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Editorial

The UAE development progress successfully because the vision of such development is protects it and progresses it ahead. A country is incapable to develop and progress unless through a sound and scientific vision of its present and future through clear planning of its objects and ambitions and with full awareness of the regional and international developments. The UAE development model draws the world attention as the UAE witnesses development and progress in various fields albeit the effects of the international financial crisis from which the world has not been recovered yet. Accordingly, the other countries is interests to develop and strengthen its commercial and economic ties with the United Arab Emirates given that it is a leading developmental model which gives rise to optimistic view that the world is capable to overcome its economic crisis. As such, the United Arab Emirates is a strategic hub for all foreign investments and international major companies thanks to the distinct economic policies depending on openness and diversity. Further, the United Arab Emirates encourages good investment environment to the investors starting from freehold in the free zones and providing developing infrastructures besides the UAE strategic location as a gate to the countries of the Middle East through the idealistic opportunities it provides to the investors in various business enterprises. The United Arab Emirates has attained success in broadening its foreign ties and strengthening its political and economic relations with the major and ascending powers thanks to its pivotal standing it has started to occupy in the development at the international level. The United Arab Emirates is seen as having a leading and distinct experience in the development. There is a settled conception that no place in the competing age unless for inventive creations which are a true addition to the development plans. The United Arab Emirates has given great concern to the inventors and creators who lead nations' development as creation in various fields is capable to illuminate the future for the people who aspire to growth and development. Undoubtedly, throwing light over the creative experiments and conferring honour upon the creative individuals will give an idealistic model to the next generations and will urge others to exert more efforts, work, and achievement. The unlimited ambitions of development need creative individuals and the United Arab Emirates is always concerned about encouraging and supporting creation and deepening the culture leading to creation in the society.

Editorial Board


Fujairah News Reel

His Highness Crown Prince of Fujairah witnesses the 8th graduation ceremony of "Police Generations" His Highness Crown Prince of Fujairah inaugurates Lulu Hypermarket in Dibba Fujairah National Bank of Fujairah strengthens presence home base, re launches flagship branch Mohamed Thani Al Rumaithi elected as Chairman of Federation of UAE Chambers of Commerce & Industries and Saeed Khammas as Deputy Chairman Fujairah Chamber asserts its dedication to develop the business sector Fujairah Chamber considers strengthening commercial ties with Bangladesh Interview Ambitious objects of Electric Cables Company in Fujairah 20,000 tons the production capacity of the Company in the first operation state Reports

A call to reduce the varied prices of energy in GCC states Coordination must be effected to achieve minimum integrity in various fields


Panorama

The United Arab Emirates ranks 6th in the good infrastructure as reported by the International Competition 2.6 billion is the net foreign investment in the UAE securities markets The United Arab Emirates ranks 11th in attracting direct foreign investments More than 31 millions ton of production in the main plastic materials in 2015 Kuwait ranks first in exporting investments to the Arab countries A regional conference on the Arab financial flows Korean imports from the Middle East rise to $3.4 billions


Fujairah News Real

His Highness Crown Prince of Fujairah witnesses the 8th graduation ceremony of "Police Generations"

His Highness sheikh Mohamed Bin Hamad Bin Mohamed AL Sharqi Crown Prince of Fujairah witnessed the 8th graduation ceremony of "Police Generations" as to the training of school students which was organized by the Fujairah General Police Headquarters at the training field of the Traffic & Licensing Department in Hail. The ceremony was attended by H.E Colonel Mohamed Ahmed Bin Ghanim Al Kaabi, General Director of Fujairah 4

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Police, a number of senior officers, directors of federal and local departments in the Emirate and parents of the students. His Highness Crown Prince of Fujairah asserted that the youths should be occupied with useful things during the summer school holidays and congratulated the graduates who successfully passed the course and wished them success in their schools and career in future and thanked the organizers of the course and wished them success.

His Highness Crown Prince of Fujairah praised the role played by Fujairah Police in to perform its summer programs in its 8th consecutive year, particularly the program 'police generations' which started in 2003 and the security awareness of all individuals in the society, particularly the youngsters. His Highness says 'we see insistence and pleasure in the eyes of the graduates of the 8th course of the police generations for serving our beloved country in all fields.


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reflects the role played by Fujairah police in serving the society through the criteria of content and performance springing from the HE Brigadier Colonel Ali general strategy adopted by Rashid Bin Naye, head of the Ministry of Interior. the planning and developH.E Brigadier Colonel Ali ment section and general controller of the program Rashid Bin Naye indicated 'police generations' in that the support given by Fujairah General Police His Highness Sheikh Saif Headquarters delivered a Bin Zayed Al Nahyan, word wherein he empha- Deputy Prime Minister and sized that the graduation Minister of Interior, and the course of 'police genera- dedicated follow up paid by tions' which is held for the Colonel Mohamed Ahmed 8th consecutive year under Bin Ghanim Al Kaabi, the directives of His General Director of Fujairah Highness Sheikh Hamad Police, led to the integrity of Bin Mohamed Al Sharqi, the training course 'police Supreme Council Member generations' and preparaand Ruler of Fujairah tion of a well conversant They should be proud of themselves as they are the men of future and support for the nation.

generation equipped with science and knowledge besides lofty objects which instill love for the nation and strengthen concepts of cooperation, morals, and academic success. The general controller of the course 'police generations' said that the number of graduates of the 8th session is 172 individuals. Thus the total graduates including of the past years is 1,055 students. The ceremony involved a military parade, music performance, installation and dismantling weapons, and other military parades which grasped the audience's attention.

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At the end of the ceremo- the highly successful gradu- Chamber of Commerce & ny His Highness Crown ates and sponsors of the Industry. Prince of Fujairah honoured ceremony including Fujairah

His Highness Crown Prince of Fujairah Inaugurates Lulu Hypermarket in Dibba Fujairah

His Highness Sheikh Mohamed Bin Hamad Bin Mohamed Al Sharqi, Crown Prince of Fujairah Inaugurated Lulu Hypermarket in Dibba Fujairah, the 82nd branch of Lulu Hypermarket. The inauguration was attended by directors of government departments and corporations and, sec6

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tors figures in Fujairah, businessmen, senior officers, and public in Dibba Fujairah and neighbouring areas. His Highness Crown Prince of Fujairah after having cutting the inauguration ribbon toured the shopping centre which consists of two levels and contains trading

goods, foodstuffs, electronics, household appliances, furniture, linens, readymade garments, and special promoting section of products. H.H heard an explanation from H.E Yousuf Ali, the manager of Lulu Group as to the sections and contents of the shopping mall and praised the quality and diversity of the goods.


Fujairah News Real

requirements investment.

His Highness Crown Prince of Fujairah says 'Lulu Centre is a local and international tourist and entertainment centre which acti-

for

The manager of Lulu Group presented an exemplary token to His Highness Crown Prince of Fujairah and the inhabitants of Dibba welcomed the inauguration of Lulu Hypermarket 'it does provide the consumers with requisites under one roof without moving among varvate trading and tourism in ious places and shopping Fujairah'. H.H asserted that centers. the UAE encouraged and supported investment and provide all development

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NBF strengthens presence in home base; re-launches flagship branch AED 83 million the net profits of National Bank of Fujairah in the first half of 2010 always put us in good stead to support Fujairah’s aspirations. “By upgrading existing infrastructure such as our main Fujairah branch, we are putting on a show of strength in the marketplace while firming up the foundation to further consolidate and grow our core businesses,” he said. The National Bank of Fujairah (NBF) today announced the re-launch of its main branch in Fujairah after renovations for the past three months. The 12,000 sq ft branch, inaugurated in 1994, was officially re-opened by H.H Sheikh Saleh Bin Mohammed Al Sharqi, Chairman of NBF in a ribbon cutting ceremony that was also attended by the bank’s Board of Directors and senior management. The flagship of NBF’s 12branch network across the UAE, the Fujairah branch now sports a more modern ambience with its wooden paneled walls, clean lighting and circular meeting rooms. 8

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There were also other improvements, such as the installation of more customer teller counters and waiting areas, including a separate one for female clients. The corporate banking and trade finance offices have also been enlarged, while provisions are currently being made for a drivethrough ATM before the end of the year. H.H Sheikh Saleh Bin Mohammed Al Sharqi, Chairman of NBF, said that the newly renovated branch underscores the bank’s preeminent position in Fujairah: “Our proposition as an established full-service bank with strong trade finance credentials has

Vince Cook, NBF Chief Executive, said that the branch re-launch is in line with the bank's strategy of fully exploiting its retail network. He said that the Fujairah branch is the most significant in a series of renovations being carried out: “This is our showcase branch and this investment reflects our commitment to further nurturing our roots. “Fujairah continues to develop its status as an export and trading hub, so alongside the refurbishment of our premises we are also upgrading our efforts to cater to the needs of the growing business sector,” he said. Regional Manager Sharif


Fujairah News Real

Mohamed Rafei, who is in charge of the bank’s retail operations, said that the branch re-launch will enable NBF to better serve the Fujairah community: “We want to thank our customers for their loyal support by providing them with a comfortable and enjoyable banking experience.” On the other hand, the National Bank of Fujairah earned in the first half of 2010 as at 30 June net profits of AED 83 millions comparing to net profits of AED 60.7 million in the same period of 2009. This represents an increase of 36.7% in the first half of 2010. HE Eissa Saleh Al Gurg, Deputy Chairman of the

Board of Directors, said that the bank derived its strong results from its main businesses in all over the United Arab Emirates and will continue to avail of its abundant cash flow and use its adequate capital to develop its business in good quality. The banking operations increased from AED 239.9 million to AED 278.5 millions comparing to the revenues of the same period last year which reflects a growth at the rate of 16.1% although the costs of cash liquidity was not precedent. The net revenue of the interests totaled AED 175.1 millions, an increase of 13.5% more than the results of the first half of 2010 which

totaled AED 154.3 millions. According to the bank's strategy the investment assets were reduced to AED 42.3 millions comparing to AED 56.6 million in 31 December 2009. The investment revenue amounted to AED 3.9 as shown in the income statement comparing to the same period last year which was AED 32.3 million. The total operational costs is in the sum of AED 102.3 million in a decline of 16.3% comparing to the operational costs in 2009 which was in the sum of AED 122.2 millions. The total of the assets is AED 12.5 billions out of AED 11.9 billions at the end of 2009.

Chairman of the Free Zone Authority inaugurates two typing centers in Fujairah Sheikh Saif Bin Hamad Bin Saif Al Sharqi, Chairman of the Fujairah Free Zone Authority, inaugurated Al Mostaned Centre and Future Typing Services at Al Faseel and Merished, Fujairah, in presence of Sheikh Abdulla Bin Hamad Bin Saif Al Sharqi, H.E Saeed Ali Khammas, Chairman of the Board of Directors of Fujairah

Chamber of Commerce & Industry, H.E Humaid Bin Demas, Deputy Director General of Ministry of Labour, H.E Saif Al Suwaidi, Director of Service Centers in the Ministry, H.E Khalid Mohamed Al Jassim, Director General of Fujairah Chamber of Commerce & Industry, Mr. Abdul Wahab Eissa Abdulla, Expert in the department of labour

offices, Ms. Aesha, Blhrfiya Director of labour offices department in the Ministry, HE Abdulla Bin Awash, Director of Fujairah Labour Office, and a number of senior officers, businessmen, and invited individuals. H.E Humaid Bin Dimas, Director General of the Ministry of Labour, said that Issue No. 127 - 20th year - 2010

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the opening of both centers kept in line with the Ministry's directives aiming at strengthening partnership with the private sector in order that the centers are a distinct model in rendering typing services and receiving the Ministry's application and sending them by electronic means in accordance with quality criteria and specific requirements to achieve the highest standards of satisfaction to the dealers and to render the best services and minimize problems in respect of dealing with the Ministry and spare efforts and times for the applicants so as to process their applications as soon as possible. He also said that the concep10

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tion of the centers was based on partnership and emiratization under a concession contract conferred upon by the Ministry in accordance with the requirements that the ownership and management of the centers were by nationals and with national employees. He also said that the experiment was a good model of the emiratization after the centers having provided 45 jobs for qualified nationals. He also said that the opening of the centers did not mean that the present typing centers (around 20 centers) should be ceased but they would only cease rendering services related to the Ministry of Labour.

On the other hand, the director of service centers in the Ministry of Labour said that the experiment was one of the Ministry's initiatives to emiratize the motto into a material fact. He also said that the Ministry aimed through the setup of the centers to upgrade the rendering of efficient services to the applicants by providing quality services including typing of applications and preparing them and then sending to the Ministry. He said that the Ministry's officers would be present at the centers to achieve partnership and for the purpose of control. Mostaned Centre which situated at King Faisal Street and which is owned by Mr. Nassir Ali Al Mesmari, has 30 employees. Future Centre which is situated at Sheikh Hamad Bin Abdulla and which is owned by Mr. Abdulla Mohamed Masood Al Mazroui, employs 15 workers.


Fujairah News Real

Mohamed Thani Al Rumaithi elected as Chairman of Federation of UAE Chambers of Commerce & Industries and Saeed Khammas as Deputy Chairman Industry.

The Federation of UAE Chambers of Commerce & Industries elected H.E Mohamed Thani Al Rumaithi, Chairman of Abu Dhabi Chamber of Commerce & Industry, as Chairman of the Federation and H.E Saeed Ali Khammas, the Chairman of Fujairah Chamber of Commerce & Industry, as a Deputy Chairman and the members of the Executive Office of the Federation. The elections conducted at the 84th session of the board of directors of the Federation of UAE Chambers of Commerce & Industries and general assembly recently hosted by Umm Al Quwain Chamber of Commerce &

late the economic relations and serve the private sector in the UAE so as to enhance the economic and investment movement to an advanced position in parallel with the civil and economic boom witnessed by the UAE in all fields. He also emphasized that the role of the common councils of the businessmen in the UAE and GCC states should be enhanced because of its importance in strengthening the economic relationships and private sector in the comprehensive economic development currently witnessed by the UAE and GCC states.

H.E Mohamed Thani Al Rumaithi thanked the members of the board of directors as to the confidence they conferred upon him and praised the vital and important role played by the Federation in strengthening and developing the economic ties between the United Arab Emirates and the countries all over the world under the leadership of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates, and His Highness Sheikh Mohamed Bin Rashid Al Maktoum, Vice President, H.E Khalid Mohamed Al Prime Minister, and Ruler of Jassim, Director General of Dubai. Fujairah Chamber of He emphasized that the Commerce & Industry says Federation exerted efforts 'the council discussed during for the economic develop- the meeting a number of the ment and coordinated issues in the agenda such as among the UAE chambers the establishment of a joint of commerce of commerce and industries chamber which function under its between the United Arab umbrella with the federal Emirates and Scandinavian ministries and local depart- countries, the establishment ments by laying down of a regional office in the statutes and laws to regu- United Arab Emirates as Issue No. 127 - 20th year - 2010

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expressed by the association of Arab exporters and investors of the Arab Economic Unity Council, a number of proposals from the Egyptian General Chambers Federation as to the development of the trading relations between the United Arab Emirates and Arab Republic of Egypt, and the constitution of joint authority between the United Arab Emirates and Turkey as requested by Ankara Chamber of Industry. The Council agreed on the establishment of a number of joint business councils between the United Arab Emirates and Saudi Arabia, Spain, South Africa, and the United Kingdom, and the participation in the Third 12

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Arab Greek Economic Forum due to be held in next September in the Greek capital, Athens, and the UAE Lebanese Forum scheduled to be held in next November. The Board of Directors of the Federation approved the final accounts and annual report on the activities of the Federation in 2009. He praised the achievements the association conducted at all levels, particularly its membership in the international committees and organizations and Arab foreign chambers associations and joint councils. The Council also reviewed the International Bank report on the business activ-

ities in the United Arab Emirates in 2010 and the memorandum of understanding made with Turkmenist Chamber of Commerce and national Kenyan chamber of of commerce and industry. The general assembly of the Federation held a meeting in presence of the chairmen and members of the boards of directors and directors of the UAE chambers of commerce. A special honour ceremony was held for H.E Eng. Salah Salim Bin Omair Al Shamsi, the former Chairman of the last session for his glorious efforts and service he rendered to the business sector, in general, and Federation, in particular, and for H.E Abdullah Rashid Al Kharji, Member of the Federation and Chairman of Umm Al Quwain Chamber, as to the last session for his efforts throughout a period of thirty years in the service of the UAE private sector, in general, and Umm Al Quwain, in particular.


Fujairah News Real

Fujairah Chamber Emphasizes Its Dedication To Develop The Business Sector

H.E Saeed Ali Khammas, chairman of the Board of directors of Fujairah Chamber of Commerce & Industry, emphasized the Chamber's dedication develop the business sector and upgrade the contribution of the private sector to the economic development of Fujairah by encouraging and supporting the smallscale and medium-scale enterprises and encouraging youths to enter the labour market by providing facilities to them within the framework of the agreement the Chamber made with the Ambitious Program.

agenda was approved and the minutes of the last meeting was reviewed including the meeting of the executive office and financial report of the chamber as at 31 May 2010 and minutes of the law committee.

H.E Khalid Mohamed Al Jassim, Director General of the Chamber, says 'the meeting discussed the administration report as to the follow-up of the work plan of the Chamber for 2010 including the preparations for the opening of the Chamber's building, the arrangements and preparations to be taken for organThis was at the second izing an appropriate ceremeeting of the board of mony in this occasion. directors of the Chamber at He also says 'the board of the 11th session where the

directors directed the laying down of a new strategy for the Chamber so as to keep in line with the developments in the present stage provided that it includes new concepts and visions so as new services are rendered to the members such as done by the leading chambers in this regard. Further, the Chamber is dedicated to improve the services so as to attain the targeted vision of the Chamber to urge the development and economic and social growth in the emirate of Fujairah and to promote for the emirate through the participation in conferences and exhibitions held in sister and friendly countries and regional and international economic events so as to attract economic delegations and make them aware of the business opportunities available in the emirate, particularly in tourism and services thanks to the strategic location of Fujairah at UAE Eastern Coast and out of Hormez Straits and Gulf of Oman and Indian Ocean.

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Fujairah Chamber Considers Strengthening Commercial Ties With Bangladesh

H.E Khalid Mohamed Al Jassim, Director General of Fujairah Chamber of Commerce & Industry emphasized the role played by the United Arab Emirates as a strategic centre for foreign investments thanks to the economic openness adopted by the United Arab Emirates and its dedication to strengthen its ties with the sister and friendly countries. This was stated at the meeting with H.E Mohamed Abu Zafar, Bangladesh Consul General at the United Arab Emirates . The meeting was attended by 14

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H.E Mahamud Ul Hoque, The Commercial Counselor at the consulate. The meeting considered the enhancement of the trading and economic relationships between the United Arab Emirates and Bangladesh for the interests of both sides and praised the wishes of the leaderships in both countries to develop their ties to better prospects. The Director General of the Chamber reviewed the economic characteristics in Fujairah and said that thanks to the directives of His Highness Sheikh Hamad Bin Mohamed Al

Sharqi, Supreme Council Member and Ruler of Fujairah, Fujairah has expanded the productive sectors in order to diversify the income sources. Thus Fujairah has become a vital centre of development projects in trade, industry, tourism, and bunkering as Fujairah now has occupied an advanced position thanks to its location at the UAE Eastern Coast. He asserted that the present relationship between the United Arab Emirates and Bangladesh provides various business opportunities of positive reflection on the economies of both coun-


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tries. He praised the role played by Bangladesh Consulate in the United Arab Emirates in strengthening the trading activities in both countries. He emphasized the importance of exchanging experts and visits between the businessmen in Fujairah and Bangladesh and the participation in the exhibitions held in both countries as

they are promotional means with their counterparts in which support the joint busi- Fujairah and exchange ness relations. views in all fields for serving the economy in the two sisHis Excellency Consul ter countries. He reviewed the economic General of Bangladesh to the United Arab Emirates aspects in his country and expressed his appreciation invited the businessmen in for the developing relation- Fujairah to visit Bangladesh ships between the United and acquaint themselves as Arab Emirates and to the available business Bangladesh and said that opportunities and to estabthe Bangladeshi business- lish investments for the men will to open liaison links interest of both sides.

Trading Ties Between Fujairah And South Africa Are Reviewed available in Fujairah in industry, services, and tourism. He says 'Fujairah has a distinct location at the open seas outside the Straits of Hormz and is a vital centre of bunkering. He indicated the vital role played by the emirate such as Fujairah Port, Fujairah International Airport, and Free Zone Authority in enhancing the trade between the United Arab and Indian This statement was deliv- Emirates ered during the reception of Subcontinent and East Mr. Ashok Ghosh, the mar- African countries. keting officer in the South He says 'Fujairah African Consulate to the United Arab Emirates. The Chamber of Commerce & Deputy Director General of Industry lays down in its the Chamber acquainted plan the prominent strategic the marketing officer with and economic characteristhe investment opportunities tics of the emirate by providSultan Jami Obaid, Deputy Director General of Fujairah Chamber of Commerce & Industry, emphasized that the trading and economic ties between the United Arab Emirates and South Africa should be strengthened and pushed to broad horizons by encouraging the businessmen to avail of the business opportunities available in both countries.

ing services and facilities to the business community and promote for the emirate by participating in exhibitions and international, regional, and local events. He expressed the preparedness of the Chamber to provide facilities to the South African investors who intend to invest in Fujairah and indicated the importance of participating in the exhibitions held in both countries and exchange of visits between the economic delegations so as to strengthen the ties between the businessmen and develop the trade and investment. He said that Fujairah has trade relations with South Issue No. 127 - 20th year - 2010

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Africa as the trade exchange of the United Arab Emirates with South Africa through Fujairah Port

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the South African Consulate to the United Arab Emirates praised the economic relations between his country and the United Arab Emirates and expressed the dedication of the South African businessmen to maintain economic partnerships with their counterparts in the United Arab Emirates. Mr. Ashok Kosh invited the businessmen in Fujairah to visit South Africa so as to totaled AED 154 millions in know the business opportunities in various economic 2009. fields. The marketing officer in


INTERVIEW

Ambitious Objects Of Electric Cables Company In Fujairah In this framework Power Plus Cable, which was set up in Al Hail Industrial Area, Fujairah, in partnership between the Government of Fujairah (51%) and Rafin Cable Limited, an Indian company (49%).

Location

The United Arab Emirates has given special priority for the correction of the production structure and reduction of dependence upon oil and gas. From such direction, the United Arab Emirates found that the current situation should only be corrected by diversifying the income

HE Dr. Eng. Ibrahim Saad, Director of Fujairah Statistics Centre and representative of the Government of Fujairah to the Company, says 'Fujairah was chosen as premises for the company thanks to its strategic location and its ability to deal with developing economies in Asia and Africa and the continuous support from the local authorities in Fujairah to the existent and emerging industries. Power Plus Cable was established in Fujairah to meet the projects of

growth for which the company is proud because it is an effective partner in the urban development of Fujairah. The company is situated in an area of 110,000 square meters and the main building area occupies 25,000 square meters. The actual

AED 100 millions is the capital of the company. establishment of the company started in April 2007 and completed by December 2008. The capital of the company is in the sum of AED 100 millions and the production capacity is 20,000 tons per year in the first operational stage which continues for three years. The company purports to increase the production capacity of all cables in the second

Power Plus was established in Fujairah to meet the needs of infrastructures in Fujairah, United Arab Emirates, and GCC states. sources and settling sound bases for the national economy. As such, industry has been given concentration because it is – according to the international economic standard – is very important sector on which the development efforts should be based. According to this strategic vision of Fujairah under the directives of His Highness Sheikh Hamad Bin Mohamed Al Sharqi, Member of the Supreme Council, and Ruler of Fujairah and His Highness Sheikh Mohamed Bin Hamad Bin Mohamed Al Sharqi, Crown Prince of Fujairah, Fujairah has adopted industrialization as one of its options to speed up the economic growth rates. Over the past years a number of industries based on ambitious objects has started for using the local resources and supporting exports.

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the incoming infrastructures in the emirate, United Arab Emirates, and GCC states as cables is an important part of the urban development witnessed by Fujairah. As such, the growth in the company's production has increased along with such

operational stage to 40,000 tons per year.

Production HE Dr. Eng. Ibrahim Saad says 'Power Plus Cable currently manufactures electric cables, cables insu-


INTERVIEW lated by poly chloride vinyl, flexible cable, poly chloride vinyl cables, control cables, medium volt cables, and high voltage cables under the trade name 'Cable Prime Cap'. The essential raw materials are purchased from the local markets in the United Arab Emirates and GCC states and some other raw materials are imported from the United States and China.

20,000 tons per year is the company's production capacity of the company at the first operational stage.

The company's products are exported to the GCC states and Middle Eastern countries. There are attempts to export the products to the European and African countries.

Future Plan HE Dr. Eng. Ibrahim Saad says 'the company is able to manufacture electric cables of 220 kilovolts. The company intends to develop the lab of testing and upgrading cables from 33 kilovolts to 220 kilovolts in order to meet the local demand on energy in the Middle East which rapidly increases thanks to the population increases and economic growth. As such, the energy sector needs more investments. He says 'the purpose of manufacturing electric cables as to the energy sector is to avail of the huge investments in the energy. One of the most important projects is the Gulf electric link which would enhance the demand on cables.

Electric cables are manufactured for availing of the huge investments in the energy sector.

He also says 'the company will help meet the demands of electricity distribution in the United Arab Emirates as the international quality management program and the strict compliance with quality will help the company's products to compete international trade marks in terms of quality. He says 'the company currently has 130 engineers, administrative officers, and workers and will employ national employees in the field with broadening the manpower base in the company.

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REPORT

A Call For Reducing The Various Energy Prices In GCC States A report issued by Emirates Industrial Bank calls for necessary coordination among GCC states for a necessary integration flooring in energy and reducing the various energy prices by reviewing the policy of pricing so as to achieve equal opportunities

new dimensions after the GCC states acceded to the World Trade Organization. Various customs barriers were removed among the member states in the World Organization which help increase the competitive advantages enjoyed by the Gulf prod-

the past decades as the investors exerted great efforts through the official entities, conferences, and forums to avail of this advantage for supporting the converting industries sector which suffers from the investors' decline thanks to the costly and

Free energy prices in the GCC states jeopardize the structure of the GCC Common Market to the investors and fair competition in the Gulf common market and for opening new horizons for the GCC products in the international markets. The Bank considers that free energy prices and gradual increases would make the GCC states lose one of the important relative characteristics which contributed over years to the increasing growth rates in the industrial sector which ranks as second after the oil sector in the gross domestic product. He emphasized that free energy prices would jeopardize the structure of the GCC common market thanks to the various prices prevalent in the GCC states. He says 'the GCC states has relied for a long period of years in building their production sectors, particularly the industrial sector upon relatively cheap energy sources which during the past decades attracted domestic and foreign capitals and upgraded the competitive abilities of the GCC products in various markets around the world. He also added that this inclination has gained

ucts. Further, the GCC states made free trade agreements which gave additional advantages to the Gulf exports. He says 'these factors led to a growth in the converting industries sector and helped increase its contribution to the gross domestic product; particularly because the GCC states provided additional facilities and services to attract foreign capitals which positively the structural gross domestic products to shift the gravity centre from the oil sector to non-oil sectors. In its report, the Bank states that if the GCC states free energy prices, they will lose their relative advantage even if this direction is urged by their attempts to develop alternative and renewed energy sources which help diversify domestic energy resources and reduce the prices including the electric energy that currently depends upon oil and natural gas. According to the report, the energy issue constitutes a significant issue to the industrial investors in the GCC states over

long-term industrial production. At the GCC level, the report states 'such step will practically jeopardize the GCC common markets because of the various prices in energy prices among the GCC states and will cause various difficulties against the GCC exports in the international markets. The report also states 'in the time where the prices considerably vary (sometimes 100%) in gasoline the prices much more exceed the said rate in diesel and electricity which are basic sources of energy for the industrial production, commercial services, and transport. Because the customs barriers among the GCC states were removed after the establishment of the Common Gulf Market in 2008, such differences in the energy prices will reflect upon the goods produced in the six GCC states. Further, this will adversely affect the prices of products in the six states and will not only affect new industries but also the existent industries and asserts the varied prices and lead to similarly various rates of inflation and standards of living to the extent that

Coordination should be made for a minimal integration in various fields 20

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REPORT

the common market requirements and financial and monetary policies will be inconsistent with each other in view of making a Gulf bloc for which such policies should be consistent with each other as the success of the Gulf common market which faces various challenges in the present time. As regards of linking the free energy prices to the requirements of the membership of the GCC in the World Trade Organization, the report states that such inclination would contribute to opening new horizons as to the increase of Gulf products by using the relative advan-

tion should exist to make a minimal integration in various fields,

trial sector by also for various economic sectors.

The prices of energy and raw materials are greatly various in the countries of one bloc or EU countries. tages they enjoy in the energy field; however, the freeing of energy prices will help lose such advantages which are a cornerstone for the economic and industrial development, particularly the GCC states have various advantages such as the cheap manpower and raw materials. The report states that the prices of energy and raw materials are near each other in the countries of one bloc or common market such as the European Market countries in order to secure equal opportunities and coordination among the EU member states and to give equal opportunities to the investors in the member states; however, this is not available in the Gulf bloc thanks to the various prices of energy and services. The report states that coordina-

particularly in energy and to reduce the changes in the prices among the GCC states by reviewing the high prices and to give equal opportunities to the investors. The report states that the economic and industrial development depends upon solving the problems of various prices which keeps in line with the good services rendered by the states and which help increase the political infrastructure it set up over the past years and will provide sold and appropriate base for attracting capitals not only for the indusIssue No. 127 - 20th year - 2010

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PANORAMA

United Arab Emirates Ranks 6th In The World In Quality Infrastructures As Stated By The Global Competitiveness Report The United Arab Emirates ranked as 6th at the international level in the good infrastructures and classified 23rd at international level in competitiveness among 133 countries stated by the Global Competitiveness Report 2009 – 2010 which was issued by the World Economic Forum. The United Arab Emirates headed in the economic competitiveness countries such as Malaysia, Ireland, Italy, Brazil, Russia, India, and China. The United Arab Emirates was alone classified among economies led by creativity. This well advanced classification reflects the efforts exerted by the UAE Government and Ministry of Public Works in supply developing infrastructures which enhance the position of the UAE as an economic international and regional centre as infrastructure is an essential element for measuring the economic competitiveness for a country. The report states that the United Arab Emirates 22

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has a developing infrastructure including public structures, roads, railways, ports, air carriage, and electricity. H.E Sheikh Hamdan Bin Mubarak Al Nahyan, Minister of Public Works, says in a press release 'the advanced ranking the UAE occupies in the infrastructure strongly urges the Ministry and its teams to continue enhancing the performance of its role and its strategic and developmental projects.' HE Sheikh Hamdan Bin Mubarak Al Nahyan says 'under the directives our leadership of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates, and His Highness Sheikh Mohamed Bin Rashid Al

Makatoum, Vice President, Prime Minister, and Ruler of Dubai, the Minsitry will perform development projects in the rural areas including the infrastructures for education, health, security, and culture and provision of houses for nationals, maintenance of present houses, and construction of inland roads and highways for linking the cities with each other. HE also says 'the


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tinuously provides developing infrastructures to enhance the economic environment in the State and safe transport for the nationals and residents. This is remarkably reflected in the "UAE vision of 2021' which states the necesThe UAE Government con- sity of building a high produc-

Ministry is dedicated to use all available resources so as to provide stability, security, and welfare for all nationals and residents of the UAE by contributing to good quality infrastructures.

tive economy to which the infrastructure of information and telecommunication are enhanced by linking the companies with each other so that they are given competitiveness in dealing and reaction with the world.

AED 2.6 Billion The Net Foreign Investment In The UAE Financial Markets The Securities and Commodities Authority announced that the net foreign investment in the UAE financial markets was AED 2.6 billions within the last year. In a recent report the Authority states that the financial markets witnessed remarkable transactions by the foreign investors in 2009 as the total foreign purchases were in the sum of AED 95.63 billions and sales in the sum of AED 92.99 billions. The foreign investment in Abu Dhabi Financial Market in the past year amounted AED 1.2 billion as the total purchases were in the sum of AED 25.71 billions and sales in the sum of AED 24.48 billions whereas

the net foreign investment in Dubai Financial Market amounted AED 1.4 billion whereas the purchases amounted AED 69.9 billions and sales in the sum of AED 68.5 billions. The net investment in the

UAE financial markets in 2008 amounted AED 11.4 billions, in the sum of AED 5.5 billions in Abu Dhabi and AED 6.02 billions in Dubai, as stated by the report.

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The United Arab Emirates Ranks 11th In Attracting Direct Foreign Investments The United Arab Emirates ranked 11th in attracting direct foreign investments at the international level and in the Arab area out of 25 destinations attracting direct foreign investments in 2010 according to the study prepared by A T Kerny for Researches. The study emphasizes that the United Arab Emirates occupied the said rank in the Middle East Region and emerging markets thanks to the confidence of investors that the UAE market will perform

well during the next period. Mr. Derek Bukhta, Chief Executive of A T Kerny Middle East, says 'this ranking reflects the awareness of the business community of the developing importance of the Middle East and North Africa which have more than 500 consumers. The classification emphasizes the UAE position as an attracting hub for all investments in the Region. The study covers for the first time Egypt and Saudi Arabia, the largest consumer markets in the

Region, which reflects the investors' concern. China ranked as first for the second consecutive time of the study started in 2007 followed by the United States and India in the 3rd rank, Brazil in the 4th rank, Germany, Australia, Mexico, Canada, and Britain from the 6th to 10th ranks respectively. A T Kerny study includes heads of international companies which is worth more than $2 trillions per year as its first copy was launched in 1998.

More Than 31 Million Tons The Gulf Production Of The Main Plastic Materials In 2015 Gulf Petrochemical and Chemical Association expects that the main plastic materials (polyethylene and polypropylene) in the Gulf will be increased to more than 31 million tons by 2015. The polyethylene will be increased from 10.7 million tons in 2009 to 21.5 million tons by 2015. This is more than 100%. Likewise, the polypropylene will rise from 4.8 million tons in 2009 24

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to 9.5 million tons in 2015, a Further, the share of GCC states of polypropylene will rise at the rate of 98%. rise from 9% in 2008 to 13% Dr. Abdul Wahab Al in 2015, thus it will ranks as Saadoun, Secretary General third at the international level of Gulf Petrochemical and behind Asia which share will Chemical Association, says rise to 23% and China to 17% 'due to these huge expan- of the international producsions the share of Gulf states tion. The GCC states will of polyethylene in the interna- exceed North America and tional production rise from Europe in the polyethylene 13% in 2008 to 19% in 2015. production whereas the proThus the Gulf Region will be duction of both regions will a key player of this industry. reduce in the polypropylene


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tons out of which 19% is the Iran are a gravity centre for production of plastics and the petrochemical industry He says 'Gulf states made supplemental industries. and indicated that the industry involves huge amounts a shift in the plastic production and valued added It is worth noting that GCC of capitals. There are statisindustries as the production states alone will produce tics that Saudi Arabia alone of polyethylene and 20% of the international pro- invested about $50 billion in polypropylene represents duction of polyethylene and this sector which represents 38% to 40% of the total 13% to 15% of polypropy- 10% of its gross domestic petrochemical production lene. product. and the petrochemical prodHe emphasizes that the ucts amount to 64 million Arabian Gulf Region and

production.

Kuwait Ranks As 1st In Exporting Investments To The Arab Countries Kuwait ranked as 1st in exporting investments to the Arab countries in 2009 according to a list issued by the Arab Corporation for Investments and Exports. The corporation states in a release in the occasion of

issuing the investment climate report in the Arab countries in 2009. The statements in the report are derived from official Arab entities and international sources state that Kuwaiti investments in 8

Arab countries amount to $6.1 billion at the rate of 31.9% of the inter Arab investments. The report states that it is based on statements issued by the United Arab Issue No. 127 - 20th year - 2010

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were attracted in 2008. The report attributes the decline in the cash flows to the Arab countries to the effects of the international financial and economic crisis which affect the direct foreign investments. It is worth noting that all international economic blocs have witnessed declines in 2009 as the Arab region recorded the least decline comparing to the other economic groups.

Emirates, Jordan, Tunisia, Libya, Egypt, Morocco, Yemen, and Saudi Arabia. The Kuwaiti investments are concentrated in seven countries where the sum of $4.3 billions in Saudi Arabia and $1.2 in the United Arab Emirates. The United Arab Emirates ranks as 2nd in investments in the sum of $5.1 billions at the rate of 26.3% of the total inter Arab investments which were in Saudi Arabia. Bahrain ranks as 3rd as the inter Arab investments amount $1.7 billions at the rate of 7.8% of the total 26

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investments most of which are in Saudi Arabia. Qatar ranks as 4th as its investments originated from it are in the sum of $1.2 billions and its share of the total investments are at the rate of 6.5% and are in five Arab countries; in the United Arab Emirates and Jordan in the sum of $1.1 billions at the rate of 5.8% to six Arab countries.

The report states that such good performance by the Arab states comparing to the other parts of the world is attributed to internal attracting factors including the remarkable improvement in the investment climate in various Arab states, particularly the policies as to investment including statutes, particularly those intended to reduce tax rates, customs duties, increase to incentives and various types of advantages and bilateral and group agreements.

The report states 18 Arab countries in the same year as attracted investments in the sum of $80.7 comparThe report indicates the ing to $95 billion which continuous reformatory


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efforts by facilitating administrative measures and shrinking their number and cost and the time taken for performing them with broadening the application of e-government and the increase in the number of comprehensive service centers and the abidance of a number of Arab states by converting to the privatization and their promotional efforts to attach investments including business opportunities and acceleration and development of industrial cities and new free zones and the increase and diversification of external and internal promotions apart from the improvement of quality and accurate economic statistics.

Qatar ranked as 2nd in the sum of $8.7 billions according to the forecasts of the International Monetary Fund, the United Arab Emirates as 3rd in the sum $8.6 billions, Egypt in the sum of $6.7 billions, Lebanon in the sum of $4.8, Sudan in the sixth rank in the sum of $2.9 billions, Morocco in the sum of $2.5 billion, and Jordan in the 8th rank in the sum of $2.4 billions.

The report indicates the standard of sectors as investments were flowed to the Arab countries in the sum of 56.4 for only seven countries; the United Arab Emirates, Egypt, Jordan, Tunisia, Libya, Yemen, and Saudi Arabia. The statements indicate that The report states accord- the industrial sector took ing to these preliminary 27.7% of the total incoming estimates the geographic investments. distribution of direct foreign investments to the Arab The report also states countries varied as Saudi that the service sector took Arabia ranked as 1st of the 36.7% of the total and then countries hosting direct for- the agriculture sector at the eign investments in 2009 in rate of 0.21% of the aggrethe sum of $35.5 billions at gate as the agriculture the rate of 44% of the total share is less because the Arab countries. statements of direct investment are not available. The

report states that if the foreign investments of 2008 and 2009 to the Arab countries are compared, there are available statements from seven countries which recorded rises in the investment flow; Qatar, Lebanon, Sudan, Algeria, Iraq, Yemen, and Kuwait whereas the foreign investments to Saudi Arabia, Egypt, United Arab Emirates, Morocco, Jordan, Tunisia, Syria, Libya, Bahrain, Djibouti, and Mauritania were declined in the same period. Arab Investment and Exports Corporation is a regional Arab establishment having its independent legal status and was established in 1974 under a multiple-party agreement among the Arab countries including all Arab countries and Arab and international organization excluding the Republic of Comers Islands. The corporation aims at encouraging investments in the Arab countries and Arab exports to various countries around the world.

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A Regional Conference On The Arab Financial Flows The Regional Conference on the Arab Financial Flows emphasized after the repercussions of the international financial crisis the necessity for enhancing the economic and financial integration among the Arab countries so as to help increase the inter Arab financial flows and size of investments among these countries so as to support their developmental projects. At its conclusion in Abu Dhabi, the conference claims more economic reformation to improve the investment climate and increase the competitiveness of the Arab economies in their dealings with the world. The conference which is organized by the Arab Monetary fund in cooperation with the International Bank and participation of a number of senior officers in the

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currency in the international monetary reserves amounts to 62.1% comparing to 27.4% for Euro and 4.3% for the Sterling Pound, 3% for Yen and 3.2% for the other currencies. The unified European currency suffers from difficulties Dr. Fouad Shaker, thanks to the European Secretary General, of Arab debts. Banks Association says 'these banks need to speciThe participants indicatfy the role it will play in a ed that the GCC states multi-pole world as they have attained some criteought to play a greater ria necessary for the creinvestment role in financing ation of a unified Gulf curthe development opera- rency; however, they still tions in the Arab area. need to attain more integration and coordination The participants of the in the financial policies conference asserted in which help the achievereply to the proposals for ment of monetary unity's having a new international success and protect it currency in replacement from external shocks. of the US dollar in a multi- They asserted that the party world after the finan- current link between the cial crisis that the US dol- Gulf currencies and US lar is still the dominating dollar is the best available currency as to the interna- option because oil is tional financial flows and priced in US dollar. the rate of the American

ministries of finance, central bank, Arab financial institutions, and an elite of financial experts and bankers emphasizes the role played by the Arab area as to the financial and investment flows at the international level.


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In Brief Korean Imports From The Middle East Rise To $34 Billions

 The non-oil trade between the United Arab Emirates and France in 2009 kept its level of 2008 to amount to AED 14.8 billions

The South Korean imports from the Middle Eastern countries rose by 51.7% in the first five months of the present year comparing to the same period in 2009. South Korea purchased more of oil and gas for its industries. The Ministry of Trade's Office says 'South Korea imported products from the Middle Eastern countries in the sum of $34 billions up to May of the current year whereas its imports increased by the rate of 17.4% to amount the sum of $10.7 billion. As such, the trade deficit was in the sum of $23.3 billion during the said period. During the same period Korea recorded an actual trade surplus with most of the world and used the funds to purchase energy resources from the Middle East. During the first five months of the current year the consolidated trade surplus in favour of Korea with South America, Europe, and Africa the sum of $9.1 billions and has been settled with the Asian countries in the sum of $19.8 billions with the Asian countries and $8.2 billions with Latin American countries. Korea recorded a trade deficit with Japan in the sum of $14.9 billions.

(3.3 billion Euros) albeit the decline in the world trade due to the international financial

crises,

according

to

the

statements released by the ministry of Foreign Trade.  The trade exchange of non-oil products between the United Arab Emirates and South Korea increased by 4.1% in the last year more than 2008 and at the rate of 61% more than 2007. Thus the amount of increase is $4.7 billions.  The international firms anticipate tht the Arab region will need 1,710 new aircrafts in 2009-2028. The cost will be $300 billions of 29,000 aircrafts needed by all fleets in the world at the cost of $3.2 trillions.  The Asian Development bank expects a growth in the developing Asian countries at the rate of 7.5% in 2010 and 7.3% in 2011 from 5.2% in 2009.  The American Ministry of Treasury said that the international reserves of forien money jumped from $ 8.1 trillions by 2009 as it compensated the losses incurred during the worst depression period. Issue No. 127 - 20th year - 2010

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