Emirates and its varying business conspiracies

Economy of UAE has been in the amendment stage from 2009, as a result of global economic downturn. One of the key sectors affected was the real estate, even though the overall business was in a better position. Keeping real estate within norms, legislation was made active. This was done before the amendments. Real Estate Regulatory Authority has been set up to prior to the amendments, but the tapering itself was not executed recently.

It is to be noted that there is an indirect advantage occurred to the economy from the recession. Living in Dubai for the middle class and lower middle class is really a burden at the time of boom, as the cost of living was so expensive. During the boom, business men shifted their key activities to real estate. Their core businesses were in suffers, as the margins were lowered. Nobody can deny the infrastructure and amenities in Dubai that positively favors the business.

Government has established SME in Dubai in promoting SMEs to hatch up their business, as 98% of businesses are SMEs. UAE is known as a trading hub, but soon it will become the business hub in addition to the same. Human resource efficiency is really high in UAE, so, developing into an industrial hub will not be a dream come true to UAE economy. Dubai SME supports people of UAE as well as the expatriates in developing a business.

All the foremost banks in Dubai have dedicated divisions for SMEs in Dubai. But it really important to make sure that all the documentations should be with the shareholders when they need to set up business here. UAE levies only 5% of import tax and that too is excused in many areas, which means, you can focus only on your business and its improvement. It is really an easy task to start a business in UAE. Business men who wish to develop their business globally can locate a hub either in Dubai or elsewhere in UAE.

Al Gharbia – pave ways to sustainable growth

Al Gharbia, located at Abu Dhabi covers 60,000 sq.kl, i.e. the 71% of the total land mass of UAE. Al Gharbia is home to seven major cities namely, the Madinat, Zayed, Ruwais, Ghayathi, Liwa, Mirfa and Sila. Madinat Zayed is the administrative centre of region, which is named after His Highness late Sheikh Zayed Bin Sultan Al Nahyan. Al Gharbia is located close to the borders of Saudi Arabia and Qatar.  It is home to the world’s peak sand dunes and natural shores that extend along 350 kilometers. It is Al Gharbia that hosts the rarest wildlife in UAE.

It conserves the values of traditional Arabian lifestyle and civilization, while succeeding in incorporating into contemporary opulence and other facilities. It offers luxury hotels and resorts neglecting the sea, thus turning it into a perfect tourist’s destination for visitors round the globe. During the past couple of years, Al Gharbia has noticed the establishment both the Western Region Development Council (WRDC) and an independent Western Region Municipality, as a result of the direct momentum offered by the Crown Prince His Highness Sheikh Mohammed Bin Zayed Al Nahyan.

One of the key significance of Al Gharbia is that, it possesses the largest refineries and oil fields and reserves in UAE. It is also home to advanced agricultural activity, which is supported by the rich farms in the country. Al Gharbia offers over AED 115 billion to the Emirate’s yearly GDP. It is notable for its varied agriculture and animal husbandry, which ranges from dates and vegetables fabrication to goat, sheep and camel farming.

Presently, Al Gharbia is being developed to be the most perfect investment destination and has become a novel economic center that attracts investors round the globe. Government has plans to improve its infrastructure. A new railway project has been approved by the Government that connects the seven emirates. The proposed railway line will start from the coast and run all the way through the borders of Saudi Arabia, which is in the city of Sila. This new project will facilitates access to Al Gharbia making it more open. At the same time, this kind of investment will help the region in building economy by increasing prospects and efficiency, thereby achieving growth and prosperity as a whole. 

KIZAD; the Global Industrial Zone for Low Cost Operations

KIZAD, the Khalifa Industrial Zone Abu Dhabi  is one of the world’s biggest industrial zones, which was revealed to the potential investors during November 2010. KIZAD offers industries with novel ways of conducting their business. It also offers unparalleled prospects for them to grow in their core business sector. This mega project is a division of Abu Dhabi Ports Company, the ADPC, which spans over an area of 417 square kilometers. This proves to be a crucial part for Abu Dhabi Government’s Economic Vision.  Abu Dhabi Economic Vision intends in diversifying its economy away from dependence and oil that adds 15% of Abu Dhabi’s non-oil GDP by 2030.

It is clear that KIZAD stands unique for a wide array of motives, apart from its size, which is really two-thirds that of Singapore. Besides that, KIZAD have extraordinary access to world market. It offers a low cost operating environment to the global business. Moreover, it offers Free Zone and Non-Free Zone option for companies. KIZAD also provide potential leaseholders with classy transport infrastructure and a matchless connecting network via air, sea and road. Businesses will get profited from the low cost power, gas and water utilities along with zero custom duties.

Planning and association of KIZAD is designed in such a way that it adds value to each and every stage of the supply chain by increasing productivity. KIZAD provides business efficiency of scale, immediacy and market admittance. It will present all necessary information with regard to the business establishment and will facilitate the relationship with the Government and Licensing Authorities in ensuring processing approvals. KIZAD has started on to showcase its unique features to the world through the partaking of conferences and demonstrations.  

A few of the conferences and Exhibitions that KIZAD has played a part were International Cargo & Logistics Conference in Malaysia and also the Hannover Messe Exhibition held at Germany. This Industrial Zone is guaranteed to attract local and global firms. It is expected that, around 60-80% of the total goods produced in this zone is exported to major nations. The well known Industrial Zone is well set to play a vital role in Abu Dhabi Economy by 2030, by giving way for foreign direct investment. It is likely to set novel standard for industrial zone infrastructure, operations and environment. KIZAD will also establish global business best practice for strengthening aggressive benefits of Abu Dhabi. 

Dubai Airport Free Zone eyes on endorsing Industrialism

Entrepreneurship is a trait that has survived through ages. Entrepreneurs are those who establish ventures that build up economic prosperity to one and all. As time passes by, human beings have practiced the trade of Entrepreneurship. Several studies were conducted and most of them indicate that small and medium sized businesses are the backbone of each and every local economy. Small economies are those that lead us out of worst economic times, as they are agile and inventive.

In order to develop successful start-up ventures, business incubation is needed, which offers entrepreneurs with a wide array of targeted capital and services. The key role of business incubator is to develop financially feasible and freestanding successful business firms. As a part of the effort made for promoting innovation and entrepreneurship, Dubai Airport Free Zone has launched DEC, the Dubai Enterprise Center. DEC is a business incubation center that operates based on best global practices.  

Dubai Airport Free Zone has served UAE for the last 14 years and has instigated many global firms. DEC endeavors to hold on the rational capital of Dubai and continues to fuel the growth of Dubai all the way through entrepreneurship. Dubai Enterprise Centre provides better opportunity for industrialists in starting a business with guidance and support from mentors, academics and experts in managing a start-up business. DEC’s infrastructure comprise of state of the art amenities. It constitutes conference hall and also a training room.

One of the Key features of DEC is that, it is being open to all industries including that of Emirates and expatriates. Industrialists who wish to set up a starting business can get full support from the DEC by its highly qualified and experienced professionals. Capitalists who wish to have an opening to put up starting business can come to DEC. DEC will help you with the positive environment, encouragement and support to do the business. DubaiEnterprise Center will bring your ideas alive and will support the intellectual resource to congregate capitalism.

Dubai Renovated – a Prospective Logistic Hub

Roads, railroads and canals lead to the trading opportunities and it defines the location of major cities. In the early 16^th and 17^th century, cities were built around waterways and seaports. This 21^st century has noticed a new trend in determining the location of economic hubs and creating ‘Aerotropolises’. Emirate is now following a strategy to diversify energy commodity exports into a broader base. Dubai flourishes its service sector to be a major trading hub.

The Emirate is committed in the further development of transportation and logistics environment. Dubai will have the first and only integrated sea-land-air corridor. This will help in containers offloaded from a ship to be transported and airborne in two or three hours. Dubai has launched its operations at Al Maktoum International Airport in June 2010, which will be the world’s largest airport in terms of passenger and cargo volumes. Government of Dubai has set up the Dubai Multi commodities Centre Authority (DMCC), who are the master developers of the Jumeriah Lake Tower free zone (JLT). 

Jumeriah Lake Tower Free Zone (JLT) is the fastest emerging Free Zone among UAE Free Zones. The key goal of DMCC is to offer the required physical, market and fiscal infrastructure to enhance commodity flow through Dubai. DMCC has registered over 725 companies in 2010 and 750 companies in the year 2011, from the month of January to August. And has continues to make JLT, as one of the fastest rising Free Zones among UAE.

DMCC has unveiled the prototype of the first gold bullion coin in the UAE. A national legal tender gold coin will position as a globally recognized sign of pride and credit of UAE’s achievement. Dubai has itself positioned as the regional trade hub that connects East and West. DMCC has devoted to continue to help Dubai in its growth and prosperity by developing Dubai trade. Today JLT has around 15,000 residents and 10,000 people working over 200 hectares of development. DMCC look forward in helping novel and existing JLT members in reaping the benefits of both Dubai and JLT.

Ras Al Khaimah; opening doors to global investment

Ras al Khaimah is one of the traditionally significant cities in the Arabian Gulf. It is placed at the byroad of commerce and trade between east and west. The name Ras Al Khaimah literally translated to ‘The Top of the Tent’ in Arabic. The name ‘Top of the Tent’ signifies to the key contributions made by RAK to the social and fiscal progress of the region. A key investment blast has been observed by Ras Al Khaimah under the leadership of H.H. Sheikh Saud Bin Saqr Al Qasimi, who is the Ruler of RAK and also the Member of the Supreme Council.

Various governmental and legal reforms have made RAK in bringing up an investment crash during the past seven years. H.H. Sheikh Saud Bin Saqr Al Qasimi is the one who brought off World Bank to Ras Al Khaimah to carry out studies on how to make it an investor friendly and a well-organized business destination. During the year 2005, Ras Al Khaimah Investment Authority (RAKIA) has been established, under the strong control of H.H. Sheikh Saud Bin Saqr Al Qasimi. RAKIA manages programs that attract both local and foreign investors.

RAKIA’s services comprise of industrial, commercial and trading license processing, employment, residence and visit visa processing and diverse forms of permits. Ras al Khaimah Investment Authority has also its eye on developing customized products which caters to the businesses operating in RAK. Its customized products comprises of warehouses or light industrial units, land for industrial activities, commercial centers, Business towers or office space and various kinds of residential lodging. RAKIA has launched wide array of monetary enticements for investors and businesses, encompassing easy license issue, Free zone and Non Free zone company creations, liberal labor laws, low operational cost, etc., in order to capitalize on RAK’s investment potential.

Ras Al Khaimah Investment Authority (RAKIA) has come out as one of the pillars of RAK’s fiscal enhancement. RAKIA produces multi-billion dollars as yearly income and also presents Ras Al Khaimah with the strategic guidelines for socio-economic expansion. Ras Al Khaimah has become resilient with its repute as a land of opening for global investors, with RAKIA on the wheels. Ras Al Khaimah offers inclusive business and lifestyle facilities with the eventual support of a progressive and multicultural civilization.

FIFA World Cup 2022 bids an easy ride to Qatar Economy

   

FIFA World Cup 2022 is likely to draw roughly half a million visitors, which is almost equal to a third of Qatar’s present populace. FIFA event to be held at Qatar is anticipated to have a significant impact on its financial system. Qatar Bid committee’s tag-line for FIFA 2022 was “Expect Amazing”. But, this became realism when Qatar has been awarded the right to host FIFA World Cup 2022. Qatar is the first country in the Middle East to get this honor.

Government has geared up with huge expense program, prior to the declaration of FIFA 2022. Qatar has came up with a plan to spend about $100 billion, being 87% of GDP on infrastructure projects as a part of the ruthless National Vision 2030, to renovate the country. The plan constitutes a number of   high profile mega projects in the areas of tourism and transportation, health and education and also in the housing sector and a $25 billion on metro and rail networks.

The Qatar-Bahrain walkway could finally be given the necessary focus and consideration which will see that the project become a reality for the World Cup 2022. Hosting the FIFA World Cup adds a sense of exigency and proffers a firm deadline for the completion of projects. Qatar will notice an unexpected boost primarily in sports facilities and in hotel/leisure. Qatar is all set to profit largely from currently planned expenses, as well as from the impact of the World Cup 2022.

Construction activity in Qatar is anticipated to witness a considerable surge. This will mobilize wide array of infrastructure projects. Commercial and semi-residential zones are expected to see the highest increase ahead of 2022 concerning anticipated demand. Around 12 state-of-the-art stadiums will be offered including the renovation and restoration of three stadiums on hand. The hospitality and real estate zone are anticipated to witness a significant boost among the others. Above all, a second international airport is owing to open in 2012 with the capacity to handle 50m of travelers yearly. The banking sector in Qatar is expected to play a vital role, in order to meet all the business demands. It ensures international contributions by offering funding to the novel competitors into the Qatar market.

Fresh reserves round the globe can help set the stage for further growth in the future. This will enhance Qatar’s plans to boost up tourism and to become the region’s centre of attraction. Persistent future plans will help banks in producing revenues through exceptional growth and enhanced fee producing businesses. The 2022 World Cup will present Qatar with a key catalyst for ongoing reserves. Deliberated planning combined with global proficiency and local acquaintance, Qatar can aspire to the thriving delivery of its National Vision, and wait for a remarkable 2022 FIFA World Cup. 

Realty Market – a Test out for Certainty

Middle East Realty market, especially in Dubai has seen booming at an amazing pace during last six years, with massive and iconic project declarations every day from shareholders across the GCC and the UAE. Newspapers and magazines speckled glowing reports on the thriving industry while developers hang down on delivery dates of excessive lifestyles.

The UAE will be shocked by the global financial slowdown, mostly from markets that used to be very popular for acquiring real estate as savings like India, UK and Germany. Entrepreneurs are exiting property reserves sending prices down for the first time since the boom started in 2002. An alteration is a blessing in mask as the market was overheated. The Government had set up a counseling committee to balance delivery with demand, a hint that the Government might be in view of slowing future projects to endorse the market with a soft landing.

One of the key factors causing buyers to re-evaluate real estate assortment is the issue of construction delays. Delays in receiving the land ready after infrastructure done by the master developer, delay in giving the contract all adds to the delay in the project getting started. The land tender delay from the master developer to the shareholder is quite common and causes the entire chain of problems. Such accusations and publicity clearly does nothing to support a safe and stable atmosphere for investors. The drive in putting transparency, regulations and accountability is fantastic and the fact that Dubai is looking at its own establishment first is great.

Real Estate Regulatory Authority-RERA was formed after the Realty market in Dubai had arrived at a particular stage. The Government wants to make sure that the market becomes steady and it needs to weed out people who obviously sell things which are non-existent or have false objective of completion dates. Realty prices are witnessing a huge alteration with speculative prices rolling down to realistic figures. This is a healthy drift which enables more end-users to enter this Realty market.

The future of Dubai, UAE and the GCC Realty Market will be more thriving and solid than in preceding years, due to the lessons studied during the fiscal crash. Enforcements of new rules, regulations and strict execution uniformly, RERA recognized Property Price Indexing (PPI), regular auditing, more transparency, implementation of financial reporting standard, dissemination of information and continuous caution could save the UAE and regional economies from such a condition in the coming years.

The GCC and the UAE are well directed economies with huge build up resources and are well-placed to cushion the impact of an exterior shock of this nature. Dubai’s property market will draw long-term investors in the coming years. His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Ruler of Dubai and Prime Minister and Vice President of the UAE said, “Dubai’s direction is straight and forward, and we will continue our growth story.”

The Global Economic crisis & its blow on the UAE

The year 2008, a horrible year, will be recorded in history as a year in which the global economic system came terrifyingly close to complete collapse. While global fiscal markets remained unmindful throughout 2007 to the pressure posed by the awaiting US housing crises, some commentators were hoisting serious creeps as early as 2006. Early signs specify that the GCC economies would live on the crises largely untouched.

UAE’s economic institutions appeared to have little or no disclosure to sub-prime derived mortgage backed securities and commercial balance sheets were in a very healthy position. The region was enjoying an upright economic cycle driven mainly by massive investments in infrastructure, high oil prices and expansionary fiscal policies.

By the middle of 2008 a dichotomy had developed as real estate developers, companies and banks in particular, started to feel the pinch of tapering liquidity. Over a period of six months, the MSCI UAE Index lost 71% of its market finance instead of AED 320bn. A similar picture came out for the wider GCC region with the MSCI GCC Index losing 51% over the same period, an immense destruction of AED 1.5tr of capital brought about by an unparalleled de-rating of global rising markets.

 In “Outlook for 2009”, a report put forward by IMF’s, Standard Chartered implies that UAE may be exposed to a prolongation of tight liquidity states over the next twelve months, “The UAE financial system is facing a textbook style setback. Inflows have turned into outflows, and the deposit base in the banking zone was hard-pressed to keep up with forceful credit growth. As a result, liquidity has burned up and the financial system is slowing down, with the housing market seeming particularly at risk”. Corporate fundamentals in the UAE remain largely intact but overlooked. Global sentiment has been the main driver for markets and selling pressure is now materially over-extended.

The crisis in fact affects developed countries; the UAE markets have lost more than half their value. At present levels, the UAE market appears highly underestimated. The UAE and wider GCC region have promoted significantly from the savings of oil and gas income which has led to external assets buildup. This will persist to provide a buyer during this economic crisis. The IMF, in their October “Regional Economic Outlook” for Middle East and Central Asia says, “The medium-term attitude for the region is desirable— continued fiscal makeover through large-scale spending on investment while, at the same time, setting away major wealth for future generations.”

Global financial downturn has caused worries in many organizations across the globe. The Pressure to survive against odds and push the company forward is the dispute before the board and accountants have an imperative role to play in appealing the battle.

Bahrain – The Revived “Treasure of Middle East”

In today’s intensely competitive global markets, Quality is everything. But achieving quality can cost us dearly especially during a period of recession. The global economic recession began as an upset and managed to drive every country’s government and people reeling. Today, the world is looking at the blow as a jolt into new openings, while recovering from it.

Bahrain’s strategic location in the Persian Gulf made it an important economic, political and trading center. It was occupied and ruled by countless dynasties such as the Assyrians, Sumerians, Babylonians, Portuguese, Persians and the Arabs. Clearly, Bahrain had already been marked as a business hub long before the rest of the Middle East. Over the last few decades other countries in the Middle East have successfully came out as major trading and management hubs. Countries like Dubai and Qatar have spent heavily in promoting themselves as the best places for production.

Morison Menon has been caught up in the superb growth of Dubai and the rest of the UAE through our business consulting services. In February 2009, we turned our minds to Bahrain with the sole objective of helping the rest of the world revive this Pearl of the Middle East as the perfect destination for running businesses.

Bahrain has now become a hot-spot for investors, having been voted by Forbes as the best country for business in the Middle East. One of the key reasons for Bahrain’s recognition in the global markets is its standing as a free economy. In a free market, businesses can function with minimum red tapism and foreign ownership limits while enjoying the protection of an established rule of law.

Countries in North Africa, Europe and Asia can easily access Bahrain through various transport modes. This makes it the ideal location for organizations looking to establish regional businesses or headquarters. Bahrain is placed at the heart of the Middle East. Its close immediacy to important markets such as Saudi Arabia and Qatar makes it a leading business location.

Bahrain offers numerous benefits- tax-free business opportunities, excellent infrastructure, a cosmopolitan and liberal culture, a strategic location, and fabulous amenities – all at minor costs comparative to other Gulf countries. Bahrain has become the hot-spot for companies from across the world. We can help you benefit from this success with our business consulting and setting-up services. To know more, visit http://www.morisonmenon.com

Doing Business in Abu Dhabi Book 2013

Morison Menon is really glad to announce the successful launch of the fifth edition of ‘Doing Business in Abu Dhabi’ book. We published this book on January 2013. ‘Doing Business in Abu Dhabi’ covers Abu Dhabi Economic Vision 2030. Abu Dhabi Economic Vision 2030 is a roadmap for achieving Abu Dhabi’s desire for a safe and sustainable future. It captures the Emirate’s socio-economic conversion tactics. Abu Dhabi Economic Vision 2030 reveals the value of investment in learning, infrastructure and health.

Morison Menon’s ‘Doing Business in Abu Dhabi’ lends a hand in your search of setting up a dream business in Abu Dhabi, including its Free Zones. We strongly believe that by bringing up a handbook on ‘Doing Business in Abu Dhabi’ Morison Menon is doing ideal service to the foreign investors, who wish to be a part of Abu Dhabi’s success story. “Doing Business in Abu Dhabi’ is endowed with all the relevant information in one place.

Our ‘Doing Business in Abu Dhabi’ handbook is circulated complimentary to Government Departments, Diplomats and senior bankers, Trade Missions, Lawyers and Business Councils etc. We are really grateful to His Excellency Nasser Ahmed Alsowaidi, Chairman-Abu Dhabi Department of Economic Development and His Excellency Mohamed Thani Murshed Al Rumaithi, Chairman of UAE Federation of Chambers of Commerce and Industry and Chairman of Abu Dhabi Chamber of Commerce and Industry for the support and encouragement offered to us all the way through the successful launch of this book. 

Doing Business in Dubai book 2013 edition launched

His Highness Sheikh Ahmed Bin Saeed Al Maktoum launching the ‘Doing Business in Dubai’ book

Morison Menon proudly announces the successful completion and issue of the fifth edition of 'Doing Business in Dubai' book. It was delivered on late January 2013. We are really happy to say that the book helps business communities in their entire search of Doing Business in Dubai. "Doing Business in Dubai' helps us in achieving our mission of "Building Better Businesses Globally".

We have done detailed research to condense the rules and regulations and all other significant aspects that help global investors in establishing business in Dubai. Wide array of global business entities are either headquartered in Dubai or have a major presence here. Dubai is the second home to hundreds of thousands of people who live and work here harmoniously. Morison Menon strongly believes that this book acts as a catalyst to attract fresh investors to this vibrant world of business.

Our sincere thanks goes to His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman and CEO of the Emirates Airline and Group, Chairman of Dubai Supreme Fiscal Committee,   His Excellency Mohammed Ibrahim Al Shaibani, Director General of His Highness The Ruler's Court-Dubai, Executive Director & CEO - Investment Corporation of Dubai and His Excellency Office team and His Excellency Sami Al Qamzi, Director General of Dubai Department of Economic Development and the DED team in making this a fruitful venture.

Morison Menon to Support UAE's bid for World Expo 2020

UAE has ramped up its bid for World Expo 2020 and we are happy to announce that Morison Menon is a Bid Supporter for the Expo 2020 Dubai. This event is hosted under the theme "Connecting minds, Creating the future" and is supposed to create 277,000 job opportunities in the region. A key initiative known as Expo Live, has been announced by the UAE govt., aiming at driving international collaboration for implementing sustainable solutions and opportunities on a global scale.

Our effective participation and alliances will tribute UAE’s social progress achievement on a global scale. World Expo has provided a unique opportunity to bring nations together across all spheres and sectors. Only with our divergent partnership, global issues get addressed for better solutions. Morison Menon has plans to discuss global concerns that ignite new thinking to foster progress.

We are well prepared to deliver our thoughts for forthcoming global health challenges. Morison Menon’s diverse ways will increase government funding and participation in international aid and health programs.  Our policy is to help students broaden their horizons and to discover new worlds and challenges. Morison Menon will craft them to contribute for finding solutions to issues they might not have been exposed to. This dazzling event is supposed to be held at Dubai Trade Center – Jebel Ali, and we wish the very best from the bottom of our heart to the World Expo 2020.