The non-oil sector will continue to grow, rising from 1.3% last year to 1.6% in 2019 and 3.0% the year after.

The UAE's real GDP growth is projected to grow faster next year at 2.5 per cent on the back of stronger growth of the non-oil sector, according to International Monetary Fund's (IMF) latest report.

The IMF had earlier revised down growth forecast for 2019 to 1.6 per cent from its previous forecast of 2.8 per cent.

Jihad Azour, director for Middle East and Central Asia Department at IMF, said the UAE's nominal GDP is expected to slip from $414.2 billion in 2018 to $405.8 billion this year.

But it will recover again next year to $414 billion in 2020 on the back of non-oil sector growth.

Importantly, the non-oil sector will continue to grow, rising from 1.3 per cent last year to 1.6 per cent in 2019 and 3.0 per cent the year after.

But the oil GDP growth is forecast to slow down from 2.8 per cent in 2018 to 1.5 per cent this year. And it will further decline to 1.4 per cent next year when Expo-led non-oil sector will give fillip to the non-oil sectors such as tourism, aviation, hospitality among other sectors.

IMF predicts that the UAE's oil output will continue to increase from 3.02 million barrels per day last year to 3.10m bpd in 2019 and 3.17m bpd the year after.

He called on the regional governments to diversify their revenues through tax and non-tax sources.

For GCC, the GDP grew 2.0 per cent in 2018 but it slowed down to 0.7 per cent in 2019. It is a cut 1.4 per cent from its April 2019 forecast. For 2020, GCC is projected to grow 2.5 per cent, a cut of 0.3 per cent from its April 2019 forecast.

source: khaleejtime

The UAE has ranked first in the Arab region according to the 2019 Government Electronic and Mobile Services, GEMS, Maturity Index.

Issued by the United Nations Economic and Social Commission for Western Asia, ESCWA, the indicator is a measuring tool of progress at the national level in achieving transition to digital services. It was carried out across 13 countries including, the UAE, Saudi Arabia, Syria, Oman, Palestine, Iraq, and Lebanon, amongst others.

The GEMS Maturity Index is measured across three sub-indices - Service Availability and Sophistication, Service Usage and Satisfaction, and Public Outreach.

According to the ESCWA report, the UAE achieved a 90 percent score in the 'Service Availability and Sophistication' category. This category uses various metrics to provide insights on what government services are available online or via mobile applications, and also measures accessibilty of government data via these channels.

Despite scoring 79 percent in the 'Public Outreach' category -- which determines what governments have done to make citizens aware of digital services in vital sectors -- the UAE scored 51 percent in the 'Service Usage and Satisfaction' index. The latter measures how frequestn government digital services are used, as well as end-user satisfaction with the digital service.

The GEMS index is measured across 84 core services. According to ESCWA, these services offer a fair representation of government services and illustrate the potential consequences if they are not provided effectively. Core services range across the health, education, work, transportation, tourism and social welfare sectors, among others.

Out of the 84 core services sectors, the GEMS Index report revealed that the UAE has a total of 70 that provide electronic services. It noted that e-Government services could be improved in the judicial and immigration services mechanisms -- each of which registered only two e-services provided within the country.

Commenting on the results, Hamad Obaid Al Mansoori, Telecommunications Regulatory Authority, TRA, Director-General, said, "Smart and advanced services are the key to customer happiness, therefore, we develop our government services in the UAE, inspired by the directives of our wise leadership, which emphasise on people as the goal and aim of the overall process of digital transformation."

"Achieving the first position in GEMS Maturity Index is the result of the collective efforts of the UAE Government towards full digital transformation," he added.

The Index allows to track the progress in the transition to e-channels for government service provision, by annual comparison of the national performance.

Salem Al Housani, Acting Deputy Director-General for Information an e-Government Sector, said, "This achievement comes one year after announcing the TRA as the entity responsible for smart government and digital transformation of the UAE’s model of digital government maturity."

"The UAE model of digital government maturity is a unified reference for electronic/digital government in the UAE, which guides the work on the various pillars of digital transformation, and measures the capability to create a digitally mature government and maintain its stability. TRA has launched the Digital Government Maturity Model to achieve the National OSI, and to reach the first position globally in OSI," he added.

According to the TRA, the UAE Government provides about 3,730 federal and local online services through its official portal. It also provides more than 270 procedural services at the federal level.

source: wam

Pension funds are the main pillar to manage assets in the advanced world

The UAE is likely to attract further overseas investments despite the obstacles facing foreign investors in the country, senior portfolio manager at Emirates NBD Richard Lee told Mubasher.

Lee also suggested a raft of solutions to overcome these challenges and provide a safe environment for long-term foreign investments.

Most of the GCC stock markets, mainly in the UAE, have joined or are on the verge of being included in the main indices, he indicated.

This step will help in attracting foreign investors and boosting the local assets, the bank’s senior portfolio manager said.

The markets are expected to benefit from overseas inflows related to the JP Morgan Emerging Markets Bond Global Index, he added.

He noted that pension funds are the main pillar to manage assets in the advanced world.

The absence of public or private pension plans in the UAE and the GCC region in general throws sand in wheels of assets management growth, Lee said.

He also highlighted that the restrictions imposed on foreign ownership and the government’s holding of assets have led to a lack of initial public offerings (IPOs).

Restrictions on foreign investors have reduced the trading volume in the local markets, he noted, projecting a positive outlook in the long-term for assets management.

The recently upgraded stocks in the JP Morgan EM index are likely to attract foreign liquidity until the end of the year.

Source: zawya

Tweets from Sheikh Mohammed bin Rashid state that there are around 6,800 investors eligible for the first batch of visas

The United Arab Emirates has launched the permanent residency system for investors and exceptionally skilled foreigners, the ruler of Dubai and prime minister of the UAE announced.

The permanent residency visa named the ‘Golden Card’ will be granted to investors and exceptionally competent individuals in the fields of medicine, engineering, science, and all arts, according to the official twitter of account of Sheikh Mohammed bin Rashid Al Maktoum.

The first batch of those eligible for permanent residency for a "Golden Card" in the UAE reached 6,800 investors, whose total investments reach 100 billion UAE dirhams ($273 million), according to one Arabic tweet by the ruler of Dubai.

Another tweet added that the permanent residency will be granted to those who contribute positively to the success story of the UAE.

”We want them to be permanent partners with us in our journey. All residents in the UAE are our brothers and part of our great family in the UAE,” the Arabic tweet said.

According to Anir Chatterji, Middle East immigration & employment leader at PwC Legal, the UAE has been at the forefront of driving change to the existing immigration structure (which is broadly the same across the GCC) and for opening opportunities for highly-skilled professionals to benefit from longer-term residency - thereby offering these individuals greater investment security and stability.

“This new development of permanent residency is an extension of this policy and it is likely to be viewed positively by the ‘in-scope’ individuals and business community at large as it will open the doors to more foreign direct investment and, in turn, sustained economic activity and development,” he said in emailed comments to Zawya.

“Many expatriates call the UAE home and this new development will allow individuals to stay in the UAE for a longer period, which is welcome news for investors, entrepreneurs, specialised talents, researchers, and outstanding students (and their dependents),” he added.

The announcement follows the approval of the Saudi Cabinet last week for granting ‘green card’-style visas for highly-skilled foreigners and owners of capital funds with other sets of benefits as part of a ‘Privileged Residence System.

“The recent announcement in Saudi didn’t necessarily have a direct impact on this. That being said, there has been a drive to standardise a number of initiatives in the immigration space in the GCC countries, and to continue to find innovative ways to attract sustained economic investment activity and prosperity,” Chatterji said.

“This means the opening up of the historically static immigration regime is a key enabler for facilitating such change, and we consider that the recent announcement in the UAE is a welcome step for the business community at large,” he added.

Source: ZAWYA

People can do more than just chat on messaging app, as first 'chat bank' service rolls out.

Dubai: So much has changed in the way people communicate and share updates since the introduction of social media and instant messaging apps. Now, the way people bank is changing, too.

One of the leading financial institutions in UAE has rolled out for the first time a chat banking solution, enabling savers and banking customers in the country to execute financial transactions on WhatsApp.

Emirates NBD confirmed on Sunday that its customers can now “chat bank” via the instant messaging app, said to be a first in the Middle East region.

The new service seeks to tap the growing population of consumers who bank via the internet on a regular basis.

The bank said it has seen a rapid increase in digital transactions, with over half of its customers actively using mobile and online banking The latest innovative solution is made possible through Infobip, an easy-to-use secure channel that lets people do banking transactions without having to log in to their online accounts or walk into a physical branch.

With the “chat bank” service, customers, particularly those who are constantly on their mobile phones, can now check via WhatsApp their account balances, the last five transactions of their accounts or credit cards and last credit-card mini statements.

They can also temporarily block or unblock cards and request for new chequebooks or the latest foreign exchange rates.

Lest users are afraid the transaction can easily get hacked into by fraudsters, the bank assured that all messages on its “WhatsApp Business” account are encrypted.

To ensure the communication is secure and official, customers only need to watch out for the green badge next to the bank’s name in the chat window.

And what’s more, customers can bank via WhatsApp anytime, as it’s available 24/7.

“We believe the new offering will complement our existing ddigital banking channels and offer security along with the simplicity and convenience of instant responses, 24/7,” said Abdulla Qassem, group chief operating officer of Emirates NBD.

“WhatsApp is a simple, reliable and private way to talk to anyone in the world, which will lend further convenience to banking with Emirates NBD," added Suvo Sarkar, senior vice president, head of retail banking and wealth management at Emirates NBD.

How to subscribe?

Customers are requested to SMS ‘WhatsApp’ to 4456 using their registered mobile number, or alternatively, they can subscribe through mobile or online banking, to start banking via WhatsApp.

Source: gulfnews

Investors can get a five-year residence visa when they invest in a property worth at least $1.36mln.

The UAE offers plenty of opportunities to foreigners who are willing to invest in real estate sector to secure a long-term visa following a reform process initiated by the government last year.

Property investors can invest in more than 40 communities across the UAE, mainly in Dubai, to secure a long-term visa and better returns on their investment.

Majority of foreigners prefer to invest their money in residential properties, but real estate experts suggest that commercial properties can also offer strong returns.

As per the new UAE regulations, property investors can get a five-year residence visa when they invest in a property worth at least Dh5 million. The ruling applies both to secondary and new properties above Dh5 million and Dh10 million.

Manika Dhama, head of Strategic Consulting and Research at Cavendish Maxwell, said residential properties in Dubai, particularly in branded or serviced apartment categories, above Dh5 million offer investment opportunities for those seeking a long-term visa under new regulations.

"Certain villa or townhouse communities in Abu Dhabi and Northern Emirates like Ras Al Khaimah also offer such investment opportunities," she added.

Dhama said requirements for these new long-term visa currently state cash-only investments. Therefore, more clarity is required on how this is applicable to single units or entire buildings, land, etc, she said.

"Bulk residential units in higher yield areas like International City may prove to be a better investment option in the Dh5 million and above category, particularly for those with a higher risk appetite, than a single villa where yields tend to hover around 4-5 per cent," said Dhama.

"Indians, Pakistanis and Britons will remain top 3 investors seeking long-term visa through property investment," she said while referring to majority of investment in Dubai's property sector coming from India, Pakistan, Britain and Saudi Arabia.

Leading communities

There are 31 communities across the emirate of Dubai where Dh5 million worth of investment can get a 5-year visas, according to data provided by Cavendish Maxwell. 

Al Barari, Al Furjan, Arabian Ranches, Arabian Ranches 2, Bluewaters Island, Business Bay, City Walk, Culture Village, Damac Hills, Downtown Burj Khalifa, Dubai Harbour, Dubai Marina and Dubai Science Park (DuBiotech), are included among those communities.

Other areas where investors can invest for long-term visas are: Dubai Sports City, Emirates Living, Jumeirah Beach Residence, Jumeirah Gold Estates, Jumeirah Islands, JLT, Jumeirah Park, Living Legends, Meydan City, Mohammed bin Rashid City, Motor City, Palm Jumeirah, Pearl Jumeirah, Dubai Creek Harbour, The Villa, Zabeel (WTC Residence), World Islands and Jumeirah Bay Island.

While the eight communities in Abu Dhabi for long-term visa are Saadiyat Island, Nurai Island, Al Reem Island, Marina Village, Al Raha Gold Gardens and other communities in Al Raha area including Al Zeina, Al Manara and Al Bandar.

Taimur Khan, head of research for Middle East at Knight Frank, said majority of the properties above Dh5 million price range are villa properties in locations such as Emirates Hills, The Palm Jumeirah, Emirates Living among others.

In addition, there are also a number of luxury apartments which are available in Dubai's established prime area such as Downtown Dubai and Palm Jumeirah. "We are also seeing new offerings come to the market in Dubai Marina, Bluewaters, Jumeirah and City Walk."

In Abu Dhabi, majority of residential properties above Dh5 million are villas on Saadiyat Island while some prime apartments are available above this price point on Saadiyat Island, Yas Island and Al Raha Beach.

"Whilst there are other locations where properties above this value are available, the aforementioned locations are where non-GCC national are able to buy property," he said.

He noted that investors' focus will be on properties which are not only of great quality but are also part of a community.

Restoring confidence

Fadi Nwilati, CEO, Kaizen Asset Management Services, stated that the UAE's long-term visa strategy has reinforced confidence among expatriates and given a greater feeling of permanence in the UAE.

"We have seen a direct impact on foreign investment increase outside of the GCC, especially from India and Pakistan. As an organisation, we have in particular discussed this topic with business owners, since business owners have started expressing interest to buy rather than rent properties. There is a lot of excitement in the market, but it is far too early to see tangible results. We are looking forward to seeing the tangible impact in the next three years," Nwilati said.

"There are currently around 5,500 properties valued at over Dh5 million on the listing portals. Residential investors can look at areas like Arabian Ranches 2, Dubai Hills, District One, Tilal Al Ghaf, Al Barari and Palm Jumeirah. On the higher end, investors can look at Palm Jumeirah, Emirates Hills, Royal Atlantis residences and Opera District to name a few," Nwilati added.

Jake Wright, investment director, Smart Crowd, believes that the long-term visas will provide individuals greater comfort around their mid- to long-term future, allowing them to better plan their lives within the emirate.

"Working on a two- to three-year visa may deter people from making key life decisions i.e. shall I buy a property to live in, shall I invest some of my savings or even smaller purchases such as furniture etc. All of which a key factors in creating a thriving economy," said Wright.

Commenting on commercial properties, Andrew Love, partner and head of Commercial and Investment Agency at Cavendish Maxwell, said prime office assets in areas of Dubai like Downtown, Internet City or JLT, with good tenants and long-term leases, may generate a yield of up to seven per cent. Certain multi-let industrial and logistics assets in areas like DIP might provide 10-11 per cent in returns.

"Often, these investments start at Dh12 million, with typical transaction values between Dh50 million and Dh100 million," Love said.

He said other commercial assets like retail community malls may generate 8-12 per cent, with investments ranging from Dh15 million to Dh200 million. Labour accommodations often offer the best returns, more than 15 per cent, but also carry the most investor risk due to high tenant turnover and cyclical rents.

Source: zawya

Shailesh Dash, chairman of Dubai-based, Gulf Pinnacle Logistics

The Expo 2020 Dubai event has already spurred business opportunities for various sectors, with logistics being one of the prime gainers, say experts.

With less than 19 months left for the inauguration of the Expo 2020, its organisers have further speeded up the pace of allocating contracts to thousands of local and foreign firms to ensure timely preparation of the event, which is set to be the largest of its kind in the Arab World.

So far Expo 2020 Dubai has awarded 56 per cent of contracts to small and medium-sized enterprises.

Meanwhile, more than 26,000 companies from 150 countries have recently applied to be involved in the event.

The 173-day milestone Dubai exhibition expects to welcome 25 million visitors and more than 200 international participants from 190 countries.

"When foreign companies get contracts in the UAE, they need professional support of logistics specialists with wide local and international network to move their set up and equipment to the Gulf country.

Contractors of Expo 2020, which is extraordinarily big in magnitude, therefore rely on reputable and experienced logistics players to become their strategic and operational partners.

After all, freight forwarders do much more than moving containers. We guide organisers, contractors and exhibitors throughout different customs procedures, time frames and operational complexities," said Shailesh Dash, chairman of Dubai-based, Gulf Pinnacle Logistics.

Rodney Viegas, CEO of AbdulMuhsen Shipping and So Safe Logistics, said: "Thanks to the increased momentum of Expo 2020 preparations, the logistics sector in the UAE - which according to the 2019 Agility Emerging Markets Logistics Index ranks first in the region and third globally - is witnessing a business boom, when other sectors are observing slow growth.

Expo 2020 is expected to drive the logistics and supply chain segment even further and cement the UAE's position as a global leader in logistics.

With our strong global agent network, we are equipped to provide end-to-end logistics solutions to fulfil the client's comprehensive list of logistics requirements on time."

Source: khaleejtimes

Telco's chief technology officer says 'pioneering efforts' in 5G will pave way for the 'future of connectivity'

UAE-based telecoms giant Etisalat plans to invest AED4 billion ($1.09 billion) in digital transformation, mobile and fibre networks this year, according to a senior executive.

Hatem Bamatraf, chief technology officer, Etisalat International, said the company's "pioneering efforts" in 5G will pave the way for the "future of connectivity".

Bamatraf was speaking at 5G MENA 2019 in Dubai where he highlighted Etisalat’s investments and focus on enhancing and building one of the most advanced networks in the region.

“We are stepping into an era, which marks the revolution of intelligent connectivity underpinned by ubiquitous and hyper connectivity.

This term is used to describe the powerful combination of flexible, high-speed 5G networks, the Internet of Things (IoT) and Artificial Intelligence (AI). This will have a significant and profound change on individuals, industries, society and the economy, transforming how we live and work,” he said.

Etisalat said earlier this month that its 5G network is ready, adding that the first 5G devices are likely to arrive in the UAE in June.

Bamatraf said Etisalat was the first operator to have a fully developed commercial 5G network available to provide gigabit internet services to its customers.

The network will fuel enterprises digital transformation, IoT, smart cities and the fourth industrial revolution, he noted.

He added that Etisalat’s network will also provide the most advanced digital and telecom services to Expo 2020 Dubai and its millions of visitors, supporting an expected 300,000 users on peak days.

“Etisalat’s network and infrastructure will be ready to provide the service as soon as the 5G mobile handsets are available in UAE. We are aiming to build 1,000 5G towers across the UAE during 2019 to enable 5G coverage,” he added.

With majority of 5G deployments to be implemented by 2020 globally, industry estimates indicate a projection of 1.5 billion 5G subscriptions by the end of 2024.

Source: Arabianbusiness

An affiliated associate of Emirates NBD Group, on Thursday has confirmed its plan to proceed with an initial public offering (IPO) on the London Stock Exchange (LSE).

Further announcements will be made in due course in accordance with the applicable laws and regulations, the company said in a statement.

The UAE-based payments provider intends to apply for admission of its ordinary shares to the premium listing segment of the Official List of the Financial Conduct Authority (Official List) and to trading on the LSE's main market for listed securities (Admission).

The company added that the offer will solely be comprised of existing shares to be sold by existing shareholders.

“Immediately following Admission, the Company intends to have a free float of at least 25% of the Company’s issued share capital,” the company highlighted.

The admission is expected to take place in April, Network International added. 

Later on, it is expected that the company will be eligible for inclusion in the FTSE UK indices.

The statement added that the price range of the offer and the maximum number of shares to be sold in the offer will be set in due course and contained in the prospectus expected to be published by the company in the coming weeks.

Source: Mubasher

Dubai Tourism remains focused on ensuring that the emirate becomes the most visited city in the world in line with Dubai's Tourism Strategy 2022-25.

Dubai continued to see steady growth in tourist arrivals last year on the back of its traditional markets, led by India, Saudi Arabia and the UK.

Latest data released by Dubai Tourism disclosed that overnight visitors reached 15.92 million in 2018, an increase of 0.8 per cent over the previous year. India topped with over two million visitors followed by 1.6 million from Saudi Arabia and 1.2 million from the United Kingdom.

While the number of visitors from China and Russia increased 12 per cent and 28 per cent to 857,000 and 678,000, respectively. Both the countries were fourth- and fifth-largest markets in terms of visitor arrivals in Dubai last year.

Helal Saeed Almarri, director-general of Dubai Tourism, said they remain focused on ensuring that the emirate becomes the most visited city in the world in line with Dubai's Tourism Strategy 2022-25. "Throughout 2018, we developed and deployed a custom-market specific approach to deeper penetrate our target markets," he said.

"Our strategic investments, innovative destination promotion programmes, responsive federal policy reforms, and long-term global partnerships - all backed by the tremendous support of our stakeholders across the government and private sector - continue to yield strong results as we ramp up efforts to increase Dubai's accessibility, visibility and overall appeal, minimise barriers to travel, deliver new standards in global travel experiences, and ultimately drive both first-time and repeat visitation," he added.

Germany, the United States, the Philippines, France and Italy rounded off the top 10 markets.

The number of visitors from the US grew four per cent to 656,000 while the Philippines entered into the top 10 for the first time with 387,000 guests.

Tourists from France jumped 17 per cent to 348,000. Nigeria witnessed the highest growth of 36 per cent, bringing it back into the top 29 with 185,000 Nigerians visiting the emirate last year.

According to Dubai Tourism, tourist arrivals from stronghold markets of Oman and Pakistan declined last year.

Manu Midha, regional head for the Middle East at OYO Hotels and Homes, said the tourism industry in Dubai in 2019 will be largely driven by leisure and trade tourists with India, Saudi Arabia and China driving the numbers again.

"Last year, there were over half-a-million trade visitors alone in addition to millions of leisure visitors. The third promising category would be that of medical tourism as Dubai is home to some world class hospitals. There is a lot of traction from Africa within this category," he said.

"Dubai has so much to offer every kind of traveller, whether it is theme parks or shopping the city has covered it all. Then there are investors who are looking for their second homes in the UAE. This industry will also drive the numbers as investors would like to get a feel of the destination before parking their real estate dollars. The fourth category that will drive the tourism sector would be the world of sports which will go on an overdrive in 2019."

Ammar Kanaan, group general manager of Central Hotels, sees tourist arrival growth trend to continue due to multiple attractions and demand drivers. "At the moment, there is a lot more supply coming into the market in preparation for Expo 2020 Dubai and hence, temporarily, supply is expected to exceed demand. This may put pressure on ADR and RevPAR. While some hotels might compromise on the average room rates to boost occupancy levels, others with stronger room rates will see an impact on the occupancies."

He said this year the summer season will be longer due to the advent of the holy month of Ramadan in May, which could prove challenging for business. "From September onwards, we expect the market to pick up better."

Chris Nader, vice-president at Shaza Hotels, said, Dubai is faring better by creating new demand generators in existing and new destinations.

"There is definitely room for hotels that can offer unique experiences in these new locations. Unfortunately, hotels that have no USPs will continue to suffer and reduce rates in order to maintain some market share, and this will be reflected in their negative RevPAR growth index," said Nader.

According to Dubai Tourism, there were 716 establishments across the emirate with 115,967 rooms, an increase of 8 per cent in terms of new rooms supply last year. Currently, 33 per cent of inventory is controlled by five-star hotels, 26 per cent by four-star properties and one-to-three stars command a 20 per cent share. Hotel apartments constitute 21 per cent of the total inventory.

With average occupancy reaching 76 per cent, occupied room nights were up to 30.13 million, while guests' average length of stay remained unchanged at 3.5 nights.

From a regional perspective, 21 per cent of the visitors came from Western Europe, followed by 18 per cent and 17 per cent from GCC and South Asia, respectively. North Asia and Southeast Asia, meanwhile, accounted for 11 per cent of the total.

Mena arrivals grew 10 per cent and 9 per cent from the CIS and Eastern Europe, respectively.

Source: khaleejtimes