World Economic Forum on the Global Agenda meet begins in Dubai

The seventh consecutive World Economic Forum (WEF) meeting concerning Global Agenda is being held in Dubai. Its purpose is to reproduce the triumphant innovations implemented in the United Arab Emirates (UAE) on an international scope.

The WEF praised the prime minister and vice president of the UAE who is also Dubai’s ruler, Sheikh Mohammad bin Rashid Al Maktoum for understanding that the most important factor contributing to transformation is innovation. The WEF explained that innovation today would be achieved by running efficient institutions, implementing important policies, acquiring expert and specialized skills and an effective economy where all parts collaborate to explore new ways to do business. A creative and open economy, which is based on cultural innovation, is the most rapid and prolonged way to enhance the UAE’s competitiveness on an international level.

The three-day meeting was attended by more than one thousand people, which amongst them were country leaders and pioneering business executives from all corners of the world.

Discussions will address more than eighty issues concerning the world and possible solutions to these issues will be suggested. The theme of the meet has been named UAE Brainstorms for the World.

The WEF stated that has successfully created a developed and growing economy due to the approaches and policies it has implemented in the country. The approaches adopted by the UAE posed as effective when trying to battle with challenges faced internationally, and successful in redefining the globe’s development plans.

The meeting was held at a significant period of time, when the entire world needs to battle and solve issues that arise like humanitarian, health, unemployment, food, poverty and extremism, lack of recourses and energy problems.

As a result, of growth and development projects within the Gulf region, the Middle Eastern countries have also benefited by attracting attention by potential investors and generally, the world. The WEF outlined that by cooperating with the UAE and adopting approaches to grow, would be crucial in finding solutions to important issues and redefining development throughout all economies of the world.

The fact that the summit was held in Dubai further accentuates the fact that the city supports and is committed to solving international challenges and issues. Dubai, like most of the emirates, has vigorously embraced and introduced different ways to enhance innovation within the city. One of its best decisions Dubai has taken is to hold the Dubai Government 2012 Initiative. The Dubai Government 2012 was organized to implement technology in people’s daily lives.

Through the Dubai Government 2012 Initiative, the state has successfully created a new link between customers and the government, supplying customer relations using a corporate manner as well as establishing Dubai as the most technologically advanced city in the world through adopting one hundred initiatives and more than one thousand tech-related services.

The meeting lasted till the 11 November, and it focused on multiple topics that are presently relevant like renewable energy, climate change, energy security, entertainment, media, infrastructure, internet security, innovation approaches and property. During the meeting the participants also addressed other critical matters like health, humanitarian issues, refugee issues, extremities and other such significant topics that the world is facing currently.

The solutions and results that have been decided upon will be brought forward in Davos at the World Economic Forum. 

Source: http://www.lowtax.net/blogs/World-Economic-Forum-on-the-Global-Agenda-meet-begins-in-Dubai-572332.html

Aviation Sector contributes largely to Dubai’s economy

Aviation Sector contributes largely to Dubai’s economy: 37.5 percent to its GDP and will support over 750,000 work positions by 2020

The United Arab Emirates (UAE) aviation sector, including Emirates Airline and Dubai Airports, contributed a total of $26.7 billion to Dubai’s economy during the previous year. The contribution amounted to 27% of Dubai’s GDP as a whole. Additionally the aviation sector offered 416,500 jobs equal to the 21% of total employment in Dubai.

These records were based on a report conducted by Oxford Economics, an international research company, which publicized the figures in its most recent report, Quantifying the Economic Impact of Aviation in Dubai. The same company conducted the same research in 2011.

The purpose of the report was to measure and calculate the extent in which the aviation sector influences the economy and Dubai-based related companies. The report outlines the beneficial influences Dubai’s economy has enjoyed during 2013 concerning Gross Value Added (GVA) and employment rate. The report also examines how the aviation sector will influence the emirate’s economy in the future (2020, 2030)

The report asserts the extent the aviation sector contributes to the economic growth as well as contributing towards other industries, posing as a means for a range of activities and fields within the economy.

The reason Dubai has developed incredibly during through the years is due to the goals and visions set by its government as well as strategic planning and cooperative work. It comes as no surprise that Dubai is an international aviation hub at present. Dubai has worked hard through the years to become more competent and create an infrastructure, in order to further develop and grow. Dubai will continue investing in its infrastructure, welcome international competition amongst other aviation sectors and aim to open new efficient markets while conducting effective activities and implementing efficient policies. Finally, Dubai’s aim is to become the number one destination amongst international travelers as well as traders, who will consider the emirate as a great destination and transport centre.

Aviation Sector Contribution to Economy

The entire aviation sector, including Dubai Airports, Emirates Airline and other related aviation businesses like airlines flying in and out of Dubai, Dubai Duty Free and other authorities, contributed a total of US$16.5 billion to Dubai’s GVA during 2013. The amount also takes into consideration direct, indirect as well as other contributions. The amount contributed by the aviation sector attributed to 16.5% of the emirate’s GDP, and it is estimated the sector offered 259 thousand jobs in Dubai alone.

Additionally, every $100 generated from the aviation field, an additional $72 is spent in other fields within the emirate’s economy. Likewise, for every 100-work positions created within the aviation field a further 116 work positions are opened in the emirate.

Tourism-Based Benefits

it is not surprising that the aviation sector has positively influenced and enhanced the tourism industry in Dubai. in 2013 total tourism and other travel related activities contributed $10.2 billion GVA, which in turn opened an additional 157,100 employment positions. During 2013, almost 10 million non-UAE travelers visited Dubai. Their total expenditure amounted to $13 billion.

Both the public and private aviation sectors worked towards establishing and developing Dubai’s aviation and tourism infrastructure, aiming to further support and enhance inflow of tourists. Dubai’s efforts have paid off since at present the emirate holds a 0.4% share of business and tourism inflow, two times more than in 2000.

Connecting Flights from Dubai

One of Dubai’s most significant attributes is the connecting flights it offers to other destinations.  According to the report, visitors could connect to 25 cities internationally from Dubai, equal to lightly over 80% of international cities. In general, during the previous year, Dubai offered travelers connections to about 150 cities, populated with more than one million people, thus establishing possible export markets in 13% of the world’s overall population. Likewise, cargo tonnage has also developed and grown significantly since 1990, showing a 13.5% growth annually. Average international trade has also experienced a 5.6% growth rate annually.

Both Dubai’s passenger and cargo connecting flights have positively influenced trade and Foreign Direct Investment (FDI) as well as opening doors to new foreign, enhancing exports and rising the amount of competition within Dubai’s local economy.

Predictions of Economic Benefits in 2020 and 2030

During the next six years, Dubai’s aviation sector is presumed to grow due to its International passenger and cargo inflow. The aviation sector’s airline as well as airport capacity is constantly expanding in order to cater to the increasing demand. 

In accordance to the estimated growth the aviation sector will experience and Dubai’s plans to expand both its airports, Dubai International (DXB) and Al Maktoum International at Dubai World Central (DWC), it is presumed that the sector will contribute a total of $53.1 billion by 2020, including both tourism and aviation activities.

According to forecasts made, by 2020, the UAE will have the capacity to fly as much as 70 million travelers. The UAE’s airline and all its associates are already establishing plans to create the efficient infrastructure required to support the increase in the number of travelers. During 2020, Dubai will host the Expo 2020, which will attract more than 20 million visitors. Nonetheless, Dubai is hopeful all will run smoothly, as it has already began projects required to accommodate all the visitors.

The plan is to expand the size of the airports, which entails increasing airspace, stands areas, terminal areas and airfield. The aim is to be able to accommodate as much as 60% more airplanes by the end of 2015, and have the capacity to cater services to 90 million travelers by 2018. By 2020, it is forecasted that Dubai International will cater to 126.5 million travelers, 30% more than what was initially estimated in 2010.

By 2013, the aviation sector is estimated to contribute $88.1 billion to the emirates economy, supporting 1,194,700 positions in total. 

Dubai Trade Greets 'Doing Business 2015' Report

The Doing Business 2015 report, published by the World Bank and International Finance Corporation (IFC) was greeted warmly by Dubai Trade, the leading cross-border trade launcher.

According to the report, the United Arab Emirate (UAE) moved up three positions, in contrast to its last year ranking. The UAE is now amongst the top ten economies that have showed the most improvement since last year. 

The UAE was delighted by the Doing Business 2015 report and viewed it as an honor because the World Bank and IFC annual reports are internationally considered as the best business index. The yearly report motivates and inspires changes and the introduction of new policies. Thus, being amongst the top ten most improved economies will attract more investments, motivating investors to launch new projects and further enhance the region.

Another report, the Ease of Doing Business, names the best and worst economies for conducting business ventures by taking into account ten diverse features of an economy like trading across borders, new business launches and property that has been registered. According to the report, the UAE is trading with the 189 countries included in the report, and as such has been marked in the top ten countries. The UAE has also been positioned for the eighth successive year, as the first country in the MENA region under the Trading across Borders category.

The UAE contributed its success to its innovative business spirit, computerization and simple procedure the nation has adopted at their ports, including e-payments, e-gate passes and simplistic clearance procedure. The report shows the UAE is on its way to accomplish its aim of being one of the best countries on the globe by 2021.

The Doing Business Report 2015 evaluated the UAE as the only economy in the Middle East to be ranked in the top 25 countries listed in the report.
 

Since the previous report, the UAE has improved in three of the ten features the World Bank and IFC evaluate. The UAE showed improvement in acquiring credit, registering of property and protecting small investors. The UAE preserved its previous position, holding its first place under the paying taxes in ease category, while upholding its fourth position under acquiring electricity, obtaining permits for construction and registration of property. On an international level, the UAE came eighth under the trading across borders category.

Dubai Trade has contributed greatly to the UAE’s overall improvement, by gathering important and relevant information from customers and assembling the information collected through to its state authorities, like the Committee of the Executive Council, the Prime Minister’s office and staff, the Emirates Competitiveness Council and the Dubai Competitiveness Council. The results of the annual Doing Business report, aids the UAE to further improve by introducing new trade modifications and alterations, while also enhancing other sectors by attracting more investments and businesses within the region.

The UAE view their success to their leadership and their motivation to develop and launch projects similar to those developed in the majority of OECD countries like Denmark, New Zealand, Norway, Korea, the UK, Finland, the USA and Australia. The UAE is proud to be ranked amongst the leading economies of the world as being a business-friendly environment. In addition, it is noteworthy to mention that the UAE’s position improves every year.

Dubai Trade is attentively cooperating with its trade partners and logistics, such as the Dubai Customs, DP World and Economic Zones World. Dubai Trade intends to further improve the procedures of conducting business in Dubai in order to maintain its high-ranked position within the MENA region as well as in the international scope. It aims to decrease export and import fees, paper work and time. Presently three documents are required to be submitted concerning exports and five are needed for imports. In addition, in comparison to OECD, which takes about ten days to export and seven days to import, the UAE only takes seven days for both.

During the last three years, the UAE has managed to maintain a high ranking both regionally and internationally. The World Bank and IFC support the UAE’s improvement and state that the nation has created the best business-friendly regulatory environment throughout the MENA region. 

Dubai Banks

In spite of decrease loan growth and global crisis, it is generally believed that banks within the United Arab Emirates (UAE) will record an increase amount of profits in the third financial quarter of 2014.

The UAE banks have shown an increase in profitability and troubles concerning liquidity of funds seem to have alleviated. The Non-Performing Loans (NPL) has marked a noticeable decline from 8.7% in 2012. In 2013 the NPL was recorded at 8.1% thus decreasing 0.6% and is expected to fall to 7.4 in 2014.

The UAE banks are presumed to show increased profits made by lower provisions and a strengthened loan growth reference to the consumer banking business. In accordance to SICO, an investment bank based in Bahrain, due to the obvious increased confidence within the corporate sector, UAE banks are presumed to record higher asset growth rates and profits because of the increased business the real estate sector is generating and higher levels of state spending.

Credit growth increased by approximately 4% in UAE’s banking sector in the first half of 2014. Expert analysts anticipate the growth will reach 7% by the end of 2014, and is anticipated the growth rate will increase even further in the following year. Standard & Poor’s, a credit rating agency, anticipate credit growth will increase by 8-9% in 2014-2015. This credit growth is anticipated based on the state’s spending and diversified business sectors that are growing, apart from oil dependant sectors.

In accordance to the Purchasing Managers Index (PMI), the UAE’s economic sectors, without taking into consideration oil companies, strengthened tremendously in August-September. Additionally, the pace in which non-oil companies expanded was rapid within the previous three months.

Experts believe UAE banks will remain healthy in 2014, and will be enhanced further by its diversified sectors (non-oil companies), increase in real estate and low interest rates. The rise in quality real estate together with the growth in credit demand in the corporate sector will inevitably lead to a rise in profits.

Standard & Poor’s anticipates that banks based in Dubai will grow at a faster pace compared to other banks in the emirates, like Abu Dhabi for instance. This is due to the fact that Dubai-based banks were cautious with approving loans from 2009 to 2012. In 2013, Dubai-based banks started lending since the majority of banks advanced and developed their funding profiles and quality of assets.

During the previous month, Dubai’s Islamic Bank announced its loan forecasts for 2014. Previously, the bank presumed it would lend 10%-15%, whereas now it anticipates lending 15%-20% in 2014.

Expert financial advisors and professional bankers state that margin compression is an issue that all UAE banks will need to deal with. Nonetheless, they remain confident that the banks will remain healthy and retain their high profitability rates although the increased competition they will face, and consequently lead the UAE banks to higher levels of liquidity and lower margin compression rates.   

In September 2014, analysts announced that UAE banks are expected to increase their profitability, improve their liquidity and remain capitalised.