CRIF – Dun & Bradstreet is pleased to bring to you the latest edition of our newsletter ‘CRIF Gulf Insights’ (CGI). CGI will keep you informed about the current trends in the GCC markets and highlight key events in the regional and global economy.
Best Regards, CRIF Dun & Bradstreet Communications Team
CGI | Issue 71 | May 2017
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. Dubai goes against the global trend and increases its investment inflows, helping to reduce the UAE’s dependency on oil and gas revenues.According to the latest report of the Dubai FDI Monitor, in 2016 it attracted AED25.5bn (USD6.9bn), making it the seventh most successful global city.Importantly, scientific and research services ranked third, accounting for 6% (up from only 1% in 2015). Meanwhile, foreign investment stocks in Abu Dhabi, the largest emirate, increased by 8% in 2016 to reach AED95.1bn (USD25.9bn).
Business, Finance and Commodity News
UAE sees steep rise in credit card applications
The number of people applying for credit cards in the UAE soared by 65 percent year-on-year in the first quarter of 2017, new research shows.This marked a huge overall increase in the number of credit card applications during the period – at 102.4 percent, according to a research. During the same period last year, the most applied-for card was a premium offering with a minimum salary requirement of AED20,000 ($5,444) per month.
UAE is all set for VAT implementation starting next year
The UAE government is going full steam ahead with the implementation of a value added tax (VAT) in the country from January 1, 2018. The Federal National Council (FNC) approved the draft law last month and the final law is waiting for the presidential approval.With the imminent VAT implementation, tax practitioners, technology consultants and relevant government departments are gearing up for the new tax regime in the country.
UAE banking merger could be just the start
The UAE has a new banking giant. The merger of National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB), which came into effect late on March 30, has created the biggest financial entity in the country, with about $183bn worth of assets — one-quarter of the entire sector. The Abu Dhabi government and state-owned entities will own about 37 percent of the merged entity.
UAE gears up: Sin tax good for health, bad for firms
The announcement on Tuesday of new taxes on tobacco products and carbonated drinks will have an impact on the industry, according to experts and analysts.The first tax on carbonated,or fizzy, drinks, will see prices rise by 50 per cent. This applies to all carbonated drinks except for sparkling water.Separately, a tax of 100 per cent will be placed on energy drinks, such as Red Bull,and tobacco products, effectively doubling their price.
UAE banking major raises $587m in green bond debut
National Bank of Abu Dhabi has issued the Gulf region’s first green bond, raising $587 million for projects to fight climate change as said on Thursday. Proceeds from so-called green bonds help to finance projects in renewable energy, energy-efficiency, green transport and waste water treatment.The five-year bond is listed on the LSE. Global green bond issuance could reach $125-150 billion this year as demand for low-carbon infrastructure investment continues.
D&B Article of the Week
How to mitigate the risks of venture capital
Getting into angel investment can be scary. You could lose everything – even if you do it right. So how do you best mitigate the risk? As an angel investor, you are going in with your eyes open that you could lose the money,” says Vikas Shah, a visiting professor of entrepreneurship at the MIT Sloan School of Management.
“That’s your maximum risk here, plus reputational risk and all of those things. But you are looking at that business and it’s the gut feel you have. Question two, can that team execute? If it makes sense and that team can execute, that’s the bulk of my risk mitigated.”
Saud Al Nowais, a commercial counsellor for the UAE to the United States, suggests investing through angel networks and firms such as VentureSouq, which will hold your hand through the process.
CRIF D&B Highlights
Over 360 clients and partners at the 2017 CRIF Lending Forum in San Antonio, Texas..
This year edition of the CRIF Lending Solutions Forum, was held on May 7-10 at the Hyatt Regency Hill Country Resort and Spa in San Antonio, Texas, and attendees had the opportunity to enjoy captivating keynote speakers, informative education sessions, countless networking opportunities and spectacular evening events that allowed them to soak in everything Texas has to offer.
CRIF Gulf Introduces iPulse in UAE iPulse is a new state of the art business application that supports end-to-end field due diligence process. For more information, send an email to [email protected]
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April 04, 2017