Showing posts with label UAE. Show all posts
Showing posts with label UAE. Show all posts

Tuesday, July 28, 2020

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.

Saturday, July 25, 2020

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.

Friday, July 24, 2020

BR Shetty Siphoned-Off Millions from NMC Health to Daughter’s Tottering Businesses

Disclosure 

* Leaked confidential documents reveal that the NMC Health subsidiary transferred payments worth millions to daughter Reema Shetty’s failing business
* While these transfers were termed as ‘internal transfers’, accounts for the year ending December 2015, did not include the above-mentioned entities as subsidiaries
* Shetty was the chief executive and executive VC of NMC Health at the time of the proposed payments
 
In a shocking disclosure on UAE billionaire Dr. BR Shetty whose fortune suffered a blow after his two London-listed companies, hospital chain NMC Health and payments group Finablr, accounting for more than 70% of his net worth, were shrouded in controversies, it has been found that had been pumping millions in his daughter’s struggling business ventures.

Leaked confidential documents reveal that the NMC Health subsidiary transferred two payments of Dh 1m in 2015 to the company behind the 'Just Falafel' chain of restaurants that was established by Dr. Shetty’s daughter Reema and her husband Md. Bitar about a decade earlier.

The very next year, it signed off on five bank transfers totaling Dh 4 million in little more than two months, to another one of her ventures, the UAE based catering and food consultancy company, 'The Foodsters Inc'. This enterprise was set up in 2015 by Reema and her husband after the failure of the global expansion of ‘Just Falafel’.

While these transfers were termed as ‘internal transfers’, accounts for the year ending December 2015, did not include the above-mentioned entities as subsidiaries, nor do they appear among the hospitality interests of BRS Ventures, Shetty’s UAE-based holding company.

Says a forensic accountant, on conditions of anonymity, “The series of proposed payments, approved by NMC raise concerns of potential wrongdoing because they were labelled as internal transfers within the hospital group.”

This exposé amply hints at the fact that Shetty being the chief executive and executive vice chairman of NMC Health at the time of the proposed payments, made payments that were 'unusual' and that the transfers should not have been described as internal movements.

‘’If the group does not own these food companies, then it is not an internal transfer. In the corporate world, it must either be one of three things, for purchasing goods or services, lending money or repaying a debt,” adds the forensic accountant.

While Shetty has been constantly claiming that 'fraudulent transfers' were made that he had no knowledge of, before the company was forced into administration by its largest lender, Abu Dhabi Commercial Bank, these transfers authorised by NMC Health to a company run by a member of his family are raising a big question mark on who was this unidentified person authorizing money transfers from NMC’s account at Bank of Baroda in Abu Dhabi to ‘Just Falafel Holdings Limited’ as well as 'The Foodsters Inc'. The proposed payments are all detailed in transfer request documents sent by NMC Healthcare to the Abu Dhabi branch of the Bank of Baroda.

The former London-listed NMC holding company was forced into administration in April amid claims of fraud, mismanagement and the discovery of undisclosed loans of $4.1 billion (Dh 15bn). Administrators Alvarez & Marsal said last month they were scanning documents and preparing a series of interviews with directors to figure out what could be retrieved for creditors.

The NMC scandal came into the limelight in December last year, when short seller Muddy Waters raised concerns in a report about NMC’s debt, alleging that it was vastly understated. While NMC termed the report ‘false and misleading’, the company’s shares plummeted 64% in the days after the Muddy Waters report was published. In late March, the company admitted to having a debt of $6.6 billion, more than three times the $2.1 billion it reported in June last year.

Wednesday, July 15, 2020

Meitra Hospital Appoints Dr. P Mohanakrishnan as the New CEO


Dr. P Mohanakrishnan, a health professional with more than 3 decades of experience in healthcare spanning India and the Middle East, joins Meitra Hospital as Chief Executive Officer (CEO).

“Dr. P Mohanakrishnan brings with him a strong   discipline and prowess in establishing and managing hospitals not just in India, but Internationally as well. We look forward to his wealth of experience and are excited to have him lead Meitra & achieve KEF’s vision of transforming Indian Healthcare.”, said Faizal E. Kottikollon; Chairman, Meitra Hospital & Founder Chairman, KEF Holdings.

He has held leadership roles across premier healthcare facilities in Kerala & GCC. Prior to taking up his current position, Dr. P Mohanakrishnan served as the CEO of Avitis Institute of Medical Sciences, Palakkad. He also founded the prestigious Institute of ENT and Head and Neck Surgery in Kerala and established it as one of the premiere institutes specializing in the discipline of ENT in India.

“The healthcare sector across the world has become the nucleus of sustenance. And Kerala with its well-established healthcare networks and infrastructure is perfectly poised to welcome people seeking quality and advance treatments, not just from the rest of India but from across the globe. Meitra Hospital offers world-class tertiary care by blending the concepts of ‘Evidence Based Guidelines’, modern-day technology, notable clinical expertise and unparalleled infrastructure. I am looking forward to establishing the facility as a well-noted centre and preferred destination amongst those seeking superlative care, in line with international standards,” said Dr. P Mohanakrishnan.

Saturday, July 11, 2020

Emirates Announces Repatriation Flights to Five Indian Cities Between July 12-26, 2020



Emirates will be operating special repatriation flights to five Indian cities between 12 and 26 July to assist stranded Indians get home and for residents of UAE currently in India to return to the UAE.

The flights will be operated to Bengaluru, Delhi, Kochi, Mumbai and Thiruvananthapuram between 12 and 26 July 2020 offering the following flight frequencies

Bengaluru: twice daily flights
Delhi: twice daily flights
Kochi: twice daily flights
Mumbai: thrice daily flights
Thiruvananthapuram: once daily flights

The flights to Bengaluru and Mumbai are subject to state government approval.

Flights can be booked on emirates.com, through travel agents, Emirates’ sales offices and contact centre. Passengers must meet all the entry requirements of the destination to be allowed to board the flights.

Flights from Dubai to India
Only Indian citizens stranded in the UAE will be allowed to fly from Dubai to the five Indian destinations.

Flights from India to Dubai
These flights will be available for UAE nationals and residents with prior entry approval from the General Directorate of Residency and Foreign Affairs (GDFRA) for residents of Dubai and ICA approval for residents of other emirates of the UAE.

All passengers travelling from airports in India to Dubai are also required to carry a negative Reverse Transcription Polymerase Chain Reaction (RT-PCR) certificate issued by a laboratory authorised by the government of India to be accepted on the flight. Certificates must be issued no more than 96 hours before departure.

More information for returning UAE residents can be found at https://www.emirates.com/ae/english/help/flying-to-and-from-dubai/

Health and Safety First
Emirates has implemented a comprehensive set of measures at every step of the customer journey to ensure the safety of its customers and employees on the ground and in the air. Emirates has modified its services onboard these flights in line with requirements from the authorities. Visit www.emirates.com/wherewefly for more information on the products and services onboard each flight.

Premium customers travelling from Dubai can now also enjoy Emirates’ Chauffeur Drive service and relax in its Lounge facility at Dubai International airport, with the restart of these signature services after a full health and safety review.

Emirates continues to offer customers a wide range of travel options. The airline’s network will encompass 58 cities by mid-August covering destinations across six continents.

Thursday, June 25, 2020

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.

Monday, September 28, 2009

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

Friday, August 28, 2009

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

Wednesday, August 26, 2009

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

Sunday, March 29, 2009

Over 121,000 Filipinos' jobs axed amid global recession

Over 121,000 Filipino workers have either lost their jobs or suffered pay cuts or reduced work loads because of the economic crisis, a government official said Sunday.

Between October last year and mid-March, 11,574 permanently lost their jobs and 38,806 others were temporarily laid off by Philippines-based companies, Labour Undersecretary Rosalinda Baldoz told an economic forum in this industrial enclave north of Manila.

A total of 59,149 others were placed on flexible work arrangements, she added.

Meanwhile, 12,000 out of the 8.5 million-strong Filipino work force abroad had lost their jobs, mostly in Taiwan and the United Arab Emirates (UAE), according to Baldoz.

Last week the government said electronics firms based in the Philippines began giving their remaining workers half-pay or 150 pesos (3.11 dollars) a day in a bid to keep them employed until demand picks up again.

The labour undersecretary said the electronics sector was the worst hit with almost half the total work force affected.

The crisis has also hit about 10 per cent of employees in the automotive, garments, mining, property, services, and woodworking industries, she added.

She went on to say the government expects the crisis to bottom out over the next few months as just 397 workers a day were losing their jobs in mid-March compared to 437 at the start of the month.

"Before the first semester ends, we could say that the worst is over," she said.

"In the next five months, workers' displacements will continue but we expect it to be on a slower pace and only in the export manufacturing sector."

Agencies

Thursday, February 19, 2009

Oil near $35 amid grim US economic news

Oil prices rose slightly to above $35 a barrel on Thursday in Asia despite grim U.S. economic news that pointed to a deep recession and weaker crude demand.

Light, sweet crude for March delivery rose 54 cents to $35.18 a barrel by late afternoon in Singapore on the New York Mercantile Exchange. The contract on Wednesday fell 31 cents to settle at $34.62.

The March contract expires on Friday, and traders switched their focus to the April contract, which rose 62 cents to $38.03.

The Federal Reserve on Wednesday confirmed what many investors already suspected _ that the US economy has significantly deteriorated in the last few months.

The Fed said it expects the economy will contract between 0.5 and 1.3 per cent this year. Its previous forecast from November had a 0.2 per cent contraction as the worst case scenario.

The Fed also said the unemployment rate will likely rise to between 8.5 and 8.8 per cent this year, higher than its previous forecast of between 7.1 and 7.6 per cent.

The current global economic slump began in 2007 with a crisis in the US sub-prime mortgage sector, and the housing market continues to buckle under the weight of surging foreclosures.

A report from the Commerce Department on Wednesday said construction of new homes and apartments plunged 16.8 per cent in January from the previous month, to a seasonally adjusted annual rate of 466,000 units, a record low.

``The housing data suggests the recession is even worse than we thought,'' said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. ``We need to see the housing market stabilize because consumer sentiment is very much correlated to it.''

Investors are skeptical that a $787 billion stimulus bill signed this week by President Barack Obama will spark a quick recovery. The White House on Wednesday said the government will spend $75 billion to help prevent millions of Americans from losing their homes.

Crude investors are also concerned a jump in oil inventories is reflecting a steep drop-off in demand.

Analysts expect crude stocks will grow by 3.5 million barrels when the Energy Department releases inventory data for the week ended Feb. 13, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Inventories have risen more than 30 million barrels in the last six weeks.

``Inventories are the focus now,'' said Moltke-Leth. ``If they rise again, it will put more downward pressure on crude.''

The Organization of Petroleum Exporting Countries has struggled to bolster prices as output cuts fail to keep up with falling demand.

Venezuelan Oil Minister Rafael Ramirez said Wednesday the group may cut production again at a meeting on March 15, on top of the reduction of 4.2 million barrels a day announced since September. Ramirez said the 13-member cartel would like prices to rise to $70 a barrel.

``OPEC is looking very weak right now,'' said Moltke-Leth said. ``There's a lot of chatter from them, but the market isn't really listening.''

Moltke-Leth said prices will likely fall to about $32 a barrel, which would test the 10-year average price.

``$32 and a half is a significant line in the sand,'' he said. ``It's a key support level, and I expect the market to test how strong it is.''

In other Nymex trading, gasoline futures rose 0.83 cent to $1.07 a gallon. Heating oil gained 1.71 cents to $1.16 a gallon, while natural gas for March delivery jumped 3.0 cents to $4.24 per 1,000 cubic feet.

In London, the March Brent contract rose 98 cents to $40.54 on the ICE Futures exchange.

Agencies

Tuesday, February 17, 2009

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

Friday, December 26, 2008

Will oil prices rebound in post-Christmas trade?

World oil prices rebounded in Asian trade on Friday after tumbling to four-year lows before the Christmas break, with economic gloom weighing on the market, analysts said.

New York's main contract, light sweet crude for February delivery, rose 93 cents to 36.28 dollars a barrel after closing down 3.63 dollars at 35.35 in US trade on Wednesday.

Brent North Sea crude for February delivery rose 1.04 dollars to 37.65 dollars. In London the contract settled on Wednesday 3.75 dollars lower at 36.61 dollars, its lowest since July 2004.

After taking a one-day trading break for Christmas, oil reopened higher on Friday partly because of technical factors, said Ken Hasegawa, manager of the energy desk at Newedge Japan brokerage.

"After a sharp drop in sentiment on Wednesday, before the holidays, today (there is) a slight technical rebound," he said from Tokyo.

Another factor boosting prices was the US government's latest weekly report on crude stockpiles in the world's largest energy consumer, Hasegawa said.

The Energy Information Administration (EIA) report, released Wednesday, showed US crude inventories sank 3.1 million barrels in the week ending December 19. The drop was far heavier than market expectations.

The EIA added that crude reserves were 9.1 percent higher than at the same stage last year.

Analysts said that recent US data showing that the world's biggest economy remains in a recession were likely to keep crude oil prices under pressure in the immediate term.

A sharp global economic downturn that has slashed the world's demand for energy has led the price of crude oil to collapse by about 75 percent since hitting record highs above 147 dollars per barrel in July.

Oil markets are pricing in a continued decline in economic activity despite efforts by governments around the world to stimulate activity, MF Global energy analyst John Kilduff said.

"The energy markets appear as unappreciative of the stimulus efforts as any of the other markets and the pricing in of doom and gloom are producing price levels that transcends reality," he said.

"Obviously we haven't reached the ultimate end point yet."

The Organisation of the Petroleum Exporting Countries (OPEC), which produces about 40 percent of the world's crude, agreed last week to cut output by 2.2 million barrels per day to shore up the market.

Prices have continued to slide despite OPEC's announcement.

Source: Agencies

Saturday, December 6, 2008

Oil could plummet down to $25 a barrel!

Oil prices are likely to keep falling until well into next year and could reach $25 a barrel before recovering, US bank Merrill Lynch. In a research report published on Thursday, it said oil prices should begin to rally in the second half of 2009.

Merrill Lynch recently cut its forecast for the average price of US crude oil futures and North Sea Brent crude oil to $50 a barrel from a previous estimate for both crudes of $90.

"With demand vanishing across all key oil consuming regions, benchmark crude oil prices continue to plummet," it said. "In the short-run, market participants will focus on both OPEC and perhaps even non-OPEC producer responses to balance the market."

"A temporary drop below $25 is possible if the global recession extends to China and significant non-OPEC production cuts are required," it said.

"In our view, oil prices could find a trough at the end of Q1 2009 or early Q2 2009 with the seasonal slowdown in demand. Then, as economic activity starts to strengthen, we see oil prices posting a modest recovery in the second half of 2009."

Oil prices hit a peak above $147 a barrel in July but have fallen more than $100 since then as the severity of the global economic downturn has become clear.

Merrill Lynch said a combination of high oil prices and high leverage had proven dangerous for the global economy.

"On October 1, we lowered our average crude oil price forecast in 2009 to $90 per barrel based on a global GDP growth forecast of 3 percent. Since then, our economists have revised their 2009 global GDP growth forecast down to 1.3 percent, a scenario consistent with a global recession.

"As a result, we are now lowering our average WTI and Brent crude oil price forecast to $50 per barrel for 2009."

It said the major downside risk to its price forecast would be a revision of economic growth assumptions for China, which are currently at 8.6 percent for next year.

"In the short-run, global oil demand growth will likely take a further beating as banks continue to cut credit to consumers and corporations," it said. "We now expect an outright contraction in global oil demand in 2009."

Source: Economic Times

Tuesday, December 2, 2008

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

Sunday, November 23, 2008

Dubai real estate suffers major setback

Dubai's property sector suffered a series of blows this week after brokers confirmed a rise in distressed sales, a real estate guide downgraded its rating on residential property and an Islamic lender suspended new loans.

The once-booming real estate sector of the emirate is showing signs of collapsing due to the global credit crisis, as prices fall sharply and buyers struggle to get mortgage loans.

"There is a sizeable increase in the number of property owners in an urgent state to sell," Robert Macnair, sales director of Dubai-based Elysian Real Estate, told the media.

"It could be they have a large payment coming up or they've seen the market dropping over the last month ... there is a real sense of urgency."

Property prices on Dubai's Palm Jumeirah island, a man-made peninsula developed by government-owned Nakheel, have fallen as much as 40 percent since September, real estate brokers said on Thursday.

Elysian this week sent out a text message to up to 40,000 mobile phones advertising distressed property sales offering a luxury six bedroom, six bathroom villa in Dubailand, a multi-billion-dollar luxury theme park.

The villa advertised costs 21 million UAE dirhams ($5.72 million) - half its original price - and will be completed in 2009, the text read.

Dubai downgrade

Global Property Guide cut its long-term investment rating on Dubai residential property on Wednesday from neutral to negative due to the drop in gross rental yields from last year.

"Gross yields are now an average of 5.5 percent, significantly down from an average of 7.5 percent a year ago ... At these levels, Dubai is less attractive than it was previously as an investment property," it said in a research note.

Global Property Guide said Dubai has "an enormous" amount of new supply and expects prices to fall over the next 2-3 years.

To compound matters, Dubai Islamic mortgage lender Amlak AMLK.DU said it suspended new loans. This follows moves by several banks to tighten lending conditions in August and September.

"It is very hard to get loans now. Customers are suffering," Rehab Gouda, senior sales agent at Al Jabal Real Estate said.

"Either they have pre-approval from before the crisis, or they are cash buyers."

Source: Agencies

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