UAE & SENEGAL AIM TO BOOST TRADE TIES

Senegalese President Abdoulaye Wade on Tuesday received UAE Foreign Minister Shaikh Abdullah Bin Zayed Al Nahyan, who arrived in Senegal earlier as part of his tour of a number of African countries.

During the meeting, the two reviewed bilateral relations between the countries and ways to boost them in the areas of investment, economy and trade. Shaikh Abdullah conveyed to the Senegalese president greetings from President His Highness Shaikh Khalifa Bin Zayed Al Nahyan and wishes for more progress and prosperity for Senegal.
Shaikh Abdullah reaffirmed the UAE's keen interest in boosting relations with African countries, including Senegal, particularly in the areas of economy and trade, through active trade exchange, investment and boosting of ties between the various business sectors of the two countries.

The UAE minister praised Wade for his great efforts in pushing forward the wheels of development in Senegal in various areas. Wade, for his part, warmly welcomed Shaikh Abdullah and his entourage and expressed his wish that bilateral relations between the two countries would develop further in their mutual interest. The Senegalese president reviewed with Shaikh Abdullah the latest developments in his country, including its economic indices, political stability and development drive.

MARRIOT INTERNATIONAL SEEKS EXPANSION TO AFRICA

Marriott Global Sales in the Middle East & Africa has recently launched a unique Marriott Sales Revolution Initiative across the region aimed at countering the effects of worldwide economic downturn.

The main objective of the Sales Revolution Initiative, unveiled by Mr Samir Daqqaq - Vice President, Global Sales, Middle East and Africa at Marriott International, is to drum-up business in the region during these challenging economic times.

The Sales Revolution Initiative involves Marriott International hotels across the Middle East and Africa and the Marriott Global Sales network - including UAE, Saudi Arabia, Kuwait, Qatar, Bahrain, Jordan, Syria, Lebanon, Egypt, Turkey, Tunisia, Algeria, Morocco, Nigeria, Uganda, Kenya and South Africa.

As part of the initiative, Sales Blitzes are organized every Tuesday to customers in each city. Dressed in special Marriott Sales Revolution outfits, participants highlight the latest promotions and packages across the various markets.

"The Marriott Sales Revolution Initiative is aimed at reinforcing our presence in the region. We wish to strengthen our relationships with our customers and maximize our sales efforts at all Marriott International branded hotels across the globe. This initiative, which has received a very enthusiastic response, reflects Marriott's proactive strategy to overcome the economic challenges. The Sales Revolution truly epitomizes the innovative way of doing business at Marriott, while adapting to change," said Samir Daqqaq.

The initiative comes close on the heels of the Marriott Senior Management Sales Mission in the Middle East and Africa, targeted at bringing Marriott senior management and hotels closer to the customers in order to demonstrate Marriott's appreciation for their support.

AIRLINES FINDING NEW MARKETS

Kenya Airways is among three airlines hunting for new markets to cushion themselves from the effects of the economic slowdown as others go for spending cutbacks in the face of shrinking passenger numbers and rising costs of operation.

The national carrier, together with Emirates, Qatar Airways and Etihad, is expanding into new route networks hoping for a stronger market presence in an industry that has been hit by high oil prices and the onset of the global credit and financial crisis.

Kenya Airways, which only last month opened offices in Botswana and is eyeing Kisangani in the Democratic Republic of Congo and Brazaville, will soon be flying to Namibia and Botswana. 

“We are determined to expand our network despite the ongoing issues,” Mr Evanson Mwaniki, the chairman of the airline, which in January issued a profit warning, told tour operators from Africa recently.

Dubai-based Emirates Airline is also looking at expansion in the African market and has announced plans for two new routes — to Luanda beginning in August and Durban from October. It is looking at tapping into the oil and mineral-rich business that is driving Angola’s economy and has identified the country as a major growth point for its cargo by providing over 12 tonnes of belly space.

“In the past year we have seen strong growth in Africa and now with the new routes we expect a lot more,” the airline’s president, Mr Tim Clark, said in a statement, noting that they had had a 17 per cent growth in the region and expected it to continue this year. 

Doha-based airline, Qatar Airways, has its sights on Australia, India, Europe and the US  and has announced a new service to Houston by the end of this month in addition to increasing frequencies to some of its existing routes. Chief executive Akbar Al Baker says they are continually looking for new opportunities around the world and are ready to shift capacity according to market conditions.

“The airline’s robust expansion is continuing undeterred by the current economic climate,” he said in a recent statement announcing the new routes. 

Abu Dhabi-based carrier Etihad has on the other hand, signed an interline cargo agreement with local airline Astral as it expands its cargo business in various regions. The expansion strategies of these Middle East carriers has seen them become major clients to aircraft manufacturers due to their large orders to facilitate their plans. Etihad, which was only launched in 2003, has ordered for 100 Airbus and Boeing aircraft, while Emirates is on course to being the world’s largest Airbus A380 operator with 58 orders. Qatar is expected to expand its fleet to 110 planes by 2013, up from 68.

The expansion plans by these airlines is setting up new global hubs in the Middle East to rival the traditional ones in Europe mainly Heathrow, Schiphol, Charles de Gaulle and Frankfurt. The expansion by these airlines is part of a long-term strategy to build a strong portfolio of routes and strengthen their hubs. Though Africa is a small market in the aviation sector, it has shown resilience during this hard economic times having been the only region reporting growth in February according to International Air Transport Association’s (IATA) statistics.

Africa grew by 2.8 per cent compared to all other markets, which reported reduced performance with the pacific market recording the highest fall, 27 per cent. Total passenger numbers were down 9.6 per cent in February and the downward trend is expected to continue for the rest of this year.

Meanwhile,  airlines worldwide filled 21 per cent fewer executive class seats in February than the same month a year ago as fewer people took long-haul business trips, industry group IATA said on Thursday. The data suggest more trouble ahead for airlines, which have seen numbers of coveted premium class passengers shrink along with the economic downturn that has reduced demand for corporate travel. Flights within Central America, between Africa and the Far East, and across the Pacific had the most vacant premium seats, according to the International Air Transport Association, which looks only at cross-border flights. “Average travel distances are now getting shorter,” it said in its latest snapshot of the top-tier air segment.

IATA, which represents 230 carriers including British Airways, Cathay Pacific, United Airlines and Emirates, has said the airline industry would lose $2.5 billion in 2009 as a result of lower demand.

The industry lost $8.5 billion in 2008, pinched by high oil prices and the onset of the global credit and financial crisis.

IATA estimated that premium revenues fell about 30 percent in February as a result of the decline in high-end passenger traffic and aggressive fare reductions by airlines worldwide.

“This revenue stream is key for the profitability of most network airlines and so this reversal will be putting significant pressure on first quarter financial performance,” it said.

DUBAI: THE "BUSINESS" POWERHOUSE IN THE REGION



While the global outlook has been grim in terms of the real estate industry, every cloud has a silver lining and nowhere is the lining more silver than in Dubai. Despite being a small city, Dubai functions as a powerhouse, especially within the spheres of business, trade, real estate and construction.
Obtaining home financing has been one of the biggest challenges in Dubai this year so far. With property prices plummeting in recent weeks, many people were hoping to jump on the property wagon but huge deposit requirements and a distinct lack of mortgages are preventing buying activity.


A recent report from Moody's, carrying the snappy title Arabian Gulf Real Estate Market Industry Outlook, notes that "a nascent mortgage industry cannot fully compensate for a funding shortfall from other sources."

The other reason that people are not buying at the moment, especially off-plan, is the well-used reason of negative sentiment. Ahmad Shaikhani, managing director of Memon Investments, agrees.

"With the ongoing financial crisis, the UAE's real estate sector will be dealing with a lot of challenges hurled its way. At present, we believe the market is facing three primary challenges - falling property prices, the lack of mortgage availability and a serious confidence crunch within the market," Shaikhani told GNews. Would it help buying activity if mortgage criteria were relaxed and people weren't asked to come up with unrealistic deposits?

"Looking at how the sector has managed to cope with the financial crisis, it would be an essential and strategic move to revive both the construction and real estate markets," Shaikani said. The silver lining is that, despite such challenges and many negative media reports, especially from the international press, Dubai is still tipped to emerge from the global crisis within the next 12 months.

Due to the drop in commodity prices and construction costs, the sector is set to continue to expand. Developers, learning their lessons the hard way, are now more focused on delivering projects, rather than counting the dirhams rolling in.

The $10 billion bond initiative is expected to ease financial burdens and help propel the economy. Global real estate service Jones Lang LaSalle have said that while 2009 is a year of correction, 2010 will be a stabilising year, followed by market recovery in 2011.

EMIRATES AIRLINE TO START ANGOLA FLIGHTS

Africa's international links are to receive a significant lift with news that Emirates is to start flights to Angola, its 17th African destination. The Dubai - Luanda service, which begins August 2nd, will operate three times a week - on a Tuesday, Thursday and Sunday.


This is the second new route into Africa to be announced by Emirates this year. Flights to Durban in South Africa start October 1st. The thrice weekly Luanda service allows Angola to further embrace international trade by being brought into the six continent-wide Emirates' network. An Airbus A330-200 will serve the route, which will help support the nation's oil-led boom, the emerging tourism market and the thousands of migrant workers, many of whom are from China.

Tim Clark, President, Emirates Airline, said: "This new Luanda flight provides enormous potential to develop air travel into Angola, alongside the assistance we can provide for international trade through Emirates SkyCargo. In the past year, we have seen strong growth in Africa of 17 per cent. Now, with Luanda starting in August and Durban starting later in the year, this is going to be another very exciting year in this largely untapped continent." On Tuesdays, Thursdays and Sundays, EK 791 will depart Dubai at 1050hrs, arriving at 4 de Fevereiro International Airport in Angola at 1550hrs. EK792 departs Luanda on Tuesdays, Thursdays and Sundays at 1800, touching down in Dubai at 0500 the following day. The A330-200 to be deployed on the route offers 237-seats across Economy, Business and First Class accommodation.

ISLAMIC BANKS IN KENYA RECORD INCREASE IN NET INCOMES

Islamic banks operating in Kenya recorded losses in their first year of operations as operating expenses and heavy set-up costs took a heavy toll on earnings. Gulf African Bank recorded a loss of Sh281 million last year while First Community Bank (FCB) posted a loss of Sh307 million within the same period despite both players recording increases in net income during the year. This is a stark contrast to the performance of most of their peers in the banking scene who have so far returned double and triple growth in profits on increased lending to households and businesses.FCB recorded a total operating income of Sh17 million while Gulf African Bank said it made Sh248 million before expenses tied to operations such as staff costs and rental charges ate into earnings.



Najmul Hassan, Gulf African Bank’s chief executive officer, told Business Daily that in Gulf African Bank’s case, a huge depreciation on the firm’s information technology system and other operating expenses were the drivers behind the bank’s loss.Mr Hassan is however confident that given the Gulf African Bank’s growth rate, the bank would break even by July this year.

BUSINESS AS USUAL IN DUBAI

Dubai, as many would want to see it surviving the Global Market fever is still enjoying brisk business and everything seems as usual even in the current of world economical downturn, thanks to the Exports/Re-Exports that mainly favours African Markets and beyond, Economist say

It has been estimated Exports and re-exports enjoyed a 42 per cent leap in 2008, according to the Dubai Chamber of Commerce and Industry. Despite the financial situation in the rest of the world, goods exported and re-exported from Dubai hit Dh240 billion last year.

The rate at which businessmen from Africa is the same as it were when there was a boom and everything seems stable. The Government of Dubai has lessened the visas fro African Business people so that they can tap into Dubai Markets which is just a stone throw from Africa.

The Dubai Chamber also emerged as the biggest issuer of certificates of origin in the world with an 11 per cent increase since 2007.Around 559,652 certificates of origin were issued in 2007. This figure rose to 624,066 in 2008.

Hamad Buamim, Dubai Chamber director general, said the figures represent the resolve of Dubai's business community to face the "onslaught" of the global financial crisis and show the optimism and determination needed to further developer the emirate's economy.

"The 2008 figures directly reflect the magnitude of Dubai Chamber efforts in supporting the growth of business in the emirate and the promotion of Dubai as a global trading hub," Buamim added.

In line with Dubai's plans to become the best port in the Middle East and Asia, its reputation as a vital re-export hub has become stronger judging by these robust figures. The results come after a successful year for the Dubai Chamber which saw an increase in efforts to boost trade and trade relations.

Dubai saw almost a 50 per cent increase in imports and exports and almost a 100 per cent rise in re-exports within one year, officials said recently. Second quarter 2008 imports totalled Dh166 billion, a 54 per cent increase from second quarter 2007, Mahmoud Al Bastaki, director of Dubai Trade, an online trading portal, told Gulf News earlier.

Export figures surged to Dh46 billion, a 48 per cent increase from last year's figures at this time, he said.

Local companies' outstanding performances alongside the country's diversified sources of income are mitigating the effect of the global financial crisis on the national economy, Abdullah Al Turaifi, chief executive officer of the UAE Securities and Commodities Authority (SCA) said here yesterday during a conference.

Al Turaifi added: "SCA is working hard to both cope with effects of the financial crisis and to develop a robust financial services industry that can cope with crises as they happen."
The impact of the global financial crisis in the Gulf Cooperation Council (GCC) is "more subdued" than other parts of the world, but falling prices of oil - which is a major source of revenue for GCC economies - are a cause of concern, a senior official of the International Monetary Fund (IMF) said.

Axel Bertuch-Samuels, Deputy Director in IMF's Monetary and Capital Markets Department, said: "The financial contagion may have a moderate economic impact on the region, if the oil prices decline further."

Meanwhile, re-exports enjoyed an exponential increase of 91 per cent over last year second quarter figures, reaching Dh44 billion, almost equal to that of exports, Al Bastaki said. The UAE was also recently voted the easiest country to do trade in the Middle East region, according to the World Bank report, Doing Business in the Arab World 2009.

The Dubai Chamber signed ten Memoranda of Understanding (MoU) in 2008 with international and local bodies, including the Hamburg Chamber of Commerce. In Hamburg, the Dubai Chamber said that the full impact of the financial crisis had not yet been felt in Dubai.

"The fact is that Dubai, while not immune to the events taking place in the global economy, has not yet felt the true impact, and (this) is reflected in that trade is up 40 per cent on last year," Buamim said at the meeting in December.

International trade was good in 2008 with trade between the Netherlands and Dubai reaching $2.7 billion in 2008, according to the Dutch consul general in Dubai. Trade between the UAE and Hamburg has doubled since 2005 and now stands at around 140 million euros (Dh716.4 million). The Dubai Chamber hosted 201 trade delegations last year, including the President of the Phillippines, the prime minister of the Czech Republic, mayors of Houston and Lyon and other commercial consuls from its trading partner countries.