Timothy Geithner, the US Treasury secretary, held a series of closed-door meetings Wednesday with top UAE officials and sought to dispel concerns that the US and its dollar have become a hazardous destination for Gulf investments.
"It will remain the policy of the United States to remain committed to a strong dollar," Mr Geithner said in an interview yesterday with Al Arabiya television. The dollar, he said, "will remain the principal reserve currency".
Mr Geithner is the first senior US official to visit the UAE since President Barack Obama took office. Officials stressed that the purpose of his visit was primarily diplomatic, aimed at opening a dialogue between Abu Dhabi and Washington on a more equal footing than the one that characterised relations during the Bush administration.
But economists and analysts said Mr Geithner also needed to allay concerns in Gulf capitals about the continued openness of the US to Arab investment, and how those investments might be affected by the Obama administration's efforts to stimulate the US economy.
"The strength of the US dollar is a key parameter for the Gulf states," said Ala'a al Yousuf, the chief economist at Gulf Finance House in London. "What the Gulf will be looking for from secretary Geithner is reassurance that the US government would do whatever is necessary to stimulate the US economy."
Gulf nations are among the world's largest buyers of US government bonds and corporate shares. With their currencies pegged to the US dollar, most have to recycle surplus oil revenues into dollar-denominated assets. The US recession has battered the value of those assets, with some sovereign wealth funds suffering losses of as much as 40 per cent on their holdings.
While they stand to benefit from a US recovery, however, many governments and investors worry that paying for the massive fiscal stimulus necessary to resuscitate US growth will involve such heavy borrowing that the value of the dollar will suffer.
Tristan Cooper, a senior analyst at Moody's Investors Service in Dubai, said: "Dollar volatility complicates economic management in the Gulf, given fixed exchange rates, while the path of global oil prices will be heavily influenced by confidence in US economic resilience."
Mr Geithner's visit was part of a whirlwind, four-nation tour that took him through London and Saudi Arabia, where he addressed business leaders in Jeddah, met King Abdullah and visited an oil refinery. Mr Geithner was scheduled to travel to France last night after a dinner with Sheikh Mohammed bin Zayed, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
Officials said the visit was designed to build on the tone set by Mr Obama during his trip to Egypt last month. The US president stressed the need for Americans and the Muslim world to end what he called a long cycle of mistrust. "There must be a sustained effort to listen to each other, to learn from each other, to respect one another and to seek common ground," he said in his address there.
While Mr Geithner's itinerary reflected the Obama administration's more consultative tone, it also highlighted the differences between Mr Geithner and his Republican predecessor, Henry Paulson.
When Mr Paulson, a former Wall Street banker, came to Abu Dhabi in June last year, he stayed at the Emirates Palace hotel and delivered a lecture on US economic policy to a hall full of officials and executives. Mr Geithner, a former central bank official and treasury bureaucrat with no experience on Wall Street, stayed at the same hotel, but confined his morning meeting there to only a dozen people, including Sheikha Lubna Al Qasimi, the Minister of Foreign Trade.
In a statement afterwards, he said: "It is conversations like this that move us one step closer to the president's commitment to deepen ties between business leaders, foundations and social entrepreneurs in the United States and Muslim communities around the world."
In addition to his meeting with Sheikha Lubna, Mr Geithner met officials from the Abu Dhabi Investment Authority and the Abu Dhabi Investment Council, as well as Nasser al Suwaidi, the Central Bank Governor.
Mr al Suwaidi told Bloomberg in an interview that the Treasury secretary had reassured him on the health of the dollar. "It's very important to give realistic committal messages to the international markets," Mr al Suwaidi said. "I would say he's done that."
Apart from a few remarks following his meeting with Sheikha Lubna, however, Mr Geithner limited his public statements on the economy and investment to a taped interview with Al Arabiya television network, scheduled for broadcast today, according to US officials.
Mr Geithner said yesterday in Abu Dhabi that his visit was aimed at strengthening the relationship with the UAE and the Gulf, and to help advance a global conversation on making the world economy less prone to financial crises like the present one.
"We need to ensure that we're not sowing the seeds for future crises," he said, referring to global imbalances that many economists say set the stage for the turmoil that has wracked the world's economy. "Many of the challenges that you're seeing in Abu Dhabi, and that the Emirates is confronting, are challenges confronting the broader global economy," he said.
But it was education, not the economy, that topped the official agenda. "Just one month ago, President Obama reminded us that we must recognise that education and innovation will be the currency of the 21st century," Mr Geithner said in a statement handed out to reporters after his morning meeting.
Mr Geithner was more forthcoming on the issue of the dollar while in Jeddah on Tuesday. "Given the dollar's role in the international financial system, and the significant impact of the US economy on global economic conditions, we fully recognise that the United States has a special responsibility to play," he told the Jeddah Chamber of Commerce.
"That is why the President, in his first budget to Congress, made it clear that as soon as recovery is firmly established, we will bring our fiscal deficit down to a level that is sustainable in the long term."
@Email:warnold@thenational.ae
Killing of Qassem Suleimani
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
COMPANY%20PROFILE%20
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Read more about the coronavirus
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
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The%20specs
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%3Cp%3EFounder%3A%20Hani%20Abu%20Ghazaleh%3Cbr%3EBased%3A%20Abu%20Dhabi%2C%20with%20an%20office%20in%20Montreal%3Cbr%3EFounded%3A%202018%3Cbr%3ESector%3A%20Virtual%20Reality%3Cbr%3EInvestment%20raised%3A%20%241.2%20million%2C%20and%20nearing%20close%20of%20%245%20million%20new%20funding%20round%3Cbr%3ENumber%20of%20employees%3A%2012%3C%2Fp%3E%0A
The specs
Engine: 2x201bhp AC Permanent-magnetic electric
Transmission: n/a
Power: 402bhp
Torque: 659Nm
Price estimate: Dh200,000
On sale: Q3 2022
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
Company%20Profile
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Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
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Killing of Qassem Suleimani
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
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Company%20Profile
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Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
Yahya Al Ghassani's bio
Date of birth: April 18, 1998
Playing position: Winger
Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
Company profile: buybackbazaar.com
Name: buybackbazaar.com
Started: January 2018
Founder(s): Pishu Ganglani and Ricky Husaini
Based: Dubai
Sector: FinTech, micro finance
Initial investment: $1 million
