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Debt settlement fund launched
Khaleej Times
ABU DHABI —
The Ministry of Presidential Affairs on Tuesday officially launched an
initiative to help settle bank debts of UAE nationals, which was
announced by the President, His Highness Shaikh Khalifa bin Zayed Al
Nahyan, on the 40th National Day. The Dh10 billion-fund, called
‘Citizens’ Debt Settlement Fund’, was launched at a simple ceremony at
the Presidential Court in Capital. The fund signed Memorandum of
Understandings (MoUs) with one international and seven local banks under
which the signatory banks will waive off 50 per cent of the UAE
nationals’ loans. “The fund is a non-profit making organisation and has
been established to address the issues pertaining to UAE nationals’ bank
debts. In the initial stage, the fund with the help of the signatory
banks will help settle debts below a million dirham,” said Ahmed Jumma Al
Za’abi, Minister of State for Presidential Affairs, who is also the
chairman of the fund committee. Mohammed Abdullah Al Rumaithi,
Undersecretary for Financial and Purchasing Affairs at the Ministry of
Presidential Affairs, signed the MoUs with CEOs of National Bank of Abu
Dhabi, the First Gulf Bank, Abu Dhabi Islamic Bank, Abu Dhabi Commercial
Bank, RAK Bank, Union National Bank, Mashreq Bank and Standard Chartered
Bank. The signing ceremony was also attended by Khalil Mohammed Sharif
Fauladi, Central Bank Board Chairman, who assured the apex bank’s full
support to the newly established fund.
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Gulf News
Dubai: The absence of Dubai
government guarantees in support of the Dubai Group restructuring is
credit positive for Dubai's sovereign credit worthiness, Bank of America
Merrill Lynch (BofA) said in a report yesterday. "While decreasing
contingent liabilities is positive for sovereign creditworthiness and CDS
[credit default swaps], the immediate impact may be trumped by broader
Dubai Inc restructurings and sentiment," Jean-Michel Saliba, a BofA
economist wrote in a note. However, he added that the decision was
broadly shrugged off by the market. The Drydocks example This
announcement leaves Dubai Group to fend for itself with its creditors,
who have been calling for $2 billion (Dh7.34 billion) in government
support and a backstop guarantee of $1.8 billion. Dubai Group is the
second firm after Dubai Drydocks to have to negotiate a restructuring
deal with no government support. Dubai Group is seeking to restructure
$10 billion ($6 billion in bank loans and $4 billion in inter-company
loans, likely in part owed to the Dubai Financial Support Fund), though
only $1.8 billion of syndicated loans appear in publicly disclosed data.
Dubai Group is now reported to be offering maturity extensions of five
years to secured lenders (owed $3.2 billion) and 8-10 years to partially
secured and unsecured lenders (owed $2.8 billion). Interest payments are
expected to be resumed once an agreement is reached with banks. Dubai
Group appointed eight banks to represent creditors in two committees in
2011 to help with the restructuring.
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Dubai’s key sectors show strong growth in 2011
Khaleej Times
DUBAI — Key
economic sectors and economic activity in Dubai remained stable and
growing in 2011, with the Department of Economic Development, or DED,
issuing 14,360 business licences during the year. The professional
services sector, at seven per cent, accounted for the most number of
licences in 2011 followed by the tourism sector at five per cent. “The
strong economic performance in Dubai, as demonstrated by the high number
of business licences issued, was led by the visionary policies of the
government. It also shows the high level of investor confidence in Dubai,
chiefly on account of its leading economic role in the region and the
world. One of DED’s strategic objectives is to create a suitable
environment that retains Dubai as a destination of choice for investors,”
said Sami Al Qamzi, Director General of DED. “We always seek to attract
investment and boost economic activity in Dubai by providing value-added
services to investors and the business community,” added Al Qamzi. The
top ten business activities in Dubai accounted for 12,527 — 24.8 per cent
— of the 50,589 activities for which licences were issued in 2011,
compared to a share of 11,733 in a total of 46,287 licensed activities in
2010. ‘General trade’ led the list of the top 10 licenced activities in
the commercial category with 1,799 licences issued in 2011, compared to
1,543 licences in 2010. Dyes and paints; carpentry and
flooring and tiling were the other business activities that
showed significant growth last year.
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Khaleej Times
DUBAI — Dubai
Municipality
on Wednesday
said it has achieved a Dh2.1 billion surplus in 2011 budget, mainly on
rationalisation of expenses in operational activities. The civic body
implemented a number of programmes and initiatives in rationalisation of
expenditures in its balance sheet of 2011, said Mohammed Abdul Karim
Julfar, Assistant Director General of Dubai Municipality. Julfar said
that the municipality has applied nine programmes for the rationalisation
of expenses in operational activities, which could save Dh245 million and
in projects saving Dh120 million. It also applied four programmes in the
field of income developments saving Dh328 million. The overall benefits
are totalling Dh693 million, which reflected on the financial performance
of the civic body that achieved the surplus of Dh2.1 billion in the
budget of 2011, he added. “The role of Finance Department and other
sectors is very big in developing a rational budget studying the actual
needs of organisational units, exploiting human and material resources in
the implementation of programmes and projects without resorting to
outsourcing. They could also expand partnerships with the private sector
in the implementation of investment projects and sponsoring community
events. In addition, it could reduce the operational cost of the stock
and the revival of idle stock with a world record,” Julfar said.
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Gulf News
DUBAI: UAE
customers are paying the highest credit card rates in the Gulf. A survey
by XPRESS found that banks charge an average annual percentage rate (APR)
of between 29.88 per cent (2.49 per cent monthly) and 35.88 per cent
(2.99 per cent monthly) on credit cards — among the highest in the Gulf.
By comparison, Saudi banks charge a monthly rate of 1.6 to 2 per cent;
Qatar and Kuwait banks charge 1.5 per cent, while Bahraini banks charge
1.74 to 1.83 per cent, according to industry reports. Concerned by the
high interest rates, the UAE Central Bank last week announced that credit
card rates will be capped at 18 per cent per annum, or 1.5 per cent per
month, and stipulated that banks would no longer be able to raise fees
after issuing a card. The move, expected to be made official soon, would
give long sought after relief to card-holders in the UAE. Experts say
that with the UAE's credit culture still in its infancy, marked by a
unique expat-majority demography, many card- holders unwittingly edge
towards a debt trap through misuse or paying just the bare minimum — five
to 10 per cent of total outstanding.
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Gulf News
Dubai: The
Department of Economic Development (DED) issued 14,360 business licences
during 2011, DED announced yesterday, arguing that the result reflects
stability and growth across key economic sectors and business activities
in Dubai. The professional services sector, at seven per cent, accounted
for the biggest number of licences, followed by the tourism sector at
five per cent. Investor confidence "Dubai's strong economic
performance is demonstrated by the high number of business licences
issued. It also shows the high level of investor confidence in
Dubai," said Sami Al Qamzi, Director General of DED. But Abdul Hamid
Radwan, a UAE-based Economist, told Gulf News yesterday that while the
increase in licences was positive, all aspects should be looked at.
"The big number of new licences is a positive sign of the growth of
the business sectors in Dubai, [but] this number should be taken in
comparison with the number of licences that weren cancelled in the same
period."
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