Iran deal fuels hopes of new Dubai trade boom

24
NATION
> DUBAI
GGICO
launches Topaz
Residences
GGICO has announced
the launch of its latest
real estate project, Topaz
Residences, located at
Dubai’s Silicon Oasis. “Buying in Topaz Residences
is a great opportunity
for owner occupiers or
investors — it ticks all the
boxes for the purchase
of property in Dubai,”
said Andrew Chambers,
CEO of GGICO Properties. “A Topaz Residences
property will provide
owners with a good return
on investment, a secure
environment and of
course the enjoyment of
what will be the primary
consideration for many,
a high quality home surrounded by numerous
premium facilities and
amenities.” Phase One
of Topaz Residences is
being launched at Silicon
Oasis with one-bedroom
apartments starting at
> DUBAI
AlKhair
takes part in
financial fair
AlKhair Capital, Saudi Arabia’s leading investments
institution, participated
in the Stock and Financial
Investment Exhibition
in Jeddah. “The Arabian
markets have seen steady
growth over the past few
years. But to make the
most of this growth, it is
important for individuals
to invest,” said Khalid Al
Mulhim, chief executive
officer, AlKhair Capital.
“Investing is the smarter
way of saving and it can
help your wealth grow.
Through this event, we
aim to educate people
about the world of investing and the best ways to
do it,” he added.
Compiled from staff reports
Iran deal fuels hopes of
new Dubai trade boom
UAE is Iran’s second-biggest trade partner after China since ’09
dubai — The wooden dhows piled
with tires, air conditioners, cooking
oil and clothing were preparing to
sail for Iran from a Dubai wharf,
the cargoes testament to a centuries-old trade that survived years of
sanctions.
As they secured their loads, the
ships’ crews were upbeat as last
week’s accord over the nuclear programme brought the lifting of sanctions and the return to unfettered
commerce one step closer. Few
places are better located to benefit
than the UAE, Iran’s second-biggest trading partner after China
since 2009, data compiled by
Bloomberg show.
Investors signalled their enthusiasm on the first day of trading after
the April 2 pact. Dubai’s benchmark stock index surged the most
in two months on bets that the UAE
trade hub is set to increase its role
as a the main channel for business
in and out of Iran.
“Iran is a rich country,” said Sultan Yusuf, a dhow captain who has
spent a quarter century ferrying
goods across the Arabian Gulf to the
ports along Iran’s southern coast,
conducting his business in Arabic
and Farsi. “But if there are economic sanctions, it can’t advance.”
Dubai, home to the world’s second-largest Iranian diaspora community, has been at the forefront of
trade with Iran.
The emirate’s transformation
into the Middle East’s banking,
trade and transport hub will give it
an edge over competitors if a final
nuclear deal is sealed and sanctions are peeled away.
Trading dhows, waiting to upload goods are docked at the creek in Dubai. — AP
appealing than direct investors,”
Cairo-based investment bank EFGHermes said April 5. Dubai’s major
ports, such as Jebel Ali, have infrastructure “ready to feed into the
Iranian market,” said Simon Kitchen, a strategist at EFG-Hermes.
Shares of DP World have jumped
about nine per cent since April 2 to
$23.66, valuing the company at
about $20 billion.
“You’ll be able to see maybe a
pickup in trade with Iran by the end
Global banks
of the year” if sanctions are susBanks including HSBC Holdings pended, he said.
and Citigroup set up their regional
A spokesman for DP World said
headquarters in the city, while Jeb- Jebel Ali is well positioned to benel Ali Port, operated by DP World efit once sanctions end.
Ltd, is the biggest in the region.
By 2013, sanctions had cut
Iran might be stuck for a while. two-way trade but Iran was still
Sanctions will only be eased once the UAE’s fourth-biggest trading
its compliance with any permanent partner. Machinery, electronics, veaccord has been attested by inter- hicles, aircraft and transport equipnational monitors. The expected ment, and textiles make up much of
gradual opening of country’s mar- the UAE exports. Much of it leaves
kets to foreign investors means via the Dubai creek, one of the emir“equity plays on Iran will be more ate’s oldest trading harbours and
In the face
of growing
competition, it will
have to reinvent,
revisit, reexamine
its relationship with
Iran
Hassan Hakimian,
Director of London Middle East
Institute at the School of Oriental
and African Studies
the birthplace of its pearl-diving industry a century ago. A permanent
nuclear agreement, targeted for
end-June, is expected to increase
shipments but will throw up challenges, analysts said. “Dubai will
lose its near-monopoly position
with trade with Iran,” said Has-
san Hakimian, director of London
Middle East Institute at the School
of Oriental and African Studies. “In
the face of growing competition, it
will have to reinvent, revisit, reexamine its relationship with Iran.”
Increased Iranian oil sales may
further lower prices of crude, leaving the UAE with a larger deficit to
finance or needing to cut spending,
said Khatija Haque, head of research for the Middle East and
North Africa at Emirates NBD,
Dubai’s biggest bank.
Still, “the UAE, and Dubai in
particular, is well-positioned to
benefit from any rolling back of
sanctions on non-oil trade and financial transactions with Iran,”
Haque said in an e-mail.
Other non-oil sectors that could
profit include logistics, construction, tourism, real estate and airlines, including Air Arabia, a Sharjah-based budget carrier that flies
to seven Iranian cities, economists
and analysts said. — Bloomberg
Wetex
sees more
sponsors
Staff Report
dubai — Sponsors of 17th Water, Energy, Technology, and
Environment Exhibition, or Wetex 2015 are upbeat about the
event’s potential and its promotional capabilities, especially for
energy, water, and environmental sustainability. Wetex will be
held from April 21 to 23 at the
Dubai International Convention
and Exhibition Centre.
Saeed Mohammed Al Tayer,
MD & CEO, Dewa, chairman and
founder of Wetex, has confirmed
that preliminary statistics before
the official launch of the exhibition
show that the number of sponsors
has risen for this year’s Wetex,
which is supported by many regional and global organisations.
Wetex supports Dewa’s commitment to put sustainability at
the heart of its vision to become
sustainable innovative worldclass utility. Dewa implements
the best global environmentallyfriendly practices. All Dewa’s
work and projects support the
Dubai Plan 2021 for the sustainability of natural resources.
Dewa has put together major
events focused on sustainability
in this year’s edition.
Wetex is organised for the
second consecutive year under
the umbrella of Green Week. It
coincides with World Green
Economy Summit (WGES)
2015. Dewa recently announced
that the Arab Oil and Gas Show
will also be held as part of Wetex. This has encouraged more
exhibitors to join Wetex this year
in order to tap into the huge opportunities that are provided to
them by participating and sponsoring Wetex.
Sponsors include Siemens AG
as a Titanium Sponsor. Strategic
sponsors include the Dubai Supreme Council of Energy in
Dubai, Emirates Central Cooling Systems Corporation (Empower), Mai Dubai, Emirates
Energy Award, Emirates Global
Aluminium (EGA), Gulf Eternit
Industries Company, Emirates
Electrical Engineering (EEE),
ABB Industries, Emirates National Oil Company (Enoc) aming others.
— [email protected]
Dominica offers a second citizenship
and lucrative business opportunities
Deepthi Nair
dubai — Fancy a second citizenship
or a passport to an exotic Caribbean
country? The Commonwealth of
Dominica is among several countries seeking to attract foreign investors through its Citizenship By Investment Unit, or CBIU.
Although the unit has been in existence since 1993, the government has now streamlined it to facilitate the application process for
investors. The second oldest citizenship programme in the world, it
offers a two-pronged strategy to
earn a passport.
Firstly, an applicant can pay
$100,000 to a government fund to
gain citizenship. The amount depends on how many family members are included in the application.
A husband and wife (or a main applicant and two dependants under
18) will pay $175,000; it is $200,00
for a family of four with two children below 18 years of age.
There is another investment option, where an applicant can allocate
$200,000 in any government-approved project. In addition to this,
there is a government fee of $50,000
for the main applicant. Any other
member of the family will have to
pay an additional $25,000 (spouse
or children below 18 years of age).
Currently, there is only one project signed up for the CBIU programme — a Kempinski luxury hotel
promoted by Dubai-based Range
Development. Besides a share in
the hotel, applicants, if they pass
due diligence tests, are also entitled
to citizenship in Dominica.
“The Kempinski is a global brand
and the promoters have a proven
track record. The promoters are
also completing a Park Hyatt in St
Kitts. These factors give investors
an exciting opportunity. The project can also deliver jobs and generate economic activity in Dominica,” said Dr Vince Henderson,
Amruda Nair and Shaikh Faisal bin Qassim Al Thani at the
agreement signing ceremony. — Supplied photo
Aiana Hotels sets up
Qatar joint venture
Dominica has no capital gains, estate or death taxes, no restrictions on repatriation of funds and
no income tax on citizens who are not residents in Dominica for more than six months a year or not
earning their income from Dominica. — Supplied photo
Ambassador and Permanent Representative of the Commonwealth
of Dominica to the United Nations
in New York.
“We estimate the CBIU to contribute $10 million to the Dominica economy this year. Over the past
few years, we have been able to
raise $5 million annually from the
programme. For a small economy,
this is a significant amount,” added
Henderson.
Despite being around for 22
years, the citizenship programme
was only recently streamlined.
CS Global Partners, an international legal advisory group, came
on board to market and promote
the programme globally. “We
made changes in our legislation
to facilitate applicants and to protect the interests of Dominica.
The CBIU has been expanded
with more staff and we appointed
a new director who will lead the
process. These changes will expand the programme to attract
more investors to Dominica to
help in our economic development agenda,” explained Henderson. According to Micha-Rose
Emmett, group managing director, CS Global Partners: “The
Dominica CBIU was formerly
“What we’d like to see more is
those who have earned citizenship
in Dominica to come back and
make more investments outside of
their citizenship programmes.
One of the proposals is to create a
forum for those who have received
our citizenship and have the capacity to invest further,” suggested
Henderson.
Meanwhile, Dominica has no
capital gains, estate or death taxes,
no restrictions on repatriation of
Dr Vince Henderson.
funds and no income tax on citizens who are not residents in Domcalled the Economic Citizenship inica for more than six months a
Programme. The government has year or not earning their income
made it more attractive by from Dominica.
Describing the business-friendly
streamlining the process. The fact
that they have identified the need nature of the economy, Henderson
to attract reputable investors to said: “The Dominica economy is
the country highlights their com- stable, the rule of law is respected,
mitment to the programme. We we follow the British common law
look forward to working with and provide a range of incentives to
them and let the rest of the world investors, such as tax holidays, etc.
We have a special government deknow about this paradise.”
In a bid to make the application partment to support foreign invesprocess as seamless as possible, the tors. We have major investments in
Dominica government aim to de- infrastructure in terms of roads,
liver the citizenship certificate in hospitals and schools. Because of
50 days. Besides real estate, the au- where we are in the development
thorities are also seeking invest- process, it gives the investor the adment in industries like agriculture, vantage of being the first mover.”
— [email protected]
manufacturing and water bottling.
partners having an equal share,
will be based in Doha and operate
under the name Aiana Hotels &
Resorts.
“We want to bring Aiana as a
dubai — Shaikh Faisal bin Qassim Al Thani, chairman of Al new lifestyle hotel brand to the
Sawari Holding and Qatari Busi- Middle East and will continue to
ness Association, and Amruda support Aiana through our ambiNair, joint managing director and tious expansion plans for acquisichief executive officer, Aiana Ho- tions in key destinations starting
tels & Resorts, have signed a joint with the property in Doha with
venture agreement to create Ai- many more to follow in Western
ana Hotels & Resorts, a global Europe (London) and the
US,” Shaikh Faisal said.
hotel management company.
— [email protected]
The joint venture, with both
Staff Report
NBAD supports Oman SMEs
now the critical arena of debate in
the SME space, representing the
choices and prerogatives that
characterised the region as a
abu dhabi — The National Bank of whole. It reflects the region’s amAbu Dhabi, or NBAD, in coopera- bition to move from traditional
tion with CPI Media Group, has business to vibrant, powerful ecoorganised two major roundtables nomic growth — a growth that will
dedicated to supporting SME’s in be largely driven by SMEs.”
The event proved a powerful
Oman. The high-level roundtable
discussion, called ‘Dynamics of En- forum for underlining how Oman
trepreneurship’, brought together has become a regional champion
thought leaders and VIPs from pub- of SME support. It is the first time
lic and private sectors to address in Oman that a panel debate comprehensively covers the full specthe issue from both perspectives.
Mohammed Ba Omar, NBAD’s trum of challenges and opportuchief executive officer in Oman, nities of the sector.
— [email protected]
said: “We believe that Oman is
Staff Report