News
UAE's new insolvency law to create a 'safe environment for personal loans'
01 Dec 2019 Written by Admin AdminThe new framework is set to encourage small and medium-sized investments, according to the MOF
With UAE Cabinet’s approval an insolvency law that regulates cases involving individuals facing financial difficulties, the legal framework is now set to better ensure the rights of both creditors and debtors, according to the Ministry of Finance.
“This law creates a safe environment for personal loans to the satisfaction of both the creditor and the debtor, as it provides the balance to ensure the rights of both creditor and debtor,” Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, told reporters in Abu Dhabi.
“The law thereby encourages increased cash flows and attracts small and medium-sized investments to the state,” he added.
These are the key details of the law, based on additional information from the Ministry of Finance:
- The new legislation is expected to make it easier for individuals to obtain loans, as there are clear and easy-to-apply rules for the collection of bad debts and rehabilitation of debtors financially.
- This improves creditor banks’ confidence in retail lending and encourages individuals to engage in calculated borrowing.
- The law ensures the protection of the debtor’s dignity as a natural person (that is, an individual, rather than a company or organization) and helps create an opportunity for them to reduce their financial burden.
- The law provides two means to address the insolvency of individuals: first, by possibly settling financial obligations, and second, through insolvency and liquidation of funds.
The debtor can file an application with the court for an opportunity to settle their financial obligations, and the court will appoint one or more experts to assist them during these proceedings.
- When preparations begin on a plan to reorganize and settle financial obligations, the settlement plan shall be voted on by the creditors.
- The debtor may choose the second option (of liquidating their funds to pay their debts) if they have stopped paying any of their debts on the due dates for more than 50 consecutive working days due to financial inability.
- In the event of liquidation of funds, a trustee shall be appointed to control and facilitate the liquidation of the debtor’s funds.
- Funds excluded from liquidation procedures are pension or social benefits provided to the debtor as well as funds required by the debtor to meet their basic needs and those of their dependents. The latter amount is specified by the court.
- The period for the execution of the financial liability settlement plan may not exceed three years from the date of the ratification of the plan by the court.
source: zawya
GCC insurance sector to reach $36bln in 2024; UAE remains biggest market
01 Dec 2019 Written by Admin AdminFrom 2013 to 2018, the GCC insurance industry grew at a CAGR of 8.9%
The GCC insurance market is projected to grow at a moderate pace of 4.3 percent compound annual growth rate (CAGR) to reach $36.1 billion in 2024 from $29.2 billion in 2018, Alpen Capital said in a report.
The outlook for the GCC insurance industry remains positive, “primarily led by a sustained economic growth, diversification of the economy, increase of the population as well as the implementation of mandatory insurance,” Krishna Dhanak, Executive Director at Alpen Capital said during a media roundtable.
From 2013 to 2018, the GCC insurance industry grew however at a higher CAGR of 8.9 percent from $18.4 billion to $28.2 billion, the Alpen report showed.
The market share of each GCC country is expected to remain constant through 2024 according to Alpen Capital. The UAE will continue to maintain its position as the largest market in the region.
The gradual slowdown of the insurance industry that was witnessed in the last two years as various players adapted to new regulations such as solvency requirements, minimum capital requirements and pricing policies, is likely to continue until 2024, Dhanak said.
Dhanak said that M&As in the sector remained active over the past two years as companies sought to build stronger balance sheets to sustain the stringent reserve and solvency requirements.
“In addition to interest from foreign players, we expect to see continuing M&A activity as companies develop technological capabilities to broaden their product offering and improve profitability,” he added.
According to the report, insurance penetration (ratio of total insurance premiums to GDP) in the region is expected to remain between 1.8 percent and 1.9 percent from 2019 to 2024, below the global average of 6.1 percent, offering scope for growth in the sector.
Insurance density (ratio of premium underwritten to total population) in the GCC is expected to increase from $502.9 in 2019 to $555.8 in 2024. Life insurance gross written premium (GWP) is projected to grow at a CAGR of 4.9 percent to reach $4.7 billion in 2024.
The non-life segment will continue to comprise 86.9 percent of the total insurance market at $31.4 billion in 2024, the report noted.
In the next 5 years, the UAE’s insurance market is forecasted to grow at a CAGR of 4.2 percent while the Saudi Insurance market will grow at a CAGR of 5 percent and the Kuwaiti insurance market is anticipated to grow at the fastest annualized average pace of 8.2 percent.
In 2018, the UAE recorded the highest insurance penetration and density at 2.9 per cent and $1,194.7 respectively, the report said.
One of the challenges facing the sector is its exposure to risky assets according to Alpen Capital, as insurance firms in the region have a relatively high exposure to capital markets, making them more prone to volatility in equity markets.
Another challenge is weak profitability. With 200 insurers operating in the region, the sector remains highly fragmented, pushing companies to face profitability pressure due to mounting competition, high regulatory costs and strict accounting standards, the report said.
source: zawya
President Ueli Maurer concluded his presidential visit to the United Arab Emirates and Saudi Arabia on Tuesday, 29 October.
The focus in both countries was on bilateral relations and issues relating to sustainability. The president was accompanied on his visit to Abu Dhabi, Dubai and Riyadh by a delegation from the financial sector.
On Sunday, in the United Arab Emirates, Mr Maurer met with Crown Prince Mohammed bin Zayed Al Nahyan, Prime Minister Mohammed bin Rashid Al Maktoum and Reem Al Hashimy, Minister for International Cooperation and Director General of Expo 2020.
Together with the Minister of State for Financial Affairs, Obaid bin Humaid Al Tayer, and State Secretary Daniela Stoffel from the State Secretariat for International Financial Matters (SIF), he chaired the second round of dialogue on financial policy with the UAE.
He also attended events with experts on fintech and sustainable finance. At an official ground breaking ceremony Mr Maurer was presented with a plot which will be the site of the Swiss pavilion at Expo 2020.
Construction work is set to commence at the beginning of November.
In the UAE, talks primarily served to foster bilateral relations between Switzerland and the United Arab Emirates in a broad range of areas.
Discussions in the field of economic and financial affairs covered the implementation of the free trade agreement between the European Free Trade Association (EFTA) and the Gulf Cooperation Council (GCC), the automatic exchange of information, and the bilateral double taxation agreement.
Questions concerning the rule of law, democracy, human rights, the political situation, and Switzerland’s good offices were raised during talks in both the United Arab Emirates and Saudi Arabia.
In Riyadh Mr Maurer stressed the opportunities for bilateral exchanges and cooperation presented by the ‘Vision 2030’ reform programme, particularly in terms of innovation, education and sustainable finance.
He had audiences with King Salman bin Abd al-Aziz Al Saud, Crown Prince Mohammed bin Salman Al Saud and Prince Badr bin Farhan Al Saud, the Minister of Culture.
The Swiss delegation held a number of bilateral discussions with the Minister of Commerce and Investment, Majid bin Abdullah Al Qasabi, the Minister of Economy and Planning, Mohammed bin Maziad Al-Tuwaijri and the Minister of Finance, Mohammed Al Jadaan, on the further development of mutual relations and specific projects in financial relations and the areas of education, tourism, dual-track vocational education and training, digital transformation and sustainability.
Mr Maurer gave one of the opening addresses at the Future Investment Initiative (FII) conference in Riyadh. In his speech he cited Switzerland’s ambitious system of direct democracy as a political early warning system and highlighted Switzerland’s approach to new technological developments and innovation.
He also spoke about sustainability in society, governance and in the environment, and emphasised the importance of the Swiss education system and its higher education institutions.
Shortly before leaving, Mr Maurer attended a training session of a women’s basketball team accompanied by Lina Almaeena, a pioneer of Saudi women’s basketball. Under the reforms envisaged as part of ‘Vision 2030’, Saudi Arabia is seeking to encourage opportunities for women through culture and sport and to improve their place in society.
In that context, and as a token of thanks for Saudi Arabia’s hospitality, Mr Maurer invited a Saudi women’s basketball team to Switzerland’s National Sports Centre in Magglingen for a week’s training.THE FEDRAL CONUNCIL
Egypt’s economy grew 5.6% YTD
The unemployment rate in Egypt recording its lowest level in 30 years during the second quarter of 2019, recording 7.5%, according to data released by the Egyptian Cabinet’s media centre.
The decline in the unemployment rate resulted by the launch of 9,039 projects between July 2014 and December 2018 with a total cost of EGP 2.1 trillion, the cabinet’s data revealed.
Egypt’s economy grew 5.6% year-to-date, compared to 5.3% in 2018. Inflation reached 4.8% in September, against 14.4% in 2018.
source: zawya
the bank is considering financing the purchase of an airliner and a cargo ship in consideration of $43.35mln
The Egyptian Arab Land Bank is planning to arrange EGP 1.7 billion finance in the healthcare and aviation sectors, the bank’s deputy chairman Amr Gadallah told Mubasher.
The bank is currently arranging EGP 1 billion syndicated loan for the healthcare sector which will be used to fund a private company, Gadallah added, noting that the loan will be granted by four banks.
The top official revealed that the bank is considering financing the purchase of an airliner and a cargo ship in consideration of EGP 700 million.
source: zawya
Egypt has jumped six places to 114th out of 190 countries in the World Bank’s 2020 business rankings, from 120th in the 2019 report.
“The Arab Republic of Egypt made starting a business easier by abolishing the requirement to obtain a certificate of nonconfusion and improving its one-stop shop.” the World Bank said in its “Doing Business 2020” report released on Thursday.
The report said Egypt’s reforms had adopted improved the investment climate and facilitated procedures in four core areas, including enterprise establishment. This made Egypt improve 19 spots globally.
Egypt has also advanced six spots in acquiring electricity index due to notable reforms it implemented, including electricity infrastructure improvement and declining electricity delivery for beneficiaries.
“Egypt improved the reliability of electricity supply by implementing automated systems to monitor and report power outages.” the report added.
The North African country has climbed 15 spots in small investors’ protection given the legislation and decrees that protect them.
“Egypt strengthened minority investor protections by requiring shareholder approval when listed companies issue new shares.”
The report also showed that Egypt has improved three spots, compared to last year, in taxes payment.
The country had adopted a new electronic system for the application of value-added and income tax acknowledgements, electronic payment of disbursements.
The new electronic system, according to the report, has eased the way investors deal with the taxation system.
“Egypt made paying taxes easier by implementing an online system for filing and payment of corporate income tax and value-added tax.”
The report also placed Egypt among the top 25 countries in the world regarding the number of reforms.
The economies that showed the most notable improvement were Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India, and Nigeria, according to the report.
source: amwalalghad
Dubai's FDI more than doubles to Dh46.6 billion in first half of 2019
29 Oct 2019 Written by Admin AdminNew 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
Attracting investors: Saudi Arabia issues 558 business licenses in H1 2019
29 Oct 2019 Written by Admin AdminSaudi Arabian General Investment Authority (SAGIA), which is responsible for increasing investments and supporting businesses in the kingdom, has issued 558 licenses in the first half of 2019.
“SAGIA has already issued 558 licenses in the first half of 2019, that's a 85 percent increase compared to the same period last year,” an official tweet from the investment authority confirmed.
New licenses approved for foreign businesses in Saudi Arabia jumped by 70 percent in the first quarter compared to the same time last year, mainly due to an increase in applications for business licenses from Britain and China which went up by 86 percent and 71 percent respectively.
Saudi Arabia is looking at foreign investment to reduce its dependence on the oil. Though Foreign Direct Investment numbers of the kingdom are not available, the growth in foreign licenses reflects its efforts to remove restrictions on foreign investments.
Saudi Arabia improved its ranking in the World Bank's latest Doing Business report, climbing 30 places to 62nd, driven mostly by reforms aimed at building more economic diversification.
According to the World Bank, Saudi Arabia's reforms included establishing a one-stop shop for business registration, introducing a secured transactions law and an insolvency law, improving protections for minority investors, and measures to bring more women into the workforce.
source: zawya
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
Aviation sector’s contribution to Omani economy projected at RO 1.4 bn by 2040
29 Sep 2019 Written by Admin AdminThe contribution of Oman’s aviation industry, as an enabler of the nation’s pivotal tourism and logistics sectors, is projected to surge in value terms to RO 1.4 billion by the year 2040, up from RO 170 million in 2016, according to the head of Oman Airports.
Shaikh Aimen al Hosni (pictured), CEO, said the company — part of Oman Aviation Group — continues to leverage investments made by the Omani government in the development of modern airports and other associated infrastructure to add value to the national economy.
Apart from the accent on efforts to drive tourist inflows, Oman Airports is focused on the development of Airport Cities, Airport Free Zones, Airfreight Services, Premium Airport Services, and Cargo Handling distributed across three key pillars: Tourism, Aviation, and Logistics, he said.
Al Hosni made the comments in a presentation on the ‘Role of Airports in Driving Inbound Tourism’, which he delivered during a seminar hosted by the Modern College of Business and Science at the Muscat InterContinental Hotel yesterday.
Oman Airports currently oversees a portfolio of seven airports in the Sultanate, comprising the international airports in Muscat and Salalah, regional airports in Suhar and Duqm, and the three airports of Petroleum Development Oman (PDO) in Marmul, Qarn Alam and Fahud.
These seven airports handled a total of 17.2 million passengers last year, up from 6.2 million in 2010, representing a three-fold jump over the period. The tally is projected to cross 18 million passengers in 2018, he said.
Muscat International Airport, a landmark in its own right, will be expanded in a further three phases to reach an optimum capacity of 100 million passengers in the future, he said.
As an important enabler of the tourism and logistics sectors, Oman Airport is also looking to attract new airlines to the Sultanate, said Al Hosni.
Besides national carrier Oman Air, as many as 35 carriers from around the world currently fly through airports in the Sultanate, with the number growing incrementally at the rate of 2-3 airlines annually.
The goal now is to attract airlines from Asia, Africa and parts of Europe to ensure adequate connectivity with promising tourism markets, he said.
Oman’s strategic location in the Middle East, according to the CEO, effectively brings within its reach 34 per cent of the world’s population within a four-hour flying time, rising to 86 per cent within eight hours.
By capitalising on this potential, the Sultanate can serve as a hub for aviation, he noted.
source: omanobserver
