Trade surplus to surge to $73b

Driven by higher oil revenues, the UAE's current account balance is projected to grow by a record $24.2 billion or 58 per cent in 2008 to $65.9 billion while the country's balance of trade is poised to surge 60 per cent to $72.5 billion in 2008, the International Monetary Fund (IMF) said.

In 2007, UAE's current account balance —the sum of the balance of trade (exports minus imports of goods and services), net factor incomes (such as interest and dividends) and net transfer payments (such as foreign aid) — rose by 16 per cent to $41.7 billion from $35.9 billion in 2006. The surge in the current account balance is driven by a record jump in exports of goods and services, analysts said.

According to the latest findings by the IMF, in 2008, the UAE's balance of trade will swell by $27.3 billion to $72.5 billion. In 2007, the country recorded a balance of trade of $45.2 billion, and in 2006 it was $38.7 billion. IMF's latest statistics projects UAE's exports of good and services to reach $206.5 billion in 2008 from $165.7 billion in 2007, while imports to grow from $120.5 billion in 2007 to $134 billion in 2008.

With a predicted 58 per cent growth this year, the current account balance will account for 27.5 per cent of the country's GDP in 2008. In 2007, current account balance accounted for 21.6 per cent of the GDP. According to IMF projections,

UAE's nominal GDP is expected to surge 24.5 per cent from $192.6 billion to $239.9 billion in 2008.

The upbeat current account surplus outlook given by the IMF is contrary to the forecast made by Oxford Economics, a world-leader in economic forecasting. According to Oxford Economics, despite the pick-up in UAE's non-oil revenues as the economy continues to diversify, the country's current account surplus is poised to decline to about 7.5 per cent of GDP in 2008 and to 3.5 per cent in 2009.

A country's current account includes, apart from its balance of trade, other transactions such as income from the international investment position as well as international aid. If the current account is in surplus, the country's net international asset position increases correspondingly.

According to the IMF, from 2002, UAE's current account surplus has been on an upswing, reaching $7.6 billion in 2003, $10.3 billion in 2004, and more than doubling in 2005 at $24.3 billion, and reaching $35.9 billion in 2006, and $41.7 billion in 2007.

Over the medium term, it is expected that the current account position will continue to be in surplus, supported by expected strong performance of non-oil exports. This will lead to further accumulation of official foreign assets. During the period 2008-2012, it is expected that the current account surplus to average 18 per cent of GDP.

UAE external debt constitutes mostly foreign liabilities of UAE commercial banks and private institutions. It is estimated that the UAE foreign liabilities have almost tripled over the past two years. For the period 2008-2012, it is expected that UAE's external debt to average 61 per cent of the GDP. Presently, there are no signs of external debt vulnerability associated with such borrowing given that UAE external position is a net creditor (i.e. foreign liabilities are more than offset by UAE foreign assets), but it would need to be monitored.

/KhaleejTimes/

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Dubai auto spare parts trade values AED18.22 billion in 2007

Dubai's automobile spare parts trading sector recorded an impressive growth of 29.64 per cent in 2007 for a value of AED18.22 billion, compared with AED14.05 billion in 2006, according to figures released Sunay by Dubai World's Statistics Department.

The strong growth of the sector has prompted the Statistics Department to take part in the Automechanika Middle East, the region's leading trade fair for the automobile sector, which will be held at Dubai International Convention and Exhibition Centre from June 1-3.

According to the Statistics Department's figures, import of automobile spare parts in 2007 accounted for 60.65 per cent of the total trade, which amounted to AED11.05 billion, while exports made up 2.33 per cent (AED 425 million) and re-exports 37.02 per cent (AED 6.75 billion) Nassim Al Mehairi, Acting Head of Statistics Department, said: "Our participation in the fair comes as a result of the study we conducted on the thriving automobile spare parts sector in Dubai. Through such a platform, we are seeking to strengthen the department's relations and enhance communication with the various economic sectors in the emirate in particular and the UAE in general.

''We also aim to promote the importance of statistics centres in outlining future business trends by relying on scientifically-documented data, which is an indicator of consumer preferences and market performance." "The Statistics Department has adopted a carefully planned mechanism to share its data and analysis on various sectors, through participation in trade fairs and exhibitions, utilization of technological tools like CDs and publication of reports and analyses through media. This information helps determine the primary markets that attract exhibitors," Nassim Al Mehairi added.

The automobile spare parts trade has been recording steady growth in Dubai over the years, the department study revealed. Ms. Al Mehairi noted that Japan remained the leading exporter of spare parts to Dubai. It again topped the list of major exporters in 2007 for a total value of AED 2.7 billion. Germany was second with exports of AED1.75 billion, followed by China with AED1.56 billion.

"As far as export from Dubai over the same period is concerned, Libya was in the lead with AED 31.3 million, followed by the United Kingdom and Yemen with AED30.5 million and AED30.2 million respectively," said Ms. Al Mehairi.

The top three re-export destinations in 2007 were Iran (AED2.13 billion), Iraq (AED633 million) and Russia (AED331.5 million). WAM

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Dubai to rationalise cars-people ratio

Dubai has a ratio of 571 cars to 1,000 people, compared to Singapore’s 111 cars per 1000 people. In Western cities, the ratio of trips made by walking or using public transportation versus using a car is 4:1, while in Dubai it is almost 50:50, demonstrating that people use their cars for almost every trip or outing.

Abdul Majid Al Khaja, CEO of Rail Agency at the Road and Transport Authority (RTA) provided these figures at a presentation on “Mobility Difficulties in Dubai” at the University of Wollongong in Dubai (UOWD) recently.

Al Khaja said this situation was being addressed by the RTA by creating an integrated, intelligent transport system involving rail, roads, marine vessels, buses and taxis, to meet the projected population growth over the next decade.

“A number of measures are under way to improve the situation over the next two years. The measures include increasing the number of public buses from the current 650 to 3,000 and commissioning of two (out of the four) routes of the Dubai Metro by September 2009,” Al Khaja said.

“In addition, marine transportation would be expanded by increasing the number of abras and water taxis.”

Al Khaja pointed out that measures like paid parking and the Salik road toll system were aimed at discouraging the use of cars. Source

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Dubai-China trade rises by 47 in 2007

Trade between Dubai and China, which has been increasing steadily over the past five years, soared to a 47% high in 2007 (a value of AED 22.7 billion - about $6.18 billion). Dubai World's Statistics Department figures showed that there has been an increase in non-oil trade between the two countries from AED 48.4 billion (around $13.18 billion) in 2006 to AED 71.2 billion (around $19.4 billion) in 2007. This reflects a very positive trend in the economic relations between Dubai and China over a growing area investment in different sectors.

Sultan Ahmed bin Sulayem, Chairman, Dubai World, said: 'China and Dubai have excellent bilateral relations. China is a major trading partner for Dubai and we give high importance to further strengthening the relationship between the two countries. China has succeeded in building a very impressive economic base." Dubai World,said Bin Sulayem , is a major investor in China through its projects in Qingdao and Shanghai ports, and is looking to expand into other areas.The proposed visit to China by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, comes within the scope of furthering cooperation and economic ties between the two countries, bin Sulayem added.

Figures recently released by Dubai World's Statistics Department show that the non-oil trade between Dubai and China maintained a steady upward trend during the past five years. There was an increase of 37.5% growth in 2004. In 2005 it was 30.7%. The rate of growth was 35.2% in 2006 and 47% in 2007.

Nassim Al Mehairi, Acting Head of Statistics Department, said that China came second in the list of Dubai's top trading partners in 2007 for the third consecutive year. It topped of the list for imports, which touched a total value of around AED 69.9 billion. China is twelfth as Dubai's export destination, for a value of around AED 661.2 million. It is also a major re-export market for Dubai, the value reaching around AED 622.3 million. WAM

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Dubai's cement imports surged 73.6% in 2007

Dubai's cement imports surged 73.6% (1.256 million tonnes) in 2007 compared to previous year. The rise is from 1.704 million tonnes in 2006 to 2.960 million tonnes in 2007, according to figures released by Dubai World's Statistics Department.

Last year's import performance came after the soaring increase of 184% (1.104 million tonnes) in 2006 compared to 2005 - from 600,000 tonnes to 1.704 million tonnes.

Nassim Al Mehairi, acting head of Dubai World's Statistics Department, said that the total value of Dubai's cement imports during 2007 was around AED 672 million against AED 374 million in 2006.

"Cement imports have soared during the past three years as a result of the unprecedented construction activities here that accompanied the overall economic boom in the UAE and the region. The sharp increase in oil prices is a major reason for this boom. This has led to more spending on infrastructure, especially on roads, bridges and other related projects. The positive economic atmosphere has also led to the creation of several new commercial and residential complexes and urban communities," she said.

Al Mehairi added that major projects such as the Dubai Metro, new airports, marine terminals and urban development show that Dubai's cement imports will continue growing at even higher rates in the coming years.

The Statistics Department figures show that China tops the list of countries from which Dubai imported cement in 2007, with 1.9 million tonnes amounting to AED 399 million. India follows, with 553,000 tonnes for the value of AED 134 million. The other top cement trading partners are Pakistan (255,000 tonnes for AED 71 million), Thailand (148,000 tonnes for AED 33 million) and Indonesia (71,000 tonnes for AED 20.7 million.) WAM

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The Brand " Dubai "

In February Dubai Chronicle conducted a survey between 50 000 of it's readers from different countries around the world.
The question, common for the large population of over 80% Expatriates in Dubai, was “Would you live in Dubai for long?”

Despite the rising inflation, the increased fines for traffic violations and the new water and electricity tariffs Dubai proved to be a very attractive place to set up a home, raise children, build a carrier and in general envision the future for good 41% who have expressed strong confidence in the city's prospective.

24% from the survey participants were more considerate and would prefer take their freedom and make up their minds according the circumstances. Their answer was “It depends” - no gamble with the future!

But the ever lasting “rat race”, part of Dubai’s cosmopolitan character, apparently did not appeal to 30% of the readers who have chosen the firm “No”.

However, no matter of their long or short lasting intentions, total 97% readers expressed position, which indicates that people around the world are well aware of Dubai, the life style and the opportunities it offers. Only 3% remain in the area of “I don’t know”.

Dubai is famous and well recognised all over the world. Not necessary every one likes it, but almost every one knows about it.

There must be something more into it than good marketing strategies or smart public relations management….
(By Gergana Mineva, Editor)

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Dubai has been ranked 40th of the world’s most expensive cities

Dubai has been ranked 40th in a list of the world’s most expensive cities, sitting just ahead of Hong Kong in a table led by Oslo, Copenhagen and London.

Swiss banking firm UBS carried out prices and earnings surveys in 71 cities to compile a comparison of purchasing power around the globe.

The top three were closely followed by Dublin, which jumped up the table from 13th place in 2005, Zurich and Stockholm, with Helsinki, Geneva, Paris and Vienna completing the top ten.
New York was listed 18th, with London in 26th position. Manama in Bahrain, the only other Gulf state listed, ranked 55th.

The list was based on the cost of a weighted shopping basket “geared to Western European consumer habits” containing 122 goods and services.

Dubai, however, ranked 34th when rents were taken into consideration, with London top of the table.

Dubai was also listed 34th for wage levels, based on wage figures, social security contributions and working hours across 14 ‘widespread’ professions.

The city, “recreating itself as a new financial centre, and with the large United Arab Emirates oil reserves, offers one of the lowest tax and social contribution rates in our rankings,” the report said. Manama was ranked 44th.

Residents in Copenhagen, Oslo and Zurich take home the most cash, with workers in Zurich, Geneva, Dublin and Luxembourg having the most to spend for the hours they work. An hour’s labour in Dublin delivers almost 28% more purchasing power than one in Amsterdam, the report found.

Dubai was marked 26th for purchasing power, listed above Seoul and Prague and below Taipei. Manama came in at 42nd, slightly below Singapore and above Buenos Aires. Source

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UAE economy up by 7.4 per cent in 2007

UAE Economy Minister HE Sultan bin Saeed Al Mansouri underlined that the UAE economy grew by 7. 4 per cent last year compared to 2006, citing the economic diversification policies adopted by the UAE leadership as a major factor for the growth.

Speaking on the release of economic performance report by the ministry, he added that the economy also continues growth due to the soaring oil prices, contruction boom and inflow of foreign capitals, indicating that "the oil prices grew by 13.1 per cent in 2007 as average price of barrel soared to US$69.1, while non oil sector grew remarkably, leading to the hike of Gross Domestic Product (GDP) by 16.5 per cent to AED698 billion".

He referred to significant contribution of non oil sector to the UAE economy growth and the GDP, indicating that "the non oil sectors contributed 65 per cent, AED455 billion to the GDP in 2007- thanks to the diversified economy".

According to the report prepared by Osama Amir, senior economic researcher at the ministry, the UAE's economy is continuing its strong growth due to many factors, such as the rise in international oil prices, the robust construction sector, and the increasing flow of foreign capital seeking secure and feasible investment opportunities within the country.

"The UAE Government is keen to apply stable legislations and policies that encourage investment and create a conducive development environment", it added.

The report noted that the government has established its economic strategy based on open policies and liberalising its trade to enter into international markets. This strategy supports the UAE Government's objectives of promoting the economy and ensuring long-term sustainable development and progress.

The indexes prepared by the UAE Ministry of Economy reveal that the country's economy has achieved success and is aligned with international economic conditions; resulting in a high growth rate that is attributed to development of socioeconomic sectors in line with the government?s economic diversification agenda.

The UAE economy achieved real growth of 7.4% in 2007 over 2006, attributed to a number of factors including: a rise in oil prices by 13.1%, as barrel average price reached USD 69.1 in 2007, which led to a rise in (GDP) by about AED 698 billion.

Contributions by other non-oil sectors also increased the value of the country's GDP, whose value reached AED 455 billion or 65% of the total GDP achieved in 2007; reflecting the success achieved in the country's economic diversification plan.

Upon review of the country's gross domestic formation in current prices for 2007, It was found that the productive sectors (commodities) have achieved a product of AED 419 billion, or 60% of the gross domestic product; productive service sectors have achieved AED 216 billion, or 31%; while service sectors have achieved AED 63 billion, or 9% of the GDP in 2007.

Crude oil is a leading industry sector which has contributed 35 % of the GDP in 2007, followed by the manufacturing sector, whose diversified activities - whether in oil, liquefied gas, or factories in free zones - contributed 13% to the GDP achieved in 2007.

Development in the food, medicine and building material industries can be noted, as well as concern given to the industrial sector represented in the Emirates Industrial Development Agency, for protection of national industry and contribution to developing the country's resources through industrial investment. These are also recognised for opening new markets for industrial exports, creating a suitable investment climate in the field of manufacturing industries, establishing more industrial areas and cities, and providing incentives for the private sector to enter into industrial fields.

The trade and repair services sector is the third highest contributor to the country's GDP, at 11%. It is an important and organized sector with a long history, in which the private sector plays an important role in providing different goods in the country and managing the development of re-exportation activity. However, retail trade activities need regulatory procedures and measures with regard to giving a bigger role to the specifications and standardization bodies in the country to preserve the type of goods sold and control their prices to maintain consumer rights.

Activity in the real estate sector is considered as one of the prominent trends contributing to the country's economic development, as efforts exerted in this sector are not only limited to constructing residential units, but tremendous efforts have also been exerted in improving the quality of residences by adhering to world-class standards.

Another positive aspect is the prevalence of giant national-owned companies that contribute to real estate developments in all emirates throughout the UAE. Real Estate contributed 8% to the country's GDP, buoyed by the demand in the real estate rental market. This has resulted in a sharp increase in annual rental values for residential units, although increment rates have differed between emirates. The matter requires an in-depth study of the residential market all over the emirates, whether in terms of income levels or the required residence levels.

The report revealed that the size of fixed investments in 2007 increased to AED 144.5 billion compared to AED 121 billion in 2006, and the investment percentage to domestic product reached 20.7% in 2007, which is a high percentage that expresses the country's desire to leverage investment in order to preserve the driving force for the developmental process.

It added that the productive sectors (agriculture, oil, industry, water and electricity, building and construction) accounted for 45.2% of the total investments; whereas productive service sectors (trade, transport and communications, hotels, financial institutions and real estates) accounted for 46.2%; and service sectors (governmental and personal services) accounted for 8.6% of the total investments.

Data relating to sector investments reveal that there are four sectors that account for 63% of the total investment in 2007. The manufacturing industries and real estate sectors come first, whose investment volume - at 35% of the total investments- exceed other sectors (accounting for 17.8% each), whereas most industry investments (amounting to AED 25.8 billion) concentrate on petrochemical, building material, medicine and food industries.

The government encourages the private sector through supporting medium and small projects such as HH Sheikh Khalifa's Fund Foundation for supporting and developing medium and small size projects, and HH Sheikh Mohammed Bin Rashid's Youth Foundation.

The real estate sector, both the public and private sectors, also invested AED 25.8 billion in 2007. The government is keen to help UAE nationals to possess free residential units through residential plans, which provide good living standards and social stability. Federal and local efforts have been exerted to build thousands of residences and villas, and establish modern cities supported by integrated networks of services and facilities.

The transportation sector is another sector that enjoys large scale investments. More than AED 23.1 billion, or 16% of total investments, has been invested to establish developed infrastructure, including a wide range of internal and external road networks, airport expansions, bridge and tunnel construction, and communications.

The government is keen to sustain the success of ICT projects as effective contributors to preserving economic growth rates. This outlook has resulted in providing advanced and high quality IT and online services to people throughout the UAE, with the country ranking first in e-government at the Arab World level.

The crude oil sector comes fourth with AED 15.8 billion in investments. Around 10.9% of the country's total investments in 2007 were in the form of huge projects to develop productive and explored oil fields to ensure continuous oil and gas production; thereby contributing to the stability of prices at international markets.

Due to the nature of the UAE's current economic situation, the government focused its investments on structural building, services and low-income housing projects; accounting for 11.9% of the country's total investments in 2007.

Comparatively, the public sector outlaid 29.8% of total investments in terms of oil and gas extraction projects, and projects in the petro-chemical, and water and electricity industries. The trend of giving a larger role to the private sector has resulted in around 58.3% of residential, medium and small size, hotels, restaurants and trade projects being executed.

Public and private (household) final consumption expenditure is considered a major index to measure standards of living. As data indicates that final consumption is increasing due to improvement in living standards, increasing from AED 330 billion in 2006 to AED 400 billion in 2007; an annual increase of 21.2%. Upon analysis of the total final consumption expenditure, it is noticed that government expenditure has reached 18.5% whereas private (household) expenditure represents 81.5 %.

This continuous rise in private expenditure is due to the annual population increase, the rise in standards of living, rising consumption, as well as the increase in prices for all goods and services.

Foreign trade is considered an influential factor in the country's economy, and represents a high percentage of the GDP, accounting for 161% in 2007. This explains the extent to which the country's economy is linked to the external world in terms of exports and imports, as data reveals the surplus volume in the trade balance increased from AED 141 billion in 2006 to AED 146 billion in 2007.

In response to the fast and consecutive movement of the international economy, the UAE Government is keen to develop its economic legislations and laws. The Ministry of Economy is also keen, as per its objectives, to perform its role in preserving economic stability among unstable economies, providing an appropriate business environment, activating cooperation with international organisations and leveraging economic agreements; basing its future initiatives and vision within these fields.

The ministry has also identified its vision as per government relations with the private sector, which is a balanced affiliation in order to lead the economic development process, as well as achieve sustained economic investment and growth in future.

The role of the government is centered on establishing a framework for economic performance, outlining its control and providing an appropriate environment for the private sector to become more capable and competent within the scope of free competition.

The report stated that the government must also ensure that provision of goods and services does not represent a governmental role; as the government bears the responsibility of establishing economic procedures and reforms that push economic and development processes to realise more growth and progress.

The ministry culminated its efforts in 2007 with the establishment of an Economic Development Strategy, which incorporates a number of platforms to achieve an international competitive economic status for UAE. The Strategy also aims to achieve balanced and stable growth through economic diversity at the national level; to guarantee active participation of UAE nationals in economic activities in both the public and private sectors; and to develop legislation to realise the UAE's benefits. (WAM)

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DM releases vehicle pollution survey results

Study conducted under the project called On-road Vehicle Emission Measurement Using Remote Sensing Device (RSD) on Dubai roads has revealed that the vehicle pollution in Dubai compared to American standards is around 13% (for vehicles using petrol) whereas the pollution rate is 2.5% in Virginia US, 2%in Michigan and 4.7% in Canada.

According to the study the pollution rate of vehicles using diesel in Dubai is at around 19%.

Releasing the results of the study at a seminar in Dubai Municipality on Wednesday, Eng. Redha Hassan Salman, Head of Environmental Protection and Safety Section in the Environment Department of Dubai Municipality, said that the higher emission of pollutants in Dubai is attributed to the high temperature, which goes up to 47.5 degree Celsius.

Eng. Abdullah Raffia, Assistant Director General for Environment and Public Health Affairs, officials from different government authorities in the UAE and representatives of the private sector were present in the seminar.

Dubai Municipality conducted the survey at some 43 locations across the city in cooperation with RTA and Dubai Police during May 2007 to February 2008 with the aim of formulating effective strategies and policies to control vehicle emissions which account for over 75 per cent of the city's air pollutants.

"The idea was to measure pollutant levels in a vehicle's tailpipe while the vehicle is plying on the road. Five major air pollutants i.e. hydrocarbon (HC), carbon monoxide (CO), nitrogen oxides (NOx), carbon dioxide (CO2), and smoke emissions were detected. The remote sensing technology helped avoid connecting the testing device physically to a vehicle," said Salman.

"This concept is an efficient tool to monitor large vehicle fleet and identify excessive polluters of great appeal. The systems operate by continuously projecting a beam of IR/UV light across a roadway and adopt IR/UV light absorption principle to measure the pollutants. Using this technology we could measure multiple pollutants in single pass," he added.

He noted that emission measurement was evaluated for both public and private sectors for Dubai and non-Dubai licensed vehicles covering taxis, buses (public transport, schools, and labourers), heavy vehicles such as trucks, trailers and private and public cars, in addition to age of motor vehicles and fuel fleet usage.

"Two factors point to a worsening air pollution situation in Dubai - the rapid pace of urbanization and motorization. Dubai's statistical data showed that motor vehicles increased by an annual average of about 12%. Dubai has about 541 vehicles per thousand population, which is higher than New York (444), London (345) and Singapore (111)," he explained.

He said there has been an increase of 30% in the number of vehicles in Dubai from that of the 2005 figures (465,000 vehicles including 5,000 taxis). "Vehicles in Dubai take 3.1 million trips a day, which is expected to increase to 13.1 million trips a day by the year 2020. This is precisely the reason behind embarking on such a project to know the percentage of vehicles exceeding the emission limit compared to other countries of the world," he added.

He said Environmental Protection and Safety Section had a vital role in reducing the vehicular pollution in the city. "We conducted a seminar in 1999 and started reporting smoky vehicles to the traffic police. We were the major force behind the UAE strategy for reduction of sulfur content in diesel," he added.

A detailed technical presentation on the On-road Vehicle Emission Measurement Using Remote Sensing Device project was delivered by Niranjan Vescio, General Manager, Remote Sensing Division in the Environmental System Products, Tuscon, Arizona, US, which was the company that supplied the equipment for the project.

Among the surveyed vehicles 87% (96,361) were Dubai registered and the rest of the 13% (13,808) were registered in the other emirates. The survey covered 1,085 heavy buses and 8,895 light vehicles. It found that 83% of the vehicles using petrol plying on Dubai roads were newer than 2001 whereas the vehicles using diesel were 76%.

When compared to Los Angeles the study said that both Dubai and Los Angeles are 'car cultures' with tremendous mobile source emission projected. Regarding mobile source air pollution reduction strategy, Vescio said that better fuel, technology, inspection/maintenance and enhanced RSD screening to compliment Dubai's intelligent transport system were the suggested options. He also suggested 10-year retirement for vehicles on Dubai roads as a feasible step to reduce pollution. (WAM)

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Dubai's diamond trade reached US$11.23 billion in 2007

Dubai's total diamond trade increased by 53 per cent in 2007 to reach US$11.23 billion, as demonstrated by statistics released today by the Dubai Diamond Exchange (DDE), a subsidiary of the Dubai Multi Commodities Centre (DMCC).

The Emirate's rough diamond trade recorded a 29 per cent increase from 2006 to reach US$4.82 billion, while trade in polished diamonds increased by a massive 88 percent to reach US$6.41billion. In 2006, Dubai's total rough trade amounted to US$3.93 billion while total polished trade was US$ 3.39 billion.

"2007 has been a year of record growth for the UAE diamond trade which has crossed the psychological mark of USD 10 billion. Dubai has become now a mature diamond centre, combining its role as an international hub, a regional distribution centre and a local consumer market," Ahmed Bin Sulayem, Executive Chairman, DMCC, said.

In 2007, polished diamond imports to the emirate increased by 73 per cent to US$ 3.68 billion, up from US$2.12 billion in 2006, confirming Dubai's role as a gateway to the rapidly growing markets of the Middle East. This was mainly due to sharp increased imports from Belgium and India, currently the largest trading and diamond manufacturing centres in the world.

Polished diamond imports from India reached 2.33 billion in 2007, an increase of 88 per cent from 1.24 billion in 2006, while imports from Belgium rose by 50 per cent to US$ 630 million, up from US$ 420 million the previous year. In the same period, exports of polished diamonds rose by 115 per cent to US$ $2.73 billion.

Rough diamond imports to Dubai reached US$2 billion in 2007, an increase of 28 per cent, while exports stood at US$2.82 billion for the same period, up 19 per cent. The sharpest increase in rough import came from Russia (89 per cent), South Africa (133 per cent) and Angola (78 per cent), three leading diamond producing countries.

Youri Steverlynck, Chief Executive Officer, Dubai Diamond Exchange said "It is encouraging to see more rough diamonds coming directly from producing countries and more polished diamonds coming from established diamond centres like Antwerp and Mumbai being marketed in Dubai." He said the trend underlines the Middle East's growing significance as a flourishing diamond consumer market and more importantly, Dubai's emerging role as the trade hub through which this potential market can be accessed. "We anticipate this trend to further increase once the new infrastructure of Almas tower becomes fully operational within a few months," he added.

Dubai has witnessed healthy growth in bilateral diamond trade with various countries, reflecting the growing confidence in the Dubai market and its infrastructure provided by the Dubai Government through the DDE. DMCC's Master Plan for the diamond sector, which was launched last year, has also contributed to enhancing the emirate's status among members of the trade. (WAM)

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UAE per capita waste output double of UK

The UAE produces double the waste per capita of the United Kingdom and demand for solutions is escalating rapidly.

An international advisory and design consultancy, Hyder Consulting Middle East Limited, has quadrupled the size of its environmental group of consultants over the past few months, according to a press release.

Angela Mulgrew, Regional Environment Manager of Hyder Consulting, said the new team is necessary to meet the growing environmental awareness of business and governments in the UAE.

“We believe environmental sustainability will increasingly move to the forefront as the Middle East grows. Hyder Consulting is committed to helping the UAE and the wider region meet the significant challenges facing it.”

Mulgrew said UAE authorities had responded to some of these challenges, but sustainable communities ought to tackle environmental issues from all fronts.

One of the byproducts of the UAE’s rapid growth has been waste output, a new focus for the team.

An additional environmental issue resulting from UAE’s rapid growth has been waste output.

The most recent industry research from 2006 shows that per capita waste generation is 730kg in Abu Dhabi and 725kg [HCL2] in Dubai, compared to 300kg per year in the UK, according to Hyder Consulting. Part of Hyder Consulting’s mandate is to reduce these figures to acceptable levels.

“There is a growing awareness of waste issues throughout the UAE, but more emphasis needs to be put on motivating individuals and businesses to appreciate the environmental and economic benefits of waste reduction,” said Deirdre Dudley-Owen, Hyder Consulting’s Senior Waste Consultant.

“We believe that the public and private sectors can play a key role in this aim through the development of waste reduction and recycling strategies, through introducing accessible and conveniently located recycling facilities in public places, making citizens aware of their environmental responsibilities and through communicating the small steps individuals can take to keep the UAE clean and green.” Source

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Foodstuff trade of Dubai reaches Dh29.2b in 2007

Dubai's foodstuff trade has increased by 23.18 per cent in 2007 to reach Dh29.243 billion ($7.96 billion) compared to 2006.
The figures released by the Statistics Department of Dubai World show that foodstuff imports are still forming the larger part of this trade (69.55 per cent of the total trade volume) while exports were at 15.80 per cent and re-exports at 14.64 per cent.

Naseem Al Muhairi, Acting Manager of the Statistics Department-Dubai World, said: "The trade of foodstuff and consumer items in Dubai has grown steadily over the past five years. We have noticed through our periodical statistical monitoring of the trade movement that demand has increased as a natural result of population growth coupled with the economic boom and the development in construction and tourism activities, as well as the increase in investments in tourism sector."

The volume of foodstuff trade has increased by Dh5.5 billion to reach Dh29.243 billion in 2007 compared to 23.740 in 2006. Imports had the biggest share (Dh20.339 billion at 69.5 per cent) of the total trade volume, while exports were around Dh4.621 billion (Dh4. 2 billion in 2006) and re-exports Dh4.282 billion (Dh3.661 billion in 2006).

India remained Dubai's top foodstuff trading partner with a total trade of Dh3.734 billion in 2007 (Dh2.203 billion in 2006). Iran was in the second place with 2.157 billion in 2007 (Dh2.039 billion in 2006). Brazil, USA, Pakistan, UK, Iraq, the Netherlands and Australia were the other major trading partners.

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DHA introduces a system to report on new born babies

The Dubai Health Authority (DHA) has commenced implementation of an electronic system to report on new born babies, deaths and still born babies in the emirate of Dubai to set up database and unify reporting and registration mechanisms.

Muna Buhanad, head of the statistical analysis section at the DHA said "this step is in line with efforts of DHA towards adopting the electronic shift", indicating that the system targets over 2, 600 public and private medical institutions in the emirate of Dubai.

She added that the electronic database would enable the DHA get quick and accurate data to help it in planning and management of the healthcare. (WAM)

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MoE registers 18 private stock companies, 296 foreign corporations in 2007

The UAE Ministry of Economy (MoE) has reported that 18 private stock companies established in 2007 with a combined capital value of Dhs6.4bn have registered with the Ministry, bringing the total number of MoE-registered stock companies to 99, with a combined capital of Dhs27.2bn.

The MoE also confirmed that 296 foreign corporations were licensed to operate in the UAE in 2007, up from 254 in 2006, raising the total number of MoE-registered foreign companies to 2,515.

The figures reflect Ministry-led efforts to enhance the UAE's economic performance through the modernization of laws and regulations governing the national business sector. Such initiatives are aimed at complementing the country's rapid economic growth and its highly competitive status in the regional and global levels, particularly through the encouragement of foreign investments.

Hamid bin Butti Al Mahiri, MoE Assistant Undersecretary for Corporate and Supervision Affairs, said that the Ministry has recently made important decisions related to stock companies which are helping promote the role of the private sector in the national economy and strengthening the country's financial markets. The UAE has attracted phenomenal foreign investment and continues to gain momentum from the increased confidence of local and foreign investors in its economy.

Al Mahiri also highlighted the aggressive efforts being made by the Ministry to maintain the flow of economic activities to keep pace with rapid development, such as the drafting of the new Competition Law and the introduction of the Foreign Investment Law. The Ministry is also closely coordinating with the public and private sectors on the final stages of the drafting of the Companies Law. The proposed law is expected to maintain a favorable investment environment and enhance foreign investment inflow.

Al Mahiri mentioned that the Ministry is poised to issue an arbitration law for private companies to strengthen administrative rules. The new rules would improve corporate management while ensuring transparency in transactions, which is essential given the critical role of the business community in national growth, especially in terms of the size, large capital, and extensive scope of companies.

Ahmed Al Hosani, Director of Companies Department, MOE, stated that the data on private and foreign companies registered at the Ministry is a concrete reflection of strong national economic development across all financial, trade, and investment sectors. Al Hosani added that the stable economy and favorable investment environment of the UAE and a reliable and constantly updated legislative framework have spurred the establishment of these companies in the country.

All these positive indicators complement continuous government efforts to strengthen the role of the private sector and public and private stock companies in particular. The country welcomed 39 new joint-stock companies with a combined capital value of around AED 24 million and witnessed a total capital increase of approximately Dhs17bn in 2006. The total number of private stock companies established in 2006 that registered with the MoE was tallied at 29, with a total value of Dhs10bn. (WAM)

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Dubai Cargo Village maintains robust growth in 2007

Dubai Cargo Village handled a total of 1.66 million tonnes of freight in 2007 as compared to just over 1.5 million tonnes in 2006, an increase of 10.96 per cent.
DCV has been consistently achieving year on year double digit growth since it was established in 1991.

The months of November and December were the busiest months in 2007 in terms of tonnage with 149,527 and 147,754 tonnes of freight respectively, while February recorded the highest growth over the corresponding period in 2006, at 17.31 per cent, the DCV said in a press release issued on Thursday.

Import, export and transhipment constituted 1.59 million tonnes of the total figure in 2007 while mail and courier rose by 53 per cent over 2006 contributing 77,765 tonnes.

Commenting on Dubai Cargo Village's continuing growth, Ali Al Jallaf, vice president, cargo - Dubai Airports, said the facility is intrinsically connected to Dubai's economy, and reflects the rise of Dubai as the regions business hub.

"Cargo has enjoyed exceptional growth right from the first year the facility was established over a decade and half ago, and has been limited, to certain extent, by available capacity. Soon with the completion of the expansion works in the form Cargo Mega Terminal, I am certain there will be a further spurt in growth of cargo in Dubai." Al Jallaf said that considering the current growth rate, cargo throughput at Dubai Cargo Village is expected to cross 1.8 million tonnes in 2008.

Abdullah Bin Khediya, senior general manager of Dubai Cargo Village, expressed satisfaction with the double-digit growth. "Dubai Cargo Village was ranked 11th on Airport Council International's list of the world's cargo centres last year, up from the rank 61 we occupied on that very list a decade and a half ago. We expect cargo tonnage at DCV to continue growing at the current rate, transforming Dubai from a regional centre to a global hub for cargo and logistics." Bin Khediya said the marketing campaign launched by the management plays an important role in the growth of DCV by highlighting to the international freight industry its facilities and strengths.

He added that the success of the campaign is evident in the increase in the number of cargo agencies and airlines operating at DCV. (WAM)

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MoE registered 233 new trade agencies in 2007

Some 223 agencies had been entered into Ministry of Economy's commercial agency registry during 2007, bringing the total number of agencies registered with the Ministry to 4,465.

According to a statistical report released today by the Ministry, there are 1,451 registered agencies for engineering, electrical and mechanical equipment, as well as desalination and sanitary, followed by drugs, medicines and medical equipment (529), fire-fighting and safety equipment (397), vehicles, heavy equipment and maintenance tools (364).

Agencies dealing in British good topped the list with 824 agencies, while agencies for U.S. goods accounted for 628, followed by German goods (427), Italian (403), French (257), Japanese (193), Swiss (193), Dutch (144), Indian (119), Korean (94), Canadian (78), Chinese (77) and UAE (76).

The Ministry deleted 347 agencies during 2007 and renewed registration for 2893 agencies.(WAM)

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Dubai records increase in Notary Public transactions

The total number of documents attested by the Notary Public offices in Dubai stood at 132,145 during 2007, according to figures released by the Dubai Courts Department.

Director of the Notary Public department in Dubai Abdul Razaq Al Qassim said that the transactions authenticated in the emirate varied from contracts to affidavits and declarations.

He added that the notary public department has embarked upon an intensive programme to upgrade its various functions using modern technology, and this will ease up the procedures. (WAM)

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Traffic accidents claim 829 lives in 2007 : Statistics

Fatalities caused by road accidents in the UAE dropped to 829 in 2007 from 878 in 2006, a senior interior ministry official has disclosed.
''Last year saw 6,813 accidents killing 829 persons and injuring 10,526 compared to 8443 accidents claiming the lives of 878 and injuring 10,674 in 2006, said Colonel Ghaith Al Za'abi, director traffic department, Ministry of Interior.

''Despite the decline in road accidents and fatalities in 2007 but we have observed a marked increase in run-over accidents which registered about 1,802 accounting for 26 per cent of total mishaps against 57 per cent for accidents which involved collision and knock-down, standing at 3,884,'' Al Za'abi noted. The figures covered the period from January 1 up to the third week of December 2007.

Nationality wise, he indicated that 25 per cent of fatalities and injuries were UAE nationals in 2007. Some 186 nationals were killed in traffic accidents last year while 225, 632 and 1499 sustained serious, moderate and minor injuries respectively.

''This percentage is high and has dangerous implications on the local community,''he cautioned. Second in line were Asians representing 49 per cent (462) and Arabs who formed 19 per cent (118), he told Arabic daily Al Bayan.

Emirate-wise, he explained that accidents reported in Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Qaiwain, Ras Al Khaimah and Fujairah stood at 2,223, 1,779, 804, 264, 166, 1,023, 554 respectively killing 289, 282, 103, 23, 15, 60 and 57 respectively.

In these accidents 3,537, 2,851, 1,146, 425, 227, 1,499 and 841 were reported to have suffered various injuries respectively.

On causes of traffic accidents, Al Za'abi said poor and improper assessment of road users was the major factor of accidents in 2007 causing 26 per cent of accidents, followed by dangerous entry into the road before making sure it is free and safe (11 per cent).

Non-compliance with traffic lane, excessive speeding, failure to leave enough space between vehicles and running red signal were also blamed for causing road accidents.

The director of traffic announced plans to reduce traffic accidents at federal level by 5 per cent in 2008 using the ultra-modern infrastructure in the country, eliminating traffic congestions and launching extensive awareness campaigns on traffic rules and safety.

According to ministry 2007 statistics, there were 1,742,886 vehicles running on UAE streets. There were 2,349,651 holders of driving licenses of whom 160,595 for women.

He also announced that the revised federal traffic law will go into force by next March.

''The refined executive regulations of the traffic law will be ready soon and will be enforced by March,''he said, adding that the competent higher authorities had already given their consent to the draft.

Under the new version, he noted, the black points system, which is now in place in Dubai, will be applied along with severe punishments including jail terms and hefty fines not less that AED 20,000 for serious and gross offences. (WAM)

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UAE IT services market hits half a billion dollar : study

The IT services market in the United Arab Emirates is increasingly embracing the outsourcing model and other value-added services as it matures.
According to a recent study from IDC, IT services spending in UAE will expand by more than 15% year-on-year in 2007, after an almost 23% boost last year to nearly $508m.
While standard installation and support services still make up the largest chunk of the IT services market, the increased adoption of outsourcing and consulting services point to more strategic IT decision-making within the region and are a clear sign of maturation within the IT services sector.
'We're entering a new era and vendors will need to change tactics to take advantage of it,' says Margaret Adam, Senior IT Services Analyst for IDC MEA. 'IT services providers should streamline their operations and focus on strategic alliances, developing a pool of highly skilled individuals who can educate customers to the benefits of technology to their business.' The type of services most in demand was hardware and software support and installation, accounting for a third of total market value, followed by systems integration with 26.1% share, and customization services with 16.3%. The combined outsourcing category comprised 16.0% share of the UAE IT services market last year, having grown an impressive 28.2% year-on-year. IS Consulting also showed significant gains, skyrocketing 88.6% in 2006, albeit from a relatively small base.
The top three players on the UAE IT services market in 2006 were MDS UAE, Emirates Computers, and Injazat, which together garnered less than a quarter of total revenue.
On the demand side, government contracts played a dominant role, responsible for 26.5% of total services spending. Banking followed with 13.1% share, and the telecommunications sector was the third largest with 11.1% of total IT services expenditure in 2006. In the coming years, these three sectors as well as construction, and oil and gas should provide the most opportunities.
'The small and medium-sized enterprise segment offers a significant opportunity for IT services providers,' said Barti Rajan, Research Analyst for IT Services, IDC UAE. 'SMEs are beginning to recognize that purchasing external services is an alternative to trying to find affordable, skilled IT staff.' IDC expects the IT services market in the UAE to increase at an annual average rate of 13.7% over the next five years as the federal and local governments pursue their economic development strategies, key sectors continue to expand rapidly, and demand shifts towards outsourcing business functions, combined with investments in infrastructure like storage, security, and ERP. Source

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UAE GDP to grow 7.7pc per annum

UAE's real Gross Domestic Product growth is forecast to average 7.7 per cent per annum over the next five years, while its budget surplus will stay at an average 6.3 per cent of the GDP.
This upbeat forecast for 2008-12 reflects the buoyant public and private investment expenditure, said a report by Economist Intelligence Unit (EIU).
"While consumer price inflation will fall from its peak 2006 level, primarily because increased housing supply will push down rental costs, the dirham's peg to the dollar will help to contain imported inflation from 2008 as the dollar stabilises," the report said.
Inflation in the UAE, stoked largely by soaring housing costs and a weakening dollar-pegged currency, has been predicted to fall to 8 per cent in 2007 from 9.3 per cent in 2006 by the International Monetary Fund (IMF). HSBC Bank has also predicted that UAE's annual inflation rate would drop to seven per cent in 2007, and further easing to 6.5 per cent in 2008.
The GDP growth forecast by EIU is almost close to the outlook for the GCC given by the IMF. According to its forecast, the GDP of the UAE will grow by 8.2 per cent in 2007 — slower than previous year's 9.7 per cent — to 186.2 billion from $168.5 billion. Qatar will see real growth of 8 per cent to $57.3 billion from 52.7 billion in 2006 while Kuwait’s GDP growth will drop from 5.0 per cent in 2006 to 3.5 per cent and Bahrain’s economy will grow at 6.9 per cent compared to 7.7 per cent. Oman’s GDP will grow at almost the same pace as last year, increasing from 5.9 per cent to 6.0 per cent in 2007.
Abu Dhabi Commercial Bank has said UAE's economy would expand by over eight per cent in 2007. The GCC region would record an average GDP growth of over six per cent in 2007, compared to 7.0 per cent in 2006.
The EIU report said UAE's budget surplus will stay healthy, averaging some 6.3 per cent of GDP on the back of continued high levels of spending in 2008-12 by the government. "Moreover, a large part of the surplus oil revenue from 2004-06 has been placed in overseas funds that can be tapped in times of lower oil-related earnings. Monetary policy will continue to be dictated by the UAE dirham's peg to the US dollar. Furthermore, even if the exchange-rate regime were to be altered, the dirham would be likely to remain closely linked to the dollar."
The report said UAE's current account would continue to record huge surpluses throughout the forecast period. "Although the current account will be supported by rising income credits in the form of returns from the government's massive overseas investment portfolios, as a proportion of GDP the surplus will narrow to an average of 13.4 per cent in 2010-12."
"The government will continue to attempt to attract investment in 2008-12 by offering low tax rates, imposing few trade or exchange controls, providing solid infrastructure and projecting a positive attitude to private-sector investment," the report said. Source

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