NL/16.10.2017

/ / October 2017









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OCT 2017 ISSUE

CGI. 91

Country Risk Update – UAE

The UAE will continue to strengthen its position as a regional safe haven and business hub. Access to global markets from Dubai will be among the best in the world. The forward-looking Emirates NBD UAE Purchasing Managers’ Index (PMI) data for August highlights that the non-oil private sector continues to gain momentum.The index was at its highest level for 30 months and above the long-term average. 

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Market Overview
UAE’s international brand value estimated at nearly $600bn
The UAE’s international brand value is the highest in the Gulf at nearly $600 billion, according to a new study.Research by the London-based consultancy Brand Finance found that the UAE topped the regional rankings with a brand worth $594 billion, placing it 21st globally.It ranked ahead of Saudi Arabia, which has the largest economy in the Middle East, which has a brand value of $575 billion, a 19 percent rise on its previous value.
Saudi retail transactions, ATM withdrawals rise in August
Point of sales transactions in Saudi Arabia registered a second consecutive month of double-digit yearly growth in August while ATM withdrawals were also up, according to a new research note. Jadwa Investment’s monthly report showed “mild improvements” in economic activity in the Gulf kingdom with ATM withdrawals rising 4 percent compared to August 2016.
Further squeezes expected on GCC household income in 2018
The economic outlook in the Gulf region is expected to remain tough, with several further squeezes on household income in 2018, according to a new report.The Institute of Chartered Accountants in England and Wales (ICAEW) report said overall GDP is expected to grow by 2.4 percent next year and rising to 4 percent in 2019.The accountancy and finance body said any extension of OPEC’s production cut deal, which ends on March 31, 2018, would delay the recovery.
UAE’s real GDP growth forecast to show to 1.4% in 2017
Real GDP growth in the UAE is estimated to further moderate to 1.4 percent this year, down from 3 percent in 2016, according to the World Bank.Its UAE Economic Outlook – October 2017 report said hydrocarbon GDP growth is estimated to contract to 2.9 percent in 2017 from 3.8 percent last year in compliance with the OPEC agreement to cut supply.The research added that the UAE’s non-oil sector is estimated to grow by 3.3 percent in 2017, reflecting higher public investment and a pickup in global trade.
ABN Amro looks to increase presence in GCC
Dutch bank ABN Amro hopes to expand its presence in the Middle East as it works to support clients in the natural resources, global transportation and logistics, food and retail, financial, utilities and renewables sectors, according to Hugo Peek, CEO EMEA, Corporate and Institutional Banking.“Backed by a strong balance sheet, a strong platform of product and sector skills and our experience and expertise, we are in an excellent position to support our clients and build on relationships with our increased product suite,” he said.  “Our franchise in the Middle East is part of that story.”
Saudi may raise loan – deposit ratio for banks
Saudi Arabia’s central bank may raise the maximum loan-to-deposit ratio for commercial banks if that is needed to help the economy, central bank governor Ahmed al-Kholifey told Al Arabiya television. Kholifey was speaking on the sidelines of meetings of the International Monetary Fund and the World Bank in Washington at the weekend. The central bank last raised the ratio in February 2016, to 90 per cent from 85 per cent.The ratio for the banking sector as a whole stood at 81.7 per cent in August, down from 84.8 per cent a year ago, according to the latest central bank data.
 
IMF says income tax may become “necessary” for GCC states
The Gulf Cooperation Council countries may eventually be forced to implement income and other taxes to balance their budgets in the future, according to an IMF official. Speaking to sources, the IMF’s deputy director of fiscal affairs department Abdelhak Senhadji said the organisation had advised Gulf governments to look at other forms of taxation including on immovable assets like real estate as they prepare to introduce VAT in January. “All of this [introduction of personal income tax] has to be feasible economically but also politically,” he was quoted as saying. Real estate taxes could be worth 1-2 per cent of GDP for countries in the region, according to the IMF.
VAT to create  over 5,000 jobs in the GCC- Analyst
Around 5,000 finance and accounting jobs will be created in the GCC region with the introduction of value added tax (VAT), a tax expert has predicted.All the six member states of the GCC are set to begin implementing VAT from 2018, with the UAE starting the tax from January.The introduction of the tax will prove beneficial to regional economies, official news agency WAM quoted Paul Drum, head of Policy at CPA Australia and an expert in tax law as saying.
Values of Middle east PPPs doubled in the past year, says report
Oil-rich governments are increasingly relying on the private sector in a key change across the Middle East and North Africa, a report said Wednesday.The value of public-private partnership (PPP) projects across the region, including those still in the pipeline, has more than doubled to $185 billion over the past year, the Dubai-based Middle East Economic Digest wrote.The sharp increase comes as governments have ramped up efforts to get the private sector involved in financing, building and operating public infrastructure projects in a bid to offset shrinking income from oil since crude prices began to fall in mid-2014.
Commodity Tracker
Commodity 9 Oct 16 Oct Chg.%
Brent 55.75 57.81 3.70
WTI 49.48 51.88 4.85
Natural Gas 2.87 2.96 3.14
Gold 1286.60 1306.4 1.54

 

Business Events this week In UAE

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Zameen Pakistan Property Show

20 October – 21 October 2017

Za’abeel Hall 5, Dubai World Trade Centre

 

Business Updates
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Construction & Contracting Industry Insider

Dun & Bradstreet manages the world’s most valuable commercial database of 265 Million companies across 190 countries. Dun & Bradstreet has helped customers & partners build valuable relationships by uncovering the truth and meaning from Data. We apply statistical technologies & methodologies to build the highest performing predictors, which helps them connect with their most potential prospects & suppliers.
Based on our extensive primary & secondary research, we are pleased to present our latest offering of Dun & Bradstreet’s Construction and Contracting Industry Insider.

CRIF GULF DWC LLC
Level 15, ’48 Burj Gate’, Downtown Burj, Shaikh Zayed Road, Dubai, UAE 
Tel. +971 4 406 9900
www,crif.ae  /  www.dnbuae.com

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