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