Time to act if Dubai wants to keep pole position in finance



Qatar, it was reported this week, believes it can challenge Dubai's position as the premier financial hub in the Arabian Gulf.

Expert opinion is still divided on whether Doha can overtake Dubai's lead. Some believe the advantages the emirate already has are too significant to allow Qatar to catch up, let alone overhaul Dubai.

Others believe Dubai, through a mixture of natural disadvantages such as the lack of serious energy revenue, coupled with misjudgements on the part of policymakers, is in danger of letting its lead slip.

The argument for Dubai is well rehearsed. It has an established infrastructure in a business-friendly environment and a historic commercial centre, augmented by the most modern and sophisticated financial hub, the Dubai International Financial Centre (DIFC).

It looks like a no-brainer for any international financier or business executive: Dubai should win hands down over sleepy Doha as a location for Gulf business.

But there are good reasons why global decision-makers are weighing their options in the region. The bad news is that Dubai is beginning to look a little less attractive; the good news is that it is within the emirate's own power to rectify that situation.

The most recent threat to Dubai's position was the new regulations regarding onshore fund management from the UAE's federal regulator, the Securities and Commodities Authority. These, the critics argue, mean that the DIFC is no longer the gateway to the UAE it was intended to be.

Burdened by the new regulatory regime, fund managers would either retreat back into the DIFC, cutting the centre off from the wider economies of Dubai and the UAE; or would go somewhere else (such as Doha), where the onshore/offshore barrier is not so high.

However, there is plenty of scope for the new regulations to be fine-tuned and finessed in the UAE so as to remove those areas most burdensome to fund managers. What is needed is the will to accommodate the critics' objections, and it is here that the policymakers face a sterner test. Put bluntly, the regulatory position in the UAE is at best confusing, and at worst obstructive, to the interests of the financial community.

For years, the critics have pointed to the dislocated nature of financial markets in the UAE as the big problem; for years that issue has not been tackled.

The UAE remains the only market in the region, and one of the few in any emerging market, to have three stock exchanges (two in Dubai, one in Abu Dhabi) and three regulators (two in Abu Dhabi including the UAE Central Bank, one in Dubai, the Dubai Financial Services Authority) overseeing them.

Consolidation is the solution.

Plans to merge the three centres have been proposed many times. Now perhaps is the time for push to come to shove.

Perhaps a new long-term strategy for the UAE financial industry is required. The country got through the worst of the 2008-2009 financial crisis, but other Gulf states (for example, Qatar) have arguably emerged with a healthier financial sector.

Some analysts believe the UAE banking system has been slow to tackle the legacy of the global crisis, especially in Dubai, where problem loan levels are high, exposure to large, stressed, government-related companies is significant, and corporate impairments, mainly related to property, remain problematic.

There is much talk in Dubai financial circles of the need for a fresh round of restructurings, even before the last series, sparked by the Dubai World crisis in 2009, is completed.

In Dubai, policymakers should decide just how central the financial industry is to the emirate's long-term economic strategy. The recovery of the "Three Ts" - trade, transport and tourism - has led to a new-found self-confidence about the commercial hub, but does this mean the financial industry has been downgraded within the overall master plan?

If so, it would be a reversal of a key plank of policy that served Dubai well in the boom years. Policymakers must decide exactly where finance lies on their list of priorities, or risk seeing the lead Dubai has established, over Doha and others, eroded and eventually overtaken.

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The Buckingham Murders

Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu

Director: Hansal Mehta

Rating: 4 / 5

SCORES IN BRIEF

New Zealand 153 and 56 for 1 in 22.4 overs at close
Pakistan 227
(Babar 62, Asad 43, Boult 4-54, De Grandhomme 2-30, Patel 2-64)

SPEC%20SHEET
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At a glance

- 20,000 new jobs for Emiratis over three years

- Dh300 million set aside to train 18,000 jobseekers in new skills

- Managerial jobs in government restricted to Emiratis

- Emiratis to get priority for 160 types of job in private sector

- Portion of VAT revenues will fund more graduate programmes

- 8,000 Emirati graduates to do 6-12 month replacements in public or private sector on a Dh10,000 monthly wage - 40 per cent of which will be paid by government

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

MATCH INFO

Group B

Bayern Munich v Tottenham, midnight (Thursday)

What are the GCSE grade equivalents?
 
  • Grade 9 = above an A*
  • Grade 8 = between grades A* and A
  • Grade 7 = grade A
  • Grade 6 = just above a grade B
  • Grade 5 = between grades B and C
  • Grade 4 = grade C
  • Grade 3 = between grades D and E
  • Grade 2 = between grades E and F
  • Grade 1 = between grades F and G
The Penguin

Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz

Creator: Lauren LeFranc

Rating: 4/5

Essentials

The flights

Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours. 

The package

Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.

KINGDOM%20OF%20THE%20PLANET%20OF%20THE%20APES
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COMPANY%20PROFILE
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Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Company%20Profile
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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

The Perfect Couple

Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

Creator: Jenna Lamia

Rating: 3/5

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. 

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Company%20Profile
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Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Director: Venkat Prabhu
Rating: 2/5

Pupils in Abu Dhabi are learning the importance of being active, eating well and leading a healthy lifestyle now and throughout adulthood, thanks to a newly launched programme 'Healthy Lifestyle'.

As part of the Healthy Lifestyle programme, specially trained coaches from City Football Schools, along with Healthpoint physicians have visited schools throughout Abu Dhabi to give fun and interactive lessons on working out regularly, making the right food choices, getting enough sleep and staying hydrated, just like their favourite footballers.

Organised by Manchester City FC and Healthpoint, Manchester City FC’s regional healthcare partner and part of Mubadala’s healthcare network, the ‘Healthy Lifestyle’ programme will visit 15 schools, meeting around 1,000 youngsters over the next five months.

Designed to give pupils all the information they need to improve their diet and fitness habits at home, at school and as they grow up, coaches from City Football Schools will work alongside teachers to lead the youngsters through a series of fun, creative and educational classes as well as activities, including playing football and other games.

Dr Mai Ahmed Al Jaber, head of public health at Healthpoint, said: “The programme has different aspects - diet, exercise, sleep and mental well-being. By having a focus on each of those and delivering information in a way that children can absorb easily it can help to address childhood obesity."

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The specs: 2018 Nissan Altima


Price, base / as tested: Dh78,000 / Dh97,650

Engine: 2.5-litre in-line four-cylinder

Power: 182hp @ 6,000rpm

Torque: 244Nm @ 4,000rpm

Transmission: Continuously variable tranmission

Fuel consumption, combined: 7.6L / 100km

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What is a black hole?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Inside%20Out%202
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Profile box

Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)

The Intruder

Director: Deon Taylor

Starring: Dennis Quaid, Michael Ealy, Meagan Good

One star

COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EAlmouneer%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Dr%20Noha%20Khater%20and%20Rania%20Kadry%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EEgypt%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E120%3Cbr%3E%3Cstrong%3EInvestment%3A%20%3C%2Fstrong%3EBootstrapped%2C%20with%20support%20from%20Insead%20and%20Egyptian%20government%2C%20seed%20round%20of%20%3Cbr%3E%243.6%20million%20led%20by%20Global%20Ventures%3Cbr%3E%3C%2Fp%3E%0A
UAE Team Emirates

Valerio Conti (ITA)
Alessandro Covi (ITA)
Joe Dombrowski (USA)
Davide Formolo (ITA)
Fernando Gaviria (COL)
Sebastian Molano (COL)
Maximiliano Richeze (ARG)
Diego Ulissi (ITAS)

Israel Palestine on Swedish TV 1958-1989

Director: Goran Hugo Olsson

Rating: 5/5