Unrest in Egypt is endangering a US$7.68 billion (Dh28.20bn) remittance economy as foreign exchange houses remain closed.
Banks and stock exchanges in Egypt have been closed since Sunday after hundreds of thousands of Egyptians took to the streets, paralysing the country's financial system.
Even before the shutdown, however, exchange-house executives in the UAE say they saw a marked downturn in the amount of money going to the country, potentially putting the brakes on a business the World Bank estimates accounted for 4 per cent of Egypt's GDP last year, or $7.68bn.
"People are afraid to send money because of the situation there," said Arif Abdul Rahman, the operations manager at the Lari Exchange, based in Abu Dhabi. "People are waiting and seeing when the situation calms down."
A large portion of remittances to Egypt comes from the Gulf, Ann Wyman, an analyst at Nomura, said in a recent note. Exchange flows from foreign workers amounted to more than $9bn per year, she estimated, exceeding the value of foreign direct investment into the country.
Official government statistics put foreign investment at about $6.8bn in the 2009-2010 fiscal year.
"Workers' remittances [largely from the Gulf region], which account for more than $9bn in foreign exchange revenues annually, could … be negatively affected as long as the uncertainty persists," Ms Wyman said. Remittances help sustain liquidity in Egypt's banking system and bolster its balance of payments, a measure of trade and investment flows. A severe decline could further hamper an economy already suffering from a flight of capital and concern about financial stability in the wake of the protests. Hosni Mubarak, the president, said late on Tuesday he would leave his position before the end of the year, but his pledge has done little to quell popular unrest or settle jittery markets.
Anger has spread across the region in recent weeks over poverty, youth unemployment, underdeveloped educational systems and high inflation.
"We think the conflict and the ensuing uncertainty may … weigh on Egypt's balance of payments if inward foreign direct investment or remittances were to decrease," Standard & Poor's, the global credit ratings agency, said in a note on Tuesday downgrading the country's debt. Mr Abdul Rahman said the amount of remittances Lari Exchange sent to Egypt had decreased by more than 10 per cent before banks were closed.
Even Western Union, the world's biggest money-transfer service, is closed for business in Egypt.
Mohammed al Ansari, the chairman and managing director of Al Ansari Exchange, one of the largest exchange houses in the UAE, said while some Egyptians were waiting for the political situation to calm down, others were trying hard to get money home.
"When [the banking system] reopens we expect to see a rush to send money," he said. "We have given people an option to send their money but it can't reach their home yet and some prefer to wait and see."
afitch@thenational.ae
tarnold@thenational
DUBAI%20BLING%3A%20EPISODE%201
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Seemar’s top six for the Dubai World Cup Carnival:
1. Reynaldothewizard
2. North America
3. Raven’s Corner
4. Hawkesbury
5. New Maharajah
6. Secret Ambition
COMPANY%20PROFILE
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Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
How to book
Call DHA on 800342
Once you are registered, you will receive a confirmation text message
Present the SMS and your Emirates ID at the centre
DHA medical personnel will take a nasal swab
Check results within 48 hours on the DHA app under ‘Lab Results’ and then ‘Patient Services’
if you go
The flights Fly Dubai, Air Arabia, Emirates, Etihad, and Royal Jordanian all offer direct, three-and-a-half-hour flights from the UAE to the Jordanian capital Amman. Alternatively, from June Fly Dubai will offer a new direct service from Dubai to Aqaba in the south of the country. See the airlines’ respective sites for varying prices or search on reliable price-comparison site Skyscanner.
The trip
Jamie Lafferty was a guest of the Jordan Tourist Board. For more information on adventure tourism in Jordan see Visit Jordan. A number of new and established tour companies offer the chance to go caving, rock-climbing, canyoning, and mountaineering in Jordan. Prices vary depending on how many activities you want to do and how many days you plan to stay in the country. Among the leaders are Terhaal, who offer a two-day canyoning trip from Dh845 per person. If you really want to push your limits, contact the Stronger Team. For a more trek-focused trip, KE Adventure offers an eight-day trip from Dh5,300 per person.
The five types of long-term residential visas
Obed Suhail of ServiceMarket, an online home services marketplace, outlines the five types of long-term residential visas:
Investors:
A 10-year residency visa can be obtained by investors who invest Dh10 million, out of which 60 per cent should not be in real estate. It can be a public investment through a deposit or in a business. Those who invest Dh5 million or more in property are eligible for a five-year residency visa. The invested amount should be completely owned by the investors, not loaned, and retained for at least three years.
Entrepreneurs:
A five-year multiple entry visa is available to entrepreneurs with a previous project worth Dh0.5m or those with the approval of an accredited business incubator in the UAE.
Specialists
Expats with specialised talents, including doctors, specialists, scientists, inventors, and creative individuals working in the field of culture and art are eligible for a 10-year visa, given that they have a valid employment contract in one of these fields in the country.
Outstanding students:
A five-year visa will be granted to outstanding students who have a grade of 95 per cent or higher in a secondary school, or those who graduate with a GPA of 3.75 from a university.
Retirees:
Expats who are at least 55 years old can obtain a five-year retirement visa if they invest Dh2m in property, have savings of Dh1m or more, or have a monthly income of at least Dh20,000.
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
Company%20Profile
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It’ll be summer in the city as car show tries to move with the times
If 2008 was the year that rocked Detroit, 2019 will be when Motor City gives its annual car extravaganza a revamp that aims to move with the times.
A major change is that this week's North American International Auto Show will be the last to be held in January, after which the event will switch to June.
The new date, organisers said, will allow exhibitors to move vehicles and activities outside the Cobo Center's halls and into other city venues, unencumbered by cold January weather, exemplified this week by snow and ice.
In a market in which trends can easily be outpaced beyond one event, the need to do so was probably exacerbated by the decision of Germany's big three carmakers – BMW, Mercedes-Benz and Audi – to skip the auto show this year.
The show has long allowed car enthusiasts to sit behind the wheel of the latest models at the start of the calendar year but a more fluid car market in an online world has made sales less seasonal.
Similarly, everyday technology seems to be catching up on those whose job it is to get behind microphones and try and tempt the visiting public into making a purchase.
Although sparkly announcers clasp iPads and outline the technical gadgetry hidden beneath bonnets, people's obsession with their own smartphones often appeared to offer a more tempting distraction.
“It's maddening,” said one such worker at Nissan's stand.
The absence of some pizzazz, as well as top marques, was also noted by patrons.
“It looks like there are a few less cars this year,” one annual attendee said of this year's exhibitors.
“I can't help but think it's easier to stay at home than to brave the snow and come here.”
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
The Uefa Awards winners
Uefa Men's Player of the Year: Virgil van Dijk (Liverpool)
Uefa Women's Player of the Year: Lucy Bronze (Lyon)
Best players of the 2018/19 Uefa Champions League
Goalkeeper: Alisson (Liverpool)
Defender: Virgil van Dijk (Liverpool)
Midfielder: Frenkie de Jong (Ajax)
Forward: Lionel Messi (Barcelona)
Uefa President's Award: Eric Cantona
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
