Drake & Scull International (DSI), a service provider of mechanical, electrical and plumbing contracting and civil contracting in the UAE, became the latest company to join Build Safe Dubai (BSD) as part of its ongoing commitment to maintaining the highest standards of health, safety and welfare. BSD is a not-for-profit organisation with members in the construction industry who share a common cause with regard to workers’ welfare and safety. Earlier this month, DSI also joined the Emirates Green Building Council (EGBC) – a not-for-profit organisation with the goal of advancing green building principles for protecting environment and ensuring sustainability in the Emirates. BSD aims to promote an agreed minimum of health and safety standards for the benefit of all workers in the construction industry in Dubai and the UAE. It seeks to communicate best practices and the importance of construction safety to all project stakeholders. Khaldoun Rachid Tabari, Vice-Chairman and CEO of DSI, said: « Since the inception of DSI in the UAE in 1966, implementing the highest standards of health, safety and welfare has always been an important management responsibility that is on a par with production and profitability. This commitment enabled us to complete more than 27 million man-hours on our on-going projects without one serious injury or fatality. » Among DSI’s projects are the construction and maintenance of the district cooling plant and network at Jumeirah Beach Residence, the Dubai Festival City, Saudi Iron and Steel Company – Hadeed, and more around the GCC. The company has experienced strong growth in recent years. In fact, in 2007 revenues increased by 16.7 per cent from the previous year and the company saw an increase of 38.1 per cent in gross profits compared to the previous year. Year-on-year growth in net profits, excluding the minority share, is 37.6 per cent. business24-7.ae
Kuwait Government agreed to buy an equity stake in Gulf Bank, the country’s second-largest lender by assets, after the bank announced unspecified losses from derivative trading last week, Kuwait news agency Kuna reported, citing Finance Minister Mustafa Al Shimali. The government, which already guaranteed customers’ deposits with the bank, will « contribute to the bank’s capital » if shareholders don’t fully provide necessary cover, the public sector news agency quoted Al Shimali as saying late yesterday. The measure is aimed at supporting the financial position of the bank and maintain its credit rating, Al Shimali said. Gulf Bank is considering a capital increase or even a merger to shore up its business. The central bank has appointed a treasury supervisor for Kuwait’s fifth-largest bank by market value and guaranteed deposits, as the global financial turmoil spilled over into the oil exporting region. Gulf Bank, which has posted two straight quarterly profit declines, also said Chairman Bassam Al Ghanim has resigned and been replaced by his brother Kutayba Al Ghanim. The new chairman declined to say how much the bank had lost from the euro derivatives deals, but told reporters it had stopped all such dealings. « The bank plans to continue [business] as normal… we have more liquidity than we need… to cover everybody without the central bank’s guarantees, » he said. He said Gulf Bank, which is active only in Kuwait, might increase its capital or seek support from its major shareholders. Ghanim said Gulf Bank might even consider a merger. « I am willing to look at every offer and every possibility that would make the banking system stronger in Kuwait, » Ghanim said, adding that there were no current talks. Asked whether a merger with local market leader National Bank of Kuwait (NBK) was possible, he said: « If NBK wants to merge with us, that’s news to me. But it’s good news. I would not reject that. » Banks across the Gulf have been hit by the global credit crunch, hampering their ability to finance multi-billion-dollar infrastructure and industry projects launched during the oil-fuelled economic boom. Gulf Bank said board member Abdul-Kareem Al Saeed had also resigned. Kuwait’s parliament yesterday voted in favour of a law guaranteeing bank deposits in all local and foreign banks operating in the emirate. Lawmakers voted 50 to seven in favour of the law, which will guarantee the approximately 23 billion dinars (Dh315.6bn) of deposits, said Mohammed Al Saqer, a member of Kuwait’s elected assembly. Agencies
Ras Al Khaimah is promoting itself as an authentic and nature-oriented destination among German-speaking tourists and has found a novel route to do so by offering to host a Miss Germany 2009 Camp from January 28 to February 7. The finals will be held in Germany on February 14. « Our main focus is to raise the profile of Ras Al Khaimah as a destination within the UAE across German and German-speaking markets and by doing this we anticipate the numbers of visitors will rise, » said Hilary McCormack, manager of RAK Tourism. « German tourists love nature and the Arabian culture and Ras Al Khaimah has a lot to offer. » McCormack said 40 per cent of RAK’s visitors came from German-speaking areas. There were 65,000 tourists in 2007 and she expects a consecutive 20 per cent growth rate in their number for 2008 and 2009. « Having Miss Germany here, who has visited Ras Al Khaimah and the UAE before, will give a boost to the already emerging tourism market that the emirate can offer, » said McCormack. « RAK Investment Authority (Rakia) and RAK Tourism learnt that Miss Germany Corporation were looking for a destination in the UAE that had something new like the Hamra Fort, » said McCormack. She said German-speaking companies are finding promising business opportunities in Ras Al Khaimah. There are 20 registered German companies that operate in in the emirate mainly in manufacturing, paints and boat interior design. More will be expected, » said Serge H Guillaume, Rakia Executive Director. Rakia also expects to attract companies from European countries such as Spain and Italy. « Such activities promote tourism, but this also gives opportunity for expanding business and industries, » said Guillaume. « The person who represents the Miss Germany Corporation had been to Ras Al Khaimah a number of times. He knew the emirate and sold the idea to his colleagues in Germany and communications started between us and them. » Ralf Klemmer, director of Miss Germany Corporation, said they were excited and eager as « we are to enjoy the hospitality, warmth and the natural authentic beauty » of Ras Al Khaimah. « I came several times to RAK and realised this place has much authentic and natural potential and opportunities in promoting business and tourism, » said Ingo Dubinski, General Manager of Berlin-based Crown Production Company. The beauty camp in Ras Al Khaimah will have 23 participants that include Miss Germany 2008 Kim Voigt and 22 finalists that Miss Germany Corporation selects by organising 250 events across the country. « Beside the current Miss Germany, the other 22 ladies are selected from 16 districts, five regions and two companies’ winners, » said Ines Kuba, Miss Germany 1992. Beside the 23 ladies, the camp will have 37 staff of doctors, security and major TV stations to cover the camp for German media. The Miss Germany Camp takes place in a different country as a preparation for the competition in Germany. It was done in Egypt, Spain, but this time in Ras Al Khaimah in the UAE where German-speaking people will get to know about this place in the media specially it has nature, sun with authenticity, » added Kuba. « This is not my first time to RAK and the last time I was here was in August, » said Miss Germany 2008 Kim-Valerie Voigt. « We will be doing the whole camp in RAK prior to the finals. The event will be circulated in the German media where people from my country will get to know this place better. » The UAE is the second Arab country Voigt visits after Egypt. Voigt, who is from the northern German city of Hanover, spent six months in a school in the state of Indiana in the US. She kept the door open for possibilities to work one day in the UAE, « but I have to finish my university studies, then I may study something in business management. I do not know yet. Let’s see, » she added. Rami Eljundi business24-7.ae
Dubai-based Emirates Islamic Bank (EIB) yesterday said its third quarter profits jumped 207 per cent to Dh443 million against Dh144m for the same period last year. The Islamic bank said its income in the third quarter grew to Dh1.17 billion from Dh654m, registering a growth of 79 per cent. At the end of September, total assets increased 80 per cent to Dh25.28bn compared to Dh14bn at the third quarter of last year. Customers’ deposits grew by 81 per cent to Dh21.81bn, compared to Dh12bn in the third quarter last year. Shareholders’ equity reached Dh1.67bn at the end of the period, with an increase of 39 per cent compared to the third quarter of 2007 when it was Dh1.2bn. Meanwhile, earnings per share has risen to Dh0.47. Ibrahim Fayez Al Shamsi, CEO of Emirates Islamic Bank, said: « These results reflect the continuous success of strategic planning and robust execution of our business plans. » « We continue to set benchmarks on all fronts. One reflection of this reality is that EIB is still highest profit distribution on customers’ investment and saving accounts for almost three consecutive years despite the adverse developments in the global financial markets. « I firmly believe we will achieve a record breaking end of year results, Insha Allah. » The bank continued to launch innovative products and services. Among Emirates Islamic Bank’s key initiatives was the launch of Skywards credit card, chip-based credit cards, enhanced SME solutions, new technology implementation, payment windows, and launch of several new branches in the quarter. business24-7.ae
Dubai-based Danube Building Materials plans to invest Dh40 million in Bahrain’s steel market, the company has announced. Danube officials said the investment is part of the company’s plans to target the booming construction market in Bahrain. The GCC steel trade is expected to cross $200 billion (Dh735bn) in 2010, according to latest studies, as a result of the ever-growing construction sector across the GCC countries. The ‘Middle East Steel 2008 Report’ from Meed reported projects worth $2trn are planned or under way in the Gulf, with less than one quarter awarded. Rizwan Sajan, Chairman, Danube Building Materials, said: « Bahrain continues to be one of the key markets for steel in the Middle East, given its burgeoning steel imports to feed its huge consumption, and we believe the presence of a dedicated steel facility in the country will give us a definite advantage in supplying this market with our very high-quality products. « Through this investment, we expect to facilitate a steady supply of steel products to be used in the construction of current and future projects in the country, as well as in the region. » The steel market in Bahrain, which has been predominantly catered to by Saudi Arabia-based mills and Qasco-Qatar, has opened up recently. « As we intend our Bahrain steel manufacturing facility to be the premier source of steel and its products in the country, we are also investing considerably in product development and effective marketing plans. We are currently eyeing around Dh120m in annual revenues from our steel operations in Bahrain, » said Sajan. business24-7.ae
Dubai Investments, which owns stakes in more than 40 companies has maintained its earnings growth with net profit for the first nine months surging to record levels. Net profit for the year to September increased Dh1.67 billion from Dh1.07bn for the same period last year, an increase of 56 per cent. Total income for the period increased to Dh4.10bn from Dh2.59bn for the same period last year, an increase of 58 per cent. The net profit for the third quarter of 2008 increased to Dh635m from Dh268m for the third quarter of 2007, an increase of 137 per cent. The total income for the quarter increased to Dh1.44bn from Dh812m, an increase of 77 per cent. Total shareholders’ equity at September 30 was Dh7.38bn, representing a growth of 66 per cent over equity of Dh4.44m at September 30, 2007. This was achieved due to significant growth in net profit and increase in share capital on rights issue. The return on average equity achieved for the period was 27 per cent. « Our exceptional performance even during these difficult times of financial uncertainty reflects our ability to deliver results exceeding expectations on a sustainable basis, » said Khalid bin Kalban, Managing Director and CEO of Dubai Investments. Staff Writer business24-7.ae
Dubai World is eyeing once-in-a-lifetime bargains across the globe stemming from the financial crisis and remained bullish on its home market. Chairman Sultan Ahmed bin Sulayem said yesterday Dubai World, whose businesses range from shipping to real estate, saw opportunities that his firm « could never take advantage of again ». « Today there are things in the market worth a fraction of what they should be worth, » he said without specifying what sectors the firm was looking at. Gulf investors, including sovereign wealth funds, have indicated a willingness to buy into foreign assets, whose valuations have dropped drastically in the second half of the year, although many have said they would wait until the market bottoms. Sulayem, whose firm owns the world’s fourth-largest port operator DP World and is a stakeholder in MGM Miragek, said he expected the global financial crisis to bypass the Gulf. « So will the crisis be here in two years? No way, » he said, adding that Gulf economies were less affected than other regions by the turmoil. Dubai World is the holding company of Nakheel and Limitless, which in September dropped plans to buy British property firm Minerva. Nakheel said earlier this month that it had no need for external financing until 2010, but may scale back its huge land reclamation projects to curb costs and protect profits. « None of the projects we are building or have sold have been cancelled, » Sulayem said at a monthly bankers’ meeting. Sulayem reiterated the company had no problems financing projects Staff Writer business24-7.ae
This may come as a surprise to some, but the multi-billion dollar halal industry is not just about food. There are many consumer goods from cosmetics to healthcare products that all fall under the banner. While the customs behind halal meat are well known, the production of other products is less obvious. For example, some types of gelatine – found in many cosmetics and medicines – cannot be used by Muslims. And with the global Muslim population expected to rise to two billion by 2025, demand for halal products is set to soar. The global halal market is currently estimated to be worth $580 billion (Dh2.13 trillion) and is set to grow by seven per cent a year, according to Asia Inc. The halal food market alone is worth $30 million (Dh110bn) to the top five food producers, of which Nestle is the biggest with annual sales in excess of $3bn (Dh11bn). A spokesperson for the US-based company says: « The Middle East market is growing every year and as such it is becoming more important to us. We are also getting non-Muslim clients too as the halal principle continues to give confidence to consumers. » As a result of the growing industry, the second annual Halal World Expo (HWE) will be taking place in the UAE. Spread over three days from November 11 to 13 at the Abu Dhabi National Exhibition Centre, the HWE, which is being organised by IIR, will bring producers from around the world together to showcase their products as well as provide a venue to discuss such issues as standardisation of the industry. Exhibition Director Christine Weaver says: « It will give national industry leaders the chance to work together with professionals from Malaysia, South Africa, Brunei, Saudi Arabia and Indonesia, which have halal compliance systems in place. « It is often taken for granted that processed food and products available in supermarkets of an Islamic country like the UAE are fully halal compliant unless stated as being for ‘non Muslim’ consumption or use. » There will be a number of producers from Saudi Arabia and Brazil, the latter of which is one of the world’s biggest exporters of meat. The UAE, on the other hand, is the second largest importer behind Saudi Arabia and channels Dh550m worth of merchandise throughout the region every year. Local company Al Semman Farm will be selling its fresh and frozen quail eggs at the HWE and is using the event as a springboard for future growth. A company spokesperson says: « The expo gives us the opportunity to show our products and proves there is global focus to a growing demand for halal products worldwide. « With the dense concentration of Muslim consumers in the Middle East, there is huge potential for the halal industry to produce and distribute high quality, regulation certified products throughout the region. » But it is not just local companies that are keen to pass the message of halal to the rest of the world. Midamar Corporation is travelling from the United States to sell its meat products, with an emphasis on attracting restaurants and hotels. Its Director, Jalel Aossey, says it is an important event to help them convince people in this region that despite their products coming from North America, they are no less authentic than if they were produced locally. « It is a known fact that importers and consumers in the GCC region have significant doubt as to the true integrity of US-imported goods really being halal. But the Middle East market is our most strategically important region of the world, » he says. Is halal better then non-halal? For certain. « Halal is not only for our food but encompasses all aspects of our daily life and when one chooses to follow a halal lifestyle the world as they say is yours. » Weaver agrees: « Halal is a healthy option because the animals should be naturally reared, so it’s not just about how they are killed, but what they are fed too. » There is standardisation of the industry in some parts of the world, including Thailand, but Weaver believes there needs to be more awareness of halal products. « There is always the opportunity to educate. As we are surrounded by it in this part of the world we are unconsciously aware but in Europe that’s not always the case. « But as the Muslim population increases, so too will awareness of the halal industry, » she says. Although less widespread, the halal cosmetics industry is worth an estimated Dh2.06bn worldwide, and Weaver says young Muslim women are becoming more conscious of the cosmetics they use. Muslims also need to be careful with medicines as some pills are coated in gelatine made from pork products, while some cough mixtures contain alcohol. This also applies to perfumes, as many Western-made ones are made using alcohol. In light of this, some international brands have introduced halal products including toothpaste by Colgate-Palmolive and mascara and eye shadows by Australian firm Almaas. Meanwhile, a new section to this year’s HWE is the Islamic finance pavilion, which is an ever-growing market. « We have introduced the finance section because of demand not just in the Middle East but also elsewhere, » says Weaver. According to recent data, Shariah compliant banking is growing by 35 per cent a year, while Islamic finance products are valued in excess of $400bn a year, with Dow Jones launching an Islamic Market Family Index in 1999. « The Middle East market is important and products need to appeal to it as companies want business from here, » adds Weaver. Aimee Greaves business24-7.ae
Environmentally-minded residents who separate their rubbish and shop with reusable bags in their home countries may be disappointed when they move to the UAE. A co-ordinated, Emirates-wide program to collect and recycle separated domestic waste appears a distant ideal, while a lack of awareness may be thwarting many existing, well-intentioned recycling schemes. However, there are many schemes in place if you know where to look. Recycling bins are dotted across Dubai, and a municipal program allows residents to recycle their computers. An organisation called EnviroFone collected nearly 65,000 mobile phones last year and the Emirates Environment Group runs annual can collection drives. There are also office paper recycling schemes in several of the more populous emirates. Supermarkets are starting to provide separate bins for plastic bottles, paper, and cans, and service station operator Emarat recently installed ‘reverse vending machines’ which reward recyclers with raffle coupons at some of its outlets. But is enough effort put into recycling in the UAE or are existing programs fragmented and poorly-promoted? Do enough residents care anyway? business24-7.ae
Qatar downplayed the impact of the global credit crisis on its investment plans, saying in media reports that it would continue to boost investments at home and would not pull out of depressed global holdings. Qatar, the world’s biggest exporter of liquefied natural gas, has been investing windfall oil revenues in infrastructure and industry and snapping up stakes in international companies. Qatar Investment Authority (QIA), the country’s sovereign wealth fund, is among investors from which Credit Suisse Group was raising 10 billion Swiss francs (Dh31.7bn) – or about 12 per cent of its outstanding equity. Qatar is also set to boost its investment in British bank Barclays as part of a £2bn (Dh11.3bn) rescue package. Qatar’s prime minister downplayed the extent of damage from declining overseas stock markets on its economy and QIA, the Al Sharq newspaper reported. « We are looking at a long-term strategy in investment and not a limited or temporary strategy, » Sheikh Hamad bin Jassim Al Thani said. The global market turmoil has also battered Gulf Arab bourses, until recently largely seen as shielded from global declines, denting confidence and prompting Gulf governments to intervene. With the recent slide in oil prices, worries mounted that the financial crisis could cause a slowdown in the region’s economic growth. Oil has slumped more than 50 per cent since hitting an all-time high of $147 per barrel. Earlier this month, Qatar launched a $5.3bn plan to buy 10 per cent to 20 per cent of banks’ listed capital on the Doha bourse to mitigate the impact of the global financial crisis and boost investor morale. Sheikh Hamad said the Gulf state would push ahead with investment plans despite global economic turmoil and urged stock market investors to remain calm. « Qatar will not stop or slow down its various projects due to the global crisis, » Sheikh Hamad said, according to The Peninsula. Sheikh Hamad’s comments came as the country’s largest company by market value, Industries Qatar, halted steel exports due to a 45 per cent increase in local demand fuelled by an « unprecedented » construction boom. « The increased demand on the local market reflects the strength of the national economy and the dynamism of the construction sector, » Qatar Steel said yesterday. Qatar’s economy expanded at a great pace in the second quarter spurred by high energy prices, while the construction sector grew 19.8 per cent. The economy is set to grow 11.6 per cent in real terms this year, the fastest pace in the oil-exporting region, according to a Reuters poll in July. Sheikh Hamad said the stock market drop was « unjustified ». « All the listed companies have achieved huge profits which even exceeded those of last year… The downturn is due to psychological factors only, » he said. Reuters