The seasonally adjusted IHS Markit Dubai Purchasing Managers' Index rose above the 50.0 no-change mark in December

A strong rise in business activity and a faster increase in new work have prompted Dubai's non-oil private sector businesses to return to growth at the end of 2020, according to the latest Purchasing Managers' Index (PMI) data from IHS Markit.

However, employment numbers continued to fall as expectations for 2021 were still subdued.

The seasonally adjusted IHS Markit Dubai Purchasing Managers' Index (PMI) rose above the 50.0 no-change mark in December, posting 51.0 (from 49.0 in November) to indicate a modest expansion in the non-oil economy, and the first seen for three months.

Non-oil private sector businesses in Dubai saw a renewed fall in activity in November, as the impact of COVID-19 appeared to worsen amid rising global cases.

Cost pressures were weak in December, supporting a further drop in selling prices, albeit at the slowest rate since May. The improvement in the headline PMI was largely driven by a sharp rise in business activity in December, after Dubai non-oil firms curtailed output midway through the final quarter. The rate of expansion was the second-quickest throughout 2020, bettered only by July's uptick, IHS Markit noted.

David Owen, Economist at IHS Markit, said: "An increase in output and new orders led to a renewed improvement in the health of the Dubai non-oil sector in December, shown by the headline PMI rising back above the 50.0 neutral mark. At 51.0, however, the index signalled only a slight expansion in Dubai's economy, as falling employment, lower stocks of purchases and shorter delivery times all acted as drags on the headline reading."

Firms related the rise in output to higher sales during the month, which increased at the strongest rate since September.

According to the IHS Markit survey, there were renewed expansions in new work across the travel and tourism and construction sectors, but growth was quickest in the retail and wholesale category.

Output expectations for 2021 returned to positive territory in December, after firms gave a negative forecast in November for the first time since sentiment data were collected in April 2012. That said, the overall outlook remained subdued, with many respondents expecting output to remain unchanged by the end of 2021.

"Looking ahead, firms continued to present a highly subdued outlook for business activity in December, despite some confidence that the confirmed

effectiveness of COVID-19 vaccines should help a global economic recovery in 2021," Owen said.

Some survey respondents were skeptical of an economic recovery in the near-term due to the continued impact of COVID-19 on business turnover.

"Businesses noted that the after-effects of the pandemic will continue to be felt across the non-oil sector, particularly as hiring remains weak and containment measures continue to stem export demand," he added.

 source: zwaya

Dubai Chamber’s largest sustainability conference brought together public and private sector stakeholders to discuss strategies for surviving and thriving sustainably.

Dubai, UAE: Businesses in the UAE must prioritise sustainability and make it an integral part of their strategies as they tackle new challenges and prepare for the post-pandemic recovery, industry experts said during the Dubai Dialogue 2020.

The annual conference, recently hosted virtually by Dubai Chamber of Commerce and Industry, examined several key sustainability and CSR trends and issues reshaping the global business landscape, as well as practical strategies and valuable insights shared by leading public and private sector organisations and stakeholders in the UAE.

Presentations and discussions during the event highlighted the business benefits of adopting sustainability as a strategy, tool and mechanism that can be used to ensure resiliency and competiveness, while boosting organisations’ triple bottom line of people, planet and profits.

During his opening remarks, Dr. Belaid Rettab, Chief Economist Senior Director, Economic Research & Sustainable Business Development Sector, Dubai Chamber, said Dubai Dialogue is the largest conference organised by Dubai Chamber dedicated to CSR and sustainability matters, describing it as an ideal platform for industry experts to share knowledge and best practices in this area.

This year’s Dubai Dialogue was of particular importance, he explained, as discussions delved into timely issues and new challenges created by Covid-19, as well as opportunities emerging in a changed business landscape.

Strong interest and participation in the conference reflects a growing awareness of the importance of CSR and sustainability in enhancing business strategies and fostering innovation, he said, adding that the Centre for Responsible Business – since its establishment in 2004 – has played a crucial role in promoting responsible business practices and offering guidance to companies.

Prof. Vijay Pereira, Associate Professor of Strategic and

International Business Khalifa University, UAE, noted that the business environment has changed in an unprecedented way and many of the successful conventional ways of doing things should be revised.

He highlighted the role technology is expected to play in the post-Covid-19 era, and stressed the importance of integrating employee health and well-being in future sustainability strategies.

For his part, Martin Bradley, Chief Financial Officer, Dulsco LLC, spoke about how sustainability helps businesses create value and benefit from competitive advantages, said more businesses should look at Covid-19 as an opportunity to drive organisational change and become more sustainable and responsible.

Ibrahim Al Zubi, Chief Sustainability Officer, Majid Al Futtaim elaborated on how Majid Al Futtaim successfully embedded net positive environment strategy as one of its core business objectives. He said sustainability is not a burden or a cost but rather a factor that can create new value for organisations.

Steve Burnell, Managing Director, School Transport Services, said it is more important than ever before for organisations to develop favourable people policies, responsible processes and sustainable products.

Business with a short-term view may face long-term challenges, he explained, adding that networking, communication and listening are also key to addressing environmental and social challenges.

For his part, Dr. Kamel Mellahi, Senior Manager at Dubai Chamber’s Centre for Responsible Business, said sustainability, business continuity and competitiveness are inextricably linked and must go hand in hand.

Sustainability, he noted, is more than just good business ethics but a key component of any resilient business model, and advised businesses to make and keep sustainability a top priority during Covid-19 and beyond.

source: dubaichambe

Fetchr secured at least $15 million in fresh funding to expand in Saudi Arabia as part of a turnaround plan that saved the Dubai-based courier app from collapse.

The latest financing round, which still needs shareholders’ approval, could see pledges increase to as much as $25 million, according to documents seen by Bloomberg. The commitments are being made by venture capital firm BECO Capital, Saudi Arabia’s Tamer Group and French shipping company CMA CGM SA, the documents show.

Fetchr’s interim Chief Executive Officer Mazen Mamlouk confirmed the details of the financing round.

The company, which offers delivery and logistics services to e-commerce firms, late last year had to consider selling the business or filing for bankruptcy due to a “rapidly diminishing” financial performance. It was able to raise $10 million in bridge finance, which diluted existing shareholders to almost zero, according to a letter to investors seen by Bloomberg in December.

One of Middle East’s Largest Startups Narrowly Averts Collapse

Since then, the company has brought in new management, reduced the rate at which it burns cash and closed operations in Jordan, Bahrain and Oman, according to the latest documents. It also cut about 1,230 jobs.

Mamlouk will soon pass the reins to Hussein Wehbe -- the former managing director of United Parcel Service Inc.’s Middle East business - but will remain as an adviser with Fetchr, he said by phone.

Representatives for BECO, CMA CGM and Tamer Group didn’t immediately respond to emails seeking comment.

Fetchr, once one of the rising stars of the Middle East’s nascent startup scene, was valued at almost $300 million in a 2017 fund-raising round. Silicon Valley investors such as New Enterprise Associates, Nokia Oyj’s venture capital arm and Winklevoss Capital were among its backers.

Fetchr’s turnaround is overseen by prominent businessmen such as Iyad Malas, the former chief executive officer of Majid Al Futtaim, Gate Capital founder Munther Hilal and Hussein Hachem, who led logistics firm Aramex for five years.

source: bloomberg

Over past few days, Dubai began to reopen tourism facilities such as holiday homes, beaches, hotels etc.

Dubai stays among the top five destinations for most of the people who are looking at their next holiday as restrictions on air travel ease and airlines resume regular flights, said a senior official.

"World tourism has witnessed an unprecedented negative trend, not seen since World War II.

These types of shocks are something that have not been planned by tourism sector globally.

We need to work hard to bring back confidence to the sector. However, there are positive indicators. We have seen a lot of online travel agency and other travel sites showing that demand for Dubai is very high and we are among the top five cities that people are looking at as their next holiday destination," said Helal Saeed Almarri, director-general of Dubai Tourism.

"We are definitely ready and prepared for the next stage and are ready to welcome guests."

He praised the crisis committee for having the highest level of Covid-19 test as well as the best level of healthcare and attention given to travel ecosystem to make sure that right system is in place so that people can enjoy.

Almarri said no date has been announced yet for the opening up the emirate for tourists but the complete reopening of the tourism sector will happen after Covid-19.

Over past few days, Dubai began to reopen tourism facilities such as holiday homes, beaches, hotels etc.

"While areas which are still pending such as spas, pools and kids play areas still need time before they open up," he said, adding that "Dubai has the highest global standards of safety and security across all stages of travel reopening.

There is going to be reopening of markets not just based on when we are ready but also when everybody else is also ready to open their markets," he added.

While highlighting the trends in aviation industry, he noted that group travel is likely to decline and there will be more individual travellers, especially in places like China and Russia. 

source: khaleejtimes

New FDI law and economic incentives help increase foreign capital inflows by 135%

Dubai attracted foreign direct investment (FDI) of Dh46.6 billion in the first half of 2019, up 135 per cent on the same period last year, according to the Dubai Media Office.

In a statement published at the start of Dubai Investment Week, the Dubai government said it ranked third in the world for attracting FDI, both in terms of the capital value flows and number of greenfield projects.

“A new FDI Law, numerous economic incentives and concerted efforts to deepen cooperation and partnerships with the private sector have all contributed to Dubai’s record FDI achievements,” said Sami Al Qamzi, director-general of Dubai Economy.

“The FDI results of the first half of 2019 is a testament to the Dubai economy’s competitiveness and resilience in the face of global shifts and challenges that have adversely affected the flows of FDI globally in recent years,” he added.

In the first half of 2019, Dubai attracted 257 FDI projects with 61 per cent of total projects being greenfield, 27 per cent new forms of investment, 6 per cent reinvestments, 5 per cent made via mergers and acquisitions, and the remaining 1 per cent through new joint ventures.

In terms of investment sources, 34 per cent of the capital invested came from the US, 28 per cent from China, 11 per cent from the UK, and 5 per cent from both France and Singapore, according to the Dubai FDI Monitor.

These five countries together accounted 83 per cent of total FDI capital flows into Dubai in the first half of 2019.

Notable FDI deals recorded in Dubai during the first half of 2019 include Uber's acquisition of Careem and Mastercard's investment in payment processor Network International.

Around Dh13bn of capital flowed in through such investments.

Major FDI projects announced during the first six months included Zhejiang China Commodities Group's investment in the new ‘Merchant Market’ joint venture and China Co-Op Group's investment in a new food processing plant in Dubai.

Both projects amount to Dh12.5bn in greenfield FDI.

There were also increased corporate reinvestments in Dubai, such as HSBC's new Middle East headquarters worth an estimated Dh918 million, Siemens’ new Solar Hydrogen Facility worth Dh248m and the BMW Training Centre project worth Dh29m, among others.

The FDI flows and rankings results were revealed by Dubai Investment Development Agency (Dubai FDI), which is part of Dubai Economy, the emirate's economic development arm.

source: thenational

This new record represents a growth of 135% compared to the same period last year, Sheikh Hamdan, Crown Prince of Dubai and Chairman of Dubai Executive Council, announced.

The Emirate of Dubai has witnessed exceptional growth during the first half of 2019, with foreign direct investments, FDIs, reaching a record-breaking AED46.6 billion, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, announced on Sunday( 29 october).

This new record represents a growth of 135 percent compared to the same period last year, His Highness added, noting that this FDI growth within the emirate is "a testament to global confidence in Dubai's economy." During the first half of 2019, Dubai has continued to progress in global rankings of the most attractive cities for FDI, ranking third in the world in attracting FDI, in terms of both capital flows and the number of greenfield projects.

"Dubai is among the top three global FDI locations thanks to the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, who created a global investment environment in Dubai that keeps pace with the aspirations of investors, entrepreneurs and technology shifts in the region and the world," Sheikh Hamdan bin Mohammed continued.. The FDI flows and rankings results were revealed by Dubai Investment Development Agency, DUBAI FDI, an agency of Dubai Economy, based on the Financial Times’ fDi Markets, a global online platform that monitors data on capital flows and greenfield FDI projects around the world and the ‘Dubai FDI Monitor’ data.

His Highness pointed out that Dubai has been particularly successful in attracting advanced technology and specialised talent in the first half of 2019.

"This is a proud achievement for Dubai. With the growth of talent and technology, Dubai will accelerate its drive to become the smartest and most sustainable city of the future.

" According to ‘Dubai FDI Monitor’ data, FDI projects with High and Medium Technology component reached 47 percent of total FDI projects in the first half of 2019, based on the Organisation for Economic Cooperation and Development, OECD, classification criteria.

Moreover, FDI projects with a high and medium technology component were at the forefront of creating new jobs with a 48 percent share of the 24,294 new jobs created by FDI projects in the first half of 2019.

Sheikh Hamdan noted that according to the Financial Times’ fDi Markets data, the emirate ranking ninth globally in job creation through FDI.

"This achievement will further strengthen Dubai’s position as one of the most attractive destinations for promising talent, thanks to our leadership’s initiatives to develop legislative frameworks that enhance the role of talent in building a knowledge and innovation economy in Dubai and the UAE," he concluded.

source: zawya

DMCC – the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise – has completed three roadshows this month visiting Sweden, the United Kingdom and China highlighting the opportunities available through DMCC for companies seeking expansion to global markets through Dubai.

DMCC’s senior management visited the cities of Gothenburg and Stockholm in Sweden for the first time with its Made for Trade Live international corporate roadshow. The events were held in partnership with the Swedish Trade and Investment Council (‘Business Sweden’), and with the support of the United Arab Emirates Embassy in Sweden, and the Swedish Embassy in the UAE.

80 Swedish business leaders and senior delegates attended the events, and discussed wide ranging issues such as Dubai’s economic growth, governance, regulation and trade; as well as DMCC’s infrastructure, products and services, and the positive impact Expo 2020 Dubai will have on the city’s local economy and the opportunity on offer to foreign companies.

The next stop on the Made for Trade Live roadshow was London. Staged in partnership with the London Chamber of Commerce and Industry, over 100 leading names of British business gathered in the room to discuss the opportunities for growth presented by Dubai.

DMCC’s position as a commercial hub and gateway to global trade flows was the focus of the discussion, especially within the context ongoing developments connected to Brexit.

To date, there are over 1,400 British firms registered with DMCC.

“Our mandate at DMCC is to drive new trade flows to Dubai.

These roadshows enable us to do just that by communicating the Dubai story and highlighting DMCC’s commercial appeal to foreign businesses. Our first visit to Sweden was very successful, and we look forward to working more closely with the Swedish business community and building partnerships in a new market,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC.

 “With bilateral trade between the UAE and the United Kingdom expected to reach approximately Dhs 121 billion by 2020, it was important to visit London again this year.

DMCC offers British firms an unprecedented opportunity to expand their enterprise, and the economic impact of Expo 2020 Dubai should be appealing to all ambitious companies looking to do business in this part of the world,” he added.

 Peter Bishop, Deputy Executive Chief, London Chamber of Commerce and Industry, added: “The London Chamber of Commerce and Industry was delighted to partner with DMCC on this project. Representing the interests of London businesses, it made sense for us to support the latest Made for Trade Live roadshow and communicate the tremendous opportunity in Dubai for British firms.

Our members represent some of the finest businesses in the capital, and I was encouraged to learn of the support offered by DMCC to foreign companies seeking to do business in the Middle East, Africa and Asia and beyond.” Feryal Ahmadi, Chief Operating Officer at DMCC was invited by the Chinese Government to speak at the International Forum on Free Trade Zones Development, a two-day forum in Hainan focused on promoting free trade.

The event was organised by the China Council for the Promotion of International Trade (CCPIT) and The People’s Government of Hainan Province.

“DMCC has become a commercial hub and a critical connection point for trade ties between the UAE and China. Committed to driving the next phase of commercial growth between the two countries, DMCC has embarked on a comprehensive strategy to attract Chinese firms to DMCC.

We have launched a range of bespoke Chinese-language services that have seen a rise of Chinese companies set up in Dubai and register with DMCC. This is only the beginning and we look forward to creating more opportunity for Chinese firms in Dubai which will in turn, support China’s Belt and Road Initiative,” said Feryal Ahmadi, Chief Operating Officer, DMCC.

Since its inception, DMCC attracted over 3,000 businesses from 17 cities around the world to its international roadshows. The programme brings together business leaders interested in expanding their home base and offers them insights into the commercial appeal of Dubai and the opportunities it offers for growth in the region and beyond.

DMCC Headquartered in Dubai, DMCC is the world’s most interconnected Free Zone, and the leading trade and enterprise hub for commodities.

Whether developing vibrant neighbourhoods with world-class property like Jumeirah Lakes Towers (JLT) and the much-anticipated Uptown Dubai, or delivering high performance business services, DMCC provides everything its dynamic community needs to live, work and thrive. Made for Trade, DMCC is proud to sustain and grow Dubai’s position as the place to be for global trade today and long into the future.

Source: .Gulftoday

Siemens scores six major cities, including Dubai, on their readiness for digitisation and their potential to become smart cities

Dubai is making excellent progress in its drive to become a smart city which embraces digitalisation and develops new ways of living, working and interacting, according to Siemens.

Its Atlas of Digitalisation report is based around the interconnected themes of Expo 2020 Dubai – mobility, sustainability and opportunity – and assesses how the fourth industrial revolution has already impacted urban life around the world, and the potential it could have in the future.

Data from 21 indicators has been analyzed by Siemens together with Signal Noise, part of the Economist Group, in Dubai, Los Angeles, London, Buenos Aires, Taipei and Johannesburg to produce a digital readiness score.

Dubai gained scores of six out of 10 for both readiness and potential. This compared to London which scored eight for readiness but only three for potential while Los Angeles scored seven and three respectively, Taipei scored six and three, Buenos Aires scored four and four and Johannesburg scored two and six.

The analysis recognises Dubai’s advanced implementation of digital technologies in areas such as smart metering, online connectivity, mobility and smart government, and initiatives such as Smart Dubai which are supporting its ambition to be the happiest city on Earth.

It also identifies potential for digitalisation to positively impact areas such as renewable energy, which Dubai is already addressing via its clean energy strategy.

The analysis considers areas such as smart electricity and transport systems, internet connections and digital governance services.

The score reveals the current level of maturity of each city’s digital infrastructure, and its preparedness for a connected future.

“Each city must address its own unique mix of challenges and opportunities by embracing digitalization; the key to sustainable, livable future cities,” said Dietmar Siersdorfer, CEO, Siemens Middle East and UAE.

“The Atlas of Digitalization gives us an all-important understanding of the current status of digitalization in cities around the world, and the data tells us Dubai has already made excellent progress in key areas. Dubai is on a successful path thanks to strong ambition and visionary leadership, and we hope the Atlas will inspire new ways of thinking to shape the smart cities of tomorrow, and realize the global potential of City 4.0.”

The analysis also takes into account areas such as innovation, greenhouse gas emissions and time spent in traffic to give the cities a Digital Potential Score, indicating where there is opportunity to grow digital capabilities to transform society and economy.

While each city is unique, they all share one characteristic - their ingenuity in using digital technologies to make infrastructure more efficient and productive, and to address challenges such as air pollution, congestion, population growth and natural hazards, Siemens said.

Source: arabianbusiness