UAE
UAE moves towards privatisation
UAE moves towards privatisation
By Saifur Rahman, Business News Editor GULF NEWS Published: October 21, 2007, 23:04
Dubai: The UAE Cabinet yesterday approved the privatisation of the country’s utility sector.
This involves privatisation of assets belonging to the Federal Electricity and Water Authority (Fewa), part of the UAE Federal Government, which supplies water and electricity to parts of the Northern Emirates.
The approval was made yesterday in a meeting chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
“The Cabinet approved an amendment to Federal Law No. 31 for 1999 regarding the establishment of the Federal Electricity and Water Authority, adding an article that allows private investors to invest in the production and distribution of electricity and water in the country,” said a statement.
The move marks a major shift from the tradition of owning and managing the state’s assets towards allowing private participation. It is, however, not clear which model would the Federal Government adopt: initial public offering (IPO) or selling stakes to private partners.
Although privatisation of utilities is not new to the country, as most of the power and desalination plants in Abu Dhabi have already been privatised, the rest of the country is yet to follow. Dubai, which has one of the country’s largest utility operations, has not yet made moves to privatise services, although it has allowed some quasi-private district cooling companies to enter the market recently.
The Cabinet’s decision is in line with recent comments made by the global financial watchdog the International Monetary Fund (IMF) in its country report earlier this month.
“IMF directors encourage the listing on the equity market of large quasi-public enterprises, and promote an increased role for institutional investors in the markets,” the report said.
The Cabinet decision comes hours after DP World, the world’s third largest container terminal operator, announced its decision to offload 20 per cent stake, roughly valued at $4 billion through an IPO.
Welcoming the steps to enhance the supervision of capital markets and efforts to update the banking law and the company law, the IMF said, “These steps would, inter alia, remove barriers to foreign participation in UAE markets and help protect shareholder rights.”
The IMF called on the authorities to move ahead to enact the draft securities law.
“Such measures would strengthen investor confidence, reduce market volatility, and deepen the UAE’s capital markets,” it said.
The latest round of privatisation moves will help the country’s financial services sector and help attract larger liquidity pools, officials say.
Per E. Larsson, chief executive of Borse Dubai and Dubai International Financial Exchange (DIFX), said, “Our world-class trading platform will help DP World access the regional investment base, estimated to have $3 trillion in available liquidity, and the local retail investor base, as well as the international capital markets.”
Hamed Ali, executive officer of DIFX, said, “We have successfully built a very healthy environment for trading, including a world-class trading platform and close links with regional and international brokers. These include 19 members – 14 international and 5 regional – contractual agreements with market makers, and connections with the international central securities depositories Clear-stream and Euroclear.”
Fast facts: Demand expected to surge by 7%
– Utility demand in the UAE is expected to grow between six to seven per cent.
– Prices of electricity and water vary in the country as the UAE’s four major utility authorities
– Abu Dhabi Electricity and Water Authority (Adwea), Dubai Electricity and Water Authority (Dewa), Sharjah Electricity and Water Authority (Sewa) and Federal Electricity and Water Authority (Fewa) supply water and electricity at various rates.- To meet the demand, Fewa is investing in new capacity.
Sand storms hit UAE
Sand storms hit UAE
By Mahmood Saberi, Staff Reporter GULF NEWS Published: October 10, 2007, 12:26
Dubai: Strong easterly winds whipped up huge dust storms across Dubai and Sharjah reducing visibility to under 500 metres at Dubai Airport, the met office said.
Flights were not disrupted, but the visibility on the ground was even even less, specially on Emirates Road, said the duty forecaster, warning motorists to be careful.
“All flights are on time,” according to flight operations at the aiport.
In Sharjah winds of 30 knots forced drivers to switch on their parking lights because of low visibility while driving and in Jebel Ali construction nearly came to a standstill because of the high winds.
Workers were seen masking their faces against the harsh winds blowing sand on their faces. 
The met office expects the winds to die down and the weather to clear up by the night. 
“The bad weather is due to the seasonal changes,” said the forecaster, noting that temperatures are still hovering around 36 to 37 degrees Celsius.
The winds also whipped high swells offshore but there was no marine warning.
In Abu Dhabi it was a clear day.
Khalifa Park opens on first day of Eid
Khalifa Park opens on first day of Eid
By Rayeesa Absal, Staff Reporter GULF NEWS Published: October 10, 2007, 00:22
Abu Dhabi: The much-awaited Khalifa Park will open at 5pm on the first day of Eid as a gift to residents of the capital city.
The park is 1-kilometre long by half a kilometer wide and has cost Dh220 million to create. The park has been designed on a ‘parks within a park’ concept to cater to society as a whole.
The contemporary design of the park brings together the best principles of landscaping and innovative architecture encompassing aspects such as environmental conservation, culture, heritage, art and theatre, theme park, gardens and much more.
Khalifa Park, located on the Eastern Ring Road, has a National History Museum and Maritime Museum for educational purposes. The museum will feature details of a civilisation that existed in and around Umm Al Nar region for over 5,000 years.
Also glimpses from ancient times depicting the daily life of historical cultures will take visitors through a time travel tunnel. The ‘Time Tunnel’ ride makes you travel on a monorail through a living history with all the sights sounds and smells of an era past.
A serpentine route, a long green strip providing an array of activities with shaded corridors and seating areas, runs through the park.
On either side of the park’s Grand Avenue are jewel gardens, palm oasis gardens, water gardens with different types of water displays like musical fountains, waterfalls, computerised water display and cascades. Islamic gardens have been created within the park following traditional designs.
There are also demonstration gardens that highlight the use of plants for decoration and beauty, for food production and commercial purposes.
Gearing up to observe end of blessed month
Gearing up to observe end of blessed month
By Samir Salama, Bureau Chief GULF NEWS Published: October 10, 2007, 00:37
Abu Dhabi : Eid Al Fitr, the Islamic celebration following the end of Ramadan, is upon us once again and the choice of activities during the public holiday is wide across the Emirates. From contemporary Arabic music concerts, international dance troupes and theatre, there is something to do for all the family.
Eid Al Fitr is a day of blessings for all fasting Muslims as they are promised great rewards by Almighty Allah for observing their fast. It is one of the two festivals of Islam and celebrated by all Muslims on the first day of Shawwal – the tenth month of the lunar Islamic calendar, which marks the completion of Ramadan.
By the end of Ramadan, Muslims express their gratitude to Allah for enabling them to fast and at the same time granted them abundant provision during the blessed month.
Eid Al Fitr, therefore, is a day of joy, acts of worship, thanksgiving to Allah, brotherhood, unity, and spiritual provision.
As Almighty Allah has put Muslims to test during Ramadan, Muslims feel a great sense of achievement at the end of the month: it is the joy of spiritual fulfilment.
Zakat Al Fitr, or the giving of alms, is offered to the poor during Eid.
The ceremony of Eid Al Fitr starts early morning with Eid prayers. This service is generally held in a large open place and is attended by thousands of Muslims.
After the prayer, the leader of the prayer or the Imam delivers a short sermon and then people greet each other. The rest of the ceremonies, generally, are held privately with families and friends.
Even though fasting is not permitted during Eid, the major part of the celebration is not to just eat and drink but to pray, and for Muslims to get together to remember Allah’s bounties and celebrate His glory and greatness.
Two festivals
Muslims have two festivals – Eid Al Fitr and Eid Al Adha, which mark the conclusion of important periods of worship like fasting and the Haj, or pilgrimage to Makkah. They also show determination to continue to obey and submit to Almighty Allah.
When Prophet Mohammad (PBUH) came to Madinah, the people of Madinah used to have two festivals. On of those two days they had carnivals and festivity. The Prophet asked the Ansar (the Muslims of Madinah) about it.
They replied that before Islam they used to have carnivals on those two joyous days. The Prophet told them: “Instead of those two days, Allah has appointed two other days which are better, the days of Eid Al Fitr and Eid Al Adha.”
For Muslims, the two Eids are an occasion to increase their good deeds.
What Muslims do during Eid
On the day of Eid, there are some Sunnah acts that Muslims should do, including:
Wake up early and have breakfast before leaving for the Eid prayer ground.
Dress in the best clothes that a Muslim can afford, that are reasonable and modest.
Apply perfume (men only).
Offer Eid prayers in congregation in an open place.
Engage in takbir prayers after the Faj, or sunrise prayer, until the imam comes out for prayers. Takbir is recommended for males, females, young and old.
It is also important to make sure to pay Zakat Al Fitr before the prayer. Ideally, it should be given in advance so that the poor can enjoy their Eid.
Wish every one the joy of Eid.
It is also a good Islamic practice to visit one another and exchange gifts. The Prophet (PBUH) said: “Exchange gifts in order to foster love.”
Remember the true spirit of Eid is reflected in extreme generosity to the poor and the needy. So, a Muslim should be charitable as best as he or she can.
Changing route on returning from the prayer ground
to exchange Eid greetings with as many Muslims.
Movies
With movie going becoming an increasingly popular Eid holiday pastime, cinemas are gearing up to release some popular English, Arabic and Hindi titles.
“The Eid season has traditionally been the busiest week of the year for cinemas in terms of admissions,” said Cameron Mitchell, General Manager of Cinestar Middle East.
“Ramadan, on the other hand, is the slowest time of the year”.
Mitchell said film distributors often wait till the Eid season to release movies if they expect them to do better then.
Some of the major releases:
The Kingdom
Resident Evil 3
Daddy Daycare
Georgia Rule
Omar wa Salma (Arabic)
– Laga Chunari me Daag (Hindi)
Bhulbulaiyaa (Hindi)
Entertainment
Abu Dhabi
October 10 – 13
Moroccan Live cooking activities
Where: Al Wadha Mall
Price: Free
October 13 – 15
Who: Story tellers will be there to entertain children under the theme of Ramadan – Zamman or Ramadan in the past, backgammon competitions
Where: Marina Mall
First day of Eid
Who: Fatoon – Emirati singer, Live Music Performance by International Dance Group
Where: Al Wahda Mall
Second day of Eid
Who: Fatoon – Emirati singer, Live Music Performance by International Dance Group
Where: Al Wahda Mall
Third day of Eid
Who: Live Music Performance by International Dance Group
Where: Al Raha Mall
October 14 – Middle East International Film Festival at the Emirates Palace in association with the Abu Dhabi Authority for Culture and Heritage (ADACH).
Who: opening night of The Atonement followed by an after party
Where: Emirates Palace
Price: Dh500
October 15 – Free screenings of films across Abu Dhabi, for listings check http://www.meiff.com
Dubai
October 10 – Dubai Ramadan Fair You can also make your way to the Airport Expo Dubai for one last night to meander amongst products from 10 countries from around the world. The fair is a unique event and attracts a large numbers of consumers from across the GCC.
Theatre every night during Eid – 9pm
“Travel Blind” by Safer Alemian performed in Arabic
Where: Rashid Auditorium, Indian School Council.
Price: Dh20 per person, with the proceeds going towards Dubai Cares.
“Shaabiyat” by Dubai Folklore Society Theatre, a comedy performed in Arabic
Where: Al Mamzar area, under the patronage of Dubai Cultural Council.
Price: Dh20 per person, with the proceeds going towards Dubai Cares.
Jumana – Secret of the Desert is a pyrotechnics show, which includes waterworks, fireworks and laser effects with hundreds of actors and acrobats who bring a stage play to life in the middle of the desert. The show takes place at the Al Sahra Desert Resort part of Dubailand.
First day of Eid
Who : Fares Karam, Aasi Al Helani and Nancy Ajram
Where: Madinat Jumeirah Arena
Price: Dh300
Second day of Eid
Who : Hussain Al Jasmi, Rashid Al Majid and Yara
Where : Madinat Jumeirah Arena
Price: Dh300
Who : Mohammad Hamaki, Myriam Fares
Where : The Aviation Club
Price: Dh150 to Dh750
Third day of Eid
Who: Elissa, Fadel Shakir and Shereen.
Where: Madinat Jumeirah Arena
Price: Dh300
Oct 15 – Disney Star Show will be staged at Dubai Creek Park between 7pm and 9pm. The Disney Symphony will feature songs from the early classics through to recent releases, including ‘The Lion King’ and ‘The Little Mermaid’, accompanied by two giant screens displaying scenes from each film. Call 04 366 22 77 for tickets.
Inputs by Emmanuelle Landais, Siham Al Najami, Zoi Constantine, Dina El Shamma, Staff Reporters
Thousands of festive lights set Abu Dhabi aglow
Thousands of festive lights set Abu Dhabi aglow
By Rayeesa Absal, Staff Reporter GULF NEWS Published: October 09, 2007, 23:51
Abu Dhabi: The city’s exuberant mood is set during the Eid holiday by thousands of multicoloured lights that bring the capital aglow.
The garlands of lights draped across buildings add a real holiday atmosphere with the city’s well known skyscrapers twinkling for all to see.
Three Indian brothers Yousuf Karikkayil, Salam and Kabeer are behind the bright lights in the big city and work hard for days to design and create the look of buildings such as the Abu Dhabi Chamber of Commerce and Industries.
The Karikkayils’ business, the Light Tower, is also behind the buildings of the ADNOC group of companies such as the ADNOC headquarters and the Etisalat buildings, to name but a few.
In fact, the Light Tower has been contracted to do the lighting jobs for many of the capital’s landmark buildings over the past years. And not just for Eid, but also for all other festive days such as National Day.
“I have decorated the Chambers building for the last 15 years, ADNOC for the last 10 years and the National Drilling Company (NDC) for the last nine years,” said Yousuf, adding their job is not for novices.
“The foremost constraint is that during a festive season all the buildings have to be decorated at the same time. Also we have to mind the wind speed for safety reasons, two people are engaged at a time and as they work if the wind seems to get harder we have to stop. Well-trained workers are a must.”
Talking about a very special design, Yousuf said that last year to mark National Day celebrations the NDC building was lit up using more than 100,000 bulbs.
Blue LED bulbs were used for this expensive type of decoration. It usually takes 25 days to decorate a building but sometimes for bigger buildings we take up to 45 days, he added.
Abu Dhabi Awards deadline extended – 4 more days to nominate
Abu Dhabi Awards deadline extended
By M. A. Qudoos (Deputy Bureau Chief) KHALEEJ TIMES 7 October 2007
ABU DHABI — The deadline for nominations to the Abu Dhabi Awards has been extended to October 14 in order to ensure participation of citizens and residents of the emirate of Abu Dhabi, including Al Ain and the Western region. This has been done keeping in mind the upcoming Eid holidays.
Through the Abu Dhabi Awards, local residents are encouraged to take advantage of the Eid holidays to honour those who have carried out deeds of exemplary kindness and generosity for the good of the emirate of Abu Dhabi.
Commenting on the event, Abu Dhabi Awards 2006 recipient Sana’a Darwish Al Kitby, who was honoured for her leadership role in the Red Crescent Society, said: “It only takes a few minutes to fill out a nomination form, but the impact it could have may be life-changing for the individual you are recognising. This is encouragement for them and others in our community to keep making a contribution.”
Statistics and credit bureaus soon
Challenge will be to ensure sustained non-inflationary growth.
Statistics and credit bureaus soon
By Saifur Rahman, Business News Editor GULF NEWS Published: October 09, 2007, 23:50
Dubai: The UAE will establish a National Bureau of Statistics (NBS) and a Federal Credit Bureau by the end of this year, the International Monetary Fund (IMF) said yesterday in its latest country report.
The move will be followed by several statistical surveys, currently in the preparatory stage, including a study on household income and expenditure in line with UAE’s efforts to formulate a consumer price index (CPI) to measure real inflation – one of the major woes impacting the lives of its more than 4.5 million residents.
The report, Article IV Consultation 2007 with the UAE, “welcomed the prep-arations to introduce a Value Added Tax (VAT) system at the federal level.”
“Efforts to address the weaknesses of economic statistics at the national level have intensified. Work is under way to improve consumer price data and to establish the NBS by end-2007,” said the report, a copy of which is in possession of Gulf News.
The UAE’s real GDP growth exceeded 9.4 per cent in 2006, with oil production rising by eight per cent and non-oil sectors growing at double-digit rates.
Dr Mohammad Al Asoomi, a UAE-based economist, said a high VAT could hurt the consumers.
“The authorities should introduce VAT from a low base and then gradually bring it up to the five per cent level,” he told Gulf News. “However, it should be a GCC-wide move and not an individual national move.”
Strong domestic demand and housing shortages have led to sharp rises in rents and contributed to upward pressure on other prices. As a result, the CPI inflation exceeded 9.3 per cent in 2006, the IMF said.
The IMF observed that although the assessment of inflation is complicated by data weaknesses, the rate of price increases, driven mainly by strong demand for housing, is too high.
“However, the anticipated reduction of capacity constraints – especially in the housing market – is likely to reduce inflation pressures over the medium term,” the report said.
“Fiscal policy could play a greater role in regulating domestic demand. In particular, expenditure increases – including by public and quasi-public entities – should be consistent with the country’s absorptive capacity. This, together with efforts to alleviate capacity constraints, would help subdue inflation and support a continued economic expansion with macroeconomic stability.”
Reflecting record oil prices, the overall fiscal and external current account surpluses remained large in 2006, and have allowed further accumulation of official foreign assets.
The medium-term outlook is very positive with real GDP growth projected to remain strong in 2007, and slightly decelerating thereafter due to temporary capacity constraints.
The fiscal and external accounts are projected to remain in large surplus. IMF agreed that “the key challenges will be to ensure sustained noninflationary growth and further diversification of the economy.”
Dollar peg
The IMF report agreed that the peg of the dirham to the US dollar has served the UAE well. “The exchange rate of the dirham is in line with fundamentals,” the report said, adding, “Further structural reforms would help to sustain the UAE’s competitiveness.”
The IMF appreciated the authorities’ commitment to work closely with other GCC member countries to a reach consensus on the appropriate future exchange rate regime to be adopted as part of the GCC currency union.
The IMF welcomed steps to enhance the supervision of capital markets and efforts to update the banking law and the company law.
“These steps would, inter alia, remove barriers to foreign participation in UAE markets and help protect shareholder rights,” the report said.
The IMF report called on the authorities to move ahead to enact the draft securities law, encourage the listing on the equity market of large quasi-public enterprises, and promote an increased role for institutional investors in the markets.
Hyatt International to operate hotel at Abu Dhabi’s Capital Gate
Hyatt International to operate hotel at Abu Dhabi’s Capital Gate Staff Report GULF NEWS Published: October 08, 2007, 23:16
Dubai: Hyatt International will operate a 200 room, 5-star hotel in Abu Dhabi’s Capital Gate building, part of the Abu Dhabi National Exhibition Centre, a statement said yesterday.
The hotel will open in 2009 and will be the first Hyatt operated facility in the UAE capital city. In recognition of its significance and its stature, Hyatt International has named the hotel ‘Hyatt at Capital Centre’. It will be one of the most exclusive hotels in the world. Hyatt International already operates three luxury hotels in Dubai under the brands Park Hyatt, Grand Hyatt and Hyatt Regency.
“Capital Gate is a unique building which will become famous around the world. It was essential that the hotel was operated by an organisation which matched its status, I’m delighted that this operator is Hyatt International,” Shaikh Sultan Bin Tahnoon Al Nahyan, chairman of Capital Centre and Adnec said in a statement
Air Arabia set to land in Bangalore
Air Arabia set to land in Bangalore
Staff Report GULF NEWS Published: October 08, 2007, 23:16
Dubai: Air Arabia, the largest low-cost carrier in the Middle East and North Africa (Mena), will begin its service to the south Indian city of Bangalore on October 15, a company statement said yesterday.
The flights will initially operate four times per week between Bangalore and Air Arabia’s hub in Sharjah. From October 29, the frequency will be increased to daily.
Flights to Bangalore will leave Sharjah at 10:50pm local time and arrive in Bangalore at 4:20am local time. Return flights will leave Bangalore at 5:05am local time and arrive in Sharjah at 7:50am local time.
Kyle Haywood, commercial director, Air Arabia said: “Our rapidly expanding route destination network between India and the Middle East answers a growing need for passengers travelling between the two economically vibrant regions. We seek to give those who travel between these two regions low-cost fares along with the highest quality of service possible, whether they travel for business, holidays or to see family and friends.”
Expanding network
Bangalore is Air Arabia’s ninth destination in India, and increases Air Arabia’s total destinations to 37, a destination network that stretches from Eastern Europe, through the Middle East and North Africa, to South Asia.
Bangalore is India’s third most populous city and a major economic hub for the country. With its addition to Air Arabia’s 11 other destinations in South Asia, Air Arabia has become one of the leading low-cost carriers serving this growing region.
Bangalore is one of India’s most dynamic cities, and has been India’s leading centre for information technology, earning the nickname the ‘Silicon Valley of India’. In addition to being at the forefront of India’s technology revolution, Bangalore is also considered the ‘Garden City of India’ due to its lush climate, extensive vegetation and many public parks.
An ancient city, it was first mentioned in literature in the ninth century as part of the Ganga Kingdom. Then it was called ‘Bengaval-uru’ or the ‘City of Guards’.
“We are pleased to add Bangalore to our low-cost flight network within India. With the large Indian expatriate population living in the Gulf countries, this new flight route represents even more low-cost convenience for those who have family, friends and homes in both these regions,” Haywood said.
Air Arabia, established in February 2003 by an Amiri decree, began operations in October of the same year. Based in Sharjah and with a fleet of ten Airbus A320 aircraft, Air Arabia serves 36 destinations across the Middle East, North Africa, the Indian subcontinent and Central Asia.
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