Global economy on recovery path, IMF

The global economy is no longer in a danger. Signs of stabilization are emerging from the euro zone and the United States. Nevertheless, high debt levels in developed markets and rising oil prices remain key risks ahead, according to the IMF.

“The global economy may be on a path to recovery, but there is not a great deal of room for man oeuvre and no room for policy mistakes,” International Monetary Fund (IMF) Managing Director, Christine Lagarde, said in in Beijing on Sunday. Read more

Asian companies set to benefit from Eurozone crisis

• Asian companies are more likely to make strategic acquisitions in the European Union than those from other major economies outside of the eurozone
• Significant minority of non-European business leaders think the euro will not survive 2012
• The UK’s status elevated in response to the eurozone crisis
• Businesses outside of Europe call on their political leaders to help Europe’s economy

Asian companies are more intent on finding investment opportunities in Europe than those in the Middle East or North America, according to research from FTI Consulting, the global business advisory firm dedicated to helping organisations protect and enhance their enterprise value. Read more

Dubai: Financial Crisis Assessment

A renewed threat of recession in Europe would certainly have an impact on Dubai’s economy, though a greater flexibility developed in recent years will help the emirate weather out the storms.

Though it has further transformed and strengthened its economy by rationalizing investments, Dubai is still receptive to global economic downturn, as it was in 2008. This is mainly due to the significance of financial, tourism and trade sectors as the emirate’s leading GDP contributors. Read more

Political stability key as Dubai renews efforts to tap investment

Dubai’s bid to bounce back from the global economic crisis will be mapped out in a wide-ranging report to be published by the global publishing, research and consultancy firm Oxford Business Group (OBG).

The Report: Dubai 2013 will explore the Emirate’s move to regain the ground it lost during the downturn, including its efforts to attract new investors which have been strengthened by a politically stable climate. It will also contain a detailed, sector-by-sector guide for foreign investors, alongside a wide range of interviews with the most prominent political, economic and business leaders. Read more

Local construction companies vs foreign contractors

Rapid activity in Dubai’s domestic construction sector continues with signs that the industry is gradually regaining strength after the global financial crisis challenged property markets worldwide.

While local trade is starting to pick up, many firms have excess capacity to utilise and empty pages on their order books to fill, prompting some to look further afield for projects.

A number of leading local companies are competing for lucrative construction contracts in neighboring Gulf states and in other parts of the world, inventing brand new opportunities for the construction sector. In particular, new projects are increasingly launched in Qatar and Saudi Arabia. Read more

Who is right: Nakheel, its former CEO or The Financial Crisis?

Earlier in 2011, the now former SEO of Nakheel, Chris O’Donnell, filed a high-profile case in which he is claiming about AED13.5m (US $3.7m) in long-term incentive payments, plus interest and numerous other entitlements from his old employer. The former chief executive of the property giant presented the case to the Dubai World Tribunal this week.

During his five-year tenure that ended in June, Mr O’Donnell earned an annual salary of about AED4.8m (US$1.3m), according to various media reports. For the period of five years, the amount totals AED24m (US $6,5m).

Nakheel, right now is a government-bailed company, struggling on the recovery path. In September, the property developer wrote down AED78.6bn (US $21.4bn) from the value of its real estate during the Dubai debt crisis, which saw house prices fall more than 60 percent from their peak in 2008. The company made thousands of staff redundant, as it struggled to stem losses during the last three years. Read more

UAE economy owns ability to compete within economic changes in 2012

• UAE is ready to cooperate with Norway and Denmark in the fields of innovation, research and pharmaceuticals
• UAE economy owns the ability to compete within the economic changes in 2012: Al Mansoori

His Excellency Sultan Al Mansoori, UAE Minister of Economy, said that the UAE economy is able to enhance the UAE’s competitive position during 2012 through its ability to deal with the economic variables of the financial crisis taking place in both Europe and the US. Read more

Commodities growth to ease in 2012

Expectations of lower inflation is expected to reduce commodities’ appeal in 2012. Two of 2011’s strongest performing assets, gold and oil, are unlikely to replicate these returns in 2012. While supported by very low real interest rates, gold is likely to be held back by the U.S. dollar’s strength; however, an aggressive quantitative easing programme could provide a catalyst for a considerable move higher. Controlled supply should limit crude oil’s potential decline, according to Bill O’Neill, Chief Investment Officer for Europe, Middle East and Africa (EMEA) at Merrill Lynch Wealth Management. Read more

Credit Suisse: Global wealth has soared 14% since 2010

• Asia Pacific stands out as the key contributor of global wealth growth, accounting for 36% of global wealth creation since 2000 and 54% since 2010

The Credit Suisse Research Institute today released its second annual Global Wealth Report, which finds that Asia Pacific emerges as the key contributor of global wealth growth, accounting for 36% of all global wealth creation since 2000, and 54% since January 2010. Total global wealth has increased 14% from USD 203 trillion in January 2010 to USD 231 trillion in June 2011. Emerging markets remain the main wealth growth engine, with the fastest growth seen in Latin America, Africa and Asia. In the next five years, global wealth is expected to rise by 50% to USD 345 trillion and wealth per adult to increase 40% to reach USD 70,700, led by growth in emerging markets. The Report finds that emerging markets have considerable scope to increase personal wealth given their much lower ratio of net financial assets to income and a much lower debt-income ratio than found in mature economies. Aging is also expected to increase the demand for financial assets relative to real assets like housing. Read more

UAE Real GDP growth seen at 4.2 pct in 2011

The United Arab Emirates’ economy is expected to grow by 4.2 percent in real terms this year, according to the National Bureau of Statistics.

Real gross domestic product of the country expanded by 1.4 percent in 2010, after a 1.6 percent contraction in the previous year due to the global financial crisis, which slashed oil output and burst a local property market bubble.

In 2011, the property sector has remained weak because of an inflow of new developments to the market, and bank lending has stayed slow following the announcement of a $25 billion debt restructuring at Dubai World conglomerate in 2010. Read more

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