HH Sheikh Mohammed approved Dubai's budget for the year 2012

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, on Sunday approved Dubai's budget for the year 2012.

The budget directly applies directives as set by His Highness to focus on a prudent fiscal policy that provides the stimuli necessary to economic growth in the emirate, the completion of the main infrastructure projects, and chart government expenditure in order to consolidate financial sustainability.

The Department of Finance said that the 2012 public budget is based on a set of core principles, namely continuing efforts to raise the efficiency of government spending through increasing productivity and improving economic and social returns, according to a press release distributed on Sunday by the Dubai Government Media Office.

The budget also focused on diversifying the public revenue sources, increasing their returns, developing clear rules for transparency and fiscal discipline whereby all government departments will continue to implement the highest international quality standards, especially in the services sector.

According to the Department of Finance, the gap in 2012 public budget between the public revenues of Dh30.431 billion and public expenditures of Dh32.258 billion is estimated at around Dh1.827 billion. This constitutes 0.6 per cent of estimated GDP of the emirate, which is in line with international financial guidelines that state that the gap should not exceed three per cent of the GDP. This is further confirmation that the government is continuing to follow a rational expansionary fiscal policy as directed by the Supreme Committee of Fiscal Policy in the Emirate.

Furthermore, a 53 per cent drop in the deficit to Dh1.8 billion from the fiscal year 2011 forecasts shows the emirate is serious in dealing with the public budget deficit while maintaining the growth and support averages for social, economic sectors and public services.

In the 2012 budget for the Government of Dubai, the infrastructure, transportation and economic development sectors make up 41 per cent of total public expenditure. This includes a number of vital sectors including roads, transport, civil aviation, airports and tourism.

Twenty nine per cent of total public expenditure is allocated to the social development sector including areas of health care, education, housing and culture.

The budget shortfall of the United Arab Emirates member was set at 1.83 billion dirhams ($498.2 million) or 0.6 percent of its 2010 gross domestic product, down from a 3.78 billion gap or 1.3 percent of GDP planned for 2011.

Spending is projected at 32.26 billion dirhams, the statement said, slightly down from 33.68 billion planned for 2011. Revenues have been set at 30.43 billion dirhams, up from 29.91 billion projected for 2011.

The statement did not say whether Dubai planned to issue government bonds to finance the gap. The emirate's government launched a $500 million 10-year bond in June.

Dubai carrier Emirates raised $1 billion in a five-year issue the same month, yielding 5.125 percent, which attracted orders of over $5 billion.

The Gulf trade and business hub, whose budget stands at around 14 percent of that of neighbouring Abu Dhabi, does not release regular updates on its fiscal performance.

Dubai relies on various fees, taxes and customs duties for around 85 percent of its budget revenues since it lacks oil wealth of Abu Dhabi.

Fiscal policy is a key tool for UAE policymakers to steer the oil-reliant economy, as the central bank's flexibility is limited by the OPEC member's currency peg to the U.S. dollar.

Most of UAE government expenditure is undertaken by the individual emirates with Dubai accounting for around 11 percent of the total.

Dubai, which narrowly averted a bond default in 2009, could use money raised by its sovereign wealth fund to help repay $3.8 billion in bonds owed by state-linked firms which mature next year, a source said.

The Gulf Arab emirate has clawed its way back from the depths of its debt crisis, helped by an economic revival in trade and tourism and its safe-haven status amid the regional social revolts, but still faces the challenge of big debt repayments.

GCC Petrochemical Sector - 3Q11

·      WTI and OPEC prices increase by 16.5% and 31.1% respectively during 3Q11

·      GCC Petrochemical companies profit up 62.4%YoY during 3Q11

·      Rise in raw material prices and increase in demand prop up end-product prices

·      Risk remains in the form of sovereign debt crisis

GCC petrochemical companies profit up by 62.4%YoY during 3Q11

GCC petrochemical company’s 3Q11 earnings increased 62.4% YoY to USD3.57bn as compared to USD2.19bn in the same period last year. Overall, performance of regional petrochemical companies were mixed with SABIC, IQ, SAFCO, YANSAB, TASNEE, SIPCHEM and DANA reporting better than expected earnings while other stocks such as Saudi Kayan, Petro Rabigh, Saudi Petrochem and Nama Chemical continued to extend their losses as they are yet to start full throttle commercial production. Within the GCC petrochemical companies, Global Research Petrochemical Universe witnessed a sizable growth of 61.5% during 3Q11 in the profitability.

Prices of petrochemical products up on an average by 31.5%YoY during 3Q11

Producers passed on the impact of sharp rise in the prices of naphtha and other raw materials used in petrochemical products to the consumers as the prices of various petrochemical product rose in the range of 15-55% during 3Q11. In addition, strong increase in demand from Asia, particularly China, has resulted in upward pressure on end-products prices.

IQ halts steel plant projects due to gas availability while others faced technical issues

During the quarter, the company said it had put on hold two planned steel plants worth QAR8.1bn in the industrial city of Mesaieed due to problems securing natural gas for the projects. While, Saudi Chemanol and Alujain faced technical problems during the quarter. Saudi Chemanol halted production in its methanol and dimethylformamide plants for about 12 days in order to implement some technical improvements in the two plants. Alujain Corporation announces that a sudden technical problem occurred in September, 2011 in the dehydrogenation unit of its subsidiary NATPETs Propylene and Polypropylene Complex in Yanbu Industrial City caused stoppage of the production activity for two weeks. 

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UAE among world’s 25 rapid growth markets

DUBAI - The UAE and three Arab countries rank among the world’s 25 Rapid Growth Markets, or RGMs, that are poised to achieve an average of 6.2 per cent growth in 2011, and to eventually account for 50 per cent of global gross domestic product, or GDP, in nine years, a leading global business consultancy company said.

The UAE is ranked second after Qatar as the country with the highest nominal GDP per capita measured at purchasing power parity, or PPP, in 2010 among the 25 RGMs, said Ernst & Young’s quarterly Rapid Growth Markets Forecast.

Qatar has also been the fastest growing economy over the last decade, with an average growth of 13 per cent, it said. Egypt’s average growth was at 4.9 per cent, the UAE at 4.3 per cent and Saudi Arabia achieved almost 3.2 per cent growth.

The 25 RGMs will account for 38 per cent of world consumer spending and 55 per cent of world fixed capital investment, according to the forecast. By 2020, rapid growth markets will account for 50 per cent of global GDP when measured at purchasing power parity.

According to Ernst & Young’s  report, the 25 RGMs have grown on average by 5.8 per cent per year over the last decade, more than three times as fast as the advanced economies combined and this rapid pace of expansion is set to continue, with growth in RGMs outpacing the advanced economies by more than 3.5 per cent per annum over the next decade.

“The dynamics of the global economy have changed with a new set of fast-growing markets challenging the position of the established advanced economies. The RGMs are expected to grow collectively by 6.2 per cent this year, almost four times more than the anemic growth expected in the eurozone,” said the report.

In 2012 the RGMs are expected to grow by 5.9 per cent, compared with 1.6 per cent growth for the eurozone this year falling to 0.6 per cent next year.

This forecast, which is co-produced with Oxford Economics and based on the Oxford Economics’ Global Econometric Model, offers insight on macroeconomic trends across 25 RGMs which have been selected based on the size of the economy and population, strategic importance for business and proven strong growth and future potential.

Bassam Hage, Mena markets leader, Ernst & Young, said rapid growth markets are becoming increasingly important in terms of both their overall weight in the world economy and their global influence. “While the advanced economies struggle with weak growth, RGMs seem well-placed to better weather the economic storm.”

The forecast shows average GDP growth in the RGMs edging just under six per cent in 2012, with the American and Asian countries seeing the most marked slowing in growth. The outlook in the Middle East, however, is more positive with resource-rich countries such as Qatar, Saudi Arabia and the UAE benefiting from high oil prices.

“With the exception of Egypt’s slow recovering economy which is being weighed down by local developments, Qatar, Saudi Arabia and the UAE are expected to see continued strong growth in the future,” said Bassam.

Dubai Pre-Owned Boat Show - Sales Exceed AED 26 million

Nearly 6,500 visitors flocked to the stunning Dubai Creek Marina at the weekend for the second ever Dubai Pre-Owned Boat Show sponsored by Midex Airlines, which was officially inaugurated by HH Shaikh Mansour bin Mohammed bin Rashid Al Maktoum.

Prospective and existing boat owners from around the region, as well as fun-seeking families headed to the Dubai Creek Marina to view the striking pre-owned boats for sale as well as take part in exciting activities on the water including a Jet Ski competition.

Despite the frivolity of the occasion, business remained a key focus and the event proved to be a phenomenal success with 22 boats sold at a combined price of over AED 26 million. The highly sought-after Princess 50 was snatched off the market on the first day itself at the competitive price of AED 4 million. Separately, the top two buyers bought boats totalling AED 7.5 million respectively, including a pristine Azimut 62 for AED 4 million.

Sales were not limited to boats alone, as the event provided a ‘one stop-shop’ with a complete range of retail offering from the marine and leisure industries. Speaking on the event's success, Mustafa Al-Hashimi, Club Manager of Dubai Creek Golf and Yacht Club said, “Following the successful debut of the Dubai Pre-Owned Boat Show last year, we are thrilled to see that this year’s event has surpassed the last. The show was eagerly received by not only boating enthusiasts from around the region, but many families from the local community.  With boat sales topping AED 26 million, the overwhelming demand for the second Dubai Pre-Owned Boat Show truly demonstrates that there is a strong and growing appetite for pre-owned boats in the region which this event is able to satisfy, and we very much look forward to building on this success for next year’s event. Having increased the exhibitor area this year by 20% we successfully served as a platform to directly engage buyers and sellers of pre-owned boats, marine equipment and boating services. ”

 

Sultan Bin Al-Sheikh Bin Mohammed Bin Mejren, Founder of Samawy Marine Boat Manufacturing Company, and one of the many prestigious exhibitors at Dubai Pre-Owned Boat Show,  added: "We are pleased with what the show has achieved in terms of our sales; it was a huge success, bringing a great business environment to an informal atmosphere with a truly exquisite display of boats and yachts, including those made to international standards. As someone who has been a member of the Dubai Creek Golf & Yacht Club for more than 18 years, it was good to feel the familiar community spirit and excitement over the three days at the creek club."

The Dubai Pre-Owned Boat Show took place from 17-19^th November at Dubai Creek Marina, sponsored by Midex Airlines, and showcased 85 boats to the value of 55 million, ranging from a 25ft to 88ft and from 30,000AED to 22 million AED. Buyers were able to conveniently ‘buy and sail it home’ with key partners such as Arabian Scandinavian Insurance Co. (ASCANA) on site to provide special offers on boat insurance, and Gulf Finance to offer marine finance for buyers.

Royal Caribbean Cruises Ltd. - the world's largest global cruise line - announced a record year of business for the Middle East region in 2011

Dubai. 20 October 2011: Royal Caribbean Cruises Ltd. - the world's largest global cruise line - announced a record year of business for the Middle East region in 2011. From January through September 2011 bookings from the region for Royal Caribbean Cruises’ three global brands - Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises - have increased significantly with guest volume rising by 34 percent compared to the same period last year.

“All markets performed well and showed positive growth compared to last year,” said Lakshmi Durai, Executive Director Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises Middle East. “We are very happy with the support we get from travel agencies around the region and our education programme as well as marketing and PR activities are successfully demonstrating the advantages of cruising as a holiday option for guests in the Middle East.”

As in previous years, Europe was the most popular cruise destination for travelers from the Middle East. According to Royal Caribbean Cruises, approximately 75 percent of all bookings from the region were made for European cruises. The second most popular destination for cruise travelers from the Middle East was the Caribbean.

“Royal Caribbean’s 2011 Europe cruise season was the biggest ever European deployment with 12 ships offering 109 unique itineraries, ranging from three to 15 nights and visiting 27 countries”, explains Durai. “Liberty of the Seas, the largest cruise ship sailing in Europe, was the top choice with attractions like the DreamWorks® experience and the Flow Rider® surf park. The Caribbean is also a favourite destination and with the two biggest ships of the world – Oasis of the Seas and Allure of the Seas – sailing in the Western and Eastern Caribbean offering the Aquatheatre, Central Park, state-of-the-art spas, onboard shopping malls, Broadway shows and much more, the interest of regional guests was very high”, she adds.

The UAE and Oman have become increasingly popular cruise destinations over the last few years. In the 2010/2011 cruise season, 135 ships brought a total of around 375,000 passengers to Dubai. Abu Dhabi received 78 calls by cruise liners with around 140,000 passengers disembarking and 109 cruise ships called at Muscat Port carrying 340,000 passengers in 2010.

Due to the high demand, Royal Caribbean International is extending its third consecutive season in the Gulf region to 6 months – which run from November 2011 through to April 2012. The longest season to date will comprise of 18 roundtrip 7-night sailings and two Dubai and India 12-nights sailings.

Brilliance of the Seas, one of the world’s most elegant cruise ships, starts her 7-night itineraries in Dubai, sails to Fujairah and docks in Muscat where guests can enjoy an overnight stay. She then continues, spending the day at sea, via Abu Dhabi and then back to Dubai.

Royal Caribbean International is the only cruise line in the region offering two new 12-night itineraries which includes ports in India. Sailing from Dubai to Mumbai spending three days at sea, Brilliance of the Seas then calls into Goa, New Mangalore and Cochin before docking in Muscat and then sailing back to Dubai.

Cruising is the fastest growing leisure vacation choice today and it also enjoys the highest rate of repeat satisfied customers of any type of vacation. The choices of destination, experience, accommodations, and cuisine are almost limitless and cruising is the ultimate vacation in value and convenience, according to the Cruise Lines International Association Inc. (CLIA).

The cruise industry continues to innovate and deliver on the cruise product promise, with the result that more and more vacationers are intending to take a cruise in the near future – in 2010 nearly 15 million guests worldwide went on a cruise and stayed an average length of 7.2 days. By year end 2011 the cruise market will reach 19.2 million annual passengers worldwide. Looking forward to 2014 that number is projected to reach 21.6 million, according to Cruise Market Watch.