Dubai Mall set for August 28 opening

One of the world’s largest shopping and entertainment destinations, The Dubai Mall, will open on August 28, Emaar Malls Group has announced.

The Dubai Mall has a total internal floor area of 5.9 million square feet and leasable space of 3.77 million square feet, which is equivalent to the size of 50 football fields put together.

The mall will feature over 1,200 stores, including two anchor department stores and 120 food and beverage outlets.

Mr Yousif Al Ali, General Manager of the The Dubai Mall, said work is on schedule to complete the mall by August. Source

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A move to stabilize food prices

H.E. Sultan bin Saeed Al Mansouri, UAE Minister of Economy; and H.E. Yousif Ali, Chairman of Lulu Hypermarket Group; have today signed a Memorandum of Understanding (MoU) at the Ministry of Economy (MoE) in Dubai, in a move that will see Lulu Hypermarket implement the first phase of a program to preserve the 2007 prices of more than 32 basic food goods throughout 2008.

The move, which aims to stabilize prices, alleviate inflation, maintain market balance, and protect consumers, completes a number of recent initiatives jointly conducted by the Ministry in collaboration with Cooperative Societies; in line with the MoE's call to fix the prices of basic food products at cost prices.

Commenting on the MoU, H.E. Al Mansouri praised Lulu Hypermarket Group for being the first private sector company in the country to implement the program. 'The initiative by Lulu Hypermarket to fix the prices of 32 food commodities emphasizes the vital role that the private sector can play in contributing to price stability, maintaining market equilibrium and contributing effectively to the development of society and the national economy,' Al Mansouri said.

H.E. also highlighted how the initiative underscored the social responsibility of the UAE's private sector, under the directives and leadership of H.H. Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE; and H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai; who both acknowledge the role of the private and public sectors in advancing the country's social and economic progress.

H.E. added that the Ministry will continue to work in collaboration with other bodies to control monopoly, exploitation, and other threats to market stability; noting that this was not the responsibility of the MoE alone, but a joint responsibility in which federal and local efforts integrate to eliminate any negative practices that may affect the consumer, society and the national economy.

H.E. Al Mansouri also called for stronger cooperation between the public and private sectors in the country to address rising prices, particularly of basic commodities, which he noted is an international phenomenon not limited to the UAE.

Under the terms of the MoU, Lulu Hypermarket will fix the prices of 32 basic food commodities at 2007 prices, which will apply to various types of rice, sugar, oil, flour, tea, butter, salt, milk and its products, tomato paste, legumes, chicken, meat, cheese, egg, macaroni, water and bread.

Yousif Ali, Chairman of Lulu Hypermarket Group, commented that the Group responded quickly to the MoE's initiative based on its conviction about the importance of such programs to eliminate any negative practices that threaten free competition in the UAE. He further encouraged the private sector in the UAE to not focus solely on profits, pointing out the danger of inflation for both the society and the economy.

The MoU with Lulu Hypermarket Group comes only weeks after the MoE signed a similar agreement with the Union Cooperative Society in Dubai to preserve the 2007 prices of 16 basic food commodities. Other cooperative societies responded to the MoE's request to sell many of their goods at cost prices within the efforts to control price rises and curb inflation. (AME Info)

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Aswaaq to support and provide opportunities to UAE nationals

Aswaaq, the public joint stock company of which the Dubai government has 45% stakes, held an introductory meeting today with members of the Mohammed Bin Rashid Establishment For Young Business Leaders (SME) at the Grand Hyatt Dubai.

Attended by high officials from both Aswaaq and SME, the meeting saw the participation of approximately a hundred SME members who have different business and service activities in the Emirate of Dubai and receive the attention and support of the Establishment.

The meeting comes as an initiative on behalf of Aswaaq which believes in social responsibility and gives priority to the Emirate's nationals, particularly the business pioneers among them by introducing SME members with the opportunities and advantages Aswaaq has to offer. In so doing, Aswaaq will be leasing areas within the communities in order to fulfill its commitment to providing a full range of services under one roof.

In addition, Aswaaq will be creating job prospects and opportunities for UAE nationals to become major importers and suppliers to the supermarkets and community centres.

Abdul Baset Al-Janahi, CEO of Aswaaq, said: "This introductory meeting comes as an interpretation of the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, and in line with Aswaaq's belief in social responsibility, Aaswaaq will provide UAE nationals, especially business entrepreneurs at SME with many opportunities. These include better rates on opening a supplier's account at Aswaaq, on new products, as well as on additional display areas for the presenting of their special offers and promotions, while allowing them once a year to lease two display areas for free during promotion periods for the duration of one week to 10 days.

Moreover, Aswaaq will allow members to announce and advertise particular products and to take part in the SME annual promotion held once a year. FurthermoreAswaaq will not charge SME members for replacing the goods or products they supply." Akil Kazim, Director of Operations at SME, stated that the opportunities and advantages offered by the company to SME members are a catalyst for them to develop their business and should drive them towards more excellence, innovation and reconnaissance, providing them with a chance to contribute to their country's progress and serve their society.

Al-Janahi pointed out that in line with its role in serving the local communities Aswaaq will build its own shopping centres in many residential areas in the Emirate of Dubai, close to the residents homes with the aim of meeting their daily needs of consumable products and other necessary services to reduce the burden of moving from one place to another in search of their daily necessities. Thus, great opportunities await UAE nationals; whether they are business entrepreneurs or otherwise, to present their services through the shopping centres of Aswaaq or to personally work at these centres occupying any of the many jobs and posts that will be created by the company. WAM

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Bloomingdale's in Dubai talks

Famous US department store Bloomingdale's could open in Dubai before the end of the year, becoming the latest high-end retailer to set up shop in the emirate, according to reports in the US.

The launch may be via a franchise agreement with fashion retailer the Al-Tayer Group, which already boasts a portfolio of 30 brands, including Giorgio Armani, Bulgari, Coach, Dolce & Gabbana, Gucci and Yves Saint Laurent.

Bloomingdale's is famous for its high-end fashion and legendary end-of-season sales.
The reports claim that Bloomingdale's is in talks with Al-Tayer to open a 129,600-square foot store in one of the two wings of Dubai Mall, set to become the largest in the world.

The mall is being built by Dubai's Emaar properties, the developer behind the Burj Dubai, which will be the world's tallest structure.

The mall has been under construction since 2004 and is expected to be finished in late 2008 or 2009. Parts of the mall are already open.

"Yes, I know Bloomingdale's is coming to Dubai, because when real estate groups come and present their projects, they tell you who else will be located next to you," the reports quote a source as saying.

Michael Gould, Bloomingdale's chairman and CEO, has declined to comment on the retailer's Middle East expansion plans. A spokesperson at Al-Tayer also declined to comment on the reports.

The Dubai Mall is expected to include more than 1,000 stores and cover about 10 million square feet. It is located next to the Burj Dubai in Emaar's $20 billion Downtown Burj Dubai development. Source

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Retailers slam UAE food price cap

A move by the UAE government to set maximum retail prices for essential goods will adversely affect market supply, retailers said on Saturday.

The Ministry of Economy has issued retailers with a list of maximum prices for goods including eggs, basmati rice, chicken and drinking water, prompting concerns over quality as well as supply, reported UAE daily Gulf News.

Businesses found setting prices above the prescribed limit will be fined 10,000 dirhams ($2,724), with hoarders fined 20,000 dirhams.

The move has been broadly welcomed by consumers, however retailers said they would be forced to stop stocking most of the items listed if the rule was strictly enforced, Gulf News reported.

Leading food retailers are expected to meet ministry officials this week, the newspaper said. Source

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Dubai announces new supermarket chain aswaaq

Dubai is forming aswaaq, a new public joint stock company destined to become the largest chain of supermarkets in the UAE it was revealed Saturday.

The Governement will own 45% and allocate land to aswaaq, while the other 55% will be listed as an IPO, reserved exclusively for UAE nationals, the company said in a statement.

This will represent the first foray of Dubai governement into the food retail business.

HH Sheikh Mohammed bin rashed Al Maktoum, the Ruler of Dubai has appointed a founding committee consisting of Ahmad bin Bayat, the secretary-general of the Dubai Executive Council, as Chairman of Aswaaq. Abdul Basit Al Janahi, CEO of Mohammed Bin Rashid Establishment for Young Business Leaders, and Dubai Real Estate Corporation board member Sami Al Ghamzi were both appointed to the aswaaq board.

"The committee will soon hold its first meeting to adopt the statute of aswaaq, its strategy and objectives, to ensure its powerful take-off and smooth operations in the UAE market," the statement said.

"aswaaq will focus in its work on using the best international practices to decrease the operating costs of the project. So it will be possible to provide the products and services to the customers with reasonable and fair prices, in addition to its contribution in the leading mission of the supporting establishments to the minor and medium projects in the UAE," said Bin Bayat.

Bin Bayat said that aswaaq was created to provide affordable products and services to consumers as well as support social projects in the UAE. "A share of the profits will be given to social services," he said.

"aswaaq will be a leading national company, established with the support of UAE nationals contributing to their society with the introduction of a new concept in modern shopping," Al Janahi said. "It also provides profitable investment opportunities to UAE nationals."

"aswaaq plans to open a number of community centres and supermarkets in major UAE locations which will provide general public goods and services at fair prices. Other aswaaq locations and opening dates will be announced soon," said Al Janahi. Source

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Families to suffer as global food crunch sends prices up

The cost of basic foods will continue to rise in the Middle East as demand from emerging markets drives a global agricultural commodity crunch, Merrill Lynch said on Tuesday.
The investment bank said in a report that rapid economic development in countries such as China and India was driving demand for food up sharply, adding pressure to the supply chain and sending prices skyrocketing.

It said economic development, combined with pollution and a lack of water for irrigation, were putting serious constraints on the amount of arable land available.
“Global constraints on food production are shifting production patterns and pressuring prices,” the bank said.

Merrill said agricultural inflation, or agflation, was beginning to have a substantial impact on inflation in emerging markets.

"China’s inflation rate may be heading to a 10-year high due in large part to agflation," it said.

Prices for basic foods such as bread and eggs have risen sharply in the Middle East in recent months, with governments employing measures from price caps to subsidies to offset the impact on struggling low- and middle-income families.

Merrill said Egypt’s consumer price index (CPI) for food and non-alcoholic beverages peaked above 17% for 2007, while Saudi Arabia's foodstuff and beverages CPI soared past 9%.

According to the Saudi Trade Ministry, prices of food products, which account for the largest chunk of a family's spending, may rise by up to 30% in 2008 due largely to a drop in global supplies.

In the UAE, costs of basic foods such as eggs and bread rose by as much as 30% in 2007, contributing to record inflation in the Emirates.

According to some reports from Kuwait, the price of basic foods has risen drastically, with dairy products up 25% over the past six months, canned food up 10%, and imported meat up by almost double.

Merrill said in its report that farm product prices in the US, a major producer of the world’s basic food products, had not risen as rapidly as they have recently since the mid-1970s.

“Those higher input costs are being passed along in the form of higher prices for processed foods as well,” the bank said.

Policies in the US mandating a shift towards biofuels have also had a “tremendous” impact on crop allocation and contributed towards a rise in prices for some basic foods, it added.

“In the corn market the passage of the Energy Bill mandating use of corn-based ethanol pushed corn prices up, approaching the $4 level once again,” Merrill said. “Wheat prices continued to set new all-time highs going into 2008.”

Although a short-term contraction in agricultural prices due to a possible US-led recession is likely, Merrill said the long-term outlook suggested higher costs in the future. Source

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Global Village Review

Visitors from different nationalities and cultures thronged the gates at Global Village, a member of Tatweer, as Dubai Shopping Festival commenced. Adults and children alike lined up to collect their tickets and walk into a world of bargains and deals from across the globe.

With 30 pavilions participating this year, Global Village has come across as an international market fair.

“The weekends are always a trifle richer in customers but today being the second day of DSF, I can see a marked difference in the usual numbers. There are foreigners too and many buyers from across the Emirates,” commented Sravan Kumar, a Rajastani shopkeeper who keeps a stall selling puppets in the Indian Pavilion.

He added, “The clientele I have is largely Westerners so I am very happy to see more sales being made. I am sure the tempo will pick up pace as the shopping festival warms up. Apart from the puppets, the visitors are intrigued by the bangle stand, flutes, wind chime birds and traditional music instruments that I have in my shop. This is my third time at Global Village; I feel the business only gets better each time!”

Stellamae Masumba, a saleswoman from Zimbabwe has her stall in the North African Pavilion and agreed, “Before DSF started, we saw more of the local crowd which is also cosmopolitan but now I can see many tourists who have come by to see the magic of Dubai Shopping Festival unfold. At my stall I sell mainly crochet items – caps, dresses, cardigans, blouses, socks, hats, bedspreads and table covers. I had kept aside some items for this time of the sales period. With larger number of visitors, I am confident of better deals and more purchases now.”

“Arabic perfumes, oud, dehnal oud and ittar are very popular. I keep the best bukhoor burning by the shop to rope in as many customers as possible. It is the first time we have set shop in Global Village, the response has been good but I have a feeling things are only going to get better with the onset of DSF. The products we have range from Dhs 500 per kilo to Dhs 4,000 but we have noted that customers like the best from the lot. The crowd is very selective especially the Arab buyers, so special incense worth Dh 5,000 per kilo has been flown in from our suppliers in Cambodia to meet the growing demands of these clients,” explained Mohammed Mirbahuddin, a perfume shopkeeper in the Bahrain Pavilion.

The Global Village began on December 13 and continues until March 1. Entry is priced at AED 5, infants (under 2 years) and physically challenged visitors enter for free. Gates open at 4pm daily and are open to public on all days. However, Monday is families only day. Source

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BMW Group Sales Reach Record High in Middle East

BMW Group has achieved its highest sales ever in the GCC countries with a 14 per cent increase over 2006. Similar growth was reflected in overall Middle East sales with a 6 per cent increase - reaching a record figure of 15,150 BMW and MINI units across the region.

Compared to 11,250 sales in 2006, the GCC recorded a total of 12,782 units sold in 2007 while the Middle East in total accounted for 15,150 units in comparison to 14,332 units in 2006.

The boost in sales was led by Abu Dhabi Motors the exclusive importer in Abu Dhabi and Al Ain, with a 36 per cent sales increase (2,561 units in comparison to last year's 1,890.)

AGMC, the exclusive importer for Dubai and the Northern Emirates, once again achieved the highest overall sales figures for the Group, delivering 3,594 automobiles to customers.

"The Middle East is a region of great opportunity and potential for BMW Group, as exhibited by the extremely healthy growth of nearly all of the markets over the past few years," said Phil Horton, Managing Director, BMW Group Middle East.

"Despite some regional challenges, we have been able to record a noteworthy growth, and we remain optimistic that this growth will continue for at least the next three years to come."

The top growth markets in the GCC, following Abu Dhabi, were Qatar and Kuwait with 25 per cent and 24 per cent year-on-year increases respectively. The highest growth in the Levant markets was recorded by Syria with a 22 per cent increase in sales, building on last year's phenomenal 94 per cent growth.

Last year saw a host of new launches by BMW Group Middle East. Notable among them were the all-new BMW X5 Sports Activity Vehicle, the new BMW 3 Series Convertible featuring a retractable hard top, and the new MINI Cooper and MINI Cooper S.

These new models contributed to the regional sales growth, notably the new X5 which experienced an impressive 146 per cent increase over 2006 with sales of 3,616 units (previous year: 1,663). BMW 5 Series sales stood at 3,464 units, while the BMW 3 Series and 7 Series recorded sales of 3,054 and 2,793 units respectively.

MINI achieved a 29 per cent increase in sales following the launch of the all new model in April 2007, with a total number of 612 units sold in 2007 in comparison to 475 units in the previous year.

"The growth that we have witnessed last year is sure to continue into 2008 and 2009 with the introduction of several important new products, including the all-new BMW X6, the first Sports Activity Coupe for the premium luxury market, and at the end of this year the introduction of the brand new 7 Series," continued Horton.

"We also have several new models in the range that will further strengthen our position in the region such as the new BMW M3 Sedan, the new 1 Series Convertible and Coupe, and the much awaited MINI Clubman." Source

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Launch of 'The Last Mile' will help local brands boost market share

Companies in the Middle East wanting to better understand the buying patterns of their customers can now take advantage of a new analytics tool specially designed for the job. Called the Last Mile, this trademarked offering of OgilvyAction is designed to help companies drive sales and brand equity and is available for the first time in the region.

The Last Mile refers to the "path along the decision to purchase" or "the distance a consumer travels between an attitude and an action," explained senior executives of OgilvyAction at the company's official launch yesterday. "It is all about the big brand idea that is communicated to consumers at various touch-points to steer consumer behavior along the path to purchase. Whether it's sampling, point-of-sale material, retail merchandising or experiential marketing, they said. Statistics show that between 40 and 70 per cent of purchase decisions are made in store.

The executives said their approach was to "develop communications which ensures that their clients' brands are the ones chosen by shoppers, whether the purchase decision takes place in the street, at events, on-line or in store". The aim is to encourage consumers to switch brands, thereby increasing its share of the brand spend, rather than to encourage them to spend more, explained the CEO of the EMEA region, Steve Harding.

The two analytics tools that are available - MarketAnalytics and ShopperAnalytics - are proprietary planning tools. These enable the measurement of not only the impact of messaging, such as clarity, quality, distribution and trade compliance of in-store communication, but also allows the importance of the various touch-points along the final path to purchase," Harding explained. These tools allow reporting at various segments (channel, region, retail group, salesman or distributor territory) all the way down to the individual outlet.

Dubai is the location for OgilvyAction's first office in the region and it aims to grow across 10 markets in the next three years, founder and CEO of Memac Ogilvy, Edmond Moutran said. "We see a big need for these specialised services and experts in consumer behaviour and activation," he said, adding that the market was "starving for expertise," in this area.

The company has had nine people working in the region for the past nine months, researching the Saudi Arabian, Kuwaiti and UAE markets to ensure it has a thorough understanding of consumers' spending behaviour. The results from this research should be available in about eight weeks, said Moutran, and will provide "information that retailers and brand owners won't have." He expects the number of employees in the UAE to grow to 20 by April 2008. Source

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Dubai's shopping malls ready for DSF 2008

As the countdown has started for Dubai Shopping Festival 2008 (Jan 24 - Feb 24) to begin, Dubai's malls are racing against time, lining up whopping promotions and exciting bargains for the month-long bonanza.

In anticipation of millions of visitors, Dubai's glitzy shopping centres have decided to increase their promotion budgets in a way befitting the big annual celebration which has become a sought-after attraction globally due to its innovative events and organizational expertise.

Going by past experience, mall officials have underscored the paramount importance of the region's biggest shopping celebration, which, they said, included the introduction of enticing prizes and raffles, large-scale promotion campaigns and enthralling entertainment events for a wide range of DSF audience.


BurJuman and Reef Mall
Eisa Adam, BurJuman & Reef Mall General Manager, said the mall administrations had earmarked a considerable budget for DSF 2008, taking into account the remarkable growth of DSF and its ability to consistently boost retail sales all across Dubai.

'There is a 50% increase in BurJuman's budget over the past edition of DSF. We are now giving the finishing touches to the promotion campaign that will add more glamour to the mall,' said Adam, highlighting the various fun events that will cater to all visitor segments during the month-long bonanza.

'The mall administration is coordinating with all its stores, totalling 315, to offer distinctive promotion campaigns,' he said, noting that up to 80% of the Centre's stores will participate in the global event and offer reductions to the tune of 80% on selected products.'

Reef Mall's budget has also got augmented, with the promotion campaign to be announced soon, he added.

'Reef Mall's stores will participate and offer discounts up to 80% besides organising entertainment activities that truly reflect the stature of the big event.


Mall of the Emirates
'Mall of the Emirates has lined up exciting promotions and unique entertainment programmes that cater to all family members during the DSF,' said Fouad Sharaf, Vice President of the Mall of the Emirates.

'The Mall will host international troupes from different parts of the world, including Africa, the Americas, Europe and Asia, on a daily basis at the Galleria throughout the whole event.'

The Mall received up to 3.3 million visitors during DSF 2007, achieving a 40% sales increase, he remarked, expecting this year's edition to exceed all expectations.

Most of the Mall's 466 stores are offering big discounts of around 60 per cent plus the promotions devised by each store, with the Mall of the Emirates itself offering incredible prizes and raffles worth above 2 million, he explained.

Deira City Centre
'Deira City Centre is organising entertainment events that cater to different ages and tastes,' said Fouad Al Naggar, the Vice President of Deira City Centre, a MAF member and a key DSF sponsor.

Visitors and shoppers are the big gainers from the massive promotion campaigns offered by the 370 retail stores located at Deira City Centre, he said, expecting a 10% sales increase over the same period last year.

'For each AED 300 spent, the shopper gets the chance of entering the weekly raffles and winning car driving lessons offered by Dubai Autodrome. The biggest prize is an elegant sports car,' he added.

Al Ghurair City
Salim Al Ghurair, CEO of Al Ghurair City, said the mall always looks at its best during DSF, offering an array of activities and chances of winning for the whole family through the alluring discounts introduced by the mall's stores throughout the whole event.

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UAE residents top spenders in the Arab world

People in the UAE spend about US$20,000 (Dh73,400) a year each on consumer goods and services – the highest average of all the Arab nations, according to a new report. Bankers said the figure was a result of the country's high per capita income, rapid economic growth, liberalism and socio-economic stability. The UAE has also emerged as the second largest investor in the Arab world after Kingdom of Saudi Arabia, providing more than 12 per cent of total investment.

In 2006 the UAE's private consumption – covering spending by individuals and families on goods and services – totalled US$84 billion. The figure works out as US$19,761 per individual for a population of 4.25 million, according to the 2007 economic report issued this week by the Abu Dhabi-based Arab Monetary Fund.
The level is far higher than spending in all other Arab countries. The total for second-placed Qatar was around US$10.07bn, or an average of US$12,500 per person. "There are several factors that have made the UAE the top spender in the Arab world,” said an Abu Dhabi-based banker. "They include its high per capita income, liberal system, steady growth in the economy, and financial, economic and social stability. Another factor that has to be taken into account is high inflation.”
Kuwait ranked third, with its private consumption totalling US$27.8bn or an individual average of nearly US$9,266. Bahrain emerged as the fourth largest spender despite its relatively low oil wealth, with private consumption standing at US$5.6bn or average of US$7,587 per person. Oman and Lebanon were ahead of Saudi Arabia – even though the Kingdom controls nearly a quarter of the world's oil and has the fourth largest gas reserves.
Despite Saudi Arabia's high total consumption of nearly US$88.8bn, which surpassed that of the UAE, average individual spending stood at around US$3,764 for a population of nearly 23.6m, almost six times that of the UAE. The report showed Mauritania, one of the poorest Arab nations, had the lowest individual spending, standing at just US$362. Djibouti also had a low average of around US$795, while the report gives no figures for Somalia and the Palestinians.
In investment, where the UAE ranked second, the total figure including both private and public capital was around US$34.7bn. This amounted to approximately 12.7 per cent of the total Arab investment of nearly US$267bn in 2006. Saudi Arabia was the largest investor, with around US$62.4bn. But in terms of investment-to-GDP ratio the UAE was the Arab world's number one. The report gives no figures for 2007 but the UAE is expected to have maintained its position given the surge in the economy and income levels. Other key investors include Egypt with US$20bn, Morocco with US$19.8bn, Kuwait with US$19.1bn, and Qatar with nearly 18.7bn. - Emirates Business 247

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UAE market for IT outsourcing projected to reach $170.5m by 2010

The market for outsourced IT services in the UAE is projected to reach $170.5m in 2010 from the $81.27m recorded in 2006, according to the latest IDC reports.

According to IDC reports, the UAE's IT market began experiencing unprecedented growth in 2005 and this led to the IT services market accounting for a total value of $413.73m.

The study revealed that the continued economic prosperity in the country and a number of IT and general development initiatives by the UAE Government has increased the need for IT services.

Outsourcing accounted for 15.3% of the total IT services market in 2005 and by the year 2010, the market is expected to comprise 22.4% of the local IT market's earnings.

Pointing out the factors that have led to a surge in outsourcing in the UAE, Tapas Roy, Chief Operating Officer, Raqmiyat said : ''The drivers of outsourcing make business sense in the UAE as they have done elsewhere in the world. Businesses in the UAE will increasingly outsource to remain competitive.

''Again, the traditional triggers of increasing costs, flexibility in the management of resources, user satisfaction and reduction in cycle times have contributed to this trend, he added.

Added to these, he went on, are factors such as leveraging the provider's extensive investments in technology, methodologies and people, and reducing the burden of managing IT resources while retaining control of strategic decision making. (WAM)

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ME toy market reaches Dh5b

The Middle East spends an annual average of Dh1,200 worth of toys and video games per child, bringing to Dh5.5 billion the toy market in the region, wherein Dubai alone imported Dh518 million worth of toys, baby products and education supplies in 2006.

"During the past decade Dubai expanded its trading activity well beyond its traditional base in Bahrain, Oman, Kuwait, Saudi Arabia, Qatar and Iran," said Monica Schulz Blank, show manager at Epoc Messe Frankfurt GmbH, stressing that Dubai has served as a distribution hub for the neighbouring markets.

Epoc Messe, organiser of The Middle East Toy Fair, to be held at the Dubai International Convention and Exhibition Centre on March 31 to April 2, yesterday said in a statement that the regional toy market here is double that in Europe and second only to North America. "Dubai's role as a trading hub combined with the double digit growth rate of the toy industry pegged at 11.8 per cent per annum augurs well for the toy fair," Epoc Messe said. Source

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DSF to start registration process for retail outlets

The Dubai Shopping Festival (DSF) organising office will start registering retail outlets that wish to participate in the upcoming DSF 2008.

The initiative is aimed at enhancing shopping opportunities for DSF visitors and creating a competitive retail atmosphere during the month-long sales and tourism event between January 24 and February 24.
Registration will open on December 24 and continue until January 31, the DSF Office said on Saturday.

To simplify procedures for participants, registration and other formalities can be completed at the DSF registration desk located on the ground floor of Dubai's Department of Economic Development.
Registrations will be accepted from 4 to 8pm Sunday to Thursday and from 10am to 2pm on Saturdays.

This year, retailers can participate in three categories - DSF Sales, DSF Discounts and DSF Offers, besides the DSF Raffles segment that is open to outlets owned by a DSF key or support sponsor.

To participate in DSF Sales, retailers must submit a letter of undertaking declaring that all merchandise in the store will be marked down by at least 25 per cent from prices prevailing before the Shopping Festival.
"A large number of retailers are expected to participate in the coming DSF. Last year, over 3,000 retailers took part in DSF, and this number is set to increase in view of the focus on shopping for DSF 2008," said Suhaila Gobash, DSF sponsorship manager.
Non-participating retail outlets will not get permission from the Department of Economic Development to conduct any promotion or sale. Source

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Gulf Common Market

The 28th Gulf Cooperation Council (GCC) summit concluded here today, launching the much-awaited Gulf Common Market (GCM). The Doha Declaration issued at the end of the summit brought this vision into reality.

The following is the text of the Doha Declaration: Meeting the objectives stated in the basic system of the GCC to strengthen cooperation among member countries to create unity, Responding to aspirations of the GCC nationals in achieving GCC citizenship, including free transport, residency, employment, investment, health and social services, Boosting economies of the GCC countries in the light of international developments, which require stronger ties that could bolster negotiation position and competitive capacity in the world economy, Complementing the steps and efforts of joint economic work, Based on what is stated in the economic agreement on achieving the integration among the GCC countries in all economic fields and setting up of the gulf common market, Executing scheduled programmers endorsed by the supreme council at its 23rd summit in December 2002, on completion of the gulf common market requirements before the end of 2007, The Supreme Council of the GCC announces the launch of the gulf common market, with effect from Jan. 01, 2008.
As per this announcement, the GCC nationals will be treated equally in all the GCC countries in par with the nationals of each GCC country.

They will be allowed to:

• exercise all the economic, investment and service fields.
• exercise professions and handicraft.
• transact shares and set up of firms.
• Work at public and civil sectors.
• enjoy social security and pension
• enjoy free hold of property.
• enjoy capital transfer.
• enjoy preferential taxation deals.
• benefiting from the educational, health and social services.
• have free transport and residency

Issued in Doha city, on Tuesday, Dec. 4th, 2007

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UAE warns forex speculators as summit buildup tests peg

The United Arab Emirates warned markets against betting on a dirham revaluation as investors piled pressure on the region's dollar pegs, expecting Gulf rulers to change currency policy at a summit next week.

The UAE was able to withstand pressure from speculators who drove the dirham to a 17-year high on Friday, a media report quoted Central Bank Governor Sultan bin Nasser Al Suweidi as saying, echoing a warning from Bahrain's central bank.
Suweidi ratcheted up expectations Gulf oil producers would sever links to the tumbling dollar, when he called last month for the region to track a currency basket to check inflation.
The speaker of Bahrain's parliament joined a chorus of calls for currency reform, proposing the government track the dinar against a currency basket as fellow Gulf oil producer Kuwait has been doing since May, Al Ayam newspaper reported.
In remarks carried by a Dubai-based newspaper, Suweidi moved to quell investor expectations that a change was imminent. "Their speculation will not yield the gains they expect," Suweidi said in remarks initially aired on state-owned Dubai TV, according to the newspaper.
Bahrain's central bank threatened to take action against anyone betting on dinar appreciation and accused foreign banks of spreading revaluation rumours, Middle East Economic Digest reported after an interview with Governor Rasheed Al Maraj.
Kuwait's central bank also warned investors against speculating on a revaluation in March. In May it dropped the peg to the dollar saying the U.S. currency's slide was fuelling inflation by making some imports more expensive.
Suweidi said the UAE central bank was not "currently" considering dropping the peg and any decision would be made by the government with other Gulf oil producers preparing for monetary union as early as 2010, the newspaper reported.
Gulf rulers meet in Qatar on Monday and Tuesday. A new certificate of deposits auction allows the central bank to fend off speculators, the newspaper quoted Suweidi as saying.
The central bank, which has no benchmark interest rate, uses the yield on the certificates to guide interbank lending. On Wednesday it stopped selling certificates at fixed rates and started auctioning them, allowing the yield to fall as demand for dirhams grew in anticipation of a revaluation.
The central bank also set its first repurchase rate this week, fixing its rate for lending to banks at 4.75 per cent.
The UAE would track any U.S. Federal Reserve interest rate cuts but may not match them exactly, the newspaper said.
Dollar pegs force central banks to track U.S. monetary policy to avoid currency appreciation at a time when the Fed is cutting rates and Gulf inflation is at its highest this decade.
In his call for reform last month, Suweidi complained Fed rates, which have fallen 75 basis points to 4.5 per cent since Sept 18, did not suit the Gulf. The UAE was under growing social and economic pressure to drop the peg, he said.
Bahrain's speaker kept up the pressure, proposing the government unshackle the dinar from the dollar, Bahrain's Ayam reported on its Web site on yesterday.
"Our purchasing power is declining due to the weakness of the dollar," Khalifa Al Dahrani said in remarks carried by several newspapers.
While the UAE is pushing for a switch to a currency basket, Saudi Arabia has ruled that out. The Saudis could consider revaluing their riyal without dropping the peg, a source familiar with Saudi currency policy told Reuters last month. (Reuters)

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'No price hikes', traders warned

The United Arab Emirates warned suppliers against raising prices of goods and services in an "unjustified" manner to take advantage of a 70% increase in federal government employee wages next year.
The UAE, where inflation hit a 19-year high of 9.3% last year, will raise wages of state civil and military employees by 70% from January 1, the government said last week. President Shaikh Khalifa Bin Zayed Al Nahyan announced yesterday all employees of the UAE armed forces and Abu Dhabi Police would also receive a 70% raise in their basic salaries.
The Ministry of Economy warned suppliers and traders from "exploiting" the higher wage scheme and raising the price of goods and services, in an advertisement in Gulf News yesterday.
"The Ministry of Economy and local departments shall monitor the markets and prices of goods and services and impose maximum penalties on all violators" of a consumer protection law, it said.
The government set up a hotline for consumer complaints about unjustified price rises, it said.
Among Gulf states, the UAE has been hardest hit by the dollar's slide to a record low against the euro, a 26-year trough against the sterling and a two-year low versus the yen this month.
Businesses are complaining about rising costs and migrant construction workers rioted in Dubai this month to demand a pay rise to compensate for savings lost due to the dollar's slide. An online poll by newspaper Khaleej Times revealed yesterday UAE residents think the private sector should hike salaries by at least 30% to keep pace with the increasing cost of living in the country.
UAE Central Bank Governor Sultan Nasser al-Suweidi said this month he was under growing social and economic pressure to drop the dirham's peg to the tumbling US dollar and adopt a basket of currencies.
The economy ministry said in a report last week that exchange-rate reform would be one of the ways of containing inflation driven partly by the dollar's slide making some imports more expensive.
"The UAE government is serious about containing inflation," the ministry said in the report. Source

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Plea to avoid fake products

More than 250 women from the diplomatic corps, business community, charity organisations, educational institutes and media establishments across the UAE took part in a series of seminars recently on the protection of intellectual property rights fighting piracy.

The seminars were organised by Dubai Customs in cooperation with the Islamic Affairs and Charitable Activities Department. Participants were urged to avoid buying and using fake products because of their possibly harmful effects. Source

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Indian exports ban takes toll on Dubai

Fruit and vegetables from south India have disappeared from UAE shelves after producers stopped exports from airports in Kerala.
18 major exporters are boycotting exports to Middle Eastern countries after a debate over price, Emirates Today reported.
Suppliers banned exports on Thursday after facing losses following the appreciation of the Indian rupee against the US dollar, to which the UAE dirham is pegged.
According to Emirates Today the Indian rupee has gained 14% against the dollar, leading to complaints from exporters that products are being sold for too little in the Middle East.
Supply contracts were last negotiated in 2003 when the dollar was equal to Rs44, according to Suresh Mathew from the Agricultural Process Food Exporters Association (Apfea). However today it equals just Rs39.
According to Mathew, the association attempted to renegotiate prices but stopped all exports after importers did not respond.
Traders at Dubai’s Al Aweer market told Emirates Today there was an acute shortage of Indian bananas, curry leaves, mangoes, bitter gourds, beans and cucumbers since the ban. Source

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