DFM IN 2012: A YEAR TO REMEMBER Events and ......kudos that come with them; Abu Dhabi’s first ever...

News update

>> Bouncing cheques still a crime for expatriates in UAE

>> Dubai plans higher public spending in 2013 to support economy

>> UAE central bank limits home loans to foreigners

>> Dubai’s DP World says Jebel Ali port expansion on track

>> OPEC’s USD1trn revenues

>> Best and worst performing Gulf stocks and markets

>> Dubai airport traffic up 10% on year at 4.88m in November

>> More listings seen in UAE, Saudi Arabia in 2013

>> Expansionary budget to support growth in Saudi Arabia

>> New Egypt FX policies positive step in tough circumstances: Fitch

A Formula (One) for high-octane vacations this year

Talent talk: Attracting and retaining talent in the modern workplace

Gulf region real estate prospects in 2013

USD’s ‘funding currency’ role will be increasingly challenged

>> Read more >> Read more>> Read more >> Read more >> Read more

JANUARY 2013 Vol. 2 - No. 1

Goodbye fiscal cliff, welcome debt ceiling

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DFM IN 2012: A YEAR TO REMEMBER Events and Promotions

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A Formula (One) for high-octane vacations this year

By Jude Hardy

The Formula One Grand Prix (F1 GP) has always been associated with high-speed, high-octane fun, with luxurious locations to match the exclusive lifestyle afforded by its fans and drivers.

The 2013 F1 GP schedule of racing encompasses the world, hopping from one location to another. From Melbourne, Australia, to the Malaysian capital of Kuala Lumpur, to the Shanghai GP in China and the famous Monaco GP, Monte Carlo, F1 locations for 2013 haven’t waned in exclusivity.

F1 drivers sometimes earn anything up to GBP 10 million a year (AED 59.4 million) and the race has constantly been related to fast cars, exotic destinations as well as beautiful women or ‘pit babes’. Competition is hot between the teams, which hire the most qualified engineers and pit staff to construct and maintain the high-tech vehicles.

Drivers also often nab themselves high-grossing advertising contracts, with watch brands, personal care products and clothing retailers all looking to cash in on the exclusive lifestyle.

The Middle East hasn’t been excluded from these very special motorsport events and the kudos that come with them; Abu Dhabi’s first ever GP was held at the purpose-built Yas Marina Circuit, Yas Island, in 2009.

“[The] Formula 1 Etihad Airways Abu Dhabi Grand Prix is one of the most anticipated and exciting sporting events on the international calendar. Working closely with our partners, Etihad Airways and the Abu Dhabi Authority for Tourism and Culture (TCA - Abu Dhabi), we have established a world-class event that attracts visitors from across the globe,” said Malek Rawas Alrashedi, senior director of support services, Yas Marina Circuit.

“Year-round, Yas Marina Circuit also hosts tens of thousands of domestic and international tourists and visitors, who visit the circuit to take part in our motorsport experiences and events, take a tour of our facilities or to attend an event or conference. We work closely in partnership with Etihad Airways and TCA-Abu Dhabi along with many hotels, attractions, and tour operators year-round in promotion of destination Abu Dhabi,” he said.

Motorsport fans from around the world have converged on the UAE’s capital since the first GP was held, and the UAE itself boasts a strong F1 GP fan-base.

This has focused the international motor-racing spotlight on Abu Dhabi, and placed it as a first-class F1 location globally. Undoubtedly, the race – held every November in Abu Dhabi – has also brought revenue to the capital, in the form of tourism and hospitality as well as business and commerce relating to the event.

Value-added benefits for Abu Dhabi GP F1 ticket holders include access to high-profile after-race concerts. In 2012, fans were lucky to see Kylie, Nickelback and Eminem perform.

In fact, star-spotting is common at all F1 events around the world. And Abu Dhabi, although it is one of the most recent entrants to the F1 firmament, is not the only exciting hot-spot of motor racing in the world.

Tying in your love of fast cars and lifestyle events with your vacation this year can take you to any of 20 places where the F1 GP races are held. In fact, being an F1 junkie places you in a small proportion of the world’s population who track these races and have made it a pilgrimage plan to visit every single one. Some die-hard fans even do all the locations in a single year!

The 2013 F1 GP schedule:

March 15-17: Melbourne, Australia

March 22-24: Kuala Lumpur, Malaysia

April 12-14: Shanghai, China

April 19-21: Sakhir, Bahrain

May 10-12: Catalonia, Spain

May 24-26: Monte Carlo, Monaco

June 07-09: Montreal, Canada

June 28-30: Silverstone, UK

July 05-07: Germany, at a place to be announced

July 19-21: To be announced

July 26-28: Magyar Nagydíj, Budapest

August 23-25: Spa-Francorchamps, Belgium

September 06-08: Monza, Italy

September 20-22: Singapore

October 04-06: Yeongam, South Korea

October 11-13: Suzuka, Japan

October 25-27: New Delhi, India

November 01-03: Abu Dhabi, UAE

November 15-17: Austin, US

November 22-24: Sao Paolo, Brazil.© Zawya

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Talent talk: Attracting and retaining talent in the modern workplace By Jude Hardy

In days gone past, many stalwart employees in companies of all shapes and sizes would stay in their job roles for decades until retirement. These kinds of employees would not necessarily push for promotion, for more benefits or for any kind of work-hour flexibility.

However, today’s generation of employees often move from job to job every couple of years, being more concerned with their work hours and time away from their roles, to spend time with family and friends or to travel. Rather than staying with the same company for 10, 20 or 30 years, the new generation of employees seeks more fulfilment from their jobs.

It’s therefore become more difficult to retain talent, once worthwhile employees have been attracted to a company. It might be easy to

attract talented employees to a company by offering benefits and incentives, but if you don’t follow through on promises made during interviews, you may well watch that talent walk out the same door they walked in through.

During the global financial crisis that started in 2008 and whose effects are still being felt now, it was more difficult than ever before for companies to attract employees. If businesses didn’t at least match the salaries that people were receiving in their previous jobs, their recruitment efforts fell flat on their faces.

Some companies may feel that offering competitive benefits and regular opportunities for promotion is enough. However, many other aspects need to be considered: such as, valuing employees’ inputs in both meetings and in general; keeping morale and team-spirit high, which also affects productivity; and offering opportunities in a diverse, multicultural workplace – this is something that the multinational UAE does particularly well. People who grow up in a multicultural world will also want to see that multiculturalism reflected in the workplace.

Attracting and retaining top talent should be the cornerstone of every company’s people strategy, according to David Robert, CEO of Great Place to Work Gulf, part of a global research, training and consultancy firm that recognizes the best workplaces in more than 45 countries worldwide.

However, Robert said, talent acquisition

and retention is not a simple matter of compensation and benefits. More and more companies are looking beyond compensation to get the attention of top talent.

“You can’t solve talent acquisition and retention with higher salaries. This approach simply isn’t sustainable. A good salary will certainly draw the talent in, but what’s going to keep them with you? Companies that want to compete for the market’s top talent must do so by leveraging their corporate culture and reputation, and must continuously invest in and nurture that culture,” he said.

Attracting talent by offering incentives and salary increments will certainly work, but unless the requirements of top talent are managed properly, these top employees will not be retained. Companies should identify whether the corporate culture is both well-defined and appealing – and appealing enough to both attract and then retain top workers. It’s not just the HR department within a company that needs to understand how to select good candidates, but the management also needs to understand why certain employees have been selected and why.

Attracting the talent in the first place should be clear from the employee value proposition (EVP), which should be visibly placed online and anywhere that top talent might be able to access it. Once the EVP has attracted suitable employees, it’s up to the company to make sure they’ve built enough connections between themselves and their talent to be able to retain

them under any circumstances.

The Great Place to Work Institute, UAE, encourages companies to consider these essential questions:

- Is our corporate culture well-defined and appealing to the talent we want to attract?

- Do our leaders understand how to select the right people and cultivate their highest potential?

- Do we have a clearly defined employee value proposition that is easily accessible to job seekers via our website?

- Are we doing enough, and well, in the community to help build strong emotional connections between our employees and their work?.© Zawya



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MARKETS UPDATE

Goodbye fiscal cliff, welcome debt ceiling

Global markets roared as a compromise emerged from Washington in the early hours of the New Year to avoid the dreaded fiscal cliff. After the initial euphoria, global markets soon turned sour as investors realised Washington is gearing up for yet another fight, this time involving the debt limit in a few months’ time.

While the fiscal package clarified the medium-term deficit and debt trajectory of the US federal government, it does not provide a basis for a meaningful improvement in the government’s debt ratios over the medium term, according to Moody’s Investors Service.

The rating agency expects that “further fiscal measures are likely to be taken in coming months that would result in lower future budget deficits, which are necessary if the negative outlook on the government’s bond rating is to be returned to stable.”

Still, the S&P 500 closed at its highest level in five years, suggesting that the worst of the global financial crisis may be behind us.

Regional investors were also comforted by the fact that while the world economy still has major issues, they are not insurmountable. The European Central Bank and key EU players will ensure that the Eurozone will not deviate too far from the recovery path, while recent Chinese PMI Index data shows further signs of improvement in the world’s second-largest economy.

Amid this mixed global scenario, regional prospects look practically rosy. Saudi Arabia’s expansionary budget and the triple-digit oil price enjoyed by OPEC countries in 2012 will ensure that most oil-exporting regional governments particularly in the Gulf have money to spend on infrastructure and job-creating projects.

“Saudi government spending has been the main impetus behind the strength of the private sector (construction was the fastest growing sector in 2012) and with policy remaining expansionary in 2013, further healthy private sector growth is anticipated,” said Fitch Ratings in a report.

The Dubai government is also planning increased spending to build on the momentum that saw the Dubai Financial Market Index rise 19% last year – the best performer in the Gulf region.

Regional markets, which made a strong start in the New Year, are now focused on corporate news and fourth-quarter results. However, new mortgage rules in the UAE that cap lending

to expatriates at 50% of a home’s price could dampen the real estate recovery under way in the UAE.

Oil

Brent crude prices fell to USD 111 per barrel by the first week of January, as global markets appeared well supplied. A Reuters survey showed OPEC oil output had fallen in December as Iranian production fell, and Saudi and Iraqi supplies eased. OPEC output is now down by 1.13 million bpd from its April 2012 peak of 31.75 million, the survey showed. OPEC output is expected to fall by a quarter of a million in January.

Dollar

The American greenback soared to a near 30-month high of 88.34 against the yen in early January amid speculation of more monetary easing in Japan. Meanwhile, the US currency also rose to a three-week high against

the euro which hit a low of USD 1.3006 by the first week of January.

Gold

The US Federal Reserve’s intention of ending its USD 85 billion of monthly bond purchases this year has also negatively impacted gold prices. The yellow metal has already fallen 2% to reach USD 1,648 per troy ounce in the first week of 2013 as many investors sought more lucrative investment instruments.

India, the world’s largest retail gold market, is also looking to impose a 2% tax on gold imports, which may see the yellow metal finally ending its golden run that has lasted a decade.© Zawya


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Gulf region real estate prospects in 2013

The Gulf’s real estate sector largely bottomed out in 2012 and prospects for most countries look promising as governments took measured steps to ease the pain suffered by developers, financiers and investors over the past few years.

New regulations, mergers and greater efforts by the authorities to revive the industry are already paying off in certain jurisdictions.

Regional investors have taken note of the changing real estate landscape. Latest figures from the GCC Secretariat General Information and Statistics Centre showed GCC investors increased their exposure to the regional real estate market by 51.1% in 2012, compared to the previous year.

Kuwaitis led the regional investor march, buying 8,300 property units across the Gulf region, followed by Saudis (2,312 units) and Emiratis (2,267 units) during the year. Not surprisingly, the UAE property market saw the largest influx of Gulf investments.

“Real estate remains a popular asset class among Middle Eastern investors, with more potential buyers than sellers in most markets,” notes a Jones Lang LaSalle report.

Emboldened by the rising prospects in the Gulf’s property market, a majority of investors expect to invest more USD 50 million in the sector over the next 12 months, according to a

recent survey by the consultancy.

In the UAE, Dubai’s real estate sector has picked up as investor confidence improved. “Post the 2008 downturn the market was quiet for two years and we saw signs of revival in 2011. 2012 was the best year since in terms of prices strengthening and renewed appetite for investment,” said Helen Tatham, director of residential in Dubai, at London-headquartered Knight Frank consultancy.

Dubai has regained its status as the preferred investment market within MENA region, largely because of the following factors: recovery in prices and rental values; greater transparency; more investment grade real estate than in other Middle Eastern markets; and a developed infrastructure, according to JLL.

“This trend seems to be particularly the case in Dubai, where potential buyers outnumbered sellers by a large margin than in other cities,” notes JLL.

While the UAE real estate market is a Gulf favourite, Saudi Arabia is also emerging as a promising market thanks to new mortgage laws and massive plans to build new real estate

developments across the country.

The kingdom’s total housing stock is expected to rise from 4.6 million units by 2010 to 7 million by 2020, with annual demand rising by nearly a quarter of a million each year.

Apart from various initiatives by the private sector, the real estate development fund is expected to inject a staggering SAR 250 billion (or USD 68 billion) to finance a number of the projects, especially at the low-cost housing level.

Other regional markets are also showing signs of growth.

In Qatar, the value of real estate deals rose 59% in 2012, compared to the previous year, as demand soared thanks to the influx of expatriates in preparation for the 2022 FIFA World Cup.

Kuwait has also seen loans for new construction rise 166% in the first 11 months of 2012, compared to the same period of the previous year, while the value of residential sales grew nearly 57% during the year.© Zawya

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GCC State Property Contracts % of Gulf TotalUAE 10,873 67.50Oman 3,364 20.89Bahrain 1,190 7.39Kuwait 308 1.90Qatar 210 1.30Saudi Arabia 162 1.00Total 16,107Source: GCC Secretariat's General Information and Statistical Center

GULF BUYERS FAVOUR UAE REAL ESTATE (2011)


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Tim Fox

Chief Economist - Emirates NBD

USD’s ‘funding currency’ role will be increasingly challenged

While the year has begun with widespread predictions about a ‘great rotation’ out of government bonds and into equities in 2013, certainty about currencies is in much more short supply. On past experience rising global risk appetite has often been aligned with a weaker USD, but this is only a relatively recent phenomena due to the USD’s position as the ‘funding currency’ of choice against a background of zero US interest rates and seemingly endless Quantitative Easing (QE). Now, however, its position as the world’s main

funding currency is being challenged, by the JPY. A strengthening US economy attached to firming US bond yields should eventually serve to loosen this relationship further, allowing the greenback to become more of a carry trade again.

As US growth continues to recover….

This will be further helped by perceptions that the Fed may begin to depart from QE, just at a time when other central banks are adopting more monetary stimulus not less. Minutes of the December FOMC provided an ‘early warning’ that QE cannot be taken for granted to last indefinitely. This is not to say that US interest rates are set to rise anytime soon. The most recent Fed assumptions implied no change in the Fed funds rate until mid-2015. However, with the Fed now having an explicit unemployment rate target of 6.5%, any progress towards this level in 2013 could well see hawkish FOMC members becoming increasingly restive, seeing reflection in firming bond yields. US economic data in the coming week includes CPI, retail sales and industrial production for December. Further signs of strength in consumption should be taken positively by the USD, especially if it begins to exert upward pressure on prices.

And as the JPY takes over this role

The main beneficiary of such signs should be USD/JPY which has continued its December-January ascent over the latest week following

the announcement of a substantial fiscal stimulus package in Tokyo on Friday worth JPY10.3tn, equivalent to approximately 2% of GDP. The new spending will be targeted at public works and infrastructure, with the hope that it ultimately knocks-on to benefit consumption, so helping to break the negative deflation psychology of the last 20 years.

On its own, such an approach may not work beyond providing a short-lived boost to growth, as the last decade has been littered with similar fiscal stimulus packages that have failed to create a sustainable long lasting recovery. However, this time the government appears to be working more closely with the Bank of Japan to provide a more complementary monetary policy framework as well. Reports suggest that a joint statement on policy cooperation between the government and the BoJ is being drafted, with the inflation target likely to be raised to 2.0% at the next BoJ meeting (21-22 January), and with more Quantitative Easing expected to be announced.

USD/JPY is now within sight of our longstanding 90.0 forecast, having been the standout performer of the holiday season (rising 11% since December) and it could strengthen further as the markets anticipate the handover to a new BoJ governor in April. We will be revising our USD/JPY forecasts higher this week in our January Monthly Insights publication to reflect the changing fortunes of the Japanese currency in the light of both Japanese and US economic developments.

EUR being buoyed by Draghi optimism

JPY losses have been even more pronounced against the EUR (see chart on front page), which has continued to strengthen in recent days helped by ECB President Draghi’s press conference comments after the ECB Council meeting last Thursday. Draghi appeared to rule out any further monetary policy stimulus for the foreseeable future, highlighting improving financial market conditions in the Eurozone while still acknowledging downside risks to growth. Draghi believes that the Eurozone economy will begin to mend in H212, if the financial markets remain stable, looking for ‘positive contagion’ to begin to take hold. For the moment at least the markets appear to be giving his optimism the benefit of the doubt.

CURRENCY CORNER



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But EUR strength risks becoming counterproductive

However, we retain deep seated concerns that the economic recovery will not be so simple, with the latest data from Germany appearing to point to spreading recessionary risks, not the reverse. Continued contractions through Q1 could in turn produce renewed pressure on Eurozone financial markets, which could threatening to break the virtuous spiral that Draghi is hoping to create. In the short-term EUR/USD may remain supported by the messages from the ECB, but over time this strength will not last, as political pressures in Italy, Spain and Germany resurface amongst deteriorating economic conditions. A firmer EUR exchange rate will also threaten to undo some of the good work being achieved by stabilising financial market conditions, contributing to an overall tightening in Eurozone monetary conditions (a 10% rise in the EUR exchange rate is thought to be equivalent to a 200bps hike in interest rates according to Jefferies) . Ultimately we believe the Eurozone probably requires a looser monetary policy, via lower interest rates and a weaker exchange rate to help boost competitiveness and create the bases for sustainable economic growth. Such EUR weakness may not transpire for a few more months yet however, by which time the true extent of the economic downturn will be becoming more visible.

GBP/USD relatively trendless

Relative to the strong directional move of the JPY and even the appreciating EUR, GBP has been relatively trendless of late, especially against the USD, remaining within a rough 1.58-1.63 range. However, we see GBP/USD as still vulnerable to faltering growth hopes (industrial production fell by 2.4% y/y in November), which should eventually return the emphasis of policymakers onto more QE. A new Bank of England governor, when he takes office in July, may also reinforce this priority of boosting growth by whatever means. The coming week sees UK retail sales and inflation data which will only add to the complex policy though process, with sales data expected to show only tepid growth whilst inflation could be buoyed by recent utility price hikes.

UK debate about EU membership may keep it sidelined

The UK’s future in, or possible out of the EU, will also be an increasingly important topic in coming weeks. PM Cameron will be making a keynote address in two weeks’ time about Britain’s future in the EU, which is aimed at addressing growing euro-sceptic sentiment in his Conservative Party and in the broader country in the wake of the Eurozone crisis. Cameron is expected to announce that his Party’s next manifesto will pledge to negotiate a looser, more trade-based relationship with the EU and then hold a referendum. Cameron

will campaign for the UK to stay in the EU on new terms, while the referendum will offer voters the chance to leave the EU. Recent warnings from the US government as well as from the EU about the consequences of leaving the EU highlight the ‘high-stake’ risks involved, which should further serve to dampen investors’ appetite for GBP on a medium term basis, and keeping it sidelined for now.

EUR/CHF benefiting from easing EUR tensions

Amidst easing EUR pressures, the EUR/CHF is not surprisingly beginning to perk up as well, and away from its 1.20 floor, testing 1.22 at the end of last week. With Swiss consumer prices falling by -0.4% y/y in December, the authorities are likely to remain accommodative and encouraging of this move. Reports that one prominent bank is even beginning to charge non-resident investors negative interest rates for deposits should further undermine the CHF by encouraging earlier safe-haven flows into it to be unwound.

AUD helped by recovering China but domestic strains remain

Finally, the AUD has also been benefiting from the recent improvement in risk appetite, taking it back up towards highs of 1.06. Improved Chinese exports and imports data last week has also helped its cause. Confirmation in the coming week that Chinese growth is

recovering (Q4 GDP, retail sales, investment and industrial production are all released next Friday) should lend it further support. However, domestic data from Australia needs also to be watched, as a sharper than expected rise in unemployment on Thursday could see some of the AUD’s recent gains unwind.

CURRENCY CORNER



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NEWS UPDATES

Bouncing cheques still a crime for expatriates in UAEForeigners still risk being imprisoned for bouncing cheques in the United Arab Emirates, as a government order which decriminalizes the offence applies only to local citizens, an official statement said.

The statement was issued to clarify contradictory reports in local media, after some reports said foreigners no longer faced criminal penalties for writing cheques that bounced. - Reuters

Full story:

Dubai plans higher public spending in 2013 to support economyDubai’s government said it plans to increase public spending in 2013 to support the economy, but still expects to narrow its budget deficit as the debt-laden emirate continues to focus on a prudent fiscal policy.

Dubai will run a budget deficit of AED 1.5 billion (USD 409 million) in 2013, an 18% drop from the fiscal year 2012 forecast, the emirate’s media office said in an emailed statement. Public revenues in 2013 are seen at AED 32.62 billion, while public expenditure is estimated at AED 34.12 billion. - Zawya Dow Jones

Full story:

UAE central bank limits home loans to foreignersThe United Arab Emirates central bank has decided to limit mortgage loans for foreigners buying residential real estate in the country to 50% of the property’s value, banking and real estate industry sources said.

The restriction is contained in a circular issued to commercial banks, the sources said, speaking on condition of anonymity because of the sensitivity of the issue. - Reuters

Full story:

Dubai’s DP World says Jebel Ali port expansion on trackDP World said that expansion work at the Jebel Ali port is on track, as the Dubai-based company looks to ramp up the capacity at its flagship facility to meet growing demand.

The expansion of container terminal 2 at Jebel Ali is scheduled to open for business in the second quarter of 2013, DP World said in an emailed statement.

Work on the new terminal 3, across the harbor from terminal 2, is also well under way to open in 2014 and take Jebel Ali’s total capacity to 19 million TEUs, the statement added. - Zawya Dow Jone

Full story:

OPEC’s USD1trn revenuesOPEC’s oil revenues are estimated to cross a trillion dollars in 2012, hitting USD 1.052 trillion, the group’s biggest revenue haul ever.

The figure eclipses 2011’s record revenues of USD 1.027 trillion in nominal terms, according to data compiled by the US Energy Information Administration, or the EIA.

Saudi Arabia, which has already raked in USD 291 billion in the first 11 months of 2012, is expected to exceed the record USD 310 billion collected in crude-related revenues a year earlier. - alifarabia.com

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Best and worst performing Gulf stocks and marketsBahrain’s Ithmaar Bank emerged as the best performing stock among major Gulf listed companies in 2012, rising 161.5% in the year.

The retail Islamic bank which went through a significant reorganization in 2010, merged with First Leasing Bank in October, and hopes to tap into the nascent retail market in Bahrain.

While it witnessed a strong rally in its stock price, the bank still has some way to go before it can claim a full recovery. The company posted a USD 15.6 million loss in the first nine months of the year. - alifarabia.com

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Dubai airport traffic up 10% on year at 4.88m in NovemberPassengers at Dubai International jumped 10% on year to 4.88 million in November, driven by strong traffic to western Europe, India and South America.

The airport, the world’s fourth busiest by international traffic, predicted it will handle 66 million passengers in 2013 compared to 56.5 million in 2012, helped by the opening of the new A380 concourse early this year, Dubai Airports said in a statement. - Zawya Dow Jones

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More listings seen in UAE, Saudi Arabia in 2013Saudi Arabia and United Arab Emirates will likely see the bulk of initial public offerings in the Middle East and North Africa in 2013, according to Ernst & Young. “We are confident that Saudi Arabia and the UAE will continue to be the regional hubs of IPO activity for investors in 2013,” E&Y’s Phil Gandier. Regional capital markets raised around USD 2 billion in 2012, up from USD 843.9 million in 2011, report says. - Zawya Dow Jones

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Expansionary budget to support growth in Saudi ArabiaFitch Ratings says an expansionary 2013 budget based on a conservative oil price will support another year of healthy economic growth for Saudi Arabia and a further strengthening of the sovereign’s net creditor position. However, overall growth will slow due to a decline in oil production that was already evident in recent months.

The FY13 (31 December 2012 to 30 December 2013) budget unveiled on December 29 projects record spending of USD 219 billion (34% of GDP), up by almost 20% on the 2012 budget. Budgeted capital spending is 28% higher than in 2012, though the government has struggled to achieve its capital spending targets in recent years. - Reuters

Full story:

New Egypt FX policies positive step in tough circumstances: FitchEgypt’s new exchange rate regime has brought greater transparency and a depreciation of the pound but also highlights a serious shortage of foreign exchange, Fitch Ratings says. For the system to work, confidence needs to be restored quickly, starting with agreement on an IMF program.

A more market-determined exchange rate, arising from the central bank auction system introduced on 30 December, is potentially positive. Allowing depreciation can boost competitiveness and indicates that the central bank will not defend the currency at all costs. The auction runs in parallel with the existing interbank market, but has quickly become the market’s new reference rate. - Reuters

Full story:

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© Zawya

NEWS UPDATES


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Body Talk Spa & Fitness Center> Receive a discount of 25% on all

treatments and memberships

Valid at: Movenpick Hotel, Jumeirah Beach, Dubai

Kempinski The Spa> Receive a discount of 20% on all spa

treatments and get a complimentary head massage

Valid at: Kempinski Hotel, Ajman

Raffles Spa> Receive a discount of 20% on all

treatments

Valid at: Raffles Hotel, Wafi City, Dubai

Griffins Health Club (JW Marriott)> Receive a discount of

- 20% on Couple Griffins Health Club Membership for 12 months plus 4 complimentary one hour massage vouchers (original price AED 6,000)

- 20% on Individual Griffins Club Membership for 12 months plus 2 complimentary one hour massage vouchers (original price AED 3,800)

Valid at: Raffles Hotel, Wafi City, Dubai

Laguna Beach Club> Receive a discount of 20% on Health club

membership & complimentary service of a personal trainer

Valid at: Kempinski Hotel, Ajman


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DFM IN 2012: A YEAR TO REMEMBER Events and ......kudos that come with them; Abu Dhabi’s first ever...

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