Non-performing loans are expected to swell almost 50 per cent to nearly Dh65 billion (US$17.69bn) this year as the global economic downturn and sagging property prices take a further toll on the country’s lenders.
The rise is likely to force lenders to set aside more reserves to protect themselves.
“Non-performing loans are already at a reasonable level,” Sultan Nasser al Suwaidi, the Central Bank Governor, said yesterday.
“If you take into account write-offs, non-performing loans would be higher.”…SOURCE
Non-performing loans were expected to rise to 6.5 per cent of bank lending this year from 4.4 per cent last year, he said. The total value of loans and advances in the UAE is Dh1 trillion, according to Central Bank statistics.
Banks’ loan books have been adversely affected by exposure to a severe correction in the country’s property sector, with estimated price declines of up to 50 per cent in Dubai and 40 per cent in Abu Dhabi.
Two new draft laws, which will be submitted to the cabinet within two months, could see the UAE change its rule on foreign ownership of companies, Economy Minister Sultan bin Saeed Al Mansouri said on Sunday.
The minister said the UAE government was working on a new industrial law that would allow 100 per cent ownership for foreign investors in a move aimed at attracting investment in high-tech and capital-intensive industries.
The government wants to make the industrial law more attractive to foreigners who wanted to relocate their businesses to the UAE to benefit from the country’s manufacturing infrastructure.
“We must create the right environment to attract foreign investors,” the minister told reporters.
Details about the new industrial law would be announced after it is approved by the Cabinet, he said. At present, foreign investors can own only up to a 49 per cent share in a business, except in free zones, where they can own as much as 100 per cent… SOURCE
The UAE economy may contract this year due to the global credit crisis, Sultan Bin Saeed Al Mansouri, the Minister of Economy, said today.
“There could be some contraction,“ Mr al Mansouri Ck said in Dubai. “If the world economy goes on like this it will be contractive.”
He stressed, however, that the UAE would be less affected than many other countries, although the oil price was one of the key determinants of how the Emirates would fare.
Mr al Mansouri said the Government had not received any demands to help big companies with additional funds. “No big companies have requested extra liquidity until now,” he said. Many companies, particularly big developers, are said to have fallen behind on their payments as funds are hard to raise.
Mr al Mansouri added that it was “not an option right now” to liquidate either Tamweel or Amlak, the country’s two largest Islamic lenders. He said a merger remained “one of the good options”… SOURCE
Etisalat’s deal to distribute the Apple iPhone could be anti-competitive if it includes an exclusivity clause, Osman Sultan, the chief executive of du, said yesterday.
Last week, Etisalat announced it had reached an agreement to bring the popular device to the UAE by the end of this month.
The company did not say whether Apple had agreed not to make a similar agreement available to du, its rival company. Etisalat also did not reveal whether the device would come “locked” to its network.
“We have been talking to Apple since day one,” Mr Sultan said. “We hope the agreement will not mean any type of exclusivity, which is what we are trying to figure out, because I believe that would be making use and abuse of a dominant position in the market.”
Etisalat will offer the iPhone as part of a subscription package that includes calling, text messaging and internet access over its network…SOURCE
Well if you like proprietary machines, go ahead and buy one of these overpriced Chinese-made phones. Enjoy! Meanwhile, I will be WiFi surfing on my Samsung for free!
The UAE continues to have more mobile subscribers per person than anywhere else in the world, according to figures released on Wednesday by the Telecommunications Regulatory Authority.
For every 100 people, there are 186 cell phone lines that made or received calls or messages in the past 90 days, the TRA said.
Telecom companies offer a number of factors to explain the abnormally high penetration rate, which is more than 20 percentage points higher than other small, wealthy economies such as Hong Kong, Singapore and Macau.
Frequent return visitors, the common practice of having two or more mobile numbers and a fast-growing population are often cited. Osman Sultan, the chief executive of du, has said that a large number of people bought a du line when the company launched, but continue to use their Etisalat subscription as their main line…SOURCE
Anyone in the world would dream about buying at least a couple of Lamborghinis, a luxurious multi-bedroom apartment or even a small aircraft, if given Dh15 million to pocket.
But Shaikh Mohammed bin Sultan bin Hamdan bin Mohammed Al Nahyan bought ‘Mabrokan’, the camel, for the same amount. And guess what? The animal is making him proud. On Tuesday, Mabrokan stood victorious, ahead of all in the Zomool Al Majaheem race on the first day of the Al Dhafra Camel Beauty Pageant in Al Dhafra.
The Camel Beauty Pageant is being held under the patronage of General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed forces.The event is being organised by the Abu Dhabi Culture and Heritage Authority.
Later, after Mabrokan won, Shaikh Mohammed bin Sultan decided not to let it participate in the other races.
Instead, it would only be for breeding as it is of an excellent pedigree.
Mabrokan had already achieved an advanced position in the competition breaking all the former records…SOURCE
Frankfurt: The UAE is poised for two years of slow economic growth as its property sector is hit by the global financial crisis and banks rein in expansion, the central bank governor said.
Growth in gross domestic product (GDP) in the world’s fifth-largest oil exporter would fall to low-single-digit levels in 2009 and 2010, Sultan Bin Nasser Al Suwaidi said, as an economic boom spurred by six years of high oil prices comes to a close.
Still, a slump in the booming property sector would be limited as the country continues to adopt an expansionary fiscal policy, although it will take steps to ring-fence its banking system, Al Suwaidi said…
Sultan, the chief executive of du, said yesterday.
