Adnoc Drilling, the Middle East’s largest drilling company, has set the price for its listing at 2.30 dirhams per share, implying an equity value of $10 billion. The offering will represent 1.2 billion shares or 7.5% of the company. However, Adnoc Drilling has said that it may increase the amount of stock available.
The offering comes amid a push by Abu Dhabi to revive IPOs on its stock exchange. The ADX is offering a range of extra incentives, including promises to reduce or waive listing fees and flexibility on the minimum stake size needed for share sales.
Adnoc Drilling has also begun preparations for a potential IPO of its fertiliser joint venture Fertiglobe as sovereign wealth fund ADQ plans to list Abu Dhabi Ports by the end of the year.
The United Arab Emirates is the third-largest producer in the Organization of Petroleum Exporting Countries and has utilised its oil wealth to expand its economy. The UAE has diversified into tourism and developing global transport and trade hubs. However, these sectors suffered throughout 2020 as the covid-19 pandemic saw a substantial decline in international travel, blocked trade flows, and cut energy use.
Sezer Sherif, Founder and CEO of investment group Vector Capital , explores the increasing appeal of the UAE for investors.
Catastrophe And Opportunity
The investment landscape has, for the past year, been characterised by uncertainty. It does not take a degree in economics to recognise that global pandemics, and their associated social restrictions, do not cultivate a desire for reckless speculation or needless risk-taking. It is doubtless for this reason that, according to a recent report from the United Nations Conference on Trade and Development, global foreign direct investment (FDI) suffered a total collapse during the course of 2020. The fall of 42% took total FDI from $1.5 trillion in 2019 to approximately $859 billion.
Though the upsides to such catastrophes are neither numerous nor overt, these challenging economic waters provide something of a litmus test for prospective investors. According to James Zhan, director of UNCTAD’s investment division, “[i]nvestors are likely to remain cautious in committing capital to new overseas productive assets.” There is, however, a more rewarding outlet for this kind of caution. The trials occasioned by the pandemic can be understood as a simplifying force in a world of overseas investment that can – especially for first-time investors – feel difficult, complex, and inaccessible. Where does a new investor begin? Lengthy and time-consuming analyses of various countries’ suitability for investment can instead be whittled down, at least in terms of initial impressions, to a single, straightforward metric: how well have they performed in pandemic conditions?
The principle of gauging investment potential through pandemic-related data has been neatly exemplified in a recent Tweet published by the Vice President and Ruler of Dubai, Sheikh Mohammed bin Rashid. He wastes no time in signposting the favourable contrast between the aforementioned global FDI figures and those currently enjoyed by the UAE. As he notes, “[d]espite the UN’s estimates that global foreign direct investment flows decreased by 42% in 2020 over COVID-19, the UAE witnessed 44% growth in FDI flows in 2020.” This kind of stark contrast demonstrates that the ongoing economic crisis can point the way towards fruitful investment opportunities, including FDI mainstays such as real estate, retail trade, manufacturing, and mining, alongside exciting high potential sectors including aeronautical services, natural resources management, and renewable energies – especially through, per Santander, the country’s huge photovoltaic potential.
The Continued Rise Of The UAE
The UAE’s suitability for photovoltaics is unsurprising: it is a region doused with eternal sunshine which encompasses the natural beauty of its sand dunes and the opulent reaches of its skyscrapers alike.
Having spotted data that suggests that the UAE is an attractive region for investors and recognising the physical attractiveness which makes the region worth forming ties with, it is worth considering what economic qualities make the country so favourable. The UAE’s remarkable growth in FDI is reflected in the 2021 Kearney FDI Confidence Index, in which the region was promoted from 19th place in 2020 to 15th in 2021.
A recent report from PwC Middle East places recovery and growth first on its list of predicted economic themes for the UAE in 2021, noting that the country is likely to “return to economic growth on a real GDP basis.” In fact, since the publication of the above report, the International Monetary Fund (IMF) has considerably upgraded the UAE’s growth forecast for 2021 from 1.3% to 3.1%.
Of course, no region can provide iron-clad economic stability. Ongoing global moves towards decarbonisation, for example, may have troubling repercussions for oil-rich economies like that of the UAE. Moreover, as an article from the World Bank suggests, the UAE’s “large tourism industry” will, in line with that of most parts of the world, continue to be impacted by the pandemic.
A Confident Future
On the whole, however, investor confidence will be heightened by the UAE’s moves to capitalise upon its favourable position for prospective investors. June 1 2021 represents a notable landmark for the UAE as a hub of investment opportunity: this date sees the launch of an amended Commercial Companies Law which will, as Gulf Today reports, “make the UAE a more investment-friendly destination” by allowing companies to apply for business licences without requiring a UAE national to act as a 51% shareholder.
As Economy Minister Abdulla Bin Touq Al Marri has said, this move gives the UAE a “competitive edge”, allowing for the free flow of foreign direct investment and facilitating the movement of money in the region. Other recent measures to attract investment for the UAE include the ability for investors to receive 10-year visas and a path to full citizenship. The country is evidently committed to nurturing a spirit of free entrepreneurialism which can only strengthen its attractiveness for investors, while its offers of extended visits can only sweeten the deal for those interested in the UAE’s expansive shopping malls, growing upscale dining scene, and unique architecture.
A destination known to be popular with the rich and famous, the Kardashians love going there, it’s a destination that’s been gaining popularity over the last few years. In fact, the number of annual international overnight visitors almost doubled in six years. This saw the number climb from around 8.5 million in 2010 to just under 15.3 million in 2016. That’s a lot of people.
If you’re thinking of holidaying there, and you haven’t been before, then there are a few things that you need to know before visiting Dubai. Below, we’ve listed four things you should keep in mind, which you’ve probably not even considered.
1. Smoking
While smoking in the UK has decreased over the last decade or two, it’s still quite commonplace in many other countries. However, when it comes to e-cigs and e-liquid devices, it’ll probably be best to leave yours at home while visiting Dubai. You may be wondering why, but it’s actually illegal to sell them in the UAE. But, while there isn’t a law that prohibits the use of them, some say the lines can be a bit blurred. This is due to some wondering if they could still encounter a fine if using them in a place that allows smoking. Therefore, it’s probably best to leave yours at home.
2. Clothing
While the country is known for being extremely hot, please remember that you’re in a more conservative country. Because of this, you should ensure that you keep your holiday wardrobe more on the conservative side too. This means that when packing you should make sure that you pack long-sleeves and full-length trousers, as well as your swimwear that’ll no doubt come in handy at your resort. It’ll also be worth talking to the staff at your hotel about what you can wear depending on where you’re going, if you want to be 100% sure.
3. Cash
Although we’ve become accustomed to a contactless society, this isn’t the case in Dubai. In fact, cash is still very much king when it comes to transactions. Therefore, make sure you get enough cash to take away with you before leaving for your holiday (the currency here is Dirham). However, many places will accept credit cards, but it’s always better to be prepared for any eventuality.
4. Kissing
As mentioned above, Dubai is a much more conservative country than the UK. Because of this, public kissing is a bit of a no-no. Therefore, public displays of affection in restaurants, on the beach, in nightclubs, on the street and in taxis are best avoided, as you could find yourself getting into a lot of trouble.
Dubai and Abu Dhabi in the United Arab Emirates (UAE) could soon join London, New York and Hong Kong in the world’s top 10 global financial centre rankings, thanks to new government laws affecting expatriates.
This is the bold message from Nigel Green, the founder and CEO of deVere Group. The observation comes as the UAE cabinet on Sunday approved new legislation that allows expatriates to remain in the country long after they retire.
Mr Green affirms: “Dubai and Abu Dhabi are perennially popular destinations for ambitious expatriates looking to embark upon or further their careers because of the incredible possibilities offered in terms of finance, trade and commerce, plus the famous ‘can do’ attitude and the low tax environment in these destinations.
“But they will become even more attractive locations for overseas talent thanks to the government passing these new laws that allow expats to stay on in the UAE long after they retire.”
He continues: “With Dubai and Abu Dhabi becoming ever-more appealing relocation destinations, recruiting more top talent here will inevitably become easier for companies that are based in these emirates.
“In addition, I believe that it will help drive further driving confidence in the UAE as a place for overseas firms to do business and invest.”
Mr Green goes on say: “Dubai is already recognised as one of the most powerful financial centres in the world. But this new legislation will not only galvanise this position, but significantly strengthen it.
“This confirms my view that over the next decade, we can expect it to become one of the world’s top ten international financial hubs to rival and more aggressively compete with stalwarts such as London, New York and Hong Kong.
“Dubai and Abu Dhabi are helped in this regard by having an independent regulator, an independent judicial system, a global financial exchange, a stable, pro-business government, a high proposition of high net worth individuals, a dynamic business community, world-class infrastructure and telecommunications, English as its defacto business language, and their enviable geographical location and time zone.”
The deVere CEO concludes: “We fully welcome this progressive policy shift by the UAE government. It will encourage even more people to come, stay and invest for the long-term in the country, which will further boost its sustainable economic growth.”
Earlier this year, Dubai was revealed as the number one city for graduates seeking a career in financial services, whilst London didn’t make the top ten, in an annual deVere Group survey.
Of the findings at the time, Mr Green noted: “This survey highlights that the next generation of financial services professionals are open to look beyond the traditional and more established global financial hubs.
“It underscores how cities like Dubai, Barcelona and Cape Town are increasingly important international financial centres.
“The fact that Barcelona this year is second-placed and London – currently the world’s most important global financial hub – does not make the top ten is interesting.
“Could it be that the respondents believe mainland Europe’s international financial centres offer more opportunities than post-Brexit London?”
(Source: deVere Group)
Known for all of its high-end flamboyance, Dubai is on most people’s bucket list destination of travel. And we do not blame them; fear not of conforming to the ‘wanna-be’ celebrity WAG’s ideal home away from home, because Dubai truly will baffle you.
Grandeur being her middle name, the United Arab Emirate city overshadows the Middle East with its ultramodern architecture and skyscrapers. From luxury designer shops to serene beaches, once branded as the Middle East’s most expensive city, Dubai’s character is to feed the slight hedonism in all of us.
She also feeds the adventure in us. From the tamer dune bashing and sandboarding, to the extreme paragliding and parachuting, this city has the perfect climate and atmosphere for you to overdose on adrenaline; and to try and stop you from changing your mind, hotels such as Amwaj Rotana are a quick two-minute walk from the beach you will be jet skiing across.
But for those who indulge in the history of a nation, Dubai also flaunts true Emirati culture; it will feel like you have travelled back in time. Step off the metro to hop on an abra – a traditional wooden boat – to discover tantalising cuisine and your hidden talent of haggling (the locals love a challenge).
The Old Souq is packed with stalls selling traditional Arabian textiles, including fine silk and cotton in every colour, intricately woven rugs and dazzling sequined footwear. Spoil your eyes awing at the vividly colourful, fresh spices and treat your nose to the musky scent of ‘liquid gold’: Oud. It is no surprise that with Oud being one of the most expensive raw scent ingredients, that Tom Ford, Gucci, Guerlian and an array of designers have snatched up the unique fragrance. At Dubai’s Deira Souq, you can be your own version of Jo Malone; from essential oils to incense sticks, vendors will be more than happy to give a crash course in perfumes for you to personally create your own.
And of course, the most famous market: The Gold Souq. Covered with bespoke jewellery and statement pieces that would even make the Queen’s diamond collection look dry, the Gold Souq has an overwhelming choice of gold and diamonds. My tip? Have a good look around before you settle on the perfect ring.
Amwaj Rotana is situated near the metro line, where you can be in Deira via public transport in around an hour. You can also get a taxi (which aren’t too dear), which will take around half an hour.
If haggling and bustling market is not your thing and you much prefer shopping in luxury, the infamous Dubai Mall is for you. The Mall itself, I think, could easily be the size of a town. It is also home to the aquarium which is much loved by adults and children, as well as an ice rink, cinema, the Emirates ‘flight’ experience, a virtual reality park, and of course, a mass array of designer shops, Emirati shops and places to fine dine or casual eateries.
If that is not enough (you must be a tough one to please), but the Mall is also the neighbour of the tallest building of the world: the Burj Khalifa. Standing 828 metres tall, the tower not only showcases the entire city, but you can treat yourselves to afternoon tea on the outskirts of heaven.
Amwaj Rotana is situated 50 minutes away via public transport, or a short 20 minute drive via taxi.
Where to stay
Amwaj Rotana is situated a short two minute (101 steps, to be accurate) walk from the Jumeirah Beach; if the swimming pool isn’t enough for you, you can be dipping your toes in the sea in no time.
For special VIP guests, you can bask in the comfort and feel at home at Atrium Lobby Lounge as you indulge on an array of juices, cocktails and freshly made cakes, treats and delicious pastries. A fine selection of tea and coffees is also available should you wish to enjoy a relaxed cup of tea or discuss business over coffee.
The spacious rooms overlook the city and coast, or, if you want to get out of the room and join those you’re overlooking, you can order a limousine to drive you around. The hotel staff are happy to organise day trips to the desert where you can befriend camels and enjoy a night of Arabian entertainment, or if you fancy something more subdued, enjoy a relaxing massage at Rotana’s spa.
With award-winning dining concepts offering Italian, American/Japanese, British/American and international cuisine as well as live entertainment, and the friendly staff are more than happy to cook something on the spot for those with dietary requirements.
The staff at Rotana are friendly in nature and are more than happy to offer advice for those who are new to Dubai.
Kids? If you want to enjoy the jacuzzi in peace, send them off to Amwaj’s Flipper’s Kids’ Club or, try and find a willing member to babysit them at Dubai’s much-loved waterpark, or at the Splashpad located at the Jumeirah Beach.
Emirati hospitality is something you must experience for yourself. A perfected mix of luxury and warmth, Dubai is an ever-growing city that is grand in nature.
Stay at the five-star Amwaj Rotana in Dubai from 795 AED (approx. £155) per night inclusive of breakfast based on two adults sharing a Classic Room. To book or for further information, please visit www.rotana.com.
Following what Bahrain has blamed as “media incitement, support for armed terrorist activities and funding linked to Iranian groups to carry out sabotage and spreading chaos,” on Qatar’s part, and what Saudi Arabia as Qatar’s "embrace of various terrorist and sectarian groups aimed at destabilizing the region,” diplomatic ties with the Gulf state of Qatar have been disbanded by Saudi, UAE, Bahrain, Yemen, Libya and Egypt.
This of course may have serious implication regionally, and for Finance Monthly readers economically, beginning with the absence of flight to and from the gulf state.
“Either Qatar apologizes, which is what the other countries are asking for, or they could eventually be kicked of the GCC. It’s already escalating quickly – they’ve never banned flights before. We are also seeing market fallout in Qatar—its stock exchange is down nearly 8% today," said CNN’s John Defterios.
Today UAE has given Qatar’s diplomatic mission in Abu Dhabi 48 hours to leave the country after what it said were “Doha’s several policies which destabilizes the security and stability of the region and manipulates commitments.”
In addition, diplomatic staff have been told to pull out of Qatar, and all Qatari citizens in UAE have been given 14 days to leave the nation. Passing through the Qatar and vice versa through UAE has also been banned. Some states have also announced they are cutting all air and sea traffic to Qatar, while closing their borders with the now isolated neighbour.
According to Qatar-based Al Jazeera TV, the Qatari foreign ministry claims the decisions will “not affect the normal lives of citizens and residents.”
Here is the full statement from The United Arab Emirates according to Abu Dhabi (WAM):
“The UAE affirms its complete commitment and support to the Gulf Cooperation Council and to the security and stability of the GCC States. Within this framework, and based on the insistence of the State of Qatar to continue to undermine the security and stability of the region and its failure to honour international commitments and agreements, it has been decided to take the following measures that are necessary for safeguarding the interests of the GCC States in general and those of the brotherly Qatari people in particular:
1-In support of the statements issued by the sisterly Kingdom of Bahrain and sisterly Kingdom of Saudi Arabia, the United Arab Emirates severs all relations with the State of Qatar, including breaking off diplomatic relations, and gives Qatari diplomats 48 hours to leave the UAE.
2-Preventing Qatari nationals from entering the UAE or crossing its points of entry, giving Qatari residents and visitors in the UAE 14 days to leave the country for precautionary security reasons. The UAE nationals are likewise banned from traveling to or staying in Qatar or transiting through its territories.
3-Closure of UAE airspace and seaports for all Qataris in 24 hours and banning all Qatari means of transportation, coming to or leaving the UAE, from crossing, entering or leaving the UAE territories, and taking all legal measures in collaboration with friendly countries and international companies with regards to Qataris using the UAE airspace and territorial waters, from and to Qatar, for national security considerations.
The UAE is taking these decisive measures as a result of the Qatari authorities' failure to abide by the Riyadh Agreement on returning GCC diplomats to Doha and its Complementary Arrangement in 2014, and Qatar's continued support, funding and hosting of terror groups, primarily Islamic Brotherhood, and its sustained endeavours to promote the ideologies of Daesh and Al Qaeda across its direct and indirect media in addition to Qatar's violation of the statement issued at the US-Islamic Summit in Riyadh on May 21st, 2017 on countering terrorism in the region and considering Iran a state sponsor of terrorism. The UAE measures are taken as well based on Qatari authorities' hosting of terrorist elements and meddling in the affairs of other countries as well as their support of terror groups policies which are likely to push the region into a stage of unpredictable consequences.
While regretting the policies taken by the State of Qatar that sow seeds of sedition and discord among the region's countries, the UAE affirms its full respect and appreciation for the brotherly Qatari people on account of the profound historical, religious and fraternal ties and kin relations binding UAE and Qatari people."
IBM recently announced a blockchain initiative with Dubai Customs, Dubai Trade, advancing Dubai's government blockchain strategy. As part of the initiative, IBM is also working with leading businesses including Emirates NBD, du, Aramex, and Banco Santander.
IBM is collaborating with Dubai Customs, Dubai Trade and its IT provider DUTECH, to explore the use of blockchain for a trade finance and logistics solution for the import and re-export process of goods in and out of Dubai. Using Hyperledger Fabric and IBM Cloud, the blockchain solution transmits shipment data allowing key stakeholders to receive real-time information about the state of goods and the status of the shipment. Taking the example of a shipment of fruit, stakeholders involved in the process will receive timely updates as the fruit is exported from India to Dubai by sea, and then manufactured into juice in Dubai, and then exported as juice from Dubai to Spain by air.
Additionally, as part of the solution, IBM is also working with du, a UAE-based telecommunications service provider that is conveying data from internet of things (IoT); Emirates NBD Bank, the letter of credit issuing bank; Banco Santander, the letter of credit responding bank; Aramex, the freight forwarder; and a leading Airline, as the airway carrier.
This trade finance and logistics blockchain-based solution aims to replace paper-based contracts with smart contracts; leverages Watson IoT for device-reported data to update or validate smart contracts; and integrates all the key trade process stakeholders from the ordering stage, in which the importer obtains a letter of credit from their bank, through the intermediary stages of freight and shipping, and ending with customs and payment.
In February 2016, the Dubai government declared its interest to position itself as a blockchain hub and embrace the technology. As part of this declaration, the Dubai Museum of the Future Foundation established the 'Global Blockchain Council' in which IBM is a member. Further, Dubai plans to execute all its transactions on a blockchain by 2020, as a part of its "Dubai Blockchain Strategy."
"The bank has always had a culture of innovation and several of the bank's most successful products and features can be attributed to this forward-thinking mindset," said Ali Sajwani, Group Chief Information Officer, Emirates NBD Group. "We are excited to participate in the ecosystem on streamlining the trade finance process using the futuristic Blockchain technology, which has the potential of transforming the way we conduct business between heterogeneous entities."
"IBM believes that blockchain will do for transactions what the internet did for information. Dubai is at the forefront of adopting this transformative technology as government agencies and businesses realize the need to have a shared secured ledger that establishes accountability and transparency while streamlining business processes," said Amr Refaat, General Manager, IBM Middle East and Pakistan. "Our collaboration today with leading Dubai organizations across different sectors in trade finance and transportation will showcase how blockchain will revolutionize the way businesses interact with one another and with their customers and suppliers."
A recent blockchain study, Building Trust in Governments, by the IBM Institute for Business Value (IBV), found that several governmental organizations are embracing blockchain technology to promote more extensive collaboration. Nine out of 10 governmental organizations plan to invest in blockchain for use in financial transaction management, asset management, contract management and regulatory compliance by 2018. And seven out of 10 government executives predict blockchain will significantly disrupt the area of contract management, which is often at the intersection of the public and private sector.
In the Middle East and Africa, nine out of 10 government executives surveyed see contract management as the greatest potential new business model. By using blockchains for contract management, issues such as the failure of any party to meet a deadline or complete a task, for example, could be more immediately visible. Transparency derived from contract management on blockchains could improve performance management. Governments will be able to use blockchains to explore new business models for providing services to citizens beyond the limits of current technology. These models can be used to improve the efficiencies of current services, while expanding the ability to provide new services.
IBM is rapidly expanding its blockchain capabilities and actively working with companies to understand what it takes to make blockchain ready for business. Financial services, supply chains, IoT, risk management, digital rights management and healthcare are some of the areas that are poised for dramatic change using blockchain networks.
(Source: IBM)
