skytrax's prestigious annual awards.

The UAE's strategic location between Oman and Saudi Arabia makes it a key connection for travelers heading from the West to the East and vice versa.

The airline's HQ is at Dubai International Airport, named the world's third busiest airport in 2018, and the carrier will be keen to resume its once bustling international operations.

Emirates SkyCargo to Transport Upto 17 Tonnes More Cargo on Select Boeing 777-300ER Aircraft

Emirates has introduced additional cargo capacity by using Boeing 777-300ER aircraft with seats removed from the Economy Class cabin. The measure has been introduced in response to the strong air cargo market demand for the rapid, reliable and efficient transportation of essential commodities such as Personal Protective Equipment (PPE), pharmaceuticals, medical equipment, food, machinery and other supplies around the world.

Watch a video of how Emirates Engineering modified the aircraft here.

Emirates SkyCargo will be operating 10 Boeing 777-300ER aircraft with Economy Class seats removed allowing for up to 17 tonnes or 132 cubic metres of additional cargo capacity per flight on top of the 40-50 tonne cargo capacity in the belly hold of the widebody passenger aircraft. The modified Boeing 777-300ER aircraft are being deployed on routes to key production and consumer markets where Emirates SkyCargo sees maximum demand for movement of urgently required goods.

Nabil Sultan, Emirates Divisional Senior Vice President, Cargo said: “Since the start of the Covid-19 pandemic, Emirates SkyCargo has taken very seriously its responsibility of connecting people and businesses across the world with the commodities that they urgently require. To this end, we have been working flat out, first to re-connect a global network of more than 85 destinations and then to introduce capacity options that fit what our customers demand from us including passenger aircraft flying only with belly hold cargo and loading cargo in the overhead bins and on passenger seats. Now, with the Emirates Boeing 777-300ER aircraft with modified Economy Class cabins, we will be able to transport even more cargo per flight, allowing for more cargo to reach their destination faster and for more efficient cargo operations.”

The modification of the Economy Class cabins of the 10 Emirates Boeing 777-300ER is being executed at the state of the art Emirates Engineering facilities in Dubai with each aircraft requiring close to 640 man-hours of work for the modification. Engineers remove 305 Economy Seats from one aircraft, fixing safety equipment and implementing regular load bearing tests during the process. Seven aircraft have already been modified by the Emirates Engineering team, with three more aircraft due to be ready by mid-July 2020.

Ahmed Safa, Divisional Senior Vice President Emirates Engineering said: “Converting our passenger aircraft to these mini freighters is certainly a sign of the times. Our teams have shown resilience, an innovative spirit, and adapted quickly to the needs of the changing business environment. We have risen to the twin challenges of new procedures and safety protocols within set timelines, and we are extremely proud of what we have achieved.”

By the end of the project, the Emirates Engineering team would have removed 3,050 seats, which will be safely and hygienically stored away till the time the aircraft are required for passenger services. The seats will be fitted back into the aircraft and tested for passenger safety and comfort.

With its focus on safety of operations, Emirates SkyCargo has implemented strict rules on the type of cargo that can be loaded inside the modified Economy Class cabins. Some of the cargo commodities that can be loaded include general cargo such as PPE and garments, pharmaceuticals that can be maintained within a temperature range of 15 and 25 degrees Celsius and perishables such as cut flowers, and select dry and non-smelling fruits and vegetables. Cargo loaded in the passenger cabins would need to be packaged inside a suitable external container such as a plastic or cardboard box in accordance with the latest regulations outlined by IATA.

Emirates SkyCargo is the freight division of Emirates. The air cargo carrier operates a combination of scheduled and chartered flights to more than 85 global destinations every week. During the Covid-19 pandemic, Emirates SkyCargo has been acting as a global conveyor belt connecting markets across the world to supplies of essential commodities including PPE, pharmaceuticals, food and other perishables, e-commerce goods as well as machinery and other equipment.

Emirates Engineering ensures that Emirates’ wide-body fleet of more than 260 aircraft are maintained in peak condition. The team is conducting regular parking checks on the grounded aircraft and scheduled A-checks, C-checks and operational maintenance on the flying fleet serving a mix of cargo and an increasing number of passenger destinations.

IT SEZ from realty firm in Ahmedabad

A city based realty developer Calica Construction and Impex pvt Ltd laid the foundation stone for an It and ITeS Special Economic Zone here on Sunday.

The SEZ will be spread over 20 acres of land on the outskirts of the city and would house small and medium sized information technology companies.

The developers have planned to complete the first phase of the project in two years with initial investment of Rs 300 crore while total estimated cost of the project is Rs 650 crore.

Union minister of state for small and medium enterprises Dinsha Patel and Gujarat minister of state for industry and energy Saurabh Patel were among those present at the foundation stone lying ceremony.

According to Bipin Shah, one of the developers of the new venture, the company has already got the notification from the Board of Approval (BoA) for SEZ and other clearances are in the process.

He said that over 30,000 square feet space will be created for the It and ITeS companies.

He added that they are also in the process of tying up with major IT firms to set up their centres in the SEZ which would offer world class infrastructural facilities.

Agencies

Can Mumbai, Bangalore emerge as the global capitals?

The Russian capital as well as Indian cities of Mumbai, Bangalore and Hyderabad have every chance of becoming global capitals on par with cities such as New York, London and Tokyo, according to the latest issue of Forbes magazine.

The influential publication assessed the rapidly changing forces driving the global economy, such as the inflow of capital and labour resources, and the pace of infrastructure development, and looked into the future, ranking the Russian capital alongside Shanghai, Beijing, Sao Paolo, Dubai and the Indian cities of Mumbai, Bangalore and Hyderabad.

"Fifteen years ago, Moscow was in the midst of a particularly grungy interlude, filled with stolid people waiting in lines for shoddy consumer goods. Today, its hotel accommodations - cheap if dinghy a quarter century ago - are among the world's most expensive.

Russia's huge energy industry, which dominates all of Europe, is the key factor driving the transformation," Forbes wrote.

The article, published Wednesday, notes that Moscow has had a radical makeover since the collapse of the Soviet Union. The city, where Moscow State University was the tallest building at 240 meters (787 feet), now has a host of skyscrapers including the three tallest buildings in Europe, the highest of which is still under construction.

"With a population of 10 million, Moscow is already Europe's most populous city and could get bigger yet, particularly if energy prices rise," the magazine said.

Although Forbes expects most global capitals of the future to be outside the Western Hemisphere, it includes Calgary in Canada, Perth in Western Australia and the Texan pair of Houston and Dallas in its list.

But the article does recognise that the current centers of financial and political influence - such as Tokyo, New York, London, Paris, Seoul, Singapore and Hong Kong - will not fade into the background for some time to come.

Agencies

Browse pure content on NaqaTube; Online version of YouTube

Sick and tired of profanities and explicit nature of some video clips on YouTube, a group of Saudis have developed a “clean” alternative called NaqaTube (naqa being the Arabic word for ‘pure’).

The aim, as they put it, is to prevent the youth from watching sexually explicit video clips online, an Arab news report quoted a moderator of the website as saying. With millions of youth logging into YouTube each day, the group launched NaqaTube, which is simply an amalgamation of “clean” clips from YouTube.

Abu Ibraheem, one of the moderators of the website, said that clips on NaqaTube are religiously safe and often edited prior to being uploaded.

The website’s logo is “participate with us in a clean website.”

The site also censors clips that are against the government, individuals and scholars, or which mock people in general, the report said. Women’s images are totally forbidden, along with music.

“Our dream is to decline the number of visitors to YouTube. Our website has received 5,000 to 6,000 visitors since its launch two months ago,” Ibraheem said.

Much of the material on the site is religiously inclined and the site’s front page displays links to over 10 channels featuring scholars, preachers, children and other Islam-related material. The site hosts clips of scholars from the Arab world delivering Islamic discourse. “We are promoting a moderate Islam, nothing extreme,” he said.

Agencies

Arabic portal Maktoob acquired by Yahoo!

Internet major Yahoo! Inc. today announced that it has entered into a definitive agreement to acquire Maktoob.com, an online community in the Arab world, with more than 16.5 million users. Though the transaction is expected to be completed in the fourth quarter of 2009, the financial details of the deal is not yet known.

"This acquisition will accelerate Yahoo!'s strategy of expanding in high-growth in emerging markets where we believe Yahoo! has unparalleled opportunity to become the destination of choice for consumers," said Yahoo! chief executive officer Carol Bartz in a statement.

According to Yahoo!, this acquisition will extend its current offerings by adding capabilities to deliver relevant Arabic-language content and services, as well as Arabic versions of Yahoo!'s popular Yahoo! Messenger and Yahoo! Mail services.

"Yahoo! and Maktoob are natural partners and this combination should help energize the Internet market in the region as a whole. We are excited about Yahoo! building a stronger presence in the Middle East and bringing its compelling suite of services to Arab users in Arabic," said Samih Toukan, founder of Maktoob.

While Internet usage in the Middle East has grown more than tenfold since 2000, most markets are still in the early stages of adoption. According to the World Bank, there are more than 320 million Arabic speakers worldwide, while less than one per cent of all online content is in Arabic, said the Yahoo press release.

Maktoob.com was founded in 2000 by Samih Toukan and Hussam Khoury as the world's first free Arabic/English Web-based email service, and since then has grown to be the leading Arab online community in the region.

Keith Nilsson, senior vice president, Emerging Markets, Yahoo!, said, "We see great growth potential in both audience and advertising in the Arab world and combining with Maktoob.com will allow us to quickly build our presence there with high quality products. This is a big win for publishers, advertisers, and consumers in the region."

Yahoo said this acquisition is part of its larger strategy to grow its business throughout the world's emerging markets by connecting consumers with the content and services that matter most to them in their local language.

Following the acquisition, Maktoob.com will become a wholly-owned subsidiary of Yahoo!. Ahmed Nassef, the current general manager of Maktoob.com, will continue to lead the Maktoob.com teams and will report to Keith Nilsson, said the release.

Agencies

Has the crisis left Dubai migrant workers out in the cold?

Low-paid Asian workers who toil long days to build the skyscrapers of Dubai have become the latest victims of the global financial crisis as companies run short of business and money.

For many years, the Gulf emirate was a magnet for South Asian workers who fed the booming economy with cheap manpower -- from cleaners and gardeners to skilled and unskilled builders.

A report issued earlier this month showed that 582 billion dollars worth of building projects in the United Arab Emirates, of which Dubai is a part, had been put on hold due to the slowdown. That was 45 percent of the total.

Arnold, a 26-year-old Filipino machine operator, found a job in a small aluminium factory only two months after arriving in Dubai last summer. But in January, he and six others from the 15-strong workforce were laid off.

"I am staying in Dubai trying to find another job," he said, pointing out that his previous employer lost a great deal of business when many construction projects ground to a halt, cutting demand for aluminium products.

Six years of spectacular growth in the UAE construction sector, mainly in Dubai, absorbed hundreds of thousands of workers, mostly from South Asia. That had a knock-on effect, creating further opportunities for migrants.

But the financial crisis, mainly in construction and related industries, is reversing that trend, forcing foreign workers to go home.

"The crisis is worse in the Philippines. We have no future there. We are looking for part-time jobs here, anything," Arnold told AFP as he hung out with two friends who had also lost their jobs.

Christopher, a compatriot, said he has been in Dubai for around nine months working as a welder during the day and a barista in the evening.

He and his wife, who also works in a Dubai coffee shop, used to send 500 dirhams (136 dollars) a month home, where their two kids were left behind.

Migrant workers send billions of dollars home every year. One money transfer firm, UAE Exchange, said its volume last year was 12 billion dollars, most of it to India, Bangladesh and the Philippines.

Like Arnold, Christopher was working illegally in the hope that an employer would get him a work permit. Now he is searching desperately for anything.

But even for labourers who were brought to the UAE on a work visa to satisfy the needs of the once-booming economy, many are receiving the pink slip.

"Some 200 gardeners were sacked recently from our company" out of about 10,000 workers, said an Indian as he planted saplings in the garden of an elegant office building in Dubai.

"They told us the company does not have much work and is short of money," said the man in his mid-40s, refusing to give his name.

Two other colleagues, an Indian and a Bangladeshi, carried on trimming the hedge, appearing hesitant to say anything that might jeopardise their jobs.

"We are expecting to lose our jobs," said the man, who earns a meager 500 dirhams (136 dollars) a month in return for 48 hours a week.

He lamented that two years ago he had to pay what was for him a fortune of around 10,000 dirhams (2,725 dollars) to Indian intermediaries to get a job in Dubai.

Murukesan, an Indian cleaner, said his employer, a large cleaning and maintenance company, last week told workers who had completed at least two years of work to go home on four-month unpaid vacations.

"They said do not come back until we call you," he said with a faint smile, appearing content as he has completed only 18 months of his contract.

"In the past, workers were not taking vacations, even after four years of continuous work," he said, highlighting a huge work load in the immediate past.

It appears some of the unpaid "vacations" are simply a way of getting rid of people without having to pay them off. Under UAE law, workers laid off must be paid 21 days' salary for each of the first five years worked and a month's salary for every year after that.

"They are trying to find excuses to bypass the rules of terminating a contract," said Monir al-Zaman, labour attache at the Bangladeshi embassy.

"Compensation should be paid if workers are being fired," he told the media, adding that companies should resort to cutting overtime work and even reduce salaries before laying off workers.

In December, Khalfan al-Kaabi, a member of the Abu Dhabi Chamber of Commerce board of directors, said up to 45 percent of construction workers could be laid off this year if private sector projects in the UAE were delayed or cancelled.

Zaman said he could not provide a figure on Bangladeshi workers having lost their jobs in the UAE, because the process is not done "formally".

He also pointed out that he noticed, during inspection visits to labour camps, that many workers stayed in the UAE even if they were not being paid, in hope of finding work.

But poor unemployed workers cannot linger for long if jobs remain rare.

"Maybe this month I have to decide to stay or go ... because I don't have any money. Now I'm borrowing from friends," said Arnold.

Agencies

Has Raju left India after admitting of financial irregularities?

Amid speculation over his whereabouts, B Ramalinga Raju, who stepped down as Chairman of Satyam Computer after admitting to financial irregularities, is believed to have left for the US in connection with a court case.

Speculation mounted tonight when a TV channel reported that Raju may have gone to Dubai.

"We have no idea of where Raju is," a Satyam spokesperson told the media over phone when asked if he had left for the US in connection with a case filed by a British Telecom solution firm Upaid.

Raju was also not reachable on his mobile phone despite several attempts, but police sources said that Raju left here for Texas this morning from the Hyderabad Airport.

Earlier in the day, Andhra Pradesh Chief Minister Y V Rajasekhara Reddy had said that he would refer the Satyam matter to CB-CID for investigation.

Upaid had filed a petition in Texas seeking details of the USD 1.6 billion dollars acquisition of two Maytas firms, promoted by Raju's family, before Satyam dumped the deal after attack from investors.

In its petition, Upaid had demanded presence of Raju and senior directors of Satyam for questioning by its lawyers.

AIG to sell its Swiss unit

Troubled insurance giant American International Group will be selling its Swiss arm AIG Private Bank to an Abu Dhabi-based global investment firm.

In this regard, AIG has entered into an agreement with Aabar Investments PJSC (Aabar) to sell its subsidiary, the insurance firm said in a statement.

According to UK daily ‘The Telegraph’, the Swiss subsidiary would be sold for about $254 million.

The move is one of the major sale of asset by the battered AIG, after receiving a lifeline worth $153 billion from the Federal government.

The statement noted that under the new ownership, AIG Private Bank would become an independent financial institution, headquartered in Switzerland along with branches and representative offices in Hong Kong, Shanghai, Singapore and Dubai.

Source: Agencies

Retailers tighten belts at Dubai shopping festival

Some big Dubai retailers, accustomed to giddy spending in the Gulf Arab tax-free haven, are grappling with a drop in sales as consumers worry about the impact of the global financial crisis on their wallets.

The Gulf has not been as heavily hit by the credit crisis as Europe and the US, but the contagion has led to stock market routs, tight lending conditions and a range of government and central bank attempts to mitigate its impact.

In the United Arab Emirates, home to the glitzy financial hub of Dubai where shopping is virtually a national sport, a frisson of fear has seeped into consumers' minds.
"Business is 20 per cent down in the last week in retail," Mohi-din Bin Hendi, president of Bin Hendi Enterprises, told Reuters.

"In the beginning, people did not take it seriously. When they start to get their ATM cards refused from the bank, that's when sense come back ... that this is serious."

Bin Hendi, whose retail-based conglomerate operates in the Gulf Arab region and India and offers everything from jewelry to sofas, said the firm would take steps to ready for a further decline in consumer spending and would "cut the desirables, go to the essentials."

Asked whether he would cut jobs, he said: "Absolutely. We have not come to a figure as yet."
"People with wise moves won't suffer as much as those who think this is only a cloudy day and it'll clear up tomorrow. It won't clear up tomorrow that easily.

"We have to sit tight, cut down our costs and be smart."

Dubai consumers have begun to see uncomfortable signs on the crisis' toll on the city, long known for spending excesses.

Companies are quietly shedding jobs or not hiring, according to recruiters, while the Arab world's biggest listed developer, Emaar Properties EMAR.DU recently gave buyers more time to pay for new homes given difficulties in obtaining mortgages.

The UAE's biggest bank has stopped lending to foreigners who work for top Dubai property firms on fears a slowdown could jeopardize their jobs and income and an Islamic mortgage lender, Amlak AMLK.DU, has suspended new loans altogether for now.

Less spending per person
"There is less footfall in the stores, people are tightening their belts," said a retail manager who declined to be identified. "It's never been like this before."

The global financial meltdown came just as the world's biggest mall opened in Dubai and nearly each week has seen the announcement of one lavish retail exercise after another.

This week, British luxury retailer Burberry said it had created a new firm with its UAE franchisee, Jashanmal, that would manage all its retail and wholesale operations in the Gulf Arab region.

Jashanmal Group President Gangu Batra said forming the joint venture made business sense given its long ties to the British firm but the timing could have been better.

"Now all we can say is I hope it doesn't affect us too much. There will be some effect and we will see that effect in the course of time," he told Reuters.

Batra said same-store sales on a yearly basis were steady at the retailer, which operates department stores, booksellers and franchises for brands like Calvin Klein, but the firm was bracing for a slowdown in the wider economy in coming months.

"People are still there but spending per person has gone down," he said. "I don't think our country will be immune to these problems.

"I can see some slowdown when I go to restaurants and hotels. The view is, so far, there's no reduction in the tourists but then when they do the booking, they do so months in advance."
According to a 2007 annual country report, visitors to Dubai represent 69 per cent of all luxury retail and leisure spending.

Batra said spending levels were likely to decline even further once the current wave of vacationers head home.

Caution has seeped into every aspect of consumer spending. One Dubai-based dentist said business had fallen about 40 percent this year. "People see it as cosmetic rather than essential," she said.

Source: Reuters